$NCTY

The9 LTD

CIK:0001296774|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥) ¥ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2024 CNY (¥) ¥ / shares shares	Dec. 31, 2023 CNY (¥) ¥ / shares shares
Net revenues:
Revenue	¥ 107,898,000	$ 15,429	¥ 111,714,000	¥ 174,045,000
Total net revenues	107,898,000	15,429	111,714,000	174,045,000
Cost of revenues:
Total cost of revenues	(106,089,000)	(15,170)	(113,318,000)	(213,179,000)
Gross profit (loss)	1,809,000	259	(1,604,000)	(39,134,000)
Operating income (expenses):
Product development	(9,798,000)	(1,401)	(856,000)	(1,970,000)
Sales and marketing	(33,951,000)	(4,855)	(246,000)	(1,729,000)
General and administrative	(205,816,000)	(29,431)	(157,832,000)	(196,790,000)
Impairment on advance and other assets	(7,807,000)	(1,116)	(794,000)
Impairment on equipment	0		(6,505,000)	(161,002,000)
Realized gain on exchange cryptocurrencies	10,627,000	1,520	60,783,000	42,836,000
Fair value change on cryptocurrencies	(36,178,000)	(5,173)	48,290,000	40,036,000
Total operating expenses	(282,923,000)	(40,456)	(57,160,000)	(278,619,000)
Loss from operations	(281,114,000)	(40,197)	(58,764,000)	(317,753,000)
Loss on disposal of subsidiaries	(1,502,000)	(215)	(11,606,000)	(282,000)
Impairment on equity investments	(41,629,000)	(6,000)	0	0
Impairment on other investments	(64,960,000)	(9,289)
Changes in fair value on other investments	(300,000)	(40)	(7,160,000)	3,490,000
Interest income	449,000	64
Interest expense	(23,264,000)	(3,327)	(34,224,000)	(31,379,000)
Gain (loss) on fair value of derivative, option assets and liabilities	(5,733,000)	(820)	45,037,000	23,171,000
Gain on extinguishment of convertible notes	1,203,000	172
Gain (loss) on disposal of equity investee and available-for-sale investments		0	(7,704)	1,666,000
Gain on disposal of other investment	3,400,000	486
Foreign currency exchange gain (loss)	2,989,000	427	(713,000)	(6,816,000)
Gain on extinguished liabilities of WoW				175,302,000
Other income (expenses), net	2,204,000	316	(5,082,000)	8,324,000
Loss from continuing operations before income tax expense and share of loss in equity method investments	(408,235,000)	(58,376)	(72,520,000)	(144,277,000)
Income tax expense	(110,000)	(16)
Share of loss in equity method investments	(600,000)	(82)	(1,122,000)	0
Loss from continuing operations	(408,916,000)	(58,474)	(73,642,000)	(144,277,000)
Discontinued operations:
Loss from discontinued operations, net of tax				(1,956,000)
Gain on disposal of discontinued operations, net of tax				158,809,000
Gain from discontinued operations, net				156,853,000
Net income (loss)	(408,916,000)	(58,474)	(73,642,000)	12,576,000
Net loss attributable to noncontrolling interest	(6,470,000)	(925)	(218,000)	(7,427,000)
Net income(loss) attributable to The9 Limited ordinary shareholders	(402,446,000)	(57,549)	(73,424,000)	20,003,000
Other comprehensive income (loss), net of tax:
Currency translation adjustments	(34,000)	(5)	(148,000)	785,000
Total comprehensive income (loss)	(408,950,000)	(58,479)	(73,790,000)	13,361,000
Comprehensive income (loss) attributable to:
Noncontrolling interest	(6,470,000)	(925)	(218,000)	(7,427,000)
The9 Limited	¥ (402,480,000)	$ (57,554)	¥ (73,572,000)	¥ 20,788,000
Net income (loss) per share attributable to The9 Limited ordinary shareholders:
Continuing operations - Basic \| (per share)	¥ (0.18)	$ (0.03)	¥ (0.05)	¥ (0.14)
Continuing operations - Diluted \| (per share)	(0.18)	(0.03)	(0.05)	(0.14)
Discontinued operations - Basic \| ¥ / shares				0.16
Discontinued operations - Diluted \| ¥ / shares				0.16
Total - Basic \| (per share)	(0.18)	(0.03)	(0.05)	0.02
