Former Secretary for Development Eric Ma replaces Adrian Cheng as New World Development CEO

Real estate behemoth New World Development (NWD) announced on Thursday that its Executive Vice-Chairman and Chief Executive Officer Adrian Cheng Chi-kong had resigned from his existing responsibilities.

The group said that the current NWD Chief Operating Officer Eric Ma Siu-cheung will assume the role of CEO with immediate effect.

According to the statement released by NWD, Cheng resigned to devote more of his time to public service and will assume the position of Non-Executive Vice Chairman of the Group.

Cheng said he submitted the resignation a few weeks ago, and got the support of his father, NWD Chairman Henry Cheng Kar-shun.

Adrian Cheng’s unexpected departure comes after the company amassed borrowings that made it the most debt-laden major developer in Hong Kong. His resignation adds to questions over succession at the family conglomerate, whose business also spans from jewelry to logistics.

"I would like to thank my son Dr. Adrian Cheng for his many years of unfaltering support for the Group's business, and his giving back to society while managing the company," Henry Cheng said in the statement.

"I very much respect and support his decision to dedicate more time towards public service, and firmly believe that he will be able to bring about positive and far-reaching changes for society." 

Henry Cheng noted that the Group will continue to be managed by a team of professionals and will set up a management committee to support the business development and elevate corporate governance standards.

Ma has worked in the land planning and construction industry for over 38 years. He joined the government in 2014 as the Under Secretary for Development and was subsequently appointed as the Secretary for Development in 2017, where he remained until the end of his tenure. 

In 2018, Ma joined as an Executive Director and Chief Operating Officer of NWS Holdings Limited and was promoted to become the Chief Executive Officer in 2019. 

From 2022, he also assumed the role of Executive Director for NWD. As of January 1, 2024, Ma had resigned all his existing duties at NWS and was appointed as Chief Operating Officer at NWD.

Such personnel changes is rare in Hong Kong’s property industry, where the biggest players are all controlled by families that carefully plan their succession. Long assumed to be a favorite of the late patriarch Cheng Yu-Tung, Adrian had until recently been seen as the heir apparent of the business group led by his billionaire dad.

New World posted a loss attributable to shareholders of HK$19.7 billion for the financial year ended in June, a separate statement showed.

The company had earlier warned of the loss, citing asset impairments, losses on investments and higher interest rates. New World’s woes have been compounded by a real estate slump as the city loses its allure as a financial hub.

(Staff reporter and Bloomberg)