Nine Energy Service, Inc. (NYSE:NINE)

First Quarter 2020 Financial Results

• Revenue, net loss and adjusted EBITDAA of $146.6 million, $(300.9) million and $10.3 million, respectively for the first quarter of 2020
  
• First quarter basic EPS of $(10.22) and $(0.51) adjusted basic EPSB
  

Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE: NINE) reported first quarter 2020 revenues of $146.6 million, net loss of $(300.9) million and adjusted EBITDA of $10.3 million. The first quarter net loss of $(300.9) million, or $(10.22) per basic share, includes goodwill impairment charges of $296.2 million associated with the tools, cementing and wireline reporting units. For the first quarter 2020, adjusted net lossc was $(14.9) million, or $(0.51) adjusted basic earnings per share. During the first quarter, the Company generated ROICd of –3%.

The Company had provided original first quarter 2020 revenue guidance between $150.0 and $160.0 million and adjusted EBITDA guidance between $10.0 and $13.0 million, with actual results for revenue falling slightly below Management’s original guidance range and results for adjusted EBITDA falling within Management’s original guidance. Revenue results came in lower than original guidance primarily due to rapidly deteriorating market conditions and activity curtailment in conjunction with oil price declines beginning in March.

"This quarter, revenue fell slightly below management’s original guidance. Adjusted EBITDA fell within the range of management’s original guidance, but we did experience significant market declines in the last month of the quarter. We do not feel Q1 is reflective in any way of the financial picture for the remaining quarters of the year," said Ann Fox, President and Chief Executive Officer, Nine Energy Service. "We have a strong liquidity position of $183.6 million as of March 31, 2020 consisting of $90.1 million of cash on the balance sheet and an undrawn ABL credit facility with $93.5 million of availability. As of March 31, 2020, we have a sizeable accounts receivable balance of $92.6 million and inventories balance of $63.1 million. Additionally, we purchased a portion of our bonds on the open market at a discount, lowering our annual cash interest expense and reducing our overall debt outstanding. To date, we have purchased bonds with a face value of approximately $29.7 million for a total purchase price of approximately $7.4 million."

"We continue to navigate an extremely volatile market with the energy industry suffering from both significant global demand reductions related to the COVID-19 pandemic, as well as a flood of supply hitting the market. In response to this, our customers quickly began further cuts to 2020 capex plans, dropping rigs and releasing frac crews. These ‘completions holidays’ are affecting all of our service lines with meaningful revenue and adjusted EBITDA declines."

"Our new low-temperature dissolvable plug was successfully commercialized during Q1 and the timeline for our high-temperature and new composite plug remain on-track for Q2 and Q3, respectively. Our team remains extremely pleased with the performance of our low-temperature plug, specifically in the Permian, as well as the interest from our customers in trialing the technology. The current market backdrop is a substantial headwind, which will delay near-term adoption; however, I am confident we will execute our previously scheduled trials and commercial commitments once activity resumes and customers look for new ways to reduce costs and cycle times in a depressed environment."

Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE: NINE) announced today that Clinton Roeder, Senior Vice President and Chief Financial Officer has departed the Company by mutual consent effective today.

Guy Sirkes, Vice President, Strategic Development, has assumed the role of Senior Vice President and Chief Financial Officer. Prior to joining the Company in March 2019, he was an Executive Director with J.P. Morgan’s Energy Investment Banking Group. There are no issues involving the company’s financial results, internal controls or financial reporting procedures that led to Mr. Roeder’s departure.

Ann Fox, Nine’s President and Chief Executive Officer said: "Clinton has been a valued member of the management team since he joined the Company in 2017. On behalf of the management team and the Board, I would like to thank him for his contributions and wish him well in his future endeavors."

Ms. Fox continued: "We are excited to have Guy assume the CFO role. I have great confidence in his ability to help lead the Company in this challenging market."

Fourth Quarter 2019 Financial Results

• Fourth quarter 2019 revenues of $163.4 million, net loss of $(220.5) million and adjusted EBITDA of $11.6 million.
• The fourth quarter net loss of $(220.5) million, or $(7.51) per basic share, includes intangible assets, PP&E and goodwill impairments of $106.3 million associated with the Coiled Tubing service line and an intangible asset impairment of $95.0 million associated with the Completion Tools service line.
• For the fourth quarter 2019, adjusted net lossD was $(16.8) million, or $(0.57) adjusted basic earnings per share. During the fourth quarter, the Company generated ROICc of -3%.

The Company had provided original fourth quarter 2019 revenue guidance between $150.0 and $160.0 million and adjusted EBITDA guidance between $11.0 and $15.0 million, with actual results for revenue outperforming Management’s original guidance range and results for adjusted EBITDA falling within Management’s original guidance.

"The fourth quarter was as anticipated, with revenue outperforming and adjusted EBITDA falling within Management’s original guidance range," said Ann Fox, President and Chief Executive Officer, Nine Energy Service. "Additionally, we continued our strong working capital management into Q4, ending the year with a cash balance of $93.0 million even with interest, capex and the retention bonus associated with the Magnum acquisition during the fourth quarter."

"As expected, we saw drilling and completion activity decline in Q4 due to holidays, weather and budget exhaustion. Market share for Nine remained stable across the majority of service lines, but we did see full quarter realizations of Q3 pricing concessions, which led to the majority of the margin compression quarter over quarter. Coiled Tubing has been the hardest hit service line from a pricing and activity perspective due to an over-supply of large diameter units coming into the market, coupled with a decrease in activity across regions."

"Despite a very tough market in 2019, the execution of our strategic initiatives throughout the year has been very successful. We effectively commercialized our low-temperature dissolvable plug for Q1 2020, which continues to be run and trialed with many customers across multiple basins, providing Nine a first-mover advantage in the low-temp dissolvable market. Additionally, the timeline for our new high-temp dissolvable and composite plug remain on schedule. These technology developments were accomplished in large part because of our acquisition of Magnum and collaboration between both legacy teams around both IP design and materials science. We also successfully completed the sale of our Production Solutions segment, and closed wireline operations in Canada, which will be accretive to ROIC, adjusted EBITDA margins and cash generation. Our operational teams were able to once again prove their ability to grow market share in a declining activity environment, with Nine’s percentage of U.S. stages completed increasing over 100 basis points in 2019. I am also extremely proud of our employees as Nine ended the year with the lowest and best TRIR safety score in the Company’s history at 0.77."

