SHANGHAI XNG (03666) disposes of its entire equity interest in Shanghai Min (Hong Kong) Catering Group

SHANGHAI XNG (03666) announces that on October 30, 2026, the Company and the buyer, Mr. Veerayuth Arnupapmongkol, entered into a sale and purchase agreement pursuant to which the Company agreed to sell, and the buyer agreed to purchase, the Sale Shares (being the entire equity interest in the target company, Shanghai Min (Hong Kong) Catering Group), at a total consideration of HK$800,000. Completion of the Disposal was unconditionally effected on October 30, 2026, without any conditions precedent requiring prior shareholder approval or regulatory approval. Upon Completion, the Company no longer holds any shares in the target company, and the target group ceased to be a subsidiary of the Company. Accordingly, the financial results, assets, liabilities and operations of the target group will no longer be consolidated into the Company's consolidated financial statements, and the target group is now entirely unaffiliated with the Company. Cessation of operations: Shareholders and potential investors should note that, due to severe operational difficulties and the adverse economic environment faced by its fine dining and casual dining restaurant businesses, all restaurant operations of the target group had completely ceased as of February 2026. At Completion, the target group had no ongoing restaurant operations. Strategic relief of heavy debt: As of September 30, 2026, the target group was in a substantial unaudited net liability position of approximately RMB169 million. The Disposal fully releases the Group from such heavy idle liabilities, immediately strengthening the Group's balance sheet, and thereby generates an estimated unaudited gain on disposal of approximately RMB169.9 million. Complete separation upon Completion: Following Completion on October 30, 2026, the target group is wholly owned by the buyer. The target group is entirely unaffiliated with the listed company, and the Company retains no equity interest, board seats, operational control, management positions, financial commitments or guarantees in respect of the target group. Buyer's business intention: According to information provided by the buyer, although the target group's restaurant operations in mainland China have ceased, the buyer intends to leverage the "SHANGHAI XNG" brand assets and business reputation to explore and develop new catering and business opportunities outside mainland China.