Shanghai XNG (03666) announced that on January 8, 2026, the company has agreed to sell the entire equity interest in the target company, Xiao Nan Guo (Hong Kong) Catering Group Limited, to the buyer, Ms. Yam Shan Shan, for a total consideration of US$100,000. Upon completion of the transaction, the company will no longer hold any shares in the target company, and the target group will cease to be a subsidiary. The target group is primarily engaged in the food and beverage operations and takeaway business of restaurants under the Shanghai XNG brand. The target group mainly consists of four subsidiaries operating in Shanghai under the Shanghai XNG brand. The catering industry currently faces intensifying market competition, where consumers are not only pursuing good taste but also placing greater emphasis on innovative dining environments and a sense of cultural identity that resonates with younger demographics. Although the Shanghai XNG brand has long focused on large banquets and business gatherings, market demand is undergoing a significant shift, with consumers now paying more attention to ingredient sourcing, cooking techniques, and nutritional balance. Furthermore, amid downward pressure on the economic environment, consumers are increasingly price-conscious and seek dining experiences that offer greater value for money. To address these challenges and adhere to its established strategy, the group intends to reduce the use of the Shanghai XNG brand, which has struggled to attract the fashionable consumer segment, and will embark on a brand revitalization, opening new restaurants with lower management costs to more effectively cater to the region's more affluent and style-conscious clientele.
Comments