Cloud Village, the music streaming arm of NetEase runs the NetEase Cloud Music app which is displayed on a smartphone on this photograph.
Fan Jianlei | Visual China Group | Getty Images
GUANGZHOU, China — Cloud Village — the music streaming arm of NetEase — is pushing forward with an preliminary public providing in Hong Kong after reportedly delaying it earlier this yr.
NetEase initially filed for the itemizing of Cloud Village in August. Several studies on the time mentioned that NetEase delayed the IPO as a consequence of risky markets.
But on Tuesday, the corporate filed a revised prospectus with the Hong Kong inventory alternate indicating that it’s going forward with the itemizing.
There isn’t any pricing or timing of the itemizing but.
Chinese know-how shares have taken a beating as Beijing launched a slew of latest regulation over the previous yr in areas from information privateness to anti-trust that caught many buyers off guard.
Cloud Village runs NetEase’s music streaming enterprise and the corporate says it has 185 million month-to-month energetic customers.
Revenue for the 9 months ended Sept. 30 rose 51.5% year-on-year to five.1 billion yuan ($799.6 million). Cloud Village’s income comes primarily from subscriptions, promoting and when customers purchase digital objects on its platforms.
However, the corporate remains to be deeply unprofitable because it focuses on boosting person numbers and content material whereas battling towards Tencent’s rival music streaming service.
“Despite a continued enhance in its person base, Cloud Village might proceed to incur gross and internet losses and internet working money outflow within the foreseeable future, together with for the yr ending December 31, 2021, as a consequence of its continued investments in content material, applied sciences, advertising and marketing initiatives in addition to analysis and growth,” the corporate mentioned in a submitting with the Hong Kong inventory alternate.
Cloud Village’s guardian firm NetEase is considered one of China’s gaming giants and has been trying to develop internationally via high-profile video games together with “Lord of the Rings” and “Harry Potter” titles.