Netease has gotten into the education market, can it fly?
Editor’s note: This article is from WeChat public account “deep” (ID :deep-echo), author Yimin, Aachen.
Core Points
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During the reporting period, Netease was in a state of loss and the net loss rate attributable to ordinary shareholders continued to expand.
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Based on the dictionary business, NetEase has gradually built its own online education business map.
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Transformation K12 is an important boosting factor for Netease to achieve a change in revenue structure, which also brings fierce competition.
Perhaps to weaken attention, NetEase has chosen to submit a prospectus in the US on the early morning of October 1. This strategy is indeed very effective. Compared with the previous sale of Koala’s business in Netease, the comments surrounding Netease’s promissory prospectus are much smaller.
However, as one of the first companies in the NetEase series to launch a listing plan, China’s online education industry is one of the few companies listed in the US. No matter from the overall strategy adjustment of NetEase Group or the trend of online education competition, Netease has a way. It deserves careful observation.
This is a pre-publicized listing: Since the beginning of this year, the news about NetEase’s upcoming IPO has been unbroken. Earlier, Netease has made a series of adjustments and layouts around the education business.
In April 2018, Netease announced that it had completed the first strategic financing of investment by Muhua Investment and the investment of Junlian Capital, with a post-investment valuation of US$1.12 billion. In the first half of this year, NetEase Education, which owns Netease Cloud Classroom and MOOC products, was divested from NetEase Hangzhou Research Institute and merged with NetEase in Beijing.
Cloud-based classrooms based on vocational education
These businesses and assets that have been packaged into NetEase have become