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.
THE9
LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME INFORMATION
|
(Expressed in
Renminbi - RMB and US Dollars - US$, except share data)
|
|
Six months
ended June 30,
|
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
(Note)
|
Revenues:
|
|
|
|
|
|
|
Online game
services
|
|
21,603,037
|
|
20,655,337
|
|
3,107,982
|
Other
revenues
|
|
2,739,854
|
|
2,392,933
|
|
360,062
|
|
|
24,342,891
|
|
23,048,270
|
|
3,468,044
|
Sales
taxes
|
|
(35,513)
|
|
(61,508)
|
|
(9,255)
|
Total net
revenues
|
|
24,307,378
|
|
22,986,762
|
|
3,458,789
|
Cost of
revenues
|
|
(34,687,456)
|
|
(28,335,686)
|
|
(4,263,634)
|
Gross
loss
|
|
(10,380,078)
|
|
(5,348,924)
|
|
(804,845)
|
Operating income
(expenses):
|
|
|
|
|
|
|
Product
development
|
|
(62,442,677)
|
|
(43,825,469)
|
|
(6,594,361)
|
Sales
and marketing
|
|
(15,440,601)
|
|
(11,383,633)
|
|
(1,712,881)
|
General
and administrative
|
|
(47,218,365)
|
|
(42,786,711)
|
|
(6,438,061)
|
Impairment on equipment ,
intangible assets, other assets and
allowance(reversal of allowance) of long-term
receivable
|
|
-
|
|
(68,003,805)
|
|
(10,232,445)
|
Total operating
income (expenses)
|
|
(125,101,643)
|
|
(165,999,618)
|
|
(24,977,748)
|
Other operating
Income
|
|
234,000
|
|
163,642
|
|
24,623
|
Income (loss) from
operations
|
|
(135,247,721)
|
|
(171,184,900)
|
|
(25,757,970)
|
Impairment on
goodwill
|
|
-
|
|
(10,561,857)
|
|
(1,589,229)
|
Impairment on
available-for-sale investment
|
|
-
|
|
(244,798,058)
|
|
(36,834,448)
|
Interest income
(expenses), net
|
|
993,177
|
|
(33,073,698)
|
|
(4,976,557)
|
Fair value change on
liability
|
|
-
|
|
37,249,592
|
|
5,604,898
|
Other
expenses,net
|
|
(1,265,193)
|
|
(2,217,574)
|
|
(333,675)
|
Income (loss)
before income tax expense and share of loss in
equity method investments
|
|
(135,519,737)
|
|
(424,586,495)
|
|
(63,886,981)
|
Income tax
expenses
|
|
-
|
|
-
|
|
-
|
Share of loss in
equity method investments
|
|
(1,040,084)
|
|
(29,955,544)
|
|
(4,507,372)
|
Net Income (loss)
for the year
|
|
(136,559,821)
|
|
(454,542,039)
|
|
(68,394,353)
|
Net loss
attributable to noncontrolling interest
|
|
(6,973,714)
|
|
(45,277,123)
|
|
(6,812,790)
|
Net loss
attributable to redeemable noncontrolling interest
|
|
(15,573,811)
|
|
(7,072,359)
|
|
(1,064,169)
|
Attributable net
income (loss) to The9 Limited
|
|
(114,012,296)
|
|
(402,192,557)
|
|
(60,517,394)
|
Change in redemption
value of redeemable noncontrollling interest
|
|
36,762,963
|
|
37,863,439
|
|
5,697,263
|
Net income (loss)
attributable to holders of ordinary shares
|
|
(150,775,259)
|
|
(440,055,996)
|
|
(66,214,658)
|
Other comprehensive
income:
|
|
|
|
|
|
|
Currency translation
adjustments
|
|
5,330,149
|
|
(1,314,419)
|
|
(197,779)
|
Total
comprehensive income (loss)
|
|
(131,229,672)
|
|
(455,856,458)
|
|
(68,592,132)
|
Comprehensive income
(loss) attributable to:
|
|
|
|
|
|
|
noncontrolling
interest
|
|
(6,112,278)
|
|
(53,853,568)
|
|
(8,103,277)
|
redeemable
noncontrolling interest
|
|
(15,573,811)
|
|
(7,072,359)
|
|
(1,064,169)
|
The9
Limited
|
|
(109,543,583)
|
|
(394,930,531)
|
|
(59,424,688)
|
Net income (loss)
attributable to holders of ordinary shares per share
|
|
|
|
|
|
|
-
Basic
|
|
(6.50)
|
|
(18.46)
|
|
(2.78)
|
- Diluted
|
|
(6.50)
|
|
(18.46)
|
|
(2.78)
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
-
Basic
|
|
23,201,601
|
|
23,836,873
|
|
23,836,873
|
- Diluted
|
|
23,201,601
|
|
23,836,873
|
|
23,836,873
|
|
|
|
|
|
|
|
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$1.00 = RMB6.6459,
representing the noon buying rate in the City of New York for
cable
transfers of RMB, as certified for customs purposes by the Federal
Reserve Bank of New York, on June 30, 2016.
