omniture

The9 Limited Announces Unaudited Financial Information As of and For the Six Months Ended June 30, 2016

2016-12-28 16:00 2905

SHANGHAI, Dec. 28, 2016 /PRNewswire/ -- 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


2016


2016



RMB


RMB


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 noncontrollling 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.

For further information, please contact:

Ms. Connie Sun
Investor Relations Specialist
The9 Limited
Tel: +86 (21) 5172-9990
Email:
IR@corp.the9.com

Website: http://www.corp.the9.com/

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the9-limited-announces-unaudited-financial-information-as-of-and-for-the-six-months-ended-june-30-2016-300383767.html

Source: The9 Limited
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