Realord Group Holdings Limited

Press Release

2019-11-04

Realord Group Holds the first Reverse Roadshow in Realord Villas On the 4th November 2019, Realord Group Holdings Limited (“Realord Group” or the “Company”) organized a first reverse roadshow in Realord Villas, more than ten participants including the executives from investment institutions and stock analysts took part in this activity. Realord Group Chief Financial Officer & Company Secretary Justin Chan, Realord Commerce Group Chairman Dr. Yulai, and General Manager Lo Xinwen arranged meeting and site visit. During the meeting, the Realord Commerce Group Chairman Dr. Yulai and General Manager Lo Xinwen introduced about the market positioning and the future strategic planning of Realord VCity, a shopping mall in Realord Villas, having in-depth discussion with the participants. Realord Commerce Group Chairman Dr. Yulai said, “We are very grateful to those participants from Hong Kong who take their treasure time to attend our reverse roadshow. Marked as “community shopping center”, Realord VCity is the Group’s current signature commercial project. On the basis of the traditional business model of the plaza, we pay more attention on the customers’ needs and their cultural aspects, we hope we could customize the shopping center that satisfy the target customers, residents of Realord Villas and the residents nearby. It is expected that tenants will station in our shops and shopping mall in the first half of 2020.” The reverse road show was praised by the participants. The Group will continue to actively respond to investors' needs, to organize activities through different channels, and to maintain close communication with the capital market.

2019-09-19

Dr. Bryan Lin Becomes Chairman of Taxi Drivers & Operators Association and Chief Honorary Chairman of Full Caring Foundation On 17th September, 2019, the 3rd Inauguration Ceremony of the Taxi Drivers & Operators Association (“TDOA”) Board of Directors and the 2nd Inauguration Ceremony of Full Caring Foundation Board of Directors were held at Kowloon Bay International Trade & Exhibition Centre. Being Chairman of Taxi Drivers & Operators Association and Chief Honorary Chairman of Full Caring Foundation, Dr. Bryan Lin Xiaohui, Chairman of Realord Group Holdings Limited, also known as Shenzhen CPPCC Member, Member of the Standing Committee of the Shenzhen Futian District CPPCC, Chairman of Shenzhen Futian District Federation of Industry and Commerce attended the ceremony and also served as an official guest. For the former part of the ceremony, granted by an official guest Ms Mable Chan, JP, the Commissioner of Transport, HKSAR Government, Dr. Bryan Lin received the appointment certificate of serving as Chairman of Taxi Drivers & Operators Association while Mr. Wong Yifeng was appointed as Board Chairman. During latter part of the inauguration, granted by another official guest Ms. Regina Ip Lau Suk-yee, GBS, JP, Member of the Legislative Council and Executive Council of HKSAR, and Chairman of the New Democratic Party, Mr. Wang Liping was appointed as Chairman of Full Caring Foundation, Mr. Yue Yi as Executive Vice Chairman, Dr. Bryan Lin as Chief Honorary Chairman and Mr. Wong Yifeng as Vice Chairman. Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses, “it’s a great honor and pleasure for me to attend this ceremony, serving as the Chairman of Taxi Drivers & Operators Association and Chief Honorary Chairman of Full Caring Foundation. We, the fellows of TDOA will definitely adhere our mission to help each other and to serve the community, so as to help the disadvantaged, to support charity, and to create a beautiful and harmonious society ”

