NetEase Cloud music expect to close the financing with a total fund of CNY 2.67 billion and a market value of about CNY 34.753 billion.
Allegedly, the fund would mainly be used in cultivating the company’s music community, enriching diversified music content, improving technical capabilities and other general corporate purposes.
At present, NetEase Cloud music's main revenue comes from subscriptions, advertising and when users buy virtual items on its platforms. According to the prospectus, NetEase Cloud music's revenue in the first three quarters of this year reached CNY 5.1 billion, and its gross profit margin increased significantly and became positive to 0.4%, but it is still suffering heavy losses as it competes for market share against Tencent’s music streaming business.