KRKR
$4.25
36Kr Holdings Inc ADR
($.16)
(3.63%)
Earnings Details
Quarter December 2019
Wednesday, March 11, 2020 6:00:00 AM
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Summary

36Kr Holdings Inc ADR (KRKR) Recent Earnings

36Kr Holdings Inc ADR (KRKR) reported Quarter December 2019 earnings of $0.10 per share on revenue of $46.4 million..

Results
Reported Earnings
$0.10
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$46.4 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

36Kr Holdings Inc. Reports Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results

BEIJING, March 11, 2020 (GLOBE NEWSWIRE) -- 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 fourth quarter and fiscal year 2019 ended December 31, 2019.

Fourth Quarter 2019 Operational and Financial Highlights

  • Average monthly page views (“PV”) for the twelve-month period ended December 31, 2019 was 425.4 million, up 116.8% compared to 196.2 million for the twelve-month period ended December 31, 2018.
  • Total revenues increased by 123.6% to RMB322.8 million (US$46.4 million) in the fourth quarter of 2019, from RMB144.4 million in the same period of 2018.
  • Online advertising services revenues increased by 110.7% to RMB149.9 million (US$21.5 million) in the fourth quarter of 2019, from RMB71.1 million in the same period of 2018.
  • Enterprise value-added services revenues increased by 147.1% to RMB154.4 million (US$22.2 million) in the fourth quarter of 2019, from RMB62.5 million in the same period of 2018.
  • Subscription services revenues increased by 72.1% to RMB18.5 million (US$2.7 million) in the fourth quarter of 2019, from RMB10.8 million in the same period of 2018.
  • Gross profit increased by 74.4% to RMB156.5 million (US$22.5 million) in the fourth quarter of 2019, from RMB89.7 million in the same period of 2018.
  • Net income was RMB32.0 million (US$4.6 million) in the fourth quarter of 2019, compared to RMB39.1 million in the same period of 2018. Non-GAAP adjusted net income1 increased by 69.6% to RMB68.3 million (US$9.8 million) in the fourth quarter of 2019, from RMB40.2 million in the same period of 2018.
  • Net income attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB98.7 million (US$14.2 million), compared to a net loss of RMB30.8 million in the same period of 2018.

Fiscal Year 2019 Operational and Financial Highlights

  • Total revenues increased by 119.2% to RMB655.6 million (US$94.2 million) in the fiscal year of 2019, from RMB299.1 million in the fiscal year of 2018.
  • Online advertising services revenues increased by 63.1% to RMB283.4 million (US$40.7 million) in the fiscal year of 2019, from RMB173.8 million in the fiscal year of 2018.
  • Enterprise value-added services revenues increased by 218.7% to RMB319.5 million (US$45.9 million) in the fiscal year of 2019, from RMB100.2 million in the fiscal year of 2018.
  • Subscription services revenues increased by 110.2% to RMB52.7 million (US$7.6 million) in the fiscal year of 2019, from RMB25.1 million in the fiscal year of 2018.       
  • Gross profit increased by 73.4% to RMB275.3 million (US$39.5 million) in the fiscal year of 2019, from RMB158.8 million in the fiscal year of 2018.
  • Net loss was RMB25.9 million (US$3.7 million) in the fiscal year of 2019, compared to a net income of RMB40.5 million in the fiscal year of 2018. Non-GAAP adjusted net income increased by 43.0% to RMB65.3 million (US$9.4 million) in the fiscal year of 2019, from RMB45.6 million in the fiscal year of 2018.

1 Non-GAAP adjusted net income represents net income excluding share-based compensation. 

Selected Operating Data

 For the Fiscal Year Ended December 31,
 2018 2019
Online advertising services   
Number of online advertising services end customers320 506
Average revenue per online advertising services end customer (RMB’000)2543.1 560.1
    
Enterprise value-added services   
Number of enterprise value-added services end customers263 436
Average revenue per enterprise value-added services end customer (RMB’000)3381.1 732.7
    
Subscription services   
Number of individual subscribers51,189 18,565
Average revenue per individual subscriber (RMB)4209.1 1,648.0
    
Number of institutional investor subscribers121 134
Average revenue per institutional investor subscriber (RMB’000)5118.7 149.5
    
Number of enterprise subscribers- 399
Average revenue per enterprise subscriber (RMB’000)6- 5.2

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 investor subscribers in the same period.
6 Equals revenues generated from enterprise subscription services for a period divided by the number of enterprise subscribers in the same period.