2019-08-30

Revenue growth of 83.1% to HKD$403M (August 30, 2018 - Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company”, together with its subsidiaries collectively known as the “Group”, stock code: 01196.HK) is pleased to announce its unaudited interim results for the six months ended 30 June 2019 (“the Period” or “1H2019”). During the period under review, the total revenue increased to HK$403 million, representing an increase of 83.1% as compared to HK$220 million in the 2018 interim results ("1H2018"). The revenue was mainly contributed by the Environmental Protection Segment (“EP Segment”), the Motor Vehicle Parts Segment (“MVP Segment”) and the Commercial Printing Segment. The EP Segment contributed approximately 72.4% of the total revenue of the Group, the MVP Segment approximately 12.6% and the Commercial Printing Segment approximately 10.1%. The remaining part was contributed by other segments of the Company The EP Segment As a major revenue stream of the Group, the EP Segment generated revenue of approximately HK$292.1 million in 1H2019, representing a significant increase of approximately 156.7% as compared to that in 1H2018. Since the tightening control policy of the imports of scrap materials (the “Policy”) promulgated by the government of the PRC in the second quarter of 2018. The EP Segment will continue to be one of the major revenue streams of the Group and in view of the promulgation of the Policy, the Group expects that the major drivers of the EP Segment would be the Malaysia’s operation and the Japan’s operation. The Group will continue to explore the feasible delivery and processing options from Malaysia and Japan and it is the Group’s target to commence the local sales in Japan through the leased processing plant in Osaka. The MVP Segment The MVP Segment generated the second largest revenue to the Group in 1H2019, amounting to approximately 12.6% (i.e. HK$50.7 million) of the total revenue of the Group. The MVP Segment has a slight increase of revenue of approximately 9.2% in 1H2019 which was mainly attributable to the increase in sales to the wholesale customers. The Group’s strategy as to the MVP Segment is to continue to focus on the wholesale business of the motor vehicle parts, as well as sales on online platform and the automobile sales service shops located in the PRC. The existing customers of the Group are mainly from Guangzhou, and the Group will start to explore other business opportunities in other provinces of the PRC. The Financial Services Segment The Financial Services Segment generated a revenue of approximately HK$14.0 million, representing 3.5% of the total revenue of the Group during the 1H2019. The revenue from this segment increased by 182.3% as compared to 1H2018. The increase in the revenue of Financial Services Segment was mainly attributable to the consolidation of revenue generated by Optima Capital since completion of acquisition in April 2019, which enables the Group to provide more comprehensive financial services to its customers and thus improves the segment results during the period under review. In April 2019, the Group completed its acquisition of 60% issued share capital of Optima Capital, which is a corporation licensed to carry out Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising corporate finance) regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and is principally engaged in provision of corporate finance advisory services in Hong Kong. The Group believes that the acquisition strengthens the Financial Services Segment of the Group in Hong Kong and it facilitates the Group to build an one stop financial service platform with good branding and market positioning. The Commercial Printing Segment The Commercial Printing Segment contributed a revenue of approximately HK$40.7 million, which represented 10.1% of the Group’s total revenue during 1H2019 and a decrease in revenue by 9.3% as compared to approximately HK$44.9 million in 1H2018. The operating profit decreased from HK$2.1 million to HK$0.7 million. Both decline in segment revenue and operating profit were resulted from the negative sentiment of the capital market which stagnated the merger and acquisition and fundraising activities during the period under review. Contemplating the continuous competition for the Commercial Printing Segment over the years, it is expected that the competition in the market will hinder the Group to pass the inflating operating costs to customers in coming years and this will limit the profit margin for the Segment in the foreseeable