Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Filer Category | Non-accelerated Filer |
Entity Registrant Name | 36Kr Holdings Inc. |
Entity Incorporation, State or Country Code | KY |
Entity Address, Address Line One | 5-6/F, Tower A1, Junhao Central Park Plaza |
Entity Address, Address Line Two | No. 10 South Chaoyang Park Avenue |
Entity Address, City or Town | Chaoyang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100026 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity File Number | 001-39117 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001779476 |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 5-6/F, Tower A1, Junhao Central Park Plaza |
Entity Address, Address Line Two | No. 10 South Chaoyang Park Avenue |
Entity Address, City or Town | Chaoyang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100026 |
Contact Personnel Name | Ms. Lin Wei |
City Area Code | +86 10 |
Local Phone Number | 5825-4188 |
Contact Personnel Fax Number | weilin@36kr.com |
Ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 974,468,470 |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 878,385,770 |
No Trading Symbol Flag | true |
Class B ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 96,082,700 |
American depositary shares | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, each ADS represents 25 Class A ordinary shares, par value US$0.0001 per share |
Trading Symbol | KRKR |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | ¥ 142,511 | ¥ 96,965 |
Restricted cash | 100 | |
Short-term investments | 42,270 | 119,140 |
Accounts receivable, net | 197,528 | 180,161 |
Receivables due from related parties | 858 | 3,630 |
Prepayments and other current assets | 16,159 | 42,612 |
Total current assets | 399,426 | 442,508 |
Non-current assets: | ||
Property and equipment, net | 2,428 | 3,159 |
Intangible assets, net | 1,249 | 808 |
Long-term investments | 137,357 | 41,442 |
Operating lease right-of-use assets, net | 30,911 | 13,818 |
Total non-current assets | 171,945 | 59,227 |
Total assets | 571,371 | 501,735 |
Current liabilities: | ||
Accounts payable (including amounts of the consolidated variable interest entity ("VIE") and its subsidiaries without recourse to the primary beneficiary of RMB 56.07 million and RMB 53.47 million as of December 31, 2021 and 2022, respectively) | 53,465 | 56,266 |
Salary and welfare payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 37.63 million and RMB 34.00 million as of December 31, 2021 and 2022, respectively) | 52,204 | 55,788 |
Taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 11.31 million and RMB 6.84 million as of December 31, 2021 and 2022, respectively) | 10,874 | 12,836 |
Deferred revenue (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 28.86 million and RMB 24.58 million as of December 31, 2021 and 2022, respectively) | 24,575 | 28,863 |
Amounts due to related parties (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 1.33 million and RMB 0.31 million as of December 31, 2021 and 2022, respectively) | 312 | 1,328 |
Accrued liabilities and other payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 12.62 million and RMB 23.19 million as of December 31, 2021 and 2022, respectively) | 27,606 | 17,501 |
Short-term bank loan (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 5.0 million and RMB 9.95 million as of December 31, 2021 and 2022, respectively) | 9,950 | 5,000 |
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 16.30 million and RMB 31.29 million as of December 31, 2021 and 2022, respectively) | 31,293 | 16,302 |
Total current liabilities | 210,279 | 193,884 |
Non-current liabilities: | ||
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 0.59 million and RMB 15.09 million as of December 31, 2021 and 2022, respectively) | 15,093 | 586 |
Other non-current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of nil and RMB 0.62 million as of December 31, 2021 and 2022, respectively) | 615 | |
Total non-current liabilities | 15,708 | 586 |
Total liabilities | 225,987 | 194,470 |
Commitments and Contingencies (Note 17) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,061,491 | 2,049,448 |
Treasury stock (US$ 0.0001 par value; 16,201,618 shares and 14,094,018 shares as of December 31, 2021 and 2022, respectively) | (12,010) | (13,598) |
Accumulated deficit | (1,706,209) | (1,728,152) |
Accumulated other comprehensive loss | (5,860) | (8,987) |
Total 36Kr Holdings Inc.'s shareholders' equity | 338,106 | 299,405 |
Non-controlling interests | 7,278 | 7,860 |
Total shareholders' equity | 345,384 | 307,265 |
Total liabilities and shareholders' equity | 571,371 | 501,735 |
Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 628 |
Class B ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | ¥ 66 | ¥ 66 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2018 $ / shares |
Accounts payable | ¥ 53,465 | ¥ 56,266 | |||
Salary and welfare payables | 52,204 | 55,788 | |||
Taxes payable | 10,874 | 12,836 | |||
Deferred revenue | 24,575 | 28,863 | |||
Amounts due to related parties | 312 | 1,328 | |||
Accrued liabilities and other payables | 27,606 | 17,501 | |||
Short-term bank loan | 9,950 | 5,000 | |||
Operating lease liabilities | 31,293 | 16,302 | |||
Operating lease liabilities | 15,093 | ¥ 586 | |||
Other non-current liabilities | ¥ 615 | ||||
Shareholders' equity | |||||
Ordinary shares, par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Treasury stock (in shares) | shares | 14,094,018 | 16,201,618 | |||
Class A ordinary shares | |||||
Shareholders' equity | |||||
Ordinary shares, par value (in US dollar per share) | $ / shares | 0.0001 | 0.0001 | |||
Ordinary shares, shares authorized (in shares) | shares | 4,903,917,300 | 4,903,917,300 | |||
Ordinary shares, shares issued (in shares) | shares | 907,346,745 | 907,346,745 | |||
Ordinary shares, shares outstanding (in shares) | shares | 895,814,195 | 893,706,595 | |||
Class B ordinary shares | |||||
Shareholders' equity | |||||
Ordinary shares, par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, shares authorized (in shares) | shares | 96,082,700 | 96,082,700 | |||
Ordinary shares, shares issued (in shares) | shares | 96,082,700 | 96,082,700 | |||
Ordinary shares, shares outstanding (in shares) | shares | 96,082,700 | 96,082,700 | |||
VIEs | |||||
Accounts payable | ¥ 53,465 | ¥ 56,069 | |||
Salary and welfare payables | 33,998 | 37,631 | |||
Taxes payable | 6,844 | 11,311 | |||
Deferred revenue | 24,575 | 28,863 | |||
Amounts due to related parties | 312 | 1,328 | |||
Accrued liabilities and other payables | 23,185 | 12,621 | |||
Short-term bank loan | 9,950 | 5,000 | |||
Operating lease liabilities | 31,293 | 16,302 | |||
Operating lease liabilities | 15,093 | 586 | |||
Other non-current liabilities | ¥ 615 | ¥ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | ¥ 322,497 | ¥ 316,779 | ¥ 386,764 |
Cost of revenues | (137,848) | (128,844) | (261,372) |
Gross profit | 184,649 | 187,935 | 125,392 |
Operating expenses: | |||
Sales and marketing expenses | (122,069) | (143,887) | (140,672) |
General and administrative expenses | (52,072) | (90,636) | (212,411) |
Research and development expenses | (55,045) | (47,518) | (38,232) |
Impairment of goodwill | (1,395) | ||
Total operating expenses | (229,186) | (282,041) | (392,710) |
Loss from operations | (44,537) | (94,106) | (267,318) |
Other income/(expenses): | |||
Share of income/(loss) from equity method investments | 51 | (5,473) | (23,502) |
Gain on disposal of a subsidiary | 38,019 | ||
Long-term investment income/(loss), net | 15,964 | ||
Short-term investment income | 1,999 | 2,485 | 1,859 |
Government grant | 3,447 | 3,304 | 10,103 |
Others, net | 8,055 | 3,283 | 3,280 |
Income/(loss) before income tax | 22,998 | (90,507) | (275,578) |
Income tax expense | (361) | (102) | (3,764) |
Net income/(loss) | 22,637 | (90,609) | (279,342) |
Net loss/(income) attributable to non-controlling interests | (694) | 1,038 | (889) |
Net income /(loss) attributable to 36Kr Holdings Inc.'s ordinary shareholders | 21,943 | (89,571) | (280,231) |
Net income/(loss) | 22,637 | (90,609) | (279,342) |
Other comprehensive income/(loss) | |||
Foreign currency translation adjustments | 3,127 | (1,090) | (4,843) |
Total other comprehensive income/(loss) | 3,127 | (1,090) | (4,843) |
Total comprehensive income/(loss) | 25,764 | (91,699) | (284,185) |
Net loss/(income) attributable to non-controlling interests | (694) | 1,038 | (889) |
Comprehensive income/(loss) attributable to 36Kr Holding Inc.'s ordinary shareholders | ¥ 25,070 | ¥ (90,661) | ¥ (285,074) |
Net income/(loss) per ordinary share (RMB) | |||
-Basic | ¥ 0.021 | ¥ (0.087) | ¥ (0.275) |
-Diluted | ¥ 0.021 | ¥ (0.087) | ¥ (0.275) |
Weighted average number of ordinary shares used in per share calculation: | |||
-Basic (in shares) | 1,034,547,219 | 1,025,068,349 | 1,019,316,944 |
-Diluted (in shares) | 1,034,547,219 | 1,025,068,349 | 1,019,316,944 |
ADS | |||
Net income/(loss) per ordinary share (RMB) | |||
-Basic | ¥ 0.530 | ¥ (2.185) | ¥ (6.873) |
-Diluted | ¥ 0.530 | ¥ (2.185) | ¥ (6.873) |
Weighted average number of ordinary shares used in per share calculation: | |||
-Basic (in shares) | 41,381,889 | 41,002,734 | 40,772,678 |
-Diluted (in shares) | 41,381,889 | 41,002,734 | 40,772,678 |
Cost of revenues | |||
Share-based compensation expenses included in | |||
Employee consideration | ¥ 1,571 | ¥ 1,322 | ¥ 1,123 |
Sales and marketing expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | 3,558 | 8,526 | 16,168 |
General and administrative expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | 7,943 | 5,622 | 19,508 |
Research and development expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | 814 | (452) | 2,478 |
Online advertising services | |||
Revenues: | |||
Total revenues | 221,620 | 214,722 | 172,811 |
Enterprise value-added services | |||
Revenues: | |||
Total revenues | 72,640 | 74,032 | 193,213 |
Subscription services | |||
Revenues: | |||
Total revenues | ¥ 28,237 | ¥ 28,025 | ¥ 20,740 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - CNY (¥) ¥ in Thousands | Ordinary shares Class A ordinary shares | Ordinary shares Class B ordinary shares | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income/loss | Non-controlling interests | Total |
Balance, beginning of the year at Dec. 31, 2019 | ¥ 613 | ¥ 66 | ¥ 2,000,267 | ¥ (2,333) | ¥ (1,358,350) | ¥ (3,054) | ¥ 6,739 | ¥ 643,948 |
Balance, beginning of the year (in shares) at Dec. 31, 2019 | 902,282,202 | 96,082,700 | 2,561,468 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | (280,231) | 889 | (279,342) | |||||
Share-based compensation | 39,277 | 39,277 | ||||||
Share repurchase | ¥ (11,748) | (11,748) | ||||||
Share repurchase (in shares) | (12,996,125) | 12,996,125 | ||||||
Capital injection from non-controlling interests | 520 | 520 | ||||||
Foreign currency translation adjustment | (4,843) | (4,843) | ||||||
Issuance of ordinary shares upon exercise of share-based awards | ¥ 8 | 8 | ||||||
Issuance of ordinary shares upon exercise of share-based awards (in shares) | 12,138,965 | |||||||
Cancellation of share-based awards | (250,447) | |||||||
Others | 1,149 | 1,149 | ||||||
Balance, end of the year at Dec. 31, 2020 | ¥ 621 | ¥ 66 | 2,040,693 | ¥ (14,081) | (1,638,581) | (7,897) | 8,148 | 388,969 |
Balance, end of the year (in shares) at Dec. 31, 2020 | 901,174,595 | 96,082,700 | 15,557,593 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | (89,571) | (1,038) | (90,609) | |||||
Share-based compensation | 15,018 | 15,018 | ||||||
Share repurchase | ¥ (5,780) | (5,780) | ||||||
Share repurchase (in shares) | (6,646,700) | 6,646,700 | ||||||
Capital injection from non-controlling interests | 750 | 750 | ||||||
Foreign currency translation adjustment | (1,090) | (1,090) | ||||||
Issuance of ordinary shares upon exercise of share-based awards | ¥ 7 | (6,263) | ¥ 6,263 | 7 | ||||
Issuance of ordinary shares upon exercise of share-based awards (in shares) | 10,556,462 | (6,002,675) | ||||||
Cancellation of share-based awards | (1,298,199) | |||||||
Balance, end of the year at Dec. 31, 2021 | ¥ 628 | ¥ 66 | 2,049,448 | ¥ (13,598) | (1,728,152) | (8,987) | 7,860 | 307,265 |
Balance, end of the year (in shares) at Dec. 31, 2021 | 903,786,158 | 96,082,700 | 16,201,618 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | 21,943 | 694 | 22,637 | |||||
Share-based compensation | 12,376 | 12,376 | ||||||
Capital injection from non-controlling interests | 174 | 174 | ||||||
Foreign currency translation adjustment | 3,127 | 3,127 | ||||||
Issuance of ordinary shares upon exercise of share-based awards | (1,588) | ¥ 1,588 | ||||||
Issuance of ordinary shares upon exercise of share-based awards (in shares) | 2,107,600 | (2,107,600) | ||||||
Acquisition of non-controlling interests of subsidiaries | 1,388 | (3,093) | (1,705) | |||||
Sale of a subsidiary's shares to non-controlling shareholders | (133) | 1,643 | 1,510 | |||||
Balance, end of the year at Dec. 31, 2022 | ¥ 628 | ¥ 66 | ¥ 2,061,491 | ¥ (12,010) | ¥ (1,706,209) | ¥ (5,860) | ¥ 7,278 | ¥ 345,384 |
Balance, end of the year (in shares) at Dec. 31, 2022 | 905,893,758 | 96,082,700 | 14,094,018 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income/(loss) | ¥ 22,637 | ¥ (90,609) | ¥ (279,342) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation of property and equipment | 1,772 | 2,563 | 5,549 |
Amortization of intangible assets | 150 | 96 | 49 |
Share-based compensation expenses | 13,886 | 15,018 | 39,277 |
Non-cash operating lease expense | 13,606 | 15,481 | 15,306 |
Allowance for credit losses | (28,672) | 9,853 | 127,100 |
Losses from disposal of property, equipment and software | 25 | 73 | 103 |
Exchange (gains)/ losses | (3) | 68 | 104 |
Goodwill impairment | 1,395 | ||
Property and equipment impairment | 7,987 | ||
Fair value changes of short-term investments | (618) | (670) | (474) |
Long-term investment income/(loss), net | (15,964) | ||
Share of loss/(income) from equity method investments | (51) | 5,473 | 23,502 |
Disposal gain on a subsidiary | (38,019) | ||
Deferred income tax | 3,391 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 6,948 | 241,475 | 108,162 |
Receivables due from related parties | (608) | (1,780) | 4,517 |
Prepayments and other current assets | 26,034 | 51 | 23,657 |
Accounts payable | (2,801) | (8,375) | (73,551) |
Salary and welfare payables | (3,584) | 10,208 | (5,163) |
Taxes payable | (1,962) | (5,988) | (16,525) |
Deferred revenue | (3,672) | 10,014 | 10,688 |
Amounts due to related parties | (1,016) | 780 | 548 |
Accrued liabilities and other payables | 8,124 | 3,834 | 1,946 |
Lease liabilities | (1,201) | (12,604) | (15,351) |
Net cash (used in)/provided by operating activities | (4,989) | 194,961 | (17,125) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,065) | (1,747) | (2,186) |
Purchase of intangible assets | (591) | (433) | (164) |
Purchase of short-term investments | (457,490) | (659,210) | (613,952) |
Proceeds from maturities of short-term investments | 534,978 | 689,084 | 552,444 |
Placement of time deposits | (135,934) | ||
Withdrawal of time deposits | 135,934 | ||
Loan paid to related parties | (2,000) | ||
Loan repayment from related parties | 2,000 | ||
Cash received from customer in relation to advertisement agent services | 70,208 | 26,295 | |
Cash paid on behalf of the customer in relation to advertisement agent services | (64,054) | (179,036) | |
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (431) | ||
Investment in long-term investments | (38,970) | (30,950) | |
Cash paid to acquire non-controlling interests of subsidiaries | (1,705) | ||
Net cash (used in)/provided by investing activities | 43,311 | (157,997) | (64,289) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (21,617) | ||
Proceeds from bank loan | 9,950 | 10,000 | |
Repayment of bank loan | (5,000) | (5,000) | |
Proceeds from employee options exercised | 7 | 8 | |
Share repurchase | (5,780) | (11,748) | |
Capital injection from non-controlling interest shareholders | 174 | 750 | 520 |
Net cash provided by/(used in) financing activities | 5,124 | (23) | (32,837) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | 2,200 | (822) | (2,780) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 45,646 | 36,119 | (117,031) |
Cash, cash equivalents and restricted cash at beginning of the year | 96,965 | 60,846 | 177,877 |
Cash, cash equivalents and restricted cash at end of the year | 142,611 | 96,965 | 60,846 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of tax refund | (171) | (306) | (13,570) |
Supplemental schedule of non-cash investing and financing activities: | |||
Property and equipment purchases financed by other payable | ¥ 107 | ¥ 111 | |
The addition of long-term investment in Hangzhou Jialin | ¥ 40,000 |
Nature of Operations and Reorga
Nature of Operations and Reorganization | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations and Reorganization | |
Nature of Operations and Reorganization | 1. Nature of Operations and Reorganization (a) Nature of operations 36Kr Holdings Inc. (‘‘36Kr’’ or the ‘‘Company’’), is a holding company and conducts its business mainly through its subsidiaries, a VIE and subsidiaries of the VIE (collectively referred to as the “Group”). The Group is primarily engaging in providing content and business services to new economy participants in the People’s Republic of China (the “PRC”). The Group mainly generates revenues from providing online advertising services, enterprise value-added services and subscription services (collectively referred to as the “36Kr Business”). The Group’s principal operations and geographic markets are substantially located in PRC. The Group commenced operations in 2010. Beijing Xieli Zhucheng Finance Information Service Co., Ltd. (“Xieli”) was established in 2011 by Mr. Liu Chengcheng (the “Founder”) to carry out the Group’s principal business. In December 2016, the Group’s business was carved out from Xieli (“Carve-out”), and incorporated into a newly set up company named Beijing Duoke Information Technology Co., Ltd. (“Beijing Duoke”; formerly named as Beijing Pinxin Media Culture Co., Ltd. and Beijing Sanshiliuke Culture Media Co., Ltd.), which was then a wholly owned subsidiary of Xieli. The Company was incorporated as a limited liability company in the Cayman Islands on December 3, 2018. Through a series of contemplated reorganization steps (the “Reorganization”), the Company established Beijing Dake Information Technology Co., Ltd. (“Beijing Dake”) in June 2019 to be the primary beneficiary of Beijing Duoke for accounting purposes through entering into a series of contractual arrangements and thereafter the 36Kr Business was transferred to the Group upon the completion of the Reorganization. The Reorganization was approved by the Board of Directors and a reorganization framework agreement was entered into by the Company, Beijing Duoke, the Founder and the shareholders of Beijing Duoke in June 2019. Beijing Duoke has become VIE of the Group. The ownership structure of the major subsidiaries and VIE of the Group as of December 31, 2022 is: Percentage of Direct or Indirect Place and year of Economic Major subsidiaries Incorporation Ownership Principal activities 36Kr Holding Limited (“36Kr BVI” or “BVI Subsidiary”) British Virgin Islands, established in 2018 100 % Investment holding 36Kr Holdings (HK) Limited (“36Kr HK” or “HK Subsidiary”) Hong Kong, established in 2018 100 % Investment holding Tianjin Duoke Investment Co., Ltd. (“Tianjin Duoke”) The PRC, established in 2019 100 % Investment holding Tianjin Dake Information Technology Co., Ltd. (“Tianjin Dake”) The PRC, established in 2019 100 % Management consulting Beijing Dake The PRC, established in 2019 100 % Management consulting Nanjing Dake Information Technology Co., Ltd. (“Nanjing Dake”) The PRC, established in 2021 100 % Management consulting Hainan Shenke Information Technology Co., Ltd. (“Hainan Shenke”) The PRC, established in 2021 100 % Management consulting Percentage of Place and year of Economic VIE Incorporation Ownership Principal activities Beijing Duoke The PRC, established in 2016 100 % 36Kr Business 1. Nature of Operations and Reorganization (Continued) (a) Nature of operations (Continued) Percentage of Place and year of Economic VIE Major subsidiaries Incorporation Ownership Principal activities Zhejiang Pinxin Technology Co., Ltd. The PRC, established in 2019 100 % Investment holding (b) Initial Public Offering On November 8, 2019, the Company completed its initial public offering (the “IPO”) on the NASDAQ. In the offering, 1,380,000 American depositary shares (“ADSs”), representing 34,500,000 Class A ordinary shares, were issued and sold to the public at a price of US$14.50 per ADS. The net proceeds to the Company from the IPO, after deducting accrued and paid commissions and offering expenses, were approximately US$12.33 million (RMB 86.24 million). (c) Contractual agreements with the VIE In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content services, the Group operates its restricted businesses in the PRC through its VIE, whose equity interests are held by the Founder and other shareholders of the Group. The Company became the primary beneficiary of the VIE for accounting purposes by entering into a series of contractual arrangements with the legal shareholders who are also referred to as nominee shareholders. These nominee shareholders are the legal owners of the VIE. However, the rights of those nominee shareholders have been transferred to the Group through the contractual arrangements. The contractual arrangements are the power of attorney, equity pledge agreement, exclusive purchase option agreement and exclusive business cooperation agreement. The Company’s management concluded that the Company, through the contractual arrangements, has the power to direct the activities that most significantly impact the VIE’s economic performance and bears the risks of and enjoys the rewards normally associated with ownership of the VIE. Therefore, the Company is the ultimate primary beneficiary of the VIE for accounting purpose. As such, the Company consolidates the financial statements of the VIE and its subsidiaries, and the financial results of the VIE were included in the Group’s consolidated financial statements in accordance with the basis of presentation as stated in Note 2 (a). The following is a summary of the contractual agreements that were entered into by and among Beijing Dake, Beijing Duoke, and the nominee shareholders of Beijing Duoke. Power of Attorney Beijing Dake, Beijing Duoke and the shareholders of Beijing Duoke except for BCI, the minority investment shareholder mentioned below, have entered into an power of attorney, pursuant to which each of the shareholders of Beijing Duoke irrevocably appointed Beijing Dake (as well as its successors, including a liquidator, if any, replacing Beijing Dake) or its designated persons to act on their respective behalf as exclusive agent and attorney, to the extent permitted by law, with respect to all rights of shareholders concerning all equity interests held by each of them in Beijing Duoke, including without limitation (i) to exercise all the shareholder’s rights (including but not limited to voting rights and right to sell, transfer, pledge or dispose of all equity interests in Beijing Duoke held in part or in whole), (ii) to attend shareholders’ meetings and to execute any and all written resolutions and meeting minutes in the name and on behalf of such shareholders, and (iii) to file documents with the relevant companies registry. The agreement will remain effective until Beijing Dake unilaterally terminates the agreement in writing or all equity interests in Beijing Duoke held by its shareholders are transferred or assigned to Beijing Dake or its designated representatives. 