Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | 36Kr Holdings Inc. |
Document Period End Date | Dec. 31, 2021 |
Entity Well-known Seasoned Issuer | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
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 |
Entity Voluntary Filers | No |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity File Number | 001-39117 |
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, Postal Zip Code | 100026 |
Entity Address, Country | CN |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Document Accounting Standard | U.S. GAAP |
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, Postal Zip Code | 100026 |
Entity Address, Country | CN |
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 | 989,789,295 |
Class A ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 893,706,595 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NASDAQ |
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 | |
Trading Symbol | KRKR |
Title of 12(b) Security | American depositary shares, each ADS represents 25 Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | ¥ 96,965 | ¥ 60,846 |
Shortterm investments | 119,140 | 148,344 |
Accounts receivable, net | 180,161 | 304,845 |
Receivables due from related parties | 3,630 | 98 |
Prepayments and other current assets | 42,612 | 16,319 |
Total current assets | 442,508 | 530,452 |
Noncurrent assets: | ||
Property and equipment, net | 3,159 | 3,941 |
Intangible assets, net | 808 | 471 |
Long-term investments | 41,442 | 16,300 |
Operating lease right-of-use assets, net | 13,818 | 27,365 |
Total noncurrent assets | 59,227 | 48,077 |
Total assets | 501,735 | 578,529 |
Current liabilities: | ||
Accounts payable (including amounts of the consolidated variable interest entity ("VIE") and its subsidiaries without recourse to the primary beneficiary of RMB 64.64 million and RMB 56.07 million as of December 31, 2020 and 2021, respectively) | 56,266 | 64,641 |
Salary and welfare payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 32.75 million and RMB 37.63 million as of December 31, 2020 and 2021, respectively) | 55,788 | 45,580 |
Taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 17.21 million and RMB 11.31 million as of December 31, 2020 and 2021, respectively) | 12,836 | 18,824 |
Deferred revenue (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 18.85 million and RMB 28.86 million as of December 31, 2020 and 2021, respectively) | 28,863 | 18,849 |
Amounts due to related parties (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 0.55 million and RMB 1.33 million as of December 31, 2020 and 2021, respectively) | 1,328 | 548 |
Accrued liabilities and other payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 8.22 million and RMB 12.62 million as of December 31, 2020 and 2021, respectively) | 17,501 | 13,560 |
Short-term bank loan (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of nil and RMB 5.0 million as of December 31, 2020 and 2021, respectively) | 5,000 | |
Operating lease liabilities(including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 15.13 million and RMB 16.30 million as of December 31, 2020 and 2021, respectively) | 16,302 | 15,132 |
Total current liabilities | 193,884 | 177,134 |
Non-current liabilities: | ||
Operating lease liabilities(including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB 12.43 million and RMB 0.59 million as of December 31, 2020 and 2021, respectively) | 586 | 12,426 |
Total non-current liabilities | 586 | 12,426 |
Total liabilities | 194,470 | 189,560 |
Commitments and Contingencies (Note 18) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,049,448 | 2,040,693 |
Treasury stock (US$ 0.0001 par value; 15,557,593 shares and 16,201,618 shares as of December 31, 2020 and 2021, respectively) | (13,598) | (14,081) |
Accumulated deficit | (1,728,152) | (1,638,581) |
Accumulated other comprehensive loss | (8,987) | (7,897) |
Total 36Kr Holdings Inc.'s shareholders' equity | 299,405 | 380,821 |
Non-controlling interests | 7,860 | 8,148 |
Total shareholders' equity | 307,265 | 388,969 |
Total liabilities and shareholders' equity | 501,735 | 578,529 |
Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 621 |
Class B ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | ¥ 66 | ¥ 66 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020$ / shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019$ / sharesshares | Nov. 08, 2019$ / shares | Aug. 31, 2019shares | Dec. 31, 2018$ / shares |
