New World Development made a surprising announcement on Friday regarding the resignation of Eric Ma, who had only been the Chief Executive Officer for a little over two months. The company revealed that Echo Huang, the head of the group’s property business in mainland China, will be taking over the role of CEO.
According to the filing submitted to the local bourse, Ma, who also served as the executive director, decided to step down in order to pursue “other personal commitments.” This sudden change in leadership comes after Ma took over from Adrian Cheng in September, following a significant net loss of over HK$17 billion reported by the company in the previous financial year.
Henry Cheng, the chairman of New World Development, expressed that the decision for Ma’s resignation was part of necessary changes to the group’s development direction. He mentioned that he was pleased to have found a more suitable CEO in Huang, highlighting Huang’s extensive experience in real estate and corporate management. Additionally, the company appointed Gilbert Ho and Edward Lau as executive directors.
The news of Ma’s resignation had an immediate impact on the stock market, with shares of New World Development and its sister company, New World Department Store China, dropping by approximately six percent. Trading for both companies was halted in the afternoon following the personnel announcement, but is expected to resume on Monday.
This sudden change in leadership at New World Development raises questions about the future direction of the company and how Huang will steer the business moving forward. Investors will be closely watching to see how the new CEO’s strategies and decisions will impact the company’s performance in the coming months.
It is crucial for New World Development to ensure a smooth transition of power and maintain stability within the organization amidst this leadership shakeup. The market will be looking for clear communication from the company’s management team to address any concerns and uncertainties following Ma’s unexpected resignation.
