Real estate group New World Development has witnessed the passing of the CEO torch from Adrian Cheng Chi-kong to chief operating officer Eric Ma Siu-cheung.
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Cheng’s departure from the helm of New World, a position he held for four years, comes in the wake of the company’s staggering debt.
The unexpected shift in leadership at New World, announced on September 26 as the company halted trading for the dat, has raised questions regarding succession within the family conglomerate, which boasts a diverse portfolio spanning jewellery and hospitality to logistics.
Adrian Cheng, who first joined the family’s flagship developer in 2007 as an executive director, swiftly ascended through the ranks, eventually assuming the role of CEO in 2020.
Adrian Cheng, the son of Henry Cheng, raised the profile of New World’s K11 properties in recent years with a “cultural commerce” model.
New World has disclosed a substantial loss amounting to HKD19.7 billion (USD2.5 billion) for the fiscal year ending in June, a development that had been foreshadowed in previous warnings due to factors such as asset devaluations, investment setbacks, and escalating interest rates.
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In response to its financial challenges, New World unveiled plans to divest assets as a strategic maneuver to avert potential liquidity constraints.