Summary of Poly Property Conference Call Company Overview - **Company**: Poly Property - **Industry**: Property Management Key Financial Metrics - Revenue growth of 6.6% in H1 2025, reaching 8.39 billion yuan [3] - Net profit growth of 5.3%, totaling 890 million yuan [3] - Cash on hand is 11.6 billion yuan, with a low debt ratio and no interest-bearing debt [3] - Third-party property management revenue increased by nearly 20% [2] - Contract amount for market expansion grew by 17.2% to 1.41 billion yuan [2] Operational Strategies - Implemented organizational restructuring to independently operate residential, commercial, and community sectors [2] - Established engineering and community asset management companies to enhance market expansion efficiency [2] - Focused on high-quality projects in the second-hand residential market, achieving a 47% increase in contract amount [4][9] - Continued to control management expenses, with a management expense ratio of 5.3% [9] Profitability Insights - Stable gross margin for property management and owner value-added services, but a significant decline in non-owner value-added gross margin due to real estate market conditions [6] - Non-owner value-added business strategies include adjusting office rental conditions to improve occupancy rates and leveraging engineering services for new revenue streams [7] - Expected gross profit for 2025 to be stable or slightly increased compared to 2024, with revenue and profit growth guidance of no less than 5% [8] Market Expansion and Client Engagement - Over 30% of new contracts came from existing clients, indicating strong client retention [5] - Focus on differentiating market strategies since 2016, emphasizing quality over quantity in project selection [4] - Plans to enhance talent acquisition and optimize compensation mechanisms to attract quality personnel [5] Future Outlook - Anticipated stability in property management business with slight fluctuations in gross margin [8] - Continued exploration of new growth points to maintain overall gross margin stability [7] - No specific quantitative targets for future project expansion, but a commitment to steady growth in active markets [9]

Group 1: Capacity and Profitability - The company's current capacity utilization rate remains high, with strong customer demand and sufficient orders on hand for 2025 [2] - Future gross margin will be influenced by product structure, raw material prices, scale effects, and market competition, but is expected to remain stable due to the increasing proportion of high-value-added products and ongoing cost control [2][3] Group 2: Technological Strength and R&D - The company possesses strong technological capabilities with independent R&D and industrialization abilities, having achieved international advanced levels in key products such as wind power main shaft bearings and shield machine main shaft bearings [3] - The company emphasizes R&D as a key driver for growth, focusing on cutting-edge technology and core product iterations, while establishing a dynamic R&D investment mechanism to maintain its technological leadership [3] Group 3: Product Development and Market Strategy - Progress in the single-row tapered roller bearings (TRB) sector is positive, with mass production and supply already achieved, and the company aims to enhance product reliability and market competitiveness [3] - The company plans to continue optimizing TRB product performance and increase market promotion efforts to meet market demand [3]

Core Viewpoint - The company has shown solid growth in revenue and profit for 2024, with a focus on maintaining stability in its core electric equipment business while expanding its overseas market presence [2][4]. Financial Performance - In 2024, the company reported a revenue of 2.322 billion, representing an 18.41% year-on-year increase [2]. - The net profit attributable to shareholders was 614 million, up 13.25% year-on-year [2]. - The net profit after deducting non-recurring items was 582 million, reflecting a 15.79% increase [2]. Business Segments - The electric equipment segment generated 1.811 billion in revenue, with an 11.47% year-on-year growth, although its revenue share decreased [2]. - The gross profit margin for the electric equipment business remained stable, while the gross margin for numerical control equipment slightly declined [2]. - The overseas business saw significant growth, achieving approximately 485 million in revenue, with a year-on-year increase of over 40% [2]. Domestic Market Insights - The domestic electric equipment business experienced modest growth, attributed to the end of a previous investment peak in the new energy sector [2]. - The company remains optimistic about domestic growth due to recent economic stimulus policies [3]. Overseas Market Strategy - The company is focusing on localizing its overseas operations, including establishing sales teams in France and Italy, and expanding its presence in Southeast Asia with Singapore as a hub [3][4]. - The indirect export growth has doubled, indicating an increase in market share and recognition among overseas clients [3]. Supply Chain and Production - The company has achieved over 80% self-sufficiency in component manufacturing, mitigating the impact of tariffs on production costs [3]. - There are no immediate plans for significant capacity expansion domestically, as current production capabilities are deemed sufficient [4]. Future Outlook - The company maintains a long-term growth strategy despite potential global economic challenges, emphasizing the importance of overseas market expansion [3][4]. - The focus will be on enhancing production efficiency and optimizing processes rather than pursuing aggressive scale expansion [4].