For Immediate Release
Road King Announces 2017 Interim Results
Property Sales Continued to Deliver Outstanding Results
Profit for the First Six Months Ended 30 June Increased by 62% to HK$375 Million
Proactively Captures Suitable Opportunities in Hong Kong
Strengthens Toll Road Network By "Belt and Road" Initiative
Unaudited results for the year ended 30 June
|Property sales (including joint venture projects)
|Toll revenue from expressway toll road projects (RMB million)
|Profit for the period (HK$ million)
|Earnings per share (HK$)
|Interim dividend per share (HK$)
(18 August 2017 - Hong Kong) Road King Infrastructure Limited ("Road King" or the "Company", together with its subsidiaries the "Group", 1098.HK), announced today its interim results for the six months ended 30 June 2017 (the "Review Period").
During the Review Period, property sales of the Group (including joint venture projects) recorded RMB15,874 million, representing an increase of 51% as compared to the same period in 2016. The toll revenue from expressway toll road increased by 17% year-on-year to RMB1,272 million. Profit after taxation for the period ended 30 June 2017 was HK$375 million (2016: HK$232 million), representing an increase of 62% comparing to the corresponding period of last year, including the exchange gain arisen from the RMB appreciation. The Group's earnings per share was HK$0.38. The Board has proposed a inerim dividend of HK$0.15 per share (2016: HK$ 0.13).
The property market of Mainland China is thriving in the first half of 2017, together with the dedication of the management team, the property sales continued to deliver outstanding results and achieved RMB15,874 million (including joint venture projects) in the first half of 2017, representing an increase of approximately 51% comparing to the corresponding period of last year, in which the contracted sales and the outstanding subscribed sales were approximately RMB13,846 million and RMB2,028 million respectively.
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As at 30 June 2017, the Group has acquired eight pieces of land in Changzhou, Hangzhou, Jinan, Foshan and Hong Kong through listing-for-sale, equity acquisition and cooperation for residential developments as well as property development rights, with an aggregate floor area of 801,000 sqm. As at 30 June 2017, the Group's land reserve was over 7,200,000 sqm, in which the total area pre-sold but yet to be delivered was about 1,245,000 sqm.
Toll Road Business
The toll revenue and the average daily traffic volume of the expressway toll road projects reached RMB1,272 million and 220,000 vehicles in the first half of the year, representing an increase of 17% and 13% respectively as compared with the corresponding period of last year. The traffic volume of Tanjin Expressway and Baojin Expressway steadily increased in the first half of 2017. In addition, Longcheng Expressway and Machao Expressway became mature and increased rapidly in both traffic volume and toll revenue. In the first half of 2017, the Group received cash distribution from the toll road joint ventures, including the repayment of shareholder loans, which amounted to HK$390 million, representing an increase of 56% compared to the corresponding period of last year.
Looking ahead to 2017, Road King concluded, "Given that the property industry is an important pillar of the economy, the government will continue to maintain stability through its policies and implement specific austerity measures in different regions. In view of the sustaining growth of property sales in Hong Kong, the HKSAR government introduced new regulatory measures to cool down the market in the first half of 2017. Such initiatives will facilitate the healthy development of the real estate markets of China and Hong Kong in the long term, hence the Group is optimistic about the market outlooks. In this year, the Group worked separately with 平安不動產有限公司 and Shenzhen Investment Ltd and have been awarded the tender of residential development projects in Hong Kong. It will keep capturing suitable opportunities for developing the property business in Hong Kong. The toll revenue of toll road business will increase steadily with the growth of Mainland China's economy. Leveraging the experience accumulated over the past two decades, the Group's toll road business will undergo steady operation and development and continue to provide steady cash flows for the Group. In addition, with the further implementation and expansion of 'Belt and Road' initative, the Group will seize the opportunity to strengthen its toll road networks and increase operation efficiency to reward its shareholders and investors."
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About Road King (HKSE stock code: 1098)
Based in Hong Kong, Road King Infrastructure Limited ("Road King" or the "Company") is a prominent property developer in the PRC and focuses on developing quality residential apartments at affordable prices. The existing asset portfolio of property business is primary located in the Yangtze River Delta and Bohai Rim regions, comprising a land reserve of approximately 7.0 million sq.m. Road King is also a leading toll road investor and operator in the PRC with over 20 years of experience in the industry. The current toll road portfolio comprises five expressways spanning 340 km in the PRC. For more information on Road King, please visit: http://www.roadking.com.hk.
18/08/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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