Press Release
Realord Expands The Environmental Protection Business In Wuzhou, Guangxi Invest In A Recycling And Production Of Aluminium Ingots Project With 100,000 Tonnes Target Annual Production Capacity
(June 8, 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 Top Eagle International Trading Limited (“Top Eagle”) , an indirect 60%-owned subsidiary of the Company, has entered in an investment agreement with Wuzhou Import Renewable Resources Processing Park Management Committee (the “Committee”). The cooperation carried out a recycling and production of aluminum ingots project in Wuzhou Import Renewable Resources Processing Park (the "Park") with a target annual production capacity of 100,000 tonnes. The total investment amount is approximately RMB 350 million. The project will further enhance the Company's recycling business in renewable resources, and improve the renewable aluminum business planning in the park.
To solve the dilemma with the current renewable aluminum industry in the Park, the Committee has been seeking investment precisely to complement full-chain industry, and entered an investment agreement with Top Eagle. The cooperation introduced a recycling and production project of aluminum ingots with a target annual production capacity of 100,000 tonnes into the park. The project is belonged to a midstream project of renewable aluminum industry chain. It mainly engages in recycling and production of aluminum ingots, and plays an important role in enhancing and connecting the upstream and downstream of renewable aluminum industry chain in the park. The project is beneficial to the closed-cycle of circular economy within the park, and accelerates the development of renewable resources industry.
According to the agreement, Top Eagle will build a processing plant for the recycling and production of aluminum ingots in Wuzhou Import Renewable Resources Processing Park located in Wuzhou City, Guangxi Province. The target annual production capacity of the project will reach 100,000 tonnes to be ramped up in two phases. The total investment amount is approximately RMB350 million, and not limited to acquisitions of the site, construction of the processing plant and office premises, plant and machinery acquisitions. The investment and development will divided into Phase One Site and Phase Two Site with a total area of 129 mu. The phase one investment will be approximately RMB250 million with a site area of approximately 80 mu (equivalent to approximately 53,360 square meters), while the phase two will be approximately RMB100 million with a site area of approximately 49 mu (equivalent to approximately 32,683 square meters). The term of the land use rights of the Site is 50 years.
Top Eagle International Trading Limited, an indirect 60%-owned subsidiary of the Company, is mainly engaged in recycling, dismantling and sales of scrap materials, such as copper, aluminum, iron and plastic. The new processing plant to be established under the Investment Agreement introduces more complicated melting process for the production of aluminum ingots. The new processing plant would elevate its existing scrap material business 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.
About Top Eagle International Trading Limited
Top Eagle International Trading Limited engaged in recycling dismantling and sales of scrap materials such as copper, aluminum, iron, and plastic.
About Wuzhou Import Renewable Resources Processing Park
Wuzhou Import Renewable Resources Processing Park located in Wuzhou City, Guangxi Province, one of the demonstration cities of circular economy in the PRC. The park is a demonstration park of national "closed-circle management" strategy in national import renewable resources, and also known as "urban mining" demonstration base, which has been approved by the National Development and Reform Commission and the Ministry of Finance since 2011. It is mainly engaged in the recycling, processing and utilization of renewable resources as the key industrial park of Guangxi Zhuang Autonomous Region, the pilot industrial park of circular economy, and the core of the development of renewable resources industry in Guangxi. In October 2015, the park was identified as “Guangxi Industrial Park for Integration of Informatization and Industrialization in 2015”.
Realord Group Enhances its Business in Automobile Aftermarket
(May 24, 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 the vehicle parts retail shop of its subsidiary “Realord Vehicle Parts Limited”, located at To Kwa Wan, has officially opened. It is a new milestone for the Company’s vehicle parts business that extends from distributing to retailing and furtherly connects with the consumers’ market.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group; Ms. Su Jiaohua, Suki, Chief Executive Officer; Mr. Lin Xiaodong, Trevor, Executive Director; Mr. Chan, Keith Ying Kay, Chief Financial Officer, and General Manager of Guangzhou Realord Vehicle Parts Limited Mr. Lin Yibin, Ben attended the opening ceremony.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group, said: "We are glad to see the growth of Realord Vehicle Parts in the past three years, and we are confident towards the future development of this business."
Mr. Lin Xiaodong, Trevor, Executive Director of Realord Group, said: "To be more effective in reaching customers at different levels in particular the vehicle-related services providers and the consumers, establishing retail stores is absolutely imperative for us. Vehicle parts market is full of infinite opportunities and challenges, thus we will be positive and optimistic to operate and expand. What’s more, we will pay efforts to expand our dealership, distributorship and the variety of goods meeting the demands, and to attract more customers by deploying different promotional strategies.”
