Kuke Music Holding Limited (KUKE): Business Model Canvas [Dec-2025 Updated]

You're looking at Kuke Music Holding Limited (KUKE) and wondering how they're actually making money after dropping over US$106 million to grab the Naxos Music Group in September 2025, plus their deep dive into AI and in-car tech. Honestly, it's a complex pivot from just licensing classical music to building a future-proof content engine, aiming for a RMB 70 million slice from their new Web3/AI platform alone this year. If you want the precise breakdown of how this massive content library, the KUKEY education system, and these new digital ventures fit together across their nine building blocks, you need to see the full Business Model Canvas below. It maps out exactly where the cash is coming from and where the big bets are placed.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Key Partnerships

You're looking at Kuke Music Holding Limited's (KUKE) core alliances as of late 2025. These aren't just handshake deals; they represent massive capital deployment and strategic positioning, especially given the company's challenging 2024 financials-revenue dropped 35.55% to CNY 68.92 million from CNY 106.94 million in 2023.

Naxos Music Group: Global Content and Distribution Network

The acquisition of a controlling stake in Naxos Music Group, completed on September 17, 2025, is the centerpiece here. Kuke Music Holding Limited secured approximately 70.43% ownership in Naxos One Holding Limited, which controls Naxos Music Group, for a total transaction value of about $106.35 million. This was settled entirely through share issuance, avoiding an immediate cash outlay, though redemption provisions exist. The deal involved subscribing to 17,500 newly issued Class B ordinary shares for $105 million and purchasing 108 Class A ordinary shares from Desun Holding Limited for $1.35 million. To fund this, Kuke issued approximately 661 million Class A ordinary shares, valued at $0.1608 per share, which was a 30% discount to the preceding 60-day average ADS closing price.

This partnership immediately bolsters Kuke Music Holding Limited's content library, which already featured approximately 3 million audio and video music tracks, by integrating Naxos's world-class catalog and global distribution capabilities.

JoyMiracle Inc.: Web3 and AI Computing Power

Kuke Music Holding Limited finalized the acquisition of JoyMiracle Inc. on March 20, 2025, to integrate generative AI and Web3 capabilities. The total consideration was $27,647,220, satisfied by issuing 131,653,430 Class A Ordinary Shares, valued at $0.21 per share as of March 14, 2025. This acquisition came with performance targets for JoyMiracle for fiscal year 2025, specifically an audited revenue target of not less than RMB 70,000,000 and an audited net profit target of not less than RMB 0.

Content Licensing Foundation

The sheer scale of Kuke Music Holding Limited's content access is a key resource. The foundation of its extensive classical music library, which totals approximately 3 million audio and video music tracks, is its access to over 900 top-tier global record labels and record companies.

Strategic Ecosystem Partners

Kuke Music Holding Limited is actively integrating its services across different media sectors through specific agreements:

• China Media Group IoV Digital Media: Formal strategic cooperation agreement signed on March 18, 2025, targeting in-vehicle entertainment systems.
• Shanghai Music Publishing House: Partnership extension announced in March 2023, focusing on licensing, live events, and targeting China's multi-billion dollar music education market alongside Kuke's 3 million track library.

Here's a quick look at the financial scale of the major 2025 acquisitions:

Partnership/Acquisition	Transaction Date	Total Value (USD)	Settlement Method/Key Metric
Naxos Music Group (Controlling Stake)	September 17, 2025	$106.35 million	Issued approx. 661 million Class A shares
JoyMiracle Inc.	March 20, 2025	$27,647,220	Issued 131,653,430 Class A shares

The Naxos deal alone involved issuing 661,392,939 Class A ordinary shares in total consideration across the two transactions.

The partnership with Shanghai Music Publishing House aims to tap into the tens of millions of music students in China.

Finance: review the potential cash impact of the Naxos redemption provisions by end of Q4 2025.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Key Activities

You're looking at the core things Kuke Music Holding Limited (KUKE) actually does to make money and run its business as of late 2025. It's a content-first operation, so the library is central, but the newer tech plays are where they're trying to find growth, especially after that big Naxos acquisition.

