When Netease cloud music broke through the IPO, its subsidiaries were punished for violation of regulations, the copyright problem hindered its development and exposed the weakness of its profit model
On June 2, Huang Yunxin, an investor, reported that Hangzhou Ledu Technology Co., Ltd. was fined 15000 yuan for its online music product “holy war” provided by Netease cloud music, a website operated by the company. Prior to this, Netease cloud music submitted its listing application to the Hong Kong Stock Exchange on May 26. After a week, its subsidiary was fined for violation of regulations, which pushed Netease cloud’s improper supervision of content to the forefront of public opinion again. It is understood that the largest shareholder of Hangzhou Ledu Technology Co., Ltd. is Ding Lei, the current CEO of Netease cloud music, whose shareholding ratio is as high as 99%. Netease cloud’s 154 page prospectus says, “as of December 2018, 2019 and 2020