Kuke Music Holding Limited (KUKE): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, you have to ask: can a company facing a near-term New York Stock Exchange delisting and significant liquidity challenges still execute a transformative acquisition, or is Kuke Music Holding Limited (KUKE) a classic value trap? The company, a leading classical music service platform in China, reported a 2024 full-year revenue of just US$9.6 million and an EBITDA loss of US$5.86 million, yet recently announced a strategic acquisition of a controlling interest in Naxos Music Group. This is a high-stakes bet, especially since the NYSE filed a Form 25 to remove its American Depositary Shares in November 2025 after the stock price plummeted roughly 85% since the start of the year. We defintely need to unpack the history, dual-class ownership structure, and core business model-licensing, subscription to over 800 institutions, and smart education-to see if the music is about to stop or if this is an overlooked turnaround story.

Kuke Music Holding Limited (KUKE) History

You're looking for the foundational story of Kuke Music Holding Limited, and it's a narrative of pioneering classical music licensing in China that has recently hit a major inflection point. The company's journey began with a focus on institutional content licensing, evolved into smart education, and is now navigating significant capital market turbulence, including a recent delisting notice, even as it executes a massive acquisition.

Given Company's Founding Timeline

Year established

The company's operating predecessor, Beijing Cathay Orient Information Technology Company Limited, was acquired by its founder in 2002, establishing the core classical music licensing business.

Original location

The operational base has always been in Beijing, China, where the company built its content library and institutional subscriber network.

Founding team members

The company was founded and has been led by He Yu, who has served as the Chief Executive Officer since its inception.

Initial capital/funding

While the initial capital for the predecessor is not public, the first major public funding event was the Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) in January 2021, which raised $50 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory is defined by a few bold strategic pivots, but the most recent events in 2025 are truly transformative, for better and worse. You can't ignore the duality here.

• Content Dominance through Acquisition: The September 2025 acquisition of a controlling stake in Naxos Music Group for around $106.35 million fundamentally changed Kuke Music Holding Limited's position. This move transitioned them from a strategic partner to a controlling owner of one of the world's largest independent classical music companies, securing their content moat.
• The Smart Education Pivot: Launching the smart music education business in October 2015 was a crucial strategic shift. It allowed the company to monetize its content library in a new, high-growth sector, moving from a pure business-to-business (B2B) model to a business-to-consumer (B2C) model via its proprietary KUKEY smart learning solutions.
• Capital Market Volatility: The October 2025 NYSE delisting notice, due to non-compliance with the minimum share price requirement, is a major shock. This recent event, coming right after they had just regained compliance in June 2025, highlights the severe liquidity challenges and the stock's dramatic decline, despite the strategic Naxos acquisition. The issuance of a $2,160,000 Convertible Note Due in October 2025 also points to near-term capital needs.

Here's the quick math: committing over $106 million to an acquisition while facing delisting shows a management team prioritizing long-term content control over near-term share price stability. That's a high-stakes bet. For a deeper dive into the numbers underpinning these risks, you defintely should read Breaking Down Kuke Music Holding Limited (KUKE) Financial Health: Key Insights for Investors.

Kuke Music Holding Limited (KUKE) Ownership Structure

Kuke Music Holding Limited operates under a dual-class share structure, which means that while public shareholders own the vast majority of the company's equity, the founders and insiders retain firm control of the voting power. This structure makes the company a 'controlled company,' where the strategic direction is largely insulated from common shareholder votes.

For a deeper dive into the company's financial stability, you should check out Breaking Down Kuke Music Holding Limited (KUKE) Financial Health: Key Insights for Investors.

Kuke Music Holding Limited's Current Status

As of November 2025, Kuke Music Holding Limited is a publicly traded company, but its American Depositary Shares (ADSs) were delisted from the New York Stock Exchange (NYSE) in October 2025 due to non-compliance with the minimum share price requirement. The delisting process was formally initiated via a Form 25 filing.

The company's ADSs now trade on the over-the-counter (OTC) market under the ticker symbol KUKEY.

Kuke is incorporated in the Cayman Islands and operates its core business in mainland China through a Variable Interest Entity (VIE) structure, a common setup for U.S.-listed Chinese companies. This structure, while legal, adds a layer of regulatory and operational complexity for U.S. investors.

A major event in 2025 was the September acquisition of a controlling interest in Naxos Music Group, valued at approximately $106.35 million. This deal was settled by issuing approximately 661 million Class A ordinary shares, which drastically diluted the existing shareholder base.

