ROAD KING INFRA (01098) announced that for the six months ending June 30, 2025, the group expects to record a loss of approximately HK$1.5 billion to HK$1.7 billion, while the loss attributable to owners of the company is expected to be approximately HK$1.9 billion to HK$2.1 billion (compared to the first half of 2024: group loss of HK$394 million and loss attributable to owners of the company of HK$1.027 billion).

The company incurred this loss during the period primarily due to the continued downturn in the real estate market and the severe operating environment in the industry, which led to declining profit margins for real estate projects in mainland China and Hong Kong, as well as increased impairment provisions for properties and related assets.

The increase in losses compared to the same period last year was mainly because the group recognized a net after-tax gain of HK$1.49 billion (approximately HK$1.118 billion attributable to owners of the company) from the disposal of all mainland China highway business interests in the first half of 2024, which offset part of the operating losses in the same period last year. Excluding this disposal gain, the net losses for the first half of 2024 and the current period are comparable.