Former Macau satellite casino operator Macau Legend Development Ltd has issued a profit warning on an expected loss of HK$1.57 billion (US$200 million) for the year ended 31 December 2025, widened from HK$623 million (US$79.6 million) a year earlier due to impairment on its former satellite property, Legend Palace.
In a filing, the company revealed that it would recognize a significant impairment loss of approximately HK$1.18 billion (US$151 million) in 2025, primarily arising from a change in fair value of property and equipment and right-of-use assets in relation to its Macau Fisherman’s Wharf precinct. This, it explained, was a direct result of the non-renewal of a service agreement with SJM Resorts S.A. to operate Legend Palace under SJM’s concession, which was set to expire on 31 December 2025 and was subsequently terminated early on 13 November 2025.
The Macau Fisherman’s Wharf precinct is overseen by subsidiaries Macau Fisherman’s Wharf International Investment Limited and Hong Hock Development Company Limited.
“Following the expected non-renewal of the service agreement with SJM Resorts, management conducted a fair value assessment for the six months ended 30 June 2025 and recognized an impairment provision of approximately HK$1.29 billion (US$165 million) to reflect the carrying value of the affected assets,” Macau Legend added.
“As at 31 December 2025, management performed comprehensive valuations of property and equipment and right-of-use assets. The fluctuations during the Reporting Period and the Interim Period were attributable solely to changes in the fair value of these assets.”
The company said it would also recognize a provision of approximately HK$71 million in FY25 for employees’ compensation and benefits, including long service payments, as a result of the termination of the service agreement with SJM Resorts.
The update comes just a month after Macau Legend said it was well-placed to cover short-term debt following a recent rights issue through which it raised HK$86.4 million (US$11.1 million). The company has been looking to resolve a disclaimer of opinion by the group’s auditors on its financial results for the year ended 31 December 2025.
Macau Legend previously 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.
Final 2025 financial results are due to be published before the end of this month.
