The9 Limited

The company reported net income of $32 million in the quarter, up more than 39% sequentially, and $55 million in net income for the first half of 2026, which management said was the strongest half-year net income since its 2004 IPO. Management said the increase was driven primarily by the fair value recognition of 9BIT tokens received under its cooperation with 9BIT Foundation. It also said the daily trading volume of 9BIT tokens on exchanges is around $10 million. On the operating side, The9bit surpassed 8 million registered users and has generated more than 110,000 games since launch in August 2025. Looking ahead, management expects The9bit to support in-game purchase mid-core games within one to two months and said it expects strong revenue growth in the second half of this year. No revenue, EPS, or gross margin figures were provided in the transcript.

George Lai framed the quarter as a strategic repositioning toward an AI-native gaming platform, arguing that The9’s long experience in gaming plus its crypto and digital asset background create a differentiated base for The9bit. He emphasized an AI-assisted UGC model where creators can build games more easily, with the token economy aligning creators, players, and contributors. His tone was upbeat and confident, especially around The9bit’s long-term potential and the possibility that AI-assisted UGC can disrupt traditional game development.

No formal CFO remarks were provided in the transcript. Financial commentary came from management, who highlighted $32 million in quarterly net income, $55 million in first-half net income, and the fact that the profit increase was mainly tied to fair value recognition of 9BIT tokens. Management also noted that The9bit’s revenue base is still small because most games are casual and ad-supported, but said mid-core in-game purchase support should be added within one to two months, which they expect to improve revenue growth in the second half.

Analyst questions focused on the rationale for The9’s repositioning, how The9bit’s token is earned and used, why Southeast Asia was the first market, what differentiates the platform technically, and the timeline/value impact of NYB’s proposed listing. Management said The9bit is built on multiple foundation models and differentiates through an AI-native production system that orchestrates game creation, editing, and iteration end to end, with learning effects from each project. On NYB, George Lai said NASDAQ approval is still needed but should come soon, and reiterated that The9 expects to hold about 15%-16% of the combined company and could see significant investment income if RFAI’s share price remains around current levels. When asked about leadership concerns around The9bit’s CEO, Nora Lam declined to address the issue in detail on the call and suggested the investor reach out directly.