Per editor: Zhang Jinhe
On August 25, Star Chinese (HK6698) announced on the Hong Kong Stock Exchange that Zhejiang Satellite TV, the main broadcast platform of the company's variety show "The Voice of China", today announced that it will suspend the broadcast of the show pending further investigation into certain incidents disclosed in recent media reports. The company fully supports the decision and action of Zhejiang Satellite TV. The Company and the relevant production team members of the variety show will actively cooperate and provide all necessary assistance to facilitate the investigation. The company expects the relevant departments to obtain results based on facts and investigations as soon as possible.
On the morning of August 25, Zhejiang Satellite TV announced on its official Weibo that the program was suspended in view of the ongoing investigation of the problems reported by viewers and netizens with the "The Voice of China" program.
Zhejiang Radio and Television: Further investigation and verification will be carried out
On the evening of August 20, Zhejiang Radio and Television Group posted on its official website in response to the controversy over The Voice of China.
Zhejiang Radio and Television said that recently, Zhejiang Radio and Television Group has paid attention to the vast number of viewers and netizens who have put forward many opinions and suggestions on the "Voice of China" program. We will listen carefully, urge the program producers to strive to improve their work, and thank you for your continued support.
Zhejiang Satellite TV has the responsibility and obligation to strengthen program supervision and perform its duties as a broadcasting platform. At the same time, we urge the program producer Shanghai Canxing Culture Media Co., Ltd. to listen carefully to everyone's opinions, effectively safeguard fairness and justice in program production, and let every participant be respected.
In response to the issues that everyone is concerned about, Zhejiang Radio and Television Group will further investigate and verify in a responsible manner, and sincerely welcome the majority of viewers and netizens to supervise.
Image source: Zhejiang Radio and Television official website
Star Huawen's stock price fell by 55.97% in 6 days, and its market value has evaporated by 20 billion yuan
As of the close of Hong Kong stocks on the 25th, Star Chinese fell 17.89%. From August 18 to 25, in six trading days, Star Chinese shares fell from HK$124 to HK$54.6, a cumulative decline of 55.97%, and the market value has evaporated by HK$21.785 billion (about RMB20.043 billion)
According to the cover news report, Starry Sky Chinese is a Chinese music IP creator and operator, owning and operating a huge Chinese film IP library. The company also operates other well-known variety shows, such as "The Voice of China", "Masked Singing Will Guess", "Chinese Good Songs" and "This! It's street dance" and so on. At the end of December 2022, after three submissions, StarSky Chinese was finally listed on the Hong Kong Stock Exchange.
According to public information, StarSky Chinese's main business has four major components, namely variety shows, music, movies and drama IP operations, and other IP-related businesses. However, the main banner of the company's revenue is the production, operation and licensing of variety show IP, which accounts for about 80% of the total revenue in terms of revenue in 2022.
On August 2, Star Chinese announced that the Group expects revenue of between RMB142 million and RMB152 million in the first half of 2023 (revenue of RMB183 million in the same period of 2022) and adjusted net loss (non-IFRS measured) of approximately RMB14.6 million to approximately RMB18.3 million in the first half of 2022 (adjusted net loss of approximately RMB6.3 million in the same period of 2022).
The reporter of "Daily Economic News" noted that the ratings and reputation of "The Voice" have declined in recent years, resulting in its ability to attract gold as the ace IP of Starry Sky Chinese. According to Douban, "The Voice Season 1" has 7.5 points, and only 2.4 points to "The Voice 2022". Its prospectus once revealed that the gross profit margin of the show was 46.6% in 2019, and only 2.2% remained in 2021.
Image source: Douban screenshot
From 2019 to 2021, the revenue of Star Chinese was 1.807 billion yuan, 1.560 billion yuan and 1.127 billion yuan, the net profit was 380 million yuan, -27.8 million yuan and -352 million yuan, and the gross profit margin was 39%, 37.7% and 24.3% respectively.
Regarding the decline in revenue, the company mentioned that the decline in revenue generated by the IP operation and licensing of variety shows was mainly due to the decline in the number of super-large variety shows, while the decline in advertising budget led to a decline in the revenue of "The Voice of China".
Up to now, "The Voice of China" is still the largest variety show IP under Starry Sky Chinese. As a company with more than eighty percent of the revenue of variety shows, the decline in the revenue capacity of popular variety show IP will directly affect the company's performance. In 2022, Star Chinese's revenue was RMB873 million, a year-on-year decrease of 22.5%. This is the fourth consecutive year of decline in the company's revenue, compared with 1.807 billion yuan in 2019, the current revenue scale of Star Chinese has shrunk by 52%.
Daily economic news comprehensive from Zhejiang Satellite TV, Zhejiang Radio and Television, cover news, starry sky Chinese announcement, daily economic news (reporter: Du Wei)
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