New World Development has recorded losses for the second consecutive year, as debt pressure and a sluggish real estate market impact the embattled Hong Kong property developer.
According to Bloomberg, documents submitted to the Hong Kong Stock Exchange on Friday (September 26) show that the developer, controlled by the billionaire Cheng family, posted a loss from continuing operations of HK$16.3 billion (S$2.7 billion) for the financial year ending June 30, mainly due to one-time impairment provisions and losses. The loss widened from HK$11.8 billion in the previous year.
This earnings report marks another turbulent year for the property company, which has been working to ease its liquidity crisis amid a downturn in the property market.
New World Development CEO Ellie Tang stated that the group will make every effort to reduce debt, including accelerating property sales and disposing of assets. The company plans to raise HK$27 billion in the financial year ending next June through contracted property sales and asset disposals.
In the annual report, Tang emphasized that the group’s top priority is to ensure cash flow and lower its overall debt level.
In a statement, New World Development said that, after revising the value of the 11 Skies airport mall, it made an impairment loss provision of HK$2.7 billion. The company said it is discussing adjustments to the project contract arrangement with the Hong Kong Airport Authority.
Financial reports show that as of the end of June, the group’s consolidated net debt decreased to HK$120.1 billion from HK$123.7 billion the previous year.
According to Bloomberg, documents submitted to the Hong Kong Stock Exchange on Friday (September 26) show that the developer, controlled by the billionaire Cheng family, posted a loss from continuing operations of HK$16.3 billion (S$2.7 billion) for the financial year ending June 30, mainly due to one-time impairment provisions and losses. The loss widened from HK$11.8 billion in the previous year.
This earnings report marks another turbulent year for the property company, which has been working to ease its liquidity crisis amid a downturn in the property market.
New World Development CEO Ellie Tang stated that the group will make every effort to reduce debt, including accelerating property sales and disposing of assets. The company plans to raise HK$27 billion in the financial year ending next June through contracted property sales and asset disposals.
In the annual report, Tang emphasized that the group’s top priority is to ensure cash flow and lower its overall debt level.
In a statement, New World Development said that, after revising the value of the 11 Skies airport mall, it made an impairment loss provision of HK$2.7 billion. The company said it is discussing adjustments to the project contract arrangement with the Hong Kong Airport Authority.
Financial reports show that as of the end of June, the group’s consolidated net debt decreased to HK$120.1 billion from HK$123.7 billion the previous year.