TATA HEALTH (01255) announced that on March 13, 2026, its wholly-owned subsidiary, S.Culture Holdings (BVI) Limited, entered into a sale agreement with WealthySteps Company Limited. Under the agreement, the seller conditionally agreed to dispose of, and the buyer conditionally agreed to acquire, one issued share of the target company—representing the entire issued share capital of Kong Tai Sundry Goods (BVI) Company Limited as of the announcement date—for a consideration of HK$1.00. The transaction was completed on the same day as the signing of the agreement.

As a result, Kong Tai Sundry Goods (BVI) Company Limited ceased to be a subsidiary of TATA HEALTH, and its financial results will no longer be consolidated into the group's financial statements. The target group has been operating at a loss, carrying high debt and a net liability position. Given that it no longer generates revenue and lacks a clear business outlook, while relying on financial support from other operating subsidiaries to cover expenses and liabilities, the board determined that further investment or ongoing financial support would be unreasonable.

The board believes the divestment will alleviate the group's financial burden related to the target company. Considering the target group's sustained losses and net liabilities, the disposal is expected to free up liquidity and allow the group to allocate resources more efficiently toward the growth of its existing footwear and retail operations.