(RTTNews) - The9 Limited (NCTY), an Internet company, announced Friday that its unit Shanghai The9 Information Technology Co., Ltd. signed a joint venture agreement with Zhejiang Huanyu Network Technology Co., Ltd., a Chinese game development and operation company.
The JV will become a consolidated subsidiary of The9 to operate the mobile and PC versions of the new MIR game: MIR M.
In the JV, The9 holds a 51 percent stake and Huanyu holds a 49 percent stake.
All after-tax profits of the JV will be distributed as dividends every quarter according to the shareholding ratio of the JV partners.
The company noted that Huanyu has committed that the JV Venture will have a game revenue of at least RMB600 million or around $84 million, and a profit of RMB200 million or around $28 million in 2025. The game revenue and profit will increase by at least 30 percent annually in 2026 and 2027.
The9 promised to grant Huanyu The9 restricted shares. The amount will be RMB 98 million. The shares will be issued 5 working days after the Joint Venture submits all relevant materials for applying for the Internet Content Provider license to the local government and obtains an application receipt.
Zhu Jun, Chairman and CEO of The9, said, "MIR is a benchmark product in the history of Chinese online games. According to unofficial statistics, MIR games have annual revenue of more than RMB20 billion."
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