Shanghai XNG (03666): The statement in the relevant article that "deposits and prepaid cards are non-refundable" is incorrect. We are currently processing deposit refunds for customers.

SHANGHAI XNG (03666) Announcement: The Board of Directors of the company has noted the fluctuation in the company's stock price on the Stock Exchange on February 10, 2026. After reasonable inquiries at that time, the Board of Directors confirmed that, apart from the disclosures below, they are not aware of any reasons that may have caused such price fluctuations, nor are they aware of any information that needs to be disclosed to avoid false market information or any insider information that needs to be disclosed under the Securities and Futures Ordinance Part XIV A. The Board of Directors has noted a news report published by a local media on February 10, 2026. The report stated that all restaurants operated under the "SHANGHAI XNG" brand in Shanghai have been closed. The Board of Directors hereby clarify that the operation of the ten restaurants under the SHANGHAI XNG brand currently owned by the company has been temporarily suspended to align with the group's strategic restructuring. The Board also clarifies that the claim in the article that "deposits and prepaid cards cannot be refunded" is incorrect. The company is processing refund of deposits for customers, and funds from prepaid cards are held in designated escrow accounts, which are available for refunds. The Board members will continue to uphold their commitment and ensure that all deposits and prepaid cards are properly refunded to customers. The Board believes that the strategic restructuring is part of the group's ongoing investment portfolio restructuring and is a strategic move to streamline operations and reallocate resources to core markets. The suspension of operations reflects the continued lack of profitability in the mainland China restaurant business, aiming to reduce financial losses in a challenging business environment. This is part of a broader plan expected to enhance operational efficiency, improve product and service quality, and reduce costs. The group will continue to focus on demonstrating resilience and adaptability in the current economic environment. Operational resources will be strategically reallocated to more profitable market segments to capitalize on sustainable growth opportunities. Looking ahead, the group will focus on enhancing resource allocation efficiency and implementing a brand reshaping plan that encompasses comprehensive business restructuring. The goal is to improve affordability, strengthen profit margins, and establish a more vibrant and accessible brand image that aligns with evolving consumer preferences. The Board believes that the strategic restructuring is in the best interests of the group and its shareholders. The article does not contain any other material information that needs to be disclosed to the Hong Kong Stock Exchange or the company's shareholders.