The9 NASDAQ: NCTY reported second-quarter net income of $32 million, up more than 39% from the prior quarter, as the company advanced its repositioning around The9bit, an AI-powered game creation platform supported by a token-based ecosystem.
Chief Executive Officer George Lai said the company generated $55 million in net income during the first half of 2026, which he described as its strongest half-year result since its 2004 initial public offering. He said the quarterly increase was driven primarily by fair-value recognition of 9BIT tokens received through The9’s cooperation with the 9BIT Foundation, an independent crypto foundation established in Panama.
Lai said daily trading volume for 9BIT tokens across crypto exchanges was about $10 million. The9bit’s token was initially listed in December 2025 at about $0.003 and was quoted at roughly $0.05 as of Aug. 24, according to Chief Operating Officer Nora Lam. Lam cautioned that digital-asset prices cannot be predicted and said the company does not use token prices as its primary measure of operating performance.
The9bit becomes strategic focus
The company is seeking to combine its historical online gaming experience with its crypto operations, including Bitcoin mining and digital-asset treasury management, to build a platform for AI-generated content and user-generated gaming content.
Lai said The9bit is intended to provide tools and infrastructure for creators and players to develop games, rather than relying on a large internal game studio. The platform’s AI game development tools, called AIGD, allow users to begin with a prompt and turn an idea into a playable game without traditional coding expertise, Lam said.
“AI lowers the cost and technology barriers to game creation,” Lai said, while user-generated content expands the potential creator base. The 9BIT token is designed to align incentives among creators, players and contributors, he added.
The9bit had surpassed 8 million registered users and had produced more than 110,000 games since its August 2025 launch, according to Lam. Most games currently on the platform are casual, advertising-supported titles, Lai said, leaving the company with a relatively small revenue base.
However, The9bit expects to begin supporting mid-core games with in-game purchases within one to two months. Lai said the platform will assist creators with payment channels, including both fiat currency and crypto payments, and expects strong platform revenue growth in the second half of the year.
Token utility and commercial partnerships
Lam said creators use 9BIT tokens to generate games through AIGD, access AI Pro and other premium tools, purchase booster cards and use other platform features. Players and creators can also earn tokens through eligible activities such as creating or playing games and reaching participation milestones.
The company said this structure is intended to create utility-driven demand by linking token usage to creation, engagement and content promotion. Lam said The9bit is focused on operating measures including user growth, games created, creator activity, engagement and commercial adoption.
The platform has signed 41 brand partners and has another 127 potential partners in its pipeline, according to Lam. The company is developing an offline-to-online partnership model intended to connect brand activities with The9bit’s user community.
Southeast Asia has been the platform’s initial focus because of its younger, mobile-first population and familiarity with digital assets and play-to-earn models, Lam said. She cited campaigns with Z Life and Highlight Coffee as examples of efforts to connect offline consumer activity with The9bit’s online community.
Lam said the U.S. and Europe present long-term opportunities due to their large gaming and creator markets, but noted that those regions are more competitive and may have higher customer acquisition costs. The company plans to evaluate expansion based on local market conditions rather than directly replicating its Southeast Asia approach.
AI platform development and NYB investment
Gary Gao, COO of The9, said The9bit uses multiple foundation models rather than relying on a single model. He said the company’s differentiation lies in an AI-native operating system that coordinates production tasks across game research, development and production workflows.
According to Gao, users can modify generated games through an AI-native editing layer, including changing gameplay parameters, visual assets and game styles using natural-language instructions. He said structured data generated through projects is expected to improve the platform’s orchestration, automation and workflows as usage scales.
Separately, Lai discussed The9’s investment in NYB, an AI-driven drug discovery company pursuing a listing through a business combination with SPAC company RFAI. RFAI shareholders approved the proposed transaction at an Aug. 19 extraordinary general meeting.
Lai said Nasdaq approval remained the principal outstanding step and that the company believed it could arrive soon. He said RFAI shares had risen from around $9 to $58 during the prior week. Based on an agreed exchange ratio of approximately 15 times, Lai said NYB’s market capitalization would be expected to reach about $7.7 billion if RFAI’s share price remained at that level.
The9 expects to hold about 15% to 16% of the combined company after closing. Lai said the company expects NYB to become a significant contributor to The9’s investment income, while emphasizing that The9bit will continue to receive most of its attention and capital.
About The9 (NASDAQ:NCTY)
The9 Limited is a Shanghai-based digital entertainment company specializing in the development, publishing and operation of online and mobile games. Since its founding in 1999, the company has built a portfolio of multiplayer titles that combine in-house development capabilities with strategic licensing agreements. The9's offerings span PC and mobile platforms, and its products include fantasy, role-playing and casual games tailored primarily to the mainland China market.
Historically, The9 gained prominence through a landmark partnership with an international game developer, securing exclusive rights to operate the popular World of Warcraft franchise in China from 2004 to 2009.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider The9, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and The9 wasn't on the list.
While The9 currently has a Sell rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Get This Free Report