Total - Diluted \| (per share)	¥ (0.18)	$ (0.03)	¥ (0.05)	¥ 0.02
Weighted average number of ordinary shares outstanding:
Weighted average number of shares outstanding, Basic \| shares	2,273,782	2,273,782	1,403,166	1,010,895
Weighted average number of shares outstanding, Diluted \| shares	2,273,782	2,273,782	1,403,166	1,010,895
Third parties
Operating income (expenses):
Interest income	¥ 40,773,000		¥ 39,577,000
Cryptocurrency mining revenue
Net revenues:
Revenue	56,352,000	$ 8,058	110,739,000	¥ 168,324,000
Cost of revenues:
Total cost of revenues	(67,960,000)	(9,718)	(106,464,000)	(191,928,000)
Online game services and other revenues \| Third parties
Net revenues:
Revenue	43,692,000	6,248	975,000	5,721,000
Cost of revenues:
Total cost of revenues	(31,208,000)	(4,462)	¥ (6,854,000)	¥ (21,251,000)
Online game services and other revenues \| Related party
Net revenues:
Revenue	7,854,000	1,123
Cost of revenues:
Total cost of revenues	¥ (6,921,000)	$ (990)

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)	Dec. 31, 2023 CNY (¥)
Cash flows from operating activities:
Net income (loss)	¥ (408,916,000)	$ (58,474)	¥ (73,642,000)	¥ 12,576,000
Adjustments to reconcile net income(loss) to net cash used in operating activities:
Loss (gain) on disposal of property, equipment and software	(1,071,000)	(152)	7,345,000	(50,000)
Loss on disposal of subsidiaries	1,502,000	215	11,606,000	282,000
Amortization of deferred loan costs	2,606,000	373
Gain on disposal of discontinued operations, net				(158,809,000)
Non-cash other income	(257,000)	(37)	(2,033,000)	(2,519,000)
Share-based compensation expenses	116,053,000	16,595	44,675,000	70,760,000
Impairment on equity investments	41,629,000	6,000	0	0
Changes in fair value on other investments	300,000	40	7,160,000	(3,490,000)
Impairment on advance and other assets	7,807,000	1,116	794,000	4,383,000
Impairment loss of equipment, intangible assets and long-lived assets	0		6,505,000	161,002,000
Impairment on other investments	64,960,000	9,289
Gain on extinguished liabilities of WoW				(175,302,000)
Gain (loss) from change in fair value of conversion feature derivative liability	5,733,000	820	(45,037,000)	(23,171,000)
Depreciation and amortization of property, equipment and software	13,600,000	2,000	61,464,000	86,866,000
Share of loss in equity method investments	600,000	82	1,122,000	0
(Gain) loss on disposal of investment in equity investee and available-for-sales investment			8,000	(1,666,000)
Gain on disposal of other investment	(3,400,000)	(486)
Foreign currency exchange loss	(2,989,000)	(427)	713,000	6,816,000
Non-cash interest expense on convertible notes	16,252,000	2,324	30,289,000	25,967,000
Amortization of intangible assets	1,539,000	220
Gain on extinguishment of convertible notes	(1,203,000)	(172)
Non-cash lease expense	4,502,000	644	4,384,000	4,975,000
Cryptocurrency mining revenue	(56,352,000)	(8,058)	(110,739,000)	(168,324,000)
Receipt of BTC from operating activities			(1,107,000)
Realized gain on exchange of cryptocurrencies	(10,627,000)	(1,520)	(60,783,000)	(42,836,000)
Change in fair value of cryptocurrencies	36,178,000	5,173	(48,290,000)	(40,036,000)
Receipt of ETH from operating activities			(4,000)	(433,000)
Receipt of USDT from exchange of other cryptocurrencies	(16,886,000)	(2,415)	(65,718,000)	(705,000)
Receipt of USDC from operating activities	(15,933,000)	(2,278)
Interest income-Cryptocurrencies			(87,296,000)	(131,000)
Payment in cryptocurrencies for operating activities	88,310,000	12,628	104,186,000	153,167,000
Sale of cryptocurrencies for cash	67,948,000	9,716	109,023,000	70,539,000
