SHANGHAI, Dec. 28, 2016 /PRNewswire/ -- In compliance with
NASDAQ Rule 5250(c)(2), The9 Limited (the "Company") hereby announces its unaudited consolidated statement of income for the six
months ended June 30, 2016 and its unaudited consolidated balance sheet as of June 30, 2016.
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THE9 LIMITED
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
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(Expressed in Renminbi - RMB and US Dollars - US$, except share
data)
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Six months ended June 30,
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2015
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2016
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2016
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RMB
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RMB
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US$
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(Note)
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Revenues:
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Online game services
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21,603,037
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20,655,337
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3,107,982
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Other revenues
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2,739,854
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2,392,933
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360,062
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24,342,891
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23,048,270
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3,468,044
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Sales taxes
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(35,513)
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(61,508)
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(9,255)
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Total net revenues
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24,307,378
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22,986,762
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3,458,789
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Cost of revenues
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(34,687,456)
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(28,335,686)
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(4,263,634)
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Gross loss
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(10,380,078)
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(5,348,924)
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(804,845)
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Operating income (expenses):
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Product development
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(62,442,677)
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(43,825,469)
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(6,594,361)
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Sales and marketing
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(15,440,601)
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(11,383,633)
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(1,712,881)
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General and administrative
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(47,218,365)
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(42,786,711)
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(6,438,061)
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Impairment on equipment , intangible assets, other assets
and
allowance(reversal of allowance) of long-term receivable
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-
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(68,003,805)
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(10,232,445)
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Total operating income (expenses)
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(125,101,643)
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(165,999,618)
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(24,977,748)
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Other operating Income
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234,000
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163,642
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24,623
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Income (loss) from operations
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(135,247,721)
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(171,184,900)
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(25,757,970)
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Impairment on goodwill
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-
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(10,561,857)
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(1,589,229)
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Impairment on available-for-sale investment
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-
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(244,798,058)
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(36,834,448)
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Interest income (expenses), net
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993,177
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(33,073,698)
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(4,976,557)
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Fair value change on liability
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-
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37,249,592
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5,604,898
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Other expenses,net
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(1,265,193)
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(2,217,574)
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(333,675)
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Income (loss) before income tax expense and share of loss in
equity method investments
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(135,519,737)
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(424,586,495)
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(63,886,981)
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Income tax expenses
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-
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-
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-
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Share of loss in equity method investments
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(1,040,084)
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(29,955,544)
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(4,507,372)
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Net Income (loss) for the year
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(136,559,821)
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(454,542,039)
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(68,394,353)
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Net loss attributable to noncontrolling interest
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(6,973,714)
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(45,277,123)
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(6,812,790)
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Net loss attributable to redeemable noncontrolling
interest
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(15,573,811)
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(7,072,359)
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(1,064,169)
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Attributable net income (loss) to The9 Limited
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(114,012,296)
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(402,192,557)
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(60,517,394)
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Change in redemption value of redeemable noncontrollling
interest
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36,762,963
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37,863,439
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5,697,263
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Net income (loss) attributable to holders of ordinary shares
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(150,775,259)
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(440,055,996)
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(66,214,658)
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Other comprehensive income:
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Currency translation adjustments
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5,330,149
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(1,314,419)
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(197,779)
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Total comprehensive income (loss)
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(131,229,672)
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(455,856,458)
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(68,592,132)
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Comprehensive income (loss) attributable to:
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noncontrolling interest
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(6,112,278)
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(53,853,568)
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(8,103,277)
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redeemable noncontrolling
interest
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(15,573,811)
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(7,072,359)
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(1,064,169)
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The9 Limited
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(109,543,583)
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(394,930,531)
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(59,424,688)
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Net income (loss) attributable to holders of ordinary shares per
share
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- Basic
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(6.50)
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(18.46)
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(2.78)
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- Diluted
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(6.50)
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(18.46)
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(2.78)
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Weighted average number of shares outstanding
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- Basic
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23,201,601
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23,836,873
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23,836,873
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- Diluted
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23,201,601
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23,836,873
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23,836,873
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Note:The United States dollar ("US dollar" or "US$") amounts disclosed in
the accompanying financial statements are presented solely for
the convenience of the readers at the rate of US$1.00 = RMB6.6459, representing the noon buying rate in the City of New
York for cable
transfers of RMB, as certified for customs purposes by the Federal Reserve Bank of New York, on June 30, 2016.
