BEIJING, June 1, 2022
/PRNewswire/ -- 36Kr Holdings Inc. ("36Kr" or the
"Company" or "We") (NASDAQ: KRKR), a prominent brand and a
pioneering platform dedicated to serving New Economy participants
in China, today announced its
unaudited financial results for the first quarter ended
March 31, 2022.
First Quarter 2022 Highlights
- Number of followers[1] as of March 31, 2022 reached 24.1 million, increased by
25.5% from 19.2 million as of March 31,
2021.
- Total revenues increased by 13.9% to RMB49.6 million (US$7.8
million) in the first quarter of 2022, from RMB43.5 million in the same period of 2021.
- Revenues from online advertising services increased
by 13.1% to RMB37.6 million (US$5.9
million) in the first quarter of 2022, from RMB33.2 million in the same period of 2021.
- Revenues from enterprise value-added
services increased by 35.4% to RMB9.3 million (US$1.5
million) in the first quarter of 2022, from RMB6.9 million in the same period of 2021.
- Gross profit increased by 10.0% to RMB25.7 million (US$4.1
million) in the first quarter of 2022, from RMB23.4 million in the same period of 2021.
- Net income was RMB32.6
million (US$5.1 million) in
the first quarter of 2022, compared to net loss of RMB40.5 million in the same period of
2021.
[1] "Number of
followers" refers to the aggregate number of followers across the
official accounts we own and/or operate on various social media and
online platforms, including but not limited to Wexin, Weibo, Zhihu,
Toutiao, Xinhua Net, Douyin and Bilibili.
|
Selected Operating Data
|
|
For the Three Months
Ended
March
31,
|
|
|
2021
|
|
2022
|
Online advertising
services
|
|
|
|
|
Number of online
advertising services end customers
|
|
132
|
|
135
|
Average revenue per
online advertising services end
customer (RMB'000)[2]
|
|
251.7
|
|
278.5
|
|
|
|
|
|
Enterprise
value-added services
|
|
|
|
|
Number of enterprise
value-added services end customers
|
|
28
|
|
35
|
Average revenue per
enterprise value-added services end
customer (RMB'000)[3]
|
|
246.3
|
|
266.8
|
|
|
|
|
|
Subscription
services
|
|
|
|
|
Number of individual
subscribers
|
|
172
|
|
220
|
Average revenue per
individual subscriber (RMB)[4]
|
|
10,008.8
|
|
92.5
|
|
|
|
|
|
Number of institutional
investors
|
|
57
|
|
88
|
Average revenue per
institutional investor (RMB'000)[5]
|
|
29.7
|
|
30.1
|
|
|
|
|
|
[2] Equals revenues
generated from online advertising services for a period divided by
the number of online advertising services end customers in the same
period.
|
[3] Equals revenues
generated from enterprise value-added services for a period divided
by the number of enterprise value-added services end customers in
the same period.
|
[4] Equals revenues
generated from individual subscription services for a period
divided by the number of individual subscribers in the same
period.
|
[5] Equals revenues
generated from institutional investor subscription services for a
period divided by the number of institutional investors in the same
period
|
Mr. Dagang Feng, co-chairman and
CEO of 36Kr, commented, "We kicked off the year with a robust first
quarter results despite the headwinds of recurring COVID-19
outbreaks and challenging external environment, delivering a
double-digit top-line growth as well as yet another quarter of
profitability in the first quarter of 2022. We are also encouraged
to see our user engagement metrics continue to improve,
demonstrating our enhanced brand influence and elevated value
proposition to our consumers. As of the end of the first quarter of
2022, our followers exceeded 24 million, representing an increase
of 25% year-over-year. Looking ahead, we will remain focused on our
core competencies in delivering high-quality content and service
offerings while also creating new programs and products to expand
our business boundaries. Riding on China's nationwide digital transformation and
upgrade, we believe we are well-positioned to seize the immense
opportunities in the New Economy-driven growth prospects and scale
new heights as we start the next chapter of our development."
