Share Structure - As of September 27, 2024, a total of 294,815,461 shares are issued and outstanding, comprising 277,421,795 Class A Ordinary Shares and 17,393,666 Class B Ordinary Shares[8]. - The company has 1,582,216 outstanding options under the 2012 Plan, entitling holders to acquire an equal number of Class A Ordinary Shares[9]. - There are 233,337 outstanding restricted shares under the 2012 Plan, allowing holders to acquire the same number of Class A Ordinary Shares[9]. - A total of 16,727,582 outstanding restricted share units under the 2022 Plan entitle holders to acquire an equal number of Class A Ordinary Shares[9]. - The company has no other outstanding options, derivatives, warrants, or securities convertible into shares, apart from those disclosed[10]. Share Cancellation - On September 27, 2024, 8,328 options and 8,007 restricted shares were cancelled under the 2012 Plan, along with 51,723 restricted share units cancelled under the 2022 Plan[7]. - 62,202 Bulk Issuance Shares in the form of ADSs were used to settle the exercise or vesting of awards granted under the 2012 and 2022 Plans[7]. Regulatory Compliance - The company is subject to the Takeovers Code, and relevant securities dealings must be disclosed by associates during the Offer Period[11]. - The board of directors is responsible for the accuracy of the information contained in the announcement[17]. - The announcement was made in compliance with the Listing Rules and does not constitute an invitation to acquire securities[3].

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 1,894,673, a decrease of 7.1% compared to RMB 2,038,429 in 2023[11]. - Gross profit for the same period was RMB 1,100,023, reflecting a 2.4% increase from RMB 1,074,297 in 2023[11]. - Operating loss improved to RMB (408,619) from RMB (543,964), a reduction of 24.9% year-over-year[11]. - Net loss decreased significantly to RMB (246,391), down 46.2% from RMB (458,038) in the previous year[11]. - Adjusted operating loss was RMB (340,686), a 20.2% improvement from RMB (426,744) in 2023[13]. - Adjusted net loss was RMB (180,283), down 47.4% from RMB (342,487) in the previous year[13]. - The net loss narrowed by 46.2% from RMB 458 million in H1 2023 to RMB 246.4 million in H1 2024[16]. - Gross margin has increased for seven consecutive quarters, reaching the highest level since the company's IPO in the U.S.[16]. - Total operating expenses decreased by 6.8% to RMB 1,508.6 million, down from RMB 1,618.3 million in the previous year[37]. - Operating loss improved by 24.9% to RMB 408.6 million, compared to RMB 544.0 million in the same period of 2023[38]. - The company aims to enhance operational efficiency and reduce losses through cost optimization and controlled spending in the second half of 2024[25]. User Metrics - Average monthly active users (MAUs) dropped to 84.8 million, a decline of 20.0% from 105.9 million in 2023[11]. - Average monthly subscription members increased slightly to 14.7 million, up 1.9% from 14.4 million in 2023[11]. - Monthly active users (MAUs) increased from 14.4 million in 2023 to 14.7 million in H1 2024[20]. - User engagement metrics improved, with significant increases in user retention and daily active user session durations[20]. Revenue Breakdown - Paid membership revenue decreased by 2.4% year-on-year to RMB 882.4 million in H1 2024[23]. - Marketing services revenue decreased to RMB 674.5 million, representing 35.6% of total revenue, down from RMB 804.9 million (39.5%) year-over-year[30]. - Paid membership revenue was RMB 882.4 million, accounting for 46.6% of total revenue, slightly down from RMB 903.9 million (44.3%) in the previous year[30]. - Revenue from vocational training services grew by 11.0% year-on-year to RMB 279.1 million in H1 2024[23]. - Professional training revenue increased by 11.0% to RMB 279.1 million, up from RMB 251.5 million in the same period of 2023[33]. Cash Flow and Liquidity - Cash and cash equivalents, time deposits, restricted funds, and short-term