Mr. Dagang Feng, co-chairman and chief executive officer of 36Kr, commented, “We concluded 2019 with strong fourth quarter results and encouraging progress on multiple fronts. Our content capabilities maintained as our key strength and robust traffic driver. Our average monthly PV reached a new high in 2019 with 425.4 million, up 116.8% year over year. This impressive PV metric reflected the broadened geographic and topical coverage of our attractive content, expanded user base and efficient distribution channels. Along with our growing influence in the New Economy community, all three of our revenue streams demonstrated remarkable performances in the fourth quarter, contributing to total revenue growth of 119.2% year over year. Specifically, our enterprise value-added services achieved a significant revenue growth and became our largest revenue contributor, as we strategically developed ourselves into a service-focused enabler for New Economy participants.

“In response to the recent coronavirus outbreak and its ensuing societal impact, 36Kr, as one of the most influential New Economy-focused content providers in China, has been publishing a series of special reports objectively relating the epidemic situation, drawing public attention to the individuals and companies affected and speaking up for those in need. In addition, we swiftly launched a special enterprise service program by mobilizing our connections and resources in the New Economy space for companies striving for survival. This special program aims to introduce collaborative opportunities, financing resources, supportive policies, proficient enterprise services, and enhanced media exposure to support companies that were seriously impacted by the difficult situation. We believe in the resilience of New Economy and are determined to withstand the challenges together with our partners,” Mr. Feng concluded.

Ms. Jihong Liang, director and chief financial officer of 36Kr, stated, “Our solid fourth quarter and full-year 2019 topline performance demonstrated the increasing demands for our diverse and high-quality services from New Economy participants. As we broaden our comprehensive offerings to an expanded customer base, we are achieving economies of scale and enhanced profitability. In the fourth quarter and full-year 2019, we delivered non-GAAP adjusted net income of RMB68.3 million and RMB65.3 million, up 69.6% and 43.0%, respectively, on a year-over-year basis. We will continue to fortify our competitive advantages in both content creation and distribution, while constantly expanding our monetization channels, to capture the growth opportunities in the vibrant New Economy.”

Fourth Quarter 2019 Financial Results

Total revenues were RMB322.8 million (US$46.4 million) in the fourth quarter of 2019, compared to RMB144.4 million in the same period of 2018.

  • Online advertising services revenues increased by 110.7% to RMB149.9 million (US$21.5 million) in the fourth quarter of 2019, from RMB71.1 million in the same period of 2018. The increase was mainly attributable to an increased number of end customers.
     
  • Enterprise value-added services revenues increased by 147.1% to RMB154.4 million (US$22.2 million) in the fourth quarter of 2019, from RMB62.5 million in the same period of 2018. The increase was primarily attributable to the increase of end customers and average revenue per customer.
     
  • Subscription services revenues increased by 72.1% to RMB18.5 million (US$2.7 million) in the fourth quarter of 2019, from RMB10.8 million in the same period of 2018. This increase was primarily attributable to the increase of individual subscription services revenues in the fourth quarter of 2019.

Cost of revenues increased by 204.2% to RMB166.3 million (US$23.9 million) in the fourth quarter of 2019, from RMB54.7 million in the same period of 2018. This increase was generally in line with the growth of the Company’s business. Execution fees of enterprise value-added services, advertisement production costs and share-based compensation expenses were the main contributors to the increase in cost of revenues.

Gross profit increased by 74.4% to RMB156.5 million (US$22.5 million) in the fourth quarter of 2019 from RMB89.7 million in the same period of 2018.

