Yuji Fung's questions to Kuke Music Holding (KUKE) leadership • Q2 2021
Question
Yuji Fung of River Circle Investments asked about the forward-looking revenue contribution from each business segment, the sustainability of the improved gross margin, and the level of Q2 CapEx with possibilities for reduction.
Answer
CFO Tony Chan provided the expected full-year revenue mix: Smart Music Learning at 50%, with Licensing/Subscriptions and Live Events each at 25%. He expressed optimism for sustained gross margins in Q3 and Q4, driven by growth in licensing and paying students. Chan confirmed Q2 CapEx was approximately RMB 40 million and noted the company is exploring options to control future spending, such as increasing student enrollment within existing partner kindergartens.