METROPOLIS CAP (08621) announced that the group expects to record an increase in pre-tax loss for the fiscal year ending December 31, 2025. The loss is anticipated to widen by approximately RMB 11.4 million, an increase of about 111.8%, from approximately RMB 10.2 million in the 2024 fiscal year to about RMB 21.6 million in the 2025 fiscal year.
The increase in the pre-tax loss is primarily attributable to (i) a decrease in revenue of approximately RMB 21.7 million; and (ii) an increased recognition of impairment losses on other receivables. This was partially offset by (a) a decrease in the recognition of impairment losses on finance lease receivables and receivables arising from sale and leaseback arrangements; (b) a reversal, rather than recognition, of an impairment loss on financial guarantee contract liabilities; and (c) reductions in other operating expenses, employee costs, and financing costs.
The expansion of the group's automobile finance leasing business and financial leasing advisory services business has slowed. Consequently, the group's revenue, particularly from financial leasing advisory services, decreased during the 2025 fiscal year. The group's current focus is on taking proactive measures to recover receivables, such as selling finance lease vehicles and pursuing legal action against defaulting customers.
Although both lease receivables and factoring receivables decreased in the 2025 fiscal year, impairment losses were still recognized due to the extended delinquency period of certain amounts. The increased impairment on other receivables resulted from higher advances provided to supporting service suppliers following defaults by financial leasing advisory clients. Management will closely monitor the performance of the group's assets and will take action as appropriate.
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