Joint Undertaking Spouse Dedicated Annual Benefit of RMB80 Million and 50% Annual Expansion

SHANGHAI, Feb. 21, 2025 /PRNewswire/ — The9 Restricted (Nasdaq: NCTY) (“The9”), a longtime Web corporate, these days introduced that its wholly-owned subsidiary Shanghai The9 Knowledge Generation Co., Ltd. signed a Joint Undertaking contract (hereinafter known as the “Agreement”) with Chengdu Qing Cheng Community Science and Generation Co., Ltd. (hereinafter known as “Qing Cheng”), a well-known cell sport operation and distribution corporate that specialize in serving players in China’s sinking marketplace.

The9 will stock a 51% stake and Qing Cheng will stock a 49% stake within the Joint Undertaking. The Joint Undertaking will change into The9’s flagship subsidiary to function and distribute cell video games within the China’s sinking marketplace.

Qing Cheng dedicated that it’s going to make the most of its monopolistic and distinctive distribution channel benefits within the sinking markets to function other cell video games for the Joint Undertaking. It is going to additionally make the most of its strategic sport building companions to assure the Joint Undertaking gets steady provide of top of the range video games appropriate to the lower-tier markets. Qing Cheng dedicated to The9 that the Joint Undertaking can have an annual benefit of greater than RMB80 million (roughly US$11 million) in 2025, with benefit expanding by way of no less than 50% every year in 2026 and 2027. All after-tax earnings of the Joint Undertaking might be disbursed as dividends each and every quarter in line with the shareholding ratio of the Joint Undertaking companions.

The9 granted Qing Cheng The9 110,232,600 limited stocks (identical to 367,442 ADSs). Those limited stocks might be unlocked in levels in line with the original fulfillment of the Joint Undertaking’s 2025 benefit as dedicated by way of Qing Cheng. If 2025 benefit word of honour is accomplished, The9 will handover Qing Cheng the second one accumulation of limited stocks in line with this mechanism. If the 2026 benefit word of honour is accomplished, The9 will handover Qing Cheng the 3rd accumulation of limited stocks in line with this mechanism.

“According to the QuestMobile 2024 Sinking Market Insight Report, as 5G and mobile Internet applications continue to explode in China, the number of users in lower-tier markets, including third-tier and lower-tier cities, continues to grow. The number of mobile Internet users reached 647 million, accounting for 52.6% of the entire mobile Internet market in China. Our cooperation with Qing Cheng will definitely bring our mobile game operation and distribution businesses in China’s sinking market to the next level,” mentioned George Lai, Govt Director and CFO of The9.

“We have established a unique network covering third-tier and lower-tier cities through in-depth layout of offline distribution channels and designated gaming KOLs. Such sinking market channel advantage enables us to dominate the sinking market and form a competitive barrier that is difficult to replicate. We are using e-commerce way like “RMB10 billion subsidy” to regularly launch in-game discounts, points rewards and other activities to enhance gamers participation and loyalty in China’s sinking market. The only difference with e-commerce is that our incentive is virtual which does not increase our actual cost. We are committed to bring our Joint Venture with The9 to become a benchmark company in the field of mobile game operation and distribution in China’s lower-tier markets by continuously thinking from gamers’ perspective, optimizing our business model and expanding our market share. We aim to become the “Pinduoduo of cell gaming trade,” mentioned Peng Cheng Bin, CEO of Qing Cheng.

Barricade Harbor Commentary

This flow record incorporates forward-looking statements. Those statements are made underneath the “safe harbor” provisions of the US Non-public Securities Litigation Reform Employment of 1995. Those forward-looking statements may also be recognized by way of terminology corresponding to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and alike statements. Such statements are based totally upon control’s flow expectancies and flow marketplace and working statuses and relate to occasions that contain recognized or unknown dangers, uncertainties and alternative components, all of which might be tricky to expect and lots of of which might be past The9’s keep an eye on. The9 might also manufacture written or oral forward-looking statements in its periodic reviews to the U.S. Securities and Trade Fee (“SEC”), in its annual report back to shareholders, in press releases and alternative written fabrics and in oral statements made by way of its officials, administrators or staff to 3rd events. Statements that don’t seem to be ancient info, together with statements about The9’s ideals and expectancies, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. A variety of components may just motive original effects to fluctuate materially from the ones contained in any forward-looking commentary, together with however no longer restricted to refer to: The9’s objective and techniques; The9’s growth plans; The9’s pace industry building, monetary status and result of operations; The9’s expectancies relating to call for for, and marketplace acceptance of, its services and products; The9’s expectancies relating to holding and beneficial its relationships with industry companions it collaborates with; common financial and industry statuses; and guesses underlying or alike to any of the foregoing. Additional knowledge relating to those and alternative dangers is incorporated in The9’s filings with the SEC. All knowledge supplied on this announcement is as of the month hereof, and The9 does no longer adopt any legal responsibility to replace any forward-looking commentary, apart from as required underneath appropriate legislation.

The9 Restricted
17 Ground,
Deny. 130, Wu Music Highway,
Hong Kou District,
Shanghai 200080, PRC 

About The9 Restricted

The9 Restricted (The9) is an Web corporate indexed on Nasdaq in 2004. The9 is dedicated to change into a world diverse high-tech Web corporate and is preoccupied in on-line video games operation and Bitcoin mining industry.

About Chengdu Qing Cheng Community Science and Generation Co., Ltd.

Chengdu Qing Cheng Community Science and Generation Co., Ltd. (Qing Cheng) is a well-known cell sport operation and distribution corporate that specialize in serving players within the sinking markets in China. For the reason that status quo of commercial in 2020, the cumulative registered customers of Qing Cheng and its associate have reached 88.7 million, with MAU of five.9 million and DAU of 0.6 million. The cumulative person cost has amounted to RMB4.4billion.

SOURCE The9 Restricted