25th May 2023 – (Hong Kong) Taiwanese celebrity Jay Chou’s concept stock, Star Plus Legend Holdings Limited, has passed its listing hearing on Wednesday (24th May), according to filings with the Hong Kong Stock Exchange (HKEX). The company has two business segments, namely the new retail segment and IP creation and operation segment. Each segment can generate revenue on its own, while the IP creation and operation segment can also act as a marketing tool to promote the company’s new retail products.
Both the new retail business and the IP creation and operation business rely heavily on Jay Chou. Products under the new retail segment with promotional activities involving Jay Chou or his related IP accounted for a significant portion of the company’s total revenue during the track record period (2019 to 2022), while the company’s IP creation and operations around Jay Chou or with him as one of the performers accounted for a smaller but still significant portion of the company’s total revenue.
Although Jay Chou does not directly hold any shares in Star Plus Legend Holdings Limited, he endorsed the company’s “Bulletproof Coffee,” which generated HK$120 million in sales last year. Jay Chou’s mother, Ye Hui Mei, indirectly holds approximately 13.8% of the company’s shares, making her a significant shareholder.
Star Plus Legend Holdings Limited mainly operates in the new retail segment, selling health management and skincare products through social e-commerce channels such as WeChat. The company signed a 10-year IP licensing agreement with JayChou‘s artist management company, JVR Music, giving it priority access to projects related to Jay Chou and his IP.
In 2022, the company’s revenue from the new retail segment decreased by approximately 20%, accounting for 70% of the total revenue. However, its IP creation and operation business revenue increased by 62.7%, offsetting some of the negative impact of the new retail segment’s decline. Star Plus Legend Holdings Limited plans to use the funds raised from its upcoming listing to develop new products, increase brand exposure, create unique celebrity IPs and related content, and boost sales and marketing efforts.
Investors should note that the company’s new retail and IP creation and operation businesses heavily rely on Jay Chou. During the track record period (2019 to 2022), products related to Jay Chou or his IP accounted for a significant portion of the company’s revenue. Despite not holding any shares directly, Jay Chou’s mother is considered a controlling shareholder of the company, holding a 27.63% stake through Legend Key, a company jointly owned by Ye Hui Mei and JVR Music’s director, Yang Jun-rong. The company’s Chief Cultural Officer is lyricist Vincent Fang, who has collaborated with Jay Chou for many years. The company is exploring the creation of unique celebrity IPs centred on Vincent Fang.