"Throughout 2018 and 2019 we re-shaped the Company to align with our strategy of being asset-light and building additional barriers to entry, which we believe will enable us to increase profitability, expand margins and increase free cash flow for the future. We have just begun to see our thesis materialize with strong cash generation in the second half of 2019, which we anticipate continuing into 2020 and beyond. 2020 capex will decrease by over 60%, which will serve as a sustainable run-rate as we transition the derivation of more of our top-line revenue contribution from completion tools."

"Q1 2020 is off to a slower start versus this time in 2019, and we anticipate Q1 2020 being relatively flat to Q4 2019. Despite market conditions, we are very optimistic about Nine’s opportunity to differentiate with our unique positioning in the market to grow within our tools business. Our team has and will remain focused on driving value for our shareholders, customers and employees and will continue to follow our returns-based growth strategy into 2020."

For the year ended December 31, 2019, the Company reported revenues of $832.9 million, net loss of $(217.8) million and adjusted EBITDA of $113.0 million. Full year 2019 adjusted net income was $9.4 million, or $0.32 per adjusted basic share. For the year ended December 31, 2019, the Company generated ROIC of 6%.

Third Quarter 2019 Financial Results

• Reported third quarter 2019 revenues of $202.3 million, net loss of $(20.6) million, which includes a loss on the sale of the Production Solutions segment of approximately $15.8 million and adjusted EBITDA of $24.2 million
  
• Third quarter 2019 net loss per basic share was $(0.70). Third quarter 2019 adjusted net lossD was $(4.7) million, or $(0.16) per adjusted basic share
  

“Even with the restructuring of our service offerings and geographical footprint, adjusted EBITDA fell within the range of management’s original guidance this quarter,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “Despite market conditions weakening throughout the quarter, we were able to grow cash flow from operations by over 6x compared to Q2, increasing our current cash position significantly to $93.3 million as of September 30th. We expect our cash generation to remain strong through the remainder of the year and into 2020 as we grow our completion tool business and materially reduce total capex.”

“During Q3 our customers remained extremely focused on staying within capital budgets, prompting many operators to reduce activity in the second half of the year. Activity declines, as well as irrational behavior from competitors, has led to increased pricing pressure, for which no service line is immune. The hardest hit region remains the Northeast where we have wireline and completion tool exposure, but rig count and frac crew curtailments are taking place across the U.S. Our cementing business remained steady this quarter despite rig count dropping by approximately 11% quarter over quarter.”

“At Nine, we have been focused on executing our 2019 strategic initiatives, including the evaluation of existing service lines and geographies, as well as the development of our new dissolvable and composite plug technologies. During the third quarter, we completed the sale of our Production Solutions segment, and closed down wireline operations in Canada. We expect the elimination of these offerings from our portfolio to be accretive to ROIC, adjusted EBITDA margins and cash generation. We also continue to make significant progress in the development of our new dissolvable and composite plug technology. The timeline for commercialization of our three new tools remains on-track. We still anticipate our low-temperature dissolvable plug will be commercial in Q1 of 2020 as we continue to have success with our trials throughout the U.S. and Canada.”

“We do expect further activity declines into Q4 with budget exhaustion, holidays and weather impacts. With current market conditions, we are managing costs very closely and actively working with our operational teams to ensure we are shielding margin wherever possible without fundamentally impeding our future earnings potential. Despite market conditions in 2020, at Nine we have a unique opportunity to increase profitability, expand margins and increase free cash flow with the introduction of our new technology.”

HOUSTON--(BUSINESS WIRE)--Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE: NINE) reported second quarter 2018 revenues of $205.5 million, net income of $9.0 million and adjusted EBITDA of $30.6 million. Second quarter 2018 revenues increased approximately 18% as compared to the first quarter 2018 revenues of $173.8 million. For the second quarter of 2018, the Company reported net income of $9.0 million, or $0.37 per diluted share. This compares to net income of $1.7 million, or $0.08 per diluted share in the first quarter of 2018. The Company reported second quarter 2018 adjusted EBITDA of $30.6 million, an increase of approximately 27% compared to first quarter 2018 adjusted EBITDA of $24.1 million, and represented the sixth sequential quarterly increase. The Company had provided second quarter 2018 revenue guidance between $185.0 and $195.0 million and adjusted EBITDA guidance between $27.0 and $29.0 million, with actual results outperforming the midpoint of second quarter 2018 revenue guidance by approximately 8% and the midpoint of second quarter adjusted EBITDA guidance by approximately 9%. For the second quarter of 2018, the Company generated an ROIC of 8%, as compared to first quarter 2018 ROIC of 3%.

“The team at Nine continues to execute in the field and drive growth for the Company,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “We remain focused on offering our customers a unique blend of outstanding wellsite execution and service with a portfolio of innovative and reliable technology to increase efficiencies and decrease cycle time,” said Fox. "With our proven track record, we have been able to gain market share and strategically increase price as seen through the significant growth on the top line of approximately 18% and increasing net income by over five times over the first quarter of 2018. We were also happy to see our ROIC increase by approximately 500 basis points this quarter. ROIC will continue to help guide management on capital deployment decisions moving forward and gauging Company performance.”

“The trends in onshore completions continue to help propel the Completion Solutions Segment across all service lines. Our completion tools and wireline stages grew approximately 30% collectively quarter over quarter despite US land rig count increasing approximately 7% and market stage count growing approximately 8%. Operational efficiencies within Nine continue to improve and help Nine navigate labor bottlenecks with the average stages per employee per month increasing over 40% through the first half of the year," said Fox.

“We remain positive on the outlook for North American shale and for the company moving forward, anticipating another quarter of both revenue and adjusted EBITDA growth in the third quarter of 2018. This growth will be driven by both completion tools and our completions services, all of which directly benefit from industry trends of more complex completions and multi-pad development,” Fox concluded.

Business Segment Results

Completion Solutions

During the second quarter of 2018, the Company’s Completion Solutions segment, which includes the Company’s cementing, completion tools, wireline and coiled tubing services reported revenues of $185.1 million compared to first quarter 2018 revenues of $154.6 million, representing an approximate 20% increase. For the second quarter 2018, Completion Solutions reported adjusted gross profitc of $39.1 million compared to first quarter 2018 adjusted gross profit of $33.2 million, representing an approximate 18% increase.

Production Solutions

During the second quarter of 2018, the Company’s Production Solutions segment, which includes well services, generated revenues of $20.4 million compared to first quarter 2018 revenues of $19.2 million, representing an approximate 6% increase. For the second quarter 2018, Production Solutions reported adjusted gross profit of $2.8 million compared to first quarter 2018 adjusted gross profit of $2.4 million, representing an approximate 18% increase.

