(Yicai Global) Aug. 2 -- NetEase Cloud Music, China’s second-largest music streaming platform, has been given the green light by the Hong Kong Stock Exchange to proceed with its initial public offering, the bourse said on its website yesterday.

The unit of Guangzhou-based gaming giant NetEase has not yet disclosed the financial terms of the IPO, but the funds raised will go to develop its music community, enrich diverse music content, improve its tech capabilities and fund mergers, acquisitions, strategic investments and operations.

The Hangzhou-based company plans to raise HKD7 billion (USD906 million) by offering 2.1 million shares globally at HKD330 (USD42.40) each, according to a previous report by news outlet Jiemian.

NetEase Cloud Music wrapped up four round of financing this year, raising almost USD1.5 billion from investors including NetEase, liability company Taobao China Holding and e-commerce giant Alibaba Group Holding.

In the first quarter, NetEase Cloud Music’s revenue soared almost 75 percent from a year earlier to CNY1.5 billion (USD232 million). Its adjusted net loss was CNY284 million (USD44 million) in the period, compared with CNY540 million in 2020, according to the latest figures.

The company’s revenue from online music jumped to CNY759 million in the first three months of the year from CNY500 million a year ago. Revenue from social entertainment and other segments also jumped to CNY731 million from CNY355 million.

Active users of its Cloud Village app reached 183 million in the first quarter and the number of paid online music users rose over 91 percent to 24.3 million. Its online music payment rate reached 13.3 percent.

Editor: Futura Costaglione