text/Leju Finance Liya
In the first month of October, Superstar Legend submitted its listing application for the third time. This time, Jay Chou and Liu Genghong appeared together.
Superstar Legend is a company whose business is deeply bound to Jay Chou. Nearly 60% of its revenue comes from Magic Doll Bulletproof Coffee with "fat reduction" function. The latest listing application on October 5 shows that Jay Chou's mother, Ye Huimei, is a 5% equity shareholder of Jewell Music , and is also the controlling shareholder and founder of the company. The company has established long-term cooperative relationships with Jay Chou, Jay Weir Music (its artist agency) and Archstone (Jay Chou’s one-time or project-appointed business consulting representative).
listing application form shows that Superstar Legend was established in 2017. The company's business operations mainly include two major sectors: one is the new retail business, which mainly develops and sells health management products and skin care products; the other is the IP creation and operation branch, which provides planning and other project management services for media content, serves as a planning service provider or investor for large-scale celebrity concerts and other events, and designs and authorizes proprietary celebrity IP.
This time, Superstar Legend announced that it will work together to create the popular IP of Liu Genghong and his wife, and announced that by June 30, 2022, the number of fans of Liu Genghong Douyin account will increase to about 72.5 million, and the cumulative number of likes of Douyin account will be about 130 million times, making it the third most popular Douyin KOL account with the number of fans. The Douyin topic "Compendium of Materia Medica" has been played more than 14.6 billion times.
The previous two times, the prospectus of Superstar Legend was submitted in September 2021 and March this year, respectively. Minyin Capital has been the exclusive sponsor. A senior securities analyst revealed to Leju Finance that under normal circumstances, the application company will fully cooperate with various review processes during the listing process, and it is impossible for both to expire, which means that the review will be extremely strict. What cannot be ignored by
is that in addition to the high dependence on Jay Chou and his related IP, the previous multi-level marketing model of superstar legend distribution plus distribution was also questioned as a pyramid scheme. In June 2020 and May 2021, the Kunshan Municipal Supervision Bureau, where its general distributor is located, froze the bank accounts of multiple relevant legal persons and natural persons of the company and its partners on the grounds of suspected pyramid schemes. Fortunately, the relevant departments did not ultimately identify it as a pyramid scheme.
After the increase in the bid, the Hong Kong Stock Exchange "three battles" will be successfully entered the capital market this time?
The figure of Jay Chou that cannot be erased
Jay Chou does not directly hold a controlling stake, but the superstar legend is a consortium of his "relatives + friends + partners", and Jay Chou is difficult to stay out of it.
Prospectus information shows that the superstar legend was founded by four Taiwanese, all of whom acted in concert, namely Jay Chou’s business partner Ma Xinting, Jay Chou’s agent Yang Junrong , Jay Chou’s mother Ye Huimei, and Jay Chou’s former executive Chen Zhong, Jay Chou’s agency Jewell Music. These four company founders are closely related to Jay Chou.
At present, Ma Xinting (through its wholly owned company Harmony Culture), Yang Junrong and Ye Huimei (through their wholly owned company Legend Key) and Chen Zhong (through their wholly owned company Max One) benefit from 27.63%, 27.63% and 9.21% of the company's issued share capital, respectively. According to the joint action agreement signed 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.
In addition, there are many other celebrities among the superstar legend executives. For example, the company's chief cultural officer is a famous Taiwanese lyricist Fang Wenshan and is also a good partner of Zhou.
Superstar Legend is also trying to cooperate with other stars to launch more IP combinations, while expanding the portfolio including new retail products.
's prospectus stated that Journey to the West 2 is currently in production and the company is also preparing other media content, including a weekly online one-hour music talk show centered on Harlem Yu . At present, 9 episodes of 12 episodes have been completed, and the program is expected to be aired in the first half of 2023.
At the same time, Superstar Legend said it is also exploring the feasibility of creating a binary personality for stars such as Liu Genghong and his wife, Fang Wenshan and other stars.Although Liu Genghong repeatedly explained to fans that Jay Chou only contributed songs and did not need to appear in the live broadcast of the dance moves. But it can be seen from the prospectus book that the popular Liu Genghong joins, bringing a shot of a heart-warming agent to Jay Chou's concept company, and the two good friends "joined" in the superstar legend.
Live streaming and selling goods to "save" retail business
Due to the impact of the epidemic, the superstar legend, who was once in charge of Jay Chou's concert, has focused on the development and sale of health management products and skin care products in the past three years.
public information shows that Jay Chou endorses include China Mobile Dynamic Zone, Metersbonwe , Youlemei Milk Tea, Emma Electric Car , Kebike Potato Chips, Yiliyou Yogurt, Grain Quanqimei Hand-grabbing Cake , Oreo, Shining Eye Drops, Pepsi , Uni-One 100 Instant Noodles, Motorola Mobile, Delhui Sneakers, Sprite, Colgate Toothpaste, Hailan Home , Xizhilang Jelly, etc. Most of them are the main advertisers of TV stations.
