NWD Faces US$2.4 Billion Loss in Financial Year Due to Property Market Struggles
Saturday, 31 August 2024, 09:34
NWD's Financial Setback
New World Development (NWD) anticipates a staggering loss attributable to shareholders, between HK$19 billion (US$2.4 billion) and HK$20 billion for the fiscal year ending June 30. This downturn is driven by numerous factors affecting the property market both in Hong Kong and mainland China.
Impact of Economic Conditions
- The company reported a non-cash impairment loss of HK$9.5 billion related to investment properties.
- A significant loss of HK$8.3 billion arose from the sale of NWS Holdings shares.
- Interest rate hikes and yuan depreciation have compounded challenges.
Future Outlook and Strategies
Despite the anticipated losses, NWD plans to reduce its gearing ratio below 40% by 2027 and has secured over HK$50 billion in loan arrangements. Continued improvements on debt obligations signal a cautious optimism.
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.