Zhitong Financial App News, METROPOLIS CAP (08621) issued an announcement that the group expects to make a pre-tax profit of about 9.5 million yuan for the nine months ended September 30, 2023, an increase of about 625.4% over the profit of about 1.3 million yuan for the nine months ended September 30, 2022.
According to the announcement, the increase is mainly due to (I) the conversion of the provision for losses arising from the recognition of financial lease receivables and post-sale leasing arrangements in the corresponding period to the reversal of loss provisions for lease receivables in the reporting period; (ii) the loss provision for factoring receivables in the reporting period is lower than that in the corresponding period. And (iii) interest on bank and other borrowings decreased as bank and other borrowing balances decreased significantly, resulting in a reduction in financing costs of approximately RMB8.5 million, partly offset by increases in staff costs and other operating expenses and a decrease in total income.