Kontafarma China Holdings Announces Major Transaction: Renewal of Fitness and Yoga Centre Lease in Singapore
Key Highlights for Investors
- Major Transaction: Kontafarma China Holdings Limited (Stock Code: 1312) has announced the renewal of a lease for its fitness and yoga centre in Singapore, constituting a major transaction under the Hong Kong Listing Rules.
- Three-Year Lease Renewal: The new lease was executed on 27 July 2026 and covers the period from 1 October 2026 to 30 September 2029.
- Location: The premises are located at Millenia Walk, Nine Raffles Boulevard, Singapore, with ancillary areas included.
- Financial Commitment: Monthly rent is set at S\$255,961.35 (approximately HK\$1,561,364), inclusive of service charge but exclusive of GST. The total right-of-use asset under HKFRS 16 is valued at S\$8,728,665 (about HK\$53,244,857).
- Deposit: The lease requires a deposit equivalent to three months’ rent, totaling S\$767,884.05 (about HK\$4,684,093).
- Shareholder Approval: As the transaction crosses the 25% but not 100% threshold for major transactions under the Listing Rules, written shareholder approval from the controlling shareholder, Waranty Assets Management (HK) Limited (holding 56.77% of shares), will be obtained in lieu of a general meeting.
- Circular to Shareholders: A circular detailing the transaction will be dispatched to shareholders on or before 17 August 2026.
Detailed Transaction Overview
Kontafarma China Holdings’ indirect non-wholly owned subsidiary, True Yoga Pte. Ltd., has renewed its lease with Millenia Private Limited, an independent third party, for the continued operation of its fitness and yoga centre at Millenia Walk, Singapore. The renewed lease runs for three years starting 1 October 2026, with a fixed monthly rent and a substantial total lease value, reflecting the company’s ongoing commitment to this business segment in Singapore.
Strategic Rationale and Market Implications
The renewal decision is strategic, aiming to avoid the significant costs and disruptions associated with relocating, renovating, or reinstating alternative premises. According to the company’s 2025 annual report, Kontafarma faces a challenging operating environment in Singapore’s fitness sector, characterized by market saturation, intense competition, and rising customer acquisition costs. The company is actively optimizing operational efficiency and controlling costs.
The lease terms were agreed after extensive arm’s length negotiations, considering prevailing market rents, comparable leases in the area, and prior rental arrangements for the premises. The Board, including independent non-executive directors, unanimously considers the transaction fair, reasonable, and in the interests of shareholders.
Implications for Shareholders and Potential Price Sensitivity
- Major Transaction Classification: The transaction meets the criteria for a major transaction under Chapter 14 of the Listing Rules, requiring announcement, reporting, and shareholders’ approval. However, as the controlling shareholder has no material interest beyond ordinary shareholding, approval will be in writing and a general meeting will not be held.
- Financial Disclosure: The right-of-use asset and associated future rental commitments will be recognized on the company’s financial statements, potentially impacting key metrics such as gearing, asset base, and future cash flows.
- Market Sensitivity: The company’s commitment to maintaining its footprint in Singapore’s competitive fitness market signals confidence in the segment’s long-term potential, but also underscores the operational challenges and cost pressures inherent in the business. The sizable lease value and long-term commitment may be viewed as both a strategic advantage and a risk factor, depending on future market conditions.
Company and Counterparty Background
- Landlord: Millenia Private Limited, a Singapore-incorporated real estate company, controlled by the Kwee family, but confirmed as an independent third party.
- Tenant: True Yoga Pte. Ltd., an indirect subsidiary of Kontafarma, focuses on fitness centre operations and related consultancy.
- Kontafarma Group: Primarily engaged in pharmaceutical manufacturing (chemical drugs, APIs, intermediates), fitness centre operations, consultation services, and franchise business for royalty income.
Timeline and Next Steps
- The transaction was announced on 27 July 2026.
- The circular to shareholders will be sent by 17 August 2026, within 15 business days of the announcement.
- No extraordinary general meeting will be convened for this transaction.
