Realord Group Holdings Limited

Press Release

2024-03-25

Realord Group Announces FY2023 Results: Revenue reached HK$801 million (25 March 2024) Realord Group Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, stock code: 1196) is pleased to announce its annual results for the year ended 31 December 2023. During the period, the Group recorded a total revenue of approximately HK$801 million, representing a year-on-year and gross profit was HK$319 million, representing a year-on-year increase of 11.1%; profit for the Year and the profit attributable to shareholders of the company were HK$41.3 million and HK$76.7million respectively. Earnings per share for the Year was HK 5.32 cent. Business ReviewThe principal activities of the Group during the year included the Property Segment, the Financial Services Segment, the Environment Protection (EP) Segment, the Motor Vehicle Parts (MVP) Segment, the Commercial Printing Segment, the Department Store Segment, the Latin American and Caribbean (LAC) Segment, and Others Segment. Property investment Segment Properties investment, development and commercial operation have always been one of the main development strategies of the Group’s overall business deployment and development goals. The Group holds three investment property projects, namely Realord Villas and Zhangkengjing Property in Longhua District, and Realord Technology Park in Guangming District in Shenzhen, the PRC. The Group also holds proposed development project and properties under development namely Laiying Garden in Nanshan District and Qiankeng Property in Longhua District respectively in Shenzhen, the PRC. There are five property projects on hand as at 31 December 2023. There are five real estate projects in hand. Revenue from the property segment is mainly derived from rental income from the Group's investment properties. In 2023, the Group generated approximately HK$19.3 million in rental income, representing a year-on-year increase of 33.1%. The number of tenants in the Sincere Mall has increased to 50. During the year, the property segment recorded a segment profit of HK$782.5 million. The segment result was mainly resulted from the net gain on fair value changes in the investment properties of HK$1097.8 million and reversal of provision for properties under development of the Qiankeng Property of HK$62.1 million. Firstly, for Realord Villas, up to the date of report, the number of tenants of Sincere Mall increased to 50 including children’s amusement park, education training centres, restaurants, fitness studios and billiard room. Secondly, for Realord Technology Park, with total construction scale of approximately 81,000 square meters. [For Phase I, a lease agreement was signed with hotel operator who had international hotel brands operating experience under a lease term starting from Year 2024.] For Phase II, the development plan will be started once government approval is granted. Thirdly, for Qiankeng Property, the construction scale is approximately 112,000 square meters and the redevelopment works are processing since the Group obtained the construction permit from relevant government authorities in October 2023. Fourthly, for Zhangkengjing Property, the application of change of land use from industrial use to residential apartments and commercial use is still under review as at the reporting date. Fifthly, for Laiying Garden, the Group obtained the land use permit from relevant government authorities in July 2023 and the redevelopment work is expected to be commenced once permits from relevant government authorities are granted. Financial Services SegmentFinancial Services Segment generated a revenue of HK$142.5 million in FY2023, which increased 13.3% and segment profit of HK$75.7 million. The financial services segment is committed to providing customers with diversified and high-quality services in the primary and secondary markets. Interest income from money lending business and margin financing continued to rise, driving the financial services category to achieve steady growth despite the sluggish market conditions. In addition, the new mobile trading system brings customers a fast and stable trading experience, helping to enhance brand awareness. The financial services category will continue to develop various investment products to meet market needs and provide customers with diversified high-quality services in the international capital market. At the same time, the financial services category is also actively preparing to launch dark pools and US stock trading systems, and is expanding its sales and business teams to support business development. EP SegmentEP Segment’s revenue recorded HK$357.8 million in FY2023 due to stricter credit control and the significant decrease in copper demand from customers in FY2023 as the copper price from suppliers still maintained a high level after the first quarter of 2023. MVP SegmentThe revenue of MVP was HK$43.1 million in FY2023 since the market of the Mainland China experienced a slow and uncertain recovery and stricter credit control. Due to the slow and uncertain recovery in market of the Mainland China, the demand for motor vehicle parts was adversely affected in FY2023. The Group has downsized its scale of operations in order to minimize the operating costs. In order to maintain sustainable growth in business, the Group has to further strengthen its relationship with existing suppliers and explore new customer bases.] Commercial Printing