Road King Infrastructure Limited · HKEX:1098
Road King Infrastructure — H1 2020 Earnings Presentation
46 slides from Road King Infrastructure's earnings presentation, August 2020
Slide 1: Investor Presentation
(Incorporated in Bermuda with limited liability) Stock Code: 1098 Investor Presentation August 2020
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 Recent developments Investment highlights Q&A Top Foreign-owned Property Developer in China 6
Slide 4: Company overview
Company overview Company description Shareholding structure (as at 30 June 2020) • A prominent property developer in Mainland China and Hong Kong with land reserves of 7.0m sqm as of 1H2020 mainly Wai Kee Holdings Limited Shenzhen Investment Limited Other public located in the Yangtze River Delta, B
Slide 5: 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 RMB42,765m in 2019 and RMB20,450m in 1H2020 Progressive ✓ Mature projects with attractive profit margin at growth in 32% in 1H2020 property ✓ Focus in Yangtze River Delta, B
Slide 6: 1H2020 financial highlights
1H2020 financial highlights Group Revenue Property Delivery ASP for Contracted Sales HK$8,184m RMB11,694m RMB20,000/sqm 19% from 39% from 3% from 1H2019 1H2019 1H2019 Equity attributable to Cash Total Asset owners of the Company HK$14,983m HK$94,805m HK$18,325m 19% from 39% from 5% from 1H2019 1H201
Slide 7: Key highlights of 1H2020 financial results
Key highlights of 1H2020 financial results (HK$ m) 1H2020 1H2019 % change Revenue Revenue 8,184 6,856 +19% ✓ Increase in revenue mainly due to increase in delivery area while ASP remained similar to last year at Gross profit 2,593 2,727 -5% RMB20,000 Gross profit margin 32% 40% -8 p.p. ✓ Gross profi
Slide 8: COVID-19's impacts on the property business
COVID-19’s impacts on the property business ✓ The real estate market in Mainland China was hit hard due to the outbreak Property sales (including joint venture and associate projects) of the pandemic at the beginning of the year, and then gradually improved (RMB m) in the second quarter following th
Slide 9: COVID-19's impacts on the toll road business
COVID-19’s impacts on the toll road business Overview of COVID-19’s impacts on toll road business Average daily traffic volume of expressways (vehicles) 264,442 268,409 ✓ On 16 February 2020, the PRC government announced to 258,801 259,956 waive all toll roads’ toll across the country until the pand
Slide 10: Outlook
Outlook Remain positive in the PRC property market Seek to replenish the land bank in existing cities and will continue to look for opportunities in Hong Kong Resume toll collection for PRC expressways and expect to continue to look for investment opportunities for expressways in China and Indonesia
Slide 11: Investment highlights
Investment highlights 1 Strategically located high quality land bank 2 Recurring income from toll road business 3 Sound credit profile supported by low leverage 4 Experienced and stable management team 5 Well-diversified business model to drive future growth Top Foreign-owned Property Developer in C
Slide 12: Strategically located high quality land bank
1 Strategically located high quality land bank Total GFA: 7,010,000 sqm 1H2020 new acquired GFA: 316,000 sqm Bohai Rim Region Yangtze River Delta Province No. of projects GFA (sqm) Province No. of projects GFA (sqm) Beijing 3 194,000 Shanghai 3 249,000 Tianjin 4 639,000 Jiangsu 23 2,905,000 Hebei 2
Slide 13: Strategically located high quality land bank
1 Strategically located high quality land bank 1H2020 land bank by region ✓ The Group has acquired 4 pieces of land with an aggregate floor Others area of 316,000 sqm in 1H2020 20% ✓ In July 2020, the Group has further acquired 4 pieces of land with an aggregate floor area of 438,000 sqm Greater Bay
Slide 14: Recurring income from the toll road business
2 Recurring income from the toll road business China Indonesia Longcheng Baojin 4 1 Expressway Expressway Machao 5 Expressway Beijing 6 JNKK: Concession Tangjin rights to Ngawi- 2 Expressway 2 Kertosono Xi’an 1 toll road 4 Anhui Yangtze River Economic Zone 5 Changyi Central Java Chongqing 3 Expressw
Slide 15: Recurring income from the toll road business
2 Recurring income from the toll road business ✓ Due to outbreak of COVID-19, the PRC government has announced an extension of the toll-free period during the Chinese New Year holidays for another 9 days and a collection of toll fees on all toll roads in Mainland China shall be exempted for 79 conse
Slide 16: Sound credit profile supported by low leverage
3 Sound credit profile supported by low leverage ✓ The total borrowings and gearings increased due to the issuance of a US$300m 5-year senior notes at 5.9% in 1H2020 ✓ Increased in short-term borrowings as a US$400m senior notes and a club loan will be matured in 1H2021 ✓ Remain prudent on cash mana
