Press Release
Realord Group Announces 2023 Interim Results: Recorded Revenue HK$392 million
(28 August, 2023 – Hong Kong)
Highlights:
Revenue was approximately HK$392.5 million, down 32.7% year-one-year
Gross profit was approximately HK$155.1 million, a year-on-year increase of 12.6%
Profit attributable to owners of the group reached approximately HK$48.6 million
Profit from the financial services segment increased by 1.66 times to HK$45 million
Earnings per share 3.37 Hong Kong cents
Financial Highlights:
For the 6 months ended 30 June
HK$’000
1H2023
1H2022
Change
Revenue
392,469
583,297
-32.7%
Gross profit
155,081
137,783
+12.6%
Profit attributable to owners
48,561
51,275
-5.3%
Basic earnings per share (HK cents)
3.37
3.56
-5.3%
(August 28, 2023 - Hong Kong) Realord Group Holdings Limited (the "Company", together with its subsidiaries collectively referred to as the "Group", Hong Kong stock code: 1196) announces the unaudited condensed consolidated results of the company and its subsidiaries for the six months ended 30 June 2023. During the period under review, the Group’s revenue was HK$392.46 million, down 32.7% from the same period last year; gross profit was HK$155.1 million, up 12.6% from the same period last year; profit attributable to shareholders in the first half of the year was HK$48.6 million, down year-on-year 5.3%. During the period under review, the basic earnings per share was HK3.37 cents.
Business review and outlook and corporate strategy
The Group's main businesses include property management, financial services, environmental protection, vehicle parts, department stores, and Latin America and the Caribbean.
Property Segment
The revenue from property classification mainly comes from rental income of investment properties. In the first half of 2023, the Group obtained rental income of 8.9 million Hong Kong dollars. The increase in rental income is primarily due to an increase in the number of tenants at Sincere Mall.
In the first half of 2023, the development progress of the five Shenzhen Property projects are varied. The number of tenants of Sincere Mall in Realord Villas in Longhua District has increased to 49, which include children's amusement center, education center, restaurants, fitness studios and billiard shop. Realord Science and Technology Park, located in Guangming District and with a gross floor area (GFA) of about 81,000 square meters, will start its second phase development plan immediately after obtaining government approval. The urban renewal project of the Qiankeng Property (also known as the “Guanzhang Electric Factory Urban Renewal Unit”) with GFA of approximately 112,000 square meters will commence after obtaining permits from the relevant government authorities. The Zhangkengjing Industrial Park Property (also known as the Urban Renewal Project of Qianhai Realord Cross-border Logistics Park), located in Longhua District, and its application for changing the land use from industrial use to residential apartment and commercial use is still under review. As for the Laiying Garden project in Nanshan District, the Group was granted a construction land planning permit by the relevant government authority, and its reconstruction works are expected to commence after obtaining the permit from the relevant government authority.
Latin American and Caribbean Segment
Grenada development project in (located in the Hartman Hill area of St. George's Parish and divided into three lots with an area of 450 acres) (the "Grenada Project") involves the development of a mixed property project, including educational facilities, student apartments residential properties, hotels and resort facilities, commercial developments and shopping facilities, and the longer planned establishment of university institutions and related amenities.
Through the Grenada Project's Citizenship by Investment Program (“CBI Program”), the Group is allowed to raise funds from investors of the project to finance the construction and development of the project. Qualified investors who invest real estate on the project will be granted a permanent citizenship and passport to Grenada. In the first half of 2023, the Group's revenue from CBI program consulting services was HK$68,000.
Leveraging on its experience in the Grenada project, the Group has further targeted investment in four other Caribbean countries, namely Antigua and Barbuda, St. Lucia, St. Kitts and Nevis, and Dominica, and has identified clean energy, education, Investment proposals in the four fields of tourism and retail, hoping to cooperate with relevant local governments.
The group is currently looking for business partners with strong strength and excellent track record to participate in projects in designated Caribbean countries and the Republic of Panama. According to the planning and feasibility studies of the projects, as well as the necessary approvals from various local governments, it is expected that the Group will start these projects in the relevant areas in the near future. To this end, the group has established a management and marketing team, and has offices in Beijing, Shanghai, Shenzhen and Hong Kong, and has established sales networks in Vietnam and the United States to implement the CBI plans and investment opportunities formulated for the promotion of the above countries marketing strategy.
