NWD to Report US$2.4 Billion Loss Amid Ongoing Property Market Challenges
NWD's Significant Financial Loss
New World Development (NWD) is expected to report a loss attributable to shareholders in the range of HK$19 billion (US$2.4 billion) to HK$20 billion for the financial year ending June 30. This alarming preliminary estimate is largely due to the depreciation of yuan coupled with continuous interest rate hikes and non-cash impairment losses on investment properties.
Impact of Market Conditions
- NWD has faced a significant setback from investment properties and the overall downturn in the property sector.
- The group's core operating profit is expected to fall between HK$6.5 billion and HK$6.9 billion.
- Residential markets in both Hong Kong and mainland China continue to show signs of distress.
Debt Management Strategies
NWD's efforts to manage its debt obligations are critical as it aims to cut its gearing ratio below 40% by 2027. Recent efforts include:
- Completing over HK$50 billion in loan arrangements and debt repayments.
- Achieving over HK$16 billion in repayments during July and August.
The company plans to announce its annual results in September, potentially shedding further light on its financial health.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.