Core Insights - New World Development reported a core profit of HKD 3.6 billion for the first half of the 2026 fiscal year, with contract sales reaching HKD 13.8 billion, exceeding half of the annual target [1][3] - The investment property segment recorded a 5% year-on-year growth [1] Financial Performance - Revenue for the first half of the fiscal year was approximately HKD 8.391 billion, a decline of about 50% year-on-year, primarily due to reduced construction income and fewer property deliveries in mainland China [3] - Gross profit was approximately HKD 5.038 billion, down about 25% year-on-year [3] - The company has available funds totaling approximately HKD 37.4 billion and completed a debt swap of about HKD 20 billion by December 5, 2025 [3] Market Outlook - The Hong Kong property market saw record transaction volumes in 2025, with market institutions generally optimistic about the 2026 outlook; JPMorgan raised its forecast for Hong Kong property price increases to 10% to 15% [3] - New World achieved contract sales of HKD 13.8 billion in the first half of 2026, with the Hong Kong market contributing HKD 10.3 billion, marking the highest level since 2021 [3] Project Developments - New World plans to launch over 1,300 residential units in Hong Kong in the second half of the fiscal year, including several projects in prime locations [3][4] - In mainland China, the company reported contract sales of RMB 3.2 billion, with notable projects in Guangzhou achieving high sales prices and strong buyer interest [4] - The company is also developing projects in the Northern Metropolis area, with nearly 15 million square feet of quality land reserves [4][5] Commercial Performance - The rental market for New World's core commercial and office projects is steadily improving, with high occupancy rates reported across various properties [4] - As of December 31, 2025, K11 Art Mall maintained nearly 100% occupancy, while K11 MUSEA and K11 Atelier Victoria Dockside reported occupancy rates of 98% and 99%, respectively [4]

Core Insights - New World Development reported a strong performance for the first half of the 2026 fiscal year, with core profit reaching HKD 3.6 billion and total debt reduced by HKD 1.7 billion [1] - The company achieved contract sales of HKD 13.8 billion, exceeding half of its annual target, with the Hong Kong market reaching its highest level since 2021 [1][3] Sales Performance - In the first half of the fiscal year 2026, the property sales segment showed robust performance, with contract sales amounting to HKD 13.8 billion, which is over half of the annual target of HKD 27 billion [3] - The Hong Kong market performed particularly well, with contract sales of HKD 10.3 billion, marking the highest record since 2021, reflecting the company's strong brand and product competitiveness in the high-end property market [3] - In mainland China, contract sales for the first half of the fiscal year were approximately RMB 3.2 billion, with key projects like the Kaixuan New World in Guangzhou achieving a record average selling price of RMB 21,800 per square meter [3] Future Development Strategy - For the second half of the 2026 fiscal year and long-term development, the company has established a clear business layout, with a focus on launching new properties and enhancing land reserves [4] - The company plans to launch over 1,300 premium units in the Hong Kong market and key projects in mainland China, including the New World 188 project in Shenzhen [5] - New World is actively promoting land reserve activation and agricultural land value release, with two major projects in collaboration with state-owned enterprises already underway [5] Financial Health and Growth Potential - The company is confident in completing its annual targets, supported by a strong financial position and strategic planning [4][6] - With the upcoming launch of quality new properties and the gradual release of agricultural land value, New World aims to consolidate its development advantages and create greater value for shareholders and the market [6]

Core Viewpoint - New World Development Company is seizing opportunities in the Northern Metropolis development in Hong Kong, aiming to fully unlock the value of agricultural land and enhance its business growth through new residential projects and strong sales performance in mainland properties [1][12]. Mainland Business - The company has launched two major residential projects in the Northern Metropolis, expected to provide approximately 3,000 residential units by the fiscal year 2027, injecting growth momentum into future business [1]. - In Guangzhou, the New World Tianfu project has achieved a cumulative transaction volume of 70% in its market segment from January to November this year [10][11]. - The Shenyang project, New World Yujing, ranked first in sales revenue in the private residential market of its region, continuing its strong sales performance [11]. - Various K11 projects across the mainland are hosting engaging activities to stimulate consumer spending, such as the first dessert festival in Shenyang, which attracted over 200,000 visitors and increased traffic by 50% [5][10]. Hong Kong Business - The company holds approximately 1.4 million square meters of agricultural land reserves, with plans to convert over 185,000 square meters into buildable floor area within the next 1-2 years [12]. - Two large residential projects in the Northern Metropolis have commenced construction, including a collaboration with China Merchants Shekou Industrial Zone Holdings, which will provide around 2,300 residential units [12][14]. - The Austin Bohemian project in West Kowloon sold all 63 units on the first day of sales, with the highest price per square meter exceeding HKD 29,000 [14]. - The State Pavilion project has achieved total sales exceeding HKD 4.2 billion, with a price per square meter over HKD 540,000, setting new records [14]. Sustainable Development - New World Development has received multiple ESG awards and is committed to cultivating environmental professionals in Hong Kong, aligning with its "2030+ Sustainable Development Vision" [16]. - The company supports the release of the third version of the Hong Kong Green Building Council's Climate Change Framework, aiming for sustainable building certifications for new and existing projects by the fiscal year 2030 [16][17].