NCTY The9 Limited

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of December 2024

 

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Commission File Number: 001-34238

 

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THE9 LIMITED

 

17 Floor, No. 130 Wu Song Road

Hong Kou District, Shanghai 200080

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x       Form 40-F ¨

 

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press Release – The9 Limited Announces Unaudited Financial Information As of and For the Six Months Ended June 30, 2024

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	THE9 LIMITED
	By	:	/s/ George Lai
	Name:	:	George Lai
	Title:	:	Director and Chief Financial Officer

 

Date: December 31, 2024

 

 

Exhibit 99.1

 

The9 Limited Announces Unaudited Financial Information
As of and For the Six Months Ended June 30, 2024

 

In compliance with NASDAQ Rule 5250(c)(2), The9 Limited (the “Company”) hereby announces its unaudited condensed consolidated statements of operations for the six months ended June 30, 2024 and its unaudited condensed consolidated balance sheet as of June 30, 2024.

 

THE9 LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION

(Expressed in Renminbi - RMB and US Dollars - US$. All amounts in thousands, except for per share data, or otherwise noted.)

 

		Six months ended June 30,
		2023				2024				2024
		RMB				RMB				US$
										(Note1)
Revenues:
Cryptocurrency mining revenue (Note3)			91,491				91,332				12,568
Online game services and other revenues			3,151				752				103
Total net revenues			94,642				92,084				12,671
Cost of cyptocurrency mining(Note3)			(95,772	)			(79,416	)			(10,928	)
Cost of online game services and other revenues			(9,883	)			(5,689	)			(783	)
Total cost			(105,655	)			(85,105	)			(11,711	)
Gross profit (loss)			(11,013	)			6,979				960
Operating income (expenses):
Product development			(848	)			(405	)			(56	)
Sales and marketing			(1,617	)			(97	)			(13	)
General and administrative			(128,672	)			(59,237	)			(8,151	)
Impairment of cryptocurrency			(32,733	)			-				-
Impairment of mining machines			(150,204	)			-				-
Realized gain on exchange digital assets			44,666				35,029				4,820
Fair value change on digital assets			-				2,055				283
Total operating expenses			(269,408	)			(22,655	)			(3,117	)
Other operating expenses			-				(87	)			(12	)
Loss from operations			(280,421	)			(15,763	)			(2,169	)
Loss on disposal of subsidiaries			-				(9	)			(1	)
Gain (impairment) on other investments			5,630				(3,764	)			(518	)
Interest expenses, net			(23,751	)			(6,912	)			(951	)
Gain on FV of Derivative			31,264				17,947				2,470
Gain on disposal of equity investee and available-for-sale investments			1,112				-				-
Other income, net			5,023				2,754				379
Foreign transaction exchange gain (loss)			(10,855	)			3,685				507
Loss from continuing operations before income taxs and share of loss in equity method investments			(271,998	)			(2,062	)			(283	)
Income tax			-				-				-
Share of loss in equity method investments			-				(330	)			(45	)
Loss from continuing operations			(271,998	)			(2,392	)			(328	)
Discontinued operations (Note2)
Loss from discontinued operation			(1,412	)			-				-
Net loss			(273,410	)			(2,392	)			(328	)
Net loss attributable to noncontrolling interest			(3,601	)			(2,618	)			(360	)
Net income (loss) attributable to The9 Limited			(269,809	)			226				32
Other comprehensive loss:
Currency translation adjustments			1,255				629				87
Total comprehensive loss			(272,155	)			(1,763	)			(241	)
Comprehensive income (loss) attributable to:
Noncontrolling interest			(3,601	)			(2,618	)			(360	)
The9 Limited			(268,554	)			855				119
Net income (loss) attributable to holders of ordinary shares per share
- Basic and diluted			(0.31	)			0.00				0.00
Weighted average number of shares outstanding
- Basic and diluted			881,666				1,275,183				1,275,183

 

 

THE9 LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(Expressed in Renminbi - RMB and US Dollars - US$. All amounts in thousands, except for share data, or otherwise noted.)