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Equity Pledge Agreement Beijing Dake, Beijing Duoke and the shareholders of Beijing Duoke except for BCI, the minority investment shareholder mentioned below, have entered into an equity pledge agreement, pursuant to which the shareholders of Beijing Duoke have pledged all of their equity interests in Beijing Duoke that they own, including any interest or dividend paid for the shares, to Beijing Dake as a security interest to guarantee the performance by Beijing Duoke and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement and power of attorney. Upon the discovery of the occurrence of any circumstances or event that may lead to an event of default (as defined in the equity pledge agreement), Beijing Dake, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Beijing Dake is not liable for any loss incurred by its due exercise of such rights and powers. This pledge will become effective on the date the pledged equity interests are registered with the relevant office of industry and commerce and will remain effective until the pledgors are no longer the shareholders of Beijing Duoke. Exclusive Purchase Option Agreement Beijing Dake, Beijing Duoke and the shareholders of Beijing Duoke except for BCI, the minority investment shareholder mentioned below, have entered into an exclusive purchase option agreement, pursuant to which each of the shareholders of Beijing Duoke irrevocably granted Beijing Dake or its designated representatives an exclusive option to purchase, to the extent permitted under PRC law, all or part of his, her or its equity interests in Beijing Duoke. Beijing Dake or its designated representatives have sole discretion as to when to exercise such options, either in part or in full, once or at multiple times at any time. Without Beijing Dake’s prior written consent, the shareholders of Beijing Duoke shall not sell, transfer, mortgage or otherwise dispose of their equity interests in Beijing Duoke, or allow the encumbrance thereon. The agreement will remain effective until all equity interests in Beijing Duoke held by its shareholders are transferred or assigned to Beijing Dake or its designated representatives. Exclusive Business Cooperation Agreement Beijing Dake and Beijing Duoke have entered into an exclusive business cooperation agreement, pursuant to which Beijing Dake has the exclusive right to provide to Beijing Duoke technical support, consulting services and other services related to Beijing Duoke’s business, including business management, daily operations, strategic planning, among others. Beijing Dake has granted Beijing Duoke the right to register its intellectual property rights under Beijing Duoke. Beijing Dake has the right to purchase such intellectual property rights from Beijing Duoke at nominal prices. The scope of the services provided by Beijing Dake may be expanded from time to time per Beijing Duoke’s request. The timing and amount of the service fee payments shall be determined at the sole discretion of Beijing Dake. The term of this agreement is indefinite unless Beijing Dake unilaterally terminates the agreement in writing. Minority Investment in Beijing Duoke In November 2022, Beijing Cultural Investment Development Group Asset Management Co., Ltd. (“BCI”) made an investment of RMB32,492 in Beijing Duoke for 1% of Beijing Duoke’s registered capital. Such minority stake holder is entitled to customary economic rights in proportion to its equity ownership, and certain minority shareholder rights such as the right to appoint a director to Beijing Duoke’s three-member board of directors, and veto rights over certain matters related to content decision. The minority stake holder is not a party to the contractual arrangements mentioned above that are currently in effect among Beijing Duoke Beijing Dake and Beijing Duoke’s shareholders. As such, despite the fact that the Company is still able to enjoy economic benefits and is the primary beneficiary of Beijing Duoke and its subsidiaries, the Company is not able to purchase or have the third party minority stake holder pledge its 1% equity interests in Beijing Duoke in the same manner as agreed under existing contractual arrangements, nor is it granted the authorization of voting rights over these 1% equity interests. The Company believes Beijing Dake, the wholly-owned PRC subsidiary, still is the primary beneficiary of Beijing Duoke for accounting purpose as it continues to have a controlling financial interest in Beijing Duoke pursuant to ASC 810-10-25-38A after the issuance of such 1% equity interests. 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure A significant part of the Group’s business is conducted through the VIE of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of the management, the contractual arrangements with the VIE and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders indicate they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of the PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. The CEO along with other employees own the majority of the voting shares of the VIE. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIE depend on these individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and the VIE may not be aligned in the future. Given the significance and importance of the VIE, there would be a significant negative impact to the Company if these contracts were not enforced. The Group’s operations depend on the VIE to honour its contractual agreements with the Group and the Company’s ability to enjoy economic benefits and have power over the VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholder approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to control and consolidate the VIE as a result of the aforementioned risks and uncertainties is remote. It is possible that the Group’s operation of certain of its operations and businesses through the VIE could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, effective on January 1, 2020 and replaced three existing laws regulating foreign investment in China, namely, the Wholly Foreign-Invested Enterprise Law of the PRC, the Sino-Foreign Cooperative Joint Venture Enterprise Law of the PRC and the Sino-Foreign Equity Joint Venture Enterprise Law of the PRC, together with their implementation rules and ancillary regulations. The Foreign Investment Law of the PRC embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. For example, the Foreign Investment Law of the PRC adds a catch-all clause to the definition of ‘‘foreign investment’’ so that foreign investment, by its definition, includes ‘‘investments made by foreign investors in China through other means defined by other laws or administrative regulations or provisions promulgated by the State Council’’ without further elaboration on the meaning of ‘‘other means.’’ It leaves leeway for the future legislations promulgated by the State Council to provide for contractual arrangements as a form of foreign investment. It is therefore uncertain whether the Group’s corporate structure will be seen as violating the foreign investment rules as the Group are currently leveraging the contractual arrangements to operate certain businesses in which foreign investors are prohibited from or restricted to investing. Furthermore, if future legislations prescribed by the State Council mandate further actions to be taken by companies with respect to existing contractual arrangement, the Group may face substantial uncertainties as to whether the Group can complete such actions in a timely manner, or at all. If the Group fails to take appropriate and timely measures to comply with any of these or similar regulatory compliance requirements, the Group’s current corporate structure, corporate governance and business operations could be materially and adversely affected. 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) If the Group’s corporate structure or the contractual arrangements with the VIE were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: ● revoke the business licenses and/or operating licenses of such entities; ● discontinue or place restrictions or onerous conditions on the Group’s operation through any transactions between the PRC subsidiary and the VIE; ● impose fines, confiscate the income from the PRC subsidiary or the VIE, or impose other requirements with which the VIE may not be able to comply; ● require the Group to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect the Group’s ability to consolidate, derive economic interests from, or enjoy economic benefits and have power over the VIE; ● restrict or prohibit the Group’s use of the proceeds of this offering to finance the Group’s business and operations in China; or ● take other regulatory or enforcement actions that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIE, which may result in deconsolidation of the VIE in the Group’s consolidated financial statements. In the opinion of the management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group believes that the contractual arrangements among the VIE, its shareholders and relevant wholly foreign owned enterprise are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIE to honor its contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The Company’s management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under the PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the nominee shareholders of the VIE fail to perform their obligations under those arrangements. 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) The following financial information of the Group’s VIE and the VIE’s subsidiaries as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 is included in the accompanying consolidated financial statements of the Group as follows: December 31, December 31, 2021 2022 RMB’000 RMB’000 Current assets: Cash and cash equivalents 42,047 101,659 Restricted cash — 100 Short‑term investments 99,017 22,247 Accounts receivable, net 179,986 197,503 Amounts due from the Company and its subsidiaries 16,137 16,361 Receivables due from related parties of the Group 3,620 804 Prepayments and other current assets 42,312 15,913 Non‑current assets: Property and equipment, net 3,157 2,428 Intangible assets, net 808 1,249 Long-term investments, net 30,976 126,434 Operating lease right-of-use assets, net 13,818 30,911 Total assets 431,878 515,609 Current liabilities: Accounts payable 56,069 53,465 Salary and welfare payables 37,631 33,998 Taxes payable 11,311 6,844 Deferred revenue 28,863 24,575 Amounts due to the Company and its subsidiaries 143,331 155,818 Amounts due to related parties of the Group 1,328 312 Accrued liabilities and other payables 12,621 23,185 Short-term bank loan 5,000 9,950 Operating lease liabilities 16,302 31,293 Non-current liabilities: Operating lease liabilities 586 15,093 Other non-current liabilities — 615 Total liabilities 313,042 355,148 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) For the year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Inter-company revenues — 25 — Third-party revenues 386,861 316,632 320,526 Cost of revenues (282,772) (147,654) (211,698) Gross profit 104,089 169,003 108,828 Operating expenses (284,163) (190,249) (131,984) Loss from operations (180,074) (21,246) (23,156) Gain on disposal of a subsidiary — — 38,019 Share of loss from equity method investments — 26 523 Long-term investments income/(loss), net — — 15,964 Short-term investments income 1,416 1,768 1,262 Others, net 12,021 5,602 9,402 Income/(Loss) before income tax (166,637) (13,850) 42,014 Income tax expenses (3,814) (111) (361) Net income/(loss) (170,451) (13,961) 41,653 For the year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net cash (used in)/provided by operating activities 57,273 266,927 77,322 Purchase of short-term investments (504,571) (571,110) (417,490) Proceeds from maturities of short-term investments 423,937 594,927 494,709 Investment in long-term investments — (30,950) (38,970) Loan paid to inter-company entities (150) (5,000) — Loan collected from related parties — — 2,000 Loan collected from inter-company entities — 5,000 100 Cash received from customer in relation to advertisement agent services — 26,295 70,208 Cash paid on behalf of the customer in relation to advertisement agent services — (179,036) (64,054) Others (2,777) (4,180) (3,361) Net cash (used in)/provided by investing activities (83,561) (164,054) 43,142 Proceeds from initial public offering, net of issuance costs (6,000) — — Capital injection from noncontrolling interest shareholders 520 750 174 Proceeds from loans provided by inter-company entities 35,910 25,010 — Repayments of loans provided by inter-company entities (5,000) (103,080) (65,876) Others (19) 5,000 4,950 Net cash provided by/(used in) financing activities 25,411 (72,320) (60,752) Increase/(Decrease) in cash, cash equivalents and restricted cash (877) 30,553 59,712 Cash, cash equivalents and restricted cash at beginning of year 12,371 11,494 42,047 Cash, Cash equivalents and restricted cash at end of year 11,494 42,047 101,759 1. Nature of Operations and Reorganization (Continued) (c) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) The Company’s involvement with the VIE is through the contractual arrangements disclosed above. All recognized assets held by the VIE are disclosed in the table above. Unrecognized revenue-producing assets held by the VIE include the Internet Content Provision License, tradename of 36Kr, the domain names of 36kr.com, 36Kr mobile application, 36Kr official account on social networks, customer relationship relating to online advertising and enterprise value-added services, customer lists relating to subscription services and assembled workforce. In accordance with various contractual agreements, the Company has the power to direct the activities of the VIE and can have assets transferred out of the VIE. Therefore, the Company considers that there are no assets in the respective VIE that can be used only to settle obligations of the respective VIE, except for the registered capital of the VIE as well as certain non-distributable statutory reserves. As the respective VIE is incorporated as a limited liability company under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIE. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIE. As the Group is conducting certain businesses in the PRC through the VIE, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the VIE’s subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore is the primary beneficiary of the entity. All significant intercompany transactions and balances between the Company, its subsidiaries, the VIE and subsidiaries of the VIE have been eliminated upon consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Group. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event which is not solely within the control of the Group, the non-controlling interest is classified as mezzanine equity. 2. Significant Accounting Policies (Continued) (b) Principles of consolidation (Continued) Consolidated net income/(loss) on the consolidated statements of comprehensive income/(loss) includes the net income/(loss) attributable to the non-controlling interests when applicable. For the years ended December 31, 2020, 2021 and 2022, the net income/(loss) attributable to the non-controlling interests were an income of RMB 0.89 million, a loss of RMB 1.04 million and an income of RMB 0.69 million, respectively. Cash flows related to transactions with non-controlling interests holders are presented under financing activities in the consolidated statements of cash flows when applicable. (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of assessment for the allowance for credit loss, fair value of investments accounted for at fair value, impairment of long-term investments, impairment of long-lived assets, valuation allowance of deferred tax assets and valuation and recognition of share-based compensation expenses, Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. (d) Functional currency and foreign currency translation The Group’s reporting currency is Renminbi (‘‘RMB’’). The functional currency of the Company is United States dollar (‘‘US$’’). The functional currency of the Group’s PRC entities, the VIE and the VIE’s PRC subsidiaries is RMB. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters. Transactions denominated in foreign currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the transactions date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet dates. Exchange gains and losses arising from foreign currency transactions are recorded in the consolidated statements of comprehensive income/(loss). The financial statements of the Group’s non PRC entities are translated from their respective functional currencies into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulting foreign currency translation adjustments are reported in other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss), and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive loss in the consolidated statements of changes in shareholders’ (deficit)/equity. Total foreign currency translation adjustments included in the Group’s other comprehensive income/(loss) were a net loss of RMB 4.84 million, a net loss of RMB 1.09 million and an income of RMB 3.13 million for the years ended December 31, 2020, 2021 and 2022, respectively. 2. Significant Accounting Policies (Continued) (e) Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: a. Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. b. Level 2—Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. c. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash equivalents, restricted cash, short term investments, accounts receivable, receivables due from related parties, other receivables, long-term investments, accounts payable, accrued liabilities and other payables, short-term bank loan and amounts due to related parties. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2021 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 119,140 — 119,140 As of December 31, 2022 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 42,270 — 42,270 Long-term investments- Fair value option 66,470 66,470 2. Significant Accounting Policies (Continued) (e) Fair value measurements (Continued) Recurring The Group’s short-term investments consisted of wealth management products which contain a variable interest rate. To estimate the fair value of short-term investments, the Group refers to the quoted rate of return provided by financial institutions at the end of each year/period. The Group classifies the valuation techniques that use these inputs as level 2 of fair value measurement. The Group applies fair value accounting to privately held investments classified as debt securities. The fair value of privately held investments classified as debt securities were determined using recent market transaction price (Level 2). For the investments made close to the period end, their initial investment amounts were deemed approximately equal to their fair value, except that the fair value of the investment in Shanghai Fanbo Biotechnology Co. (“Fanbo”) was estimated to be nil as of December 31, 2022 due to the significant liquidity difficulty Fanbo encountered. Non-Recurring For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value. The non-recurring fair value measurements of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. These non-recurring fair value measurements were measured as of the observable transaction dates. The Company classifies the valuation methodologies that require management to use the observable transaction price at the transaction date as Level 2 of fair value measurements Details of the fair value measurements of equity securities accounted for under the measurement alternative is set out in Note 8 Long-term investments. When there is impairment of equity securities accounted for under the measurement alternative and equity method investments, the non-recurring fair value measurements are measured at the date of impairment. There was no impairment recognized for the year ended 2020, 2021 and 2022. As of December 31, 2021 and 2022, the fair values of cash and cash equivalents, accounts receivable, receivables due from related parties, other receivables, accounts payable, accrued liabilities and other payables, short-term bank loan and amounts due to related parties approximated their carrying values reported in the consolidated balance sheets due to the short term maturities of these instruments. (f) Cash and cash equivalents Cash and cash equivalents represent cash in banks and highly liquid investments placed with banks or other financial institutions, which are unrestricted to withdrawal or use, and which have original maturities of three months or less. (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets, and is included in the total cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows. The Group’s restricted cash mainly represents cash at bank with restricted use. 2. Significant Accounting Policies (Continued) (h) Short-term investments Short-term investments include investments in wealth management products issued by China Merchants Bank, which are redeemable by the Company at a periodic term or any working day within one year. The wealth management products are unsecured with variable interest rates and primarily invested in financial instruments with high credit rating and good liquidity in the interbank and exchange markets, including but not limited to debt securities issued by the PRC government, central bank bills, interbank and exchange-traded bond, and assets backed securities. The Company measures the short-term investments at fair value using the quoted subscription or redemption prices published by the bank or by discounting the future cash flows at the expected yield rate with reference to the expected benchmark yield rates of the wealth management products of the bank. (i) Accounts receivable, net Accounts receivable is the Group’s right to consideration that is unconditional, and the right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. The carrying value of accounts receivable is reduced by an allowance that reflects the Group’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Accounts receivable is measured at amortized cost and reported on the consolidated balance sheets at the outstanding principals adjusted for any write-offs and any allowance for credit losses, since the Group adopted ASC 326 beginning from January 1, 2021. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on historical collection activity, current business environment and forecasts of future macroeconomic conditions that may affect the customers’ ability of payment. Expected credit losses In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses The Group adopted ASU 2016-13 beginning from January 1, 2021 on a modified retrospective basis and there was no material impact on the balance sheets and the consolidated statements of comprehensive income/(loss) as a result of adopting the new standard. 2. Significant Accounting Policies (Continued) (j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful life Electronic equipment and computers 3 years Office furniture and equipment 3 years Leasehold improvement Lesser of the term of the lease or the estimated useful lives of the leasehold improvement Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment is capitalized as addition to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income/(loss). (k) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries and consolidated VIE. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. The guidance provides the option that the Group may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. On January 1, 2020, the Group adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment to simplify the test for goodwill impairment by removing Step 2, which was issued by the FASB in January 2017. