Lianhua Holdings has declared that its wholly-owned subsidiary, Lianhua Technology Innovation, intends to invest up to 300 million yuan in Shanghai Jieyue Xingchen Intelligent Technology Co., Ltd. via a cash capital increase, utilizing its internal funds. Presently, the target company is incurring substantial losses, and Lianhua Holdings' investment could potentially be at risk of incurring losses as well. Lianhua Holdings mainly engages in the condiment industry, with its server leasing business contributing a relatively minor share to its revenue in 2025 and continuing to operate at a loss. Moreover, the company faced the premature termination of significant contracts that year, with business performance falling short of projections and future growth prospects remaining uncertain. This investment constitutes a relatively minor portion of the target company's shares and is unlikely to have a substantial impact on Lianhua Holdings' overall business operations.