Metropolis Capital Holdings Limited ("Metropolis Capital" or the "Company", stock code: 8621, together with its subsidiaries, the "Group") today announced its plan to seek a listing on GEM of The Stock Exchange of Hong Kong Limited ("Stock Exchange") through placing of 180,000,000 shares and public offering of 20,000,000 shares (together, the "Share Offer"), to raise a maximum of HK$100 million based on the high-end of the indicative offer price range of HK$0.39 per share and HK$0.50 per share.  
 
The Company's public offer commenced on 30 November 2018, and the application lists will be closed at noon on 5 December 2018. Dealings in the Company's shares will start on 12 December 2018. Shares will be traded in board lots of 8,000 shares each. Based on the high-end of the indicative offer price range, the subscription price (after expenses) for one board lot of the Company's shares will be HK$4,040.31.
 
Octal Capital Limited is the sole sponsor, while Emperor Securities Limited is the lead manager and sole bookrunner, and Success Securities Limited is the co-lead manager for the proposed IPO of Metropolis Capital.
 
The Group intends to use approximately 95 per cent of the net proceeds to expand its capital base for its finance leasing operations and approximately 5 per cent to provide funding for its working capital and other general corporate purposes.
 
The Group's revenue for the years ended 31 December 2016 and 2017 amounted to approximately RMB44.1 million and RMB49.7 million respectively; for the six months ended 30 June 2017 and 2018 the revenue was approximately RMB26.2 million and RMB25.2 million respectively. The Group's revenue was mainly derived from vehicle finance leasing, which contributed to approximately 90.5 per cent, 96.4 per cent, 98.8 per cent of the revenue for the years ended 31 December 2016 and 2017 and the six months ended 30 June 2018, respectively. The Group's finance leases cover commercial vehicles and passenger vehicles, and comprise mainly sale and leaseback and a small amount of direct finance leasing. The Group began to provide inventory finance leasing to auto dealers of international luxury brands in late 2017.
 
The Group recorded profits of approximately RMB6.5 million, RMB5.1 million and RMB2.7 million for the years ended 31 December 2016 and 2017 and the six months ended 30 June 2018, respectively, representing net profit margins approximately of 14.8 per cent, 10.2 per cent and 10.6 per cent respectively.
 
During each of the years ended 31 December 2016 and 2017 and the six months ended 30 June 2018, the Group entered into 751, 554 and 205 vehicle finance leases respectively; the average net financing amount per lease was approximately RMB404,505, RMB437,575 and RMB1,018,393 respectively.
 
The Group has developed a risk management system tailored to the characteristics of its business operations and focused on managing risks through comprehensive due diligence and multi-level approval and on-going monitoring processes. For vehicle finance leasing business, the Group also adopts the E-Leasing System to manage each customer's portfolio effectively by controlling the overall vehicle finance lease operation in its internal system and the GPS online system to keep track of the location of the leased vehicles.
 
"We intend to become a leading finance leasing company in the PRC specialising in vehicle finance leasing and to expand the size of our portfolio, achieve deeper market penetration within our existing business network," said Mr David Chau, the Chairman of Metropolis Capital.
 
"We believe that our listing could enhance transparency of our operations, corporate profile and brand image, thereby increasing our ability to attract potential customers, allow the Group to gain access to the capital market for equity financing for our existing operations and future expansion and broaden our debt financing sources at more favourable terms," Mr Chau added.
 
According to the industry report by Beijing Heading Century Consulting Co., Ltd., driven by the rapid developments of the vehicle rental market and the online car hailing market, the total sales volume of passenger vehicles through finance leasing has increased and is expected to exceed 3.28 million by 2020. Moreover, with the development of logistics, tourism, medical, education and other industries in the PRC, the market demand for commercial vehicles has increased rapidly as well. By 2020, the penetration ratio of finance leasing in commercial vehicles in the PRC is expected to reach 11 per cent, representing 587,800 commercial vehicles, offering the Group significant market opportunities.
 
 
 
 
 
About Metropolis Capital
Metropolis Capital is a well-established finance leasing company in the PRC focusing on vehicle finance leasing. It primarily provides customised vehicle finance leasing to its customers. Headquartered in Shanghai, the Group has five branch offices in the PRC namely Shanghai municipality, Jiangsu province, Guizhou province, Shandong province and Jiangxi province. The Group differentiates itself by being able to provide flexible and accessible finance leasing solutions to its customers which suit their needs. During the track record period, the Group focused its efforts on providing vehicle finance leasing to SMEs and individuals. The Group's customers cover more than five provinces, municipalities and autonomous region.
 
 
Issued by: Metropolis Capital Holdings Limited
Through: CorporateLink Limited
 
Media Enquiries: CorporateLink Limited

Shiu Ka Yue	Tel: 2801 6239	Email: sky@corporatelink.com.hk
Christine Chan	Tel: 2801 6090	Email: christine@corporatelink.com.hk
Kelly Laing	Tel: 2801 6045	Email: kellyl@corporatelink.com.hk

 
 
Metropolis Capital Holdings Limited
Stock code: 8621
Share Offer Statistics / Financial Information
 
 Share Offer Summary:

Stock code:	8621
Number of offer shares:	200,000,000 shares
Number of placing shares:	180,000,000 shares (subject to reallocation)
Number of public offer shares:	20,000,000 shares (subject to reallocation)
Offer price:	Not more than HK$0.50 per offer share and not less than HK$0.39 per offer share
Market capitalisation:	HK$400 million, based on the offer price of HK$0.50 per offer share
Unaudited pro forma adjusted consolidated net tangible assets per share:	RMB0.29 per share, based on the offer price of HK$0.50 per offer share
Net proceeds from the share offer	RMB65.1 million, based on the offer price of HK$0.50 per offer share
Public offer to commence on:	Friday, 30 November 2018
Public offer to close on:	Wednesday, 5 December 2018
Expected price determination date:	Wednesday, 5 December 2018
Announcement of the level of indications of interest in the placing and the level of applications in the public offer:	Tuesday, 11 December 2018
Dealings in the shares to commence on:	Wednesday, 12 December 2018

 
Use of proceeds:
Metropolis Capital intends to apply the net proceeds from the share offer as follows:

	(%)
Expand capital base for finance leasing operations	Approx. 95%
Provide funding for working capital and other general corporate purposes	Approx. 5%

 

 
 
Financial Highlights:

	Year ended 31 December		Sixth months ended 30 June
	2016 RMB	2017 RMB	2017 RMB (unaudited)	2018 RMB
Total Revenue	44,098,209	49,661,039	26,232,568	25,235,720
Vehicle finance leasing	39,888,211	47,839,568	24,986,330	24,939,425
Machinery and equipment finance leasing	4,209,998	1,502,849	1,211,282	296,295
Factoring income	-	318,622	34,956	-
Profit (loss) before tax	8,781,602	6,848,562	(402,947)	3,619,136
Profit (loss) and total comprehensive income (expense) for the year/ period	6,510,157	5,082,389	(337,961)	2,667,607