Business Context and Reporting Period
Company: STUDIO CITY INTERNATIONAL HOLDINGS Ltd
Filing Type: Form 6-K (Report of Foreign Issuer)
Date: August 18, 2022
Business Overview: The Company operates a world-class integrated resort in Cotai, Macau. Its casino is operated by a subsidiary of Melco Resorts & Entertainment Limited, a holder of a gaming subconcession. In 2022, the Company initiated process control changes, resulting in the relocation of certain key finance personnel to Singapore.
Financial Metrics
This filing does not contain financial performance data. Revenue, profit, cash flow, margins, debt, and liquidity metrics are not reported in this document.
Material Changes
- Change in Certifying Accountant: On August 16, 2022, the Board of Directors approved the appointment of Ernst & Young LLP (Singapore) ("EY SG") as the independent registered public accounting firm, effective immediately.
- Dismissal of Prior Auditor: Ernst & Young (Hong Kong) ("EY HK") was dismissed as the independent registered public accounting firm for audits of consolidated financial statements and internal controls to be filed with the SEC.
- Scope of Change: EY SG will also replace EY HK as the independent auditors for Studio City Finance Limited and Studio City Investments Limited for filings with the Singapore Stock Exchange.
Outlook, Risks, and Management Commentary
Audit Committee Review: The change in auditors was recommended by the Audit Committee following a review process. Both EY SG and EY HK are member firms of Ernst & Young Global Limited but are separate legal entities.
Historical Audit Status: EY HK's audit reports for the years ended December 31, 2021, and 2020 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
Disagreements and Reportable Events: The Company confirmed no disagreements with EY HK on accounting principles, practices, or auditing scope during the 2020-2021 periods or the interim period through the filing date. No "reportable events" occurred as defined in Item 16F(a)(1)(v) of Form 20-F.
Consultations with New Auditor: Through August 15, 2022, the Company had not consulted with EY SG regarding accounting principles, audit opinions, or matters that would constitute disagreements or reportable events.
Key Facts for Investor Verification
- Verify the effective date of the auditor transition (August 16, 2022) and the specific jurisdictions covered (SEC filings and Singapore Stock Exchange filings).
- Confirm that no disagreements or reportable events existed with the outgoing auditor (EY HK) for the 2020 and 2021 fiscal years.
- Note that this filing is a procedural update regarding corporate governance and does not include operational or financial results for the period.
- Monitor future filings for the first audit report issued by EY SG.