investments amounted to RMB 5.1 billion as of June 30, 2024, compared to RMB 5.5 billion as of December 31, 2023[41]. - Net cash used in operating activities was RMB (391,988) thousand for the six months ended June 30, 2024, compared to RMB (58,341) thousand in the same period of 2023[42]. - Net cash generated from investing activities was RMB 1,540,585 thousand for the six months ended June 30, 2024, compared to RMB (390,396) thousand in the same period of 2023[42]. - As of June 30, 2024, cash and cash equivalents amounted to RMB 3,159,325 thousand, an increase from RMB 2,106,639 thousand as of December 31, 2023, reflecting a growth of approximately 50%[102]. - The company reported a net loss of RMB 8,953,634 thousand as of June 30, 2024, compared to a net loss of RMB 8,708,294 thousand as of December 31, 2023[103]. Corporate Governance - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee to oversee specific areas of the company's affairs[60]. - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing the group's financial reporting procedures and risk management systems[61]. - The Remuneration Committee reviews the remuneration of directors and senior management and provides recommendations to the board[63]. - The Nomination Committee was established to recommend candidates for the board and its committees, ensuring a proper structure and composition[64]. - The Corporate Governance Committee ensures compliance with corporate governance standards and oversees environmental, social, and governance matters[65]. Shareholder Information - As of June 30, 2024, Mr. Zhou holds 19,460,912 shares of Class A common stock, representing 7.01% of the total equity[70]. - Mr. Li holds 2,779,240 shares of Class A common stock, representing 1.00% of the total equity[70]. - Huang River Investment Limited owns 27,448,933 shares of Class A common stock, representing 9.89% of the total equity[74]. - Tencent holds 38,066,599 shares of Class A common stock, representing 13.71% of the total equity[74]. - The total number of issued shares as of June 30, 2024, is 277,574,285 shares of Class A common stock and 17,393,666 shares of Class B common stock[75]. Investments and Acquisitions - The company had no significant investments or acquisitions during the six months ended June 30, 2024[43]. - The company sold its entire stake in Xi'an Zhifeng for a total cash consideration of RMB 35.6 million in April 2024, resulting in a recognized gain of RMB 4.9 million[190]. Risks and Compliance - The management believes that the contracts with VIEs and nominal shareholders are legally binding and enforceable, although there is significant uncertainty regarding the interpretation and application of Chinese laws[127]. - Potential risks include the possibility of regulatory actions that could lead to the revocation of business licenses or the imposition of fines, which may adversely affect the company's operations[131]. - The company acknowledges that any future legal interpretations could challenge its control over VIEs, impacting its ability to consolidate financial results[131]. Accounting and Financial Reporting - The company has not identified any matters that would lead to a belief that the interim financial information is not prepared in accordance with US GAAP[100]. - The company’s financial reporting is based on estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent liabilities[144]. - The company’s interim financial data includes adjustments for normal recurring items necessary for fair presentation[142]. - The company recognizes revenue from paid membership services over the membership period, with the revenue being recognized proportionally as services are provided[154]. Employee and Performance Metrics - The company established a standardized performance evaluation system for its employees, linking rewards to performance metrics[87]. - Research and development expenses include costs related to new technology and product development, with minimal amounts capitalized[168].

