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The9 Limited Increases Revenue and Profit Commitments

The report details that The9 Limited has enhanced its revenue and profit commitments through a joint venture agreement amendment with Zhejiang Huanyu Network Technology. This change signals improved expectations for financial performance in the gaming sector.

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AI Rating:   7

The amendment agreement between The9 Limited (NCTY) and Zhejiang Huanyu Network Technology indicates a significant increase in expected financial performance for their joint venture in the gaming industry.

The agreement originally set the game revenues at RMB 600 million and profits at RMB 200 million for 2025. However, the new amendment has raised these commitments to game revenues of at least RMB 900 million and profits of RMB 300 million. This positive change suggests a stronger confidence in the joint venture's operational and financial capabilities.

Additionally, the report mentions that both parties have agreed to maintain a committed growth of game revenues and profits by at least 30% annually in 2026 and 2027. This reflects a robust outlook for continued revenue expansion and profitability, which could positively influence investor sentiment towards The9 Limited. The involvement of the CEO of Huanyu further reinforces optimism regarding the operational efficiency and expected favorable performance of the venture, particularly highlighting the quality of the game MIR M and future collaborations.

Stocks:  NCTY