Core Viewpoint - Poly Developments reported a significant decline in net profit by 75.31% for the first three quarters of 2025, primarily due to market fluctuations and decreased project profitability [1] Financial Performance - For the first three quarters of 2025, Poly Developments achieved a contracted sales amount of 201.73 billion yuan, a year-on-year decrease of 16.53%, and a contracted area of 10.10 million square meters, down 25.13% [1] - The company's operating revenue for the same period was 173.72 billion yuan, a decrease of 4.95% year-on-year, with a net profit attributable to shareholders of 1.93 billion yuan, down 75.31% [1] - The net profit excluding non-recurring gains and losses was 1.74 billion yuan, a decline of 76.76% year-on-year [1] Quarterly Analysis - In Q1 2025, Poly Developments reported operating revenue of 54.27 billion yuan, an increase of 9.09%, but net profit decreased by 15.43% [2] - Q2 2025 saw a significant drop in net profit by 85.38%, with operating revenue of 62.59 billion yuan, down 30.07% [2] - Q3 2025 marked a drastic shift, with net profit turning negative at -0.78 billion yuan, a decrease of 299.19%, despite an operating revenue increase of 30.65% to 56.87 billion yuan [2] Market Context - The overall real estate market in China showed a decline, with new residential sales area down 5.5% and sales amount down 7.9% year-on-year for the first three quarters of 2025 [1] - Real estate development investment decreased by 13.9%, and new construction area fell by 18.9% [1] Investment Income - Poly Developments experienced a "cliff-like" drop in investment income, from 1.64 billion yuan in the first three quarters of 2024 to -0.15 billion yuan in 2025 [4] - Investment income from joint ventures and associates fell sharply from 1.52 billion yuan to -0.21 billion yuan, significantly impacting overall earnings [4] - In Q3 2025 alone, investment income turned from profit to a loss exceeding 1 billion yuan, indicating severe external pressures on the company [4]

Group 1 - The project "Zhonghai Wangjinfu" in Yaohai District has successfully launched with sales reaching 170 million yuan, and the clubhouse and demonstration area are expected to open in November [1][4] - The project covers approximately 30,000 square meters with a total construction area of about 88,000 square meters, offering various unit types from 139 to 205 square meters to meet different family needs [4] - Located in a prime area of Hefei, the project showcases unique architectural style and cultural considerations, surrounded by multiple bustling commercial centers [6] Group 2 - The "Fangxinghu TOD" project in Binhu District features 13 buildings with 15-17 floors, offering 470 units with a low entry threshold for new developments [5] - The project includes amenities such as a clubhouse, library, commercial group, children's playground, and private banquet hall, enhancing the living experience [5] - The project aims to provide high-quality living spaces with a focus on modern urban lifestyle [5] Group 3 - Poly Real Estate has signed with the Golden Key International Alliance for three projects in Hefei, indicating an upgrade in property management standards [12][13] - The increasing competition in the Hefei real estate market is leading to higher quality new housing projects, with many utilizing glass curtain walls and stone facades [15] - The "Mingbang Park Yipin" project in Feixi County offers units starting at 3 million yuan, with sizes ranging from 165 to 537 square meters, reflecting the trend of high-quality developments [19][20] Group 4 - The "Longxun Co., Ltd. R&D Base" project is planned in Hefei's Economic and Technological Development Zone, covering an area of approximately 29,148.69 square meters with a total construction area of 93,698.45 square meters [41][45] - The project will include various facilities such as research buildings, a cafeteria, and a conference center, emphasizing the focus on innovation and technology [41][45] - The "Ruihe Technology Co., Ltd. Innovation R&D Center" project is also under planning, with a total area of 22,810.98 square meters and a focus on industrial use [49][53]