“Binding” Robot: What’s Next for Jay Chou's Concept Stock?
Viewpoint July 30 early morning, "Jay Chou Concept Stock" giant legend soared over 30% at one point. As of the closing price that day, the stock was reported to be HK$13.26 per share, with a gain of 17.97%, and a total market value of HK$114.00 billion.
The fluctuation in gains is inseparable from the announcement by Jay Chou's wholly-owned subsidiary company, Star Creative Art & Entertainment Limited, on July 30.
According to the announcement released by Jay Chou on July 30, Star Creative Art & Entertainment has signed a cooperation agreement with UTree Technology.
The two parties will establish a global strategic partnership and first focus on developing and commercializing four-legged robot/machine dog robots, jointly creating consumer-grade robot products with strong IP attributes.
Jay Chou emphasized that this cooperation is an important attempt for the group to expand its IP business into new ecosystems, allowing both parties not only to achieve synergistic growth in their respective businesses but also to open up new commercial models and market opportunities in the high-tech field.
Breaking into the "Robot" Track
According to the agreement, this cooperation will see Jay Chou responsible for planning, designing, and interacting with AI, as well as leading global marketing strategies; while UTree Technology will be in charge of developing and producing technical products, including related application programs. Both parties will jointly promote and sell the products.
Jay Chou emphasized that the group can leverage UTree Technology's resources and experience in robot development and combine its own IP creation and operation resources and capabilities to create new forms of IP products in the AI era.
From a cooperative perspective, this cooperation not only covers the company's artist resources but also extends to a wide range of artists to expand IP cooperation opportunities.
Furthermore, this cooperation is not limited to product sales. The agreement mentions that Jay Chou will delve deeper into the commercialization value of intelligent robots in scenarios such as concerts and performance shows, thereby enhancing the group's competitive edge.
Cantonese Creative Park Review understands that Jay Chou's business scope mainly consists of "IP Creation & Operation Business" and "New Retail Business."
As a company with deep ties to stars, Jay Chou's founding team includes long-time commercial partners such as Ma Xinting, Yang Junrong (Jay Chou's manager), and Jay Chou's mother, Ye Huimei.
Since its establishment in 2017, Jay Chou has focused on IP creation and new retail business, with "Week Jay" as the core. Since the launch of Jay Chou's 2D image "Jay Scholar" in 2019, his concept stock market communication power has grown rapidly.
According to the disclosed 2024 annual report, in 2024, Jay Chou achieved revenue of HK$5.84 billion, with a year-on-year growth of approximately 35.8%, including IP creation and operation income, which grew by 65.1% year-on-year to HK$3.14 billion.
At that time, Jay Chou announced in the annual report that it would further deepen AI development and application within its business scope, including planning and investing in virtual concerts and creating other virtual media content.
On the other hand, the company also seeks to apply AI functions across various business departments. Through connections with the group's database, AI tools can be applied to various levels of the business scope, enhancing operational efficiency, such as market demand analysis, design, and marketing materials.
Expanding "Star IP"
Prior to announcing this cooperation, Jay Chou had announced on July 25 that it would conduct a pre-emptive offering of approximately HK$37.52 million shares, involving new shares equivalent to an increase in the enlarged capital of 4.18%. The offering price was HK$9.13 per share, representing a discount of approximately 19.91% compared to the closing price on July 25 of HK$11.40 per share.
After deducting issuance fees, the net proceeds from the subscription were approximately HK$3.24 billion. Based on this estimate, the net price per subscribed share was approximately HK$8.64 per share.
At that time, it was announced that the net proceeds would mainly be used for expanding retail channel networks, developing IP physical stores, IP investment fees, investing in entertainment and sports facilities, IP exhibitions, and general operating funds and other corporate purposes.
Specifically, Jay Chou plans to use approximately 38.2% (approximately HK$1.24 billion) of the net proceeds for expanding retail channel networks, including setting up automatic vending machines and intelligent mechanical equipment; simultaneously investing approximately 12.4% (approximately HK$0.402 billion) in developing IP physical stores, including "Jay Scholar" physical stores and other major IP cooperation shops; and planning to invest 18.5% (approximately HK$0.6 billion) in IP investment fees.
In addition, Jay Chou plans to invest approximately 6.8% (approximately HK$0.22 billion) in entertainment and sports facilities; approximately 14.1% (approximately HK$0.456 billion) in IP exhibitions; and approximately 10.0% (approximately HK$0.324 billion) in general operating funds and other corporate purposes.
Worth noting is that on the day of the announcement, Jay Chou explained to investors that it was jointly developing a consumer-grade robot with UTree Technology's AI tools, which not only applies to home scenarios but also can be applied to concert and performance shows.
Jay Chou emphasized that relevant research and development funds come from the recent share offering plan. Specifically, approximately 38.2% of the funds will be used to expand retail channel networks, including setting up automatic vending machines and intelligent mechanical equipment, with part of it already dedicated to the robot project.
In addition, following Jay Chou's entry into the Douyin platform in early July, Jay Chou also gained a significant amount of traffic dividends.
Specifically, on July 9, Jay Chou officially entered the Douyin platform as "Jay Scholar," with identity verification as a singer. After the news was published, Jay Chou's stock price rose by 94%.
The previous day, the stock had already risen by over 26%. Furthermore, on July 11, Douyin officially released an article titled "Jay Chou Officially Enters! From Cassette Tapes to Douyin, Your Youth Has Never Been Off-Line." The stock price rose by nearly 2x.
As of now, Jay Chou is pouring a large amount of funds into the robot track and collaborating with well-known robot technology companies, combining this with its previous business plans to explore the possibility of transforming its star IP from virtual images to physical products.
Disclaimer: This article's content and data are compiled based on publicly available information and do not constitute investment advice. Please verify before use.