Press Release
Realord Group Exclusively Sponsors Nobel Heores 2018: Dialogue Between Youth and Nobel Laureates
On 7th April, exclusively sponsored by Realord Group Holdings Limited, Nobel Heroes 2018: Dialogue Between Youth and Nobel Laureates was held in Hong Kong Convention and Exhibition Centre. Dr. Bryan Lin, Realord Group Chairman was invited to attend the event.
The opening ceremony of Nobel Heroes 2018
Two Nobel Prizes Winners and the Chinese Scholars from different regions were invited to this forum, in the hopes of commemorating 40 years of China's reform and opening and exploring the future development in China.
The guests also included Mr. Chen Dong, The deputy director of the Central Government Liaison Office in Hong Kong, Mr. Guo Yongliang, Chairman of the Hong Kong Youth Federation, Mr. Nikolaus Turner, the executive director and executive member of the Nobel Prize Laureate Foundation, Professor Aaron Ciechanover, the 2014 Nobel Laureate in Chemistry, Sir Tim Hunt, the 2001 Nobel Prize in Medicine or Physiology, Antony Leung Kam-chung, the former Financial Secretary of the Hong Kong Special Administrative Region, Yao Zuhui, the Deputy Secretary of the National People's Congress of Yaogang District, and Yang Chengwei, the Vice Minister of Youth Work Department of the Central Government Liaison Office.
The Guests of Nobel Heroes 2018
Dr. Bryan Lin, Chairman of Realord Group (Left), Mr. Anthony Leung, Kam-chung, the former Financial Secretary of the Hong Kong Special Administrative Region (Middle) and Mr. Chen Dong, The deputy director of the Central Government Liaison Office in Hong Kong
Realord Group Chairman Dr. Bryan Lin and CEO Ms Suki Su attended the event dinner
Dr. Bryan Lin Xiaohui, Chairman of the Realord Group, expressed: “we are deeply honored to have been invited for attending such a meaningful summit forum. I hope that the sharing of the Nobel Prize Winners could inspire the Hong Kong young people. As Mr. Leung Kam-sung said, the Youth should let their eyes to the world and make contributions on behalf of their own country, and even their own nation."
Revenue Jumps to HK$763M & Profit Increases Near 40%
(March 29, 2018 - Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company”, together with its subsidiaries collectively known as the “Group”, stock code: 1196.HK) is pleased to announce its audited annual results for the year ended 31 December 2017 (the “Year”).
FY2017
(HK$’000)
FY2016
(HK$’000)
Changes (%)
Revenue
762,959
209,784
+263.7%
Gross Profit
141,508
90,999
+55.5%
Profit for the year
111,221
80,097
+38.9%
Profit attributable to the equity holders
93,254
80,097
+16.4%
Earnings Per Share (HK cents)
8.11
6.95
+16.7%
During the Year under review, the Group recorded total revenue of approximately HK$763.0 million, representing a significant increase of approximately 263.7% as compared with last year of HK$209.8 million. The Group recorded a profit of approximately HK$111.2 million for the Year, increased by 38.9% year-over-year (“YoY”). The gross profit recorded approximately HK$141.5 million, representing an increase of 55.5% YoY. The earnings per share was HK8.11 cents (2016: HK6.95 cents).
The huge increase in revenue was mainly due to consolidating revenue arising from the Environmental Protection Segment of approximately HK$572.4 million (2016: Nil) and the fair value gains on investment properties of approximately HK$155.7 million (2016: HK$270.5 million), which was partly offset by the deferred taxation imposed on the fair value gains of approximately HK$48.3 million (2016: HK$125.7 million) as well as the increase in finance cost by approximately HK$30.8 million. The increase in finance cost was mainly due to the increase in interest-bearing borrowings and loans during the Year.
Business review
Environmental Protection Segment contributed most of the revenue of the Group during the Year. Since the completion of acquisition of Realord Environmental Protection in February 2017, which engaged in dismantling and trading of scrap materials and acting as an agent by sourcing scrap material in the PRC, the Group commenced the operations in the Environmental Protection Segment. The Environmental Protection Segment generated a revenue of approximately HK$572.4 million, representing 75.0% of the Group’s total revenue since the Group consolidating result of Realord Environmental Protection during the year. The segment recorded an operating profit of approximately HK$52.3 million during the year.
