On January 16, the share price of Hong Kong-listed Lehua Entertainment plummeted, once falling to 79.93%, a new low since its listing. The topic #Lehua stock price plummeted nearly 80%# also topped the Weibo hot search list. It is reported that Lehua Entertainment’s artists inclu

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On January 16, the share price of Hong Kong-listed Lehua Entertainment plummeted, once falling to 79.93%, a new low since its listing. The topic #Lehua stock price plummeted nearly 80%# also topped the Weibo hot search list.

It is reported that Lehua Entertainment’s artists include Wang Yibo, Cheng Xiao, Fan Chengcheng, Huang Minghao, Wu Xuanyi, etc. Before its listing, some people ridiculed Lehua Entertainment as a "Wang Yibo concept stock", saying that Wang Yibo alone propped up a listed company.

On January 16, the share price of Hong Kong-listed Lehua Entertainment plummeted, once falling to 79.93%, a new low since its listing. The topic #Lehua stock price plummeted nearly 80%# also topped the Weibo hot search list. It is reported that Lehua Entertainment’s artists inclu - Lujuba

Public information shows that Beijing Lehua Yuanyu Culture Communication Co., Ltd. ("Lehua Entertainment") was established in 2009 and is located in Beijing. The company has a registered capital of 110 million yuan and its legal representative is Du Hua.

On January 19, 2023, Lehua Entertainment was officially listed on the Hong Kong Stock Exchange. At the listing ceremony, Lehua Entertainment founder Du Hua, Lehua Entertainment's artists Wang Yibo, Han Geng, etc. appeared on the scene to play gongs.

It is reported that Lehua Entertainment is one of the few companies in China that can provide systematic and professional artist training and operations. The company has built a "Lehua Model" that covers the entire life cycle of artist management, including trainee selection, artist training, artist operations and promotion. The company uses a matrix of contracted artists to develop music IP production and operation business, and adheres to a diversified strategy to find room for growth.

However, the company's revenue structure is relatively simple and highly dependent on the management of top artists. According to the listing prospectus of Lehua Entertainment, the revenue contributed by Wang Yibo in the first three quarters of 2022 accounted for 59% of the total revenue in the same period.

On January 16, the share price of Hong Kong-listed Lehua Entertainment plummeted, once falling to 79.93%, a new low since its listing. The topic #Lehua stock price plummeted nearly 80%# also topped the Weibo hot search list. It is reported that Lehua Entertainment’s artists inclu - Lujuba

Lehua Entertainment announced

performance. In the first half of 2023, Lehua Entertainment’s revenue was 365 million yuan, a year-on-year decrease of 25.2%; the loss during the period was approximately 176 million yuan. Lehua Entertainment stated that the net profit loss was mainly due to the fair value loss of convertible preferred shares and the decrease in revenue.

On January 16, the share price of Hong Kong-listed Lehua Entertainment plummeted, once falling to 79.93%, a new low since its listing. The topic #Lehua stock price plummeted nearly 80%# also topped the Weibo hot search list. It is reported that Lehua Entertainment’s artists inclu - Lujuba

Picture source: Lehua Entertainment official website

source | Financial Associated Press, China Securities News, Shenzhen Business Daily

Tags: entertainment