Core Viewpoint - The conflict between KKV and Shenzhen One Avenue has escalated, leading to the termination of the lease agreement due to KKV's failure to meet performance standards and pay agreed-upon rent [1][3][4]. Group 1: Lease Termination - Shenzhen One Avenue announced the formal termination of the lease with KKV, citing KKV's long-term failure to pay performance-based rent as the reason for exercising their right to terminate the contract [1][3]. - The management of One Avenue stated that they had fulfilled their obligation to inform KKV and had engaged in multiple rounds of communication over the past three months regarding the lease termination [3][4]. - The termination was executed in accordance with the lease agreement and relevant legal provisions, aiming to maintain normal operations and protect the interests of compliant tenants [4]. Group 2: Background and Previous Incidents - This incident marks the second forced closure of the KKV store within a month, with the first closure occurring on December 14, 2025, due to alleged contract violations by One Avenue [5][7]. - KKV's parent company, KK Group, indicated that the store had been one of the better-performing outlets in the area despite low foot traffic and claimed that One Avenue had not previously raised concerns about unpaid rent during the four years of operation [7][8]. - The management of One Avenue had previously provided various forms of operational support to KKV, totaling approximately 440,000 yuan, despite KKV's failure to pay performance rent [8]. Group 3: Market Dynamics and Future Plans - The ongoing dispute may be influenced by the urgent need for One Avenue to adjust its tenant mix, as it has recently introduced popular dining brands to attract higher foot traffic [9]. - KKV has announced plans to open its 700th store globally in Malaysia, indicating that the dispute will not affect its overall operational strategy [9].

Core Viewpoint - KKV's store at Shenzhen's Joy City has been forcibly shut down again due to ongoing disputes over unpaid performance rent, leading to physical altercations between staff and mall personnel [1][10][11]. Group 1: Store Closure and Dispute - KKV's store was forcibly closed on January 5, 2026, after a series of conflicts with the mall management, which included physical confrontations and police involvement [1][8][10]. - The mall management stated that KKV had never paid the agreed performance rent since the store's opening, which justified their decision to terminate the lease [10][11]. - KKV claimed that the mall used aggressive tactics, such as cutting off water and electricity, to force an early termination of the lease [3][7]. Group 2: Financial and Operational Context - KKV has received approximately 440,000 yuan in operational support from the mall, including rent reductions and marketing resources, despite failing to meet performance standards [11]. - The performance rent is based on a percentage of the store's monthly revenue, and KKV has consistently underperformed, leading to the mall's decision to terminate the lease [11]. - KKV's parent company, KK Group, has faced financial challenges, with reported revenues of 16.46 billion yuan, 35.24 billion yuan, and 35.51 billion yuan from 2020 to 2022, and a net profit of 2.09 billion yuan in the first ten months of 2023 [14][15]. Group 3: Company Growth and Market Position - KKV operates around 600 stores nationwide, with a significant slowdown in new openings, adding only 50 stores in the first ten months of 2023 compared to previous years [15]. - KKV accounted for 66.5% of KK Group's revenue in 2022, indicating its importance within the company's portfolio [14].