Licensing and distributing classical music content globally.

This is the bread and butter, moving that massive content library to partners. Kuke Music Holding Limited licenses its commercial copyrights to major online music platforms, like Tencent Music Entertainment Group and NetEase Cloud Music. They also serve institutional subscribers. As of September 12, 2024, they provided classical music subscription services to over 800 universities, libraries, and other institutions across China. Back in 2019, before some of the recent financial headwinds, Kuke Music Holding Limited was the leading classical music licensing service provider in China, capturing a 46.6% market share based on licensing revenue. That licensing leadership is key to their whole setup.

Here's a quick look at the scale of their content-related business segments based on the nine months ended September 30, 2020, which shows the historical revenue split:

Business Segment	Revenue Share (9M ended 9/30/2020)
Music licensing and subscription	86.6%
Smart music education	12.3%
Live classical music events	1.1%

Developing and selling proprietary KUKEY smart music education solutions.

The smart education part centers on their proprietary KUKEY solutions. This includes offering Kuke smart pianos and Kuke smart teaching systems. The goal here is to democratize music learning using technology. To give you a concrete example of penetration, by September 30, 2020, they had placed over 6,800 smart pianos in kindergartens. The latest full-year financial data we have is for 2024, where the overall revenue for the Subscription, Licensing and Smart Education Business segment contributed to the total reported revenue of RMB 68.921 million for the fiscal year ended December 31, 2024.

Integrating AI and Web3 technology for new music applications.

While specific Web3 integration details aren't public yet, the AI-adjacent activity is clear through recent partnerships. On March 18, 2025, Beijing Kuke Music Co., Ltd. signed a strategic cooperation agreement with China Media Group IoV Digital Media (CMG IoV Digital Media). This partnership aims to create intelligent in-vehicle audio ecosystems. CMG IoV Digital Media, which has surpassed 100 million users and works with nearly 90% of China's leading automotive manufacturers, will use Kuke Music Holding Limited's library to intelligently match music content based on driving scenarios and user profiles. That's turning content into an emotional assistant, you see.

Organizing and hosting major classical music events like the Beijing Music Festival.

Kuke Music Holding Limited organizes the Beijing Music Festival (BMF), which they note is the most renowned music festival in China. As of early 2025, they had hosted BMF for 24 consecutive years. This business line, categorized as Music Events and Performances and Other Business, also involves selling musical instruments, such as conch smart speakers. For the nine months ended September 30, 2020, this segment accounted for 1.1% of total revenue.

Managing and expanding the vast classical music content library.

Managing the library is the foundation of everything else. As of May 15, 2025, Kuke Music Holding Limited maintained approximately 3 million audio and video music tracks. This library is heavily supported by their collaboration with Naxos, the world's largest independent classical music content provider, giving them access to over 900 top-tier labels and record companies. A major 2025 activity was the acquisition of a controlling interest in Naxos Music Group, completed on September 17, 2025, for a total transaction value of approximately US$106.35 million. That deal definitely expands their content control, though the company reported a net loss of RMB 64.94 million for 2024.

Here are the content scale metrics as of the latest reports:

• Total audio and video music tracks: approximately 3 million (as of May 15, 2025).
• Access to top-tier labels via Naxos partnership: over 900.
• 2019 content library size included over 2 million traditional classical music tracks.
• 2019 content library size included over 360,000 tracks of jazz, world, and folk music.

Finance: draft 13-week cash view by Friday.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Key Resources

You're looking at the core assets Kuke Music Holding Limited (KUKE) relies on to run its business as of late 2025. These aren't just line items; they are the actual engines driving their strategy, especially after some major moves this year.

The foundation remains the content itself. Kuke Music Holding Limited is a leading classical music service platform in China, and its library size is a key asset. As of the May 2025 filing, the company boasted approximately 3 million audio and video music tracks. This content forms the basis for their streaming and educational offerings.