Kuke Music Holding Limited's Ownership Breakdown

The company's ownership is complex due to its dual-class share structure, where Class B ordinary shares-held exclusively by the founders-carry ten votes per share, while Class A ordinary shares carry only one vote. This ensures the founders maintain super-majority voting control.

Based on the most recent available data reflecting the massive dilution from the 2025 share issuances, the total shares outstanding grew by over 1800% in the past year.

Here's the quick math on the share structure, focusing on the equity breakdown as of late 2025:

What this estimate hides is the true power: the founders' Class B shares gave them approximately 79.6% of the aggregate voting power at the time of the IPO, and this control is maintained despite the low equity percentage listed above.

Kuke Music Holding Limited's Leadership

The executive leadership saw a significant change in September 2025, reflecting a shift in management focus as the company navigates its delisting and the new Naxos acquisition.

• Mr. Peixian Tan: Chairman of the Board and Chief Executive Officer (CEO). Appointed on September 7, 2025, succeeding the founder, Mr. He Yu.
• Mr. Hoi Tung Chan: Chief Financial Officer (CFO). Mr. Chan has over 20 years of experience in finance and investment, holding AICPA, CMA, and CFA designations.
• Mr. He Yu: Director. The company founder and former Chairman/CEO, he remains a director and retains control through the dual-class share structure.
• Mr. Hui Gao: Executive Director. Appointed on September 7, 2025, bringing experience in digital publishing and copyright operations.
• Mr. Zhiyong Wang: Independent Director. Appointed on September 1, 2025, he is a senior partner at BDO China Shu Lun Pan CPAs and a qualified Senior Accountant.

The transition to Mr. Tan as CEO and Chairman is a key indicator of where the board sees the company's near-term focus, likely prioritizing the integration of the Naxos acquisition and managing the OTC market transition.

Kuke Music Holding Limited (KUKE) Mission and Values

Kuke Music Holding Limited's core purpose centers on cultural expansion and technological accessibility, aiming to amplify the reach of classical music in China through a content-first, education-driven strategy. Its mission is clear: to be the primary conduit for classical music content and learning in a massive, underserved market.

Given Company's Core Purpose

The company's cultural DNA is built on the belief that classical music should be broadly accessible, not just an elite pursuit. This conviction drove the development of its proprietary smart music learning solutions, KUKEY, to democratize music education across China. This focus on long-term market penetration shows a commitment beyond immediate quarterly returns.

Here's the quick math on the context: while the company reported 2024 revenue of RMB 68.92 million (approximately USD $9.59 million) and an EBITDA of -$5.86 million, its strategic move to acquire a controlling interest in Naxos Music Group for US$105 million in September 2025 signals an aggressive, content-focused long-term aspiration.

Official mission statement

The formal mission statement is direct and geographically focused, establishing the company's primary goal in its home market.

• Our mission is to amplify the impact of classical music in China.

This mission drives every business line, from licensing the content library-which includes over 3 million audio and video tracks-to organizing live events like the Beijing Music Festival (BMF).

Vision statement

Kuke Music Holding Limited's vision is rooted in its smart education business, which aims to solve the inefficiency of traditional music learning through technology.

• Democratize music learning via technological innovation.
• Bring professional music techniques and fascinating content to more students.
• Continuously improve the efficiency and penetration of music learning in China.

The strategy here is to use technology-like the Kuke smart pianos and teaching systems-to build a scalable education platform, which is defintely a high-growth, high-risk play in the Chinese market. You can read more about this strategic alignment at Mission Statement, Vision, & Core Values of Kuke Music Holding Limited (KUKE).

Given Company slogan/tagline

While Kuke Music Holding Limited does not use a globally advertised, single-phrase slogan, its operational focus on education and content provides a clear, de facto tagline.

• Classical Music, Digitally Accessible.

This captures the essence of their business model: leveraging their market leadership in copyrighted classical music content to provide scalable licensing and subscription services to over 800 universities and institutions.

Kuke Music Holding Limited (KUKE) How It Works

Kuke Music Holding Limited operates as the leading classical music service platform in China, creating value by controlling the content supply chain from licensing and distribution to proprietary smart education and live event organization. It essentially acts as the primary gateway for international copyrighted classical music entering the massive Chinese market, plus it builds its own digital learning ecosystem around that content.

