Hong Kong-based property developer New World Development said on Friday it expects to swing to a loss for the first half of fiscal 2025, as it struggles with lower expected realisable prices for its development properties.
The embattled property developer has the highest debt among its Hong Kong peers at HK$199 billion ($25.61 billion), JPMorgan data showed in July last year.
Meanwhile, speculations arose last month as Bloomberg reported on a potential bond default, even though the company said it “continues business as usual”.
New World expects to record a loss attributable between HK$6.60 billion and HK$6.80 billion ($875.07 million) from its continuing operations for the first half of fiscal 2025.
That compares to a profit attributable of HK$502 million recorded in the previous corresponding period.
The company forecast an impairment loss of HK$3.30 billion to HK$3.50 billion on development properties held by the group and its units in the first half of fiscal 2025, reflecting continued struggles in the Chinese property sector.
($1 = 7.7708 Hong Kong dollars)
