Introduction To The9


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Introduction To The9

  1. 1. The9 Limited (NASDAQ: NCTY)
  2. 2. Disclaimer This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. The9 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, The9’s limited operating history as an online game operator, political and economic policies of the Chinese government, the laws and regulations governing the online game industry and information disseminated over the Internet in China, intensified government regulation of online game operators and Internet cafes in China, The9’s ability to retain existing players and attract new players, license, develop or acquire additional online games that are appealing to users, anticipate and adapt to changing consumer preferences and respond to competitive market conditions, and other risks and uncertainties outlined in The9’s filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended, and annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law. 2
  3. 3. CONTENTS 1. Introducing The9 2. The9 Strategy 3. The9 Game Operation 4. The9 In-house Game Development 5. The9 Game Portfolio 6. Oversea affair
  5. 5. Overview Company Name Shanghai The9 Information Technology Co., Ltd Year Founded Aug 1999 Number of Employees Over 1300 (Mar 2010) Headquarter Shanghai, CHINA Development Studio Shanghai, Beijing, Nanjing, Hangzhou, CHINA
  6. 6. Who Are We • The9 (NASDAQ: NCTY) : Leading online game operator and developer in Mainland China • Game Operation(Past & Now): MU, World of Warcraft, EA SPORTS FIFA Online 2, Soul of The Ultimate Nation, Granado Espada, Audition 2, Guild Wars, Atlantica Online, Hellgate: London • In-house Development Games: Dragon Emperor, Winning Football, World of Fighter(WOF), Tiny Tribe, MUX
  7. 7. Company Milestones  Introduced the concept of online virtual community in China, located at 1999  Entered the online gaming industry in cooperation with Webzen Inc. Got 2002 the license to localize and operate MU April, signed a license agreement with Vivendi Universal Games and 2004 became the exclusive license and operator of World of Warcaft, a top-tier online game in the world, in China  September, having obtained an exclusive license from Hanbisoft to localize and operate Granado Espada in China  December 15th, 2004, priced the IPO of 6,075 million American Depositray Shares(ADS) on Nasdaq, under the ticker: NCTY
  8. 8. Company Milestones  The9’s first in-house developed MMORPG, Joyful Journey West, started its 2005 open beta testing Obtained exclusive license to operateSoul of the Ultimate Nation  Obtained exclusive license to operate Guild Wars and Hellgate: London in 2006 Mainland China January, signed agreement with Blizzard Entertainment to rollout WOW: 2007 The Burning Crusade, and launched it in September The9 and EA announced equity investment and exclusive publishing agreement for EA Sports Fifa Online in Mainland China Obtained exclusive license to operate Audition2 and Huxley
  9. 9. Company Milestones On 4th July, The9 Development Center was found officially 2008  EA SPORTS FIFA Online 2 was commercially launched on May 20 2009  Atlantica was commercially launched on June 17 The9 signed an agreement with USERJOY Technology Co., Ltd. and obtained an exclusive license to operate 3D MMORPG 'Kingdom Heroes 2 Online' in mainland China.  On 8th Jan, World of Fighter(WOF) which was in-house developed by The9, 2010 was commercially launched  The9 has invested 100 million RMB into Fire Rain  On 22nd Mar, The9 acquires Red 5 studio with $20M investment  On 6th Jun, Maradona became image ambassador of The9 game
  10. 10. THE9 STRATEGY
  11. 11. The9 4D Strategy Dedicated Services for All Quality Games Diversifying Game Developing Portfolio with Different Proprietary Games Game Genres & Models Delivering Enriched Interactive Community
  12. 12. Dedicated Services 1/1 The9 Game Operator Distributors 58 provincial chief distributors all over China Game Content Localization Nationwide Distribution Channel Technical Infrastructure Mgmt Virtual cards (“e-sales”) 33% Players Sales and Marketing Physical cards 60% Product Direct sales (online Management transactions) 7% Powerful ground promotion team Customer Services
  13. 13. Diversifying Game Portfolio 1/2 All Positioned MMORPG, High quality & Middle core Style Casual Online game
  14. 14. Diversifying Game Portfolio 2/2 Q2 07 Q4 07 Q2 09 Q1 10 Q2 10 Coming soon Games in Commercialization Tiny Tribe Granado Espada SG OL 2 (GE) FIFA Online 2 Winning Goal Audition 2 Soul of The Ultimate Atlantica Nation™ (SUN) 4 other Dragon Emperor World of Fighter un-announced titles
  15. 15. Developing Proprietary Games 1/2 Not only the “Partner of Choice” to But also Continuously Enhancing R&D leading world-class game developers Capability  As of June 2010, we had 320 staffs in R&D center, a 155% increase from the beginning of 2008 Talent recruitment as well as strategic investments in Korea or China World of Fighter (WOF) – our 1st Self-developed MMORPG Dragon Empire (Jiu Zhou Zhan Ji) – our 1st proprietary web-based game 4 other un-announced titles
  16. 16. Developing Proprietary Games 2/2 Founded in June 2007, The9 Development Centre is made up of The9’s top developers who previously worked on The9’s propriety online games since 2000 Leading talents and engineers from Microsoft and HP Top developers and designers from other game companies A core design team made up of 20 key personnel are attached to each project, supported by more than 320 support and assets staff.
