NWD reports losses for second straight year as CEO says debt reduction efforts yield results
The developer’s revenue fell 23 per cent to HK$27.68 billion, while core operating profit declined 13 per cent to HK$6.01 billion
New World Development (NWD), controlled by one of Hong Kong’s richest families, reported losses for the second consecutive year even as its CEO assured shareholders that there was no need for “undue concern”.
The developer, which has been battling liquidity problems for the past three years, said losses from continuing operations amounted to HK$16.3 billion (US$2.09 billion). This was more than 38 per cent higher than the HK$11.8 billion loss in the previous financial year from July 2023 to June 2024.
In September last year, NWD reported losses attributable to shareholders amounting to HK$19.68 billion.
“Our debt reduction efforts have yielded initial results,” said NWD CEO Echo Huang Shaomei, who was appointed to her post in November.
“Both total debt and net debt declined while cash flow improved significantly and returned to positive territory, reflecting the group’s gradually stabilising financial position, Huang said.
“I understand that our recently announced full-year results show a loss of HK$16 billion on the books. However, there is no need for undue concern, as this number is primarily impacted by several non-cash provisions and losses of a one-off nature.”