DEAR SHAREHOLDERS

As the seasons change and new chapters unfold, New World has remained unwavering in its strategic resolve amid cyclical and policy shifts in the real estate sector, fortifying its foundation in the face of uncertainty while steadily forging new paths through adversity. This has been possible due to the steadfast dedication of all our colleagues. With extraordinary resilience and professional expertise, we have overcome challenges in business development and value creation. We are also grateful for the unwavering understanding and support from our shareholders. I would therefore like to take this opportunity to express my sincere gratitude for this collective effort, both internal and external, which has empowered New World to transcend cycles and forge a new beginning.

The Analects of Confucius states: “Honourable and wise persons cultivate their foundations; once foundations are established, the proper way shall emerge”. In the face of change, we recognise that strengthening our financial and operational foundations is key to forging a sustainable path for high-quality development.

In a volatile market, our focus is not only on growing our business, but also on the continuous optimisation of our financial structure. Through proactive capital management, we have bolstered our financial resilience. This has provided us with a stronger buffer against uncertainty, as well as a solid basis on which to seize opportunities and embark on new ventures when the market recovers.

Our unwavering commitment to enhancing property quality remains as the core of our persistence. In 2025, we capitalised on the recovery of Hong Kong’s real estate market to seize new opportunities. Guided by the belief that “good products are always scarce”, all of New World’s projects, including State Pavilia and Deep Water Pavilia in Hong Kong, and Canton View and The Sillage in Guangzhou, have maintained market dominance and strong sales, perfectly exemplifying the Group’s high-quality development philosophy. In an era fraught with uncertainty, high-quality residential properties remains our brand’s competitive moat.

We have steadily expanded our commercial and retail footprint, showcasing high-quality, vibrant human-city symbiosis through premium urban landmarks. In 2025, we witnessed record footfall at K11 MUSEA and K11 Art Mall in Hong Kong. We also saw the grand opening of K11 ECOAST in Shenzhen’s Prince Bay and Hanxi K11 in Guangzhou, which have become new landmarks igniting regional economic vitality. With the imminent launch of projects in Shanghai and Hangzhou, the Group’s commercial capabilities are set to reach new heights. Each project embodies our profound understanding of the city’s vital dynamics, while building commercial resilience that transcends cycles.

Fellow shareholders, changing landscapes never favour those who hesitate, but always reward those who act with conviction. New World Development is building a more robust financial and business foundation, while charting a clear roadmap for sustainable growth. At the same time, we remain deeply committed to upholding the pre-eminent brand we have so diligently established. Although the journey ahead is long, our conviction is unshakeable, and with determined efforts, we will make resolute progress. Moving forward, let us continue to grow side by side, opening a new chapter of high-quality development and generating greater value for all shareholders and the community.
 

Dr. Cheng Kar-Shun, Henry
Chairman
Hong Kong, China, 27 February 2026