Macau Legend Development Ltd, the owner and operator of satellite casino Legend Palace and its surrounding Macau Fisherman’s Wharf precinct, has detailed multiple uncertainties relating to its ability to continue as a going concern after reporting a loss of HK$1.42 billion (US$182 million) in the six months to 30 June 2025.
The loss was primarily due to an impairment loss of HK$1.27 billion (US$163 million) related to its Macau property, with Legend Palace being one of 11 satellite casinos impacted by the looming closure of the city’s satellite business and one of nine operating under the license of SJM Resorts S.A.
In a filing, Macau Legend confirmed it had performed an impairment assessment of its non-current, non-financial assets related to its cash-generating unit in Macau and as such has recorded the impairment loss in relation to its property, equipment and property investments.
The company also noted that, as of 30 June 2025, its current liabilities were at HK$2.56 billion (US$328 million) including total bank and other borrowings of HK$2.40 billion (US$308 million) which will be due for repayment within the next 12 months from the end of the reporting period or are repayable on demand. Its cash and bank balances amounted to just HK$21.7 million (US$2.8 million) as at 30 June 2025.
“These conditions … indicate the existence of material uncertainties which cast significant doubt on the Group’s ability to continue as a going concern,” the company explained.
While Macau Legend has outlined a raft of strategies to improve its financial position, it added that the loss of its gaming business adds further uncertainty as to whether the Group can achieve its plans.
“Whether the Group will be able to continue as a going concern would depend upon (a) the successful change of the Group’s business strategies by focusing more on the non-gaming business in order to generate additional cash flows for the Group, although the Group has yet to complete the implementation of the changed business strategies in the current period; (b) the continual support from the Banks for not taking any actions against the Group to exercise their right to demand immediate repayment of the Group’s outstanding borrowings as a result of the non-compliance of loan covenants notwithstanding the fact that the Group has not obtained any waiver or agreements from the bank as at the date; (c) the continual support from the Company’s controlling shareholder for not requesting for repayment of shareholder’s loan of HK$50.0 million though no contractual agreement has been entered into with the controlling shareholder; and (d) the successful and timely completion of the Group’s fund raising exercises to improve the Group’s working capital notwithstanding the fact that no additional funds have been raised during the period.”
Macau Legend has also classified its gaming business as a discontinued operation and reported Adjusted EBITDA from this segment of HK$34.7 million (US$4.5 million) in 1H25, which it said, “represents the expected impact on the Group from the termination of [satellite casino agreement with SJM] commencing 1 January 2026.”
It added, “This impact is anticipated to be mitigated through improvement in revenues from non-gaming businesses including hotel, convention and exhibition, food and beverage and leasing of the then available premises in the forthcoming financial year.”
