Di Yi Cai Jing·2025-06-30 14:13Core Viewpoint - New World Development emphasizes cash recovery and debt reduction as its top priorities amid market concerns regarding its financial health due to delayed interest payments on perpetual bonds [1][2]. Group 1: Financial Restructuring - New World Development successfully signed a refinancing agreement with banks, covering approximately HKD 88.2 billion of existing unsecured financial debt [1]. - The new bank financing includes multiple loans with varying maturities, the earliest of which is due on June 30, 2028 [1]. - The refinancing terms provide greater flexibility for the company to manage its ongoing business and financial needs [1]. Group 2: Debt Concerns - The company faced significant market scrutiny after it did not redeem a perpetual bond worth approximately USD 345 million, causing its coupon rate to rise from about 6% to over 10% [2]. - By the end of the 2024 fiscal year, New World Development's net debt ratio is projected to reach 55%, up from below 30% in 2018 [2][3]. - The company reported a shareholder loss of approximately HKD 19.683 billion for the 2024 fiscal year and over HKD 6.6 billion in losses by mid-2025 fiscal year [3]. Group 3: Strategic Initiatives - New World Development plans to reduce debt through various strategies, including asset sales, cost-cutting, and improving cash flow management [3]. - In the 2024 fiscal year, the company sold assets such as the Tsuen Wan shopping mall and raised approximately HKD 8 billion [4]. - For the 2025 fiscal year, the company aims to achieve a cash recovery target of HKD 26 billion [4]. Group 4: Market Performance - New World Development's projects in various regions continue to perform well, with significant sales figures reported in Shenyang and Hong Kong [4][5]. - As of June 25, the company has completed its sales target of HKD 26 billion for the 2024/2025 fiscal year [5].