New World Development Company (17) investor relations material

Executive summary

• Achieved a turnaround in net recurring operating profit after interest and tax, moving from loss to profit for the first time in several years, driven by strong core business, cost control, and enhanced asset disposals.

• Contracted sales reached HK$29.6 billion, exceeding the HK$27 billion target, with robust performance in both Hong Kong and Mainland China.

• Completed refinancing of HK$88.2 billion and reduced total financing cost by HK$1.1 billion year-over-year.

• Entered a binding agreement to return 11 SKIES to the Airport Authority, resulting in significant non-cash impairments and provisions.

• Temporary suspension of dividend and perpetual bond interest payments at Group level to improve financial flexibility.

Financial highlights

• Core operating profit rose 28% year-over-year to HK$7.7 billion; segment results up 15% to HK$8.1 billion.

• Net profit from recurring operations was HK$2.2 billion, marking a profit turnaround; net loss of HK$26.8 billion due to HK$18.3 billion impairment/provisions for 11 SKIES.

• G&A expenses fell 19% year-over-year to HK$2.8 billion; CapEx reduced to HK$11.8 billion, down 40% from FY 2023.

• Total debt decreased by HK$2.7 billion to HK$143.3 billion as of June 2026; net debt increased by HK$6.2 billion due to timing of cash collection.

• Average interest rate dropped from 4.8% to 4%; gross financing costs fell to HK$6.3 billion, down 15% year-over-year.

Outlook and guidance

• FY 2027 sales target maintained at HK$27 billion, with over 3,000 units planned for launch in Hong Kong.

• CapEx guidance for FY 2027 kept below HK$12 billion.

• Expect significant cash inflow in FY 2027 from C-REIT and project sales, supporting further debt reduction.

• Continued focus on debt reduction, cost control, and balance sheet optimization.

• Major projects in Hong Kong's Northern Metropolis and Mainland China progressing as planned.