SHANGHAI, Dec. 6, 2024
/PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9"), an
established Internet company, today announced that its wholly-owned
subsidiary Shanghai The9 Information Technology Co., Ltd. signed an
amendment agreement to joint venture agreement (hereinafter
referred to as the "Agreement") with its joint venture partner
Zhejiang Huanyu Network Technology Co., Ltd. (hereinafter referred
to as "Huanyu"), a Chinese game development and operation company.
Huanyu originally committed that the Joint Venture will have game
revenues of at least RMB600 million
and a profit of RMB200 million in
2025. Based on the Agreement, Huanyu increased its commitment that
the Joint Venture will have game revenues of at least RMB900 million (approximately US$124 million) and a profit of RMB300 million (approximately US$41 million) in 2025, and the committed growth
of game revenues and profit by at least 30% annually in 2026 and
2027 remains the same.
The Joint Venture was established in September 2024. The9 holds a 51% stake and Huanyu
holds a 49% stake of the Joint Venture. All after-tax profits of
the Joint Venture will be distributed as dividends every quarter
according to the shareholding ratio of the Joint Venture partners.
It is one of The9's consolidated subsidiaries to operate various
games including MIR M. The Joint Venture had obtained an
application receipt of the Internet Content Provider license and is
expected to obtain the Internet Content Provider license soon.
While The9 will still cooperate with other online game companies to
operate MIR M, The9 granted the Joint Venture exclusive rights to
publish, market and distribute MIR M through certain designated iOS
and Android channels according to the Agreement.
The9 granted Huanyu 475,102,500 The9 restricted shares,
equivalent to 1,583,675 ADSs. These restricted shares will be
unlocked in stages according to Huanyu's commitment to the Joint
Venture's 2025 business results.
"After signing the joint venture agreement with The9 in August,
we have been working smoothly with The9 to set up the Joint
Venture, applying for the ICP and most importantly, to prepare the
launch of MIR M in 2025. In the past few months, we have been
thrilled by the quality of MIR M. MIR M is an evolution game from
all existing MIR games on the market. The Unreal Engine 4 helps MIR
M to create and present top-level graphics. Other than MIR M, we
will also cooperate with The9 to let our Joint Venture operate
other games. We are more confident to the financial performance of
our Joint Venture with The9 and that is the reason we entered into
an amendment agreement to increase our revenue and profit
guarantee," said Liu Huan, CEO of
Huanyu.
Safe Harbor Statement
This current report contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Such
statements are based upon management's current expectations and
current market and operating conditions and relate to events that
involve known or unknown risks, uncertainties and other factors,
all of which are difficult to predict and many of which are beyond
The9's control. The9 may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission ("SEC"), in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about The9's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: The9's goal and strategies; The9's expansion plans;
The9's future business development, financial condition and results
of operations; The9's expectations regarding demand for, and market
acceptance of, its products and services; The9's expectations
regarding keeping and strengthening its relationships with business
partners it collaborates with; general economic and business
conditions; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in The9's filings with the SEC. All information provided
in this announcement is as of the date hereof, and The9 does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
The9 Limited
17 Floor,
No. 130, Wu Song Road,
Hong Kou District,
Shanghai 200080, PRC
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 businesses.
About Zhejiang Huanyu Network Technology Co., Ltd.
Zhejiang Huanyu Network Technology Co., Ltd. is a Chinese game
development and operation company, mainly operating MIR and related
games. The Group has more than 500 employees, more than 19 million
game users, and more than 3.9 million paying users. The cumulative
user payment amount exceeded RMB 1.9
billion.
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SOURCE The9 Limited