Karina's questions to Kuke Music Holding (KUKE) leadership • Q4 2021
Question
Karina from Tiger Brokers inquired about the reasons for the Q4 gross profit margin decline, particularly in the licensing and subscription business, and sought clarity on the company's future profitability outlook, given the contrast between Q4 net profit and the full-year net loss.
Answer
CFO Hoi Tung Chan attributed the margin pressure to a strategic shift towards public schools in the Smart Music Learning segment and a revised profit-sharing policy with a key content provider for the subscription business. He expressed optimism for future profitability, citing strong year-over-year growth in licensing revenue (over 50%) and the Smart Music Learning business (over 100%), and highlighted the potential of new ventures like the KOLO NFT platform to create new revenue streams.