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The9 Limited Announces Unaudited Financial Information as of and for the Six Months Ended December 31, 2017

SHANGHAI, April 27, 2018 /PRNewswire/ -- The9 Limited (the "Company") hereby announces its unaudited consolidated statement of income for the six months ended December 31, 2017 and its unaudited consolidated balance sheet as of December 31, 2017.

THE9 LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION







(Expressed in Renminbi - RMB and US Dollars - US$, except share data)









Six months
ended June 30,


Six months
ended December 31,



2017


2016


2017


2017



RMB
(unaudited)


RMB
(unaudited)


RMB
(unaudited)


US$
(Note)

Revenues:









  Online game services


14,764,789


27,910,283


56,799,234


8,729,882

  Other revenues


998,950


5,326,969


645,193


99,164



15,763,739


33,237,252


57,444,427


8,829,046

Sales taxes


(4,478)


(24,728)


(55,132)


(8,474)

Total net revenues


15,759,261


33,212,524


57,389,295


8,820,572

Cost of revenues


(10,022,806)


(20,183,093)


(13,759,248)


(2,114,758)

Gross profit


5,736,455


13,029,431


43,630,047


6,705,814

Operating expenses:









   Product development


(24,644,352)


(34,165,939)


(20,468,044)


(3,145,881)

   Sales and marketing


(5,438,769)


(9,903,014)


(3,651,200)


(561,179)

   General and administrative


(67,495,956)


(86,261,135)


(41,328,724)


(6,352,109)

Total operating expenses


(97,579,077)


(130,330,088)


(65,447,968)


(10,059,169)

      Other operating income 


175,880


3,441,107


174,074


26,755

Loss from operations


(91,666,742)


(113,859,550)


(21,643,847)


(3,326,600)

Impairment on other investment


-


(2,806,439)


(9,109,312)


(1,400,076)

Interest income (expenses), net


(42,754,204)


(23,236,767)


(41,137,471)


(6,322,713)

Fair value change on warrants liability


3,843,386


10,807,612


8,772,080


1,348,244

Gain (loss) on disposal of equity investee and available-for-sale
investment 


115,349


(1,217,405)


-


-

Foreign exchange gain (loss)


5,546,485


(8,835,965)


13,660,262


2,099,544

Other income (expenses), net


2,028,053


1,101,268


2,641,534


405,996

Loss before income tax expense and share of loss in equity
method investments


(122,887,673)

 


(138,047,026)

 


(46,816,754)

 


(7,195,605)

 

Income tax benefit


-


6,079,282


-


-

Recovery of equity investment in excess of cost


-


-


60,548,651


9,306,157

Share of loss in equity method investments


(1,472,283)


(80,579,942)


(1,464,848)


(225,143)

Net income (loss) for the period


(124,359,956)


(212,547,906)


12,267,049


1,885,409

Net (loss) gain attributable to noncontrolling interest


(8,122,462)


(13,307,081)


12,078,102


1,856,370

Net (loss) gain attributable to redeemable noncontrolling interest


(2,458,427)


(7,651,793)


4,575,730


703,277

Net loss attributable to The9 Limited


(113,779,067)


(191,589,032)


(4,386,783)


(674,238)

Change in redemption value of redeemable noncontrollling interest


(35,759,965)


(45,026,749)


(21,366,268)


(3,283,935)

Net loss attributable to holders of ordinary shares


(149,539,032)


(236,615,781)


(25,753,051)


(3,958,173)

Other comprehensive income (loss):









      Currency translation adjustments


731,780


(440,220)


(10,257,541)


(1,576,555)

Total comprehensive (loss) income


(123,628,176)


(212,988,126)


2,009,508


308,854

Comprehensive (loss) income attributable to:









      Noncontrolling interest


(4,221,606)


(12,439,886)


17,679,256


2,717,252

      Redeemable noncontrolling interest


(2,458,427)


(7,651,793)


4,575,730


703,277

      The9 Limited


(116,948,143)


(192,896,447)


(20,245,478)


(3,111,675)

Net loss attributable to holders of ordinary shares per share









- Basic 


(6.25)


(9.89)


(0.77)


(0.12)

- Diluted


(6.25)


(9.89)


(0.77)


(0.12)

Weighted average number of shares outstanding









- Basic 


23,915,501


23,915,501


33,426,448


33,426,448

- Diluted


23,915,501


23,915,501


33,426,448


33,426,448


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
=RMB6.5063, 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 December 31, 2017.


