One year after stepping down as CEO of New World Development Co., Adrian Cheng is launching a new venture called ALMAD Group. While details about ALMAD are somewhat vague, the company aims to invest in digital assets, blockchain technology, and immersive digital experiences across sectors such as entertainment, sports, and media in regions including mainland China, Southeast Asia, and the Middle East.
Cheng, who will serve as the founder and executive chairman of ALMAD, expressed a clear mission for the new company: to shape a future economy filled with possibilities for the next generation. Cheng, known for his presence on the ARTnews Top 200 Collectors list, has ambitions that resonate with contemporary technological trends.
ALMAD’s creation also addresses the future of the K11 by AC business, Cheng’s previous art-and-commerce platform. This initiative will now be part of ALMAD and includes efforts like the K11 Craft and Guild Foundation, which focuses on preserving traditional Chinese craftsmanship, and the K11 Art Foundation, which promotes emerging Chinese artists through numerous exhibitions. The K11 Art Malls—a blend of luxury retail and art installations featuring renowned contemporary artists—are the most notable aspect of this initiative with multiple locations in Hong Kong and mainland China.
Following his departure from New World, Cheng acquired the K11 business for approximately $26.9 million, a transaction that included leasing and brand marketing rights. The real estate assets, however, remain under New World Development’s control.
Cheng resigned from his position at New World last September when the firm announced its first annual loss in 20 years, totaling $2.5 billion. He also exited other family-run businesses, including Chow Tai Fook Enterprises. New World’s financial troubles have intensified since Cheng’s departure, leading the company to secure a staggering $11 billion refinancing package in June to avoid default. This measure was deemed high-risk, raising concerns among bankers and officials, especially considering New World’s assets represent roughly 10 percent of Hong Kong’s GDP.
The ongoing property decline in Hong Kong has pressured New World to consider further restructuring. Recent reports indicate that the company is in negotiations with the city’s Airport Authority to reduce rent at its 11 Skies mall. Additionally, New World is exploring options to sell properties and attract new investors.
For Adrian Cheng, however, the challenges faced by New World seem distant now. He is eager to pursue what he referred to as “new frontiers” in the evolving global economy. Despite recent fluctuations in the NFT and digital asset markets, there are signs that interest in these areas may be on the rise again, especially with Bitcoin reaching new all-time highs. ALMAD’s focus on “Web3 financial innovation” positions it to tap into emerging opportunities within the digital economy.
