Poly Property (00119) 2025 Annual Report: Continuous optimization of structure, sales among top fifteen

On March 31, Poly Property (00119) released its full-year performance ending on December 31, 2025. During the period, the company's asset structure continued to optimize, its sales ranking improved, and it ascended to the top fifteen. Investment expansion towards new directions The company fully focuses on high-quality land resources, strategically focusing on core areas of first-tier and key second-tier cities, strengthening its foundation, while actively seizing structural opportunities in second- and third-tier cities, and taking advantage of policy windows to revitalize historical inventory. Throughout the year, the group, together with its joint ventures and affiliates, obtained a total of 15 real estate development projects, with a total land cost of approximately 27 billion yuan, 84% of which was allocated to Guangzhou, Shanghai, and Hangzhou, and Yanhong's land reserves were activated by zoning regulations. The project of Guiyang Yulu Lake, a sponsor-built project, received high market recognition. In the year, they signed six new sponsor-built projects located in Guiyang, Suzhou, Jinan, and Kunming. By the end of 2025, the group's total land reserve reached 11.88 million square meters, with a construction area of 4.8 million square meters and a planned area of 7.07 million square meters. Calculated by land cost, the proportions in the Yangtze River Delta and the Pearl River Delta reached 78%, while first- and second-tier cities accounted for 94%. The land reserve structure continued to improve. Sales ranking achieves a new high In 2025, the group completed contracted sales totaling 50.2 billion yuan, ranking 15th on the list of all Ke Rui property enterprises, climbing 2 spots from the end of 2024. The total sales receipts reached 51.3 billion yuan, with a collection rate of 102%. The average contracted sales price increased by 21% year on year, reaching 30,000 yuan per square meter for the first time. The company's strategy of focusing on high-energy cities and forging high-quality projects continues to show results. Sales in the Yangtze River Delta and the Greater Bay Area collectively contributed to 75%, a 2% increase from 2024. Sales in first- and second-tier cities and Hong Kong contributed 93%, a 4% increase from 2024. Financial indicators steadily improved In 2025, the group achieved income of 48.382 billion yuan, an increase of 20.3% compared to the previous year, with a gross profit margin of 17.0%. Due to industry factors, provision for impairment of development properties and properties held for sale amounted to approximately 1.019 billion yuan. The net profit attributable to the parent company increased by 23.2% to 225 million yuan. The board of directors of the group recommended a final dividend of 2.6 Hong Kong cents per share to reward shareholder support. On the financing front, the group issued a total of 5 billion yuan in corporate bonds and 1.5 billion yuan in medium-term notes during the year, with a weighted average cost of 2.63%. At the same time, expiring US dollar notes were successfully exchanged for sustainable development-linked syndicated loans, significantly reducing the cost of overseas financing. Total borrowings decreased slightly by 0.4%, with short-term debt significantly reduced by 4 percentage points to 24%, further optimizing the debt structure. Through strengthening cash flow control and active debt management, the financial stability of the group has been further enhanced. The group has achieved positive operating cash flow for three consecutive years, with total cash accounting for 17.1% of total assets. The asset-liability ratio excluding pre-sales accounts decreased by 1.9 percentage points year on year to 68.6%, meeting the criteria of the "three red lines" and officially entering the green zone. By the end of 2025, the average cost of financing decreased by 0.53 percentage points to 2.86%.