Financial Data and Key Metrics - Gross margin increased by 5.8 percentage points year-over-year to 59.6% [5] - Total operating expenses decreased by more than RMB 140 million year-over-year, including a reduction of RMB 120 million in marketing expenses [5] - Adjusted net loss declined by 79.9% year-over-year to RMB 44.6 million, marking the lowest quarterly loss since the U.S. IPO [5] - Marketing services revenue decreased by 16.7% year-over-year to RMB 344 million, with brand advertising and performance-based advertising growing by 17% and 28.4% respectively [13] - Paid membership revenue decreased slightly by 3.7% year-over-year to RMB 432.7 million, with the number of subscribing members growing by 4.7% year-over-year to 14.7 million [16][22] - Vocational training revenue decreased to RMB 133.6 million, primarily due to strategic refinements in acquired businesses [18][22] - Gross profit for the quarter was RMB 556.5 million, with a gross margin of 59.6%, the highest since the U.S. IPO [22] - Total operating expenses decreased by 16.7% year-over-year to RMB 740.4 million, with selling and marketing expenses down by 22.9% and R&D expenses down by 11.4% [23] - GAAP and non-GAAP net losses narrowed by 71.1% and 79.9% year-over-year respectively [23] Business Line Performance - Marketing services revenue declined by 16.7% year-over-year, but brand and performance-based advertising showed robust growth [13] - Paid membership revenue grew to 46% of total revenue, driven by a 4.7% increase in subscribing members [16] - Vocational training GMV grew by over 50% year-over-year, with AI and AGI-related programs receiving positive feedback [19] - The number of premium content creators earning income increased by 77.4% year-over-year [17] Market and User Engagement - Cumulative content on Zhihu reached 830.9 million, a 16.8% year-over-year increase, with content creators growing by 12.5% to 74.9 million [7] - User engagement during the Gaokao period saw double-digit growth in response rates [8] - Paris Olympics-related content views exceeded 600 million, with over 500,000 discussions [9] - Average daily engagements per year grew by nearly 40% year-over-year, with monthly average upwards increasing by over 47% year-over-year [9] - Zhihu Zhida's total visits increased by 430% in July compared to June, with user retention doubling by the end of July [11] Strategic Direction and Industry Competition - The company is focusing on AI-powered products, with the launch of Zhihu Zhida marking a significant milestone in AI search initiatives [6][10] - Zhihu Zhida's integration with content creators and emphasis on human-centric content differentiates it from other AI-driven search products [10] - The company aims to enhance user experience and operational efficiency through AI technologies [12] - Strategic focus on high-margin self-operated vocational training programs and AI-related offerings [17][19] Management Commentary on Operating Environment and Future Outlook - Management remains confident in achieving quarterly profitability targets, with a focus on improving user experience and operational efficiency [20] - The company plans to achieve non-GAAP net profit in the fourth quarter of 2024 [27] - Management highlighted the importance of high-quality content and user retention in maintaining a stable user base [30] - The company is optimistic about the commercialization potential of AI search but is currently focused on improving user experience [32] Other Important Information - The company has cash and cash equivalents of RMB 5.1 billion as of June 30, 2024 [24] - Zhihu Zhida's multi-round response capability outperformed market peers, earning high praise from professionals [11] - The company is preparing to launch Zhihu Zhida on mobile platforms, with features still in development [32] Q&A Session Summary Question: Progress on achieving breakeven target - The company plans to achieve non-GAAP net profit in the fourth quarter of 2024, with significant progress in reducing losses [27] Question: User base stability and AI search progress - User retention has improved due to high-quality content and in-depth content cultivation [30] - Zhihu Zhida has seen significant improvements in user retention and engagement, with commercialization not being the current priority [32] Question: Advertising performance during 618 - Brand and performance-based advertising showed strong growth, driven by high-value user engagement and professional discussion forums [35][36] Question: Growth drivers for paid user base - Growth is driven by expanding user base through co-brand memberships and distribution channels, as well as enriching membership benefits [39] Question: Future of vocational training business - The company is focusing on improving efficiency and accelerating loss reduction in vocational training, with a long-term focus on synergy with the community [42][43]

