[Asia Economy Reporter Hyungsoo Park] Cube Entertainment is surging. The news that it signed an exclusive music supply and joint promotion contract with Wangyi Yun Music (NetEase Cloud Music), China's largest music platform, appears to have influenced the stock price.
At 11:38 AM on the 2nd, Cube Entertainment was trading at 4,740 KRW, up 15.19% from the previous day.
On the same day, Cube Entertainment announced that it signed an exclusive music supply and joint promotion contract with HANGZHOU NETEASE CLOUD MUSIC TECHNOLOGY Co., Ltd. This contract supplies music to mainland China, and after receiving copyright files and invoices, 80% of the minimum guaranteed amount will be paid within 15 business days, and the remaining 20% will be paid before October 1.
Besides content service supply, the company stated that this contract establishes a cooperative relationship by jointly planning and co-hosting promotional activities at the level of strategic partnership and joint development business model.
Wangyi Yun Music is a subsidiary under China's NetEase Group. NetEase, a Nasdaq-listed Chinese gaming company (Chinese name Wangyi <網易>), is raising up to 2.6 billion USD (approximately 3.18 trillion KRW) through a secondary listing in Hong Kong. According to the listing plan announced by NetEase on the night of the 1st, the company will issue 171.48 million shares through the secondary listing in Hong Kong.
The issue price was set at up to 126 Hong Kong dollars per share. If the plan proceeds as scheduled, NetEase will secure up to 2.6 billion USD through this additional listing. The newly issued shares are expected to be traded on the Hong Kong Stock Exchange starting from the 11th.
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