Shanghai Xiaonanguo: The plan to open up to 10 new restaurants by the end of June is still underway

On the evening of February 13, Shanghai Xiaonan Guo announced on the Hong Kong Stock Exchange that it had noticed reports claiming that several restaurants in Shanghai suddenly closed without prior notice to employees, and that shopping mall operators posted “store closure notices,” also indicating that lease termination notices had been displayed and rent arrears existed. The board clarifies that these reports are not accurate and lack substance. The group is currently negotiating lease agreements with the landlords, and as of the date of this announcement, the leases have not been terminated by the company. Four landlords have unilaterally issued termination notices. The board also clarifies that the suspension of operations is part of the group’s ongoing brand restructuring and reorganization plan. This plan is part of the group’s long-term development strategy, aimed at reducing reliance on the “Shanghai Xiaonan Guo” brand and reallocating resources to new dining concepts with lower costs and stronger consumer appeal. The restructuring of the two remaining restaurants is still underway and is expected to be completed by the end of the first quarter of 2026. The company plans to open up to 10 new restaurants by June 30, 2026, which is still in progress; however, no new restaurants have been put into operation to date.