Core Viewpoint - New World Development reported a significant decline in revenue and core operating profit for the first half of the 2026 fiscal year, but managed to reduce its losses and debt levels, indicating a positive trend in its debt reduction strategy and business development [1][2][7]. Financial Performance - Revenue decreased by approximately 50% to about HKD 8.391 billion, while core operating profit fell by about 18% to approximately HKD 3.636 billion [1]. - The company reported a shareholder loss of approximately HKD 3.73 billion, which narrowed by 44% year-on-year [1]. - Gross profit declined by 25% to about HKD 5.038 billion, primarily due to reduced construction revenue and fewer property deliveries in mainland China [2]. Sales and Market Performance - Contract sales in the second half of 2025 reached approximately HKD 13.8 billion, exceeding half of the annual target, with Hong Kong business achieving a new high since 2021 [1][4]. - In mainland China, property development revenue was about HKD 2.51 billion, with contract sales amounting to approximately RMB 3.2 billion [5]. - The Greater Bay Area contributed over 60% of mainland sales, with significant projects in Guangzhou and other cities [5]. Debt Management - Total debt as of December 31, 2025, was approximately HKD 144.3 billion, reduced by about HKD 1.7 billion since June 2025 [1][7]. - The company implemented a "seven-pronged debt reduction" strategy, which includes selling development projects and non-core assets, optimizing costs, and managing finances actively [7]. - Financing costs decreased by HKD 6 billion to HKD 31 billion, with the average interest rate dropping by 80 basis points to 3.9% [7]. Future Outlook - The company plans to launch over 1,300 units in Hong Kong in the second half of the fiscal year, with key projects in Kowloon and Sha Tin [8]. - New World Development is also focusing on revitalizing land reserves and releasing agricultural land value, with ongoing projects in collaboration with state-owned enterprises [8]. - The company holds approximately 2.89 million square meters of land reserves in mainland China, with a significant portion designated for residential use [6].

Core Viewpoint - The Hong Kong real estate market is expected to experience a systematic recovery in 2025, with significant increases in transaction volumes and price forecasts from major international investment banks, indicating a positive shift in market sentiment [1]. Group 1: Market Performance - In 2025, the total number of residential property transactions in Hong Kong reached approximately 62,800, with a total value of about 519.8 billion HKD, marking an 18.3% and 14.4% year-on-year increase, respectively, both hitting the highest levels since 2021 [6]. - New World Development's contract sales for the first half of the 2026 fiscal year amounted to 13.8 billion HKD, surpassing half of its annual target of 27 billion HKD, with sales in the Hong Kong market reaching 10.3 billion HKD, the highest since 2021 [1][5]. Group 2: Financial Management - New World Development successfully reduced its total debt by 1.7 billion HKD to approximately 144.3 billion HKD by the end of 2025, while also increasing its available funds to about 37.4 billion HKD [4]. - The company's financing costs decreased by approximately 600 million HKD to 3.1 billion HKD, with the average interest rate dropping by 80 basis points to 3.9% [4]. Group 3: Strategic Initiatives - The company has implemented various measures since 2024 to manage debt, including project sales and optimizing capital expenditures, which have significantly improved its financial resilience [4]. - New World Development plans to maintain strict control over expenditures, with anticipated capital spending for the entire 2025/26 fiscal year to be less than 12 billion HKD [5]. Group 4: Product Performance - The "滶晨" luxury project in Hong Kong has sold 773 units, accounting for over 94% of its total units, generating a contract sales amount exceeding 13.4 billion HKD, making it the highest-selling new development in Hong Kong for 2025 [7][9]. - The company's investment properties have shown a 5% year-on-year growth in performance, contributing to stable recurring income [5]. Group 5: Future Outlook - New World Development is set to launch over 1,300 quality units in Hong Kong in the second half of the 2026 fiscal year, with significant projects planned in Shenzhen, indicating a robust pipeline for future sales [13]. - The company holds approximately 15 million square feet of agricultural land reserves, with 12 million square feet located in the Northern Metropolis area, positioning it well for future development opportunities [13].

Core Insights - New World Development reported a solid performance for the fiscal year 2025, achieving a contract sales target of HKD 26 billion and raising the sales target for fiscal year 2026 to HKD 27 billion [1][3] - The company successfully completed bank refinancing of HKD 88.2 billion, leading to a decrease in total and net debt, and a significant improvement in cash flow [1][4] - Core operating profit reached HKD 6 billion, indicating a stabilization of the company's financial condition [3][4] Financial Performance - Total debt and net debt decreased by HKD 5.7 billion and HKD 3.6 billion respectively compared to the previous year [4] - Capital expenditures (CAPEX) decreased by 15% year-on-year, while operating expenditures (OPEX) fell by 16% [4] - The average interest rate and total financing costs significantly declined due to interest rate cuts in the US and Hong Kong, contributing to lower financing costs [4] Market Performance - The core real estate business showed strong performance, with contract sales in Hong Kong and mainland China reaching HKD 26 billion, with HKD 11 billion from Hong Kong and RMB 14 billion from mainland sales [5][6] - Several projects, including "滶晨" in Hong Kong and "广粤观邸" in Guangzhou, achieved remarkable sales, with the latter generating RMB 2 billion on its opening day [6] - The K11 series malls in Hong Kong experienced record foot traffic, with a 20% year-on-year increase [6] Strategic Initiatives - The company is focusing on its core business and has a robust pipeline of projects, with over 2,100 units expected to be available in fiscal year 2026 [8] - New World is actively collaborating with strategic partners to enhance development potential, including projects with 招商蛇口 and 华润置地 [8] - The company plans to leverage its land reserves in the Northern Metropolis area to accelerate value realization and improve cash flow [8] Future Outlook - The company is optimistic about the market recovery and aims to capitalize on the improving conditions to boost sales and enhance cash flow [9] - New World is committed to maintaining a balanced approach to growth while prioritizing debt reduction as a key objective for the year [9]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 (於香港註冊成立之有限公司) (股份代號: 0017) 聯席公司秘書 劉富强 許嘉慧 香港，2025 年 9 月 26 日 於本公告日期，本公司董事會成員包括 (a) 七位執行董事，分別為鄭家純博士、黃 少媚女士、鄭志雯女士、薛南海先生、趙慧嫻女士、何智恒先生及劉富强先生； (b) 四位非執行董事，分別為杜惠愷先生、鄭家成先生、鄭志恒先生及鄭志明先生；及 (c) 六位獨立非執行董事，分別為李聯偉先生、葉毓強先生、陳贊臣先生、羅范椒 芬女士、羅詠詩女士及黃仰芳女士。 2025財政年度 全年業績簡報 分析員會議 2025 年度全年業績簡報材料 New World Development Company Limited（新世界發展有限公司）及其附屬公司截 至 2025 年 6 月 30 日止年度的全年業績簡報材料已附於本公告。 承董事會命 2025年9月26日 第一部分 財務摘要 策略方向 持續專注地產本業 ...