New World Development Reports $852 Million Net Loss, Plans Debt Reduction

New World Development Co. Ltd. reported a significant interim net loss of HK$6.63 billion ($852 million) for the six months ending December, a stark contrast to a profit of HK$502 million the previous year. The losses stem from one-off impairments on investment properties and development projects amidst a prolonged downturn in Hong Kong's property market and rising interest rates. The company's core operating profit fell 18% to HK$4.42 billion, and its revenue decreased by 1.6% to HK$16.8 billion. Despite these challenges, New World Development is focusing on controlling costs and reducing debt, with plans for deleveraging and asset disposal under new CEO Echo Huang. The company has seen its market value decline drastically from $14 billion in 2019 to approximately $1.5 billion now. Investors remain cautious, concerned that the developer's financial troubles could mirror the broader crisis affecting the property sector in mainland China.