Core Viewpoint - Zhihu, a leading online content community in China, is experiencing a decline in revenue while improving its net profit, indicating a shift in its financial dynamics and ongoing efforts to enhance user engagement and content quality [1][2][3]. Financial Performance - As of December 31, 2024, Zhihu reported total revenue of 3.599 billion RMB, a year-on-year decrease of 14.29% [1]. - The company achieved a net profit attributable to shareholders of -172 million RMB, reflecting a year-on-year increase of 79.64% [1]. Company Overview - Zhihu has evolved since its launch in 2010 into one of China's largest integrated online content communities, primarily known for its question-and-answer format [2]. - The company is dual-listed on the New York Stock Exchange (NYSE: ZH) and the Hong Kong Stock Exchange (HKEX: 2390) [2]. Business Model and Strategy - Zhihu focuses on expanding its content and services to meet the diverse needs of users, content creators, and business partners, establishing a content-centric business model [2][3]. - The company aims to create a balanced ecosystem between content creation and consumption, fostering user interaction and knowledge sharing [3]. Community and User Engagement - Zhihu emphasizes the importance of community culture and user experience, which are crucial for maintaining a professional and friendly environment [3]. - The company has developed multiple monetization channels, including marketing services, paid memberships, and vocational training, enhancing its revenue streams [3].

Group 1 - Fidelity International significantly increased its stake in Zhihu in Q1 2025, raising its holdings from 128,000 shares at the end of 2024 to 1,525,000 shares [1] - The new holdings represent 1.7% of Zhihu's total outstanding shares [1]

BEIJING, May 13, 2025 (GLOBE NEWSWIRE) -- Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced that it will report its unaudited financial results for the quarter ended March 31, 2025 before the U.S. market opens on May 27, 2025. The Company's management will host a conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, May 27, 2025 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, May 27, 2025) to discuss the results. All participants wi ...

Core Viewpoint - Zhihu's stock price increased by 4.88% on May 12, reaching $4.08 per share, with a total market capitalization of $360 million [1] Financial Performance - As of December 31, 2024, Zhihu's total revenue was 3.599 billion RMB, a year-on-year decrease of 14.29% [1] - The net profit attributable to the parent company was -172 million RMB, showing a year-on-year increase of 79.64% [1] Company Overview - Zhihu is a leading online content community that has evolved since its launch in 2010, becoming one of China's top integrated content communities and the largest online Q&A platform [2] - The company is dual-listed on the New York Stock Exchange (NYSE: ZH) and the Hong Kong Stock Exchange (HKEX: 2390) [2] - Zhihu focuses on expanding content and services to meet the diverse needs of users, content creators, and business partners [2] Content Ecosystem - The company aims to establish a balance between content creation by creators and content consumption by users, fostering a positive feedback loop centered around content [3] - Active interaction between users and content creators enhances user experience and strengthens community governance, reinforcing the company's professional and friendly community culture [3] - Zhihu has developed diversified monetization channels, including marketing services, paid memberships, and vocational training, which contribute to its leadership position in the industry [3]

