NWS Holdings, the infrastructure and construction business of New World Development and Chow Tai Fook chairman Henry Cheng, has appointed the Hong Kong tycoon’s second eldest son, Brian Cheng Chi-ming, as co-CEO as questions over succession intensify within the family’s property and retail empire.
As part of a broader management shuffle, 41-year old Brian will share the chief executive role with Gilbert Ho Chi-hang, who is currently NWS’ chief operating officer, according to a filing to the Hong Kong stock exchange on Monday.
Brian’s elevation comes a month after NWS shareholders approved an offer by the Cheng family to take NWS private in a HK$35.5 billion ($4.5 billion) buyout that saw the Cheng family acquiring the 60.85 percent of NWS shares it did not already own, including a majority stake held by the family’s property development business New World Development (NWD). The debt-laden builder is set to receive HK$21.8 billion ($2.8 billion) in proceeds from that disposal, which will be used for deleveraging.
Concurrent with Brian’s appointment, NWS’ chief executive Eric Ma Siu-cheung has stepped down and taken on the role of chief operating officer for Hong Kong-listed NWD, where he will assist chief executive Adrian Cheng with daily management and operations of the company’s business in Hong Kong, according to a separate filing by the developer on Monday. Ma had previously served as Hong Kong’s Secretary for Development.
44-year old Adrian, Henry’s eldest son and grandson of late New World founder Cheng Yu-tung, will be re-designated as a non-executive director of NWS from his current role as an executive director.
“It was expected that the above changes would enhance transparency and independence of INED (independent non-executive director) nomination and appointment process as well as promoting better practices and standards in board recruitment, appointment and succession planning,” NWS said in the filing.
The personnel changes will take effect on 1 January.
Third Generation Heirs
Brian’s promotion puts three of Henry’s six children in chief executive roles within the family’s businesses, with 43-year old daughter Sonia Cheng Chi-man leading Rosewood Hotel Group as well as serving as joint vice-chairman for jewelry retailer Chow Tai Fook. Another son, 34-year old Christopher Cheng Chi-leong, is an executive director at NWS.

Adrian Cheng, chief executive of New World Development (Image: New World Development)
The leadership changes come after the 76-year old patriarch said in a television interview last month that he is still looking for a successor to run the family’s portfolio of businesses and did not rule out selecting an external candidate, throwing into question what many observers had assumed would be Adrian’s ascension to control of one of Hong Kong’s largest business empires after the Harvard-educated scion was promoted to chief executive of New World Development in May 2020.
In the interview last month, the senior Cheng said it is not necessary for the family’s business holdings to have a single successor, as different family members can run their respective units.
Cheng, who controls a family fortune estimated at $20.6 billion, ranks as Hong Kong’s third-richest man, according to Bloomberg.
20-Year Low
Brian will be taking the helm of NWS as NWD grapples with outsized debt and waning investor confidence amidst Hong Kong’s property market slump. As of 30 June NWD had one of the highest debt ratios among the city’s top builders, with a total debt-to-equity ratio of 69 percent and net gearing ratio of 49 percent.
With NWD’s share price plummeting to a 20-year low this month, the Cheng family bought HK$17.2 ($2.2 million) of shares in a show of support last week, raising their stake to 45.3 percent from 45.2 percent. The stock is down 49 percent year-to-date, the steepest decline among Hong Kong’s top five developers.
Investors have also soured on NWD’s debt, with some of the company’s bonds trading under 70 cents on the dollar since June. Just days before the family’s share buyback, NWD completed a tender offer for $610 million of the company’s bonds in an effort to further slash its debt burden.
NWD also disposed of HK$37.8 billion ($4.8 billion) worth of assets deemed as non-core over the three fiscal years ending June 2023, with more asset sales flagged for the current fiscal year.
“Management remains committed to deleveraging and expects (net gearing ratio) to reach mid-to-high 30s in fiscal year 2026-2027,” the company said in its annual results presentation.
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