Macau Legend Development Limited has appointed Baker Tilly as its new auditor for the 2025 financial year, replacing Ernst & Young (EY). The Hong Kong-listed company disclosed the change in a clarification announcement on May 20th, citing the failure of the two parties to agree on audit fees.
In the filing, Macau Legend explained that EY’s resignation, formalized on December 1st, 2025, followed the company’s request for a fee reduction as part of ongoing cost-control measures and after receiving more competitive quotes from other audit firms. The board characterized the departure as a mutual decision.
The company said Baker Tilly’s lower fee reflects its ‘commercial approach’ and ‘lower cost structure’ compared to Big Four firms, noting that EY’s pricing included ‘a premium reflecting its long-standing market presence.’ The reduced scope of the FY2025 audit also supported a lower fee, following the reclassification of Macau Legend’s gaming segment as a discontinued operation, the disposal of its Laos business, and minimal activity at its Cape Verde investment project.
The audit committee endorsed the appointment, stating that audit quality would not be compromised. Baker Tilly has assigned a 10-member team led by an engagement director with over 23 years of experience, allocating more than 3,000 man-hours to the engagement. Planning began in December 2025, with substantive procedures running from January through March 2026.
Key audit matters identified include impairment of non-current assets in Macau, expected credit losses on trade receivables, revenue recognition, management override of controls, and going concern. The going concern matter is particularly relevant given Macau Legend’s reported HK$1.56 billion ($199.2 million) loss for FY2025 and net current liabilities of approximately HK$2.7 billion ($344.8 million).