A massive strategic resource addition came in September 2025 with the acquisition of a controlling interest in Naxos Music Group. This deal, valued at approximately US$106.35 million, secured Kuke Music Holding Limited about 70.43% of Naxos One, which controls Naxos Music Group. This wasn't a cash deal; the transaction was settled entirely through the issuance of Kuke's Class A ordinary shares. This integration brings Naxos's world-class content library and global distribution capabilities directly under the KUKE umbrella.

To map out the financial commitment to these major resources, here's a quick look at the recent large-scale transactions:

Asset/Transaction	Date Announced/Completed	Total Value (USD)	Key Metric/Share Value
Acquisition of Naxos Music Group (Controlling Interest)	September 2025	US$106.35 million	70.43% stake acquired in Naxos One
Naxos One Share Subscription (Class B)	September 2025	US$105 million	Subscribed at $6,000 per share
Naxos One Share Purchase from Desun (Class A)	September 2025	US$1.35 million	Acquired 108 shares
Acquisition of JoyMiracle Inc.	March 2025	US$27,647,220	Class A Shares issued at US$0.21 per share (as of March 14, 2025)

The technology stack is also a critical resource, bolstered by the March 2025 acquisition of JoyMiracle Inc. This deal brought in assets related to Web3 computing power asset issuance and trading, which Kuke Music Holding Limited intends to use for generative AI classical music creation and NFT capabilities. The total consideration for JoyMiracle was US$27,647,220, satisfied by issuing 131,653,430 Class A Ordinary Shares. JoyMiracle also came with performance expectations, including an audited revenue target for fiscal year 2025 of not less than RMB 70,000,000.

Kuke Music Holding Limited also relies on its proprietary technology, specifically the KUKEY smart piano and teaching system. This system is central to the company's goal of democratizing music learning through technological innovation. Beyond owned assets, the company's operational capability is supported by:

• Proprietary KUKEY smart piano and teaching system technology.
• Exclusive licensing rights from major global music labels.
• AI and Web3 computing platform assets from the JoyMiracle acquisition.

Finance: review the potential cash impact of the Naxos redemption provisions by next Tuesday.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Value Propositions

You're looking at the core offerings Kuke Music Holding Limited (KUKE) brings to its customers, which is really about owning the content and the delivery channels for classical music in China. Here's the quick math on what they claim to deliver.

Unparalleled access to the world's largest independent classical music catalog.

Kuke Music Holding Limited's primary value is its content library, which is positioned as the largest classical music catalog in China. This foundation supports all other business lines.

• Catalog size: Approximately 3 million audio and video tracks as of May 15, 2025.
• Content depth: Access to over 2 million traditional classical music tracks.
• Partnership leverage: Access is secured through its strategic global business partner Naxos, providing rights to over 900 top-tier labels and record companies.

Digital and efficient smart music education for students and institutions.

The smart music education segment aims to standardize and scale music learning using proprietary technology, reducing reliance on individual teacher quality. This is a key differentiator in their education vertical.

The company's proprietary KUKEY solutions include Kuke smart pianos and smart music teaching systems.

Metric	Data Point	Context/Date
Smart Pianos Placed in Kindergartens	Over 6,800 units	As of September 30, 2020
Total Smart Pianos Sold to Institutions	Over 10,000 units	As of September 30, 2020
Smart Music Teaching Systems Sold	1,900 units	As of September 30, 2020
Kindergarten Enrollments Served	Over 10,200 students	As of September 30, 2020

The 2025 performance target for the acquired JoyMiracle Inc. included an audited net profit of not less than RMB 0 for fiscal year 2025, indicating a focus on breaking even or achieving minimal profitability in that segment's targets.

High-quality, copyrighted classical music licensing for B2B platforms.

Kuke Music Holding Limited monetizes its content library by licensing it to major digital players and institutions. They were the leading classical music licensing service provider in China in 2019, holding a 46.6% market share by revenue.