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Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 1,894.7 million, a decrease of 7.1% compared to RMB 2,038.4 million in the same period of 2023[2] - Gross profit increased by 2.4% to RMB 1,100.0 million, compared to RMB 1,074.3 million in the prior year[2] - Net loss narrowed by 46.2% to RMB 246.4 million from RMB 458.0 million in the first half of 2023[7] - The adjusted operating loss for the first half of 2024 was RMB 340.7 million, a reduction of 20.2% from RMB 426.7 million in the same period of 2023[5] - Operating loss decreased by 24.9% to RMB 408.6 million from RMB 544.0 million year-over-year[23] - Net loss attributable to shareholders of RMB 247.6 million, compared to a net loss of RMB 461.2 million in the same period of 2023[17] - Basic and diluted loss per share improved to RMB (0.88) from RMB (1.52) year-over-year, indicating better performance on a per-share basis[40] User Engagement - Average monthly active users decreased by 20.0% to 84.8 million from 105.9 million year-over-year[2] - The average monthly subscription members increased by 1.9% to 14.7 million from 14.4 million year-over-year[2] - The number of monthly active users increased from 14.4 million in 2023 to 14.7 million in the first half of 2024, reflecting a growth in user engagement[11] - The number of AI-related content creators in the community has more than doubled year-over-year, indicating strong growth in AI discussions[8] - The launch of the AI search feature in March 2024 led to double-digit growth in user engagement metrics[8] Revenue Breakdown - Paid membership revenue was RMB 882.4 million, a decline of 2.4% from RMB 903.9 million in the previous year[14] - Revenue from vocational training services grew by 11.0% year-on-year, generating RMB 279.1 million in the first half of 2024[14] - Core marketing services revenue was RMB 674.5 million, down from RMB 804.9 million in the previous year[17] - Marketing services revenue decreased to RMB 674.5 million, down from RMB 804.9 million in the same period last year, primarily due to ongoing optimization of service product offerings[20] - Vocational training revenue increased by 11.0% to RMB 279.1 million, compared to RMB 251.5 million in the prior year, driven by an enriched online course offering[20] Operational Efficiency - The company has seen a continuous increase in gross margin for seven consecutive quarters, reaching the highest level since its IPO in the U.S.[7] - The company is focusing on enhancing operational efficiency and leveraging AI technology to improve service delivery and user engagement[8] - The company aims to enhance operational efficiency and reduce losses through cost optimization in the second half of 2024[16] - Operating expenses totaled RMB 1.5 billion, a decrease of 6.8% from RMB 1.6 billion in the previous year, with sales and marketing expenses down by 9.2%[22] - Gross profit increased to RMB 1,100,023, compared to RMB 1,074,297 in the previous year, reflecting a gross margin improvement[39] Cash and Assets - Cash and cash equivalents, along with restricted cash, totaled RMB 5.1 billion as of June 30, 2024, down from RMB 5.5 billion at the end of 2023[25] - Total assets as of June 30, 2024, were RMB 6,108,204, down from RMB 6,795,272 at the end of 2023, indicating a decrease in asset base[41] - Current liabilities decreased to RMB 1,679,645 from RMB 1,945,488, reflecting improved liquidity management[41] - Cash and cash equivalents totaled RMB 3,159,325, compared to RMB 2,106,639 at the end of 2023, indicating a strong cash position[42] Corporate Governance - The company has adopted a share incentive plan to motivate eligible employees towards growth and development[31] - The company has established an audit committee to oversee financial reporting processes and risk management[34] - The roles of Chairman and CEO are currently held by the same individual, which the board believes enhances internal leadership consistency[32] - The company did not engage in any significant acquisitions or disposals during the six months ended June 30, 2024[27] - There are no major lawsuits or arbitrations involving the company during the reporting period[38] Taxation and Dividends - The corporate income tax rate for foreign-invested enterprises and domestic companies in China is uniformly set at 25%[62] - Three subsidiaries were recognized as high-tech enterprises, qualifying for a preferential income tax rate of 15% for the six months ended June 30, 2024[62] - The total income tax expense for the six months ended June 30, 2024, was a benefit of RMB (5,779) thousand, compared to an expense of RMB 7,159 thousand for the same period in 2023[63] - No dividends were declared or paid for the six months ended June 30, 2024[64]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Zhihu Inc. （於開曼群島註冊成立以不同投票權控制的有限責任公司） （紐交所代號：ZH；聯交所代號：2390） 內幕消息 截至2024年6月30日止季度 未經審計財務業績 | --- | --- | |----------------------------------------------------------------------------------------|------------------| | | | | 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.09 例（第 571 章）第 XIVA 部刊發。 | 條及證券及期貨條 | | 知乎（「 本公司 」）欣然宣佈本公司及其附屬公司及綜合聯屬實體截至 | 2024 年 6 月 | | 30 日止三個月的未經審計簡明合併業績。 | | 本公司欣然宣佈，根據美國證券交易委員會（「美國證監會」）適用規則刊發的本公 司及其 ...

