Adrian Cheng, chief executive officer of New World Development, one of Hong Kong‘s largest real estate developers, has formally resigned after the company posted its first annual loss in two decades.
Cheng, who has held the position for four years, will be replaced by the company’s chief operating officer Eric Ma Siu-cheung, effective immediately.
“Dr. Cheng Chi-Kong, Adrian has tendered his resignation as the chief executive officer of the company to devote more time on public services and other personal commitments,” the company said in a Hong Kong Stock Exchange filing on Thursday.
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The 44-year-old Cheng will stay on as New World’s non-executive vice chairman and keep providing guidance on the shopping mall franchise K11‘s business strategies.
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Navigating uncertain market environments in Hong Kong and mainland China, New World Development posted a record loss of a loss of 19.7 billion Hong Kong dollars, or $2.53 billion, in the financial year that ended June 30.
Revenue dropped 62 percent to 35.78 billion Hong Kong dollars, or $4.58 billion, which led the company to list around 13 billion Hong Kong dollars, or $1.67 billion worth of noncore real estate projects, including Shenzhen’s Qianhai Tower project, for sale to reduce debt.
K11, the art-meets-commerce commercial real estate project spearheaded by Cheng in 2008, recorded a solid 11.9 percent increase in revenue for financial 2024.
According to New World’s financial report, the company is looking to ramp up K11’s exposure in the Mainland market with the opening of K11 Ecoast in Shenzhen, The Park by K11 Select in Ningbo, and 11 Skies, which will become Hong Kong’s biggest indoor entertainment mall.
Cheng, the third-generation successor to New World Development, was heir apparent of the family’s conglomerate until his father Henry Cheng told local media last year that he might hire an outsider to lead his business empire that spans real estate, jewelry and logistics.
Adrian Cheng‘s siblings that hold executive roles within the family business include Sonia Cheng, CEO of the Rosewood Hotel Group and vice chairman at Chow Tai Fook Jewellery; Brian Cheng, co-CEO of New World’s sister company NWS, a logistics firm, and Christopher Cheng, executive director at NWS.
Cheng, who is also known in the art and fashion world as a mega collector and fashion investor, most recently acquired a majority stake in 1017 Alyx 9SM, the luxury streetwear label cofounded by American Matthew M. Williams.
In an exclusive interview with WWD this January, Cheng and Williams described plans to intensify direct-to-consumer distribution channels, expand product offerings and activate pop-ups, events and “experimental” projects before the end of the year.