The9 subsidiary signs joint venture agreement with ShaoXing TongZe Network

The9 announced that its wholly-owned subsidiary Shanghai The9 Information Technology signed a joint venture agreement with ShaoXing TongZe Network Technology, an AI algorithms and big data marketing service provider in China. The9 will hold a 51% stake and TongZe will hold a 49% stake in the joint venture. The joint venture will become one of The9’s consolidated subsidiaries to operate AI algorithms and big data marketing business, and is expected to provide marketing solution to The9’s upcoming new MIR game: MIR M. Pursuant to the agreement, TongZe committed that it will utilize its AI algorithms and big data to reach more than 100M relevant pan-MIR tag users and more than 30M paid MIR users. It also committed to The9 that the joint venture will have an annual profit of more than RMB100M in 2025. 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. The9 will grant TongZe The9 restricted shares. The amount will be RMB 42.5M / U.S. dollar to RMB exchange rate on the date of issuance / NCTY share price on the date of issuance. The restricted shares will be issued within 10 working days after the joint venture is established. These restricted shares will be unlocked in stages according to the actual achievement of the joint venture’s 2025 profit as committed by TongZe.