New World Development CEO Adrian Cheng steps down

New World Development (NWD)'s CEO Adrian Cheng (pictured) has resigned after 17 years, with NWD's chief operating officer Ma Siu Cheung taking up the role instead. 

According to the official document on Hong Kong Stock Exchange, the company said Cheng has tendered his resignation as the chief executive officer of the company to devote more time on public services and other personal commitments.

Meanwhile, Cheng will remain with the company as a non-executive director and a non-executive vice-chairman.

At an online press conference on Thursday, Cheng said he is thankful for the government's trust in him for appointing him to public roles such as chairing the Mega Arts and Cultural Events Committee and the Hong Kong Academy for Wealth Legacy.

"We should keep learning in life, to do the best at what you’re good at," he said. "After giving much thought to it for a very long time, I have decided to spend more time in serving public roles in the next stage in life." He said he had tendered his resignation a few weeks ago, and was relieved that his father, company chairman Henry Cheng, supported his decision.

On the other hand, Ma joined NWD two years ago as an executive director, after which he was promoted to the role of chief operating officer in January this year. He has been assisting Cheng in the daily management and operations of the group’s business in Hong Kong.  

He was a also a former government minister between 2014 and 2017 as an undersecretary for development. He briefly served as development secretary when his superior Paul Chan became finance chief.

The leadership reshuffle came after the company issued a profit warning on the Hong Kong Stock Exchange (HKEX), indicating that it expects a loss of up to HK$20 billion for the financial year ended in June, attributing this to asset impairment, investment losses, and rising interest rates. 

While Cheng founded the museum-retail concept brand K11, which integrates art elements into shopping malls and offices, NWD has encountered several challenges since the pandemic.

The shopping mall K11 MUSEA opened in 2019 amid the protest, just before the pandemic led to border closures. Another project, K11 SKIES, a HK$20 billion shopping and entertainment complex near the airport, began its phased opening last year. Additionally, in 2021, NWD discovered structural defects in two residential towers in Sha Tin, necessitating their demolition and compensation for buyers.

MARKETING-INTERACTIVE has reached out to New World Development for a statement. 

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