Press Release
Sincere（00244.HK）Announces 1H2021 Results Gross Profit rose 11.4% year-on-year
The Sincere Company Limited (0244.HK, "Sincere" or the "Company") is pleased to present the unaudited condensed consolidated results of the Company for the six months ending on August 31, 2021. Thanks to the effective and continuous measures implemented by the management to control operating costs and reduce capital expenditures, in order to improve the Company’s operating performance and alleviate its liquidity risk. In the 1H2021, Sincere recorded comprehensive income of approximately HK$80.2 million and gross profit of approximately HK$40.6 million with an increase of 11.4% year-on-year; the company’s unaudited loss attributable to equity holders was approximately HK$60.6 million, compared with last year during the same period, with a decreased of 15.8%, while the net asset increased to approximately HK$91.9 million with 223.6% year-on-year.
During the period under review, the Group’s performance became stable with the number of confirmed cases for the COVID-19 maintained at a relatively low level. The department store operations continued to record revenue of HK$79.6 million, represented a drop by only 2.1% against the same period of last year. Together with the Group’s pro-active measures to reduce operating expenses and the rental concession obtained from landlords, the overall segment loss has been reduced to HK$47.5 million, decreased by 2.8% as compared to same period of last year. To maintain a healthy inventory level, continuing the clearance of previous season inventory is our major goal in this period. The inventory level further reduced from HK$42.9 million as at 28 February 2021 to HK$36.7 million as at 31 August 2021. As a result, provision for inventories decreased from HK$4.2 million in the same period last year to nil in current period.
Despite the surge of a new wave of COVID-19 cases driven by the hyper-contagious Delta variant globally, the confirmed cases for the COVID-19 in Hong Kong continued to maintain at a relatively low level. The foot traffic for our stores continues to recover. The management is of the view that the department store operations would continue to be challenging with the new norm that COVID-19 would not die out in short run unless most people get vaccination. The Group will take a cautious approach in its business planning to weather the current unfavourable environment. With the support of Realord as the new controlling shareholder of the Company during the period, the Group will carefully deploy its business plans in order to overcome the current adversity.
Founded in 1900, The Sincere Company Limited is one of the Hong Kong’s oldest and most respected retail groups. During 1930s to 1940s, Sincere was reputed as top of the four largest department stores in Shanghai. Currently, The Group has four department stores in Hong Kong located at Central, Mong Kok, Sham Shui Po and Tsuen Wan.
In June 2021, Realord Group Holdings Limited ("Realord Group") (SEHK Stock code: 1196.HK) completed an acquisition of Sincere and officially became the controlling shareholder. In August 2021, Sincere became the designated department store for the Miss Hong Kong Pageant 2021, and co-organized a number of related themed events. Sincere also actively explored new retail models such as e-commerce and live-streaming e-commerce, and successfully held the "A new journey for Sincere’s 100 years", a live-streaming e-commerce event with widespread attention. At the same time, Sincere’s profound experience in department store business and Realord Group’s commercial operations and property development continues to produce synergies. In October, the installation of the Sincere’s signage in Realord Commercial Building in Longhua District, Shenzhen was officially launched marking Sincere’s formal entry into Commercial and retail markets of mainland China again. In the future, Realord Group and Sincere Company will jointly deploy the department store business in Shenzhen and Hong Kong, further extending the business strategy to the Guangdong-Hong Kong-Macao Greater Bay Area. The Group believes that with the support of the Realord Group, the century-old Xianshi store will continue to rejuvenate.
Realord Group (1196.HK) was Included to FTSE Russell Global Equity Index Series
(Hong Kong, 20 September 2021) – Realord Group Holdings Limited ("Realord Group" or the “Company”, together with its subsidiaries, the “Group”, stock code: 1196) is pleased to announce that the Group was included as a constituent of the FTSE Russell Global Equity Index Series (“FTSE GEIS”), following FTSE's most recent semi-annual review. The inclusions in the FTSE Global Small Cap Index, FTSE Global All-Cap Index (LMS) and FTSE Global Total-Cap Index (LMSµ) became effective after the close of business on September 17, 2021.
FTSE Russell is a global leader that provides index, analytics, and data solutions for investors worldwide. The FTSE GEIS provides a robust global equity index framework to evaluate the stock performance in the regional and global market. The series covers more than 7,400 securities in 46 countries and captures 98% of the world’s investable market capitalization.
Being included in the FTSE GEIS showing that the Group’s outstanding performance in the international capital market was firmly recognized, which will help to improve the Group’s reputation between investors from domestic and overseas. For a long time, Realord Group has adhered to the steady development strategy while exploring suitable strategic investment opportunities, all the business segments has steadily increased. For the six months ended 30 June 2021, the Group recorded a total revenue of approximately HK$445.4 million, representing an increase of 45.5% as compared to the same period in 2020, net profit increased 10.7% year-onyear to HK$53.1 million, and profit attributable to owners of the Company was approximately HK$47.4 million. The property segment and finance services segment achieved an obviously improvement, the Group's five investment property projects in Shenzhen are proceeding in an orderly manner, attributable to the enormously increase in net gain on fair value changes of investment properties, the property segment recorded a segment profit of approximately HK$313.9 million, representing an increase of 61.6% year-on-year. In terms of the finance services segment, 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, margin financing services as well as securities brokerage services. In the first half of 2021, the Group’s finance services segment recorded a segment profit of approximately HK$12.3 million, which increased 221% year-on-year.
