Plummeted by 77%! Wang Yibo's brokerage company Lehua's stock price crashed, and the countdown to the lifting of the ban was lifted
On January 16, 2024, Lehua Entertainment (2306. HK) suddenly crashed intraday, falling by 80.28% at one point, and finally closed down 77.84% at HK$1.27 per share. According to a series of announcements, about 40% of the company's shares from cornerstone investors and some of the original shareholders will be lifted two days later (January 19).
From a fundamental point of view, in the first half of 2023, the company's revenue will decrease by more than a quarter year-on-year, and its net profit will also turn from profit to loss. The high dependence on "Wang Yibo" has always been a concern for Lehua Entertainment, and in April 2023, another top star Fan Chengcheng "broke up peacefully" with Lehua after his contract expired and will not renew his contract.
Lehua Entertainment's share price crashed, closing at HK$1.27.
The lifting of the ban on Tianliang shares is imminent, and it has fallen nearly seventy percent from the issue price
Lehua Entertainment is China's top artist management company, ranking first in the industry with a market share of 1.9% in 2021. After moving to the New Third Board and trying an A-share IPO, a year ago, it finally landed on the Hong Kong Stock Exchange and successfully wore the halo of "the first stock of artist brokerage".
Not only that, the company has received the blessing of many "giants", in the list of shareholders, in addition to the company under the controlling shareholder Du Hua, there are also platforms controlled by Chinese Culture, Alibaba, Douyin, and Yang Ning, the co-founder of the air network.
In addition, in the stock offering stage, China Ruyi, Maoyan, Ding Shijia, the son of the founder of Anta, and Haozan Asset Management, which focuses on Hong Kong stock IPO investment, joined as cornerstone investors.
The reporter from Nandu noticed that the above-mentioned important shareholders signed a share restriction commitment on the occasion of Lehua Entertainment's listing, and the restriction period ranged from 12 months to 24 months. Now, a year has passed, and a large number of shares are facing the lifting of the ban.
On the one hand, it is the original shareholder of the company.
According to the "Global Offering" announced by Lehua Entertainment on December 30, 2022 and the "Announcement on the Offer Price and Allotment Results" on January 18, 2023, in addition to the two "Trustees of the Share Incentive Plan Holding Share Award Reserve Trustees" of Ark Trust and Shengshi Trust, 81.89% of the company's shares (before the exercise of the over-allotment option) will be locked up for 12 months from the date of listing, and the release period of the shares held by the controlling shareholder is 24 months.
Taking into account the impact of the over-allotment option, the proportion of shares held by this part of the shareholders that will be released on January 19, 2024 is approximately 35.56% of the company's total share capital.
On the other hand, it is the cornerstone investor of the company.
At the time of Lehua Entertainment's global offering, four cornerstone investors were introduced, corresponding to a shareholding ratio of 4.35 (after overweight), and the lock-up period for these shares is also 12 months.
Add the two, and two days later, about 40% of Lehua Entertainment's shares will be lifted from circulation.
According to the above announcement, the issue price of Lehua Entertainment is HK$4.08 per share, and the current HK$1.27 per share has fallen by 68.87% compared with it.
The core business income fell, Fan Chengcheng did not renew the contract, and Meng Meiqi was in turmoil
The lifting of the ban does not necessarily mean that the stock price has plummeted.
The investment price of a major shareholder in a listed company is often regarded by other investors as an "anchor" that reflects the value of the company, which is also one of the meanings of introducing cornerstone investors.
However, in the past year since its listing, Lehua Entertainment's performance has declined significantly.
According to the financial report, in the first half of 2023, the company will achieve operating income of 364 million yuan, a year-on-year decrease of 25.41%, and profit will change from a profit of 92 million yuan to a loss of 176 million yuan.
Specifically, the company's core business, artist management, decreased by 26.6% from RMB435 million in the same period of 2022 to RMB319 million, music IP production and operation revenue decreased by 26.7% to RMB29 million, and pan-entertainment revenue increased by 28.8% year-on-year to RMB15 million, but the volume was too small and its contribution to the overall revenue was limited.
Since the start of the IPO road, one of the issues that Lehua Entertainment has paid the most attention to investors is the high dependence on "Wang Yibo".
According to the prospectus, from 2019 to 2021, Wang Yibo's revenue for the company accounted for 16.8%, 36.7%, and 49.5% of Lehua Entertainment, respectively, and further increased to 59% in the first three quarters of 2022. The high dependence on one person is obviously a plus for secondary market investors.
In addition to Wang Yibo, Lehua also has well-known artists such as Han Geng, Meng Meiqi, Fan Chengcheng, Huang Minghao, and Wu Xuanyi.
It's just that Meng Meiqi, who is on the rise in her career, suddenly exposed the collapse of the house due to love problems a year ago, and has almost disappeared from public view since then. Fan Chengcheng, whose popularity has also risen rapidly in recent years, chose to "break up peacefully" in April 2023 after the expiration of his six-year contract with Lehua Entertainment, and Weibo "Chengba Secretariat" posted a blog post, saying that "the current contract with the former company is amicably terminated, and the expiration is not renewed, and the studio is completely independent."
Nandu reporter Miao Lingyun