Jakota Capital exits fur business, writes off HK$308.8m loan

Jakota Capital (Holding) Group has issued a supplemental announcement regarding the disposal of its entire issued share capital of Trade Region Limited. This transaction involves writing off an inter-company loan of approximately HK$308.8 million owed by the Target Group to Jakota Capital as of March 31, 2025. The decision to write off the loan was based on the Target Group's continuous losses since financial year 2023 and the low likelihood of recovery, largely due to the Danish government's 2020 ban on the fur trade.

The audited consolidated net liability value of the Target Group was approximately HK$298.7 million as of March 31, 2025. Over 80% of the Inter-Company Loan funds were raised by Jakota Capital from its listing until early 2018 and used to support the Target Group in acquiring mink farms and minks. The remaining balance was for working capital.

Following the disposal, Jakota Capital intends to cease its Fur Business operations but clarified that it does not plan to downsize, cease operations, or sell any of its other existing businesses. The board concluded that the write-off and consideration determination are fair, reasonable, and in the best interest of the company.