New World Development (NWD) reported a turnaround in its business for the year ended 30 June 2026, underpinned by stronger operating performance, disciplined cost control and an enlarged asset-disposal programme designed to curb leverage.

Core earnings rebound • Core operating profit rose 28 % year on year to HKD 7.70 billion, while segment results advanced 15 % to HKD 8.10 billion. • Net profit from recurring operations reached HKD 2.20 billion, swinging the group back to profitability. • Statutory results were weighed by non-cash items, including HKD 18.30 billion of impairment and provisions for the 11 SKIES project and HKD 9.40 billion of development-property write-downs, resulting in a loss attributable to shareholders of HKD 28.10 billion.

Tight cost discipline • Group general & administrative expenses fell 19 % to HKD 2.80 billion. • Capital expenditure declined 6 % to HKD 11.80 billion, continuing a downward trajectory from FY-2024 as management prioritises short cash-cycle projects, joint-venture funding and centralised procurement.

Debt-reduction roadmap • Total debt fell to HKD 143.30 billion at end-June 2026, versus HKD 146.00 billion a year earlier and HKD 151.60 billion at end-June 2024. • Net debt rose to HKD 126.30 billion, reflecting delayed cash collections on contracted sales and joint-venture timing effects; net gearing increased to 68.3 %. • Average borrowing cost eased to 4.0 %, down from 4.8 % in FY-2025. • A HKD 20.00 billion debt-exchange exercise and an additional HKD 1.00 billion credit line bolstered liquidity, while dividend and PCS distributions remain suspended to support deleveraging.

Asset-light initiatives gain traction • NWD agreed a C-REIT spin-off of Shanghai K11 Art Mall and K11 Atelier NWT, valuing the assets at RMB 4.60 billion and targeting RMB 3.20 billion in net proceeds in FY-2027. • Seven measures are in place to cut indebtedness, including enhanced disposals, farmland conversions within Hong Kong’s Northern Metropolis and collaboration with state-owned partners on mainland projects.

Solid development sales despite market headwinds • Group attributable contracted sales reached HKD 29.60 billion, surpassing guidance; Hong Kong contributed HKD 22.10 billion. • Mainland China projects recorded RMB 6.80 billion of contracted sales, driven by Guangzhou’s The Central Park-View and Shenzhen’s New World 188 Well Spring.

Investment property resilience • Investment-property revenue grew 6 % to HKD 5.30 billion; segment profit increased 7 % to HKD 3.50 billion. • Hong Kong flagship K11 MUSEA achieved ~99 % occupancy, boosting footfall and mall sales by 23 % year on year. • Mainland occupancy remained robust, with Shanghai K11 Art Mall at ~95 % and Wuhan Guanggu K11 at ~94 %.

Pipeline and outlook NWD retains a diversified landbank, including approximately 12.40 million sq ft of farmland in the Northern Metropolis earmarked for phased conversion, and plans new K11 openings in Shanghai and Hangzhou from late-2026 onwards. Management reiterated its focus on cash flow generation, capex prudence and further asset-light transactions to strengthen the balance sheet while supporting long-term value creation.