Source: Media Outreach
Headline: Road King Announces 2017 Annual Results
Property Sales AchievedRemarkable Results
Profit for the Year IncreasedSignificantly by 80%
Optimisethe Land Reserve Portfolio in the PRC and Hong Kong
Investin Expressway Projects Located in “One Belt One Road” Countries
Audited results for the year ended 31 December
Property sales (includingjoint venture projects)(RMB million)
Profit for the period ( HK$million)
Earnings pershare ( HK$)
Dividend pershare (interimand proposed final) ( HK$)
HONG KONG, CHINA – Media OutReach – 8 March2018 – Road King Infrastructure Limited(“Road King” or the “Company”, together with itssubsidiaries the “Group”, 1098.HK),announced today its annual results forthe year ended 31 December 2017 (the “ReviewPeriod”).
During the Review Period, property sales and toll revenue of the Group(including joint venture projects) were RMB26,304 million and RMB2,661 millionrespectively, amounting to RMB28,965 million in total, representing asignificant increase of 38% as compared with 2016. The profit forthe year of 2017 was HK$2,476 million, representing an increase of HK$1,102million or approximately 80% as compared with 2016, with earnings per share ofHK$2.61. The Board has resolved to recommend a final dividend of HK$0.93 (2016:HK$0.68) per share for 2017.
In 2017, the Group achievedremarkable results in property sales by adhering to its operating strategy ofbalancing turnover and profitability. The property sales (including jointventure projects) increased to RMB26,304 million, including the contractedsales of RMB24,602 million and outstanding subscribed sales of RMB1,702million. Property sales of the Group for 2017 surged by about 40% as comparedwith 2016 and were mainly concentrated in Yangtze River Delta region(representing about 65% of the total property sales). The average selling priceper sqm was approximately RMB17,000, representing an increase of about 24% ascompared with last year.
The Group’s acquired 19 pieces ofland for residential and commercial development purpose, through listing-for-sale,equity acquisition, and cooperation in2017. Among which, 15 pieces of new land are joint venture projects. During theReview Period, the property segment’s land reserve was approximately 8.33million sqm.
In 2017, the Group received cashdistribution of HK$713 million from the toll road joint ventures, including therepayment of shareholders’ loans. The Group’s share of operating profits oftoll road joint ventures (net of income tax and withholding tax) increased fromHK$383 million in 2016 to HK$506 million in 2017, mainly attributable to thesignificant 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, LongchengExpressway and Machao Expressway, which areclose to end of the nurturing stagerecorded a strong growth in both traffic volume and toll revenue and increased profitaccordingly.
Looking ahead to 2017, Road King concluded, “As a pillarindustry, the real estate industry in the Mainland China has undoubtedlysupported economic growth, hence the Group stays optimistic in regards to itslong-term prospects. The Group will continue to optimise the land reserve portfolio in the Mainland China and Hong Kong in a cautious manner to leavesufficient land reserve for further development. In addition, The Group willcontinue to explore new property business models including property investmentfunds and property related businesses to locate stimulus for new opportunitiesand profit growth under controllable risks. As the toll road business has beenconsistently providing the Group with stable cash flow, we will continue toexplore and invest in expressway projects located in Mainland China and onebelt one road countries with reasonable returns so as to form a solidfoundation for the Group’s mid-to-long-term development.”
About Road King (HKSE stock code:1098)
Based in HongKong, Road King Infrastructure Limited (“Road King” or the“Company”) is a prominent property developer in Hong Kong and the PRC andfocuses on developing quality residential apartments at affordable prices. Theexisting 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 alsoa leading toll road investor and operator in the PRC with over 20 years ofexperience in the industry. The current toll road portfolio comprises fiveexpressways spanning 340 km in the PRC. For more information on Road King,please visit http://www.roadking.com.hk.
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