The9 (NCTY) has announced a strategic joint venture with Chengdu Qing Cheng Network Science and Technology to focus on mobile game operation and distribution in China's sinking market. The9 will hold a 51% stake in the venture, while Qing Cheng will hold 49%. Qing Cheng has committed to achieving an annual profit of RMB80 million (US$11 million) in 2025, with a guaranteed 50% profit increase annually in 2026 and 2027. The9 will grant Qing Cheng 110,232,600 restricted shares, which will be unlocked based on profit achievements. According to QuestMobile's 2024 report, mobile Internet users in lower-tier markets reached 647 million, representing 52.6% of China's mobile Internet market. Qing Cheng employs an e-commerce-like strategy with virtual incentives to enhance gamer participation in lower-tier cities through offline distribution channels and gaming KOLs.