25-5-2023 (Hong Kong) Star Plus Legend Holdings Limited, the concept stock associated with Taiwanese celebrity Jay Chou, has cleared its listing hearing with the Hong Kong Stock Exchange (HKEX), according to filings. The company has two business segments – the new retail segment and the IP creation and operation segment – which can generate revenue independently. However, the IP creation and operation segment can also serve as a marketing tool to promote the company’s new retail products.
Both the new retail and IP creation and operation businesses are heavily reliant on Jay Chou. During the track record period from 2019 to 2022, products under the new retail segment that featured promotional activities involving Jay Chou or his related IP accounted for a significant portion of the company’s total revenue, 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 total revenue.
Jay Chou is not a direct shareholder in Star Plus Legend Holdings Limited, but he endorsed the company’s “Bulletproof Coffee,” which generated HK$120m in sales last year. However, his mother, Ye Hui Mei, indirectly owns approximately 13.8% of the company’s shares, making her a significant shareholder.
Star Plus Legend Holdings Limited primarily 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 JVR Music, Jay Chou’s artist management company, 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 proceeds 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 are heavily reliant on Jay Chou. During the track record period, products related to Jay Chou or his IP accounted for a significant portion of the company’s revenue. Although Jay Chou does not hold any shares directly, his mother is considered a controlling shareholder with 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 Vincent Fang, a lyricist who has collaborated with Jay Chou for many years. The company is exploring the creation of unique celebrity IPs centered on Vincent Fang.