 

		As of December 31, 2023				As of June  30,  2024				As of June  30, 2024
		RMB				RMB				US$
						(UNAUDITED)				(UNAUDITED)
										(Note1)
Assets
Current Assets:
Cash and cash equivalents			45,222				14,248				1,961
Accounts receivable, net of allowance for doubtful accounts			56				145				20
Advances to suppliers			-				1,000				138
Prepayments and other current assets, net of allowance for doubtful accounts			28,911				62,060				8,540
Amounts due from related parties			600				600				83
Cryptocurrencies			87,714				54,676				7,524
Cryptocurrencies, restricted			17,838				118,596				16,319
Total current assets			180,341				251,325				34,585
Investments			35,291				300,871				41,401
Call option assets			-				5,207				716
Property, equipment and software, net			94,329				62,748				8,634
Cryptocurrencies, restricted			2,409				-				-
Operating lease right-of-use assets			6,869				6,515				897
Other long-lived assets, net			44,486				41,086				5,654
Total Assets			363,725				667,752				91,887
Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity
Current Liabilities:
Accounts payable			9,600				8,791				1,210
Other taxes payable			1,502				1,494				206
Advances from customers			12,714				11,578				1,593
Amounts due to related parties			11,677				11,677				1,607
Convertible notes			49,933				26,394				3,631
Conversion feature derivative liability			28,605				10,658				1,467
Interest payables			274				923				127
Short-term Bank borrowing			-				74,836				10,298
Accrued expense and other current liabilities			44,176				53,675				7,386
Current portion of operating lease liabilities of the consolidated VIE without recourse to the Group			4,373				4,786				659
Deferred revenue			-				314				43
Total current liabilities			162,854				205,126				28,227
Convertible bonds			16,746				16,746				2,304
Put option liability			-				7,718				1,062
Non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group			2,788				1,777				245
Total Liabilities			182,388				231,367				31,838
Ordinary shares contingently redeemable			-				102,638				14,124
Shareholders' Equity
Class A ordinary shares  (US$0.01 par value; 4,300,000,000 shares authorized,   1,391,618,893 and 2,787,963,278 shares issued and outstanding as of December 31, 2023 and June 30, 2024 respectively)			95,375				201,977				27,793
Class B ordinary shares (US$0.01 par value; 600,000,000 shares authorized, 13,607,334 and 13,607,334 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively)			944				944				130
Additional paid-in capital			4,471,156				4,519,512				621,906
Statutory reserves			7,327				7,327				1,008
Accumulated other comprehensive loss			(11,742	)			(11,899	)			(1,637	)
Accumulated deficit			(4,356,786	)			(4,356,560	)			(599,483	)
The9 Limited shareholders' equity			206,273				361,301				49,717
Noncontrolling interest			(24,936	)			(27,554	)			(3,792	)
Total shareholder's  equity			181,337				333,747				45,925
Total liabilities, ordinary shares contingently redeemable and shareholders' equity			363,725				667,752				91,887

 

 

Note 1: The United States dollar (“US dollar” or “US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers at the rate of US$1.00 = RMB7.2672, representing the noon buying rate on the last trading day of June 2024 (June 30, 2024`) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

Note 2: Discontinued operations

 

In January 2023, the Company ceased operations of its NFT business. The decision was primarily a result of unfavorable financial performance. The Company reclassified the operations of NFT business as discontinued operations. The Company has reflected the reclassification of assets and liabilities of these entities as held for sale and the operations as discontinued operations as of and for the six months ended June 30, 2023. Loss from discontinued operations reflects the results of the NFT business, and does not include any allocation of general corporate overhead expense or interest expense of the Company.

 

Note 3: Reclassification of mining pool fee

 

The Company revised the accounting policy for fees deducted by the mining pool operator as stipulated in ASC 606-10-32-25, and reclassified the amount from cost of revenues and reflect as a reduction of cryptocurrency mining revenue for the six months ended June 30, 2023 and 2024. The reclassification has no impact on the Company’s gross profit (loss) and operating results for each respective period.

 

About The9 Limited

 

The9 Limited (The9) is an Internet company listed on Nasdaq in 2004. The9 is committed to become a global diversified high-tech Internet company and is engaged in online games operation and Bitcoin mining business.

 

 

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