YH ENT, known as the "first artist management stock," has offered an equity incentive plan to Wang Yibo to retain the top star it helped create. On March 25, YH ENT announced it conditionally plans to grant Wang Yibo 12.5 million restricted shares to reward his outstanding contributions and seek to maintain their long-term partnership.
Based on the closing price of HK$1.96 per share on March 25, the grant is valued at approximately HK$24.5 million (over 21 million yuan). For YH ENT, using 12.5 million restricted shares to retain Wang Yibo is likely a very cost-effective move. In recent years, Wang Yibo has generated substantial revenue for the company.
According to YH ENT's prospectus, from 2019 to 2021 and the first three quarters of 2022, Wang Yibo contributed 16.8%, 36.7%, 49.5%, and 58.8% of YH ENT's revenue, respectively, making him the company's veritable cash cow. While Wang Yibo has significantly boosted YH ENT's performance, the company's reliance on this top star has become increasingly evident. To address this, YH ENT has been actively seeking countermeasures, such as shifting towards trendy toy operations.
However, currently, the trendy toy business contributes relatively limited revenue. Last year, this segment generated only 37 million yuan in revenue, accounting for less than 5% of total revenue. In contrast, YH ENT's artist management business brought in 749 million yuan during the same period, representing over 80% of total revenue.
YH ENT breathed a sigh of relief on March 27 when it announced the successful renewal of its exclusive artist management contract with Wang Yibo, temporarily easing the company's crisis. Nevertheless, long-term reliance on a single artist remains a sword of Damocles hanging over YH ENT.
YH ENT's March 25 disclosure stated the board proposed granting Wang Yibo 12.5 million restricted share units. The announcement emphasized the matter's urgency. The move aims to recognize Wang Yibo's contributions and maintain their long-term partnership to ensure continued benefits for the group.
The grant has a subscription price of HK$0.01 per share, representing about 1.51% of YH ENT's total issued shares. The restricted shares will vest equally in four batches over four years. Valued at approximately HK$24.5 million based on the March 25 closing price, the grant terms allow YH ENT to reclaim the shares if Wang Yibo seriously breaches his contract, ceases to be a signed artist, faces criminal charges, or violates confidentiality and non-compete clauses.
The announcement noted Wang Yibo serves as a key service provider under his artist contract, creating significant value through endorsements, promotions, and commercial engagements. YH ENT's board believes securing Wang Yibo's renewal is crucial for business stability. The long-term stability and sustainable performance from retaining him outweigh the minimal dilution impact on minority shareholders, better serving all shareholders' interests.
Despite the HK$24.5 million stock award, some of Wang Yibo's fans expressed dissatisfaction, commenting that his quarterly endorsement fees exceed YH ENT's offer, suggesting the company lacks sincerity while trying to retain its "cash cow." However, the incentive ultimately helped YH ENT secure the renewal.
On March 27, YH ENT announced the completion of Wang Yibo's contract renewal. Following the renewal, Wang Yibo modified his social media profile, removing the UNIQ prefix and group member description. YH ENT stated the renewal extends their long-term cooperation and aligns his career development more closely with the company's future. The board believes the continued strategic collaboration will boost confidence in the company's stable performance and long-term growth.
YH ENT's strong efforts to retain Wang Yibo stem from his immense commercial value. As a core artist, Wang Yibo single-handedly supports a large portion of the company's revenue. Public information shows Wang Yibo was born in 1997 in Luoyang, Henan Province. He signed with YH ENT in October 2014, debuting as a member of UNIQ. His career turning point came in 2019 when he skyrocketed to fame starring in the fantasy drama "The Untamed." Currently, he has over 41.5 million social media followers with more than 5.4 billion post reads.
As a top star, Wang Yibo's commercial value has surged. YH ENT's announcement revealed he participated in over 30 endorsements annually in the past three years, spanning food and beverage, personal care, home products, apparel, skincare, cosmetics, sports equipment, home appliances, and automotive sectors. His revenue contribution to YH ENT has grown steadily, reaching 58.8% in the first three quarters of 2022.
In January 2023, YH ENT listed on the Hong Kong Stock Exchange, becoming the first artist management stock on the HKEX. On its debut, the share price closed at HK$6.03, up 47.79%, with a market cap of approximately HK$5.25 billion. Wang Yibo's name appears frequently in YH ENT's prospectus. During the listing ceremony, he was introduced as a YH ENT shareholder and participated in the bell-ringing ceremony. Due to its heavy reliance on Wang Yibo, YH ENT has been labeled a "Wang Yibo concept stock" by the market.
Recently, Wang Yibo has increasingly distanced himself from YH ENT, expanding his personal business ventures. Corporate records show he holds positions in four companies. He holds stakes in three active companies: Beijing Boyuan Culture Technology Co., Ltd., Tianjin Horizon Network Technology Co., Ltd., and Shanghai Yibo Culture Media Studio. Notably, YH ENT has no involvement in these entities. Wang Yibo fully owns Shanghai Yibo Culture Media Studio, while he co-owns the other two companies with Wang Zhengxing. Additionally, through Tianjin Horizon Network Technology, he has registered trademarks including "Yebo," "Wang Yibo," and "WANGYIBO" across categories like musical instruments, convenience foods, and kitchen utensils.
As a "Wang Yibo concept stock," YH ENT's share price is highly sensitive to news about his status. The prospectus indicated his initial contract ran from October 2014 to October 2022, renewed once for four years until October 2026. Rumors of non-renewal in late 2023 caused YH ENT's stock to decline. Before the recent renewal, with no substantial progress, the share price fell significantly, dropping over 20% from the start of the year to March 25, highlighting market concern about his retention.
Industry analysts have noted YH ENT's high reliance on a single artist poses significant risks. YH ENT's CEO has stated the company aims for diversified artist development rather than focusing solely on creating top stars. To reduce dependence on Wang Yibo, YH ENT has accelerated its shift into the trendy toy sector. In December 2024, YH ENT's subsidiary Tianjin Yihua partnered with Shenzhen Yigi to establish "Walk with YH," focusing on incubating and operating trendy toy IPs like WAKUKU.
However, this business currently contributes minimally to overall revenue. YH ENT's full-year 2025 results show revenue of 907 million yuan, up 18.63% year-over-year, with net profit attributable to shareholders of 64 million yuan, a 36.7% increase from 2024. The company attributed revenue growth primarily to higher artist management income, which reached 749 million yuan in 2025, up over 12%, accounting for 82.5% of total revenue. Gross profit from artist management rose to 170 million yuan in 2025 from 116 million yuan in 2024, with the gross margin increasing 5.4 percentage points to 22.8%, due to revenue growth outpacing related costs.
In contrast, the trendy toy business contributed only 37 million yuan in 2025, less than 5% of total revenue. Although this segment achieved a 45% gross margin, its gross profit of 17 million yuan was less than 10% of the artist management business's gross profit. YH ENT emphasized its goal to build a resilient and scalable trendy toy operation to support long-term sustainable growth. The company plans to expand its trendy toy portfolio, incubate more IPs, and adapt to evolving market demands. It also aims to improve operational efficiency through closer partnerships, data-driven product planning, and stricter management of product launches, production, and lifecycle to enhance omnichannel coverage domestically and internationally.
Analysts believe that while Wang Yibo's contract renewal alleviates YH ENT's short-term crisis, heavy reliance on a top artist remains a critical challenge requiring resolution in the long term.
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