Shanghai XNG Holdings Limited (the “Company”) announced its quarterly progress in addressing ongoing liquidity and financial stability concerns. According to the auditor’s observations for the year ended 31 December 2024, a material uncertainty remains related to the Company’s ability to continue as a going concern. The Company has outlined several measures to mitigate this challenge.

The Company previously disclosed plans to obtain new borrowings, refinance existing facilities, secure new funding from potential investors, renegotiate repayment terms with lessors, and reduce administrative and operating costs. Since the publication of the 2024 Annual Report and the July Quarterly Announcement, there has been notable progress: an application for a RMB5 million new loan from a commercial bank is under review. Meanwhile, discussions on refinancing an existing RMB4 million facility were discontinued and replaced by the new application.

The Company also continues to assess the possibility of further equity fundraisings before the end of 2025. Although negotiations with lessors and suppliers are ongoing, there have been no substantial updates on those talks. Additionally, the Company remains focused on improving operational efficiency by rebranding and opening restaurants that better align with current consumer trends, while considering adjustments to part of its existing restaurant operations.

The Company reiterated its commitment to resolving its going concern issue and expressed optimism about business prospects for the year ending 31 December 2025.