The Property Investment Segment recorded a revenue of approximately HK$20.2 million during the year under review, representing 2.6% of the total revenue of the Group. Revenue from this segment increased by 18.6% from an amount of HK$17.0 million last year. The increase was due to more rental income resulted from the acquisition of the properties located at Qiankeng Industrial Zone, which contributed additional revenue to the business during the year. Due to the fair value gain on investment properties recorded during the Year amounted to approximately HK$155.7 million (2016: HK270.5 million), the profit from this business decreased from approximately HK$282.4 million last year to approximately 169.2 million.
The Financial Services Segment generated revenue of approximately HK$10.8 million, representing a slight decrease of 0.8% from HK$10.9 million YoY, contributing 1.4% of the Group’s total revenue during the Year. Due to the revenue remained stable, the segment recorded an operating profit of approximately HK$2.8 million for the Year as compared to approximately HK$2.4 million in 2016, with an increase of 14.7%.
The Motor Vehicle Parts Segment contributed revenue of approximately HK$86.9 million, representing a decrease of 13.7% from HK$100.6 million YoY, which accounted for 11.4% of the Group’s total revenue during the Year. However, due to the increase in administrative expenses for expansion of the operation and the increase in finance cost, the operating profit decreased from approximately HK$5.0 million last year to approximately HK$604,000.
The Commercial Printing Segment recorded a revenue of approximately HK$70.0 million, representing a slight decrease of 4.3% from HK$73.2 million YoY, which accounted for 9.3% of the Group’s total revenue during the year. However, due to the increase in the operation cost, this segment generated an operating loss of approximately HK$8.1 million.
The Hangtag Segment recorded a revenue of approximately HK$2.6 million, representing a decrease of 69.4% from HK$8.5 million YoY, which accounted for 0.3% of the Group’s total revenue during the Year. The decrease was mainly resulted from decrease in orders from customers, which were mainly from the garment industry. Through implementation of cost control measures, included outsourcing part of the manufacturing processes, the operating loss decreased to approximately HK$27,000 for the year from approximately HK$424,000 last year.
The Trading Segment recorded no revenue as the Group did not conduct any transactions under this segment during the year under review due to thin margin, with the operating loss recorded approximately HK$325,000.
Outlook
The Group has been enhancing different business segments to diversify business development. Property investment segment and environmental protection segment will become the main growing points for the Group.
In 2017, the Group’s property portfolio included six residential apartments and two car park spaces in Hong Kong, and one commercial building and two industrial properties in Shenzhen, with a total value of approximately HK$1.3 billion. In January 2018, the Group entered into an acquisition agreement to acquire Realord Ventures Limited and Manureen Ventures Limited, planning to acquire Guanlan, Guangming New District and Futian Duty Free Zone Properties for the consideration of RMB 6.2 billion in order to enhance the Group’s portfolio of rental properties to increase rental income and expand rental business.
In adherence to the government’s City Renewal Policies, the Group submitted applications to Shenzhen Longhua District Housing and Construction Bureau in February and May respectively last year to change the land use of the Zhangkengjing industrial property in Guanlan, Longhua District, Shenzhen, the Qiankeng industrial property and the industrial land in Zhangkengjing, of which the development right was granted by Shenzhen Zhangkengjing Joint Stock Company under the memorandum of understanding. According to the applications, the Group will plan to change the use of the Zhangkengjing industrial property and the industrial land in Zhangkengjing into residential and office use, and to change the use of the Qiankeng industrial property into public housing and residential use. It is expected that permission will be granted in 2018, subject to government schedules. If granted with permission, the Group will start the redevelopment works of the relevant project.