Kuke Music Holding Limited's Product/Service Portfolio

Kuke Music Holding Limited's Operational Framework

The company's operations center on monetizing its vast content library through three synergistic channels: institutional subscriptions, direct-to-consumer smart learning, and live events. Here's the quick math on recent performance: for the 2024 fiscal year-the most recent full-year data available in 2025-total revenue was RMB 68.921 million (about US$9.59 million), which was a significant drop from the prior year, mostly due to a sharp decrease in smart music learning revenue. Still, the core content licensing business remains its foundation.

• Content Acquisition: Secures exclusive and non-exclusive rights to international classical music through its long-standing strategic partnership with Naxos, the world's largest independent classical music content provider.
• Digital Distribution: Licenses content to major online music platforms for commercial use and provides subscription access to over 800 educational and public institutions across China.
• Education Technology: Develops and distributes proprietary hardware (smart pianos) and software (KUKEY courses) to capture the growing demand for digital music education.
• Event Management: Manages large-scale, high-profile events like the Beijing Music Festival, which builds brand equity and provides an additional revenue stream, totaling RMB 8.1 million (approx. US$1.1 million) in 2024.

The operational reality is that scaling the smart learning business has been a challenge, but the new in-vehicle and AI ventures defintely show a push for diversification.

Kuke Music Holding Limited's Strategic Advantages

Kuke's market success hinges on its deep entrenchment in the niche, yet growing, Chinese classical music market, which is difficult for competitors to replicate quickly. You can read more about the financial implications in Breaking Down Kuke Music Holding Limited (KUKE) Financial Health: Key Insights for Investors.

• Content Dominance: Possesses unparalleled access to an extensive classical music content library of roughly 3 million tracks, thanks to its collaboration with Naxos and access to over 900 top-tier labels. The September 2025 acquisition of a controlling interest in Naxos Music Group, valued at approximately $106.35 million, aims to solidify this advantage, though it caused immediate investor concern over dilution.
• Institutional Moat: Holds a powerful position in the institutional market, providing subscription services to a network of over 800 universities and libraries, creating high switching costs for these clients.
• Brand Equity and Events: Controls the Beijing Music Festival, a globally renowned event, which provides significant brand visibility and a platform for integrating its content and services.
• First-Mover Advantage in China: Was one of the first classical music licensing and subscription service providers in China, establishing long-standing relationships with key stakeholders and a deep understanding of the local regulatory and market landscape.

To be fair, the recent NYSE delisting proceedings announced in October 2025, following a failure to maintain the minimum share price, maps a clear near-term risk to its capital market standing, but the underlying content and institutional business remains intact. The focus now is on executing the new in-vehicle and AI strategies to offset the weakness in smart learning.

Kuke Music Holding Limited (KUKE) How It Makes Money

Kuke Music Holding Limited primarily generates revenue by monetizing its vast classical music content library, acting as a critical content provider and a technology-driven music education platform in China. The core of its financial engine is a high-margin business-to-institution (B2I) licensing and subscription model, supplemented by smart education hardware/software sales and live event organization.

Kuke Music Holding Limited's Revenue Breakdown

As of the fiscal year ended December 31, 2024-the latest full-year data available in November 2025-Kuke Music Holding Limited's revenue streams show a clear reliance on its content licensing business. The total revenue for FY 2024 was RMB 68.9 million (approximately $9.6 million).

The Licensing and Subscription segment, while still dominant at nearly 87% of total revenue, saw its contribution decrease from RMB 69.4 million in 2023 to RMB 59.9 million ($8.3 million) in 2024. This is a critical trend to watch, as the segment's decline was the primary driver of the overall 7.1% total revenue drop for the year.

Business Economics

The economics of Kuke Music Holding Limited are built on a content-centric ecosystem that aims for high operating leverage, but the recent shift in revenue mix shows pressure. The company's main edge is its exclusive access to a massive library of international copyrighted classical music content, primarily through its strategic partnership with Naxos, the world's largest independent classical music content provider.

• Licensing and Subscription: This is a sticky, high-margin business, with revenue coming almost entirely from institutional subscribers-like over 800 universities and libraries across China. They typically sign one-year agreements, providing a predictable, recurring revenue base. The pricing for institutional subscriptions is substantial, ranging from approximately $1,100 to $6,284 per year, though individual subscriptions are also offered.
• Smart Music Learning: This segment, which includes the proprietary Kuke smart pianos, teaching systems, and Kukey courses, has been significantly de-emphasized. Its revenue plummeted from RMB 34.2 million in 2023 to just RMB 0.9 million ($0.1 million) in 2024, reflecting a strategic reduction in business activities and hardware investments. This is a major change in business focus.
• Live Classical Music Events: Revenue from organizing events like the Beijing Music Festival is lumpy but growing, increasing from RMB 3.3 million in 2023 to RMB 8.1 million ($1.1 million) in 2024. This segment acts more as a brand-building and publicity tool, creating synergy with the core content business.

