Author Clare Jim
Hong Kong (Reuters) -new World Development, one of the largest assets of assets in Hong Kong, reported on Friday a temporary net loss of 6.63 billion HK ($ 852.45 million), after prolonged fall in assets and high interest costs.
Executive director Echo Huang, who has been running a company since November, said he would increase financial flow and reduce the debt by accelerating the sale of property and reducing capital expenditures.
The financial markets are carefully observed by the new world because any deepening of their debtor problems could initiate a crisis that reminiscent of the one in continental China, which began in 2021 and led to the results of non -payment of the company.
After about three years of limited financial flows, New World had two new executive director in a short succession. Huang took over Eric, who did the job two months after Adrian Cheng, a member of the third generation of the founder family, resigned in September.
The net loss for the first half ended in December, which counts only continuing, mostly guided by the diminutive and loss of fair value.
This is compared to a net profit of $ 502 million a year ago and follows a record net loss of 11.8 billion HK for the entire financial year 2023/2024.
With the exception of not -old items such as damage and changes in fair values, the basic operational profit was 4.4 billion HK, 18% lower than a year.
Hong Kong developers have enjoyed growth for decades as long as the real estate market, a pillar of economics, has been repeatedly affected by crises, including anti-Vlad’s protests in 2019, Coid-19 and a slow economic recovery.
The new market value has decreased to around $ 1.5 billion with USD $ 14 billion in mid -2019.
Larger interest rates also hit more than their peers because it has some of the highest net transmission in the sector, 85% at the end of June if permanent bonds are included, after rapid expansion and Hong Kong and China in the continental country before the pandemic.
Waiting for the correct price
Huang said a conference call on Friday that the company is discussed with potential customers of several assets, and it will only be sold “only when the price is correct”.
The developer had a total of 146.5 billion HK loans and bonds from the end of December, while his monetary level was 21.9 billion HK. The data fell by 5.1 billion HK, or 6.1 billion HK, from the end of June.
The new world had an extraordinary HK $ 35.4 billion of eternal bonds. Permanent bonds, which are usually more expensive than those with a defined term, trade between 29 and 57 cents to dollars, which implies direct restructuring or restructuring bonds.
