(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:

(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.”