The9 Announces JV Acquisition to Operate Proprietary Mobile Games Ultraman: Hero Beyond Time and Glory All Stars

Rhea-AI Summary

The9 Limited (Nasdaq: NCTY) has announced a strategic acquisition of 51% equity in Shanghai ZhongXinShun Network Technology through its subsidiary. The deal, valued at approximately US$16.2 million (combining US$9.7M cash and US$6.5M in restricted shares), will be paid in installments based on profit achievements over 3 years.

The Joint Venture will operate two key mobile games: Glory All Stars, an action RPG that has generated over RMB2 billion in revenue with a 40% gross margin, and Ultraman: Hero Beyond Time, a new action RPG based on the Ultraman IP with 2.5 million registered users during beta testing. Quarterly dividends will be distributed according to shareholding ratios.

Positive

• Glory All Stars has proven success with RMB2 billion cumulative revenue and 40% gross margin
• Ultraman: Hero Beyond Time already has 2.5 million registered users in beta
• Payment structure is performance-based, reducing upfront investment risk
• Deal includes both existing successful game and new potential blockbuster
• Quarterly dividend distribution structure ensures regular returns

Negative

• Significant initial investment of US$16.2 million required
• Success heavily dependent on performance of just two main games
• Payment in restricted shares may lead to dilution for existing shareholders

Insights

Gaming Industry Analyst

The9's strategic acquisition gives it 51% control of two valuable mobile games with proven revenue model and strong IP backing.

The9 Limited is making a calculated move into the mobile gaming market by acquiring a 51% stake in a joint venture that controls two significant mobile game properties. The first asset, Glory All Stars, has already demonstrated market success with RMB2 billion (~US$280 million) in cumulative gross revenue since launch, maintaining a healthy 40% gross margin. This provides immediate revenue stability for the joint venture.

The second asset, Ultraman: Hero Beyond Time, represents potential future growth. Built on the same proven game mechanics as Glory All Stars but enhanced with the globally recognized Ultraman IP, this title has already secured 2.5 million registered users during beta testing. The Ultraman franchise brings substantial brand recognition that could significantly reduce user acquisition costs and improve conversion rates.

The deal structure reveals smart risk management by The9. The RMB115 million (~US$16.2 million) total consideration is structured as performance-based payments, with installments contingent on profit achievements over three years. This earnout structure aligns incentives between both parties and protects The9 from overpaying if performance targets aren't met. The payment mix of RMB69 million cash and RMB46 million in restricted shares further preserves The9's cash position while giving ZhongShun upside potential in The9's future growth.

The quarterly dividend distribution mechanism based on shareholding ratio provides The9 with a clear path to 51% of profits without complex accounting arrangements or profit-sharing structures. This transaction represents a sensible strategic expansion into mobile gaming with controlled downside risk and meaningful upside potential.

SHANGHAI, Sept. 19, 2025 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9"), an established Internet company, today announced that its wholly-owned subsidiary Shanghai The9 Information Technology Co., Ltd. has entered into a definitive agreement with Shanghai ZhongShun HengXin Network Technology Co., Ltd. ("ZhongShun") to acquire 51% equity of ZhongShun's wholly-owned subsidiary, Shanghai ZhongXinShun Network Technology Co., Ltd. (the "Joint Venture"). ZhongShun will contribute the exclusive rights of its two proprietary mobile games into the Joint Venture:

1. Glory All Stars – An action RPG that has achieved more than RMB2 billion cumulative gross revenue since its launch, with a stable gross margin of approximately 40%.
2. Ultraman: Hero Beyond Time – A newly developed action RPG title based on the globally renowned Ultraman IP, designed as an upgraded version of Glory All Stars with proven game play mechanics stability and strong IP-driven appeal.

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. The consideration of the Joint Venture's 51% equity includes RMB69 million (approximately US$9.7 million) and The9 restricted shares with a value of RMB46 million (approximately US$6.5 million). Both payment of cash and restricted shares are based on instalments and are only payable according to the actual achievement of the Joint Venture's profits as committed by ZhongShun in the coming 3 years.

"We are very excited to join forces with The9. Glory All Stars has already proven itself as a blockbuster title, generating more than RMB2 billion cumulative gross revenue over the past 4 years with a healthy 40% gross margin. Building on this foundation, Ultraman: Hero Beyond Time is positioned to become the next blockbuster success. With the Ultraman franchise massive global fan base and our data-driven design, we believe this title has the potential to surpass Glory All Star's lifetime performance within 3 years after launch. So far, we have over 2.5 million registered users since close beta test. 

"Beyond these two titles, the Joint Venture with The9 is also preparing additional proprietary games in our pipeline, in order to build a long-term franchise ecosystem. Together with The9's proven publishing strength and our development expertise, we are confident that the Joint Venture will continue to deliver more blockbuster games and create tremendous value to the shareholders," said Yu Su, CEO of ZhongShun.

Safe Harbor Statement

This current report contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond The9's control. The9 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: The9's goal and strategies; The9's expansion plans; The9's future business development, financial condition and results of operations; The9's expectations regarding demand for, and market acceptance of, its products and services; The9's expectations regarding keeping and strengthening its relationships with business partners it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in The9's filings with the SEC. All information provided in this announcement is as of the date hereof, and The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

The9 Limited
17 Floor,
No. 130, Wu Song Road,
Hong Kou District,
Shanghai 200080, PRC

About The9 Limited

The9 Limited (The9) is an Internet company listed on Nasdaq in 2004. The9 is committed to become a global diversified high-tech Internet company and is engaged in online games operation and Bitcoin mining business.

Website: www.the9.com 

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SOURCE The9 Limited

FAQ

What is the value of The9's acquisition of ZhongXinShun Network Technology?

The9 is acquiring 51% equity for approximately US$16.2 million, consisting of US$9.7 million in cash and US$6.5 million in restricted shares.

How much revenue has Glory All Stars generated for The9 (NCTY)?

Glory All Stars has generated over RMB2 billion in cumulative gross revenue with a stable gross margin of approximately 40%.

How many users does Ultraman: Hero Beyond Time have?

The game has accumulated over 2.5 million registered users since its close beta test.

What is the payment structure for The9's (NCTY) acquisition?

The payments will be made in installments of both cash and restricted shares, contingent upon the Joint Venture achieving specific profit targets over the next 3 years.

How will profits be distributed in The9's new Joint Venture?

All after-tax profits will be distributed as quarterly dividends according to the shareholding ratio between the Joint Venture partners.