Environment Protection business will become another important revenue source for the Group. The Group plans to develop a processing plant for recycling and production of copper and aluminum ingots (the “Processing Plant”) in Wuzhou Import Renewable Resources Processing Park located in Wuzhou, Guangxi Province, the PRC, with target annual production capacity of 100,000 tonnes. The Group is planning to acquire land for the construction of the Processing Plant. It is expected that the land acquisition will be completed in mid- 2018 and the construction will commence in the third quarter of 2018. The construction of the Processing Plant will become a driver for a long-term growth of the Group’s business, bringing more revenue for environmental protection business.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses “the Group is optimistic about the prospects of the property investment market and the acquisitions will significantly enhance the Group’s portfolio of investment properties and strengthen the property investment business. It also signifies a milestone of property investment business for the Group in China, aiming at the trend of property rental market which may enrich our group’s income sources. In addition, in view of the promotion of the recycling business development by the government, the Group upholds great expectation on the prospect of the industry of dismantling and trading of scrap materials. Developing environmental protection business will further diversify the Group’s business. The Group became a constituent stock of the Morgan Stanley Capital International (MSCI) China Small Cap Index during the Year, which reflects a high recognition of the Company’s good performance and industry position. The Group will be dedicated to maintaining stable development for different business segments and will strive for a better return to investors.
Realord Group's Annual & Spring Dinner 2018
Spring is the time of new beginnings. To thank all the staff for their industriousness and contribution to the Company, Realord Group Holding Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) hosted a dinner for them last night. Dr. Bryan Lin, Realord Group Chairman wishes all staff altogether work hard for happiness in a new year.
Gallery:
http://realord.com.hk/en/news_and_media/gallery/36/
Realord Chairman Dr. Bryan Lin wishes you a Happy Chinese New Year 2018
Dear Friends,
A year of the dog is coming with joyfulness. On behalf of Realord Group, I would like to express my sincere greetings and best wishes to all of our customers, shareholders, partners and friends who always concern us. Wish you good wealth, good health and always be the best in a Chinese new year 2018! Wish Realord Group flourishing and prosperous!
Last year was a harvest year for the Group. In March, Realord Group became the eligible securities of Shenzhen-Hong Kong Stock Connect. In June, with attention of Wuzhou Longxi Government, Realord Group signed an agreement with Wuzhou Imported Renewable Resource Processing Park Management Committee to spend 350 million yuan investing in the project of recycled aluminum ingots so as to upgrade and transform the Group’s environmental protection business. In September, the Group recorded HK$216 million revenue of interim results 2017. In December, the Group became one of the MSCI China Small Cap Index Constituent Stocks.
“A new era and a new journey.” As the beginning of 2018, Realord Group successfully announced its acquisition of properties including those commercial properties of Realord Villas located in Longhua District, Shenzhen, Realord Science Park and a piece of idle land nearby in Guangming New District, Shezhen that may enrich the Group’s property investment portfolio, meanwhile in responding the policy advocated by the Chinese government, help expand the rental business in housing market.
In the future, we will allocate more resources in property investment, environmental protection business, and commercial services. At the same time, we will continue to keep a multi-dimensional approach to run the business segment, actively grasp the chances brought by “Greater Bay Area Development“ and “Guangdong-Guangxi cooperation”, participating in the construction of a “livable and suitable environment“ so as to attract more talents in a greater bay area.
Realord Group will pragmatically work at its best, striking for the happiness, contributing to the society, working hard for greater welfares for our staff, creating more substantial returns and value. We should forge ahead, and won't forget our original intention and the mission. We will keep moving forward altogether so as to achieve our "Realord Dream".
Best Regards,
Bryan Lin
Chairman, Realord Group Holdings Limited
Realord'a Acqusition of Guanlan, Guangming New District and Futian Duty Free Zone Properties for the Consideration of RMB 6.2 Billion
(January 18, 2018 – 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 planning to acquire all equity and assets of Realord Venture and Manureen Ventures, including the Guanlan Property, the Guangming Property, the Guangming Land and the Staff Housings, for the Share Consideration of RMB 6,219,575,234, payable by way of cash, allocation and issuance of new shares and Tranche Promissory Note respectively. The acquisition will enhance the group properties investment combination and land resources, further consolidating the advantage in property business.