Ms. Lin Wei, chief financial
officer of 36Kr, added, "Our strong first quarter results set a
positive keynote for the fiscal year 2022, with a 14%
year-over-year growth in total revenues and a record high quarterly
net income since our IPO of RMB33
million. While our advertising business continued its strong
growth trajectory, increasing 13% year-over-year, our enterprise
value-added services also recorded a remarkable growth of 35%
year-over-year. In addition, our disciplined cost control
measures, strengthened efforts in account receivable collection, as
well as our strategic refocus on core business and disposal of
certain lingering assets all contributed to our significantly
improved profitability during the quarter. Moving forward, we will
continue to be the torchbearer of the New-Economy, cultivating our
ecosystem that serves diverse business communities and user base,
while in the meantime also broadening our commercialization
approach to empower our partners to achieve more and prosper
together."
First Quarter 2022 Financial Results
Total revenues increased by 13.9% to RMB49.6 million (US$7.8
million) in the first quarter of 2022, from RMB43.5 million in the same period of
2021.
- Online advertising services revenues increased by
13.1% to RMB37.6 million
(US$5.9 million) in the first quarter
of 2022, from RMB33.2 million in the
same period of 2021. The increase was primarily attributable to
more innovative marketing solutions we provided to our customers.
The number of advertising customers and the average revenue per
advertising customer both increased in the first quarter of
2022.
- Enterprise value-added services revenues increased by
35.4% to RMB9.3 million (US$1.5 million) in the first quarter of 2022,
compared to RMB6.9 million in the
same period of 2021.
- Subscription services revenues were RMB2.7 million (US$0.4
million) in the first quarter of 2022, compared to
RMB3.4 million in the same period of
2021. The decrease was primarily attributable to the decrease in
revenues from individual subscriptions, as some of our offline
training programs were cancelled or delayed due to the resurgence
of COVID-19.
Cost of revenues was RMB23.9
million (US$3.8 million) in
the first quarter of 2022, compared to RMB20.2 million in the same period of
2021. This increase was generally in line with the growth of
the Company's business. Staff costs were the main contributor to
the increase in cost of revenues.
Gross profit increased by 10.0% to RMB25.7 million (US$4.1
million) in the first quarter of 2022, compared to
RMB23.4 million in the same
period of 2021. Gross profit margin was 51.8% in the first
quarter of 2022, compared to 53.7% in the same period of 2021.
Operating expenses were RMB33.4 million (US$5.3 million) in the first quarter of
2022, compared to RMB64.8 million in the same period of
2021.
- Sales and marketing expenses were RMB29.7 million
(US$4.7 million) in the first quarter
of 2022, compared to RMB35.7 million
in the same period of 2021. The decrease was primarily attributable
to the decrease in payroll-related expenses and marketing
expenses.
- General and administrative expenses were RMB(10.0) million (US$(1.6) million) in the first quarter of 2022,
compared to RMB20.2 million in
the same period of 2021. The fluctuation was primarily attributable
to the release of the allowance for credit losses of RMB32.9 million, partially offset by the increase
in payroll-related expenses. The release of allowance for credit
losses was mainly due to collection of RMB36.6 million long-aged accounts receivable
during the quarter, as we continuously increase our efforts in
accounts receivable collection.
- Research and development expenses were RMB13.8 million (US$2.2
million) in the first quarter of 2022, compared to
RMB9.0 million in the same period of
2021. The increase was primarily attributable to the increase in
payroll-related expenses, as we bolstered our research and
development capabilities, especially for 36Kr Enterprise Review
Platform.
Share-based compensation expenses recognized in cost of
revenues, sales and marketing expenses, research and development
expenses, as well as general and administrative expenses totaled
RMB4.1 million (US$0.6 million) in the first quarter of 2022,
compared to RMB2.7 million in the
same period of 2021. The increase was primarily due to the
grant of new share options.
Other income was RMB40.3
million (US$6.4 million) in
the first quarter of 2022, compared to RMB1.0 million in the same period of 2021. In
March 2022, the Company, as one of
the investors in the round B financing of Hangzhou Jialin
Information Technology Co., Ltd. ("Hangzhou Jialin"), acquired its
7.273% equity interests by transferring the 100% equity interests
the Company held in Beijing Dianqier Creative Interactive Media
Culture Co., Ltd. ("Dianqier") to Hangzhou Jialin, which is a fresh
produce supply chain solution provider in China. The subscription price is the same for
the Company and other independent investors in this financing
round. The fair value of equity interests the Company acquired is
RMB 40 million. The Company
recognized approximately RMB 38.0
million of gain arising from such investment and disposal in
the first quarter of 2022.
