Press Release
Shenzhen Longhua District Municipal Committee, Head of United Front Work Department Zhan Huijun and Longhua District Committee of the CPPCC Vice President Yang Donghui visited Realord Group
On 11th December 2017, Zhan Huijun, Shenzhen Longhua District Municipal Committee & Head of United Front Work Department and Yang Donghui, Vice President of Shenzhen Longhua District Committee of the CPPCC took a lead to visit Realord Group's headquarter in Hong Kong. Realord Group Chairman Dr. Bryan Lin, Xiaohui arranged a meeting for those visitors.
Those who involved in the meeting included Zhang Gaopan, Executive deputy head of Longhua District Committee United Front Work Department and Longhua District Federation of Industry and Commerce (General Chamber of Commerce) Executive Vice President (Executive Vice President) ; Zhai Zhaohe, Director of Longhua District Committee of the CPPCC Hong Kong and Macao Friendship Committee; Xing Jiankun, Deputy Head of Longhua District Committee of United Front Department; Wu Lianxi, Longhua District, Vice President of Federation of Industry and Commerce, Chairman of Dongwu Group; Ye Jiajia, Shenzhen, Committee of Shenzhen MPC, Longhua District, Vice President of Longuha District Federation of Industry and Commerce, Vice President of Shenzhen Silver Star Investment Group; Nie Quan, Vice President of Longhua District Federation of Industry and Commerce, and Chairman of Shenzhen Liande Automation Equipment Co. Ltd; Liu Rihe, Vice President of Longhua District Federation of Industry and Commerce, Honorary Chairman of Hong Kong Guanlan Association, Shenzhen Tian Sheng Industrial Development Co. Ltd; Zhang Wenhai, Vice President of Longhua District Federation of Industry, Vice President of Longhua District Youth Enterprises Federation, Vice President of Shenzhen Yi Mei Furniture Industry Co. Ltd. On behalf of the Group, Su Jiaohua, CEO , Lin Xiaodong, Executive Director and Chan Chu Kin, CFO & Company Secretary participated in this event.
During the meeting, Dr. Bryan Lin, Xiaohui concisely introduced the Group’s businesses and property investment in Guanlan, Longhua District, namely the Talents Housing Project "Realord Villas". Since late November 2017, the flat in-take for tenants in Realord Villas has been commencing and the shopping center "Realord V City" and the retail stores are in planning. The Group currently owns two industrial properties in Guanlan, Longhua District. One is located at Zhangkengjing which is now applying for the change of its land use. The other one is located at Qiankeng which is for rental purpose.
After listening Dr. Lin's report, Zhan said that there is a strong connection between Realord Group and Longhua District, and he hoped that they are not only just communicated upon real estate or property investment, but also cooperated in real economy, industry or talents development. Also, the Group was expected to have more communication and exchanges with the Longhua District Government in the future.
CEO Madam Su Jiaohua pointed out the traffic congestion in Longhua District is getting increasingly serious where the parking facilities are in higher demand. In fact, the real estate enterprises are willing to construct multi-storey car park or underground parking lots. However, they eventally gave up to do so because of its high construction costs, low returns and other limitations. Therefore, Su suggested Longhua District Government consider to formulate relevant measures such as financing or subsidies to aid the enterprises for constructing those facilities. Vice President Yang Donghui agreed with that and would report such opinion to the Longhua District Government someday.
Dr. Lin Xiaohui thanked to the leaders of Longhua District and the fellows from Federation of Industry and Commerce for their coming and visit. He also thanked to Zhan's valuable guidances and suggestions which are realy helpful to the Group's development in Guanlan in the future.
Realord Receives China Securities Golden Bauhinia "The Best Listed Company" Awards
(November 30, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that the Company receives the 7th China Securities Golden Bauhinia “the Best Listed Company” Awards.
China Securities Golden Bauhinia Awards acknowledge enterprises and managements with great performance and achievements, playing important roles in China capital market, and allow capital market and investors from all over the world to understand the development of excellent enterprises in China. Receiving the “Best Listed Company” Awards significates Realord has been catching attention from investors and media, especially the great performance in Company’s recent return for shareholders, profitability, financial securities, sustainable development, operation efficiency, company management and brand value etc. Also it represents the group’s effort has been acknowledged and will consolidate the Company’s future development direction, pace and its achievement for higher goals.
