Joint Project 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, as of late introduced that its wholly-owned subsidiary Shanghai The9 Data Era Co., Ltd. signed a Joint Project commitment (hereinafter known as the “Agreement”) with Chengdu Qing Cheng Community Science and Era Co., Ltd. (hereinafter known as “Qing Cheng”), a prominent cellular recreation operation and distribution corporate specializing in serving players in China’s sinking marketplace.

The9 will reserve a 51% stake and Qing Cheng will reserve a 49% stake within the Joint Project. The Joint Project will turn into The9’s flagship subsidiary to function and distribute cellular video games within the China’s sinking marketplace.

Qing Cheng dedicated that it’ll make the most of its monopolistic and distinctive distribution channel benefits within the sinking markets to function other cellular video games for the Joint Project. It’s going to additionally make the most of its strategic recreation construction companions to assure the Joint Project gets steady provide of high quality video games appropriate to the lower-tier markets. Qing Cheng dedicated to The9 that the Joint Project could have an annual benefit of greater than RMB80 million (roughly US$11 million) in 2025, with benefit expanding through a minimum of 50% once a year in 2026 and 2027. All after-tax earnings of the Joint Project will likely be disbursed as dividends each quarter in keeping with the shareholding ratio of the Joint Project companions.

The9 granted Qing Cheng The9 110,232,600 limited stocks (identical to 367,442 ADSs). Those limited stocks will likely be unlocked in phases in keeping with the untouched fulfillment of the Joint Project’s 2025 benefit as dedicated through Qing Cheng. If 2025 benefit oath is completed, The9 will serve Qing Cheng the second one bundle of limited stocks in keeping with this mechanism. If the 2026 benefit oath is completed, The9 will serve Qing Cheng the 3rd bundle of limited stocks in keeping 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,” stated George Lai, Government 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 cellular gaming business,” stated Peng Cheng Bin, CEO of Qing Cheng.

Defend Harbor Commentary

This wave record comprises forward-looking statements. Those statements are made underneath the “safe harbor” provisions of the USA Personal Securities Litigation Reform Business of 1995. Those forward-looking statements may also be recognized through terminology reminiscent of “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. Such statements are primarily based upon control’s wave expectancies and wave marketplace and working situations and relate to occasions that contain identified or unknown dangers, uncertainties and alternative components, all of that are tricky to are expecting and lots of of that are past The9’s keep an eye on. The9 may additionally manufacture written or oral forward-looking statements in its periodic reviews to the U.S. Securities and Change Fee (“SEC”), in its annual report back to shareholders, in press releases and alternative written fabrics and in oral statements made through its officials, administrators or workers to 3rd events. Statements that don’t seem to be historic information, 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 reason untouched effects to vary materially from the ones contained in any forward-looking remark, together with however now not restricted to please see: The9’s purpose and methods; The9’s growth plans; The9’s month industry construction, monetary situation and result of operations; The9’s expectancies referring to call for for, and marketplace acceptance of, its services; The9’s expectancies referring to retaining and nutritious its relationships with industry companions it collaborates with; basic financial and industry situations; and suppositions underlying or matching to any of the foregoing. Additional data referring to those and alternative dangers is incorporated in The9’s filings with the SEC. All data equipped on this announcement is as of the month hereof, and The9 does now not adopt any legal responsibility to replace any forward-looking remark, apart from as required underneath appropriate legislation.

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About The9 Restricted

The9 Restricted (The9) is an Web corporate indexed on Nasdaq in 2004. The9 is dedicated to turn into an international varied high-tech Web corporate and is in demand in on-line video games operation and Bitcoin mining industry.

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

Chengdu Qing Cheng Community Science and Era Co., Ltd. (Qing Cheng) is a prominent cellular recreation operation and distribution corporate specializing in serving players within the sinking markets in China. For the reason that status quo of industrial 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