Poly Developments and Holdings Group (600048) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 182.77 billion, down 5.06% year-over-year; net profit attributable to shareholders was RMB 7.81 billion, down 41.23% year-over-year.

• Third quarter revenue was RMB 43.53 billion, a 21.62% decrease compared to the same quarter last year; net profit attributable to shareholders was RMB 392 million, down 63.31%.

• Contracted sales for the first three quarters reached RMB 241.69 billion, down 27.89% year-over-year; contracted area was 13.50 million sqm, down 29.66%.

Financial highlights

• Gross margin declined, contributing to the drop in net profit and EPS; basic and diluted EPS for the first nine months were RMB 0.66, down 40.79% year-over-year.

• Operating cash flow for the first nine months was negative RMB 15.98 billion, a significant decrease from the prior year, mainly due to increased land payments.

• Total assets at quarter-end were RMB 1.37 trillion, down 4.38% from year-end 2023; shareholders' equity increased 1.11% to RMB 200.75 billion.

• Asset-liability ratio was 74.89%, down 1.66 percentage points from year-end 2023.

Outlook and guidance

• Industry policy support has strengthened since September, with measures to stabilize the real estate market and boost confidence.

• Management expects gradual improvement in market sentiment as new policies are implemented.