Road King Infrastructure (1098) H1 2025 earnings summary

Executive summary

• Recorded a net loss of HK$1,590 million for H1 2025, with loss attributable to shareholders at HK$2,034 million and loss per share of HK$2.71.

• Revenue dropped to HK$1,785 million, down 49% year-over-year, mainly due to a 28% decline in property sales and a 4% decrease in Indonesian toll revenue.

• No interim dividend declared for the period.

• Auditor issued a disclaimer of conclusion due to significant going concern uncertainties following suspension of offshore debt payments.

• Property sales (including JV/associates) fell to RMB5,232 million, down 28% year-over-year; property delivery was RMB6,367 million.

Financial highlights

• Gross loss widened to HK$696 million from HK$364 million in H1 2024.

• Net assets per share dropped to HK$12.25 from HK$14.43 at end-2024.

• Net gearing ratio increased to 63% from 55% at year-end 2024.

• Bank balances and cash decreased to HK$3,084 million from HK$4,274 million at end-2024.

• Total assets at HK$53,329 million, down from HK$57,513 million at end-2024.

Outlook and guidance

• Real estate market in Mainland China expected to remain challenging with continued policy support but slow recovery.

• Group to remain cautious in land acquisition and investment, focusing on liquidity, debt management, and cash flow control.

• Further policy measures and improved financing environment anticipated, but full recovery depends on income growth and debt resolution.

• Plans to optimize Indonesian expressway business and proceed with asset sales.

• Proactive engagement with creditors to seek holistic offshore debt solutions.