Group 1 - The global smartphone market is experiencing a recovery, with a projected 3.049% year-on-year growth in Q1 2024, and China's smartphone shipments expected to reach 286 million units, a 5.6% increase [1][6][10] - The market share of domestic high-end smartphone models (priced ≥ 4000 yuan) in China has surpassed 72% [1] - The influence of imaging capabilities on consumer purchasing decisions is increasing, with the topic of "mobile photography" generating 4.33 billion views on Zhihu, ranking second among smartphone-related topics [1][11] Group 2 - A survey conducted by Zhihu Research Institute collected 1,457 responses from users interested in mobile photography, leading to the creation of the report "Trends in High-End Mobile Imaging and User Insights" [2] - The report indicates that 77.2% of photography enthusiasts primarily use smartphones for photography, highlighting the integration of mobile photography into daily life [13][17] - Users are increasingly seeking not just basic functionality but also professional and emotional aspects in mobile photography, indicating a shift from hardware-centric to user-centric demands [13][41] Group 3 - The report identifies key challenges in mobile photography, including slower response times compared to traditional cameras and complex user interfaces that hinder shooting efficiency [31][33] - Users express dissatisfaction with aspects such as focusing speed and exposure adjustments, which significantly impact their overall shooting experience [36][37] - The competition in mobile imaging technology is intensifying, necessitating manufacturers to focus on user needs rather than merely technical specifications [39][54] Group 4 - Nearly 95% of users have medium to high expectations for the imaging capabilities of high-end smartphones, emphasizing the importance of image quality and detail [40] - As users become more knowledgeable about photography, their demand for personalized and stylized imaging experiences is increasing [41][47] - AI technology is seen as a potential game-changer in mobile imaging, with users expecting AI to enhance the creative process from shooting to post-production [55][60] Group 5 - The launch of the vivo X200 Ultra, featuring a "one machine, dual core, three lenses" configuration, is anticipated to set a new standard in mobile imaging [78] - The report suggests that understanding user needs deeply will be crucial for future competition in imaging technology [78]

Core Viewpoint - Zhihu's financial performance shows a decline in revenue but a significant increase in net profit, indicating a shift in operational efficiency and cost management [1][2]. Financial Performance - As of December 31, 2024, Zhihu's total revenue was 3.599 billion RMB, a year-on-year decrease of 14.29% [1]. - The net profit attributable to shareholders was -171.8 million RMB, reflecting a year-on-year increase of 79.64% [2]. Company Overview - Zhihu is a leading online content community in China, known for its question-and-answer format, and has evolved into a comprehensive content platform since its launch in 2010 [2]. - The company is dual-listed on the New York Stock Exchange (NYSE: ZH) and the Hong Kong Stock Exchange (HKEX: 2390) [2]. Business Model and Strategy - Zhihu focuses on expanding its content and services to meet the diverse needs of users, content creators, and business partners [2]. - The company has established a content-centric business model that continues to evolve, enhancing user engagement and satisfaction [3]. Community and Content Ecosystem - Zhihu aims to create a balanced ecosystem between content creators and users, fostering a positive feedback loop that enhances user experience and community governance [3]. - The company's strong community culture and brand identity contribute to attracting and retaining users and content creators [3]. Monetization Channels - Zhihu has developed diversified monetization channels, including marketing services, paid memberships, and vocational training, which are continuously enriched as the company grows [3].

Group 1 - The AI product competition has entered a calmer phase, with diminishing differences in data quality among large models and open-source models facing lower technical barriers [1] - Major companies are pursuing two paths: one emphasizes B-end applications, while the other focuses on achieving high user engagement through social applications [2][12] - The community model has been a longstanding product form in the Chinese internet, evolving from early forums to modern platforms like Bilibili and Xiaohongshu [4][6] Group 2 - AI applications are increasingly targeting community features to become "super entrances" for user engagement, as seen with Kimi's new community product [8][10] - OpenAI is reportedly developing a social network that integrates ChatGPT's image generation capabilities, indicating a shift towards community-oriented applications [12][14] - The integration of AI products into existing social ecosystems, like Tencent's WeChat, allows for low-cost user acquisition and retention strategies [19][22] Group 3 - The current landscape shows that user retention is a significant challenge for AI applications, with many lacking the community features that foster long-term engagement [23][24] - Successful community building requires understanding user needs, sustainable content production, and balancing commercial value with user experience [28]

