Core Viewpoint - The report from CMB International indicates that New World Development (00017) is expected to achieve a revenue of HKD 27.68 billion and a gross profit of HKD 11.63 billion for the fiscal year 2025, with a core operating profit from continuing operations estimated at HKD 6.02 billion, leading to a target price adjustment to HKD 9.7 and a "Buy" rating maintained [1] Financial Performance - For the fiscal year 2025, the company's revenue is projected at HKD 27.68 billion and gross profit at HKD 11.63 billion [1] - The core operating profit from continuing operations is estimated to be HKD 6.02 billion, with core profit around HKD 500 million [1] Debt Management - Total debt is expected to decrease from approximately HKD 151.6 billion at the end of fiscal year 2024 to about HKD 146 billion, with net debt reducing by approximately HKD 4.5 billion to around HKD 120.1 billion [1] - Short-term debt has significantly decreased to about HKD 6.6 billion [1] - The company successfully completed a loan refinancing of HKD 88.2 billion in June 2025, enhancing financial flexibility [1] Future Outlook - For 2026, the company has proposed "seven debt reduction measures," which include accelerating sales, unlocking agricultural land value, expediting the sale of non-core assets, reducing capital expenditures, and suspending dividends to improve cash flow and reduce debt [1]

Core Viewpoint - The report from CMB International indicates that New World Development (00017) is expected to see a revenue of HKD 27.68 billion and a gross profit of HKD 11.63 billion for the fiscal year 2025, with a core operating profit from continuing operations estimated at HKD 6.02 billion, leading to an upward adjustment of the target price to HKD 9.7 and maintaining a "Buy" rating [1][1][1] Financial Performance - For the fiscal year ending 2024, the company's total debt is projected to decrease from approximately HKD 151.6 billion to about HKD 146 billion, with net debt reducing by around HKD 4.5 billion to approximately HKD 120.1 billion [1][1] - Short-term debt is expected to significantly decrease to about HKD 6.6 billion [1] Debt Management Strategy - The company successfully completed a loan refinancing of HKD 88.2 billion in June 2025, enhancing its financial flexibility [1] - Looking ahead to 2026, the company has proposed "seven debt reduction measures," which include accelerating sales, unlocking agricultural land value, expediting the sale of non-core assets, reducing capital expenditures, and suspending dividends to improve cash flow and reduce debt [1][1][1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年9月30日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 新世界發展有限公司 | | | 呈交日期: | 2025年10月2日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 III.已發行股份及/或庫存股份變動詳情 (A). 股份期權（根據發行人的股份期權計劃） | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號(如上市) | | 00017 | 說明 | | | | | | | | | 股份期權計劃詳情 | | 上月底結存的股份期權數 目 | 本月內變動 | | 本月底結存的股份期權數 目 | 本月內因此發行的新股數 目 ( ...

Financial Data and Key Metrics Changes - The company reported a loss attributable to shareholders of HKD 16.3 billion for FY 2025, with a second-half loss of approximately HKD 9.7 billion, which exceeded the first half's loss of HKD 6.6 billion, primarily due to noncash provisions and one-off losses [18][19][71] - Core operating profit decreased by 13% year on year, while segment results declined by 4% year on year [17] - Total debt decreased by HKD 5.7 billion from HKD 151.6 billion in June 2024 to HKD 146 billion in June 2025, and net debt fell by HKD 4.5 billion [22][26] Business Line Data and Key Metrics Changes - The property business achieved annual sales of HKD 26 billion, meeting its target despite market uncertainties [6] - The investment properties segment recorded a 24% year-on-year growth in overall segment results, with K11 segment results also growing by 24% [45] - In Hong Kong, attributable contracted sales for FY 2025 reached HKD 11 billion, with strong performance from multiple projects [28] Market Data and Key Metrics Changes - The company noted improvements in market sentiment and transaction volume for Hong Kong real estate in the latter half of FY 2025, although property prices remained weak [19] - In Mainland China, the group’s contracted sales reached RMB 14 billion, exceeding adjusted annual targets [41] Company Strategy and Development Direction - The company will continue to focus on its core business, actively manage finances, and enhance operational efficiency [8] - Plans include advancing asset disposal, enhancing rental returns, and unlocking the value of farmland holdings [13][14] - The company aims to leverage market improvements and maintain prudent operations amid ongoing uncertainties [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized the importance of cash flow recovery and debt reduction [9][60] - The company acknowledged the impact of interest rate cuts on financing costs, projecting significant savings with further rate reductions [87] Other Important Information - The company has temporarily suspended dividend payments to preserve cash [15][54] - A significant refinancing of HKD 88.2 billion was completed, enhancing liquidity and extending loan maturities [24][55] Q&A Session All Questions and Answers Question: What are the company's concrete goals for debt reduction and timetable? - The company aims for steady progress in reducing total debt and net debt, having already achieved initial success in FY 2025 [58][59] Question: When will the company resume payments for deferred perpetual bonds? - The company will adhere to contractual terms and make announcements at appropriate times regarding coupon payments [61][62] Question: How does the new bank loan align with the goal of reducing indebtedness? - The new bank loan will be used to meet debt-related needs, and the company has successfully controlled net debt, indicating improved cash flow [65][66] Question: Will the majority shareholder consider injecting capital? - There are currently no plans for capital injection from the majority shareholder [68] Question: What is the company's outlook on achieving profitability? - Management indicated that profitability improvements depend on market conditions and ongoing operational efficiency enhancements [71][72] Question: How will recent rate cuts affect interest expenses? - A 1% decrease in interest rates could save the company around HKD 800 million in annual interest expenses [87]