• Institutional Reach: Provides subscription services to over 800 universities, libraries, and other institutions across China.
• B2B Clients: Licenses content to online music entertainment platforms like Tencent Music Entertainment Group and digital music service providers such as NetEase Cloud Music.
• 2019 Market Position: Ranked second-largest online classical music subscription service provider with a 13.8% market share.

Redefining in-vehicle music experience via automotive partnerships.

Kuke Music Holding Limited is actively pursuing integration into the automotive sector, a clear move to capture in-car entertainment revenue streams. This is a near-term growth vector they are pushing.

The company signed a strategic cooperation agreement with China Media Group IoV Digital Media on March 18, 2025, aimed at redefining the in-vehicle music benchmark. They are also forming content partnerships with car manufacturers specifically for in-car entertainment systems.

Future-proofing content via generative AI music creation capabilities.

Kuke Music Holding Limited is investing in artificial intelligence to maintain its content edge. The company is delving into the realm of AI, focusing on enhancing its music-related AI applications through intensified research and development.

For context on the financial scale of the business supporting these initiatives, the company reported total revenue of RMB 68.921 million (approximately US$9.578 million) for the fiscal year ended December 31, 2024, against a net loss of RMB 64.94 million for the same period. The market capitalization was approximately $67.47 million as of August 2025.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Customer Relationships

You're looking at how Kuke Music Holding Limited (KUKE) keeps its customers engaged, which is key given the recent financial headwinds, like the 35.55% revenue drop in 2024. Honestly, their relationships are built on a mix of high-touch institutional service and broad digital reach.

Dedicated B2B sales and account management for institutional subscriptions

For your institutional segment, Kuke Music Holding Limited relies on dedicated sales and account management. This is where the high-value, long-term contracts live. As of the filing in May 2025, covering the fiscal year ended December 31, 2024, they still served over 800 universities, libraries and other institutions across China with their classical music subscription services. To be fair, this number is slightly down from the over 880 institutional subscribers reported at the end of 2023, which included over 530 universities and music conservatories. The revenue from this licensing and subscription segment was RMB 59.9 million (US$8.3 million) in 2024. These relationships typically solidify around one-year subscription agreements, so account management is defintely critical for renewal.

Automated digital access and self-service for online subscribers

For the broader, potentially individual or smaller institutional user base, the relationship is largely automated. You access the content-which is substantial, boasting approximately 3 million audio and video music tracks-through their platform, app, or smart devices. This self-service model is the backbone for scalability, even though the smart music learning revenue saw a significant decline in 2024. The system handles access, updates, and delivery without constant human intervention, which is necessary when you have a content library this deep.

Direct engagement through live music events and festivals

Direct, high-profile engagement comes through live events. Kuke Music Holding Limited organizes the Beijing Music Festival ("BMF"), which they have hosted for 24 consecutive years as of 2025. This event strengthens brand loyalty and provides a tangible, premium experience. The financial contribution from this segment, while smaller than subscriptions, showed positive momentum; revenue from live classical music events grew to RMB 8.1 million (US$1.1 million) in 2024, up from RMB 3.3 million in 2023.

Long-term strategic relationships with key licensing partners

The foundation of Kuke Music Holding Limited's value proposition rests on its content access, secured through strategic partnerships. The relationship with Naxos, the largest independent classical music content provider globally, grants them unparalleled access to more than 900 top-tier labels and record companies. This relationship was cemented further in September 2025 when Kuke Music Holding Limited acquired a controlling interest in Naxos Music Group for approximately US$106.35 million, settled entirely through the issuance of Class A ordinary shares. This move signals a deep commitment to securing and controlling the core asset that drives their B2B licensing to platforms like Tencent Music Entertainment Group and NetEase Cloud Music.

