New World Development's fiscal year 2026 performance exceeded its target, with contracted sales of HK$29.6 billion and core operating profit increasing by 28%.

Currently, the real estate industry is in a critical period of deep adjustment and structural transformation. Accelerating the construction of a new model of real estate development and promoting the industry towards high-quality development are important focuses for promoting the stable and healthy operation of the real estate market.

On September 30, New World Development released its performance announcement for fiscal year 2026. During the reporting period, the company achieved contracted sales of approximately HK$29.6 billion, significantly exceeding the full-year target of HK$27 billion; core operating profit was HK$7.7 billion, a year-on-year increase of 28%; recurring operating net profit after interest and tax was approximately HK$2.2 billion, turning a loss into profit for the first time in three years. Sales and profits rebounded simultaneously, indicating that the company's operations are gradually stabilizing.

Since Huang Shaomei became the executive director and chief executive officer of New World Development, the management team of New World Development has focused on its core business and promoted the company's operations to stabilize. As an established Hong Kong company, New World Development has demonstrated strong operational resilience through business optimization and asset adjustment.

New World Development Executive Director and Chief Executive Officer Huang Shaomei

Contracted sales amounted to HK$29.6 billion, exceeding annual target

Against the background of the release of the effects of policies to stabilize the property market and the rebound in market activity in core cities, New World Development focused on its main real estate business, grasped the market window, and its sales performance continued to improve. In fiscal year 2025, New World Development achieved contracted sales of HK$26 billion, successfully completing the annual target; the target for fiscal year 2026 was raised to HK$27 billion, and finally achieved HK$29.6 billion.

As for the Hong Kong market, against the background of talent inflow, solid rental performance and gradual digestion of residential supply, the Hong Kong property market is showing a recovery trend. New World Development's multiple real estate projects have performed steadily in sales. Among them, the PAVILIA COLLECTION project has achieved outstanding sales and was sold out immediately after its launch, with prices continuing to set new highs in the area. The sales of new projects such as Pavillion and Shunyun launched in the second half of the year are also satisfactory. In fiscal year 2026, the Hong Kong market contributed approximately HK$22 billion in contracted sales, the highest since fiscal year 2021.

In the mainland market, New World is deeply involved in the Greater Bay Area and first-tier core cities, seizing the dividends of the rebound in core cities. Taking Shenzhen as an example, New World No. 188 became the first real estate project in eastern Shenzhen to have a transaction volume of more than 100 units in this round of recovery. Relying on its high-quality products and reputation, New World's existing projects in Guangzhou, Shenyang and other areas also maintain a solid sales momentum.

New World is deeply involved in the Greater Bay Area and first-tier core cities to seize the dividends of the property market recovery

For fiscal year 2027, New World has set a sales target of HK$27 billion to consolidate its performance growth momentum; at the same time, it maintains sufficient land reserves to provide support for development in the following 3-5 years.

Core operating profit increased, turning losses into profits for the first time in three years

In the context of the industry shifting from scale expansion to quality and efficiency, improving the profitability of the main business has become the key to the steady development of real estate companies. New World Development's main business remained stable overall and returned to growth in fiscal year 2026. The core operating profit was HK$7.7 billion, a year-on-year increase of 28%, the best result in the past three fiscal years. The operation turned a profit and achieved profit for the first time in three years.

Core operating profit reflects the stress resistance of the main business income structure. This is the result of the New World management team's focus on improving quality and efficiency, and improving core business profitability and operating efficiency. New World's long-standing dual-track strategy of "commercial operations + residential sales" demonstrates the foundation for steady growth.

In fiscal year 2026, the group's investment property segment performance increased by approximately 7% year-on-year, of which K11 business grew by approximately 9%; Hong Kong's major investment properties maintained high occupancy rates, with the occupancy rates of K11 MUSEA and K11 Art Mall and the Victoria Dockside K11 ATELIER office building approaching 100%. Rental income is the "ballast stone" through the cycle, providing the group with a more stable cash flow base.

K11's business grew by about 9%, and rental income provided the group with a stable cash flow base.

At the same time, New World Development actively expanded financing channels and launched the first Hong Kong-owned C-REIT, which has been accepted by the Shanghai Stock Exchange. This will further broaden asset realization channels, enhance capital liquidity, and provide strong support for long-term development.

At present, the development path of New World is clearer. Through sales collection, asset realization and operational improvement, the endogenous driving force is constantly increasing. In the past two years, the management team has maintained strategic focus, continued to improve operating efficiency, and promoted high-quality development of the enterprise. Currently, the real estate industry is accelerating its shift towards focusing on quality and efficiency. Companies that can continue to convert high-quality assets into stable cash flow will gain more development opportunities in the industry transformation. The adjustment of New World Development's business thinking also provides a reference for the stable and healthy development of the industry.