|
THE9
LIMITED
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS INFORMATION
|
(Expressed in
Renminbi - RMB and US Dollars - US$)
|
|
|
|
|
|
|
|
|
|
As of
December 31,
2015
|
|
As of June 30,
2016
|
|
As of June 30,
2016
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
(Note)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
49,010,541
|
|
21,928,254
|
|
3,299,516
|
Accounts
receivable,net of allowance for doubtful
accounts of RMB991,743 and
RMB920,169 as of
December 31, 2015 and
June 30, 2016, respectively
|
|
7,153,663
|
|
6,419,920
|
|
965,997
|
Advances to
suppliers
|
|
898,126
|
|
2,448,879
|
|
368,480
|
Prepayments
and other current assets
|
|
9,463,149
|
|
7,642,645
|
|
1,149,979
|
Amounts due
from related parties
|
|
10,732,643
|
|
21,108,274
|
|
3,176,135
|
Total current
assets
|
|
77,258,122
|
|
59,547,972
|
|
8,960,107
|
Investments in equity
investees
|
|
267,539,694
|
|
230,438,138
|
|
34,673,729
|
Property, equipment
and software, net
|
|
33,846,518
|
|
30,566,869
|
|
4,599,357
|
Goodwill
|
|
10,342,694
|
|
-
|
|
-
|
Intangible assets,
net
|
|
78,876,486
|
|
-
|
|
-
|
Land use right,
net
|
|
68,352,386
|
|
67,391,931
|
|
10,140,377
|
Other long-lived
assets, net
|
|
1,879,021
|
|
8,452,623
|
|
1,271,855
|
Total
Assets
|
|
538,094,921
|
|
396,397,533
|
|
59,645,425
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
41,248,455
|
|
42,508,575
|
|
6,396,210
|
Other taxes
payable
|
|
551,445
|
|
147,832
|
|
22,244
|
Advances from
customers
|
|
19,605,593
|
|
23,764,942
|
|
3,575,880
|
Amounts due to
related
parties
|
|
77,730,267
|
|
112,667,647
|
|
16,952,956
|
Deferred
revenue
|
|
18,552,217
|
|
17,705,070
|
|
2,664,059
|
Refund of game
points
|
|
169,998,682
|
|
169,998,682
|
|
25,579,482
|
Warrants
|
|
64,414,941
|
|
28,530,307
|
|
4,292,918
|
Short-term
bank borrowing
|
|
-
|
|
24,992,214
|
|
3,760,546
|
Accrued
expense and other current liabilities
|
|
35,864,424
|
|
34,483,796
|
|
5,188,732
|
Total current
liabilities
|
|
427,966,024
|
|
454,799,065
|
|
68,433,027
|
Long-term
debt
|
|
31,726,575
|
|
33,624,048
|
|
5,059,367
|
Convertible
notes
|
|
135,182,536
|
|
166,781,200
|
|
25,095,352
|
Deferred tax
liabilities, non-current
|
|
5,690,705
|
|
5,811,292
|
|
874,418
|
Total
Liabilities
|
|
600,565,840
|
|
661,015,605
|
|
99,462,164
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
178,605,097
|
|
209,396,178
|
|
31,507,573
|
Ordinary shares
(US$0.01 par value; 23,701,601
shares issued and outstanding as of
December 31,
2015, 23,915,501 shares issued and outstanding
as of
June 30, 2016)
|
|
1,917,620
|
|
1,931,637
|
|
290,651
|
Additional paid-in
capital
|
|
2,080,041,288
|
|
2,548,050,327
|
|
383,401,846
|
Statutory
reserves
|
|
28,071,982
|
|
28,071,982
|
|
4,223,955
|
Accumulated other
comprehensive loss
|
|
(3,372,588)
|
|
3,889,437
|
|
585,239
|
Accumulated
deficit
|
|
(2,304,020,698)
|
|
(2,706,213,255)
|
|
(407,200,418)
|
The9 Limited
shareholders' equity (deficit)
|
|
(197,362,396)
|
|
(124,269,872)
|
|
(18,698,727)
|
Noncontrolling
interest
|
|
(43,713,620)
|
|
(349,744,378)
|
|
(52,625,585)
|
Total
shareholder's equity (deficit)
|
|
(241,076,016)
|
|
(474,014,250)
|
|
(71,324,312)
|
Total liabilities,
redeemable noncontrolling
interest and equity
(deficit)
|
|
538,094,921
|
|
396,397,533
|
|
59,645,425
|
|
|
|
|
|
|
|
Note:The United
States dollar ("US dollar" or "US$") 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.
|
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