Slide 17: Experienced and stable management team
4 Experienced and stable management team Mr. Zen Wei Pao, William Mr. Zen Wei Peu, Derek Co-Chairman1 Co-Chairman • Chairman of the Company since establishment and Co-Chairman of • Director since establishment and Co-Chairman of the Company since the Company since May 2017 May 2017 • Member of both
Slide 18: Well-diversified business model to drive future growth
5 Well-diversified business model to drive future growth Property development ✓ Development of properties for sale and compliment by rental income potential and/or The various and capital appreciation operating investment segments will drive future growth Toll road ✓ Operation and management of toll
Slide 19: A Developer and Operator with Sustainable and Healthy Growth
A Developer and Operator with Sustainable and Healthy Growth RK Shanghai Style Phase III RK Yanjiang Riverside Machao Expressway in Shanghai in Suzhou in Anhui Top Foreign-owned Property Developer in China 22
Slide 20: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region P1 RK Sheshan Villa • Dongyuan Floor area (sqm) 124,000 Nature Residential and Stage of P/S/C Land area (sqm) 122,000 commercial completion (note) Approximate 100% Target completion 2024 Location East to Kungang Hi
Slide 21: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P4 RK City (Zhenjiang) Floor area (sqm) 290,000 Nature Residential Stage of P/F/S/C Land area (sqm) 257,000 completion (note) Approximate 100% Target completion 2023 Location South of Yihou Road and West o
Slide 22: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P7 RK Taihu Lake Yard Floor area (sqm) 136,000 Nature Residential Stage of F/S/C Land area (sqm) 208,000 completion (note) Approximate 90% Target completion 2021 Location West of Fengyuan Bei Road, South o
Slide 23: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P10 Guo Shi Jiu Li Floor area (sqm) 113,000 Nature Residential Stage of S Land area (sqm) 61,000 completion (note) Approximate 50% Target completion 2020 Location West of Chechang Road, South of Qingtan We
Slide 24: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P13 Time Boutique Floor area (sqm) 151,000 Nature Residential Stage of F/S Land area (sqm) 77,000 completion (note) Approximate 51% Target completion 2021 Location Southeast side of the intersection of Xid
Slide 25: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P16 New Lake New City Floor area (sqm) 237,000 Nature Residential Stage of S/C Land area (sqm) 173,000 completion (note) Approximate 33% Target completion 2021 Location North of Kuaixiang Avenue, East of X
Slide 26: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P19 RK Jade Shores (formerly known as Xiangcheng District Project) Floor area (sqm) 155,000 Nature Residential Stage of F Land area (sqm) 79,000 completion (note) Approximate 51% Target completion 2022 Loc
Slide 27: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Yangtze River Delta Region (cont’d) P22 RK Haiyi Cuiting (formerly known as Chongxian C4 Project) Floor area (sqm) 75,000 Nature Residential Stage of F Land area (sqm) 36,000 completion (note) Approximate 49% Target completion 2022 Location
Slide 28: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Bohai Rim Region P25 RK Yunhe Shangyuan Floor area (sqm) 57,000 Nature Residential Stage of S Land area (sqm) 33,000 completion (note) Approximate 100% Target completion 2021 Location Ligezhuang Road, Miyun District, Beijing, the PRC attribu
Slide 29: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Bohai Rim Region (cont’d) P28 Joy Meaningful Residence Floor area (sqm) 163,000 Nature Residential Stage of F/S Land area (sqm) 109,000 completion (note) Approximate 50% Target completion 2021 Location East of Huangzhuang Street and Quanshan
Slide 30: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Bohai Rim Region (cont’d) P31 Guan Project Floor area (sqm) 75,000 Nature Residential and Stage of C Land area (sqm) 200,000 commercial completion (note) Approximate 45% Target completion Completed Location West of Neinanchen Village and Eas
Slide 31: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Bohai Rim Region (cont’d) P34 Noble Mansion of Glory Floor area (sqm) 60,000 Nature Residential Stage of S Land area (sqm) 21,000 completion (note) Approximate 50% Target completion 2021 Location South of Xinggang Road, Lixia District, Jinan
Slide 32: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Guangdong – Hong Kong – Macao Bay Area P36 RK Mont Panorama (Guangzhou) Floor area (sqm) 36,000 Nature Residential Stage of C Land area (sqm) 90,000 completion (note) Approximate 51% Target completion Completed Location Baohua Road, Huadu Di
