Slide 1: Investor Presentation
(Incorporated in Bermuda with limited liability) Stock Code: 1098 Investor Presentation March 2019
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose. The information in this presentation is provided by Road King Infrastructure Limited (the “Company”) an
Slide 3: Agenda
Agenda Company overview 2018 key highlights Business highlights Financial overview Q&A Top Foreign-owned Property Developer in China 3
Slide 4: Road King Infrastructure Limited
Road King Infrastructure Limited Company overview Shareholding structure1 • A prominent property developer in Mainland China and Hong Kong with land reserves of approximately 8m sqm as of 2018 mainly located in the Yangtze River Delta, Bohai Rim and Greater Bay Area regions Wai Kee Holdings Limited
Slide 5: Key highlights of 2018 financial results
Key highlights of 2018 financial results Summary of results Results highlights for 2018 For the year ended Revenue 31 December % change Revenue increase was mainly due to increase in both average (HK$ m) 2018 2017 selling price and GFA delivered in 2018 Revenue of the Group 22,365 14,756 +52% Gros
Slide 6: A leading premium developer of property and toll roads
A leading premium developer of property and toll roads Business overview Property business A record high contracted sales of RMB32,134m in 2018 Progressive Mature projects with attractive profit margin at 45% in 2018 growth in Focus in Yangtze River Delta and Bohai Rim regions, with over prope
Slide 7: Key highlights of 2018 financial results
Key highlights of 2018 financial results Robust sales momentum Strong sustainable profitability Contracted sales (RMB m) Net profit for the period (HK$ m) 3,699 32,134 24,602 2,476 17,613 1,374 10,408 828 2015 2016 2017 2018 2015 2016 2017 2018 ASP (RMB/sqm) Gross profit margin 45.0% 40.1% 17,000 17
Slide 8: Property Business - Strategically located high quality land bank
Property Business - Strategically located high quality land bank Bohai Rim Region Yangtze River Delta Province No. of projects GFA (sqm) Province No. of projects GFA (sqm) Beijing 1 67,000 Shanghai 2 223,000 Tianjin 4 751,000 Jiangsu 24 3,449,000 Hebei 2 467,000 Zhejiang 4 450,000 Shandong 4 437,000
Slide 9: Property Business - Strategically located high quality land bank
Property Business - Strategically located high quality land bank New Land Acquisition1 Total Consideration Provinces Projects Attributable interest Land Area (sqm) GFA (sqm) (RMB’m) Yangtze River Delta Region Jiangsu Yuhuatai District Project 25% 34,000 100,000 2,330 Jiangsu Zhonglou District Projec
Slide 10: Toll Road Business - Substantial recurring income from toll road business
Toll Road Business - Substantial recurring income from toll road business 1 Baojin Expressway 4 Longcheng Expressway Province: Hebei Province: Shanxi Length: 105km Length: 72km Road King Interest: 40% Road King Interest: 45% 5 Machao Expressway 2 Tangjin Expressway Province: Anhui Length:36km Beijin
Slide 11: Toll Road Business - Substantial recurring income from toll road business
Toll Road Business - Substantial recurring income from toll road business Recurring cash flow stream – cash received from toll road JVs in 2018 increased 16% to HK$827m compared with 2017 which was in line with the growth in traffic revenue and the total toll revenue of the two new expressways – L
Slide 12: Toll Road Business - Recent developments
Toll Road Business - Recent developments Strategic partnership with CVC Capital Partners 75% 25% • On 2 Aug 2018, Road King agreed to the subscription by CVC Capital Partners’ Asia Belt and Road Expressway vehicle of 25% of the enlarged share capital in Road King Expressway (“RKE”) • RKE is the hold
Slide 13: Sound credit profile supported by low leverage
Sound credit profile supported by low leverage Net debt / Total equity 1 Debt breakdown by type 73% Onshore 66% Offshore bonds borrowings 36% 37% 54% 35% Offshore bank Domestic bond loans 8% 19% 2015 2016 2017 2018 Debt maturity profile (HK$ m) Unrestricted cash / ST debt Proactive liability managem
Slide 14: Income statement performance
Income statement performance Contracted sales 1 and revenue Gross profit (RMB m) 32,134 (HK$ m) 45% 24,602 40% Contracted 10,064 17,613 sales 10,408 25% 23% 5,916 2015 2016 2017 2018 (HK$ m) 22,365 4,222 16,842 2,883 Revenue 14,756 12,510 2015 2016 2017 2018 2015 2016 2017 2018 Gross profit Gross pr
Slide 15: Balance sheet structure
Balance sheet structure Total assets Total cash (HK$ m) 78,952 (HK$ m) 11,922 69,735 8,751 8,215 50,400 3,314 40,056 2015 2016 2017 2018 2015 2016 2017 2018 Total debt Total equity 1 (HK$ m) (HK$ m) 24,767 20,393 20,645 21,614 17,577 4,575 13,450 10,461 5,847 13,976 14,233 6,224 15,819 11,730 10,184
Slide 16: Segment performance
Segment performance Revenue 1 breakdown by segment Segment profit (HK$ m) 24,051 (HK$ m) 3,784 18,080 16,088 2,529 13,600 2,959 22,143 1,467 16,739 14,414 2,000 12,510 1,034 1,098 823 578 103 342 1,575 333 36 415 115 246 1,090 1,238 1,332 212 333 2015 2016 2017 2018 2015 2016 2017 1H18 Property segm
Slide 17: Q&A Session
A Developer and Operator with Sustainable and Healthy Growth Q&A Session RK Shanghai Style Phase III in RK Yanjiang Riverside in Suzhou Machao Expressway in Anhui Shanghai Top Foreign-owned Property Developer in China 17