Independent CTF Services forging a bold new path, says Brian Cheng

CTF Services’ (0659) executive director and group co-chief Brian Cheng Chi-ming said the conglomerate remains independent of its sister firm New World Development (0017), which is currently facing a liquidity crisis.
The second-eldest son in the third generation of Hong Kong’s Cheng family also expressed the desire for businesses within the Chow Tai Fook empire to have stronger connections.
“We operate independently in terms of operations, finance and capital allocation (from NWD). Additionally, CTF Services has not engaged in the property sector,” he said, when asked about possible collaborations with NWD regarding cash injections or projects.
CTF Services, previously known as NWS -- a subsidiary of New World -- was sold to the controlling shareholder, Chow Tai Fook Enterprises, in 2023.
NWD reported a consolidated net debt of HK$124.6 billion as of the end of 2024. Last week, the Cheng family denied a report that they were planning a capital infusion of up to HK$10 billion into the embattled developer.
New World’s debt crisis led to Adrian Cheng Chi-kong stepping down from the post of CEO last September and the eldest son of chairman and executive director Henry Cheng Kar-sun has also quit other roles in the family businesses.
Brian Cheng, who joined NWS in 2008, became the co-CEO of CTF Services in 2024 and sits on the New World’s board as a non-executive director.
When asked whether he thinks he is capable of leading more family businesses, Brian Cheng said “Never say never,” while adding that he already has his hands full at CTF Services.
He said CTF Services will shift from being an infrastructure-focused firm to include a diverse portfolio that encompasses logistics, data centers and financial services.
In particular, financial services that include insurance, wealth management, securities and investment banking after recent acquisitions are expected to create synergies with CTF’s established businesses like jewelry, Gleneagles Hospital, Rosewood Hotels and the Kai Tak Sports Park, he said. 
By leveraging the CTF ecosystem, the diversified experience for clients would help the new financial service sector stand out in Hong Kong’s competitive market, he said.
He said he is aiming to centralize CTF’s businesses, but the move would take time as he needs experts who are familiar with the family’s businesses.
Data centers and warehouses for consumer goods are the new focus of CTF Services in mainland China, as Brian Cheng expects to seize opportunities in data and the growing domestic consumer market in the world’s second-largest economy.
Despite geopolitical tensions and structural shifts in China’s economy, Cheng believes trade will always remain an indispensable part of business. 
With this in mind, CTF Services has invested in China United International Rail Containers to participate in the Belt and Road Initiative and will consider investing in more railway projects in the mainland, he said.
He agreed that it is harder to find new opportunities at present, but said businesses need to keep widening their horizons for future growth.