Without Wang Yibo, where is Lehua listed?

Source | Bohufn

Author | Mengde

There is a good news in the entertainment industry.

Lehua Entertainment, a brokerage company with fresh meat such as Wang Yibo and Fan Ye, successfully passed the Hong Kong Stock Exchange on August 7, and was about to officially land on Hong Kong stocks. From the prospectus, it can be found that from 2019 to 2021 and the first four months of 2022, Lehua Entertainment's number one artist contributed to the company's revenue ratio of 16.8%, 36.7%, 49.5%, and 56.8%.

A artist accounts for almost 60%of the company's revenue? It's hard to imagine. In fact, the artist brokerage company has always rely on artists, and people are full of uncertainty, and the capital market is not optimistic about it. In this case, why is Lehua Entertainment still attached to the market?

After many twists and turns, it will eventually go public

In recent days, in a variety show, Du Hua, the owner of Lehua Entertainment, was asked by the star Yang Di: Leihua, Wow Wow, and Times Feng Jun of the Inner Entertainment brokerage company. (Lehua Entertainment, Wow, Wow, and Times Feng Jun is the three major heads of Inner Entertainment Brokerage Company.

In contrast, Du Hua did not transfer the topic, but gave the answer quickly: Lehua Entertainment No. 1, Wow, Wow, Time Feng Jun third. Du Hua's "frankness" was ridiculed by netizens "Is it the name of the collapse?"?

In 2009, Du Hua founded Lehua Entertainment. The main business included artist management, music IP production and operation, and pan -entertainment business. Well -known artists include Han Geng, Wang Yibo, Fan Ye, Wu Xuanyi, etc. From April 30, 2019 to April 3022, the operating income of Lehua Entertainment reached 3.196 billion yuan, and the company's net profit was 827 million yuan. Realize the double growth of profits and revenue.

On March 9, Lehua Entertainment submitted an IPO application to the Hong Kong Stock Exchange; on August 7, he heard through the Hong Kong Stock Exchange. As the "first share of artist agent", perhaps this explains why Du Hua had the frank and confident answer in the show.

(Picture source: Network)

Speaking of Lehua's way of listing, it can be described as twists and turns. As early as 2015, Lehua Entertainment was officially listed on the New Third Board. However, in less than three years, Lehua chose to terminate listed on the New Third Board in 2018. But Lehua still did not give up the dream of listing.

It was only stopped listed on the New Third Board in March 2018. The following month, Lehua Entertainment received the listing counseling of China Merchants Securities, but it was also lost in 2021, and another three years later. Du Hua also expressed gratitude in the circle of friends about the listing of the dream, and it is difficult to hide the excitement.

(Picture source: Network)

Lehua shakes cash tree: Wang Yibo

The prospectus shows that from 2019 to 2021 and the first four months of 2022, artist management contributed 84%, 87.7%, 91.0%, and 89.8%to Lehua. It is not difficult to find that artist management is the main source of income for Lehua. At present, there are 66 signing artists in Lehua Entertainment, and the top ten artists account for 74.8%, 83.0%, 85.6%, and 84.5%of the total revenue of the same period.

(Picture source: Network)

Lehua Entertainment proposed in the risk factors that the company's revenue depends too much on artist management. In the first four months of 2022, Wang Yibo's revenue accounted for 56.8%, nearly 60%. This is tantamount to "walking steel" for a company. In case the artist's collapse, the risk of the company is very uncontrollable. Earlier, many artists under Lehua Entertainment have been exposed to negative information, and even being cordially called "collapse company" by netizens.

In addition, by Wang Yibo's contract until 2026, several other head artists will also expire after 1-5 years. A general trend of artists is to contract with the company and set up personal studios, especially people with high popularity and high traffic.

However, excessive dependence on head artists, artists running away are the pain points of most artist brokerage companies. Du Hua once called on the establishment of an industry association to resist the artist who is red and cancelled. Lehua, known as the "Chinese version of SM", already has a mature system for training management idols.

In the first year of the idols called internal entertainment, Lehua ate bonus in the draft show, and launched many high -quality idols, such as Meng Meiqi and Fan Ye. However, after the "Driven Milk List" incident, the rice circle renovated and the draft show was completely banned. Does Lehua have an advantage in the model of cultivating artists?

This can be compared with wow wow. As the second place in the Du Hua ranking, wow wow, leaning against the "big tree" of Tencent, not only the idol transmission, but in depth the newcomer development, artist agency, program production, music output The layout of the entire industry chain is tailored to its idols to tailor the right music, variety shows, and film and television resources. The advantages of the star are obvious.

In terms of artist's choice, Wow Wow also broke the standard for fixed idols. Recently, wow wow wow, I won the two high -popular web copyrights of "Difficult" and "Stealing". The variety shows such as "Everyone's House" and "Mao Xuewang" are also well reputable.

