This article first appeared on GuruFocus.
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Revenue: Achieved annual property sales target of 26 billion Hong Kong dollars.
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Net Income: FY25 loss attributable to shareholders was 16.3 billion Hong Kong dollars.
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Debt Refinancing: Completed 88.2 billion Hong Kong dollars bank refinancing.
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Property Sales: Deepwater Pavilion generated over 10.7 billion Hong Kong dollars in sales.
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CapEx: Decreased by 15% year on year to 12.6 billion Hong Kong dollars.
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Net Debt: Reduced by 4.5 billion Hong Kong dollars compared to December 2024.
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Net Gearing Ratio: Slightly increased to 58.1%.
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Interest Rate: Average interest rate decreased from 5% in FY24 to 4.8% in FY25.
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Operating Expenses: GNA expenses amounted to 3.5 billion Hong Kong dollars, down 16% year on year.
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Cash Flow: Improved significantly and returned to positive territory.
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Dividend Payments: Temporarily suspended to preserve cash.
Release Date: September 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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New World Development Co Ltd (NWWDF) successfully completed an 88.2 billion Hong Kong dollars bank refinancing, providing valuable time to focus on core business development.
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The company achieved its annual property sales target of 26 billion Hong Kong dollars, with strong sales in both Hong Kong and mainland China.
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Debt reduction efforts have shown initial success, with total debts and net debts declining throughout FY25.
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Retail and office leasing performed well, with K-11 Museum and arts mall in Hong Kong achieving record high foot traffic and double-digit sales growth.
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The company has made significant progress in asset disposal and farmland development, contributing to improved cash flow and financial stability.
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New World Development Co Ltd (NWWDF) reported a loss of 16 billion Hong Kong dollars for FY25, primarily due to non-cash provisions and one-off losses.
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Core operating profit decreased by 13% year on year, impacted by lower property delivery volumes and pre-opening expenses for new investment properties.
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The company has temporarily suspended dividend payments to preserve cash, which may affect investor sentiment.
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Despite debt reduction efforts, the net gearing ratio slightly increased to 58.1%, influenced by a decline in shareholders’ equity.
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Market uncertainties persist, with interest rates only cut once this year, posing risks to the company’s financial outlook.
