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Peggy Ye

Aileen Chuang

New World Development posted a net loss of HK$3.73 billion (US$477 million) for the first half of fiscal 2026, as asset write-downs continued to weigh on earnings despite improving Hong Kong home sales and ongoing deleveraging efforts.
The loss narrowed 44 per cent year on year for the six months ended December 31, as impairments on investment properties eased and financing and tax expenses related to mainland projects declined, according to a Hong Kong stock exchange filing on Friday. No interim dividend was declared.
“Our team has worked very hard during this period, leading to ongoing improvements in our operations,” said CEO Echo Huang during the earnings call on Friday.
Huang said the red ink was mainly attributable to non-cash provisions, including impairments on properties under development and completed units held for sale. She stressed that underlying operations had improved and that “we have achieved good results in improving revenue and reducing costs.”

Revenue fell 50 per cent to HK$8.39 billion, dragged down by weaker construction income and fewer property handovers in mainland China.
“In 2025, we capitalised on the recovery in Hong Kong’s real estate market to seize new opportunities,” Huang said in the filing. “In a volatile market, our focus is not only on growing our business, but also on the continuous optimisation of our financial structure.”
Deleveraging remains central to the group’s strategy.
Total debt declined by HK$1.7 billion to HK$144.3 billion. However, net debt rose HK$2.6 billion to HK$122.7 billion, with the gearing ratio increasing to 59.7 per cent from 58.1 per cent a year earlier.
Chief financial officer Edward Lau attributed the rise to the accounting treatment of Hong Kong joint ventures, as well as repayments of construction loans tied to those projects.
Management has stepped up liquidity measures, including bank refinancing and residential asset sales, raising more than HK$34.8 billion from property disposals since early 2025.
“When cash flow is stable, we will continue to reduce debt – that’s our topmost goal,” Lau said, adding there were currently no further debt exchange plans.
Addressing market speculation, Huang said the company had no plans for share placements or rights issues.
She added that the group’s seven debt-reduction initiatives were “working”, supported by improving contracted sales and a steady recovery in leasing across its mall and office portfolio. Since early 2025, NWD has raised more than HK$34.8 billion through property disposals and sales.
Hong Kong contracted sales reached HK$10.3 billion in the first half, the highest level since 2021, with the Deep Water Pavilia project 93 per cent sold. More than 1,300 units are scheduled for launch in the second half.
Shares of NWD closed 3.6 per cent higher to HK$10.86 on Friday ahead of the earnings announcement. The stock has gained 49.4 per cent so far this year, as Hong Kong’s housing market shows signs of stabilising.
However, Morgan Stanley gave the embattled developer a “reduce” rating with a target price of HK$6.50, according to a report earlier this month.
The results come as its parent, Chow Tai Fook Enterprises, faces continued investor scrutiny over its capital allocation and restructuring strategy amid market speculation about potential external investment.
Hong Kong’s property sector remains under pressure from elevated borrowing costs and cautious buyer sentiment, although recent mortgage easing has supported transaction volumes.
NWD plans to launch about 1,300 units in the next six months, including the low-density luxury project Pavilia Rosa on Rose Street in Kowloon, Grand Austin Bohemian in Tsim Sha Tsui, and Phase 3 of The Pavilia Farm in Tai Wai, which will provide 540 units.
“Many prospective buyers are shifting their stock market profit into the real estate market,” Huang said.


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Developer keeps dividend suspended, rules out equity fundraising for now as Hong Kong sales rebound


Developer keeps dividend suspended, rules out equity fundraising for now as Hong Kong sales rebound.


New World reports first-half loss as deleveraging takes priority, dividend suspended

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Developer keeps dividend suspended, rules out equity fundraising for now as Hong Kong sales rebound

Developer keeps dividend suspended, rules out equity fundraising for now as Hong Kong sales rebound