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].