Lujiang Estimated to Report Loss Exceeding HK$5 Billion in 2025, Highway Business Sale Proceeds Insufficient to Offset Losses

Rui Si Network News: On March 19, Road King Infrastructure Limited (Stock Code: 1098) issued a profit warning. Based on the current information available to management, the group is expected to record a loss of approximately HKD 5.2 billion to HKD 5.5 billion for the year ending December 31, 2025. The attributable loss to the company’s owners is estimated to be about HKD 5.8 billion to HKD 6.1 billion. This represents a significant increase compared to the group’s loss of HKD 3.308 billion and the attributable loss to owners of HKD 4.122 billion in 2024.

The increased loss is mainly due to the ongoing downturn in the real estate market and the challenging industry operating environment, leading to lower profit margins on real estate projects in Mainland China and Hong Kong, as well as increased impairment provisions for properties and related assets. Additionally, in 2024, the group recognized a net after-tax gain of HKD 1.49 billion from the disposal of its entire interest in the Mainland China highway business (attributable to owners: approximately HKD 1.118 billion), which partially offset the operational losses for 2024 and is one of the reasons for the year-over-year increase in loss.

Road King Infrastructure reminds shareholders and prospective investors that the information contained in this announcement is based solely on the management’s preliminary assessment of the group’s unaudited consolidated financial data for the year. It is not based on data or information audited or reviewed by auditors and/or the audit committee. The company’s annual results announcement is expected to be published in late March 2026. Shareholders and investors are advised to exercise caution when trading the company’s securities.