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7 1 0 2 REPORT INTERIM Road King Infrastructure Limited Interim Report 2017 Road King Infrastructure Limited Corporate Road King Infrastructure Limited (“Road King”) is a prominent property developer in Mainland China and Profile Hong Kong focusing on developing quality residential apartments at affordable prices. The existing asset portfolio of property business is primarily located in the Yangtze River Delta and Bohai Rim regions, comprising a land reserve of over 7.2 million square metres. Road King is also a leading toll road investor and operator in Mainland China with over 20 years of experience in the industry. The current toll road portfolio comprises five expressways spanning 340 km in Mainland China. 18 August 2017 Contents Financial Highlights 2 Major Projects Information 3 Management Discussion and Analysis 17 Dividend 33 Corporate Governance 34 Disclosure of Interests 35 Other Disclosures 39 Corporate Information 43 Condensed Consolidated Financial Statements — Condensed Consolidated Statement of Profit or Loss F-1 — Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income F-2 — Condensed Consolidated Statement of Financial Position F-3 — Condensed Consolidated Statement of Changes in Equity F-5 — Condensed Consolidated Statement of Cash Flows F-6 — Notes to the Condensed Consolidated Financial Statements F-7 Report on Review of Condensed Consolidated Financial Statements F-28 Interim Report 2017 1 Financial Highlights Financial Highlights For the six months ended For the year ended 30 June 31 December (HK$’million) 2017 2016 2015 2016 2015 Revenue from property development 3,166 4,352 4,390 16,842 12,510 Group’s share of toll revenue 631 592 519 1,238 1,090 Cash received from toll road projects (including the repayment of shareholders’ loans) 390 250 243 580 530 Profit attributable to owners of the Company 284 218 228 1,250 820 Basic earnings per share (HK$) 0.38 0.30 0.31 1.69 1.11 Net assets per share attributable to owners of the Company (HK$) 17.88 17.47 17.76 17.96 17.78 Dividend per share (HK$) 0.15 0.13 0.13 0.68 0.48 Net gearing ratio (%) 30% 62% 77% 66% 73% Revenue from property development and Property sales from property development Group’s share of toll revenue (including joint venture projects) (HK$’million) (RMB’million) Property Toll Road 4,909 4,944 15,874 3,797 10,520 4,390 4,352 3,166 5,628 519 592 631 2015 2016 2017 2015 2016 2017 1st half 1st half 1st half 1st half 1st half 1st half Revenue contribution of property projects Revenue contribution of toll road projects in first half of 2017 by location in first half of 2017 by location 13% 8% 12% 54% 8% 79% Yangtze River Hebei Province Delta Region Hunan Province Bohai Rim Region Shanxi Province 26% Other Major Regions Anhui Province 2 ROAD KING INFRASTRUCTURE LIMITED Major Projects Information Major Projects Information PROPERTY PROJECTS Yangtze River Delta Region Bohai Rim Region Other Major Regions 18 BEIJING 19-20 21-22 Hebei Province Tianjin Langfang 23-25, 40 Jinan Shandong Province BOHAI RIM REGION 26-27, 35 7-8 9-12, 33, Jiangsu 36-38 28-29 Province Changzhou Zhengzhou 13 Zhenjiang 14-16, 34 Henan 1-6 Luoyang Province Shanghai Wuxi 39 Suzhou Hangzhou 17 Zhejiang Province Ningbo Hunan Province YANGTZE RIVER DELTA REGION 30 Yongzhou 31 Guangdong Guangzhou 41 Province 32, 42-43 Foshan Hong Kong Special Administrative Region Interim Report 2017 3 Major Projects Information (continued) PROPERTIES FOR SALE As at 30 June 2017 Yangtze River Delta Region P1 RK Shanghai Villa Stage of Land area Floor area (sqm) 61,000 Nature Residential S/C 136,000 completion (note) (sqm) West of Bai’an Highway, North Approximate Target 55% 2017 Location of Miaojing River, Waigang Town, attributable interest completion Jiading District, Shanghai, the PRC Shanghai Juncheng Real Estate Ltd. P2 RK Shanghai Manor Stage of Land area Floor area (sqm) 35,000 Nature Residential S/C 133,000 completion (note) (sqm) Lane 589, Hengrong Road, Approximate Target 55% 2017 Location Waigang Town, Jiading District, attributable interest completion Shanghai, the PRC Shanghai Juncheng Real Estate Ltd. P3 RK Shanghai Style Phase II Stage of Land area Floor area (sqm) 73,000 Nature Residential S/C 72,000 completion (note) (sqm) East of Yutang Road and South of Approximate Target 90% 2017 Location Bai’an Highway, Anting Town, Jiading attributable interest completion District, Shanghai, the PRC Shanghai Junda Real Estate Ltd. P4 Shanghai Anting Changji Road South Project Stage of Land area Floor area (sqm) 80,000 Nature Residential P 42,000 completion (note) (sqm) East of Yutang Road and South of Approximate Target 75% 2019 Location Changji Road, Anting Town, Jiading attributable interest completion District, Shanghai, the PRC Shanghai