Shanghai XNG Holdings Limited (3666) clarified recent media reports regarding alleged sudden closures of several restaurants in Shanghai. According to the announcement dated 13 February 2026, the group remains in negotiation with landlords concerning lease agreements and has not terminated the relevant leases. However, four landlords have unilaterally issued termination letters, which may be treated as terminations unless revoked through legal proceedings.

The announcement states that a temporary suspension of operations is part of the group’s rebranding and restructuring initiative. This strategy aims to reduce dependence on the “Shanghai Xiao Nan Guo” brand while reallocating resources toward new restaurant concepts featuring lower overheads and stronger consumer appeal. Restructuring efforts for two retained restaurants are expected to conclude by the end of the first quarter of 2026.

Additionally, three newly established restaurants have paused operation pending an evaluation of their financial performance. Plans to open up to 10 new restaurants by 30 June 2026 remain in place, though none have begun operating yet. The group emphasizes that the disposal of a 100% equity interest in the Target Company remains unaffected by the strategic realignment.

The announcement concludes that the group has no further information to add regarding the media reports and advises shareholders and potential investors to stay cautious when dealing in the company’s shares. Further updates will be provided as necessary.