NEW WORLD DEV (00017) significant cost control efficiency, multiple business highlights prominent, mid-term core operating profit of 4.416 billion Hong Kong dollars.

NEW WORLD DEV (00017) announced its 2024/2025 interim performance, achieving revenue of HK$16.789 billion, gross profit of HK$6.675 billion, and core operating profit of HK$4.416 billion. The group continues to tightly control capital expenditure and administrative and operational expenses, reducing them by approximately 35% and 9% respectively on an annual basis. As of December 31, 2024, the group has total available funds of approximately HK$34 billion, including cash and bank balances of around HK$22 billion and available bank loans of around HK$12 billion. Considering the non-cash nature of development property erosion losses and equity-settled erosion losses and changes in the fair value of investment property, the total amount is HK$4.951 billion. The group's attributable loss to shareholders from continuing operations is HK$6.633 billion. The loss is mainly due to rapid changes in market macro factors over the past six months, including but not limited to favorable housing policies introduced in Hong Kong and mainland China, lower than expected interest rate cuts, and consumer cautiousness amidst uncertainty from changes in policies in the United States government, resulting in a decrease in market value of development and investment property projects. Additionally, the loss for this period is also due to the absence of one-off gains from redemption of fixed-rate bonds and transfer of investment property totaling HK$1.951 billion up to December 31, 2023. The Hong Kong property market is becoming more active driven by favorable policies. The group's property development revenue in Hong Kong is HK$1.734 billion and the segment's performance is HK$705 million, with contract sales totaling around HK$5.222 billion. The "Pavilia Bay" project in the Kai Tak runway area has performed well, with approximately 760 units sold during the presale phase, totaling 514 units sold and contract sales of nearly HK$3.5 billion, making it the best-selling new property in the Kai Tak runway area. Furthermore, the group's investment income from Hong Kong properties is HK$1.615 billion, with several malls under its portfolio performing well. For example, K11 Art Mall has achieved a 2% annual increase in foot traffic, continuously introducing new brands to enhance market competitiveness. The mainland China property market is gradually warming up under policy support, and the group has accurately seized opportunities. The group's property development revenue in mainland China is HK$6.644 billion and the segment's performance is HK$2.699 billion, with overall contract sales of approximately RMB 7.5 billion. The Greater Bay Area market has shown outstanding performance, with several projects leading the regional market in sales performance. For example, the Guangzhou Triumph Shanghai New World's Guangyue Observation Mansion achieved RMB 2 billion in sales right after its launch; multiple projects in the Liwan district of Guangzhou also performed excellently in the market. Meanwhile, the group's property investment projects in mainland China have stable rental rates, and several new projects are set to open, further enhancing recurring rental income.