The9 Limited boosts revenue and profit to shocking new highs

In Shanghai, on December 6, 2024, The9 Limited, a prominent internet company listed on NASDAQ, announced a significant amendment to its joint venture agreement with Zhejiang Huanyu Network Technology Co., Ltd. The initial agreement, established in September 2024, set a revenue target for the joint venture at a minimum of RMB600 million, with profits projected at RMB200 million for 2025. However, recent discussions led to a notable increase in these commitments. The new amendment now sees the revenue target raised to RMB900 million and profits increased to RMB300 million for the same year. This joint venture focuses on the operation of various games, including the anticipated launch of MIR M, a new title that represents the evolution of existing games in the MIR series. The9 retains the ability to collaborate with other companies to operate MIR M, but the joint venture has secured exclusive rights to publish, market, and distribute the game through designated channels on both iOS and Android platforms. The joint venture has also achieved an application receipt for the Internet Content Provider (ICP) license and is expected to receive this license soon, which is crucial for its operations in the game distribution sector. Liu Huan, CEO of Zhejiang Huanyu, expressed confidence in the financial performance of the joint venture, emphasizing that the smooth collaboration with The9 and preparation for the launch of MIR M led to this increased commitment. The amendment to the agreement reflects their optimism and the quality of the products they are developing together. The expectations surrounding the success of MIR M are high, and both companies are strategically positioned to leverage their strengths in the gaming market. As The9 Limited continues to expand its presence in the gaming industry, the improvement in forecasted revenue and profit demonstrates a commitment to strong financial performance and shareholder value. Their collaboration represents an important step towards commercial success in a competitive market. The agreement also highlights the increasing push among internet companies in China to engage in partnerships that enhance their market position and drive revenue growth in the gaming sector.