Kuke Music Holding Faces Existential Crisis Following NYSE Delisting

The dramatic fall from grace for Kuke Music Holding has reached a critical juncture as the company battles for survival after its forced removal from the New York Stock Exchange. Shares have entered a devastating downward spiral, with the transition to over-the-counter markets representing a staggering low for the former market favorite.

Recent financial disclosures reveal a troubling situation for stakeholders. During 2024, the company witnessed a precipitous 35.9% collapse in revenue, which dwindled to just RMB 68.92 million (approximately $9.59 million). The EBITDA figure remained deeply negative at -$5.86 million, while the current ratio of 0.34 indicates severe liquidity constraints that threaten the company's ability to meet its immediate financial obligations.

Exchange Delisting Details Emerge

The formal delisting from the NYSE occurred on October 21-22, 2025, following persistent non-compliance with exchange requirements. Kuke's stock price had remained below the critical $1 threshold for more than 30 consecutive trading sessions. Since the beginning of 2025, equity value has deteriorated by approximately 85%, evaporating market capitalization to around $130.4 million. Even a depositary receipt ratio adjustment—similar in effect to a reverse stock split—failed to halt the company's exchange departure.

Should investors sell immediately? Or is it worth buying Kuke Music Holding?

OTC Trading Brings Extreme Volatility

Trading under the new ticker symbol KUKEY in over-the-counter markets has done little to stabilize the situation. On November 5, 2025, share values plunged to approximately $0.16880, representing a dramatic decline from the previous closing price of $0.43. A modest recovery to $0.35000 occurred by November 10, but the security experienced wild fluctuations between $0.23010 and $0.40000 within a single trading session, reflecting profoundly shaken investor confidence.

Strategic Moves Face Scrutiny

Market observers are questioning whether recent strategic initiatives can reverse the company's fortunes. The acquisition of a controlling stake in Naxos Music Group, valued at $106.35 million, alongside a partnership with the state-owned People's Music Publishing House, represents attempts to stabilize operations. However, given the acute cash flow challenges and decimated share price, these measures may prove insufficient to address the fundamental financial crisis.

The central question remains whether Kuke Music Holding possesses the resources and strategic positioning to navigate its current challenges or if the company has already lost its fight for corporate survival.