Accounts payable | ¥ 56,266 | ¥ 64,641 | ||||||
Salary and welfare payables | 55,788 | 45,580 | ||||||
Taxes payable | 12,836 | 18,824 | ||||||
Deferred revenue | 28,863 | 18,849 | ||||||
Amounts due to related parties | 1,328 | 548 | ||||||
Accrued liabilities and other payables | 17,501 | 13,560 | ||||||
Short-term bank loan | 5,000 | |||||||
Operating lease liabilities | 16,302 | 15,132 | ||||||
Operating lease liabilities | ¥ 586 | ¥ 12,426 | ||||||
Shareholders' equity | ||||||||
Ordinary shares, par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares authorized (in shares) | shares | 4,326,574,000 | |||||||
Ordinary shares, shares issued (in shares) | shares | 189,388,000 | |||||||
Ordinary shares, shares outstanding (in shares) | shares | 189,388,000 | |||||||
Treasury stock (in shares) | shares | 16,201,618 | 15,557,593 | ||||||
Class A ordinary shares | ||||||||
Shareholders' equity | ||||||||
Ordinary shares, par value (in US dollar per share) | $ / shares | $ 0.0001 | 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 | 884,846,745 | 841,275,820 | |||||
Ordinary shares, shares outstanding (in shares) | shares | 893,706,595 | 871,850,620 | 841,275,820 | |||||
Class B ordinary shares | ||||||||
Shareholders' equity | ||||||||
Ordinary shares, par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 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 | 96,082,700 | |||||
Ordinary shares, shares outstanding (in shares) | shares | 96,082,700 | 96,082,700 | 96,082,700 | |||||
VIEs | ||||||||
Accounts payable | ¥ 56,069 | ¥ 64,641 | ||||||
Salary and welfare payables | 37,631 | 32,749 | ||||||
Taxes payable | 11,311 | 17,207 | ||||||
Deferred revenue | 28,863 | 18,849 | ||||||
Amounts due to related parties | 1,328 | 548 | ||||||
Accrued liabilities and other payables | 12,621 | 8,219 | ||||||
Short-term bank loan | 5,000 | 0 | ||||||
Operating lease liabilities | 16,302 | 15,132 | ||||||
Operating lease liabilities | ¥ 586 | ¥ 12,426 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | ¥ 316,779 | ¥ 386,764 | ¥ 655,606 |
Cost of revenues | (128,844) | (261,372) | (380,290) |
Gross profit | 187,935 | 125,392 | 275,316 |
Operating expenses: | |||
Sales and marketing expenses | (143,887) | (140,672) | (131,301) |
General and administrative expenses | (90,636) | (212,411) | (131,075) |
Research and development expenses | (47,518) | (38,232) | (35,807) |
Impairment of goodwill | (1,395) | ||
Total operating expenses | (282,041) | (392,710) | (298,183) |
Income/(Loss) from operations | (94,106) | (267,318) | (22,867) |
Other income/(expenses): | |||
Share of loss from equity method investments | (5,473) | (23,502) | |
Gain on disposal of a subsidiary | 11,454 | ||
Shortterm investment income | 2,485 | 1,859 | 4,115 |
Government grant | 3,304 | 10,103 | 497 |
Others, net | 3,283 | 3,280 | 783 |
Income/(Loss) before income tax | (90,507) | (275,578) | (6,018) |
Income tax expense | (102) | (3,764) | (19,893) |
Net loss | (90,609) | (279,342) | (25,911) |
Accretion on redeemable noncontrolling interests to redemption value | (1,808) | ||
Accretion of convertible redeemable preferred shares to redemption value | (449,130) | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (26,787) | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares | (309,984) | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | (36,977) | ||
Net loss/(income) attributable to non-controlling interests | 1,038 | (889) | 156 |
Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders | (89,571) | (280,231) | (850,441) |
Net loss | (90,609) | (279,342) | (25,911) |
Other comprehensive loss | |||
Foreign currency translation adjustments | (1,090) | (4,843) | (3,285) |
Total other comprehensive loss | (1,090) | (4,843) | (3,285) |
Total comprehensive loss | (91,699) | (284,185) | (29,196) |
Accretion on redeemable noncontrolling interests to redemption value | (1,808) | ||
Accretion of convertible redeemable preferred shares to redemption value | (449,130) | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (26,787) | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares | (309,984) | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | (36,977) | ||
Net loss/(income) attributable to non-controlling interests | 1,038 | (889) | 156 |
Comprehensive loss attributable to 36Kr Holding Inc.'s ordinary shareholders | ¥ (90,661) | ¥ (285,074) | ¥ (853,726) |
