Metropolis Capital expects the net profit attributable to shareholders to decline by about 50% YoY in the mid-term, before tax.
AInvestTuesday, Aug 13, 2024 6:00 am ET
1min read

Metropolis Capital (08621) expects the net profit attributable to the Group for the six months ended 30 June 2023 to decrease by approximately 50% to approximately RMB108 million before tax from the net profit attributable to the Group for the six months ended 30 June 2023 before tax of approximately RMB216 million. The decrease is primarily due to the change of reporting loss provision for receivables from loss provision for receivables from financing leases and sale and leaseback arrangements during the corresponding period; increase in other operating expenses, partially offset by increase in income mainly due to increase in income from financing lease advisory services; net recovery of loss provision for receivables from financing leases; and decrease in financing costs.

The Group recognized net loss provision for receivables from leases of approximately RMB10 million during the reporting period, as compared to net recovery of loss provision for receivables from leases of approximately RMB11.9 million during the corresponding period, mainly due to the recovery of long overdue receivables from major customers during the corresponding period. The Group recovered loss provision for receivables from factoring of approximately RMB2.4 million during the reporting period, as compared to recognition of loss provision for receivables from factoring of approximately RMB0.9 million during the corresponding period. The improvement of loss provision for receivables from factoring is mainly due to the recovery of several overdue receivables from factoring during the reporting period. Management will continue to monitor the performance of the Group's assets and take timely actions.

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