NEW WORLD DEV(00017)2024-10-25 04:00Financial Performance - The core operating profit from continuing operations was HKD 6,898 million, a year-on-year decrease of 18%[12]. - Revenue from continuing operations was HKD 35,782 million, down 34% year-on-year, primarily due to reduced property development revenue in Hong Kong and mainland China[12]. - The gross profit decreased by 22% year-on-year to HKD 12,849 million[12]. - The board decided not to recommend a final dividend for the year ending June 30, 2024, due to a reported loss attributable to shareholders, with a total dividend of HKD 0.20 per share for the year[12]. - The net debt-to-equity ratio increased to 55.0% from 47.7% year-on-year[11]. Property Development - Revenue from Hong Kong property development was HKD 2,412 million, while revenue from mainland China property development was HKD 13,713 million[12]. - The company reported property development revenue from mainland China of HKD 13,713 million, with a segment profit of HKD 5,258 million, primarily from residential projects in Hangzhou, Guangzhou, and Shenyang[27]. - The total contracted sales in mainland China amounted to RMB 12.48 billion, with over 85% contributed by the southern region led by the Greater Bay Area and the eastern region led by the Yangtze River Delta[12]. - The group's attributable property contract sales in Hong Kong amounted to approximately HKD 1,509 million, mainly from residential projects and a Grade A office project[17]. - As of June 30, 2024, the group had 2,039 unsold residential units in Hong Kong, with HKD 11,194 million expected to be recognized in revenue during the fiscal years 2025 and 2026[17]. Investment and Financial Strategy - Available funds totaled approximately HKD 46.3 billion, including cash and bank balances of about HKD 28 billion and available bank loans of about HKD 18.3 billion[12]. - The company strictly controlled costs, with capital expenditures and administrative expenses decreasing by approximately 23% and 17% year-on-year, respectively[12]. - The company sold non-core assets in mainland China, generating revenue of approximately RMB 676 million during the year[30]. - The company plans to accelerate the conversion of agricultural land to meet housing demand and enhance land reserves[22]. - The company aims to enhance its strategic layout in key regions, leveraging policy benefits and market opportunities for sustainable growth[44]. Retail and Cultural Engagement - K11 MUSEA's sales and total foot traffic increased by 17% and 20% year-on-year, driven by luxury consumption and cultural events[19]. - The overall occupancy rate of K11 MUSEA reached 97%, supported by the expansion of international luxury brand stores[19]. - The group actively engaged in various cultural and artistic events to attract customers and enhance the shopping experience[18]. - K11 Art Mall's sales and foot traffic increased by 16% and 10% year-on-year, respectively, maintaining an overall occupancy rate of 99%[20]. - The group is currently developing seven urban renewal projects in core cities like Guangzhou and Shenzhen, with a total floor area of 1,622,000 square meters[40]. Sustainability and Corporate Responsibility - The company is committed to integrating environmental, social, and governance factors into its business operations to create shared value for stakeholders[50]. - New World Development has been recognized as one of the "Top 50 Most Sustainable Companies" by TIME magazine for 2024, standing out from over 5,000 evaluated companies[79]. - The updated SV2030+ sustainable development vision focuses on three pillars: "Future-Ready Places," "Corporate Resilience," and "Prosperous Living," with a commitment to achieving net-zero emissions by 2050[80]. - The company aims to ensure all relevant investments and operations implement climate adaptation measures and resilience planning by the fiscal year 2030[76]. - The company is committed to maintaining transparency in corporate disclosures and leading the industry in key ESG indices and ratings[76]. Leadership and Governance - Dr. Zheng Jiachun has been the Chairman since March 2012 and has extensive experience in strategic direction and property development[55]. - Mr. Ma Shaoxiang was appointed as Chief Operating Officer in January 2024 and will become CEO in September 2024, indicating a leadership transition[60]. - The board includes experienced members with backgrounds in engineering and public service, enhancing corporate governance[61]. - The company has appointed several independent non-executive directors with extensive experience in finance and management, enhancing corporate governance[62][63][64][65][66]. - The management team has significant experience in both local and international markets, which may facilitate future market expansion and investment opportunities[62][63][64][65][66]. Climate Change and Resilience - The company aims to achieve climate adaptation measures and resilience planning for all relevant investments and operations by the fiscal year 2030[111]. - By the fiscal year 2050, the company targets net-zero emissions across all assets and operations, covering Scope 1, 2, and 3 emissions[111]. - The company has established new goals for energy, water resource, and waste efficiency, aiming for a total recovery rate of 30% in relevant investments and operations[111]. - The company is committed to using 100% renewable energy for its investment properties in the Greater Bay Area[111]. - The company is focusing on optimizing operational efficiency to reduce resource consumption and is seeking more green building certifications across its property portfolio[124]. Community Engagement and Development - The company continues to engage with stakeholders to support learning, skills training, and employment initiatives, fostering community collaboration[82]. - The company is actively involved in community service and charitable foundations, which may enhance its brand reputation and stakeholder relationships[62][63]. - The company has established approximately 20,000 square meters of urban parks in Ningbo New World Plaza, utilizing sponge city concepts to manage and conserve water[182]. - The project includes a rooftop solar photovoltaic system to generate renewable energy, contributing to sustainability goals[190]. - The company is committed to minimizing the impact of development projects on natural habitats and biodiversity through its biodiversity policy[187].