Financial Services Segment
In terms of financial services, during the period under review, the revenue generated was approximately HK$88.2 million, a year-on-year increase of 5.0%, and the profit was approximately HK$45 million, a year-on-year increase of 1.66 times. The increase in profit was mainly attributable to the increase in interest income from credit-impaired loans receivables and the decrease in staff costs. In the first half of 2023, under the shadow of high inflation and sharply rising interest rates, the overall global market conditions were down. However, as the epidemic recedes and society returns to normal, the financial services category is committed to providing customers with diversified and high-quality services in the primary and secondary markets. Revenues from margin financing and IPO placements continued to rise, driving the financial services segment to grow steadily amid the downturn.
Department Store Segment
For the department store segment, revenue generated during the period under review was approximately HK$74.3 million, representing an increase of 7.6% compared to the same period last year, mainly due to the gradual recovery of economic activities in Hong Kong and the resumption of customs clearance with Mainland China in the first half of 2023. At the same time, the Group continued to take proactive measures to reduce operating expenses and obtain rental concessions, resulting in a 77.9% reduction in losses compared to the first half of 2022.
Mr. Bryan Lin, chairman of Realord Group said: "Realord Group has confidence in the investment prospects in Latin America and the Caribbean, and will enhance its leadership in the Latin American market and increase Market share. The group will put the interests of shareholders and investors first, and strive to bring the best returns.”
Former chairman of the Shantou CPPCC & chairman of the International Teochew Federation Chairman Xie Zesheng visited Realord Group & Sincere
On August 9, Xie Zesheng, former chairman of the Shantou CPPCC and Chairman of the Teochew International Federation and Hong Yuehao, deputy director of the United Front Work Department of Shantou Municipal Party Committee, Chairman of the Overseas Chinese Federation, and Director of the Overseas Chinese Affairs Bureau, visited Realord Group and The Sincere Company. Dr. Bryan Lin, member of the National Committee of the Chinese People’s Political Consultative Conference, Chairman of Futian District Federation of Industry and Commerce, Chairman of Realord Group and Sincere Company arranged a meeting with them.
Xie said that he felt awesome for this visit. There are many Teochew elites over the world nowadays. He believed that Dr. Bryan Lin, who is young and promising, is a distinguished representative of the new generation of Teochew elites. In addition, Xie also introduced the background of the Teochew International Federation, the current development overview, investment opportunities as well as the advantages of Shantou. He also welcomes Chaozhou Enterprises or non-Chaozhou Enterprises to come there invest.
Bryan Lin thanked Xie taking time out of his busy schedule to visit Realord Group. Having Xie’s introduction to the future planning and development of Shantou, he felt benefited a lot, especially feeling honored that Xie invited Realord Group to invest there.
Lin said that regarding Shantou’s investment opportunities in offshore power generation, energy storage and environmental protection, he will organized a visit to there in the future. He also wished the next year’s annual dinner of the International Teochew Federation will be completed successfully.
Bryan Lin and Linus Lin were invited to participate in the release of the "All-round Living Guide for Hong Kong & Macao Residents in Futian"
On July 28, "All-round Living Guide for Hong Kong & Macao Residents in Futian" ("Guide") was officially released in Hong Kong. The release of the Guide will further promote the integrated development of Shenzhen, Hong Kong and Macao, and facilitate Hong Kong and Macao residents to study, work, live, and start a business. Zhong Jichang, Director of the Liaison Department of the Liaison Office of the Central Committee of the Communist Party of China, Patrick Lau, Vice President of the Hong Kong Trade Development Council, Wu Huan, Member of the Standing Committee of the Futian District Committee & Director of the United Front Work Department, and Executive Chairman of the Futian District Overseas Friendship Association, Member of the National Committee of the Chinese People's Political Consultative Conference, Chairman of the Futian District Federation of Industry and Commerce, Chairman of Realord Group and the Sincere Company Dr. Bryan Lin, Member of the Standing Committee of the Futian District CPPCC & Vice chairman of Realord Asia Pacific Securities Linus Lin, representatives of the Chinese General Chamber of Commerce, the Chinese Manufacturers' Association of Hong Kong, the Federation of Hong Kong Industries, the Federation of Industry and Commerce of all districts in Hong Kong, and representatives of Hong Kong friendly societies attended the meeting Activity. At the end of the release event, the third council meeting of the sixth session of the Futian District Overseas Friendship Association was held on the spot, and Dr. Bryan Lin was adjusted as the Honorary Chairman of the Futian District Overseas Friendship Association.
