Cheng resigned as the Hong Kong-listed firm’s non-executive director and non-executive vice-chairman, effective July 1, to devote more time to public services and other personal commitments, according to a Monday stock exchange filing cited by Hong Kong Business.

Cheng said he had no disagreements with the board of directors nor were there any matters related to his departure that warranted the attention of shareholders or the bourse.

The board thanked him for his service and acknowledged his contributions during his time at the firm.

Adrian Cheng Chi-kong attends a press conference on Mega Events Economy at Central Government offices in Tamar. Photo by SCMP via Reuters

Last September, Cheng left his position as the firm’s CEO and was replaced by an external hire in a shocking break from tradition in Hong Kong’s property sector, where leadership in top firms is typically held by families that carefully orchestrate their succession.

Cheng’s rocky chapter at New World, one of the city’s biggest property developers, began when he became its CEO in 2020, four years after the death of his grandfather, Cheng Yu-Tung, who started the family business as a gold shop in the 1940s before expanding into real estate in the 1970s.

Widely believed to be the heir apparent and a favorite of the late founder, Cheng’s appointment was seen as a natural part of the succession plan at his clan—Hong Kong’s third-richest with an estimated US$19.5 billion in wealth, according to Forbes.

But New World has faced mounting trouble since Cheng took over. By the end of 2024, it had racked up more debt than any other major Hong Kong developer, with net debt reaching 96% of shareholder equity. That year, it also reported its first annual loss in two decades, as reported by Bloomberg.

Cheng’s Monday resignation came on the heels of a statement by New World, which revealed it had secured HK$88.2 billion (US$11.3 billion) in refinancing.

The deal, including multiple tranches of staggered bank loans with the earliest maturing on June 30, 2028, is aimed at giving the debt-laden developer more breathing room to meet its operational and financial obligations.

Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, told the South China Morning Post that the refinancing package suggests “the worst is over for New World Development.”

“Still, there is a long way to go before the developer can cut down its gearing. The company may have to continue to sell noncore assets, speed up its property sales and find new income sources to continue to improve its cash flow,” he added.

Meanwhile, New World reported that it had met its property sales target of HK$26 billion for the financial year ending June 30, crediting robust performance at its jointly owned Deep Water Pavilia project.

Echo Huang, who serves as the firm’s CEO after Cheng’s replacement stepped down last November, said the refinancing reflects strong confidence in New World’s operations, adding that the developer remains focused on cutting debt and boosting cash flow.