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Kingsway International Reports Financial Results for the Three Months Ended September 30, 2009

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^{Published in Business and Finance on Friday, November 13th 2009 at 17:02 GMT by Market Wire}  

 - Net loss was $2.0 million, or $0.0252 per share, compared with a net loss of $9.2 million, or $0.1147 per share, for the same period last year; - Revenue from services and other income increased to $3.5 million compared with $3.3 million for the same period last year; and - Trading loss from financial assets held for trading was $0.2 million compared with a loss of $10.4 million for the same period last year. 

 Segmented Results of Operations for the First Quarter ------------------------------------------------------------------------- Corporate Investment in Finance & Securities Corporate Capital Asset & Structured and Other Brokerage Markets Management Investment Activities Total $'000 $'000 $'000 $'000 $'000 $'000 ------------------------------------------------------------------------- Commission & fee income 2,066 609 11 6 223 2,915 Interest and other income 186 16 - 357 (10) 549 Trading (loss)/ income (7) 585 - (767) - (189) ------------------------------------------------------------------------- 2,245 1,210 11 (404) 213 3,275 Inter- segment revenue 9 - - - 570 579 Selling and admini- strative expenses (2,340) (689) (55) (507) (1,907) (5,498) Share of profit/ (loss) of investments subject to significant influence 40 - (12) (14) - 14 Other expenses (75) (2) - (444) (68) (589) ------------------------------------------------------------------------- (Loss)/ income before income taxes and non- controlling interests (121) 519 (56) (1,369) (1,192) (2,219) ------------------------------------------------------------------------- - Brokerage Kingsway was ranked the Best Local Brokerage in Hong Kong by the Asiamoney Brokers Poll in October 2009. Kingsway has enjoyed top three honors for the last five consecutive years. Revenue for the first quarter increased 31% to $2.2 million, compared with $1.7 million for the same quarter last year, as a result of the active market conditions. The division recorded an overall loss of $0.1 million for the quarter, compared with $0.4 million for the same period last year. - Corporate Finance & Capital Markets Total revenue of $1.2 million was recognized in the current quarter, compared with negative revenue of $0.4 million in the corresponding quarter last year. The improved results in the division were mainly attributable to the trading income of $0.6 million recognised from the unrealised gain on its investment portfolio during the quarter. Overall, the division generated income of $0.5 million for the quarter, compared with a loss of $0.6 million for the same period last year. - Asset Management The division recorded total revenue of $0.01 million for the quarter, compared with negative revenue of $0.7 million for the same period last year. The loss recorded in the first quarter last year resulted from the loss on disposal of an investment received as management fees in prior years. The division recorded an overall loss of $0.06 million for the current quarter, compared with $0.8 million for the corresponding quarter last year. - Investment In Securities and Structured Investment The trading loss was significantly reduced to $0.8 million in the quarter, from $8.4 million in the same period last year, as a result of the recovery of the Hong Kong market starting from the last quarter. The division recorded an overall loss of $1.4 million for the quarter, compared with $10.4 million in the same quarter last year. - Corporate and Other Activities The corporate and other activities of the Group incurred an overall loss of $1.2 million for the quarter, compared with $0.6 million for the corresponding quarter last year. The significant increase in the loss resulted from the higher staff costs and overhead expenses associated with the establishment of the new investment and advisory group focused on the natural resources sector in the PRC in fiscal year 2009.