Gelonghui, May 12, 丨 Bailian Co., Ltd. (600827.SH) announced that the controlling shareholder of the company, Bailian Group Co., Ltd. (“Bailian Group”) plans to sign a “share subscription agreement” with Lianhua Supermarket Co., Ltd. (hereinafter referred to as “Lianhua Supermarket”), a holding subsidiary of the company. Bailian Group will subscribe for no more than 360 million new domestic shares in cash at RMB 1.00 per new domestic share. After the issuance of new domestic shares by Lianhua Supermarket is completed, the company's direct shareholding ratio in Lianhua Supermarket will be reduced from 20.03% to 15.15%.
Lianhua Supermarket was founded in 1997. Its main business covers the three major retail formats of hypermarkets, standard supermarkets, and convenience stores, and continues to serve the diverse needs of consumers. Lianhua Supermarket was listed on the Hong Kong Stock Exchange on June 27, 2003. It is the first Chinese retail supermarket chain to be listed on the Hong Kong Stock Exchange. In recent years, due to various internal and external factors, Lianhua Supermarket has faced major development bottlenecks. In order to better achieve transformation and develop the core business format, Lianhua Supermarket plans to fund its strategic transformation and sustainable and healthy development through targeted issuance of new domestic shares to Bailian Group.
In order to promote the long-term healthy development of Lianhua Supermarket subsidiaries and optimize the corporate debt structure, Lianhua Supermarket and its wholly-owned subsidiary Shanghai Century Lianhua Supermarket Development Co., Ltd. plan to increase the capital of some wholly-owned subsidiaries. The capital increase reference date is December 31, 2023. The capital increase was reviewed and approved by the 35th meeting of the 9th board of directors of the company. The details of the capital increase plan and amount are as follows:
