Lehua Entertainment, which belongs to artist Wang Yibo, was revealed to be on hold.

　　According to a report by Bloomberg on September 1, Lehua Entertainment has suspended its listing in Hong Kong due to reasons such as investor intentions failing to meet its valuation expectations.

The company decided to suspend the listing pending an improvement in market conditions, people familiar with the matter said.

　　On September 2, the Hong Kong Stock Exchange replied to The Paper that it would not comment on individual companies.

The surging news reporters inquired about the Hong Kong Stock Exchange's disclosure, and Lehua Entertainment's new listing announcement and prospectus information are still on the official website.

On August 7, Lehua Entertainment has passed the hearing of the Hong Kong Stock Exchange, and China Securities International and China Merchants Securities International are the joint sponsors. This is the third time for Lehua to hit the listing.

　　China Merchants Securities said it would not respond to the news that Lehua had shelved its listing.

　　According to the prospectus, Lehua Entertainment is expected to issue 133 million shares in this IPO, of which 13.256 million shares are publicly offered in Hong Kong and 119 million shares are offered internationally.

According to the original plan, the IPO will be held from August 24 to August 31, 2022, with an issue price range of HK$6.80 to 8.50 per share and 400 shares per lot. It is expected to be officially listed on September 7.

　　According to Frost & Sullivan data in the prospectus, in terms of artist management revenue in 2021, Lehua Entertainment ranks first among Chinese artist management companies.

As the largest artist management company in China, it has also created a number of "first" titles in the industry, such as one of the most recognized entertainment brands in China; the first artist management company to provide a systematic trainee program; the first batch of artist management companies An artist management company that realizes business expansion overseas.

　　The history of Yuehua Entertainment can be traced back to July 2009.

On July 3, 2009, executive director, chairman and controlling shareholder Du Hua founded Lehua Co., Ltd., which later became the main operating subsidiary of Lehua Entertainment.

As of March 2, 2022, Lehua Entertainment has 58 contracted artists, including Han Geng, Wang Yibo, Meng Meiqi, Fan Chengcheng, Huang Minghao, Wu Xuanyi, Zhu Zhengting, Li Wenhan, etc., as well as 80 participants in the Lehua Entertainment trainee program trainee.

　　Lehua's road to listing is quite bumpy.

On September 22, 2015, Lehua Co., Ltd. was listed on the New Third Board with the stock code of 833564.NQ.

On March 22, 2018, Lehua Co., Ltd. was delisted from the New Third Board through a voluntary application for delisting.

In the same year, Lehua Co., Ltd. turned to A-share listing and began to explore the plan of listing on the main board of the Shanghai Stock Exchange, but did not submit a formal listing application.

　　According to the prospectus, in addition to artist management, Lehua Entertainment’s business scope also includes IP production and operation, and pan-entertainment business segments.

It is worth noting that although Lehua's entertainment business is divided into three major sectors, in fact, its revenue is solely dependent on artist management.

　　The operating income from 2019 to 2021 will be 631 million yuan, 922 million yuan, and 1.29 billion yuan respectively.

Among them, the income of artist management is 530 million yuan, 808 million yuan and 1.175 billion yuan respectively, and the revenue contribution ratio has also increased from 84% in 2019 to 91% in 2021.

　　Under the circumstance that the artist management business is dominant, Lehua Entertainment has a situation of relying on a single supplier B.

According to the prospectus, Supplier B is one of its artists. From 2020 to April 30, 2022, more than 80% of Lehua Entertainment’s revenue growth was contributed by B.

B's contract and renewal are the same as those of Wang Yibo.

The data shows that Wang Yibo has brought 106 million, 338 million, and 639 million income to Lehua Entertainment in three years, and its revenue contribution to Lehua Entertainment has increased from 16.8% in 2019 to 49.5%. As of April this year, It increased again to 56.8%.