Other Financial Information

During the second quarter of 2018, the Company reported selling, general and administrative expense of $16.1 million, compared to $15.4 million for the first quarter of 2018. Depreciation and amortization expense ("D&A") in the second quarter of 2018 was $15.1 million, compared to $15.0 million for the first quarter of 2018.

During the second quarter of 2018, the Company’s effective tax rate was 6.7%. The effective income tax rate for the quarter was primarily attributable to changes in pre-tax book income and valuation allowance positions as well as tax liability in states where income is expected to exceed available net operating losses.

Liquidity and Capital Expenditures

During the second quarter of 2018, the Company reported net cash provided by operating activities of $7.9 million, compared to $17.3 million for the first quarter of 2018.

As of June 30, 2018, Nine’s cash and cash equivalents were $70.9 million with $50.0 million of revolver capacity, $49.3 million of which is currently available, resulting in a total liquidity position of $120.2 million as of June 30, 2018.

Capital expenditures totaled $11.6 million during the second quarter of 2018, compared to $6.5 million in the first quarter of 2018.

HOUSTON--(BUSINESS WIRE)--

Nine Energy Service, Inc. ("Nine" or the "Company") (NINE) reported first quarter 2018 revenues of $173.8 million, net income of $1.7 million and adjusted EBITDA of $24.1 million. First quarter 2018 revenues increased approximately 13% as compared to the fourth quarter 2017 revenues of $154.3 million. For the first quarter of 2018, the Company reported net income of $1.7 million, or $0.08 per diluted share. This compares to a net loss of $(29.8) million, or $(1.89) per diluted share in the fourth quarter of 2017, which included a $35.5 million goodwill and intangible impairment. The Company reported first quarter 2018 adjusted EBITDA of $24.1 million, an increase of approximately 29% compared to fourth quarter 2017 adjusted EBITDA of $18.7 million, and represented the fifth sequential quarterly increase. The Company had provided first quarter 2018 revenue guidance between $166.0 and $168.0 million and adjusted EBITDA guidance between $22.0 and $24.0 million, with actual results outperforming the midpoint of first quarter 2018 revenue guidance by approximately 4% and the midpoint of first quarter adjusted EBITDA guidance by approximately 5%. For the first quarter of 2018, the Company generated an ROIC of 3%.

Nine’s President and Chief Executive Officer, Ann Fox, commented, “Nine continues to capitalize and execute on the improving macro backdrop, increasing adjusted EBITDA by 29% quarter over quarter and generating $17.3 million in cash flow from operations despite a use of net working capital due to growing revenue by 13%. North American land activity and completion complexity continue to increase, allowing the Company to differentiate through wellsite execution and a comprehensive technology portfolio. By having both the conveyance and the tools, we provide a differentiated and sustainable value proposition to our customers by driving efficiencies and increasing production.”

“The Completion Solutions Segment continues to drive growth for Nine. Completion Solutions revenue grew approximately 15% quarter over quarter despite no additional equipment coming online during the first quarter of 2018, but rather was driven by a significant increase in utilization and profitability across all service lines. We anticipate this trend will continue into the second quarter. Nine’s Scorpion Plugs continue to gain market share and we are still running field trials for the EON XLR frac sleeve and casing flotation tools.”

“We remain very optimistic on North American shale as macro fundamentals continue to improve. Our disciplined approach to deploying capital has allowed us to navigate the labor and supply chain constraints within the industry and maintain our service execution at the wellsite, while still delivering substantial financial growth. ROIC remains at the forefront for measuring Company performance and guiding Management decision-making. Our 8% ROIC target for 2018 is on track. We are anticipating our sixth sequential quarter of revenue and adjusted EBITDA growth into the second quarter of 2018 and remain focused on supplementing our completions technology portfolio through our three-pronged strategy.”

Business Segment Results

Completion Solutions

During the first quarter of 2018, the Company’s Completion Solutions segment, which includes the Company’s cementing, completion tools, wireline and coiled tubing services reported revenues of $154.6 million compared to fourth quarter 2017 revenues of $134.7 million, representing an approximate 15% increase. For the first quarter 2018, Completion Solutions reported adjusted gross profitc of $33.2 million compared to fourth quarter 2017 adjusted gross profit of $25.8 million, representing an approximate 29% increase.

Production Solutions

During the first quarter of 2018, the Company’s Production Solutions segment, which includes well services, generated revenues of $19.2 million compared to fourth quarter 2017 revenues of $19.6 million, representing an approximate 2% decrease. For the first quarter 2018, Production Solutions reported adjusted gross profit of $2.4 million compared to fourth quarter 2017 adjusted gross profit of $2.9 million, representing an approximate 19% decrease.

Other Financial Information

During the first quarter of 2018, the Company reported selling, general and administrative expense of $15.4 million, compared to $11.9 million for the fourth quarter of 2017. Depreciation and amortization expense ("D&A") in the first quarter of 2018 was $15.0 million, compared to $15.3 million for the fourth quarter of 2017.

During the first quarter of 2018, the Company’s effective tax rate was 5%. The effective income tax rate for the quarter was primarily attributable to changes in pre-tax book income and valuation allowance positions as well as tax liability in states where income is expected to exceed available net operating losses.

Liquidity

During the first quarter of 2018, the Company reported net cash provided by operating activities of $17.3 million, compared to $1.9 million for the fourth quarter of 2017.

As of March 31, 2018, Nine’s cash and cash equivalents were $72.9 million with $50.0 million of revolver capacity, $49.4 million of which is currently available, resulting in a total liquidity position of $122.3 million as of March 31, 2018.

Fourth Quarter 2017 Financial Results

• Fourth quarter 2017 revenues increased approximately 93% as compared to the fourth quarter 2016 revenues of $80.0 million.
• The net loss for full year 2017 totaled $(67.7) million, or $(4.55) loss per diluted shareB, compared to year ended December 31, 2016 net loss of $(70.9) million, or $(5.34) loss per diluted share.

