BEIJING - Kuke Music Holding Limited (NYSE: KUKE), a prominent classical music service platform in China, has announced its foray into the artificial intelligence (AI) music sector, with plans to integrate its AI music technology into automobile services.
The company, which boasts a library of approximately 3 million audio and video tracks, has formed a dedicated team to develop AI music features for KUKE and its partners' applications, aiming to offer users an innovative music experience.
On Thursday, Kuke entered into an "Application Market Cooperation Agreement" with Shanghai Jidou Science and Technology Co., Ltd. ("Jidou"), a leading automotive software provider. Under this agreement, Kuke's AI music application will be made available on Jidou's in-car application store. Jidou's clientele includes major car manufacturers such as Audi, BMW (ETR:BMWG), Porsche (ETR:P911_p), Volkswagen (ETR:VOWG_p), and Toyota (NYSE:TM).
The collaboration is expected to enrich Jidou's automotive cockpit software platform's application ecosystem, with Kuke's AI technology enhancing the intelligence and personalization of music services for users. Kuke's senior management expressed optimism about AI's potential to bring new development opportunities to the music and car networking industries.
Kuke Music, in partnership with Naxos, the world's largest independent classical music content provider, offers a vast classical music content library and licenses music to various online platforms. It also provides classical music subscription services to over 800 institutions in China and has hosted the Beijing Music Festival for 24 years.
This announcement is based on a press release statement.
In other recent news, Kuke Music Holdings Limited has announced its intention to acquire majority stakes in two subsidiaries of Naxos One Holding Limited. The subsidiaries, Angelina Assets Limited and HNH International Limited are part of the globally recognized Naxos Music Group. This decision aligns with Kuke's strategy to bolster its content offerings and market presence.
In a parallel development, Kuke Music has revealed plans to establish a new Technical Research and Development Center in Guangzhou. This center aims to enhance cooperation with Naxos Music Group by focusing on product development and technical maintenance services. The Guangzhou R&D center is set to concentrate on innovative technologies that will support and enhance Naxos' product offerings.
These are recent developments for Kuke Music, which is known for its partnership with Naxos, the world's largest independent classical music content provider.
InvestingPro Insights
Kuke Music Holding Limited (NYSE: KUKE) has recently made headlines with its venture into the AI music space and its strategic partnership with Shanghai Jidou Science and Technology Co., Ltd. As Kuke positions itself at the forefront of AI technology in the music industry, investors and stakeholders are closely monitoring its financial health and stock performance. According to real-time data from InvestingPro, Kuke's market capitalization stands at a modest 95.25 million USD. With a Price / Book ratio last reported at 31.77, the company trades at a premium relative to its book value, which can be indicative of the market's high expectations for its future growth.
Despite its innovative strides, Kuke has been grappling with profitability challenges, as evidenced by a negative P/E ratio of -14.46 for the last twelve months as of Q4 2023. This figure suggests that the company has not been profitable over the past year. Additionally, Kuke's revenue has seen a decline of 7.1% over the same period, highlighting potential concerns about its revenue generation capabilities. However, it's worth noting that the company experienced a quarterly revenue growth of 27.62% in Q4 2023, hinting at a possible turnaround.
An InvestingPro Tip worth mentioning is that Kuke's stock has exhibited high volatility, which may appeal to certain investors looking for short-term trading opportunities. Moreover, the stock has seen a large price uptick over the last six months, with a 137.14% return, and an even more impressive 308.2% return over the past year. This could reflect investor confidence in the company's long-term prospects, especially with its recent AI initiatives.
For those interested in deeper analysis, InvestingPro offers additional tips on Kuke, which can be accessed at https://www.investing.com/pro/KUKE. There are currently 8 more InvestingPro Tips available, providing valuable insights for both prospective and current investors. To enhance your investment strategy with these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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