YeaH1 Group Corporation said Sony Music will buy newly-issued shares in 1Label JSC, a subsidiary focused on music ownership, production and distribution.

The value of the transaction was not disclosed. The deal is expected to be completed in the fourth quarter of 2025.

Following the deal, YeaH1’s stake in 1Label will fall to 49.88%, reclassifying the company from a subsidiary to an associate.

Another YeaH1 unit, 1Talents LLC, which manages artists, will also become an associate as a result of the transaction.

Sony Music Entertainment Hong Kong is part of Sony Music Entertainment, one of the “Big Three” groups that dominate the global music industry. Sony Music operates in more than 100 countries and supports artists and creators across multiple genres and markets.

YeaH1 said the investment is not only a financial issue which helps attract international capital into Vietnam’s entertainment sector but also aimed at gaining access to global-standard artist management technology and Sony Music’s worldwide distribution network. The first joint project will be an international launch strategy for the “Tan Binh Toan Nang” idol group.

In September, YeaH1 announced a revised business strategy after suspending production of popular television shows, shifting its focus to developing young music groups through the “Tan Binh Toan Nang” program and building its MangoPlus entertainment app.

YeaH1 reported slowing profit growth in Q3 after strong gains earlier in the year. Revenue rose 13% year-on-year to VND391 billion ($14.85 million), while net profit fell 78.7% to VND7.3 billion ($277,200), the lowest level since Q3/2023, which the company attributed to higher production costs.

For the first nine months of the year, YeaH1 posted revenue of nearly VND1.07 trillion ($40.55 million), up 70% from a year earlier, and net profit of VND66.6 billion ($2.53 million), up 19.5%. The group had achieved 82% of its full-year revenue target but only 47.6% of its profit goal.

Despite weaker profits, YeaH1 said its financial position improved, with cash and bank deposits nearly doubling to VND272 billion ($10.33 million) by the end of Q3, while total borrowings fell sharply to VND251 billion, helping halve quarterly interest expenses.