|Thursday, 8 March 2018, 22:30 HKT/SGT|
Source: Road King
|Property Sales Achieved Remarkable Results|
Profit for the Year Increased Significantly by 80%
Optimise the Land Reserve Portfolio in the PRC and Hong Kong
Invest in Expressway Projects Located in "One Belt One Road" Countries
HONG KONG, Mar 8, 2018 - (Media OutReach) - Road King Infrastructure Limited ("Road King" or the "Company", together with its subsidiaries the "Group", 1098.HK), announced today its annual results for the year ended 31 December 2017 (the "Review Period").
During the Review Period, property sales and toll revenue of the Group (including joint venture projects) were RMB26,304 million and RMB2,661 million respectively, amounting to RMB28,965 million in total, representing a significant increase of 38% as compared with 2016. The profit for the year of 2017 was HK$2,476 million, representing an increase of HK$1,102 million or approximately 80% as compared with 2016, with earnings per share of HK$2.61. The Board has resolved to recommend a final dividend of HK$0.78 (2016: HK$0.55) per share for 2017.
In 2017, the Group achieved remarkable results in property sales by adhering to its operating strategy of balancing turnover and profitability. The property sales (including joint venture projects) increased to RMB26,304 million, including the contracted sales of RMB24,602 million and outstanding subscribed sales of RMB1,702 million. Property sales of the Group for 2017 surged by about 40% as compared with 2016 and were mainly concentrated in Yangtze River Delta region (representing about 65% of the total property sales). The average selling price per sqm was approximately RMB17,000, representing an increase of about 24% as compared with last year.
The Group's acquired 19 pieces of land for residential and commercial development purpose, through listing-for-sale, equity acquisition, and cooperation in 2017. Among which, 15 pieces of new land are joint venture projects. During the Review Period, the property segment's land reserve was approximately 8.33 million sqm.
Toll Road Business
In 2017, the Group received cash distribution of HK$713 million from the toll road joint ventures, including the repayment of shareholders' loans. The Group's share of operating profits of toll road joint ventures (net of income tax and withholding tax) increased from HK$383 million in 2016 to HK$506 million in 2017, mainly attributable to the significant growth in the toll revenue of both Tangjin Expressway and Baojin Expressway. They recorded an impressive rise in traffic volume for the year. In addition, Longcheng Expressway and Machao Expressway, which are close to end of the nurturing stage recorded a strong growth in both traffic volume and toll revenue and increased profit accordingly.
Looking ahead to 2017, Road King concluded, "As a pillar industry, the real estate industry in the Mainland China has undoubtedly supported economic growth, hence the Group stays optimistic in regards to its long-term prospects. The Group will continue to optimise the land reserve portfolio in the Mainland China and Hong Kong in a cautious manner to leave sufficient land reserve for further development. In addition, The Group will continue to explore new property business models including property investment funds and property related businesses to locate stimulus for new opportunities and profit growth under controllable risks. As the toll road business has been consistently providing the Group with stable cash flow, we will continue to explore and invest in expressway projects located in Mainland China and one belt one road countries with reasonable returns so as to form a solid foundation for the Group's mid-to-long-term development."
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 Hong Kong and the PRC and focuses on developing quality residential apartments at affordable prices. The existing asset portfolio of property business is primarily located in the Yangtze River Delta and Bohai Rim regions, comprising a land reserve of approximately 8.3 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.
Issued by Cornerstones Communications Ltd. on behalf of Road King Infrastructure Limited. For further information, please contact:
Cornerstones Communications Limited
Kylie Yeung / Sam Choi / Cham Chen / Sharon Kowk
T: (852) 2903 9293 / 2903 9289 / 2903 9299 / 2903 9288
F: (852) 2887 1712
Mar 8, 2018 22:30 HKT/SGT
Topic: Press release summary
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