Core Viewpoint - Shanghai Xiaonan Guo (3666.HK) has experienced significant stock price declines, with a drop of over 28% followed by a further decline of 20% to 0.02 HKD, before a slight recovery to 0.026 HKD. The company is undergoing a strategic restructuring due to ongoing profitability issues in the mainland Chinese restaurant business [1]. Group 1 - The company has temporarily suspended operations of its ten restaurants under the "Shanghai Xiaonan Guo" brand in Shanghai as part of its strategic restructuring efforts [1]. - There were reports of multiple Shanghai locations closing without warning, leading to consumer concerns about deposits and prepaid cards [1]. - The company clarified that it is processing refunds for deposits and that funds for prepaid cards are held in a designated escrow account, ensuring that customers will be reimbursed [1]. Group 2 - The board of directors stated that the operational pause is part of a broader plan to streamline operations and reallocate resources to core markets, aiming to enhance operational efficiency and reduce financial losses in a challenging business environment [1]. - The strategic restructuring is seen as a necessary step in the ongoing portfolio reorganization of the group, reflecting the lack of profitability in the mainland restaurant sector [1].
上海小南国盘初再跌20%，旗下10间餐厅暂停营运