The Guanlan Property is a mixed residential and commercial development situated within the Realord Villas in the Guanlan High-Tech Industrial Park of Guanlan, comprising a commercial/apartment building, retail shops and all car parking spaces with a total gross floor area of approximately 51,039 square metre (sqm). The Guangming Property, located in Realord Science Park in Guangming New District, consists of two blocks of office building with 26 storeys and 4 storeys over a basement car park respectively, with a total gross floor area of approximately 53,973 sqm. The Guangming Land is a bare land for industrial use with a site area of approximately 12,599 sqm located in Guangming High-Tech Industrial Park of Guangming New District. The Staff Housings comprise four social housing units of Fu Bao Gui Hua Yuan. The Guanlan Property and the Guangming Property will be used for rental purpose. The Guangming Land will be held as investment assets of the Group as present. The Staff Housings will be maintained the existing use of the Staff Housings
With the Total Consideration of RMB6,219,575,234 (equivalent to approximately HK$7,291,892,000), an amount between RMB3,000,000,000 (equivalent to approximately HK$3,517,230,000) and RMB3,600,000,000 (equivalent to approximately HK$4,220,676,000) will be payable by way of cash, the Cash Consideration will be payable first in the form of the Shareholder’s Loan to be provided by the Company to the Target Group for the full settlement of the Target’s Outstanding Debts as at the date of Completion shall there be surplus of the Cash Consideration after full settlement of the Target’s Outstanding Debts, the balance of the Cash Consideration will be payable to the Vendors directly as part payment of the Share Consideration. In addition, RMB1,135,584,657 (equivalent to approximately HK$1,331,371,000) by way of allotment and issuance of 280,998,482 Consideration Shares at the issue price of HK$4.738 per Consideration Share. Besides, an amount between RMB1,383,990,577 (equivalent to approximately HK$1,622,604,000) and RMB1,983,990,577 (equivalent to approximately HK$2,326,050,000) by way of the issue of the First Tranche Promissory Note at Completion and RMB100,000,000 (equivalent to approximately HK$117,241,000) (subject to adjustment) by way of the issue of the Second Tranche Promissory Note within 5 Business Days following the issue of the Completion Accounts.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses “the acquisition consolidates the Group’s assets signifying a milestone of property investment business for the Group in China, aiming at the cutrend of property rental market which may enrich our group’s income sources. We will keep up the great work and strike for the best for our investors and shareholders.”
Realord Group Chairman Dr. Bryan Lin In Shenzhen CPPCC Symposium Proposes to Optimize the control points to facilitate Hong Kong-Shenzhen economic development
The four-day Shenzhen Lianghui ("Two Annual Sessions"), including The Fourth Session of the Sixth Guangdong Shenzhen Municipal Committee of the Chinese People 's Political Consultative Conference (also known as "Shenzhen CCPPC") and The Fourth Session of the Sixth Committee of Shenzhen Municipal People's Congress, was started from 15th January 2018. A symposium for the Shenzhen CCPPC members of Hong Kong and Macau affairs was held in the afternoon. 51 Shenzhen CPPCC members representing from Hong Kong & Macau participated in the symposium and made advises focused on the topics such as "Greater Bay Area (Guangdong, Hong Kong & Macau)" development, Shenzhen-Hong Kong transportation, Hong Kong-Zhuhai-Macao Bridge, and Shenzhen-Hong Kong medical cooperation, to the Shenzhen Government.
Shenzhen Municipal Party Committee Secretary Wang Weizhong, Mayor Chen Rugui, CPPCC Chairman Dai Beifang attended and listened to the suggestions presented by the Hong Kong & Macau members.
At the symposium, Dr. Bryan Lin, Member of Shenzhen CPPCC, and also Chairman of Realord Group Holding Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) advised to “optimize the land boundary control points to facilitate the Shenzhen-Hong Kong economic development and to help construct the Greater Bay Area”.
A screenshot captured from SZTV News on the Shenzhen TV's channel -
Dr. Bryan Lin Xiaohui, Shenzhen CPPCC Member & Realord Group Holding Limited Chairman (Right)
With the further enhancement of Shenzhen-Hong Kong's economic and trade development, the mutually beneficial economic and trade integration between two places have been forming. Also, because of urbanization, the environment of Shenzhen-Hong Kong boundary crossings should be smoother and more convenient.
