Core Points - The company announced an adjustment to the conversion price of its convertible bonds based on the 2024 profit distribution plan, reducing the price from 16.09 CNY to 15.92 CNY per share [2][5] - The adjustment will take effect on August 20, 2025, following the company's cash dividend distribution of 1.70 CNY per 10 shares [3][5] Summary of Convertible Bonds - The company issued 85 million convertible bonds with a face value of 100 CNY each, raising a total of 850 million CNY, netting 847.875 million CNY after deducting issuance costs [2] - The initial conversion price was set at 16.09 CNY per share, with the conversion period starting six months after the issuance [2] Basis for Conversion Price Adjustment - The adjustment is based on the company's profit distribution plan approved at the third extraordinary general meeting on July 1, 2025, which includes a cash dividend of 1.70 CNY per 10 shares [3][4] - The adjusted conversion price formula is P1 = P0 - D, where D is the cash dividend per share [4] Results of Conversion Price Adjustment - The adjusted conversion price is calculated to be approximately 15.92 CNY per share, effective from the ex-dividend date of August 20, 2025 [5] - The cash dividend per share, after considering the total share capital, is approximately 0.1685 CNY [5][9] Profit Distribution Plan - The profit distribution plan for the fiscal year 2024 includes a cash dividend of 0.17 CNY per share, totaling approximately 2.017 billion CNY [7][9] - The distribution will be made to all shareholders registered by the close of trading on August 19, 2025 [8] Tax Implications - For individual shareholders, the cash dividend will not be subject to withholding tax at the time of distribution, with tax calculated based on the holding period upon sale of shares [13] - For qualified foreign institutional investors (QFII), a 10% withholding tax will apply, resulting in a net cash dividend of 0.153 CNY per share [14]

Core Viewpoint - Poly Developments and Holdings Group Co., Ltd. is issuing convertible bonds to specific investors, maintaining a credit rating of AAA with a stable outlook, supported by strong shareholder backing and a solid financial policy [2][24]. Financial Overview - Total assets as of 2022 were 1,470.46 billion, decreasing to 1,436.91 billion in 2023 and projected to be 1,335.11 billion in 2024 [5]. - Total liabilities decreased from 1,148.27 billion in 2022 to 1,099.89 billion in 2023, with a further decline to 992.58 billion expected in 2024 [5]. - Net profit for 2022 was 27.01 billion, dropping to 17.90 billion in 2023, with a forecast of 9.74 billion for 2024 [5]. - EBITDA for 2022 was 41.83 billion, decreasing to 32.80 billion in 2023, with a projected 22.47 billion for 2024 [5]. Industry Position - The company is a major platform for the Poly Group in real estate development, benefiting from strong brand recognition and market position [4][8]. - Despite a 23.49% decline in sales in 2024, the company maintained its leading industry position, ranking first in total sales for two consecutive years [12][22]. - The company focuses on core urban areas for land reserves, with a total building area of 125.74 million square meters as of the end of 2024 [12]. Risk Factors - The real estate industry faces challenges such as market demand fluctuations and project management pressures, particularly in areas with significant market downturns [4][6]. - The company is actively working on optimizing its land use through various strategies, including land conversion and withdrawal, to mitigate risks associated with unsold inventory [12][22]. Financing and Cash Flow - The company primarily relies on bank loans for financing, with a comprehensive financing cost decreasing to 3.1% by the end of 2024 [12][22]. - As of the end of 2024, the company had a total bank credit limit of 750 billion, with 314.9 billion remaining unused, indicating strong liquidity [15][22]. Future Outlook - The company anticipates a slight decline in real estate sales and investment in 2025, with revenue expected to decrease marginally [18][20]. - The overall economic environment is projected to improve, with supportive policies expected to bolster the real estate sector [8][9].