Tande plans to convert part of its inventory resources into investment properties

According to the announcement from Zhuhai Tande Real Estate Co., Ltd., a wholly-owned subsidiary of Tande (600665.SH), due to operational development needs, the company plans to adjust the sales model of part of the inventory resources of the "Tande • Shang Tang Fu" project, specifically Building 1, to a phased leasing operation model. The commercial building of the Shang Tang Fu project has a construction area of 24,899.76 square meters, and the inventory resources being converted to leasing operation are from the 2nd to the 20th floors of Building 1, with a construction area of 22,081.65 square meters and a total of 573 rooms. The current book value of this portion of resources is 536,003,800 yuan (the final value will be based on the engineering settlement amount). Due to a change in holding purpose, in accordance with the enterprise accounting standards, the company will transfer this portion of resources from inventory accounting to investment property accounting, still measured at cost for initial measurement, using the cost model for subsequent measurement, and applying the same method as fixed assets for depreciation.

This conversion is merely an adjustment of certain inventory resource items in the company's financial statements and does not involve retrospective adjustments for previous years; the accounting methods have not changed. This conversion is beneficial for promoting the implementation of the dual-driven development model of the company's real estate development and asset operation, effectively revitalizing the company's existing resources, improving asset utilization efficiency, and increasing overall company revenue. It will not have a significant impact on the company's future ongoing operations and does not harm the interests of the company and its shareholders, especially minority shareholders