New World reports first-half loss as deleveraging takes priority, dividend suspended
Developer keeps dividend suspended, rules out equity fundraising for now as Hong Kong sales rebound
New World Development posted a net loss of HK$3.73 billion (US$477 million) for the first half of fiscal 2026, as asset write-downs continued to weigh on earnings despite improving Hong Kong home sales and ongoing deleveraging efforts.
The loss narrowed 44 per cent year on year for the six months ended December 31, as impairments on investment properties eased and financing and tax expenses related to mainland projects declined, according to a Hong Kong stock exchange filing on Friday. No interim dividend was declared.
“Our team has worked very hard during this period, leading to ongoing improvements in our operations,” said CEO Echo Huang during the earnings call on Friday.
Huang said the red ink was mainly attributable to non-cash provisions, including impairments on properties under development and completed units held for sale. She stressed that underlying operations had improved and that “we have achieved good results in improving revenue and reducing costs.”
Revenue fell 50 per cent to HK$8.39 billion, dragged down by weaker construction income and fewer property handovers in mainland China.