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step 2 to measure the impairment loss. Based on the impairment assessment, management determined that the goodwill amounted to RMB 1.4 million has been fully impaired as of December 31, 2020. 2. Significant Accounting Policies (Continued) (l) Impairment of long-lived assets The Group evaluates its long-lived assets with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value based on a discounted cash flow approach or, when available and appropriate, over comparable market values. (m) Long-term investments The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and investments accounted for at fair value. Equity investments accounted for using the measurement alternative Investments in entities in which the Group does not have significant influence and without readily determinable fair value are accounted for using the measurement alternative of accounting in accordance with ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The Group records its share of measurement alternative investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes in orderly transactions for the identical or similar investment of the same issuer. The subsequent adjustments are recognized as “Long-term investment income/(loss), net” in the consolidated statements of comprehensive income/(loss). The Group regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equals to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method Investments in entities in which the Group can exercise significant influence but does not control or own a majority equity interest are accounted for using the equity method of accounting in accordance with ASC Topic 323 Investments-Equity Method and Joint Ventures. The Group adjusts the carrying amount of equity method investments for its share of the income or losses of the investee and reports the recognized income or losses as “Share of income/(loss) from equity method investments” in the consolidated statements of comprehensive income/(loss). The Group’s share of the income or losses of an investee are based on the shares of common stock and in-substance common stock held by the Group. The Group records its share of the results of equity investments in 36Kr Global Holding (HK) Limited (“36Kr Global Holding”) and Shanghai Xuanke Technology Co., Ltd.(“Shanghai Xuanke”) on a one quarter in arrears basis. The Group continuously reviews its investment in equity investees under equity method to determine whether a decline in fair value to below the carrying value is other-than-temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value, the financial condition, operating performance and the prospects of the equity investee, and other company specific information such as recent financing rounds. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. No impairment losses of long-term investments were recognized for the years ended December 31, 2020, 2021 and 2022. Investments accounted for at fair value 2. Significant Accounting Policies (Continued) (m) Long-term investments (Continued) For investments in preferred shares that provide the Group redemption rights, the Group elected the fair value option in accordance with ASC Topic 825. The investments accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded on consolidated statements of comprehensive income/(loss) as “Long-term investment income/(loss), net”. (n) Revenue recognition According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group determines revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price, including the constraint on variable consideration; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when (or as) the Group satisfy a performance obligation. The following is a description of the accounting policy for the principal revenue streams of the Group. I. Online advertising services Online advertising revenue is derived principally from advertising contracts with customers, which allow advertisers to place advertisements on agreed areas of the Company’s PC website, mobile application and official accounts in other social networks including but not limited to Weibo, Weixin/WeChat, Toutiao and Bilibili (collectively referred to as “36Kr Platforms”) in different formats and over a particular period of time. The Group displays advertisement provided by customers in a variety of forms such as full screen display, banners, pop-ups, as well as advertorials and short-form videos. The Group also helps produce advertisements based on the customers’ requests, and post the advertisements on the 36Kr Platforms to help promote customers’ products and enhance their brand awareness. The Group has developed capabilities in generating and distributing its own and third-party high-quality content on 36Kr Platforms, there is no third party content for fulfilling a promise to the customers for the years ended December 31, 2020, 2021 and 2022. The Group generates its online advertising service revenue primarily (i) at a fixed fee per each day’s advertisement display, which is known as the Cost Per Day (“CPD”) model, and (ii) at a fixed fee per each advertisement posted on the 36Kr Platforms, which the Group refers as the cost-per-advertisement basis. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting discounts and net of value-added tax (“VAT”) under ASC 606. The Group’s online advertising contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. 2. Significant Accounting Policies (Continued) (n) Revenue recognition (Continued) Under the CPD model, a contract is signed to establish a fixed price for the advertising services to be provided over a period of time. Given the advertisers benefit from the advertising evenly, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. Under the cost-per-advertisement model, as all the economic benefit enjoyed by the customer can be substantially realized at the time the advertisements are posted initially, the Group recognizes revenue at a point in time when it posts the advertisements initially. II. Enterprise value-added services The principal enterprise value-added services that the Group provides to customers are set out as follows: (i) Integrated marketing The Group provides one-stop media solutions to helps its customers develop tailored and diverse marketing strategies to improve their marketing efficiency. Integrated marketing services include providing end customers with marketing plan, marketing event organization and execution on third-party media platforms, and public relations, etc. The Group considers itself as the principal for this type of services as it is the primary obligor for such service, it has control over the services provided to the customers from market planning through service delivered since a) the Group is able to direct suppliers to deliver advertising services on its behalf based on the integrated marketing plan set by the Group including the content, form, time and media platform of the advertisement; b) the Group is obligated to fulfill the promise to provide the integrated marketing services to customers; c) the Group has the discretion in setting the prices for the services. Therefore, the Group recognize the revenues at a gross basis. (ii) Online/offline events The Group organizes offline and online diverse events, such as summits, forums, industry conferences and fan festivals in a bid to create brand-building opportunities and to facilitate business cooperation and investment opportunities. The services provided by the Group to the customer who then becomes a sponsor of such events including for the sponsor to participate as a speaker, to launch new products of the sponsor, to place advertisements at events and the 36Kr Platforms during the course of events. (iii) Consulting The Group provides customized market research and industry reports to established companies. In addition, the Group also helps the customers to organize and execute business events. In certain circumstances, the Group engages third party suppliers to perform part of the aforementioned services in fulfilling its contract obligation. In these cases, the Group controls and takes responsibilities for such services before the services are transferred to the customer. The Group has the right to direct the suppliers to perform the service and control the goods or assets transferred to its customers. In addition, the Group combines and integrates the separate services provided by the suppliers into the specified marketing or business consulting solutions to its customers. Thus, the Group recognizes revenue as a principal in the gross amount of consideration to which it is entitled in exchange for the specified services transferred. Although a bundle of services are provided to the customers in each of the three services mentioned above, the Group’s overall commitment in such contract arrangement is to transfer a combined item at a fixed fee, which is an integrated marketing or business consulting solution, to which the individual services are inputs. The integrated services are customized for the customers, and they are interdependent and interrelated. Therefore, the Group combines such bundles of services in the contracts into a single performance obligation. Most of the offline events are completed within several days, and most of the contracts of integrated marketing solution and business consulting are completed within one year. The revenues are recognized ratably over the duration of such events and activities. 2. Significant Accounting Policies (Continued) (n) Revenue recognition (Continued) (iv) Advertisement agent services Starting from 2021, the Group as an agent coordinates and procures the third-party advertisement resources on behalf of its customers based on the purchase orders from the customers including the content, form, time and media platform of the advertisement. The Group considers itself as an agent for these services because the Group does not control the advertisement services provided to the customer which is evidenced by 1) the Group does not obtain control of the purchased advertisement services prior to its transfer to the customer; 2) the Group does not have the power to determine the specific advertisement services, which are all executed based on the instructions from the customers; 3) the Group cannot sell the purchased advertisement resources to parties other than the customers; 4) the Group does not integrate purchased advertisement services with the Group’s other services and then provide them to the customer; and 5) the Group has limited pricing latitude for the services provided. Therefore, the Group recognize the revenues at a net basis. Acting as an agent, in addition to help procuring the advertising resources for the customers, the Group also pays on behalf of customer for the advertising resources procured, i.e., provides financing to the customer. The interest income from the financing is recognized as revenue over the period that the Group pays on behalf of the customer as it is part of the Group’s normal business. The related cash flows for financing are presented as investing activities in the consolidated statements of cash flows. III. Subscription services (i) Institutional investor and enterprise subscription services The Group offers institutional investor and enterprise subscription services. The subscription service package to institutional investors and to New Economy enterprises include creating their yellow pages on the 36Kr Platform, publishing articles about the customers on the 36Kr Platform, priority access to 36Kr’s online and offline activities, etc. For enterprise subscribers the Group also offers online courses and one-on-one consulting. The Group offers such subscription benefits for a fixed period subscription fee. Both the institutional investor and enterprise subscription services involve multiple performance obligations. The Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where standalone selling price is not directly observable, the best estimate of the standalone selling price takes into consideration of the pricing of advertisings or enterprise value-added services of the Group with similar characteristics and advertisements or services with similar formats and quoted prices from competitors and other market conditions. For most of such contracts, performance obligations are completed within one year. The revenue is recognized over the period when such services are delivered or when the services are rendered based on the transaction price allocated to each performance obligation. (ii) Individual subscription services The Group provides paid columns, online courses and offline trainings services to its individual subscribers. The revenue of paid columns and online courses generated from the individual subscription services for the years ended December 31, 2020, 2021 and 2022 were not significant. The revenue of paid columns and online courses are derived from providing fee-based online content to individuals on the 36Kr Platform. The revenues generated from paid columns and online courses are recognized evenly over the economic period that individual subscribers can benefit, which is usually less than one year. The Group also provides offline training services, which is organized |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The accounting standards that the Group adopted beginning January 1, 2022 did not have a significant impact on the Group’s consolidated financial statements. |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Dec. 31, 2022 | |
Concentrations and Risks | |
Concentrations and Risks | 4. Concentrations and Risks (a) Concentration of customers and suppliers Customers accounting for more than 10% of the Group’s total revenues for the years ended December 31, 2020, 2021 and 2022 and more than 10% of the Group’s accounts receivable, net as of December 31, 2021 and 2022 were as follows: For the year ended December 31, Revenues 2020 2021 2022 Customer A * * 17 % Customer B 32 % * * Customer C * * 12 % As of December 31, Accounts receivable 2021 2022 Customer B 55 % 67 % Suppliers accounting for more than 10% of the Group’s total costs and expenses for the years ended December 31, 2020, 2021 and 2022 were as follows: For the year ended December 31, Costs and expenses 2020 2021 2022 Supplier D 22 % * * * Less than 10% No supplier accounts for more than 10% of the Group’s accounts payable as of December 31, 2021 and 2022. (b) Credit risk The Group’s credit risk primarily arises from cash and cash equivalents, restricted cash, short-term investments, receivables due from its customers, related parties and other parties. The maximum exposure of such assets to credit risk is the assets’ carrying amounts as of the balance sheet dates. The Group expects that there is no significant credit risk associated with cash and cash equivalents and short-term investments which were held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries, VIE and the subsidiaries of the VIE are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group believes that there is no significant credit risk associated with amounts due from related parties. Receivables due from customers are typically unsecured in the PRC and the credit risk with respect to which is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. 4. Concentrations and Risks (Continued) (b) Credit risk (Continued) Banks accounting for more than 10% of the Group’s cash and cash equivalents and short-term investments as of December 31, 2021 and 2022 were as follows: For the year ended December 31 Cash & cash equivalents, restricted cash and short-term investments 2021 2022 Bank E 81 % 74 % Bank F 16 % 25 % (c) Foreign currency risk The Group’s operating transactions are mainly denominated in RMB, which is not freely convertible into foreign currencies. The value of the RMB is subject to changes by the central government policies and to international economic and political development. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to effect the remittance. (d) PRC regulations The Group is required to obtain certain licenses to operate the Internet information services including Internet news information license, Internet audio-visual program transmission license, Internet publishing license and value-added telecommunication license. Online culture operating permit and production and operation of radio and television programs license may also be required by the relevant authorities due to the uncertainties of the interpretation of the related laws and regulations. Without these licenses, the PRC government may order the Group to cease its services, which may cause disruption to the Group’s business operations. As of the date of the report, the Group has obtained the value-added telecommunication license, online culture operating license and production and operation of radio and television programs license by the relevant authorities and is in the process of applying for other licenses and permits for the certain operations of the businesses. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, net | |
Accounts Receivable, net | 5. Accounts Receivable, net Accounts receivable, net consists of the following: December 31, December 31, 2021 2022 RMB’000 RMB’000 Accounts receivable 302,200 280,911 Less: allowance for credit losses (122,039) (83,383) Accounts receivable, net 180,161 197,528 Accounts receivable are generally non-interest bearing and are on terms between 90 to 270 days. In some cases, these terms are extended for certain qualifying long-term customers who have met specific credit requirements. As of December 31, 2022, accounts receivable amounted to RMB 158.1 million has been derived from providing financing to the customer in connection with the advertisement agent services that mentioned in Note 2 (n)(II)(iv), such accounts receivable amounted to RMB 129.4 million as of December 31, 2021. There were no such accounts receivable as of December 31, 2020. The movements in the allowance for credit losses are as follows: For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Balance at beginning of the year (11,413) (124,204) (122,039) Reversal/(addition) of allowance for credit losses, net (125,563) (8,681) 30,192 Write-offs 12,772 10,846 8,464 Balance at end of the year (124,204) (122,039) (83,383) The reversal/(addition) of allowance for credit losses, net was mainly due to improved collection of accounts receivable amounted to RMB33.3 million. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 6. Prepayments and Other Current Assets Prepayments and other current assets consist of the following: December 31, December 31, 2021 2022 RMB’000 RMB’000 Deposits 5,758 5,792 Prepayments of IT services 907 1,318 Prepayments of procurement costs 32,842 8,061 Others 3,105 988 Total 42,612 16,159 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net | |
Property and Equipment, net | 7. Property and Equipment, net Property and equipment, net consists of the following: December 31, December 31, 2021 2022 RMB’000 RMB’000 Electronic equipment and computers 17,532 5,312 Office furniture and equipment 2,725 2,943 Leasehold improvement 4,971 5,032 Total 25,228 13,287 Less: accumulated depreciation (14,082) (10,859) Less: impairment (7,987) — Property and equipment, net 3,159 2,428 Depreciation expenses were RMB 5.55 million, RMB 2.56 million and RMB 1.77 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments. | |
Long-term investments | 8. Long-term investments The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and investments accounted for at fair value. December 31, December 31, 2021 2022 RMB’000 RMB’000 Equity investments accounted for using the measurement alternative 30,000 58,464 Equity investments accounted for using the equity method 11,442 12,423 Investments accounted for at fair value — 66,470 Total 41,442 137,357 Equity investments using the measurement alternative The Group’s investment in private companies without readily determinable fair value were accounted for using the measurement alternative method. Nil and RMB18.5 million re-measurement gain of equity investments accounted for using the measurement alternative were recognized in “Long-term investment income/(loss), net” for the years ended December 31, 2021 and 2022, respectively. No impairment losses of equity investments accounted for using the measurement alternative were recognized for the years ended December 31, 2021 and 2022. (i)In March 2021, the Group and three other investors entered into an investment agreement with Beijing Sharetimes Technology Co., Ltd.(“Sharetimes”), which primarily engages in operating of virtual intellectual property license of a series of cartoon images of movie stars. Pursuant to this agreement, the Group acquired 1.64% equity interests in Sharetimes, with a consideration of RMB 30.0 million. The Group has no significant influence over Sharetimes. Pursuant to ASC 321-10-35-2, as the investment in Sharetimes lacks readily determinable fair values, the Group elects to account for this investment using the measurement alternative. In May 2022, a re-measurement gain amounted to RMB 18.5 million has been made to the investment in Sharetimes according to the most recent transaction price which were deemed as observable price changes in orderly transactions for the identical or similar investment of the same issuer. As of December 31, 2021 and 2022, the carrying value of the equity investment in Sharetimes was RMB 30.0 million and 48.5 million, respectively. 8. Long-term investments (Continued) Equity investments using the equity method RMB23.5 million loss, RMB5.5 million loss and RMB0.1 million income of the Group’s proportionate share of equity investee’s net (loss)/income, was recognized in “Share of income/(loss) from equity method investments” for the years ended December 31, 2020, 2021 and 2022, respectively. Investments accounted for at fair value The Group invested in the preferred shares of multiple private companies that provide the Group with redemption rights, the investment of which are accounted for at fair value. A loss of RMB2.5 million resulted from the change in fair value was recognized in “Long-term investment income/(loss), net” for the year ended December 31, 2022. In March 2022, the Group acquired 7.273% equity interest in Hangzhou Jialin Information Technology Co., Ltd. (“Hangzhou Jialin”), as one of the investors in its round B financing. Hangzhou Jialin is a fresh produce supply chain solution provider in China. In connection with the transaction, the Company has transferred its 100% equity interest in Beijing Dianqier Creative Interactive Media Culture Co., Ltd. (“Dianqier”), a subsidiary of the Company which primarily provides interactive marketing dispense services, as consideration for the acquired 7.273% equity interest in Hangzhou Jialin. The fair value of equity interests of Hangzhou Jialin the Group acquired is RMB 40 million. The Group recognized a gain amounted to RMB 38 million arising from disposal of Dianqier. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Taxes Payable | 9. Taxes Payable The following is a summary of taxes payable as of December 31, 2021 and 2022: December 31, December 31, 2021 2022 RMB’000 RMB’000 VAT payable 12,060 9,787 Enterprise income taxes payable 80 274 Withholding individual income taxes for employees 121 88 Others 575 725 Total 12,836 10,874 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities and Other Payables | |
