Lianhua Supermarket subsidiary valued for equity transfer ahead of internal deal

Shanghai Century Lianhua Supermarket Yangpu Co., Ltd., a subsidiary of Lianhua Supermarket Holdings Co., Ltd., has been valued at 78,286,000 yuan for its total shareholder equity as of July 31, 2025. This valuation, based on the asset-based approach, is in preparation for a proposed equity transfer from Shanghai Century Lianhua Supermarket Development Co., Ltd. to Shanghai Dongran Industrial Co., Ltd., an internal transaction within the Bailian Group.

The valuation report indicates a total asset book value of 95,291,830.03 yuan, total liabilities of 36,250,788.87 yuan, and a net asset book value of 59,041,041.16 yuan. After assessment, the total asset value is adjusted to 79,967,600 yuan, while total liabilities are reduced to 1,681,600 yuan, resulting in a net asset valuation of 78,286,000 yuan. The significant increase in net asset value is primarily due to a substantial reduction in liabilities and an increase in fixed assets.

The long-term equity investment showed a decrease in value, from a book value of 1,000,000 yuan to an assessed value of -500,300 yuan, attributed to sustained operating losses of the invested entity. Conversely, fixed assets saw a slight increase from 6,980,532.06 yuan to 7,005,200 yuan due to their economic useful life exceeding their accounting depreciation period.