Half Year 2026 New World Development Co Ltd Earnings Call (Chinese, English) Transcript
Key Points
- New World Development Co Ltd (NWWDF) successfully implemented a debt exchange program, reducing perpetual bonds by HKD8.7 billion and USD bonds by HKD400 million, which increased shareholders' equity by HKD8 billion.
- The company's contracted sales in the first half of FY 2026 reached HKD13.8 billion, over half of the full-year target of HKD27 billion, indicating strong sales performance.
- Occupancy rates for key properties such as K11 MUSEA and K11 ATELIER in Hong Kong remain near 100%, showcasing strong demand and effective leasing strategies.
- The company achieved a significant reduction in losses, with a decrease from HKD6.6 billion in the same period last year to HKD3.7 billion in the first half of FY 2026.
- New World Development Co Ltd (NWWDF) has made progress in cost reduction, with G&A expenses down 18% year-on-year and CapEx reduced by 30% compared to the previous year.
- Despite improvements, New World Development Co Ltd (NWWDF) still reported a loss of HKD3.7 billion in the first half of FY 2026, primarily due to non-cash provisions.
- The company's net debt increased by HKD2.6 billion since June 2025, attributed to the timing of property money collection and JV accounting treatments.
- Core operating profit decreased by 18% to HKD3.6 billion due to lower property delivery volumes in Hong Kong and Mainland China.
- The company continues to suspend dividend payments and interest on group-level perpetual bonds, indicating ongoing financial constraints.
- The Mainland China property market faced challenges, with contracted sales decreasing to RMB 3.2 billion in the first half, partly due to delayed project launches.
Good afternoon. Welcome to New World Development's FY 2026 Interim Presentation Online Analysts and Investors Meeting. I am IR Director, Patrick Chong. I am the moderator for this meeting.
First of all, let me introduce our management in attendance. They are New World Development Executive Director and CEO, Ms. Echo Huang; New World Development Executive Director, Mr. Sitt Nam-Hoi; New World Development Executive Director, CFO, and Joint Company Secretary, Mr. Edward Lau; and New World Development Executive Director and New World China CEO, Mr. Benny Chan.
If you have any questions, please feel free to type into the chat box on webcast. During Q&A session, I will read out your questions.
Now I will pass the floor to Echo.
Friends from the investment community, greeting. A year ago, at the interim results announcement for FY 2025, when I first appeared before you
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
