Chinese internet company NetEase's music arm Cloud Village refiled a preliminary prospectus to the Hong Kong Stock Exchange (HKSE) on Tuesday.

In May, NetEase had announced its intention to spin-off Cloud Village by way of a separate listing of the ordinary shares of the subsidiary on the main HKSE board. 

On August 9, Cloud Village decided to put its scheduled $1 billion initial public offering (IPO) on hold, a week after it got the listing approval of the HKSE listing committee, amid China's technology sector overhaul.

For the first three quarters, Cloud Village reported a revenue of 5.1 billion yuan (about $797.3 million), up 52 percent year on year, due to increased user base, said the company. 

Meanwhile, the company reported a gross profit margin of 0.4 percent in nine months, compared with a negative gross margin of 14.5 percent in the same period last year.

The company said it grew its monthly music users to 184.2 million in the first three quarters of the year, compared with 179.6 million the same period last year. Monthly paying users surged by 93 percent to 27.52 million in the nine months that ended on September 30.

Bank of America, China International Capital Corp. and Credit Suisse Group AG are serving as joint sponsors.

The company said its marketing expenses and research and development expenses are expected to increase in 2021 as compared to 2020, as it focuses on enhancing brand recognition and advancing its technology. Therefore, its net loss for the year is expected to increase substantially as compared to last year.

"Despite a continued increase in its user base, Cloud Village may continue to incur gross and net losses and net operating cash outflow in the foreseeable future, including for the year ending December 31, 2021, due to its continued investments in content, technologies, marketing initiatives as well as research and development," according to information disclosed on HKSE.