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]