On February 26, live streaming agency Three Sheep issued a statement refuting market speculation about a backdoor listing on a U.S. exchange. The rumors reportedly involved a capital acquisition between U.S.-listed company Rich Sparkle and a firm linked to TikTok superstar Khaby Lame, with Three Sheep playing a role in the collaboration. In recent years, Three Sheep has been actively expanding overseas, particularly in Southeast Asia. Partnering with an international influencer boasting hundreds of millions of followers signals that the company’s global ambitions are far from over.
As domestic live-streaming e-commerce growth plateaus, leading players such as Jiaoge Pengyou and Meiwan are also exploring cross-border opportunities, tackling challenges like local regulatory compliance, cultural differences, supply chain capabilities, and talent shortages. Whether Three Sheep, which has faced setbacks in its home market, can stage a comeback by leveraging overseas superstar influence remains uncertain.
According to Three Sheep’s statement, the company explicitly denied claims of a “successful backdoor listing” or “listing on Nasdaq,” emphasizing that neither the group nor its subsidiaries have pursued any form of backdoor listing, full listing, or IPO filing. It clarified that online reports about “Three Sheep listing on Nasdaq” or “using a U.S. shell company” refer only to overseas live-streaming operations cooperation. The company also warned that it has not authorized any organization or individual to raise funds, sell shares, or transfer equity under the guise of an “IPO,” labeling such activities fraudulent.
The source of these rumors appears to be Rich Sparkle Holdings, which went public on Nasdaq in July 2025. In January 2026, Rich Sparkle announced the acquisition of Step Distinctive Limited, the core operating company of TikTok influencer Khaby Lame. Additionally, Rich Sparkle highlighted that Anhui Xiao Hei Yang Network Technology Co., Ltd., part of the Three Sheep group, has become a strategic shareholder and core operational partner. Rich Sparkle described the move as marking the entry of a globally top-tier influencer IP into capital market operations.
Corporate records show that Anhui Xiao Hei Yang is wholly owned by Three Sheep founders Zhang Qingyang and Zhang Kaiyang through Hefei Leading Sheep Culture Media Co., Ltd. Under the agreement, Anhui Xiao Hei Yang will hold exclusive global operational rights for Khaby Lame’s activities over the next 36 months, covering live streaming and short video e-commerce planning, TikTok Shop operations, cross-border supply chain coordination, after-sales services, and AI digital avatar commercialization. Khaby Lame currently has over 160 million TikTok followers and a total social media following of 360 million.
Rich Sparkle primarily operates through its Hong Kong subsidiary ANPA (HK), providing typesetting, proofreading, translation, design, and printing services to Hong Kong-listed companies. In January, its stock experienced sharp volatility, soaring to a high of $180 before retreating to $13.06 per share at the time of reporting.
Three Sheep began its overseas push in 2023 with the establishment of Three Sheep Network, an MCN agency initially testing the waters in Southeast Asia by setting up a warehouse in Singapore and collaborating with local influencers in Singapore and Vietnam. A partnership with Singaporean influencer “shopwithsasax” topped TikTok’s GMV rankings in Singapore in its debut livestream, though industry observers noted actual sales were only around several hundred thousand RMB—far below Three Sheep’s domestic performance at the time.
After a suspension due to a fake mooncake scandal in September 2024, Three Sheep’s move to station domestic hosts on TikTok was seen as a signal of intensified overseas efforts. In April 2025, one of its top hosts, “Red Light’s Yellow,” transitioned to TikTok, briefly leading Vietnam’s daily livestreaming rankings with single-session tip revenue exceeding $100,000.
Currently focusing on Singapore, Malaysia, and Vietnam—with a localized office in the latter—Three Sheep has also entered markets in Mexico, Japan, and Brazil. The partnership with Rich Sparkle is expected to accelerate its global expansion. Rich Sparkle projects that combining Khaby Lame’s 360 million followers with Three Sheep’s nearly 400 million will create a super traffic matrix covering nearly 800 million users worldwide, with potential annual sales exceeding $4 billion. Future priorities include the U.S., Middle East, and Southeast Asia markets.
Rich Sparkle also plans to coordinate international and luxury brand advertising collaborations and develop high-margin co-branded IP product lines in categories such as beauty, fragrance, and apparel.
However, Three Sheep faces significant challenges in global markets. According to Cao Lei, Vice Chairman of the China Chamber of Commerce Live Streaming E-Commerce Committee and Director of the E-Commerce Research Center, Three Sheep’s overseas operations are still nascent, and TikTok e-commerce remains in a development phase in Europe and the U.S. The $4 billion target is highly ambitious, and operational results will take time to materialize, making it difficult to quickly offset domestic weaknesses. The outlook remains uncertain.
Other major live-streaming firms are also expanding abroad. Jiaoge Pengyou intensified its overseas strategy in 2022, focusing on brand export marketing, influencer distribution, and live-streaming operations. Its overseas business head, Hao Xijie, previously stated that European and American markets contribute up to 60% of revenue. In 2024, the company established a subsidiary in Hengqin, Zhuhai, as an overseas hub, with its U.S. debut surpassing $1 million in GMV through effective collaboration with TikTok. It also launched cross-border e-commerce courses.
Meiwan entered the Indonesian market in 2024 by recruiting TikTok talent and signing top local influencers. It has leveraged the influence of host Li Jiaqi’s livestreams to promote overseas products in China and explore exporting domestic brands via variety shows and pop-up stores.
Xinxuan Group has concentrated on Southeast Asia and Russia. After a successful debut in Thailand in 2023 with sales exceeding 830 million RMB, it conducted a Red Square livestream in Russia in 2025, selling local specialties like honey and tiramisu. It has also formed strategic partnerships with companies such as Thailand’s Charoen Pokphand Group to deepen regional supply chain integration.
Compared to peers, Three Sheep faces greater urgency to reinvent itself amid domestic regulatory tightening and heightened risks associated with top influencers. Although it resumed operations on Douyin in January after over a year of adjustments, performance has been muted. Two key hosts, Qilaoban and Zhuoshilin, have also ended their contracts with the company.
E-commerce expert Jiang Rong noted that success abroad hinges on a firm’s understanding of local markets, product selection, and supply chain strength. While Three Sheep has excelled domestically, its overseas performance will depend heavily on operational capabilities, and it is too early to predict outcomes.
Cao Lei added that Three Sheep’s complex equity structure aims to legally separate its overseas business from its domestic entity, which was penalized for false advertising, in a bid to seek new growth. However, the company must still overcome challenges related to trust transfer. In strictly regulated markets like Europe and the U.S., similar compliance missteps could lead to severe legal and reputational consequences.
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