Road King Infrastructure Limited · HKEX:1098
Road King Infrastructure — FY2019 Earnings Presentation
23 slides from Road King Infrastructure's earnings presentation, Mar 27, 2020
Slide 1: Investor Presentation
(Incorporated in Bermuda with limited liability) Stock Code: 1098 Investor Presentation March 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 and business overview Company highlights 2019 Financial highlights Recent developments Q&A Top Foreign-owned Property Developer in China 3
Slide 4: Agenda
Agenda Company and business overview Company highlights 2019 Financial highlights Recent developments Q&A Top Foreign-owned Property Developer in China 4
Slide 5: Road King Infrastructure Limited
Road King Infrastructure Limited Company overview Shareholding structure (as at 31 Dec 19) • A prominent property developer in Mainland China and Hong Kong with land reserves of 7.35m sqm as of December 2019 mainly located in the Wai Kee Holdings Limited Shenzhen Investment Limited (SEHK-0610) (SEHK
Slide 6: Agenda
Agenda Company and business overview Company highlights 2019 Financial highlights Recent developments Q&A Top Foreign-owned Property Developer in China 6
Slide 7: A leading premium developer of property and toll roads
A leading premium developer of property and toll roads Company Highlights Property business A record high contracted sales of RMB38,691m in 2019 (20.4% Progressive increase from 2018) growth in Maintain attractive profit margin at 35% in 2019 property business Focus in Yangtze River Delta and
Slide 8: Agenda
Agenda Company and business overview Company highlights 2019 Financial highlights Recent developments Q&A Top Foreign-owned Property Developer in China 8
Slide 9: Key highlights of 2019 financial results
1 Key highlights of 2019 financial results Summary of results Results highlights for 2019 Revenue For the year ended Total revenue2 has increased to HK$31,168m, representing 31 December % change (HK$ m) 2019 2018 15% increase as compared to 2018 Revenue 21,495 22,365 -4% Gross profit 7,509 10,064
Slide 10: Key highlights of 2019 financial results
1 Key highlights of 2019 financial results Robust sales momentum Proven execution ability in property delivery Contracted sales (RMB m) Property delivery (including JVs and associate projects) (RMB m) ASP for property development business (RMB/sqm) Net profit for the period (HK$ m) 3,699 3,677 2,476
Slide 11: Income statement performance
2 Income statement performance Contracted sales 1 and revenue Gross profit (RMB m) (HK$ m) Contracted sales (HK$ m) 22,365 21,495 Revenue 16,842 14,756 12,510 2015 2016 2017 2018 2019 Adjusted EBITDA Net profit attributable to owners of the company (HK$ m) (HK$ m) 17% 17% 17% 2,988 3,028 8% 1,944 7%
Slide 12: Balance sheet structure
3 Balance sheet structure Total assets Total cash (HK$ m) (HK$ m) 15,173 11,922 8,751 8,215 3,314 2015 2016 2017 2018 2019 Total debt Total equity1 (HK$ m) (HK$ m) Note: 1 Total equity includes perpetual capital securities Top Foreign-owned Property Developer in China 12
Slide 13: Segment performance
4 Segment performance Revenue 1 breakdown by segment Segment profit (HK$ m) (HK$ m) Segment assets (HK$ m) •Property segment remains the largest segment of the Group •83% of the profit and 84% of the assets contributed by property segment •17% of the profit and 7% of the assets contributed by toll r
Slide 14: Sound credit profile supported by low leverage
5 Sound credit profile supported by low leverage Net debt / Total equity 1 Debt breakdown by type 2 Debt maturity profile 2 (HK$ m) Unrestricted cash 3 / ST debt Total borrowings: HK$30,141m Notes: 1 Total equity includes perpetual capital securities; 2 As of 30 Jun 2019; 3 Bank balances and cash ex
Slide 15: Agenda
Agenda Company and business overview Company highlights 2019 Financial highlights Recent developments Q&A Top Foreign-owned Property Developer in China 15
Slide 16: Strategically located high quality land bank
1 Strategically located high quality land bank The group has acquired 15 pieces of land with an aggregate floor are of 1.49m sqm in 2019 and land reserve was about 7.35m sqm as at 31 December 2019 The property segment acquired 14 pieces of land for residential purpose, through listing-for-sale a
Slide 17: Strategically located high quality land bank
1 Strategically located high quality land bank New Land Acquisition in 2019 Total Attributabl Consideration Provinces/ City Projects e interest Land Area (sqm) GFA (sqm) (RMB’m) Yangtze River Delta Region 1) Shanghai RK Shanghai Style+ 52.5% 36,000 61,000 1,034 2) Shanghai Waigang Project 65% 46,000
Slide 18: Strategically located high quality land bank
1 Strategically located high quality land bank Total GFA: 7,350,000 sqm 2019 new acquired GFA: 1,485,000 sqm Bohai Rim Region Yangtze River Delta Province No. of projects GFA (sqm) Province No. of projects GFA (sqm) Beijing 2 120,000 Shanghai 3 261,000 Tianjin 4 795,000 Jiangsu 24 2,922,000 Hebei 3
Slide 19: Substantial recurring income from toll road business
2 Substantial recurring income from toll road business China Indonesia Longcheng Baojin 4 1 Expressway Expressway Machao 5 Expressway Beijing Tangjin 6 JNKK: Concession rights to 2 2 Expressway Ngawi-Kertosono toll road Xi’an 1 4 Anhui Yangtze River Economic Zone Changyi Central Java 5 3 Bohai Rim E
Slide 20: Substantial recurring income from toll road business
2 Substantial recurring income from toll road business Recurring cash flow stream – cash received from toll road JVs in 2019 was HK$689m Total traffic volume in Mainland China reached 95m vehicles and the toll revenue reached RMB3,162m, representing an increase of 3% as compared to 2018 The to
Slide 21: Completion of acquisition of 40% interest in two Indonesian toll roads
2 Completion of acquisition of 40% interest in two Indonesian toll roads Toll roads are part of the Trans-Java expressway network connecting key cities such as Jakarta to Surabaya JSN: Concession rights to Solo-Ngawi toll road Jepara • Total length of 91km Rembang Provincial capital of Central Java
Slide 22: Impact of COVID-19
3 Impact of COVID - 19 Office (including home office) recommenced in early February 2020 for the preparation work Property development business • Substantial construction sites and sales offices have resumed to work in early March 2020 • The progress of 2020 property delivery is being closely monito
Slide 23: 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 23
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