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THE9 LIMITED
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UNAUDITED CONSOLIDATED BALANCE SHEETS INFORMATION
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(Expressed in Renminbi - RMB and US Dollars - US$)
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As of December 31,
2015
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As of June 30,
2016
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As of June 30,
2016
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RMB
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RMB
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US$
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(Note)
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Assets
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Current Assets:
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Cash and cash equivalents
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49,010,541
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21,928,254
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3,299,516
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Accounts receivable,net of allowance for doubtful
accounts of RMB991,743 and RMB920,169 as of
December 31, 2015 and June 30, 2016, respectively
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7,153,663
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6,419,920
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965,997
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Advances to suppliers
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898,126
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2,448,879
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368,480
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Prepayments and other current assets
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9,463,149
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7,642,645
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1,149,979
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Amounts due from related parties
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10,732,643
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21,108,274
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3,176,135
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Total current assets
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77,258,122
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59,547,972
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8,960,107
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Investments in equity investees
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267,539,694
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230,438,138
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34,673,729
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Property, equipment and software, net
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33,846,518
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30,566,869
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4,599,357
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Goodwill
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10,342,694
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-
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-
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Intangible assets, net
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78,876,486
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-
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-
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Land use right, net
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68,352,386
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67,391,931
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10,140,377
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Other long-lived assets, net
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1,879,021
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8,452,623
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1,271,855
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Total Assets
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538,094,921
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396,397,533
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59,645,425
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Liabilities and Shareholders' Equity
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Current Liabilities:
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Accounts payable
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41,248,455
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42,508,575
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6,396,210
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Other taxes payable
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551,445
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147,832
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22,244
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Advances from customers
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19,605,593
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23,764,942
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3,575,880
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Amounts due to related
parties
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77,730,267
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112,667,647
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16,952,956
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Deferred revenue
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18,552,217
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17,705,070
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2,664,059
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Refund of game points
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169,998,682
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169,998,682
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25,579,482
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Warrants
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64,414,941
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28,530,307
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4,292,918
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Short-term bank borrowing
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-
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24,992,214
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3,760,546
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Accrued expense and other current liabilities
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35,864,424
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34,483,796
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5,188,732
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Total current liabilities
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427,966,024
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454,799,065
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68,433,027
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Long-term debt
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31,726,575
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33,624,048
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5,059,367
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Convertible notes
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135,182,536
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166,781,200
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25,095,352
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Deferred tax liabilities, non-current
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5,690,705
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5,811,292
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874,418
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Total Liabilities
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600,565,840
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661,015,605
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99,462,164
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Redeemable noncontrolling interest
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178,605,097
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209,396,178
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31,507,573
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Ordinary shares (US$0.01 par value; 23,701,601
shares issued and outstanding as of December 31,
2015, 23,915,501 shares issued and outstanding as of
June 30, 2016)
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1,917,620
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1,931,637
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290,651
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Additional paid-in capital
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2,080,041,288
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2,548,050,327
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383,401,846
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Statutory reserves
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28,071,982
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28,071,982
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4,223,955
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Accumulated other comprehensive loss
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(3,372,588)
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3,889,437
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585,239
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Accumulated deficit
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(2,304,020,698)
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(2,706,213,255)
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(407,200,418)
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The9 Limited shareholders' equity (deficit)
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(197,362,396)
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(124,269,872)
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(18,698,727)
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Noncontrolling interest
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(43,713,620)
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(349,744,378)
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(52,625,585)
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Total shareholder's equity (deficit)
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(241,076,016)
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(474,014,250)
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(71,324,312)
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Total liabilities, redeemable noncontrolling
interest and equity (deficit)
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538,094,921
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396,397,533
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59,645,425
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Note:The United States dollar ("US dollar" or "US$") amounts disclosed in
the accompanying financial statements are presented solely for the
convenience of the readers at the rate of US$1.00 =RMB6.6459, representing the noon buying rate in the City of New York
for cable transfers
of RMB, as certified for customs purposes by the Federal Reserve Bank of New York, on June 30, 2016.
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About The9 Limited
The9 Limited is an online game developer and operator in China. The9 Limited develops and
operates, directly or through its affiliates, its proprietary MMO and mobile games including Firefall , Cross Fire brand new
mobile game and Song of Knights. The9 Limited's joint venture has obtained an exclusive license for publishing and operating
Cross Fire 2 in China. The9 Limited also engages in mobile advertising and mobile app education
businesses. The9 Limited has formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box
business.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other
things, the business outlook and quotations from management in this announcement contain forward-looking statements. The9 may
also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on
Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including
statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent
risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in
any forward-looking statement. Potential risks and uncertainties include, but are not limited to, political and economic policies
of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the
Internet and Internet content providers in China, intensified government regulation of Internet
cafes, The9's ability to retain existing players and attract new players, license, develop or acquire additional online games
that are appealing to users, anticipate and adapt to changing consumer preferences and respond to competitive market conditions,
and other risks and uncertainties outlined in The9's filings with the U.S. Securities and Exchange Commission, including its
annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required
under applicable law.
For further information, please contact:
Ms. Connie Sun
Investor Relations Specialist
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website: http://www.corp.the9.com/
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the9-limited-announces-unaudited-financial-information-as-of-and-for-the-six-months-ended-june-30-2016-300383767.html
SOURCE The9 Limited