Core Viewpoint - Poly Developments' stock price has dropped 13% year-to-date, reflecting a significant contrast with its status as a "central enterprise leader" in the A-share real estate sector [2] Financial Performance - In the third quarter of 2025, Poly Developments reported revenue of 568.65 billion yuan, a year-on-year increase of 30.65%, but total profit turned to a loss of 0.6 billion yuan, with net profit attributable to shareholders dropping to a loss of 7.82 billion yuan, a nearly 300% decline [4] - The company's net profit margin has been severely impacted, with a 75.31% year-on-year decrease in net profit attributable to the parent company, indicating weakened core business profitability [2][4] Project and Cost Structure - The shift in project delivery and high costs from previous acquisitions are contributing to financial strain, with a reported loss of 10 billion yuan from non-consolidated projects in Q3 [6][12] - The average land acquisition cost has surged from 0.68 million yuan per square meter in 2021 to 2.08 million yuan per square meter by the end of 2024, a 205.88% increase, while the average selling price only rose by 12.15% during the same period [13] Market Dynamics and Strategy - The company continues to acquire land aggressively, with 290 million square meters added in the first three quarters of 2025, indicating a structural confidence in high-tier cities despite current profitability challenges [7][8] - The industry is shifting focus from mere sales expansion to prioritizing project profitability and product structure adaptability, reflecting a broader trend in the real estate sector [8] Shareholder Dynamics - The share of net profit attributable to minority shareholders has increased significantly, with the ratio reaching 7:3, indicating a fundamental shift in profit distribution [10][11] - This structural challenge has been exacerbated by the ongoing market adjustments, where cooperative development projects have become a hidden risk source, diluting the company's profit margins [15]

Group 1 - Hangzhou's Fuyang, Lin'an, Tonglu, Chun'an, and Jiande districts will launch a "home purchase + consumption voucher" subsidy program from October 27 to December 31, offering 100,000 yuan electronic vouchers for each new residential unit purchased and signed within the period, totaling 56 million yuan [1] Group 2 - Poly Developments successfully issued 3 billion yuan in medium-term notes, with a 3-year note at a 2% interest rate and a 5-year note at a 2.21% interest rate, both starting from October 22, 2025 [2] Group 3 - Shenzhen Shenfang A reported a net profit attributable to shareholders of 145 million yuan for the first three quarters of 2025, with a revenue of 899 million yuan, marking a year-on-year increase of 331.66% and a net profit increase of 2791.57% [3] Group 4 - China Merchants Jinling's total sales for the first three quarters of 2025 reached approximately 25.662 billion yuan, a decrease of about 8.44% year-on-year, with a total sales area of approximately 994,500 square meters, down 23.26%, while the average selling price increased by 19.32% to approximately 25,800 yuan per square meter [4] Group 5 - Jinke Properties announced a 250 million yuan loan from a restructuring investor as part of its restructuring plan, with a total of at least 750 million yuan to be provided, aimed at supporting the company's liquidity and new project investments [5]

