Founded in 2009, Lehua Entertainment has grown into a leading professional brokerage company in China in 13 years, with 66 contracted artists and 71 trainees, including Wang Yibo, Li Wenhan, Wu Xuanyi, Cheng Xiao, NEXT, A-SOUL and so on. 55 of them were trained by the Lehua trainee program. Revenue from the artist management business currently accounts for nearly 90% of the company's revenue.

Du Hua, chairman of Lehua Culture, once said in an interview with the media, "whether it is the business form or the future business growth model, I think there is room for development in all aspects, and we are full of confidence in our future. Therefore, we want to IPO alone. "

Regarding the listing in Hong Kong, Lehua Entertainment said, "in view of our long-term business development plans and financing needs for further expansion, our directors believe that the Stock Exchange, as an internationally recognized and reputable stock exchange, is a more suitable location that can provide us with a good platform for brand recognition and access to the international stock market and business expansion. "

Since its inception, Lehua Entertainment has received three rounds of financing. In 2012, Le Hua Entertainment received tens of millions of RMB in round A financing from Le Bo Capital and Financial Seal Venture Capital, and 255 million RMB B round financing from Chinese Culture Group in 2014, and in July 2021, it received strategic investment from BABA Film and Byte Jump related company Beijing Quantum Jump Technology Co., Ltd.

According to the prospectus, before listing, du Hua, founder and chairman of Lehua Entertainment, held 50.18%, Sun Yiding (du Hua's spouse) held 3.31%, and the two controlled about 53.49%. BABA Film holds 14.25%; Chinese Culture holds 14.25%; byte Jump holds 4.74%.
According to Frost Sullivan, the company ranks first among Chinese artist management companies in terms of artist management income in 2021, with a market share of 1.9%. Since its establishment in 2009, Lehua Entertainment has become a cultural and entertainment platform including artist management, music IP production and operation and pan-entertainment business.

Consumers' demand for high-quality entertainment is expanding, people pay more and more attention to famous artists, and the entertainment industry has been developing around famous artists for many years. Now famous artists are no longer limited to a unique field that they are good at. They have starred in a wide range of entertainment, including music, variety shows, dramas and movies.

In addition, famous artists help corporate customers improve their market awareness of their products or services by endorsing their products or services and commercial promotional activities. As a professional artist management company, Lehua Entertainment arranges contracted artists to provide quality services to customers and assist contracted artists to capture business opportunities and develop their careers.

Lehua Entertainment's business covers the entire value chain of artist management industry from artist training, artist operation to artist promotion. The company's rich industry expertise lays the foundation for the company to seize the opportunity and help the company to lead the Chinese artist management market.

In 2019, 2020, 2021 and the first four months of 2022, the revenue of Lehua Entertainment Group was about 631 million RMB, 922 million RMB, 1.29 billion RMB and 353 million RMB respectively; over the same period, the company's profits were about 119 million RMB, 292 million RMB, 335 million RMB and 80.52 million RMB respectively.

Lehua Entertainment has actively expanded the company's service scope, established a business model with diversified profit strategy, and continuously enhanced its brand value. Diversified, omni-directional business layout, is expected to help the company's performance, please climb another high-rise.

In the long run, with the rapid development of the Internet and digital technology and the growing demand for high-quality entertainment content, the global entertainment market will continue to grow steadily. Lehua Entertainment, as one of the leading enterprises in the industry, is expected to seize the vast blue ocean of the global entertainment market and expand its business scale and market share with the help of its unique business model and strong core competitiveness. it is worth looking forward to.