Zhejiang Huanyu and The9 Establish Joint Venture and Signed Non-Exclusive Agreement to Operate New MIR Game with Annual Revenue Commitment of RMB600 Million, Profit Commitment of RMB200 Million and Annual Increase of 30%
The9 (NCTY) has announced a joint venture with Zhejiang Huanyu Network Technology to operate the new MIR game, MIR M, for mobile and PC. The9 will hold a 51% stake in the joint venture, which is expected to become a consolidated subsidiary. Huanyu has committed to annual revenue of RMB600 million (US$84 million) and profit of RMB200 million (US$28 million) for 2025, with a 30% annual increase in 2026 and 2027.
The9 will grant Huanyu restricted shares worth approximately RMB98 million, to be unlocked based on achieving business commitments. The company's total sales target for MIR M in 2025 is RMB2 billion. This partnership aims to leverage the MIR IP and attract existing MIR players to the new game.
The9 (NCTY) ha annunciato una joint venture con Zhejiang Huanyu Network Technology per operare il nuovo gioco MIR, MIR M, per mobile e PC. The9 deterrà una quota del 51% nella joint venture, che si prevede diventerà una sussidiaria consolidata. Huanyu si è impegnata a generare un fatturato annuale di 600 milioni di RMB (84 milioni di dollari) e un profitto di 200 milioni di RMB (28 milioni di dollari) per il 2025, con un incremento annuale del 30% previsto per il 2026 e 2027.
The9 concederà a Huanyu azioni vincolate dell'importo approssimativo di 98 milioni di RMB, che saranno sbloccate al raggiungimento degli obiettivi commerciali. L'obiettivo di vendita totale dell'azienda per MIR M nel 2025 è di 2 miliardi di RMB. Questa partnership mira a sfruttare l'IP di MIR e attrarre i giocatori esistenti di MIR verso il nuovo gioco.
The9 (NCTY) ha anunciado una empresa conjunta con Zhejiang Huanyu Network Technology para operar el nuevo juego MIR, MIR M, para móviles y PC. The9 tendrá una participación del 51% en la empresa conjunta, que se espera que se convierta en una subsidiaria consolidada. Huanyu se ha comprometido a generar ingresos anuales de 600 millones de RMB (84 millones de dólares) y un beneficio de 200 millones de RMB (28 millones de dólares) para 2025, con un aumento anual del 30% previsto para 2026 y 2027.
The9 otorgará a Huanyu acciones restringidas por aproximadamente 98 millones de RMB, que se desbloquearán al cumplir con los compromisos comerciales. El objetivo total de ventas de la empresa para MIR M en 2025 es de 2 mil millones de RMB. Esta asociación tiene como objetivo aprovechar la propiedad intelectual de MIR y atraer a los jugadores existentes de MIR hacia el nuevo juego.
The9 (NCTY)는 Zhejiang Huanyu Network Technology와 협력하여 모바일 및 PC용 새로운 MIR 게임인 MIR M을 운영한다고 발표했습니다. The9는 이 합작 회사에서 51%의 지분을 보유하게 되며, 이는 통합 자회사가 될 것으로 예상됩니다. Huanyu는 2025년까지 6억 위안 (8400만 달러)의 연간 수익과 2억 위안 (2800만 달러)의 이익을 약속했으며, 2026년과 2027년에는 연간 30%의 증가를 목표로 하고 있습니다.
The9는 Huanyu에게 약 9800만 위안의 제한된 주식을 부여할 예정이며, 이는 사업 약속을 달성함에 따라 해제될 것입니다. MIR M의 2025년 총 매출 목표는 20억 위안입니다. 이 파트너십은 MIR IP를 활용하고 기존 MIR 플레이어를 새로운 게임으로 유도하는 것을 목표로 하고 있습니다.
The9 (NCTY) a annoncé un partenariat avec Zhejiang Huanyu Network Technology pour exploiter le nouveau jeu MIR, MIR M, sur mobile et PC. The9 détiendra une participation de 51% dans la joint venture, qui devrait devenir une filiale consolidée. Huanyu s'est engagé à réaliser un chiffre d'affaires annuel de 600 millions de RMB (84 millions de dollars) et un bénéfice de 200 millions de RMB (28 millions de dollars) pour 2025, avec une augmentation annuelle de 30% prévue pour 2026 et 2027.