Statistics given by the Shenzhen Government that the total passenger thoughput was 241 million people in 2017. with an increase of 0.81% over last year. However, there is still an improvement for the existing control points. Huanggang port, the only one 24-hour Shenzhen-Hong Kong land boundary control point, nowadays has reached about 80,000 daily passenger thoughput which exceeds the original design of the port with just daily load of 50,000 passengers. In addition, the traffic conditions at the Shenzhen Bay Port were yet improved and passengers still found inconvenient to access the port. Various goverment departments in Shenzhen have tried to make improvement, but only with the limited success.
Dr. Lin suggested that Shenzhen should optimize the facilities, Internal and external traffic of the control ports. It is proposed to stop the clearance policy for the vehicle passengers who take small vehicles with both Shenzhen and Hong Kong licenses carrying their baggages from cars to the ground for clearance checking. Moveover, constructing multi-storey parking lots or underground parking lots to ease traffic congestion, and expanding the restricted areas for parking and driving on the roads will improve the micro-circulation within the ports.
On December 12, 2017, Guangdong Province Public Security Department launched 18 measures including the implementation of the transit visa-free policy for foreigners in 53 countries, and the extension of length of stay from currently 72 hours to 144 hours. The second measure is to further expand the scope of visa-free. The port of entry will be expanded from the Guangzhou Baiyun Airport to the airport port of Shenzhen Baoan Airport. The new policy will be implemented in the first quarter of this year. Lin suggested Shenzhen should pay more attention to the implementation of this policy. "If implemented, it will certainly and greatly facilitate the efficiency of overseas personnel entering to the mainland China from Hong Kong. It will also help to attract more people, logistics, capital into Greater Bay Area seeking opportunities for development that will bring a new round of an investment boom," Dr Lin said .
Shenzhen Futian District General Chamber of Commerce Secretary of Party Committee Shi Youjun Visits Realord Group
On the 2nd January, Shi Youjun, Deputy Minister of Shenzhen Futian District United Front Work Department and Secretary of Party Committee of Shenzhen Futian District of Federation of Industry & Commerce and General Chamber of Commerce (Futian SZGCC), Vice Chairman of Shenzhen Futian District of Federation of Industry & Commerce and General Chamber of Commerce Wang Zhenyuan and Ye Zhen, Minister of Members Working Department visited Realord Group.
During the meeting, Dr. Bryan Lin Xiaohui, Chairman of Realord Group Holdings Limited briefly gave those visitors an idea of the Group's development and the latest information about "Realord Villas”, an indemnificatory housing project for corporate talents located in Longhua District, Shenzhen.
Shi Youjun showed her full affirmation to the Group's contribution in providing a land resource to construct housing units for the Futian District Government. Meanwhile, she introduced the current development of SZGCC, particularly its database covering economic statistics, government policies, academic research and talents information available for corporate members to use.
Dr. Lin, also known as one of the Vice-presidents of Shenzhen Futian District General Chamber of Commerce, expressed his sincere thanks to Futian SZGCC leaders' visit. The Group has always been keeping a close communication with SZGCC. Thanks to the resources provided by SZGCC, the Group's business network and environment have been broadened and improved. Dr. Lin looked forward SFGCC leaders' next visit to the Hong Kong headquarter.
About Shenzhen General Chamber of Commerce
The Shenzhen General Chamber of Commerce of Commerce is a mass organization of people's organizations and chamber of commerce organized by the Shenzhen business community led by the PRC government. It is a bridge between the party and the government in connection with the non-public sector of the economy and an aide in the government's management of the non-public sector of the economy. Shenzhen General Chamber of Commerce members include organization members, corporate members and individual members. Among them, the organization members include private enterprise associations and more than thirty industry associations. Grass-roots organizations include districts, sub-district district chambers of commerce and trade associations. The Shenzhen General Chamber of Commerce Members are characterized as flourishing talent lineup, powerful, full of vitality and fast development. As of September 2015, more than 20,000 SGCCC members have been registered.
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.
