What happened?, Refund subscription fee! "Jay Chou Concept Stock" Delayed Listing Company | IP | Concept Stock

The superstar Legend, which was supposed to be listed on Tuesday, suddenly announced a delay in its listing plan on June 9th, and all subscription payments, without interest, will be refunded to the applicant.

Why did the sudden suspension of listing come at the doorstep? What happened to the legendary superstar?

Superstar Legend Suspends Listing

On June 9th, Superstar Legend announced that, taking into account the current market environment and various factors, it will issue a supplementary prospectus to restart the IPO, and the company will refund all the shares to all applicants without interest. To ensure the rights and interests of investors, Juxing promises to fully refund all fees paid by investors who apply to subscribe to the Hong Kong offering shares. The refund will be returned to the designated bank account of the investor or its broker or custodian on June 12th.

Giant Legend emphasizes that the decision to delay the global release will not have an impact on its current business, and the company is still committed to expanding its partner star IP portfolio, expanding its market share in new retail products, and continuously creating long-term value for shareholders.

Giant Legend will go public from May 31 to June 5, 2023, with the original plan to go public on June 13. According to the original global offering plan, Superstar Legend will sell over 126 million shares globally, of which 48 million are old shares owned by existing shareholders, with an offering price ranging from HKD 5.5 to HKD 6.3 per share. However, the final price is limited to HKD 5.5, raising HKD 700 million.

However, according to a sponsor from a Hong Kong securities firm who revealed to Securities Times reporters, the Star Legend roadshow was hit by a cold reception, with serious subscription shortages that fell short of the company's expectations, leading to the suspension of the listing plan.

The above sponsor stated that the current environment in the Hong Kong stock market for new shares is poor. After the suspension of listing of Giant Legend, investors should be cautious when subscribing to new shares. Whether the new share market can improve in the second half of the year depends on whether the overall market improves.

However, Superstar Legend stated that it will strive to complete the global offering and listing as soon as possible, and expects to issue supplementary prospectus, update the listing schedule, complete relevant procedures and data supplementation. Giant Legend emphasizes that the company's fundamentals are currently good, and the decision to delay listing will not have any impact on the company's business.

According to sources, Giant Legend will resume its IPO in the near future. This IPO will increase the stock lockdown period for management and shareholders, and adjust the IPO price according to market conditions to benefit the secondary market, in order to enhance investor confidence.

The "Jay Family and Friends Group" on the shareholder list

According to the prospectus, Giant Legend's business mainly includes two parts: new retail and IP creation and operation. IP creation and operation can also generate synergies with new retail, serving as one of the marketing tools to promote new retail products.

IP creation and operation are mainly through the deep binding of celebrities such as Jay Chou, the creation of a series of peripheral products through media content production, event planning, star IP management, etc., and then through the promotion platform to lead, enable the development and supply of new retail products, and finally reach the end consumers through e-commerce channels, such as Tiktok, Tmall, Kwai, Superstar Preferred APP, and complete the closed-loop of the entire business.

For example, due to the exclusive ownership of multiple celebrity IPs by Superstar Legend, it can generate promotional effects on multiple complementary occasions and platforms, rather than empowering new retail businesses with a single association generated by the brand. For example, in 2020, Superstar Legend promoted Moji Coffee through advertisements, on-demand broadcasts, and other means in its main content production weekly travelogue. It also makes good use of the popularity enabled product sales with Liu Genghong and his wife Wang Wanfei. Since July 2022, it has carried out live delivery of goods on Tiktok's account of "Liu Genghong's fat oil card is stuck", and promoted the product "Magic Carcass Qingcui Coffee" through the live broadcast link of Liu Genghong and Ms. Wang.

It is worth mentioning that Moji Coffee is the main source of revenue for the new retail business of Giant Legend. Moji coffee is a bulletproof coffee derived from the concept of "ketogenesis", which means that the human body can burn fat without consuming carbohydrates. The concept of bulletproof coffee was first introduced in the United States in 2004 and has been commercialized in China since 2016.

Data shows that from 2019 to 2022, the company's operating revenue was 86.585 million yuan, 457 million yuan, 365 million yuan, and 344 million yuan, respectively. The operating revenue has shown a downward trend since 2020. But the company's gross profit is very high, maintained at around 60%. In terms of net profit, from 2019 to 2022, it was 22.719 million yuan, 75.631 million yuan, 42.891 million yuan, and 64.898 million yuan respectively.

According to the prospectus, the new retail business and IP creation and operation of Star Legend heavily rely on Jay Chou. During the past performance record period, business growth was achieved due to the revenue generated by several Jay Chou related IPs themselves, and these IPs also had a promotional effect on newly distributed retail products. The products related to Jay Chou or his related IP promotion activities under the new retail division account for 83%, 72.8%, 64.8%, and 45.2% of the company's revenue, respectively, while the IP creation and operation around Jay Chou or one of his performers account for 5.7%, 19.6%, 9.1%, and 13.3% of the total revenue.

It is worth mentioning that from the list of shareholders, Jay Chou was not seen, but he was everywhere related to him.

According to the data, the four controlling shareholders of Giant Legend are concerted actors, namely Ye Huimei, Yang Junrong, Ma Xinting, and Chen Zhong, accounting for a total of 64.5% of the company's pre IPO shares.

Ye Huimei is Jay Chou's mother, and Yang Junrong is Jay Chou's star agent. He is also the CEO, director, and controlling shareholder of Jay Chou's talent agency, Javier Music. Chen Zhong also works at Javier Music as the head of artist management for the company, responsible for negotiating endorsements, events, and other matters for several artists including Jay Chou.

Ma Xinting was once the CEO of Mojie Esports. In April 2017, Jay Chou announced the co creation of the "Mojie Esports" brand with IDG. After taking over the flagship store of Mojie Esports in Shenzhen, Ma Xinting's first month profit reached 760000 yuan, turning losses into profits.

According to the prospectus, Ma Xinting serves as the Chairman and Executive Director of the Board of Directors at Giant Legend, responsible for the company's overall business strategy, daily management, and operations.

In addition, Jay Chou's "official lyricist" and friend Fang Wenshan also served as the "Chief Cultural Officer" of the superstar legend, responsible for product marketing and entrepreneurial strategy planning.