By email@example.com (InfoseekChina)
China-based gaming company and Web portal NetEase announced Wednesday that its wholly-owned e-commerce subsidiary has agreed to form a joint venture focused on Internet crowdfunding and other Internet finance businesses.
NetEase said that its Ujia E-commerce Co. subsidiary will form a joint venture with Everbright Securities and HNA Group.
Shanghai-based Everbright Securities is a state-controlled brokerage, one of the largest securities brokerages by assets in China. HNA Group manages airports and is involved in financial services, logistics, aviation, hotel management and other areas.
Under the agreement, the total registered capital of the joint venture company will be approximately RMB 100 million ($16.1 million), with RMB 30 million contributed by Ujia, RMB 40 million contributed by Everbright and RMB 30 million contributed by HNA Group.
NetEase said the joint venture must still receive approvals from all the parties.
“Under this joint venture, we plan to bring even more robust e-commerce offerings to our growing community of Internet users,” said NetEase CEO William Ding.
NetEase stock rose to a record high Wednesday near 145 and was up more than 2% in early afternoon trading in the stock market today, near 143.
NetEase stock is up more than 40% this year.
Last week, NetEase beat on Q1 revenue and earnings, supercharged by sales of mobile video games as the company expands its global reach.
NetEase did not give Q2 guidance. Analysts polled by Thompson Reuters are modeling revenue of $602.7 million, up 27%. Those analysts also expect NetEase to post EPS ex items of $1.55, up from $1.48 in Q2 2014.
The Beijing-based company — best known for its desktop games but striving to develop more mobile games — has held a lucrative exclusive license for Activision Blizzard’s “World of Warcraft” game in mainland China since 2009. Chinese Internet giant Tencent Holdings owns a stake in Activision.
Source: Investor Business Daily by Michele Chanelder
Source:: NetEase Forms Internet Finance Joint Venture