The9 Forms JV With Shenzhen JiTuo To Boost Growth, Profitability; NCTY Up In Pre-Market

(RTTNews) - The9 Limited (NCTY), a Chinese internet company, said on Monday that its subsidiary Shanghai The9 Information Technology Co., Ltd. has inked a Joint Venture with Shenzhen JiTuo Interactive Technology Co., Ltd., an AI algorithms mobile advertising company in China.

George Lai, CFO of The9, said, "These Joint Ventures not only help us to promote our new games efficiently, but also contribute to The9's financial results of our new business line since we are consolidating these joint ventures."

Post transaction, The9 will hold a 51 percent stake, while JiTuo will own a 49 percent in the JV.

It is committed to The9 that the JV will have an annual profit of over RMB 20 million in 2025, with profit increasing by at least 50 percent annually in 2026 and 2027.

The9 granted JiTuo 28.110 million restricted shares. These restricted shares will be unlocked in stages according to the actual achievement of the JV.

The JV will become one of The9's consolidated subsidiaries to operate AI algorithms mobile advertising business and is expected to provide marketing solution to The9's upcoming new games including MIR M.

NCTY was up by 4.98 percent at $18.35 in the pre-market trade on the Nasdaq.