Core Insights - The report outlines Zhihu's 2025 marketing strategy, emphasizing its platform advantages, user value, content ecosystem, and commercial partnerships, positioning Zhihu as a "trust hub" in consumer decision-making [1][7]. User Demographics - Zhihu's user base primarily consists of young, highly educated individuals from second-tier cities and above, with strong purchasing power and high trust in product information [1][17]. - The platform has a significant proportion of users aged 40 and below, with 58.41% of users being from second-tier cities or higher [17]. Content Ecosystem - Zhihu boasts a rich and diverse content ecosystem, with a cumulative content volume of over 855 million and a year-on-year increase in high-quality content rate by 13.37% [13][21]. - The platform facilitates in-depth discussions across various topics, enhancing brand engagement and consumer trust [1][20]. Marketing Solutions - Zhihu offers comprehensive marketing solutions through its "DEEP TRUST" scientific marketing system, which aids brands in understanding consumer needs, demographic flow, and competitive analysis [1][7]. - The platform has launched various IP projects, such as the New Knowledge Youth Conference and Zhihu Science Festival, to enhance brand exposure and conversion [1][20]. Business Expansion - Zhihu is expanding its business with initiatives like "Salt Story" and "Zhihu Knowledge Hall," which provide new avenues for brand marketing and engagement with high-quality audiences [1][20]. - The platform's monthly active users (MAU) reached 81.1 million, with a 17.87% increase in user engagement time [13]. Trust and Consumer Behavior - Zhihu is recognized as a key decision-making reference for consumers, with 94% of users believing in the reliability of product information on the platform [19]. - Users exhibit a strong willingness to pay a premium for quality brands and products, with 72% expressing readiness to spend more for trusted brands [19].