"Realord Vehicle Parts Limited", which engages in selling various luxury automobile parts, has been operating in Hong Kong since October 2014. Domestic Repair shops and distributors in the PRC and Hong Kong are the main customers. The base and warehouse are stationed at Ha Tsuen, Yuen Long in the New Territories where can store amount of auto parts with large size. A newly opened retail store “Realord Vehicle Parts” is located at Shop B, 157-159 Kowloon City Road, To Kwa Wan, Kowloon, Hong Kong in which customers find one more way to purchase products, so it makes a better and more comprehensive sales service.
According to the Annual Report in 2016 of Realord Group, vehicle parts segment has contributed HK $100.6 million in the year, accounting for 48% of the Group's total revenue, increased 5.5% year-on-year.
- End –
Realord Group Sponsors A Stock & Finance Video Broadcasting Show on the Internet
(May 22, 2017 - Hong Kong) To help enhance company’s online presence and visibility, Realord Group Holdings Limited (“Realord” or the “Company”, together with its subsidiaries collectively known as the “Group”, stock code: 1196.HK) has sponsors an online video broadcasting show called “Siu Yu Dai Cha Fan (小魚大茶飯)” discussing Hong Kong stock market and related finance issues since 8th May 2017. The show is organized by a local financial magazine company “Strategist” which uses a relaxed and humorous way to analyze the Hong Kong stocks, to interact with the audience and to share the investment experiences on the Internet.
Sponsored by Realord Group, the show was launched on 8th May 2017 and the period of sponsorship will run for six months. The show broadcasts at 9:55 to 10:30 am on Mondays to Fridays (for HKEx transaction days only) via Strategist’s Facebook channel. The hosts include Mr. Wong Shang Yu (nickname as Jiang Xiao Yu) and Miss June Lam. Mr. Wong is a veteran Hong Kong stock market commentator who worked as a host of a section “Siu Yu Dai Cha Fan” in a TV Financial news program “Money Smart” in the channel HD Jade on Television Broadcasts Limited (“TVB”) while Miss June Lam is a former news anchor, reporter, and editor in TVB.
About Strategist
“Strategist” is a Hong Kong financial magazine which has been published continuously every Friday since its first issue in December 2014. It uses the simple and funny ways to express the financial news and information, widely attracting lot of readers and successfully gaining a high market share just within few months. In August 14 2015, strategist has officially entered into online network that its website has been launched to provide real-time financial analysis, information, and the functions of Hong Kong stocks & futures quotes, in order to serve investors thoroughly.
Strategist’s broadcasting channel: https://www.facebook.com/winmoneylive/
- End -
Financial Services Business Expands Property Investment Segment Drives 147% Growth in Profit
(March 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 its audited annual results for the year ended 31 December 2016 (the “Year”).
2016 Annual Results
FY2016
(HK$’000)
FY2015
(HK$’000)
(Restated)
Changes (%)
Revenue
209,784
207,732
+0.99%
Gross Profit
90,999
71,121
+27.95%
Gross profit margin
43.4%
34.2%
+9.2pp
Profit before tax
208,175
48,346
+330.60%
Profit attributable to the equity holders
80,097
32,427
+147.01%
Earnings Per Share (HK cents)
6.95
3.04
+128.62%
During the Year under review, the Group recorded total revenue of approximately HK$209.8 million, representing an increase of approximately 1.0% as compared with last year (2015: HK$207.7 million (restated)). The Group recorded a profit of approximately HK$80.1 million for the Year, increased by 145.4% as compared to HK$32.6 million in 2015. The gross profit margin increased to 43.4% (2015: 34.2%) due to the remarkable increase of the revenue contributed by the Financial Services Segment and Property Investment segment. The earnings per share was HK6.95 cents (2015: HK3.04 cents).
The increase in profit attributable to the equity holders was mainly due to the increase in revenue arising from the rental income in Property Investment Segment of approximately HK$11.3 million and the fair value gain on investment properties amounted to approximately HK$270.5 million (2015: HK$90.1 million), which was partly offset by the related deferred taxation of the fair value gain of approximately HK$125.6 million (2015: HK$14.5 million), the revaluation deficit on property, plant and equipment of approximately HK$17.3 million (2015: HK$2.1 million) as well as the increase in finance cost of approximately HK$ 18.2 million. The increase in finance cost was mainly due to the increase of interest-bearing borrowings during the Year.
