Realord Group Announces FY2022 Interim Results; Recorded Revenue increased by 31.0% YoY to HK$580 million
Highlights:
Financial Highlights:
HONG KONG SAR - Media OutReach - 26 August 2022 - Realord Group Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, stock code: 1196) is pleased to present the consolidated results of the Group for the six months ended 30 June 2022 (“Period” or “1H2022”). During the Period, the Group recorded a total revenue of approximately HK$583.3 million, representing a year-on-year growth of 31.0%; Gross profit was HK$137.8 million, representing a year-on-year increase of 4.0%; Profit and Profit attributable to owners for the Period was HK$204.08 million and HK$51.27 million respectively, representing year-on-year increases of 284.2% and 8.1% respectively; Basic earnings per share for the Year was HK$3.56 cent.
Business Review, Outlook and Corporate Strategy
The principal activities of the Group during the Period included the Segments of Property, Financial Services, the Environmental Protection (“EP”), Motor Vehicle Parts (“MVP”), Commercial Printing, Hangtag, Department Store and the Latin America & Caribbean (“LAC”).
The LAC Segment
The Group owns a project (“Grenada Project”) comprising 3 lots of land with admeasurement 450 acres situated at the Mt. Hartman area in the parish of Saint George, Grenada. Grenada Project involves the development of a mixed property project consisting educational facilities, apartments for student, residential properties, hotel and resort facilities, commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities.
Through a Citizenship by Investment Programme of Grenada (“CBI Programme”), the Group is authorised by Grenada Government 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. The revenue generated from consultancy services under CBI programmer was HK$3.3 million in 1H2022 and the segment profit of LAC Segment was approximately HK$576.2 million, due to a fair value gain on the investment properties in Grenada.
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. The Group has identified four investment propositions to collaborate with the respective local governments to accelerate economic development of each country. These four areas include (i) the clean energy sector; (ii) the education sector; (iii) the tourism sector; and (iv) the retail sector
The Group is identifying capable and competent business partners with significant track record to participate in the projects. Subject to the planning and the feasibility studies of the projects as well as the requisite approval by the respective local government, it is expected that the Group would kick off the projects in the Designated Caribbean Countries and the Republic of Panama in the near future. To this end, the Group has established a management and marketing team with offices in Beijing, Shanghai, Shenzhen and Hong Kong and established a local sales network in Vietnam, and the U.S. to implement the marketing strategies formulated for promoting the citizenship investment programmes and investment opportunities of each of the aforesaid countries.
The Financial Services Segment
The Financial Services Segment generated a revenue of approximately HK$63.1 million in 1H2022, representing a slightly decrease of 5.0% from the previous year. The decrease in revenue of the Financial Services Segment was mainly resulted from the decrease in services provided to its customers, including placing services and underwriting services for certain initial public offering (“IPO”) projects. The aforesaid effect was partially offsetted by the margin interest income, margin financing services and interest from the money lending.
During the Period under Review, the segment recorded a segment profit of approximately HK$17.0 million. The segment profit was improved by decrease in commission expenses by approximately HK$2.3 million due to the decrease in placing services and decrease in provision for impairment losses on the loan receivables.
The Financial Services Segment will continuously develop various investment products to meet the market’s demand. At the same time, the Segment is also proactively preparing to launch dark pools and US stock trading systems; and expand the sales and business teams to support our business development. Therefore, the Segment is expected to achieve stable business growth in the second half of 2022.
The EP Segment
With the steady growth of copper price and continuing increased scale and established suppliers’ network of during 1H2022, the EP Segment generated revenue of approximately HK$356.1 million, representing an increase of approximately 38.7%. The segment profit for the EP Segment in 1H2022 was HK$12.0 million.
Looking forward, amidst the market uncertainties, the Group will continue to exercise extreme cautions in the operations of the EP Segment with a view to controlling operating costs, minimising the credit risk exposures, and expanding the customers base of the segments by strengthening their competitive edges among their competitors. The Group is looking into alternatives such as deploying additional operation points in Kyushu, Japan to meet the economy recovery after the COVID-19 pandemic for sustain growth of the EP business.
Mr. Bryan Lin Xiaohui, Chairman of Realord Group said, “Grenada project has now initially achieved results and the Group believes the promising prospects in Latin America and the Caribbean Region. Thus we will actively utilise the market synergy to fortify our leading position of the Group in the region, in order to maximise the return to our Shareholders and Investors.”
Hashtag: #RealordGroup
- Revenue increased by 31.0% to approximately HK$583.3 million.
- Profit Attribute to Owners of the Group increased by 8.3% to approximately HK$51.3 million
- The Latin America and Caribbean Segment recorded a segment result of approximately HK$576.2 million
- The Financial Services Segment recorded a segment result of approximately HK$17.0 million
- The Environmental Protection Segment recorded a segment result of approximately HK$12.0 million
- Basic earnings per share was 3.56 cents.