Financial Performance & Debt Reduction - The company targets HKD26 billion in net debt reduction for FY25, which has been completed[10] - Net debt reduced by HK$3.5 billion, a 2.9% decrease compared to June 2024[12] - Total debt trending down, with a HK$5.7 billion reduction over FY25[17] - HKD88.2 billion loan refinancing & alignment completed to improve financial flexibility[10, 80] Business Segments Performance - Core Operating Profit is HK$6.0B [12] - IP segment results increased by 2% YoY[12, 50] - K11 segment results increased by 4% YoY[12, 50] - FY25 Hong Kong Contracted Sales: HKD11B [21] Strategic Initiatives & Optimization - CAPEX reduced by 15% YoY to HK$12.6 billion[10, 12] - G&A expenses reduced by 16% YoY to HK$3.5 billion[10, 12, 78] - Management will not consider rights issue[11] Investment Properties & Development - K11 MUSEA has an occupancy rate of approximately 96%[52] - K11 Art Mall has an occupancy rate of approximately 100%[52] - The company has abundant saleable resources in Hong Kong[33]

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Core Viewpoint - New World Development is struggling to return to profitability amid significant losses and ongoing debt issues, with a focus on debt reduction and asset sales to stabilize its financial situation [1][3][5]. Financial Performance - For the fiscal year 2025, New World Development reported a shareholder loss of HKD 16.3 billion, a 38% increase year-on-year [1]. - Revenue decreased by 23% to HKD 27.681 billion, gross profit fell by 10% to HKD 11.626 billion, and core operating profit declined by 13% to HKD 6.016 billion [3]. - Total assets shrank by 5.6% to HKD 420.265 billion [3]. Debt Management - The company has a total debt of HKD 146 billion and a net debt of HKD 120.1 billion, despite a reduction in total debt by HKD 5.7 billion and net debt by HKD 3.6 billion compared to the previous year [5][6]. - New World Development has implemented a "seven debt reduction plans" strategy and continues to prioritize debt reduction in the new fiscal year [1][3]. Asset Sales and Financing - The company has sold several assets, including properties in Beijing and Ningbo, as part of its debt reduction strategy [1]. - New World Development secured HKD 88.2 billion in financing at the end of the last fiscal year and has recently signed a loan agreement with Deutsche Bank for up to HKD 5.9 billion [1][6]. Market Outlook - The Hong Kong property market has shown signs of recovery, with the successful launch of the Kowloon City project, which sold out on its opening day [4]. - The company aims to increase its contract sales target for fiscal year 2026 to HKD 27 billion, up from HKD 26 billion in the previous year [3]. Leadership Changes - The company has undergone significant leadership changes, with the previous leader, Zheng Zhigang, being marginalized and establishing a new investment company outside the family business [2][6]. - New World Development has clarified its relationship with the K11 brand, stating that it remains fully owned by the company, despite Zheng's new ventures [7][8].

