Roadlink: Achieve sales of 7.39 billion yuan by 2025; has suspended participation in land auctions.

On March 26, Road King Infrastructure Limited (Road King, 01098.HK) released its performance for the fiscal year 2025. During the period, the company achieved property sales revenue (including joint venture and associate projects) of 7.39 billion yuan (RMB), a decrease of approximately 41% compared to last year.

Regarding land reserves, Road King stated in the announcement that, given the significant liquidity pressure the group is facing and the initiation of debt restructuring, it has suspended participation in land auctions to reserve funds to support the group’s daily operations, resulting in no new projects or land parcels acquired during the year. At the end of the period, the group’s land reserves totaled 2.2 million square meters, with 310,000 square meters already sold but not yet delivered.

In terms of highway operations, during the period, the average daily mixed traffic volume at the group’s Indonesia highway project was approximately 87,300 vehicles, a slight increase of about 1% compared to last year; the total toll revenue for the year was approximately 1.695 billion Hong Kong dollars, a decrease of about 4% from last year, which remained flat year-on-year after excluding the impact of the depreciation of the Indonesian rupiah against the Hong Kong dollar.

In 2025, the profit (after deducting head office expenses and taxes) of Road King’s highway division was 207 million Hong Kong dollars, down 1.604 billion Hong Kong dollars from 1.811 billion Hong Kong dollars last year. The announcement explained that if last year’s one-time net gain from the sale of mainland highway taxes of approximately 1.490 billion Hong Kong dollars, as well as the operating profit before the sale and other one-time project impacts, were excluded, the core operating profit of the highway division was essentially flat compared to last year.

The announcement stated that according to the toll rights agreements of various projects, each project could apply to the Indonesian government for toll rate adjustments in 2025, with the SN highway and SB highway projects receiving special rate increases of approximately 25.0% and 29.5%, respectively, implemented in January and March of this year. Additionally, the NKK highway project has also received approval for an approximately 4.1% regular rate increase, implemented in January.

In terms of profits, in 2025, the attributable equity to the company owners was 5.319 billion Hong Kong dollars, a decrease of 50.82% from 10.815 Hong Kong dollars in the same period last year, and the net asset value attributable to the company owners per share was 7.10 Hong Kong dollars.

At the end of the period, Road King’s total assets amounted to 45.152 billion Hong Kong dollars, a year-on-year decrease of 21.49%; bank deposits and cash were 2.566 billion Hong Kong dollars, a decrease of 39.96% year-on-year, of which 80% was in yuan and the remaining 20% was mainly in US dollars or Hong Kong dollars.

Regarding liabilities, Road King had outstanding secured senior notes principal of 1.401 billion US dollars and three senior secured perpetual capital securities with a principal amount of 890.5 million US dollars. As of the end of 2025, the company’s net equity debt ratio and net debt to total capital ratio were 83% and 45%, respectively.

In its performance announcement, Road King stated that the market recovery progress was below expectations and anticipated that the company would still face debt repayment and liquidity pressures in the future. In response to the offshore debt pressure, Road King has initiated debt restructuring efforts and has recently made progress. After several rounds of discussions, in mid-March, the company reached a principle agreement with several related creditors, which will serve as the basis for subsequent negotiations to achieve more detailed terms and a comprehensive agreement.

According to previous reports by The Paper, two institutions from the AHG (creditor group) have agreed to the latest restructuring plan, accounting for approximately 65% of the shares held by AHG. Recently, The Paper learned that there are differences within the group regarding the restructuring plan. In addition to the aforementioned institutions, four other institutional holders intend to initiate liquidation against Road King. Industry insiders familiar with debt restructuring analyzed that Road King has diversified the group and gained support from larger shareholders, which is beneficial for the implementation of the existing plan.

Regarding the company’s subsequent work, Road King stated in the announcement that it will continue to focus on core tasks in the future: fully promote the offshore debt restructuring work; adhere to delivery guarantees, stabilize operations, and strictly control cash flow; while continuing to advance the sale of the Indonesia highway project transaction and expand related real estate businesses, including commercial and property management.