Financial Data and Key Metrics Changes - The company recorded a GAAP net loss of RMB165.8 million for Q1 2024, narrowing by 7.4% year-over-year, while the non-GAAP net loss was RMB135.7 million [21] - Gross profit for Q1 increased by 6.1% year-over-year to RMB543.5 million, with a gross profit margin improvement of 5.1 percentage points year-over-year to 56.6% [20] - Total operating expenses for the quarter were RMB768.2 million, compared to RMB729.0 million in the same period last year [21] Business Line Data and Key Metrics Changes - Vocational training revenue increased by 35.9% year-over-year to RMB145.4 million, contributing over 15% to total revenue for the first time [12] - Paid membership revenue reached RMB449.7 million, with an average monthly subscribing member count of 14.8 million, showing a slight decrease of 0.8% year-over-year but an increase of 4.1% quarter-on-quarter [14] - Marketing services revenue decreased by 15.7% year-over-year to RMB330.5 million, although brand advertising revenue increased by 40% year-over-year [17][19] Market Data and Key Metrics Changes - The cumulative business of content on the platform reached 804.2 million, including 611 million Q&As, up 15.4% year-over-year [7] - The number of content creators earning income on Zhihu grew by over 25% year-over-year, with the number of creators benefiting from the monetization plan nearly quadrupling compared to the same period last year [8] - The number of AI creators certified by Blue Label increased by 130% year-over-year, indicating a surge in AI-related content and creator engagement [11] Company Strategy and Development Direction - The company is focusing on achieving profitability in the short term, with a strategic emphasis on high-quality content and user value in the AI era [5][6] - The company aims to enhance operational efficiency through AI-driven technology and has made significant investments in AI capabilities [10][11] - The strategy includes a proactive reduction in community-related user acquisition costs while maintaining a higher ROI in pay membership and vocational training businesses [9] Management's Comments on Operating Environment and Future Outlook - Management expects to achieve quarterly non-GAAP net profit by Q4 2024, with ongoing improvements in operational metrics [24] - The shift from the Internet era to the AI era is seen as a fundamental change, emphasizing the importance of high-quality content and top-tier users [25] - Management believes that the community's trustworthiness and the integration of AI search features will drive sustainable growth [18][34] Other Important Information - The company repurchased 4.8 million A ordinary shares for a total price of $8 million during the first quarter [22] - The company has cash and cash equivalents of RMB1.2 billion as of March 31, 2024, down from RMB5.5 billion at the end of 2023 [22] Q&A Session Summary Question: Update on timetable to achieve quarterly breakeven - Management expects to achieve quarterly non-GAAP net profit in Q4 2024, with notable improvements starting from Q2 2024 [24] Question: User trends post selling and marketing strategy adjustments - Core user retention rates have maintained growth momentum, and daily active user engagement has increased significantly [28] Question: Recent developments in AI publications and user activity - The beta version of the AI search feature has shown promising results, with users becoming notably more active [34] Question: Long-term growth outlook for vocational training business - The vocational training business is expected to continue outperforming the industry, driven by community-enabled self-operated offerings [38] Question: Membership business competition landscape - Zhihu remains a leader in the membership segment, with a significant number of content creators returning to the platform [41]