Here's a quick look at the scale of these key relationship drivers as of the latest reporting periods:

Relationship Component	Metric/Value	Reporting Period/Date
Institutional Subscribers (Count)	Over 800	FYE December 31, 2024
Institutional Subscribers (Count - Detail)	Over 880 (including 530+ universities)	December 31, 2023
Licensing & Subscription Revenue	RMB 59.9 million (US$8.3 million)	Fiscal Year 2024
Live Events Revenue	RMB 8.1 million (US$1.1 million)	Fiscal Year 2024
BMF Festival History	24 consecutive years	As of 2025
Content Library Size	Approximately 3 million audio and video tracks	As of May 2025
Top-Tier Labels Accessible via Naxos	More than 900	As of 2025
Naxos Acquisition Value	Approximately US$106.35 million	September 17, 2025

If onboarding for new institutional clients takes longer than the typical one-year agreement cycle, churn risk rises.

Finance: draft 13-week cash view by Friday.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Channels

You're looking at how Kuke Music Holding Limited (KUKE) gets its content and services-from licensing to smart pianos-out to the market as of late 2025. The distribution strategy is clearly multi-pronged, hitting digital, institutional, and hardware touchpoints.

For the B2B licensing side, Kuke Music Holding Limited leverages its massive content library, which stands at approximately 3 million audio and video music tracks. This content feeds directly into online music platforms. By 2023, this digital distribution strategy was reaching over 300 million users through various agreements. That's a wide net for their licensing revenue.

On the institutional front, the direct sales force targets established educational bodies. Kuke Music Holding Limited provides its classical music subscription services to over 800 universities, libraries and other institutions across China. To give you a sense of the scale they were building from, as of December 31, 2020, they had sold over 13,000 Kuke smart pianos and 2,200 Kuke smart music teaching systems to these institutions through distributors.

The KUKEY smart piano and teaching systems use a hardware-enabled channel. The market for smart pianos in China is projected to reach RMB894.9 million by 2025. This hardware is a key delivery mechanism for their education services.

Here's a quick look at the scale of the institutional and hardware placement data we have:

Channel Component	Metric/Count	Reference Date/Period
Institutional Subscribers (Universities/Libraries)	Over 800	As of late 2025 context (from 2024 report reference)
Kindergartens with Placed Smart Pianos	Over 8,000	As of December 31, 2020
Total Smart Pianos Sold to Institutions (via distributors)	Over 13,000	As of December 31, 2020
Projected Smart Piano Market Size (Revenue)	RMB894.9 million	Expected by 2025

For live events, Kuke Music Holding Limited maintains brand presence by organizing the Beijing Music Festival ("BMF"), which it has hosted for 24 consecutive years. Back in 2019, this live events segment contributed 24.2% of the pro forma total revenue.

The in-car entertainment channel is a newer focus, solidified by a strategic cooperation agreement signed in March 2025 with China Media Group IoV Digital Media. This partnership is aimed at redefining in-vehicle music and targets an audience of over 100 million auto users.

You can see the different ways Kuke Music Holding Limited pushes its value proposition:

• Online music platforms (B2B licensing).
• Direct institutional sales force (serving over 800 entities).
• Smart piano hardware distribution (KUKEY systems).
• Live events channel (BMF for 24 years).
• Automotive in-car entertainment systems (targeting over 100 million users).

To be defintely clear on the scale of the content underpinning these channels, Kuke Music Holding Limited's library has approximately 3 million tracks. If onboarding takes too long with new auto partners, churn risk rises, so speed in that new channel is key.

Finance: draft Q3 cash flow forecast incorporating Naxos acquisition impact by next Tuesday.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Customer Segments

You're looking at Kuke Music Holding Limited (KUKE)'s customer base as of late 2025, which is clearly segmented across content licensing, institutional subscriptions, education technology, in-car media, and emerging Web3/AI platforms.

The foundation of Kuke Music Holding Limited (KUKE)'s customer appeal is its content library, which comprises approximately 3 million audio and video music tracks.

The primary customer groups Kuke Music Holding Limited (KUKE) serves include:

• Online music and video platforms requiring licensed classical content.
• Educational institutions (universities, public libraries) in China.
• Music students and educators using smart learning solutions.
• Global automotive manufacturers seeking premium in-car entertainment.
• Web3/AI developers and users of the new computing platform.

