EX-99.1 2 tv520169_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

The9 Limited Announces Unaudited Financial Information
as of and for the Six Months Ended December 31, 2018

 

The9 Limited (the “Company”) hereby announces its unaudited consolidated statement of income for the six months ended December 31, 2018 and its unaudited consolidated balance sheet as of December 31, 2018.

 

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, 
    2018    2017    2018    2018 
    RMB
(unaudited)
    RMB
(unaudited)
    RMB
(unaudited)
    US$
(Note)
 
Revenues:                    
  Online game services   9,948,160    56,799,234    6,602,920    960,355 
  Other revenues   543,277    645,193    398,058    57,895 
    10,491,437    57,444,427    7,000,978    1,018,250 
Sales taxes   (31,351)   (55,132)   (29,206)   (4,248)
Total net revenues   10,460,086    57,389,295    6,971,772    1,014,002 
Cost of revenues   (8,364,700)   (13,759,248)   (8,070,890)   (1,173,862)
Gross profit   2,095,386    43,630,047    (1,099,118)   (159,860)
Operating (expenses) income:                    
   Product development   (12,171,876)   (20,468,044)   (12,383,432)   (1,801,095)
   Sales and marketing   (1,516,067)   (3,651,200)   (809,751)   (117,773)
   General and administrative   (28,016,337)   (41,328,724)   (61,566,994)   (8,954,548)
   Gain on disposal of subsidiaries   10,275,703    -    197,456    28,719 
Total operating expenses   (31,428,577)   (65,447,968)   (74,562,721)   (10,844,697)
      Other operating income, net   112,530    174,074    117,008    17,018 
Loss from operations   (29,220,661)   (21,643,847)   (75,544,831)   (10,987,539)
Impairment on equity investment and available-for-sale investment   -    -    (1,386,174)   (201,611)
Impairment on other investments   -    (9,109,312)   (7,776,157)   (1,130,995)
Interest (expenses) income, net   (51,110,526)   (41,137,471)   (53,472,220)   (7,777,212)
Fair value change on warrants liability   2,919,044    8,772,080    (667,617)   (97,101)
Foreign exchange (loss) gain   (6,625,009)   13,660,262    (13,706,421)   (1,993,516)
Other income, net   448,182    2,641,534    1,150,481    167,331 
Loss before income tax expense and share of loss in equity method investments   (83,588,970)   (46,816,754)   (151,402,939)   (22,020,643)
Income tax benefit   -    -    -    - 
Recovery of equity investment in excess of cost   -    60,548,651    -    - 
Share of loss in equity method investments   (1,627,241)   (1,464,848)   (2,665,646)   (387,702)
Net (loss) income for the period   (85,216,211)   12,267,049    (154,068,585)   (22,408,345)
Net (loss) gain attributable to noncontrolling interest   (7,520,240)   12,078,102    (8,812,728)   (1,281,758)
Net (loss) gain attributable to redeemable noncontrolling interest   (2,701,193)   4,575,730    (3,157,709)   (459,270)
Net loss attributable to The9 Limited   (74,994,778)   (4,386,783)   (142,098,148)   (20,667,317)
Change in redemption value of redeemable noncontrollling interest   (22,913,753)   (21,366,268)   (18,005,020)   (2,618,722)
Net loss attributable to holders of ordinary shares   (97,908,531)   (25,753,051)   (160,103,168)   (23,286,039)
Other comprehensive loss,net of tax:                    
      Currency translation adjustments   (302,161)   (10,257,541)   (1,012,104)   (147,204)
Total comprehensive (loss) income   (85,518,372)   2,009,508    (155,080,689)   (22,555,549)
Comprehensive (loss) income attributable to:                    
      Noncontrolling interest   (4,570,583)   17,679,256    (20,317,842)   (2,955,108)
      Redeemable noncontrolling interest   (2,701,193)   4,575,730    (3,157,709)   (459,270)
      The9 Limited   (78,246,596)   (20,245,478)   (131,605,138)   (19,141,171)
Net loss attributable to holders of ordinary shares per share                    
- Basic   (2.17)   (0.77)   (2.58)   (0.38)
- Diluted   (2.17)   (0.77)   (2.58)   (0.38)
Weighted average number of shares outstanding                    
- Basic   45,172,579    33,426,448    62,114,760    62,114,760 
- Diluted   45,172,579    33,426,448    62,114,760    62,114,760 