Operating expenses were RMB106.6 million (US$15.3 million) in the fourth quarter of 2019, compared to RMB41.9 million in the same period of 2018. The increase was mainly due to increases in general and administrative expenses and sales and marketing expenses in the fourth quarter of 2019.

  • Sales and marketing expenses increased by 109.3% to RMB49.7 million (US$7.1 million) in the fourth quarter of 2019, compared to RMB23.7 million in the same period of 2018. The increase was primarily attributable to an increase in payroll-related expenses in relation to hiring new sales and marketing staff, and an increase in share-based compensation expenses.
     
  • General and administrative expenses were RMB46.8 million (US$6.7 million) in the fourth quarter of 2019, compared to RMB9.7 million in the same period of 2018. The increase was primarily attributable to an increase in payroll-related expenses in relation to hiring new general and administrative staff, and an increase in share-based compensation expenses.
     
  • Research and development expenses increased by 19.6% to RMB10.2 million (US$1.5 million) in the fourth quarter of 2019, compared to RMB8.5 million in the same period of 2018. The increase was primarily attributable to an increase in bandwidth and server expenses in relation to business expansion.

Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses and general and administrative expenses in total were RMB36.3 million (US$5.2 million) in the fourth quarter of 2019 and RMB1.2 million in the same period of 2018.

Other income was RMB1.7 million (US$0.2 million) in the fourth quarter of 2019, compared to RMB4.5 million in the same period of 2018.

Income tax expenses increased by 47.6% to RMB19.6 million (US$2.8 million) in the fourth quarter of 2019, compared to RMB13.3 million in the same period of 2018. The increase was primarily attributable to the profitability improvement of certain subsidiaries in the fourth quarter of 2019.

Net income was RMB32.0 million (US$4.6 million) in the fourth quarter of 2019, compared to RMB39.1 million in the same period of 2018. Non-GAAP adjusted net income7 increased by 69.6% to RMB68.3 million (US$9.8 million) in the fourth quarter of 2019, from RMB40.2 million in the same period of 2018.

Net income attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB98.7 million (US$14.2 million) in the fourth quarter of 2019, compared to a net loss of RMB30.8 million in the same period of 2018. The change was primarily attributable to the ceased accrual of the accretion associated with the redeemable and convertible preferred shares upon the completion of the Company’s initial public offering, as they were automatically converted into ordinary shares.

Basic and diluted net income per share was RMB0.100 (US$0.014) and RMB0.030 (US$0.004), respectively, in the fourth quarter of 2019, compared to basic and diluted net loss per share of RMB0.104 in the same period of 2018.

Certain Balance Sheet Items

As of December 31, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB264.2 million (US$38.0 million), compared to RMB194.4 million as of December 31, 2018.

7 Non-GAAP adjusted net income represents net income excluding share-based compensation.

Fiscal year 2019 Financial Results

Total revenues were RMB655.6 million (US$94.2 million) in the fiscal year of 2019, compared to RMB299.1 million in the fiscal year of 2018.

  • Online advertising services revenues increased by 63.1% to RMB283.4 million (US$40.7 million) in the fiscal year of 2019, from RMB173.8 million in the fiscal year of 2018. The increase was mainly attributable to an increased number of end customers.
     
  • Enterprise value-added services revenues increased by 218.7% to RMB319.5 million (US$45.9 million) in the fiscal year of 2019, from RMB100.2 million in the fiscal year of 2018. The increase was primarily attributable to the increase of integrated marketing service revenues and business consulting services revenues associated with increased end customers and average revenue per customer.
     
  • Subscription services revenues increased by 110.2% to RMB52.7 million (US$7.6 million) in the fiscal year of 2019, from RMB25.1 million in the fiscal year of 2018. This increase was primarily attributable to the increase of individual subscription services revenues in the fiscal year of 2019.   

Cost of revenues increased by 171.0% to RMB380.3 million (US$54.6 million) in the fiscal year of 2019, from RMB140.3 million in the fiscal year of 2018. This increase was primarily attributable to the increase of execution fees of enterprise value-added services, advertisement production costs and share-based compensation expenses in the fiscal year of 2019.

