According to the Zhitong Finance App, Shanghai Xiaonanguo (03666) announced that the company signed a sales agreement with the buyer Mr. Veerayuth Arnupapmongkol on October 30, 2026. The company agreed to sell, and the buyer agreed to purchase the shares to be sold (that is, all shares in the target company Xiaonanguo (Hong Kong) Catering Group), at a total cost of HK$800,000.
The completion of the sale was carried out unconditionally on October 30, 2026, without any preconditions requiring prior shareholders' approval or regulatory approval. After completion, the company no longer holds any shares in the target company, and the target group is no longer a subsidiary of the company. Accordingly, the target group's financial performance, assets, liabilities and operations will no longer be comprehensively included in the company's comprehensive financial statements, and the target group is now unrelated to the company.
Cessation of operations: Shareholders and potential investors should note that due to serious operational difficulties and the unfavorable economic environment faced by the fine dining and dining restaurant business, all restaurant operations of the target group were completely suspended in February 2026. At the time of completion, the target group had no ongoing restaurant operations.
Strategic relief of heavy debt: As of September 30, 2026, the target group was in a huge unaudited net debt position of approximately RMB 169 million. The sale completely eliminated the Group's heavy idle liabilities and immediately strengthened the Group's balance sheet, resulting in an estimated unaudited sales revenue of approximately RMB 169.9 million.
Complete separation upon completion: With completion on October 30, 2026, the target group is wholly owned by the buyer. The target group is unrelated to the listed company, and the company does not reserve any shares, board seats, operational control, management positions, financial commitments or guarantees to the target group.
Buyer's commercial intention: According to information provided by the buyer, although the target group has ceased restaurant operations in mainland China, the buyer plans to use the brand assets and commercial reputation of “Shanghai Xiaonanguo” to explore and develop new catering and business opportunities outside of mainland China.