The9 Limited Reports First and Second Quarter 2010 Unaudited Financial Results
Shanghai, China — August 24, 2010. The9 Limited (NASDAQ: NCTY) (“The9”), an online game operator
and developer in China, announced today its unaudited financial results for the quarters ended March 31 and
June 30, 2010.
First Quarter 2010
Second Quarter 2010
The decrease in year-over-year net revenues in both quarters was mainly due to the decrease in revenue from
World of Warcraft (“WoW”), for which the license agreement expired on June 7, 2009.
In January 2010, The9 launched its first proprietary 2D MMORPG, World of Fighter, which has been well
received by China domestic game players and licensed to Hong Kong, Macau, Taiwan, Korea, Vietnam and
In April 2010, The9 acquired a majority interest in Red 5 Studios, Inc., an online game studio based in Los
In June 2010, The9 set up The9 Interactive, Inc., a wholly owned subsidiary based in San Jose, to focus on
operating our proprietary games in the U.S. and searching for overseas business opportunity.
In June 2010, The9 and Sony Online Entertainment entered into an agreement pursuant to which The9 obtained an
exclusive license to operate Free Realms, a 3D cartoon fairy massively multiplayer online role-playing game in
Net revenues for the first quarter of 2010 increased by 6% quarter-over-quarter but decreased by 95
year-over-year to RMB22.1 million (US$3.3 million).
Net loss for the first quarter of 2010 decreased by 63% quarter-over-quarter but increased by 62%
year-over-year to RMB75.8 million (US$11.2 million).
Net revenues for the second quarter of 2010 increased by 15% quarter-over-quarter but decreased by
91% year-over-year to RMB25.4 million (US$3.7 million).
Net loss for the second quarter of 2010 decreased by 13% quarter-over-quarter and decreased by 17
year-over-year to RMB65.8 million (US$9.7 million).