Press Release
For Immediate Release
/
Road King Announces 2015 Annual Results
Operating profit after taxation reached HK$1,158 Million
Gross gearing ratio reduced 6 percentage points to 96%
Financial Highlights:
Audited results for the year ended 31 December
(18 March 2015 – Hong Kong) 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 2015.
The operating profit after taxation (excluding exchange and related differences) of the Group in 2015
was HK$1,158 million. However, under the impact of RMB depreciation, an exchange loss of HK$330 million was incurred, resulting in the profit for 2015 was HK$828 million with earnings per share of HK$1.11. Property sales (including joint venture projects) for the year amounted to RMB11,649 million, representing a growth of 12% compared with 2014. The toll revenue of toll road projects for the year amounted to RMB 2,187 million, which is 14% more than that in 2014. The Board of Directors has resolved to recommend a final dividend of HK$0.35 (2014: HK$0.45) per share for 2015.
Property Business
Adhering to the steady and consistent business strategy of deeper exploitation and balancing turnover and profitability, the Group achieved remarkable results. The Group’s property sales (including joint venture projects) increased to RMB11,649 million in 2015, including the contracted sales of RMB10,408 million and outstanding subscribed sales of RMB1,241 million.
The revenue of the Group’s property business was mainly contributed by the delivery of properties in Yangtze River Delta region. The total area delivered in 2015 was 1,006,000 sqm, with an average price of approximately RMB10,300 per sqm.
For land bank replenishment, the Group acquired three pieces of land in Luoyang, Langfang and Guangzhou through listing-for-sale and subscription for trust units of an investment fund, with an aggregate floor area of 1,002,000 sqm in 2015. Two of these new projects with larger area are jointly developed with well-established PRC enterprises. As at 31 December 2015, the Group’s land reserve was approximately 5.4 million sqm and was mainly located in Yangtze River Delta region and Bohai Rim region.
Toll Road Business
In 2015, the Group received cash distribution of HK$530 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 was increased from HK$157 million in 2014 to HK$250 million in 2015. This was benefited from the increase in traffic flow and the toll income as well as a result of a course of favorable actions taken out by our expressways. The total traffic volume and toll revenue of the Group’s toll roads reached 76 million vehicles and RMB2,187 million respectively in 2015. Toll revenue from expressway projects further increased from 96% of the entire toll road portfolio in 2014 to 97% in 2015.
Going Forward
The China’s economy faces downward pressure while property industry is still an important pillar of the economy. It is expected that the Chinese government will continue the policy of maintaining stability and the Group is optimistic about the prospect of the property market. The Group will continue to adopt the strategy that maintains deeper exploitation, and balances profitability and sales volume, researching and developing market-oriented products, enhancing the value-added services of the property management services, and to continuously improve product and service quality and brand appeal. In the meantime, the Group will enhance cooperation with business partners to look for better development. The Group believes that the co-operation with well established PRC enterprises for the development of property projects would allow the Group to invest in larger size projects, share higher profits and diversify financial burden. Together with our market position and a well-developed operation team, the Group has established a solid foundation for the continuous expansion in property business. The Group believes that the toll road business would provide steady cash flows. By leveraging the experience obtained over the past two decades, the Group ensures a sustainable and stable operation and development.
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About Road King (HKSE stock code: 1098)
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 amounts to approximately HK$33 billion, comprising a land reserve of approximately 5.4 million sqm which is primary located in the Yangtze River Delta and Bohai Rim regions. 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 / Edward Siu / Vickie Yue
T: (852) 2903 9293 / 2903 9299 / 2903 9281
E: roadking@cornerstonescom.com
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