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.

• Core operating profit declined 18% year-over-year to HK$3,636 million.

• Major debt exchange completed, reducing perpetual bonds by HK$8.7 billion and senior secured notes by HK$400 million, boosting shareholders' equity by HK$8 billion.

• No interim dividend declared for FY2026, supporting deleveraging and financial flexibility.

Financial highlights

• 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, with a net gearing ratio of 59.7%.

• Total debt reduced by HK$1.7 billion to HK$144.3 billion as of December 2025.

• G&A expenses dropped 18% year-over-year to HK$1.5 billion.

Outlook and guidance

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

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

• Over 1,300 units to be launched in Hong Kong in H2 FY2026, supporting full-year sales targets.

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

• Hotel market outlook is cautiously positive, supported by events and tourism, but faces rate pressure.