The9 Limited announced a new Joint Venture agreement between its wholly-owned subsidiary and Chengdu Qing Cheng Network Science and Technology Co., Ltd. This JV will focus on mobile game operation and distribution in China's lower-tier cities, known as the 'sinking market.'
The9 will hold a 51% stake in the Joint Venture, making it a consolidated subsidiary. Qing Cheng, a leading mobile game operator in this market, committed to an annual profit of more than RMB80 million, approximately US$11 million, in 2025, with at least 50% annual growth in 2026 and 2027.
The sinking market in China comprises 647 million mobile internet users, accounting for 52.6% of the entire mobile internet market. Qing Cheng brings a unique network of offline distribution channels and designated gaming KOLs, along with 88.7 million cumulative registered users and RMB4.4 billion in cumulative user payments.
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