Group 1 - The new Federal Reserve Governor, Milan, advocates for aggressive interest rate cuts, suggesting a reduction of at least 150 to 200 basis points from the current range of 4.00%-4.25% [2] - Milan's stance is based on the concept of "neutral interest rate," which he believes is currently around 2%, significantly lower than the existing federal funds rate [2] - He attributes the previous higher neutral rate to government borrowing and increased immigration, which have now slowed due to tightened border policies and rising tariff revenues [2] Group 2 - No new issuances were reported in the primary market today [4] - Three companies had their ratings updated, including New World Development, which terminated a subscription agreement due to current market conditions [5] - Shimao Group is actively negotiating loan extensions and restructuring with domestic creditors, with approximately RMB 22.8 billion of loans successfully extended [5] - Poly Property Group announced a reduction in the coupon rate of a bond by 180 basis points, effective from November 1, 2025 [5] Group 3 - The Hong Kong Monetary Authority is expanding its RMB trade financing liquidity arrangement to support offshore RMB business growth [10] - The People's Bank of China conducted a reverse repurchase operation of CNY 165.8 billion at a rate of 1.40%, with a net injection of CNY 4.115 billion for the day [10]

Core Viewpoint - In the context of a deep adjustment in the real estate industry, Poly Real Estate has achieved a counter-cyclical rise through a steady operational strategy, with its sales ranking significantly improving from 60th in 2021 to 15th by mid-2025, demonstrating strong resilience in development [2]. Group 1: Sales Performance - In the first half of 2025, Poly Real Estate achieved a total contract sales amount of 26.7 billion yuan, a year-on-year decrease of 6%, which is better than the average decline of 11.4% among the top 100 real estate companies [4]. - The average contract sales price reached 27,763 yuan per square meter, an increase of 8.7% compared to 2024, marking a new high in recent years [5]. - High-quality projects have supported steady performance, with notable sales records in Shanghai and Shenzhen, contributing to the company's sustained sales scale above 50 billion yuan for five consecutive years [4][5]. Group 2: Land Acquisition Strategy - Poly Real Estate has maintained a strong land acquisition capability, focusing on core cities, with 41% of new land reserves in first-tier cities in 2023 and 93% in first and second-tier cities combined [6][9]. - The company has continuously increased its land reserves in the Yangtze River Delta, with a significant portion of new land acquisitions located in Shanghai, Hangzhou, and Guangzhou [9]. Group 3: Financial Structure - The company has shown strong financing capabilities, completing three bond issuances totaling 4 billion yuan in the first half of 2025, with interest rates below 2.7% [10]. - By mid-2025, Poly Real Estate's cash holdings reached 28.5 billion yuan, maintaining a cash-to-total assets ratio of over 15% since 2021, indicating a solid liquidity position [10]. - The company's financial indicators have improved, with all three red lines turning green for the first time, reflecting a continuous optimization of its financial situation [10]. Group 4: Diversification and Shareholder Returns - Poly Real Estate has made progress in diversified operations, with investment property income growing from 779 million yuan in 2021 to 865 million yuan in 2024, providing stable cash flow [15]. - The property management business has also seen steady growth, with revenue increasing from 1.021 billion yuan in 2021 to 1.206 billion yuan in 2024 [15]. - The company has committed to a dividend policy guaranteeing a payout ratio of no less than 40% of net profit attributable to shareholders over the next three years, doubling the historical average [17].

