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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 2024
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Commission File Number: 001-34238
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THE9 LIMITED
17 Floor, No. 130 Wu Song Road
Hong Kou District, Shanghai 200080
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 x Form 40-F ¨
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release – The9 Limited Announces Unaudited Financial Information As of and For the Six Months Ended June 30, 2024 |
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/ George Lai |
|
| Name: | : | George Lai | |
| Title: | : | Director and Chief Financial Officer | |
Date: December 31, 2024
Exhibit 99.1
The9 Limited Announces Unaudited Financial
Information
As of and For the Six Months Ended June 30, 2024
In compliance with NASDAQ Rule 5250(c)(2), The9 Limited (the “Company”) hereby announces its unaudited condensed consolidated statements of operations for the six months ended June 30, 2024 and its unaudited condensed consolidated balance sheet as of June 30, 2024.
THE9 LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION
(Expressed in Renminbi - RMB and US Dollars - US$. All amounts in thousands, except for per share data, or otherwise noted.)
| Six months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note1) | ||||||||||||
| Revenues: | ||||||||||||
| Cryptocurrency mining revenue (Note3) | 91,491 | 91,332 | 12,568 | |||||||||
| Online game services and other revenues | 3,151 | 752 | 103 | |||||||||
| Total net revenues | 94,642 | 92,084 | 12,671 | |||||||||
| Cost of cyptocurrency mining(Note3) | (95,772 | ) | (79,416 | ) | (10,928 | ) | ||||||
| Cost of online game services and other revenues | (9,883 | ) | (5,689 | ) | (783 | ) | ||||||
| Total cost | (105,655 | ) | (85,105 | ) | (11,711 | ) | ||||||
| Gross profit (loss) | (11,013 | ) | 6,979 | 960 | ||||||||
| Operating income (expenses): | ||||||||||||
| Product development | (848 | ) | (405 | ) | (56 | ) | ||||||
| Sales and marketing | (1,617 | ) | (97 | ) | (13 | ) | ||||||
| General and administrative | (128,672 | ) | (59,237 | ) | (8,151 | ) | ||||||
| Impairment of cryptocurrency | (32,733 | ) | - | - | ||||||||
| Impairment of mining machines | (150,204 | ) | - | - | ||||||||
| Realized gain on exchange digital assets | 44,666 | 35,029 | 4,820 | |||||||||
| Fair value change on digital assets | - | 2,055 | 283 | |||||||||
| Total operating expenses | (269,408 | ) | (22,655 | ) | (3,117 | ) | ||||||
| Other operating expenses | - | (87 | ) | (12 | ) | |||||||
| Loss from operations | (280,421 | ) | (15,763 | ) | (2,169 | ) | ||||||
| Loss on disposal of subsidiaries | - | (9 | ) | (1 | ) | |||||||
| Gain (impairment) on other investments | 5,630 | (3,764 | ) | (518 | ) | |||||||
| Interest expenses, net | (23,751 | ) | (6,912 | ) | (951 | ) | ||||||
| Gain on FV of Derivative | 31,264 | 17,947 | 2,470 | |||||||||
| Gain on disposal of equity investee and available-for-sale investments | 1,112 | - | - | |||||||||
| Other income, net | 5,023 | 2,754 | 379 | |||||||||
| Foreign transaction exchange gain (loss) | (10,855 | ) | 3,685 | 507 | ||||||||
| Loss from continuing operations before income taxs and share of loss in equity method investments | (271,998 | ) | (2,062 | ) | (283 | ) | ||||||
| Income tax | - | - | - | |||||||||
| Share of loss in equity method investments | - | (330 | ) | (45 | ) | |||||||
| Loss from continuing operations | (271,998 | ) | (2,392 | ) | (328 | ) | ||||||
| Discontinued operations (Note2) | ||||||||||||
| Loss from discontinued operation | (1,412 | ) | - | - | ||||||||
| Net loss | (273,410 | ) | (2,392 | ) | (328 | ) | ||||||
| Net loss attributable to noncontrolling interest | (3,601 | ) | (2,618 | ) | (360 | ) | ||||||
| Net income (loss) attributable to The9 Limited | (269,809 | ) | 226 | 32 | ||||||||
| Other comprehensive loss: | ||||||||||||
| Currency translation adjustments | 1,255 | 629 | 87 | |||||||||
| Total comprehensive loss | (272,155 | ) | (1,763 | ) | (241 | ) | ||||||
| Comprehensive income (loss) attributable to: | ||||||||||||
| Noncontrolling interest | (3,601 | ) | (2,618 | ) | (360 | ) | ||||||
| The9 Limited | (268,554 | ) | 855 | 119 | ||||||||
| Net income (loss) attributable to holders of ordinary shares per share | ||||||||||||
| - Basic and diluted | (0.31 | ) | 0.00 | 0.00 | ||||||||
| Weighted average number of shares outstanding | ||||||||||||
| - Basic and diluted | 881,666 | 1,275,183 | 1,275,183 | |||||||||
THE9 LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION
(Expressed in Renminbi - RMB and US Dollars - US$. All amounts in thousands, except for share data, or otherwise noted.)
