The9 (NCTY) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB111.7 million (US$15.3 million), down 35.8% from 2023, mainly due to suspension of cryptocurrency mining in the US and Kazakhstan.

• Net loss attributable to shareholders was RMB73.4 million (US$10.1 million) in 2024, compared to net income of RMB20.0 million in 2023, reflecting lower revenue and continued operating expenses.

• The company pivoted back to online gaming in 2024, establishing joint ventures for the MIR M game in China, while maintaining cryptocurrency mining as a core business.

• Cash and cash equivalents at year-end 2024 were RMB10.9 million (US$1.5 million), with positive working capital of RMB38.1 million (US$5.2 million).

• The company completed several equity and debt financings in 2024 and early 2025, including private placements and convertible notes.

Financial highlights

• Cryptocurrency mining revenue was RMB110.7 million (US$15.2 million) in 2024, down from RMB168.3 million in 2023.

• Gross loss for 2024 was RMB1.6 million (US$0.2 million), compared to RMB39.1 million in 2023.

• Operating expenses decreased to RMB57.2 million (US$7.8 million) in 2024, from RMB278.6 million in 2023, mainly due to lower impairment charges and administrative costs.

• Realized gain on exchange cryptocurrencies was RMB60.8 million (US$8.3 million) in 2024, up from RMB42.8 million in 2023.

• No impairment of cryptocurrencies was recognized in 2024 or 2023, following adoption of fair value accounting.

Outlook and guidance

• The company expects to expand online gaming operations in China through joint ventures, with MIR M game revenue and profit targets set for 2025 and beyond.

• Plans to continue cryptocurrency mining, with future performance dependent on Bitcoin prices, mining difficulty, and regulatory environment.

• Management believes current cash and working capital, plus access to additional financing, are sufficient for obligations over the next 12 months.