Business review
The Motor Vehicle Parts Segment contributed revenue of approximately HK$100.6 million, representing an increase of 5.5% from HK$95.4 million year-over-year (“YoY”), which accounted for 48% of the Group’s total revenue during the Year. However, due to the increase in administrative expenses for expansion of the operation, the operating profit decreased to approximately HK$5.0 million.
The Commercial Printing Segment recorded a revenue of approximately HK$72.7 million, representing an increase of 6.6% from HK$68.2 million YoY, which accounted for 34.7% of the Group’s total revenue during the year. However, due to the increase in the operation cost, the operating profit decreased to approximately HK$0.9 million.
The Property Investment Segment recorded a revenue of approximately HK$17.0 million during the year under review, representing 8.1% of the total revenue of the Group. The revenue from this business segment increased by 198.2% as compared to approximately HK$5.7 million (restated) in 2015. The increase was resulted from the acquisition of the properties located at Qiankeng Industrial Zone, which contributed additional revenue to the business during the year. Due to the fair value gain on investment properties recorded during the Year amounted to approximately HK$270.5 million (2015: HK90.1 million), the profit from this business increased to approximately HK$282.4 million (2015: HK$90.6 million (restated)).
The Financial Services Segment generated revenue of approximately HK$10.9 million, representing an increase of 119.0% from HK$5.0 million YoY, contributing 5.2% of the Group’s total revenue during the Year. Due to the increase in the revenue, the segment recorded an operating profit of HK$2.4 million for the Year as compared to operating loss of approximately HK$1.2 million in 2015.
The Hangtag Segment contributed revenue of approximately HK$8.5 million, as compared to HK$11.5 million in 2015, representing 4.0% of the Group’s total revenue during the Year. The decrease was mainly resulted from the decrease in orders from customers, which were mainly from the garment industry. Through implementation of cost control measures, included outsourcing part of the manufacturing process, the operating loss decreased to HK$0.4 million as compared to operating loss of approximately HK$2.3 million in 2015.
Outlook
For the coming years, the Group would extend the Motor Vehicle Parts Segment to the retails operation. The Group is in the process to set up retail shops in Hong Kong and the PRC in order to gain direct access to the customer market. The Group expects that the PRC operations will effectively contribute the expansion of this business segment. Besides, the Group is sourcing different brands of motor vehicle parts suppliers in order to broaden the variety of products offered to our customers.
The operating environment of the commercial printing and hangtag businesses will continue to be competitive. The Group shall strengthen its business development team to achieve sales growth and increase market share. Meanwhile, the Group shall adopt a more conservative strategy by simplifying the operation process and reducing the operation scale.
Financial Services Segment and Property Investment Segment will become the growth driver for the Group in the future. The Group had entered into an agreement with 5 other independent third parties to set up a securities company (namely “Yuegang Securities Company Ltd”) in Guangzhou Pilot Free Trade Zone, Nanshan area to carry out full license securities businesses in the PRC. The Group believes that the set-up of the securities company, when materialized, will be beneficial to acquire valuable investment opportunities by gaining a foothold in the strictly regulated securities market in the PRC. It can also promote the expansion of Financial Services Segment for the Group. With the launch of the Shenzhen-Hong Kong Stock Connect Scheme, the preferential government policies and the establishment of the joint venture, the Group would sustain a long term growth in the Financial Services business.
In 2016, The Group completed the acquisition of “Qiankeng Industrial Land” (land and properties located at Qiankeng Industrial Zone, Fumin Community, Guanlan Town, Baoan District, Shenzhen, the PRC). The properties together with “Zhangkenjing Land” (land and properties located at the Industrial Zone in Zhangkengjing Community, Guanlan, Longhua district, Shenzhen, the PRC) acquired in 2015, are considered as the paramount assets of the Group to evolve the real estate development business. The Group is in the process to study on the possibilities to change the land use of the Zhangkenjing Land to the use as office buildings and associated apartment and facilities. Looking forward, the Group will keep track with the economic and urban renewal development in the PRC and will strive to explore for any potential real estate development or property investment opportunities.
The Group will diversify its business into scrap materials industry upon the acquisition of Top Eagle International Trading Limited. In view of the government’s plan to foster the development of the recycling industry, the Directors are optimistic about the prospects of the scrap materials industry and are of the view that it is an opportunity for the Group to further diversify the business scope of the Group.
In addition, the Group has become a constituent of Shenzhen-Hong Kong Stock Connect Scheme which reflects a high recognition of the Company’s good performance and industry position. Through the scheme, the Group expects to diversify its shareholder base and enhance liquidity. With the continuing development of businesses, the Group will strive for a better return to investors.