future. The Directors will keep reviewing and assessing the risks, benefits and prospects thereof along the operations. The Hangtag Segment The Hangtag Segment generated a revenue of approximately HK$0.2 million, representing 0.1% of the Group’s total revenue. The segment revenue decreased by 52.2% from approximately HK$0.5 million for 1H2018 to approximately HK$0.2 million for 1H2019. The operating loss derived from this segment was relatively minimal during the period under review and the last corresponding period. The Property Investment Segment The revenue of the Property Investment Segment was mainly generated from the rental income of the Group’s investment properties. In 1H2018, the Group generated aggregate rental income of approximately HK$9.8 million. In 1H2019, to facilitate the approval process by the Development and Reform Commission (發展和改革委員會) and other government authorities in relation to the Group’s application made for urban redevelopment of the Qiankeng Property from industrial use to public housing and residential use, the Group had terminated the lease agreement of the subject property for setting up the development projects (立項) in this regard. Due to the termination of the lease, the revenue generated from this segment decreased from HK$9.8 million to HK$5.7 million. Apart from this, the Property Investment Segment generated a profit of approximately HK$304.6 million in 1H2019, representing a slight decrease of approximately 13.9% as compared to that in 1H2018. This was mainly attributable to the increase in finance costs arising from the bank borrowings for financing the Acquisition of approximately HK$117.7 million, offset by the increase in the fair value gain on the investment properties of HK$91.5 million. The Group considers that this acquisition would further diversify the Group’s portfolio of investment properties and strength the Property Investment Segment. In addition to this, the Group holds other investment properties including but not limited to that in Realord Villas in Gualan District and that in Guangming High-Tech Zone – East District, Guangming District. Both investment properties are located in direct administrative districts which had been designated for speedy economic development by the local PRC governments. It is expected that the growth engine for the development of these two districts will be the investors within Shenzhen City or from other regions of the PRC. The Group is optimistic to the property market in these two districts and in view of this, has engaged a consultant to establish a bespoke rebranding strategy and refurbishment plan for its investment properties. The Group has initiated works to enable the redevelopment of the Qiankeng property and the Zhangkenjing property for more than a year. The Zhangkenjing property was acquired by the Group in September 2015. In February 2017, the Group has made an application to the PRC government authority to change the land use of the Zhangkenjing property from industrial use to residential apartments and office use for redevelopment purpose. In accordance with the notice from the government authority, the application is being processed and reviewed by the relevant authorities and is still under review as at the reporting date. The Qiankeng property was acquired by the Group in June 2016 and the application for urban redevelopment of the Qiankeng property from industrial use to public housing and residential use was also made to 深圳市龍華區城市更新局 (Shenzhen Longhua District Urban Renewal Bureau) in May 2017. It was noted that the Qiankeng property has been included in the relevant urban renewal bureau’s announcement regarding the proposed urban redevelopment plan for the Longhua District of 2019. The Company is uncertain about when the approvals will finally be granted but it expects that it should be granted in second half of 2019, subject to government schedules, and thereafter the redevelopment works will commence. The Group has also obtained consents from local residents regarding another redevelopment plan located in Nanshan District, Shenzhen Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses “Given that the recent reform plan to make Shenzhen as a model city promulgated by the Government of the People's Republic of China on 18 August 2019, the Group believes that it is absolute a golden opportunity to the Shenzhen enterprises as well as Realord Group. Thus, we are confident in maintaining a momentum to our business in the future in order to make more attractive returns to our shareholders.”