 

THE9 LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS INFORMATION

(Expressed in Renminbi - RMB and US Dollars - US$)



 As of December
31, 2016


As of December 31, 2017



RMB


RMB


US$



(audited)


(unaudited)


(Note)

Assets







Current Assets:







Cash and cash equivalents


38,878,076


142,624,020


21,920,911

Accounts receivable, net of allowance for doubtful
accounts of RMB992,010 and RMB1,039,958 as of
December 31, 2016 and 2017, respectively


8,607,120


2,607,568


400,776

 Advances to suppliers


9,085,165


8,102,278


1,245,297

Prepayments and other current assets


11,625,716


6,616,297


1,016,906

Amounts due from related parties


19,842,139


2,492,842


383,143

Assets classified as held for sale 


-


20,669,377


3,176,825

Total current assets


88,038,216


183,112,382


28,143,858

Investments in equity investees


163,037,501


48,243,558


7,414,899

Property, equipment and software, net


26,765,824


20,721,252


3,184,798

Land use right, net


66,431,476


64,510,566


9,915,092

Other long-lived assets, net


6,618,977


6,521,420


1,002,324

Total Assets


350,891,994


323,109,178


49,660,971








Liabilities, Redeemable Noncontrolling Interest
and Shareholders' Equity (Deficit)







Current Liabilities:







Short-term borrowing


107,517,367


108,743,369


16,713,550

Accounts payable


37,038,856


37,129,671


5,706,726

Other taxes payable


283,994


1,714,992


263,589

Advances from customers


26,711,967


47,558,542


7,309,614

Amounts due to related parties                 


107,203,023


88,939,108


13,669,691

Deferred revenue


15,921,873


5,576,269


857,057

Refund of game points


169,998,682


169,998,682


26,128,319

Warrants


16,357,737


3,742,271


575,177

Convertible notes


-


260,563,020


40,047,803

Interest payable


412,626


9,505,843


1,461,021

Accrued expense and other current liabilities


92,302,898


83,700,051


12,864,462

Liabilities directly associated with assets classified
as held for sale 


-


2,273,532


349,435

Total current liabilities


573,749,023


819,445,350


125,946,444

Long-term borrowing


35,141,459


-


-

Convertible notes


197,284,836


-


-

Total Liabilities


806,175,318


819,445,350


125,946,444








Redeemable Noncontrolling Interest


246,771,133


306,014,668


47,033,593

Shareholders' Equity (Deficits):







Ordinary shares (US$0.01 par value; 23,915,501 and
44,544,036 shares issued and outstanding as of
December 31, 2016 and 2017, respectively)


1,931,642


3,328,852


511,635

Additional paid-in capital


2,525,599,832


2,527,215,315


388,425,882

Statutory reserves


28,071,982


28,071,982


4,314,585

Accumulated other comprehensive income (loss)


2,582,023


(16,445,748)


(2,527,665)

Accumulated deficit


(2,897,802,287)


(3,015,968,137)


(463,545,816)

The9 Limited shareholders' deficit


(339,616,808)


(473,797,736)


(72,821,379)

Noncontrolling interest


(362,437,649)


(328,553,104)


(50,497,687)

Total shareholder's deficit


(702,054,457)


(802,350,840)


(123,319,066)

Total liabilities, redeemable noncontrolling
interest and shareholder's equity 


350,891,994


323,109,178


49,660,971















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
=RMB6.5063, 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 December 31, 2017.


 

About The9 Limited

The9 Limited is an Internet company based in China. The9 is stepping into blockchain-related business. The9 also develops and/or operates, directly or through its affiliates, its proprietary mobile games and web games, including the CrossFire New Mobile Game, Audition mobile, Knight Forever and Q Jiang San Guo.

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