Zhong Guo Ji Jin Bao·2025-08-08 11:01Core Viewpoint - New World Development is facing financial difficulties and is reportedly in talks with Blackstone Group for a potential financing agreement, which may involve a privatization offer, although the company has denied these rumors [1][2][4]. Group 1: Financial Situation - New World Development's total debt exceeds HKD 151 billion, with short-term debt over HKD 32 billion and a net debt ratio of 57.5%, up from less than 30% in the fiscal year 2018 [10]. - The company reported a shareholder loss of approximately HKD 19.68 billion for the fiscal year 2024 and over HKD 6.6 billion for the mid-term of fiscal year 2025 [11]. Group 2: Asset Management and Financing - New World Development is seeking to improve liquidity by disposing of assets and refinancing, having signed a new refinancing agreement involving HKD 88.2 billion of existing unsecured offshore debt [12]. - The new agreement extends some debt maturities to 2028 and requires core assets as collateral [13]. - The company has accelerated the sale of its real estate projects in mainland China, including landmark buildings in Hangzhou, Shenzhen, and Shanghai, as part of the refinancing strategy [13]. - In 2024, New World sold its entire interest in Tsuen Wan's Citywalk mall and parking lot for HKD 4.02 billion to raise cash [14]. Group 3: Market Reaction - Following the denial of privatization rumors, New World Development's stock experienced significant fluctuations, with a rise of over 20% on August 7 and approximately 10% on August 8 [8].