New City Development Group Limited (“New City Dev”) reported a HK$154.32 million net loss for the six months ended 30 June 2026, a sharp deterioration from the HK$15.27 million loss recorded a year earlier. The reversal was driven by a 74.2% plunge in revenue and a surge in finance costs.

Revenue contracted to HK$7.32 million (1H 2025: HK$28.31 million). Property-related management services contributed HK$1.21 million, while the newly added construction-materials supply-chain segment generated HK$6.11 million. No rental income was recorded during the period.

Gross profit fell to HK$0.56 million from HK$25.56 million, reflecting a margin squeeze to 7.6% (1H 2025: 90.3%) as cost of goods sold and services provided rose to HK$6.76 million (1H 2025: HK$2.75 million).

Operating expenses remained high at HK$27.18 million, only marginally lower than the HK$31.47 million posted a year earlier. Other net losses narrowed to HK$3.95 million (1H 2025: HK$7.55 million), mainly due to a HK$3.09 million fair-value deficit on listed equity investments and a HK$0.86 million foreign-exchange loss.

Finance costs escalated to HK$123.77 million (1H 2025: HK$2.25 million), reflecting higher interest expenses on bank borrowings, notably the extended RMB338.93 million loan from Bank of Guangzhou, which carries rates of 7.03%–7.15% and has portions overdue.

Total assets stood at HK$1.56 billion (31 Dec 2025: HK$1.47 billion), supported by HK$565.84 million of investment properties and HK$517.83 million of properties under development and held for sale. Net current assets shrank to HK$6.56 million (31 Dec 2025: HK$166.84 million).

Total liabilities rose to HK$1.60 billion (31 Dec 2025: HK$1.37 billion). With equity slipping to negative HK$35.73 million, the gearing ratio increased to 94.7% (31 Dec 2025: 89.2%). Cash and bank balances were HK$5.57 million, while current borrowings reached HK$416.69 million, all due within 12 months.

During the period, the company issued 27.65 million new shares at HK$0.385 each, raising HK$10.35 million net; HK$7.40 million has been applied to working capital, with the balance earmarked for further operating needs by end-2026.

Management continues negotiations with authorities on compensation for the requisition of Guangzhou’s Changliu Industrial Park and awaits final approvals to commence the Luoyang mixed-use development. No interim dividend was declared.