Community Growth and Engagement - Zhihu's community has grown to over 77 million professionals contributing content, enhancing the platform's reputation for professionalism and trustworthiness [11] - Zhihu has implemented accessibility standards and improved community features to foster inclusivity, particularly for individuals with disabilities [15] - The company aims to increase the density of "in-depth discussion" content to establish a trusted bridge connecting professional insights with public issues [55] - Enhanced community engagement through user-friendly creative activities, inspiring a wider user base to participate in content creation [72] - By the end of December 2024, a total of 30 sessions of the "Content Creation Challenge" have been held, significantly enhancing the volume and interaction of ideas and responses on the platform [75] - The "Zhizhi Plan" has cumulatively inspired more than 39,000 creators by December 2024, providing financial incentives through a fund of hundreds of millions of RMB [87] - The "Creator Salon" events reached over 300 high-value answerers in 2024, fostering community engagement and sharing among creators [95] Technological Innovation - The company launched its self-developed large language model, "Zhihaitu AI," which is among the first to receive regulatory registration, showcasing its technological innovation [16] - Zhihu's AI search product, "Zhihu Zhida," ensures AI-generated responses are traceable to original human creators, addressing common issues in AI products [16] - The "Zhihu Zhida" AI-powered search product was launched in June 2024, covering over 50 million documents in Chinese and English, enhancing user access to high-quality information [101] - The "Zhihu Zhida" will integrate the "full version" of DeepSeek-R1 in February 2025, upgrading reasoning capabilities and enhancing the AI search experience [101] - AI technology has been applied in content review to strengthen the identification of low-quality content, protecting original creators' rights [105] Environmental, Social, and Governance (ESG) Initiatives - Zhihu integrated the United Nations Sustainable Development Goals (SDGs) into its strategy, aligning with 12 of the 17 SDGs to promote global sustainability [18] - Zhihu's ESG governance structure includes a three-tier system with the Board of Directors overseeing ESG matters, ensuring effective implementation of initiatives [22] - The company has identified a total of 23 materiality topics, including 4 environmental, 16 social, and 3 governance topics, with new additions such as "AI Ethics" and "Original Content Support" [44] - The company has implemented a transition plan for the new Environmental, Social and Governance Reporting Code effective January 1, 2025, focusing on Scope 3 greenhouse gas emissions [38] - Zhihu is committed to promoting digital inclusion by providing customized services for people with special needs, ensuring equal access to services [53] Content Safety and Governance - In 2024, Zhihu handled over 31 million pieces of non-compliant content, demonstrating its commitment to maintaining a healthy community environment [17] - The company emphasizes community governance to ensure content safety and the security of advertising business models, fostering a positive ecosystem [56] - Zhihu continuously enhances governance intensity and efficiency through institutional regulation optimization and product function upgrades [57] - The company issued reminders for 35,113 pieces of inaccurate content and published over a thousand rumor-dispelling articles, with an exposure exceeding 40 million [62] - Cumulatively protected 120,370 users from harassment by strangers and handled over 27 million pieces of unfriendly information [62] - Blocked over 3.6 million malicious login attempts and identified over 350,000 spam registration accounts [63] - Launched the "Content Tagging" feature to prevent users from being misled by incorrect information, enhancing recognition coverage and accuracy [63] - In 2024, a dedicated governance and publicity campaign against cyber violence was conducted, releasing over 50 weekly reports on handling cyber violence [62] - Upgraded the "One Click Protection" feature to enhance proactive protection against inappropriate comments and private message harassment [62] - Established a diverse and transparent user feedback mechanism, allowing users to supervise, report, and provide feedback on community content [65] - Continuously optimized the machine review strategy by incorporating AI technology for more efficient detection and filtering of problematic content [70] Creator Support and Development - The "Beacon Prize" program provided nine creator teams with tens of millions in creation incentives, contributing nine premium content works with long-term value [88] - The "Haiyan Plan 6.0" initiative introduced "Navigators" to enhance content distribution through algorithmic signals, improving content ecosystem vitality [79] - The "Creation Training Program" equips creators with essential skills, enhancing content quality and enabling them to identify suitable vertical niches [82] - In 2024, creators' earnings achieved a year-on-year growth exceeding 20% for four consecutive quarters [91] - The optimization initiative for creator experience resulted in a double-digit improvement in creator experience metrics [152] Information Security and User Protection - The company is committed to enhancing information security management and protecting innovative achievements through comprehensive measures [53] - The company conducted 10 information security audits in 2024, focusing on personal information display desensitization and log audits to reduce the risk of personal information leakage [177] - Zhihu completed the third-level network security protection certification and obtained the ISO/IEC 27001 information security management system certification in 2024 [178] - The company established a dedicated elderly service hotline and optimized age-friendly accessibility services to better meet the needs of elderly users [161] - In 2024, Zhihu launched an online safety knowledge education program for adolescents, utilizing comics and quizzes to guide proper internet use [158] - Zhihu's information security protection mechanism includes pre-event prevention, in-process monitoring, and post-event response to ensure comprehensive security management [172] - Zhihu has obtained the ISO/IEC 27701 certification for its privacy information management system, ensuring compliance with information security standards [193] - During the Reporting Period, Zhihu did not experience any major data or user data breaches related to information security, indicating strong data protection measures [193] Employee Development and Workplace Culture - The company adheres to a "Talent First" development philosophy, providing diverse and equitable employment policies and abundant career growth opportunities [194] - Zhihu has established a comprehensive employment system that strictly complies with relevant labor laws and regulations, ensuring employee rights are safeguarded [195] - The company promotes a diverse and inclusive work environment, opposing all forms of employment discrimination and ensuring equal pay for equal work [196] - Zhihu has developed a comprehensive talent cultivation system with three modules: general skills, professional competency, and leadership, supported by various training programs [198] - The "Sailor Program" and "Navigate the Future" program are part of Zhihu's leadership development system aimed at nurturing young talents and middle managers [199] - Zhihu conducts systematic foundational training sessions annually, including business ethics and information security training, to enhance employees' general skills [200]

