Realord Group Announces FY2021 Annual Results
Recorded Revenue of HK$12 billion and Net Profit of HK$120 million
HONG KONG,April 1,2022 -- Realord Group Holdings Limited (the "Company",together with its subsidiaries,the "Group",stock code: 1196) is pleased to present the consolidated results of the Group for the year ended 31 December 2021. Over the period,the Group recorded a total revenue of approximately HK$1,195.1 million,representing a year-on-year growth of 37.5%; Gross profit was HK$272.8 million,representing a year-on-year increase of 35.6%; Profit and net profit for the Year was HK$115.9 million and HK$122.2 million respectively.
Earnings per share for the Year was HK 8.49 cent.
Business Review
The principal activities of the Group during the year included the Property Segment,the Financial Services Segment,the EP Segment,the MVP Segment,the Commercial Printing Segment,the Hangtag Segment,the Department Store Segment and the Caribbean Segment.
The Property Segment
Properties investment,development and commercial operation has been one of the major development strategies for the Group's overall business deployment and development goal. The Group holds three investment property projects namely Realord Villas and Zhangkengjing Property in Longhua District,and Realord Technology Park in Guangming District in Shenzhen,the PRC. The Group also holds proposed development project and properties under development namely Laiying Garden in Nanshan District and Qiankeng Property in Longhua District respectively in Shenzhen,the PRC. There are five property projects on hand as at 31 December 2021.
The revenue of the Property Segment was mainly derived from the rental income of the Group's investment properties. The Group generated rental income of approximately HK$9.9 million and a segment profit of approximately HK$792.3 million in FY2021.
The Financial Services Segment
The Financial Services Segment generated a revenue of approximately HK$142.6 million in FY2021,representing a significant increase of 73.7% from the previous year. The segment recorded a segment profit of approximately HK$45.9 million in FY2021. The growth of both revenue and segment profit of the Financial Services Segment was mainly attributable to increase in services provided to its customers,including placing services and underwriting services for certain initial public offering ("IPO") projects as well as the increase in margin interest income,margin financing services and interest from the money lending. Furthermore,the segment profit was significantly improved by the reversal of impairment losses of approximately HK$4.1 million on loan receivables in FY2021,comparing to initial recognition of impairment loss of approximately HK$20.6 million in FY2020.
The EP Segment
With the increased scale and established suppliers' network of Realord Environmental Protection Japan Co.,Ltd. ("Realord EP Japan") during FY2021,the EP Segment generated revenue of approximately HK$672.8 million,representing an increase of approximately 23.7%. The segment profit for the EP Segment in FY2021 was HK$9.4 million.
The MVP Segment
During the difficult time of COVID-19 pandemic,the Group not only maintained a stable source of supply of motor vehicle parts,but also increased its sales to major customers. The revenue of the MVP Segment increased by approximately 35.7% in FY2021 to approximately HK$216.2 million. The segment profit significantly recorded a year-on-year growth of 40% to HK$8.7 million in FY2021.
The Commercial Printing Segment
The revenue from the Commercial Printing Segment decreased to approximately HK$58.3 million in FY2021 and it recorded a segment loss of approximately HK$4.1 million.
The Hangtag Segment
The revenue of the Hangtag Segment amounted to approximately HK$0.2 million in FY2021. The segment loss derived from this segment was relatively minimal.
The Department Store Segment
The Department Store Segment generated a revenue of approximately HK$95.0 million from its operation of department stores after completed the acquisition of Sincere in May 2021. The Department Store Segment recorded a segment loss of approximately HK$19.2 million in FY2021 due to the persistence impact of COVID-19 pandemic adversely affecting performance of department store operation.
The Caribbean Segment
The principal business of the Caribbean Education Group is the development of a project ("Project") in Grenada (comprising 3 lots of land with admeasurement 450 acres situated at the Mt. Hartman area in the parish of Saint George). The Project involves the development of a mixed property project consisting educational facilities,apartments for student,residential properties,hotel and resort facilities,commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities.
