On January 12, KUKE music was listed on the New York Stock Exchange. The opening price was US $10.5 per share, up 47.70% at one time. By the end of the day, the share price was US $10.1 per share, up 1.00%. < / P > < p > KUKE music is not a “newcomer” in the capital market. The company was listed on the new third board in August 2016 and delisted in November 2017. After that, they submitted their prospectuses to the Hong Kong Stock Exchange in June 2018 and January 2019 respectively, but they all stopped because the information was not updated in time. < / P > < p > as a provider of Chinese classical music licensing, subscription and education services, KUKE music’s performance in the first nine months of 2020 declined year-on-year, with a net profit loss of 59 million yuan. This is mainly due to the greater adverse impact of COVID-19 on the intelligent education business of the company, resulting in a sharp decline in the income of intelligent education business. < / P > < p > however, even so, KUKE music is still focusing on the development of intelligent education business. According to the prospectus, 70% of the IPO funds will be used to develop intelligent education business. < / P > < p > KUKE music is mainly engaged in three businesses, namely licensing subscription business, smart education business and live classical music activities business. As of September 30, 2020, the three major businesses accounted for 86.6%, 12.3% and 1.1% of the total revenue respectively. < / P > < p > according to Frost & Sullivan report, KUKE music is the largest classical music licensing service provider and the second largest online classical music subscription service provider in China in 2019, accounting for 46.6% and 13.8% of the market share respectively. < / P > < p > KUKE music is the first company to license and subscribe classical music in China. It has about 1.8 million music tracks, including 1.6 million classical music tracks and 220000 jazz, folk and other tracks. The company mainly licenses music content to online music entertainment platforms (such as Tencent Music Entertainment Group), digital music service providers (such as Netease cloud music), film and television production companies, airlines and intelligent hardware companies. At the same time, it also attracts University, conservatory of music, public library and individual subscription. < p > < p > according to media reports, Yu He, founder and chairman of KUKE music, said publicly: “KUKE hopes to provide basic services such as water and electricity to all workers in the classical music industry through technology and copyright.”. < / P > < p > the content provided by Naxos, the largest content provider of KUKE music, accounts for more than 95% of the company’s content services and constitutes a dependence. Founded in 1987, Naxos is the world’s largest independent classical music record company. < p > < p > in terms of intelligent education business, KUKE music mainly provides intelligent piano, intelligent music teaching system, related courses and other services. In the early stage of business, KUKE music sold intelligent piano and music teaching system to primary and secondary schools through dealers. Since July 2019, the company will focus on providing relevant courses in cooperation with kindergartens. The company puts the intelligent piano in the kindergarten free of charge, uses the original kindergarten teachers to provide its curriculum service, and charges tuition fees. < / P > < p > it can be seen that KUKE’s music intelligent education business is mainly of to B nature. It is disclosed that KUKE music does not directly sign a contract with the kindergarten, but establishes cooperation with the kindergarten by employing a third-party distributor. < / P > < p > financial data show that KUKE music will be significantly affected by the epidemic in the first three quarters of 2020. From January to September 2020, the company realized an operating revenue of 35 million yuan, a year-on-year decrease of 14.63%; a gross profit of 17 million yuan, a year-on-year decrease of 39.76%; a net profit loss of 59 million yuan, a year-on-year loss of 01 million yuan. < / P > < p > from the perspective of business income, KUKE music’s license subscription business shows high stability, and the business income rises from 29.89 million yuan in the same period of 2019 to 30.22 million yuan in 2020, with an increase of 1.12%. However, the intelligent education business declined significantly, from 10.999 million yuan in the same period of 2019 to 4.283 million yuan, a decrease of 61.06%. < / P > < p > in terms of cash flow, the net operating cash flow and net investment cash flow from January to September 2020 are both negative, which are – 33.695 million yuan and – 63.264 million yuan respectively. < / P > < p > KUKE music said that many entities (such as public hospitals, universities and libraries) had to invite public bidding to purchase music subscription services, smart piano and smart music teaching system, and the travel restrictions and isolation requirements of the epidemic led to the decline of sales revenue of these services. The closure of kindergartens has also made it harder for companies to establish new partnerships and recruit new students, resulting in a sharp drop in course revenues. < / P > < p > although since September 2020, with the reopening of kindergartens and schools, KUKE music related business has resumed. However, due to the recent rebound of the domestic epidemic, investors should pay close attention to the impact of related events. < / P > < p > from the perspective of the purpose of raised funds, intelligent education business will still be the key development project of KUKE music in the future. The company will use 70% of the raised funds to enhance and diversify intelligent music education service products, expand the geographical coverage of intelligent music education services and enhance technical capabilities. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. 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