Shanghai XNG Holdings Limited (3666) has released a quarterly update regarding its financial position and efforts to address the auditor’s Disclaimer of Opinion for the year ended 31 December 2024. The auditor did not express an opinion primarily due to multiple uncertainties relating to the Group’s ability to continue as a going concern.

According to the announcement, the Group has been negotiating new borrowings and refinancing existing loan facilities with a commercial bank. The application for a new loan (the “New Loan Application”) is under review, and the discussion on renewing existing facilities is ongoing at the same bank. The Company is also assessing the possibility of further equity fundraising in the first quarter of 2026.

Meanwhile, negotiations with lessors for an extension of repayment terms, along with ongoing cost control measures, are continuing without any significant new developments. The Company is also streamlining its operations by establishing new restaurants that reduce overhead costs and better serve changing consumer preferences.

Separately, the Company announced a very substantial disposal agreement on 8 January 2026 involving the sale of 100% equity interest in a target company for a total consideration of USD100,000. Once this disposal is completed, the target company will cease to be a subsidiary of Shanghai XNG Holdings Limited, and its financial results will no longer be consolidated into the Group’s accounts.

Management emphasizes its commitment to resolving the going concern issue as the audit for the year ended 31 December 2025 approaches. The Company will make further announcements as progress continues.