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.
Tande Co LtdLarge inventory write-downs of 2.611 billion yuan and impairment provisions on investment property, reflecting weak housing prices and asset devaluation.