Wanka Online Inc. (stock code: 1762) issued a voluntary announcement on its latest contractual arrangements for its subsidiary, Huanju Times. According to the announcement, the new contracts replace the existing framework established at the time of listing and involve a capital injection of approximately RMB92.8 million. The update primarily arises from the addition of Ms. Jiang, an executive Director and current Chief Executive Officer of Wanka Online, as a new registered shareholder of Huanju Times, alongside Mr. Gao, an executive Director and chairman of the board.

Under the new contractual arrangements, the fundamental structure remains close to its predecessor, ensuring Wanka Online maintains effective managerial control and full economic benefits derived from Huanju Times in accordance with prevailing PRC regulations. The latest framework also aims to mitigate risks linked to having a single shareholder structure. Wanka Huanju, a wholly-owned subsidiary of Wanka Online, continues to oversee major strategic and operational decisions of the consolidated affiliated entities.

The announcement states that the Stock Exchange granted an IPO Waiver in 2018 permitting Wanka Online’s contractual arrangements for business operations facing foreign investment restrictions. Wanka Online confirmed with its auditor and made reference to legal advice that the financial results of Huanju Times and its subsidiaries will remain consolidated into the group’s financial statements under these new arrangements. The Stock Exchange likewise confirmed the transaction remains within the scope of the original waiver, exempting the company from further shareholders’ approval or additional disclosure requirements under Chapter 14A of the Listing Rules.