The unfolding saga at City Developments (CDL) is but the latest case of property tycoons disagreeing openly with family members.
Hong Kong-listed New World Development saw a revolving door of CEOs last year, with three changes to the top job in two months.
Adrian Cheng, third-generation scion of the billionaire Cheng family, was replaced four years into his role after the flagship property business posted a loss of HK$19.7 billion ($3.4 billion) for FY2024 ended June 30, 2024. It marked the company’s first full-year loss in 20 years.
A Harvard graduate with a stint at Goldman Sachs as an investment banker, Adrian joined New World in 2007 as an executive director, bringing an artistic flair to the way he introduced new property concepts.
In hindsight, the ouster had been on the cards. Adrian’s father Henry Cheng said in November 2023 that the conglomerate was still looking for a successor, signalling that the heir was not so apparent.
Eric Ma, a former Hong Kong development minister, took over Cheng’s seat in September 2024. Ma was named New World’s chief operating officer only in January 2024.
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But things did not stop there — Henry introduced New World’s current CEO Echo Huang in an employee townhall meeting on Nov 29, 2024, replacing Ma. The company’s stock was removed from the Hang Seng Index earlier that week following a quarterly review.
It remains to be seen if Huang can hold on to her job. New World said on Feb 21 that it expects a loss of between HK$6.60 billion and HK$6.80 billion for 1HFY2025 ended Dec 31, 2024, down from a HK$502 million profit in 1HFY2024. New World is scheduled to release earnings results on Feb 28.
The 55-year-old Huang joined the group as the deputy CEO of New World China Land in October 2015 and was promoted to director and CEO of New World China Land in February 2020. H
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enry’s other children — Adrian’s siblings — helm the family’s other businesses.
Sonia Cheng, Henry’s second-eldest child after Adrian, is CEO of the privately-owned Rosewood Hotel Group and co-vice chairman of the listed Chow Tai Fook Jewellery Group, alongside her cousin Conroy Cheng.
Brian Cheng is co-CEO of CTF Services, formerly known as NWS Holdings; while youngest son Christopher Cheng is co-CEO of the family’s private investment holding company Chow Tai Fook Enterprises.
