Leroy is going public and sprinting again, highly dependent on Wang Yibo...

Lohas Entertainment submits its application to Hong Kong Stock Exchange again! Jay Chou's concept stock sprinted three times Recently, Lehua Entertainment Group submitted its application for Hong Kong stock listing again, and the joint sponsors are still CITIC Capital International and China Merchants Securities International. Only 3 months have passed since the previous announcement to suspend the IPO plan in Hong Kong.　　The "top ranked artist" of Lehua Entertainment is Wang Yibo, whose contracted artists also include Han Geng, Li Wenhan, Cheng Xiao, Wu Xuan Yi, Zhu Zheng Ting, Fan Cheng Cheng, etc.　　In the fourth quarter, cultural and entertainment companies "piled up" to go public in Hong Kong. Starry Chinese and Superstar Legend both submitted applications to go public. Among them, Jay Chou's mother, Amy Yip, is the controlling shareholder and co-founder of Superstar Legend.　　Industry insiders believe that most of the star IP concept stocks rely on head artists and have a single revenue structure. Whether their artists can renew their contracts for a long time and maintain high revenue for a long time are issues of concern to the capital market.　　Wang Yibo contributes nearly 60% of revenue As the head of the entertainment industry, Lehua Entertainment's journey in the capital market has had many twists and turns. 2015, Lehua Entertainment was listed on the New Third Board under the name of "Lehua Culture" and was delisted from the New Third Board in 2018. In March this year, Lehua Entertainment submitted a listing application to the Hong Kong Stock Exchange, and passed the listing hearing in August. In early September this year, Leroy Entertainment suddenly suspended the listing process. With the recovery of Hong Kong stock market, Leveraged Entertainment restarted the listing process.　　According to the prospectus, the main business of Lehua Entertainment includes three segments: artist management, music IP production and operation, and pan-entertainment business. According to the information, Lehua Entertainment ranks first among Chinese artist management companies in terms of artist management revenue in 2021, with a market share of 1.9%.　　According to the latest version of the prospectus, Lehua Entertainment has experienced high growth in the past three years. 2019-2021, Lehua Entertainment's revenue will be 631 million yuan, 922 million yuan and 1.29 billion yuan respectively; net profit will be approximately 119 million yuan, 292 million yuan and 335 million yuan respectively. 2022 first three quarters, Lehua Entertainment's total revenue was 753 million yuan, down 15.9% year-on-year.　　Among them, the company's revenue mainly comes from the artist management business and is highly dependent on head artist Wang Yibo. From 2019 to 2021, revenue attributable to Wang Yibo accounted for 16.8%, 36.7% and 49.5% of total revenue for the same period.　　On September 2, Leroy Entertainment announced that trading on the Stock Exchange was scheduled to commence at 9:00 a.m. on September 7, 2022, but in light of market conditions and after consultation with the Joint Global Coordinators, the company decided to delay the global offering.　　According to the disclosure of the Hong Kong Stock Exchange on November 14, Star Chinese Holdings Limited ("Star Chinese") submitted its application to the Main Board of the Hong Kong Stock Exchange. The co-sponsors are CICC and CITIC Capital International.　　In November 2021, Star Mandarin filed its first prospectus, but was delayed in passing the hearing, and filed again in May 2022. This is the third time to sprint to the Hong Kong Stock Exchange.　　According to the information, Star Huawen is the largest creator and operator of variety show IPs in China by revenue in 2021, with a market share of 1.6%. Star Huawen is the creator of "The Voice of China", "This! It's the Street Dance", "The Masked Singer", "The Greatest Hits of China" and other well-known variety show IP creators and operators.　　However, Star Huawen's performance has been declining in the past three years. 2019 to 2021, the company's total revenue is 1.806 billion yuan, 1.56 billion yuan and 1.127 billion yuan, respectively. In addition to the net profit of 380 million yuan in 2019, it lost 0.28 billion yuan and 352 million yuan in 2020 and 2021, respectively.　　On the reasons for the fluctuation in revenue, Star Huawen explained that variety show revenue and gross margin are affected by a number of factors, such as the partnership model adopted by the show, negotiations with investment platforms, the overall economic environment and shifts in audience preferences. Financial results may fluctuate from year to year due to the risks inherent in the business model of production, operation and licensing of variety show IPs.　　Star IP concept stocks "pile up" to seek listing in Hong Kong In the fourth quarter, star IP concept stocks "pile up" to seek listing in Hong Kong.　　On Oct. 5, the company submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with Mingyin Capital as its exclusive sponsor. According to the listing application, the company has established a long-term relationship with Jay Chou and Javelin Music (its talent agency), and in 2019 and 2020, most of the company's proprietary celebrity IPs will be centered on Jay Chou. The company has a 10-year IP licensing agreement with Jay Chou's artist management company, Javelin Music.　　Although Jay does not hold shares in Giant Star Legend, Jay's mother, Amy Yip, is a 5% equity shareholder of Javelin Music and is the controlling shareholder and founder of the company. Giant Star Legend is also sprinting to the Hong Kong Stock Exchange for the third time.　　Industry insiders believe that most of the star IP concept stocks rely on the revenue structure of the head artists and have a relatively single revenue structure. Whether their artists can renew their contracts for a long time and maintain high revenue for a long time are issues of concern to the capital market. The high reliance on head artists may result in the market giving less than expected valuation.