2019-07-19

Director of Housing and Construction Bureau of Futian District, Shenzhen Municipality Yang Zhandong Visits Realord Villas On the 18th July 2019, Housing and Construction Bureau of Futian District, Shenzhen Municipality Director Yang Zhandong, Deputy researcher Yuan Lizhu, and Section Chief Hu Bin visited Realord Villas to study the current status of Talents Housing Flats in-take, and held a meeting with Realord Group Holdings Limited (the Group or Realord Group). Shenzhen Xiapu Optoelectronic Technology Co., Ltd. Executive Director Lin Jiming, Realord Estate (Shenzhen) Co. Ltd. Deputy General Manager Li Tianfu, and Shenzhen Realord Property Management Co., Ltd. Engineering Manager Chen Yanyun accompanied guests for this visit. During the meeting, Lin Jingming and Li Tianfu first welcomed the leaders’ coming and expressed gratitude to them for their on-site visit with an aim to help enterprises solve difficulties in spite of the hot weather. Li Tianfu briefly introduced the basic information, location and related future planning of Realord Villas. Located in Guanlan Street, Longhua District, Shenzhen, Realord Villas is Realord Group's first commercial and residential real estate project. The residential part of this project belongs to the Shenzhen Futian Government, which is also known as ‘Talents Housing Project’, the Affordable Public Housing Units for eligible enterprise talents in PRC, whereas the commercial part, including a commercial apartment building, retail stores, car park spaces, is owned by Realord Group’s Hong Kong listed company. The entire project covers a land area of about 33,000 square meters (sqm), the gross floor area (GFA) of commercial parts was about 51,100 sqm, and the GFA of residential part with totally 2016 housing flats about 127,000 sqm. The in-take of tenants has been started since the end of 2017 and the so far occupancy rate has been increasing. However, according to the opinions reflected by some eligible applicants who were still unable to move into Realord Villas due to various problems, given that their applications have been submitted and qualified, resulting in a vacancy of some talent housing resources. Noted with this problem, Realord Group strives for liaising with Shenzhen Futian Government to help those applicants. After listening Li’s report, Housing and Construction Bureau of Futian District, Shenzhen Municipality Director Yang Zhandong expressed his appreciation towards Realord Group for its contribution to the Shenzhen Futian Government to help construct this talents housing project. Realord Villas, as a part of talents housing of Shenzhen Futian District, plays a vital role in the talents placement and satisfying their demand of living. The Bureau attaches great importance to allocation of talents housing resources, and explained that their visit was aimed to find out the enterprises’ difficulties, and help find the way outs. Yuan and Hu mentioned that the Bureau will speed up the procedures of application and the settlement compliance with the policies and regulations. The visitors and the representative of the Group also had a heated discussion on how to improve the quality of property services, safety production and, the proper ways in handling domestic waste separation for recycling. Yang emphasized that the nature between talent housing and commodity housing is different but their standards and purposes are consistent when it comes to property services. Therefore, he hopes that Realord Villas could maintain a high quality in property service and management so that the corporate talents will stay there happily and enjoy living there. After the meeting, Yang and his team visited a residential flat in Realord Villas and he said: “With convenient transportation and beautiful sceneries nearby, as well as the appropriate design of the residential housing, the corporate talents would be happy to move into Realord Villas as soon as they could. The Bureau will review and follow up the content that they discussed today again, so as to fully allocate the talent housing resources and effectively serve the corporate talents in Futian District.”