Accrued Liabilities and Other Payables | 10. Accrued Liabilities and Other Payables The following is a summary of accrued liabilities and other payables as of December 31, 2021 and 2022: December 31, December 31, 2021 2022 RMB’000 RMB’000 Accrued professional fees 11,438 10,552 Accrued promotion fees 350 10,829 Accrued office rental expense 177 769 Accrued employee welfare expense, meal and travel expense 1,579 362 Guarantee deposits 330 280 Withholding employees' social insurance and housing fund 1,140 1,289 Others 2,487 3,525 Total 17,501 27,606 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 11. Leases The Group has office space under non-cancelable operating lease agreements. A summary of supplemental information related to operating leases as of December 31, 2021 and 2022 are as follows: December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Operating lease right-of-use asset 13,818 30,911 Operating lease liabilities-current (16,302) (31,293) Operating lease liabilities-non-current (586) (15,093) Total operating lease liabilities (16,888) (46,386) Weighted average remaining lease term 1.09 years 1.34 years Weighted average discount rate 4.75 % 4.75 % A summary of lease cost recognized in the Group’s consolidated statements of comprehensive income/(loss) are as follows: December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Other information Operating lease cost 15,481 14,948 Short-term lease cost 572 941 Total 16,053 15,889 A summary of supplemental cash flow information related to leases are as follows: December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Cash payments for operating leases 12,604 1,201 Right-of-use assets obtained in exchange for lease obligations 1,971 30,699 11. Leases (Continued) A summary of maturity of operating lease liabilities under the Group’s non-cancelable operating leases as of December 31, 2022 is as follows: December 31, 2022 RMB‘000 2023 31,748 2024 15,464 2025 598 Total lease payment 47,810 Less: interest 1,424 Present value of operating lease liabilities 46,386 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares. | |
Ordinary Shares | 12. Ordinary Shares In December 2018, the Company was incorporated as a limited liability company with authorized share capital of US$50,000 divided into 500,000,000 shares with par value US$0.0001 each. One ordinary share was issued upon inception. There were 907,346,745 and 96,082,700 Class A and Class B ordinary shares issued, respectively, as of December 31, 2021, and 876,278,170 Class A (excluding 17,428,425 Class A ordinary shares issued to the depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise of awards granted under the 2019 Incentive Plan) and 96,082,700 Class B ordinary shares outstanding, respectively, as of December 31, 2021. There were 907,346,745 and 96,082,700 Class A and Class B ordinary shares issued, respectively, as of December 31, 2022, and 878,385,770 Class A (excluding 17,428,425 Class A ordinary shares issued to the depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise of awards granted under the 2019 Incentive Plan) and 96,082,700 Class B ordinary shares outstanding, respectively, as of December 31, 2022. In addition, the outstanding ordinary shares included 36,281,400, 27,507,989 and 27,507,989 share options under the 2019 incentive plan as of December 31, 2020, 2021 and 2022, which were deemed as ordinary shares from accounting’s perspective as they were granted on September 7, 2019 to replace vested restricted share units of the same amount under the 2014 and 2016 incentive plan, and those vested restricted share units had been deemed as ordinary shares previously. The details are set forth in Note 15 Share-based Compensation. |
Share repurchase program
Share repurchase program | 12 Months Ended |
Dec. 31, 2022 | |
Share repurchase program | |
Share repurchase program | 13. Share repurchase program On May 6, 2020, the Group announced its share repurchase program under which the Group may repurchase up to a total of 1,000,000 of its ADSs, each representing 25 Class A Ordinary Shares. For the year ended December 31, 2020, the Group repurchased 519,845 ADSs or 12,996,125 ordinary shares for total consideration amounted to US$1.7 million (RMB11.7 million) on the open market, at a weighted average price of US$3.3 per ADS. For the year ended December 31, 2021, the Group repurchased 265,868 ADSs or 6,646,700 ordinary shares for total consideration amounted to US$ 0.9 million (RMB5.8 million) on the open market, at a weighted average price of US$ 3.3 per ADS. The Group accounts for the repurchased ordinary shares under the cost method and includes such treasury stock as a component of shareholders’ equity. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 14. Income Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. British Virgin Islands (“BVI”) Subsidiaries in the BVI are exempted from income tax on their foreign-derived income in the BVI. There are no withholding taxes in the BVI. Hong Kong Entities incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong before April 1, 2018. Starting from the financial year commencing on April 1, 2018, a two-tiered profits tax regime took effect, under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million. The PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. Beijing Duoke is recognized as “High-New Technology Enterprise” (“HNTE”) and is eligible for a 15% preferential tax rate effective from July 31, 2020 through July 31, 2023, upon the completion of its filings with the relevant tax authorities. The qualification as an HNTE is subject to annual evaluation and a three-year review by the relevant authorities in China. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. The tax years ended December 31, 2018 through 2022 for the Company’s PRC subsidiaries and VIEs remain subject to examination by the PRC tax authorities. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. The Company may also be subject to the examination of the tax filings in other jurisdictions, which are not material to the consolidated financial statements. There were no ongoing examinations by tax authorities as of December 31, 2022. Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2020, 2021 and 2022: For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Current income tax expense 373 155 361 Deferred taxation 3,391 (53) — Total 3,764 102 361 14. Income Taxes (Continued) Reconciliation of the differences between statutory income tax rate and the effective income tax rate for the years ended December 31, 2020, 2021 and 2022 are as below: For the year ended December 31, 2020 2021 2022 % % % Statutory EIT rate 25.00 25.00 25.00 Effect of non-deductible expenses (1) (5.78) (6.60) 16.97 Tax incentives for research and development expense (2) 2.08 9.00 (49.14) Tax incentives for wages of disabled staff 0.02 0.05 (0.16) Preferential tax rate 1.15 0.48 (4.20) Change in valuation allowance (23.19) (25.55) 2.52 Tax rate difference from statutory rate in other jurisdictions (0.72) (2.49) 10.44 Others 0.07 — — Effective income tax rate (1.37) (0.11) 1.43 (1) Primarily comprised of share-based compensation expenses which are permanent differences. (2) According to policies promulgated by the State Tax Bureau of the PRC, certain of the Group’s subsidiaries are entitled to tax incentives for research and development expenses at 175% of tax-deductible research and development expenses in 2020, 2021 and January 1, 2022 to September 30, 2022. Under Chinese mainland regulations issued in September 2022 that were applicable from October 1, 2022 to December 31, 2022, certain of the Group’s subsidiaries are entitled to tax incentives for research and development expenses at 200% of tax-deductible research and development expenses. Composition of deferred tax assets and liabilities Deferred taxes arising from PRC subsidiaries, the VIE and the VIE’s subsidiaries were measured using the enacted tax rates for the periods in which they are expected to be reversed. The Group’s deferred tax assets and liabilities consist of the following components: December 31, December 31, 2021 2022 RMB’000 RMB’000 Deferred tax assets - non‑current: —Net operating tax losses carry forwards 46,031 51,541 —Allowances of doubtful accounts 18,702 12,564 —Investment loss — 375 —Property and equipment impairment 1,997 — —Others 299 — Total deferred tax assets 67,029 64,480 Less: valuation allowance (67,029) (61,617) Total deferred tax assets, net — 2,863 Deferred tax liabilities - non‑current: — Unrealized investment gain — (2,863) Total deferred tax liabilities — (2,863) A valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, retained earnings, existence of taxable temporary differences and reversal periods. 14. Income Taxes (Continued) As of December 31, 2022, the Group has incurred accumulated tax losses of RMB 298 million, increased from RMB 234 million as of December 31, 2021. The tax losses of the Group expire over different times intervals depending on local jurisdiction. As Beijing Duoke is recognized as HNTE, according to tax legislation released in 2018, the expiration year for tax losses has been extended from five years to ten years. Of these net tax losses carryforwards, RMB 1 million, RMB 55 million, RMB 55 million and RMB 187 million will expire in 2024, 2025, 2026 and after 2026, respectively, if not utilized. As of December 31, 2022, the Group has provided valuation allowance for the deferred tax assets amounted to RMB 62 million as the Group believes that it is more likely than not that such net accumulated tax losses and deductible temporary differences will not be utilized in the future. Withholding income tax The EIT Law imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous EIT Law. The Cayman Islands, where the Company is incorporated, does not have such a tax treaty with China. According to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate that may be lowered to 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The State Administration of Taxation (“SAT”) further promulgated Circular [2009] 601 and SAT Public Notice [2018] No.9 regarding the assessment criteria on beneficial owner status. The Group did not record any dividend withholding tax, as the Group’s FIE, the WFOE, has no retained earnings in any of the periods presented. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation | |
Share-based Compensation | 15. Share-based Compensation 2019 Incentive Plan In September 2019, the Company adopted a share incentive plan (“2019 Incentive Plan”). The 2019 Incentive Plan permits the awards of options and the maximum aggregate number of ordinary shares which may be issued pursuant to all awards is 137,186,000. 91,548,120 restricted share units including both vested and unvested restricted share units under the 2014 and 2016 incentive plan adopted by the Group before the Reorganization set forth in Note 1 (b) were cancelled concurrently upon the adoption of the 2019 Incentive Plan, and each participant of the 2014 and 2016 incentive plan is expected to receive corresponding grants with similar terms except for the exercise price of US$ 0.0001 and the performance condition added as disclosed below under the 2019 Incentive Plan. The cancellation of the 2014 and 2016 incentive plans accompanied by the grant of a replacement award under 2019 Incentive Plan is accounted for as a modification of the terms of the cancelled award. Refer to Note 2 (s) for the accounting policy for such modification. The incremental value for the modification was nil. Under the 2019 Incentive Plan, the Company granted 5,125,000, 32,765,413 and 3,167,881 share options for the years ended December 31, 2020, 2021 and 2022, respectively, to certain directors and senior management. In June 2021, the Company amended 2019 Incentive Plan with the approval of the board of directors, pursuant to which the maximum aggregate number of ordinary shares which may be issued under the updated 2019 Share Incentive Plan is 162,186,000. Options granted to employees under the updated 2019 Incentive Plan were subject to both service condition and performance condition with various vesting schedules ranging from immediate to 4 years, and will be expired in ten years. For the share options with performance condition, an evaluation is made each quarter as to the likelihood of performance condition being met. 15. Share-based Compensation (Continued) The Company uses binomial option pricing model to determine the fair value of share options with the assistance of an independent third party valuation firm. The estimated fair value of each share option granted is estimated with the following assumptions: For the year ended December 31, 2020 2021 2022 Expected volatility 50.22 % 49.29%-50.47 % 51.97 % Expected dividend yield — — — Contractual term (in year) 10 10 10 Risk-free interest rate 1.66 % 1.38%-1.45 % 3.57 % The expected volatility at grant date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the share options. The Company has never declared or paid any cash dividends on its capital stock, and the Company does not anticipate any dividend payments in the foreseeable future. The contractual term is the contract life of the share options. The Company estimated the risk-free interest rate based on the yield to maturity of U.S. treasury bonds denominated in US$ at the share option grant date. The following table presents a summary of the Group’s share options activities for the years ended December 31, 2020, 2021 and 2022: Weighted Weighted average average exercise Aggregate intrinsic remaining Number of price US$ per value contractual shares share US$ years Outstanding at December 31, 2019 126,402,925 0.0001 37,352,064 9.68 Granted during the year 5,125,000 0.0001 — — Exercised during the year (36,613,500) 0.0001 — — Forfeited / Cancelled during the year (6,674,341) 0.0001 — — Outstanding at December 31, 2020 88,240,084 0.0001 9,847,593 8.77 Granted during the year 32,765,413 0.0001 — — Exercised during the year (18,031,675) 0.0001 — — Forfeited / Cancelled during the year (8,143,392) 0.0001 — — Outstanding at December 31, 2021 94,830,430 0.0001 4,324,268 8.44 Granted during the year 3,167,881 0.0001 — — Exercised during the year (2,107,600) 0.0001 — — Forfeited during the year (1,861,733) 0.0001 — — Outstanding at December 31, 2022 94,028,978 0.0001 3,881,516 7.53 Exercisable at December 31, 2022 64,686,080 15. Share-based Compensation (Continued) The weighted average grant date fair value of share options granted for the years ended December 31, 2020, 2021 and 2022 were RMB 0.78, RMB 0.54 and RMB 0.26, respectively. For the years ended December 31, 2020, 2021 and 2022, total share-based compensation expenses recognized for share options granted were RMB 39.28 million, RMB 15.02 million and RMB 12.38 million, respectively. 36,613,500, 18,031,675 and 2,107,600 share options granted were exercised for the years ended December 31, 2020, 2021 and 2022, respectively. As mentioned above, certain vested restricted share units under the 2014 and 2016 incentive plans have been replaced by the same amount of share options (“Replacement Share Options”) granted on September 7, 2019 under the 2019 Incentive Plan, which were vested immediately upon the grant. Before the modification, those vested restricted share units were deemed as ordinary shares from the accounting’s perspective. As a result, the corresponding Replacement Share Options were continuously deemed as ordinary shares in the consolidated statements of changes in shareholders’ equity, as they had no vesting conditions or contingencies upon the grant and were issuable for little to no consideration. Options subsequently granted under the 2019 Incentive Plan, regardless vested or not, were viewed as options until they are exercised. Among the 18,031,675 and 2,107,600 share options legally exercised in 2021 and 2022, there were 7,475,213 and nil shares Replacement Share Options included. As of December 31, 2022, the unrecognized share-based compensation expense related to unvested share options granted was RMB 9.27 million. Total unrecognized share-based compensation expenses is expected to be recognized over a weighted average period of 0.92 years. The aggregate number of Class A ordinary shares available for future grant under the 2019 Incentive Plan was 11,404,247 as of December 31, 2022. |
Basic and Diluted Net Income_(L
Basic and Diluted Net Income/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Net Income/(Loss) Per Share | |
Basic and Diluted Net Income/(Loss) Per Share | 16. Basic and Diluted Net Income/(Loss) Per Share Basic and diluted net income/(loss) per share for the years ended December 31, 2020, 2021 and 2022 have been calculated in accordance with ASC 260 as follows: For the years ended December 31, 2020 2021 2022 Net income/(loss) per ordinary share – basic: Numerator (RMB’000): Net income/(loss) attributable to 36Kr Holdings Inc. (279,342) (90,609) 22,637 Net loss/(income) attributable to non-controlling interests (889) 1,038 (694) Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic (280,231) (89,571) 21,943 Denominator: Weighted average number of ordinary shares outstanding 1,019,316,944 1,025,068,349 1,034,547,219 Denominator used in computing net income/(loss) per share - basic 1,019,316,944 1,025,068,349 1,034,547,219 Net income/(loss) per ordinary share: - basic (RMB) (0.275) (0.087) 0.021 Net income/(loss) per ordinary share - diluted: Numerator (RMB’000): Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic (280,231) (89,571) 21,943 Net income/(loss) attributable to ordinary shareholders - diluted (280,231) (89,571) 21,943 Denominator: Denominator used in computing net income/(loss) per share - basic 1,019,316,944 1,025,068,349 1,034,547,219 Denominator used in computing net income/(loss) per share - diluted 1,019,316,944 1,025,068,349 1,034,547,219 Net loss per ordinary share – diluted (RMB) (0.275) (0.087) 0.021 Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the year. Diluted net loss per share is computed using the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the year. For the years ended December 31, 2020, 2021 and 2022, there are no anti-dilutive effects that should be excluded from the computation of diluted loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 17. Commitments and Contingencies (a) Commitments Operating lease commitments The Group leases offices and fulfillment infrastructures under non-cancelable operating lease agreements. Future minimum lease payments under these non-cancelable operating lease agreements with initial terms longer than twelve months are disclosed as maturity of lease liabilities in Note 11. Capital and other commitments The Group did not have material capital and other commitments as of December 31, 2022. 17. Commitments and Contingencies (Continued) (b) Litigation In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. As of December 31, 2022, the Group is not a party to any legal or administrative proceedings, which the Group expects would have a material adverse effect on the Group’s business, financial position, results of operations and cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 18. Related Party Transactions In 2020, 2021 and 2022, the Group earned revenue for providing advertising and enterprise value-added services to Jiangsu Jingzhun amounted to approximately RMB 0.8 million, RMB 1.7 million and nil, respectively. As of December 31, 2021 and 2022, the amount due from Jiangsu Jingzhun were RMB 1.3 million and RMB 1.3 million, respectively. In 2021 and 2022, interest income amounted to approximately RMB 47 thousand and RMB 3 thousand were generated from Shanghai Xuanke for offering the short-term loan amounted to RMB 2.0 million. As of December 31, 2021, the amount due from Shanghai Xuanke for short-term loan was RMB 2.0 million, which was repaid in January and February 2022. In 2021 and 2022, the Group purchased video production services from Shanghai Xuanke amounted to RMB 1.1 million and RMB 0.3 million, respectively. As of December 31, 2021 and 2022, the amount due to Shanghai Xuanke were RMB 1.2 million and RMB 20 thousand, respectively. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets | |
Restricted Net Assets | 19. Restricted Net Assets The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries and VIE incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries. In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. See Note 2 (aa) for more detailed information. As a result of these PRC laws and regulations that require annual appropriations of 10% of net after-tax profits to be set aside prior to payment of dividends as general reserve fund or statutory surplus fund, the Group’s PRC subsidiaries, the VIE and the VIE’s subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which the restricted portion amounted to approximately RMB 134.03 million and RMB 161.68 million as of December 31, 2021 and 2022, respectively. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to the Company’s shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Company’s subsidiaries, the VIE and the subsidiaries of the VIE to satisfy any obligations of the Company. The Company performed a test on the restricted net assets of its consolidated subsidiaries and VIE (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose its condensed financial information for the year ended December 31, 2020, 2021 and 2022. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Event. | |
Subsequent Event | 20. Subsequent Event Investment in Beijing Che Mai Technology Co., Ltd. (“Che Mai”) In February 2023, the Group made an investment in Che Mai, which primarily engages in providing marketing and renting solutions for new energy cars. Pursuant to the investment agreement, the Group subscribed 332,507 newly issued ordinary shares with total consideration of RMB 3.0 million, which was paid on February 17, 2023. After the subscription, the Group owned 3% equity interests in Che Mai. The Group has no significant influence over Che Mai. The investment was recorded using measurement alternative defined as cost, less impairment plus or minus subsequent adjustment for the observable price changes in orderly transactions for the identical or similar investment of the same issuer. |
Condensed Financial Information
Condensed Financial Information of the Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information of the Company | |
