The9 Teams Up With JiTuo for AI-Driven Mobile Advertising Venture, Aims for $2.8M Profit With AI Solutions

The9 Limited (NASDAQ:NCTY) ("The9"), an established Internet company, today announced that its wholly-owned subsidiary Shanghai The9 Information Technology Co., Ltd. signed a Joint Venture agreement (hereinafter referred to as the "Agreement") with Shenzhen JiTuo Interactive Technology Co., Ltd. (hereinafter referred to as "JiTuo"), an AI algorithms mobile advertising company in China. JiTuo is a game development partner with AppLovin Corporation (NASDAQ:APP) in China. It is also an agency partner for Apple Search Ads in China.

The9 will hold a 51% stake and JiTuo will hold a 49% stake in the Joint Venture. The Joint Venture will become one of The9's consolidated subsidiaries to operate AI algorithms mobile advertising business, and is expected to provide marketing solution to The9's upcoming new games including MIR M.

Pursuant to the Agreement, JiTuo committed that it will utilize its advertising AI model and data algorithm system to assist The9's upcoming new games in optimizing advertising placement materials to enhance the conversion rate and accuracy of advertisements; optimizing the display effect and keywords in the app store to increase the conversion rate of app downloads and acquiring natural traffic. It also committed to The9 that the Joint Venture will have an annual profit of more than RMB20 million (approximately US$2.8 million) in 2025, with profit increasing by at least 50% annually in 2026 and 2027. All after-tax profits of the Joint Venture will be distributed as dividends every quarter according to the shareholding ratio of the Joint Venture partners.

The9 granted JiTuo The9 28,110,000 restricted shares (equivalent to 93,700 ADSs). These restricted shares will be unlocked in stages according to the actual achievement of the Joint Venture's 2025 profit as committed by JiTuo. If 2025 profit guarantee is achieved, The9 will grant JiTuo the second batch of restricted shares according to this mechanism. If the 2026 profit guarantee is achieved, The9 will grant JiTuo the third batch of restricted shares according to this mechanism.