Investment Highlights - Company is covered for the first time by CICC with an "outperform" rating and a target price of HKD 2.15, corresponding to 0.24x P/B for 2025/2026 and an upside potential of 28% [1] - Company is an important real estate development platform under Poly Group, demonstrating stable operational performance during the current downturn cycle [1] - The low valuation is a prerequisite, as the company's fundamentals have not been fairly priced due to previous impacts from "peer competition" and governance uncertainties [1] Operational Performance - Despite a 44% and 68% cumulative decline in new home sales nationally and among the top 100 developers from 2020 to 2024, the company's total sales remained stable at RMB 50-60 billion, improving its industry ranking by 50 positions to 17th [1] - The company is expected to achieve its annual sales target of RMB 50 billion, with a possibility of slight year-on-year growth [1] Valuation and Market Position - The reasonable valuation range is estimated at 0.35-0.45x P/B based on NAV models and comparable companies in the industry [1] - The company possesses unique attributes such as being a central enterprise and a small-to-mid-cap stock, which are rare in the market [1] - The current trading at 0.17x P/B reflects a 63% discount to NAV, indicating high valuation potential [2] Catalysts and Future Outlook - Anticipated catalysts include potential outperformance in sales and land acquisition in Q4 2025, driven by policy support and improved operational performance [2] - The company is viewed as one of the few central enterprise real estate firms with high valuation cost-effectiveness, with expectations for operational improvements exceeding market forecasts [2]

Core Viewpoint - CICC initiates coverage on Poly Real Estate (00119) with an "outperform" rating and a target price of HKD 2.15, indicating a 28% upside potential based on 0.24x P/B for 2025/2026 [1][2] Investment Recommendations - Expected EPS for the company in 2025 and 2026 is projected at HKD 0.04 each, with current trading at 0.17x P/B and a 63% discount to NAV. The target price of HKD 2.15 per share corresponds to a 28% upside and a 52% NAV discount [2] - Potential catalysts include sales and land acquisition performance exceeding market expectations in Q4 2025 [2] Valuation Insights - The company has faced long-term pressure on its stock price due to "peer competition" and governance uncertainties, but these issues are being resolved, leading to improved operational and asset quality during the industry downturn. The reasonable valuation range is estimated at 0.35-0.45x P/B based on NAV models and comparable companies [3] Market Positioning - The company possesses unique attributes such as being a Deep Hong Kong Stock Connect target, a state-owned enterprise, and a small-to-mid-cap stock. Low trading activity has constrained value release, but the relatively loose liquidity in the Hong Kong market since the beginning of the year has created a favorable environment for value discovery [4] Operational Performance - From 2020 to 2024, national and top 100 new home sales declined by 44% and 68%, respectively, while the company maintained stable sales between RMB 50-60 billion, improving its industry ranking by 50 positions to 17th. The company is highly likely to achieve its annual sales target of RMB 50 billion, with a potential for slight year-on-year growth [5]

Core Viewpoint - CICC initiates coverage on Poly Real Estate (00119) with an "outperform" rating and a target price of HKD 2.15, indicating a 28% upside potential based on 2025/2026 P/B ratios of 0.24 [1][2] Investment Recommendations - Expected EPS for the company in 2025 and 2026 is projected at CNY 0.04 each year, with current trading at 0.17 times P/B and a 63% discount to NAV. The target price reflects a 28% upside and a 52% NAV discount [2] Valuation Insights - The company has faced long-term pressure on its stock price due to "peer competition" and governance uncertainties. However, with these issues resolved, the company's operational and asset quality have improved during the industry downturn. The reasonable valuation range is estimated at 0.35-0.45 times P/B based on NAV models and comparable companies [3] Market Positioning - The company possesses unique attributes such as being a Deep Hong Kong Stock Connect target, a state-owned enterprise, and a small to mid-cap stock. The low trading activity has been a constraint on value realization, but the relatively loose liquidity in the Hong Kong market since the beginning of the year has created a favorable environment for value discovery [4] Operational Performance - From 2020 to 2024, national and top 100 new home sales declined by 44% and 68%, respectively, while the company's total sales remained stable at CNY 50-60 billion, improving its industry ranking by 50 positions to 17th. The company is highly likely to achieve its annual sales target of CNY 50 billion, with potential for slight year-on-year growth [5]

(Incorporated in Hong Kong with limited liability) （於香港註冊成立的有限公司） (Stock code 股份代號：00119) N OT IF IC ATI ON LET TE R 通知信函 Dear Non-registered Shareholder(Note 1) , Poly Property Group Co., Limited (the "Company") – Notice of Publication of the 2025 Interim Report (the "Interim Report") The English and Chinese versions of the Company's Interim Report are available in the Investor Relations section of the Company's website at www.polyhongkong.com and on the website of Hong Kong Exchanges and Clearing Limited ...

