DEAR SHAREHOLDERS
Amid changing times and an evolving world, we remain steadfast in our resolve to move forward. Over the past year, the global political and economic landscape remained complex and volatile, with persistent uncertainty surrounding the interest rate outlook and broader market conditions presenting both challenges and opportunities. Against this backdrop, the real estate industry continued to undergo cyclical adjustment, gradually moving towards a healthier and more sustainable path of development. Transaction volumes in Hong Kong’s residential property market increased in 2025, demonstrating the market’s resilience and vitality. The residential property market in the Chinese Mainland remained broadly stable, with signs of recovery emerging in certain core cities and market sentiment continuing to improve.
During the year, the Group implemented a “quick-turnover” operational strategy, with a number of residential projects recording satisfactory sales performance. From The Pavilia Farm III, PAVILIA ROSA and House Muse in Hong Kong to projects in other Greater Bay Area cities, including WELL SPRING, the first-phase residential component of the large-scale urban renewal project New World 188 in Shenzhen, these meticulously crafted developments received enthusiastic market response and broad recognition. Their performance reaffirmed the enduring competitiveness of high-quality products across market cycles. At the same time, we steadily expanded our commercial retail and office portfolio, contributing to vibrant urban developments through a series of premium urban landmarks. Leveraging the K11 brand’s profound artistic and cultural heritage as well as strong market appeal, the office component of K11 ELYSEA on Huaihai Road in Shanghai has achieved encouraging pre-leasing progress ahead of its opening, further strengthening the project’s positioning within the city’s premium commercial district. K11 MUSEA Hong Kong recorded an approximately 40% year-on-year increase in mall sales during the first half of the year, reaching a record high for the corresponding period since its opening and reaffirming its unique positioning and operational strength as a cultural-retail landmark. In our hotel business, Rosewood Hong Kong was once again recognised as the World’s Best Hotel in 2026, having topped The World's 50 Best Hotels ranking in 2025. It became the first hotel in the history of the ranking to retain the global No. 1 position for two consecutive years. This achievement underscores the exceptional quality and global influence of the Group’s landmark properties.
These achievements would not have been possible without the steadfast dedication of all our colleagues. Guided by a spirit of continuous self-improvement, they have pursued excellence with professionalism and passion, overcome market challenges and continually turned our vision into tangible results. Their collective efforts have driven the Group steadily forward. Those who build on strong foundations create lasting legacies. In an industry shaped by successive market cycles, only brands that create genuine value can transcend cycles and stand the test of time. New World’s meticulously developed portfolio of high-quality properties in Hong Kong and core cities across the Chinese Mainland responds to the market's aspirations for a better quality of life through exceptional products and services, providing a solid foundation for the Group’s steady growth. Equally important are our team’s extensive professional experience, profound insight into market needs and proven ability to transform vision into high-quality developments. These strengths are instrumental in safeguarding our brand value and driving the stable, long-term development of the Group’s businesses.
The year 2026 marks the beginning of China’s 15th Five-Year Plan. Looking ahead, Hong Kong will play an increasingly important role in integrating into and contributing to the country’s overall development. At the same time, the continued development of the Northern Metropolis will inject new momentum into Hong Kong’s economic and industrial advancement. As an enterprise rooted in Hong Kong for more than half a century and with a longstanding presence in the Chinese Mainland, we firmly believe that the Group’s long-term development should remain aligned with the country’s needs, the direction of urban development and the aspirations of the community. We will continue to leverage our landbank in the Northern Metropolis and capture opportunities arising from regional development and deeper integration within the Greater Bay Area, thereby opening up broader prospects for the Group’s long-term development.
I would like to take this opportunity to express my sincere gratitude to our shareholders for their continued support; my fellow Board members for their commitment and dedication; our exceptional management team for steering the Group steadily forward with professionalism and accountability and all our employees, whose steadfast loyalty, spirit of unity and passion for their work have enabled us to advance together. As we embark on this new journey, let us remain united in purpose and pursue progress while maintaining stability, taking concrete actions to achieve high-quality development and create greater and more enduring value for our shareholders and society.
Dr. Cheng Kar-Shun, Henry
Chairman
Hong Kong, China, 30 September 2026