Metropolis Capital Holdings Limited (METROPOLIS CAP) announced that its indirect wholly owned unit, Metropolis International Finance Leasing Co., Ltd. (Metropolis Leasing), signed a finance-leasing agreement on 22 April 2026 with Shanghai Kucang Culture Development Co., Ltd. (Customer B), a company wholly owned by Chairman and CEO Mr. Chau David.
The deal involves Metropolis Leasing purchasing 1,872 boxes of cards from Customer B for RMB2.50 million and leasing them back for 18 months, from the payment date to 25 October 2027. Total lease payments amount to RMB2.66 million, including principal of RMB2.50 million and finance lease income of RMB0.16 million, implying an annualised contract yield of about 4.30%. Lease instalments will be settled monthly starting May 2026.
The leased cards were originally acquired for approximately RMB4.03 million. Ownership remains with Metropolis Leasing during the term, and Customer B may acquire the cards free of charge at expiry provided no breach occurs. The assets will be professionally safeguarded by Shanghai Fangcun Qingkong Cultural Development Co., Ltd. during the lease.
Funding for the acquisition will be sourced from the Group’s internal resources. The transaction is conducted in the ordinary course of business and is expected to generate steady finance-lease income and cash flow for the Group.
Regulatory classification places the transaction as both a discloseable transaction under Chapter 19 and a connected transaction under Chapter 20 of the GEM Listing Rules. Applicable percentage ratios exceed 5% but remain below 25%, and the total consideration is under HK$10 million. Consequently, the deal requires public announcement and reporting but is exempt from shareholder approval, circular, and independent financial advice requirements.
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