| As of December 31, 2023 |
As of June 30, 2024 |
As of June 30, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||
| (Note1) | ||||||||||||
| Assets | ||||||||||||
| Current Assets: | ||||||||||||
| Cash and cash equivalents | 45,222 | 14,248 | 1,961 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 56 | 145 | 20 | |||||||||
| Advances to suppliers | - | 1,000 | 138 | |||||||||
| Prepayments and other current assets, net of allowance for doubtful accounts | 28,911 | 62,060 | 8,540 | |||||||||
| Amounts due from related parties | 600 | 600 | 83 | |||||||||
| Cryptocurrencies | 87,714 | 54,676 | 7,524 | |||||||||
| Cryptocurrencies, restricted | 17,838 | 118,596 | 16,319 | |||||||||
| Total current assets | 180,341 | 251,325 | 34,585 | |||||||||
| Investments | 35,291 | 300,871 | 41,401 | |||||||||
| Call option assets | - | 5,207 | 716 | |||||||||
| Property, equipment and software, net | 94,329 | 62,748 | 8,634 | |||||||||
| Cryptocurrencies, restricted | 2,409 | - | - | |||||||||
| Operating lease right-of-use assets | 6,869 | 6,515 | 897 | |||||||||
| Other long-lived assets, net | 44,486 | 41,086 | 5,654 | |||||||||
| Total Assets | 363,725 | 667,752 | 91,887 | |||||||||
| Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity | ||||||||||||
| Current Liabilities: | ||||||||||||
| Accounts payable | 9,600 | 8,791 | 1,210 | |||||||||
| Other taxes payable | 1,502 | 1,494 | 206 | |||||||||
| Advances from customers | 12,714 | 11,578 | 1,593 | |||||||||
| Amounts due to related parties | 11,677 | 11,677 | 1,607 | |||||||||
| Convertible notes | 49,933 | 26,394 | 3,631 | |||||||||
| Conversion feature derivative liability | 28,605 | 10,658 | 1,467 | |||||||||
| Interest payables | 274 | 923 | 127 | |||||||||
| Short-term Bank borrowing | - | 74,836 | 10,298 | |||||||||
| Accrued expense and other current liabilities | 44,176 | 53,675 | 7,386 | |||||||||
| Current portion of operating lease liabilities of the consolidated VIE without recourse to the Group | 4,373 | 4,786 | 659 | |||||||||
| Deferred revenue | - | 314 | 43 | |||||||||
| Total current liabilities | 162,854 | 205,126 | 28,227 | |||||||||
| Convertible bonds | 16,746 | 16,746 | 2,304 | |||||||||
| Put option liability | - | 7,718 | 1,062 | |||||||||
| Non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group | 2,788 | 1,777 | 245 | |||||||||
| Total Liabilities | 182,388 | 231,367 | 31,838 | |||||||||
| Ordinary shares contingently redeemable | - | 102,638 | 14,124 | |||||||||
| Shareholders' Equity | ||||||||||||
| Class A ordinary shares (US$0.01 par value; 4,300,000,000 shares authorized, 1,391,618,893 and 2,787,963,278 shares issued and outstanding as of December 31, 2023 and June 30, 2024 respectively) | 95,375 | 201,977 | 27,793 | |||||||||
| Class B ordinary shares (US$0.01 par value; 600,000,000 shares authorized, 13,607,334 and 13,607,334 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively) | 944 | 944 | 130 | |||||||||
| Additional paid-in capital | 4,471,156 | 4,519,512 | 621,906 | |||||||||
| Statutory reserves | 7,327 | 7,327 | 1,008 | |||||||||
| Accumulated other comprehensive loss | (11,742 | ) | (11,899 | ) | (1,637 | ) | ||||||
| Accumulated deficit | (4,356,786 | ) | (4,356,560 | ) | (599,483 | ) | ||||||
| The9 Limited shareholders' equity | 206,273 | 361,301 | 49,717 | |||||||||
| Noncontrolling interest | (24,936 | ) | (27,554 | ) | (3,792 | ) | ||||||
| Total shareholder's equity | 181,337 | 333,747 | 45,925 | |||||||||
| Total liabilities, ordinary shares contingently redeemable and shareholders' equity | 363,725 | 667,752 | 91,887 | |||||||||
Note 1: The United States dollar (“US dollar” or “US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers at the rate of US$1.00 = RMB7.2672, representing the noon buying rate on the last trading day of June 2024 (June 30, 2024`) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
Note 2: Discontinued operations
In January 2023, the Company ceased operations of its NFT business. The decision was primarily a result of unfavorable financial performance. The Company reclassified the operations of NFT business as discontinued operations. The Company has reflected the reclassification of assets and liabilities of these entities as held for sale and the operations as discontinued operations as of and for the six months ended June 30, 2023. Loss from discontinued operations reflects the results of the NFT business, and does not include any allocation of general corporate overhead expense or interest expense of the Company.
Note 3: Reclassification of mining pool fee
The Company revised the accounting policy for fees deducted by the mining pool operator as stipulated in ASC 606-10-32-25, and reclassified the amount from cost of revenues and reflect as a reduction of cryptocurrency mining revenue for the six months ended June 30, 2023 and 2024. The reclassification has no impact on the Company’s gross profit (loss) and operating results for each respective period.
About The9 Limited
The9 Limited (The9) is an Internet company listed on Nasdaq in 2004. The9 is committed to become a global diversified high-tech Internet company and is engaged in online games operation and Bitcoin mining business.