Power Industry - As of the end of August, the cumulative installed power generation capacity in China reached 3.69 billion kilowatts, a year-on-year increase of 18.0% [2] - Solar power generation capacity reached 1.12 billion kilowatts, growing by 48.5% year-on-year, while wind power capacity reached 580 million kilowatts, increasing by 22.1% [2] - The average utilization hours of power generation equipment from January to August were 2,105 hours, a decrease of 223 hours compared to the same period last year [2] Energy Equipment Development - The "Guiding Opinions on Promoting High-Quality Development of Energy Equipment" was released, aiming for a self-controlled, high-end, intelligent, and green development of the energy equipment industry by 2030 [4] - The guidelines support the achievement of carbon peak and carbon neutrality goals, accelerating the new industrialization process [5] Renewable Energy Certificates - In August, 271 million green power certificates were issued, involving 306,500 renewable energy projects, with 152 million being tradable, accounting for 55.99% [8] - From January to August, a total of 1.878 billion green certificates were issued, with 1.277 billion being tradable [9] Hydropower - By the end of August, China's pumped storage power stations had a total installed capacity of 62.365 million kilowatts, achieving the "14th Five-Year Plan" target of 62 million kilowatts [6] - The continuous improvement in pumped storage capacity supports power supply and green transition [7] Carbon Market - As of the end of August, the national carbon emissions trading market recorded a cumulative transaction volume of nearly 700 million tons, with a transaction value of approximately 48 billion yuan [37] - The trading volume and value for 2024 have reached new highs since the market's launch in 2021, indicating significant progress in carbon market development [38] Energy Contracts - From January to August, China Power Construction Company signed 3,579 energy power projects with a total contract value of 516.24 billion yuan, a year-on-year increase of 14.3% [35] - Wind power contracts accounted for 811 projects worth 166.26 billion yuan, a significant increase of 61.27% year-on-year [35] Electric Vehicles - In August, the total import and export value of automotive goods was 25.81 billion USD, with exports increasing by 5.6% month-on-month and 13.2% year-on-year [43] - From January to August, 4.292 million vehicles were exported, a year-on-year increase of 13.7%, with new energy vehicle exports reaching 1.532 million, up 87.3% [43]

Core Insights - New World Development reported a significant loss of 16.302 billion HKD from continuing operations for the fiscal year 2025, primarily due to impairment provisions related to development properties totaling approximately 8.5 billion HKD and a valuation revision loss of 2.7 billion HKD from the 11SKIES project [2][3] - The company secured a financing agreement with Deutsche Bank AG for up to 5.9 billion HKD, with an initial commitment of 3.95 billion HKD, using the Victoria Dockside property as collateral [2][3] - The company has made progress in reducing its debt, with total debt decreasing from 146.5 billion HKD at the end of 2024 to 146 billion HKD by June 2025, and net debt reduced from 124.6 billion HKD to 120.1 billion HKD [4][5] Financial Performance - For the fiscal year 2025, New World Development recorded total revenue of 27.681 billion HKD and a gross profit of 11.626 billion HKD, with core operating profit at 6.016 billion HKD [2] - The company achieved a contract sales target of 26 billion HKD, with 11 billion HKD from Hong Kong and 14 billion RMB from mainland China [6][8] - Investment property income for the fiscal year was 50.55 billion HKD, with a stable performance in both Hong Kong and mainland properties [21][23] Debt Reduction Strategy - The company is actively implementing a "Seven Measures to Reduce Debt Plan," which includes selling development projects and non-core assets, releasing agricultural land value, and improving rental returns [5][13] - The company has successfully reduced short-term debt significantly, with debts due within two years decreasing from 73.8 billion HKD to 29 billion HKD, and debts due within one year dropping from 41.6 billion HKD to 6.6 billion HKD [4][5] Property Development and Sales - New World Development plans to launch several key projects in Hong Kong for the fiscal year 2026, including the "Bauhinia" project in Kowloon City and multiple luxury residential projects [7][9] - In mainland China, the company has a rich pipeline of projects, including Guangzhou and Shenzhen developments, with plans to continue selling these properties [8][9] Rental Income and Property Performance - The company reported a rental income of 3.234 billion HKD from its Hong Kong investment properties, contributing 40% to the group's core profit, driven by high occupancy rates at K11 MUSEA and office buildings [15][21] - K11 MUSEA has seen a surge in international luxury brands, enhancing its rental yield and overall revenue [15][16] - The K11 Art Mall in Hong Kong achieved a 100% occupancy rate, with significant sales growth in the anime and outdoor sports segments [19][20]

Core Insights - K11 is a fully owned trademark and brand of New World Group, with no current management of third-party developed properties [1] - The former CEO of New World, Zheng Zhigang, has permission to use the "K11 by AC" brand, but it operates independently from New World Group [1] - K11 division reported a 4% growth in performance during the reporting period [1]