Adrian Cheng's Successor Quits After Two Months

Hopes are riding on Huang to revive NWD

After scion Adrian Cheng Chi-kong's embarrassing exit as CEO of New World Development in late September, his successor has quit after two months on the job.

Eric Ma Siu-cheung who was formerly Hong Kong development minister resigned on Friday to "pursue his other personal commitments" and was promptly replaced with Echo Huang Shaomei on a three-year contract earning HK$984,880 (US$126,540) per month including a discretionary bonus and other benefits.

Ma quit after two months as CEO

"Having reviewed the development direction of the group, I understand that timely phased changes need to be made, and the role of the CEO also [needs] to be adjusted," chairman Henry Cheng Kar-shun said in a statement. "I'm very pleased to have found a more suitable candidate."

Will Huang be able to turn around New World's fortunes after Adrian plunged the company to have HK$19.7 billion in losses, the worst performance since the company's inception in 1970? And he was making HK$1.51 million per month...

Huang will have the difficult task of continuing to off-load assets to lighten the company's debt load, and then figure out a way to help New World generate more revenues in the property sector, probably from the mainland.

She has worked for New World China since 2015, and became the CEO just as the pandemic hit in February 2020, leading many major commercial projects. Huang is also a member of the Guangdong Provincial Committee of the Chinese People's Consultative Conference and its standing committee.

Cheng was booted out in September

Good luck to Huang as she's got a tall order ahead of her. It's always the women who have to clean up messes that men make...

New World's CEO Adrian Cheng Steps Down

Cheng has stepped down as CEO of New World

There's a saying, "The first generation makes it, the second generation maintains it, and the third generation spends it".

That rings true in the case of the Cheng family that controls developer New World Development, with surprising news that Adrian Cheng Chi-kong is stepping down as CEO following the company recording shocking losses of between HK$19 billion (US$2.44 billion) and HK$20 billion.

K11 Musea is the "Silicon Valley of Culture"

It's the first loss in 20 years and largest for the company since Cheng's grandfather Cheng Yu-tung founded New World more than half a century ago, according to a profit warning issued last month.

Trading was halted on Thursday when it was announced the third-generation Cheng would take a non-executive role in the company.

Until recently, Cheng had long been thought of as the heir apparent to the conglomerate that spans property development, jewellery and logistics.

He joined the family business in 2007 as an executive director of New World and then became CEO four years ago. Cheng had graduated from Harvard and worked at Goldman Sachs Group Inc as an investment banker before redeveloping shopping malls K11 and K11 Musea.

The latter mall along the Tsim Sha Tsui harbour front is a confusing space, very dark and a bizarre mix of shops and restaurants, not to mention the buttons for the elevator are in books, and the distinct scent that was very off-putting to many. It was also a trek to get there, with winding passageways and confusing signage. 

This sculpture is in the foyer of The Rosewood

Even better was the tagline of K11 Musea: "the Silicon Valley of Culture". 

What does that even mean?

His sister Sonia runs The Rosewood Hong Kong, another ambitious project where a lot of money was spent on the decor, including pieces of art, like a realistic looking elephant collapsed on its side lying in the lobby foyer.

She was recently awarded the SevenRooms Icon Award 2024 at the World's 50 Best Hotels event for running the Rosewood Hotels & Resorts Group, appointed CEO at the age of 28.

For now New World is being led by current COO Ma Siu-cheung, and financial results will be revealed later today...