Macau Legend Development has reported a net loss of HK$485.5m (US$61.9m) for the first six months of the year.
Macau.- Macau Legend Development has shared its financial results for the first half of the year. It reported revenue of HK$543.8m, a 3.1 per cent rise from 2021, and a net loss of HK$485.5m (US$61.9m) compared to HK$688.6m (US$88.5m) in the first six months of 2021.
Macau Legend reported net current liabilities of approximately HK$3.25bn as of June 30, including bank borrowings of HK$2.37bn. Cash and cash equivalents amounted to HK$66m.
The group breached certain loan covenant clauses and thus Luso International Banking Limited and CMB Wing Lung Bank, Limited Macau Branch “may exercise their rights to serve notice to demand immediate repayment of all outstanding bank borrowings including interest.”
The company said that bank borrowings in the amount of just below HK$2.14bn had been reclassified as current liabilities in the group’s consolidated statement of financial position.
In August, the company announced that Macau Fisherman’s Wharf International Investment Ltd (MFW), a subsidiary of the company, disposed of bonds with an aggregate principal amount of HK$200m (US$25.5m) through the open market.
According to its statement, the company purchased the bonds for investment purposes and disposed of them in light of the market situation. The company said the disposal was a good opportunity to strengthen cash flow and better structure its asset portfolio.
See also: David Chow exits Macau Legend board
The company said: “Along with the gradual relaxation of travel restrictions released by local governments, the group remains confident that Macau’s overall tourism and consumer market shall recover eventually.
“The group is optimistic that it is well positioned to take the advantage of the recovery when the tourism industry rebounds. Under the regulatory changes of the new gaming law, the group shall stay tuned for the developments in the Macau gaming industry.”