Realord Group (1196) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 28.7% to HK$428.4M, with a net loss of HK$956.5M versus a net profit of HK$41.3M in FY2023, driven by losses in continuing and discontinued operations.

• Major disposals included the Commercial Printing and Department Store segments, refocusing the Group on property, financial services, environmental protection, motor vehicle parts, and Grenada project.

Financial highlights

• Gross profit decreased to HK$152.9M (FY2023: HK$193.6M); gross margin declined due to lower segment revenues.

• Net loss of HK$956.5M, including HK$914.8M from continuing operations and HK$41.7M from discontinued operations.

• Loss on fair value changes of investment properties was HK$260.4M (FY2023: gain of HK$1,097.8M); impairment losses rose to HK$132.4M.

• Finance costs decreased to HK$699.1M (FY2023: HK$740.4M); cash and bank balances at year-end were HK$30.7M.

• Basic and diluted loss per share from continuing and discontinued operations was HK$(61.54) (FY2023: earnings of HK$5.32).

Outlook and guidance

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

• Financial Services expects stable growth in 2025, leveraging a more active Hong Kong market post-rate cuts.

• EP and MVP Segments to exercise cost control and risk management amid market uncertainties and shifting demand toward electric vehicles.

• LAC Segment to expand Grenada project and seek further opportunities in the Caribbean and Latin America.