Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2017

Commission File Number: 001-34238

 

 

THE9 LIMITED

Building No. 3, 690 Bibo Road

Zhangjiang Hi-tech Park, Pudong New Area

Shanghai 201203, People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒    Form 40-F  ☐    

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

THE9 LIMITED
By:  

/s/ Jun Zhu

Name:   Jun Zhu
Title:   Chairman and Chief Executive Officer

Date: April 7, 2017


Exhibit Index

Exhibit 99.1 – Press Release


Exhibit 99.1

The9 Limited Announces Unaudited Financial Information

As of and For the Six Months Ended December 31, 2016

The9 Limited (the “Company”) hereby announces its unaudited consolidated statement of income for the six months ended December 31, 2016 and its unaudited consolidated balance sheet as of December 31, 2016.

THE9 LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(Expressed in Renminbi - RMB and US Dollars - US$, except share data)

 

     Six month
ended Jun 30
    Six month
ended December 31
 
     2016     2015     2016     2016  
     RMB
(unaudited)
    RMB
(unaudited)
    RMB
(unaudited)
    US$
(Note)
 

Revenues:

        

Online game services

     20,655,337       18,901,326       27,910,283       4,019,917  

Other revenues

     2,392,933       3,365,669       5,326,969       767,243  
  

 

 

   

 

 

   

 

 

   

 

 

 
     23,048,270       22,266,995       33,237,252       4,787,160  

Sales taxes

     (61,508     (163,042     (24,728     (3,562
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     22,986,762       22,103,953       33,212,524       4,783,598  

Cost of revenues

     (28,335,686     (33,056,539     (20,183,093     (2,906,970
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross (loss) profit

     (5,348,924     (10,952,586     13,029,431       1,876,628  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (expenses) income :

        

Product development

     (43,825,469     (72,600,152     (34,165,939     (4,920,918

Sales and marketing

     (11,383,633     (16,251,921     (9,903,014     (1,426,331

General and administrative

     (42,786,711     (84,550,138     (86,261,135     (12,424,188

Impairment loss on goodwill

     (10,561,857     —         —         —    

(Provision)/reversal of provision for allowance for long-term receivables and prepayments

     —         (8,439,580     —         —    

Impairment on intangible assets

     (68,003,805     —         —         —    

Gain on disposal of subsidiaries

     —         3,339,394       —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (176,561,475     (178,502,397     (130,330,088     (18,771,437

Other operating income (expenses)

     163,642       (1,797,518     3,441,107       495,622  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (181,746,757     (191,252,501     (113,859,550     (16,399,187

Impairment on available-for-sale investment

     (244,798,058     —         —         —    

Impairment on other investment

     —         —         (2,806,439     (404,211

Interest income (expenses), net

     (33,073,698     (6,615,217     (23,236,767     (3,346,791

Fair value change on warrants liability

     37,249,592       (7,129,161     10,807,612       1,556,620  

Loss on disposal of equity investee and available-for-sale investment

     —         —         (1,217,405     (175,343

Other income (expenses), net

     (2,217,574     (651,562     (7,734,697     (1,114,028
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax expense and share of loss in equity method investments

     (424,586,495     (205,648,441     (138,047,246     (19,882,940

Income tax benefit (expense)

     —         —         6,079,282       875,599  

Share of loss in equity method investments

     (29,955,544     (11,973,707     (80,579,942     (11,605,926
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss for the year

     (454,542,039     (217,622,148     (212,547,906     (30,613,267

Net loss attributable to noncontrolling interest

     (45,277,123     (9,682,188     (13,307,081     (1,916,618

Net loss attributable to redeemable noncontrolling interest

     (7,072,359     (17,123,902     (7,651,793     (1,102,087
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable net loss to The9 Limited

     (402,192,557     (190,816,058     (191,589,032     (27,594,562

Change in redemption value of redeemable noncontrollling interest

     37,863,439       43,042,743       45,026,749       6,485,201  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to holders of ordinary shares

     (440,055,996     (233,858,801     (236,615,781     (34,079,763
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss):

        

Currency translation adjustments

     (1,314,419     (320,719     (440,220     (63,405
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

     (455,856,458     (217,942,867     (212,988,126     (30,676,672

Comprehensive loss attributable to:

        

noncontrolling interest

     (53,853,568     (10,800,210     (12,439,886     (1,791,716

redeemable noncontrolling interest

     (7,072,359     (17,123,902     (7,651,793     (1,102,087

The9 Limited

     (394,930,531     (190,018,755     (192,896,447     (27,782,869

Net loss attributable to holders of ordinary shares per share

        

- Basic

     (18.46     (10.05     (9.89     (1.42
  

 

 

   

 

 

   

 

 

   

 

 

 

- Diluted

     (18.46     (10.05     (9.89     (1.42
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding

        

- Basic

     23,836,873       23,269,536       23,915,501       23,915,501  
  

 

 

   

 

 

   

 

 

   

 

 

 

- Diluted

     23,836,873       23,269,536       23,915,501       23,915,501  
  

 

 

   

 

 

   

 

 

   

 

 

 

Note: The United States dollar (“US dollar” or “US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers at the rate of US$1.00 = RMB6.9430, representing the noon buying rate in the City of New York for cable transfers of RMB, as certified for customs purposes by the Federal Reserve Bank of New York, on December 31, 2016.