Financial Performance - Total revenue for Q1 2024 was RMB 960.9 million (USD 133.1 million), a decrease from RMB 994.2 million in Q1 2023[6] - Gross margin increased from 51.5% in Q1 2023 to 56.6% in Q1 2024[6] - Net loss narrowed to RMB 165.8 million (USD 23.0 million) in Q1 2024, compared to RMB 179.0 million in Q1 2023[8] - Paid subscription revenue was RMB 449.7 million (USD 62.3 million), slightly down from RMB 454.8 million in Q1 2023[7] - Revenue from vocational training grew by 35.9% to RMB 145.4 million (USD 20.1 million) in Q1 2024, up from RMB 107.0 million in Q1 2023[7] - Operating expenses totaled RMB 768.2 million (USD 106.4 million) in Q1 2024, compared to RMB 729.0 million in Q1 2023[7] User Engagement - Average monthly active users (MAUs) reached 89.0 million in Q1 2024[6] - The company is focusing on improving the trustworthiness of its community to drive user engagement and retention[6] - Monthly active users are defined as the number of unique mobile devices that activated the mobile app at least once in a specified month[10] Share Repurchase Program - As of March 31, 2024, the company repurchased 31.1 million Class A ordinary shares under the existing $100 million share repurchase program, totaling $66.5 million[9] - The board has approved an extension of the 2022 repurchase plan until June 26, 2025, pending shareholder approval at the upcoming annual meeting[9] - The proposed repurchase authorization allows for the buyback of up to 10% of the company's issued shares as of the approval date, excluding treasury shares[9] - The company plans to fund any repurchases using existing cash reserves[9] Financial Metrics and Adjustments - Non-GAAP financial measures, such as adjusted operating loss and adjusted net loss, are used to supplement the review and assessment of the company's operating performance[13] - The adjusted operating loss for the three months ended March 31, 2023, was RMB 157,336 thousand, compared to RMB 165,293 thousand for the previous quarter[23] Future Plans and Events - The company aims to achieve profitability through enhanced operational efficiency and reduced losses[6] - The company will hold an earnings conference call on June 12, 2024, at 7:00 AM Eastern Time[11] - The company will change the ratio of American Depositary Shares (ADS) to Class A ordinary shares from two ADS to one Class A share to three ADS to one Class A share effective May 10, 2024[10] Historical Financial Data - Total revenue for the three months ended March 31, 2023, was RMB 994,220 thousand, a decrease of 12.7% from RMB 1,138,297 thousand for the three months ended December 31, 2022[16] - The number of paid members for professional training was 145,436, compared to 169,272 in the previous quarter, indicating a decline of 14.1%[16] - Gross profit for the three months ended March 31, 2023, was RMB 512,219 thousand, down from RMB 673,100 thousand in the previous quarter, representing a decrease of 24%[16] - Operating loss for the three months ended March 31, 2023, was RMB 216,744 thousand, compared to a loss of RMB 178,158 thousand for the three months ended December 31, 2022[16] - Net loss attributable to Zhihu shareholders for the three months ended March 31, 2023, was RMB 181,355 thousand, compared to a loss of RMB 103,771 thousand in the previous quarter[16] - Total assets as of December 31, 2022, were RMB 6,795,272 thousand, a slight increase from RMB 6,535,376 thousand as of March 31, 2023[22] - Total liabilities as of March 31, 2023, were RMB 2,093,662 thousand, compared to RMB 2,027,808 thousand as of December 31, 2022[22] - The company reported a basic and diluted net loss per share of RMB (0.59) for the three months ended March 31, 2023[18] - Cash and cash equivalents as of December 31, 2022, were RMB 2,106,639 thousand, showing a decrease to RMB 2,194,419 thousand as of March 31, 2023[22]

Investor Home Corporate Information Company Profile Corporate Governance Board of Directors News & Events Company News Event Calendar Shareholder Meetings Webcasts Financials & Filings Quarterly Results Annual & Interim Reports SEC Filings HKEX Filings Stock Information Stock Quote Historical Price Lookup Analyst Coverage Investor Resources Investor FAQs IR Contacts Investor Alerts EN EN ̤娉¬ � Search Keywords... Search Company News Zhihu Inc. Reports Unaudited First Quarter 2024 Financial Results BEIJING, J ...

