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KUKE Music Reports Receipt of NYSE Non-Compliance Notices Regarding Continued Listing Standards

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Kuke Music Holding has received two non-compliance notices from the NYSE. The first notice, received on September 24, 2024, indicates the company's market capitalization ($47 million) and shareholders' equity ($3.3 million) are below the required $50 million threshold. The second notice, received on October 8, 2024, concerns non-compliance with the $1.00 minimum average closing price requirement, with the company's ADSs trading at approximately $0.98.

Kuke must submit a business plan within 45 days to address the market capitalization and equity issues, with a 9-month period to achieve compliance. The company has 6 months to resolve the share price issue. While the notices don't immediately affect listing status or operations, failure to meet these requirements could result in delisting.

Kuke Music Holding ha ricevuto due avvisi di non conformità dalla NYSE. Il primo avviso, ricevuto il 24 settembre 2024, indica che la capitalizzazione di mercato dell'azienda (47 milioni di dollari) e il patrimonio netto degli azionisti (3,3 milioni di dollari) sono al di sotto della soglia richiesta di 50 milioni di dollari. Il secondo avviso, ricevuto l'8 ottobre 2024, riguarda la non conformità con il requisito di un prezzo medio di chiusura minimo di 1,00 dollaro, con gli ADS dell'azienda che vengono scambiati a circa 0,98 dollari.

Kuke deve presentare un piano aziendale entro 45 giorni per affrontare i problemi di capitalizzazione di mercato e patrimonio netto, con un periodo di 9 mesi per raggiungere la conformità. L'azienda ha 6 mesi per risolvere la questione del prezzo delle azioni. Sebbene gli avvisi non influiscano immediatamente sullo stato di quotazione o sulle operazioni, il mancato rispetto di questi requisiti potrebbe comportare la revoca della quotazione.

Kuke Music Holding ha recibido dos avisos de incumplimiento de la NYSE. El primer aviso, recibido el 24 de septiembre de 2024, indica que la capitalización de mercado de la empresa (47 millones de dólares) y el patrimonio neto de los accionistas (3,3 millones de dólares) están por debajo del umbral requerido de 50 millones de dólares. El segundo aviso, recibido el 8 de octubre de 2024, se refiere al incumplimiento del requisito de un precio medio de cierre mínimo de 1,00 dólar, ya que las ADS de la empresa están siendo comercializadas a aproximadamente 0,98 dólares.

Kuke debe presentar un plan de negocios dentro de los 45 días para abordar los problemas de capitalización de mercado y patrimonio, con un período de 9 meses para lograr la conformidad. La empresa tiene 6 meses para resolver el problema del precio de las acciones. Aunque los avisos no afectan inmediatamente el estado de cotización u operaciones, no cumplir con estos requisitos podría resultar en la exclusión de la lista.

Kuke Music Holding는 NYSE로부터 두 개의 비준수 통지를 받았습니다. 첫 번째 통지는 2024년 9월 24일에 수신되었으며, 회사의 시가총액(4,700만 달러)과 주주 지분(330만 달러)이 요구되는 5,000만 달러 기준 이하임을 알리고 있습니다. 두 번째 통지는 2024년 10월 8일에 수신되었으며, 최소 평균 종가 요구 사항인 1.00달러 준수 실패에 관한 것으로, 회사의 ADS가 약 0.98달러에 거래되고 있습니다.

Kuke는 시장 자본화 및 자본 문제를 해결하기 위해 45일 이내에 사업 계획서를 제출해야 하며, 준수를 달성하기 위해 9개월의 기간이 주어집니다. 이 회사는 주가 문제를 해결하기 위해 6개월이 주어집니다. 통지가 즉각적으로 상장 상태나 운영에 영향을 미치지는 않지만, 이러한 요구 사항을 충족하지 못할 경우 상장 폐지로 이어질 수 있습니다.

Kuke Music Holding a reçu deux avis de non-conformité de la NYSE. Le premier avis, reçu le 24 septembre 2024, indique que la capitalisation boursière de l'entreprise (47 millions de dollars) et les capitaux propres des actionnaires (3,3 millions de dollars) sont en dessous du seuil requis de 50 millions de dollars. Le deuxième avis, reçu le 8 octobre 2024, concerne le non-respect de l'exigence d'un prix moyen de clôture minimum de 1,00 dollar, les ADS de l'entreprise se négociant à environ 0,98 dollar.

Kuke doit soumettre un plan d'affaires dans les 45 jours pour résoudre les problèmes de capitalisation boursière et de capitaux propres, avec une période de 9 mois pour atteindre la conformité. L'entreprise a 6 mois pour résoudre le problème du prix des actions. Bien que les avis n'affectent pas immédiatement le statut de cotation ou les opérations, le non-respect de ces exigences pourrait entraîner la radiation de la cotation.

Kuke Music Holding hat zwei Bekanntmachungen über Nichtkonformität von der NYSE erhalten. Die erste Bekanntmachung, die am 24. September 2024 eintraf, weist darauf hin, dass die Marktkapitalisierung des Unternehmens (47 Millionen Dollar) sowie das Eigenkapital der Aktionäre (3,3 Millionen Dollar) unter dem erforderlichen Schwellenwert von 50 Millionen Dollar liegen. Die zweite Bekanntmachung, erhalten am 8. Oktober 2024, betrifft die Nichteinhaltung der Anforderung eines minimalen durchschnittlichen Schlusskurses von 1,00 Dollar, wobei die ADS des Unternehmens bei etwa 0,98 Dollar gehandelt werden.

