NWD to report US$2.4 billion loss in past financial year amid property sector woes

The developer also said that it may record core operating profit from continuing operations of between HK$6.5 billion to HK$6.9 billion, representing a year-on-year decrease of 18 per cent to 23 per cent.

In its statement, NWD pointed out that it suffered from a non-cash impairment loss of as much as HK$9.5 billion owing to a reassessment of its investment and development properties in the past financial year.

“These proactive provisions are one-off non-cash and unrealised items,” an NWD spokeswoman said. “They do not affect the group’s cash flow, and will better position us for the future.”

The group also recorded a one-off non-cash loss of HK$8.3 billion from the disposal of all its stakes in NWS Holdings, a Hong Kong-listed firm with businesses ranging from construction and logistics to insurance.

The company’s annual results announcement will be published this September, according to the statement.

Shares of NWD rose 1.8 per cent to HK$7.85 on Friday, trimming its loss to 35 per cent this year. The stock is heading for a fourth consecutive annual decline.

NWD’s latest earnings guidance reflects the property sector’s struggles, as a downturn persists in the residential markets of Hong Kong and the mainland.

NWD has been battling to cut its debts and return to financial health in recent years. It has set an ambitious target of reducing its gearing ratio to below 40 per cent by 2027, from around 50 per cent at present.

The company “has completed over HK$50 billion loan arrangements and debt repayments”, the NWD spokeswoman said. “The overall financial position of the group remains solid.”