GUAN CHAO HLDGS (01872.HK) terminates operations service agreement, discontinues AI comb business

NewTimeSpace News: On October 26, 2026, Guan Chao Holdings Limited (GUAN CHAO HLDGS, 01872.HK) announced that Shenzhen Groland and its business partner Hangzhou Huashen Network Technology Co., Ltd. entered into a termination agreement on September 28, 2026, terminating the operations service agreement with effect from September 11, 2026. From that date the partner ceased providing operations services and is no longer entitled to use any stores, accounts, brands or related access rights of Shenzhen Groland.

The base service fee for the first stage was originally fixed at RMB600,000 and was later reduced to RMB400,000. As at the date of the announcement, RMB300,000 had been paid, leaving RMB100,000 outstanding; once settled, the service fees will be fully discharged and the partner will have no further claims for fees, rewards, commissions, early termination compensation or expected profits.

The company said sales of AI combs fell short of expectations, reaching about RMB301,300 as at September 30, 2026, of which about RMB54,000 came from the partner's operations services. Given the weak sales and high marketing and operating costs, it proactively negotiated the termination. About 2,000 AI combs remained in inventory at an aggregate cost of about RMB500,000, and the company has decided to commit no further resources and discontinue the business entirely, which it expects to have no material impact on its financial position or existing operations.