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    Brian Li

    Research Analyst at AMTD Group

    Brian Li's questions to Kuke Music Holding (KUKE) leadership

    Brian Li's questions to Kuke Music Holding (KUKE) leadership • Q1 2022

    Question

    Brian Li of AMTD Group inquired about the reasons for the Q1 gross margin decline and the full-year outlook, the sustainability of growth in the smart music learning solutions segment, and the key drivers behind the significant increase in licensing revenue.

    Answer

    CFO Hoi Tung Chan explained that the Q1 gross margin decline was due to a one-time disposal of obsolete inventory and increased amortization of royalty payments, but he expects it to normalize for the full year. He affirmed that growth in smart music learning is sustainable due to stable demand from public schools. The surge in licensing revenue was attributed to a larger client base, growing demand for classical music in China, and new use cases like long-form video streaming for large screens and at-home consumption.

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    Brian Li's questions to Kuke Music Holding (KUKE) leadership • Q4 2021

    Question

    Brian Li from AMTD Group asked for more details on the drivers behind the strong, continuous growth in the classical music licensing business and inquired about the reasons for significant revenue growth across all three business segments in 2021, as well as the expected revenue mix going forward.

    Answer

    President Li Sun explained that the 52% year-over-year growth in 2021 licensing revenue was driven by deeper market penetration in China and Kuke's strong brand, with future demand expected for its expanding library of long-form video content. CFO Hoi Tung Chan detailed the full-year 2021 growth drivers for each segment, including a 108.4% increase in Smart Music Learning Solutions and a 165.1% increase in Live Music Events. He projected steady growth across all segments for the upcoming year.

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    Brian Li's questions to Kuke Music Holding (KUKE) leadership • Q3 2021

    Question

    Brian Li of AMTD Group inquired about Kuke's strategy for emerging technologies like the metaverse and NFTs, and the rationale behind the downward revision of the full-year revenue guidance.

    Answer

    President Patricia Sun explained that Kuke is actively exploring new technologies like VR for live events, emphasizing that their core copyright assets will be key in future domains like the metaverse. CFO Tony Chan attributed the revised revenue guidance (from no less than RMB 400 million to RMB 300-350 million) to a strategic slowdown in new kindergarten deployments for the smart music learning business, a move prompted by rising hardware costs from the global chip shortage.

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