Income tax credit was RMB5.0
thousand (US$1.0 thousand) in the first quarter of
2022, compared to RMB6.0 thousand in
the same period of 2021.
Net income was RMB32.6
million (US$5.1 million) in
the first quarter of 2022, compared to net loss of RMB40.5 million in the same period of 2021.
Non-GAAP adjusted net income[6] was RMB36.7 million (US$5.8 million) in the first quarter of
2022, compared to net loss of RMB37.8
million in the same period of 2021.
Net income attributable to 36Kr Holdings Inc.'s ordinary
shareholders was RMB33.0 million (US$5.2 million) in the first quarter of
2022, compared to net loss attributable to 36Kr Holdings Inc.'s
ordinary shareholders of RMB39.5
million in the same period of 2021.
Basic and diluted net income per ADS were both
RMB0.802 (US$0.126) in the first quarter of 2022, compared
to basic and diluted net loss per ADS of RMB0.938 in the same period of 2021.
[6] Non-GAAP adjusted income/(loss)
represents net income/(loss) excluding share-based compensation
expenses
Certain Balance Sheet Items
As of March 31, 2022, the Company
had cash, cash equivalents and short-term investments of
RMB171.1 million (US$27.0 million), compared to RMB216.1 million as of December 31, 2021. The decrease was mainly
attributable to payment of year-end employee bonus and benefits, as
well as small-sized long-term investments in several New-Economy
start-up companies in the first quarter of 2022.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on,
June 1 2022 (8:00 PM Beijing/Hong Kong Time on June 1, 2022). Details for the conference call
are as follows:
Event Title:
|
36Kr Holdings Inc.
First Quarter 2022 Earnings Conference Call
|
Conference
ID:
|
8429308
|
Registration
Link:
|
http://apac.directeventreg.com/registration/event/8429308
|
All participants must use the link provided above to complete
the online registration process 20 minutes in advance of the
conference call. Upon registering, each participant will receive a
set of participant dial-in number, Direct Event passcode, and a
unique registrant ID, which will be used to join the conference
call.
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
http://ir.36kr.com.
A replay of the conference call will be accessible approximately
two hours after the conclusion of the live call until June 8, 2022, by dialing the following telephone
numbers:
United
States:
|
+1-855-452-5696
|
International:
|
+61-2-8199-0299
|
Hong Kong,
China:
|
800-963-117
|
Mainland
China:
|
400-
820-9035
|
Replay Access
Code:
|
8429308
|
About 36Kr Holdings Inc.
36Kr Holdings Inc. is a prominent brand and a pioneering
platform dedicated to serving New Economy participants in
China with the mission of
empowering New Economy participants to achieve more. The Company
started its business with high-quality New Economy-focused content
offerings, covering a variety of industries in China's New Economy with diverse distribution
channels. Leveraging traffic brought by high-quality content, the
Company has expanded its offerings to business services, including
online advertising services, enterprise value-added services and
subscription services to address the evolving needs of New Economy
companies and upgrading needs of traditional companies. The Company
is supported by comprehensive database and strong data analytics
capabilities. Through diverse service offerings and the significant
brand influence, the Company is well-positioned to continuously
capture the high growth potentials of China's New Economy.
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses two
non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA,
as supplemental measures to review and assess its operating
performance. The presentation of these two non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with U.S. GAAP. The Company presents these non-GAAP
financial measures because they are used by the Company's
management to evaluate its operating performance and formulate
business plans. The Company also believes that the use of these
non-GAAP measures facilitates investors' assessment of its
operating performance.
These non-GAAP financial measures are not defined under U.S.
GAAP and are not presented in accordance with U.S. GAAP. These
non-GAAP financial measures have limitations as analytical tools.
One of the key limitations of using these non-GAAP financial
measures is that they do not reflect all items of income and
expense that affect our operations. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited.
The Company compensates for these limitations by reconciling
these non-GAAP financial measures to the nearest U.S. GAAP
performance measure, all of which should be considered when
evaluating the Company performance. The Company encourages
investors to review its financial information in its entirety and
not rely on a single financial measure.
Adjusted net loss represents net loss excluding share-based
compensation expenses.
Adjusted EBITDA represents adjusted net income/(loss) before
interest income, interest expenses, income tax expense/(credit),
depreciation of property and equipment and amortization of
intangible assets.
