Hong Kong property behemoth New World Development announced Thursday that its chief executive officer Adrian Cheng has been replaced, as the firm reported an annual loss of over US$2.5 billion. Share trading in property giant New World Development had already been suspended in Hong Kong earlier Thursday ahead of the announcement, as well as trading in the retail unit New World Department Store China.
"Dr. Cheng Chi-Kong, Adrian has tendered his resignation as the chief executive officer of the Company to devote more time on public services and other personal commitments," the company said in a filing to Hong Kong stock exchange published around 4:45 pm (0845 GMT). It added that he would be replaced with immediate effect by its chief operating officer Ma Siu-cheung, a former Hong Kong development minister also known as Eric Ma.
"(Ma) will no longer serve as the chief operating officer of the Company," it said. The firm also announced losses attributable to shareholders totalling HK$19.68 billion (US$2.
5 billion), which will will mark New World's first annual loss in two decades. The company last announced a loss in 2004, totalling HK$975 million. Cheng, 44, is a grandson of late billionaire Cheng Yu-tung and was long considered the heir apparent in the sprawling business empire run by Hong Kong's third-richest family.
Sign up to get our free daily email of the biggest stories! The clan is valued at US$22.1 billion by Forbes magazine. Cheng joined the board of New World Develop.
