Internet Co The9 Signs MOU with Chinese Government, Sending its Shares Higher
Internet and mobile gaming company The9 Ltd announced that it has signed a memorandum of understanding on strategic cooperation with the Office of the Development of the Hohhot Shaerqin Industrial Zone to manufacture electric vehicles.
The9 Ltd. (Nasdaq: NCTY), an established Internet and mobile gaming company announced that it has signed a non-binding memorandum of understanding on strategic cooperation with the Office of the Development of the Hohhot Shaerqin Industrial Zone.
The news of the deal sent The9's shares up 3.4 percent earlier today. The company's stock closed Monday at $1.21.
The two parties will have strategic cooperation on the establishment and business development of electric vehicle startup Faraday Future in the Hohhot Shaerqin Industrial Zone.
As part of the agreement, The9's joint venture with Faraday Future will receive resources and financial support from the Hohhot government.
According to the MOU, Hohhot Shaerqin Industrial Zone will provide at least 3 million square meters of land for the project and help the company to obtain the approvals and qualifications required for the production of electric vehicles.
At the same time, The9 and Hohhot Shaerqin Industrial Zone will jointly set up a new energy industry fund and invest in industry-related investment and operations.
"We will focus on using electric vehicle as a user terminal to integrate the upstream and downstream eco-chains of new energy industry, including power generation, energy storage, and power supply businesses. The support from Hohhot Government will greatly help to bring high-end technology of Faraday Future Inc. into China, and to produce and sell electric vehicles in China market. We aim to making contributions to the development of China's new energy industry." said Jun Zhu, Chief Executive Officer of The9 in a statement.
The9 announced that it was partnering with Faraday Future to sell electric cars in China on March 29.
The9 was born as an online game developer based in China and has been listed on Nasdaq since 2004.
The company aims to become a diversified high-tech Internet company.