For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of GAAP and
non-GAAP results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from
Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made
at a rate of RMB6.3393 to
US$1.00, the exchange rate set forth
in the H.10 statistical release of the Federal Reserve Board on of
March 31, 2022.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's goal and strategies; the Company's future business
development, results of operations and financial condition;
relevant government policies and regulations relating to our
business and industry; the Company's expectations regarding the use
of proceeds from this offering; the Company's expectations
regarding demand for, and market acceptance of, its services; the
Company's ability to maintain and enhance its brand; the Company's
ability to provide high-quality content in a timely manner to
attract and retain users; the Company's ability to retain and hire
quality in-house writers and editors; the Company's ability to
maintain cooperation with third-party professional content
providers; the Company's ability to maintain relationship with
third-party platforms; general economic and business condition in
China; possible disruptions in
commercial activities caused by natural or human-induced disasters;
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks is included in
the Company's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and the Company undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
In China:
36Kr Holdings Inc.
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com
The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: 36Kr@tpg-ir.com
36Kr Holdings
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
2021
|
2022
|
2022
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
96,965
|
|
128,387
|
|
20,253
|
|
Short‑term investments
|
119,140
|
|
42,713
|
|
6,738
|
|
Accounts
receivable, net
|
180,161
|
|
184,330
|
|
29,077
|
|
Receivables due from related parties
|
3,630
|
|
1,563
|
|
247
|
|
Prepayments and other current assets
|
42,612
|
|
41,927
|
|
6,614
|
|
Total current assets
|
442,508
|
|
398,920
|
|
62,929
|
|
Non‑current
assets:
|
|
|
|
|
|
|
Property
and equipment, net
|
3,159
|
|
2,942
|
|
464
|
|
Intangible assets, net
|
808
|
|
778
|
|
123
|
|
Long-term investments
|
41,442
|
|
88,210
|
|
13,915
|
|
Operating lease right-of-use assets, net
|
13,818
|
|
11,199
|
|
1,767
|
|
Total non‑current assets
|
59,227
|
|
103,129
|
|
16,269
|
|
Total assets
|
501,735
|
|
502,049
|
|
79,198
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
56,266
|
|
43,114
|
|
6,801
|
|
Salary
and welfare payables
|
55,788
|
|
32,961
|
|
5,199
|
|
Taxes
payable
|
12,836
|
|
10,540
|
|
1,663
|
|
Deferred
revenue
|
28,863
|
|
33,982
|
|
5,361
|
|
Amounts
due to related parties
|
1,328
|
|
10
|
|
2
|
|
Accrued
liabilities and other payables
|
17,501
|
|
17,156
|
|
2,706
|
|
Short-term bank loan
|
5,000
|
|
5,000
|
|
789
|
|
Operating lease liabilities
|
16,302
|
|
16,537
|
|
2,609
|
|
Total current liabilities
|
193,884
|
|
159,300
|
|
25,130
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Operating lease liabilities
|
586
|
|
625
|
|
99
|
|
Total non-current liabilities
|
586
|
|
625
|
|
99
|
|
Total liabilities
|
194,470
|
|
159,925
|
|
25,229
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Ordinary
shares
|
694
|
|
694
|
|
109
|
|
Treasury
stock
|
(13,598)
|
|
(13,598)
|
|
(2,145)
|
|
Additional paid-in capital
|
2,049,448
|
|
2,054,947
|
|
324,160
|
|
Accumulated deficit
|
(1,728,152)
|
|
(1,695,170)
|
|
(267,406)
|
|
Accumulated other comprehensive loss
|
(8,987)
|
|
(9,154)
|
|
(1,444)
|
|
Total 36Kr Holdings Inc.'s shareholders'
equity
|
299,405
|
|
