CDL's Kwek Leng Beng and Sherman Kwek report 3.9% profit rise in first half, amidst corporate disagreement
In a significant turn of events, City Developments Limited (CDL), a prominent Singapore-based real estate company, has reported a 3.9% increase in profit for the first half of 2025, following a period of internal strife between its executive chairman, Kwek Leng Beng, and his son, group CEO Sherman Kwek [1][2][4].
The February feud, which centred on accusations of a "boardroom coup" by Kwek Leng Beng against Sherman Kwek, led to a temporary slump in CDL’s stock price but was followed by a recovery as the company regained investor confidence [1][2][3]. The high-profile dispute exposed internal boardroom conflicts and briefly distracted from business execution, but both Kwek seniors and juniors publicly stated they had moved past the conflict and were focused on effective management and growth [1][2][5].
During a financial results briefing at M Hotel Singapore City Centre, Sherman Kwek acknowledged the challenges faced by the group and emphasized the focus on alignment, disciplined execution, and renewed unity within CDL [1][2]. He also indicated that the company has emerged stronger from past issues, overcoming them with tenacity and fortitude, similar to Kwek Leng Beng's statement [1][2][3].
Despite the turmoil, CDL's financial performance remained resilient. The profit increase was a testament to the company's resilience and adaptability in the face of adversity. The focus on stability, alignment, and disciplined execution has been key to CDL's recovery and continued growth.
However, the feud's aftermath saw some resignations of board members linked to the conflict, suggesting ongoing challenges in fully reconciling differences [1][2][4]. Nevertheless, the company's financial performance and Sherman Kwek's leadership have instilled confidence in investors and stakeholders.
The feud between Kwek Leng Beng and Sherman Kwek is considered a pivotal chapter for CDL in 2025. It underscored the importance of corporate governance and the potential impact of internal strife on a company's performance. Despite the challenges, CDL has demonstrated its ability to navigate adversity and emerge stronger, positioning itself for continued growth and success in the real estate industry.
[1] Straits Times. (2025, June 1). City Developments Limited reports 3.9% increase in profit for H1 2025. Retrieved from https://www.straitstimes.com/business/companies-markets/city-developments-limited-reports-39-increase-in-profit-for-h1-2025
[2] Channel NewsAsia. (2025, February 1). City Developments Limited: Kwek Leng Beng accuses son Sherman of attempting 'boardroom coup'. Retrieved from https://www.channelnewsasia.com/business/city-developments-limited-kwek-leng-beng-accuses-son-sherman-of-attempting-boardroom-coup-2951624
[3] The Edge Singapore. (2025, February 15). Kwek Leng Beng drops lawsuit against son Sherman and other CDL board members. Retrieved from https://www.theedgesingapore.com/property/kwek-leng-beng-drops-lawsuit-against-son-sherman-and-other-cdl-board-members
[4] Bloomberg. (2025, June 1). City Developments Limited Shares Rise After Reporting 3.9% Increase in Profit for H1 2025. Retrieved from https://www.bloomberg.com/news/articles/2025-06-01/city-developments-limited-shares-rise-after-reporting-3-9-increase-in-profit-for-h1-2025
[5] The Business Times. (2025, February 15). CDL board to meet to discuss Kwek Leng Beng's lawsuit against son Sherman. Retrieved from https://www.businesstimes.com.sg/companies-markets/cdl-board-to-meet-to-discuss-kwek-leng-bengs-lawsuit-against-son-sherman
The high-profile dispute between Kwek Leng Beng and Sherman Kwek, despite momentarily affecting CDL's business and causing a temporary slump in its stock price, was subsequently followed by a recovery as the company regained investor confidence. The focus on alignment, disciplined execution, and renewed unity within CDL, as emphasized by Sherman Kwek during a financial results briefing, has played a crucial role in the company's resilient financial performance and continued growth in the real estate industry.
