The9 Limited Achieved 66% Increase in Net Revenues and Turned Net Loss into Net Income for the Year Ended December 31, 2023

Rhea-AI Summary

The9 achieved a 66% increase in net revenues and turned net loss into net income for the year ended December 31, 2023. The company's net revenues rose from RMB108 million in 2022 to RMB179 million in 2023, while net income reached RMB13 million compared to a net loss of RMB975 million in 2022. The Chairman and CEO highlighted the growth in the cryptocurrency mining business and the company's entry into AI applications in various industries.

Positive

• The9 experienced a significant 66% increase in net revenues for the year ended December 31, 2023, reaching RMB179 million compared to RMB108 million in 2022.
• The company successfully turned its net loss into net income, reporting RMB13 million in net income for 2023, a positive shift from a net loss of RMB975 million in 2022.
• The Chairman and CEO, Jun Zhu, emphasized the growth of the cryptocurrency mining business and the company's expansion into AI applications across different industries.
• The total number of issued and outstanding shares of The9 is 1,675,281,127 as of the date of the press release.

Negative

• None.

Insights

Financial Analyst

The9's substantial revenue uptick by 66% and the remarkable shift from a significant net loss to a net income demonstrate a financial turnaround for the company. Investors might view this performance as an indicator of effective management and a successfully pivoting business model, particularly in the cryptocurrency mining sector. The conversion from net loss to profit suggests considerable cost control and perhaps an improved revenue mix. The focus on environmentally friendly and cost-effective energy sources for crypto mining may also resonate positively with investors who are increasingly conscious of sustainable practices.

Technology Industry Analyst

The advancement into Web3 gaming and AI applications signifies The9's strategic diversification. Web3, characterized by decentralization and blockchain technologies, represents a burgeoning field with significant growth potential. Solid player bases in Web3 games could translate into steady revenue streams. Further, AI's transformative potential across various industries indicates that The9's investments could be tapping into a high-growth area, aligning with global tech trends. This foresight might be appealing to investors seeking exposure to innovative tech sectors.

SHANGHAI, April 15, 2024 /PRNewswire/ -- The9 Limited (NASDAQ: NCTY) ("The9"), an established Internet company, today announced it filed its annual report on Form 20-F for the year ended December 31, 2023 with the United States Securities and Exchange Commission ("SEC"). The annual report, which contains The9's audited financial statements, can be assessed on the SEC's website at http://www.sec.gov as well as on the Investor Relations section of The9's website at http://www.the9.com.

Financial Highlights:

• Net revenues in 2023 increased by 66% year-over-year from RMB108 million in 2022 to RMB179 million (US$25 million) in 2023.
• Net income in 2023 was RMB13 million (US$ 2 million), compared to the net loss of RMB975 million in 2022.

Management Comments:

Commenting on the results of 2023, Jun Zhu, Chairman and Chief Executive Officer of The9 said, "We are glad to see a growth in our cryptocurrency mining business in 2023. While we continue to pursue this cash cow business and look for more environmental friendly and cost-effective energy for cryptocurrency mining, at the same time, the consensus and popularity of cryptocurrency is a trend that no one can stop. Web3 games with a solid player base are the first demonstration of the consensus, and we have begun to accelerate our participation in various new initiatives. In addition, we have been stepping in AI application business in different vertical industries. The revolutionary changes in every industry brought by GenAI have been clearly shown in the projects we have invested in."

As of the date hereof, the total number of issued and outstanding shares of The9 is 1,675,281,127 (equivalent to 5,584,270 ADSs), being the sum of 1,661,673,793 Class A ordinary shares and 13,607,334 Class B ordinary shares.

Safe Harbor Statement

This press release 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 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.

About The9 Limited

The9 Limited (The9) is an Internet company listed on Nasdaq in 2004. The9 aims to become a global diversified high-tech Internet company, and is engaged in blockchain business including the operation of cryptocurrency mining. The9 is also stepping into AI application business in different industries.

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SOURCE The9 Limited

FAQ

What was The9 's net revenue increase for the year ended December 31, 2023?

The net revenues for The9 increased by 66% for the year ended December 31, 2023, rising from RMB108 million in 2022 to RMB179 million in 2023.

What was The9 's net income for the year ended December 31, 2023?

The net income for The9 for the year ended December 31, 2023, was RMB13 million, compared to a net loss of RMB975 million in 2022.

Who commented on The9 's results for 2023?

Jun Zhu, the Chairman and Chief Executive Officer of The9, commented on the company's results for 2023.

What business areas did The9 mention in the press release?

The press release highlighted The9 's growth in the cryptocurrency mining business and its entry into AI applications in various industries.

How many issued and outstanding shares does The9 have?

As of the date of the press release, The9 has a total of 1,675,281,127 issued and outstanding shares.