Realord Group (1196) H2 2025 earnings summary

Executive summary

• Revenue rose 29.9% year-over-year to HK$556.3 million, driven by strong growth in the Environmental Protection (EP) segment, despite declines in Property, Financial Services, and LAC segments.

• Net loss narrowed to HK$914.2 million from HK$956.5 million, with no discontinued operations loss in FY2025 versus HK$41.7 million in FY2024.

• Disposals of Commercial Printing and Department Store segments completed in 2024, refocusing on core segments.

Financial highlights

• Gross profit decreased to HK$133.4 million from HK$152.9 million year-over-year.

• Other income increased to HK$16.2 million, mainly from interest and dividend income.

• Other losses, net, were HK$146.7 million, mainly due to a HK$141.7 million foreign exchange loss (vs. HK$109.9 million gain in FY2024).

• Impairment losses fell to HK$64.7 million from HK$132.4 million.

• Net loss on fair value changes of investment properties was HK$91.1 million, down from HK$260.4 million.

• Finance costs decreased to HK$610.5 million from HK$699.1 million.

• Basic loss per share from continuing operations was HK(61.76) cents (FY2024: HK(59.28) cents).

Outlook and guidance

• Focus remains on five property projects in Shenzhen, with ongoing development and leasing activities.

• Financial Services aims for stable growth in 2026, with continued product development.

• EP segment to control costs and expand customer base amid market uncertainties.

• MVP segment to remain cost-cautious as demand for petrol vehicles declines.

• LAC segment to seek professional investors and partners for Grenada Project expansion.