New Stock News | Xingyue Holdings' Hong Kong IPO prospectus becomes invalid, being one of the leading operators of Chinese online literature IP.

Star Reading Holdings Limited (hereinafter referred to as "Star Reading Holdings") submitted its Hong Kong stock prospectus on January 29, 2024, which has been valid for 6 months and expired on July 29. Huatai International and Dongxing (Hong Kong) acted as its joint sponsors at the time of submission. The prospectus shows that Star Reading Holdings is one of the leading operators of Chinese online literature IP, with strong capabilities in comprehensive IP development, operation, and commercialization. According to a Frost & Sullivan report in 2022, based on revenue from online literature IP licensing and IP transfers, the company ranked fourth in the Chinese online literature IP licensing and IP transfer market with a market share of 2.1%; and based on revenue, the company ranked first among Chinese online literature IP operators specializing in Chinese fantasy literature IP licensing and transfer markets, with a market share of 11.3%. In the IP development stage, the company actively builds its IP reserve through authorization, independent development, and acquisitions. The company's IP reserve includes 99 high-quality IPs, with a strategic focus on Chinese fantasy literature IP. The company's IP reserve is mainly centered around the adaptation rights of the "Covering Heaven" series, which the company further develops into derivative literary works IPs, and partners for adaptation or authorized adaptation to transform the original or derivative literary works into entertainment products. "Covering Heaven" is an epic fantasy novel written by a highly acclaimed and influential author, Mr. Yang (also known as Chen Dong). "Covering Heaven" was published in 2010 and has been popular for over 10 years, attracting over 10 million readers on a leading Chinese online literature platform. Building on "Covering Heaven," the company expands the original storyline and develops existing characters with significant commercial potential strategically creating derivative literary works IPs. With insights into the constantly changing preferences of audiences, the company successfully creates a series of extended storylines based on existing characters in "Covering Heaven," further expanding the boundaries of the fantasy world to meet the demands of readers and fans of original literary works. The company has a total of 75 derivative literary works IPs related to "Covering Heaven," including but not limited to "Emperor of the Void," "Legend of the Green Emperor," "Covering Heaven: Flying Clouds," "Covering Heaven: Source Tian Shi Zhang Lin," and "Covering Heaven: Beginning Great Emperor." In the IP operation and commercialization stage, the company mainly licenses IPs with significant commercial potential and market value to IP adaptation partners in the entertainment industry for adaptation and/or joint development into various entertainment products such as animation, games, and movies. For example, the company jointly developed the "Covering Heaven" animation with its IP adaptation partners, which was released in May 2023. According to data from a Chinese data analysis platform, the animation consistently ranked first nationwide every Wednesday from July 2023 until the last feasible date, accumulating over 3 million fans who added the animation to their playlists on one of China's leading online video platforms. The total views of "Covering Heaven" animation-related topics on mainstream short video applications in China reached approximately 760 million times and remained on the popular list. The web film "Covering Heaven: Forbidden Zone" adapted from the Emperor of the Void character received cumulative box office revenues of over 6.6 million yuan and over 1.6 million views on two leading online video platforms in China. The manga adaptation of "Legend of the Green Emperor" reached a click count of 190 million on a high-quality online platform for original manga readings in China. In terms of finances, in the years 2021, 2022, and the nine months ending on September 30, 2023, the company's revenues were approximately 129 million yuan, 160 million yuan, and 153 million yuan respectively. During the same period, the company's net profits were 50.78 million yuan, 79.69 million yuan, and 70.97 million yuan respectively.