New World Development Company Limited

For FY2025, loss attributable to shareholders was HKD 16.3 billion, with the second half loss about HKD 9.7 billion versus HKD 6.6 billion in the first half. Core operating profit declined 13% year on year and segment results declined 4% year on year; G&A expenses were HKD 3.5 billion, down 16% year on year, and CapEx was HKD 12.6 billion, down 15% year on year and below prior guidance of HKD 13 billion. Total debt fell by HKD 5.7 billion to HKD 146 billion and net debt fell by HKD 4.5 billion to HKD 120.1 billion; net gearing was 58.1% and average interest cost fell from 5.0% to 4.8%, reducing total financing cost by HKD 1.3 billion to HKD 7.4 billion. In terms of sales, Hong Kong attributable contracted sales were HKD 11 billion and Mainland contracted sales were RMB 14 billion; the group met its FY2025 HKD 26 billion property sales target and increased FY2026 sales target to HKD 27 billion. Management said FY2026 CapEx will be below HKD 12 billion, debt due in FY2026 totals HKD 6.6 billion, and if interest rates fall 1%, annual interest expense savings could be around HKD 800 million.

Echo Huang’s message was that the group is stabilizing after a difficult period and is focused on three priorities: core property business, cash flow improvement, and operational discipline. She emphasized that the HKD 88.2 billion refinancing bought time to execute, while strong sales in Hong Kong and Mainland China and improving leasing performance support confidence in the business. Her tone was cautiously optimistic but still pragmatic, repeatedly stressing prudence, market uncertainty, and the need for continued debt reduction.

Edward Lau focused on balance-sheet repair and liquidity. He said the HKD 88.2 billion refinancing pushed the earliest maturity of certain bank loans out to 30 June 2028 and reduced debt maturing within two years from HKD 73.8 billion to HKD 29 billion, with FY2026 maturities at only HKD 6.6 billion. He highlighted lower funding costs from rate cuts, with average interest down to 4.8% from 5.0% and total financing cost down to HKD 7.4 billion from HKD 8.7 billion, and he reiterated that the company is preserving cash by suspending dividends and perpetual coupons.

Analysts pressed management on debt reduction goals, perpetual bond coupons, possible LME options, equity issuance, and whether the company could return to profitability. Management said there is no short- to medium-term net gearing target because it depends on asset disposals, cash recovery, and rates, and that there is currently no plan for a rights issue, placement, or convertible bond issuance. On perpetuals, they said any coupon actions will follow contract and regulatory requirements, and on LME rumors they told investors to rely on official announcements, not market speculation.