Adrian Cheng has officially severed ties with New World Development Company Limited, stepping down from all roles at the embattled Hong Kong property giant. The move comes less than a year after he relinquished his position as chief executive officer.
In a filing to the Hong Kong Stock Exchange on Monday, New World Development announced that Cheng resigned as non-executive director and non-executive vice-chairman with effect from 1 July. According to the statement, the departure was made “to devote more time on public services and other personal commitments” and was not the result of any disagreement with the board.
Cheng’s full exit marks a rare development in Hong Kong’s traditionally dynastic property sector, where family succession plans are typically tightly managed. A Harvard graduate long viewed as the natural successor to his grandfather Cheng Yu-Tung, Adrian Cheng was elevated to the CEO role in 2020, four years after the elder Cheng’s passing. His father, Henry Cheng, remains a prominent figure at the helm of the family’s business empire.
However, Cheng’s tenure coincided with mounting financial pressure at New World Development. The company has become one of Hong Kong’s most indebted property developers, culminating in its first annual loss in over two decades last year. As of the end of 2024, net debt had surged to 96 percent of shareholder equity, according to data from Bloomberg Intelligence.
Cheng’s resignation came on the same day the company disclosed a landmark refinancing agreement. In a separate stock exchange filing, New World Development announced the successful completion of a record HK$88.2 billion refinancing transaction, the largest of its kind ever recorded in Hong Kong. The new term loan facility replaces a portion of the developer’s existing offshore unsecured financial obligations, including bank loans, providing crucial liquidity amid ongoing market headwinds.
Cheng’s complete withdrawal from the board underscores the shifting landscape for Hong Kong’s major developers as they contend with financial restructuring, generational transition, and regulatory pressure.
-Bloomberg
