Tande Co Ltd

Tiandiyuan released its 2026 interim report. During the reporting period, total operating revenue was 1.63 billion yuan, down 33.75 percent year on year. Net profit attributable to the parent company was a loss of 532 million yuan, a decrease of 407 million yuan compared with the same period last year, with the loss widening. Net cash inflow from operating activities was 668 million yuan, up 31.73 percent year on year, marking a third consecutive year of growth. The company's asset-liability ratio rose to 91.30 percent, gross margin fell to 0.79 percent, return on equity was negative 50.98 percent, and earnings per share were negative 0.62 yuan.

Tiandiyuan released its 2026 interim report, showing its first-half loss widened to 532 million yuan, compared with a loss of 124 million yuan in the same period last year. Operating revenue was 1.63 billion yuan, down 33.8 percent year on year. Net loss attributable to shareholders after deducting non-recurring items was 533 million yuan, compared with a loss of 140 million yuan a year earlier. In the second quarter, operating revenue was 711 million yuan, down 49.0 percent year on year, and net loss attributable to shareholders was 375 million yuan, compared with a loss of 62.53 million yuan a year earlier. As of the end of the second quarter, total assets stood at 20.239 billion yuan, down 9.6 percent from the end of the previous year, and net assets attributable to shareholders were 1.043 billion yuan, down 33.8 percent from the end of the previous year. The company said that, affected by the property market environment, it accelerated the clearance of existing projects, which led to lower revenue scale and a decline in gross margin, and it made impairment provisions for some inventory. At the same time, the company is transforming from a traditional development and sales model to a development, operations and services model, cultivating diversified operating segments such as apartment hotels, elderly care and commercial asset management.

Tande Holdings announced that its controlling shareholder, Xi'an High-tech Industries Development Zone Real Estate Development Co., Ltd., has pledged 50 million shares, representing 10.06% of its holdings and 5.79% of the company's total share capital. As of the announcement date, High-tech Real Estate has cumulatively pledged 247 million shares, accounting for 49.70% of its holdings and 28.58% of the company's total share capital. In the first quarter of 2026, Tande Holdings reported revenue of 920 million yuan and a net loss attributable to the parent company of 157 million yuan.

Tiandiyuan has responded to the Shanghai Stock Exchange's inquiry letter on its 2025 annual report, detailing the impairment of inventory and investment property. At the end of 2025, the company's inventory had an original value of 19.094 billion yuan, with a provision for inventory write-downs of 2.611 billion yuan, representing a provision ratio of 13.68%. From 2023 to 2025, additional provisions amounted to 667 million yuan, 1.142 billion yuan, and 841 million yuan respectively. The carrying value of the company's investment property was 519 million yuan, a year-on-year surge of 510.18%, all transferred from inventory, with cumulative impairment provisions of 116 million yuan. Tiandiyuan stated that it conducted impairment tests on the top ten inventory projects in cities such as Xi'an, Guangzhou, and Zhenjiang. Projects like Gaoxin Chenyue did not require impairment provisions, while projects such as Yong'an Guantang and Shiguangli recorded significant provisions due to weakening regional housing prices, with the parameter standards for measurement remaining consistent over the three years. The company said its 13.68% provision ratio is higher than the 9.46% average of five state-owned real estate peers, reflecting greater prudence. The new investment property resulted from a strategy of combining rental and sales to revitalize existing assets, with the impairment logic remaining consistent before and after the asset conversion. Among these, three items—Shangtangfu Apartments, Shuimo Jiangshan Apartments, and Building 2 of Shiguangli—together accounted for impairment provisions of 116 million yuan.

Tiandiyuan disclosed its performance forecast, expecting a net loss attributable to the parent company of 370 million to 550 million yuan in the first half of 2026, compared with a loss of 124 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 371 million to 551 million yuan, compared with a loss of 140 million yuan a year earlier. The company said the change in performance was mainly due to a decline in operating revenue scale and gross margin caused by real estate project sales and carry-over, leading to reduced gross profit contribution. At the same time, it accelerated the clearance of some existing projects, with resource selling prices declining, and plans to make impairment provisions for some inventory. In addition, the number of development projects meeting the conditions for interest capitalization was relatively small, resulting in a decrease in capitalized interest and an increase in expensed interest. Based on the latest closing price, the company's price-to-book ratio is about 1.83 times, and its price-to-sales ratio is about 0.44 times.