Poly Developments Full-Year Results a Slight Beat on Better Margin, Lower Gearing Encouraging

Poly Developments and Holdings Group, or Poly Group released full-year results with revenue and earnings of CNY 195 billion and CNY 18.9 billion, slightly better than the preliminary results announced in January. Relative to our initial projection, full-year results ended with top line 2% below, but earnings 1% higher, owing to better margin and higher contributions from associates. Full-year dividend was CNY 0.50 per share, up 25% from a year ago. As of year-end, the company has over 600 projects with a land bank of 195 million square meters, continuing the growth in operational scale seen during the past two years. Part of the growth was driven by higher number of joint ventures. Along with modest land bank acquisitions, balance sheet was slightly strengthened with lower gearing.