Chinese tech giant NetEase revives Hong Kong IPO of its music streaming arm

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  • Cloud Village – the music streaming arm of NetEase – is moving forward with an initial public offering in Hong Kong after reportedly delays earlier this year.
  • Chinese technology stocks have taken a beating as Beijing has introduced a slew of new rules over the past year in areas ranging from data privacy to anti-trust, stunned many investors.
  • Revenue rose 51.5% year-on-year to 5.1 billion yuan ($799.6 million) for the nine months ended September 30.

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GUANGZHOU, China – Cloud Village – the music streaming arm of NetEase – is moving forward with an initial public offering in Hong Kong after reportedly delays earlier this year.

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NetEase originally filed for Cloud Village listing in August. Many reports It was said at the time that NetEase delayed the IPO due to volatile markets.

But on Tuesday, the company filed a revised prospectus with the Hong Kong Stock Exchange, indicating that it is proceeding with the listing.

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There’s no pricing or timing for the listing yet.

Chinese technology stocks have taken a beating as Beijing introduced a slew of new rules over the past year in areas ranging from data privacy to anti-trust, stunned many investors.

Cloud Village runs NetEase’s music streaming business and the company says it has 185 million monthly active users.

Revenue rose 51.5% year-on-year to 5.1 billion yuan ($799.6 million) for the nine months ended September 30. Cloud Village’s revenue primarily comes from subscriptions, advertising and when users purchase virtual items on its platform.

However, the company is still deeply unprofitable as it focuses on growing user numbers and content while struggling against Tencent’s rival music streaming service.

“Despite continued growth in its user base, Cloud Village may continue to have gross and net losses and net operating cash outflows in the near future due to its continued investments in content, technologies, including the year ending December 31, 2021. , marketing initiatives as well as research and development,” the company said in a filing with the Hong Kong Stock Exchange.

Cloud Village’s parent company NetEase is one of China’s gaming giants and seeks to grow internationally through high-profile games including “Lord of the Rings” and “Harry Potter” titles.

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