Compared with the above-mentioned mass consumer products, Magic Bomb-proof Coffee is different from traditional bombardment promotion. Instead, it was first implanted into "Journey to the Journey" broadcast on Zhejiang Satellite TV , with a number of appearances in one episode as high as 6 times. Superstar Legend admits that in order to fully utilize the potential of its exclusive celebrity IP assets, the ability and expertise to create three different IPs, namely the unique celebrity IP (such as Zhou’s classmate), product brand IP (such as expert pleasing oneself) and media content IP (such as Zhou Travel 1).
In the planning of Superstar Legend, the company has a variety of capabilities that enable the company to operate its business in an innovative product distribution model. Using this model to combine the unique celebrity IP to promote its brand products, and the content IP with its own celebrity IP as its main feature will help promote product promotion in social media and e-commerce channels to distribute to distributors, distributors and terminal consumers.
prospectus shows that due to the raging of Omicron variant of COVID-19 in many places, this model was eventually hit hard in the first half of 2022. According to reports, the average monthly sales of Modou Coffee increased from 9 million yuan in 2019 to 27.7 million yuan in 2020. Superstar Legend bluntly stated that the revenue generated by the new retail business has decreased significantly compared with the same period in 2021.
Since organizing live streaming to sell goods in July 2022, the newly launched superstar legend products promoted by famous stars such as Liu Genghong's lover Ms. Wang and other KOLs have increased their attention. According to the information of Zhuoshi Consulting, such live streaming sales have received an average of more than 4.5 million viewers. In the e-commerce live streaming sales conducted in 7 and 8 months, the total transaction volume recorded by Superstar Legend was 23.9 million yuan, and the revenue obtained in IP creation and operation business increased significantly.
According to Zhuoshi Consulting Information, based on the total commodity transaction volume, it is expected that China's health management community social e-commerce industry will increase from 9.6 billion yuan in 2016 to 26.1 billion yuan in 2021. At the same time, it is estimated that the market size of bulletproof coffee will reach 7.6 billion yuan in 2026, with a compound annual growth rate of 18.7%. Superstar Legend believes that the sales performance of the new retail business will continue to return to normal, including the health management and skin care products launched by Modou Coffee, such as Modou Soda and Modou Physician Doctor.
iMedia Consulting data shows that the scale of China's coffee market in 2021 was about 381.7 billion yuan, and the domestic coffee market is expected to maintain a growth rate of 27.2%. In contrast, bulletproof coffee is still a niche product that is "only popular but not explosive".
In addition, according to the data in the first prospectus of Superstar Legend, 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, 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, with an average price of 20.68 yuan per box.
From 2019 to 2021, the average selling price of Modou Coffee was 114 yuan, 100 yuan and 106 yuan respectively. It can be seen that superstar legend and huge distribution network have enough price difference in profits.
Another one that has attracted close attention from the market is the huge sales network of Superstar Legend. The prospectus disclosed that Superstar Legend has established a distribution network with its partners, and distributors can only further consolidate and expand their distribution network through their next level of distributors.The number of distributors and distributors cooperated by Superstar Legend has increased from 374 and 2,719 in 2019 to 699 and 18,871 by the end of 2021. From 2019 to 2021, the revenue from distributors was 80 million yuan, 362 million yuan and 292 million yuan through the total distributor assistance distribution model and general distribution model.
The asset-liability ratio exceeds 1 times
Judging from the financial data, the performance of Superstar Legend has fluctuated significantly during the period. The prospectus shows that from 2018 to 2021, Superstar Legend's revenue was RMB 94.682 million, RMB 86.585 million, RMB 457 million and RMB 365 million, RMB 9.235 million, RMB 22.719 million, RMB 75.631 million and RMB 42.891 million, RMB adjusted net profit was RMB 9.235 million, RMB 22.719 million, RMB 80.364 million and RMB 69.933 million, respectively.
In the first half of 2022, Superstar Legend achieved revenue of 125 million yuan, a year-on-year decrease of 24.7%, and attributable net profit of 14.512 million yuan, and increased by 553.4% year-on-year. At the same time, gross profit margin also dropped from 61.2% in the first half of 2021 to 59.4% in the first half of 2022.
prospectus shows that on 2018, 2019, 2020 and December 31, 2021 and June 30, 2022, the trade receivable balances (after deducting impairment provisions) of Superstar Legend Trade Receivables were RMB 12.7 million, RMB 252,000, RMB 40.2 million, RMB 26.1 million and RMB 22.7 million, RMB 22.7 million, RMB 22.7 million, RMB 11.4 million, RMB 39.4 million, RMB 32 million, RMB 26.5 million and RMB 50.4 million, respectively. For the year ended December 31, 2021, the company has written off other receivables of RMB 3 million for a loan provided to the forward marketing agency.
Leju Finance found that from 2019 to 2021, the return on equity of Superstar Legend fell from 88.5% to 26%, while the asset-liability ratio rose from 0.1 times to 1.14 times, and the debt-to-debt repayment ability was under pressure. According to the prospectus, in 2021, Superstar Legend added 20 million yuan in new loans and financial liabilities of .1635 billion yuan, and the two new debts were 4.3 times the current net profit.