Member of the Standing Committee of the Futian District Committee and Minister from the United Front Work Department Wu Huan visits Realord & Sincere
On the afternoon of July 27, Wu Huan, member of the Standing Committee of the Futian District Committee and head of the United Front Work Department, led a team to visit Realord Group and Sincere Group and had a discussion with Dr. Bryan Lin, member of the National Committee of the Chinese People's Political Consultative Conference, Chairman of Realord Group & The Sincere Company. The team visited the group headquarters and Sincere’s Central store on the spot, and listened to the Group's development and planning. Bryan Lin said that Realord Group was developed from Futian, and the company's development also adheres to the needs of the country and closely follows the national strategies. It has always had a “Chinese heart” and a “Futian heart”. Wu Huan said that Lin led the Taxi Association in a special period to gather the patriotic forces of Hong Kong, support "patriots governing Hong Kong", and make important contributions to the central government's improvement of the electoral system of the Hong Kong Special Administrative Region and the maintenance of the basic national policy of "one country, two systems". It is hoped that enterprises will continue to create platforms and opportunities for Shenzhen and Hong Kong youth entrepreneurship exchanges while developing and growing, and promote the integrated development of Shenzhen and Hong Kong.
Ambassador-Designate Embassy of Grenada to China Ian Marshall Visits Realord Group
On July 13, Mr. Ian Marshall, Ambassador-Designate, Embassy of Grenada to the People’s Republic of China visited Realord Group’s Hong Kong headquarter. Members of the National Committee of the Chinese People's Political Consultative Conference, Realord Group (1196.HK), and The Sincere Company (0244.HK) Chairman Lin Xiaohui warmly welcomed him.
This was Ambassador Marshall's first visit to Hong Kong after becoming Grenada's ambassador to China. In March 2023, after the election of the new Grenada government, Prime Minister Deacon Mitchell appointed a group of new diplomats, among whom Mr. Marshall was appointed as Grenada's new ambassador to China. On July 5, Mr. Marshall formally submitted a copy of his credentials to China and took office.
Lin welcomed him for taking time out of his busy daily diplomatic works to visit Realord Group. He said that Grenada and Latin America are the top priorities of Realord Group's future development. Realord Group attaches great importance to local investment and development opportunities, and is very grateful to the Grenada government for its policy support.
Ambassador Marshall said that he had worked in Realord Hartman Group and had deep feelings for the Group’s development and achievements. He highly recognized Realord Group’s investment in Grenada and the Latin America, and said that the Grenada Government with fully support Realord Group’s local investment and development, to make greater contributions to the development of Sino-Grenada’s friendship and the prosperity of the economic and trade exchanges between the two countries.
Bryan Lin attends the flag-raising ceremony and reception to the Celebration of 25th Anniversary of Hong Kong's Return to the Motherland
July 1 is the 26th anniversary of Hong Kong's return to the motherland. The Hong Kong Special Administration Region government held a flag-raising ceremony at the Golden Bauhinia Square in Wanchai at 8:00 a.m., followed by a reception at the Convention and Exhibition to celebrate the 26th anniversary of the establishment of the Hong Kong Special Administrative Region. Chief Executive Li John Lee Ka-chao officiated and delivered a speech at the reception. Leung Chun-ying, vice chairman of the National Committee of the Chinese People's Political Consultative Conference, and Zheng Yanxiong, director of the Liaison Office of the Central People's Government in Hong Kong, were present. Dr. Bryan Lin Xiaohui, member of the National Committee of the Chinese People's Political Consultative Conference and Chairman of Realord Group (1196.HK) and Sincere (0244.HK), was invited to attend this event.
John Lee said that it is with great excitement that we celebrated the 26th anniversary of the establishment of the Hong Kong Special Administrative Region and the first anniversary of the current government. He quoted the "four musts" and "four hopes" put forward by President Xi Jinping when he had visited Hong Kong last year and delivered an important speech, saying that it has become the goal of his administration to form a practical team to build Hong Kong. Hong Kong is already on the fast track to return to normal. The various plans are overfulfilled. In addition, with the assistance of policies such as simple public housing, the waiting time for public housing is gradually decreasing. He emphasized that he has full confidence in Hong Kong, but in order to be prepared for danger in times of peace, he must be vigilant, maintain national security, and fully and accurately implement the "one country, two systems" policy.