Financial Performance - Revenues for 2023 reached RMB 4,198,889, a 16.5% increase from RMB 3,604,919 in 2022[48] - Gross profit for 2023 was RMB 2,295,848, representing a gross margin of approximately 54.7%[48] - Net loss attributable to Zhihu Inc.'s shareholders decreased to RMB 843,641 in 2023 from RMB 1,581,157 in 2022, a reduction of 46.6%[48] - The company expects revenues for 2024 to be approximately RMB 3,598,905, reflecting a decrease of 14.3% compared to 2023[48] - The net loss per share for 2023 was RMB 2.82, significantly improved from RMB 5.19 in 2022[48] - In 2022, 2023, and 2024, the company incurred net losses of RMB1.6 billion, RMB839.5 million, and RMB169.0 million (US$23.1 million) respectively, along with negative operating cash flows of RMB1.1 billion, RMB415.5 million, and RMB280.2 million (US$38.4 million) respectively[79] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, were RMB 2,106,639, down from RMB 4,525,852 at the beginning of the year[51] - Net cash used in operating activities improved to RMB 415,527 in 2023 from RMB 1,114,954 in 2022[51] - Cash and cash equivalents increased to RMB 3,999,160 thousand in 2024 from RMB 2,106,639 thousand in 2023, representing an increase of approximately 90%[55][57] - Net cash provided by operating activities was RMB (280,185) thousand for the year ended December 31, 2024, compared to a positive cash flow in the previous year[57] - The company reported net cash used in investing activities of RMB 1,681,140 thousand for 2023, compared to a net cash provided of RMB 3,490,467 thousand in 2022[59] Assets and Liabilities - Total current assets decreased to RMB 6,377,880 in 2023 from RMB 6,795,272 in 2022[50] - Total liabilities reduced to RMB 1,537,266 in 2024 from RMB 2,093,662 in 2023, indicating a 26.8% decrease[50] - As of December 31, 2024, total assets amounted to RMB 5,732,952 thousand, a decrease from RMB 6,795,272 thousand as of December 31, 2023[55][56] - Total current liabilities decreased to RMB 1,524,656 thousand in 2024 from RMB 1,945,488 thousand in 2023, a reduction of about 22%[55][56] Investments and Capital Contributions - The aggregate amount of capital contributions by Zhihu Inc. to its intermediate holding companies and subsidiaries was RMB10.3 billion, RMB10.0 billion, and RMB9.6 billion (US$1.3 billion) for 2022, 2023, and 2024, respectively[42] - The company reported a total of RMB 1,007,851 thousand in cash inflows from investing activities, highlighting strong investment performance[57] - The company has experienced significant user growth, with a highly engaged user base, but any decline in content quality may adversely affect user retention and growth[73] Regulatory and Compliance Risks - The PCAOB's ability to inspect registered public accounting firms in mainland China and Hong Kong may affect the trading of Zhihu's shares in the U.S. under the HFCAA[37] - The company operates through PRC subsidiaries and VIEs, relying on contractual arrangements due to restrictions on foreign investment in certain sectors[33] - The company has obtained requisite licenses and permits for its operations in China, but uncertainties remain regarding future compliance[39] - The company is subject to complex and evolving laws regarding cybersecurity and data privacy, which could lead to penalties and increased operating costs if not complied with[90] - The PRC government may impose penalties or revoke business licenses if the VIE structure is deemed non-compliant with regulations, which could adversely affect operations[153] User Engagement and Market Competition - The company faces risks related to maintaining an engaged user base and high-quality user-generated content, which are critical for its success[63] - The company operates in a highly competitive market and must keep up with technological developments to avoid adverse effects on its business[63] - The company may struggle to balance monetization efforts with user experience, which could negatively impact brand reputation if advertisements are perceived as intrusive[77] Technology and Innovation - The company is actively developing AI-powered tools, such as Zhihu Zhida, to adapt to technological changes, but there is uncertainty regarding the timely capture of benefits from these advancements[71] - The company launched its first Large Language Model, Zhihaitu AI, in 2023, which received regulatory registration in November 2023[101] - In June 2024, the company introduced the AI search product, Zhihu Zhida, enhancing user experience in querying and searching[101] Shareholder and Corporate Governance - Zhihu Inc. has not declared or paid any cash dividends since its ADS listing in March 2021 and does not plan to do so in the foreseeable future[44] - The board of directors has complete discretion over dividend distribution, which may depend on future operational results and cash flow[226] - Holders of ADSs have limited voting rights and cannot directly attend shareholder meetings[229] Foreign Investment and Economic Environment - The U.S. government imposed a 10% tariff on most countries, with a 34% additional tariff on goods imported from China, leading to cumulative tariffs exceeding 100% between the U.S. and China[145] - The final rule from the U.S. Department of the Treasury may limit the ability to raise capital from U.S. investors, potentially affecting business operations and financial condition[144] - The ongoing geopolitical tensions, particularly between the United States and China, may adversely impact the company's business and financial condition[142]