The9 Limited (NASDAQ:NCTY) was set for big things on Monday markets after the company signed a Memorandum of Understanding with the Hohhot government in China; FF, The9 China JV, will receive resources and financial support from the Hohhot government.
Hohhot is the capital of Inner Mongolia in the north of the People's Republic of China, serving as the region's administrative, economic and cultural centre.
According to the MOU, Hohhot Shaerqin Industrial Zone will reserve no less than about three million square metres) of land for the JV's project and support the JV to obtain the approvals and qualifications required for production of electric vehicles.
At the same time, says the news release,The9 and Hohhot Shaerqin Industrial Zone will further negotiate on jointly set-up of a new energy industry fund to invest in new energy related projects and operations, of which The9 or its affiliate will contribute no less than RMB500 million, and the government will contribute and RMB1.5 billion (including government capital subsidy, infrastructure facilities and other commercial supporting facilities).
The9 CEO Jun Zhu declared, "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."
NCTY shares gathered 11 cents, or 9.6%, to $1.25
