Core Viewpoint - The commercial dispute between KKV and Shenzhen Zhuoyue Center has escalated, with KKV facing a second forced closure due to alleged poor performance and failure to pay performance-based rent [1][3]. Group 1: Background of the Dispute - KKV, a trendy retail brand, was once a core tenant in Shenzhen Zhuoyue Center but has faced significant challenges, leading to a conflict that began in December 2025 [3]. - The lease agreement between KKV and Shenzhen Zhuoyue Center was established in 2021, with a term extending to 2027, incorporating a "low rent + performance rent" model [3][4]. - KKV was first forced to close on December 14, 2025, due to the mall's claim of "business adjustment," which KKV disputes, stating they have consistently paid rent and have not breached the contract [3][4]. Group 2: Key Issues in the Dispute - The main contention revolves around performance rent, which is based on the store's monthly sales. Shenzhen Zhuoyue Center claims KKV has not met the agreed performance standards and has not paid the performance rent [4][6]. - Shenzhen Zhuoyue Center asserts that they attempted to negotiate with KKV for three months, offering various solutions such as reducing the rental area and relocating to a more popular section of the mall, all of which were rejected by KKV [4][6]. - KKV argues that the mall's foot traffic and occupancy rates have not met expectations, and the mall's initial promises during the leasing process were not fulfilled, impacting their sales performance [6][7]. Group 3: Company Performance and Future Outlook - KKV operates over 700 stores globally, with the group surpassing 1,200 stores, indicating that this single store dispute will not affect their overall operational strategy [6][7]. - KKV's revenue for the first ten months of 2023 was approximately 4.77 billion yuan, with a net profit of about 210 million yuan, showing a trend towards profitability [7]. - KKV's brand revenue accounted for 66.5% of the group's total revenue in 2022, highlighting its significance as a core income source for the company [7].

Group 1 - The core issue revolves around a commercial dispute between KKV and the Zhuoyue Center, which has escalated to a forced closure of KKV's store after four years of operation [2][3][6] - KKV's store was closed due to alleged poor performance in meeting the agreed sales targets, leading to a breach of the rental agreement based on a "low rent + performance rent" model [10][14] - Zhuoyue Center claims to have made multiple attempts to resolve the issue through discussions and proposed adjustments, which KKV rejected [10][12] Group 2 - KKV asserts that the Zhuoyue Center failed to deliver on promises regarding foot traffic and occupancy rates, which contributed to its inability to meet sales targets [14][19] - KKV has indicated plans to pursue legal action to address the dispute, emphasizing that the closure of a single store will not impact its overall business operations, which include over 700 stores globally [14][19] - The dispute highlights the risks associated with the "low rent + performance rent" model, which requires careful management of sales performance and market conditions [15]