On September 26, New World released its 2025 fiscal year annual report. With precise project positioning, high-quality product development, and flexible marketing strategies, New World achieved simultaneous growth in Hong Kong and mainland markets, completing its annual property contract sales target of HK$26 billion, demonstrating the strong resilience of its core business. Core profit reached HK$6 billion, cash flow turned positive, and total debt decreased by HK$5.7 billion, significantly improving the company's financial position. At the earnings conference, New World also announced an increase in its contract sales target for the new fiscal year to HK$27 billion, showing confidence in market and business development.
New World Development Executive Director and CEO Wong Siu-mei (second from left), New World Development Executive Director Sit Nam-hoi (second from right), New World Executive Director, Chief Financial Officer and Joint Company Secretary Lau Fu-keung (first from right), and New World China Chief Operating Officer Chan Yiu-ho (first from left).
**Hong Kong and Mainland Markets Drive Growth Simultaneously, "Star" Projects Emerge to Support Continued Performance Growth**
During the reporting period, New World continued to achieve breakthroughs in its core business, with Hong Kong market sales reaching HK$11 billion and mainland market successfully completing the revised target of RMB 14 billion in sales. Among these, the Hong Kong market, as the group's core real estate development base, saw multiple benchmark projects achieve outstanding sales performance. The "PAVILIA COLLECTION" series continued to lead, with the Livi project, launched in May 2025, having sold over 620 units by the report's release date, with total contract sales exceeding HK$10.7 billion, successfully topping Hong Kong's annual new property sales chart. The North Point Emperor project broke through adversely during the property market downturn, becoming not only the first red-hot project in 2025 to sell out on the same day of launch but also setting the highest price per square foot record for new properties in Hong Kong Island at the time. It has cumulatively sold over 335 units with transaction value exceeding HK$3.7 billion. The Kai Tak Park Hill project achieved cumulative contract sales exceeding HK$4.8 billion, maintaining its leading position in pre-sales volume in the Kai Tak runway area. Notably, the first new project for fiscal 2026, "Cullinan West II" in Kowloon City, sold out on its opening day, providing a good start for the new fiscal year's real estate development business.
The mainland market leveraged policy benefits and quality project layouts, with the group's mainland contract sales reaching RMB 14 billion. Guangzhou Triumph New World's "Grand Cantonese Residence" achieved RMB 2 billion in sales upon opening, becoming a benchmark in the regional luxury residential market. Guangzhou New World Tianfu, Triumph Bay, and Shenyang Yue Jing New World all recorded ideal sales performance with their superior product quality and excellent location advantages, fully demonstrating the market's high recognition of the group's projects. Meanwhile, New World actively promoted project deliveries, with three high-end residential projects successfully delivered during the reporting period, further consolidating brand reputation.
Looking ahead, New World has sufficient land reserves with forward-looking layouts. In the Hong Kong market, besides existing hot-selling projects, more than 2,100 units will be launched subsequently. The company is accelerating agricultural land development in the Northern Metropolis, with the Fanling Ma Sik Road project in partnership with China Merchants Shekou already under construction, expected to launch for sale as early as fiscal 2027. The first phase of the Yuen Long South project in partnership with China Resources Land has completed land premium payment and is expected to begin pre-sales as early as fiscal 2027. In the mainland market, focus is on advancing the Shenzhen Longgang 188 project, which has a total gross floor area of 650,000 square meters and can provide 3,000 residential units. The Shenzhen Xili urban renewal project has also completed demolition work, with the project implementation entity receiving formal government approval, scheduled for launch in 2026, injecting strong momentum for sustained growth in the sector.
In fiscal 2025, New World Group's investment property segment achieved simultaneous improvements in occupancy rates, foot traffic, and sales, with K11 segment performance up 4% year-over-year. Among these, Hong Kong's K11 MUSEA and K11 Art Mall both achieved record-high foot traffic for the fiscal year. Mainland investment property projects quickly captured regional markets through differentiated positioning and introduction of flagship store resources. Shenzhen K11 ECOAST rapidly became a new cultural and tourism hotspot in the Greater Bay Area after opening, attracting over 12 million visits. New World also announced that its second K11 in Guangzhou - Hanxi K11 - will open on September 29, which will provide continued property investment income for the group.
**"Seven Debt Reduction Strategies" Show Results, Enhanced Liquidity Achieves Financial Stabilization**
In fiscal 2025, New World Group focused on financial health and strategy implementation, achieving multiple breakthroughs including debt reduction, liquidity improvement, and effective cost control through the effective execution of "seven debt reduction strategies," providing solid financial support for core business development.
During fiscal 2025, the company successfully completed HK$88.2 billion in bank refinancing, alleviating short-term debt repayment pressure. On September 25, it also successfully secured the first additional HK$3.95 billion in committed bank loan facilities, further broadening funding sources. Benefiting from business-end capital recovery and financing optimization, New World achieved annual core operating profit of HK$6 billion, positive cash flow, total debt reduction of HK$5.7 billion compared to the previous fiscal year, and net debt reduction of HK$3.6 billion. The financial structure continued to optimize, with overall financial condition trending toward stability.
The group streamlined capital expenditure and administrative expenses, with fiscal 2025 capital expenditure (CAPEX) down 15% year-over-year and operating expenses (OPEX) reduced by 16%. Meanwhile, benefiting from interest rate cuts in the US and Hong Kong, the group's average interest rate declined to 4.8%. Combined with debt reduction, total financing costs decreased by HK$1.3 billion compared to the previous fiscal year, significantly reducing financial expense pressure.
Looking ahead to the new fiscal year, New World Development Executive Director and CEO Wong Siu-mei stated: "Besides maintaining good debt and cost control, we will accelerate capital recovery through quality project sales, unlock the value of Northern Metropolis agricultural land, and improve investment property rental returns, among other measures, to improve our financial position across multiple dimensions. Going forward, New World will continue to focus on three major directions: 'focusing on core business, actively managing finances, and improving operational efficiency,' seizing opportunities from falling interest rates and market recovery to fully promote sales and capital recovery. At the same time, we will optimize our financial structure with a 'steady progress' approach. We are confident that profit performance will gradually improve as market conditions recover, building a solid foundation for the group's long-term development."
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