The9 (NCTY) Strengthens Gaming Portfolio with Strategic Acquisition of Mobile Game Titles

The9 Expands Gaming Portfolio Through Strategic Acquisition

In a significant move to bolster its gaming division, The9 Limited (Nasdaq: NCTY) announces a strategic acquisition aimed at enhancing its presence in the mobile gaming market. On September 19, 2025, the company, via its subsidiary Shanghai The9 Information Technology Co., Ltd., secures a 51% stake in Shanghai ZhongShun HengXin Network Technology Co., Ltd.'s subsidiary, Shanghai ZhongXinShun Network Technology Co., Ltd. This acquisition is poised to provide The9 with exclusive rights to two promising mobile games: "Glory All Stars" and the anticipated title, "Ultraman: Hero Beyond Time." The former has already demonstrated robust commercial success with over RMB 2 billion in cumulative gross revenue, while the latter aims to leverage the iconic Ultraman brand to capture a wider audience.

The strategic rationale behind this joint venture lies in the substantial revenue generation potential of both titles. "Glory All Stars" has established a reliable revenue stream with a gross margin around 40%. Meanwhile, "Ultraman: Hero Beyond Time," which is still in its early phases, is designed to enhance gameplay and build upon the successful mechanics of its predecessor. The collaboration aims to not only maximize the profitability of these titles but also to create a sustainable franchise ecosystem that can support future game development efforts. Yu Su, CEO of ZhongShun, underscores the partnership's potential, expressing optimism that the new title could surpass "Glory All Stars" within three years, especially given the registered user base exceeding 2.5 million from its recent closed beta testing.

The financial structure of the joint venture is also noteworthy. The total consideration for the acquisition amounts to RMB 115 million (approximately US$16.2 million), comprising RMB 69 million in cash and RMB 46 million in restricted shares of The9, contingent on the joint venture’s profit performance over the next three years. This profit-sharing arrangement positions both parties to benefit from the success of the games, with after-tax profits distributed as quarterly dividends based on shareholding ratios. The9's investment strategy reflects its commitment to nurturing high-potential gaming properties that can drive long-term growth and shareholder value.

In addition to this acquisition, The9 aims to venture into the development of additional proprietary games, further solidifying its foothold in the competitive mobile gaming landscape. This move not only broadens The9's portfolio but also aligns with industry trends focusing on the monetization of established intellectual properties. As the gaming sector continues to evolve, The9's proactive approach in securing valuable content is likely to yield significant dividends in the years to come.

Overall, The9's acquisition of a majority stake in ZhongShun’s subsidiary is more than just a financial transaction; it represents a strategic pivot towards expanding its gaming capabilities and leveraging popular franchises to create lasting value in the mobile gaming market.