Lianhua Supermarket (00980) plans to sell a series of subsidiaries at a total cost of about 146 million yuan

Zhitong Finance App News, Lianhua Supermarket (00980) issued an announcement. On September 27, 2024, Shanghai Lianhua, an indirect wholly-owned subsidiary of Bailian Group, signed a Jiangsu Lianhua equity transfer agreement with the company (as the seller), relating to the proposed sale of all shares in Jiangsu Lianhua; and the Anhui Century Lianhua share transfer agreement with Century Lianhua Development (as the seller), a proposed sale of all shares in Anhui Century Lianhua; and Century Lianhua Development (as the seller) Agreements, content-related The total cost of proposing and selling all of Hongkou Century Lianhua's shares is approximately RMB 145,23.4 billion. Jiangsu Lianhua, Anhui Century Lianhua and Hongkou Century Lianhua will no longer be subsidiaries of the company after the share transfer settlement under the relevant sales matters to be carried out under each share transfer agreement is completed.

After the sale is completed, the company plans to enter into an entrustment management agreement with Shanghai Dongran. Based on this, the company agreed to provide management services and resource support services to Jiangsu Lianhua, Anhui Century Lianhua and Hongkou Century Lianhua for a period of three years from the effective date of the entrustment management agreement.

According to the announcement, the signing of the equity transfer agreement and the proposed sale matters under it are mainly based on the company's territorial development and the overall strategic background focusing on the core business in Shanghai and Zhejiang, while fully considering factors such as the market and competitive environment of the three subsidiaries, the operating conditions of the stores, the layout of outlets, and the influence of the supply chain. Furthermore, for the Group, due to the overall economic downturn and increased competition in the retail industry in recent years, the pressure on overall financial performance has been strong. This transfer and the issuance of domestic shares promoted earlier can be an important opportunity and a new beginning for improving the company's performance and achieving medium- to long-term healthy development. Subsequent, the group will further stimulate corporate vitality and long-term competitiveness through medium- to long-term reform measures such as business sector restructuring, business format transformation, product and supply chain reform, channel development, organization and digital construction.