China’s NetEase revives Hong Kong IPO of its music streaming arm
Cloud Village is the NetEase music streaming arm. This photo shows the NetEase Cloud Music App.
Fan Jianlei | Visual China Group | Getty Images
GUANGZHOU, China — Cloud Village — the music streaming arm of NetEase — is pushing ahead with an initial public offering in Hong Kong after reportedly delaying it earlier this year.
NetEase filed the original application for listing Cloud Village back in August. There are many reportsNetEase claimed that NetEase had delayed its IPO because of volatile markets.
However, on Tuesday the company submitted a revised prospectus to the Hong Kong Stock Exchange indicating it will proceed with listing.
The timing and pricing of the listing are still unknown.
Chinese technology stocks took a hit after Beijing introduced new regulation in the past year. in areas from data privacyMany investors were caught off guard by antitrust.
Cloud Village is the music streaming company of NetEase. The company claims that it has over 185,000,000 monthly active users.
The nine-month ended September 30 saw an increase of 51.5% in revenue to 5.1 billion Yuan (7999.6 million). Cloud Village makes its revenue mainly through subscriptions and advertising. Users also buy virtual goods on the platform.
The company remains deeply indebted as it continues to focus on user growth and content, while fighting against the competition. TencentThe rival streaming music service to’s.
Cloud Village stated in a filing to the Hong Kong Stock Exchange that “despite a continuing increase in its users, Cloud Village could continue to incur net and gross losses and net operating cash flow in the foreseeable future including for the year ended December 31, 2021”
Cloud Village’s parent company NetEase, one of China’s largest gaming companies, has been in business since 1995.ooking to grow internationallyThrough high-profile titles like “Lord of the Rings”, and “Harry Potter”.