FINANCIAL HIGHLIGHTS

For the six months ended 30 June 2021:

• total revenue recorded approximately HK$445.4 million, increased by approximately 45.5% year-on-year. 
• gross profit recorded approximately HK$132.4 million, increased by approximately 52.9% year-on-year.
• net profit recorded approximately HK$53.1 million, increased by approximately 10.7% year-on-year.
• profit attributable to owners of the Company recorded approximately HK$47.4 million.

(Hong Kong, 27 August 2021) – Realord Group Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, stock code: 1196) announced its unaudited interim results for the six months ended 30 June 2021 (the “1H2021”). In 1H2021, the Group recorded a total revenue of approximately HK$445.4 million, representing an increase of 45.5% as compared to approximately HK$306.1 million for the six months ended 30 June 2020 (the “1H2020”). Net profit achieved approximately HK$53.1 million, which represented an increase of approximately 10.7% as compared to approximately HK$48.0 million for 1H2020. Profit attributable to owners of the Company was approximately HK$47.4 million, and the basic earnings per share was HK3.29 cents.

The Group’s remarkable growth was mainly contributed by the Environment Protection Segment, the Motor Vehicle Parts Segment and the Financial Services Segment. During the period under review, the revenue of the Environment Protection Segment increased from HK$171.2 million for 1H2020 to HK$256.7 million. The revenue of the Motor Vehicle Parts Segment increased from HK$55.9 million for 1H2020 to HK$74.5 million. And the Financial Services Segment generated a revenue of approximately HK$66.4 million for 1H2021, which increased by 84.9% as compared to that of approximately HK$35.9 million in 1H2020.

The Value of Property Segment Continues to be Released As at 30 June 2021, the Group holds certain investment properties in Shenzhen, including but not limited to that properties located in Nanshan, Longhua and Guangming District. The investment properties are located in administrative districts which has been designated for speedy economic development by the local government. The revenue of the Property Segment was mainly derived from the rental income of the Group’s investment properties. In 1H2021, the Group generated aggregate rental income of approximately HK$5.2 million, and a segment profit of approximately HK$313.9 million, representing an increase of approximately HK$119.6 million or 61.6% as compared to that in 1H2020. The increase was mainly attributable to an increase in net gain on fair value changes of investment properties from approximately HK$445.5 million in 1H2020 to approximately HK$628.7 million in 1H2021. The increase in the value of investment properties was mainly attributable to the gentle growth in the Shenzhen property market of which the Group’s major investment properties are located.

The Financial Services Segment Achieved a Steady Growth The Group continuously provide more comprehensive financial services to its customers, such as placing agent and underwriting services as joint book runner of certain initial public offering projects as well as margin financing services. Meanwhile in the secondary market, the Group achieved a significant growth in securities transaction volume, which has led to an obviously year-on-year increase in brokerage fees. During the period under review, the Financial Services Segment has seen a steady growth, the segment recorded a segment profit of approximately HK$12.3 million as compared to approximately HK$3.8 million in 1H2020. The Group obtained a connection channel of trading and clearing for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, as well as a license for futures contract trading. Looking ahead into the second half of 2021, the Group will continue to expand its footprint in the Hong Kong primary and secondary markets, and to enhance the variety of investment products and geographical markets in achieving a more comprehensive portfolio in the year to come.

Dr. Bryan Lin, Xiaohui, Chairman of Realord Group stated, “As the implementation of COVID-19 vaccination programme continually expanded, the global economy and business performance is expected to be recovered in 2021 although there are still uncertainties to the business sentiments and financial markets worldwide under pandemic. The Group will continue to adopt a prudent approach in achieving steady business development while exploring suitable strategic investment opportunities with an aim to maximise the returns to its Shareholders.”