(May 31, 2018 - 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 the Company’s environmental protection business acquired in 2017 had remarkable performance, recording qualified profit of approximately HK$46,179,000, which has achieved and over the Target Profit of HK$35 million stated in the acquisition agreement, with 30% or approximately HK$11 million exceedance. The Company will allot and issue 1.75 million consideration shares to Fortune Victory Asia Corporation (“Vendor”) according to the acquisition agreement.

In accordance with the terms of the acquisition agreement, the purchaser and the Vendor agreed that the Company shall as part of the consideration allot and issue 1,750,000 consideration shares to the Vendor or its nominee(s) within 10 business days that the qualified profit of the target group, being the consolidated net profit after tax of the target group after excluding any (i) gain on bargain purchase; and (ii) revaluation gains or losses of properties and the associated deferred tax charged to the statement of profit or loss, for the financial year ended 31 December 2017 was not less than HK$35,000,000. As the qualified profit of environmental protection business recorded HK$46,179,000, fulfilling the qualified profit target, the Company will allot and issue 1,750,000 Consideration Shares to the Vendor on or about 8 June 2018.

Environmental protection segment contributed most of the revenue of the Group in 2017, with revenue recorded approximately HK$572 million, accounting for 75% of the total revenue and operation profit approximately HK$52.3 million. In addition, the Group plans to develop a processing plant for recycling and production of copper and aluminum ingots (the “Processing Plant”) in Wuzhou Import Renewable Resources Processing Park located in Wuzhou, Guangxi Province, the PRC, with target annual production capacity of 100,000 tonnes. The Group is planning to acquire land for the construction of the Processing Plant. It is expected that the land acquisition will be completed in mid- 2018 and the construction will commence in the third quarter of 2018. The construction of the Processing Plant will become a driver for a long-term growth of the Group’s business, bringing more revenue for environmental protection business.

The Company, as purchaser, acquired 60% of the issued share capital of Realord Environment Protection (previously known as Top Eagle International Trading Limited) in consideration of HK$25 million in cash and 5 million consideration shares (each consideration share equal to HK$7, with total value of HK$35 million), equivalent to a total consideration of HK$60 million. In accordance to the transaction agreement, if Realord Environment Protection fulfills the target profit of HK$15 million by 2017, Vendor will be allotted and issued 750,000 consideration shares; If fulfilling the target profit of HK$35 million by 2018, Vendor will be allotted and issued 1.75 million consideration shares; If fulfilling the target profit of HK$50 million by 2019, Vendor will be allotted and issued 2.5 million consideration shares; If Realord Environment Protection cannot achieve the target profit in the financial year above, Realord will not need to allot and issue relevant consideration shares.

Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses “The Guangxi Environmetal Protection Business was acquired less than two years that the first and the second expected profit targets have been fulfilled with exeedcance which flourishes the revenue and cash flow of the Group, thus the Board has great confidence on the environmental protection investment prospect and will continue to seek for different investment opportunity to strike for better return for our shareholders.”

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