For the licensing segment, Kuke Music Holding Limited (KUKE) leverages its access to content from more than 900 top-tier labels and record companies, primarily through its partnership with Naxos.

The institutional segment is substantial, involving classical music subscription services provided to over 800 universities, libraries and other institutions across China.

The in-vehicle entertainment segment materialized through a strategic cooperation agreement signed on March 18, 2025, with China Media Group IoV Digital Media (CMG IoV Digital Media), whose platform has established in-depth collaborations with nearly 90% of the country's leading automotive manufacturers.

The Web3/AI segment was integrated via the acquisition of JoyMiracle Inc. on March 20, 2025, for a total consideration of US$27,647,220, satisfied by issuing 131,653,430 Class A Ordinary Shares.

Here's a quick look at the key quantifiable metrics associated with these segments, using the latest available full-year financial data and key operational figures:

Customer Segment Focus	Key Metric	Value/Amount	Date/Context
Overall Business Scale	Fiscal Year 2024 Revenue	$16.7 million	Fiscal Year Ended December 31, 2024
Online Music Platforms (Licensing)	Market Share (Licensing Revenue)	46.6%	2019 (Largest Provider)
Educational Institutions (Subscription)	Institutions Subscribed	Over 800	As of early 2025 filings
Content Source (Underpins all segments)	Top-tier Labels/Record Companies Access	More than 900	As of early 2025 filings
Automotive Entertainment (Partnership)	CMG IoV Digital Media Auto Collaborations	Nearly 90%	March 2025 Partnership Context
Web3/AI Platform (Acquisition)	Total Acquisition Consideration for JoyMiracle Inc.	US$27,647,220	March 2025 Transaction
Web3/AI Platform (Acquisition)	Class A Ordinary Shares Issued for Acquisition	131,653,430	March 2025 Transaction

The subscription service market for Kuke Music Holding Limited (KUKE) was reported as the second largest online classical music subscription service provider in China in 2019, holding 13.8% of that market by revenue.

The ADR price as of March 14, 2025, was $2.10 per ADS, with one ADS representing ten Class A Ordinary Shares, which was the basis for valuing the shares issued in the JoyMiracle Inc. acquisition.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Cost Structure

You're looking at the major drains on Kuke Music Holding Limited's cash, and right now, the biggest headline cost is definitely the recent acquisition activity. The cost structure is heavily influenced by content rights and strategic expansion, which is typical for a platform built on a vast media library.

The Acquisition costs are front and center following the September 17, 2025, closing of the Naxos Music Group deal. The total transaction value for acquiring the 70.43% controlling interest was approximately US$106.35 million. This single event represents a massive, non-recurring cost outlay, structured as a US$105 million share subscription and a US$1.35 million share purchase from Desun Holding. This immediately inflates the cost base for the foreseeable future, even though it was settled via share issuance rather than immediate cash outlay.

The underlying operational costs, which drive recurring expenses, are substantial. For the fiscal year ended December 31, 2024, Kuke Music Holding reported net losses of -64.94 million (CNY). This loss figure reflects the aggregate of all operating expenses, including the high fixed and variable costs associated with content, technology, and operations. If you're trying to map near-term risks, controlling these recurring expenditures is crucial, especially given the scale of the content library, which stood at approximately 3 million audio and video music tracks as of May 2025.

The High cost of content acquisition and licensing fees (royalties) is the primary recurring expense category. Kuke Music Holding's business relies on its extensive content library, which is now enhanced by Naxos's catalog. Managing royalties for these millions of tracks, especially across licensing, subscription, and education segments, demands significant, ongoing expenditure to maintain market leadership in China.

Next, you have the Significant investment in R&D for AI, Web3, and KUKEY smart education. While specific R&D spend for 2025 isn't public, the focus on proprietary smart music learning solutions like KUKEY indicates a heavy investment in technology development to improve the efficiency and penetration of music learning services. This is a strategic cost aimed at future revenue, but it hits the cost structure today.