Dr. Lin Xiaohui (Middle), Madam Su Jiaohua (Left) and Mr. Lin Xiaodong (Right) appreciate the organizing committee of China Securities Golden Bauhinia Awards for their complement and acknowledgement to Realord.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses after receiving the awards "We appreciate the organizing committee of China Securities Golden Bauhinia Awards for providing us such a high quality platform to interact with leaders in the industry. We would also like to thank the organizing committee for their complement and acknowledgement to Realord. The success of the Company relies on the support of the Company team, clients, shareholders and investors, we will continue to maintain high efficiency and performance in company management and will seize any opportunity to create more value and contribute to the society.”
About China Securities Golden Bauhinia Awards
The 7th China Securities Golden Bauhinia Awards, organized by Ta Kung Wen Wei Media Group and co-organized by Beijing Listed Company Association, The Hong Kong Institute of Chartered Secretaries, The Hong Kong Chinese Enterprises Association, Chinese Securities Association of Hong Kong, Chinese Financial Association of Hong Kong and Hong Kong Securities Professionals Association, was held in Grand Hyatt Hong Kong. The Awards is one the most authoritative and creditable list company elections, aiming at complementing listed companies and managements with excellent performance in Hong Kong and China. The committee is constituted of different professional security institutions, with fair and strict election process.
Realord Group included into MSCI China Small Cap Index
(November 14, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that the Group has been included as a constituent of China Index of MSCI Global Small Cap Index and removed from MSCI Hong Kong Small Cap Index under MSCI semi-annual index constituents review. Such changes will be in effect after market close on November 30, 2017.
MSCI Global Index is a stock index established by Morgan Stanley Capital International and differentiated according to industry, country and region etc., covering the globe. It picks constituents with reference to market value, trade volume, number of floating shares and shareholding ratio etc. Constituents admitted are mostly corporates with stable profit, development potential and competitiveness. Over 80% of the world’s fund managers take reference from MSCI Global Index in capital allocation and making risk management strategies.
The Group has been admitted as a constituent of MSCI Hong Kong Micro Cap Index in 2014 and a constituent of MSCI Hong Kong Small Cap Index in 2015.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses "MSCI Index Series are investment reference which attract world-wide attention. Being admitted as constituent of China Index of MSCI Global Small Cap Index has shown approval of investment institutions towards the performance of the Group and at the same time witnessed the Group’s growth in capital market. This is going to help the Group in seizing other investment and corporation opportunities. We will keep up the good work and strike for the best for our investors and shareholders.”
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Disposal of Commercial Printing Business Realord Concentrates Resources on Prospective Business Development in the Future
(November 13, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that on November 10, 2017, Realord has entered into a transaction agreement with Brilliant Gold Financial Limited (“Brilliant Gold” or “Purchaser”) in which Capital Financial Press Limited (“Target”), a wholly-owned subsidiary of the Group, including its all Sale Shares with approximately $5.34 million HKD and an amount of approximately $1.5 million HKD Sale Loan owing to the Group, will be sold to Purchaser for the consideration of approximately $6.84 million HKD totally. The consideration is to be satisfied in full in cash at completion.
Target is a wholly-owned subsidiary of the Group, principally engaged in commercial printing business including graphic design, providing translation and press conference service. The consolidated net assets value of the Target as at September 30, 2017 was approximately $6.27 million HKD. The commercial printing business is the second largest business segment of the Group in 1H2017, contributing approximately 18% of the total revenue of the Group. However, due to the inflating operating costs and the intense competition, the segment profit of the commercial printing business was diminishing. Regarding the limited business prospect, the Board has decided to dispose of the commercial printing business in order to concentrate resources on other more prospective businesses. The net proceeds from the disposal will be used as general working capital and will be funding future business development opportunities of the Group.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses "Disposing the commercial printing business helps the Group concentrate resources on environmental protection development and other businesses, the Group will continue in diversifying business development and seize any opportunities in promoting the Group to grow steadily and giving returns to the shareholders and investors.”
Appointment of Mr. Chan Chu Kin as the Chief Financial Officer and Company Secretary
(September 12, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce the appointment of Mr. Chan Chu Kin (“Mr. CK Chan”) as the chief financial officer and company secretary of the Company, and also the authorised representative of the Company pursuant to Rule 3.05 of the Listing Rules with effect from 12 September 2017.
