Road King Infrastructure (1098) H2 2025 earnings summary

Executive summary

• Recorded a net loss attributable to shareholders of HK$5,982 million for 2025, with a basic loss per share of HK$7.98, deepening from HK$4,122 million loss in 2024.

• Revenue declined to HK$5,322 million from HK$5,537 million year-over-year, with property sales and deliveries dropping sharply by 41% and 63% respectively.

• Toll revenue from Indonesian expressway projects fell 4% to HK$1,695 million, mainly due to currency depreciation.

• Auditor issued a disclaimer of opinion due to material uncertainties over going concern, triggered by debt defaults and ongoing restructuring.

Financial highlights

• Gross loss widened to HK$2,347 million from HK$1,390 million year-over-year.

• Other gains and losses included impairment losses, fair value losses, and a net exchange gain of HK$133 million.

• No dividends declared for 2025.

• Net assets per share dropped to HK$7.10 from HK$14.43.

Outlook and guidance

• Management expects continued challenges in Mainland China's real estate market, with further contraction in transaction volumes and persistent divergence between city tiers.

• Focus remains on offshore debt restructuring, prudent investment, and cash flow control.

• Indonesian toll road segment expects growth in traffic and tariff increases in 2026.