Road King Infrastructure (1098) H1 2026 earnings summary

Executive summary

• Net loss for the first half of 2026 was HK$1,437 million, with loss attributable to shareholders at HK$1,849 million and loss per share of HK$2.47, reflecting continued challenges in the property sector and ongoing debt restructuring.

• Property sales (including joint ventures and associates) dropped 47% year-over-year to RMB2,792 million, and property delivery declined to RMB4,767 million.

• Toll revenue from Indonesian projects rose 11% to HK$971 million, with increases in both traffic volume and toll rates.

• Entered into a restructuring support agreement (RSA) with over 75% of offshore creditors by August 2026, marking progress in the offshore debt restructuring process.

Financial highlights

• Group revenue for the first half of 2026 was HK$4,452 million, up from HK$1,785 million in the prior year period.

• Gross loss was HK$602 million, with a net foreign exchange gain of HK$351 million due to RMB appreciation.

• Finance costs increased to HK$413 million, reflecting higher interest rates on defaulted notes.

• Net assets per share fell to HK$4.70 from HK$7.10 at year-end 2025.

• Equity attributable to owners fell to HK$3,520 million, and total assets declined to HK$39,082 million.

Outlook and guidance

• Mainland China property market is expected to remain in a bottoming-out phase, with core cities showing resilience but overall recovery still challenged by weak demand and high inventory.

• The Group will continue to prioritize liquidity, prudent investment, and timely property delivery, while advancing the offshore debt restructuring.

• Indonesian toll road segment expected to benefit from further toll rate adjustments and industrial activity.

• Plans to optimize and potentially dispose of Indonesian expressway assets as part of restructuring.

• Offshore debt restructuring process is ongoing, with key court hearings scheduled for October and December 2026.