Market Overview - In July, Hong Kong's new property market remained active with over 2,000 transactions, representing a month-on-month increase of over 30% [2] - New World Development reported strong business momentum at the beginning of the new fiscal year, with excellent sales results from various projects in mainland China and Hong Kong, leading to steady cash flow [2] Mainland Business - The high-end residential project Tianhui Xi in Shanghai successfully delivered all 448 units, selling out after two rounds of sales [5] - In Guangzhou, the new landmark project Yaosheng New World Plaza is delivering residential, commercial, and Grade A office spaces, showcasing New World's strong delivery capabilities [5] - The K11 ECOAST in Shenzhen launched multiple summer activities and added nearly 20 new brands, enhancing tenant diversity and customer experience [5] Awards and Recognition - Shanghai K11 ELYSEA and Ningbo THEPARK by K11Select won multiple awards at the BETTER FUTURE Hong Kong Design Awards 2025 for their architectural excellence [6] - New World Development's sustainability efforts were recognized with awards for the Hangzhou New World City Art Center and the "2030+ Sustainable Development Vision" [6] Hong Kong Business - The luxury residential project DEEP WATER PAVILIA滶晨II in Hong Kong sold 82 out of 88 units in its first round, achieving a sales rate of 93% [8] - The new landmark luxury residential project 柏蔚森 in Kai Tak has sold over 600 units since its launch, generating over HKD 4.2 billion in sales [9] - The core cultural landmark luxury project STATE PAVILIA皇都 sold out all units in the "皇都维港珍藏大宅" series, with an average price of nearly HKD 40 million [9] Events and Promotions - New World Development hosted two major international events at K11 MUSEA during the summer, including the "CHIIKAWA DAYS" exhibition and the CR7® LIFE Museum, attracting significant visitor traffic [10]

Core Viewpoint - New World Development has achieved remarkable sales results in various projects in mainland China and Hong Kong at the beginning of the new fiscal year, steadily accelerating cash flow and actively promoting residential project deliveries [1][2][3] Group 1: Mainland Business Performance - Several projects are leading the regional market, with two benchmark projects successfully delivered, including Shanghai Tianhui Xi and Guangzhou Yaosheng New World Plaza [1] - Guangzhou Yaosheng Zunfu has launched the second phase of distinctive units, with areas ranging from approximately 88 to 245 square meters, while Guangzhou New World Guanghui Zunfu has launched duplex units ranging from 92 to 125 square meters [1] - Shenzhen K11 ECOAST has attracted nearly 20 new brands through summer activities, enhancing its business offerings [1] - Shanghai K11 ELYSEA and Ningbo THE PARK by K11 Select have won gold awards at the BETTER FUTURE Hong Kong Design Awards 2025 in their respective categories [1] Group 2: Hong Kong Business Performance - The first round of sales for the South Island Phase 5 "DEEP WATER PAVILIA滶晨II" saw 82 out of 88 units sold, with total sales reaching nearly 8.8 billion HKD as of July 30 [2] - The new landmark luxury residence "THE PAVILIA FOREST柏蔚森" has sold over 600 units, generating sales exceeding 4.2 billion HKD, with the first delivery of units starting in September [2] - The luxury project "STATE PAVILIA皇都" has sold out all "皇都维港珍藏大宅" units, with an average price close to 40 million HKD [2] Group 3: Future Outlook - With ongoing business development and more new projects entering the market, New World is expected to see further performance progress in the new fiscal year [3] - The continuous launch of "滶晨II" and "THE PAVILIA FOREST柏蔚森" in the Hong Kong market is anticipated to maintain recent market momentum [3] - In the mainland market, projects in Guangzhou and Shenyang are continuing their strong sales momentum, with the first K11 Select project in Guangzhou set to debut [3] - The company will continue to adhere to a high-quality development strategy, focusing on its core business and pursuing stable growth in performance [3]

Group 1 - New World Development Company Limited has reached a new bank financing and unified bank financing agreement covering approximately HKD 88.2 billion of existing unsecured financial debt [1] - The company's financial management strategy focuses on reducing liabilities and improving cash flow, while continuing to fulfill existing financial responsibilities [1] - The recovery of the real estate market in Hong Kong and mainland China, along with the growth in demand for high-end residential properties, has led to the successful launch of several "phenomenal" hot-selling projects [1] Group 2 - As of June 25, the company has achieved its contract sales target of HKD 26 billion for the fiscal year 2024/2025 [1] - In the mainland market, projects in Guangzhou and Shenyang have led sales, with Shenyang's project topping the residential sales chart in May [1] - In Hong Kong, the super luxury project "滶晨" has sold over 330 units at a maximum price of over HKD 538,000 per square meter, attracting both local and overseas buyers [2]

Core Viewpoint - New World Development, owned by the Cheng Yu-tung family, faces significant financial challenges following the announcement of delayed interest payments on its perpetual bonds, leading to a sharp decline in its stock price and bond values [1][3][4]. Group 1: Financial Impact - New World Development's stock price dropped over 10% in a single day, closing at HKD 4.43, with a trading volume of 33.85 million shares, amounting to HKD 148 million [1][4]. - The company announced a total deferral of USD 77.2 million in debt obligations, with specific perpetual bonds hitting historical lows, such as the 6.15% perpetual bond dropping to 23 cents and the 4.8% bond falling to 15.5 cents [3][4]. - Analysts from Morningstar and Morgan Stanley indicated that while the deferral does not trigger a default, it poses long-term risks due to accumulating repayment obligations [4][6]. Group 2: Business Performance - New World Development reported contract sales of approximately HKD 24.8 billion this fiscal year, achieving over 95% of its annual sales target, with notable sales from projects in Hong Kong [6][7]. - Despite improvements in property sales, HSBC Global Research maintains a "reduce" rating on the company, citing low visibility in business turnaround and potential financial strain affecting dividend payments [6][7]. Group 3: Debt Management - The company is actively working on refinancing its HKD 87.5 billion bank loans and has secured commitments for refinancing, including a new loan of HKD 15.6 billion against its Victoria Dockside property [7]. - New World Development has successfully refinanced approximately HKD 17.76 billion of existing bank loans since July 2024, indicating ongoing efforts to manage its financial obligations [7].