Gross profit increased by 73.4% to RMB275.3 million (US$39.5 million) in the fiscal year of 2019, from RMB158.8 million in the fiscal year of 2018.

Operating expenses were RMB298.2 million (US$42.8 million) in the fiscal year of 2019, compared to RMB113.2 million in the fiscal year of 2018. The increase was mainly due to increases in general and administrative expenses and sales and marketing expenses.

  • Sales and marketing expenses increased by 96.0% to RMB131.3 million (US$18.9 million) in the fiscal year of 2019, compared to RMB67.0 million in the fiscal year of 2018. The increase was primarily attributable to an increase in payroll-related expenses in relation to hiring new sales and marketing staff
     
  • General and administrative expenses were RMB131.1 million (US$18.8 million) in the fiscal year of 2019, compared to RMB24.1 million in the fiscal year of 2018. The increase was primarily attributable to an increase in payroll-related expenses in relation to hiring new general and administrative staff, an increase in share-based compensation expenses resulted from the share options granted in the fiscal year of 2019 and professional fees related to the initial public offering in the fiscal year of 2019.
     
  • Research and development expenses increased by 62.2% to RMB35.8 million (US$5.1 million) in the fiscal year of 2019, compared to RMB22.1 million in the fiscal year of 2018. The increase was primarily attributable to an increase in payroll-related expenses.

Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses and general and administrative expenses in total were RMB91.2 million (US$13.1 million) in the fiscal year of 2019 and RMB5.1 million in the fiscal year of 2018.

Other income increased by 72.8% to RMB16.8 million (US$2.4 million) in the fiscal year of 2019 from RMB9.8 million in the fiscal year of 2018. The increase was primarily attributable to realized disposal gain associated with the overseas business investment in the fiscal year of 2019.

Income tax expenses increased by 34.2% to RMB19.9 million (US$2.9 million) in the fiscal year 2019, compared to RMB14.8 million in the fiscal year of 2018. The increase was primarily contributable to the profitability improvement of certain subsidiaries in the fiscal year of 2019.

Net loss was RMB25.9 million (US$3.7 million) in the fiscal year of 2019, compared to a net income of RMB40.5 million in the fiscal year of 2018. Non-GAAP adjusted net income increased by 43.0% to RMB65.3 million (US$9.4 million) in the fiscal year of 2019, compared to RMB45.6 million in the fiscal year of 2018.

Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB850.4 million (US$122.2 million), in the fiscal year of 2019, compared to RMB80.6 million in the fiscal year of 2018. The increase was primarily attributable to the accretion increase associated with the convertible redeemable preferred shares and the effect of re-designation of preferred shares to ordinary shares before the preferred shares automatically converted to ordinary shares upon the completion of the Company’s initial public offering.

Basic and diluted net loss per share were both RMB2.310 (US$0.332) in the fiscal year of 2019, compared to RMB0.275 in the fiscal year of 2018.

Recent Development

Since January 2020, the coronavirus (COVID-19) outbreak in China has brought adverse impact on the macroeconomy. 36Kr prioritizes the health and safety of its employees, and has taken various preventative and quarantine measures across the Company soon after the outbreak. 36Kr also implemented a series of corresponding initiatives on its content offering and enterprise services business to help combat and contain the epidemic, providing supports for New Economy Participants affected by the situation. Since the coronavirus situation in China is evolving, and business visibility is still limited, the Company is closely monitoring the epidemic development and evaluating its impact on the Company’s business, and will provide updates when having more clarity.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March 11, 2020 (8:00 PM Beijing/Hong Kong Time on March 11, 2020).

Dial-in details for the earnings conference call are as follows:

United States:+1-866-519-4004
International:+65-6713-5090
Hong Kong, China:800-906-601
Mainland China:400-620-8038
Conference ID:7691436

Participants should dial-in approximately 5 minutes before the scheduled start time and ask to be connected to the call for “36Kr Holdings Inc.”

