Hong Kong's New World Development replaces CEO Adrian Cheng
by by AFP · Legit.ng News · JoinHong Kong property behemoth New World Development announced Thursday that its chief executive officer Adrian Cheng has been replaced, as the firm reported an annual loss of over US$2.5 billion.
Share trading in property giant New World Development had already been suspended in Hong Kong earlier Thursday ahead of the announcement, as well as trading in the retail unit New World Department Store China.
"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 filing to Hong Kong stock exchange published around 4:45 pm (0845 GMT).
It added that he would be replaced with immediate effect by its chief operating officer Ma Siu-cheung, a former Hong Kong development minister also known as Eric Ma.
"(Ma) will no longer serve as the chief operating officer of the Company," it said.
The firm also announced losses attributable to shareholders totalling HK$19.68 billion (US$2.5 billion), which will will mark New World's first annual loss in two decades.
The company last announced a loss in 2004, totalling HK$975 million.
Cheng, 44, is a grandson of late billionaire Cheng Yu-tung and was long considered the heir apparent in the sprawling business empire run by Hong Kong's third-richest family.
The clan is valued at US$22.1 billion by Forbes magazine.
Cheng joined the board of New World Development in 2007 as its executive director and was appointed its CEO in 2020, when the company's revenues slumped by nearly a quarter mid-year to mid-year.
The business empire -- overseen by patriarch Henry Cheng -- spans property, jewellery, department stores and logistics.
The property arm is the largest unit, controlling HK$470.2 billion in assets by the end of 2023.
New World's shares have fallen by about a third since the turn of the year as Hong Kong suffers the longest property market downturn since the SARS pandemic in 2003.
The city has lost at least HK$2.1 trillion since 2019, according to a Bloomberg Intelligence analysis in June.