- End -
Realord wins a “Choice of Property Development in Shenzhen” Award
(February 14, 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 the Company received a “Choice of Property Development in Shenzhen” Award granted by the judging panel of “Investors’ Power Picks 2017” which is formed by Metro Radio Finance (FM104) & Strategist.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group, said: "First of all, thank you for the judging panel giving us such an award, we are very honored and happy on it. Thank you for your attention and support! Property development is one of the most highly focused businesses to our Group. In recent years, we have put a lot efforts and resources in it. Currently, the Group has been launching two property development projects. One is a commercial and residential development located in Longhua District, while the other one is a premium office development situated in Guangming New District, Shenzhen. These two projects, being full of Realord staff’s efforts as the Group’s first debuts of property development in Shenzhen, would hopefully be put on the market within this year, as soon as possible. They are of great significance to the Group’s brand promotion in particular property development. We, the management, believe that the demand on real estate in Shenzhen will be increasing in the future, thus the group will accelerate the process of transforming its owned industrial properties into other buildings. We aim to develop them into high-end commercial apartments or boutique residential projects, meanwhile, the Group does not rule out the possibility for any acquisition of real estate projects in the primary market as the reserves in the future development. Realord Group’s steady development is inseparable from different parties’ great supports. Once again, I would like to say thank you for their concerns and supports. I wish you all the best in the year of Rooster. “
Dr. Bryan Lin, Realord Group Chairman (left) & Mr. Joe Lam
Dr. Bryan Lin, Chairman of Realord Group shared his feelings on the stage
The Award winners
Realord Group Chairman Dr. Bryan Lin (right) & CEO Madam Su Jiaohua
Realord Group Chairman Dr. Bryan Lin (left) & Strategist Chairman Mr. Chen Shing Lung (right)
“Choice of Property Development in Shenzhen” Award
“Investors’ Power Picks 2017” first jointly organized by "Investment headquarter 104" from Metro Radio Finance & Strategist took place at JW Marriott Hotel Hong Kong. It sets up a complete rating standards to measure the high potential and growth companies according to their stock price, performances, risk management, sustainable development and social responsibility. Totally thirteen companies won the awards in this event.
About Metro Radio Finance
Metro Finance, one of the three main channels of Metro Broadcast Corporation (Metro Finance, Metro Info, and Metro Plus), is the first 24-hour Cantonese finance radio channel in the world. Its goal is to provide the audience in Hong Kong and other parts of the world with accurate, real-time and market-moving news and important information of global financial markets. Being a breakthrough in the local radio industry, Metro Finance provides the simulcast programmes with Radio Guangdong, Shanghai Media Group and Shenzhen News Radio 89.8, to report up-to-date information of the financial markets.
About Strategist
“Strategist” is a financial magazine in Hong Kong. It has been published continuously every Friday since its first issue in December 2014. It uses the simple and funny ways to express the financial news and information, widely attracting a lot of readers and successfully gaining a high market share just within few months. In August 14 2015, strategist has officially entered into online network that its website has been launched to provide real-time financial analysis, information, and the functions of Hong Kong stocks & futures quotes, in order to serve investors thoroughly.
- End -
Realord Group included in the Hang Seng Stock Connect Hong Kong Index
(February 12, 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 the Company will become a constituent stock of Hang Seng Stock Connect Hong Kong Index (“HSHKI”), Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index ("HSHKMS") and Hang Seng Stock Connect Hong Kong SmallCap Index ("HSHKS"), with effect from March 6, 2017 (Monday).
Hang Seng Indexes Company Limited (“Hang Seng Indexes”) launched the Hang Seng Stock Connect Hong Kong Index Series (“Stock Connect Hong Kong Index Series” or “Index”) on 5 December 2016 to provide a benchmark for the performance of equities listed in Hong Kong that are eligible for trading via the southbound trading link of the Stock Connect Scheme. Stocks included in the Index must also be the constituent stocks of the Hang Seng Composite Index, with the up-to-standard turnover, HKD 5 billion or above average month-end market values of the past 12 months of any review period and fulfilling other selection criteria concerning specific categories and listing period.
Dr. Bryan Lin, Xiaohui, Chairman of Realord Group, said: "Being included into the Stock Connect Hong Kong Index Series reflects the Company has reached the requirements of market value or liquidity. It also proves that Company is qualified to become a constituent of Shenzhen-Hong Kong Stock Connect in the future. In recent years, Realord has developed a healthy and high-growth business model on the diversified opportunities in the market and has gradually gained the recognition of the capital market. We expect to show further momentum in this year to offer better returns to investors."
