Realord Group gains $892m profit in 2020 after suffering 2019 loss

It has recorded a net gain in its property segments upon revaluation of the Qiankeng property.

Realord Group Holdings Limited posted a net profit of $892m in 2020 after recording a $404m profit loss in the previous year.

The profit attributable to the shareholders amounted to $885.2m, whilst its total revenue for the year was $869.3m.

“The group remains cautiously optimistic towards the post-pandemic rebound as a result of new and stronger initiatives to combat COVID-19 pandemic such as the emergence of vaccines and more stringent controlling measures carried out in different countries,” said Bryan Lin, Xiaohui, chairman of Realord Group.

He added the group expects there will be ample development opportunities for its business segments despite uncertainties due to the pandemic and the tension between China and the United States.

The group linked the “significant improvement” of their 2020 performance to the net gain in their investment properties that reached $2.46b during the year.

This was driven by the appreciation in value of Realord Group’s properties in Qiankeng Industrial Zone, Longhua District, Shenzhen.

Revenue in the property segment increased 3% YOY to $10.9m whilst the segment profit posted $2.05b, increasing 28 times from $73.3m in 2019. This was due to the overall revaluation of its investment properties, amounting to $2.46b.

Under its property segment, Realord plans to complete its Realord Villas renovation project in the third quarter. The project has so far included renowned supermarket, chained convenience store, restaurants amongst the signed tenants.

Realord has also been selected as the market developer for the Laiying Graden – Urban Renewal Project.

Further, the group generated $82.1m in financial services revenue, doubling its 2019 earnings of $40.9m. The segment, which is also the company’s major growth driver, recorded an operating profit of $1.6m.

Realord Asia Pacific Securities Limited participated in 10 IPO projects and nine internation placing projects.

Its environment segment made $544.1m revenue and some $159.3m in its motor vehicle parts segment, $72.7m in commercial printing segment, and 0.2m in Hangtag segment.