(August 31, 2017 – 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 as of 31 December 2017, Realord Environmental Protection Industrial Company Limited (formerly known as Top Eagle International Trading Limited), an indirect 60%-owned subsidiary of the Company, recorded Qualified Profit of amounted to approximately HK$29,257,000, increased by 95% of the expected profit HK$15,000,000. In accordance with the terms of the Acquisition Agreement, the Company shall as part of the Consideration allot and issue 750,000 Consideration Shares to Fortune Victory Asia Corporation (“Vendor”) or its nominee(s) within 10 Business Days.

Realord Environmental Protection Industrial Company (Realord Environmental Protection) and its subsidiary Tong Bao Renewable Materials Limited are mainly engaged in recycling, dismantling and sales of scrap materials, such as copper, aluminum, iron and plastic. Their operation base is  located in Wuzhou Import Renewable Resources Processing Park of Guangxi Wuzhou City where has been approved as the "urban mining" demonstration base.

According to the 2017 interim report of the Company, revenue in environmental protection business recorded HKD 141.9 million with net profit of HKD 8 million. Moreover, Realord Environmental Protection has entered in an investment agreement with Wuzhou Import Renewable Resources Processing Park Management Committee on 8 June 2017. The investment, amounted to approximately RMB 350 million, includes setting up a new processing plant for recycling and production of aluminum ingots project with a target annual production capacity of 100,000 tonnes which means the current scrap material recycling business will be with a more value-added model and higher profit margin, and it also provides a favourable environment for the Group to further develop its business.

According to the agreement, the Company has completed the acquisition of Realord Environmental Protection with the Sale Shares at a maximum consideration of Sale Shares of HK$60,000,000, included HK$25,000,000 in cash and as to a maximum of HK$35,000,000 by way of allotment and issuance of up to 5,000,000 Consideration Shares by the Company at the issue price of HK$7.00 per Consideration Share. In accordance with the terms of the Acquisition Agreement, the Company shall allot and issue 750,000 Consideration Shares as part of the Consideration to the Vendor with Qualified Profit of Realord Environmental Protection is equal to or more than HK$15,000,000 for the financial year ended 31 December 2016; 1,500,000 Consideration Shares Qualified Profit of Realord Environmental Protection is equal to or more than HK$35,000,000 for the financial year ending 31 December 2017 and 2,500,000 Consideration Shares Qualified Profit of Realord Environmental Protection is equal to or more than HK$50,000,000 for the financial year ending 31 December 2018. The Company is not required to allot and issue any of the corresponding amount of the Consideration Shares under the respective tranches to the Vendor with Qualified Profit of less than the Target Profit for the Relevant Financial Year.

Domestic demand for metals increased significantly with the raising price, especially in copper and aluminum. The price of Copper futures has marked a new high in past two years. It is worth noting that the State Council has issued the "13th Five-Year Plan for Eco-Environmental Protection" to encourage the development of recycling industry in December 2016, so as to cultivate recycling and comprehensive utilization enterprises through the national "urban mining" demonstration base. On 27 July 2017, the State Council promulgated the "Implementation Plan to Enhance Solid Waste Import Management System by Prohibiting the Entry of Foreign Waste", which has strengthened supervision and management of solid waste importation, curbed smuggling and illegal importation of foreign waste, and abolished the importation qualification of some enterprises who do not have capability to utilize and process the wastes by themselves. The policies would promote industrial reformation and transformation, optimize the industrial structure, and improve the excess capability of the industry.

According to "China Renewable Resources Recycling Industry Development Report 2017" released by the Ministry of Commerce, as of the end of 2016, the total quantity of recycled scrap iron, steel, non-ferrous metals and other top ten renewable resources were increased by 3.7% to 256 million tonnes. The total quantity is expected to remain increase in 2017, and the price of renewable resources will be increased.

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