The original chief financial officer and company secretary of the Company, Mr. Chan Ying Kay (“Mr. YK Chan”), has tendered his resignation due to his other commitments. Mr. CK Chan is appointed to take up the duties. Mr. CK Chan joined the Group in June 2017 and has over 15 years of experience in accounting and finance. Mr. CK Chan is a member of both the Certified Practising Accountant Australia and the Hong Kong Institute of Certified Public Accountants.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group, expresses appreciation and gratitude to Mr. YK Chan for his contributions to the Company during his tenure of office and welcomes Mr. CK Chan on his new appointment. Dr. Lin believes that with the experience in accounting and finance of the new chief financial officer and company secretary, the Group will continue to diversify and consolidate the Group’s business, and seize market opportunities to strike for better achievement.
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Net Profit in Environmental Protection Business Recorded A Twofold Increase Realord Issues 750,000 Consideration Shares At HK$7.00
(August 31, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that as of 31 December 2017, Realord Environmental Protection Industrial Company Limited (formerly known as Top Eagle International Trading Limited), an indirect 60%-owned subsidiary of the Company, recorded Qualified Profit of amounted to approximately HK$29,257,000, increased by 95% of the expected profit HK$15,000,000. In accordance with the terms of the Acquisition Agreement, the Company shall as part of the Consideration allot and issue 750,000 Consideration Shares to Fortune Victory Asia Corporation (“Vendor”) or its nominee(s) within 10 Business Days.
Realord Environmental Protection Industrial Company (Realord Environmental Protection) and its subsidiary Tong Bao Renewable Materials Limited are mainly engaged in recycling, dismantling and sales of scrap materials, such as copper, aluminum, iron and plastic. Their operation base is located in Wuzhou Import Renewable Resources Processing Park of Guangxi Wuzhou City where has been approved as the "urban mining" demonstration base.
According to the 2017 interim report of the Company, revenue in environmental protection business recorded HKD 141.9 million with net profit of HKD 8 million. Moreover, Realord Environmental Protection has entered in an investment agreement with Wuzhou Import Renewable Resources Processing Park Management Committee on 8 June 2017. The investment, amounted to approximately RMB 350 million, includes setting up a new processing plant for recycling and production of aluminum ingots project with a target annual production capacity of 100,000 tonnes which means the current scrap material recycling business will be with a more value-added model and higher profit margin, and it also provides a favourable environment for the Group to further develop its business.
According to the agreement, the Company has completed the acquisition of Realord Environmental Protection with the Sale Shares at a maximum consideration of Sale Shares of HK$60,000,000, included HK$25,000,000 in cash and as to a maximum of HK$35,000,000 by way of allotment and issuance of up to 5,000,000 Consideration Shares by the Company at the issue price of HK$7.00 per Consideration Share. In accordance with the terms of the Acquisition Agreement, the Company shall allot and issue 750,000 Consideration Shares as part of the Consideration to the Vendor with Qualified Profit of Realord Environmental Protection is equal to or more than HK$15,000,000 for the financial year ended 31 December 2016; 1,500,000 Consideration Shares Qualified Profit of Realord Environmental Protection is equal to or more than HK$35,000,000 for the financial year ending 31 December 2017 and 2,500,000 Consideration Shares Qualified Profit of Realord Environmental Protection is equal to or more than HK$50,000,000 for the financial year ending 31 December 2018. The Company is not required to allot and issue any of the corresponding amount of the Consideration Shares under the respective tranches to the Vendor with Qualified Profit of less than the Target Profit for the Relevant Financial Year.
Domestic demand for metals increased significantly with the raising price, especially in copper and aluminum. The price of Copper futures has marked a new high in past two years. It is worth noting that the State Council has issued the "13th Five-Year Plan for Eco-Environmental Protection" to encourage the development of recycling industry in December 2016, so as to cultivate recycling and comprehensive utilization enterprises through the national "urban mining" demonstration base. On 27 July 2017, the State Council promulgated the "Implementation Plan to Enhance Solid Waste Import Management System by Prohibiting the Entry of Foreign Waste", which has strengthened supervision and management of solid waste importation, curbed smuggling and illegal importation of foreign waste, and abolished the importation qualification of some enterprises who do not have capability to utilize and process the wastes by themselves. The policies would promote industrial reformation and transformation, optimize the industrial structure, and improve the excess capability of the industry.