  17. 17. Delivering Interactive Community 1/1 The9 City – one the first online virtual Pass9 - The9’s proprietary integrated communities in China membership and payment solution The9’s game official website & player VIP CLUB - The9’s innovative customer BBS Forum Community service system tailored to VIP players
  19. 19. Our Team 1/3 Formation strategy STRIKER Marketing and Sales FORWARDS Product Team CAPTAIN VP/Director DEFENDERS Technical Team GOAL KEEPER Customer Service
  20. 20. Our Team 2/3 • THE PRODUCT TEAM Localization bases on market research and understanding of customer’s minds and hearts as well. • THE MARKETING AND SALES TEAM With the knowledge we have, using it and reaching out effectively Winner of the Most Influential Event in Chinese Game Industry by *GAPP’s Annual Internet Industry Meeting • THE TECHNICAL TEAM Awarded Most Effective Anti-Cheating Game for WOW in 2006 in gaming industry Matrix card creator, now Matrix card could be found everywhere • THE CUSTOMER SERVICE TEAM Serving 40 million customers of The9 Awarded the best rated CS Team of the worldwide WOW CS Team in gaming industry  1st online game CS Team who obtained ISO9001:2000 in China
  21. 21. Our Team 3/3 • STRONG BILLING SYSTEM AND PLATFORM  Our billing system, Pass9 has 100 million registered users with 500,000 charge and 30 million page clicks per day  Page click of official website reaches 50~80 million per day  PCU of BBS hits 130,000  Diversified downloading resources, SNS applications and log analysis • GAME SECURITY ASSURANCE  Various account protection solutions for option – Matrix card, OTP token, SMS account and web page account locker.  Anti-piracy management architecture and experienced anti-cheating team.  Solid relationship with domestic and oversea governments, anti-virus, anti- cheating developers.
  22. 22. Game Operation Summary Monitor IDC SA DBA DEV OM • P2P&UDP protocol games Hardware testing ● ● we have Hardware maintenance ● Asset management ● Open new site ● ● ● Site configuration change ● System configuration change ● • Other MMORPGs under Version upgrade ● operation Scheduled system maintenance ● Incident/Problem management ● Software Develop Process ● Project release ● Database related process ● ● Notes: Success connection rate for EA SPORTS™ FIFA Online 2 with over 100 million daily PVP matches surpasses 90%. Experienced technical support allows thousands gamers to fight in the same map in Kingdom Heroes 2 Online.
