Stockholders show the stock price of Star CM on August 18, 2023. Photo: VCG

The parent company of the "The Voice of China" saw its stock fall by over 20 percent on Friday after a viral audio clip circulated online, which alleged that the late pop singer Coco Lee was treated badly during her time on the popular televised singing show.

Shares in Star CM Holdings tumbled 23 percent to close at 94.950 HKD on Friday, cutting its stock market valuation by approximately $1.5 billion.

The official Sina Weibo account of "The Voice of China" released a statement on Thursday, saying that the audio in which Lee made accusations against the show before her passing had been maliciously edited.

"Such actions disrespect the deceased and seriously damage the show's image. We express our strong condemnation. At the same time, out of respect for the deceased, we will no longer provide further explanations on this matter," the statement said.

Recently, a recording has circulated, in which the late singer allegedly accuses the show of mistreatment. In the recording, Lee can be heard crying out in distress about the treatment she experienced during the show's recording.

She mentioned discovering the unfairness in the show's competition format and engaging in disagreements with the production team in order to advocate for the contestants.

Additionally, the recording revealed that due to her severe leg condition, Lee was unable to stand alone on stage for extended periods of time. Lee expressed her preference to have an assistant to stand by her side throughout the filming. However, during the recording process, her assistant was called away, leaving her to endure the pain and complete the performance.

Star CM Holdings recorded revenue of 873 million yuan ($119 million) in 2022, a decrease of 22.5 percent compared to the previous year. This marks the fourth consecutive year of declining revenue for the company, zaobao.com reported.

Over the past three years, Star CM Holdings' revenue from the operation and licensing of its variety show IPs has decreased by 18.7 percent, 19 percent, and 20 percent, respectively.

Global Times