Net loss per ordinary share (RMB) | |||
-Basic | ¥ (0.087) | ¥ (0.275) | ¥ (2.310) |
-Diluted | ¥ (0.087) | ¥ (0.275) | ¥ (2.310) |
Weighted average number of ordinary shares used in per share calculation: | |||
-Basic (in shares) | 1,025,068,349 | 1,019,316,944 | 368,159,249 |
-Diluted (in shares) | 1,025,068,349 | 1,019,316,944 | 368,159,249 |
ADS | |||
Net loss per ordinary share (RMB) | |||
-Basic | ¥ (2.185) | ¥ (6.873) | ¥ (57.750) |
-Diluted | ¥ (2.185) | ¥ (6.873) | ¥ (57.750) |
Weighted average number of ordinary shares used in per share calculation: | |||
-Basic (in shares) | 41,002,734 | 40,772,678 | 14,726,370 |
-Diluted (in shares) | 41,002,734 | 40,772,678 | 14,726,370 |
Cost of revenues | |||
Share-based compensation expenses included in | |||
Employee consideration | ¥ 1,322 | ¥ 1,123 | ¥ 4,730 |
Sales and marketing expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | 8,526 | 16,168 | 14,654 |
General and administrative expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | 5,622 | 19,508 | 69,412 |
Research and development expenses | |||
Share-based compensation expenses included in | |||
Employee consideration | (452) | 2,478 | 2,375 |
Online advertising services | |||
Revenues: | |||
Total revenues | 214,722 | 172,811 | 283,426 |
Enterprise value-added services | |||
Revenues: | |||
Total revenues | 74,032 | 193,213 | 319,469 |
Subscription services | |||
Revenues: | |||
Total revenues | ¥ 28,025 | ¥ 20,740 | ¥ 52,711 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY - CNY (¥) ¥ in Thousands | Ordinary sharesClass A ordinary shares | Ordinary sharesClass B ordinary shares | Ordinary sharesSeries B-3 Convertible Redeemable Preferred Stock | Ordinary sharesSeries B-4 Convertible Redeemable Preferred Stock | Ordinary sharesSeries A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | Ordinary sharesSeries C-2 Convertible Redeemable Preferred Stock | Ordinary shares | Additional paid-in capitalSeries B-3 Convertible Redeemable Preferred Stock | Additional paid-in capitalSeries A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | Additional paid-in capital | Treasury stock | Accumulated deficitSeries B-3 Convertible Redeemable Preferred Stock | Accumulated deficitSeries B-4 Convertible Redeemable Preferred Stock | Accumulated deficitSeries A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | Accumulated deficitSeries C-2 Convertible Redeemable Preferred Stock | Accumulated deficit | Accumulated other comprehensive income/loss | Non-controlling interests | Series B-3 Convertible Redeemable Preferred Stock | Series B-4 Convertible Redeemable Preferred Stock | Series A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | Series C-2 Convertible Redeemable Preferred Stock | Total |
Balance, beginning of the year at Dec. 31, 2018 | ¥ 184 | ¥ (486,027) | ¥ 231 | ¥ (485,612) | |||||||||||||||||||
Balance, beginning of the year (in shares) at Dec. 31, 2018 | 308,686,012 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Net loss | (25,755) | ¥ (156) | (25,911) | ||||||||||||||||||||
Share-based compensation | ¥ 64,387 | 64,387 | |||||||||||||||||||||
Share-based compensation (in shares) | 1,609,789 | ||||||||||||||||||||||
Share repurchase | ¥ (2,333) | (2,333) | |||||||||||||||||||||
Share repurchase (in shares) | (2,561,468) | 2,561,468 | |||||||||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering | ¥ 81 | ¥ 66 | ¥ (147) | ||||||||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering (in shares) | 141,766,682 | 96,082,700 | (237,849,382) | ||||||||||||||||||||
Re-designation of Preferred Shares into Class A ordinary shares upon initial public offering | ¥ 508 | 1,877,739 | 1,878,247 | ||||||||||||||||||||
Re-designation of Preferred Shares into Class A ordinary shares upon initial public offering (in shares) | 726,015,520 | ||||||||||||||||||||||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (1,409) | (25,378) | (26,787) | ||||||||||||||||||||
Re-designation of ordinary shares | ¥ (10) | ¥ (7) | ¥ (11) | ¥ (9) | ¥ (1,157) | ¥ (25,749) | ¥ (28,799) | ¥ (20,261) | ¥ (284,224) | ¥ (36,968) | ¥ (29,966) | ¥ (20,268) | ¥ (309,984) | ¥ (36,977) | |||||||||
Re-designation of ordinary shares (in shares) | (17,215,818) | (11,643,239) | (28,480,894) | (12,545,000) | |||||||||||||||||||
Share issuance upon initial public offering, net of issuance costs | ¥ 24 | 86,214 | 86,238 | ||||||||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | 34,500,000 | ||||||||||||||||||||||
