"Journey to the Week 2" advertisement. Photo provided by the interviewee.
Superstar Legend Group Co., Ltd. (hereinafter referred to as "Superstar Legend"), known as " Jay Chou concept stock", submitted a listing application to the Hong Kong Stock Exchange for the third time.
went to Hong Kong for an IPO three times. Superstar Legend's main business has not changed much. Most of the revenue from the new retail business comes from the sales of the low-carbon health management product Modou Coffee. In the first half of 2022, Modou Coffee sales accounted for 62% of the company's total revenue.
However, in the Superstar Legend prospectus, the reporter found that in order to diversify risks, in addition to Jay Chou, the company is also strengthening cooperation with the new IP Liu Genghong couples.
In the IPO book, Superstar Legend is positioned externally as a new retail operator, with the goal of combining the success of IP-enabled business model with other core products and IP content, and consolidating and replicating it.
What story does the superstar legend, which has three times impacted the IPO, will tell this time?
"bind" Jay Chou and his friends? Superstar Legend has hit IPO
Recently, Superstar Legend, known as "Jay Chou Concept Stock", has submitted materials to the Hong Kong Stock Exchange again. This is the third time the company has submitted statements to the Hong Kong Stock Exchange. It has previously submitted statements to the Hong Kong Stock Exchange in September 2021 and March 2022, but both have expired.
Company did not disclose specific information about why the first two sprints failed.
Judging from the relationship between Superstar Legend's equity , Jay Chou himself does not hold any shares of Superstar Legend, but most of the founders and executives of Superstar Legend are Jay Chou's relatives and friends.
According to the prospectus, Jay Chou’s business partners Ma Xinting (through his wholly owned company Harmony Culture), Jay Chou’s agent Yang Junrong and Jay Chou’s mother Ye Huimei (through a company with wholly owned equal shares) and Jay Chou’s agent Jewell Music former executive Chen Zhong (through his wholly owned company Max One), respectively, has beneficially owned 27.63%, 27.63% and 9.21% of the company’s issued share capital, respectively. According to the joint action agreement concluded by the founder on September 13, 2021, together with them, they have the right to collectively exercise control over the company’s 64.47% voting rights.
Beijing News Beike Finance reporter searched the prospectus and found that Jay Chou was mentioned 463 times in total, and his importance was self-evident. The company's two main businesses are: one is to sell healthy products such as Modun coffee, soda and Modun konjac snail noodles by relying on the star effect to attract traffic. The other is to act as a " new media operation member", authorizing the TV station to obtain income by producing celebrity IP content such as "Class Zhou" and "Journey to Zhou 1". At the same time, these contents play a marketing role in increasing brand exposure for the company's retail business.
In 2017, the superstar legend tailored the outdoor reality show "Journey to the Week" for Jay Chou. At the same time, Superstar Legend is also a subcontractor, planner and investor in Jay Chou's many large-scale concerts. It also entered into a 10-year IP licensing agreement with Jay Chou's artist agency Jewell Music. According to this, Superstar Legend has obtained priority to carry out various projects related to Jay Chou and his IP.
In March 2020, Jay Chou’s variety show "Journey to the Week" was broadcast. Not only did Modou Coffee implant advertisements in many places, Jay Chou and his guests also promoted their products through oral broadcasts. Perhaps with the help of this, the total sales of Modou Coffee in 2020 reached 3.31 million boxes, achieving revenue of 332 million yuan, accounting for 72.6% of the revenue of Superstar Legend.
and the single dependence caused by Jay Chou in depth, or the risk point of superstar legend. The company acknowledges that they rely on cooperation with Jay Chou in new retail and IP creation and operational businesses, and any negative impact of consumers' favorability or exposure to Jay Chou may have a material adverse effect on their business, financial status and operating results.
In order to alleviate the company's over-reliance on Jay Chou's IP, Superstar Legend has signed a memorandum of understanding with Fang Wenshan and Nanquan Mother members. The superstar legend in 2021 also cooperates with Jay Chou’s friends Harlem Yu and Liu Genghong. The prospectus shows that in 2021, Superstar Legend planned and created a music talk show "When it comes, you will be happy", with Harlem Yu as the main character.