(Incorporated in Hong Kong with limited liability) （於香港註冊成立的有限公司） 26 September 2025 Dear Registered Shareholder, Poly Property Group Co., Limited (the "Company") – Notice of Publication of the 2025 Interim Report (the "Interim Report") The English and Chinese versions of the Company's Interim Report are available in the Investor Relations section of the Company's website at www.polyhongkong.com and on the website of Hong Kong Exchanges and Clearing Limited ("HKEX") at www.hkexnews.hk. If you have previously ...

Financial Performance - The group's revenue for the first half of 2025 was RMB 18.444 billion, an increase of RMB 5.988 billion or 48.1% compared to RMB 12.457 billion in the same period of 2024[9]. - Shareholders' profit for the first half of 2025 was RMB 208 million, a decrease of RMB 165 million or 44.3% from RMB 373 million in the same period of 2024[9]. - The group completed contract sales amounting to RMB 26.7 billion in the first half of 2025, a decrease of 6% year-on-year[10]. - The average contract sales price increased by 9% year-on-year to RMB 27,763 per square meter[10]. - In the first half of 2025, the company achieved a revenue recognition amount of approximately RMB 17.367 billion, with a recognized area of about 814,000 square meters[20]. - The company reported a significant increase in the revaluation reserve, which rose to RMB 853,405,000 as of June 30, 2025, from RMB 803,510,000 in the previous year[57]. - Total revenue for the six months ended June 30, 2025, was RMB 18,444,209, with RMB 17,458,481 from property development and RMB 913,687 from property investment and management[72]. - The group reported a profit before tax of RMB 1,375,975, with income tax expenses of RMB 1,143,493, resulting in a net profit of RMB 232,482[72]. Project Development - The group acquired 9 real estate development projects, adding approximately 1.183 million square meters of land reserves, with a 74% equity stake[11]. - The company plans to launch nine new projects in the second half of 2025, including locations in Shanghai, Hangzhou, Guangzhou, Shenzhen, Jinan, and Weihai[17]. - Six new projects were commenced in the first half of 2025, with a total construction area of approximately 511,000 square meters[18]. - The newly added land reserve in the first half of 2025 includes nine projects with a total planned construction area of approximately 1.183 million square meters[23]. - The Guangzhou Liwan project has a planned total construction area of approximately 253,000 square meters, located in a core business district[25]. - The Hangzhou West Lake project has a planned total construction area of approximately 68,000 square meters, benefiting from proximity to Zhejiang University[27]. - The Jinan Lixia District A1 project has a planned total construction area of approximately 168,000 square meters, situated in the city’s core area[28]. - The Weihai Huancui project has a planned total construction area of approximately 120,000 square meters, located in a central area with complete amenities[31]. Financial Position - As of June 30, 2025, the company's total equity attributable to shareholders was RMB 34.19 billion, with a net asset value per share of RMB 8.95[39]. - The company's debt-to-asset ratio was 75.9% as of June 30, 2025, a slight decrease from 76.6% at the end of 2024[39]. - The company had outstanding bank and other borrowings totaling RMB 68.20 billion, with 25.6% due within one year[40]. - The company’s liquid assets amounted to RMB 78.39 billion, with total bank deposits of RMB 28.47 billion as of June 30, 2025[41]. - The value of mortgaged investment properties increased to RMB 6.43 billion as of June 30, 2025, compared to RMB 5.53 billion at the end of 2024[43]. - The maximum guarantee amount provided to banks for mortgage loans reached RMB 17.82 billion as of June 30, 2025, down from RMB 23.50 billion at the end of 2024[44]. - The company’s total liabilities decreased to RMB 12,392,755,000 as of June 30, 2025, compared to RMB 10,933,352,000 in the previous year, indicating a shift in financial structure[57]. Cash Flow and Investments - Cash flow from operating activities showed a net outflow of RMB 2,100,537,000 for the six months ended June 30, 2025, compared to a net inflow of RMB 2,735,959,000 in 2024[59]. - The company incurred a total of RMB 1,204,877,000 in cash outflow from investing activities for the six months ended June 30, 2025, compared to RMB 804,247,000 in 2024, indicating an increase in investment expenditures[59]. - New borrowings amounted to RMB 7,947,367,000 in the first half of 2025, a decrease from RMB 10,426,686,000 in the same period of 2024[59]. - The cash and cash equivalents at the end of June 30, 2025, were RMB 28,304,708,000, down from RMB 33,590,263,000 at the end of June 30, 2024, representing a decrease of approximately 16%[59]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules during the review period[130]. - The audit committee, consisting of three non-executive directors and four independent non-executive directors, reviewed the accounting principles and practices adopted by the group[134]. - The company confirmed compliance with the standard code regarding securities trading by directors for the six months ending June 30, 2025[132]. - The company has taken sufficient measures to ensure its corporate governance practices meet or exceed the standards set forth in the corporate governance code[131]. Shareholder Information - The total number of issued shares as of June 30, 2025, is 3,821,183,118[114]. - China Poly Group holds 1,837,526,304 shares, representing 48.09% of the company's issued shares[118]. - Poly Development Holdings Group holds 1,583,738,058 shares, accounting for 41.45% of the company's issued shares[118]. - Ting Shing Holdings Limited indirectly holds 1,463,356,514 shares, which is 38.30% of the company's issued shares[118]. - The company did not declare an interim dividend for the six months ended June 30, 2025, consistent with the previous period[82].