Junan Real Estate Ltd. P5 RK Sheshan Villa Stage of Land area Floor area (sqm) 52,000 Nature Residential S 37,000 completion (note) (sqm) East to Hexi Road, West to Kungang River, South to Mianzhanggang Approximate Target 60% 2017 Location River and North to Chongnan Road, attributable interest completion Xiaokunshan Town, Songjiang District, Shanghai, the PRC Shanghai Juntong Real Estate Co., Ltd. 4 ROAD KING INFRASTRUCTURE LIMITED Major Projects Information (continued) PROPERTIES FOR SALE As at 30 June 2017 Yangtze River Delta Region P6 Xiaokunshan BC Project Residential and Stage of Land area Floor area (sqm) 177,000 Nature M 122,000 commercial completion (note) (sqm) East to Kungang Highway, West to Hexi Street, South to Approximate Target Mianzhanggang River and North to 60% 2020 Location attributable interest completion Wennan Road, Xiaokunshan Town, Songjiang District, Shanghai, the PRC Shanghai Junzhu Real Estate Ltd. P7 RK Notting Hill Stage of Land area Floor area (sqm) 74,000 Nature Residential S/C 98,000 completion (note) (sqm) Chuqiao Road, Dingmao District, Approximate Target 100% 2018 Location Zhenjiang, Jiangsu Province, attributable interest completion the PRC Zhenjiang RK Properties Developments Ltd. P8 RK City (Zhenjiang) Stage of Land area Floor area (sqm) 486,000 Nature Residential P/F/S/C 257,000 completion (note) (sqm) South of Yihou Road and West of Approximate Target Yandun Shan Road, Dagang Town, 100% 2020 Location attributable interest completion Zhenjiang, Jiangsu Province, the PRC Zhenjiang RK Dagang Properties Developments Co., Ltd. P9 RK City (Changzhou) Stage of Land area Floor area (sqm) 415,000 Nature Residential P/F/S/C 280,000 completion (note) (sqm) East of Huoju Bei Road and North of Guangdian Xi Road, Gaoxin Approximate Target 100% 2019 Location Zone, Hutang Town, Wujin District, attributable interest completion Changzhou, Jiangsu Province, the PRC Changzhou RK Properties Developments Ltd. Interim Report 2017 5 Major Projects Information (continued) PROPERTIES FOR SALE As at 30 June 2017 Yangtze River Delta Region P10 RK Urban Home Court Stage of Land area Floor area (sqm) 128,000 Nature Residential S/C 95,000 completion (note) (sqm) West of Dongxi Lin Road and North Approximate Target of Hualin Road, Zhonglou District, 100% 2017 Location attributable interest completion Changzhou, Jiangsu Province, the PRC Changzhou RK Hongcheng Properties Developments Ltd. P11 RK City Landmark Stage of Land area Floor area (sqm) 217,000 Nature Residential P/F/S 89,000 completion (note) (sqm) North of Qingtan Xi Road and Approximate Target West of Chechang Road, Zhonglou 100% 2020 Location attributable interest completion District, Changzhou, Jiangsu Province, the PRC Changzhou RK Hongyuan Properties Developments Ltd. P12 RK City Signature Stage of Land area Floor area (sqm) 224,000 Nature Residential F/S/C 110,000 completion (note) (sqm) East of Longjiang Road, North of Approximate Target Zijing Xi Road, Zhonglou District, 100% 2019 Location attributable interest completion Changzhou, Jiangsu Province, the PRC Changzhou RK Hongrun Properties Developments Ltd. P13 RK The Providence Stage of Land area Floor area (sqm) 136,000 Nature Residential F/S/C 88,000 completion (note) (sqm) Southwest of the junction of Approximate Target Zhongnan Xi Road and Lixi Road, 100% 2019 Location attributable interest completion Binhu District, Wuxi, Jiangsu Province, the PRC Wuxi RK Liyuan Properties Limited 6 ROAD KING INFRASTRUCTURE LIMITED Major Projects Information (continued) PROPERTIES FOR SALE As at 30 June 2017 Yangtze River Delta Region P14 RK Phoenix City Stage of Land area Floor area (sqm) 250,000 Nature Residential F/S/C 843,000 completion (note) (sqm) Junction of Zhongxin Da Road East Approximate Target and Xieyu Road South, Suzhou 100% 2019 Location attributable interest completion Industrial Park, Suzhou, Jiangsu Province, the PRC Suzhou Junyu Properties Ltd. P15 RK Yanjiang Riverside Stage of Land area Floor area (sqm) 60,000 Nature Residential F/S 58,000 completion (note) (sqm) Junction of Xiangzhou Road and Approximate Target Shunxian Road, Yangchenghu Town, 58.82% 2017 Location attributable interest completion Xiangcheng District, Suzhou, Jiangsu Province, the PRC Suzhou Juncheng Properties Developments Co., Ltd. P16 Chengtie Xincheng Project Stage of Land area Floor area (sqm) 190,000 Nature Residential P 95,000 completion (note) (sqm) West of Anyang Road and North of Approximate Target Huhong Road, Huguan Town, Gaoxin 51% 2020 Location attributable interest completion District, Suzhou, Jiangsu Province, the PRC Suzhou Zhongjiao RK Properties Co., Ltd. P17 RK XinTianDi (Ningbo) (formerly known as Ningbo Jiangbei Project) Residential and Stage of Land area Floor area (sqm) 98,000 Nature P/F/S 27,000