2025-09-26 08:42Financial Performance - The group's revenue from continuing operations was HKD 27,681 million, a year-on-year decrease of 23% due to the completion of several old projects and reduced revenue from property development in mainland China[24]. - Core operating profit was HKD 6,016 million, down 13% year-on-year[24]. - The group reported a loss attributable to shareholders from continuing operations of HKD 16,302 million, primarily due to one-time provisions and losses[24]. - The group's total assets as of June 30, 2025, were HKD 420,265 million, compared to HKD 445,158 million in the previous year[21]. - The net debt ratio increased to 58.1% from 55.0% year-on-year[21]. - Capital expenditure was HKD 12.6 billion, a decrease of 15% year-on-year due to strict cost control measures[24]. Property Development - Contract sales from property development and asset sales totaled approximately HKD 26 billion, with HKD 11 billion from Hong Kong projects[24]. - In the fiscal year ending June 30, 2025, the group's property development revenue in Hong Kong was HKD 2,696 million, with segment profit of HKD 877 million, primarily from projects such as K11 and Tai Fung[36]. - The total contract sales attributable to the group in Hong Kong for the fiscal year 2025 were approximately HKD 11 billion, mainly from residential projects including K11 and several asset sales[36]. - The number of residential sale agreements increased by 22% year-on-year, from 44,556 to 54,270, while the total value of these agreements rose by 14%, from approximately HKD 389 billion to HKD 442 billion[34]. - The "PAVILIA COLLECTION" project achieved total contract sales of approximately HKD 63 billion, with a peak transaction price nearing HKD 50,000 per square foot, and has sold 614 units as of September 15, 2025[38]. - The luxury residential project "Bai Wei Sen" recorded total contract sales of approximately HKD 4 billion, with a peak price of HKD 25,500 per square foot, selling around 590 units by June 30, 2025[39]. Investment and Asset Management - The group maintained available funds of approximately HKD 45 billion, including cash and bank balances of about HKD 25.9 billion and available bank loans of about HKD 19.2 billion[24]. - The group's investment income from Hong Kong properties was HKD 3,234 million, with segment profit of HKD 2,401 million, driven by strong foot traffic at K11 MUSEA[44]. - The group completed refinancing of approximately HKD 88.2 billion in June 2025[26]. - The group completed several asset sales during the fiscal year, including properties in San Po Kong, although asset sales slowed in the second half due to refinancing negotiations[38]. Market Trends and Future Outlook - The group anticipates recognizing HKD 16,825 million in unrecognized property contract sales revenue in the fiscal years 2026 and 2027, primarily from projects like K11 and "PAVILIA COLLECTION"[43]. - The company expects to complete multiple land premium procedures within the next 1 to 2 years, including the second phase of Longtian Village developed in collaboration with China Resources Land, which will provide approximately 2 million square feet of total floor area[57]. - The company anticipates increasing land reserves by approximately 620 million square feet over the next 3 to 5 years through planning and land exchange applications, focusing on locations such as Tangren New Village and Yuen Long[57]. - The company is strategically positioned in the Northern Metropolitan Area, benefiting from improved transportation and ongoing development in areas like Liufushan[57]. Sustainability and Corporate Governance - New World Development's sustainable development vision, SV2030+, focuses on three pillars: "Future-Ready Places," "Corporate Resilience," and "Prosperous Living" to create economic, environmental, and social value[154]. - The company aims for all new and existing investment projects to achieve net-zero emissions across Scope 1, 2, and 3 by 2050, with a science-based target verified by the Science Based Targets initiative[162]. - The company has established a social impact investment framework to ensure all community programs align with its sustainability goals[156]. - The company has a strong board composition with members holding significant experience in real estate, finance, and governance, ensuring robust decision-making[121]. - The company is actively involved in community service and charitable initiatives, reflecting its commitment to corporate social responsibility[117]. Leadership and Management - The company appointed Ms. Huang Shaomei as CEO starting November 2024, who has over 20 years of experience in real estate and urban planning[115]. - Mr. Zheng Jiasheng has been a director since October 1994 and is involved in several major shareholder companies, indicating strong governance ties[117]. - Zhao Huixian has been appointed as an executive director since May 2020, with over 20 years of experience in human resources and corporate management[131]. - The company is positioned for future growth with a diverse leadership team that combines real estate development and financial acumen[119]. Market Conditions and Challenges - The company is actively responding to the Chinese government's policies aimed at stabilizing the real estate market, which have been implemented since July 2024[62]. - The hotel division anticipates a recovery in occupancy rates in Hong Kong due to upcoming events and the opening of the new airport terminal, despite challenges in the global tourism market[94]. - The growth in cultural tourism demand and favorable visa policies in mainland China are expected to support the domestic and inbound tourism markets, although challenges remain in consumer behavior and corporate travel budgets[94]. - The company maintains a cautiously optimistic outlook for the retail property investment market in Hong Kong, focusing on innovative customer experiences and adjusting tenant mixes to enhance foot traffic and consumption vitality[91].