Accretion on redeemable non-controlling interests to redemption value | (1,808) | (1,808) | |||||||||||||||||||||
Accretions of convertible redeemable preferred shares to redemption value | (449,130) | (449,130) | |||||||||||||||||||||
Shareholder's contribution | 242 | 242 | |||||||||||||||||||||
Capital injection from non-controlling interests | 6,895 | 6,895 | |||||||||||||||||||||
Foreign currency translation adjustment | (3,285) | (3,285) | |||||||||||||||||||||
Balance, end of the year at Dec. 31, 2019 | ¥ 613 | ¥ 66 | 2,000,267 | ¥ (2,333) | (1,358,350) | (3,054) | 6,739 | 643,948 | |||||||||||||||
Balance, end of the year (in shares) at Dec. 31, 2019 | 902,282,202 | 96,082,700 | 2,561,468 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Net 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 | ¥ 0 | 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 | 0 | 15,557,593 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||
Net 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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | ¥ (90,609) | ¥ (279,342) | ¥ (25,911) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation of property and equipment | 2,563 | 5,549 | 4,195 |
Amortization of intangible assets | 96 | 49 | 36 |
Share-based compensation expenses | 15,018 | 39,277 | 91,171 |
Non-cash operating lease expense | 15,481 | 15,306 | |
Allowance for credit losses | 9,853 | 127,100 | 10,004 |
Losses from disposal of property, equipment and software | 73 | 103 | |
Exchange losses | 68 | 104 | 40 |
Goodwill impairment | 1,395 | ||
Property and equipment impairment | 7,987 | ||
Fair value changes of short-term investments | (670) | (474) | (1,837) |
Share of loss from equity method investments | 5,473 | 23,502 | |
Disposal gain on a subsidiary | (11,454) | ||
Rental, interest and payroll expense contributed by a shareholder | 242 | ||
Deferred income tax | 3,391 | (3,085) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 241,475 | 108,162 | (365,770) |
Receivables due from related parties | (1,780) | 4,517 | 6,403 |
Prepayments and other current assets | 51 | 23,657 | (34,522) |
Accounts payable | (8,375) | (73,551) | 119,135 |
Salary and welfare payables | 10,208 | (5,163) | 14,561 |
Taxes payable | (5,988) | (16,525) | 18,428 |
Deferred revenue | 10,014 | 10,688 | 3,934 |
Amounts due to related parties | 780 | 548 | (1,979) |
Accrued liabilities and other payables | 3,834 | 1,946 | 17,472 |
Lease liabilities | (12,604) | (15,351) | |
Net cash (used in)/provided by operating activities | 194,961 | (17,125) | (158,937) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,747) | (2,186) | (4,639) |
Purchase of intangible assets | (433) | (164) | (137) |
Purchase of shortterm investments | (659,210) | (613,952) | (817,450) |
Proceeds from maturities of shortterm investments | 689,084 | 552,444 | 878,376 |
Placement of time deposits | (135,934) | ||
Withdrawal of time deposits | 135,934 | ||
Loan paid to related parties | (2,000) | ||
Cash received from customer in relation to advertisement agent services | 26,295 | ||
Cash paid on behalf of the customer in relation to advertisement agent services | (179,036) | ||
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (431) | ||
Investment in equity method investment | (30,950) | (42,417) | |
Net cash paid upon disposal of a subsidiary | (4,005) | ||
Cash received from disposal of an equity investee | 157 | ||
Net cash (used in)/provided by investing activities | (157,997) | (64,289) | 9,885 |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (21,617) | 109,045 | |
Proceeds from bank loan | 10,000 | ||
Repayment of bank loan | (5,000) | ||
Proceeds from employee options exercised | 7 | 8 | |
Proceeds from loans provided by a third party | 8,266 | ||
Repayments of loans provided by a third party | (8,483) | ||
Proceeds from issuance of Series D preferred shares, net of issuance cost | 169,750 | ||
Share repurchase | (5,780) | (11,748) | (2,333) |
Cash paid to acquire a non-controlling interest | (4,803) | ||
Capital injection from non-controlling interest shareholders | 750 | 520 | 6,895 |
Net cash provided by/(used in) financing activities | (23) | (32,837) | 278,337 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | (822) | (2,780) | (376) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 36,119 | (117,031) | 128,909 |