The9 accordera à Huanyu des actions restreintes d'une valeur d'environ 98 millions de RMB, libérées en fonction de l'atteinte des engagements commerciaux. L'objectif total de vente de l'entreprise pour MIR M en 2025 est de 2 milliards de RMB. Ce partenariat vise à tirer parti de la propriété intellectuelle de MIR et à attirer les joueurs existants de MIR vers le nouveau jeu.
The9 (NCTY) hat ein Joint Venture mit Zhejiang Huanyu Network Technology angekündigt, um das neue MIR-Spiel, MIR M, für Mobile und PC zu betreiben. The9 wird eine 51%-Beteiligung an dem Joint Venture halten, das voraussichtlich eine konsolidierte Tochtergesellschaft werden wird. Huanyu hat sich verpflichtet, für 2025 einen Jahresumsatz von 600 Millionen RMB (84 Millionen US-Dollar) und einen Gewinn von 200 Millionen RMB (28 Millionen US-Dollar) zu erzielen, mit einer jährlichen Steigerung von 30% für 2026 und 2027.
The9 wird Huanyu eingeschränkte Aktien im Wert von etwa 98 Millionen RMB gewähren, die basierend auf dem Erreichen von Geschäftsverpflichtungen freigegeben werden. Das Gesamziels des Unternehmens für den Verkauf von MIR M im Jahr 2025 beträgt 2 Milliarden RMB. Diese Partnerschaft zielt darauf ab, das MIR-IP zu nutzen und bestehende MIR-Spieler für das neue Spiel zu gewinnen.
- Joint venture with Huanyu gives The9 a 51% stake in operating the new MIR M game
- Committed annual revenue of RMB600 million and profit of RMB200 million for 2025
- 30% annual increase in revenue and profit committed for 2026 and 2027
- Total sales target of RMB2 billion for MIR M in 2025
- Strategy to leverage existing MIR player base and IP for new game success
- Issuance of restricted shares worth RMB98 million may lead to potential dilution for existing shareholders
- Performance-based share unlocking mechanism ties company's equity to future game performance
This joint venture between The9 and Huanyu represents a significant business opportunity in the Chinese gaming market. The
The equity-based incentive structure, with The9 granting restricted shares to Huanyu based on performance, aligns interests and mitigates downside risk. However, investors should note the potential dilution effect on existing shareholders. The
The partnership to operate MIR M marks a strategic move in the competitive MMORPG market. Utilizing Unreal Engine 4 for enhanced graphics demonstrates a commitment to modernizing the franchise, which could attract both nostalgic players and new audiences. The collaboration between Wemade's experienced Chinese development team and local operators like Huanyu leverages cultural understanding and existing player networks, potentially reducing user acquisition costs.
However, the success of MIR M will depend on its ability to differentiate from other MIR titles and mobile MMORPGs. The
The MIR franchise's strong performance in China, with over
However, the mobile gaming market in China is highly competitive and subject to regulatory risks. The success of MIR M will depend on its ability to capture and retain players in a saturated market. The
Pursuant to the Agreement, Huanyu promised to guide its existing MIR and related game users to the Joint Venture to ensure the smooth operation of MIR M by 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. Huanyu committed that the Joint Venture will have a game revenue of at least
The9 promised to grant Huanyu The9 restricted shares. The amount will be
Zhu Jun, Chairman and CEO of The9, said: "MIR is a benchmark product in the history of Chinese online games. According to unofficial statistics, MIR games have annual revenue of more than
1. Thanks to all MIR games operators for their best efforts in the past 10 years to keep MIR players in the MIR ecosystem;
2. MIR M is different from all the other MIR games on the market. It uses Unreal Engine 4 to create and present top-level graphics, and upgrade traditional MIR games;
3. As Father of MIR, Wemade is well aware of the truth that Chinese games should be made in
4. As the exclusive licensee of MIR M in
5. Our total sales target for MIR M in 2025 is
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
The9 Limited
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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, Bitcoin mining and AI investment businesses in different industries.
About Zhejiang Huanyu Network Technology Co., Ltd.
Zhejiang Huanyu Network Technology Co., Ltd. is a Chinese game development and operation company, mainly operating MIR and related games. The Group has more than 500 employees, more than 18 million game users, and more than 3.5 million paying users. The cumulative user payment amount exceeded
SOURCE The9 Limited
FAQ
What is the revenue commitment for The9's joint venture with Huanyu for MIR M in 2025?
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