On September 26, NEW WORLD DEV (00017) announced its FY2025 performance results and set a sales target of HK$27 billion for FY2026. The report shows that the group achieved steady business development and continued financial improvement in FY2025 through clear strategic initiatives and efficient execution. The company recorded a core operating profit of HK$6 billion for the full year, completed HK$88.2 billion in bank refinancing, saw both total debt and net debt decline throughout the year, returned to positive cash flow, and significantly improved its financial position.

**Financial Structure Continues to Optimize with Both Total Debt and Net Debt Declining**

During the reporting period, New World successfully executed HK$88.2 billion in bank refinancing, extending the earliest maturity date of bank loans to June 30, 2028, significantly increasing short-to-medium term liquidity and providing more room for business and financial needs. On September 25, New World also announced securing an additional HK$3.95 billion in committed bank credit facilities for general financing activities, with the option to increase the scale as needed in the future.

Additionally, New World continued to optimize operational efficiency and governance capabilities while streamlining cost expenditures. Capital expenditure (CAPEX) decreased 15% year-over-year in FY2025, while operating expenses (OPEX) fell 16%. Benefiting from interest rate cuts in the US and Hong Kong, New World's average interest rate and total financing costs also declined significantly, with financing costs reduced due to both lower interest rates and debt reduction.

New World stated it will further optimize its financial structure in FY2026 to support core business development.

**Core Real Estate Business Shows Strong Performance with Multiple Projects Achieving Record Visitor Numbers**

In FY2025, NEW WORLD DEV's core real estate business performed strongly, achieving success in both Hong Kong and mainland markets. Property contract sales in both regions reached the HK$26 billion target, with Hong Kong projects contributing HK$11 billion and mainland sales reaching RMB 1.4 billion.

In the Hong Kong market, the "ARTISAN CASA" project became the city's sales champion with over HK$10.7 billion in sales, the "DOMINION" project sold out on its first day and set new per-square-foot price records on Hong Kong Island, while "PARK SEASONS" became the highest-selling pre-sale project in the Kai Tak Runway area. In the mainland market, Guangzhou's "GUANGYUE MANSION" achieved RMB 2 billion in sales on its opening day, with multiple high-end projects successfully delivered.

Meanwhile, the group's investment property segment also achieved stable growth, demonstrating the advantages of its "development + investment" dual-engine model. Hong Kong's K11 MUSEA and Art Mall saw visitor numbers rise 20% year-over-year to record highs; the newly opened Shenzhen K11 ECOAST on the mainland has attracted over 12 million visitors, while Ningbo K11 successfully introduced multiple flagship stores. During the reporting period, the K11 segment's performance grew 4%.

**Abundant Land Reserves Support Future Development with Clear New Fiscal Year Launch Plans**

New World's management noted that the first brand-new project for FY2026 - "ARTISAN CASA" in Kowloon City - sold out on its opening day, laying a solid foundation for new fiscal year performance. Looking ahead, New World holds abundant product and land reserves that are expected to provide solid support for performance growth.

For FY2026, New World Group plans to launch over 2,100 units in the Hong Kong market, including projects in Kowloon City "ARTISAN CASA" and West Kowloon, while actively leveraging agricultural land advantages in the Northern Metropolis to accelerate agricultural land value realization and capital recovery. Currently, New World's joint venture with China Merchants Shekou for the Fanling Ma Shi Road commercial-residential project has begun construction and will provide 2,300 residential units; the joint venture with China Resources Land for the Yuen Long Lung Tin Village Phase 4 project has completed land premium payments and will commence construction immediately, providing over 700 units.

In the mainland market, in addition to continuing sales of existing quality projects such as Guangzhou Triumph New World, New World Tianfu, and Shenyang Yuejing New World, the focus will be on the Shenzhen Longgang 188 project and the Shenzhen Xili urban renewal project scheduled for launch within FY2026.

Meanwhile, the group's investment property portfolio will see important expansion, with Guangzhou's second K11 - Hanxi K11 - opening on September 29, Shanghai K11 ELYSEA and other projects set to debut successively, and the Hangzhou Wangjiang New City project entering its delivery and harvest phase.