Group 1 - The company reported a revenue of HKD 27.681 billion from continuing operations for the fiscal year ending June 30, 2025, with a gross profit of HKD 11.626 billion and a core operating profit of HKD 6.016 billion, indicating strong performance and profitability in its core business [1] - In the core real estate segment, the company achieved contract sales of HKD 26 billion, with contributions of HKD 11 billion from Hong Kong and RMB 14 billion from mainland China, where the southern region, led by the Greater Bay Area, accounted for nearly 52% of sales [1] - The company raised its sales target for fiscal year 2026 to HKD 27 billion, reflecting optimism about market prospects and confidence in its sales capabilities [1] Group 2 - The company reported property development revenue of HKD 2.696 billion from Hong Kong and HKD 12.344 billion from mainland China, with segment profits of HKD 0.877 billion and HKD 4.703 billion, respectively [1] - In the investment property sector, rental rates and sales for office buildings and shopping malls in both Hong Kong and mainland China showed steady growth, with recurring income continuing to rise [1] - The company generated HKD 3.234 billion in investment property revenue from Hong Kong and HKD 1.821 billion from mainland China, with segment profits of HKD 2.401 billion and HKD 0.843 billion, respectively [1] Group 3 - The CEO expressed confidence in the company's ability to capitalize on market improvements, driven by declining interest rates and a recovering real estate market, and emphasized the commitment to accelerate sales and cash flow [2]

Core Viewpoint - New World Development has significantly improved its financial condition, with positive cash flow and a substantial reduction in total debt [1][2] Financial Performance - As of the end of the fiscal year, New World Development's total borrowing amounted to approximately HKD 145.97 billion, a decrease of about HKD 5.7 billion compared to the end of the 2024 fiscal year [1] - The net debt was approximately HKD 120.11 billion, down by about HKD 3.5 billion from the previous fiscal year [1] - The operating cash flow turned positive at approximately HKD 11.92 billion, indicating efficient capital management and stable business development [1] Debt Management - The company successfully executed bank refinancing of HKD 88.2 billion during the reporting period, extending the earliest maturity date of bank loans to June 30, 2028 [1] - An additional committed loan facility of HKD 3.95 billion was secured for daily financing activities, enhancing the company's liquidity and reflecting confidence from financial institutions [1] Operational Efficiency - New World Development achieved a core operating profit of HKD 6 billion for the fiscal year, with positive cash flow reflecting overall financial stability [1] - The company experienced strong growth in property sales in Hong Kong and mainland China, along with stable income from investment properties [1] Cost Management - Capital expenditures (CAPEX) decreased by 15% year-on-year, while operating expenditures (OPEX) fell by 16% [2] - The average interest rate and total financing costs significantly declined due to interest rate cuts in the US and Hong Kong, as well as reduced debt levels [2] - The company plans to further optimize its financial structure in the 2026 fiscal year to support core business development [2]

Core Viewpoint - New World Development has reported a solid performance for the fiscal year 2025, achieving a core operating profit of HKD 6 billion and setting a sales target of HKD 27 billion for fiscal year 2026, indicating a positive outlook for the company's financial health and operational efficiency [1] Financial Performance - The company successfully completed bank refinancing of HKD 88.2 billion, extending the maturity of bank loans to June 30, 2028, which significantly enhances liquidity [2] - Average interest rates and total financing costs have decreased due to interest rate cuts in the US and Hong Kong, alongside a reduction in debt levels [2] - Capital expenditures (CAPEX) decreased by 15% year-on-year, while operating expenditures (OPEX) fell by 16%, reflecting improved operational efficiency [2] Real Estate Business - The core real estate business performed strongly, achieving contract sales of HKD 26 billion, with contributions of HKD 11 billion from Hong Kong and RMB 14 billion from mainland China [3] - Notable projects include the "滶晨" project in Hong Kong, which achieved sales of over HKD 10.7 billion, and the "广粤观邸" project in Guangzhou, which sold RMB 2 billion on opening day [3] Future Development Plans - The company has a robust land bank and plans to launch over 2,100 units in Hong Kong for fiscal year 2026, including projects in Kowloon City and West Kowloon [4] - Collaborative projects with partners such as China Merchants Shekou and China Resources Land are underway, aiming to provide thousands of residential units [4] - The investment property segment is also set for expansion, with new K11 projects opening in Guangzhou and Shanghai, contributing to future revenue growth [4]

Group 1 - The K11 division of New World Development achieved a 4% growth in performance during the reporting period [1] - K11 is a registered trademark and brand fully owned by New World Group [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] Group 2 - New World Group does not manage any properties developed by third parties outside of its own companies [1] - The latest financial report indicates a 4% growth in the K11 division's performance [1]

