Adrian Cheng, former scion of Hong Kong’s NWD, expands K11 brand in Xiamen

Adrian Cheng Chi-kong, former heir apparent to Hong Kong’s New World Development (NWD), is expanding his K11 cultural retail business in mainland China, launching a venture of his own as his family’s property group grapples with heavy debt.

Xiamen K11 Select, developed by Cheng’s K11 by AC Group along with state-owned Xiamen Rail Transit Group in the city in the southeastern province of Fujian, has attracted more than 2 million visits since its opening on September 22, with sales rising 32 per cent week on week, according to a statement on Monday.

With 95,000 square metres (more than 1 million square feet) of space, the complex houses around 200 brands, including about 80 making their national, provincial or regional debuts.

“China’s first wetland conservation-focused retail, art and cultural tourism landmark in Xiamen has delivered strong operating results since opening, signifying the success of the ‘cultural commerce’ model developed over the past 16 years,” Cheng said at an opening ceremony.

The project extends Cheng’s cultural retail concept into ecotourism, linking the shopping complex to an 85-hectare wetland park through a 1km elevated walkway. The development also offers art exhibitions, restaurants and public spaces, illustrating his push to build destinations that extend their appeal beyond shopping.

Cheng resigned as New World’s CEO in September 2024 and later left the board of Chow Tai Fook Enterprises, the family’s investment holding company. He launched Almad Group in 2025, with K11 by AC pursuing cultural retail and entertainment ventures separate from NWD.

The Xiamen opening comes as NWD sells assets and cuts costs to ease its debt burden.

On Wednesday, NWD reported a net loss of HK$26.8 billion (US$3.42 billion) for the year ended June, as it booked HK$18.3 billion in impairments and provisions tied to the early termination of its flagship 11 Skies mall project.

During a results briefing, the group’s CEO Echo Huang reiterated that Xiamen K11 Select was not part of NWD’s business and that Cheng’s investments and asset-light management operations had no connection to the group.

The grandson of late tycoon Cheng Yu-tung and son of property developer Henry Cheng, Adrian Cheng founded K11 in 2008, and spearheaded the development of projects including Hong Kong’s K11 Art Mall and K11 Musea.