ZHIHU(02390)2024-03-26 08:36Financial Performance - Total revenue for the year ended December 31, 2023, increased by 16.5% to RMB 4,198.9 million compared to RMB 3,604.9 million in 2022[2] - Net loss narrowed significantly by 46.8% to RMB 839.5 million in 2023, compared to RMB 1,578.4 million in 2022[6] - Adjusted operating loss decreased by 27.1% to RMB 887.98 million in 2023 from RMB 1,218.8 million in 2022[5] - Operating loss decreased to RMB 1,072,225 for the year ended December 31, 2023, from RMB 1,603,751 in the previous year, representing a reduction of approximately 33%[34] - Net loss attributable to Zhihu shareholders for the year ended December 31, 2023, was RMB 843,641, compared to RMB 1,581,157 for the year ended December 31, 2022, indicating a year-over-year improvement of 46.6%[34] - Gross profit rose by 27.0% to RMB 2.3 billion in 2023, with a gross margin increase from 50.2% in 2022 to 54.7% in 2023[19] User Engagement - Average monthly active users rose by 4.0% to 105.3 million in 2023 from 101.3 million in 2022[2] - Average monthly subscription members surged by 47.5% to 14.5 million in 2023, up from 9.8 million in 2022[2] - The average monthly active users in 2023 reached 105.3 million, with 74.1% of active users under the age of 30[9] - The number of content creators increased to 71.3 million, a year-on-year growth of 13.0% from 63.1 million[10] Revenue Streams - Revenue from paid membership business grew by 48.4% to RMB 1,826.6 million in 2023[6] - Revenue from vocational training business increased from RMB 248.3 million in 2022 to RMB 565.6 million in 2023[6] - Marketing services revenue was RMB 1,652.99 million, down from RMB 1,956.48 million in 2022[14] - Paid membership revenue increased by 48.4% to RMB 1.83 billion in 2023, compared to RMB 1.23 billion in 2022[17] - Vocational training revenue surged by 127.8% to RMB 565.6 million in 2023, up from RMB 248.3 million in 2022, driven by enhanced online course offerings and contributions from acquired vocational training businesses[17] Operational Efficiency - The total operating expenses for 2023 were RMB 3,368.1 million, a slight decrease from RMB 3,411.8 million in 2022[14] - Operating expenses remained stable at RMB 3.4 billion in both 2022 and 2023, with R&D expenses increasing by 18.1% to RMB 901.5 million[19] - The operating loss decreased by 33.1% to RMB 1.1 billion in 2023, compared to RMB 1.6 billion in 2022[19] Cash and Assets - Cash and cash equivalents decreased to RMB 5.5 billion as of December 31, 2023, down from RMB 6.3 billion at the end of 2022[20] - Total assets as of December 31, 2023, were RMB 6,795,272, a decrease from RMB 7,656,239 as of December 31, 2022[36] - Total liabilities increased to RMB 2,093,662 as of December 31, 2023, compared to RMB 1,961,971 as of December 31, 2022, reflecting a rise of approximately 6.7%[37] - Cash and cash equivalents as of December 31, 2023, were RMB 2,106,639, down from RMB 4,525,852 as of December 31, 2022, indicating a significant decrease of 53.5%[36] Corporate Governance - The company did not recommend the distribution of an annual dividend for the reporting period[33] - The company has complied with all applicable principles and provisions of the corporate governance code during the reporting period, except for the separation of the roles of Chairman and CEO[27] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited annual results for the reporting period[29] - The company has adopted a code for securities transactions by directors and relevant employees, confirming compliance during the reporting period[28] - The company plans to continue reviewing its corporate governance practices to ensure compliance with the latest standards[27] Strategic Initiatives - The company launched its first large language model, Zhihai Map AI, with over 100 billion parameters in November 2023[7] - The company is focusing on advancing generative AI technology to enhance user experience and content creation[7] - The company aims to optimize monetization efficiency through improved user experience and support for content creators[7] - The company aims to enhance community culture and high-quality content creation in 2024, focusing on professional users and content creators[13] - The company plans to leverage generative AI technology to support comprehensive business growth and improve operational efficiency[13] Shareholder Communication - The annual performance announcement is published on the Hong Kong Stock Exchange website and the company's website[56] - The annual report for the reporting period will be sent to shareholders at an appropriate time[56] - The company emphasizes the importance of accurate information dissemination to stakeholders[56] - The announcement date is March 26, 2024, indicating a timely update on financial performance[56] - Shareholders can access the annual report on the specified websites for detailed financial insights[56] - The announcement reflects the company's ongoing communication strategy with investors[56]