 

Note: The United States dollar (“U.S. 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 = RMB6.8755, representing the noon buying rate on the last trading day of December 2018 (December 31, 2018) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

 

 

 

THE9 LIMITED            

UNAUDITED CONSOLIDATED BALANCE SHEETS INFORMATION        

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

 

  

As of December

31, 2017

   As of December 31, 2018 
   RMB   RMB   US$ 
   (audited)   (unaudited)   (Note) 
Assets            
Current Assets:               
Cash and cash equivalents   142,624,020    4,256,449    619,075 
Accounts receivable, net of allowance for doubtful accounts of RMB1,039,958 and RMB1,149,864 as of December 31, 2017 and 2018, respectively   2,607,568    592,897    86,233 
Advances to suppliers   8,102,278    15,808,042    2,299,184 
Prepayments and other current assets   6,616,297    6,148,787    894,304 
Amounts due from related parties   2,492,842    6,207,846    902,894 
Assets held for sale   20,669,377    -    - 
Total current assets   183,112,382    33,014,021    4,801,690 
Investments   48,243,558    45,216,118    6,576,412 
Property, equipment and software, net   20,721,252    17,352,445    2,523,808 
Land use right, net   64,510,566    62,589,656    9,103,288 
Other long-lived assets, net   6,521,420    6,515,200    947,597 
Total Assets   323,109,178    164,687,440    23,952,795 
                
Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity (Deficit)               
Current Liabilities:               
Short-term borrowings   108,743,369    112,461,383    16,356,830 
Accounts payable   37,129,671    38,035,661    5,532,057 
Other taxes payable   1,714,992    2,949,082    428,926 
Advances from customers   47,558,542    39,631,950    5,764,228 
Amounts due to related parties   88,939,108    71,849,633    10,450,096 
Deferred revenue   5,576,269    159,125    23,144 
Refund of game points   169,998,682    169,998,682    24,725,283 
Warrants   3,742,271    1,490,844    216,834 
Convertible notes   260,563,020    375,257,140    54,578,887 
Interest payable   9,505,843    15,298,961    2,225,142 
Accrued expenses and other current liabilities   83,700,051    81,291,306    11,823,330 
Liabilities directly associated with assets held for sale   2,273,532    -    - 
Total current liabilities   819,445,350    908,423,767    132,124,757 
Total Liabilities   819,445,350    908,423,767    132,124,757 
                
Redeemable Noncontrolling Interest   306,014,668    341,074,539    49,607,234 
Shareholders' Equity (Deficit):               
Ordinary shares (US$0.01 par value; 44,544,036 and 91,315,465 shares issued and outstanding as of December 31, 2017 and 2018, respectively)   3,328,852    6,502,658    945,772 
Additional paid-in capital   2,527,215,315    2,496,069,065    363,038,188 
Statutory reserves   28,071,982    28,071,982    4,082,900 
Accumulated other comprehensive loss   (16,445,748)   (9,204,556)   (1,338,746)
Accumulated deficit   (3,015,968,137)   (3,233,061,063)   (470,229,228)
The9 Limited shareholders' deficit   (473,797,736)   (711,621,914)   (103,501,114)
Noncontrolling interest   (328,553,104)   (373,188,952)   (54,278,082)
Total shareholders' deficit   (802,350,840)   (1,084,810,866)   (157,779,196)
Total liabilities, redeemable noncontrolling interest and shareholders' equity(deficit)   323,109,178    164,687,440    23,952,795 

 

Note: The United States dollar (“U.S. 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 = RMB6.8755, representing the noon buying rate on the last trading day of December 2018 (December 31, 2018) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

 

 

 

About The9 Limited

 

The9 Limited is an Internet company based in China listed on Nasdaq in 2004. The9 has aimed to become a diversified high-tech Internet company.