  23. 23. Our Resource Huge user base & Market Coverage & Experienced on Media & Offline Activities SUN Beauty Contest
  24. 24. Marketing Partners Established long-term cooperation relationships with top-ranked companies
  25. 25. Operation Partners Online Game Outdoor Gamer Press Media Mass Media Media Media Forum
  27. 27. Game Development • Extremely Developed Game R&D System Regular Project Support and Reports, Decision- Feedback Making Corporate Project Analyze Competitors, Management Management Recruitment and Market Analysis Performance Monitoring Product Dept. HR Programming Testing Programming Testing Develop Promotion Project Budget Marketi Development Center Development Center Finance Strategies Control ng Planning Art Technic Planning Art Administrat al ion Dept. Operating Environment Logistics Support and Planning Sales Dept. Customer Service Floor Promotion Streamline Customer Experience
  28. 28. Integrated Development & Operation Game Development Game Operation Marketing Channels Direct Interactions Game Design  Operate and Online payment market games and distribution patterns  Track players’ behaviors and Prepaid Card Listen to purchasing Players Feedback patterns Distributor  Provide feedback to game designer Cooperation Channels Improve the Game Direct Interactions The9 stands to benefit from its integrated development and operational model
  29. 29. Quality Control System • Strict management processes to ensure quality is built into the game right from the start  Code  Bug  Content delivery  Stress testing  Daily reports  Etc
  30. 30. Adopting MS Development • Our Goal Talent from Microsoft  project managers and quality control personne • Utilizing Microsoft’s TFS Management Tools For  Work distribution  Daily builds  Bug management  Code analysis  Performance optimization
  31. 31. Development Tools
  32. 32. R&D Partners
  34. 34. The9 Games Portfolio (Past & Now) • The9 In-house Games Portfolio one of the strongest across the industry. It covers a broad spectrum of well-balanced products ranging from 2D to 3D, MMOGs to advanced casual games, web games to client games Client Game Web Game 2D MMORPG 3D MMORPG Casual Games
  35. 35. International Game In-house Game Partnership (Operation) (Development) World Class Partnership Under development with EA and Unannounced Blizzard titles Korean and Taiwan Partnership In-house developed titles in commercialization
  36. 36. Kingdom Heroes 2  Developed by USERJOY Technology Co., Ltd., Kingdom Heroes 2 offers the feature of large scale kingdom war, huge-city attacked machine, sea battle.  Presenting the real non-quantity/level restriction community competition, with rarely seen sea battle.  The sequel of Kingdom Heroes Online, which was licensed to the Mainland China, Taiwan, Hong Kong, Japan, Thailand, Vietnam, Singapore, and Malaysia, and with a PCU level of 85,000 in Taiwan and of 100,000 in the Mainland China. 36
  37. 37. FIFA Online 2  FIFA Online2 is Electronic Art’s leading international sports franchise co-developed with Seoul-based Neowiz.  The9 received approximately 15% equity investment from Electronic Arts Inc. in May 2007 with investment value of approximately US$167 million.  Commercially launched in the Mainland China on 20th May, 2009.
  38. 38. Granado Espada  3D MMORPG set in Renaissance Europe’s Age of Exploration  Unique multi-character control (MCC) system  Currently in commercial operation in Korea, Japan, Thailand, United States, Taiwan and Singapore with decent performance  The9 commenced commercialization of GE in mainland China in late November 2007 38
  39. 39. Joyful Journey West  The9’s first proprietary developed game  2D Q-Style side-scrolling MMORPG based on a classic Chinese story  Introduced online shopping mall feature in September 2006 (i.e. adopted “free play + item sales” model)  Q3 2007 - signed a license agreement with a Malaysian game operator for JJW’s operation in Malaysia. 39
  40. 40. Atlantica  3D online turn-based MMORPG produced by Ndoors  Commercialized in Korea and has been well received by players as one of the top MMORPGs of the year and now under open beta test in mainland China.  Granted as the “Best Overseas online game” in the Golden Plume Award of China Joy 2008 and ranked No.1 in online game popularity voting in North-America.  Open beta testing started on 10th Jun, 2009; commercially operated on 17th Jun, 2009.
  41. 41. World of Fighter  2D Side-scroll MMO Action RPG “WOF” developed by The9  Storyline based on the history of the Three Kingdoms in China  High speed action and specialized Skill combo system  WOF has been commercially launched on 8th Jan, 2010  Successfully expended to Taiwan, Korea, Vietnam and Thailand
  42. 42. Dragon Emperor  Web-based online game developed by The9  Experience different life patterns  CBT began on March 31, 2009  Warring Nations System implemented and system-wide launch on June 2009  Successfully expanded to Taiwan, Malaysia and Singapore
  43. 43. Tiny Tribe  A brand new 3D casual MMOG developed by The9  Engaged in rich backgrounds and elements, after well-connected design and creative work, turns into a extremely fun puzzle escape game  Main Features: Unique Gameplay; Customized Map Editor; In-game SNS; Web 2.0 Application
  44. 44. Winning Goal  Brand new web based casual soccer MMO developed by The9  Super star Diego Maradona became the image ambassador  Winning Goal had been commercial launched on 6th Jun 2010
  46. 46. OVERSEA MARKET EXPANSION Geographic expansion — one of The9’s strategic initiatives. By now , The9 market penetration, JV, License out has fully reached SEA, EA, NA, and EU. We are always hungry and welcome new partners!
  47. 47. Thank You !