Luojing: Expected losses to widen to HK$5.2 billion to HK$5.5 billion in 2025

MaticHoleFiller · 2026-03-22T14:44:54+00:00

Lu Jian released a profit warning, projecting a loss of HK$5.2 billion to HK$5.5 billion in 2025, primarily due to declining profits caused by a sluggish real estate market and asset impairments. The company is undergoing offshore debt restructuring and has reached agreements in principle with some creditors.

MaticHoleFiller

2026-03-22 14:44:54

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On the evening of March 19, Road King (01098.HK) issued a profit warning, expecting the group to record a loss of approximately HKD 5.2 billion to HKD 5.5 billion in 2025, an increase compared to the HKD 3.308 billion loss in the same period last year; the company’s attributable loss to owners is expected to be about HKD 5.8 billion to HKD 6.1 billion, further widening from HKD 4.122 billion in 2024.

Regarding the loss recorded this year, Road King explained that it was mainly due to the ongoing downturn in the real estate market and the challenging industry operating environment, which led to a decline in profit margins on real estate projects and increased impairment provisions for properties and related assets.

The increased loss compared to last year is primarily because in 2024, the group sold its entire highway business interests in Mainland China, recognizing a post-tax net gain of HKD 1.49 billion (approximately HKD 1.118 billion attributable to the company’s owners), which offset some operational losses in 2024.

Road King is currently undergoing offshore debt restructuring. On March 16, Road King announced that it had reached a preliminary agreement with a significant proportion of creditors (including some members of AHG) on a revised restructuring plan.

On January 19 this year, Road King announced an initial plan for offshore debt restructuring, which was opposed by AHG (the bondholder group) at the time. According to reports, AHG is composed of holders of approximately 25% of the outstanding principal of the existing notes. Some members of AHG have now agreed in principle to the plan, but the proportion is less than half.

As of the announcement date, Road King has not entered into any legally binding agreements with creditors or other parties regarding the principle of the restructuring plan. The announcement states that the preliminary restructuring plan will be implemented through two mutually conditional and interconnected debt restructuring arrangements: the “New Option Plan” and the “Road King Plan.”

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