Financial Performance - Total revenues for 2023 reached RMB 4,198,889 thousand, representing a 16.5% increase from RMB 3,604,919 thousand in 2022[11] - Gross profit for 2023 was RMB 2,295,848 thousand, up 27.0% from RMB 1,808,052 thousand in 2022[11] - The net loss for 2023 decreased to RMB 839,528 thousand, a 46.8% improvement compared to RMB 1,578,403 thousand in 2022[11] - Adjusted loss from operations for 2023 was RMB 887,984 thousand, a 27.1% reduction from RMB 1,218,803 thousand in 2022[11] - Adjusted net loss for 2023 was RMB 659,093 thousand, down 44.9% from RMB 1,195,855 thousand in 2022[11] - Marketing services revenue decreased to RMB1.7 billion in 2023 from RMB2.0 billion in 2022, reflecting a challenging industry environment[38] - Paid membership revenue increased by 48.4% to RMB1.8 billion in 2023, up from RMB1.2 billion in 2022, driven by growth in subscribing members[38] - Vocational training revenue surged by 127.8% to RMB565.6 million in 2023, compared to RMB248.3 million in 2022, due to enhanced online course offerings and contributions from acquired businesses[38] - Gross profit rose by 27.0% to RMB2.3 billion in 2023, with gross margin expanding to 54.7% from 50.2% in 2022[42] - Total operating expenses remained flat at RMB3.4 billion in 2023, with research and development expenses increasing by 18.1% to RMB901.5 million[43] User Engagement - Average monthly active users (MAUs) increased by 4.0% to 105.3 million in 2023 from 101.3 million in 2022[11] - Average monthly subscribing members rose by 47.5% to 14.5 million in 2023, compared to 9.8 million in 2022[11] - As of December 31, 2023, the cumulative number of content creators reached 71.3 million, a 13.0% increase from 63.1 million in 2022[26] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 6,795,272 thousand, a decrease from RMB 7,656,239 thousand in 2022[8] - Current liabilities increased to RMB 1,945,488 thousand in 2023 from RMB 1,824,841 thousand in 2022[8] - Total shareholders' equity for Zhihu Inc. was RMB 4,599,810 thousand as of December 31, 2023, compared to RMB 5,653,696 thousand in 2022[8] Corporate Structure and Compliance - The company operates its Zhihu online platforms and other services through Consolidated Affiliated Entities, which are subject to foreign investment restrictions under PRC laws[91] - The company holds an ICP License, which is required for providing commercial internet information services in China[93] - The company has obtained a Publication Operation License to conduct publication distribution business in compliance with PRC regulations[102] - The Company faces risks related to compliance with PRC laws regarding its contractual arrangements, which could lead to penalties or loss of operational control[105] - The Company has adopted measures to ensure compliance with Contractual Arrangements, including annual reviews by the Board and external legal advisors if necessary[106] Governance and Management - The executive team includes Mr. Zhou as Chairman and CEO, and Mr. Dahai Li as Chief Technology Officer, both with extensive industry experience[171][172] - The Group's management team includes Mr. Han Wang as Chief Financial Officer, appointed in February 2024, with prior experience in investment firms[178] - The Board consists of seven members: two executive Directors, two non-executive Directors, and three independent non-executive Directors[188] - During the Reporting Period, the Board held four meetings, with all Directors actively participating in the majority of them[190] - The Company has received annual confirmations of independence from all independent non-executive Directors, ensuring compliance with independence requirements[194] Strategic Initiatives - The company plans to enhance its monetization model and expand discussions and search scenarios in the community to better serve users and clients in 2024[31] - The Company emphasizes a content-centric business model to create value for stakeholders through sustainable growth and continuous development[181] - The Group is committed to reviewing and adjusting its business strategies to respond to changing market conditions and foster sustainability[182] Shareholder Information - The Company did not recommend the distribution of an annual dividend for the Reporting Period[153] - The Company repurchased approximately 39,758,632 ADSs, representing a total of 19,879,316 Class A Ordinary Shares, for an aggregate consideration of US$41,783,921 during the Reporting Period[141] - The weighted voting rights structure allows the WVR Beneficiary to control the Company despite not holding a majority economic interest[136] Risks and Challenges - The company faces risks related to its corporate structure, including potential penalties from the PRC government regarding its contractual arrangements with Consolidated Affiliated Entities[73] - The company is subject to uncertainties in China's legal system, which could limit legal protections and impose additional obligations[75] - The company's Class A ordinary shares and ADSs have experienced volatility, which could result in substantial losses for investors[81]