Kuke muss innerhalb von 45 Tagen einen Geschäftsplan vorlegen, um die Probleme der Marktkapitalisierung und des Eigenkapitals anzugehen, mit einem Zeitraum von 9 Monaten, um die Konformität zu erreichen. Das Unternehmen hat 6 Monate Zeit, um das Problem des Aktienkurses zu lösen. Auch wenn die Bekanntmachungen den Status der Listung oder die Operationen nicht unmittelbar beeinflussen, könnte ein Versäumnis, diese Anforderungen zu erfüllen, zu einem Delisting führen.

Positive
  • None.
Negative
  • Market capitalization fell below NYSE requirement of $50M to approximately $47M
  • Shareholders' equity significantly below requirement at $3.3M vs required $50M
  • ADS trading below $1.00 minimum requirement at $0.98
  • Risk of NYSE delisting if compliance requirements are not met within cure periods

Insights

The NYSE non-compliance notices represent significant challenges for KUKE Music, highlighting severe financial distress. With a market cap of just $22.9 million and shareholders' equity of only $3.3 million, both well below the $50 million NYSE requirement, the company faces material delisting risks. The dual compliance issues - market cap/equity requirements and the sub-$1.00 share price - create a complex situation requiring substantial improvements in both financial position and market perception.

The 9-month and 6-month cure periods provide time for meaningful turnaround. Historical data shows companies receiving multiple NYSE non-compliance notices have a higher probability of eventual delisting. The extremely low shareholders' equity particularly suggests fundamental business challenges that typically can't be resolved quickly without significant capital injection or strategic alternatives.

Beijing, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Kuke Music Holding Limited (“Kuke” or the “Company”) (NYSE: KUKE), a leading classical music service platform in China, today announced that it has received notifications from the New York Stock Exchange (the “NYSE”) that the Company is not in compliance with the NYSE’s continued listing standards. On September 24, 2024, the NYSE notified the Company that it was below the continued listing standards as its total market capitalization was less than $50 million over a 30 trading-day period and its stockholders’ equity was less than $50 million (the “September Notice”). As set forth in the September Notice, as of September 23, 2024, the 30 trading-day average global market capitalization of the Company was approximately $47 million and the Company’s last reported shareholders’ equity as of December 31, 2023 was approximately $3.3 million. The Company received another notice from the NYSE on October 8, 2024 (the “October Notice”) of non-compliance with the $1.00 average closing price standard. As set forth in the October Notice, as of October 7, 2024, the 30 trading-day average closing price of the Company’s American Depositary Shares (“ADSs”) was approximately $0.98.

According to the September Notice, the Company must respond to the NYSE within 45 days of the September Notice with a business plan demonstrating actions to bring the Company into conformity with the average market capitalization and stockholders’ equity standards within 9 months of receiving the September Notice. If the Company’s plan is not submitted on a timely basis or is not accepted, the NYSE will initiate suspension and delisting proceedings. If the NYSE accepts the Company’s plan, the Company will be subject to quarterly monitoring for compliance with the plan.

According to the October Notice, the Company shall bring its share price and average share price back above $1.00 within 6 months following the receipt of the October Notice. In the event that at the expiration of the cure period, both a US$1.00 closing ADS price and a US$1.00 average closing ADS price over the preceding 30 trading-day period are not attained, the NYSE will commence suspension and delisting procedures.

The Company intends to comply the requirements set forth in both notices and regain compliance with the relevant continued listing standards within the applicable cure periods. The foregoing notices have no immediate impact on the listing or trading of the Company’s ADSs, which will continue to be listed and traded on the NYSE, subject to compliance with the requirements set forth in the notices, other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The notices do not affect the Company’s business operations or its reporting obligations with the Securities and Exchange Commission.

About Kuke Music Holding Limited (NYSE: KUKE)

Kuke is a leading classical music service platform in China encompassing the entire value chain from content provision to music learning services, with approximately 3 million audio and video music tracks. By collaborating with its strategic global business partner Naxos, the largest independent classical music content provider in the world, the foundation of Kuke’s extensive classical music content library is its unparalleled access to more than 900 top-tier labels and record companies. Leveraging its market leadership in international copyrighted classical music content, Kuke provides highly scalable classical music licensing services to various online music platforms, and classical music subscription services to over 800 universities, libraries and other institutions across China. In addition, it has hosted Beijing Music Festival (“BMF”), the most renowned music festival in China, for 24 consecutive years. Through KUKEY, the Company’s proprietary smart music learning solutions, Kuke aims to democratize music learning via technological innovation, bring fascinating music content and professional music techniques to more students, and continuously improve the efficiency and penetration of music learning in China. For more information about Kuke, please visit https://ir.kuke.com/.

Forward-looking Statements

This announcement contains forward looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Statements that are not historical facts, including but not limited to statements about Kuke’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including those in Kuke’s registration statement filed with the Securities and Exchange Commission. Further information regarding these and other risks is included in Kuke’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Kuke undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For further information, please contact:

Kuke Music Holding Limited
Investor Relations
Email: ir@kuke.com


FAQ

What NYSE compliance issues did KUKE face in October 2024?

KUKE received two NYSE non-compliance notices: one for market capitalization below $50M and shareholders' equity below $50M (September 24), and another for average closing price below $1.00 (October 8).

How long does KUKE have to resolve its NYSE listing issues?

KUKE has 45 days to submit a business plan and 9 months to resolve market capitalization and equity issues, plus 6 months to bring share price above $1.00.

What is KUKE's current market capitalization and shareholders' equity?

As of September 23, 2024, KUKE's 30-day average market capitalization was approximately $47 million, with shareholders' equity of $3.3 million as of December 31, 2023.

Kuke Music Holding Limited American Depositary Shares, each representing one Ordinary Share

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