Road King Infrastructure flags loss of up to HK$2.1 billion for the first half

Road King Infrastructure (1098) warned of a loss of up to HK$2.1 billion for the six months ended June, more than double from a year ago. 

The Hong Kong-based developer expects it to book a net loss of between HK$1.9 billion and HK$2.1 billion, representing a rise of 85 percent to 104 percent from the same period of last year. 

The loss was mainly attributable to the continuous sluggish property market and severe operating environment in the industry, which resulted in the deterioration in profit margin of the property projects in China and Hong Kong, and the increase in impairment provision for properties and related assets, it said in a filing on Monday. 

A high comparison base also played a role in the loss, Road King said, citing a HK$1.12 billion gain in the first half of 2024 for the sale of the toll road business in China, thereby offsetting partial operating losses 12 months ago. 

Excluding the net gain on disposal, the net loss for the first half of this year would be similar to that for 12 months earlier, it said. 

Road King last week suspended payment of all principal and interest falling due on all of its offshore bank debt, the notes, and perpetual securities, becoming the first local developer to default since 2021.