UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2016

Commission File Number: 001-34238

 

 

THE9 LIMITED

 

 

Building No. 3, 690 Bibo Road

Zhangjiang Hi-tech Park, Pudong New Area

Shanghai 201203, People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

THE9 LIMITED
By:  

/s/ Jun Zhu

Name:   Jun Zhu
Title:   Chairman and Chief Executive Officer

Date: December 29, 2016


Exhibit Index

Exhibit 99.1—Press Release


Exhibit 99.1

The9 Limited Announces Unaudited Financial Information

As of and For the Six Months Ended June 30, 2016

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
RMB
    2016
RMB
    2016
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 noncontrolling 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.

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