SHANGHAI XNG (03666.HK) completes sale of entire target company stake for HK$800,000

NewTimeSpace News: On 1 November 2026, Shanghai XNG Holdings Limited (SHANGHAI XNG, 03666.HK) disclosed that it completed the sale of 100% of the target company (XNG (HK) Catering Group Limited) for a total consideration of HK$800,000, paid in cash by the purchaser upon completion.

The target group's restaurant operations fully ceased in February 2026, and it recorded an unaudited net liability of about RMB169.2 million as of 30 September 2026. The disposal relieves the group of these idle liabilities and is expected to generate an unaudited disposal gain of about RMB169.9 million, with proceeds used as working capital to support the resumption of trading. The purchaser is a Thai investor planning to use the "Shanghai XNG" brand to develop catering opportunities outside the mainland.

As the highest applicable percentage ratio exceeds 75%, the disposal constitutes a very substantial disposal; however, completion took place before shareholder approval was obtained, so the company failed to comply with Rule 14.40 of the Listing Rules. The board expressed regret and has implemented remedial measures.