Chinese language classical music platform Kuke Music Holding on Monday (November 4) introduced that Li Solar has stepped down from President of the corporate, efficient July 23, 2024.
“Ms. Solar’s resignation was not a results of any disagreement between Ms. Solar and the corporate on any matter referring to the corporate’s operations, accounting insurance policies, or practices,” Kuke mentioned in a press launch.
Following Solar’s departure, He Yu, who serves as each Chief Government Officer and Chairman, will proceed to steer the corporate.
Solar’s departure comes at a difficult time for the Beijing-based firm, which faces authorized and inventory market efficiency challenges. Final month, indie classical music label group Naxos sued Kuke within the US District Courtroom for the Center District of Tennessee, alleging that it had failed to satisfy over $1.8 million in cost obligations spanning the previous three years.
Naxos claims that Kuke’s monetary difficulties started in late 2021 when the corporate began falling behind on its licensing funds. The authorized criticism stems from an eight-year digital distribution settlement signed in 2018, underneath which Kuke licensed music from Naxos’ label group and third-party content material.
Naxos is in search of full cost of the excellent quantity, together with further curiosity and compensatory damages, including additional strain to Kuke’s monetary place.
Kuke’s challenges prolong past the lawsuit. Regardless of elevating $50 million in its January 2021 preliminary public providing on the New York Inventory Change, Kuke has confronted ongoing challenges sustaining its itemizing necessities. The corporate’s share worth has repeatedly fallen beneath the NYSE’s minimal threshold of $1 per share, elevating considerations about potential delisting.
Whereas Kuke lately introduced its compliance with NYSE itemizing guidelines when its inventory reached round $1.30, the share worth has since declined once more to beneath the $1 mark in current weeks, renewing considerations about its market stability. As of shut on Wednesday (November 6), Kuke’s share worth stood at $0.46. The final time the inventory worth touched the $1 threshold was in early September.
Within the first half of 2024, Kuke’s income was virtually flat at RMB 62.6 million (USD $8.7 million) from RMB 62.1 million within the first half of 2023. Nonetheless, the corporate managed to show a revenue in H1, reporting a internet revenue of RMB 5.7 million, versus a internet lack of RMB 9 million within the year-ago interval.
Earlier this 12 months, Kuke disclosed plans to accumulate majority stakes in Angelina Belongings Restricted and HNH Worldwide Restricted, each owned by the Naxos Musical Group. Kuke has but to announce any updates on the deliberate offers.
Music Enterprise Worldwide