Nine’s President and Chief Executive Officer, Ann Fox, commented, "We realized tremendous growth in 2017 by remaining focused on providing our customers with excellent service execution and cutting-edge technology. Despite a decrease in U.S. rig count quarter-over-quarter, we were able to grow revenue and adjusted EBITDA for the fourth sequential quarter in a row, beating the midpoint of our adjusted EBITDA expectations by approximately 19%. Working for the most efficient customers and completing the most complex and technical wells enables us to differentiate ourselves in the market from a technology and tool conveyance perspective. We benefit directly from the secular trends in the completions space and we anticipate the high-level of completion intensity to continue as lateral lengths extend helping to drive top-line growth and margin, while also creating unique operating efficiencies within Nine. These efficiencies will provide a competitive advantage as labor and equipment remains extremely tight.”

“We are continuing to supplement our technology portfolio with both internal R&D and strategic alliances. Most recently, we signed an exclusive distribution agreement with a technology company for casing flotation tools with field trials starting in the first quarter of 2018 in the Northeast. Additionally, we are in the middle of trialing our EON XLR frac sleeve system. Both of these tools fit nicely into our ‘deep-reach’ technology portfolio and we will remain focused on sourcing and developing technology throughout 2018.”

“I am extremely proud of our team and what we have accomplished this year after a very difficult downturn for the industry. We exceeded both our financial and operational expectations in 2017 and have positioned the company for continued success this year. The macro outlook remains positive and we believe supply-demand fundamentals support additional activity in 2018 as capital continues to flow into North American shale. Our first quarter of 2018 is progressing as we anticipated, and we are optimistic about 2018. We will continue to follow our returns-based growth strategy into the remainder of 2018 and expect to improve ROIC through disciplined capital deployment and controlled growth to ensure our standard of excellence at the wellsite.”

HOUSTON--(BUSINESS WIRE)--

SCF Partners (“SCF”) is pleased to announce that Nine Energy Service, Inc. (NINE) (“Nine” or the “Company”) successfully completed an initial public offering of 7,000,000 shares of its common stock at $23.00 per share. In addition, the underwriters have exercised in full their option to purchase up to an additional 1,050,000 shares of Nine’s common stock. Nine’s shares trade on the New York Stock Exchange under the ticker symbol “NINE.”

“Nine’s entrance into the public markets represents a critical step in the evolution of the company as a leader in the North American completions sector. The IPO strengthens the company’s balance sheet and positions the Company to take advantage of future growth opportunities. We are incredibly proud of and thankful for the Nine team and all they have done to build the Company. We look forward to their journey ahead as a public company,” said Co-President, Andy Waite.

Nine Energy Service, Inc. is a leading North American onshore completion and production services provider that targets unconventional oil and gas resource development. Nine provides services to exploration and production customers across all major onshore basins in both the U.S. and Canada to design and deploy downhole solutions and technology to prepare horizontal, multistage wells for production. Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus, Utica and throughout Canada.

BEIJING, May 30, 2014 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced the completion of the merger contemplated by the previously announced agreement and plan of merger dated January 29, 2014 (the "Merger Agreement"), among the Company, Ninetowns Holdings Limited ("Parent") and Ninetowns Merger Sub Limited ("Merger Sub"). As a result of the merger, the Company became a wholly owned subsidiary of Parent.

Under the terms of the Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting held on May 29, 2014, each outstanding ordinary share of the Company ("Share") has been cancelled in exchange for the right to receive US$1.80 per Share and each American depositary share ("ADS"), each representing one Share, has been cancelled in exchange for the right to receive US$1.80 per ADS (less a US$0.05 per ADS cancellation fee pursuant to the terms of the ADS deposit agreement), in each case, in cash, without interest and net of any applicable withholding taxes, except for the Shares (including Shares represented by ADSs): (a) beneficially owned by Parent, Merger Sub, Mr. Shuang Wang, Ms. Min Dong, Value Chain International Limited, Mr. Xiaoguang Ren, Mr. Kin Fai Ng, Oriental Plan Developments Limited, Mr. Bolin Wu, Mr. Zhonghai Xu and Mr. Tommy Siu Lun Fork, (b) represented by ADSs held by JPMorgan Chase Bank, N.A. (the "Depositary") for the Company which were reserved for issuance upon exercise of options and vesting of restricted shares under the Company option plans as well as Shares represented by ADSs previously repurchased by the Company and (c) owned by shareholders who have validly exercised and have not effectively withdrawn or lost their appraisal rights under Section 238 of the Cayman Islands Companies Law.

Registered shareholders entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their share certificates in exchange for the merger consideration and should wait to receive the letter of transmittal before surrendering their share certificates. Payment of the merger consideration will be made to surrendering ADS holders and holders of ADSs in uncertificated form as soon as practicable after the Depositary receives the merger consideration.

The Company also announced today that it requested that trading of its ADSs on the NASDAQ Global Market (the "NASDAQ") be suspended beginning on May 30, 2014. The Company requested that the NASDAQ file a Form 25 with the Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of the Company's ADSs on the NASDAQ and the deregistration of the Company's registered securities. The Company intends to terminate its reporting obligations under the Securities Exchange Act of 1934, as amended, by filing a Form 15 with the SEC in ten days. The Company's obligation to furnish to or file with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will cease once the deregistration becomes effective.

BEIJING, May 29, 2014 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced that, at an extraordinary general meeting held today, the Company's shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger dated January 29, 2014 (the "Merger Agreement"), among the Company, Ninetowns Holdings Limited ("Parent") and Ninetowns Merger Sub Limited ("Merger Sub"), pursuant to which Merger Sub will be merged with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent (the "Merger"). Of the Company's ordinary shares entitled to vote at the extraordinary general meeting, approximately 86.3% of such ordinary shares were voted in person or by proxy at today's meeting. The proposal to approve the Merger Agreement and the transactions contemplated thereby, including the Merger, received approval from (i) holders of approximately 97.6% of the ordinary shares present and voting in person or by proxy as a single class at the extraordinary general meeting and (ii) approximately 96.5% of the ordinary shares held by shareholders (excluding the shareholders who are members of the buyer consortium that will indirectly own 100% of the Company if the Merger is completed) present and voting in person or by proxy as a single class at the extraordinary general meeting.

Completion of the Merger is subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement. The Company will work with the various other parties to the Merger Agreement to satisfy all other conditions precedent to the Merger set forth in the Merger Agreement and complete the Merger as quickly as possible. If and when completed, the Merger would result in the Company becoming a privately held company and its American depositary shares, each representing one ordinary share, would no longer be listed on the NASDAQ Global Market.