Core Viewpoint - New World Development has successfully implemented a debt reduction strategy since the new management team took office in November last year, leading to a significant revaluation in the capital market and outperforming other large Hong Kong developers in stock performance [1][2] Financial Performance - For the fiscal year 2025, New World achieved a core business steady growth, with total debt and net debt decreasing by HKD 57 billion and HKD 35 billion year-on-year, respectively, and cash flow turning positive [1] - The company successfully secured HKD 882 billion in bank refinancing, extending loan maturities and significantly enhancing short-term liquidity [1] - Capital expenditures decreased by 15% to HKD 12.6 billion, with plans to further reduce it to below HKD 12 billion in fiscal year 2026 [1] Operational Efficiency - New World has optimized operational efficiency and governance, resulting in a 16% reduction in general and administrative expenses to HKD 3.5 billion [1] - The average interest rate and total financing costs have significantly decreased, with financing costs reduced by HKD 1.3 billion year-on-year [1] Strategic Outlook - The company aims to maintain a "steady progress" approach in fiscal year 2026, prioritizing the reduction of overall debt and further optimizing its financial structure [2] - New World has raised its sales target for fiscal year 2026 to HKD 27 billion, the only developer in the industry to do so, reflecting strong confidence in its future prospects [2] Market Response - Since 2025, New World’s stock price has increased by 52%, outperforming peers such as Cheung Kong (20%), Sun Hung Kai Properties (18%), and Henderson Land (24%) [2] - Recent policy changes in Shenzhen and other major cities, including relaxed purchase restrictions, are expected to positively impact the real estate market [2] - Analysts suggest that New World’s current stock price is undervalued, providing a high margin of safety, with potential for significant recovery as market confidence improves [2]

Group 1 - New World Development confirmed that K11 is a wholly owned trademark and brand of the group, and K11 by AC has no relationship with it [1] - K11 by AC, established by former New World CEO Dr. Zheng Zhigang, operates independently and has obtained permission to use the K11 brand [1] - The K11 division of New World Development reported a 4% growth in performance for the fiscal year 2025 [1] Group 2 - In early September, Zheng Zhigang announced a partnership with Qingdao West Coast New Area Management Committee and Changkun Group to build a multifunctional complex [2] - Zheng Zhigang also founded ALMAD Group, under which K11 by AC operates as a cultural brand [2]

Core Viewpoint - New World Development Limited has secured a financing agreement with Deutsche Bank for up to HKD 5.9 billion, aimed at supporting the group's daily financing activities [1][2]. Financing Details - The initial commitment for the financing is HKD 3.95 billion, with the financing secured against Victoria Dockside properties and related assets, including K11 ARTUS, K11 ATELIER, K11 MUSEA, and the Rosewood Hong Kong hotel [1][2]. - The company retains the right to further leverage these assets for additional financing to support future business needs [1]. Debt Management Strategy - New World Development has been facing significant short-term debt repayment pressures, with a total borrowing of HKD 146.49 billion as of December 31, 2024, of which HKD 32.21 billion is due within 12 months [3]. - The company has cash and bank deposits amounting to HKD 21.42 billion, which is insufficient to cover its short-term debt obligations [3]. Recent Developments - The financing agreement follows a previous announcement regarding a major refinancing arrangement covering approximately HKD 88.2 billion of existing unsecured offshore financial debt, aimed at improving short-term repayment capabilities and reducing cash flow pressure [2]. - The company has publicly stated that reducing debt is a core strategic priority, especially in light of recent rumors regarding potential privatization offers from its controlling shareholder and Blackstone Group, which the company has denied [4]. Market Implications - The HKD 5.9 billion financing is seen as a crucial liquidity support measure amidst ongoing debt management efforts, although it primarily serves as a buffer given the company's overall debt levels and upcoming short-term obligations [4].

新世界全年亏损163亿港元，去年亏损118亿港元。 ...

Core Insights - New World Department Store China (00825) reported audited annual results for the year ending June 30, 2025, with revenue of approximately HKD 1.183 billion, a year-on-year decrease of 12.99% [1] - The net profit was HKD 25.285 million, reflecting a significant year-on-year increase of 89.91% [1] - Earnings per share stood at HKD 0.015 [1] Revenue Analysis - The decline in revenue was primarily attributed to a decrease in commission income from counters and a reduction in self-operated sales [1] Profitability Metrics - Despite the drop in revenue, the company achieved a substantial increase in net profit, indicating improved cost management or operational efficiency [1]

Group 1 - The company New World Development (00017.HK) announced a financing agreement with Deutsche Bank AG, which involves a loan facility of up to HKD 5.9 billion, with an initial commitment of HKD 3.95 billion for daily financing activities [1] - The financing will be secured by a first-ranking mortgage on the property known as "Victoria Dockside," which includes five main components: "K11 ARTUS," "K11 ATELIER," "K11 MUSEA," the Rosewood Hong Kong hotel, and several parking facilities [1] - The company retains the ability to use Victoria Dockside as collateral for additional financing to support ongoing business needs [1]