The key economic challenge is the rising cost of sales, which increased from 52.7% of revenue in 2023 to 61.1% in 2024, squeezing gross margins. You can see how the stability of the institutional subscription model is vital, especially when considering the company's Mission Statement, Vision, & Core Values of Kuke Music Holding Limited (KUKE).

Kuke Music Holding Limited's Financial Performance

Looking at the latest available fiscal year data, the financial health of Kuke Music Holding Limited shows a company in a significant transition, focusing on cost management but still facing profitability challenges. The market capitalization, as of mid-November 2025, is small at approximately $14.30 million, reflecting a volatile and micro-cap stock.

• Net Loss: The company reported a net loss of RMB 64.94 million for the full year 2024. This indicates that while the core licensing business is high-margin, the overall operating structure is still burning cash.
• Operating Expenses: Total operating expenses were aggressively reduced by 20.3% from 2023 to RMB 87.3 million ($12.1 million) in 2024, due to strengthened management and team restructuring. This is a necessary move to stabilize the bottom line.
• Efficiency Metric: Despite the cost cuts, total operating expenses as a percentage of revenue actually increased from 102.3% in 2023 to 126.5% in 2024. Here's the quick math: when revenue drops faster than you can cut costs, your efficiency ratios look defintely worse.
• Employee Base: A lean operation is evident in the small employee count of just 59 people as of November 2025, suggesting a highly centralized and technology-dependent business model.

The trend is clear: the company is shrinking its exposure to the capital-intensive Smart Music Learning business and trying to right-size its cost structure to match the revenue base of its core licensing and subscription service. What this estimate hides is the potential for a significant revenue rebound in the Live Events segment if the Beijing Music Festival returns to pre-pandemic scale, but that remains a volatile revenue source.

Kuke Music Holding Limited (KUKE) Market Position & Future Outlook

Kuke Music Holding Limited is strategically positioned as the leading provider of classical music licensing in China, a niche market that is poised for growth within the massive Chinese streaming ecosystem. The company's future trajectory hinges on successfully integrating its September 2025 acquisition of a controlling interest in Naxos Music Group, a deal valued at US$105 million, which dramatically enhances its global content dominance. This move is a high-risk, high-reward bet, aiming to shift the revenue mix away from the volatile smart education segment.

The company's core strength remains its content library, which is the largest of its kind in China. For the 2024 fiscal year, Kuke Music reported revenue of RMB 68.921 million (approximately $9.44 million TTM), reflecting a significant drop primarily due to the collapse of its smart music learning business. Still, the Naxos acquisition and new partnerships are clear signals of a pivot toward higher-margin licensing and in-vehicle entertainment for 2025 and beyond.

Competitive Landscape

Kuke Music operates in a dual competitive environment: dominating the classical music licensing niche while competing with giants in the broader online music subscription space. The acquisition of Naxos is a defensive and offensive move, solidifying its position against larger platforms that are now also expanding their classical offerings.

Here's the quick math: Kuke's 46.6% share in the classical music licensing segment (as of 2019) confirms its niche leadership. What this estimate hides is that while Tencent Music and NetEase Cloud Music have a massive overall user base-Tencent Music with over 550 million monthly active users-their classical music content is largely licensed, often from Kuke Music.

Opportunities & Challenges

The company's strategic moves in 2025 present clear opportunities for revenue diversification, but they are shadowed by significant financial and regulatory risks.

Industry Position

Kuke Music is a critical infrastructure player in the Chinese classical music industry, not just a streaming service. Its position is defined by its role as a B2B content provider and its expansion into new distribution channels.

• Content Bottleneck: Kuke is the primary source of international copyrighted classical music content for over 800 institutional subscribers, including universities and libraries, giving it a defensible moat.
• Revenue Mix Shift: The company is actively pivoting away from the declining smart education segment toward higher-margin licensing and live events, the latter of which saw revenue rise from RMB 3.3 million in 2023 to RMB 8.1 million in 2024.
• Global Footprint: The Naxos acquisition transforms Kuke from a China-focused leader to a major global player in classical music distribution and labels, a defintely significant shift in its competitive standing.

You can see the detailed strategy behind this content focus in the Mission Statement, Vision, & Core Values of Kuke Music Holding Limited (KUKE).