Yoren Implements Corporate Inversion to Enhance Governance and Market Position

Yoren's Corporate Inversion: A Strategic Move for Future Growth

Yoren, a prominent player in the Japanese technology sector, has made a significant organizational change effective September 1, 2025. The company, led by CEO Osamu Kaneda, has transitioned from an overseas holding company structure to becoming its own holding company based in Japan. This strategic shift aims to streamline governance and enhance market positioning as Yoren prepares for a future IPO on the Tokyo Stock Exchange (TSE).

Overview of the Corporate Inversion

Historically, Yoren operated with a BVI entity as the holding company for its group. However, with the newly implemented corporate inversion, Yoren has repositioned itself as the primary holding entity, taking over the responsibilities previously held by its BVI counterpart. This reorganization not only strengthens Yoren's corporate structure but also establishes the Japanese entity as the core of the business, overseeing operations in Hong Kong and mainland China.

Objectives Behind the Inversion

Preparing for IPO in Japan

One of the driving factors behind this inversion is the company's aim to list on the Tokyo Stock Exchange in the future. By having a Japanese holding company, Yoren believes it will provide a clearer understanding for potential investors, aligning with Japanese governance standards. Furthermore, this restructuring allows the company to achieve more transparent financial reporting based on Japanese accounting principles and respond efficiently to regulatory compliance, including the Financial Instruments and Exchange Act.

Diversifying Funding Avenues

Yoren seeks to diversify its financing options within Japan. This strategy aims to expand access to various funding mechanisms, including debt financing, thereby securing necessary capital for business growth more dynamically.

New Holding Company Details

- Name: Yoren Corporation (formerly Yo-ren Japan Co., Ltd.)
- Headquarters: 9F, PREX South, 2-5-1 Kōjimachi, Chiyoda-ku, Tokyo, Japan
- CEO: Osamu Kaneda

Future Prospects

Through this corporate inversion, Yoren aims to enhance its corporate value and achieve sustainable growth by positioning itself as a holding company based in Japan. The firm is committed to moving forward with preparations for an IPO, while also utilizing diverse funding sources to drive its business expansion.

Comments from CEO Osamu Kaneda

Kaneda has expressed gratitude for shareholders' support, announcing the headquarters' relocation to Tokyo on September 1. When Yoren was initially founded, operating internet businesses in mainland China was challenging due to strict foreign capital regulations, which led to maintaining the BVI headquarters. However, the easing of these regulations has allowed Yoren to acquire all necessary qualifications to operate as a foreign entity, thus establishing a comprehensive operational framework.

According to Kaneda, geopolitical shifts and advancements in China have transformed its role from a growth hub for Japanese firms to a dominant producer of top-tier software and hardware. Yoren intends to leverage this 'China quality' advantage to support Japanese companies and brands in their global expansion efforts. By moving the headquarters to Tokyo, the company aims to embed itself in the Japanese market across all aspects of business, finance, and governance.

Kaneda encourages stakeholders to visit the new office in Hanzomon, emphasizing the company's commitment to building strong ties within Japan's business environment.

Reference Material

For more information on the organizational changes pre and post-inversion, please refer to the group organization chart provided by Yoren.

- Current Structure (Pre-Inversion): BVI entity functions as the holding company, with the Japanese entity as a subsidiary.
- Post-Inversion Structure: Japanese entity (Yoren) assumes the role of holding company overseeing the group while liquidating the BVI entity.

Company Overview: Yoren / 游仁信息科技（上海）有限公司

- Name: Yoren Corporation / 游仁信息科技（上海）有限公司
- Primary Location: 9F, PREX South, 2-5-1 Kōjimachi, Chiyoda-ku, Tokyo, Japan
- China Office: 20F, Hongui International Plaza, 1600 Zhongshan West Road, Xuhui District, Shanghai
- Number of Employees: 198 (as of June 2025)
- Website: https://yo-ren.com/jp/