Cryptocurrency Mining Operations - The9 Limited reported a total hash rate of approximately 693PH/s from its deployed Bitcoin mining machines, resulting in a reward of 3 Bitcoins per day, totaling 126 Bitcoins rewarded to date[7] - The9 has entered into agreements to purchase a total of 26,007 Bitcoin mining machines with a combined hash rate of approximately 549PH/s, issuing 26,838,360 Class A ordinary shares at US$0.37 per share[4] - The9 signed a purchase agreement for 24,000 Antminer S19j Bitcoin mining machines for a total consideration of US$82.8 million, with the first installment of US$16.6 million already paid[3] - By October 2022, The9's Bitcoin mining machines are expected to contribute a total hash rate of approximately 3,558PH/s, potentially yielding around 15 Bitcoins per day and a cumulative reward of approximately 5,200 Bitcoins[8] - The9 has executed a US$1.1 million purchase of Filecoin mining machines and currently possesses 8 Pebibyte of effective storage mining power, expected to generate approximately 200,000 Filecoins by August 2022[9] - The9 has signed multiple agreements to purchase Bitcoin mining machines, including a framework agreement with a Filecoin mining machine vendor for US$10 million[6] - The9 has completed two batches of purchases, acquiring 922 WhatsMiner machines with an approximate hash rate of 66PH/s[2] - The9 aims to become a diversified high-tech Internet company, focusing on expanding its cryptocurrency mining operations[14] Financial Performance - Total net revenues for 2020 reached RMB 625,488 million, a significant increase from RMB 341,495 million in 2019, representing an 83.3% growth[19] - Gross profit for 2020 was RMB (814,136) million, compared to RMB (1,342,266) million in 2019, indicating a reduction in losses[19] - The company reported a net income attributable to The9 Limited of RMB 397,883 million in 2020, a turnaround from a net loss of RMB (177,795) million in 2019[19] - Basic and diluted net income per share for 2020 was RMB 2.42, compared to a loss of RMB (1.79) per share in 2019[19] - Total current assets as of December 31, 2020, were RMB 42,315,115 million, up from RMB 154,467,831 million in 2019[22] - Total liabilities as of December 31, 2020, amounted to RMB 366,837,286 million, a decrease from RMB 1,064,334,300 million in 2019[22] - The company had cash and cash equivalents of RMB 31,696,237 million as of December 31, 2020, compared to RMB 10,113,141 million in 2019, reflecting improved liquidity[22] - The company reported a gain on disposal of subsidiaries amounting to RMB 475,588,803 million in 2020, compared to RMB 1,206,925 million in 2019[19] - The total comprehensive income for 2020 was RMB 396,950,512 million, a significant recovery from a comprehensive loss of RMB (196,962,271) million in 2019[19] - The company’s accumulated deficit decreased to RMB (2,992,227,421) million in 2020 from RMB (3,410,856,231) million in 2019, indicating improved financial health[23] Equity and Investment Agreements - The9 entered into a standby equity distribution agreement allowing it to sell up to US$100 million of ADSs at its discretion over the next 36 months[7] - The9's cryptocurrency mining business is being developed with the assistance of investors, including a share subscription and warrant purchase agreement with several entities in January 2021[2]

Financial Performance - Total revenues for the year ended December 31, 2020, were RMB 625 million, a significant increase from RMB 341 million in 2019, representing a growth of approximately 83.5%[12]. - The net loss income for 2020 was RMB 393,434 thousand, a recovery from a net loss of RMB 196,168 thousand in 2019, indicating a positive trend in financial performance[12]. - Gross profit for 2020 was a loss of RMB 189 thousand, compared to a loss of RMB 1,001 thousand in 2019, showing an improvement in cost management[12]. - Operating expenses for 2020 were RMB 336,870 thousand, a substantial increase from RMB 162,746 thousand in 2019, reflecting increased investment in operations[12]. - The company reported a foreign exchange loss of RMB 8,320 thousand in 2020, compared to a gain of RMB 5,474 thousand in 2019, indicating volatility in currency markets[12]. - The basic net loss per share for 2020 was RMB 2.42, a recovery from RMB 1.79 in 2019, suggesting improved earnings potential[12]. - The total comprehensive loss income for 2020 was RMB 396,951 thousand, a recovery from RMB 196,962 thousand in 2019, indicating a positive shift in overall financial health[12]. - The company experienced an impairment on other investments amounting to RMB 18,000 thousand in 2020, compared to RMB 3,791 thousand in 2019, highlighting challenges in investment performance[12]. - Interest income for 2020 increased to RMB 430 thousand from RMB 19 thousand in 2019, reflecting better cash management and investment strategies[12]. - The company reported a gain on extinguishment of convertible notes amounting to RMB 56,756 thousand in 2020, indicating successful financial restructuring efforts[12]. Cryptocurrency Mining - The company expects its results of operations to be affected by cryptocurrency prices, as it plans to hold all cryptocurrencies received from mining activities[33]. - The company began cryptocurrency mining activities in February 2021, and any significant reductions in cryptocurrency prices could materially affect its financial condition[33]. Legal and Regulatory Risks - The company is exposed to