New World Development (0017) swung to a loss of HK$6.63 billion in continuing operations for the first six months ended June 2024, from a profit of HK$502 million a year ago, after writing down the value of properties.

Chief executive officer Echo Huang Shaomei said at a news briefing the developer will prioritize lowering its debt levels, while seeking to offload HK$26 billion of assets including residential projects and commercial properties in the current financial year.

The loss in the period was due to writedowns on its residential projects and commercial properties, according to a filing to the Hong Kong stock exchange Friday.

Hong Kong’s most indebted major developer posted a 1.62 percent drop in revenues to HK$16.79 billion, while its core operating profit recorded HK$4.42 billion, down 18 percent.

No interim dividend is declared, with a loss of HK$2.64 per share from continuing operations.

In the six months, revenues of property development in Hong Kong and Mainland China amounted to HK$1.73 billion and HK$6.64 billion, respectively. Consolidated net debt inched up to HK$124.6 billion, up 0.79 percent from the same period one year ago.

Considered one of the Big Four developers in Hong Kong, New World has faced a slew of challenges in the past year from debt pressure to frequent management changes.

It is racing to offload assets and mortgage some of its marquee properties to raise cash to alleviate its heavy debt load.

CICI CAO and BLOOMBERG

Echo Huang (second left), NWD executive directors Sitt Nam-Hoi (third left) and Edward Lau (fourth left) and NW China Land chief operating officer Benny Chan

NWD swung to loss of $6.63 billion from profit a year ago