Financial Highlights:
| | For the 6 months ended 30 June | ||
| HK$’000 | 2022 | 2021 | Change |
| Revenue | 583,297 | 445,408 | +31.0% |
| Gross profit | 137,783 | 132,439 | +4.0% |
| Profit for the Period | 204,089 | 53,115 | +284.2% |
| Profit attributable to owners | 51,275 | 47,356 | +8.3% |
| Basic earnings per share (HK cents) | 3.56 | 3.29 | +8.1% |
HONG KONG SAR - Media OutReach - 26 August 2022 - Realord Group Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, stock code: 1196) is pleased to present the consolidated results of the Group for the six months ended 30 June 2022 (“Period” or “1H2022”). During the Period, the Group recorded a total revenue of approximately HK$583.3 million, representing a year-on-year growth of 31.0%; Gross profit was HK$137.8 million, representing a year-on-year increase of 4.0%; Profit and Profit attributable to owners for the Period was HK$204.08 million and HK$51.27 million respectively, representing year-on-year increases of 284.2% and 8.1% respectively; Basic earnings per share for the Year was HK$3.56 cent.
Business Review, Outlook and Corporate Strategy
The principal activities of the Group during the Period included the Segments of Property, Financial Services, the Environmental Protection (“EP”), Motor Vehicle Parts (“MVP”), Commercial Printing, Hangtag, Department Store and the Latin America & Caribbean (“LAC”).
The LAC Segment
The Group owns a project (“Grenada Project”) comprising 3 lots of land with admeasurement 450 acres situated at the Mt. Hartman area in the parish of Saint George, Grenada. Grenada Project involves the development of a mixed property project consisting educational facilities, apartments for student, residential properties, hotel and resort facilities, commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities.
Through a Citizenship by Investment Programme of Grenada (“CBI Programme”), the Group is authorised by Grenada Government 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. The revenue generated from consultancy services under CBI programmer was HK$3.3 million in 1H2022 and the segment profit of LAC Segment was approximately HK$576.2 million, due to a fair value gain on the investment properties in Grenada.
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. The Group has identified four investment propositions to collaborate with the respective local governments to accelerate economic development of each country. These four areas include (i) the clean energy sector; (ii) the education sector; (iii) the tourism sector; and (iv) the retail sector
The Group is identifying capable and competent business partners with significant track record to participate in the projects. Subject to the planning and the feasibility studies of the projects as well as the requisite approval by the respective local government, it is expected that the Group would kick off the projects in the Designated Caribbean Countries and the Republic of Panama in the near future. To this end, the Group has established a management and marketing team with offices in Beijing, Shanghai, Shenzhen and Hong Kong and established a local sales network in Vietnam, and the U.S. to implement the marketing strategies formulated for promoting the citizenship investment programmes and investment opportunities of each of the aforesaid countries.
The Financial Services Segment
The Financial Services Segment generated a revenue of approximately HK$63.1 million in 1H2022, representing a slightly decrease of 5.0% from the previous year. The decrease in revenue of the Financial Services Segment was mainly resulted from the decrease in services provided to its customers, including placing services and underwriting services for certain initial public offering (“IPO”) projects. The aforesaid effect was partially offsetted by the margin interest income, margin financing services and interest from the money lending.
During the Period under Review, the segment recorded a segment profit of approximately HK$17.0 million. The segment profit was improved by decrease in commission expenses by approximately HK$2.3 million due to the decrease in placing services and decrease in provision for impairment losses on the loan receivables.
The Financial Services Segment will continuously develop various investment products to meet the market’s demand. At the same time, the Segment is also proactively preparing to launch dark pools and US stock trading systems; and expand the sales and business teams to support our business development. Therefore, the Segment is expected to achieve stable business growth in the second half of 2022.
The EP Segment
With the steady growth of copper price and continuing increased scale and established suppliers’ network of during 1H2022, the EP Segment generated revenue of approximately HK$356.1 million, representing an increase of approximately 38.7%. The segment profit for the EP Segment in 1H2022 was HK$12.0 million.
Looking forward, amidst the market uncertainties, the Group will continue to exercise extreme cautions in the operations of the EP Segment with a view to controlling operating costs, minimising the credit risk exposures, and expanding the customers base of the segments by strengthening their competitive edges among their competitors. The Group is looking into alternatives such as deploying additional operation points in Kyushu, Japan to meet the economy recovery after the COVID-19 pandemic for sustain growth of the EP business.
Mr. Bryan Lin Xiaohui, Chairman of Realord Group said, “Grenada project has now initially achieved results and the Group believes the promising prospects in Latin America and the Caribbean Region. Thus we will actively utilise the market synergy to fortify our leading position of the Group in the region, in order to maximise the return to our Shareholders and Investors.”
Hashtag: #RealordGroup
The issuer is solely responsible for the content of this announcement.
About Reaload Group Holdings Limited
Realord Group Holdings Limited ("Realord Group) is principally engaged in various segments including Property Investment, Financial Services (including corporate finance advisory, asset management, securities brokerage services, margin financing and money lending), Environmental Protection (mainly dismantling and trading of scrap materials), Distribution and Sale of Motor Vehicle Parts, Department Store. In recent years, the Group has commenced the Latin American & Caribbean Segment, in which is carrying out a development project in Grenada. The Project involves the development of a mixed property project consisting educational facilities, apartments for student, residential properties, hotel and resort facilities, commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities. The Group plans to commence property development and investment business in the Republic of Panama.
