Kuke Music Faces Delisting from New York Stock Exchange

The New York Stock Exchange (NYSE) has initiated proceedings to remove Kuke Music Holding from its listings. This decisive action follows the company's prolonged failure to maintain a minimum share price, which led to a suspension of trading in October 2025. Kuke Music is now contesting a potential permanent removal from the world's premier exchange.

At the core of the NYSE Regulation's decision is a specific listing rule: companies must sustain an average closing share price above $1.00 over a consecutive 30-trading-day period. Kuke Music was unable to meet this requirement, triggering the delisting process.

In a prior attempt to rectify the situation, the company executed a 1-for-10 reverse stock split of its American Depositary Shares (ADS) in March 2025. This maneuver, which consolidates shares to boost the nominal price, proved ineffective. The stock price continued to languish below the critical $1 threshold, prompting the exchange to commence formal removal procedures. Kuke Music retains the right to appeal this decision before a committee of the NYSE's Board of Directors.

Key Developments at a Glance:

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

• Trading Status: Suspended as of October 2025.
• Primary Delisting Cause: Failure to maintain minimum $1.00 share price.
• Recent Corporate Action: An ineffective 1-for-10 reverse split in March 2025.
• Strategic Acquisition: Purchased a 70.43% stake in Naxos Music Group for approximately $106.35 million.
• Upcoming Catalyst: Next quarterly financial report scheduled for release on May 11, 2026.

Strategic Moves Amid Exchange Troubles

Despite its severe listing challenges, Kuke Music has pursued an aggressive expansion strategy to bolster its digital music ecosystem. A significant move was the September 2025 completion of its majority stake acquisition in Naxos Music Group, a major force in classical music. The $106.35 million transaction was financed through the issuance of new equity.

Concurrently, management has focused on technological partnerships. In early 2025, the company allied with China Media Group IoV Digital Media. This collaboration aims to integrate classical music libraries and AI algorithms into vehicle infotainment systems, seeking new revenue channels.

The critical question for investors is whether these operational advances can offset the severe setback of a potential NYSE delisting. All attention now turns to the financial results due on May 11, 2026. This report will be scrutinized for early signs that the Naxos integration and new partnerships are yielding tangible financial benefits, potentially providing grounds for the company's appeal to retain its listing.