True Fitness and True Yoga to shut in Singapore amid millions in losses

The two companies operate 10 fitness and yoga outlets across Singapore

True Fitness and True Yoga are set to shut their Singapore operations, as parent company Kontafarma China Holdings moves to liquidate the businesses amid mounting financial losses.

The Hong Kong-listed company said in a bourse filing on Thursday (Sep 10) that the directors of True Fitness and True Yoga had resolved that the companies could no longer continue operating due to their liabilities, CNA reported.

Insolvency practitioners Goh Wee Teck and Lin Yueh Hung of RSM SG Corporate Advisory have since been provisionally appointed.

Extraordinary general meetings for both companies are scheduled for Oct 7, where resolutions for creditors’ voluntary winding-up will be proposed. Meetings with creditors will follow.

The two companies, collectively known as the True Singapore Group, operate 10 fitness and yoga outlets across Singapore under three brands: True Fitness, TFX and Yoga Edition.

The centres are expected to cease operations as the liquidation process gets underway.

True Singapore’s struggles

The Singapore business has been struggling financially despite continuing to generate significant revenue.

For the year ended Dec 31, 2025, the True Singapore Group recorded about HK$181.2 million (S$30 million) in revenue, but posted a loss of about HK$34.3 million (S$5.7 million).

At the end of 2025, the group had total assets of around HK$149.7 million (S$24.2 million), compared with liabilities of HK$555.5 million (S$89.8 million).

The situation worsened in the first eight months of 2026.

According to unaudited management accounts, the Singapore business generated about HK$118.4 million (S$19.1 million) in revenue during the period, but recorded another HK$19.1 million (S$3 million) loss.

As of Aug 31, its assets stood at about HK$204.5 million, while total liabilities had risen to HK$633.8 million. This left the business with net liabilities of about HK$429.3 million (S$72 million).

The True Singapore Group also owed about HK$309.7 million (S$50 million) to the wider Kontafarma group as of Aug 31.

Kontafarma said the Singapore fitness business had been facing “unprecedented” challenges, including increasingly fierce competition and rising costs associated with attracting customers.

The company pointed to the growing popularity of boutique gyms, as well as gyms located within condominiums and residential developments, which have reduced some consumers’ need for external gym memberships.

Competition is also coming from outside the traditional gym industry.

Online training programmes, mobile apps, video platforms and virtual coaching have made it easier for consumers to exercise at home or outdoors, further intensifying pressure on traditional fitness operators.

At the same time, the business has continued to face high operating costs and tight cash flow.

Kontafarma said that despite efforts to control costs and improve operational efficiency, the Singapore fitness business had become extremely difficult to sustain.

The parent company had also provided cash funding to support the Singapore operations, but said the businesses continued to underperform and face significant liquidity pressure.

Kontafarma shifts focus to pharmaceuticals

Once the provisional liquidators take control, they will assume responsibility for the affairs, businesses and property of True Fitness and True Yoga.

The powers of the companies’ directors will cease, while operations at the fitness and yoga centres are expected to stop as the provisional liquidation begins.

The creditors’ voluntary liquidation will formally commence after the special resolutions are passed at the Oct 7 extraordinary general meetings.

Kontafarma said the liquidation would allow it to redirect resources towards its pharmaceutical business.

The company said it does not expect the move to have any other material adverse impact on the financial performance or operations of its existing businesses.

Its pharmaceutical segment accounted for 76.7% of group revenue in the first half of 2026 and 78.5% of its total assets as of Jun 30.

There is also a separate debt exposure involving True Fitness.

Kontafarma has guaranteed a bank loan taken by the company, with about S$2.3 million outstanding as of the date of its announcement.

The parent company said the final amount owed by the Singapore businesses will be determined by the liquidators, while any recovery will depend on the assets realised and the statutory order of priority for creditors under Singapore law.

For Kontafarma, the closure marks a retreat from a loss-making fitness business as it shifts its focus towards pharmaceuticals.

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