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 March 18, 2020, 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:400-632-2162
Replay Access Code:7691436

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 income/(loss) represents net income/(loss) excluding share-based compensation.

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 RMB6.9618 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on of December 31, 2019.

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.
Xi Zhang
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 SHEET

 December 31,
2018
 December 31,
2019
 December 31,
2019
 RMB’000 RMB’000 US$’000
      
Assets     
Current assets:     
Cash and cash equivalents48,968  177,372  25,478 
Restricted cash-  505  73 
Short-term investments145,451  86,362  12,405 
Accounts receivable, net182,269  538,537  77,356 
Receivables due from related parties11,018  4,615  663 
Prepayments and other current assets11,686  41,852  6,012 
Total current assets399,392   849,243    121,987  
Non-current assets:     
Property and equipment, net15,472  15,964  2,293 
Intangible assets, net255  356  51 
Equity method investments-  41,861  6,013 
Deferred tax assets306  3,391  487 
Total non-current assets16,033   61,572    8,844  
Total assets415,425   910,815    130,831  
      
Liabilities     
Current liabilities:     
Accounts payable20,270  139,336  20,014 
Salary and welfare payables36,160  50,721  7,286 
Taxes payable16,917  35,341  5,076 
Deferred revenue4,227  8,161  1,173 
Amounts due to related parties1,979  -  - 
Accrued liabilities and other payables5,152  33,308  4,784 
Total current liabilities84,705   266,867    38,333  
Total liabilities84,705   266,867    38,333  
      
Mezzanine equity     
Series A-1 convertible redeemable preferred shares681  -  - 
Series A-2 convertible redeemable preferred shares13,500  -  - 
Series B-1 convertible redeemable preferred shares388,145  -  - 
Series B-2 convertible redeemable preferred shares45,000  -  - 
Series B-3 convertible redeemable preferred shares48,016  -  - 
Series B-4 convertible redeemable preferred shares36,000  -  - 
Series C-1 convertible redeemable preferred shares277,259  -  - 
Series C-2 convertible redeemable preferred shares-  -  - 
Series D convertible redeemable preferred shares-  -  - 
Redeemable non-controlling interests7,731  -  - 
Total mezzanine equity816,332  -  - 
      
Shareholders’ (deficit)/equity      
Ordinary shares184  679  98 
Treasury stock-  (2,333) (334)
Additional paid-in capital-  2,000,267  287,320 
Accumulated deficit(486,027) (1,358,350) (195,115)
Accumulated other comprehensive income/(loss)231  (3,054) (439)
Total 36Kr Holdings Inc.'s shareholders’ (deficit)/equity(485,612) 637,209  91,530 
Non-controlling interests-  6,739  968 
Total shareholders’ (deficit)/equity (485,612)  643,948    92,498  
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity415,425  910,815  130,831  
 