Investment Rating - The report rates the real estate industry as "Outperform" compared to the market [1]. Core Insights - The real estate market in August 2025 showed a narrowing year-on-year decline in transaction volume due to low base effects, while land auction premiums in first-tier cities reached a six-year high [1][2]. - The overall performance of the real estate sector underperformed the CSI 300 index, with an absolute return of 6.5% and a relative return of -3.9% [2][13]. - The report emphasizes the importance of policy adjustments in major cities to stimulate market activity, particularly in Beijing, Shanghai, and Shenzhen [4][24]. Summary by Sections New Home Transactions - In August, new home transaction area in 40 cities was 859.1 million square meters, down 0.5% month-on-month and down 13.5% year-on-year, with a cumulative decline of 5.0% for the first eight months [14][17]. - First-tier cities experienced an expanded year-on-year decline in new home transactions, while second-tier cities saw a narrowing decline, and third- and fourth-tier cities turned positive [15][16]. Second-Hand Home Transactions - Second-hand home transaction area in 18 cities was 715.6 million square meters in August, down 9.2% month-on-month and down 6.4% year-on-year, with a cumulative increase of 7.5% for the first eight months [22][23]. - Year-on-year declines in second-hand home transactions narrowed in first- and second-tier cities, while third- and fourth-tier cities showed positive growth [23]. Inventory and Absorption - New home inventory increased month-on-month, with an overall absorption cycle of 17.1 months, down 0.3 months from the previous month [4][9]. - The average opening absorption rate in 30 cities improved to 42% in August, up 9 percentage points month-on-month and 13 percentage points year-on-year [4][9]. Land Market - Overall land auction activity declined month-on-month, but first-tier cities saw land premium rates reach a six-year high, averaging 22.3% [4][12]. - The average land floor price decreased by 13.4% month-on-month and 21.5% year-on-year [12]. Real Estate Companies - The top 100 real estate companies reported a sales decline of 16.5% year-on-year in August, with a total sales amount of 225.6 billion yuan [4][12]. - The land acquisition amount for the top 100 companies increased by 34.9% year-on-year in August, although it decreased by 27.1% month-on-month [4][12]. Financing - The financing scale for the real estate industry decreased both year-on-year and month-on-month in August, with a total issuance of 55.3 billion yuan [4][12]. - The average issuance interest rate was 2.51%, showing a slight decrease compared to previous periods [4][12]. Policy - Recent policy adjustments in major cities aim to support the real estate market, with a focus on urban renewal and easing purchase restrictions [4][24]. - The report highlights the significance of these policies in stabilizing market expectations and promoting demand [4][24].

保利置业集团(00119)发布公告，龚健先生因已达退休年龄，已于2025年9月18日起退任公司非执行董 事、审核委员会及提名委员会成员职务。 ...