Second Half 2013 Financial Highlights

• Total net revenues were RMB56.5 million (US$9.3 million), representing a 21% increase compared to RMB46.5 million for the second half of 2012.
• Net loss was RMB28.9 million (US$4.8 million) compared to net income of RMB13.2 million for the second half of 2012.
• Basic and diluted net loss per ADS (each ADS represents one ordinary share) were RMB0.76 (US$0.13) and RMB0.76 (US$0.13), respectively, compared to basic and diluted net income per ADS of RMB0.35 and RMB0.32 for the second half of 2012.

Management Discussion

Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented, "We concluded 2013 with an increase in the top line, thanks to the continued strong growth from our food-related e-commerce business. Sales in our import/export enterprise software and services business experienced a decline in 2013 mainly due to negative macro factors including a lukewarm global trade environment, an overall economic slowdown in China and government mandated changes to export inspection rules. We have been closely monitoring the industry dynamics and adopted necessary measures to cope with the macroeconomic headwinds. In the meantime, we are pleased to report continued strong revenue contribution from our food-related e-commerce business, which accounted for 42% of total net revenues in 2013. Going forward, we intend to meet the demand for timely delivery of healthy fresh foods and household products by further expanding the scope and reach of our products and services and improve our customers' experience. We expect revenue contribution from our food-related e-commerce business will continue to grow. We also intend to continue to focus on our property development initiatives and will continue to invest time and management resources in suitable property development projects to capture the growth opportunities in China's property market."

Mr. Tommy Fork, Chief Financial Officer of Ninetowns, commented, "We are pleased to see an increased top line against negative macro factors in 2013. We have a healthy balance sheet with cash, cash equivalents and term deposits of RMB421.6 million at the end of 2013. The solid financial position well positions us for further development in our food-related e-commerce business and property development projects. However, as previously announced, we expect our top line and bottom line to be adversely affected by the new rule changes in our B2G segment. We are in the process of reviewing our options in response to these new rule changes, while recognizing that such options may be limited."

BEIJING, April 30, 2014 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced that it has called an extraordinary general meeting of shareholders (the "EGM"), to be held on May 29, 2014, at 10:00 a.m. (Hong Kong time), at 22nd Floor, Bank of China Tower, 1 Garden Road, Hong Kong, to consider and vote on, among others, the proposal to authorize and approve the previously announced agreement and plan of merger, dated January 29, 2014 (the "Merger Agreement"), among the Company, Ninetowns Holdings Limited ("Parent") and Ninetowns Merger Sub Limited ("Merger Sub") and the plan of merger to be filed with the Registrar of Companies of the Cayman Islands, substantially in the form attached as Appendix I to the Merger Agreement ("Plan of Merger") and the transactions contemplated thereby, including the merger.

Pursuant to the Merger Agreement and the Plan of Merger, Merger Sub will be merged with and into the Company (the "Merger") with the Company continuing as the surviving corporation. If completed, the Merger would result in the Company becoming a privately-held company and its American depositary shares (the "ADSs") would no longer be listed on the NASDAQ Global Market and the American depositary shares program for the ADSs would be terminated. A special committee of the board of directors of the Company (the "Special Committee"), composed solely of directors unrelated to the buyer consortium which will own 100% of the Company if the Merger is completed (the "Consortium"), unanimously determined that the terms of the transactions contemplated by the Merger Agreement, as a whole, are procedurally fair to the Company's unaffiliated shareholders and unaffiliated ADS holders, but did not formally reach a conclusion on the substantive fairness of any aspect of the proposed transactions. The Special Committee unanimously determined, among other things, that it is in the best interests of the Company and its unaffiliated shareholders and unaffiliated ADS holders to enter into the Merger Agreement, and that the Merger, the Merger Agreement and the Plan of Merger be submitted by the Company to its shareholders for their approval at the EGM, without the Special Committee recommending approval (or recommending disapproval) of the Merger, the Merger Agreement or the Plan of Merger by the Company's shareholders. The Company's board of directors, after carefully considering all relevant factors, including the unanimous determination and recommendation of the Special Committee, unanimously determined, among other matters, that it is in the best interests of the Company and its unaffiliated shareholders and unaffiliated ADS holders to enter into the Merger Agreement and that the Merger, the Merger Agreement and the Plan of Merger be submitted by the Company to its shareholders for their approval at the EGM. In addition, the Company's board of directors (which, after excluding the Company's independent directors who were present but abstained from voting, consisted only of Mr. Shuang Wang, the chief executive officer of the Company, and Mr. Kin Fai Ng, a senior vice president and company secretary of the Company, both of whom are members of the Consortium), after carefully considering all relevant factors, including the unanimous determination and recommendation of the Special Committee, recommended that the shareholders vote FOR, among other matters, the proposal to authorize and approve the Merger Agreement and the transactions contemplated thereby, including the Merger.

BEIJING, January 29, 2014 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced that it has entered into an agreement and plan of merger, dated January 29, 2014 (the "Merger Agreement"), with Ninetowns Holdings Limited ("Parent"), an exempted company with limited liability incorporated under the laws of the Cayman Islands, and Ninetowns Merger Sub Limited ("Merger Sub"), an exempted company with limited liability incorporated under the laws of the Cayman Islands wholly-owned by Parent, pursuant to which Parent will acquire the Company (the "Transaction") for US$1.80 per ordinary share. This represents a premium of 66.7% over the closing price of US$1.08 on October 11, 2012, the last trading day prior to the Company's announcement on October 12, 2012 that it had received a "going private" proposal.

Parent is jointly owned by Mr. Shuang Wang, a director and the chief executive officer of the Company, Ms. Min Dong, the wife of Mr. Shuang Wang and senior vice president of legal affairs, administration and human resources of the Company, Value Chain International Limited, a company incorporated under the laws of the British Virgin Islands and wholly owned by Mr. Shuang and Ms. Min Dong, Mr. Xiaoguang Ren, president of the Company, Mr. Kin Fai Ng, a director and senior vice president and company secretary of the Company, Oriental Plan Developments Limited, a company incorporated under the laws of the British Virgin Islands and wholly owned by Mr. Kin Fai Ng, Mr. Bolin Wu, chief technology officer of the Company, Mr. Zhonghai Xu, general manager for research and development of the Company, and Mr. Tommy Siu Lun Fork, chief financial officer of the Company (collectively, the "Consortium"). The Consortium collectively beneficially owns approximately 31.4% of the outstanding shares of the Company (excluding reserved shares and repurchased shares).

