进口食品连锁便利店专家团队...

Leading professional group in the network,security and blockchain sectors

New World Development Says Will Raise Cash, Cut Debt After...

EnidBilliot554319273 2025.03.02 10:57 查看 : 5

chikka-tirupati-tempel-hindu-tempel-der-Investors nervous of potential for property sector crisis

*

Loss follows net profit a year ago

*

High debt levels make it vulnerable to interest rate hikes

(Adds management comment throughout, updates financial figures in paragraph 7, 11-13, adds impact on sector in paragraph 19-20)

By Clare Jim

HONG KONG, Feb 28 (Reuters) - New World Development , one of the biggest property developers in Hong Kong, reported an interim net loss of HK$6.63 billion ($852.45 million) on Friday, following a prolonged property downturn and high interest costs.

CEO Echo Huang, who has led the company since November, said she would increase cashflow and cut debt by accelerating asset sales and lowering capital expenditure.

Financial markets are watching New World closely because any deepening of its debt problems could trigger a crisis reminiscent of the one in mainland China that started in 2021 and led to scores of company defaults.

After around three years of constrained cash flows, New World has had two new CEOs in short succession. Huang took over from Eric Ma who held the job for two months after Adrian Cheng, a member of the third-generation of the founding family, resigned in September.

The net loss for the first half ended in December, which counts only continuing operations, is mainly driven by impairment and fair-value losses.

That compares with a HK$502 million net profit a year ago and follows a record HK$11.8 billion net loss for the full 2023/2024 financial year.

Excluding non-cash items such as impairments and fair value changes, core operating profit was HK$4.4 billion, 18% lower than a year ago.

Hong Kong developers enjoyed decades of growth until the property market, a pillar of the economy, was repeatedly hit by crises, including anti-government protests in 2019, COVID-19 and a slow economic recovery.

New World's market value has shrunk to about $1.5 billion from $14 billion in mid-2019.

Higher interest rates are also hitting it harder than its peers because it has some of the highest net gearing in the sector, at 85% at end-June if perpetual bonds are included, following its rapid expansion in both Hong Kong and mainland China before the pandemic.

WAITING FOR RIGHT PRICE

Huang told an earnings conference call on Friday the company is in discussion with potential buyers of several assets, and it will only sell "when the price is right".

The developer had a total of Forum Syair HK$146.5 billion of loans and bonds as of end-December, while its cash level was HK$21.9 billion. The figures dropped by HK$5.1 billion and HK$6.1 billion, respectively, from end-June.

New World had HK$35.4 billion of perpetual bonds outstanding. The perpetual bonds, which are typically more expensive than those with a defined term, are trading at between 29 and 57 cents to the dollar, implying an imminent default or a bond restructuring.

The company did not give an update on its bond repayment plans, but reiterated it was not discussing any holistic debt restructuring plan.

In a statement, it said it had obtained waivers from banks during the reporting period to comply with certain financial covenants. It said it was in active dialogue on refinancing terms and expected the waivers to be extended.

Its 6.25% perpetual bond has a $40.6 million coupon payment due on March 7, and the $345 million, 6.15% notes will have their coupon reset to around 10.5% unless New World redeems the securities by June 16, which could add to the company's refinancing costs.

Any increase in its debt difficulties would be likely to weigh on Hong Kong's property market as a whole. Poor sales, shrinking valuations and a near shut-down of bank lending have already squeezed its smaller peers.

S&P Global Ratings has said any defaults or restructurings by a major developer in the city would halve new home sales volumes in 2025 and send home prices 5% to 7% lower.

Home prices in Hong Kong, one of the world's most unaffordable cities, have already fallen by nearly 30% from a 2021 peak. ($1 = 7.7776 Hong Kong dollars) (Reporting by Rajasik Mukherjee and Clare Jim; Editing by Anne Marie Roantree, Muralikumar Anantharaman and Barbara Lewis)
编号 标题 作者
3923 How To Listen Sex Music Porn The Spartan Way LashaySholl0513
3922 Listen Sex Music Porn Like A Pro With The Help Of These 3 Tips MohammedDpj19439
3921 4 Ways German Porno Will Improve Your Sex Life KelleRuss9104607645
3920 Gifts For Senior Women - Senior Women's Top Gift Ideas And Tips DianeBegay701142390
3919 Interesting Facts I Guess Yoս Never Knew Aƅout Mother Porn VedaGalvin3835294
3918 Answers About Barley ShanelHulett90398726
3917 How To Listen Sex Music Porn Business Using Your Childhood Memories IndianaDao6387727163
3916 To Click On Or To Not Clicк On: Alexis Andrews Porn Αnd Running A Blog LarryLarue999235710
3915 The World Of Gemstones: Exploring Their Beauty, Value, And Significance WaylonL2994584381757
3914 7 Ways To Listen Sex Music Porn Without Breaking Your Piggy Bank SommerMgg54659309771
3913 What Are Some Cajun Words That Begin With The Letter T? LonnaHinkle245867885
3912 Ѕomething Fascinating Occurred Аfter Ꭲaking Action On These 5 Detroit Ᏼecome Human Porn Ideas SwenTennant72796
3911 The Group Released A Brand New Single CandidaUyp72897731833
3910 Situs Demonstrasi Slots PG Soft Gratis: Tutorial Komplet Coba Game Slots Tanpa Ada Resiko AmadoCaird41007090
3909 Understanding Crystals And Gemstones: Their Beauty, Uses, And Value NoeliaRohr57053502350
3908 Nine Creative Ways You Possibly Can Improve Your Music Creation TravisUwo22101621
3907 If A Person Is Now 31 Years Old And Gets A Bill From Probation Office For A Fine When He Was A Minor What Is The Statute Of Limitations? KatharinaMcknight73
3906 How To Listen Sex Music Porn With Minimum Effort And Still Leave People Amazed DawnAkhurst0316214
3905 Purple Disposable Lenses And Pink Eye Contacts At The Nightclub RudyKitterman578
3904 Answers About Marathi HaroldKelley16778900