Cash, cash equivalents and restricted cash at beginning of the year | 60,846 | 177,877 | 48,968 |
Cash, cash equivalents and restricted cash at end of the year | 96,965 | 60,846 | 177,877 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of tax refund | (306) | (13,570) | (17,538) |
Cash paid for interest expense | (78) | ||
Supplemental schedule of noncash investing and financing activities: | |||
Property and equipment purchases financed by other payable | ¥ 107 | ¥ 111 | 122 |
Rental, interest and payroll expense contributed by a shareholder | 242 | ||
Accretions of convertible redeemable preferred shares to redemption value | 449,130 | ||
Accretion on redeemable noncontrolling interests to redemption value | 1,808 | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | 26,787 | ||
Re-designation of ordinary shares into Series B-3 convertible redeemable preferred shares | 41,196 | ||
Re-designation of ordinary shares into Series B-4 convertible redeemable preferred shares | 35,822 | ||
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 | 309,984 | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | 36,977 | ||
Re-designation of Preferred Shares into Class A ordinary shares upon initial public offering | 1,878,247 | ||
Accrued listing expense for the initial public offering | ¥ 22,807 |
Nature of Operations and Reorga
Nature of Operations and Reorganization | 12 Months Ended |
Dec. 31, 2021 | |
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. (b) Reorganization 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 gain control over Beijing Duoke through 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. 1. Nature of Operations and Reorganization (Continued) (b) Reorganization (Continued) As of August 2, 2019, the Group has completed the steps of the Reorganization as described below, and Beijing Duoke has become VIE of the Group. The ownership structure of the major subsidiaries and VIE of the Group 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 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 Beijing Dianqier Creative Interactive Media Culture Co., Ltd. (“Dianqier”) The PRC, established in 2017 100 % Enterprise value‑added services Zhejiang Pinxin Technology Co., Ltd. The PRC, established in 2019 100 % Investment holding The major reorganization steps are described as follows: (i) the Company was set up by the Founder in December 2018; (ii) the Company established a wholly owned subsidiary in British Virgin Islands ("BVI”), 36Kr BVI, in December 2018; (iii) 36Kr BVI established a wholly owned subsidiary in Hong Kong, 36Kr HK, in December 2018; (iv) 36Kr HK established a wholly owned subsidiary in the PRC, Tianjin Duoke, in May 2019; (v) Tianjin Duoke established a wholly owned subsidiary in the PRC, Tianjin Dake, in June 2019; (vi) Tianjin Duoke established another wholly owned subsidiary in the PRC, Beijing Dake, in June 2019; (vii) Beijing Dake entered into various contractual agreements (“VIE agreements”) as related to the VIE and the VIE’s shareholders in order to comply with PRC laws and regulations on internet business in August 2019; (viii) the Company issued ordinary shares at par value to ordinary shareholders of Beijing Duoke and Xieli for the respective equity interests that they held in Beijing Duoke in August 2019; (ix) In August 2019, the Company issued Series A-1, A-2, B-1, B-2, B-3 and B-4 convertible redeemable preferred shares to preferred shareholders of Xieli as consideration in exchange for the respective similar equity interests that they held indirectly in Beijing Duoke through Xieli . On the same date, the Company issued Series C-1 convertible redeemable preferred shares to preferred shareholders of Beijing Duoke as consideration in exchange for the respective similar equity interests that they held directly in Beijing Duoke. 