After Jay Chou, Liu Genghong became the legendary new IP of superstars. Modu Coffee joined Liu Genghong's live broadcast room
. "There is a project that can help Liu Genghong make money." Recently, several Modu Bulletproof Coffee agents have launched a short video elite training camp priced at 2,980 yuan to the Beijing News Shell financial reporter, and claimed that as long as they join, the company will use Liu Genghong's traffic to help individuals achieve monthly income of over 10,000 yuan on the Douyin interest e-commerce platform.
According to the prospectus, Modu Bulletproof Coffee is used as the general distribution through Kunshan Jixing Tingshe E-Commerce Co., Ltd. (hereinafter referred to as "Jixing Tingshe") to assist Jixing Legend in distributing different products, and is responsible for the development, management of the distribution network, and the training of distributors. Superstar Ting She is also the initiator of this short video elite training camp.
Superstar Tingshe's promotional recruitment advertisement. Photo provided by the interviewee.
only needs to pay 2,980 yuan, not only will the monthly income be easily over 10,000 yuan, but you can also meet and cooperate with Liu Genghong. What exactly is the "good thing" mentioned by many Magic Bomb-proof coffee agents?
According to the information provided by it, after delivering 2,980 yuan, you will receive a 990 yuan Moddon Coffee (3 boxes) and enjoy the Douyin filming and anchor courses given by the company. There are 1,000 fans, and you can open a window to sell goods and enjoy a high-value 20%-40% of the company's products.
"The company will teach you sales tactics and will also provide videos related to Liu Genghong and Vivi sister (Liu Genghong's wife Wang Wanfei ). Just publish according to the material, do not need to appear on your own, and hang a small yellow car under the video to sell it." A magical body bulletproof coffee agent said that Liu Genghong's traffic and fame can drive product sales.
When the reporter asked about the difficulty and completion of the project, several Magic Doll Bulletproof Coffee agents admitted that they and their team members had not yet reached 1,000 fans and had not opened the small yellow car business.
Not only did the dealer say three sentences, Liu Genghong, but Liu Genghong was mentioned more than 300 times in the prospectus updated by Superstar Legend.
prospectus shows that in November 2021, Superstar Legend and W&V established a talented planet, Superstar Legend holds 70%, W&V holds 30%, and W&V is Liu Genghong's artist agency. The two parties have entered into a cooperation agreement with Liu Genghong, and Talent Planet mainly provides planning and management services for Liu Genghong's entertainment and performance business in China.
Superstar Legend said that the company planned and produced a variety show centered on Liu Genghong in 2021, and generated revenue of approximately 8.5 million yuan as of December 31, 2021. "This shows that we can jointly create IP with other artists other than Jay Chou."
In November 2021, Talent Planet and Liu Genghong signed a cooperation agreement with mainland MCN company Wuyou Media. In the agreement, Liu Genghong promised to provide live broadcast marketing services in 2022. In April 2022, Liu Genghong became popular on the Internet with aerobics . The number of fans of his Douyin account has increased tenfold from April 2022 to May 2022, with 60 million new fans. As of now, Liu Genghong has 73.012 million followers on TikTok.
"We plan to use Liu Genghong's popularity on social media platforms to empower our business through his celebrity IP. In addition to Mr. Liu, we also cooperate with his spouse Ms. Wang (with whom we entered into a cooperation agreement in July 2022)." The prospectus stated that as of June 30, 2022, the company has obtained a contract amount of approximately RMB 49.4 million through Liu Genghong's live broadcast session content planning and creation.
Beike Finance reporters watched the live broadcast and noticed that Liu Genghong has sold superstar legend-related products such as Magic Doll Coffee and Love to Eat Fresh Moren Matcha Powder in the live broadcast room many times.
prospectus shows that since the live broadcast was organized in July 2022, the attention of famous stars such as Liu Genghong's lover Ms. Wang and other KOLs promoted the newly launched superstar legend products has increased significantly. In the two months of e-commerce live streaming, Superstar Legend recorded a total transaction volume of 23.9 million yuan, and the revenue obtained in IP creation and operation business increased significantly.
per cup is 47 yuan. Who is buying Magic Doll Coffee? Is Magic Body Bulletproof Coffee an IQ tax with the blessing of celebrities?
