(November 13, 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 on November 10, 2017, Realord has entered into a transaction agreement with Brilliant Gold Financial Limited (“Brilliant Gold” or “Purchaser”) in which Capital Financial Press Limited (“Target”), a wholly-owned subsidiary of the Group, including its all Sale Shares with approximately $5.34 million HKD and an amount of approximately $1.5 million HKD Sale Loan owing to the Group, will be sold to Purchaser for the consideration of approximately $6.84 million HKD totally. The consideration is to be satisfied in full in cash at completion.
Target is a wholly-owned subsidiary of the Group, principally engaged in commercial printing business including graphic design, providing translation and press conference service. The consolidated net assets value of the Target as at September 30, 2017 was approximately $6.27 million HKD. The commercial printing business is the second largest business segment of the Group in 1H2017, contributing approximately 18% of the total revenue of the Group. However, due to the inflating operating costs and the intense competition, the segment profit of the commercial printing business was diminishing. Regarding the limited business prospect, the Board has decided to dispose of the commercial printing business in order to concentrate resources on other more prospective businesses. The net proceeds from the disposal will be used as general working capital and will be funding future business development opportunities of the Group.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses "Disposing the commercial printing business helps the Group concentrate resources on environmental protection development and other businesses, the Group will continue in diversifying business development and seize any opportunities in promoting the Group to grow steadily and giving returns to the shareholders and investors.”