The9 Launches AI Marketing Joint Venture in Shanghai for 2025 Profit

On October 9, 2024, The9 Limited, a prominent Internet company based in China, announced the establishment of a joint venture with ShaoXing TongZe Network Technology Co., Ltd. This partnership aims to leverage AI algorithms and big data for marketing solutions, particularly for The9's upcoming game, MIR M. TongZe has committed to utilizing its technology to engage over 100 million potential users and achieve an annual profit exceeding RMB100 million (approximately US$14 million) by 2025. The joint venture will operate as a consolidated subsidiary of The9, with profits distributed quarterly based on shareholding ratios. The collaboration reflects a growing trend in the gaming industry, where AI is increasingly seen as a means to enhance marketing efficiency and reduce costs. George Lai, CFO of The9, emphasized the importance of this partnership in reaching targeted users more effectively. The agreement also includes provisions for restricted shares to be issued to TongZe, contingent on the joint venture's performance. This strategic move highlights The9's commitment to innovation and adapting to the evolving landscape of online gaming marketing in China, where traditional methods have proven to be less effective. As the gaming market continues to expand, the success of this joint venture could set a precedent for future collaborations in the industry.