risks associated with legal and regulatory changes regarding cryptocurrency mining, which could adversely affect its operations[38]. - The company has faced substantial uncertainties regarding the interpretation and application of PRC laws and regulations, which could materially affect its business operations[106]. - The 2020 Negative List indicates that the company's current business operations in China fall into a "prohibited" industry for foreign investment[100]. - The company may face penalties from PRC regulatory authorities for violations of laws, which could adversely impact its ability to conduct business[108]. - The legal environment in PRC presents uncertainties that could limit the company's ability to enforce contractual arrangements[113]. - The company must navigate complex regulations regarding foreign investment and ownership structures in the online gaming sector in China[102]. - Future laws may require adjustments to the corporate structure and governance of the company's PRC subsidiaries within a five-year transition period[100]. - The online gaming industry in China is subject to strict regulations, including mandatory "anti-fatigue systems" and identity verification for minors[120]. - The PRC government has implemented measures that could adversely affect the gaming industry, including restrictions on underage users' access to online games[120]. - Economic and political policies in China could materially impact the overall economic growth, affecting the company's business[122]. Shareholder and Corporate Governance - The company has a dual-class share structure, with Class A ordinary shares having one vote and Class B ordinary shares having fifty votes, leading to significant control by Class B shareholders[199]. - As of March 23, 2021, the chairman and CEO beneficially owned approximately 70.8% of the aggregate voting power, which may limit the influence of other shareholders on corporate matters[200]. - The company is classified as a passive foreign investment company (PFIC) for the taxable year ended December 31, 2020, which could have adverse tax consequences for U.S. investors[186]. - The company is exempt from certain U.S. securities laws and disclosure requirements, resulting in potentially less publicly available information compared to U.S. public companies[182]. - The company may issue additional ordinary shares or ADSs for future acquisitions, which could dilute existing shareholders' ownership interests[191]. - The market price of the company's ADSs may be adversely affected by substantial future sales or perceived sales of its shares[190]. - The dual-class structure of the company's ordinary shares may hinder the inclusion of its ADSs in major indices, potentially leading to a less active trading market[201]. - The company is classified as a "controlled company" under Nasdaq Listing Rules, which allows it to rely on exemptions from certain corporate governance requirements[202]. - Shareholders may face limitations in protecting their interests due to the company's incorporation under Cayman Islands law, which offers less investor protection compared to U.S. laws[208]. - The company does not expect to pay dividends in the foreseeable future, meaning investors must rely on price appreciation for returns[214]. - The rights of shareholders may differ from those typically offered to U.S. corporation shareholders, governed by Cayman Islands law[205]. - The company's board has the authority to issue preferred shares, which could adversely affect the rights of Class A ordinary shares and ADS holders[207]. - The depositary of the ADSs may not be responsible for ensuring that voting instructions are carried out, potentially limiting shareholders' voting rights[212]. - Analysts' reports significantly influence the trading market for the company's ADSs; negative reports could lead to a decline in share price[213]. - The company may limit participation in future rights offerings, which could result in dilution of existing holdings[217]. - The deposit agreement includes a waiver of the right to a jury trial for ADS holders, which may affect the outcomes of legal claims[219]. Operational Challenges - The company has made significant investments in developing proprietary mobile games, but lacks a proven track record in this area[49]. - The gaming industry is highly competitive, and the company may incur losses if it fails to deliver new hit products or if competitors outperform its offerings[49]. - The company has ceased operations of several games, indicating a strategy to discontinue unprofitable products[49]. - The company may face significant dilution of existing shareholders' interests due to potential future equity or debt financing[30]. - The company is currently negotiating with Smilegate Entertainment Inc. to re-gain the license for the CrossFire New Mobile Game, which has expired[50]. - The company has invested significant resources in developing proprietary online games, but there is no assurance of successful launches or financial returns[50]. - The online game industry in China is highly competitive, with numerous operators and low entry barriers, which may hinder the company's ability to recover market share and profitability[52]. - The company has entered into a master cooperation and publishing agreement with Voodoo to publish and operate casual games in China, but the success of these games is uncertain[54]. - The company may face challenges in renewing or