Group 1: Real Estate Loans - As of the end of Q3 2025, the balance of RMB real estate loans reached 52.83 trillion yuan, showing a year-on-year decline of 0.1%, with a reduction of 840 billion yuan in the first three quarters [1] - The balance of real estate development loans was 13.61 trillion yuan, down 1.3% year-on-year, but increased by 925 billion yuan in the first three quarters [1] - The balance of personal housing loans was 37.44 trillion yuan, down 0.3% year-on-year, with a decrease of 241.1 billion yuan in the first three quarters [1] Group 2: Foreign Exchange Management - As of the end of September 2025, the Guangdong branch processed 3,870 transactions for overseas residents purchasing properties in mainland China, with cross-border income amounting to 34.19 billion yuan [2] - The policy of facilitating "Hong Kong and Macau residents' property purchase settlement" has been expanded throughout Guangdong province, effectively meeting the reasonable housing needs of overseas individuals [2] Group 3: Company Developments - On October 27, 2025, Shangkun Real Estate will be delisted due to failure to meet the resumption guidelines set by the stock exchange, reflecting ongoing deterioration in the company's operational and financial conditions [3] - Jinke Co., Ltd. secured a loan of 250 million yuan from related parties to support its restructuring plan, alleviating liquidity pressure and restoring market confidence in its operational sustainability [4] - Poly Developments successfully issued 3 billion yuan in medium-term notes, with proceeds aimed at refinancing maturing debts and improving cash flow, benefiting from low-interest financing advantages [5]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [3][28]. Core Views - The "Good House" policy is expected to create new pathways for recovery in core cities, leading to a resurgence in leading companies and opening new development avenues with "new products, new pricing, and new models" [3][28]. - The current monetary easing cycle highlights the advantages of commercial real estate, with a reassessment of the value of quality commercial properties already beginning to manifest [3][28]. Industry Data Summary New Home Transaction Volume - In the week of October 18-24, 2025, new home transactions in 34 key cities totaled 2.566 million square meters, a decrease of 1.9% week-on-week [4][6]. - Year-on-year, October transactions in these cities fell by 23%, with first and second-tier cities down 20.7% and third and fourth-tier cities down 42.6% [6][7]. Second-Hand Home Transaction Volume - In the same week, second-hand home transactions in 13 cities totaled 1.155 million square meters, down 6.1% week-on-week [12]. - Cumulatively, October transactions were down 20.1% year-on-year, with a significant drop of 38.4% compared to September [12][13]. Inventory and Supply - In the week of October 18-24, 2025, 15 cities launched 710,000 square meters of new supply, with total transactions of 1.05 million square meters, resulting in a transaction-to-launch ratio of 1.48 [20]. - The total available residential area in these cities was 89.75 million square meters, a decrease of 0.4% week-on-week [20]. Policy and News Tracking Macro Policies - The 20th Central Committee's Fourth Plenary Session emphasized the need to promote high-quality development in the real estate sector [28][31]. - The National Bureau of Statistics reported a 13.9% year-on-year decline in real estate investment for the first nine months of 2025, totaling 6.7706 trillion yuan [28][29]. Company Dynamics - China Overseas Development reported a 14% decline in sales revenue for the first nine months of 2025, totaling 170.5 billion yuan [35]. - Poly Development issued new bonds totaling 5 billion yuan with a 2% interest rate and 25 billion yuan with a 2.21% interest rate [35][36]. Market Performance Review - The SW Real Estate Index rose by 1.51%, underperforming the CSI 300 Index, which increased by 3.24%, resulting in a relative return of -1.73% [38]. - The average price-to-earnings (P/E) ratio for mainstream AH-listed real estate companies for 2025 and 2026 is projected at 19.7 and 17.5 times, respectively [38][42].

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [3][40]. Core Views - The report emphasizes the potential of the "Good House" policy to create new pathways for recovery in core cities, leading to a resurgence in leading companies and the opening of new development avenues [3][40]. - It highlights the ongoing monetary easing cycle in China, which is expected to enhance the value of quality commercial real estate [3][40]. Industry Data Summary New Housing Transactions - In the week of October 18-24, 2025, new housing transactions in 34 key cities totaled 2.566 million square meters, a decrease of 1.9% week-on-week [3][4]. - Year-on-year, new housing transactions in October showed a decline of 23% across 34 cities [3][6]. Second-Hand Housing Transactions - In the same week, second-hand housing transactions in 13 cities totaled 1.155 million square meters, down 6.1% from the previous week [3][12]. - Cumulatively, second-hand housing transactions in October were down 20.1% year-on-year [3][12]. Inventory and Sales - The report notes that 15 cities had a total of 710,000 square meters of new housing launched, with a sales-to-launch ratio of 1.48 times [3][21]. - The total available residential area in these cities was 89.75 million square meters, reflecting a 0.4% decrease [3][21]. Policy and News Tracking Macro Policies - The 20th Central Committee's Fourth Plenary Session called for promoting high-quality development in the real estate sector [3][30]. - National statistics revealed a 13.9% year-on-year decline in real estate investment for the first three quarters of 2025, totaling 677.06 billion yuan [3][30]. Company Dynamics - Major state-owned enterprises remain active in financing, with Poly Developments reporting a new guarantee of 41.03 billion yuan for 2025 [3][36]. - China Overseas Development achieved sales of 7.56 million square meters, down 1%, with a revenue of 170.5 billion yuan, down 14% [3][36]. Sector Performance Review - The SW Real Estate Index rose by 1.51%, underperforming compared to the Shanghai and Shenzhen 300 Index, which increased by 3.24% [3][40]. - The report identifies key companies to watch, including China Resources Land, Longfor Group, and Poly Developments, among others [3][40].

