New World Development Company Limited

FY2025 attributable loss was HKD 16.3 billion, with the second half losing about HKD 9.7 billion versus HKD 6.6 billion in the first half. Core operating profit declined 13% year over year and segment results declined 4% year over year; the company also said IP segment results rose 2% excluding asset disposals and new openings, and K11 segment results rose 4%. Full-year fair value loss on investment properties was about HKD 400 million, including HKD 300 million of impairment on the office portion of 11 SKIES. G&A expense was HKD 3.5 billion, down 16% year over year, CapEx was HKD 12.6 billion, down 15% year over year and below the HKD 13 billion guidance, and total financing cost fell to HKD 7.4 billion from HKD 8.7 billion. Total debt decreased by HKD 5.7 billion year over year to HKD 146 billion, net debt fell by HKD 4.5 billion from December 2024 to HKD 120.1 billion, and net gearing was 58.1%. Management said FY2026 CapEx will be below HKD 12 billion and FY2026 annual sales target will be HKD 27 billion. The company also completed HKD 88.2 billion of bank refinancing, secured the first tranche of an additional HKD 3.95 billion committed loan facility, and said debt due within 1 year is HKD 6.6 billion.

Echo Huang framed the year around three priorities: stabilizing the core property business, improving cash flow, and tightening expense and governance discipline. She stressed that the company’s loss was heavily influenced by noncash provisions and one-off items, and repeatedly pointed to improved sales momentum, lower debt, and positive cash flow as signs of stabilization. Her tone was cautious but constructive, emphasizing prudent operations amid ongoing interest-rate and property-market uncertainty.

Edward Lau focused on refinancing, liquidity, and funding costs. He said the HKD 88.2 billion refinancing extended the earliest maturity date of certain bank loans to 30 June 2028, cut debt maturing within 2 years to HKD 29 billion from HKD 73.8 billion a year earlier, and left only HKD 6.6 billion due in FY2026. He also highlighted debt falling to HKD 146 billion, net debt to HKD 120.1 billion, average interest rate easing to 4.8% from 5%, and total financing cost dropping by HKD 1.3 billion to HKD 7.4 billion.

Analysts focused heavily on debt reduction, perpetual bond coupon deferment, and whether the company would consider equity-linked solutions. Management said there is no short- to medium-term net gearing target, no current plan for a rights issue, share placement, or convertible bonds, and no capital injection plan from the majority shareholder; they also said any future actions would follow contracts and regulatory requirements. On 11 SKIES and asset disposal, management declined to comment on rumors, but said they receive inquiries and will only sell assets when target prices are met; on debt cost, they said a 1% rate decline would save about HKD 800 million in annual interest expense.