Slide 1: Investor Presentation
(incorporated in Bermuda with limited liability) Stock Code: 1098 Investor Presentation March 2018
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 Business highlights Financial highlights Outlook Appendix
Slide 4: Business highlights
Business highlights 1 Achieved record high contracted sales 2 Strong and sustainable profitability 3 Strategic expansion into new surrounding cities 4 Further improvement on the performance of the existing expressways Top Foreign-owned Property Developer in China 1
Slide 5: Achieved record high contracted sales
1 Achieved record high contracted sales Contracted sales (including JV projects) increased 40% to RMB24,602mm in 2017 ASP increased by 24% respectively to RMB17,000/sqm in 2017 65% of contracted sales was derived from Yangtze River Delta and mainly from Changzhou, Shanghai and Suzhou Contracted s
Slide 6: Strong and sustainable profitability
2 Strong and sustainable profitability Profit for the year 2017 was HK$2,476 million, representing a surge of HK$1,102 million or 80% as compared with 2016 Gross profit margin was significantly increased from 25% to approximately 40% Net profit margin was also improved from 8% in 2016 to 17% to 2
Slide 7: Strategic expansion into new surrounding cities
3 Strategic expansion into new surrounding cities Continue to exploit Bohai Rim Region Replenish 1 piece of land in Tianjin and 2 pieces of land in Beijing Jinan Tianjin Hebei Jinan Greater exposure in Henan Jiangsu Guangdong - Hong Kong - Shanghai Optimize strategic planning Hubei Macao Bay Area in
Slide 8: Land reserve
Land reserve Acquired 19 pieces of land in 2017 with an aggregate floor area of 2.42 mm sqm Total land reserve increased to 8.3mm sqm in 2017 15 pieces of new land are JV projects and the Group believes that the cooperation would allow the Group to invest in scalable projects, share higher return
Slide 9: Further improvement on the performance of the existing expressways
4 Further improvement on the performance of the existing expressways Recurring cash flow stream – cash received from toll road JV in 2017 increased 23% to HK$713mm Longcheng Expressway and Machao Expressway are reaching maturity and expect to have cash contribution in 2018 Toll revenue and traffi
Slide 10: Financial Highlights
Financial Highlights (HK$mm) 2017 2016 Change Revenue 14,756 16,842 -12% Gross profit 5,916 4,222 +40% Gross profit margin 40% 25% +15% Profit for the year 2,476 1,374 +80% Profit attributable to owners of 1,944 1,250 +56% the Company Net profit margin 17% 8% +9% Basic earnings per share (HK$) 2.61
Slide 11: Balance Sheet & Key Financial Ratios
Balance Sheet & Key Financial Ratios (HK$mm) 2017 2016 Change Total assets 69,735 50,400 +38% Total cash1 8,751 8,215 +7% Total debt2 20,393 17,577 +16% Total equity 21,614 14,233 +52% Net gearing ratio3 54% 66% -12% Net debt/ Net capitalization4 35% 40% -5% Net assets per share HK$20.90 HK$17.96 +1
Slide 12: Stable leverage and diversified funding platform
Stable leverage and diversified funding platform Debt maturity profile (HK$mm) Type of borrowings Offshore Bonds Domestic Corporate Bond Offshore Bank Borrowings Onshore Borrowings 9,539 1,636 6,008 2,324 4,575 2,330 1,770 Type of currency 214 4,195 3,464 3,809 271 380 <1 year 1-2 year 2-5 year >5 y
Slide 13: Outlook
Outlook Enhance cooperation with business partners to capture better development opportunities Focus on regional exploration and capture opportunities in Hong Kong for suitable acquisitions in property market Capitalize on opportunities from “One Belt, One Road” initiative Seek new opportunities and
Slide 14: Questions & Answers
A Developer and Operator with Sustainable and Healthy Growth Questions & Answers RK Shanghai Villa in Shanghai RK Grandtown in Langfang Tianjin Expressway in Hebei Top Foreign-owned Property Developer in China 11
Slide 15: Appendix: Corporate Milestones
Appendix: Corporate Milestones Ranked 1st Foreign-owned Property Developer in China by Chinese Real Estate Research Association 2018 2017 Ranked 37th of the “Chinese Businessman Top 500” by the Chinese 2016 … Include in the Hang Seng Academy of Social Science Family of Indexes of 2013 … Shenzhen – H
Slide 16: Appendix: Shareholding structure
Appendix: Shareholding structure Wai Kee Holdings Shenzhen Investment Limited Limited Public (HK Stock Code 0610) (HK Stock Code 0604) 41.94% 27.05% 31.01% Road King Infrastructure Limited Note: 1 As of 31 December 2017 Top Foreign-owned Property Developer in China 13
Slide 17: Appendix: Our high quality expressway assets
Appendix: Our high quality expressway assets 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 Province: Anhui 2 Tangjin expressway Length:36km Beijing Province: Hebei Road King I
Slide 18: Appendix: Strategically located land bank
Appendix: Strategically located land bank Bohai Rim Region Yangtze River Delta Province No. of projects GFA Province No. of projects GFA Beijing 1 80,000 Shanghai 3 319,000 Tianjin 3 766,000 Jiangsu 20 3,489,000 Hebei 2 593,000 Shandong 4 414,000 Zhejiang 4 450,000 Total 10 1,853,000 Total 27 4,258,