Pursuant to the Merger Agreement, upon the terms and subject to the conditions thereof, at the effective time of the merger, Merger Sub will be merged with and into the Company, the Company will become a wholly-owned subsidiary of Parent and each of the Company's ordinary shares issued and outstanding immediately prior to the effective time of the merger (including ordinary shares represented by ADSs, each of which represents one ordinary share) will be converted into the right to receive US$1.80 in cash without interest, except for the ordinary shares (including ordinary shares represented by ADSs): (a) beneficially owned by any member of the Consortium, (b) represented by ADSs held by JPMorgan Chase Bank, N.A. (the "Depositary") for the Company which are reserved for issuance upon exercise of options and vesting of restricted shares under the company option plans, (c) held by the Depositary for the Company which were repurchased by the Company under the Company's share repurchase plan and (d) owned by shareholders who have validly exercised and have not effectively withdrawn or lost their dissenters' rights pursuant to Section 238 of the Cayman Islands Companies Law Cap. 22 (law 3 of 1961, as consolidated and revised).

The special committee formed by the Board of Directors (the "Special Committee"), which is composed solely of directors unrelated to the Parent, Merger Sub, the Consortium or any of the management members of the Company, negotiated the terms of the Merger Agreement with the assistance of its legal advisors.

The Transaction, which is currently expected to close before the end of the second quarter of 2014, is subject to the approval of the Merger Agreement and the Transaction by (i) an affirmative vote of shareholders representing not less than two-thirds of the ordinary shares present and voting in person or by proxy as a single class at the extraordinary general meeting of the Company's shareholders which will be convened to consider the approval of the Merger Agreement and the Transaction (the "Shareholders' Meeting") and (ii) an affirmative vote of shareholders representing a majority of the ordinary shares present and voting in person or by proxy at the Shareholders' Meeting other than the ordinary shares and ADSs beneficially owned (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1933) by any member of the Consortium, as well as certain other customary closing conditions. Members of the Consortium have agreed to vote in favor of such approval. If completed, the Transaction will result in the Company becoming a privately-held company and its ADSs will no longer be listed on the NASDAQ Global Market.

Financial results for the six-month period ended June 30, 2013.

• Total net revenues were RMB51.4 million (US$8.4 million), representing a 17% increase compared to RMB43.9 million for the first half of 2012.
• Basic and diluted net income per ADS (each ADS represents one ordinary share) were RMB0.39 (US$0.06) and RMB0.36(US$0.06), respectively, compared to basic and diluted net income per ADS of RMB1.47 and RMB1.35 for the first half of 2012.

 Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented: "We delivered healthy revenue growth in the first half of 2013 despite a relatively tepid global trade environment and ongoing economic headwinds in China. While the performance of our core enterprise software segment was mixed, our top-line benefited from steady growth in our B2C e-commerce business. We are pleased with the success of our food related business to date, as consumer demand for our fresh foods and household products backed by our 'guaranteed fresh' delivery service continues to grow. We will continue to promote the offering to further increase our customer base and will prudently invest in the growth of this segment to keep pace with consumer demand. We are also pleased to report progress on our property development initiative, with construction progressing smoothly on our Dalian project. We will continue to invest time and management resources in our property development projects which we believe present significant long-term growth opportunities."

Mr. Tommy Fork, Chief Financial Officer of Ninetowns, commented, "Our continued top-line growth coupled with our healthy balance sheet provides us with a stable financial basis to continue developing our food related and property development businesses. However, as recently announced, we expect our overall financial performance to be adversely affected by recent changes to the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Entry-Exit Inspection and Quarantine Authorities, as these rule changes directly impact the market opportunity for our B2G segment which facilitates the processing of the required import/export declarations and approvals for the quality inspection. We are in the process of reviewing our options in response to these new rule changes, while recognizing that such options may be limited."

BEIJING, August 23, 2013 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (Nasdaq: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, announced today that it expects its net revenues and net income to be adversely affected by recent changes to the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Entry-Exit Inspection and Quarantine Authorities (the "Catalogue").

On August 1, 2013, the General Administration of Quality Supervision, Inspection and Quarantine of the PRC announced certain changes to the Catalogue. Beginning on August 15, 2013, 1,507 categories of items that were originally contained in the Catalogue are no longer subject to quality inspection prior to export, although 87 categories will still be subject to animal and plant quarantine inspection prior to export after the change to the Catalogue.

Mr. Tommy Fork, Chief Financial Officer of the Company, stated, "We are currently evaluating the impact these changes could have on our business. We expect our net revenues from sales of enterprise software and related customer maintenance services, which represented 62.9%, 81.1% and 66.2% of our total net revenues for 2010, 2011 and 2012, respectively, to decrease as the market demand for our products and services, which facilitate the processing of the required import / export declarations and approvals for the quality inspection, decreases as a result of these changes."

Mr. Fork further stated, "We are considering possible steps we should take in response to these changes; however, there can be no assurance that any solution that we pursue will be sufficient to avoid an adverse impact."

Second Half 2012 Financial Results

• Total net revenues were RMB46.5 million (US$7.5 million), representing a 7% increase compared to RMB43.3 million for the second half of 2011.
• Net income was RMB13.2 million (US$2.1 million) compared to net loss of RMB1.6 million for the second half of 2011.
• Basic and diluted net income per ADS (each ADS represents one ordinary share) were RMB0.35 (US$0.06) andRMB0.32 (US$0.05), respectively, compared to basic and diluted net loss per ADS of RMB0.04 and RMB0.04 for the second half of 2011.

Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented: "We are pleased to report an increase in revenue and net income for the second half and full year 2012. Decreased sales of our iDeclare software package and services we provided to our pay per transaction users resulting from the lower level of import/export activity in Chinathroughout 2012 was partially offset by an increase in sales of iDeclare service contracts as well as continued growth in our B2C e-commerce business. We have continued to effectively manage our enterprise software segment in the face of macroeconomic headwinds, with a focus on maintaining existing customers while seeking to attract new customers. We believe that the growth in iDeclare service contracts sold during the year demonstrates our commitment to providing best-in-class solutions and services to our customers. However, we expect to face continued challenges in our enterprise software segment in the year ahead in light of the tepid economic and trade outlook forChina."