Interest expense	2,974,000	425	1,194,000
Sale of cryptocurrencies for other cryptocurrencies	16,886,000	2,415	65,710,000
Changes in operating assets and liabilities:
Change in accounts receivable	(10,973,000)	(1,569)	(54,000)	95,000
Change in advances to suppliers	(2,350,000)	(336)		30,000
Change in other long-lived assets	(151,000)	(22)
Change in operating lease right-of-use assets			(3,597,000)
Change in prepayments and other current assets	2,016,000	288	(3,020,000)	673,000
Change in accounts payable	6,951,000	994	(1,256,000)	2,368,000
Change in amounts due from related parties	426,000	61
Change in other taxes payable	139,000	20	(36,000)	(149,000)
Change in advances from customers	(3,246,000)	(464)	222,000	267,000
Change in interest payable			1,243,000	(2,432,000)
Change in accrued expenses and other current liabilities	8,366,000	1,196	1,690,000	(21,213,000)
Change in operating lease liabilities	(4,612,000)	(659)	(918,000)	(5,820,000)
Net cash used in operating activities	(31,756,000)	(4,540)	(44,197,000)	(46,320,000)
Cash flows from investing activities
Loan to a related party	(7,132,000)	(1,020)
Proceeds from disposal of other investments	3,400,000	486	5,000	5,163,000
Proceeds from disposal of property, equipment and software	89,000	13	145,000	4,000
Refund from subscribed tokens and other investment				1,500,000
Purchase of short term investment	(3,360,000)	(480)
Proceeds from sales of short term investment	2,500,000	357
Purchase of equity method investments			(10,641,000)
Purchase of other investments			(28,445,000)
Refund (purchase) of license asset	9,000,000	1,287	(9,000,000)
Refund (purchase) of deferred royalty costs	9,000,000	1,287	(9,000,000)
Cash disposed of upon deconsolidation of subsidiary	(426,000)	(61)	(82,000)	(85,000)
Purchase of intangible assets	(10,510,000)	(1,503)
Purchase of property, equipment and software	(1,446,000)	(207)		(2,112,000)
Net cash provided by (used in) investing activities	1,115,000	159	(57,018,000)	4,470,000
Cash flows from financing activities:
Proceeds from issuance of convertible notes	78,358,000	11,205		85,349,000
Proceeds from BTC Mortgage loan			87,296,000
Loans from a related party			814,000
Contributions from noncontrolling interest	1,144,000	164
Repayment of loans / advances due to a related party			(2,834,000)	(9,482,000)
Proceeds from other loans				1,434,000
Repayments of other loans				(2,195,000)
Contribution from shareholders			1,099,000	262,000
Acquisition of noncontrolling interest	(490,000)	(70)
Proceeds from issuance of ordinary shares	31,504,000	4,505	17,783,000
Repayments of BTC Mortgage loan	(32,048,000)	(4,583)
Repayments of convertible notes			(34,390,000)	(42,903,000)
Net cash provided by financing activities	78,468,000	11,221	69,768,000	32,465,000
Effect of foreign exchange rate changes on cash and cash equivalents	(249,000)	(36)	(2,864,000)	(3,457,000)
Net change in cash and cash equivalents	47,578,000	6,804	(34,311,000)	(12,842,000)
Cash and cash equivalents, beginning of year	10,911,000	1,560	45,222,000	58,064,000
Cash and cash equivalents, end of year	58,489,000	8,364	10,911,000	45,222,000
Supplemental disclosure of cash flow information:
Interest paid	1,432,000	205	1,561,000	5,533,000
Income taxes paid	134,000	19
Non-cash investing and financing activities
Property, equipment and software acquired through prepayment	39,841,000	5,697
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	13,354,000	1,910	1,798,000	(218,000)
Property and equipment acquired on credit as liabilities				198,637,000
Receipt of USDT from disposal of mining machines and subsidiaries	1,651,000	236	2,283,000	8,731,000