2019-06-07

Realord Chairman Attends 2019 Sai Kung Dragon Boat Gala and gives a welcome speech On the 7th June 2019, the annual “Sai Kung Dragon Boat Gala", in which also celebrates the 70th anniversary of the founding of the People's Republic of China (PRC) this year, was held in Sai Kung Pier. Being the Chairman of Sai Kung District Dragon Boat Race Preparation Committee and also known as the committee member of the Shenzhen CPPCC, the standing committee member of Shenzhen Futian District CPPCC, the Chairman of Shenzhen Futian District Federation of Industry and Commerce (General Chamber of Commerce), and chairman of Realord Group Holdings Limited, Dr. Bryan Lin Xiaohui attended the event and gave a welcome speech. The Chief Executive Officer of Realord Group Ms. Suki Su Jiaohua accompanied him to the activity. The officiating guests included Chief Secretary for The Government of the Hong Kong Special Administrative Region Mr Matthew Cheung Kin Chung, GBM, GBS, JP, Sai Kung District Council Chairman Dr Ng Si fuk, Sai Kung District Officer of Sai Kung District Office, Mr. Chiu Yinwah, JP, Chairman of the Preparatory Committee for Dragon Boat Races in Sai Kung District, Mr. Lau Wai Kin, Chairman of Sai Kung District Dragon Boat Race Preparation Committee, Dr. Bryan Lin Xiaohui, Chairman of Sai Kung District Rural Committee Mr. Wong Shui sheng, and Chairman of Hang Hau Rural Committee Mr. Lau Kai Hong. In addition, the Chairmans of Sai Kung District Dragon Boat Race Preparatory Committee included Mr. Chan Kuen Kwan, MH, Mr. Li Fu Hong, MH, Cheung Tin Sung and the Chairman of the Special Activities Working Team Mr. Cheung Yat Liang, BBS, MH, Vice Chairman Mr. Mak Hing Kwan, MH and Shenzhen CPPCC Mr. Pan Jiadong, Member of the Standing Committee, Hong Kong, Macao and Taiwan Overseas Chinese and Foreign Affairs Committee. To celebrate the 70th anniversary of the founding of the PRC, the splendid and lively lions dance at sea and also the stimulating heavyweight finale competition entitled "Sai Kong District and the 70th Anniversary of the Founding of the People's Republic of China Mid-dragon invitational competition " were specially arranged. Dr. Bryan Lin Xiaohui, Chairman of Realord Group Holding Limited gave his welcome speech to the guests. From left to right: Mr. Pan Jiadong, Member of the Standing Committee, Hong Kong, Macao and Taiwan Overseas Chinese and Foreign Affairs Committee; Dr. Bryan Lin Xiaohui, the Committee Member of the Shenzhen CPPCC, the Standing Committee Member of Shenzhen Futian District CPPCC, the Chairman of Shenzhen Futian District Federation of Industry and Commerce (General Chamber of Commerce), and chariman of Realord Group Holdings Limited, Chairman of Sai Kung District Dragon Boat Race Preparation Committee; Mr Matthew Cheung Kin-chung, GBM, GBS, JP, Chief Secretary for The Government of the Hong Kong Special Administrative Region; Ms Suki Su Jiaohua, CEO of Realord Group Holdings Limited Dr. Ng Si fuk, Sai Kung District Council Chairman (right) & Dr. Bryan Lin Xiaohui, Chairman of Realord Group Holdings Limited (left) From left to right: Mr. Lau Wai Kin, Chairman of Sai Kung District Dragon Boat Race Preparation Committee; Ms Suki Su Jiaohua, CEO of Realord Group Holdings Limited; Mr. Wong Shui Sheng, Chairman of Sai Kung District Rural Committee; Dr. Wu Shi fu, the Chairman of Sai Kung District Council; Dr. Bryan Lin Xiaohui, the Chairman of Realord Group Holdings Limited; Mr. Pan Jiadong, Member of the Standing Committee, Hong Kong, Macao and Taiwan Overseas Chinese and Foreign Affairs Committee; Chairman of Hang Hau Rural Committee Mr. Lau Kai Hong.

2019-05-29

Realord Environmental Protection receives "Eco-partner - BOCHK Corporate Environmental Leadership Awards" On 29th May 2019, Realord Environmental Protection Industrial Company Limited, a member of Realord Group Holdings Limited (SEHK stock code: 1196) was awarded as an "Ecoparter - BOCHK Corporate Environmental Leadership Awards" as a recognition of its environmental protection efforts. Co-hosted by The Federation of Hong Kong Industries (FHKI) and Bank of China (Hong kong) (BOCHK), the "2018 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. The event attracted 650 enterpises' participation and competing for the prizes. Realord Environmental Protection Industry Company Limited is mainly engaged in the waste recyling, dismantling and sales of processing waste materials (such as copper, aluminum and plastics). Its opertaion base is located in Guangxi Wuzhou Import Renewable Resources Processing Park, where is one of the national "urban mining "demonstration bases. The Company contributed the revenue of approximately HK$570 million to the Group in the full year of 2018. It also achieved the goal of HK$100 million net profit within three years. The company actively expanded overseas markets in East Asian and South East Asian Regions. Realord Environmental Protection Japan Company Limited, a subsidiary of the Company signed a cooperation agreement with Tsugawa Metal Co., Ltd. to establish an overseas processing factory and operation office in Osaka, Japan. Justin Chan, the Chief Financial Officer and Company Secretary of Realord Group Holdings Limited represented the Group to receive an "Ecoparter - BOCHK Corporate Environmental Leadership Awards" .

