The9 announced that its wholly-owned subsidiary Shanghai The9 Information Technology signed a joint venture agreement with Zhejiang Huanyu Network Technology, a Chinese game development and operation company. The joint venture will become one of The9’s consolidated subsidiaries to operate the mobile and PC versions of the new MIR game: MIR M, in which The9 holds a 51% stake and Huanyu holds a 49% stake. Pursuant to the agreement, Huanyu promised to guide its existing MIR and related game users to the joint venture to ensure the operation of MIR M by the joint venture. 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. Huanyu committed that the joint venture will have a game revenue of at least $84M and a profit of $28M in 2025, and that the game revenue and profit will increase by at least 30% annually in 2026 and 2027. The9 promised to grant Huanyu The9 restricted shares. The shares will be issued five working days after the joint venture submits all relevant materials for applying for the internet content provider license to the local government and obtains an application receipt. These restricted shares will be unlocked in stages according to Huanyu’s commitment to the joint venture’s 2025 business results. If the 2025 business results commitment is achieved, The9 will grant Huanyu the second batch of restricted shares according to this mechanism. If the 2026 business results commitment is achieved, The9 will grant Huanyu the third batch of restricted shares according to this mechanism.