The9 Limited, an internet company, announced on Wednesday that its subsidiary, Shanghai The9 Information Technology Co., Ltd., has entered into a joint venture agreement with ShaoXing TongZe Network Technology Co., Ltd., a Chinese provider of AI algorithms and data marketing services.
As per the agreement, The9 will hold a 51% stake and TongZe will have a 49% stake in this joint venture. Its primary function will be to operate AI algorithms and big data marketing businesses. It will also offer marketing solutions for The9's new MIR game, MIR M.
TongZe has committed to the utilization of its AI algorithms and big data to target more than 100 million pan-MIR tag users and over 30 million paid MIR users. Additionally, the venture should result in an annual profit of over RMB100 million (around $14 million) by 2025, as per TongZe's commitments.
In return, The9 will grant TongZe restricted shares worth RMB 42.5 million, adjusted with the US dollar to RMB exchange rate on the date of issuance and NCTY's share price during the same period.
George Lai, the CFO of The9, expressed optimism about how AI technology and applications are beginning to revolutionize traditional marketing practices in China's online gaming industry, which he believes to be expensive and inefficient. He stated their partnership with TongZe aims to use its matured AI algorithms and big data to draw potential MIR game users effectively.
