The wealthy family suffered a huge loss of 11.8 billion Hong Kong dollars, and the original “three generations of successors” resigned
Within 24 hours, the “boots” of the “Zheng family”, one of the four major real estate families in Hong Kong, China, landed on the ground.
Cheng Family
On the evening of September 26, the four companies of the “Cheng family” – New World Development, New World Department Store China, Chow Tai Fook and NWS Holdings respectively announced that Zheng Zhigang resigned from the relevant positions of listed companies and left the “real power” management.
NWS
Previously, rumors that Zheng Zhigang would leave his post spread throughout Hong Kong. At NWS Holdings’ results meeting the day before, Zheng Zhigang’s younger brother and NWS Co-CEO Zheng Zhiming did not deny the rumors positively.
At the online press conference of New World Development’s FY2024 annual results, Adrian Cheng announced his departure and left the venue after delivering a 10-minute parting speech.
His father, Cheng Kar-Shun, expressed his support for his son’s choice, “believing that he can bring more positive and far-reaching changes to society”.
His younger brother Zheng Zhiming expressed his support for the family business, “I am interested in everything, as long as I can help the family business”, and his position is “right things and not people”.
When the outside world began to question the filial piety of fathers and sons, brothers, friends and brothers in wealthy families, Zheng Zhiming’s response was that there was no problem with the relationship between family members, and “there was no problem with the communication between father and son”.
Financial Report
But the taste of the gossip of the giants, on the one hand, is reflected in the financial report, New World Development will usher in the first loss in 20 years in fiscal year 2024; On the other hand, in 2023, the second-generation head of Zheng Kar-chun once said that “the successor of the family is still under observation”.
From this point of view, the “succession” of the Zheng family does not seem to be so simple.
“Three generations of successors” want to “go it alone”?
As the third generation of the Cheng family, Adrian Cheng should be said to be very “Taoist”, the eldest grandson of New World founder Cheng Yu-tung and the eldest son of Cheng Kar-chun, chairman of New World Development.
About E. J. McKay
E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.