According to the Zhitong Finance App, Yi International Holdings (08659) announced that currently the share capital of Beijing YiTianxia Network Technology Co., Ltd. (Beijing Yihe), a wholly-owned subsidiary of the company, is held 49% by Beijing Youpanhui Trading Co., Ltd. (Beijing Youpanhui) and 51% by Cheng Denan. Since enterprises holding value-added telecommunication business licenses for Internet information services in China have foreign ownership restrictions, a VIE structure has been established through a series of contract arrangements between Beijing Usplenhui, Beijing Eihe, and Mr. Cheng and their spouses, so that Beijing Usplenhui can control 100% of Beijing Eihe's beneficial interests. The shareholding structure is based on a mutual agreement between the company and Mr. Cheng.

In order for Beijing Yipanhui to hold the maximum allowable interest in Beijing Eihe under China's foreign ownership restrictions, it is proposed to change the shareholding structure of Beijing Yihe to be 50% owned by Beijing Youpanhui and 50% by Mr. Cheng. After the proposed shareholding change, the VIE structure will continue to exist, so that Beijing Youfinhui can control 100% of Beijing Easihe's beneficial interests.