In addition to the update, Realord has also been included in Hang Seng Global Composite Index and the Hang Seng Composite Index Series (Hang Seng Composite Index, Hang Seng Composite MidCap & SmallCap Index, Hang Seng Composite Small Cap Index, and Hang Seng Composite Industry Index - Consumer Goods Industry and Service Index).
About Hang Seng Indexes
Hang Seng Indexes, managed by the Hang Seng Indexes Company Limited, select and represent listed companies that meet market capitalization and turnover screening requirements for a better reflection of the performance of the Hong Kong capital market. For more information on the Hang Seng Indexes, please visit
http://www.hsi.com.hk/HSI-Net/HSI-Net.
– End –
Realord Chairman Dr. Bryan Lin wishes you a Happy New Chinese New Year
Dear shareholders and friends,
The year of monkey is almost gone while the year of Rooster is arriving.
The Chinese New Year is coming. On behalf of Realord Group, I would like to express my sincere greetings and best wishes to our friends, especially for our customers and our shareholders.
Over the past year, Realord Group acted like a monkey being determined in forging ahead, being open-minded to explore, being good at getting opportunities, being brave in facing challenges, and being diligent in climbing up to the top, so that our business could be achieved in a new level!
Over the past year, our group gradually expanded. The positioning of our property development is more vivid, focusing on Longhua District in Shenzhen. To respond and support the urban renewal policy adopted by the government, the Group is now preparing the application of an owned land situated in Longhua District, Shenzhen for transformation from industrial use to building commercial apartments or offices. In addition, the Group's environmental business is also ready to make contribution, Top Eagle International Trading Limited and its subsidiary Guangxi Wuzhou Tongbao Renewable Material Co., Ltd are engaged in the scrap metal materials recycling industry. More important, Tongbao is located in Wuzhou Import Renewable Resources Processing Park where is also known as the "national city minerals", one of the key demonstration bases of materials recycling in China, and the major recycling area in southern China. In particular, the local Guangxi government actively promotes and pushes the production of the park into a hundred billion RMB scale, so we, the board of directors, are optimistic on the prospects of renewable resources recycling. When it comes to our auto parts business, we will consider to expand and to set up more shops so as to obtain more market share.
Over the past year, our group has successfully built up a friendly and strong cooperation with different enterprises in the financial field. In May, our subsidiary Realord Manureen Securities Limited become a co-promoter with Guangdong Yue Chai Investment Holdings Limited, Shenzhen Hongjin Investment Holding Limited, Baoli Property Management Company Limited, Karl-Thomson Securities Company Limited and Eternal Pearl Securities Company to set up the Joint Venture Securities Company named Yuegang Securities Limited by equity participation in Guangzhou Pilot Free Trade Zone, Nanshan area in the PRC to carry out securities businesses China. We decided to spend RMB350 million to subscribe 10% equity interests of JV company, which is conductive to our future revenue. According to the China Securities Regulatory Commission, the current application of the license has entered to a review stage. Besides, in October, we and Guangdong Huaxing Bank Shenzhen Branch have entered into a strategic cooperation framework agreement with a total size of RMB5 billion which enables us complement the strengths and resources of each other. The amount of the agreement will likely be applied in property projects, industrial projects, mergers and acquisitions, credit facilities or cross-border financing activities of the Group.
What’s more, our Group received extensive attention from the investors. Following the constituted into FTSE Russell Global Index, MSCI Hong Kong Small Cap Index in 2015, Realord Group was selected as constituent stock on Hang Seng Family of Indexes in August last year, implying that the capital market has fully affirmed our Group’s outstanding performance and its potential.
A new Lunar Chinese year is approaching, we wish you all good luck in the year of Rooster. I wish Realord Group will continue to make every success in 2017. We must firmly grasp the chances in facing the unpredictable economic situation. We must roll up our sleeves to do the best, so as to create a higher value for customers, to create more returns for our shareholders, to create greater welfares for our staff. We, Realord Group, won’t forget our original intention and the mission. We will move forward altogether so as to achieve our “Realord Dream”!
Last but not least, I wish you good health and always the best in a new year!
Best Regards,
Bryan Lin
Chairman, Realord Group Holdings Limited
Annual Dinner 2017
The Chinese New Year is arriving. To thank all the staff for their industriousness and contribution to the Company, Realord Group Holding Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) hosted a dinner for them last night. At the beginning of dinner, Group Chairamn Dr. Bryan Lin and CEO Madam Suki Su gave a toast to all employees and wished them a good health and fortune in next Chinese New Year. Apart from delicious meal and wine, lucky draw should be the most exciting part in the night. The winners were joyful and satisfactory.
Gallery:
http://www.realord.com.hk/en/news_and_media/gallery/25/