acquiring new online game licenses, which could materially impact future operations and profitability[53]. - The company has experienced a slowdown in the massively multiplayer online game market, leading to the termination of the license for CrossFire 2 in 2017[55]. - The company may not be able to obtain approvals for renewing current foreign games or licensing new foreign games due to potential regulatory changes in China[60]. - The COVID-19 pandemic has disrupted operations and may adversely affect the company's financial condition and results of operations[66]. - The company has established joint ventures for various projects, but the success of these ventures is uncertain and may divert management's attention[70]. - The company’s equity investments may not yield expected returns, and poor performance of investees could lead to operating losses[73]. - The company relies on third-party services and licenses for its operations, including game distribution and software, which could materially impact business if these services deteriorate or are lost[75]. - The company has identified a material weakness in its internal controls over financial reporting, specifically a lack of sufficient resources regarding financial reporting and accounting personnel familiar with U.S. GAAP[94]. - The company recorded operating lease right-of-use assets of RMB9.3 million and lease liabilities of RMB9.7 million as of December 31, 2019, following the adoption of new accounting standards[98]. - The company faces risks from unexpected network interruptions that could lead to user attrition and revenue reductions, impacting its reputation[77]. - The company does not maintain business interruption insurance, which could result in substantial costs during disruptions or disasters[78]. - The company has limited business insurance coverage in China, which may expose it to significant costs from litigation or natural disasters[89]. - The company may incur substantial costs and resource diversion due to potential intellectual property rights claims from third parties[80]. - The company has taken measures to remedy its material weakness by hiring additional qualified financial staff and establishing clearer roles and responsibilities[95]. - The company’s operating results may fluctuate due to various factors, including new game launches and market demand, which may not be indicative of future performance[83]. - The company is vulnerable to risks related to natural disasters and health epidemics, particularly affecting its operations in Shanghai[99]. - The company relies on contractual arrangements for operations and licenses in China, which may not provide as effective control as direct ownership[111]. - The company's operations are primarily conducted in China, making it difficult for investors to effect service of legal process or enforce foreign judgments[160][161]. - Subsidiaries in China are restricted from paying dividends, only allowed to distribute after-tax profits and must allocate at least 10% of profits to statutory reserves until reaching 50% of registered capital[163]. - The statutory enterprise income tax (EIT) rate for subsidiaries in China is generally 25%, with a preferential rate of 15% for High and New Technology Enterprises, which has expired for Shanghai IT[166]. - A withholding income tax rate of 10% applies to dividends paid by Chinese companies to non-PRC-resident enterprises, with a reduced rate of 5% available under specific conditions for Hong Kong tax residents[167]. - The EIT Law classifies offshore enterprises with management in China as "resident enterprises," subjecting them to PRC tax on global income at a rate of 25%[170]. - Value-added tax (VAT) rates for services provided by subsidiaries in China are 6% for general VAT payers and 3% for small-scale VAT payers, potentially leading to unfavorable tax treatment[172]. - Strengthened scrutiny by PRC tax authorities on acquisition transactions may increase costs and complicate acquisition strategies for the company[174]. - The company may incur additional acquisition costs due to potential adjustments in capital gains and tax return filing obligations imposed by PRC tax authorities[177]. - The company faces risks of delisting from the Nasdaq Capital Market if it fails to meet continued listing requirements[178]. - The company must maintain a minimum ADS price of US$1.00 and a minimum market value of publicly held shares (MVLS) of US$35 million to comply with Nasdaq listing requirements[179]. - The closing trade price of the company's ADSs ranged from US$6.62 to US$82.89 per ADS in early 2021, indicating extreme price volatility attributed to its entry into the cryptocurrency mining business[193]. - The company regained compliance with Nasdaq's minimum MVLS requirement on August 5, 2020, and again on January 21, 2021, after previously failing to meet the standards[179]. - The company makes no representation regarding the conversion rates between RMB and U.S. dollars, indicating potential risks related to exchange rate fluctuations[9].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of Each Class Trading Symbol Name of Each Exchange on Which Registered American Depositary Shares, each representing three Class A ordinary shares NCTY Nasdaq Capital Market Class A ordinary shares, par value US$0.01 per share* Nasdaq Capital Market* FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECUR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) ...