SHANGHAI XNG (03666) experienced a sharp decline of over 25% during afternoon trading. As of the latest update, the stock was down 25.71%, trading at HK$0.026, with a turnover of HK$1.13 million. The drop follows reports that multiple outlets of the restaurant chain in Shanghai ceased operations abruptly in early February without prior notice. Consumers who had made advance payments for Lunar New Year's Eve dinners or held stored-value cards are now facing difficulties in obtaining refunds.

According to on-site investigations conducted on February 9, several Shanghai-based locations of SHANGHAI XNG were found closed, with no explanations provided to customers. Notably, on January 8, the company announced the sale of its Hong Kong餐饮集团 for US$100,000, which included eight mainland "SHANGHAI XNG" outlets. Following the transaction, only two mainland stores will be retained by the company and rebranded under the name "Ching Ching."

The divested entity primarily operated the "SHANGHAI XNG" brand restaurants and takeaway services, representing a core business segment of the group. From 2023 through the first half of 2025, this division contributed over 70% of SHANGHAI XNG's total revenue.