"The company's products are never discounted, and they start from 4 boxes of each treatment." An agent told Beike Finance reporter that the retail price of 4 boxes of Magic Doll bulletproof coffee is 1,320 yuan, a box of 7 pieces, and a cup of drink a day.From this calculation, it can be calculated that the unit price of Yimo Bulletproof Coffee exceeds 47 yuan.
Moduan Bulletproof Coffee Promotional Advertisement. Photo provided by the interviewee.
"There will be activities for becoming a dealer." The agent said that after delivering 4,200 yuan, he can become a "diamond" customer and can get 15 boxes of magic carcass bulletproof coffee, with an average price of 280 yuan per box. If you want to become a strategic dealer and enjoy business rights, you need to invest 34,000 yuan. Among them, 2,000 yuan is the deposit and 32,000 yuan is the payment for the goods. You can get 160 boxes of goods, and an average of only 200 yuan per box.
The agent further told Beike Finance reporter that becoming a strategic dealer can earn sales difference through retail. At the same time, strategic dealers can recruit group buying agents at all levels to directly ship goods to the agents to earn sales difference, and strategic dealers can win recommendation awards and team management awards.
promotional advertising for its development strategy dealer. Photo provided by the interviewee.
"Recruiting a strategic dealer directly into a strategic dealer can get an 8% promotion subsidy, and you can always enjoy a promotion fee of 16 yuan/box in the future. Indirect management and training a strategic dealer can get a 4% promotion subsidy, and you can always enjoy a promotion fee of 8 yuan/box in the future. Recruiting 20 new strategic dealers can be promoted to branches and enjoy higher-level treatment."
According to the prospectus disclosed by Superstar Legend, The production method of Modou bulletproof coffee is OEM, and the supplier is Hangzhou Hengmei; from 2018 to the first half of 2021, Superstar Legend's purchases of Hangzhou Hengmei were 00,000, 13.887 million, 74.389 million and 25.689 million respectively, totaling 114 million yuan. During the same period, the sales volume of Modou coffee was 0 boxes, 632,000 boxes, 3.315 million boxes, and 1.164 million boxes, totaling 5.111 million boxes. It can be roughly calculated that the average price per box is 20.68 yuan.
According to the prospectus, the company's Modun Coffee, Modun Pastry and other products are mainly based on the concept of ketogenic diet . Superstar Legend mentioned in this prospectus that Magic Doll Pastry is more suitable for a dietary model with low carbohydrate and can achieve weight loss to increase the content of protein and dietary fiber.
In the prospectus submitted by Superstar Legend in March 2021, the company emphasized that Magic Bulletproof Coffee is a healthy fat-reducing beverage, and its product ingredients mainly include virgin coconut oil, medium-chain triglyceride MCT oil and other oils.
Superstar legend prospectus shows that traditional bulletproof coffee is a product concept derived from the "ketogenic" health management system. Modor Coffee is our first low-calorie health management product and is a weight management beverage designed for Modor Low Carb Diet Plan. A low-carb diet plan refers to using foods with high protein and high fat ratios and other low-carb foods as main nutritional supplements to replace the nutrition and energy intake of carbohydrates such as rice, flour or sugar to meet the planned fat/energy ratio. The proportion of carbohydrates in the energy supply structure is less than 10%, which is usually useful for people who are trying to lose weight or suffer from epilepsy or diabetes.
Professor and doctoral supervisor of the Department of Nutrition, School of Public Health, Sun Yat-sen University Jiang Zhuoqin told the Beijing News Shell Finance reporter that the ketogenic diet uses extremely low carbohydrates, high fat and moderate protein. Fat is the main energy source. Since fat is metabolized, it will produce ketone body , so it is called a ketogenic diet. Carbohydrates are the cleanest energy source. The ketogenic diet can only be used in a short period of time and is not recommended for long-term use. No matter which diet, you can only achieve the goal of losing weight if you consume less energy per day than the energy you consume, and the same is true for the ketogenic diet.
China registered dietitian , former Zhejiang University Second Hospital clinical nutritionist Jin Xing told the Beijing News Shell Finance reporter that the ketogenic diet, considering its safety, is not the first choice. It is recommended that short-term ketogenic ketogenic under the guidance of clinical nutritionist after trying other weight loss dietary patterns are ineffective. It is necessary to monitor changes in blood keto, liver and kidney function, and body composition, and pay close attention to the blood lipid level.
