MACAU LEGEND (01680) has announced an expected significant increase in net loss for the fiscal year ending December 31, 2025. The Group forecasts a loss of approximately HKD 1.566 billion, a substantial rise compared to the loss of about HKD 623 million recorded for the year ended December 31, 2024.

The primary driver for the increased loss is the recognition of a substantial impairment charge of approximately HKD 1.18 billion during the reporting period, a sharp increase from the HKD 376 million impairment recognized in the prior year. This impairment stems from fair value adjustments to the property, plant, and equipment, as well as right-of-use assets, associated with the Macau Fisherman's Wharf project. The project is operated by the Company's subsidiaries, Macau Fisherman's Wharf International Investment Limited and Hong Fu Property Limited. The fair value adjustments were necessary following the non-renewal of a service agreement with Sociedade de Jogos de Macau, S.A..

In light of the anticipated non-renewal of the service agreement, management conducted a fair value assessment for the six months ended June 30, 2025, leading to the recognition of an impairment provision of approximately HKD 1.288 billion to adjust the carrying value of the affected assets. A comprehensive valuation of the property, plant, equipment, and right-of-use assets was subsequently performed as of December 31, 2025. The fluctuations in valuations between the interim and full-year reporting periods are attributed entirely to these fair value changes.

Additionally, due to the termination of the service agreement, the Company recognized a provision of approximately HKD 71 million during the reporting period. This provision covers employee compensation and benefits, including long-service payments.