Hong Kong retail developer New World Development announced on Thursday the resignation of its CEO, Adrian Cheng, after four years in the position.

Cheng will be replaced by ​the company’s chief operating officer, Eric Ma Siu-cheung, effective immediately. The entrepreneur will stay on. as New World’s non-executive vice chairman, providing guidance on the shopping mall K11‘s business.
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“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 Hong Kong Stock Exchange filing.

Cheng is a the third-generation successor to New World Development and is heir apparent of the family’s conglomerate. However, Cheng’s father, Henry Cheng, told local media last year that he could hire an outsider to lead his business, which includes real estate, jewelry and logistics.

The scion is known to have a penchant for fashion, and most recently acquired a majority stake in 1017 Alyx 9SM, the luxury streetwear label co-founded by Matthew M. Williams.

Cheng’s resignation comes on the back of a lacklustre earnings update from Hong Kong’s largest real estate developer, positing a record loss of HKD 19.7 billion, or $2.53 billion, in the financial year that ended June 30.

Revenue also dropped 62 percent to HKD 35.78 billion, despite K11, the arts and commercial real estate project, recording an 11.9 percent increase in revenue for financial year 2024.