2019-05-10

2019-03-29

Realord Group Announces Full Year 2018 Results: Profit Attributable to the Shareholder reaching near 290% to HK$363M sets All-Time High (March 29, 2018 - Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company”, together with its subsidiaries collectively known as the “Group”, stock code: 01196.HK) is pleased to announce its unaudited annual results for the twelve months ended 31 December 2018 (“the Year”). During the year under review, the total revenue increased to HK$811 million, representing an increase of 6.3% as compared to HK$763 million in FY2017. The Group recorded a huge increase with approximately 245% in the profit as HK$383.7 million this year, compared to HK$111.2 million in FY2017. OVERVIEW OF FULL YEAR 2018 RESULTS (UNAUDITED) FY2018 (HK$’000) FY2017 (HK$’000) Change (%) Total Revenue 811,039 762,959 +6.30% Profit 383,711 111,221 +244.99% Profit Attributable to the Equity Holders 363,282 93,254 +289.56% Profit before Tax 555,949 166,281 +234.34% Gross Profit 181,728 141,508 +28.42% Earnings Per Share (HK Cents) 26.89 8.11 +231.57% Net Asset Value 2.17 0.93 +133.33% Bank balances and Cash 896,544 61,477 +1358.34% Total Assets 11,421,669 2,175,492 +425.02% Net Current Assets 1,078,500 200,562 +437.73% Total Equity 2,932,426 1,103,998 +165.62% Benefited from an increase in profit margin derived from the Environmental Protection Segment from 9.4% to 15.9% and the fair value gains on investment properties of approximately HK$671.4 million (2017: HK$155.7 million), which was partly offset by the deferred taxation imposed on the fair value gains of approximately HK$166.1 million (FY2017: HK$48.8 million) as well as the finance costs of approximately HK$424 million (FY2017: HK$30.8 million), the profit attributable to the shareholders from HK$93.25 million in FY2017 rose to HK$363.2 million this year, which is about 289.56% year-over-year. The basic earnings per share is up from HK$8.11 cents in 2017 to HK$26.89 cents this year, with an increase of approximately 231.57%, whereas the net asset value is up from HK$0.93 in FY2017 to HK$2.17 in FY2018 with 133.33%. Business Segments Summary: Environmental Protection Segment Recorded HK$571 million, as 70.4% of the Group’s Total Revenue. The profit of this business segment reached HK$67.3 million for the year, representing an increase of 28.74% as compared with HK$52.30 in FY2017. In February 2017, the Group completed the acquisition of 60% of the issued share capital of Realord Environmental Protection (REP) from a vendor at a maximum consideration of $HK60 million, including HK$25 million in cash and 5 million consideration shares (HK$7.00 per share, involving an amount of HK$35 million). According to the agreement, if REP has achieved a profit target not less than HK$15 million in FY2016, 750,000 consideration shares shall be allotted and issued by the Company to the vendor; if the profit target was not less than HK$35 million in FY2017, 1,750,000 consideration shares shall be allotted and issued by the Company to the vendor; if the profit target was not less than HK$50 million in FY2018, 2,500,000 consideration shares shall be allotted and issued by the Company to the vendor The Profit contributed by Environmental Protection Segment in FY2016 and FY2017 were HK$29.25 million and HK$46.17 million respectively which exceeded the profit targets from an agreement, and therefore the Group has granted 750,000 and 1,750,000 consideration shares to the vendor accordingly. In the second quarter of 2018, new environmental protection regulations were launched in the PRC which have tightened the import requirement of scrap materials since 31 December 2018. As a result, the Group postponed its plan to develop a processing plant in the PRC for recycling and production of copper and aluminum ingots to second half of 2019 To expand business overseas and look for suitable location in East or Southeast Asian Regions to develop another processing plant for dismantling, crushing, and smelting of scrap materials. Motor Vehicle Parts Segment Representing 15.7% of the Group’s total revenue during the year, the Motor Vehicle Parts Segment recorded a significant increase by 46.3% to approximately HK$127.1 million as compared to HK$86.9 million in FY2017. Substantial growth in revenue was mainly attributable to expansion of operation in Guangzhou during the year. However, the increase in revenue was offset by increase in administrative and operating expenses incurred for expansion of the Guangzhou operation. The segment became breakeven for the year as compared to an operating profit of approximately HK$0.6 million for the last year. In view of high rental expense incurred for a retail store in Hong Kong, the Group has ceased the retail business in Hong Kong since