Cumulative effect from the adoption of ASU 2023-08				1,531,000
Conversion of convertible notes into ordinary shares	53,388,000	7,634	18,161,000	¥ 24,822,000
Restricted ordinary shares issued in exchange for investments			230,478,000
Receipt of USDT from BTC Mortgage borrowing, net of deferred loan cost of RMB 3.5 million and RMB 0.9 million for the years ended December 31, 2025 and 2024, respectively	176,214,000	25,198	87,296,000
Receipt of BTC from investors	33,937,000	4,853
Call option assets			15,843,000
Put option liabilities	1,811,000	259	¥ (1,923,000)
Receipt of USDT from investors	4,263,000	610
Repayment of BTC Mortgage borrowing	57,225,000	8,183
Intangible assets acquired through accounts payable	7,000,000	1,001
Issuance of shares for acquisition of noncontrolling interest	15,000,000	2,145
Non-cash unwind of investments and related share arrangements	3,877,000	554
Cancellation of contingently redeemable shares	¥ 15,613,000	$ 2,233

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 58,489	$ 8,364	¥ 10,911
Advances to suppliers	¥ 1,620	$ 232
Amounts due from related parties			¥ 600
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]	Related party	Related party	Related party
Cryptocurrencies	¥ 13,673	$ 1,955	¥ 12,192
Cryptocurrencies, restricted	238,533	34,110	193,938
Total current assets	342,439	48,968	243,688
Investments	171,558	24,532	297,223
Call option assets	0		15,843
Property, equipment and software, net	43,582	6,232	16,549
Operating lease right-of-use assets, net	11,836	1,693	4,283
Convertible notes receivable-related party	7,306	1,045
Intangible assets	15,801	2,259
License asset			9,000
Deferred royalty costs			9,000
Other long-lived assets	1,226	175	41,058
TOTAL ASSETS	593,748	84,904	636,644
Current liabilities:
Other taxes payable	1,434	205	1,466
Advances from customers	5,924	847	10,228
Amounts due to related parties	¥ 9,658	$ 1,381	¥ 9,658
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related party	Related party	Related party
Loan, net of deferred loan cost of nil and RMB 842 as of December 31, 2024 and 2025, respectively	¥ 174,500	$ 25,000	¥ 89,100
Convertible notes	48,152	6,886	43,061
Conversion feature derivative liability	24,589	3,516
Interest payable	3,941	564	1,480
Accrued expenses and other current liabilities	49,809	7,123	41,666
Current portion of operating lease liabilities	4,189	599	2,841
Deferred revenue	1,635	234	577
Put option liability	112	16
Total current liabilities	343,397	49,103	205,607
Put option liabilities			1,923
Non-current portion of operating lease liabilities	7,815	1,118	1,604
TOTAL LIABILITIES	351,212	50,221	209,134
Commitments and contingencies (Note 35)
Ordinary shares contingently redeemable (Note 33)	72,699	10,396	102,638
EQUITY
Additional paid-in capital	4,706,242	672,984	4,510,451
Statutory reserves	7,327	1,048	7,327
Accumulated other comprehensive loss	(11,924)	(1,705)	(11,890)
Accumulated deficit	(4,832,656)	(691,061)	(4,430,210)
The9 Limited shareholders' equity	190,880	27,296	338,649
Noncontrolling interest	(21,043)	(3,009)	(13,777)
Total equity	169,837	24,287	324,872
TOTAL LIABILITIES AND EQUITY	593,748	84,904	636,644
Class A ordinary shares
EQUITY
Ordinary shares	317,358	45,382	258,481
Class B ordinary shares
EQUITY
Ordinary shares	4,533	648	4,490
Nonrelated party
Current assets:
Accounts receivable	3,782	540
Prepayments and other current assets	19,543	2,794	26,047
Current liabilities:
Accounts payable	15,849	2,263	¥ 5,528
Related party
Current assets:
Accounts receivable	6,284	899
Prepayments and other current assets	515	74
Current liabilities:
Accounts payable	¥ 3,629	$ 519