My Market Wizard

The9 LTD 6-K Analysis & Summary – 2/21/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

The9 Limited – American Deposit

Filing date:

02/21/2025

TLDR:

The9 establishes a joint venture with Chengdu Qing Cheng Network to focus on mobile game operation and distribution in China’s sinking market, with Qing Cheng committing to annual profit targets.

ELI5:

The9, a company that works with the internet, is partnering with another company to make and sell mobile games to people in smaller cities in China. The partner promises to make a lot of money from this, and if they do well, they’ll get even more shares in the company.

Accession #:

0001104659-25-015899

Published on

Analyst Summary

  • The9 establishes a joint venture with Chengdu Qing Cheng Network Science and Technology Co., Ltd.
  • The joint venture will focus on mobile game operation and distribution in China’s sinking market.
  • Qing Cheng committed to an annual profit of more than RMB80 million (approximately US$11 million) in 2025, with profit increasing by at least 50% annually in 2026 and 2027.
  • The9 will hold a 51% stake and Qing Cheng will hold a 49% stake in the Joint Venture.

Potential Implications

Company Performance

  • The joint venture is expected to enhance The9’s mobile game operation and distribution businesses in China’s sinking market.
  • The partnership aims to capitalize on the growing number of mobile internet users in lower-tier markets in China.
  • Achievement of profit targets by the joint venture will result in The9 granting restricted shares to Qing Cheng.

Stock Price

  • Positive news regarding the joint venture and its potential profitability could positively impact The9’s stock price.
  • The granting of restricted shares to Qing Cheng based on performance may incentivize Qing Cheng and positively influence investor sentiment.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️