Poly Developments and Holdings Group (600048) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 139.25 billion, up 1.66% year-over-year, mainly from real estate project completions and deliveries.

• Net profit attributable to shareholders was RMB 7.51 billion, down 38.57% year-over-year, impacted by lower gross margins and reduced project equity ratios.

• Cash flow from operating activities was negative RMB 17.15 billion, mainly due to increased land payments.

• The company maintained industry-leading sales, with contracted sales of RMB 173.34 billion, down 26.81% year-over-year, but market share in core cities increased.

• Debt structure improved, with interest-bearing debt at RMB 373.5 billion and average cost reduced to 3.31%.

Financial highlights

• Operating income: RMB 139.25 billion, up 1.66% year-over-year.

• Net profit attributable to shareholders: RMB 7.51 billion, down 38.57% year-over-year.

• Basic and diluted EPS: RMB 0.63, down 38.16% year-over-year.

• Gross margin: 16.0%, stable compared to 2023.

• Net cash flow from operating activities: -RMB 17.15 billion.

Outlook and guidance

• The company expects continued policy support for the real estate sector and sees opportunities in urbanization and product upgrades.

• Management anticipates improved cash flow as prior land payments are completed and expects stable annual sales collection rates.