Q3 FY2021 Highlights:
- A profit before tax of
$0.31 million for the quarter and a loss of$0.08 million for the year-to-date (Q3 FY2020: a loss of$1.62 million ; a loss of$3.18 million for the nine months of FY2020); - A profit attributable to shareholders of the Company of
$0.31 million (Q3 FY2020: a loss of$1.50 million ); - A share of profit of an associate of
$0.53 million for the quarter and$0.67 million for the year-to-date, representing results from the Company's primary investment in financial services through Sunwah Kingsway Capital Holdings Limited ("Sunwah Kingsway Capital ") (Q3 FY2020: a share of loss of an associate of$1.10 million ; a share of loss of$1.48 million for the nine months of FY2020); - Revenues from the Company's Restaurant Operations investment (through
HFL Limited ) of$0.65 million
for Q3 FY2021 (Q3 FY2020:$0.67 million ) and$1.91 million for the year-to-date ($2.37 million for the nine months of FY2020); - Cost of sales for
Sunwah International's Restaurant Operations investment,HFL Limited , of$0.20 million for the quarter and$0.60 million for the nine months of FY2021 (Q3 FY2020:$0.21 million ;$0.70 million for the nine months of FY2020); - Selling, general and administrative expenses of
$0.63 million withHFL Limited accounting for approximately$0.48 million for the quarter (Q3 FY2020:$0.84 million total with$0.70 million from the operation ofHFL Limited ) and$2.22 million for the year-to-date with$1.73 million from the operation ofHFL Limited (the nine months of FY2020:$2.83 million with$2.24 million from the operation ofHFL Limited ).
"We are cautiously satisfied with this quarter's improved results, attributable to prudent management policy and recovering investor sentiment in
Throughout the remainder of Fiscal 2021 and beyond,
Sunwah International Privatization:
As announced in press releases dated
Q3 FY2021 Financial Overview:
In accordance with the Company's refocused investments,
Financial Services Division – This division comprises the results from the Company's remaining interest (25.81%) 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 FY2021 highlights:- Share of profit totaling
$0.53 million for the quarter and$0.67 million for the year-to-date, up from a share of loss of$1.22 million in last year's comparable quarter and a share of loss of$2.04 million for the nine months of FY2020. - A loss on the deemed partial disposal of an associate was recorded for
$80,000 and$119,000 for the year-to-date, representing the result of the dilution of the Group's equity interests in SWK from 26.05% to 25.81% and from 26.47% to 26.05% due to the scrip dividend arrangements of SWK in the Q3 of FY2021 and FY2020 respectively. - The quarter's gain is mainly attributable to ample capital market liquidity and the positive performance of SWK's proprietary investment portfolio alongside most world governments' loose monetary policy and increased fiscal spending designed to ease the negative impact of Covid-19.
- Restaurant Operations – This division encompasses
Sunwah International's activities in the restaurant business following its acquisition ofHFL Limited , an Asian food and beverage company operating a premium Chinese seafood restaurant in Hong Kong. Q3 FY2021 highlights: - A loss of
$4,000 for the quarter (Q3 FY2020: a loss of$0.25 million ) and a loss for the nine months of FY2021 of$0.20 million (nine months of FY2020: a loss of$0.60 million ); - Revenues of
$0.65 million for the quarter (Q3 FY2020:$0.67 million ) and$1.91 million for the year-to-date (nine months of FY2020:$2.37 million ); - Other Income mainly in the form of subsidies under the
Hong Kong government's Employment Support Scheme and Catering Business Subsidy Scheme (in support of Covid-19 economic recovery efforts) of$26,000 for the current period and$0.25 million for the year-to-date; - Cost of sales of
$0.20 million , representing the cost of food and beverages used in restaurant operations (Q3 FY2020:$0.21 million ) and$0.60 million for the nine months of FY2021 (nine months of FY2020:$0.70 million ); - General, selling and administration expenses of
$0.37 million (Q3 FY2020:$0.50 million ) and$1.40 million for the year-to-date (nine months of FY2020:$1.65 million ). This includes staff costs (wages and allowances, pension costs, employee benefits etc.) of approximately$0.21 million for the quarter (Q3 FY2020:$0.34 million ) and$0.91 million for the nine months of FY2021 (nine months of FY2020:$1.14 million ). - Depreciation and amortization amounting to
$0.11 million for the quarter (Q3 FY2020:$0.20 million ) and$0.33 million for the year-to-date (nine months of FY2020:$0.59 million ). - Strategic Investments and other activities – This division includes strategic investments, proprietary investments, and other activities of the Group. Q3 FY2021 highlights:
- A net loss of
$0.14 million for the quarter (Q3 FY2021: loss of$0.15 million ) and a loss of$0.48 million for the year-to-date (nine months of FY2020: a loss of$0.55 million ) - A net fair value loss on financial assets at fair value through profit or loss of
$1,000 (Q3 FY2020: a net fair value loss of$21,000 ), mainly due to the loss on disposal and fair value change in investments in listed securities inHong Kong . A loss of$28,000 was recorded for the year-to-date (nine months of FY2020: a loss of$20,000 ); - Selling, general and administrative expenses for the quarter of
$0.15 million (Q3 FY2020:$0.14 million ) and$0.49 million for the year-to-date (nine months of FY2020:$0.60 million ).
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