Yonyou Network streamlines governance, eyes Hong Kong IPO

Yonyou Network Technology (SSE:600588) is restructuring its corporate governance and preparing for a potential initial public offering (IPO) on the Hong Kong Stock Exchange. The company's board of directors has approved the cancellation of the supervisory board, transferring its responsibilities to the audit committee. This move aims to streamline operations and align with updated regulations, including the revised "Company Law of the People's Republic of China" effective July 1, 2024. Alongside this shift, Yonyou will also amend its Articles of Association and related procedural rules and has tapped Ernst & Young (EY) as the auditing firm for the planned HKD listing, subject to shareholder approval. The decision to list in Hong Kong and appoint EY as the auditing firm was approved by both the board and supervisory committee, and further endorsed by the board of supervisors, underscoring the company's commitment to a transparent and well-governed process as it explores international capital markets.