Condensed Financial Information of the Company | 21. Condensed Financial Information of the Company The condensed financial information of the Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, VIE and VIE’s subsidiaries. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Group. 21. Condensed Financial Information of the Company (Continued) The Company did not have significant capital and other commitments or guarantees as of December 31, 2022. Condensed Balance Sheet December 31, December 31, 2021 2022 RMB’000 RMB’000 Current assets: Cash and cash equivalents 31,833 23,365 Amount due from inter-company entities 468 515 Receivables due from related parties 10 52 Prepayments and other current assets 180 107 Non-current assets: Investments in subsidiaries, VIE and subsidiaries of VIE 285,624 333,418 318,115 357,457 Total assets Current liabilities: Amount due to inter-company entities 14,463 16,149 Accrued liabilities and other payables 4,247 3,202 Total liabilities 18,710 19,351 Commitments and Contingencies (Note 17) Shareholders' equity : Class A ordinary shares (US$0.0001 par value per share; 4,903,917,300 shares authorized, 907,346,745 shares issued and 893,706,595 shares outstanding as of December 31, 2021; 4,903,917,300 shares authorized, 907,346,745 shares issued and 895,814,195 shares outstanding as of December 31, 2022) 628 628 Class B ordinary shares (US$0.0001 par value per share; 96,082,700 shares authorized, 96,082,700 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 66 66 Additional paid-in capital 2,049,448 2,061,491 Treasury stock (US$ 0.0001 par value; 16,201,618 shares and 14,094,018 shares as of December 31, 2021 and 2022, respectively) (13,598) (12,010) Accumulated deficit (1,728,152) (1,706,209) Accumulated other comprehensive loss (8,987) (5,860) Total 36Kr Holdings Inc.'s shareholders’ equity 299,405 338,106 Total liabilities and shareholders’ equity 318,115 357,457 21. Condensed Financial Information of the Company (Continued) Condensed Statement of Operations and Comprehensive Income/(Loss) For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Operating expenses: Sales and marketing expenses (55) (282) — General and administrative expenses (9,439) (9,269) (11,602) Total operating expenses (9,494) (9,551) (11,602) Loss from operations (9,494) (9,551) (11,602) Other income/(expenses): Share of income/(loss) from subsidiaries, VIE and subsidiaries of VIE (272,297) (80,559) 31,888 Interest income 983 64 368 Interest expense (14) (70) (189) Others, net 591 545 1,478 Income/(loss) before income tax (280,231) (89,571) 21,943 Income tax expenses — — — Net income/(loss) (280,231) (89,571) 21,943 Net income/(loss) attributable to 36Kr Holdings Inc.’s ordinary shareholders (280,231) (89,571) 21,943 Condensed Statement of Cash Flows For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net cash used in operating activities (3,298) (9,857) (12,381) Net cash used in investing activities (77,536) — — Net cash provided by/(used in) financing activities (27,360) (5,773) — Effect of exchange rate changes on cash, and cash equivalents held in foreign currencies (2,334) (1,047) 3,913 Net increase/(decrease) in cash and cash equivalents (110,528) (16,677) (8,468) Cash and cash equivalents at beginning of the year 159,038 48,510 31,833 Cash and cash equivalents at end of the year 48,510 31,833 23,365 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the VIE’s subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore is the primary beneficiary of the entity. All significant intercompany transactions and balances between the Company, its subsidiaries, the VIE and subsidiaries of the VIE have been eliminated upon consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Group. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event which is not solely within the control of the Group, the non-controlling interest is classified as mezzanine equity. Consolidated net income/(loss) on the consolidated statements of comprehensive income/(loss) includes the net income/(loss) attributable to the non-controlling interests when applicable. For the years ended December 31, 2020, 2021 and 2022, the net income/(loss) attributable to the non-controlling interests were an income of RMB 0.89 million, a loss of RMB 1.04 million and an income of RMB 0.69 million, respectively. Cash flows related to transactions with non-controlling interests holders are presented under financing activities in the consolidated statements of cash flows when applicable. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of assessment for the allowance for credit loss, fair value of investments accounted for at fair value, impairment of long-term investments, impairment of long-lived assets, valuation allowance of deferred tax assets and valuation and recognition of share-based compensation expenses, Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation The Group’s reporting currency is Renminbi (‘‘RMB’’). The functional currency of the Company is United States dollar (‘‘US$’’). The functional currency of the Group’s PRC entities, the VIE and the VIE’s PRC subsidiaries is RMB. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters. Transactions denominated in foreign currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the transactions date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet dates. Exchange gains and losses arising from foreign currency transactions are recorded in the consolidated statements of comprehensive income/(loss). The financial statements of the Group’s non PRC entities are translated from their respective functional currencies into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulting foreign currency translation adjustments are reported in other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss), and the accumulated foreign currency translation adjustments are presented as a component of accumulated other comprehensive loss in the consolidated statements of changes in shareholders’ (deficit)/equity. Total foreign currency translation adjustments included in the Group’s other comprehensive income/(loss) were a net loss of RMB 4.84 million, a net loss of RMB 1.09 million and an income of RMB 3.13 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Fair value measurements | (e) Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: a. Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. b. Level 2—Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. c. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash equivalents, restricted cash, short term investments, accounts receivable, receivables due from related parties, other receivables, long-term investments, accounts payable, accrued liabilities and other payables, short-term bank loan and amounts due to related parties. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2021 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 119,140 — 119,140 As of December 31, 2022 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 42,270 — 42,270 Long-term investments- Fair value option 66,470 66,470 2. Significant Accounting Policies (Continued) (e) Fair value measurements (Continued) Recurring The Group’s short-term investments consisted of wealth management products which contain a variable interest rate. To estimate the fair value of short-term investments, the Group refers to the quoted rate of return provided by financial institutions at the end of each year/period. The Group classifies the valuation techniques that use these inputs as level 2 of fair value measurement. The Group applies fair value accounting to privately held investments classified as debt securities. The fair value of privately held investments classified as debt securities were determined using recent market transaction price (Level 2). For the investments made close to the period end, their initial investment amounts were deemed approximately equal to their fair value, except that the fair value of the investment in Shanghai Fanbo Biotechnology Co. (“Fanbo”) was estimated to be nil as of December 31, 2022 due to the significant liquidity difficulty Fanbo encountered. Non-Recurring For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value. The non-recurring fair value measurements of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. These non-recurring fair value measurements were measured as of the observable transaction dates. The Company classifies the valuation methodologies that require management to use the observable transaction price at the transaction date as Level 2 of fair value measurements Details of the fair value measurements of equity securities accounted for under the measurement alternative is set out in Note 8 Long-term investments. When there is impairment of equity securities accounted for under the measurement alternative and equity method investments, the non-recurring fair value measurements are measured at the date of impairment. There was no impairment recognized for the year ended 2020, 2021 and 2022. As of December 31, 2021 and 2022, the fair values of cash and cash equivalents, accounts receivable, receivables due from related parties, other receivables, accounts payable, accrued liabilities and other payables, short-term bank loan and amounts due to related parties approximated their carrying values reported in the consolidated balance sheets due to the short term maturities of these instruments. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents represent cash in banks and highly liquid investments placed with banks or other financial institutions, which are unrestricted to withdrawal or use, and which have original maturities of three months or less. |
Restricted cash | (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets, and is included in the total cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows. The Group’s restricted cash mainly represents cash at bank with restricted use. |
Short-term investments | (h) Short-term investments Short-term investments include investments in wealth management products issued by China Merchants Bank, which are redeemable by the Company at a periodic term or any working day within one year. The wealth management products are unsecured with variable interest rates and primarily invested in financial instruments with high credit rating and good liquidity in the interbank and exchange markets, including but not limited to debt securities issued by the PRC government, central bank bills, interbank and exchange-traded bond, and assets backed securities. The Company measures the short-term investments at fair value using the quoted subscription or redemption prices published by the bank or by discounting the future cash flows at the expected yield rate with reference to the expected benchmark yield rates of the wealth management products of the bank. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable is the Group’s right to consideration that is unconditional, and the right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. The carrying value of accounts receivable is reduced by an allowance that reflects the Group’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Accounts receivable is measured at amortized cost and reported on the consolidated balance sheets at the outstanding principals adjusted for any write-offs and any allowance for credit losses, since the Group adopted ASC 326 beginning from January 1, 2021. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on historical collection activity, current business environment and forecasts of future macroeconomic conditions that may affect the customers’ ability of payment. Expected credit losses In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses The Group adopted ASU 2016-13 beginning from January 1, 2021 on a modified retrospective basis and there was no material impact on the balance sheets and the consolidated statements of comprehensive income/(loss) as a result of adopting the new standard. |
Property and equipment, net | (j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful life Electronic equipment and computers 3 years Office furniture and equipment 3 years Leasehold improvement Lesser of the term of the lease or the estimated useful lives of the leasehold improvement Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment is capitalized as addition to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income/(loss). |
Goodwill | (k) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries and consolidated VIE. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. The guidance provides the option that the Group may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. On January 1, 2020, the Group adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment to simplify the test for goodwill impairment by removing Step 2, which was issued by the FASB in January 2017. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step 2 to measure the impairment loss. Based on the impairment assessment, management determined that the goodwill amounted to RMB 1.4 million has been fully impaired as of December 31, 2020. |
Impairment of long-lived assets | (l) Impairment of long-lived assets The Group evaluates its long-lived assets with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value based on a discounted cash flow approach or, when available and appropriate, over comparable market values. |
Long-term investments | (m) Long-term investments The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and investments accounted for at fair value. Equity investments accounted for using the measurement alternative Investments in entities in which the Group does not have significant influence and without readily determinable fair value are accounted for using the measurement alternative of accounting in accordance with ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The Group records its share of measurement alternative investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes in orderly transactions for the identical or similar investment of the same issuer. The subsequent adjustments are recognized as “Long-term investment income/(loss), net” in the consolidated statements of comprehensive income/(loss). The Group regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equals to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method Investments in entities in which the Group can exercise significant influence but does not control or own a majority equity interest are accounted for using the equity method of accounting in accordance with ASC Topic 323 Investments-Equity Method and Joint Ventures. The Group adjusts the carrying amount of equity method investments for its share of the income or losses of the investee and reports the recognized income or losses as “Share of income/(loss) from equity method investments” in the consolidated statements of comprehensive income/(loss). The Group’s share of the income or losses of an investee are based on the shares of common stock and in-substance common stock held by the Group. The Group records its share of the results of equity investments in 36Kr Global Holding (HK) Limited (“36Kr Global Holding”) and Shanghai Xuanke Technology Co., Ltd.(“Shanghai Xuanke”) on a one quarter in arrears basis. The Group continuously reviews its investment in equity investees under equity method to determine whether a decline in fair value to below the carrying value is other-than-temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value, the financial condition, operating performance and the prospects of the equity investee, and other company specific information such as recent financing rounds. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. No impairment losses of long-term investments were recognized for the years ended December 31, 2020, 2021 and 2022. Investments accounted for at fair value For investments in preferred shares that provide the Group redemption rights, the Group elected the fair value option in accordance with ASC Topic 825. The investments accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded on consolidated statements of comprehensive income/(loss) as “Long-term investment income/(loss), net”. |
Revenue recognition | (n) Revenue recognition According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group determines revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price, including the constraint on variable consideration; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when (or as) the Group satisfy a performance obligation. The following is a description of the accounting policy for the principal revenue streams of the Group. I. Online advertising services Online advertising revenue is derived principally from advertising contracts with customers, which allow advertisers to place advertisements on agreed areas of the Company’s PC website, mobile application and official accounts in other social networks including but not limited to Weibo, Weixin/WeChat, Toutiao and Bilibili (collectively referred to as “36Kr Platforms”) in different formats and over a particular period of time. The Group displays advertisement provided by customers in a variety of forms such as full screen display, banners, pop-ups, as well as advertorials and short-form videos. The Group also helps produce advertisements based on the customers’ requests, and post the advertisements on the 36Kr Platforms to help promote customers’ products and enhance their brand awareness. The Group has developed capabilities in generating and distributing its own and third-party high-quality content on 36Kr Platforms, there is no third party content for fulfilling a promise to the customers for the years ended December 31, 2020, 2021 and 2022. The Group generates its online advertising service revenue primarily (i) at a fixed fee per each day’s advertisement display, which is known as the Cost Per Day (“CPD”) model, and (ii) at a fixed fee per each advertisement posted on the 36Kr Platforms, which the Group refers as the cost-per-advertisement basis. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting discounts and net of value-added tax (“VAT”) under ASC 606. The Group’s online advertising contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. 2. Significant Accounting Policies (Continued) (n) Revenue recognition (Continued) Under the CPD model, a contract is signed to establish a fixed price for the advertising services to be provided over a period of time. Given the advertisers benefit from the advertising evenly, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. Under the cost-per-advertisement model, as all the economic benefit enjoyed by the customer can be substantially realized at the time the advertisements are posted initially, the Group recognizes revenue at a point in time when it posts the advertisements initially. II. Enterprise value-added services The principal enterprise value-added services that the Group provides to customers are set out as follows: (i) Integrated marketing The Group provides one-stop media solutions to helps its customers develop tailored and diverse marketing strategies to improve their marketing efficiency. Integrated marketing services include providing end customers with marketing plan, marketing event organization and execution on third-party media platforms, and public relations, etc. The Group considers itself as the principal for this type of services as it is the primary obligor for such service, it has control over the services provided to the customers from market planning through service delivered since a) the Group is able to direct suppliers to deliver advertising services on its behalf based on the integrated marketing plan set by the Group including the content, form, time and media platform of the advertisement; b) the Group is obligated to fulfill the promise to provide the integrated marketing services to customers; c) the Group has the discretion in setting the prices for the services. Therefore, the Group recognize the revenues at a gross basis. (ii) Online/offline events The Group organizes offline and online diverse events, such as summits, forums, industry conferences and fan festivals in a bid to create brand-building opportunities and to facilitate business cooperation and investment opportunities. The services provided by the Group to the customer who then becomes a sponsor of such events including for the sponsor to participate as a speaker, to launch new products of the sponsor, to place advertisements at events and the 36Kr Platforms during the course of events. (iii) Consulting The Group provides customized market research and industry reports to established companies. In addition, the Group also helps the customers to organize and execute business events. In certain circumstances, the Group engages third party suppliers to perform part of the aforementioned services in fulfilling its contract obligation. In these cases, the Group controls and takes responsibilities for such services before the services are transferred to the customer. The Group has the right to direct the suppliers to perform the service and control the goods or assets transferred to its customers. In addition, the Group combines and integrates the separate services provided by the suppliers into the specified marketing or business consulting solutions to its customers. Thus, the Group recognizes revenue as a principal in the gross amount of consideration to which it is entitled in exchange for the specified services transferred. Although a bundle of services are provided to the customers in each of the three services mentioned above, the Group’s overall commitment in such contract arrangement is to transfer a combined item at a fixed fee, which is an integrated marketing or business consulting solution, to which the individual services are inputs. The integrated services are customized for the customers, and they are interdependent and interrelated. Therefore, the Group combines such bundles of services in the contracts into a single performance obligation. Most of the offline events are completed within several days, and most of the contracts of integrated marketing solution and business consulting are completed within one year. The revenues are recognized ratably over the duration of such events and activities. 2. Significant Accounting Policies (Continued) (n) Revenue recognition (Continued) (iv) Advertisement agent services Starting from 2021, the Group as an agent coordinates and procures the third-party advertisement resources on behalf of its customers based on the purchase orders from the customers including the content, form, time and media platform of the advertisement. The Group considers itself as an agent for these services because the Group does not control the advertisement services provided to the customer which is evidenced by 1) the Group does not obtain control of the purchased advertisement services prior to its transfer to the customer; 2) the Group does not have the power to determine the specific advertisement services, which are all executed based on the instructions from the customers; 3) the Group cannot sell the purchased advertisement resources to parties other than the customers; 4) the Group does not integrate purchased advertisement services with the Group’s other services and then provide them to the customer; and 5) the Group has limited pricing latitude for the services provided. Therefore, the Group recognize the revenues at a net basis. Acting as an agent, in addition to help procuring the advertising resources for the customers, the Group also pays on behalf of customer for the advertising resources procured, i.e., provides financing to the customer. The interest income from the financing is recognized as revenue over the period that the Group pays on behalf of the customer as it is part of the Group’s normal business. The related cash flows for financing are presented as investing activities in the consolidated statements of cash flows. III. Subscription services (i) Institutional investor and enterprise subscription services The Group offers institutional investor and enterprise subscription services. The subscription service package to institutional investors and to New Economy enterprises include creating their yellow pages on the 36Kr Platform, publishing articles about the customers on the 36Kr Platform, priority access to 36Kr’s online and offline activities, etc. For enterprise subscribers the Group also offers online courses and one-on-one consulting. The Group offers such subscription benefits for a fixed period subscription fee. Both the institutional investor and enterprise subscription services involve multiple performance obligations. The Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where standalone selling price is not directly observable, the best estimate of the standalone selling price takes into consideration of the pricing of advertisings or enterprise value-added services of the Group with similar characteristics and advertisements or services with similar formats and quoted prices from competitors and other market conditions. For most of such contracts, performance obligations are completed within one year. The revenue is recognized over the period when such services are delivered or when the services are rendered based on the transaction price allocated to each performance obligation. (ii) Individual subscription services The Group provides paid columns, online courses and offline trainings services to its individual subscribers. The revenue of paid columns and online courses generated from the individual subscription services for the years ended December 31, 2020, 2021 and 2022 were not significant. The revenue of paid columns and online courses are derived from providing fee-based online content to individuals on the 36Kr Platform. The revenues generated from paid columns and online courses are recognized evenly over the economic period that individual subscribers can benefit, which is usually less than one year. The Group also provides offline training services, which is organized by the Group, and the Group is responsible for delivering the training to the individual subscribers and has primary responsibility and broad discretion to establish price. Therefore, the Group is considered the primary obligor in these transactions and recognize the revenues at a gross basis. In the following table, the total revenue is disaggregated by the major service lines mentioned above. 2. Significant Accounting Policies (Continued) (n) Revenue recognition (Continued) III. Subscription services (Continued) For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Online advertising services 172,811 214,722 221,620 Enterprise value ‑ added services Integrated marketing 133,599 1,342 6,639 Online/offline events 26,992 32,127 15,475 Consulting 32,622 36,867 43,200 Advertisement agent services — 3,696 7,326 Revenue for Enterprise value ‑ added services 193,213 74,032 72,640 Subscription services Institutional investor subscription services 16,036 25,490 27,095 Enterprise subscription services 361 94 423 Individual subscription services 4,343 2,441 719 Revenue for Subscription services 20,740 28,025 28,237 Total revenue 386,764 316,779 322,497 Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Group records contract assets when the Group has a right to consideration in exchange for goods or services that it has transferred to a customer and when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. As of December 31, 2021 and 2022, there were no contract assets recorded in the Group’s consolidated balance sheets. If a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional (that is, a receivable), before the Group transfers a good or service to the customer, the Group shall present the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which it has received consideration (or an amount of consideration is due) from the customer. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from advertisers. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Contract liability is presented as deferred revenue in the consolidated balance sheets. Revenue recognized for the years ended December 31, 2020, 2021 and 2022 that was included in the contract liabilities balance at the beginning of the period was RMB 8.16 million, RMB 18.85 million and RMB 28.86 million, respectively. Practical expedients and exemptions The Group generally expenses sales commissions when incurred because the amortization periods are generally one year or less. These costs are recorded within sales and marketing expenses. |
