"Jay Chou concept stocks" apply for listing on Hong Kong stocks
Fang Wenshan serves as the chief cultural officer, Jay Chou brings goods and sells coffee
A few days ago, Superstar Legend Group Co., Ltd. ("Superstar Legend") submitted a listing application to the main board of the Hong Kong Stock Exchange. The team behind it was almost taken over by Jay Chou's relatives and friends. His mother, Ye Huimei, was a shareholder, and his friend Fang Wenshan was an executive.
However, under the aura of superstars, the problem gradually emerged. Will the capital market believe in the appeal of "Jay Chou"?
Yangtze Evening News/Ziniu News reporter Xu Jing
Highly bound to Jay Chou, Fang Wenshan becomes an executive
Superstar Legend is a new retail operator that mainly sells health management products and skin care products, mainly through social e-commerce channels such as WeChat.
It is worth noting that the superstar legend highly bound artist Jay Chou is the subcontractor, planner and investor of Jay Chou's many large-scale concerts.
From the perspective of equity relationship, one of the controlling shareholders and founders of Ye Huimei is Jay Chou’s mother, Ye Huimei. She and Yang Junrong, the other founder, jointly hold 27.6% of the shares of Ye Huimei.
Fans of Jay Chou all know that Fang Wenshan is Jay Chou’s "imperial lyricist", and the two sides have cooperated for many years.
Superstar Legend also invited Fang Wenshan as the company's cultural director, responsible for the marketing and promotion of the group's products, as well as creative planning and planning.
With the "money tree" of Jay Chou, the annual income of Superstar Legend last year reached 400 million yuan.
The prospectus shows that in 2018, 2019, and 2020, the revenue of Superstar Legend will be 95 million yuan, 87 million yuan, and 457 million yuan, with net profits of 8.765 million yuan, 22.719 million yuan and 75.631 million yuan respectively.
Regarding excessive reliance on Jay Chou, a single artist, Superstar Legend admits that any negative impact of consumers on Jay Chou’s exposure may have a material adverse effect on the company’s business, financial conditions and operating results.
In order to improve the anti-risk ability and expand the source of income, Superstar Legend claims that in the future, it will strive to expand the company's star IP portfolio and explore the creation of star IP centered on Fang Wenshan and others.
Single product, net profit fell 80% in the first half of the year
The revenue of Superstar Legend is mainly divided into two parts, namely new retail business, IP creation and operation business.
The former includes Magic Carcass Bulletproof Coffee, Da Ren Yue Ji skin care series and so on.
The latter includes event planning and IP programs, and license sales of cultural and creative products.
According to the prospectus, the new retail business is the main source of income for Superstar Legend, among which Mobo bulletproof coffee is the most popular single product.
This coffee was launched in April 2019. It is a low-carb weight management beverage featuring low fat, high satiety, and rich dietary fiber.
As of the end of 2019, the end of 2020, and the first half of 2021, the sales of Mobo bulletproof coffee accounted for 83%, 72.8%, and 72.4% of total revenue, respectively.
The revenue structure of a single product makes Superstar Legend's revenue unstable.
Superstar Legend stated in the prospectus that since the second half of 2020, there has been no large-scale sales and marketing activities, which is the reason for the decline in the sales revenue of Mogu Bulletproof Coffee.
Regardless of Jay Chou's cargo-carrying effect, the research and development technology of this coffee is not in the hands of the superstar legend.
According to the prospectus, Superstar Legend’s best-selling magic carcass bulletproof coffee is mainly produced by ODM, that is, OEM production.
Analysts believe that the exclusive supplier model is a hidden worry for future development.