The9 Limited Q4 FY2020 earnings call

• In January 2021, entered co-operation and investment agreement with investors in cryptocurrency mining, issued ordinary shares and warrants.
• In February 2021, NBTC signed strategic cooperation framework purchase agreement with MicroBT, paid deposit and obtained right to purchase 5,000 WhatsMiner machines, completed two batches of purchase with 922 machines deployed.
• In March 2021, NBTC signed Bitcoin mining machine purchase agreement with Bitmain for 24,000 AntminerS19j machines, total consideration US$82.8 million.
• In February 2021, entered purchase agreements with Bitcoin mining machine owners, issued shares for machines with total hash rate of ~549PH/S and 156PH/S from other purchases.
• In March 2021, signed MOUs with Bitcoin mining machine owners for more machines. Also, signed framework agreement for US$10 million Filecoin mining machines and standby equity distribution agreement.

For the year-ended December 31, 2020, net income attributable to holders of ordinary shares was RMB397 million (US$60.8 million), compared to a net loss of RMB190.6 million (US$29.2 million) in 2019. The net profit was mainly due to gain on disposal of subsidiaries. In cryptocurrency mining: Deployed Bitcoin mining machines have a total hash rate of approximately 693PH/S, with 3 Bitcoins rewarded per day as of now. By October 2022, expected Bitcoin hash rate to be ~3,558PH/S, with 15 Bitcoins per day expected. For Filecoin, executed US$1.1 million purchase of mining machines, own 8 Pebibyte of effective storage mining power, expected to generate ~200,000 Filecoins by August 2022 (but actual less due to increasing network hash rate). Revenue contribution isn't specified for segments as it's mainly about the overall financials and mining business developments.

• By October 2022, Bitcoin mining machines expected to contribute total hash rate of approximately 3,558PH/S, with ~15 Bitcoins per day reward.
• By August 2022, Filecoin effective storage mining power expected to generate ~200,000 Filecoins, but actual less due to increasing network hash rate.
• Will continue to invest in Bitcoin, Filecoin, and planning to invest in ETH as per upcoming press releases.

• Warrants exercisable subject to market capitalization of The9 within certain time periods, which is a risk.
• Global hash rate increase may affect the expected rewards for Bitcoin and Filecoin mining.
• Uncertainties in the cryptocurrency market that could impact the value of mining assets and financial results.

Q: Can you predict the hash rate by the end of 2021 for the Bitcoin network?

A: Our expectation is that our actual number by the end of 2021 will be much larger than the estimated 3,558PH/S by October 2022 as we will continue to buy machines from both sources and it also depends on fundraising progress.

Q: Are there any detailed financial statements available, particularly for last year and ongoing quarterly?

A: For last year, the annual report is on our 20-F which can be got from SEC website. Going forward, we are considering doing earnings release on a quarterly or interim basis to be transparent.