Through the CBI Programme,an investment programme of Grenada,the Caribbean Education Group is authorised to raise capital from investors of the Project for funding the construction and development costs. Qualified investors of the real properties will be granted permanent Grenadian citizenship and a passport offering visa-free travel to over 153 countries including the United Kingdom,EU Schengen countries and China. Grenada also offers access for its citizens to the United States of America E2 treaty investor visa which would enable the visa holder to reside,work and study in the United States. The Project marks a significant flag of our Group into the Caribbean region.
OUTLOOK AND CORPORATE STRATEGY
The Property Segment
The Group will focus on the five properties on hand,namely,the Qiankeng Property,the Laiying Garden,the Realord Villas,the Realord Technology Park and the Zhangkengjing Property to ensure that the Group stays in a good position in this segment.
The Finance Services Segment
The Financial Services Segment of the Group is highly correlated to the debt and capital markets in Hong Kong. It is expected that the ongoing political tension between United States of America and China would push more Chinese enterprises go for listing on the Stock Exchange of Hong Kong. With the new listing regime for SPACs in Hong Kong,the Group expects its Financial Services Segment could still achieve a steady business growth in the near future. The Group is in the course of optimizing its software systems in relation to securities transaction while expanding its sales and marketing force. The Group is currently preparing to launch dark pool and U.S. stock trading systems.
The EP Segment,the Department Store Segment and the Hangtag Segment
Looking forward,amidst the market uncertainties,the Group will continue to exercise extreme cautions in the operations of the EP Segment,the Department Store Segment and the Hangtag Segment with a view to controlling operating costs,minimising the credit risk exposures,and expanding the customers base of the segments by strengthening their competitive edges among their competitors.
The Caribbean Segment
The Project presents a valuable opportunity for the Group to diversity its business and operations in the Caribbean region and enables it to expand its scale of operation overseas. Other than the Project,the Group's major operating arm for the Caribbean Segment,the Caribbean Education Group,is also in negotiation with the authorities of the Republic of Panama on a property development and power generation project to be granted under the foreign investors investment scheme of the Republic of Panama.
Following the initiative of One Belt One Road of the PRC government,the Group has further targeted five countries in the Caribbean economic zone,namely Grenada,Antigua,Saint Lucia,Saint Kitts and Dominica,as its new spheres of development. It is the corporate strategy of the Group to set up and develop new business in the arenas of (i) green energy; (ii) retail; (iii) education; and (iv) tourism in these countries.
The green energy business will encompass the government policies of the relevant countries in achieving carbon neutrality,and establishing a sustainable clean energy hub in the region. The Group plans to invest in BOT (build-operate-transfer) approved projects by the local governments. Such BOT projects include but not limited to power storage facilities,power management and grid management systems,solar power generation and application of solar power in infrastructure and buildings.
Regarding the retail business,it will be carried out in the retailing brand name of "Sincere" and will form an integral part of the property development and investment activities of the Group in the area. It is contemplated that the education sector would take the business model of the Project,in that it will combine the property development,student residence,commercial and shopping amenities and educational facilities in an overall development plan. Alongside will be the development of tourism related operations including hotels and holiday resorts and shopping complex in tourist areas.
To encourage foreign investments in to their countries,the above named Caribbean countries have long established citizenship by the CBI Programs and are well-recognised by potential investors. Grenada,Saint Kitts and Dominica were the top five countries ranked as the most popular investment destinations by CBI Programs. To this end,the Group will establish a strong team of management,marketing and sales team to promote the investment targets,with offices in Beijing,Shanghai,Shengzhen,Hong Kong,South East Asia and North America.
Mr. Lin Xiaohui,Chairman of Realord Groupsaid,"We,through multi-faceted and multi-dimensional efforts,to promote our development in the Caribbean and Latin America region,occupying strategic high ground in different countries,and actively utilising the market synergy to realise the leading position of the Group in the Caribbean and Latin American region segments,in order to maximise the return to our Shareholders and Investors."
About Reaload Group Holdings Limited
Realord Group Holdings Limited ("Realord Group) is principally engaged in the Property Segment,the MVP Segment and the Department Store Segment. In recent years,the Group has commenced the Caribbean Segment,mainly carrying out development projects in Grenada. The Project involves the development of a mixed property project consisting educational facilities,commercial development and shopping facilities and in a longer plan university establishment(s) and related amenities. The Group plans to commence property development and investment business in the Republic of Panama.
