The9 Limited Continues Steps into the Blockchain Sector with Investments

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.



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



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.


Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.