Bailian subsidiary sells Century Mart stake, secures management deal

Shanghai Bailian Group announced that its controlled subsidiary, Lianhua Supermarket, plans to transfer 100% equity in Shanghai Century Lianhua Supermarket Yangpu to Shanghai Dongran Industrial for 7,828.60 yuan. Dongran Industrial is a wholly-owned sub-subsidiary of Bailian Group, Bailian's controlling shareholder, making this a connected transaction. The transaction price represents a 32.60% premium over the book value of 5,904.10 yuan.

Following the equity transfer, Lianhua Supermarket will enter into an entrusted management agreement with Dongran Industrial. Under this three-year agreement, Lianhua Supermarket will provide operational management services and resource support to Yangpu Century Lianhua, receiving an annual entrusted management fee of 300,000 yuan. The transaction aims to sharpen Lianhua Supermarket's focus on core operations in Shanghai and Zhejiang.

The transaction has been approved by Bailian's board of directors, with related parties abstaining from voting, and will result in a change in the company's consolidated financial statement scope. The equity transfer is subject to approval by Lianhua Supermarket's shareholders.