The9(US:NCTY)2021-03-28 16:00Cryptocurrency 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]