Hall of Shame


Realord Group (1196 HK)

Year: 2019

Realord Group Holdings Limited is a Hong Kong conglomerate that is principally engaged in financial services, property development, distribution and sales of auto parts, commercial printing, and hangtag production across mainland China and Hong Kong.   

It listed on the Hong Kong stock exchange, as Cheong Ming Holdings Ltd., in January 1997 raising HK$80M.  In June 2000, it was renamed to Sega.com Asia Limited, then to Cheong Ming Investments Limited in May 2001.  A further share offer in January 2004 raised HK$18.4M.   It became Realord Goup Holdings in August 2014.   

On August 21, 2019, shortsellers, Emerson Analytics, released a report "Realord Group – Real Lord of the Lies".  The report covered 5 main areas ;
  1. Realord Group Checks the Box of Financial Fraud 
  2. Guanlan and Guangming Properties: Absurd Valuation
  3. Guanlan and Guangming Properties: Not Generating Cashflow
  4. Revenue of Core Operations Way Below Claims
  5. Dwindling Revenue and Unbearable Burden of Interest ; Net Asset Value is Negative $3,196m

In conclusion Emersons state "There is no doubt Realord Group's financial statements are seriously fraudulent, to the extent that there is simply no need for a valuation analysis. As none of the company's various divisions is able to generate any meaningful revenue, Realord Group cannot possibly sustain its interest payments. Having ripped the minority shareholders off, is Lin able to rescue Realord Group? We rather suspect the only fate awaiting the company is bankruptcy."

August  28, 2019, Emerson released a second article "Is Guangzhou Rural Commercial Bank the "Stupid" Lender?"  This was following the clarification announcement of Realord Group, published on 26 August, in response to the first report.  In the report, it questoned the relationship between the Bank and Realord. It stated that the Chinese Communist Party Guangzhou Metropolitan Commission for Discipline Inspection had announced that it was investigating Wang Jikang, who resigned July 21 as chairman of the bank.   It finished saying "Deloitte should resign in the near future, and regulators especially SFC are likely to act soon.

Sep. 11, 2019  Realord responded and in conclusion said "The Company considers the allegations and speculations made by Emerson in the articles are all groundless and misleading. The Board urges Shareholders and potential investors to exercise extreme caution when using the information contained in the articles."

Jan 14, 2020 - Deloittes resign as Auditors.

Emerson Analytics: Realord Group – Real Lord of the Lies, 21 Aug 2019 
Emerson Analytics: Is Guangzhou Rural Commercial Bank the "Stupid" Lender?, 26 Aug 2019
Market Screener: Realord - Second Clarification Announcement, 11 Sep 2019
Realord Group: Deloittes Resignation, 15 Jan 2019
Realord Group:  Interm Report 2019
Realord Group:  Annual Report 2018
Realord Group:  Annual Report 2017
HKEX: Realord Group Filings


Company From To
Ernst & Young 7-Jan-97 25-Nov-03
JBPB 15-Dec-03 24-Nov-10
BDO 24-Nov-10 7-Jul-15
Ernst & Young 7-Jul-15 10-Jul-17
Deloitte 10-Jul-17 14-Jan-20
Grant Thornton 15-Jan-20 -


(IPO - Initial Public Offering, ASO - Additional Share offerings)

Type Date Role Party
ASO-1 2-Jan-04 Lead Manager(s) VC CEF Capital
IPO 20-Jan-97 Co-Manager(s) Asia Financial Securities
IPO 20-Jan-97 Co-Manager(s) Somerley International
IPO 20-Jan-97 Lead Manager Lippo Securities
IPO 20-Jan-97 Lead Manager(s) Lippo Securities Tbk PT


(CAC/MAC Chairman / Member Audit Committee - NC Nomination /Governance Comm. - CC Compensation/Remuneration Committee)

Type Name Role From To
Executive Lin Xiao Dong 30-Jun-14 -
Executive Su Jiao Hua CEO 30-Jun-14 18-Jul-14
Executive Lin Xiao Hui Chairman, MCC, CNC 18-Jul-14 -
Independent Yu Leung Fai CAC, MCC, MNC 30-Jun-14 -
Independent Li Jue MAC, CCC 30-Jun-14 -
Independent Fang Ji Xin MAC, MNC 30-Jun-14 -
Senior Management Chan Chu Kin CFO, Company Secretary 12-Sep-17 10-Oct-21