According to "China Renewable Resources Recycling Industry Development Report 2017" released by the Ministry of Commerce, as of the end of 2016, the total quantity of recycled scrap iron, steel, non-ferrous metals and other top ten renewable resources were increased by 3.7% to 256 million tonnes. The total quantity is expected to remain increase in 2017, and the price of renewable resources will be increased.
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Revenue increased by 133% to HK$216 million Environmental Protection Business Contributes 65.6% of Revenue
REALORD'S 1H2017 INTERIM RESULTS HIGHLIGHTS
(HK$’000)
For the six months
ended 30 June
Changes (%)
1H2017
1H2016
Turnover
216,233
92,844
+133.0%
Gross Profit
52,280
41,674
+25.45%
Profit/(Loss)
87,091
81,689
+6.61%
Profit/(Loss) Attributable to The Equity Holders
84,273
81,689
+3.16%
Earnings Per Share (HK Cent)
7.33
7.08
+3.53%
As at
30/6/2017
As at
31/12/2016
Cash & Cash Equivalent
82,294
51,791
+58.90%
Total Assets
2,023,813
1,607,846
+25.80%
Total Equity
1,027,272
898,097
+14.38%
(August 28, 2017 - Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce its unaudited interim results for the six months ended 30 June 2017 (the “Period”). The Group’s results recorded an increase in profit by 6.6% to approximately HK$87.09 million for the Period.
For the period under review, the Group recorded a turnover of approximately HK$216.2 million for the six months ended 30 June 2017, representing a significant increase by 133.0%. The increase in the turnover of the Group was primarily due to the Group consolidating the operating performance attributable to the Environmental Protection Segment, amounted to approximately HK$141.9 million since the acquisition of Realord Environmental Protection Industrial Company Limited (formerly known as Top Eagle International Trading Limited). The overall decrease in the gross margin was due to the low gross profit margin achieved by Environmental Protection Segment, which contributed the majority part of the turnover of the Group. During the period, the results recorded approximately HK$87.09 million of profit. The earnings per share was HK7.33 cents.
The increase in profit attributable to the equity holders was mainly due to the fair value gain on investment properties amounted to approximately HK$144.1 million, but partly offset by the related deferred taxation of the fair value gain of approximately HK$41.6 million and the increase in corporate expenses.
Business review
The newly acquired Environment Protection Segment recorded a revenue of approximately HK$141.9 million during the period under review, representing 65.6% of total revenue of the Group. The segment result was profit of approximately HK$8.0 million during the period under review.
The Commercial Printing Segment recorded a revenue of approximately HK$38.9 million during the period under review, representing 18.0% of the total revenue of the Group. There was a slight increase in segment revenue of 1.2% to approximately HK$38.9 million as compared to approximately HK$38.4 million in the last corresponding period. However, the inflating operating cost resulted in similar level of operating profit of approximately HK$0.4 million for the period under review and the last corresponding period.
The Financial Services Segment recorded a revenue of approximately HK$5.4 million during the period under review, representing 2.5% of the total revenue of the Group. The revenue from this segment remained stable as compared from approximately HK$5.3 million in the last corresponding period to approximately HK$5.4 million during the period under review. The segment results increased from profit of approximately HK$1.1 million in the last corresponding period to profit of approximately HK$1.9 million during the period under review.
The Property Investment Segment recorded a revenue of approximately HK$9.1 million during the period under review, representing 4.2% of the total revenue of the Group. The revenue from this segment recorded approximately HK$9.1 million as compared to approximately HK$5.5 million in the last corresponding period. The profit from this segment decreased from approximately HK$179.1 million in the last corresponding period to approximately HK$150.8 million during the period under review. The decrease was mainly due to the fair value gain on investment properties being recorded during the period under review amounted to approximately HK$144.1 million was less than that in the last corresponding period.
The Motor Vehicle Parts Segment recorded a revenue of approximately HK$19.3 million during the period under review, representing 8.9% of the total revenue of the Group. With a view of tightening the credit control policy and shortening of credit period granted to the customers, the segment revenue noted a significant decrease by 50.2% to approximately HK$19.3 million as compared to approximately HK$38.8 million in the last corresponding period. The segment recorded a profit of approximately HK$0.1 million during the period under review as compared to a profit of approximately HK$1.7 million in the last corresponding period.