Cost of revenues | (o) Cost of revenues The Group’s cost of revenues consists primarily of (i) personnel-related expenses in relation to the content production and share-based compensation expenses; (ii) advertising content producing costs, such as video production costs; (iii) execution fee of enterprise value-added services mainly including advertising resources procurement cost, site fee and cost of offline event; (iv) impairment of long-lived assets; (v) equipment location rental fee and operating expense. |
Sales and marketing expenses | (p) Sales and marketing expenses Sales and marketing expenses consist primarily of personnel-related expenses including sales commissions related to the sales and marketing personnel and share-based compensation expenses; marketing and promotional expenses including promotion activity outsourcing costs; rental expenses and depreciation expenses. Advertising costs are expensed as incurred, and are included in sales and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, total advertising expenses were RMB 6.34 million, RMB 7.27 million and RMB 4.80 million, respectively. |
General and administrative expenses | (q) General and administrative expenses General and administrative expenses consist primarily of payroll and related expenses for employees involved in general corporate functions, including finance, legal and human resources share-based compensation expenses, provision of allowance for credit losses, costs associated with use by these functions of facilities and equipment, such as depreciation, rental and other general corporate related expenses. |
Research and development expenses | (r) Research and development expenses Research and development expenses consist primarily of (i) personnel-related expenses associated with the development of, enhancement to, and maintenance of the Group’s PC websites, mobile applications and mobile websites; (ii) technology expenses related to technology procurement device maintenance and testing; and (iii) rental expense and depreciation of servers. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platform. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Company’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. |
Operating lease and adoption of ASU 2016-02 | (s) Operating lease and adoption of ASU 2016-02 On February 25, 2016, the FASB issued ASU 2016-02 Leases (Topic 842), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Group applied ASU 2016-02 beginning from January 1, 2020 and elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group used the modified retrospective method and did not recast the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. |
Share-based compensation | (t) Share-based compensation All share-based awards granted to employees, including restricted share units and share options, are measured at fair value on grant date. Share-based compensation expense is recognized using the straight-line vesting method for awards that contain only service conditions. For the share options granted with performance conditions, the share-based compensation expenses are recorded using graded vesting method when the performance condition is considered probable. The Group early adopted ASU 2016-09 from the earliest period presented to recognize the effect of forfeiture in compensation cost when they occur. The Group uses the binomial option pricing model to estimate fair value of the share options. The determination of estimated fair value of share-based awards on the grant date using an option pricing model is affected by the fair value of underlying ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected volatility of underlying ordinary shares over the expected term of the awards, actual and projected share option exercise behaviors, a risk-free interest rate and any expected dividends. The underlying ordinary shares which do not have quoted market prices before the Company’s initial public offering, were valued based on the income approach with a discount for lack of marketability. Determination of estimated fair value of the underlying ordinary shares requires complex and subjective judgments due to their limited financial and operating history, and unique business risks. Cancellation of an award accompanied by the grant of a replacement award is accounted for as a modification of the terms of the cancelled award (“modification awards”). The compensation costs associated with the modification awards are recognized if either the original vesting condition or the new vesting condition has been achieved. If the awards are expected to vest under the original vesting condition, the compensation cost would be recognized regardless of whether the employee satisfies the modified condition. Such compensation costs cannot be less than the grant-date fair value of the original award. The incremental compensation cost is measured as the excess of the fair value of the replacement award over the fair value of the cancelled award at the cancellation date. Therefore, in relation to the modification awards, the Group recognizes share-based compensation over the vesting periods of the new awards, which comprises (i) the amortization of the incremental portion of share-based compensation over the remaining vesting term and (ii) any unrecognized compensation cost of original award, using either the original term or the new term, whichever is higher for each reporting period. |
Employee benefits | (u) Employee benefits The Group’s consolidated subsidiaries, the VIE and the VIE’s subsidiaries in the PRC (the “PRC Entities”) participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the PRC Entities to pay the local labor and social welfare authorities’ monthly contributions at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the PRC Entities have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as cost and expenses in the consolidated statements of comprehensive income/(loss) were approximately RMB 21.18 million, RMB 36.41 million and RMB 43.96 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Taxation | (v) Taxation Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. The Group follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial statements carrying amounts and tax basis of existing assets and liabilities by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse. The Group records a valuation allowance to reduce the amount of deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income/(loss) in the period of change. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likelihood of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its consolidated statements of comprehensive income/(loss). The Group did not have any unrecognized uncertain tax positions as of and for the years ended December 31, 2020, 2021 and 2022. |
Government grants | (w) Government grants Government grants primarily represents subsidies for operating a business and initial public offering expenditures. These grants are not subject to any specific requirements and are recorded when received. For the years ended December 31, 2020, 2021 and 2022, government grants amounted to approximately RMB 10.1 million, RMB 3.3 million, and RMB 3.4 million, respectively. |
Other income/(expenses) - Others, net | (x) Other income/(expenses) — Others, net Others, net mainly represent interest income, interest expense, foreign currency exchange gains or losses and gains generated from write-offs of accounts payable. |
Comprehensive income | (y) Comprehensive income Comprehensive income is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income is reported in the consolidated statements of comprehensive income/(loss). Accumulated other comprehensive income/(loss), as presented on the Group’s consolidated balance sheets, includes the foreign currency translation. |
Related parties | (z) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholders, or a related corporation. |
Segment reporting | (aa) Segment reporting The Group’s chief operating decision maker (“CODM”) has been identified as its Chief Executive Officer, who reviews the consolidated results when making decision about allocating resources and assessing performance of the Group as a whole. Hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from the PRC. Therefore, no geographical segments are presented. The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run the Group’s business operations, which include, but are not limited to, customer base, homogeneity of services and technology. The Group’s reporting segment is based on its organizational structure and information reviewed by the Group’s CODM to evaluate the reporting segment result. |
Statutory reserves | (ab) Statutory reserves The Group’s consolidated subsidiaries, the VIE and VIE’s subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the law applicable to the Foreign Investment Enterprises established in the PRC, the Company’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their annual after-tax profit (as determined under generally accepted accounting principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriation to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. In addition, in accordance with the PRC Company Law, the Group’s VIE registered as Chinese domestic company must make appropriations from its annual after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits as determined under the PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payment of special bonus to employee and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the company in terms of cash dividends, loan or advances, nor can they be distributed except under liquidation. Profit appropriation to above reserve funds was made for the Group’s entities established in the PRC and amounted to RMB 0.66 million, RMB 0.30 million and RMB 0.55 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Net income/(loss) per share | (ac) Net income/(loss) per share Net income/(loss) per share is computed in accordance with ASC 260, “Earnings per Share”. Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is calculated by dividing net income/(loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the period. Dilutive equivalent shares are excluded from the computation of diluted income per share if their effects would be anti-dilutive. Ordinary share equivalents consist of ordinary shares issuable upon the vesting of the restricted share units or the exercise of share options, using the treasury stock method. The Group uses the two-class method to calculate net income per share though both classes share the same rights in dividends. Therefore, basic and diluted earnings per share are the same for both classes of ordinary shares. |
Recently issued accounting pronouncements | The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The accounting standards that the Group adopted beginning January 1, 2022 did not have a significant impact on the Group’s consolidated financial statements. |
Nature of Operations and Reor_2
Nature of Operations and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations and Reorganization | |
Schedule of ownership structure of the major subsidiaries and VIE | Percentage of Direct or Indirect Place and year of Economic Major subsidiaries Incorporation Ownership Principal activities 36Kr Holding Limited (“36Kr BVI” or “BVI Subsidiary”) British Virgin Islands, established in 2018 100 % Investment holding 36Kr Holdings (HK) Limited (“36Kr HK” or “HK Subsidiary”) Hong Kong, established in 2018 100 % Investment holding Tianjin Duoke Investment Co., Ltd. (“Tianjin Duoke”) The PRC, established in 2019 100 % Investment holding Tianjin Dake Information Technology Co., Ltd. (“Tianjin Dake”) The PRC, established in 2019 100 % Management consulting Beijing Dake The PRC, established in 2019 100 % Management consulting Nanjing Dake Information Technology Co., Ltd. (“Nanjing Dake”) The PRC, established in 2021 100 % Management consulting Hainan Shenke Information Technology Co., Ltd. (“Hainan Shenke”) The PRC, established in 2021 100 % Management consulting Percentage of Place and year of Economic VIE Incorporation Ownership Principal activities Beijing Duoke The PRC, established in 2016 100 % 36Kr Business Percentage of Place and year of Economic VIE Major subsidiaries Incorporation Ownership Principal activities Zhejiang Pinxin Technology Co., Ltd. The PRC, established in 2019 100 % Investment holding |
Schedule of financial information of the Group's VIE and the VIE's subsidiaries included in the accompanying consolidated financial statements | December 31, December 31, 2021 2022 RMB’000 RMB’000 Current assets: Cash and cash equivalents 42,047 101,659 Restricted cash — 100 Short‑term investments 99,017 22,247 Accounts receivable, net 179,986 197,503 Amounts due from the Company and its subsidiaries 16,137 16,361 Receivables due from related parties of the Group 3,620 804 Prepayments and other current assets 42,312 15,913 Non‑current assets: Property and equipment, net 3,157 2,428 Intangible assets, net 808 1,249 Long-term investments, net 30,976 126,434 Operating lease right-of-use assets, net 13,818 30,911 Total assets 431,878 515,609 Current liabilities: Accounts payable 56,069 53,465 Salary and welfare payables 37,631 33,998 Taxes payable 11,311 6,844 Deferred revenue 28,863 24,575 Amounts due to the Company and its subsidiaries 143,331 155,818 Amounts due to related parties of the Group 1,328 312 Accrued liabilities and other payables 12,621 23,185 Short-term bank loan 5,000 9,950 Operating lease liabilities 16,302 31,293 Non-current liabilities: Operating lease liabilities 586 15,093 Other non-current liabilities — 615 Total liabilities 313,042 355,148 For the year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Inter-company revenues — 25 — Third-party revenues 386,861 316,632 320,526 Cost of revenues (282,772) (147,654) (211,698) Gross profit 104,089 169,003 108,828 Operating expenses (284,163) (190,249) (131,984) Loss from operations (180,074) (21,246) (23,156) Gain on disposal of a subsidiary — — 38,019 Share of loss from equity method investments — 26 523 Long-term investments income/(loss), net — — 15,964 Short-term investments income 1,416 1,768 1,262 Others, net 12,021 5,602 9,402 Income/(Loss) before income tax (166,637) (13,850) 42,014 Income tax expenses (3,814) (111) (361) Net income/(loss) (170,451) (13,961) 41,653 For the year Ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net cash (used in)/provided by operating activities 57,273 266,927 77,322 Purchase of short-term investments (504,571) (571,110) (417,490) Proceeds from maturities of short-term investments 423,937 594,927 494,709 Investment in long-term investments — (30,950) (38,970) Loan paid to inter-company entities (150) (5,000) — Loan collected from related parties — — 2,000 Loan collected from inter-company entities — 5,000 100 Cash received from customer in relation to advertisement agent services — 26,295 70,208 Cash paid on behalf of the customer in relation to advertisement agent services — (179,036) (64,054) Others (2,777) (4,180) (3,361) Net cash (used in)/provided by investing activities (83,561) (164,054) 43,142 Proceeds from initial public offering, net of issuance costs (6,000) — — Capital injection from noncontrolling interest shareholders 520 750 174 Proceeds from loans provided by inter-company entities 35,910 25,010 — Repayments of loans provided by inter-company entities (5,000) (103,080) (65,876) Others (19) 5,000 4,950 Net cash provided by/(used in) financing activities 25,411 (72,320) (60,752) Increase/(Decrease) in cash, cash equivalents and restricted cash (877) 30,553 59,712 Cash, cash equivalents and restricted cash at beginning of year 12,371 11,494 42,047 Cash, Cash equivalents and restricted cash at end of year 11,494 42,047 101,759 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Schedule of assets and liabilities measured at fair value on a recurring basis | As of December 31, 2021 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 119,140 — 119,140 As of December 31, 2022 Balance at Assets Level 1 Level 2 Level 3 fair value RMB’000 RMB’000 RMB’000 RMB’000 Short‑term investments — Wealth management products — 42,270 — 42,270 Long-term investments- Fair value option 66,470 66,470 |
Schedule of estimated useful lives of property and equipment, net | Estimated useful life Electronic equipment and computers 3 years Office furniture and equipment 3 years Leasehold improvement Lesser of the term of the lease or the estimated useful lives of the leasehold improvement |
Schedule of revenue disaggregated by the major service lines | For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Online advertising services 172,811 214,722 221,620 Enterprise value ‑ added services Integrated marketing 133,599 1,342 6,639 Online/offline events 26,992 32,127 15,475 Consulting 32,622 36,867 43,200 Advertisement agent services — 3,696 7,326 Revenue for Enterprise value ‑ added services 193,213 74,032 72,640 Subscription services Institutional investor subscription services 16,036 25,490 27,095 Enterprise subscription services 361 94 423 Individual subscription services 4,343 2,441 719 Revenue for Subscription services 20,740 28,025 28,237 Total revenue 386,764 316,779 322,497 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | Customer risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31, Revenues 2020 2021 2022 Customer A * * 17 % Customer B 32 % * * Customer C * * 12 % |
Accounts receivable | Customer risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | As of December 31, Accounts receivable 2021 2022 Customer B 55 % 67 % |
Costs and expenses | Supplier risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31, Costs and expenses 2020 2021 2022 Supplier D 22 % * * * Less than 10% |
Cash & cash equivalents, restricted cash and short-term investments | Credit risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31 Cash & cash equivalents, restricted cash and short-term investments 2021 2022 Bank E 81 % 74 % Bank F 16 % 25 % |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, net | |
Schedule of accounts receivable, net | December 31, December 31, 2021 2022 RMB’000 RMB’000 Accounts receivable 302,200 280,911 Less: allowance for credit losses (122,039) (83,383) Accounts receivable, net 180,161 197,528 |
Schedule of allowance for doubtful accounts | For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Balance at beginning of the year (11,413) (124,204) (122,039) Reversal/(addition) of allowance for credit losses, net (125,563) (8,681) 30,192 Write-offs 12,772 10,846 8,464 Balance at end of the year (124,204) (122,039) (83,383) |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Schedule of prepayments and other current assets | December 31, December 31, 2021 2022 RMB’000 RMB’000 Deposits 5,758 5,792 Prepayments of IT services 907 1,318 Prepayments of procurement costs 32,842 8,061 Others 3,105 988 Total 42,612 16,159 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net | |
Schedule of property and equipment | December 31, December 31, 2021 2022 RMB’000 RMB’000 Electronic equipment and computers 17,532 5,312 Office furniture and equipment 2,725 2,943 Leasehold improvement 4,971 5,032 Total 25,228 13,287 Less: accumulated depreciation (14,082) (10,859) Less: impairment (7,987) — Property and equipment, net 3,159 2,428 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments. | |
Schedule of long term investments | December 31, December 31, 2021 2022 RMB’000 RMB’000 Equity investments accounted for using the measurement alternative 30,000 58,464 Equity investments accounted for using the equity method 11,442 12,423 Investments accounted for at fair value — 66,470 Total 41,442 137,357 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Schedule of summary of taxes payable | December 31, December 31, 2021 2022 RMB’000 RMB’000 VAT payable 12,060 9,787 Enterprise income taxes payable 80 274 Withholding individual income taxes for employees 121 88 Others 575 725 Total 12,836 10,874 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities and Other Payables | |
Schedule of accrued liabilities and other payables | December 31, December 31, 2021 2022 RMB’000 RMB’000 Accrued professional fees 11,438 10,552 Accrued promotion fees 350 10,829 Accrued office rental expense 177 769 Accrued employee welfare expense, meal and travel expense 1,579 362 Guarantee deposits 330 280 Withholding employees' social insurance and housing fund 1,140 1,289 Others 2,487 3,525 Total 17,501 27,606 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of supplemental information related to operating leases | December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Operating lease right-of-use asset 13,818 30,911 Operating lease liabilities-current (16,302) (31,293) Operating lease liabilities-non-current (586) (15,093) Total operating lease liabilities (16,888) (46,386) Weighted average remaining lease term 1.09 years 1.34 years Weighted average discount rate 4.75 % 4.75 % |
