Zhitong Finance App News, Huakong Kangtai (01312) issued an announcement, and the company received True Fitness Pte. Ltd. (True Fitness) and True Yoga Pte. Ltd. (True Yoga) (both are limited liability companies incorporated under Singaporean law and are indirect non-wholly-owned subsidiaries of the company) advised that on September 10, 2026, True Yoga and True Fitness's respective directors passed a resolution (including): (i) submitting a statement to the bankruptcy director of the Ministry of Justice of Singapore that True Fitness and True Yoga are unable to continue operating due to liabilities;
(ii) Appointing Mr. Wu Weide and Mr. Lin Yuehong (both licensed liquidators, transferred by RSM SG Corporate Advisory Pte Ltd) as temporary liquidators of True Fitness and True Yoga; (iii) Hold a special shareholders' meeting of True Fitness and True Yoga on October 7, 2026, at which they will present proposals for voluntary liquidation by creditors, and hold True Fitness and True after the above special shareholders' meeting Yoga's creditors' meeting to handle voluntary creditor liquidation matters under Singapore's Bankruptcy, Reorganization and Dissolution Act 2018.
True Fitness, True Yoga, and True Fitness (STC) Pte. Ltd. (a wholly-owned subsidiary directly owned by True Fitness) (collectively, “True Singapore Group”) mainly operates fitness and yoga centers and provides fitness and health consulting services in Singapore. True Fitness and True Yoga's direct sole shareholder is True Yoga Holdings (Singapore) Pte. Ltd. Fester Global Limited (a wholly owned subsidiary directly owned by the company) directly holds 73% of TFKT True Holdings's shares, while TFKT True Holdings indirectly holds 100% of the shares in True Yoga Holdings and True Singapore Group. On the date of this announcement, True Singapore Group operated fitness and yoga centers in Singapore under the “True Fitness”, “Yoga Edition” and “TFX” brands. These centers intend to close in accordance with voluntary creditor liquidation procedures.
Although the company provides cash funding to support the fitness business in Singapore, the Group's fitness business in Singapore continues to perform poorly and faces significant liquidity pressure. True Singapore Group faces unprecedented challenges. In particular, boutique fitness rooms are becoming increasingly popular, leading to increased competition in the fitness business industry. In addition, more condominiums and residential developments provide fitness rooms for their residents or visitors, reducing the need for some consumers to purchase external gym memberships. Furthermore, competition has gone beyond the physical venue level. Online training, mobile apps, video platforms, and virtual coaches enable consumers to exercise at home or outdoors. As a result, the fitness business no longer only competes with physical fitness studios in its local neighborhood, but also competes with convenient and relatively inexpensive digital alternatives. All of these factors result in customer acquisition barriers, high operating costs, and tight cash flow. Although the Group has done its best to control the costs and optimize the efficiency of the fitness business in Singapore, it is difficult to continue operating the fitness business in an extremely challenging market situation. The Company was advised by True Yoga Holdings (the sole direct shareholder of True Fitness and True Yoga) that due to True Singapore Group's insolvency, True Yoga Holdings will resolve to pass True Fitness and True Yoga's shareholders' resolution on the voluntary liquidation of creditors.
According to the information and opinions currently obtained by the company, True Fitness and True Yoga voluntarily proposed liquidation by creditors, which would allow them to commence an orderly liquidation procedure supervised by creditors in accordance with the Singapore Bankruptcy, Reorganization and Dissolution Act to end the business. This move also allows the company to allocate resources more effectively to develop the Group's pharmaceutical business, which in the long run conforms to the overall interests of the company and its shareholders.