01098 Overview

Financial Performance: Shenzhen Invest (00604.HK) anticipates an unaudited consolidated net loss of approximately HKD2.5-2.7 billion for the six months ending June 30, 2025, a significant increase from last year's loss of around HKD1.1 billion.

Impairment Loss Impact: The expected rise in net loss is largely attributed to a substantial impairment loss on its interest in ROAD KING INFRA (01098.HK) and an increased share of loss from this investment.

Future Outlook: Despite the anticipated losses, sufficient provisions for impairment losses on the long-term equity investment in ROAD KING INFRA are expected to mitigate significant negative impacts on Shenzhen Invest's performance moving forward.

Market Data: As of August 22, 2025, short selling activity for Shenzhen Invest was reported at $3.33 million with a ratio of 16.914%.

Expected Financial Loss: ROAD KING INFRA (01098.HK) anticipates a net loss between approximately $1.9 billion to $2.1 billion for the first half of 2025.

Comparison with Previous Year: This projected loss is significantly higher than the net loss of about $1.027 billion recorded in the same period of 2024.

Announcement Date: The financial outlook was announced by ROAD KING INFRA recently.

Timeframe of Loss: The expected losses pertain to the six months ending on June 30, 2025.

Debt Suspension Announcement: ROAD KING INFRA has suspended all offshore debt payments after failing to achieve the necessary consent for amendments and waivers, leading to a significant drop in its stock price.

Financial Strategy and Restructuring Plans: The Group aims to ensure fair treatment of creditors while promoting a holistic restructuring plan, having already repaid $6.803 billion in borrowings this year and suspending land auction participation to conserve cash flow.

Bond Default Announcement: ROAD KING INFRA has reported a bond default after failing to make coupon interest payments of USD11.3 million, marking the first such incident for a Hong Kong constructor since the real estate crisis began in 2021.

Debt Restructuring Efforts: The company, which has outstanding senior notes totaling USD2.3 billion, proposed a debt restructuring in June but has not garnered enough support from bondholders to proceed.