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [1] Core Views - The Fourth Plenary Session of the 20th Central Committee emphasizes promoting high-quality development in the real estate sector, despite a decline in sales data [6][13] - The report highlights a significant drop in both new and second-hand housing sales across major cities, indicating a challenging market environment [4][31] - The issuance of credit bonds by real estate companies has seen a substantial increase, suggesting a shift towards more stable financial practices among leading firms [5][6] Summary by Sections Weekly Market Review - The Shenwan Real Estate Index increased by 1.51%, while the CSI 300 Index rose by 3.24%, indicating underperformance of the real estate sector compared to the broader market [3][11] Industry Fundamentals - In the week of October 17-23, the total number of new homes sold in 38 key cities was 27,009 units, reflecting a year-on-year decrease of 14.6% and a month-on-month decrease of 1.7% [4][21] - The total transaction area for new homes was 2.773 million square meters, with a year-on-year decline of 18.9% [21] - For second-hand homes, 19,924 units were sold, down 17.5% year-on-year, with a total area of 192.6 million square meters sold [31] Land Market Analysis - Land supply increased significantly, with 27.053 million square meters supplied, a year-on-year growth of 89.7% [5] - The average land price was 1,731 yuan per square meter, up 4.3% year-on-year [5] Financing Analysis - Real estate companies issued a total of 22.255 billion yuan in credit bonds, marking a year-on-year increase of 197.93% and a month-on-month increase of 305.37% [5][6] Investment Recommendations - The report suggests focusing on financially stable leading real estate companies such as Yuexiu Property, China Merchants Shekou, and Poly Developments, which are better positioned to navigate market fluctuations [6] - Property management companies are also expected to benefit from a recovery in market demand, with recommendations to monitor firms like China Resources Land and Poly Property [6]

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [4][6] Core Insights - The report highlights that the current policy environment is being driven by fundamental pressures, suggesting that the policy response may exceed the measures taken in 2008 and 2014 [4] - Real estate is viewed as an early-cycle indicator, serving as a barometer for economic trends, making it a strategic investment focus [4] - The competitive landscape within the industry is improving, with leading state-owned enterprises and select mixed-ownership and private companies performing well in land acquisition and sales [4] - The report continues to favor investment in first-tier cities and two-thirds of second-tier cities, indicating that this city combination has shown better performance during sales rebounds [4] - Supply-side policies, including land storage and management of idle land, are critical areas to monitor, with first and second-tier cities expected to benefit more [4] Summary by Sections New Housing Market - In the week, new housing transaction area in 30 cities was 2.111 million square meters, down 0.2% week-on-week and down 26.1% year-on-year [2] - The cumulative new housing transaction area for the year in these cities is 78.941 million square meters, reflecting a year-on-year decline of 5.7% [2] Second-Hand Housing Market - The transaction area for second-hand housing in 14 sample cities was 2.117 million square meters, down 4.4% week-on-week and down 16.3% year-on-year [2] - Year-to-date, the cumulative transaction area for second-hand housing is 84.533 million square meters, showing a year-on-year increase of 13.9% [2] Credit Bonds - In the week of October 20-26, 18 credit bonds from real estate companies were issued, totaling 18.030 billion yuan, an increase of 10.155 billion yuan from the previous week [3] - The net financing amount reached 11.171 billion yuan, reflecting an increase of 8.309 billion yuan week-on-week [3] Market Performance - The report notes that the Shenwan Real Estate Index had a cumulative change of 1.5%, lagging behind the CSI 300 Index by 1.73 percentage points, ranking 18th among 31 Shenwan primary industries [14] - A total of 89 stocks in the real estate sector rose this week, with the top five gainers being Xinhua Lian, Mianshi Investment, Wan Fang Development, Rongfeng Holdings, and Shen Zhen Ye A, with gains of 61.0%, 27.6%, 23.4%, 19.8%, and 14.7% respectively [14]

