Adrian Cheng to step down as New World CEO, likely to be replaced by COO Eric Ma: sources

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Cheng, born in 1979, will become the non-executive vice-chairman of New World, giving up his title of chief executive officer, sources say

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Adrian Cheng Chi-kong, Chief Executive Officer of New World Development, at the Hong Kong-Asean Summit 2024 in Admiralty on September 13, 2024. Photo: Eugene Lee

Peggy SitoandCheryl Arcibal

Published: 5:52pm, 25 Sep 2024Updated: 9:23pm, 25 Sep 2024

Adrian Cheng Chi-kong, the third-generation scion at the helm of one of Hong Kong’s largest conglomerates, will step down as the chief executive of New World Development and take on a non-executive role in the company, according to sources familiar with the matter.

Cheng, born in 1979, will become the non-executive vice-chairman of New World, giving up his title of chief executive officer, the sources say. The company’s chief operating officer Eric Ma Siu-cheung, Hong Kong’s former secretary for development, is likely to be promoted to CEO when New World announces its full-year financial results on Thursday, the sources said.

“Ma had recently instructed colleagues to review the financial situation of the subsidiaries for restructuring moves,” a source said.

New World is poised to report a loss of between HK$19 billion (US$2.44 billion) and HK$20 billion for the financial year ended June 30, its biggest since Cheng’s grandfather Cheng Yu-tung founded the company more than half a century ago, according to its profit warning last month.

Its core operating profit from continuing operations for the full year was also estimated to be between HK$6.5 billion and HK$6.9 billion, a decrease of 18 per cent to 23 per cent from a year ago.

Cheng’s exit from his current role will be the latest reshuffle of Chow Tai Fook Enterprises (CTEF), New World’s parent company, a move that it said was to “accelerate growth and strengthen operations”.