POLY PROPERTY (00119) announced its annual results for the period ending December 31, 2025. The group achieved full-year contracted sales of RMB 50.2 billion, with a sales area of 1.624 million square meters and an average selling price of approximately RMB 30,917 per square meter.

Annual revenue reached RMB 48.382 billion, representing a 20.3% year-on-year increase. Profit attributable to shareholders amounted to RMB 225 million, up 23.2% compared to the previous year. Despite the ongoing industry consolidation affecting profitability, the real estate development business maintained its operations while recognizing impairment provisions of approximately RMB 1.019 billion for properties under development and held for sale.

The board of directors has recommended a final dividend of 2.6 HK cents per share, maintaining a payout ratio of 40%. The group's liability structure continued to improve, with net operating cash inflow reaching RMB 3.556 billion. The ratio of total cash to total assets stood at 17.1%.

Notably, the company has officially achieved green status in all three key debt metrics, while its average financing cost decreased to 2.86%. During the year, POLY PROPERTY added new projects with a total planned construction area of 1.701 million square meters and total land cost of approximately RMB 27 billion.

As of December 31, 2025, the group held total land reserves of 11.875 million square meters, with equity land reserves amounting to 9.021 million square meters. The group, including its joint ventures and associates, achieved contracted sales of RMB 50.2 billion, ranking 15th on the CRIC full-scale sales list, climbing two positions from the end of 2024.

Sales collection reached RMB 51.3 billion, achieving a collection rate of 102%. The average contracted selling price increased by 21% year-on-year, surpassing the RMB 30,000 per square meter threshold for the first time. Combined sales contribution from the Yangtze River Delta and Greater Bay Area increased by 2 percentage points to 75%.

The company's strategy of focusing on high-tier cities and developing quality projects continues to demonstrate effectiveness. During this industry consolidation phase, POLY PROPERTY emphasized precise market analysis, strict investment criteria, and comprehensive targeting of premium land resources.

The strategic focus remains on core locations in first-tier and key second-tier cities to strengthen the fundamental business, while simultaneously capturing structural opportunities in second and third-tier cities and actively utilizing policy windows to revitalize historical inventory.

Throughout the year, the group acquired 15 real estate development projects with total land costs of approximately RMB 27 billion, with 84% of resources allocated to Guangzhou, Shanghai, and Hangzhou. The company also optimized its Yuyao land reserve through planning adjustments.

The construction management project Guiyang Yuluhu received strong market recognition, while six new construction management projects were signed during the year in Guiyang, Suzhou, Jinan, and Kunming, creating new growth drivers through product design and development capabilities.

The group has maintained positive operating cash flow for three consecutive years and has officially achieved green status in all three debt metrics. During the year, the company issued RMB 5 billion in corporate bonds and RMB 1.5 billion in medium-term notes with a weighted average cost of 2.63%.

Additionally, the successful replacement of maturing US dollar notes with sustainability-linked syndicated loans significantly reduced offshore financing costs, demonstrating the company's commitment to green development principles.

By the end of 2025, the asset-liability ratio excluding advance receipts decreased by 1.9 percentage points to 68.6%, while the average financing cost declined by 0.53 percentage points to 2.86%. Through enhanced cash flow management and proactive debt strategies, the group has further strengthened its financial stability.