337,719
|
|
53,274
|
|
Non-controlling interests
|
7,860
|
|
4,405
|
|
695
|
|
Total shareholders' equity
|
307,265
|
|
342,124
|
|
53,969
|
|
Total liabilities and shareholders'
equity
|
501,735
|
|
502,049
|
|
79,198
|
|
36Kr Holdings
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
|
|
Three Months
Ended
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
2021
|
2022
|
2022
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
Revenues:
|
|
|
|
|
|
|
Online
advertising services
|
33,230
|
|
37,596
|
|
5,931
|
|
Enterprise
value-added services
|
6,896
|
|
9,337
|
|
1,473
|
|
Subscription services
|
3,415
|
|
2,673
|
|
422
|
|
Total
revenues
|
43,541
|
|
49,606
|
|
7,826
|
|
Cost of
revenues
|
(20,165)
|
|
(23,889)
|
|
(3,768)
|
|
Gross
profit
|
23,376
|
|
25,717
|
|
4,058
|
|
Operating
expenses:
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(35,700)
|
|
(29,684)
|
|
(4,683)
|
|
General
and administrative expenses
|
(20,159)
|
|
10,004
|
|
1,578
|
|
Research
and development expenses
|
(8,974)
|
|
(13,769)
|
|
(2,172)
|
|
Total operating
expenses
|
(64,833)
|
|
(33,449)
|
|
(5,277)
|
|
Loss from
operations
|
(41,457)
|
|
(7,732)
|
|
(1,219)
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
Share of
loss from equity method investments
|
(1,981)
|
|
(686)
|
|
(108)
|
|
Gain on
disposal of a subsidiary
|
-
|
|
38,019
|
|
5,997
|
|
Short-term
investment income
|
980
|
|
628
|
|
99
|
|
Government
grant
|
1,786
|
|
791
|
|
125
|
|
Others,
net
|
210
|
|
1,596
|
|
252
|
|
(Loss)/income before
income tax
|
(40,462)
|
|
32,616
|
|
5,146
|
|
Income tax
credit
|
6
|
|
5
|
|
1
|
|
Net
(loss)/income
|
(40,456)
|
|
32,621
|
|
5,147
|
|
Net loss
attributable to non-controlling interests
|
927
|
|
361
|
|
57
|
|
Net (loss)/income
attributable to 36Kr Holdings
Inc.'s ordinary shareholders
|
(39,529)
|
|
32,982
|
|
5,204
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(40,456)
|
|
32,621
|
|
5,147
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
338
|
|
(167)
|
|
(26)
|
|
Total other
comprehensive income/(loss)
|
338
|
|
(167)
|
|
(26)
|
|
Total comprehensive
(loss)/income
|
(40,118)
|
|
32,454
|
|
5,121
|
|
Net loss
attributable to non-controlling interests
|
927
|
|
361
|
|
57
|
|
Comprehensive
(loss)/income attributable to 36Kr
Holdings Inc.'s ordinary
shareholders
|
(39,191)
|
|
32,815
|
|
5,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
per ordinary share (RMB)
|
|
|
|
|
|
Basic
|
(0.038)
|
|
0.032
|
|
0.005
|
Diluted
|
(0.038)
|
|
0.032
|
|
0.005
|
Net (loss)/income
per ADS (RMB)
|
|
|
|
|
|
Basic
|
(0.938)
|
|
0.802
|
|
0.126
|
Diluted
|
(0.938)
|
|
0.802
|
|
0.126
|
Weighted average
number of ordinary shares used in
per share calculation
|
|
|
|
|
|
Basic
|
1,029,381,488
|
|
1,028,586,020
|
|
1,028,586,020
|
Diluted
|
1,029,381,488
|
|
1,028,586,020
|
|
1,028,586,020
|
Weighted average
number of ADS used in per ADS
calculation
|
|
|
|
|
|
Basic
|
41,175,260
|
|
41,143,441
|
|
41,143,441
|
Diluted
|
41,175,260
|
|
41,143,441
|
|
41,143,441
|
36Kr Holdings
Inc.
|
UNAUDITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
2021
|
2022
|
2022
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(40,456)
|
|
32,621
|
|
5,147
|
|
Share-based compensation expenses
|
2,667
|
|
4,112
|
|
649
|
|
Non-GAAP adjusted
net (loss)/income
|
(37,789)
|
|
36,733
|
|
5,796
|
|
Interest
income, net
|
(105)
|
|
(133)
|
|
(21)
|
|
Income tax
credit
|
(6)
|
|
(5)
|
|
(1)
|
|
Depreciation and amortization expenses
|
654
|
|
473
|
|
75
|
|
Non-GAAP adjusted
EBITDA
|
(37,246)
|
|
37,068
|
|
5,849
|
|
View original
content:https://www.prnewswire.com/news-releases/36kr-holdings-inc-reports-first-quarter-2022-unaudited-financial-results-301558680.html
SOURCE 36Kr Holdings Inc.