New World Development (NWD), controlled by one of Hong Kong’s richest families, warned it would report a loss of up to HK$6.8 billion (US$871 million) in its interim results to be announced next week, as weak property markets in Hong Kong and mainland China continue to present a tough operating environment for the developer.
The developer, which is scheduled to announce first half financial results on Friday, is expected to report a loss attributable to shareholders in the range of HK$6.6 billion to HK$6.8 billion for the six months ending December 2024, according to a stock exchange filing late Friday night.
That compares with a profit of HK$502 million in the same period a year earlier.
The result is mainly due to non-cash impairment losses ranging from HK$4.7 billion to HK$5.1 billion, owing to fair value changes in its investment and development properties during the period, NWD said in the filing.
The Pavilia Forest sales office in Kowloon Bay, November 2, 2024. Photo: Dickson Lee
Excluding the valuation losses, the developer said it may report core operating profit from continuing operations of between HK$4.35 billion to HK$4.55 billion, representing a year-on-year decrease of 15 per cent to 19 per cent.
“NWD’s warning reflects that it is struggling with a property market downturn,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