Summary of lease cost | December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Other information Operating lease cost 15,481 14,948 Short-term lease cost 572 941 Total 16,053 15,889 |
Summary of supplemental cash flow information related to leases | December 31, December 31, 2021 2022 RMB‘000 RMB‘000 Cash payments for operating leases 12,604 1,201 Right-of-use assets obtained in exchange for lease obligations 1,971 30,699 |
Summary of maturity of operating lease liabilities under the Group's non-cancelable operating leases | December 31, 2022 RMB‘000 2023 31,748 2024 15,464 2025 598 Total lease payment 47,810 Less: interest 1,424 Present value of operating lease liabilities 46,386 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of composition of income tax expenses | For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Current income tax expense 373 155 361 Deferred taxation 3,391 (53) — Total 3,764 102 361 |
Schedule of reconciliation of the differences between statutory income tax rate and the effective income tax rate | For the year ended December 31, 2020 2021 2022 % % % Statutory EIT rate 25.00 25.00 25.00 Effect of non-deductible expenses (1) (5.78) (6.60) 16.97 Tax incentives for research and development expense (2) 2.08 9.00 (49.14) Tax incentives for wages of disabled staff 0.02 0.05 (0.16) Preferential tax rate 1.15 0.48 (4.20) Change in valuation allowance (23.19) (25.55) 2.52 Tax rate difference from statutory rate in other jurisdictions (0.72) (2.49) 10.44 Others 0.07 — — Effective income tax rate (1.37) (0.11) 1.43 (1) Primarily comprised of share-based compensation expenses which are permanent differences. (2) According to policies promulgated by the State Tax Bureau of the PRC, certain of the Group’s subsidiaries are entitled to tax incentives for research and development expenses at 175% of tax-deductible research and development expenses in 2020, 2021 and January 1, 2022 to September 30, 2022. Under Chinese mainland regulations issued in September 2022 that were applicable from October 1, 2022 to December 31, 2022, certain of the Group’s subsidiaries are entitled to tax incentives for research and development expenses at 200% of tax-deductible research and development expenses. |
Schedule of composition of deferred tax assets | December 31, December 31, 2021 2022 RMB’000 RMB’000 Deferred tax assets - non‑current: —Net operating tax losses carry forwards 46,031 51,541 —Allowances of doubtful accounts 18,702 12,564 —Investment loss — 375 —Property and equipment impairment 1,997 — —Others 299 — Total deferred tax assets 67,029 64,480 Less: valuation allowance (67,029) (61,617) Total deferred tax assets, net — 2,863 Deferred tax liabilities - non‑current: — Unrealized investment gain — (2,863) Total deferred tax liabilities — (2,863) |
Share-based Compensation (Table
Share-based Compensation (Tables) - 2019 Incentive Plan | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of fair value assumptions on options | For the year ended December 31, 2020 2021 2022 Expected volatility 50.22 % 49.29%-50.47 % 51.97 % Expected dividend yield — — — Contractual term (in year) 10 10 10 Risk-free interest rate 1.66 % 1.38%-1.45 % 3.57 % |
Summary of stock option activity under the 2019 Incentive Plan | Weighted Weighted average average exercise Aggregate intrinsic remaining Number of price US$ per value contractual shares share US$ years Outstanding at December 31, 2019 126,402,925 0.0001 37,352,064 9.68 Granted during the year 5,125,000 0.0001 — — Exercised during the year (36,613,500) 0.0001 — — Forfeited / Cancelled during the year (6,674,341) 0.0001 — — Outstanding at December 31, 2020 88,240,084 0.0001 9,847,593 8.77 Granted during the year 32,765,413 0.0001 — — Exercised during the year (18,031,675) 0.0001 — — Forfeited / Cancelled during the year (8,143,392) 0.0001 — — Outstanding at December 31, 2021 94,830,430 0.0001 4,324,268 8.44 Granted during the year 3,167,881 0.0001 — — Exercised during the year (2,107,600) 0.0001 — — Forfeited during the year (1,861,733) 0.0001 — — Outstanding at December 31, 2022 94,028,978 0.0001 3,881,516 7.53 Exercisable at December 31, 2022 64,686,080 |
Basic and Diluted Net Income__2
Basic and Diluted Net Income/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Net Income/(Loss) Per Share | |
Schedule of basic and diluted net loss per share calculated in accordance with ASC 260 | For the years ended December 31, 2020 2021 2022 Net income/(loss) per ordinary share – basic: Numerator (RMB’000): Net income/(loss) attributable to 36Kr Holdings Inc. (279,342) (90,609) 22,637 Net loss/(income) attributable to non-controlling interests (889) 1,038 (694) Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic (280,231) (89,571) 21,943 Denominator: Weighted average number of ordinary shares outstanding 1,019,316,944 1,025,068,349 1,034,547,219 Denominator used in computing net income/(loss) per share - basic 1,019,316,944 1,025,068,349 1,034,547,219 Net income/(loss) per ordinary share: - basic (RMB) (0.275) (0.087) 0.021 Net income/(loss) per ordinary share - diluted: Numerator (RMB’000): Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic (280,231) (89,571) 21,943 Net income/(loss) attributable to ordinary shareholders - diluted (280,231) (89,571) 21,943 Denominator: Denominator used in computing net income/(loss) per share - basic 1,019,316,944 1,025,068,349 1,034,547,219 Denominator used in computing net income/(loss) per share - diluted 1,019,316,944 1,025,068,349 1,034,547,219 Net loss per ordinary share – diluted (RMB) (0.275) (0.087) 0.021 |
Condensed Financial Informati_2
Condensed Financial Information of the Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information of the Company | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, December 31, 2021 2022 RMB’000 RMB’000 Current assets: Cash and cash equivalents 31,833 23,365 Amount due from inter-company entities 468 515 Receivables due from related parties 10 52 Prepayments and other current assets 180 107 Non-current assets: Investments in subsidiaries, VIE and subsidiaries of VIE 285,624 333,418 318,115 357,457 Total assets Current liabilities: Amount due to inter-company entities 14,463 16,149 Accrued liabilities and other payables 4,247 3,202 Total liabilities 18,710 19,351 Commitments and Contingencies (Note 17) Shareholders' equity : Class A ordinary shares (US$0.0001 par value per share; 4,903,917,300 shares authorized, 907,346,745 shares issued and 893,706,595 shares outstanding as of December 31, 2021; 4,903,917,300 shares authorized, 907,346,745 shares issued and 895,814,195 shares outstanding as of December 31, 2022) 628 628 Class B ordinary shares (US$0.0001 par value per share; 96,082,700 shares authorized, 96,082,700 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 66 66 Additional paid-in capital 2,049,448 2,061,491 Treasury stock (US$ 0.0001 par value; 16,201,618 shares and 14,094,018 shares as of December 31, 2021 and 2022, respectively) (13,598) (12,010) Accumulated deficit (1,728,152) (1,706,209) Accumulated other comprehensive loss (8,987) (5,860) Total 36Kr Holdings Inc.'s shareholders’ equity 299,405 338,106 Total liabilities and shareholders’ equity 318,115 357,457 |
Condensed Statement of Operations and Comprehensive Loss | Condensed Statement of Operations and Comprehensive Income/(Loss) For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Operating expenses: Sales and marketing expenses (55) (282) — General and administrative expenses (9,439) (9,269) (11,602) Total operating expenses (9,494) (9,551) (11,602) Loss from operations (9,494) (9,551) (11,602) Other income/(expenses): Share of income/(loss) from subsidiaries, VIE and subsidiaries of VIE (272,297) (80,559) 31,888 Interest income 983 64 368 Interest expense (14) (70) (189) Others, net 591 545 1,478 Income/(loss) before income tax (280,231) (89,571) 21,943 Income tax expenses — — — Net income/(loss) (280,231) (89,571) 21,943 Net income/(loss) attributable to 36Kr Holdings Inc.’s ordinary shareholders (280,231) (89,571) 21,943 |
Condensed Statement of Cash Flows | Condensed Statement of Cash Flows For the year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Net cash used in operating activities (3,298) (9,857) (12,381) Net cash used in investing activities (77,536) — — Net cash provided by/(used in) financing activities (27,360) (5,773) — Effect of exchange rate changes on cash, and cash equivalents held in foreign currencies (2,334) (1,047) 3,913 Net increase/(decrease) in cash and cash equivalents (110,528) (16,677) (8,468) Cash and cash equivalents at beginning of the year 159,038 48,510 31,833 Cash and cash equivalents at end of the year 48,510 31,833 23,365 |
Nature of Operations and Reor_3
Nature of Operations and Reorganization - Reorganization and Initial Public Offering (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2022 CNY (¥) director | Nov. 08, 2019 CNY (¥) shares | Nov. 08, 2019 USD ($) $ / shares shares | Aug. 02, 2019 | Dec. 31, 2022 | Dec. 31, 2020 CNY (¥) | |
Reorganization | ||||||
Proceeds from initial public offering, net of issuance costs | ¥ | ¥ (21,617) | |||||
Beijing Cultural Investment Development Group Asset Management Co., Ltd | ||||||
Reorganization | ||||||
Investments made | ¥ | ¥ 32,492 | |||||
Percentage of investment | 1% | |||||
Number of board of directors | director | 3 | |||||
IPO | ||||||
Reorganization | ||||||
Issuance price per share (in US dollar per share) | $ / shares | $ 14.50 | |||||
Proceeds from initial public offering, net of issuance costs | ¥ 86,240 | $ 12,330 | ||||
IPO | ADS | ||||||
Reorganization | ||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 1,380,000 | 1,380,000 | ||||
IPO | Class A ordinary shares | ||||||
Reorganization | ||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 34,500,000 | 34,500,000 | ||||
36Kr Holding Limited ("36Kr BVI" or "BVI Subsidiary") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Investment holding | |||||
36Kr Holdings (HK) Limited ("36Kr HK" or "HK Subsidiary") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Investment holding | |||||
Tianjin Duoke Investment Co., Ltd. ("Tianjin Duoke") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Investment holding | |||||
Tianjin Dake Information Technology Co., Ltd. ("Tianjin Dake") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Management consulting | |||||
Beijing Dake | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Management consulting | |||||
Nanjing Dake Information Technology Co., Ltd. ("Nanjing Dake") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Management consulting | |||||
Hainan Shenke Information Technology Co., Ltd. ("Hainan Shenke") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100% | |||||
Principal activities | Management consulting | |||||
Beijing Duoke | ||||||
Reorganization | ||||||
Percentage of ownership in VIEs | 100% | |||||
Principal activities | 36Kr Business | |||||
Zhejiang Pinxin Technology Co., Ltd. | ||||||
Reorganization | ||||||
Percentage of ownership in VIEs | 100% | |||||
Principal activities | Investment holding |
Nature of Operations and Reor_4
Nature of Operations and Reorganization - Contractual agreements with the VIE (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | ¥ 142,511 | ¥ 96,965 | |
Restricted cash | 100 | ||
Short-term investments | 42,270 | 119,140 | |
Accounts receivable, net | 197,528 | 180,161 | |
Receivables due from related parties | 858 | 3,630 | |
Prepayments and other current assets | 16,159 | 42,612 | |
Non-current assets: | |||
Property and equipment, net | 2,428 | 3,159 | |
Intangible assets, net | 1,249 | 808 | |
Long-term investments, net | 137,357 | 41,442 | |
Operating lease right-of-use assets, net | 30,911 | 13,818 | |
Total assets | 571,371 | 501,735 | |
Current liabilities: | |||
Accounts payable | 53,465 | 56,266 | |
Salary and welfare payables | 52,204 | 55,788 | |
Taxes payable | 10,874 | 12,836 | |
Deferred revenue | 24,575 | 28,863 | |
Amounts due to related parties | 312 | 1,328 | |
Accrued liabilities and other payables | 27,606 | 17,501 | |
Short-term bank loan | 9,950 | 5,000 | |
Operating lease liabilities | 31,293 | 16,302 | |
Non-current liabilities: | |||
Operating lease liabilities | 15,093 | 586 | |
Other non-current liabilities | 615 | ||
Total liabilities | 225,987 | 194,470 | |
Cash flows from operating activities: | |||
Revenues | 322,497 | 316,779 | ¥ 386,764 |
Cost of revenues | (137,848) | (128,844) | (261,372) |
Gross Profit | 184,649 | 187,935 | 125,392 |
Operating expenses | 229,186 | 282,041 | 392,710 |
Loss from operations | (44,537) | (94,106) | (267,318) |
Gain on disposal of a subsidiary | 38,019 | ||
Share of loss/(income) from equity method investments | (51) | 5,473 | 23,502 |
Long-term investment income/(loss), net | 15,964 | ||
Short-term investment income | 1,999 | 2,485 | 1,859 |
Others, net | 8,055 | 3,283 | 3,280 |
Income/(loss) before income tax | 22,998 | (90,507) | (275,578) |
Income tax expense | 361 | 102 | 3,764 |
Net income/(loss) | 22,637 | (90,609) | (279,342) |
Net cash (used in)/provided by operating activities | (4,989) | 194,961 | (17,125) |
Cash flows from investing activities: | |||
Net cash (used in)/provided by investing activities | 43,311 | (157,997) | (64,289) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (21,617) | ||
Share repurchase | (5,780) | (11,748) | |
Net cash provided by/(used in) financing activities | 5,124 | (23) | (32,837) |
Effect of exchange rate changes on cash, and cash equivalents held in foreign currencies | 2,200 | (822) | (2,780) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 45,646 | 36,119 | (117,031) |
Cash, cash equivalents and restricted cash at beginning of the year | 96,965 | 60,846 | 177,877 |
Cash, cash equivalents and restricted cash at end of the year | 142,611 | 96,965 | 60,846 |
VIEs | |||
Current assets: | |||
Cash and cash equivalents | 101,659 | 42,047 | |
Restricted cash | 100 | ||
Short-term investments | 22,247 | 99,017 | |
Accounts receivable, net | 197,503 | 179,986 | |
Amounts due from the Company and its subsidiaries | 16,361 | 16,137 | |
Receivables due from related parties | 804 | 3,620 | |
Prepayments and other current assets | 15,913 | 42,312 | |
Non-current assets: | |||
Property and equipment, net | 2,428 | 3,157 | |
Intangible assets, net | 1,249 | 808 | |
Long-term investments, net | 126,434 | 30,976 | |
Operating lease right-of-use assets, net | 30,911 | 13,818 | |
Total assets | 515,609 | 431,878 | |
Current liabilities: | |||
Accounts payable | 53,465 | 56,069 | |
Salary and welfare payables | 33,998 | 37,631 | |
Taxes payable | 6,844 | 11,311 | |
Deferred revenue | 24,575 | 28,863 | |
Amounts due to the Company and its subsidiaries | 155,818 | 143,331 | |
Amounts due to related parties | 312 | 1,328 | |
Accrued liabilities and other payables | 23,185 | 12,621 | |
Short-term bank loan | 9,950 | 5,000 | |
Operating lease liabilities | 31,293 | 16,302 | |
Non-current liabilities: | |||
Operating lease liabilities | 15,093 | 586 | |
Other non-current liabilities | 615 | 0 | |
Total liabilities | 355,148 | 313,042 | |
Cash flows from operating activities: | |||
Cost of revenues | (211,698) | (147,654) | (282,772) |
Gross Profit | 108,828 | 169,003 | 104,089 |
Operating expenses | (131,984) | (190,249) | (284,163) |
Loss from operations | (23,156) | (21,246) | (180,074) |
Gain on disposal of a subsidiary | 38,019 | ||
Share of loss/(income) from equity method investments | 523 | 26 | |
Long-term investment income/(loss), net | 15,964 | ||
Short-term investment income | 1,262 | 1,768 | 1,416 |
Others, net | 9,402 | 5,602 | 12,021 |
Income/(loss) before income tax | 42,014 | (13,850) | (166,637) |
Income tax expense | (361) | (111) | (3,814) |
Net income/(loss) | 41,653 | (13,961) | (170,451) |
Net cash (used in)/provided by operating activities | 77,322 | 266,927 | 57,273 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (417,490) | (571,110) | (504,571) |
Proceeds from maturities of short-term investments | 494,709 | 594,927 | 423,937 |
Investment in long-term investments | (38,970) | (30,950) | |
Loan paid to inter-company entities | (5,000) | (150) | |
Loan collected from related parties | 2,000 | ||
Loan collected from inter-company entities | 100 | 5,000 | |
Cash received from customer in relation to advertisement agent services | 70,208 | 26,295 | |
Cash paid on behalf of the customer in relation to advertisement agent services | (64,054) | (179,036) | |
Others | (3,361) | (4,180) | (2,777) |
Net cash (used in)/provided by investing activities | 43,142 | (164,054) | (83,561) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (6,000) | ||
Capital injection from noncontrolling interest shareholders | 174 | 750 | 520 |
Proceeds from loans provided by inter-company entities | 25,010 | 35,910 | |
Repayments of loans provided by inter-company entities | (65,876) | (103,080) | (5,000) |
Others | 4,950 | 5,000 | (19) |
Net cash provided by/(used in) financing activities | (60,752) | (72,320) | 25,411 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 59,712 | 30,553 | (877) |
Cash, cash equivalents and restricted cash at beginning of the year | 42,047 | 11,494 | 12,371 |
Cash, cash equivalents and restricted cash at end of the year | 101,759 | 42,047 | 11,494 |
VIEs | Inter-company revenues | |||
Cash flows from operating activities: | |||
Revenues | 25 | ||
VIEs | Third-party revenues | |||
Cash flows from operating activities: | |||
Revenues | ¥ 320,526 | ¥ 316,632 | ¥ 386,861 |
Significant Accounting Polici_4
Significant Accounting Policies - Principles of consolidation to short-term investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Principles of consolidation | |||
Net loss attributable to non-controlling interests | ¥ 694 | ¥ (1,038) | ¥ 889 |
Functional currency and foreign currency translation | |||
Total foreign currency translation adjustments | 3,127 | (1,090) | (4,843) |
Fair value measurements | |||
Impairment loss | 0 | 0 | ¥ 0 |
Recurring | |||
Fair value measurements | |||
Investments | 119,140 | ||
Recurring | Wealth management products | |||
Fair value measurements | |||
Investments | 42,270 | ||
Recurring | Fair value option | |||
Fair value measurements | |||
Investments | 66,470 | ||
Level 2 | Recurring | |||
Fair value measurements | |||
Investments | ¥ 119,140 | ||
Level 2 | Recurring | Wealth management products | |||
Fair value measurements | |||
Investments | 42,270 | ||
Level 2 | Recurring | Fair value option | |||
Fair value measurements | |||
Investments | ¥ 66,470 |
Significant Accounting Polici_5
Significant Accounting Policies - Property and equipment, net, goodwill and impairment of long-lived assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Goodwill | ||
Goodwill impairment | ¥ 1,395 | |
Impairment of long-lived assets | ||
Impairment of long-lived assets | ¥ 7,987 | |
Electronic equipment and computers | ||
Estimated useful lives to impairment of long-lived assets | ||
Estimated useful life | 3 years | |
Office furniture and equipment | ||
Estimated useful lives to impairment of long-lived assets | ||
Estimated useful life | 3 years |
Significant Accounting Polici_6
Significant Accounting Policies - Equity Investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Significant Accounting Policies | ||
Total | ¥ 12,423 | ¥ 11,442 |
Significant Accounting Polici_7
Significant Accounting Policies - Long-term investments and Revenue recognition (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue recognition | |||
Impairment of equity method investment | ¥ 0 | ¥ 0 | ¥ 0 |
Share of income/(loss) from equity method investments | ¥ 51 | (5,473) | (23,502) |
Maximum economic benefit period from paid columns and online courses | 1 year | ||
Revenues | ¥ 322,497 | 316,779 | 386,764 |
Contract assets | 0 | 0 | |
Revenue recognized included in contract liabilities balance at the beginning of the period | 28,860 | 18,850 | 8,160 |
Online advertising services | |||
Revenue recognition | |||
Revenues | 221,620 | 214,722 | 172,811 |
Integrated marketing | |||
Revenue recognition | |||
Revenues | 6,639 | 1,342 | 133,599 |
Online/offline events | |||
Revenue recognition | |||
Revenues | 15,475 | 32,127 | 26,992 |
Consulting | |||
Revenue recognition | |||
Revenues | 43,200 | 36,867 | 32,622 |
Advertisement agent services | |||
Revenue recognition | |||
Revenues | 7,326 | 3,696 | |
Enterprise value-added services | |||
Revenue recognition | |||
Revenues | 72,640 | 74,032 | 193,213 |
Institutional investor subscription services | |||
Revenue recognition | |||
Revenues | 27,095 | 25,490 | 16,036 |
Enterprise subscription services | |||
Revenue recognition | |||
Revenues | 423 | 94 | 361 |
Individual subscription services | |||
Revenue recognition | |||
Revenues | 719 | 2,441 | 4,343 |
Subscription services | |||
Revenue recognition | |||
Revenues | ¥ 28,237 | ¥ 28,025 | ¥ 20,740 |
Significant Accounting Polici_8
Significant Accounting Policies - Sales and marketing expenses, Employee Benefits, Government grant, Segment Reporting and Statutory Reserves (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Employee benefits | |||
Employee social security and welfare benefits | ¥ 43,960 | ¥ 36,410 | ¥ 21,180 |
Segment Reporting | |||
Number of reportable segments | segment | 1 | ||
Statutory Reserves | |||
Percentage of general reserve fund, annual after-tax profits | 10% | ||
Maximum percentage of general reserve fund, registered capital | 50% | ||
Percentage of statutory surplus fund, annual after-tax profits | 10% | ||
Maximum percentage of statutory surplus fund, registered capital | 50% | ||
Profit appropriation to reserve funds | ¥ 550 | 300 | 660 |
Government grant | 3,447 | 3,304 | 10,103 |
Sales and marketing expenses | |||
Sales and marketing expenses | |||
Total advertising expenses | ¥ 4,800 | ¥ 7,270 | ¥ 6,340 |
Concentration and Risks (Detail
Concentration and Risks (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | Customer risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 17% | ||
Revenues | Customer risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 32% | ||
Revenues | Customer risk | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 12% | ||
Accounts receivable | Customer risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 67% | 55% | |
Costs and expenses | Supplier risk | Supplier D | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 22% | ||
Cash & cash equivalents, restricted cash and short-term investments | Credit risk | Bank E | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 74% | 81% | |
Cash & cash equivalents, restricted cash and short-term investments | Credit risk | Bank F | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 25% | 16% |
Accounts Receivable, net - Summ
Accounts Receivable, net - Summary (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable | ¥ 280,911 | ¥ 302,200 | |
Less: allowance for credit losses | (83,383) | (122,039) | |
Accounts receivable, net | 197,528 | 180,161 | |
Advertisement agent services | |||
Accounts receivable | ¥ 158,100 | ¥ 129,400 | ¥ 0 |
Minimum | |||
Terms of accounts receivable | 90 days | ||
Maximum | |||
Terms of accounts receivable | 270 days |
Accounts Receivable, net - Allo
Accounts Receivable, net - Allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movements in the allowance for doubtful accounts | |||
Balance at beginning of the year | ¥ (122,039) | ¥ (124,204) | ¥ (11,413) |
Reversal/(addition) of allowance for credit losses, net | 30,192 | (8,681) | (125,563) |
Write-offs | 8,464 | 10,846 | 12,772 |
Balance at end of the year | (83,383) | ¥ (122,039) | ¥ (124,204) |
Collection of receivables | ¥ 33,300 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayments and Other Current Assets | ||
Deposits | ¥ 5,792 | ¥ 5,758 |
Prepayments of IT services | 1,318 | 907 |
Prepayments of procurement costs | 8,061 | 32,842 |
Others | 988 | 3,105 |
Total | ¥ 16,159 | ¥ 42,612 |
Property and Equipment, net (De