The Hangtag Segment recorded a revenue of approximately HK$1.6 million during the period under review, representing 0.7% of the total revenue of the Group. The segment revenue decreased significantly of 66.3% from the last corresponding period of approximately HK$4.8 million to approximately HK$1.6 million for the period under review. Through implementation of continuing cost control measures, including outsourcing part of manufacturing processes, the loss from this segment remained in a low level of HK$0.1 million during the period under review comparing to approximately HK$0.4 million in the last corresponding period.
Outlook
On 28 February 2017, the Group completed the acquisition of 60% equity interest of Realord Environmental Protection Industrial Company Limited (formerly known as Top Eagle International Trading Limited), which can diversify the business of the Group with the objective of broadening its sources of income. The Directors are optimistic about the prospects of the environmental protection industry and are of the view that it is an opportunity for the Group to further diversify the business scope of the Group through the acquisition. The Environmental Protection segment is engaged in dismantling and trading of scrap materials (e.g. scrap metal and PVC waste) and acting as an agent by sourcing scrap materials. The operating base is located in Wuzhou Import Renewable Resources Processing Park. Moreover, the Group has entered in an investment agreement, which costs approximately RMB 350 million to carry out a recycling and production of aluminum ingots project in the Park with a target annual production capacity of 100,000 tonnes, which means the Environmental Protection business will be strengthened.
The operating environment of the commercial printing and hangtag businesses will continue to be competitive in the coming years. The Group shall strengthen its business development team to achieve sales growth and increase market share, however, the intense competition in the Commercial Printing Segment shall limit the Group to pass the inflating operating cost to customers. Due to the persistent increase in production cost in the PRC, some of the customers shift its demand to other developing countries in Asia-Pacific region, the operating environment of Hangtag Segment is even more challenging and we foresee that customers’ demand of hangtags labels, shirt paper boards and plastic bags would keep diminishing.
The Group is in the process to set up the PRC operations of Motor Vehicle Parts Segment in Guangzhou. We expect that the PRC operations will effectively contribute to the business expansion of the sales and distribution of motor vehicle parts business. Besides, the Group is in the process to develop the financial services business, which would provide financial services including securities brokerage, margin financing, money lending and financial leasing services. The Group had entered into an agreement with 5 other independent third parties to set up a joint venture Security Company named “Yuegang Securities Limited” to carry out securities businesses in Nansha Free Trade Zone, Guangzhou, the PRC. Through the Security Company, the Group could tap into the securities business in the PRC, which was considered as a strictly regulated industry. We believe the set-up of the Security Company, when materialised, represents a valuable investment opportunity for the Group to expand its securities services business and to enable the Group to exchange its business network and relationship in the PRC, and hence to gain a foothold in the PRC market.
Looking forward, the Group is optimistic about the prospects of the environmental protection industry and are of the view that it is an opportunity for the Group to further diversify the business scope of the Group through the acquisition. The Group will strike to explore for any potential real estate development or property investment opportunities. For sustaining a long-term growth, we will also keep on exploring all potential opportunity to develop its businesses.
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Realord in HKEx’s CAS Phase 2 Stock List
(June 18, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that the Group is included in the list of securities for Phase 2 of the Closing Auction Session (CAS) announced by Hong Kong Exchanges and Clearing Limited (HKEx), which will roll out in its securities market on next Monday, 24 July 2017.
The newly additions in the list of the phase 2, including Realord Group Holding Limited, are 150 constituents of Hang Seng Composite SmallCap Index (HSSI). The total 670 securities with CAS will accept at-auction, at-auction limit orders, and the regulated short selling orders during the session. The price of short selling orders cannot be lower than the CAS Reference Price at 4pm.
About the Closing Auction Session (CAS)
The current CAS is set up for the constituent stocks for indices and funds, to meet the market demand, to provide more efficient closing transactions to ensure the market’s normal operation, and to stabilize its price volatility. The launch of the Closing Auction Session means the trading hours will be extended for more ten minutes to close at 4:10 pm. The investors may set up at-auction and at-auction limit orders during the session.
The closing auction session is implemented into two phases. On 25 July 2016, constituents of the Hang Seng Composite LargeCap and MidCap Index, A/H stocks, and ETFs were the stocks applied with CAS in phase 1.
During the phase 2, the HSSI constituents were newly included in the list and some originally from the list were deleted due to the removal from the respective indices. What is more, the securities in the CAS list accept the regulated short selling orders. The launch of CAS enables to meet market demand that is convenient for investors, especially institutional investors and fund managers, for trade execution at securities’ closing prices
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