Realord Group (1196) investor relations material

Executive summary

• Revenue increased by 6.4% year-over-year to HK$277.1 million for the six months ended 30 June 2025, mainly driven by the Environmental Protection (EP) segment.

• Net loss from continuing operations narrowed to HK$496.2 million from HK$551.0 million year-over-year, reflecting lower impairment losses and reduced loss on fair value changes of investment properties.

• Discontinued operations (Commercial Printing and Department Store segments) contributed a loss of HK$32.3 million in the prior period.

Financial highlights

• Gross profit decreased to HK$64.8 million from HK$83.0 million year-over-year due to lower revenue in Property, Financial Services, and LAC segments.

• Other income was HK$6.8 million, mainly from interest income on credit-impaired loans and bank interest.

• Other losses, net, were HK$90.1 million, primarily due to a HK$91.5 million net foreign exchange loss.

• Impairment losses were HK$54.8 million, down from HK$81.1 million year-over-year.

• Loss on fair value changes of investment properties was HK$54.2 million, significantly lower than HK$211.7 million in the prior year.

• Finance costs decreased to HK$296.0 million from HK$363.8 million, mainly due to lower interest rates on RMB borrowings.

• Basic and diluted loss per share from continuing and discontinued operations was HK cents 33.251 (2024: 35.776).

Outlook and guidance

• The Property segment will focus on five ongoing projects in Shenzhen, with continued development and leasing activities.

• Financial Services segment aims for stable growth in the second half of 2025 by developing new investment products.

• EP segment will focus on cost control, credit risk management, and customer base expansion in China and Japan.

• MVP segment will remain cost cautious amid declining demand for petrol vehicles and the rise of electric vehicles.

• LAC segment will leverage the Grenada Project to expand in the Caribbean and Latin American regions, seeking joint ventures and new investment opportunities.