PDH(SH:600048)2025-07-03 15:28Summary of Poly Developments Conference Call Company Overview - Company: Poly Developments - Industry: Real Estate Development Key Points and Arguments 1. Expansion and Investment: Poly Developments has achieved a total expansion amount of 42 billion yuan this year, maintaining a high equity ratio of 85%. The proportion of incremental projects has increased to 65%, indicating strong investment activity in new projects [2][3] 2. Market Performance: In the first five months of 2025, the company reported a cumulative sales amount of 116 billion yuan, a year-on-year decrease of 12%. Despite this, the company performed relatively well within the industry, with major cities like Guangzhou, Shanghai, and Beijing contributing significantly to sales [3] 3. Market Conditions: The overall real estate market is experiencing downward pressure, with the company noting that the market has been underperforming expectations each month this year. The third quarter's market conditions are difficult to predict due to potential impacts from seasonal factors and policy changes [4] 4. High-Performing Cities: Core cities such as Shanghai and Guangzhou are experiencing high market activity. For instance, the Poly Tianyu project achieved a sales rate of 96% upon its launch, indicating strong demand in these areas [5] 5. Policy Impact in Guangzhou: The tightening of housing area ratios in Guangzhou aims to stabilize land and housing prices but may negatively affect the new housing market. In contrast, Hangzhou maintains stable ratios to ensure predictable land prices [6] 6. Government Response: Local governments are cautious regarding the recent decline in the real estate market and have not yet defined specific stimulus measures. The company emphasizes that long-term recovery relies on macroeconomic stability and confidence restoration rather than short-term policies [7] 7. On-Site Sales Policy: The company has successfully implemented on-site sales in Sanya, achieving significant sales figures. They have shortened the preparation time for projects to 14-16 months, demonstrating that the financial turnover time for on-site sales is manageable [8] 8. Land Reserve Status: The company has a total land reserve of approximately 62 million square meters, with 10 million square meters being incremental projects and 52 million square meters as existing projects. They are also working on 15 million square meters of land exchange regulations [9][10] 9. Inventory and Land Exchange: The company is negotiating land exchanges and returns at original prices due to development obstacles. They are also actively participating in bidding for new land in cities like Changchun and Zhaoqing, where they have confidence in project viability [11] 10. Profit Margins: New projects are expected to achieve a gross margin exceeding 20%, while older inventory projects may only break even due to significant discounting [12] Additional Important Information - The company is focusing on optimizing its asset structure by increasing the sales proportion of finished products and diversifying the revitalization of existing projects [2] - The company is advocating for policy support to help stabilize the real estate market, emphasizing the need for a recovery based on economic fundamentals rather than temporary measures [7]