36Kr Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

    
 For the Three Months Ended December 31, For the Twelve Months Ended December 31,
 2018 2019 2019 2018 2019 2019
RMB’000 RMB’000 US$’000 RMB’000 RMB’000 US$’000
Revenues:           
Online advertising services71,118  149,867  21,527  173,783  283,426  40,712 
Enterprise value-added services62,502  154,423  22,181  100,238  319,469  45,889 
Subscription services10,763  18,519  2,660  25,072  52,711  7,571 
Total revenues144,383   322,809    46,368   299,093  655,606  94,172 
Cost of revenues(54,670) (166,333) (23,892) (140,317) (380,290) (54,625)
Gross profit  89,713   156,476    22,476   158,776  275,316  39,547 
Operating expenses:           
Sales and marketing expenses(23,728) (49,665) (7,134) (66,984) (131,301) (18,860)
General and administrative expenses(9,655) (46,810) (6,724) (24,125) (131,075) (18,828)
Research and development expenses(8,499) (10,164) (1,460) (22,075) (35,807) (5,143)
Total operating expenses  (41,882 ) (106,639) (15,318) (113,184) (298,183) (42,831)
Income/(Loss) from operations  47,831     49,837     7,158   45,592  (22,867) (3,284)
Other income/(expenses):           
Share of loss from equity method investments-  -  -  (2,794) -  - 
Gain on disposal of a subsidiary-  -  -  -  11,454  1,645 
Short-term investment income1,823  854  123  9,300  4,115  591 
Others, net2,691  881  127  3,247  1,280  184 
Income/(Loss) before income tax  52,345     51,572     7,408   55,345  (6,018) (864)
Income tax expenses(13,295) (19,617) (2,818) (14,827) (19,893) (2,857)
Net income/(loss)39,050     31,955     4,590   40,518  (25,911) (3,721)
Accretion on redeemable non-controlling interests to redemption value(337) -  -  (1,025) (1,808) (260)
(Accretion)/Reversal of accretion of convertible redeemable preferred shares to redemption value(69,542) 67,893  9,752  (120,060) (449,130) (64,513)
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares-  -  -  -  (26,787) (3,848)
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares without consideration-  -  -  -  (309,984) (44,526)
Re-designation of ordinary shares into Series C-2-  -  -  -  (36,977) (5,311)
Net (income)/loss attributable to non-controlling interests-  (1,195) (172) -  156  22 
Net (loss)/income attributable to 36Kr Holdings Inc.’s ordinary shareholders  (30,829 ) 98,653  14,170   (80,567) (850,441) (122,157)
            
            
Net income/(loss)39,050  31,955  4,590  40,518  (25,911) (3,721)
Other comprehensive (loss) /income           
Foreign currency translation adjustments(34) (3,200) (460) 231  (3,285) (472)
Total other comprehensive (loss) /income(34) (3,200) (460) 231  (3,285) (472)
Total comprehensive income/(loss)39,016  28,755  4,130  40,749  (29,196) (4,193)
Accretion on redeemable non-controlling interests to redemption value(337) -  -  (1,025) (1,808) (260)
(Accretion)/Reversal of accretion of convertible redeemable preferred shares to redemption value(69,542) 67,893  9,752  (120,060) (449,130) (64,513)
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares-  -  -  -  (26,787) (3,848)
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares without consideration-  -  -  -  (309,984) (44,526)
Re-designation of ordinary shares into Series C-2-  -  -  -  (36,977) (5,311)
Net (income)/loss attributable to non-controlling interests-  (1,195) (172) -  156  22 
Comprehensive (loss)/income attributable to 36Kr Holding Inc.’s ordinary shareholders  (30,863) 95,453  13,710  (80,336) (853,726) (122,629)
            
Net (loss)/income per share attributable to 36Kr Holding Inc.’s shareholders           
Basic(0.104) 0.100  0.014  (0.275) (2.310) (0.332)
Diluted(0.104) 0.030  0.004  (0.275) (2.310) (0.332)
            
Weighted average number of shares            
Basic295,642,734  678,222,030  678,222,030  292,731,461  381,489,703  381,489,703 
Diluted295,642,734  1,014,477,288  1,014,477,288  292,731,461  381,489,703  381,489,703 
 


36Kr Holdings Inc.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

 For the Three Months Ended December 31, For the Twelve Months Ended December 31,
  2018   2019   2019   2018   2019   2019
RMB’000 RMB’000 US$’000 RMB’000 RMB’000 US$’000
           
Net income /(loss)39,050 31,955   4,590   40,518  (25,911) (3,721)
Share-based compensation expenses1,191 36,313  5,216  5,111 91,171  13,096 
Non-GAAP adjusted net income40,241 68,268   9,806   45,629  65,260   9,375  
Interest expense, net68 (439) (63) 75 (292) (42)
Income tax expense13,295 19,617  2,818  14,827 19,893  2,857 
Depreciation and amortization expenses815 1,416  203  1,603 4,231  608 
Non-GAAP adjusted EBITDA 54,419 88,862  12,764  62,134 89,092  12,798 

Source: 36Kr Holdings Inc.