SegmentThe Commercial Printing Segment's revenue recorded HK$54.7 million in FY2023. Due to the slow down of financial markets in Hong Kong, there was decrease in demand of commercial printing services. Though the Group has downsized its scale of operations in order to minimize the operating costs. In order to maintain sustainable growth in business, the Group has to further strengthen its relationship with existing customers and explore new customer bases. Department Store SegmentDuring FY2023, the Department Store Segment recorded a segment revenue of HK$145.6 million. The improvement of gross profit margin was increased from 55.9% to 57.4%. During FY2023, due to the gradual recovery of economic activities in Hong Kong and the full resumption of normal travel implemented in February 2023 between the Mainland China and Hong Kong, the Department Store Segment could maintain its revenue even after one of the stores closed in late 2022. The improvement in revenue of the remaining stores covered the loss of revenue from the closed store. However, the increased trend of online behavior of the customers limited limited the effect of recovery and hence hinder the performance of our department store operation. In view of improving the segment performance, the Department Store Segment continued to adopt pro-active measures to reduce operating costs; to negotiate with the landlords for rental concession; to reassess the profitability of stores and the products portfolios. To maintain a healthy inventory level, the clearance of out-of-season inventories continued to be major goal of the Department Store Segment during FY2023. LAC Segment The revenue of LAC Segment generated from citizenship application and consultancy services on citizenship by investment programme (“CBI Programme”) was HK$34.8 million in FY2023. The increase in revenue was resulted from the applications of the client’s citizenship had been approved by the Minister as set out in Section 8(1) of the Grenada Citizenship by Investment Act 15 of 2013. The principal business of LAC Segment are provision of citizenship application and consultancy services on CBI Programme and development of the Grenada Project. The Grenada Project involves the development of a mixed property project consisting educational facilities, apartments for student, residential villas, hotel and resort facilities, commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities. The Government of Grenada granted LAC Segment the “Approval Project Status” such that LAC Segment can develop the Grenada Project on foreign investors’ funding in accordance with the local laws under Section 11 of the Grenada Citizenship by Investment Act 15 of 2013 and a CBI Programme in Grenada. Through the CBI Programme, LAC Segment is authorised to raise capital from investors of the Project for funding the construction and development costs. Qualified investors of the real properties will be granted permanent Grenadian citizenship and a passport offering visa-free travel to over 153 countries including the United Kingdom, EU Schengen countries and the Mainland China. The Project marks a significant flag of our Group into the Caribbean region. The Group is keen to leverage its experience in the Grenada Project to explore further investment opportunities around the Caribbean economic zone and Latin American region. The Group has further targeted to invest in four other Caribbean countries, namely Antigua and Barbuda, Saint Lucia, Saint Kitts and Nevis, and Dominica. These four countries, together with Grenada (altogether, the “Designated Caribbean Countries”), were ranked top five popular investment destination by CBI Programme by the magazine “Professional Wealth Management” published by “Financial Times” in 2021. Other than the Grenada Project, the Group is also in negotiation with the authorities of the Republic of Panama on a power generation project to be granted under the foreign investors investment scheme of the Republic of Panama. As seen, it is the corporate strategy of the Group to invest and/or to form joint ventures with local governments in the targeted countries to set up and develop new businesses taking advantage of raising capital from foreign investors through the CBI Programme of different countries. The Group has been identifying suitable investment projects in and develop appropriate business plans for each of the Designated Caribbean Countries and the Republic of Panama. After discussions with and obtaining support from the local governments of each of these Caribbean countries and the Republic of Panama, the Group will determine and proceed with the pertinent investment projects, with an aim to maximizing the return for the Shareholders. To this end, the Group has established a management and marketing team with offices in Beijing, Shanghai, Shenzhen and Hong Kong and engaged consultants in Vietnam, the United States of America to implement the marketing strategies formulated for promoting the citizenship by investment programmes and investment opportunities of each of the aforesaid countries. Dr. Bryan Lin, Chairman of Realord Group, said: "In the future, the Group will continue to operate its business with a cautious and optimistic attitude. While exploring investment opportunities in the Latin American and Caribbean markets, we will also actively foster the development of Shenzhen urban renewal projects and create the best value and returns to our shareholders and investors."

