KONTA CHINA: Its Taiwan affiliate company Quanzhen Concept may be liquidated

KONTA CHINA (01312.HK) announced that on September 30, 2025, its indirectly held 29% joint venture, QuanZhen Concept, stated that the QuanZhen Concept Fitness Center will cease operations starting October 1 and will evaluate and take possible actions in accordance with relevant laws and regulations in Taiwan, including but not limited to legal procedures involving the cessation, dissolution, bankruptcy, or liquidation of QuanZhen Concept, where applicable. As of now, the total debt and liabilities of QuanZhen Concept amount to approximately NT$3.001 billion, equivalent to about HKD 771 million.

The group indicated that as of mid-2025, revenue generated from the pharmaceutical division accounts for approximately 76% of total revenue; even if QuanZhen Concept may go into liquidation, it is expected not to have a significant adverse impact on the overall financial condition of the group and the operational business of the group's pharmaceutical division. The company will continue to closely monitor the operational and financial conditions of the fitness business, as well as the potential liquidation procedures of QuanZhen Concept