The9 (NCTY) announced that its wholly-owned subsidiary Shanghai The9 Information Technology Co., Ltd. signed an amendment agreement to joint venture agreement with its joint venture partner Zhejiang Huanyu Network Technology Co., Ltd., a Chinese game development and operation company. Huanyu originally committed that the Joint Venture will have game revenues of at least RMB600M and a profit of RMB200M in 2025. Based on the Agreement, Huanyu increased its commitment that the Joint Venture will have game revenues of at least RMB900M and a profit of RMB300M 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.
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