2024-03-06

NCCPPCC Member Bryan Lin: it is recommended to cooperate with enterprises and universities to cultivate some targeted talents Several National People's Congress and members of the National Committee of the Chinese People's Political Consultative Conference (NCCPPCC) from Hong Kong and Macao Special Administrative Regions told CCTV reporters that they would actively provide proposals and suggestions for the two sessions to better integrate Hong Kong and Macao into the overall development of the country and promote the steady and long-term implementation of one country and two systems. NCPPCC Member from Hong Kong, Realord Group & The Sincere Company Limited Chairman Bryan Lin, said that several proposals were submitted this year, one of which is to create an innovative application demonstration zone in the northern metropolitan area to make full use of land resources and provide some conditions for the commercialization of new technologies; the other is to It is a joint enterprise and university to guide the education and training of some targeted talents in the northern metropolitan area. Your browser does not support HTML video.

2024-03-05

2024-03-05

NCCPCC member Bryan Lin interviewed in CCTV: To promote the development of the Greater Bay Area and to intergrate it national development At the opening of the second session of the 14th National Committee of the Chinese People’s Political Consultative Conference (NCCPPCC), representatives of the members of National Committee of the Chinese People’s Political Consultative Conference from Hong Kong expressed that they will promote Hong Kong’s active integration into the overall development of the country, to promote the high-quality development of the Greater Bay Area, and better leverage Hong Kong’s unique position and advantages of connecting the world with the motherland. Bryan Lin Xiaohui, a member of the NCCPPCC and Realord Group (1196.HK) Chairman and The Sincere Company (0244.HK) Chairman, said in an interview with a CCTV reporter that his proposals this year are to focus on the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and the main content includes environmental protection and technological innovation, and tourism development. In terms of environmental protection, it is mainly recommended to use the industry-university-research advantages of the Guangdong-Hong Kong-Macao Greater Bay Area to further integrate its environmental protection industry and tourism development. It is recommended that the Greater Bay Area utilize the market of the Hong Kong International Tourism Center to achieve regional tourism integration. Hong Kong has the role of the motherland. Backing up and facing the world is one of Hong Kong's best positions. Your browser does not support HTML video.

2024-02-16

Sincere CEO Suki Su was interviewed by CCTV A spokesman for the Hong Kong SAR government recently stated that the number of tourists visiting Hong Kong during the Spring Festival holiday is initially estimated at about 750,000, which has reached the level of the same period in 2018; 650,000 of them are mainland tourists, exceeding the same period in 2018. Industry insiders said that the overall occupancy rate of Hong Kong hotels during the Spring Festival holiday reached 90%, and various Spring Festival celebration activities attracted citizens and tourists. Suki Su Jiaohua, CEO of Realord Group (01196.HK) and the Sincere Company (00244.HK), said in an interview with CCTV that in order to boost the tourism industry, the Hong Kong SAR government had organized different Spring Festival activities and night markets, which successfully attracted a large number of tourists to Hong Kong. Sincere's department stores business has also increased significantly, and more than 70% of the consumer groups are mainland tourists. Your browser does not support HTML video.

