{Economic Information Daily News, 2nd Special Report} New World (00017) rises 7.4% to HK$6.5. At current price, the stock has risen for three consecutive days, accumulating an increase of 8.8%. The stock's trading volume is about 860,000 shares, involving a turnover of HK$54.2 million.
After releasing its annual results, New World simultaneously announced that it has entered into an early termination sublease agreement with the Airport Authority, under which the entire 11 SKIES project will be returned to the Airport Authority on April 1 next year. New World will pay a total early termination fee of HK$2.3 billion to the Airport Authority, recording a net loss of approximately HK$18.3 billion. This includes an impairment loss of about HK$14.72 billion on contract assets and prepayments related to construction revenue for construction services already provided, and a provision of about HK$1.05 billion for pre- and post-handover works, all of which have been reflected in the annual results for the year ended June 30 this year.
*Airport Authority may purchase 750 million shares of New World Development for HK$2.25 billion*
In addition, the group stated that it has been informed by its single largest shareholder, Chow Tai Fook Enterprises, that concurrently with the termination matter, Chow Tai Fook Enterprises entered into a share option agreement with the Airport Authority this Wednesday (30th), granting the Airport Authority an option to acquire 750 million shares of the group. The consideration for granting the option is HK$1, with a three-year exercise period and an exercise price of HK$2.25 billion, subject to a lock-up restriction until September 30, 2032. Based on the group's closing price of HK$6.05 on September 30, the market value of the 750 million shares is approximately HK$4.54 billion. Chow Tai Fook Enterprises stated that it intends to maintain control of the group and continue as the single largest shareholder, and welcomes the Airport Authority's investment in the group.
*11 SKIES losses reflected in annual results, causing latest annual loss to widen significantly*
Due to the related 11 SKIES losses, New World recorded a loss of approximately HK$28.15 billion for the year ended June 30, widening from last year's loss of approximately HK$16.3 billion, mainly due to an impairment loss and net provision of HK$18.32 billion related to the 11 SKIES project, other losses of about HK$8.18 billion, and financial expenses of HK$4.7 billion.
The group stated that as of June 30, consolidated debt decreased by HK$2.7 billion to HK$143.27 billion, while net debt increased by HK$6.19 billion to HK$126.3 billion. The net debt-to-equity ratio rose to 68.3%. Debt due within one year increased year-on-year to HK$23.2 billion.
Currently, the Hang Seng Index stands at 23,994, down 618 points or 2.5%, with Main Board turnover exceeding HK$11.5 billion. The Hang Seng China Enterprises Index stands at 8,028, down 191 points or 2.3%. The Hang Seng Tech Index stands at 4,157, down 96 points or 2.3%.
(hc)
After releasing its annual results, New World simultaneously announced that it has entered into an early termination sublease agreement with the Airport Authority, under which the entire 11 SKIES project will be returned to the Airport Authority on April 1 next year. New World will pay a total early termination fee of HK$2.3 billion to the Airport Authority, recording a net loss of approximately HK$18.3 billion. This includes an impairment loss of about HK$14.72 billion on contract assets and prepayments related to construction revenue for construction services already provided, and a provision of about HK$1.05 billion for pre- and post-handover works, all of which have been reflected in the annual results for the year ended June 30 this year.
*Airport Authority may purchase 750 million shares of New World Development for HK$2.25 billion*
In addition, the group stated that it has been informed by its single largest shareholder, Chow Tai Fook Enterprises, that concurrently with the termination matter, Chow Tai Fook Enterprises entered into a share option agreement with the Airport Authority this Wednesday (30th), granting the Airport Authority an option to acquire 750 million shares of the group. The consideration for granting the option is HK$1, with a three-year exercise period and an exercise price of HK$2.25 billion, subject to a lock-up restriction until September 30, 2032. Based on the group's closing price of HK$6.05 on September 30, the market value of the 750 million shares is approximately HK$4.54 billion. Chow Tai Fook Enterprises stated that it intends to maintain control of the group and continue as the single largest shareholder, and welcomes the Airport Authority's investment in the group.
*11 SKIES losses reflected in annual results, causing latest annual loss to widen significantly*
Due to the related 11 SKIES losses, New World recorded a loss of approximately HK$28.15 billion for the year ended June 30, widening from last year's loss of approximately HK$16.3 billion, mainly due to an impairment loss and net provision of HK$18.32 billion related to the 11 SKIES project, other losses of about HK$8.18 billion, and financial expenses of HK$4.7 billion.
The group stated that as of June 30, consolidated debt decreased by HK$2.7 billion to HK$143.27 billion, while net debt increased by HK$6.19 billion to HK$126.3 billion. The net debt-to-equity ratio rose to 68.3%. Debt due within one year increased year-on-year to HK$23.2 billion.
Currently, the Hang Seng Index stands at 23,994, down 618 points or 2.5%, with Main Board turnover exceeding HK$11.5 billion. The Hang Seng China Enterprises Index stands at 8,028, down 191 points or 2.3%. The Hang Seng Tech Index stands at 4,157, down 96 points or 2.3%.
| Stock (Code) | Current Price (HK$) | Change (%) |
|---|---|---|
| New World (00017) | 6.5 | Up 7.44% |
| Chow Tai Fook (01929) | 10.83 | Down 1.19% |
| Chow Tai Fook Creation (00659) | 8.565 | Down 0.93% |
| Giordano International (00709) | 1.32 | No change |
| New World Department Store (00825) | 0.255 | No change |