Board Composition
As of the announcement date, the Board comprises three executive Directors (Wang Limin – Chairman and President, Ge Shouwen – Vice President, Guo Zixiu – Financial Controller) and three independent non-executive Directors (Dr. Tang Lai Wah, Dr. Ho Ho Ming, Mr. Yao Xiaomin).
Exchange Rate Note
An exchange rate of S\$1.00 = HK\$6.1 has been used for illustrative purposes. Actual exchange rates may vary.
Disclaimer
This article is prepared for informational purposes only and does not constitute investment advice. Investors should review the forthcoming shareholder circular and consult their financial advisors before making investment decisions. The information herein is based on the company’s public announcement and may be subject to change.
康達發展控股有限公司宣佈新加坡健身及瑜伽中心續租主要交易公告（粵語版）
投資者重點關注事項
- 主要交易： 康達發展控股有限公司（股份代號：1312）宣佈於新加坡健身及瑜伽中心之續租，構成根據香港上市規則之主要交易。
- 三年續租： 新租約於2026年7月27日簽訂，租期由2026年10月1日至2029年9月30日。
- 場地位置： 坐落於新加坡Millenia Walk, Nine Raffles Boulevard，並包括附屬區域。
- 財務承擔： 每月租金為新幣255,961.35元（約港幣1,561,364元），已包括服務費但不包括消費稅。根據香港會計準則第16號，使用權資產總值約新幣8,728,665元（約港幣53,244,857元）。
- 按金： 需繳付相等於三個月租金的新幣767,884.05元（約港幣4,684,093元）作為按金。
- 股東批准： 由於交易屬主要交易（適用百分比超過25%但低於100%），控股股東Waranty Assets Management (HK) Limited（持有56.77%股權）將以書面批准，無需召開股東大會。
- 致股東通函： 有關詳情將於2026年8月17日或之前寄發予全體股東。
交易詳情
康達發展控股間接持股子公司True Yoga Pte. Ltd.與獨立第三方Millenia Private Limited續簽租約，繼續於Millenia Walk經營健身及瑜伽中心，租期三年。租金及按金數目庞大，顯示集團對新加坡市場的長遠承諾。
戰略意義及市場影響
續租可避免搬遷、裝修及恢復原狀等額外成本及營運中斷。根據2025年年報，新加坡健身行業正面臨市場飽和、競爭激烈及引客成本上升等挑戰。集團正採取措施控制成本及提升經營效率。
新租約條款經反覆協商，參考區內同類物業市價及過往租金水平，董事會（包括獨立非執行董事）認為交易公平合理，符合公司及股東整體利益。
對股東的啟示及潛在股價敏感事項
- 主要交易分類： 根據上市規則第14章，需公告、報告及股東批准，但由於控股股東並無其他重大權益，將以書面形式批准，無需召開特別大會。
- 財務披露： 使用權資產及未來租金承諾將於財務報表中確認，或會影響資產負債表、負債比率及現金流預期。
- 市場敏感性： 公司續簽大型租約，反映對新加坡業務持續信心，但亦顯示經營成本壓力。投資者應密切關注未來行業變化及公司應對策略。
公司及交易對手簡介
- 業主： Millenia Private Limited，為新加坡註冊房地產公司，由郭氏家族控制，屬獨立第三方。
- 租戶： True Yoga Pte. Ltd.，康達發展間接持股子公司，專注健身中心及相關顧問服務。
- 集團： 主營醫藥製造（化學藥及API）、健身中心經營、健身健康顧問及特許經營業務。
時間表及後續事項
- 本次交易於2026年7月27日公佈。
- 詳情通函將於2026年8月17日或之前寄發。
- 本交易無需召開股東大會。
董事會組成
董事會由三名執行董事（王立民主席兼總裁、葛壽文副總裁、郭子秀財務總監）及三名獨立非執行董事（鄧麗華博士、何浩明博士、姚曉民先生）組成。
匯率說明
本次公告僅作新幣1.00元兌港幣6.1元參考，實際匯率或有不同。
免責聲明
本報道僅供參考，並不構成任何投資建議。投資者應參閱將發出之股東通函並諮詢專業顧問後作出投資決定。資料取自公司公告，如有更改，恕不另行通知。
