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]