Lianhua Supermarket Holdings Co., Ltd. (00980) has released an announcement regarding a proposed disposal of its wholly owned subsidiary, Shanghai Century Lianhua Supermarket Yangpu Co., Ltd. The transaction, if completed, involves transferring all equity interests in this subsidiary to Shanghai Dongran Industrial Co., Ltd., an indirect wholly owned subsidiary of Bailian Group Co., Ltd. The final consideration will be determined through an independent valuation filed with competent authorities.

Following completion of the proposed disposal, Lianhua Supermarket Holdings Co., Ltd. intends to enter into an entrustment management arrangement with Shanghai Dongran, under which operating management services and resource support will be provided for the transferred subsidiary. The company states that this move aligns with its overall strategy for stable medium-to-long-term development and will allow a more focused expansion of its core businesses in Shanghai and Zhejiang.

Because Shanghai Dongran is an indirect wholly owned subsidiary of Bailian Group, a substantial shareholder of Lianhua Supermarket Holdings Co., Ltd., the disposal and related arrangements constitute possible connected transactions under the Listing Rules. The company indicates that shareholders and potential investors should exercise caution when trading its shares, as the final terms are subject to regulatory filing, negotiation, and signing of definitive agreements. Further disclosures will be made in line with required regulations as developments unfold.