"Despite the challenges we face in our enterprise software segment, we are encouraged by the continued progress in our newer business initiatives. In terms of our B2C e-commerce business, we are pleased to report the fourth consecutive year of growth for this business segment, driven by steady customer demand for our fresh foods and household products backed by our 'guaranteed fresh' delivery service. Our B2C e-commerce business has benefited from increasing awareness of and interest in healthy, organic and local food products by consumers throughout our target market areas in Beijing. The growth in demand has resulted in this segment accounting for approximately 26% of our total net revenues for the full year, a considerable achievement in a relatively short period of time. We plan to continue to focus on expanding the product offering with the goal of increasing our customer base and driving continued revenue growth. Finally, we expect to continue to focus our time and resources on the advancement of our property development initiatives. As previously reported, we currently have four projects in the development pipeline, and we are working to move these projects through the development process. Together, we believe these two new business initiatives provide us with a platform for future growth, supported by the continued contribution from our core enterprise software segment."

Mr. Tommy Fork, Chief Financial Officer of Ninetowns, commented, "Our improved financial performance in 2012 positions us well to continue investing in and growing our newer business initiatives while maintaining a stable performance within our core enterprise software segment. We plan to continue to invest prudently in our new initiatives while maintaining a focus on cost controls in an effort to build a sustainable platform for profitable growth."

Second Half 2012 Results

• Total net revenues were RMB43.9 million (US$6.9 million), representing a 38% increase as compared to RMB31.9 million (US$4.9 million) for the first half of 2011.
• Net income was RMB55.3 million (US$8.7 million), as compared to net income of RMB5.2 million (US$0.8 million) for the first half of 2011. 
• Basic and diluted net income per ADS (each ADS represents one ordinary share) were RMB1.47 (US$0.24) and RMB1.35 (US$0.21), respectively, compared to basic and diluted net income per ADS of RMB0.14 (US$0.02) and RMB0.13 (US$0.02) for the first half of 2011.

BEIJING , Oct. 12, 2012 /PRNewswire/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China 's leading providers of online solutions for international trade, today announced that its Board of Directors has received a preliminary non-binding proposal letter, dated October 12, 2012 , from certain directors and officers of the Company, including Mr. Shuang Wang , Ms. Min Dong , Mr. Xiaoguang Ren , Mr. Kin Fai Ng , Mr. Bolin Wu , Mr. Zhonghai Xu , Mr. Tommy Siu Lun Fork and affiliates of some of these directors and officers (together, the "Consortium Members"), that proposes a "going-private" transaction involving the acquisition of all of the outstanding ordinary shares of the Company not already owned by the Consortium Members at a price per share in the range of US$1.80 to US$2.00 in cash (the "Transaction"). Each American depositary share of the Company represents one ordinary share.

According to the proposal letter, the Consortium Members will form an acquisition vehicle for the purpose of pursuing the Transaction, and the Transaction is intended to be financed with a combination of cash from the resources of the Company, its subsidiaries and the acquisition vehicle to be formed by the Consortium Members, as needed. A copy of the proposal letter is attached hereto as Exhibit A.

The Company's Board of Directors has formed a special committee of independent directors (the "Special Committee") consisting of Mr. Martin Cheung , Mr. Da Chun Zhang and Mr. Mark Ming Hsun Lee to consider the Transaction. The Special Committee is authorized to retain financial, legal and other advisors to assist it in its review of the Transaction. Paul Hastings LLP is acting as the Company's U.S. counsel and Ropes & Gray is acting as U.S. counsel to the Consortium Members.

The Company cautions its shareholders and others considering trading in its securities that the Board of Directors has just received the non-binding proposal from the Consortium Members and no decisions have been made with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to the Transaction or any other transaction, except as required under applicable law.

Second Half 2011 Financial Highlights

• Total net revenues were RMB43.3 million (US$6.9 million), representing a 7% increase compared toRMB40.5 million (US$6.1 million) for the second half of 2010.
• Net loss was RMB1.6 million (US$0.3 million) compared to net income of RMB19.3 million (US$2.9 million) for the second half of 2010.
• Basic and diluted net loss per ADS (each ADS represents one ordinary share) were RMB0.04 (US$0.01), compared to basic and diluted net income per ADS of RMB0.53 (US$0.08) and RMB0.51 (US$0.07), respectively, for the second half of 2010.

Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented, "We concluded 2011 with continued growth in our core enterprise software segment, achieved through our strengthened marketing efforts and our determination to maintain existing customers and attract new customers. However, we expect to face continued headwinds in our core business in light of the muted growth expectations for China's economy in the year ahead. Nevertheless, we remain committed to the execution of our strategy to retain customers and develop our client base through flexible pricing, continuous product updates and focus on high quality nationwide service and support.

"While our core enterprise software segment continues to be our main revenue driver in the near- to mid-term, we are placing increasing focus on our newer business initiatives, which include our e-grocery business and our property development business. We are pleased to report continued revenue contribution from our e-grocery business, which accounted for 9% of total net revenues in the second half of 2011. The progress we have made thus far has confirmed the viability of this business concept, and our focus will now shift to expanding the scope and reach of our products and services. We are also making progress on our property development business, having expanded our development pipeline with the projects in Dalian, Huainan, Binzhou and Beijing. In addition, we have commenced development of our mixed-use project in Dalian. For the remainder of 2012, our strategic focus will be on construction of our existing projects and the marketing of projects in the development stage. While still in an early phase, we believe the long-term prospects for this business segment remain favorable, given the continued demand and opportunity in China's third- and fourth-tier cities for innovative property development projects."

Mr. Tommy Fork, Chief Financial Officer of Ninetowns, commented, "The stable performance of our enterprise software segment continues to provide us with the necessary financial platform upon which we are building our newer business initiatives. Our balance sheet remains healthy, with sufficient cash on hand to fund our growth while maintaining our leadership position in our enterprise software segment. We will continue to invest prudently in our new initiatives while maintaining a focus on cost controls in an effort to build a sustainable platform for profitable growth."

BEIJING, April 24, 2012 /PRNewswire-Asia/ -- Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced that the 2011 Zhongcheng Trust Huainan Ninetowns Investment Trust Plan (the "Investment Trust Plan") offered by Zhongcheng Trust Co., Ltd. ("Zhongcheng") to provide financing to our real estate project in Huainan, China, was terminated as of February 9, 2012.

