Joint Venture Partner Committed Annual Profit
of RMB100 Million in 2025
SHANGHAI, Oct. 9, 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 ShaoXing TongZe Network Technology Co., Ltd.
(hereinafter referred to as "TongZe"), an AI algorithms and big
data marketing service provider in China. The9 will hold a 51% stake and TongZe
will hold a 49% stake in the Joint Venture. The Joint Venture will
become one of The9's consolidated subsidiaries to operate AI
algorithms and big data marketing business, and is expected to
provide marketing solution to The9's upcoming new MIR game: MIR
M.
Pursuant to the Agreement, TongZe committed that it will utilize
its AI algorithms and big data to reach more than 100 million
relevant pan-MIR tag users and more than 30 million paid MIR users.
It also committed to The9 that the Joint Venture will have an
annual profit of more than RMB100
million (approximately US$14
million) in 2025. 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.
The9 will grant TongZe The9 restricted shares. The amount will
be RMB 42.5 million / US dollar to
RMB exchange rate on the date of issuance / NCTY share price on the
date of issuance. The restricted shares will be issued within 10
working days after the Joint Venture is established. These
restricted shares will be unlocked in stages according to the
actual achievement of the Joint Venture's 2025 profit as committed
by TongZe.
"We see that AI technology and applications have begun to bring
new ideas to the traditional marketing of online games in
China, which is too costly and
inefficient. Our cooperation with TongZe will utilize its mature AI
algorithms and big data to reach potential tagged MIR game users
directly for our new MIR game," said George
Lai, CFO of The9.
"We are dedicated to providing precise marketing services using
AI algorithms and big data. Through our proprietary accurate
traffic distribution platform, we help our customers to achieve
high user return, increase user stickiness, reduce operating costs
and increase efficiency. We are cooperating with leading Internet
companies such as ByteDance, Tencent,
Alibaba and Baidu, to cover millions of tag users in different
categories according to customers' needs. We can reach more than 10
million people per day, providing an average of 15,000+ new
registered users per day for customers across the industry. We
believe our joint venture with The9 will bring MIR M to next level
and we have 100% confidence the joint venture can make our
committed profit of RMB100 million in
next year," said Cai Guo Qing, CEO
of TongZe.
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 AI
investment businesses in different industries.
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SOURCE The9 Limited