Adrian Cheng Photo: Wikipedia
It’s tough being a billionaire. Adrian Cheng, who inherited his wealth mainly from his late grandfather Cheng Yu-tung, has resigned from the board of New World Development Ltd. NWD has several projects in Sai Kung/Clear Water Bay: Mount Pavilia, the 680-flat development with sculptures and a park on Clear Water Bay Road, a 280-flat project at Sha Ha beach that will soon get underway, plus other local properties, some in consortium.
Adrian Cheng has resigned completely from the Board of NWD after earlier stepping down as Chief Executive. Cheng Jr’s reign as chief at NWD saw the company become heavily indebted — the worst in Hong Kong history by a property company that still survives. Net debt reached $129.5 billion after cash and the company’s earnings were barely able to cover the interest. This led to Cheng’s demise as CEO. Observers say Cheng over invested in mainland property just as the authorities began clamping down on developers, some of whom were insanely ambitious. In Hong Kong, Cheng also focused on art and nature — you see this as Mt Pavilia –and something called “The Artisanal Movement”. We heard him speak on the radio one day and were favourably impressed; Cheng, Harvard-trained, came across as a very sensible young man quite unlike some of his peers who are smug and arrogant (unfortunately we have been in the presence of the greasy snake-like Peter Woo).
Mount Pavilia, Clear Water Bay Road, Sai Kung
The major shareholders in NWD are Cheng Yu Tung Family Ltd, JP Morgan Asset Management and BlackRock Advisers. The company’s latest full-year results show revenues of $54,566 million and operating profit of $9,601 million. NWD has in the past few days obtained a refinancing of $88.2 billion. The stock market is not impressed: the NWD share price today is $6.01 while in 2014 it was $36.37.
Adrian Cheng, 45, married to Jennifer Yu with three children, has done a commendable amount of charitable work: During Covid-19 he launched Love without borders, which donated masks to the needy mainly in Europe; a family foundation gave $100 million to the University of Science and Technology after the Robotics department was named for Henry Cheng, Adrian’s father; in 2021 Cheng created New World Build for Good, which aims to alleviate the HK housing shortage; a year later he set up Share for Good, a crowd donation programme that brings together donors to supply goods to the under-privileged; in 2022, Cheng launched WEMP Foundation, which promotes mental health for children. WEMP held a children’s fund-raising ball in partnership with Naked Heart of France founded by Natalia of the Arnault family. Adrian met President Macron.
Take a bow, Mr Cheng. You’re a fine young fellow.
Be the first to comment