As previously announced in July 2011, Zhongcheng organized and offered the Investment Trust Plan in June 2011 to finance the costs and expenses related to the Company's "Smarter Town" project in Huainan, China. Pursuant to the terms of the Investment Trust Plan, Zhongcheng issued (i) 150,000,000 preferred trust units for RMB150 million to certain investors and (ii) 160,000,000 ordinary trust units to Beijing Ninetowns Ports Software and Technology Co., Ltd. ("Ninetowns Ports"), a wholly-owned indirect subsidiary of the Company, in exchange for the assignment of certain creditor's rights for RMB160 million. Zhongcheng and Ninetowns Ports entered into a capital increase agreement pursuant to which Zhongcheng made a capital investment of RMB150 million to Huainan Ninetowns Suitable Estate Co.,Ltd. ("Huainan Ninetowns"), a wholly-owned subsidiary of Ninetowns Ports and the sole shareholder of Huainan Huacheng Estate Co., Ltd. ("Huainan Huacheng"), the project company of the "Smarter Town" project. Huainan Ninetowns further injected the funds into Huainan Huacheng. As a result of such investment, Zhongcheng obtained 90% of the equity interest of Huainan Ninetowns.

In February 2012, Ninetowns Ports proposed to terminate the Investment Trust Plan due to the delay in development schedule of the "Smarter Town" project. The termination of the Investment Trust Plan was approved at the meeting of the investors who subscribed to the preferred units of the Investment Trust Plan and Ninetowns Ports held on February 3, 2012. As a result of such termination, Zhongcheng transferred its equity interests in Huainan Ninetowns to Ninetowns Ports for no consideration. Huainan Huacheng repaid the outstanding creditors' rights of RMB160 million and interest payments of approximately RMB13 million to Zhongcheng, of which approximately RMB150 million came from proceeds received by Huainan Huacheng from the Investment Trust Plan and approximately RMB23 million came from Ninetowns Ports' operating income, injected by Ninetowns Ports through Huainan Huacheng.

Ninetowns intends to continue the development of the "Smarter Town" project and may seek other alternative financing options in the future.

The GeoTeam believes that NINE may be eying the capital markets to raise capital:

2009 20F:

We believe that our available cash and cash equivalents will be sufficient to meet our capital needs for at least the next 12 months. Except for our net cash provided by operating activities, we currently have no plans to seek additional sources of liquidity in the near future.

2010 20F

We believe that our available cash and cash equivalents will be sufficient to meet our capital needs for at least the next 12 months. Except for our net cash provided by operating activities, we may seek additional sources of liquidity in the near future for our businesses, especially our real estate development business.

Second Half 2010 Financial Highlights

• Total net revenues were RMB40.5 million (US$6.1 million), representing a 2% decrease as compared to RMB41.2 million for the second half of 2009.
• Net income was RMB19.3 million (US$2.9 million) as compared to a net loss of RMB1.6 million for the second half of 2009.
• Basic and diluted net income per ADS (each ADS represents one ordinary share) were RMB0.53 (US$0.08) and RMB0.51 (US$0.07), respectively, compared to basic and diluted net loss per ADS of RMB0.05 for the second half of 2009.

Full Year 2010 Financial Highlights

• Total net revenues were RMB78.9 million (US$12.0 million), representing a 1% decrease as compared to RMB79.6 million for 2009.
• Net income was RMB12.3 million (US$1.9 million), as compared to net income of RMB1.3 million for 2009.
• Basic and diluted net income per ADS were RMB0.34 (US$0.05) and RMB0.33 (US$0.05), respectively, compared to basic and diluted net income per ADS of RMB0.04 for 2009.

Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented: "Our results for the year were in-line with expectations, as we continued to focus on maximizing customer retention and the expansion of our customer base. We delivered a more diversified revenue mix for the full year, with a greater share of total revenues coming from our software development services and food related business. Nevertheless, the operating environment in our core enterprise software segment remains challenging. As such, we have worked diligently to identify and develop new growth areas for the Company, and we believe that our new real estate initiative provides us with such an opportunity.

Looking ahead to 2011 and beyond, we will continue to operate the enterprise software and food related businesses, and expect to generate a substantial portion of our revenue in the near to mid-term from those business segments. However, we believe our new real estate development initiative will provide us with a new long-term growth opportunity. The real estate market in China's third and fourth-tier cities remains strong, supported by powerful macro-economic trends including rising GDP, increasing urbanization and growing disposable income. In addition, we have seen a growing worldwide trend towards increasing usages of cloud computing and the Internet of Things. We believe that these underlying drivers, coupled with our extensive IT industry experience, provide us with a new and unique growth opportunity. With a strong balance sheet and a clear strategy in place, we believe we are well positioned to capitalize on this opportunity to deliver long-term value for our shareholders."

Mr. Tommy Fork, Chief Financial Officer of Ninetowns, commented, "We are pleased to report an improved performance for both the second half and full year. Despite continued operational headwinds, we remain focused on maximizing our existing revenue streams by leveraging our flexible pricing structure, continued product updates and enhancements and our nationwide service and support. We ended the year with a strong balance sheet and healthy cash position, which we believe will help support our new real estate initiative. We will continue to maintain a strict focus on cost controls, while prudently investing in our future growth."

On March 29, 2011, Ninetowns' Board of Directors approved and authorized the Company to adopt a share repurchase plan that allows the Company to purchase up to US$5 million its outstanding American Depositary Shares within the next two years.

• Total net revenues were RMB38.5 million (US$5.7 million), which remained relatively stable compared to RMB38.4 million (US$5.6 million) for the first half of 2009.

• Net loss was RMB7.0 million (US$1.0 million), as compared to a net income of RMB3.0 million (US$0.4 million) for the first half of 2009.

• Both basic and diluted net loss per ADS (each ADS represents one ordinary share) were RMB0.20(US$0.03), compared to basic and diluted net income per ADS of RMB0.08(US$0.01) for the first half of 2009.

Mr. Shuang Wang, Chief Executive Officer of Ninetowns, commented: "We continued to face a challenging operating environment for our core enterprise software and services as a result of continued soft demand from our customers in China's import/export sector.  As the overall economic environment improves, our focus will remain on maximizing customer retention and further expansion of our client base by leveraging our versatile pricing structure, continued product updates and enhancements and our nationwide service and support.  

"We are, however, pleased to see continued progress on our e-grocery initiative.  The completion of the initial trial phase of the platform and services in the TTY Community proves that this is a viable operation with significant growth opportunity.  The demand for fresh and healthy food products in China is growing, and our convenient and efficient online ordering system and delivery model will allow us to tap into this growing market opportunity.  As we roll out the second trial phase, with expanded food options and the targeting of a more affluent customer market, we remain confident in our ability to grow this segment into a meaningful revenue contributor over time.  We will continue to invest time and resources into the development of this initiative, and believe that our unique positioning, qualified sales and satisfaction guaranteed services will enable us to create long-term shareholder value."