Road King Infrastructure ( (RKGXF) ) has released its Q2 earnings. Here is a breakdown of the information Road King Infrastructure presented to its investors.
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Road King Infrastructure Limited, a company engaged in property development and investment, as well as toll road operations, has reported its interim financial results for the first half of 2025. The company operates primarily in Mainland China and Indonesia, with a focus on property sales and expressway projects.
The latest earnings report reveals a challenging period for Road King, with a significant decrease in property sales and toll revenue compared to the previous year. The company reported a loss attributable to shareholders of HK$2,034 million, with total assets declining to HK$53,329 million from HK$57,513 million at the end of 2024. The net gearing ratio increased to 63%, reflecting the company’s financial strain.
Key financial metrics indicate a downturn in performance, with property sales dropping by approximately 28% and toll revenue from Indonesian expressways decreasing by 4%. The company also faced a substantial gross loss and a reduction in equity attributable to owners. Despite these challenges, the company managed to maintain a relatively stable toll road segment in Indonesia, albeit with reduced profits.
Looking ahead, Road King faces a tough market environment, particularly in the real estate sector in Mainland China, where the market remains sluggish. The company is exploring financial restructuring and asset disposal plans to improve liquidity and cash flow. Management remains cautious about the outlook, emphasizing the need for prudent financial management and strategic planning to navigate the current economic challenges.