Core Viewpoint - Poly Developments has faced significant financial pressure in 2023, with a 13% decline in stock price and a notable drop in profitability, indicating a shift in its operational dynamics and market challenges [2][3]. Financial Performance - In Q3 2025, Poly Developments reported a revenue of 568.65 billion yuan, a year-on-year increase of 30.65%, but experienced a total profit loss of 0.6 billion yuan, with a net profit loss of 7.82 billion yuan, reflecting a nearly 300% decline [3][5]. - The company's net profit margin has been severely impacted, with a 75.31% year-on-year decrease in net profit attributable to shareholders, and a 76.76% drop in net profit after deducting non-recurring items [2][3]. Project and Cost Dynamics - The shift in development models and high project costs from previous land acquisitions have contributed to the current financial strain, with a reported 10 billion yuan loss from non-consolidated projects [5][10]. - The average land acquisition cost has surged from 0.68 million yuan per square meter in 2021 to 2.08 million yuan per square meter by the end of 2024, a 205.88% increase, while the average selling price has only risen by 12.15% during the same period [11]. Market Position and Strategy - Despite financial pressures, Poly Developments has maintained an aggressive land acquisition strategy, securing 290 million square meters of new floor area at a cost of 603 billion yuan, primarily in core cities [5][6]. - The company remains a leader in the industry with a sales volume of 201.7 billion yuan and a sales area of 10 million square meters in the first three quarters of 2025 [5][6]. Structural Challenges - The share of minority shareholders in net profit has increased significantly, with the ratio of minority shareholder losses surpassing the net profit attributable to the parent company, indicating a fundamental shift in profit distribution [7][9]. - The overall gross profit margin has decreased to 13.4%, down 2.5 percentage points year-on-year, highlighting the ongoing challenges in maintaining profitability amidst rising costs and market fluctuations [10].

Group 1 - The core message of the statement is that Poly Group clarifies its non-involvement in any activities related to "Hong Kong Poly Stablecoin" and "Poly Stablecoin Fund" [1] - Poly Group and its subsidiaries have no equity or affiliation with the companies registered in Hong Kong, namely "Poly Digital Industry Group Limited," "Poly Digital Asset Limited," and "Poly Digital Asset Issuance Limited" [1] - The company urges the public to be vigilant and to report any illegal activities to law enforcement [1]

Core Viewpoint - China Poly Group issued a statement to clarify that it is not involved in any activities related to "Hong Kong Poly Stablecoin" or "Poly Stablecoin Fund" [1] Group 1 - China Poly Group and its subsidiaries have not organized or participated in any business or activities related to Hong Kong stablecoins or stablecoin funds [1] - The companies registered in Hong Kong, namely "Poly Digital Industry Group Limited," "Poly Digital Asset Limited," and "Poly Digital Asset Issuance Limited," have no equity or affiliation with China Poly Group and its subsidiaries [1] - All actions taken by these Hong Kong registered companies are unrelated to China Poly Group, and the group urges the public to be cautious and verify information before engaging in investment activities [1]