New World Development (NWD) reported a HK$26.82 billion loss for the twelve months ended 30 June 2026, driven by HK$18.32 billion of non-cash impairments and provisions tied to the termination of its 11 SKIES project at Hong Kong International Airport. Stripping out one-off charges, recurring net profit turned positive at HK$2.23 billion—marking the group’s first underlying profit in several years—while core operating profit rose 28.0% year on year to HK$7.70 billion.

Revenue fell 28.0% to HK$19.99 billion amid fewer project handovers in Mainland China and a sharp decline in construction income, partly offset by higher residential deliveries in Hong Kong. Despite the top-line contraction, gross margin improved to 47% from 42%, cushioning the 19.0% drop in gross profit to HK$9.43 billion. General administrative and other operating expenses were cut 19.0% under the company’s cost-control programme.

SEGMENT PERFORMANCE • Hong Kong Property Development: Revenue HK$5.12 billion; segment profit HK$3.83 billion, supported by The PAVILIA COLLECTION, The Legacy and other projects. • Mainland Property Development: Revenue HK$5.83 billion; segment profit HK$2.18 billion, underpinned by THE SILLAGE and projects in Guangzhou and Shenyang. • Hong Kong Investment Properties: Revenue HK$3.42 billion; segment profit HK$2.62 billion, with K11 MUSEA mall sales up 23% and 99% occupancy. • Mainland Investment Properties: Revenue HK$1.92 billion; segment profit HK$0.86 billion; major K11 assets maintained high occupancy. • Hotels: Top-line HK$1.46 billion; revenue grew across Hong Kong and Southeast Asia on tourism recovery.

SALES AND LAND BANK Attributable contracted sales reached HK$29.60 billion, of which HK$22.10 billion came from Hong Kong projects led by The Pavilia Farm III and Deep Water Pavilia. Mainland contracted sales totalled RMB6.8 billion, with the Greater Bay Area contributing 53%. The group holds 2.49 million sq ft of Hong Kong development land and 2.78 million sq m in Mainland China, alongside 12.45 million sq ft of New Territories agricultural land earmarked for conversion.

BALANCE-SHEET METRICS • Capital expenditure: HK$11.80 billion, down 6%. • Total capital resources: HK$33 billion (HK$17 billion cash; HK$16 billion undrawn facilities). • Total debt: HK$143.27 billion, trimmed by HK$2.70 billion; net debt increased HK$6.19 billion to HK$126.30 billion. • Net-debt-to-equity: 68.3% (up 10.2 ppts). • Financing costs fell 13.1% to HK$4.71 billion. • No final dividend declared.

STRATEGIC PRIORITIES Management will focus on its “Seven Measures to Reduce Indebtedness”, including accelerated property sales, asset disposals, farmland conversion, recurring-income growth, capex discipline, suspension of share dividends and perpetual securities distributions, and continued treasury optimisation.

POST-YEAR EVENTS In September 2026 NWD applied to list a RMB3.82 billion REIT on the Shanghai Stock Exchange, backed by Shanghai Hong Kong New World Tower; the group expects net proceeds of roughly RMB3.24 billion. The company also announced asset disposals exceeding RMB1.70 billion in Ningbo and Hangzhou.

OUTLOOK NWD anticipates steady Hong Kong property demand supported by capital-market recovery and government talent schemes, while Mainland policies are expected to stabilise the housing market and favor high-quality developments. Management remains committed to deleveraging and enhancing cash flow through project sales, land-bank optimisation and further monetisation of investment properties.