Adrian Cheng invests in medical equipment firm in first bet after exit as New World CEO

Adrian Cheng Chi-kong, the former CEO of New World Development (NWD), bought HK$20 million (US$2.57 million) worth of convertible bonds sold by a medical equipment leasing firm, in his first known investment since stepping down from the top job at the troubled developer last year.

Cheng’s personal investment vehicle SummitEdge Capital bought the short-term securities issued by Ziyuanyuan Holdings Group on Wednesday, according to a Hong Kong stock exchange filing. The bet showed his confidence in the medical and healthcare industry, a person familiar with the deal said.

Ziyuanyuan has a mandate to issue up to HK$100 million worth of bonds. The firm earlier placed HK$32 million of them on March 26 to Hainan Mingda Investment, a mainland-based company owned by Huang Pingan and Zhang Mingyuan, the firm said in a separate filing last week.

The convertible bonds pay 6 per cent annual interest and mature after 18 months, according to the filing. They may be converted into the company’s ordinary shares at HK$1.51 per share.

If fully converted, Cheng and Hainan Mingda would own 2.71 per cent and 4.7 per cent of the firm’s enlarged share capital, respectively.

Cheng, scion of Hong Kong’s third richest family, stepped down as CEO of NWD in late September, soon after the developer reported a record HK$19.7 billion loss for the year to June 2024. His successor, Eric Ma Siu-cheung, lasted two months, and was replaced by Echo Huang Shaomei.