TATA Health International Holdings Limited announced that on 13 March 2026 its wholly-owned subsidiary, S. Culture Holdings (BVI) Limited, disposed of the entire issued share capital of Kong Tai Sundry Goods (BVI) Company Limited (the “Target Company”) to Wealthy Steps Company Limited for a cash consideration of HK$1.00. Completion occurred on the same day, and the Target Company and its subsidiaries (“Target Group”) have ceased to be consolidated into TATA HEALTH’s financial statements.

The Target Group held net liabilities of approximately HK$4.10 million and unaudited total assets of HK$22.30 million as at 31 December 2025. For 2025, the Target Group generated revenue of HK$8.78 million and recorded a net loss after tax of HK$15.88 million; the prior year posted a HK$31.20 million net loss on revenue of HK$9.07 million.

Management cited the Target Group’s persistent losses, indebtedness and lack of future business prospects as key reasons for the divestment, noting that ongoing financial support was no longer justifiable. The disposal is expected to deliver an accounting gain of roughly HK$4.10 million, calculated as the elimination of the Target Group’s net liabilities less transaction costs, thereby improving the Group’s liquidity and allowing resources to be redirected to its core footwear operations.

Under Hong Kong Listing Rules, the transaction meets the thresholds for a disclosable transaction (percentage ratios above 5% but below 25%) and therefore requires announcement but not shareholder approval or circular issuance.