KONTA CHINA (01312) issued a profit warning, expecting the comprehensive loss to decrease to approximately 67.2 million - 100.7 million Hong Kong dollars for the first half of the year.

KONTA CHINA (01312) announced that the group expects to incur a consolidated net loss of approximately HKD 67.2 million to HKD 100.7 million in the first half of 2026, compared to a net loss of approximately HKD 321.4 million in the same period of 2025. The announcement stated that the consolidated net loss during the period is mainly due to the expected impairment loss of the group's Singapore fitness business, which will be approximately HKD 51 million to HKD 63.1 million. Specifically: (i) the impairment loss of properties, plants, and equipment is expected to be approximately HKD 1.6 million to HKD 2.4 million; (ii) the impairment loss of right-of-use assets is expected to be approximately HKD 9.7 million to HKD 14.6 million; (iii) the impairment loss of intangible assets is expected to be approximately HKD 12.8 million to HKD 19.2 million; and (iv) the impairment loss related to goodwill associated with the Singapore fitness business is expected to be approximately HKD 26.9 million. The expected decrease in loss is mainly due to the impairment loss of approximately HKD 373.6 million incurred by the group in the first half of 2025 for its fitness businesses in Taiwan and Singapore, which significantly exceeds the expected impairment loss of approximately HKD 51 million to HKD 63.1 million for its Singapore fitness business during this period.