Shanghai Bailian Group announced that its holding subsidiary Lianhua and its wholly-owned subsidiary Century Lianhua intend to transfer 100% equity of three subsidiaries to the wholly-owned subsidiary Dongran Industry of the holding shareholder Bailian Group, with a transfer price of 0.146 billion yuan. After the transfer, Dongran Industry will sign an entrusted management agreement with Lianhua, with Lianhua providing operational management services and resource support services to the three aforementioned companies, for a period of three years. This transaction constitutes a related party transaction, but does not require submission for approval at the company's shareholder meeting. The purpose of this transaction is to promote the sustainable and healthy long-term development of Lianhua Supermarket, enhance overall performance, and focus on the core business in Shanghai and Zhejiang.