METROPOLIS CAP issued a profit warning, expecting a mid-term pre-tax loss of approximately 24 million yuan, a year-on-year turnaround from profit to loss
METROPOLIS CAP issued a profit warning, expecting a mid-term pre-tax loss of approximately 24 million yuan for the period ending June 30, 2025, a decrease of about 595% compared to a surplus of 48 million yuan in the same period last year. The loss is mainly due to a decrease in revenue, particularly a decline in income from financing leasing consulting services, as well as an increase in provisions for losses on factoring receivables, partially offset by a reduction in other operating expenses and employee costs
According to the announcement from METROPOLIS CAP (08621), the group expects to incur a pre-tax loss of approximately RMB 24 million for the six months ending June 30, 2025, compared to a pre-tax profit of approximately RMB 48 million for the corresponding period ending June 30, 2024, representing a decrease of about 595.0%. This decrease is mainly due to a reduction in revenue, particularly from financing leasing consulting service income due to a contraction in related business scale; a shift from a reversal of bad debt provisions for factoring receivables in the corresponding period to a recognition of bad debt provisions for factoring receivables in the reporting period; and an increase in bad debt provisions for other receivables and financial guarantee contract liabilities, partially offset by a decrease in other operating expenses and employee costs
