Chinese classical music platform Kuke Music Holdings announced on Monday (November 4) that Li Sun has resigned as president of the company, effective July 23, 2024.
“Multiple Sclerosis. Ms. Sun’s resignation was not due to any disagreement between Ms. Sun and the Company on any matter relating to the Company’s operations, accounting policies or practices. you cried said in a press release.
After Mr. Sun left, He YuHe will continue to lead the company as both CEO and Chairman.
Mr. Sun’s departure comes at a challenging time for the Beijing-based company, which faces legal and stock market performance challenges. Last month, independent classical music label naxos island Cook sued Cook in the U.S. District Court for the Middle District of Tennessee, alleging failure to perform more than $1.8 million Payment obligations for the past three years.
Naxos claims that Kuke’s financial difficulties began in late 2021, when the company began to default on license payments. The legal action stems from an eight-year digital distribution deal signed in 2018, under which Kuke licensed music and third-party content from Naxos Records.
Naxos is seeking full payment of the outstanding amount, as well as additional interest and compensatory damages, putting further pressure on Cook’s financial situation.
The challenges facing Cook extend beyond the lawsuit. Despite improving US$50 million Cook faces ongoing challenges in maintaining its listing requirements when it launches its initial public offering on the New York Stock Exchange in January 2021. The company’s stock price fell below the New York Stock Exchange’s minimum threshold multiple times $1 per share, raising concerns about possible delisting.
Kuke recently announced that it will comply with the New York Stock Exchange listing rules. At that time, its stock price reached $1.30The stock has fallen below the $1 mark again in recent weeks, again raising concerns about its market stability. As of the close of trading on Wednesday (November 6), Kuke’s share price was $0.46. The last time the stock hit the $1 threshold was in early September.
In the first half of 2024, Cook’s revenue will be almost flat 62.6 million yuan ($8.7 million) starting from 62.1 million yuan in the first half of 2023. 5.7 million yuanwhile the net loss in the same period last year was RMB 9 million.
Earlier this year, Cook revealed plans to acquire a majority stake in the company. Angelina Assets Ltd. and Honeywell international ltd.both owned by Naxos Music Group. Cook has not announced any updates on the planned deal.
global music business