2024-02-09

Realord & The Sincere Company Chairman Dr. Bryan Lin wishes you a Happy Chinese New Year 2024 Dear colleagues, shareholders and friends: The Year of the Dragon is auspicious and the spring is blooming. While the New Chinese Year festival is coming, especially at this wonderful moment of bidding farewell to the Year of the Rabbit and welcoming the Year of the Dragon, I am very excited and happy. On behalf of Realord Group (Hong Kong stock code: 01196) and the Sincere Company (Hong Kong stock code: 00244), I would like to express my sincere gratitude and wishes to you who have always cared about us and supported us. Wish you have a prosperous life, a prosperous career, happiness and good health in this Year of the Dragon! Happy New Chinese Year to everyone! Another year of hard work and new progress, another year of walking hand in hand. Now, the Year of the Dragon is full of auspiciousness. That a dragon soaring to the sky, symbolizes a new starting point and new hope. In this Year of the Dragon, let us act like a dragon, be full of innovation and vitality, meeting challenges and seizing any opportunities of development. In this New Chinese Year, we will continue to adhere taking corporate responsibility to the society, and put unyielding efforts to lead Realord Group and Sincere to achieve more outstanding achievements in various fields. We altogether celebrate the Year of the Dragon and we hope that our career will be like a soaring dragon and more brilliance created. At this moment, it is a time of reunion for thousands of families to bid farewell to the old and welcome the new. I once again wish all colleagues, shareholders and friends good health and happiness with your family. May the Year of the Dragon be auspicious, may the New Year be wonderful, and thank you all for accompanying us all the way! I sincerely wish we all "descendants of the dragon" being full of energy and vitality, and wish our great motherland prosperity! Happy New Chinese Year to everyone! Lin Xiaohui, Chairman of Realord Group and Sincere Company February 10, 2024

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2024-01-31

Realord Group & Sincere Chairman Bryan Lin elected as a member of the Standing Committee of Shenzhen CPPCC (January 31, 2024, Shenzhen) The fourth session of the seventh of Shenzhen Municipal Committee of People's Political Consultative Conference (CPPCC) successfully completed and the closing ceremony is finished on the morning of January 31. The conference had reviewed the proposals from the Shenzhen CPPCC members. Shenzhen CPPCC Chairman Lin Jie delivered a speech at the closing ceremony. Shenzhen Municipal Party Committee Secretary Meng Fanli, Shenzhen Mayor Qin Weizhong, Shenzhen Municipal People's Congress Standing Committee Director Luo Wenzhi, Shenzhen Municipal People's Congress Standing Committee Party Secretary Dai Yunlong and others leaders attended the meeting. Dr. Bryan Lin, member of the National Committee of the Chinese People's Political Consultative Conference, member of the Shenzhen Municipal Committee of the Chinese People's Political Consultative Conference, chairman of Realord Group (1196.HK) and chairman of the Sincere Company (0244.HK), was unanimously elected to the member of Standing Committee of Shenzhen Municipal Committee of the Chinese People's Political Consultative Conference.

2024-01-26

Realord Group wins "The Most Influential Enterpirse in 2023" (January 25, 2024, Shenzhen) The 4th Executive Committee (Standing Committee) meeting of the 4th Futian District Federation of Industry and Commerce (General Chamber of Commerce) was held. It further boosted confidence in development and empowered Futian’s “second entrepreneurship” to start again and create a higher level of “the best district and happy Futian”. Wu Huan, member of the Standing Committee of the Futian District Committee and Minister of the United Front Work Department, attended the meeting and delivered a speech. The meeting conveyed and learned the spirit of General Secretary Xi Jinping’s congratulatory letter to the All-China Federation of Industry and Commerce on the 70th anniversary of the establishment of the All-China Federation of Industry and Commerce, as well as the spirit of the Third Session of the 8th Party Congress of Futian District and the Economic Work Conference of the District Committee, and the "Two Sessions" of Futian District, and announced that a proposal to help Futian private enterprises, additional seats of vice chariman of Futian District Federation of Industry and Commerce (General Chamber of Commerce), and also praised 4 "the most" compaies in 2023, the Benchmark of Street Chamber of Commerce, 4 "the best" Street Chambers of Commerce, d held a flag-awarding ceremony to support the "Hundreds of Thousands of Projects", added a full-time vice chairman (vice president) of the District Federation of Industry and Commerce (General Chamber of Commerce), and commended the "four best" member companies and companies in 2023. In 2023, the "Benchmark" Street Chamber of Commerce, the "Four Good" Street Chamber of Commerce, the "Party Building Leading" Advanced Street Chamber of Commerce and the "Excellent Secretary-General" and other units and individuals will be awarded plaques and awards. Among them, Realord Group Holdings Co., Ltd. won the title of "The Most Brand Influential Enterprise in 2023", etc. Realord Group was awarded as "The Most Influential Enterpirse in 2023" granted by Futian District Federation of Industry and Commerce.