ZHIHU(02390)2023-04-28 12:41Financial Performance - Total revenue for 2022 reached RMB 3,604,919 thousand, representing a 21.8% increase from RMB 2,959,324 thousand in 2021[8] - Gross profit for 2022 was RMB 1,808,052 thousand, up 16.4% from RMB 1,553,901 thousand in 2021[13] - Operating loss for 2022 increased to RMB (1,603,751) thousand, a 15.3% rise compared to RMB (1,390,709) thousand in 2021[13] - Net loss for 2022 was RMB (1,578,403) thousand, reflecting a 21.5% increase from RMB (1,298,880) thousand in 2021[13] - Adjusted operating loss for 2022 was RMB (1,218,803) thousand, a significant increase of 45.5% from RMB (837,864) thousand in 2021[13] - Adjusted net loss for 2022 reached RMB (1,195,855) thousand, marking a 60.1% increase from RMB (747,130) thousand in 2021[13] - Total operating expenses rose to RMB 3.41 billion in 2022 from RMB 2.94 billion in 2021, with significant increases in sales and marketing expenses and R&D expenditures[27] - Total operating expenses for 2022 were RMB 3.4 billion, up from RMB 2.9 billion in 2021[37] - Cash and cash equivalents decreased from RMB 7.4 billion at the end of 2021 to RMB 6.3 billion at the end of 2022[42] - Net cash used in operating activities was RMB 1.1 billion in 2022, compared to RMB 440.2 million in 2021[43] Revenue Sources - Revenue from paid memberships surged by 84.1% to RMB 1.2 billion in 2022, compared to RMB 668.5 million in 2021[18] - Revenue from professional training increased significantly from RMB 45.8 million in 2021 to RMB 248.3 million in 2022, attributed to diversified online course offerings and contributions from recently acquired businesses[32] - Advertising revenue decreased by 20.2% to RMB 926.3 million in 2022, down from RMB 1.16 billion in 2021, reflecting challenges in the online advertising industry due to macroeconomic conditions[32] User Engagement and Growth - Average monthly active users increased by 5.6% from 95.9 million in 2021 to 101.3 million in 2022[22] - Average monthly subscription members grew by 93.2% from 5.1 million in 2021 to 9.8 million in 2022[14] - Average monthly page views increased by 20.6% from 503.6 million in 2021 to 607.4 million in 2022[22] - Over 74% of average monthly active users were under 30 years old as of December 31, 2022[22] - Female users accounted for 48.5% of average monthly active users in December 2022[22] Market Strategy and Future Plans - The company continues to focus on expanding its market presence and developing new products and technologies[8] - The company plans to diversify its monetization model further into paid memberships and professional training, aiming for more sustainable revenue growth[25] - The company aims to enhance content creation and user experience for professional users, expecting a more diverse user base in 2023[25] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[143] - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[144] - The company has set a performance guidance of 20% revenue growth for the upcoming fiscal year[141] Corporate Governance - The company is committed to maintaining strict corporate governance standards and has complied with all applicable principles and code provisions since its listing[150] - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[155] - The company emphasizes the importance of continuous professional development for directors, providing training and relevant materials[169] - The company has established three committees: audit, remuneration, and nomination & corporate governance, each with clear written terms of reference[172] - The audit committee is composed of three independent non-executive directors, ensuring oversight of financial reporting and risk management[173] Risks and Compliance - The company faces significant risks related to user engagement and the ability to provide quality original content, which are critical for business success[59] - The company operates in a highly competitive market and may struggle to effectively compete if it fails to keep up with technological advancements[59] - The company is subject to complex and evolving legal regulations regarding cybersecurity and data privacy, which may impact its operations[59] - The company may face risks if the Chinese government deems its business structure agreements non-compliant with local laws, potentially leading to severe penalties or loss of operational benefits[86] Shareholder Information - The company maintains a dual-class share structure, with Class A shares having one vote per share and Class B shares having ten votes per share[112] - The company has not entered into any new connected transactions or ongoing connected transactions that require disclosure under the Listing Rules during the reporting period[111] - The group’s five largest customers accounted for approximately 16.3% of total revenue, with the largest customer contributing about 6.2%[120] - The board does not recommend the distribution of an annual dividend for the reporting period[126] Employee and Community Engagement - The company is committed to fulfilling social responsibilities and promoting employee welfare and development, as well as environmental protection[66] - The company has established a community management team to detect and prevent inappropriate or illegal content on its platform[191] - The company has implemented anti-corruption policies and training programs to prevent unethical behavior among employees[192] Audit and Financial Reporting - The audit fees for the fiscal year amounted to RMB 21,080,000, while all other fees totaled RMB 1,583,000, leading to a total auditor remuneration of RMB 22,663,000[196] - The independent auditor's report confirms that the directors are responsible for preparing the financial statements and that there are no significant uncertainties affecting the company's ability to continue as a going concern[195]