Macau Legend Development Issues Significant Profit Warning for FY2025

Macau Legend Development Limited (Stock Code: 01680) has issued a major profit warning, indicating a drastic increase in its expected annual net loss for the financial year ended 31 December 2025. This follows a preliminary review of its unaudited consolidated management accounts.

Key Points in the Report

• Expected Loss for FY2025: The company anticipates recording a net loss of approximately HK\$1,566 million for FY2025, a sharp rise from the loss of about HK\$623 million in FY2024.
• Primary Cause – Impairment Loss: The increased loss is mainly attributable to a significant impairment loss of around HK\$1,180 million in FY2025 (up from HK\$376 million in FY2024). This impairment is linked to changes in the fair value of property, equipment, and right-of-use assets at Macau Fisherman’s Wharf, operated by key subsidiaries.
• Termination of SJM Resorts Service Agreement: The impairment was triggered by the non-renewal and early termination (on 13 November 2025) of the service agreement with SJM Resorts S.A., which was originally due to expire on 31 December 2025. The termination agreement was signed on 7 November 2025.
• Further Details: The company had previously disclosed updates regarding this termination in announcements dated 9 June 2025, 30 September 2025, and 7 November 2025.
• Impairment Assessment: Following the expected non-renewal, management performed a fair value assessment as of 30 June 2025 and recognized an impairment provision of approximately HK\$1,288 million for the affected assets. As of year-end, comprehensive revaluations were performed, and the fluctuations in impairment are solely attributable to changing asset fair values.
• Additional Provisions: The group also recognized a provision of about HK\$71 million for employee compensation and long service payments due to the service agreement termination.
• Audit Status: These results are based on preliminary unaudited figures and may be subject to adjustments. The full audited financial statements are expected by the end of March 2026.

Information of Importance to Shareholders

• Material Losses and Impairment: The significant rise in net loss, largely due to impairment and the fallout from the terminated SJM Resorts agreement, is a material development and could have a substantial impact on the company’s financial position and share price.
• Uncertainty and Further Adjustments: As these numbers are preliminary and unaudited, further changes may occur once the final audited figures are available.
• Potential Share Price Volatility: Given the scale of the loss and the impairment, investors should expect potential share price volatility and are urged to exercise caution when dealing in the company’s securities.
• Leadership Disclosure: The announcement was authorized by Li Chu Kwan, Chairman, Executive Director, and CEO, on 24 March 2026, confirming board oversight of these disclosures.
• Board Composition: The board includes Executive Directors Mr. Li Chu Kwan and Ms. Lam Shu Yan; Non-Executive Directors Ms. Ho Chiulin, Laurinda, Mr. Li Chun Tak, and Mr. Wong Che Man Eddy; and Independent Non-Executive Directors Mr. Mak Ka Wing, Patrick, Ms. Ma Cheuk Ling, and Ms. Pong Chiu Yan, Joanne.

Conclusion

The substantial increase in net losses, primarily due to the termination of a key service agreement and resulting asset impairments, marks a critical turning point for Macau Legend Development Limited. These developments are highly price sensitive and require careful consideration by shareholders and investors. The company advises exercising extreme caution when trading its shares until the audited results are released.

Disclaimer: This article is based on the company’s preliminary unaudited financial disclosures and is intended for informational purposes only. Actual results may differ upon completion of the audit process. Investors are advised to review the company’s official announcements and to consult with professional advisers before making any investment decisions.

View MACAU LEGEND Historical chart here