Core Points - Zhihu Inc. announced the results of its cash tender offers to buy back up to 46,921,448 Class A ordinary shares, with 33,016,016 shares validly tendered and accepted for buyback [1][2] - The total consideration for the buyback is HK$300,775,906, with completion expected on or before November 8, 2024 [1] - Following the buyback, there will be 261,860,348 shares issued and outstanding, comprising 246,413,570 Class A ordinary shares and 15,446,778 Class B ordinary shares [2] Company Overview - Zhihu Inc. is a leading online content community in China, evolving from a Q&A platform to a comprehensive online content community since its launch in 2010 [5]

Core Points - Zhihu Inc. has announced a cash tender offer to buy back up to 46,921,448 Class A ordinary shares, including American depositary shares (ADSs) [1] - Mr. Dahai Li, a director of Zhihu, intends to accept the tender offer for a portion of his Class A ordinary shares [1] Company Information - Zhihu Inc. is a leading online content community in China, established in 2010, evolving from a Q&A platform to a comprehensive online content community [4] - The company aims to provide solutions, decision-making support, inspiration, and entertainment to its users [4]

Core Points - Zhihu Inc. announced the adoption of a proposed ordinary resolution for cash tender offers to buy back up to 46,921,448 Class A ordinary shares at HK$9.11 per share (equivalent to US$3.50 per ADS) [1][2] - The tender offers have become unconditional and will remain open until October 30, 2024 [2] Company Information - Zhihu Inc. is a leading online content community in China, evolving from a Q&A platform since its launch in 2010 to one of the largest comprehensive online content communities [5]

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].

BEIJING, Sept. 9, 2024 /PRNewswire/ -- Zhihu Inc. (NYSE: ZH; HKEX: 2390) ("Zhihu" or the "Company"), a leading online content community in China, today announced that it has commenced all cash tender offers (the "Offers") to buy back up to 46,921,448 Class A ordinary shares of the Company (including in the form of American depositary shares (the "ADSs")) at an offer price of HK$9.11 per Class A ordinary share (equivalent of US$3.50 per ADS). Assuming that the maximum number of securities that can be accepte ...

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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BEIJING, Aug. 22, 2024 /PRNewswire/ -- Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter ended June 30, 2024.Second Quarter 2024 HighlightsTotal revenues were RMB933.8 million (US$128.5 million) in the second quarter of 2024, compared with RMB1,044.2 million in the same period of 2023.Gross margin expanded to 59.6% in the second quarter of 2024 from 53.8% in the same period of 2023.Net lo ...

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]