New World Development (0017) saw its loss narrowed around 44 percent year-on-year to HK$3.73 billion for the six months ended December, mainly due to lowered one-off losses, lower financing cost and lowered tax expenses for projects in the Chinese mainland as a result of less property handover.
No interim dividend was declared.
The company recorded one-off losses including revaluation deficit of investment properties of approximately HK$1.15 billion, impairment of development properties of approximately HK$2.13 billion, and other impairments of approximately HK$611 million.
Its revenue declined nearly 50 percent, dragged down by lower construction revenue and less property handover in the Chinese mainland.
NWD's total attributable contracted sales from property development projects and asset disposals amounted to nearly HK$13.8 billion, among which those from Hong Kong recorded HK$10.3 billion, mainly driven by the sales from Deep Water Pavilia, House Muse, The Pavilia Forest, The Knightsbridge, The Pavilia Farm, State Pavilia and The Legacy.
Overall contracted sales in mainland China totaled at 3.2 billion yuan (HK$3.65 billion), with the Southern Region led by the Greater Bay Area being the largest contributor, accounting for about 60 percent.
Total debt reduced HK$1.7 billion to HK$144.3 billion in the half-year period, while its net debt increased HK$2.6 billion to approximately HK$122.7 billion.
NWD's top priority is to continue to prioritise cash flow and reduce overall indebtedness, said Echo Huang Shaomei, executive director and chief executive at NWD.
The group will continue its strategic direction to focus on its core businesses of property development and property investment, and will fully leverage on its premium brands and products, effective sales and operating strategies as well as a disciplined and prudent management approach to navigate challenges and to assure sustainable business growth, she added.