CCTV interview: Realord Chairman says Qianhai and Hengqin are the accelerators for in-depth cooperation between Guangdong-Hong Kong, Guangdong-Macao and Hong Kong-Macao!
(September 18, 2021, Hong Kong) The Guangdong-Macao In-depth Cooperation Zone in Hengqin, Zhuhai was inaugurated on 17th September, 2021. The organization, members and functions of the working department were announced, showing that the full implementation of the In-depth Cooperation Zone was accelerated. Reporters of CCTV-NEWS interviewed Shenzhen CPPCC Committee Member, Shenzhen Federation of Industry and Commerce Vice Chairman, Chairman of Futian District Federation of Industry and Commerce, Chairman of Hong Kong Taxi Drivers Association, Realord Group & The Sincere Company Chairman Dr. Bryan Lin. "Qianhai is an important platform for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area while Hengqin has its own characteristics and advantages. Thus the zone is an accelerator for in-depth cooperation between Guangdong-Hong Kong, Guangdong-Macao, and Hong Kong-Macao", he said.
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Sincere Chairman and CEO present prizes to Miss Hong Kong 2021 Pageant Winners
(September 16, 2021, Hong Kong) Sponsored by the Sincere Co., Ltd. (hereinafter referred to as "Since", stock code: 244.HK), Television Broadcasts Limited ("TVB")'s "Miss Hong Kong 2021" Pageant was broadcasted on September 12. An award ceremony hosted by Sincere was held in Sincere Tsuen Wan Shop. Realord Group Holdings Limited (hereinafter referred to as "Realord Group", stock code: 1196.HK) and Sincere Chairman Dr. Bryan Lin Xiaohui, and Realord & Sincere CEO, Ms. Suki Su Jiaohua presented prizes to the four "Miss Hong Kong 2021" Pageant winners.
Realord & Sincere Chairman Dr. Lin Xiaohui said: "This year is a special year. Sincerely continues to break through, particularly being a sponsor of TVB's "Miss Hong Kong". "Miss Hong Kong" pageant positions a prestigious reputation. Similar as "Miss Hong Kong", Sincere insists on selecting the best consumer goods, making breakthroughs, and being innovative. Both of two brands are quite compatible. We have been pleased by how well and successful Sincere and TVB have worked together."
Realord Group was elected as the Third Term of Vice President Unit of Shenzhen Futian District Charity Community
On 10th September, 2021, the third member meeting of Shenzhen Futian District Charity Community and the Futian District Charity Award Ceremonny were held in Futian Hall. Futian District Party Secretary Huang Wei, Futian District Party Committee Deputy Secretary and Acting District Mayor Zhou Jiang Tao, Chairman of the District CPPCC Li Shengwei, Deputy Director of the Civil Affairs Bureau Wu Yuanxiang, Member of the Standing Committee of the District Committee and Director of the District Government Office Lan Tao, Deputy Director of the Standing Committee of the District People's Congress and Chairman of the District Federation of Trade Union Zhang Hairong, and Deputy District Chief Meng Man attended the event. Witnessed by the Futian District Party Secretary and Deputy Secretary and other leaders, Realord Group was elected as the third term of Vice President Unit of Shenzhen Futian District Charity Community.
Realord Group has always adhered to the philanthropic virtues of giving back to the society, and insists shouldering its social responsibility. Realord Group & Chairman Dr. Bryan Lin Xiaohui have always been keen on charity and have donated more than 100 million hong kong dollars to society such as helping disadvantaged groups and the people in need.
Realord Environmental Protection receives "Eco-partner & EcoPioneer - BOCHK Corporate Environmental Leadership Awards 2020"
On 3th September 2021, Realord Environmental Protection Industrial Company Limited, a member of Realord Group Holdings Limited (SEHK stock code: 1196) was awarded as an "EcoParter" & "EcoPioneer" from "BOCHK Corporate Environmental Leadership Awards 2020".
Co-hosted by The Federation of Hong Kong Industries (FHKI) and Bank of China (Hong kong) (BOCHK), the "2020 BOCHK Corporate Environmental Leadership Awards" was held that aims to encourage and promote environmental practices among the manufacturing and the services enterprises in Hong Kong and the Pan Pearl River Delta region to shoulder corporate social responsibility and create a green community.
Realord Environmental Protection Industry Company Limited, which is mainly engaged in the waste recyling, dismantling and sales of processing waste materials (such as copper, aluminum and plastics), operates in Osaka, Japan and Wuzhou, Guangxi Province of the PRC. The Company contributed the revenue of approximately HK$256 million to the Group in the first half of 2021.
Realord Group Announces 2021 Interim Results Total Revenue Increased 45.5% YoY to HK$445.4 million Profitability Improved Continuously
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.”
Countdown to the opening of Sincere Mall
(July 16, 2021, Shenzhen) Since the acquisition of The Sincere Company Limited (SEHK stock code: 0244.HK) has been completed, “Realord Mall”, located in Realord Villas in Luhu sub-district of Longhua District, Shenzhen, is officially renamed as “Sincere Mall” where will be opened on December 19, 2021. A meeting for Countdown to the opening of Sincere Mall was held, staff from Realord Commercial Management (Shenzhen) Company Limited expressed their confidence and determination to achieve missions so as to ensure the opening of shopping mall as scheduled.
