The9 Limited (NASDAQ: NCTY), together with its subsidiaries, operates as an online game developer and operator in the People’s Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games.
The9 has stepped into blockchain-related business. On September 3rd the company announced it signed a definitive agreement with Leading Choice Holdings Limited, a company incorporated in Hong Kong and the shareholder of Leading Choice for the issuance and sale of 21,000,000 ordinary shares of the Company, to Leading Choice at US$0.714 per ordinary share, in exchange for a minority equity interest in Leading Choice.
Leading Choice is operating under the brand name “Easyhashing” and is engaged in the sales and system installation of assembled cryptocurrency mining equipment and provision of cryptocurrency mining equipment hosting and operating services.
Sept. 4, 2018. The9 Limited announced that the Chairman and CEO Mr. Jun Zhu has entered into a share purchase plan to purchase The9’s American depositary shares (“ADSs”) from the open market in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. Mr. Jun Zhu plans to purchase US$3 million worth of The9’s ADSs in this share purchase plan.
Earlier in May, the company entered into a term sheet with Plutux Limited, and a shareholder of Plutux for the issuance and sale of 12,500,000 ordinary shares of the Company, at US$1.2 per ordinary share, in exchange for a minority equity interest in Plutux.
The9 expects that this Transaction with Plutux will create synergies between The9’s blockchain-related services business and Plutux’s cryptocurrency exchange business. Going forward The9 expects to establish a complete ecosystem and business model to serve its blockchain partners’ projects more efficiently and effectively.
Products
The9 also develops and/or operates its proprietary mobile games, including the CrossFire New Mobile Games, Audition mobile, Fashion Pop and Q Jiang San Guo.
Games in operation:
The company is also developing the game Cross Fire 2
Home entertainment set top box
Mobile advertising business
Mobile app education business
About
The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People’s Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China.
Financial review
FYE 12-31-17 (US$ in thousands)
Revenues $11,252
Gross profit 7,588
Operating expenses (25,057)
Net loss (17,228)
Cash 21,921
Total assets 49,661
Total liabilities 125,946
Stock influences and risk factors
Successful entry into blockchain verticals could be a catalyst for the company shares.
They may continue to incur losses, negative cash flows from operating activities and net current liabilities in the future.
They may not be able to obtain additional financing to support the business and operations, and equity or debt financings may have an adverse effect on our business operations and share price.
Illegal game servers, unauthorized character enhancements and other infringements of their intellectual property rights, as well as theft of in-game goods, could harm their business and reputation and materially and adversely affect results of operations.
Stock chart
On Tuesday, September 4, 2018, NCTY shares were at $1.42 on traded volume of 8.4 million shares. The current RSI (14) is 78.87
At $1.42, NCTY shares are trading above their 50 DMA of $1.00 and below their 200 DMA of $1.63.
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