The9 Limited

NCTY

Financial - Capital Markets · Financial Services

Price

$5.78

+1.42 (+32.57%)

Market Cap

$88.0M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 24, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

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Share count rising — dilution

+359.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.7M (2021) → 7.6M (2025)

Winston Score History

The full picture

The9 Limited is a Chinese company that has shifted its focus over the years. It originally operated online games in China, including running the popular game World of Warcraft under license. More recently, the company has pivoted toward cryptocurrency mining and blockchain-related businesses, operating mining equipment in various locations.

The9 generates revenue from its cryptocurrency mining operations and residual digital entertainment activities. The company is headquartered in Shanghai, China, and is listed on the Nasdaq exchange with a small market capitalization around $100 million. Its operating margins are deeply negative, reflecting ongoing losses as the company burns cash in its newer business lines. The key risk for The9 is its heavy dependence on volatile cryptocurrency prices and its ability to achieve profitability, as the company has struggled with consistent revenue generation since losing its major gaming licenses years ago.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+125.4% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-48.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

¥10M/ year

↑ Rising (+1029% vs prior year)

9.1% of revenue

In line with sector average (7%)

R&D investment increasing — building for the future

Insider Activity

39.9%ownership

Insiders own a meaningful stake in the company

Cash Runway

~4 years

¥491M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

¥491M cash & investments at current burn rate

Strong grower

The9 Limited is growing revenue at 125% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

6.9%

Thin — 6.9% gross margin

Profit after running costs

Operating Margin

-398.9%

Losing money on operations — -398.9%

Return on the money invested

ROCE

-50.9%

Weak — -50.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-5.7%

Shrinking sales (-5.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-89.8%

Burning cash (-89.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.84

Moderate — manageable debt (0.84)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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