Bailian Group's Century Lianhua to transfer equity in Yangpu subsidiary

Shanghai Bailian Group Co., Ltd. announced that its indirect subsidiary, Shanghai Century Lianhua Supermarket Development Co., Ltd. (Century Lianhua), plans to transfer its 100% equity in Shanghai Century Lianhua Supermarket Yangpu Co., Ltd. (Yangpu Century Lianhua) to Shanghai Dongran Industrial Co., Ltd. Following the transfer, Lianhua Supermarket will enter into an entrusted management agreement with Dongran Industrial for operational and resource support. This is a related-party transaction, as Dongran Industrial is an indirect wholly-owned subsidiary of Bailian Group.

The transaction is in its preliminary planning stage, awaiting comprehensive audit and valuation reports. The final transaction price will be determined through negotiation based on an assessment report from an independent appraiser. Initial estimates suggest the transaction is not expected to constitute a major asset reorganization under China Securities Regulatory Commission guidelines.

Yangpu Century Lianhua reported total assets of CNY 45,239.56 thousand and a net profit of CNY 209.97 thousand for 2024. Its registered capital increased from CNY 11,200 thousand to CNY 18,200 thousand in July 2025 after a capital injection of CNY 7,000 thousand. This move aims to allow Lianhua Supermarket to focus on its core operations in Shanghai and Zhejiang.