Property and Equipment, net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment, net | |||
Total | ¥ 13,287 | ¥ 25,228 | |
Less: accumulated depreciation | (10,859) | (14,082) | |
Less: impairment | (7,987) | ||
Property and equipment, net | 2,428 | 3,159 | |
Depreciation expense | 1,772 | 2,563 | ¥ 5,549 |
Electronic equipment and computers | |||
Property and equipment, net | |||
Total | 5,312 | 17,532 | |
Office furniture and equipment | |||
Property and equipment, net | |||
Total | 2,943 | 2,725 | |
Leasehold improvement | |||
Property and equipment, net | |||
Total | ¥ 5,032 | ¥ 4,971 |
Long-term investments - Long-te
Long-term investments - Long-term investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term investments | ||
Equity investments accounted for using the measurement alternative | ¥ 58,464 | ¥ 30,000 |
Equity investments accounted for using the equity method | 12,423 | 11,442 |
Investments accounted for at fair value | 66,470 | |
Total | 137,357 | 41,442 |
Beijing Sharetimes Technology Co., Ltd. | ||
Long-term investments | ||
Equity investments accounted for using the measurement alternative | ¥ 48,500 | ¥ 30,000 |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands | 12 Months Ended | |||||
May 31, 2022 CNY (¥) | Mar. 31, 2022 CNY (¥) item | Mar. 31, 2021 CNY (¥) item | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Equity method investments | ||||||
Impairment of long-term investments | ¥ 0 | ¥ 0 | ¥ 0 | |||
Carrying value of equity method investments | 12,423 | 11,442 | ||||
Share of loss from equity method investments | (51) | 5,473 | 23,502 | |||
Carrying value of the equity investment | 58,464 | 30,000 | ||||
Fair value of equity interests | 66,470 | |||||
Long-term investment income/(loss), net | ||||||
Equity method investments | ||||||
Re-measurement gain of equity investments | 18,500 | 0 | ||||
Loss from change in fair value | 2,500 | |||||
36Kr Global Holding (HK) Limited | ||||||
Equity method investments | ||||||
Share of loss from equity method investments | 100 | 5,500 | ¥ 23,500 | |||
Beijing Sharetimes Technology Co., Ltd. | ||||||
Equity method investments | ||||||
Re-measurement gain of equity investments | ¥ 18,500 | |||||
Percentage of investment held | 1.64% | |||||
Number of investors | item | 3 | |||||
Purchase of short-term investments | ¥ 30,000 | |||||
Carrying value of the equity investment | ¥ 48,500 | ¥ 30,000 | ||||
Hangzhou Jialin | ||||||
Equity method investments | ||||||
Percentage of investment held | 7.273% | |||||
Number of investors | item | 1 | |||||
Percentage of equity interest transferred as consideration for investment | 100 | |||||
Fair value of equity interests | ¥ 40,000 | |||||
Gain arising from such investment and disposal | ¥ 38,000 |
Taxes Payable (Details)
Taxes Payable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Taxes Payable | ||
VAT payable | ¥ 9,787 | ¥ 12,060 |
Enterprise income taxes payable | 274 | 80 |
Withholding individual income taxes for employees | 88 | 121 |
Others | 725 | 575 |
Total | ¥ 10,874 | ¥ 12,836 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Payables | ||
Accrued professional fees | ¥ 10,552 | ¥ 11,438 |
Accrued promotion fees | 10,829 | 350 |
Accrued office rental expense | 769 | 177 |
Accrued employee welfare expense, meal and travel expense | 362 | 1,579 |
Guarantee deposits | 280 | 330 |
Withholding employees' social insurance and housing fund | 1,289 | 1,140 |
Others | 3,525 | 2,487 |
Total | ¥ 27,606 | ¥ 17,501 |
Leases - non-cancelable operati
Leases - non-cancelable operating lease agreement (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental information related to operating leases | ||
Operating lease right-of-use assets, net | ¥ 30,911 | ¥ 13,818 |
Operating lease liabilities-current | (31,293) | (16,302) |
Operating lease liabilities-non-current | (15,093) | (586) |
Total operating lease liabilities | ¥ (46,386) | ¥ (16,888) |
Weighted average remaining lease term | 1 year 4 months 2 days | 1 year 1 month 2 days |
Weighted average discount rate | 4.75% | 4.75% |
Leases - operating leases (Deta
Leases - operating leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost | ||
Operating lease cost | ¥ 14,948 | ¥ 15,481 |
Short-term lease cost | 941 | 572 |
Total | ¥ 15,889 | ¥ 16,053 |
Leases - supplemental cash flow
Leases - supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Cash payments for operating leases | ¥ 1,201 | ¥ 12,604 |
Right-of-use assets obtained in exchange for lease obligations | ¥ 30,699 | ¥ 1,971 |
Leases - maturity of operating
Leases - maturity of operating lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Maturity of operating lease liabilities under the Group's non-cancelable operating leases | ||
2023 | ¥ 31,748 | |
2024 | 15,464 | |
2025 | 598 | |
Total lease payment | 47,810 | |
Less: interest | 1,424 | |
Present value of operating lease liabilities | ¥ 46,386 | ¥ 16,888 |
Ordinary Shares (Details)
Ordinary Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 |
Ordinary Shares | ||||
Authorized share capital | $ 50,000 | |||
Authorized share capital (in shares) | 500,000,000 | |||
Par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Shares issued (in shares) | 1 | |||
Number of shares issued under share-based payment arrangement | 27,507,989 | 27,507,989 | 36,281,400 | |
Class A ordinary shares | ||||
Ordinary Shares | ||||
Par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued (in shares) | 907,346,745 | 907,346,745 | ||
Ordinary shares, shares outstanding (in shares) | 895,814,195 | 893,706,595 | ||
Class A ordinary shares | 2019 Incentive Plan | ||||
Ordinary Shares | ||||
Number of shares of common stock outstanding, excluding shares issued to the depositary bank for bulk issuance of ADSs reserved | 878,385,770 | 876,278,170 | ||
Ordinary shares issued to the depositary bank for bulk issuance of ADSs | 17,428,425 | 17,428,425 | ||
Class B ordinary shares | ||||
Ordinary Shares | ||||
Par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued (in shares) | 96,082,700 | 96,082,700 | ||
Ordinary shares, shares outstanding (in shares) | 96,082,700 | 96,082,700 |
Share repurchase program (Detai
Share repurchase program (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | May 06, 2020 shares | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 6,646,700 | 6,646,700 | 12,996,125 | 12,996,125 | |
ADS | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to repurchase | 1,000,000 | ||||
Number of shares repurchased | 265,868 | 265,868 | 519,845 | 519,845 | |
Payments for repurchase of shares | $ 0.9 | ¥ 5.8 | $ 1.7 | ¥ 11.7 | |
Weighted average price | $ / shares | $ 3.3 | $ 3.3 |
Income Taxes - Income tax rates
Income Taxes - Income tax rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes | |||
Income tax rate | 25% | 25% | 25% |
Hong Kong | |||
Income taxes | |||
Income tax rate | 16.50% | ||
Hong Kong | first HK$2 million | |||
Income taxes | |||
Income tax rate | 8.25% | ||
Hong Kong | in excess of HK$2 million | |||
Income taxes | |||
Income tax rate | 16.50% | ||
PRC | |||
Income taxes | |||
Enterprise income tax rate | 25% | ||
Preferential tax rate as High and New Technology Enterprises | 15% |
Income Taxes - Composition of i
Income Taxes - Composition of income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Composition of income tax | |||
Current income tax expense | ¥ 361 | ¥ 155 | ¥ 373 |
Deferred taxation | (53) | 3,391 | |
Total | ¥ 361 | ¥ 102 | ¥ 3,764 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the differences between statutory income tax rate and the effective income tax rate (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation | ||||
Statutory EIT rate | 25% | 25% | 25% | |
Effect of non-deductible expenses | 16.97% | (6.60%) | (5.78%) | |
Tax incentives for research and development expense | (49.14%) | 9% | 2.08% | |
Tax incentives for wages of disabled staff | (0.16%) | 0.05% | 0.02% | |
Preferential tax rate | (4.20%) | 0.48% | 1.15% | |
Change in valuation allowance | 2.52% | (25.55%) | (23.19%) | |
Tax rate difference from statutory rate in other jurisdictions | 10.44% | (2.49%) | (0.72%) | |
Others | 0.07% | |||
Effective income tax rate | 1.43% | (0.11%) | (1.37%) | |
Percentage of tax incentives on research and development expenses | 200% | 175% | 175% | 175% |
Income Taxes - Composition of d
Income Taxes - Composition of deferred tax assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets-non-current: | ||
Net operating tax losses carry forwards | ¥ 51,541 | ¥ 46,031 |
Allowances of doubtful accounts | 12,564 | 18,702 |
Investment loss | 375 | |
Property and equipment impairment | 1,997 | |
Others | 299 | |
Total deferred tax assets | 64,480 | 67,029 |
Less: valuation allowance | (61,617) | (67,029) |
Total deferred tax assets, net | 2,863 | |
Deferred tax liabilities-non-current: | ||
Unrealized investment gain | (2,863) | |
Total deferred tax liabilities | (2,863) | |
Accumulated operating losses | ¥ 234,000 | |
Accumulated operating losses expire in 2024 | 1,000 | |
Accumulated operating losses expire in 2025 | 55,000 | |
Accumulated operating losses expire in 2026 | 55,000 | |
Accumulated operating losses expire after 2026 | ¥ 187,000 | |
HNTE | ||
Deferred tax liabilities-non-current: | ||
Operating loss carryforward period before legislative release in 2018 | 5 years | |
Operating loss carryforward period after legislative release in 2018 | 10 years |
Income Taxes - Withholding inco
Income Taxes - Withholding income tax (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Outside of China | |
Income taxes | |
Withholding income tax rate on dividends distributed by a FIE | 10% |
Minimum | Outside of China | |
Income taxes | |
Percentage of shares owned by foreign investors | 25% |
Minimum | Hong Kong | |
Income taxes | |
Withholding income tax rate on dividends distributed by a FIE | 5% |
Share-based Compensation - 2019
Share-based Compensation - 2019 Incentive Plan (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 CNY (¥) shares | Sep. 30, 2019 $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2019 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Jun. 30, 2021 shares | |
2019 Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares authorized under the plan (in shares) | 137,186,000 | 137,186,000 | |||||||||
Incremental compensation cost | ¥ | ¥ 0 | ||||||||||
Assumptions | |||||||||||
Expected volatility | 51.97% | 50.22% | |||||||||
Contractual term (in year) | 10 years | 10 years | 10 years | ||||||||
Risk-free interest rate | 3.57% | 1.66% | |||||||||
Number of shares | |||||||||||
Beginning balance | 94,830,430 | 88,240,084 | 126,402,925 | ||||||||
Granted during the year | 3,167,881 | 32,765,413 | 5,125,000 | ||||||||
Exercised during the year | (2,107,600) | (18,031,675) | (36,613,500) | ||||||||
Forfeited / Cancelled during the year | (1,861,733) | (8,143,392) | (6,674,341) | ||||||||
Ending balance | 94,028,978 | 94,830,430 | 88,240,084 | 126,402,925 | |||||||
Exercisable at the end | 64,686,080 | 64,686,080 | 64,686,080 | ||||||||
Weighted average exercise price US$/Share | |||||||||||
Outstanding at beginning of period | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Granted during the year | $ / shares | 0.0001 | 0.0001 | 0.0001 | ||||||||
Exercised during the year | $ / shares | 0.0001 | 0.0001 | 0.0001 | ||||||||
Forfeited during the year | $ / shares | 0.0001 | 0.0001 | 0.0001 | ||||||||
Outstanding at end of period | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Aggregate intrinsic value | |||||||||||
Aggregate intrinsic value US$ | $ | $ 4,324,268 | $ 9,847,593 | $ 37,352,064 | $ 3,881,516 | |||||||
Weighted average remaining contractual years | |||||||||||
Weighted average remaining contractual years | 7 years 6 months 10 days | 8 years 5 months 8 days | 8 years 9 months 7 days | 9 years 8 months 4 days | |||||||
Unrecognized share-based compensation expenses, recognition period | 11 months 1 day | ||||||||||
Weighted average grant date fair value of share options | ¥ / shares | ¥ 0.26 | ¥ 0.54 | ¥ 0.78 | ||||||||
Share-based compensation expenses recognized for share options | ¥ | ¥ 12,380 | ¥ 15,020 | ¥ 39,280 | ||||||||
Unrecognized share-based compensation expenses | ¥ | ¥ 9,270 | $ 9,270 | |||||||||
2019 Incentive Plan | Minimum | |||||||||||
Assumptions | |||||||||||
Expected volatility | 49.29% | ||||||||||
Risk-free interest rate | 1.38% | ||||||||||
2019 Incentive Plan | Maximum | |||||||||||
Assumptions | |||||||||||
Expected volatility | 50.47% | ||||||||||
Risk-free interest rate | 1.45% | ||||||||||
2019 Incentive Plan | Class A ordinary shares | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares authorized under the plan (in shares) | 11,404,247 | 11,404,247 | 11,404,247 | ||||||||
2014 and 2016 Incentive Plan | |||||||||||
Number of shares | |||||||||||
Forfeited / Cancelled during the year | (91,548,120) | ||||||||||
Updated Incentive Plan 2019 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares authorized under the plan (in shares) | 162,186,000 | ||||||||||
Employee options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period (in years) | 4 years | ||||||||||
Expiration period (in years) | 10 years | ||||||||||
Replacement Share Options | 2019 Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of replaced share options | 0 | 7,475,213 | |||||||||
Certain Directors And Senior Management | 2019 Incentive Plan | |||||||||||
Number of shares | |||||||||||
Granted during the year | 3,167,881 | 32,765,413 | 5,125,000 |
Basic and Diluted Net Income__3
Basic and Diluted Net Income/(Loss) Per Share - Net loss per share in accordance with ASC 260 (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income/(loss) per ordinary share-basic: Numerator: | |||
Net income/(loss) attributable to 36Kr Holdings Inc | ¥ 22,637 | ¥ (90,609) | ¥ (279,342) |
Net loss/(income) attributable to non-controlling interests | (694) | 1,038 | (889) |
Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic | ¥ 21,943 | ¥ (89,571) | ¥ (280,231) |
Net income/(loss) per ordinary share-basic: Denominator: | |||
Denominator used in computing net loss per share - basic (in shares) | 1,034,547,219 | 1,025,068,349 | 1,019,316,944 |
Weighted average number of ordinary shares outstanding | ¥ 0.021 | ¥ (0.087) | ¥ (0.275) |
Net income/(loss) per ordinary share-diluted: Numerator: | |||
Net income/(loss) attributable to ordinary shareholders of 36Kr Holdings Inc.-basic | ¥ 21,943 | ¥ (89,571) | ¥ (280,231) |
Net income/(loss) attributable to ordinary shareholders - diluted | ¥ 21,943 | ¥ (89,571) | ¥ (280,231) |
Net income/(loss) per ordinary share-diluted: Denominator: | |||
Denominator used in computing net loss per share - basic (in shares) | 1,034,547,219 | 1,025,068,349 | 1,019,316,944 |
Denominator used in computing net loss per share - diluted ((in shares) | 1,034,547,219 | 1,025,068,349 | 1,019,316,944 |
Net loss per ordinary share-diluted (in CNY per share) | ¥ 0.021 | ¥ (0.087) | ¥ (0.275) |
Basic and Diluted Net Income__4
Basic and Diluted Net Income/(Loss) Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic and Diluted Net Income/(Loss) Per Share | |||
Antidilutive securities, (in shares) | 0 | 0 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | |||
Amounts due to related parties | ¥ 312 | ¥ 1,328 | |
Amount due from inter-company entities | 858 | 3,630 | |
Venture Glory | |||
Related Party Transactions | |||
Revenue from transactions with related parties | 0 | 1,700 | ¥ 800 |
Amount due from inter-company entities | 1,300 | 1,300 | |
Shanghai Xuanke | |||
Related Party Transactions | |||
Purchases from related party | 300 | 1,100 | |
Amounts due to related parties | 20,000 | 1,200 | |
Amount due from inter-company entities | 2,000 | ||
Interest income from related party | ¥ 3 | 47 | |
Short term loan offered to related party | ¥ 2,000 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Net Assets | ||
Appropriation of after-tax income to general reserve fund or statutory surplus reserve fund (as a percentage) | 10% | |
Transfer of assets, restricted portion | ¥ 161,680 | ¥ 134,030 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - Investment in Beijing Che Mai Technology Co., Ltd. ¥ in Millions | Feb. 28, 2023 CNY (¥) shares |
Subsequent Event | |
Investment subscribed newly issued ordinary shares | shares | 332,507 |
Total consideration | ¥ | ¥ 3 |
Investment ownership percentage | 3% |
Condensed Financial Informati_3
Condensed Financial Information of the Company Condensed Balance Sheet (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | ¥ 142,511 | ¥ 96,965 |
Receivables due from related parties | 858 | 3,630 |
Prepayments and other current assets | 16,159 | 42,612 |
Non-current assets: | ||
Total assets | 571,371 | 501,735 |
Current liabilities: | ||
Accrued liabilities and other payables | 27,606 | 17,501 |
Total liabilities | 225,987 | 194,470 |
Commitments and Contingencies (Note 18) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,061,491 | 2,049,448 |
Treasury stock (US$ 0.0001 par value; 16,201,618 shares and 14,094,018 shares as of December 31, 2021 and 2022, respectively) | (12,010) | (13,598) |
Accumulated deficit | (1,706,209) | (1,728,152) |
Accumulated other comprehensive loss | (5,860) | (8,987) |
Total 36Kr Holdings Inc.'s shareholders' equity | 338,106 | 299,405 |
Total liabilities and shareholders' equity | 571,371 | 501,735 |
Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 628 |
Class B ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 66 | 66 |
Parent company | Reportable legal entities | ||
Current assets: | ||
Cash and cash equivalents | 23,365 | 31,833 |
Amount due from inter-company entities | 515 | 468 |
Receivables due from related parties | 52 | 10 |
Prepayments and other current assets | 107 | 180 |
Non-current assets: | ||
Investments in subsidiaries, VIE and subsidiaries of VIE | 333,418 | 285,624 |
Total assets | 357,457 | 318,115 |
Current liabilities: | ||
Amount due to inter-company entities | 16,149 | 14,463 |
Accrued liabilities and other payables | 3,202 | 4,247 |
Total liabilities | 19,351 | 18,710 |
Commitments and Contingencies (Note 18) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,061,491 | 2,049,448 |
Treasury stock (US$ 0.0001 par value; 16,201,618 shares and 14,094,018 shares as of December 31, 2021 and 2022, respectively) | (12,010) | (13,598) |
Accumulated deficit | (1,706,209) | (1,728,152) |
Accumulated other comprehensive loss | (5,860) | (8,987) |
Total 36Kr Holdings Inc.'s shareholders' equity | 338,106 | 299,405 |
Total liabilities and shareholders' equity | 357,457 | 318,115 |
Parent company | Reportable legal entities | Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 628 |
Parent company | Reportable legal entities | Class B ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | ¥ 66 | ¥ 66 |
Condensed Financial Informati_4
Condensed Financial Information of the Company Condensed Balance Sheet (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 |
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Treasury stock (in shares) | 14,094,018 | 16,201,618 | |
Class A ordinary shares | |||
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized (in shares) | 4,903,917,300 | 4,903,917,300 | |
Ordinary shares, shares issued (in shares) | 907,346,745 | 907,346,745 | |
Ordinary shares, shares outstanding (in shares) | 895,814,195 | 893,706,595 | |
Class B ordinary shares | |||
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized (in shares) | 96,082,700 | 96,082,700 | |
Ordinary shares, shares issued (in shares) | 96,082,700 | 96,082,700 | |
Ordinary shares, shares outstanding (in shares) | 96,082,700 | 96,082,700 | |
Parent company | Reportable legal entities | |||
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | |
Treasury stock (in shares) | 14,094,018 | 16,201,618 | |
Parent company | Reportable legal entities | Class A ordinary shares | |||
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized (in shares) | 4,903,917,300 | 4,903,917,300 | |
Ordinary shares, shares issued (in shares) | 907,346,745 | 907,346,745 | |
Ordinary shares, shares outstanding (in shares) | 895,814,195 | 893,706,595 | |
Parent company | Reportable legal entities | Class B ordinary shares | |||
Condensed Balance Sheets | |||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized (in shares) | 96,082,700 | 96,082,700 | |
Ordinary shares, shares issued (in shares) | 96,082,700 | 96,082,700 | |
Ordinary shares, shares outstanding (in shares) | 96,082,700 | 96,082,700 |
Condensed Financial Informati_5
Condensed Financial Information of the Company Condensed Statement of Operations and Comprehensive Income/(Loss) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses: | |||
Sales and marketing expenses | ¥ (122,069) | ¥ (143,887) | ¥ (140,672) |
General and administrative expenses | (52,072) | (90,636) | (212,411) |
Total operating expenses | (229,186) | (282,041) | (392,710) |
Loss from operations | (44,537) | (94,106) | (267,318) |
Other income/(expenses): | |||
Share of income/(loss) from subsidiaries, VIE and subsidiaries of VIE | 51 | (5,473) | (23,502) |
Others, net | 8,055 | 3,283 | 3,280 |
Income/(loss) before income tax | 22,998 | (90,507) | (275,578) |
Income tax expense | 361 | 102 | 3,764 |
Net income/(loss) | 22,637 | (90,609) | (279,342) |
Net income /(loss) attributable to 36Kr Holdings Inc.'s ordinary shareholders | 21,943 | (89,571) | (280,231) |
Parent company | Reportable legal entities | |||
Operating expenses: | |||
Sales and marketing expenses | (282) | (55) | |
General and administrative expenses | (11,602) | (9,269) | (9,439) |
Total operating expenses | (11,602) | (9,551) | (9,494) |
Loss from operations | (11,602) | (9,551) | (9,494) |
Other income/(expenses): | |||
Share of income/(loss) from subsidiaries, VIE and subsidiaries of VIE | 31,888 | (80,559) | (272,297) |
Interest income | 368 | 64 | 983 |
Interest expense | (189) | (70) | (14) |
Others, net | 1,478 | 545 | 591 |
Income/(loss) before income tax | 21,943 | (89,571) | (280,231) |
Net income/(loss) | 21,943 | (89,571) | (280,231) |
Net income /(loss) attributable to 36Kr Holdings Inc.'s ordinary shareholders | ¥ 21,943 | ¥ (89,571) | ¥ (280,231) |
Condensed Financial Informati_6
Condensed Financial Information of the Company Condensed Statement of Cash Flows (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | ¥ (4,989) | ¥ 194,961 | ¥ (17,125) |
Net cash used in investing activities | 43,311 | (157,997) | (64,289) |
Net cash provided by/(used in) financing activities | 5,124 | (23) | (32,837) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | 2,200 | (822) | (2,780) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 45,646 | 36,119 | (117,031) |
Cash, cash equivalents and restricted cash at beginning of the year | 96,965 | 60,846 | 177,877 |
Cash, cash equivalents and restricted cash at end of the year | 142,611 | 96,965 | 60,846 |
Parent company | Reportable legal entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | (12,381) | (9,857) | (3,298) |
Net cash used in investing activities | (77,536) | ||
Net cash provided by/(used in) financing activities | (5,773) | (27,360) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | 3,913 | (1,047) | (2,334) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (8,468) | (16,677) | (110,528) |
Cash, cash equivalents and restricted cash at beginning of the year | 31,833 | 48,510 | 159,038 |
Cash, cash equivalents and restricted cash at end of the year | ¥ 23,365 | ¥ 31,833 | ¥ 48,510 |
Condensed Financial Informati_7
Condensed Financial Information of the Company information of the revision (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | ¥ 43,311 | ¥ (157,997) | ¥ (64,289) |
Net cash provided by financing activities | ¥ 5,124 | (23) | (32,837) |
Parent company | Reportable legal entities | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | (77,536) | ||
Net cash provided by financing activities | ¥ (5,773) | ¥ (27,360) |