SHANGHAI, Aug. 23,
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 a joint venture agreement (hereinafter referred to as
the "Agreement") with Zhejiang Huanyu Network Technology Co., Ltd.
(hereinafter referred to as "Huanyu"), a Chinese game development
and operation company. The Joint Venture will become one of The9's
consolidated subsidiaries to operate the mobile and PC versions of
the new MIR game: MIR M, in which The9 holds a 51% stake and Huanyu
holds a 49% stake.
Pursuant to the Agreement, Huanyu promised to guide its existing
MIR and related game users to the Joint Venture to ensure the
smooth operation of MIR M by 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. Huanyu committed that the Joint Venture will have a game
revenue of at least RMB600 million
(approximately US$84 million) and a
profit of RMB200 million
(approximately US$28 million) in
2025, and that the game revenue and profit will increase by at
least 30% annually in 2026 and 2027.
The9 promised to grant Huanyu The9 restricted shares. The amount
will be RMB 98 million / US dollar to
RMB exchange rate on the date of issuance / NCTY share price on the
date of issuance. The shares will be issued 5 working days after
the Joint Venture submits all relevant materials for applying for
the Internet Content Provider license to the local government and
obtains an application receipt. These restricted shares will be
unlocked in stages according to Huanyu's commitment to the Joint
Venture's 2025 business results. If the 2025 business results
commitment is achieved, The9 will grant Huanyu the second batch of
restricted shares according to this mechanism. If the 2026 business
results commitment is achieved, The9 will grant Huanyu the third
batch of restricted shares according to this mechanism.
Zhu Jun, Chairman and CEO of
The9, said: "MIR is a benchmark product in the history of Chinese
online games. According to unofficial statistics, MIR games have
annual revenue of more than RMB20
billion.
1. Thanks to all MIR games operators for their best efforts in
the past 10 years to keep MIR players in the MIR ecosystem;
2. MIR M is different from all the other MIR games on the
market. It uses Unreal Engine 4 to create and present top-level
graphics, and upgrade traditional MIR games;
3. As Father of MIR, Wemade is well aware of the truth that
Chinese games should be made in China. Wemade has formed a very experienced
Chinese game development team. They conducted in-depth research and
understand the preferences of Chinese MIR players. After about 2
years of dedicated creation, they have created the ultimate
MIR;
4. As the exclusive licensee of MIR M in China, The9 is well aware that the key to MIR
M success lies in the operators of MIR in the market and the MIR
fan groups they control. I believe that the new generation of MIR
and our originally created game marketing strategy will make the
influence of MIR IP in China even higher;
5. Our total sales target for MIR M in 2025 is RMB2 billion. We will continue to work with
different game operating companies to attract MIR type game users
to MIR M using this most effective way. The revenue commitment of
RMB600 million in the agreement with
Huanyu is just the beginning..."
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,
Bitcoin mining and AI investment businesses in
different industries.
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 18 million
game users, and more than 3.5 million paying users. The cumulative
user payment amount exceeded RMB 1.7
billion.
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SOURCE The9 Limited