The Operating expenses for organizing and promoting live music events form another distinct cost center. Kuke is the organizer of the Beijing Music Festival ("BMF"), which has been held for 24 consecutive years. Organizing a renowned international event like BMF, along with other classical music events, involves significant upfront costs for venue booking, artist fees, promotion, and technical setup. Historically, this segment represented only 1.1% of total revenue for the nine months ended September 30, 2020, suggesting high fixed costs relative to that period's revenue share.

Finally, General and administrative (G&A) costs, including legal and compliance, are always present, especially for a company listed on the NYSE. This covers everything from executive salaries and corporate overhead to the legal complexities arising from a major transaction like the Naxos acquisition, which involved complex share issuance terms.

Here's a quick look at the most concrete, large-scale cost and financial figures we have for late 2025:

Cost/Financial Metric	Amount/Value	Context/Date
Naxos Acquisition Total Value	US$106.35 million	Total consideration for controlling interest, completed September 2025
Naxos Acquisition Share Subscription	US$105 million	Part of the total acquisition cost
2024 Net Loss	-64.94 million (CNY)	Total operating cost burden for FY2024
Content Library Size	3 million	Audio and video music tracks as of May 2025
Institutions Served (Subscription)	Over 800	Universities, libraries, and institutions across China

The key cost drivers you need to monitor closely are:

• Content licensing fees and royalties for the 3 million track library.
• The amortization or impairment of the US$106.35 million Naxos acquisition cost.
• R&D spend necessary to advance KUKEY and integrate Web3/AI technologies.
• Event-related operating expenses for the Beijing Music Festival, which has a 24-year history.
• G&A overhead required to manage the expanded international structure post-Naxos.

Finance: draft 13-week cash view by Friday.

Kuke Music Holding Limited (KUKE) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Kuke Music Holding Limited (KUKE) as of late 2025, and the picture is clearly one of transition, heavily influenced by recent strategic moves.

The core business, which historically relied on content, saw its total revenue drop significantly in the prior year, reporting RMB 68.92 million for the full year 2024, which translated to USD $9.59 million at the 2024 average exchange rate. This is the backdrop against which the new streams are being layered.

The traditional revenue sources, based on the nine months ended September 30, 2020 figures, were segmented as follows:

• Classical music licensing fees from online platforms and other copyright holders accounted for 86.6% of total revenue.
• Subscription fees from institutional customers, primarily universities, colleges, and public libraries, were part of the 86.6% licensing and subscription block.
• Sales of KUKEY smart music education solutions and systems represented 12.3% of total revenue for that nine-month period.
• Revenue from live music events and concert organization, including the Beijing Music Festival, made up 1.1% of total revenue in the nine months ended September 30, 2020.

The overall market for these traditional services was projected to reach RMB 2,396.6 million by 2025, growing at a CAGR of 9.3% from 2020 to 2025. Kuke Music Holding Limited possessed approximately 3 million audio and video music tracks as of December 31, 2024, underpinning the licensing and subscription revenue base.

A major new component comes from the acquisition of JoyMiracle, which operates a Web3/AI computing power and trading platform. This new stream has a specific 2025 performance target tied to the earnout agreement signed on March 20, 2025.

Here is the breakdown of the targeted new revenue stream:

Revenue Source	Entity	2025 Target/Value	Context/Date
Web3/AI Computing Power and Trading Platform Revenue	JoyMiracle	RMB 70,000,000 (Audited Revenue Target)	Fiscal Year 2025 Performance Target
Acquisition Settlement Value	Naxos Music Group	Approximately US$106.35 million (Total Transaction Value)	Settled via share issuance, completed September 17, 2025

The company also made a significant financial outlay in the third quarter of 2025, acquiring a controlling interest in Naxos Music Group for a total transaction value of approximately US$106.35 million, settled through the issuance of Class A ordinary shares. This acquisition is expected to enhance content offerings, which directly feeds the licensing and subscription revenue lines.