The9 Limited

Ladies and gentlemen, thank you for standing by and welcome to the Nine Limited Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Jojo Su, Investor Relations Specialist. Please go ahead, ma'am.

Thank you, operator. Good evening and good morning, everyone. Welcome to our second quarter 2022 earnings conference call. Joining me today are Mr. George Lai, CEO of the Nine Limited, Mrs. Nora Lam, COO of the Ninebit, and Mr. Gary Gao, COO of the Nine Limited. During today's call, we will discuss our business outlook and make forward-looking statements. These comments are based on our and the expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with the SEC. In addition, a webcast replay of this conference call will be available on our website. I will now turn the call over to Mr. Zhou Zhilai.

Thank you, Jun Zhu, and good evening, everyone. Thank you for joining us today. I want to spend a few minutes on where Deny is heading. This quarter marks an important step in our repositioning, and I would like to explain the strategic logic behind it. For more than two decades, Deny has operated traditional online games at scale, with deep experience in player engagement and monetization. Separately, over the past several years, we have developed operating experience in crypto space including Bitcoin mining and digital asset treasury management. We believe this combination of gaming and digital asset capabilities provides a differentiated foundation for building a functional token economy around AI-generated content or AIGC and user-generated content or UGC in gaming. We are now repositioning Deny to bring these capabilities together through our proprietary AI-powered game creation platform, Denybit. AI is significantly reducing the time, cost, and technical expertise required to create games, enabling individual creators and small teams to turn ideas into playable content much more efficiently. Rather than building a large in-house studio, the 9-bit provides the tools and infrastructure that allow creators and players to build the ecosystem themselves, with AI supporting the development process. The 9-bit brings together three mutually reinforcing elements. AI lowers the cost and technology barriers to game creation, UGC Borden's the pool of potential creators. And the 9-bit token is designed to align incentives among players, creators, and contributors by enabling them to participate in the value they have created. Turning to our results, we reported net income of 32 million US dollars this quarter, an increase of more than 39% from the previous quarter. We are delivering the strongest half-year net income in our history since the 2004 IPO, amounted to US$55 million. The increase was driven primarily by the fair value recognition of 9Bit tokens received under our cooperation with 9Bit Foundation, an independent crypto foundation established in Panama. The daily trading volume of 9Bit tokens on different crypto exchanges is around US$10 million. On the operating side, the 9Bit surpasses 8 million registered users. Currently, the majority of our games on our platform are casual games relying on advertising revenue. So our revenue scale is still small. The good news is within 1-2 months, the 9Bit will start to support in-game purchase mid-core games. We expect game creators to utilize our AI-native operating system to create in-game purchase games on the 9bit. We will help game creators to resolve payment channel issues, including fiat and crypto. Therefore, we expect a strong revenue growth of the 9bit platform in the second half of this year. I would also like to address our direction beyond the 9bit. Stabilizing and scaling the ecosystem remains our priority. and that is where we expect to direct most of our attention and capital. At the same time, where we can see a clear strategic fit, we will selectively pursue other AI-driven opportunities. Our investee, NYB, an AI-driven trust discovery company, is pursuing its own listing by combining with a SPAC company, RFAI. At an extraordinary general meeting held on August 19, 2026, shareholders of RFAI voted to approve MYB's proposed business combination. The share price of RFAI increased from around US$9 to US$58 over the past week. Since the agreed exchange ratio is approximately 15 times, if RFAI share price stays at the same level, NYB share cap is expected to be around $7.7 billion. The line is expected to hold approximately 15% to 16% of the combined company after closing. We expect this will contribute significant investment income on our P&L. We recognize that both the AI technology and the market will continue to evolve. Nevertheless, we believe AI is reshaping how games are made. AI-assisted UGC will disrupt the traditional online game industry. The next global blockbuster game may be created by several teenagers in several months using AI, rather than developed by traditional big game development companies. We have a well-designed token economy that aligns all participants who contribute to the ecosystem, paving the way for the 9-bit's long-term success. With that, I will turn the call over to Laura, CEO of the 9Bit, to discuss the platform and community in more detail. Laura?