It is worth mentioning that Hangzhou Hengmei is not the exclusive supplier of superstar legends. A reporter from Beike Finance checked the official website of Hengmei in Hangzhou and found that Hengmei in Hangzhou has 36 cooperative customers. One of the customers, Beast Life, also launched similar bulletproof coffee, with a price lower than Superstar Legend.
So, who is the main purchasing force for superstar legend bulletproof coffee?
learned from the prospectus that as the general distributor, Superstar Tingshe formed a huge sales network through distributors and distributors, and used social channels such as WeChat and Douyin to sell Modou coffee to terminal consumers.
prospectus shows that from 2018 to 2021, Superstar Legend's distribution network consists of 36, 74, 575 and 699 distributors, as well as 639, 2,719, 16,519 and 18,871 distributors respectively. As of June 30, 2022, its distribution network includes 706 distributors and 16,698 distributors respectively.
From 2019 to 2021, from January to June 2022, the revenue from Superstar Legend's sales through Superstar Tingshe was RMB 72 million, RMB 340 million, RMB 254 million and RMB 77 million, respectively, accounting for 83%, 74.6%, 69.6% and 62% of the corresponding annual total revenue.
A person close to the legend of superstars told Beike Finance reporter that the company's pricing of products is based on market conditions. High pricing is not just the value of the product itself, but also the added value of the service. The person explained, "For example, selling a magic bulletproof coffee is not just a product, but also a healthy lifestyle. The company consultant will call consumers every day to manage weight with diet. There is a full set of service concepts and concepts in it."
revenue and net profit fell both last year, and revenue fell again in the first half of this year. How to tell the legendary story of superstars?
This year, Superstar Legend tied up the popular IP of Liu Genghong and his wife, but the company's revenue in terms of operations has dropped by more than 20%.
According to the prospectus, from 2018 to 2021, Superstar Legend achieved revenues of RMB 94.682 million, RMB 86.585 million, RMB 457 million and RMB 365 million, RMB 9.235 million, RMB 23.559 million, RMB 78.064 million and RMB 43.649 million, respectively.
In the first half of 2022, its revenue reached 125 million yuan, a year-on-year decrease of 24.7%, and its attributable net profit was 14.512 million yuan, and increased by 453.4% year-on-year.
Beike Finance reporter noticed that since the second half of 2021, the number of dealers of Superstar Legend has been decreasing. According to calculations, the superstar legend decreased by 1,517 dealers in the second half of 2021 compared with the first half of 2022. In the first half of 2022, the company lost 2,173 dealers again.
is measured according to non-Hong Kong financial reporting standards. The adjusted net profits of Superstar Legend in 2018, 2019, 2020 and 2021 were RMB 8.765 million, RMB 22.719 million, RMB 80.364 million and RMB 69.933 million, respectively; in the first half of 2022, Superstar Legend's adjusted net profit was RMB 21.35 million.
At the same time, its gross profit margin dropped from 61.2% in the first half of 2021 to 59.4% in the first half of 2022.
Regarding the year-on-year decline in the gross profit and gross profit margin of Superstar Legend in the first half of this year, Superstar Legend stated that it was mainly due to the decrease in gross profit from the new retail business, while the increase in gross profit of IP creation and operation business failed to offset the above-mentioned reduction. The company's gross profit margin decreased from 61.2% in the same period last year to 59.4% in the first half of this year, mainly due to the decrease in gross profit margin of new retail business.
However, in terms of marketing expenses, the proportion of the marketing expenses of Superstar Legend to the total revenue is increasing year by year. From 2018 to 2021, the sales and marketing promotion expenses generated by Superstar Legend were RMB 6.6 million, RMB 14.39 million, RMB 94.91 million and RMB 93.81 million, respectively, accounting for 7.0%, 16.6%, 20.8% and 25.7% of the company's total revenue, respectively.
For the purpose of fundraising on the market, Superstar Legend stated that fundraising on the market is mainly used to develop new products, increase brand exposure and product sales, create unique celebrity IP and related IP content, sales and marketing, etc. In addition, from 2023 to 2025, the company expects to acquire 3 to 6 suitable target companies.
Beijing News Shell Finance Reporter Zhao Fangyuan Editor Yue Caizhou Proofreading Jia Ning