THE9 LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS INFORMATION

(Expressed in Renminbi - RMB and US Dollars - US$)

 

     As of December
31, 2015
    As of December
31, 2016
 
     RMB
(audited)
    RMB
(unaudited)
    US$
(unaudited)
 

Assets

      

Current Assets:

      

Cash and cash equivalents

     49,010,541       38,878,076       5,599,608  

Accounts receivable, net of allowance for doubtful accounts of RMB991,743 and RMB992,010 as of December 31, 2015 and 2016, respectively

     7,153,663       8,607,120       1,239,683  

Advances to suppliers

     898,126       9,085,165       1,308,536  

Prepayments and other current assets

     9,463,149       11,625,716       1,674,452  

Amounts due from a related party

     10,732,643       19,842,139       2,857,862  
  

 

 

   

 

 

   

 

 

 

Total current assets

     77,258,122       88,038,216       12,680,141  

Investments in equity investees

     267,539,694       163,037,501       23,482,284  

Property, equipment and software, net

     33,846,518       26,765,824       3,855,081  

Goodwill

     10,342,694       —         —    

Intangible assets, net

     78,876,486       —         —    

Land use right, net

     68,352,386       66,431,476       9,568,123  

Other long-lived assets, net

     1,879,021       6,618,977       953,331  
  

 

 

   

 

 

   

 

 

 

Total Assets

     538,094,921       350,891,994       50,538,960  
  

 

 

   

 

 

   

 

 

 

Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity (Deficit)

      

Current Liabilities:

      

Short-term bank borrowing

     —         107,517,367       15,485,722  

Accounts payable

     41,248,455       37,038,856       5,334,704  

Other taxes payable

     551,445       283,994       40,904  

Advances from customers

     19,605,593       26,711,967       3,847,323  

Amounts due to related parties

     77,730,267       107,203,023       15,440,447  

Deferred revenue

     18,552,217       15,921,873       2,293,227  

Refund of game points

     169,998,682       169,998,682       24,484,903  

Warrants

     64,414,941       16,357,737       2,356,004  

Interest payables

     —         412,626       59,431  

Accrued expense and other current liabilities

     35,864,424       92,302,898       13,294,383  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     427,966,024       573,749,023       82,637,048  

Long-term borrowing

     31,726,575       35,141,459       5,061,423  

Convertible notes

     135,182,536       197,284,836       28,414,927  

Deferred tax liabilities, non-current

     5,690,705       —         —    
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     600,565,840       806,175,318       116,113,398  
  

 

 

   

 

 

   

 

 

 

Redeemable noncontrolling interest

     178,605,097       246,771,133       35,542,436  

Shareholders’ Equity (Deficits):

      

Ordinary shares (US$0.01 par value; 23,701,601 and 23,915,501 shares issued and outstanding as of December 31, 2015 and December 31, 2016, respectively)

     1,917,620       1,931,642       278,214  

Additional paid-in capital

     2,080,041,288       2,525,599,832       363,762,038  

Statutory reserves

     28,071,982       28,071,982       4,043,206  

Accumulated other comprehensive (loss) income

     (3,372,588     2,582,023       371,889  

Accumulated deficit

     (2,304,020,698     (2,897,802,287     (417,370,342
  

 

 

   

 

 

   

 

 

 

The9 Limited shareholders’ equity (deficit)

     (197,362,396     (339,616,808     (48,914,995

Noncontrolling interest

     (43,713,620     (362,437,649     (52,201,879
  

 

 

   

 

 

   

 

 

 

Total shareholder’s equity (deficit)

     (241,076,016     (702,054,457     (101,116,874
  

 

 

   

 

 

   

 

 

 

Total liabilities, redeemable noncontrolling interest and shareholder’s equity (deficits)

     538,094,921       350,891,994       50,538,960  
  

 

 

   

 

 

   

 

 

 

Note: The United States dollar (“US dollar” or “US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers at the rate of US$1.00 =RMB6.9430, representing the noon buying rate in the City of New York for cable transfers of RMB, as certified for customs purposes by the Federal Reserve Bank of New York, on December 31, 2016.


About The9 Limited

The9 Limited is an online game developer and operator in China. The9 Limited develops and/or operates, directly or through its affiliates, its proprietary MMO and mobile games, including CrossFire new mobile game and Song of Knights. The9 Limited’s joint venture has also obtained an exclusive license for publishing and operating CrossFire 2, which is under development by a third-party game developer, in China. The9 Limited also engages in mobile advertising and mobile app education businesses. The9 Limited has formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box business.