On 30 September 2026, New World Development (NWD), the Hong Kong property group controlled by the Cheng family, reported a loss attributable to shareholders of HK$28.1 billion (about $3.6 billion) for the year to 30 June. Most of it came from 11 SKIES, a retail and entertainment complex at Hong Kong’s airport: HK$18.3 billion of impairments and provisions after NWD agreed to hand the project back to the Airport Authority early.
The family’s holding company, Chow Tai Fook Enterprises (CTFE), is NWD’s largest shareholder. In the results, NWD says CTFE “is prepared to provide financial support” to the group, on suitable terms. The sentence sits in the note explaining why the accounts assume the company will keep operating, the “going concern” basis.
The numbers
- The loss for the year was HK$26.8 billion. The shareholders’ share, HK$28.1 billion, is larger mainly because about HK$2 billion goes to holders of perpetual securities.
- Recurring operations made a profit of HK$2.2 billion, after a loss the year before.
- Total debt was HK$143.3 billion, net debt HK$126.3 billion. No dividend was declared for the year.
- To end the 11 SKIES lease, NWD will pay the Airport Authority HK$2.3 billion on 1 April 2027.
The family’s line on control
The 11 SKIES deal contains a family detail. For HK$1, CTFE gave the Airport Authority an option to buy 750 million NWD shares from CTFE for HK$2.25 billion. The option cannot be used if it would make the authority the largest shareholder, and NWD’s announcement says CTFE “intends to retain control” of the company.
Control has been the sticking point before. In May, Blackstone dropped a proposed $4 billion deal after the family refused to give up control, The Standard reported. On 2 October, Bloomberg reported, citing people familiar with the matter, that Bain Capital was weighing an investment in NWD and that the family could add new money. We found no confirmation from the parties.
Succession is part of the story. Adrian Cheng, son of NWD chairman Henry Cheng and seen as his heir apparent, stepped down as chief executive in September 2024 after a record loss and became non-executive vice-chairman, the South China Morning Post reported. (Our post on succession data shows how many wealthy families are not ready to hand over.)
What to watch
- NWD’s offer to swap about $991.5 million of bonds due in 2027 and 2028 for new secured notes, which expires on 20 October.
- Whether Bain or another investor makes a firm offer, and what it asks for in control.
- Whether CTFE’s promise of support turns into new money.
A fair caveat
Much of the loss is a non-cash writedown, and the underlying business returned to profit. The Bain report rests on anonymous sources, and talks like these often fail.
Questions to bring to your advisors
If a family company we depend on needs capital, would we rather put in our own money, share control with an outside investor, or sell assets? These are questions to bring to your advisors, not advice.