Slide 33: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Guangdong – Hong Kong – Macao Bay Area (cont’d) P39 RK Rivage Panorama Floor area (sqm) 51,000 Nature Residential Stage of S Land area (sqm) 22,000 completion (note) Approximate 100% Target completion 2021 Location No. 27 of Rongqi Avenue Ea
Slide 34: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Guangdong – Hong Kong – Macao Bay Area (cont’d) and other regions P42 So Kwun Wat Project Floor area (sqm) 40,000 Nature Residential Stage of F Land area (sqm) 12,000 completion (note) Approximate 50% Target completion 2023 Location Tuen Mun
Slide 35: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Other Regions (cont’d) P45 Joyful Park (formerly known as Economic Development Zone Project) Floor area (sqm) 82,000 Nature Residential Stage of S Land area (sqm) 24,000 completion (note) Approximate 49.9% Target completion 2022 Location Nor
Slide 36: Appendix: Major projects information – Properties for sale
Appendix: Major projects information – Properties for sale Other Regions (cont’d) P48 RK Leader of Life (Luoyang) Floor area (sqm) 54,000 Nature Residential Stage of P Land area (sqm) 54,000 completion (note) Approximate 100% Target completion 2022 Location Southwest of the junction of Yanhuang Road
Slide 37: Appendix: Major projects information – Investment properties
Appendix: Major projects information – Investment properties Yangtze River Delta Region P49 RK Grand Metropolis (Changzhou) Floor area (sqm) 113,000 Nature Commercial Stage of C Land area (sqm) 67,000 completion (note) Approximate 100% Target completion Completed Location No. 33, Huayuan Street, Wuj
Slide 38: Appendix: Major projects information – Investment properties
Appendix: Major projects information – Investment properties Yangtze River Delta Region (cont’d) P51 Meili Ancient Town Floor area (sqm) 53,000 Nature Commercial Stage of C Land area (sqm) 54,000 completion (note) Approximate 60% Target completion Completed Location Southeast of Xinhua Road and Taib
Slide 39: Appendix: Major projects information – Investment properties
Appendix: Major projects information – Investment properties Bohai Rim Region and other regions P52 RK World Plaza Floor area (sqm) 63,000 Nature Commercial Stage of C Land area (sqm) 22,000 completion (note) Approximate 100% Target completion Completed Location West to Heying Road, East to Heying X
Slide 40: Appendix: Major projects information – New projects
Appendix: Major projects information – New projects acquired in 1H2020 Yangtze River Delta Region P54 RK City Boyue (formerly known as Wujin District Project) Floor area (sqm) 62,000 Nature Residential Stage of P Land area (sqm) 40,000 completion (note) Approximate 100% Target completion 2021 Locati
Slide 41: Appendix: Major projects information – New projects
Appendix: Major projects information – New projects acquired in 1H2020 Bohai Rim Region P57 Daxing District Project Floor area (sqm) 74,000 Nature Residential Stage of P Land area (sqm) 77,000 completion (note) Approximate 100% Target completion 2021 Location East to Xigangtou, South to Chaze Street
Slide 42: Appendix: Major projects information – New projects
Appendix: Major projects information – New projects acquired in 2H2020 and up to the date of this presentation Yangtze River Delta Region (con’t) P58 Juyuan Project Floor area (sqm) 130,000 Nature Residential and Stage of P Land area (sqm) 61,000 Commercial completion (note) Approximate 75% Target c
Slide 43: Appendix: Major projects information – New projects
Appendix: Major projects information – New projects acquired in 2H2020 and up to the date of this presentation Yangtze River Delta Region (con’t) and Bohai Rim Region P61 Xihu Project Floor area (sqm) 23,000 Nature Residential and Stage of P Land area (sqm) 22,000 Commercial completion (note) Approx
Slide 44: Appendix: Toll road projects
Appendix: Toll road projects T1 Baojin Expressway Location Hebei Province Length 105 km Equity interest 40% Route National Expressway G18 Baoding-Tianjin Road Rise Investments Limited ~ 4-lane . T2 Tangjin Expressway Location Hebei Province Length 58 km Equity interest 45% Route National Expressway
Slide 45: Appendix: Toll road projects (cont'd)
Appendix: Toll road projects (cont’d) T4 Longcheng Expressway Location Shanxi Province Length 72 km Equity interest 45% Route Provincial Expressway S60 Yuci Longbai Village- Intersafe Investments Limited Chengzhao, Qixian ~ 6-lane T5 Machao Expressway Location Anhui Province Length 36 km Equity inte
Slide 46: Appendix: Toll road projects (cont'd)
Appendix: Toll road projects (cont’d) T7 Ngawi Kertosono Kediri Expressway Location East Java, Indonesia Length 115 km Equity interest 40% Route Trans Java Expressway Ngawi Kertosono Kediri ~ Kings Key Limited 4-lane . Source: Company filings Top Foreign-owned Property Developer in China 49
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