Report of Foreign Issuer (6-k)
December 29 2016 - 6:06AM
Edgar (US Regulatory)
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, Peoples 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.
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THE9 LIMITED
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By:
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/s/ Jun Zhu
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Name:
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Jun Zhu
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Title:
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Chairman and Chief Executive Officer
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Date: December 29, 2016
Exhibit Index
Exhibit 99.1Press 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$, except share data)
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Six months ended June 30,
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2015
RMB
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2016
RMB
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2016
US$
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(Note)
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Revenues:
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Online game services
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21,603,037
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20,655,337
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3,107,982
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Other revenues
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2,739,854
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2,392,933
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360,062
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24,342,891
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23,048,270
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3,468,044
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Sales taxes
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(35,513
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(61,508
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(9,255
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Total net revenues
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24,307,378
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22,986,762
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3,458,789
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Cost of revenues
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(34,687,456
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(28,335,686
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(4,263,634
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Gross loss
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(10,380,078
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(5,348,924
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(804,845
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Operating income (expenses):
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Product development
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(62,442,677
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(43,825,469
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(6,594,361
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Sales and marketing
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(15,440,601
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(11,383,633
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(1,712,881
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General and administrative
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(47,218,365
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(42,786,711
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(6,438,061
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Impairment on equipment, intangible assets, other assets and allowance (reversal of allowance) of
long-term receivable
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(68,003,805
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(10,232,445
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Total operating income (expenses)
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(125,101,643
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(165,999,618
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(24,977,748
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Other operating Income
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234,000
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163,642
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24,623
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Income (loss) from operations
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(135,247,721
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(171,184,900
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(25,757,970
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Impairment on goodwill
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(10,561,857
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(1,589,229
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Impairment on
available-for-sale
investment
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(244,798,058
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(36,834,448
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Interest income (expenses), net
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993,177
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(33,073,698
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(4,976,557
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Fair value change on liability
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37,249,592
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5,604,898
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Other expenses, net
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(1,265,193
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(2,217,574
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(333,675
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Income (loss) before income tax expense and share of loss in equity method
investments
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(135,519,737
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(424,586,495
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(63,886,981
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Income tax expenses
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Share of loss in equity method investments
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(1,040,084
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(29,955,544
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(4,507,372
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Net Income (loss) for the year
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(136,559,821
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(454,542,039
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(68,394,353
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Net loss attributable to noncontrolling interest
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(6,973,714
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(45,277,123
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(6,812,790
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Net loss attributable to redeemable noncontrolling interest
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(15,573,811
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(7,072,359
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(1,064,169
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Attributable net income (loss) to The9 Limited
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(114,012,296
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(402,192,557
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(60,517,394
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Change in redemption value of redeemable noncontrolling interest
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36,762,963
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37,863,439
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5,697,263
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Net income (loss) attributable to holders of ordinary shares
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(150,775,259
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(440,055,996
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(66,214,658
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Other comprehensive income:
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Currency translation adjustments
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5,330,149
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(1,314,419
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(197,779
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Total comprehensive income (loss)
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(131,229,672
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(455,856,458
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(68,592,132
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Comprehensive income (loss) attributable to:
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noncontrolling interest
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(6,112,278
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(53,853,568
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(8,103,277
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redeemable noncontrolling interest
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(15,573,811
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(7,072,359
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(1,064,169
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The9 Limited
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(109,543,583
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(394,930,531
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(59,424,688
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Net income (loss) attributable to holders of ordinary shares per share
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- Basic
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(6.50
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(18.46
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(2.78
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- Diluted
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(6.50
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(18.46
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(2.78
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Weighted average number of shares outstanding
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- Basic
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23,201,601
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23,836,873
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23,836,873
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- Diluted
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23,201,601
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23,836,873
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23,836,873
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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$1.00 =RMB6.6459, representing the noon buying rate in the City of New York for cable transfers of RMB, as certified for customs purposes by the Federal Reserve Bank
of New York, on June 30, 2016.
