YUFENGCHANG HLD (08631) clarifies: Shaanxi Yufengchang is not part of the group and has no ongoing contractual relationship with it.

YUFENGCHANG HLD (08631) Announcement, the Board of Directors of the Company recently noted several media reports regarding private lending disputes involving several individuals in China and a company named Shaanxi Yufengchang Chain Catering Management Co., Ltd. According to the media reports, due to limited liquidity and poor operating performance, Shaanxi Yufengchang reportedly failed to repay the principal and interest amount due, leading to the possibility of legal action by the lenders. To avoid any potential confusion among the Company's shareholders and potential investors, the Board hereby clarifies and emphasizes: Shaanxi Yufengchang is not part of the Group, the Group does not hold any equity in Shaanxi Yufengchang, nor does it exercise any control over its business operations or financial management; and the Group has not entered into any commercial transactions, loan agreements, or guarantee arrangements with Shaanxi Yufengchang, and there is no ongoing contractual relationship between the Group and Shaanxi Yufengchang. Furthermore, after conducting all reasonable inquiries, the Board understands that Mr. Wang Xinlong, former Chairman of the Board and former Executive Director of the Company, served as an Executive Director of Shaanxi Yufengchang. The Board clarifies that Mr. Wang's role in Shaanxi Yufengchang is in a personal capacity and does not represent the Company. As of the date of this announcement, there is no overlap between the Board of Directors, senior management, or operations personnel of the Group and Shaanxi Yufengchang.