Haidilao, a popular Chinese hotpot chain, announced it will provide full refunds and substantial compensation to thousands of customers after two boys urinated into a hotpot at one of its Shanghai branches.

The company said on Wednesday that 4,109 customers who dined at its location at The Bund between Feb 24 and March 8 will receive a full refund of their meals, plus a cash compensation of 10 times the amount of their bill.

The incident, which occurred in the early hours of Feb 24, involved two 17-year-old boys, surnamed Tang and Wu, who were dining in a private room. According to a police bulletin, the intoxicated boys climbed onto the table and urinated into the hotpot. Wu then posted a video of the incident online, sparking widespread outrage.

The Shanghai Public Security Bureau's Huangpu branch reported the incident after Haidilao filed a complaint on March 6. Both boys have been placed under administrative detention.

Haidilao stated it has filed a lawsuit against the two boys in the Huangpu District People's Court.

The company initially responded to the incident by stating it would pursue legal action against those spreading malicious rumors and asked for leniency toward the minors involved. The restaurant also said it had replaced all cookware and thoroughly sanitized the premises.

However, the company's initial response drew criticism from online users who expressed concerns about food safety and questioned the restaurant's delayed reaction.

In its latest statement, Haidilao explained that it did not become aware of the incident until Feb 28, when the video surfaced online.

The company said it struggled to identify the specific location due to its extensive network of over 1,400 restaurants in 15 countries. It was not until March 6 that the company confirmed the incident occurred at The Bund branch.

Haidilao also said it will upgrade its private room services and invited consumers to visit and inspect its open back kitchen.