The9 Establishes Another Joint Venture to Operate AI Mobile Advertising Business

Core Viewpoint - The9 Limited has entered into a Joint Venture with JiTuo, focusing on AI algorithms for mobile advertising, with projected annual profits exceeding RMB20 million and a commitment to 50% annual growth in the following years [1][3][5]. Group 1: Joint Venture Details - The9 will hold a 51% stake in the Joint Venture, while JiTuo will hold 49%, making it a consolidated subsidiary of The9 [2]. - JiTuo has committed to utilizing its AI model and data algorithm system to enhance advertising effectiveness for The9's upcoming games, including MIR M [3]. - The Joint Venture is expected to generate over RMB20 million (approximately US$2.8 million) in profit in 2025, with a minimum annual growth of 50% in 2026 and 2027 [3]. Group 2: Share Distribution and Performance Metrics - The9 will grant JiTuo 28,110,000 restricted shares, which will be unlocked based on the achievement of profit targets for 2025 and subsequent years [4]. - If the profit guarantee for 2025 is met, additional restricted shares will be granted, with further shares contingent on meeting 2026 profit targets [4]. Group 3: Strategic Importance - The establishment of this Joint Venture is part of The9's strategy to enhance its marketing capabilities for new games and improve financial results through consolidation of these ventures [5]. - JiTuo's expertise in AI algorithms and app store optimization is expected to significantly contribute to the success of The9's mobile advertising efforts [6][7].