November. The Group is now shifting its focus to sales at online platforms and automobile sales service shops, which concentrates target customers in Guangzhou, the PRC. Such change could reduce operating costs and at the same time capture the market trend as well as enhance distribution network in Guangzhou. Commercial Printing Segment Contributed approximately HK$82.4 million, representing 10.2% of the Group’s total revenue during the year. There was an increase by 17.6% to approximately HK$82.4 million as compared to HK$70 million in FY2017. As a result of procured several IPO and merger and acquisition transaction engagements and implemented certain cost control activities during the year, the operating profit of approximately HK$2.3 million as compared to loss of approximately HK$8.1 million in FY2017. Property Investment Segment Recorded a revenue of approximately HK$19.5 million during the year, representing 2.4% of the total revenue of the Group. The revenue from this business decreased by 3.3% to approximately HK$19.5 million as compared to approximately HK$20.2 million in the last year. However, due to the substantial increase in fair value gains on investment properties in Shenzhen resulted from the acquisition of a commercial/apartment building, retail shops and all car parking spaces of “Realord Villas” located in Longhua and 2 blocks of office building (“Realord Technology Park”) in Guangming during the year amounted to approximately HK$671.4 million (2017: HK$155.7 million), the profit from this segment increased to approximately HK$316.2 million during the year as compared to the profit of approximately HK$169.2 million in the last year. The Directors are of the view that the acquisition would largely enhance the Group’s portfolio of investment properties and strengthen the property investment business of the Group by creating additional stream of stable rental income and potential capital gain for the Group. The Group expects that the renovation project of Realord Villas and Realord Technology Park will be completed in late 2019 and mid 2020 respectively, and commence business in early 2020 and late 2020, respectively. Financial Services Segment HK$10.3 million, as 1.3% of the Group’s total revenue, was recorded during the year which maintains a similar level as compared to HK$10.8 million in FY2017. On 23 May 2016, the Group entered into an agreement with 5 other independent third parties to set up a joint venture security company named “Yuegang Securities Limited” (“Security Company”) in Pilot Free Trade Zone, Nanshan District, Guangzhou to carry out securities businesses in the PRC. Upon establishment, the Group agreed to subscribe 10% equity interests of the Security Company with RMB350 million in cash. The application for the approval was filed to China Securities Regulatory Commission (the “CSRC”) in July 2016 and under review as at the reporting date. In September 2018, the Group acquired the entire issued share capital of a Hong Kong company which is licensed to carry out Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (“SFO”) and authorized by the Hong Kong Confederation of Insurance Brokers as an intermediary to broker long term insurance under Insurance Ordinance (Chapter 41 of the Laws of Hong Kong). In December 2018, the Group acquired 60% entire issued share capital of Optima Capital Limited (the “OCL”), a corporation with licenses to carry out Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) regulated activities under the SFO. It principally engages in providing corporate finance advisory services in Hong Kong. The Group believes that the two acquisitions will help strengthen its Financial Services Business in Hong Kong and will complement its existing services portfolio, provide more comprehensive services to customers, and to broaden its client base. Hangtags Segment The Hangtag Segment contributed a revenue of approximately HK$1.0 million, representing 0.1% of the Group’s total revenue during the year. The revenue from the Hangtag Segment further decreased by 62.3% as compared to the revenue of the last year of approximately HK$2.6 million. The decrease was mainly resulted from less orders received from customers, which were mainly from the garment industry. Through implementation of cost control measures, included outsourcing the manufacturing processes, the segment remained breakeven for both this year and the last year. Dr. Bryan Lin, Xiaohui, Chairman of Realord Group expresses “The Group will continue to explore more for opportunities in investment and expansions, particularly the unveil of Guangdong-Hong Kong-Macao Greater Bay Area development plan will bring us unlimited business chances, therefore we are confident in maintaining a momentum to our business in the coming year.” - End -