Business
NWD Anticipates $2.4 Billion Loss in Turbulent Property Market, Assures Non-cash Impairment Loss Will Not Impact Core Profit
NWD announces a loss of US$2.4 billion in the previous fiscal year due to challenges in the property sector. Despite a non-cash impairment loss of as much as HK$9.5 billion, NWD maintains it will not affect its principal operating profit or operational cash flow.
In a recent announcement to the Hong Kong stock exchange on Friday, NWD revealed its prediction of a loss for its shareholders. The loss is estimated to fall between HK$19 billion (US$2.4 billion) and HK$20 billion for the year concluding on June 30.
The initial projection is due to the absence of revenue from significant projects like Pavilia Farm I and II, which were finished and delivered in the past fiscal year. This also includes a reevaluation or devaluation loss on investment and development properties and goodwill, a recognized loss from selling shares in NWS Holdings, coupled with ongoing increases in interest rates throughout the year, and the devaluation of the yuan, as per the statement.
The developer additionally mentioned that it could register a primary operating profit from ongoing operations ranging from HK$6.5 billion to HK$6.9 billion, indicating an annual reduction of 18 per cent to 23 per cent.
In their announcement, NWD highlighted that they experienced a non-cash impairment loss amounting to up to HK$9.5 billion due to a reevaluation of their investment and development properties in the previous fiscal year.
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