Financial Analysis of Real Estate Companies Based on the Harvard Framework: A Case Study of Poly Developments and Holdings

Abstract

China's real estate market saw considerable volatility between 2019 and 2023. Poly Developments and Holdings Group Co., Ltd. successfully weathered the market downturn of 2020, the rebound in 2021, and the subsequent downturn in 2022 to retain its position as one of China's top real estate companies, which has peaked by 2024. Using the Harvard Analytical Framework, this paper covers strategic, accounting, financial, and prospective aspects of Poly Developments over the past five years, conducting a comprehensive financial analysis. By regularly implementing outstanding financial management strategies, Poly Developments clearly shows that it effectively controlled important market volatility over the past five years. Poly Developments achieved exceptional performance by adopting financial methods that were well-suited to its specific circumstances, avoiding excessive aggression during market upswings and excessive caution during downturns. In addition, the study suggests that Poly Developments should boost its financial risk management, grow its market, improve cost control and operational efficiency, and strengthen asset usage and inventory management.