Bryan Lin, member of the National Committee of the Chinese People's Political Consultative Conference, Realord Group and Sincere chairman, said that on this special day today, he was honored to participate in the celebration of the 26th anniversary of Hong Kong's return to the motherland. Standing at this historical juncture, he has full confidence in Hong Kong's future. In the great practice of "one country, two systems", Hong Kong will continue to maintain its unique position and work hard together with the mainland to realize the Chinese dream. I firmly believe that under the leadership of the country, Hong Kong will write a more brilliant chapter and demonstrate its unique charm and value.
NCCPPCC Member, Chairman of Realord Group & Sincere Bryan Lin attends the launching ceremony of the "Celebration of the 26th Anniversary of Hong Kong's Return to the Motherland" in Victoria Park
On June 30, the launching ceremony of the "Celebration of the 26th Anniversary of Hong Kong's Return to the Motherland" was held in Victoria Park. Hong Kong Special Administrative Region Chief Executive John Lee Ka-chiu, director of the Hong Kong Liaison Office and secretary of the Hong Kong Work Committee of the Chinese Communist Party Zheng Yanxiong attended the launching ceremony. Lin Xiaohui, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Realord Group (1196.HK) and Sincere (0244.HK), was invited to attend this event.
John Lee said that Hong Kong is now in a critical period of governance and prosperity. Under the dual protection of the "The National Security Law" and the principle of "patriots administering Hong Kong", the society is stable whereas the economy is developing well, and the business environment is becoming more free and convenient. With the full support of the PRC Government and the help of the citizens, Hong Kong has finally emerged from the haze of the epidemic, the society has fully returned to normal and has fully cleared customs with the mainland, and even reconnected with the world. I and my team have launched a number of policies and measures to seek happiness for the citizens and strive for Hong Kong’s economy, development and competitiveness.
Zheng Yanxiong said that at this time last year, President Xi Jinping visited Hong Kong in person and delivered an important speech, making a major declaration that "one country, two systems" must be adhered to for a long time, marking the historical direction of Hong Kong's transition from chaos to governance and prosperity, and drawing a blueprint for Hong Kong's future development. Over the past year, with the strong support of the central government, John and the HKSAR government have fulfilled their responsibilities, united and led all sectors of society to work together to open a new chapter and write a new chapter, and achieved many practical things. Happiness continues to rise. The administrative leadership of the HKSAR is orderly and promising, the legislature and judiciary perform their duties in accordance with the law, the governance team is diligent and pragmatic, and the new style of governance is obvious to all. National sovereignty, security, and development interests have been effectively safeguarded, Hong Kong has gradually emerged from the political whirlpool, and the familiar and lovely Hong Kong in the past has returned. Only when "one country" is stronger can "two systems" be more exciting.
Bryan Lin expressed that it is a great honor to participate in the celebration of the 26th anniversary of Hong Kong's return to the motherland. Standing in this Victoria Park full of festive atmosphere, he was so excited. Although Hong Kong has experienced various challenges and difficulties, we have ushered in a new era of governance and prosperity, with the strong support of the Central Government. At this moment, we deeply feel that the future of Hong Kong is full of hope and vision.
Dr Bryan Lin Participates the "Proposal for Improving Regional Governance" street counter activity
Friends of Hong Kong Association Limited held a street stand activity in Wan hai to explain the improvement of regional governance and the district council reform plan to the public. Those who attended the street stand activity included Tang Yingnian, member of the Standing Committee of the Chinese People's Political Consultative Conference, Lin Jianyue, He Chaoqiong and others. Realord Group & Sincere Chairman Dr. Bryan Lin, member of the National Committee of the Chinese People's Political Consultative Conference Dr Bryan Lin, also attended the event.
Lin Xiaohui said: having communication with the public, we found that the most direct hope of many citizens is that the District Councils can bring order out of the chaos and help people's livelihood matters. When I was explaining to them, I pointed out that after the remodeling of the district councils, there will be more community service points, and more district councilors with different backgrounds will serve them. In addition, the reform plan will introduce a performance monitoring system, which will investigate and deal with district councilors whose behavior does not meet public expectations, so as to ensure that district councilors perform their due duties.