THE9 LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS INFORMATION
(Expressed in Renminbi - RMB and US Dollars - US$)
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As of December 31,
2015
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As of June 30, 2016
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As of June 30, 2016
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RMB
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RMB
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US$
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(Note)
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Assets
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Current Assets:
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Cash and cash equivalents
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49,010,541
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21,928,254
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3,299,516
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Accounts receivable, net of allowance for doubtful accounts of RMB991,743 and RMB920,169 as of
December 31, 2015 and June 30, 2016, respectively
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7,153,663
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6,419,920
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965,997
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Advances to suppliers
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898,126
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2,448,879
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368,480
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Prepayments and other current assets
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9,463,149
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7,642,645
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1,149,979
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Amounts due from related parties
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10,732,643
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21,108,274
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3,176,135
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Total current assets
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77,258,122
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59,547,972
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8,960,107
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Investments in equity investees
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267,539,694
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230,438,138
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34,673,729
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Property, equipment and software, net
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33,846,518
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30,566,869
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4,599,357
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Goodwill
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10,342,694
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Intangible assets, net
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78,876,486
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Land use right, net
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68,352,386
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67,391,931
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10,140,377
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Other long-lived assets, net
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1,879,021
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8,452,623
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1,271,855
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Total Assets
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538,094,921
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396,397,533
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59,645,425
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Liabilities and Shareholders Equity
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Current Liabilities:
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Accounts payable
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41,248,455
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42,508,575
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6,396,210
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Other taxes payable
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551,445
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147,832
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22,244
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Advances from customers
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19,605,593
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23,764,942
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3,575,880
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Amounts due to related parties
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77,730,267
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112,667,647
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16,952,956
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Deferred revenue
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18,552,217
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17,705,070
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2,664,059
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Refund of game points
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169,998,682
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169,998,682
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25,579,482
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Warrants
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64,414,941
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28,530,307
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4,292,918
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Short-term bank borrowing
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24,992,214
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|
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3,760,546
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Accrued expense and other current liabilities
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35,864,424
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|
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34,483,796
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5,188,732
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Total current liabilities
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427,966,024
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454,799,065
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68,433,027
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Long-term debt
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31,726,575
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33,624,048
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5,059,367
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Convertible notes
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135,182,536
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166,781,200
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25,095,352
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Deferred tax liabilities,
non-current
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|
5,690,705
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|
|
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5,811,292
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874,418
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|
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|
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Total Liabilities
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600,565,840
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661,015,605
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99,462,164
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|
|
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|
|
|
|
|
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Redeemable noncontrolling interest
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|
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178,605,097
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|
|
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209,396,178
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|
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31,507,573
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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)
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|
1,917,620
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|
|
|
1,931,637
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|
|
|
290,651
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Additional
paid-in
capital
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|
|
2,080,041,288
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|
|
|
2,548,050,327
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|
|
|
383,401,846
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|
Statutory reserves
|
|
|
28,071,982
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|
|
|
28,071,982
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|
|
|
4,223,955
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Accumulated other comprehensive loss
|
|
|
(3,372,588
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)
|
|
|
3,889,437
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|
|
|
585,239
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|
Accumulated deficit
|
|
|
(2,304,020,698
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)
|
|
|
(2,706,213,255
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)
|
|
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(407,200,418
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)
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|
|
|
|
|
|
|
|
|
|
|
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The9 Limited shareholders equity (deficit)
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|
|
(197,362,396
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)
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|
|
(124,269,872
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)
|
|
|
(18,698,727
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)
|
Noncontrolling interest
|
|
|
(43,713,620
|
)
|
|
|
(349,744,378
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)
|
|
|
(52,625,585
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity (deficit)
|
|
|
(241,076,016
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)
|
|
|
(474,014,250
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)
|
|
|
(71,324,312
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, redeemable noncontrolling interest and equity (deficit)
|
|
|
538,094,921
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|
|
|
396,397,533
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|
|
|
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 Limiteds 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 The9s 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, The9s 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
The9s 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.
The9 (NASDAQ:NCTY)
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