New World Development Company (17) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 31 December 2025 fell 50% year-over-year to HK$8,391 million, mainly due to lower construction revenue and fewer property handovers in the Chinese Mainland.

• Loss attributable to shareholders was HK$3,730 million, narrowed by 44% year-over-year, mainly due to reduced one-off losses, lower financing costs, and lower tax expenses.

• Seven debt reduction strategies, including asset sales, cost control, and suspension of dividends, have stabilized operations and finances.

• Major debt exchange and refinancing enhanced financial flexibility and improved the credit profile.

• No interim dividend declared for the financial year ending 30 June 2026.

Financial highlights

• Core operating profit fell 18% year-over-year to HK$3,636 million due to lower property delivery volume.

• Attributable contracted sales totaled HK$13.8 billion, with HK$10.3 billion from Hong Kong and RMB3.2 billion from the Chinese Mainland.

• Capital expenditure was HK$3.5 billion, down 29% year-over-year.

• Net debt increased to HK$122.7 billion as of December 2025, up HK$2.6 billion year-over-year, with a net gearing ratio of 59.7%.

• Total debt as of December 2025 was HK$144.3 billion, down from HK$146 billion in June 2025.

Outlook and guidance

• Focus remains on property development and investment, prioritizing cash flow and debt reduction through accelerated sales, asset disposals, and capital optimization.

• Over 1,300 units to be launched in Hong Kong in the second half, including new and existing projects.

• Several major projects in Hong Kong and the Chinese Mainland are progressing as planned, with new launches expected in 2HFY2026 and FY2027.

• CapEx guidance for FY2026 is below HK$12 billion.

• The group remains cautiously optimistic about Hong Kong's retail and hotel markets, while expecting continued resilience in the office sector.