Q3 FY2020 Highlights:
- Total revenues, mainly from the Company's Restaurant Operations, of
$0.67 million for the quarter, totaling$2.37 million for the first nine months of FY2020 (Q3 FY2019:$0.91 million ;$1.24 million fromNovember 30, 2018 (date of acquisition) toMarch 31, 2019 ) - A loss attributable to shareholders of the Company from continuing operations amounting to
$1.50 million and a year-to-date loss for FY2020 of$2.89 million (Q3 FY2019: loss of$0.25 million ; loss of$2.30 million for the nine months of FY2019). - A loss before tax from continuing operations of
$1.62 million for the quarter and$3.18 million for the year-to-date (Q3 FY2019: a loss of$0.32 million ; a loss of$2.35 million for the nine months of FY2019) - A share of loss of an associate of
$1.10 million for the current quarter and$1.48 million for the year-to-date, representing results from the Company's primary investment in financial services throughSunwah Kingsway Capital Limited (Q3 FY2019: a share of gain of an associate of$0.61 million ; a share of loss of an associate of$0.82 million for the nine months of FY2019) - Cost of sales for
Sunwah International's Restaurant Operations of$0.21 million in Q3 FY2020 and$0.70 million for the year-to-date (Q3 FY2019:$0.26 million ;$0.36 million fromNovember 30, 2018 (date of acquisition) toMarch 31, 2019 ) - Selling, general and administrative expenses to
$0.84 million for the quarter and$2.83 million for the nine-month period (Q3 FY2019:$1.05 million ;$1.69 million for the nine months of FY2019).
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Following significant social and political unrest in
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Financial Overview:
In accordance with the Company's refocused operations,
Financial Services Division – This division comprises the results from the Company's remaining interest (26.05%) in Sunwah Kingsway Capital Holdings Limited, its former principal subsidiary and now main investment interest (now accounted for as an associate under the equity method of accounting).
Q3 FY2020 highlights:- A loss on the deemed partial disposal of SWK amounting to
$119,000 (Q3 FY2019:$117,000 ) in relation to a scrip dividend arrangement wherein the Company elected to receive a cash dividend, which resulted in further dilution of its interest in SWK from 26.47% to 26.05% (Q3 FY2019: 28.36% to 27.90%) - Share of losses of
$1.10 million for the quarter and$1.48 million for the year-to-date, representing a 26.05% - 27.90% equity interest in SWK during Fiscal 2020. This corresponds with a share of gain of$0.61 million and loss of$0.82 million in the third quarter and nine months of FY2019 respectively (representing a 27.90% - 28.36% equity interest in SWK during Fiscal 2019). - SWK's third quarter and FY2020 year-to-date declines are mainly the result of trading losses within its proprietary investment portfolio, which primarily comprise
Hong Kong equities, as well as a decrease in commission and fee income stemming from the region's social unrest in Fiscal 2020 and fallout from the COVID-19 pandemic in the current quarter. - Restaurant Operations – This division encompasses
Sunwah International's activities in the restaurant business in accordance with its new operational focus following its acquisition ofHFL Limited , an Asian food and beverage company operating a premium Chinese seafood restaurant in Hong Kong. Q3 FY2020 highlights: - A loss of
$0.25 million for the quarter and$0.60 million for the nine months of Fiscal 2020 ($0.56 million for Q3 and nine months of Fiscal 2019) - Revenues for the quarter of
$0.67 million and$2.37 million for the nine months of Fiscal 2020 (Q3 FY2019:$0.91 million ;$1.24 million for nine months of Fiscal 2019) - Cost of sales of
$0.21 million and$0.70 million for the quarter and year-to-date respectively, representing the cost of inventories used (Q3 FY2019:$0.26 million ;$0.36 million for nine months of Fiscal 2019) - General, selling and administration expenses of
$0.50 million for the quarter and$1.65 million for the nine months of Fiscal 2020 (Q3 FY2019:$0.72 million ;$0.94 million for the nine months of Fiscal 2019), which includes staff costs (wages and allowances, pension costs, employee benefits etc.) of approximately$0.34 million for the quarter and$1.14 million for the year-to-date (Q3 FY2019:$0.45 million ;$0.57 million for the nine months of Fiscal 2019) - Depreciation and amortization amounted to
$0.20 million for the quarter and$0.59 million for the nine months of Fiscal 2020 while property related management expenses total$0.04 million and$0.12 million for the quarter and the nine months of Fiscal 2020 respectively. This corresponds with depreciation and amortization amounted to$0.08 million in Q3 of FY2019 and$0.11 million for the nine months of Fiscal 2019 while property lease payments and related management expenses total$0.15 million and$0.20 million in Q3 of FY2019 and or the nine months of Fiscal 2019 respectively). - Strategic Investments and other activities – This division includes strategic investments, proprietary investments and other activities of the Group. Q3 FY2020 highlights:
- A net loss of
$0.15 million in Q3 FY2020 (Q3 FY2019: loss of$0.25 million ) and$0.55 million for the nine months of FY2020 (nine months of FY2019: loss of$0.93 million ) - A net fair value loss on financial assets at fair value through profit or loss of
$21,000 for the quarter and a net fair value gain of$20,000 for the nine month of FY2020 - Selling, general and administrative expenses of
$0.14 million in Q3 and$0.60 million for the year-to-date against$0.25 million and$0.65 million for the corresponding periods of FY2019 - Discontinued Operations of Technology Products and Services – This division includes the operations of
Pop Electronic Products Limited andDacEasy (H.K.) Limited , two technology investments the Company recently divested itself of in Q4 FY2019. This segment is included in the Company's results for year-over-year comparison purposes. - A loss of
$33,000 was recorded in last year's third quarter (Q3 FY2020: N/A), resulting in a small loss of$39,000 for the nine months of Fiscal 2019 (nine months of FY2020: N/A).
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This press release contains certain statements that reflect management's expectations and objectives for the Company's future performance, opportunities and growth, which statements constitute "forward‑looking information" and "forward-looking statements" (collectively "forward-looking information") under applicable securities laws. Such statements, other than statements of historical fact, are predictive in nature or depend on future events or conditions. Forward-looking information involves estimates, assumptions, judgments and uncertainties. These statements may be identified by the use of forward‑looking terminology such as "may", "will", "should", "anticipate", "expect", "believe", "predict", "estimate", "continue", "intend", "plan" and variations of these words or other similar expressions. Specifically, this press release includes forward-looking information in respect of
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