Of course, the idol Changqing of the top Korean entertainment company SM Entertainment must verify the idol operation system for nearly 20 years, and the key is whether it can continue to launch top idols or groups to ensure the sustainability of income.

(Source: Network) Lehua's "Second Extreme": Virtual Idol

In fact, Lehua Entertainment itself is actively exploring more "possibilities". In 2021, Lehua's pan -entertainment business increased by 79.6%, from 21 million yuan to 37.9 million yuan. Although only 2.9%of the total revenue in 2021, the growth space is not small, mainly the commercial development of A-Soul, a virtual group of Lehua Entertainment.

At the end of 2020, Lehua launched a virtual artist group A-Soul, composed of 5 digital virtual artists, namely Bella, Jiaran, Nailin, Jiale and Night. The entire network has nearly 10 million fans and has received promotion cooperation with L'Oreal, ASUS, KFC, Keep. A-SOUL members were broadcast live for 2.8 hours to the evening birthday and earned 1.25 million.

(Picture source: Network)

Due to the heat of the "Yuan Universe", and the value of virtual characters in the Yuan universe is quite high, it is favored by many capital. According to statistics, in 2021, there were 66,000 new domestic virtual enterprises, 2843 financing, and a financing amount of 254 billion yuan. A-SOUL is also cooperated with Lehua Entertainment by byte beating. Byte beating provides technical support, and Lehua creates a virtual group IP.

(Picture source: Network)

Due to the fire of A-Soul in 2021, Lehua subsequently launched two new idol groups-quantum teenagers and EOE. However, virtual idol groups do not expect as "reliable" as expected.

Su Shi, the person in charge of the A-SOUL plan, mentioned that virtual artists have large R & D and art costs, and the early investment is particularly large. Even if it is a very well-known group like A-Soul, it is still in a state of large losses. Lehua's revenue also provides technical support behind the bytes.

High investment, rewards are unknown. In August 2021, Station B had more than 36,000 virtual anchors, more than half of the monthly income of more than half, and the first 120 virtual anchors took more than 90 % of the income. This year, the well -known virtual anchor stumbled, because the team's operation failure announced the "dormant". In addition, there are many virtual idols that have been helplessly abandoned because of insufficient monetization ability.

Secondly, due to the limited AI technology, these virtual artists still need to play behind the scenes. In May of this year, A-Soul member Jiale revealed that he was squeezed by the company and eventually entered the live broadcast dormant, causing great dissatisfaction. A-SOUL's official account B official account drops 60,000 a day. That is to prove that virtual idols also exist in the risk of "turning".

Therefore, virtual idol growth space is considerable, but it does not mean that Lehua's virtual idol growth is considerable. The realization of the new group's realization is unknown, but the virtual idols that have never collapsed the house are no longer established.

Why go public?

In fact, as long as the artist brokerage company has a profitable artist, it can get good benefits without listing. In the three years from 2019 to 2021, Lehua Entertainment revenue was 28 billion yuan. According to Fhston Sander, with the calculation of artist management income in 2021, Lehua ranked first among Chinese artist management companies, with a market share of 1.9%.

Excessive dependence on the risk of artist management is greater, and it is not favored by the assets. Why is Lehua Entertainment rushed to go public?

Some people in the industry believe that Lehua Entertainment chooses to be listed at this time to sell a good price. In recent years, the double growth of Lehua Entertainment's revenue profit is a good time for listing.

At present, the contract of the head artist has expired in recent years; the artist has occurred when turning over; whether the newcomer can become popular and cannot guarantee it; the future value of virtual artists cannot be determined. Then, at this time, Lehua was able to achieve at least "not panic in his hands."

At the same time, the development of chips is diversified, such as increasing investment in virtual figure tracks, entering short videos with goods, investment in new consumption fields, and so on. Listing can also bind core artists through equity incentives and other methods, such as Han Geng, top Wang Yibo, etc. The company's popularity and standardization of the brand are also conducive to the long -term and stable development of artists.

However, entertainment companies have always been said to be "difficult to delist". Facing the increasingly strict supervision of the industry and the defects of their own development, can Lehua continue to launch "explosive models" like an old predecessor SM Entertainment What about your long -term value to the market?

Reference source:

1. Nandu Weekly: Lehua Entertainment will successfully land on Hong Kong stocks. Wang Yibo supports half of his rivers and mountains?

2. First Financial and Economics: The first share of artist agent? Behind Wang Yibo, Lehua Entertainment went to Hong Kong to go public

3. Beijing Commercial Daily: Earn 2.8 billion in three years, Lehua Entertainment will go public in Hong Kong! How much KPI did Wang Yibo carry? The company revealed that this business income accounted for 90 % ...

4. Sina Finance: Interview with Lehua Entertainment Du Hua: In the future, there may be no "top flow"

5. DONEWS: "The first share of artist agent" is about to go public. What is Lehua Entertainment?

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