1. Nature of Operations and Reorganization (Continued) (c) Basis of Presentation for the Reorganization The Reorganization consists of transferring the 36Kr Business to the Group, which is owned by the shareholders of Beijing Duoke and Xieli immediately before and after the Reorganization. The shareholding percentages and rights of each shareholder are substantially the same in Beijing Duoke and in the Company immediately before and after the Reorganization. Accordingly, the Reorganization is accounted for in a manner similar to a common control transaction because of the high degree of common ownership, and it is determined that the transfers lack economic substance. Therefore, the accompanying consolidated financial statements include the assets, liabilities, revenue, expenses and cash flows of 36Kr Business for the periods presented and are prepared as if the corporate structure of the Group after the Reorganization had been in existence throughout the periods presented. Accordingly, the effect of the ordinary shares and the preferred shares issued by the Company pursuant to the Reorganization have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statement or the original issue date, whichever is later, as if such shares were issued by the Company when the Group issued such interests. (d) 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). (e) 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 obtained control over the VIE 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 used to control the VIE 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. 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 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 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) (e) Contractual agreements with the VIE (Continued) Equity Pledge Agreement Beijing Dake, Beijing Duoke and the shareholders of Beijing Duoke 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 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. 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. 1. Nature of Operations and Reorganization (Continued) (e) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) 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 control 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 replace 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 fail 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) (e) 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 exert effective control 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) (e) 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, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 is included in the accompanying consolidated financial statements of the Group as follows: December 31, December 31, 2020 2021 RMB’000 RMB’000 Current assets: Cash and cash equivalents 11,494 42,047 Short‑term investments 122,277 99,017 Accounts receivable, net 304,845 179,986 Amounts due from the Company and its subsidiaries 16,106 16,137 Receivables due from related parties of the Group 89 3,620 Prepayments and other current assets 14,566 42,312 Non‑current assets: Property and equipment, net 3,937 3,157 Intangible assets, net 471 808 Long-term investments, net — 30,976 Operating lease right-of-use assets, net 27,365 13,818 Total assets 501,150 431,878 Current liabilities: Accounts payable 64,641 56,069 Salary and welfare payables 32,749 37,631 Taxes payable 17,207 11,311 Deferred revenue 18,849 28,863 Amounts due to the Company and its subsidiaries 199,392 143,331 Amounts due to related parties of the Group 548 1,328 Accrued liabilities and other payables 8,219 12,621 Short-term bank loan — 5,000 Operating lease liabilities 15,132 16,302 Non-current liabilities: Operating lease liabilities 12,426 586 Total liabilities 369,163 313,042 1. Nature of Operations and Reorganization (Continued) (e) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Inter-company revenues — — 25 Third-party revenues 655,241 386,861 316,632 Cost of revenues (392,569) (282,772) (147,654) Gross profit 262,672 104,089 169,003 Operating expenses (259,867) (284,163) (190,249) Income/(Loss) from operations 2,805 (180,074) (21,246) Share of loss from equity method investments — — 26 Short-term investments income 3,237 1,416 1,768 Others, net 8,572 12,021 5,602 Income/(Loss) before income tax 14,614 (166,637) (13,850) Income tax expenses (19,672) (3,814) (111) Net loss (5,058) (170,451) (13,961) For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Net cash (used in)/provided by operating activities (133,255) 57,273 266,927 Purchase of short-term investments (451,450) (504,571) (571,110) Proceeds from maturities of short-term investments 557,189 423,937 594,927 Investment in long-term investments — — (30,950) Loan paid to inter-company entities — (150) (5,000) Loan collected from inter-company entities — — 5,000 Cash received from customer in relation to advertisement agent services — — 26,295 Cash paid on behalf of the customer in relation to advertisement agent services — — (179,036) Others (7,434) (2,777) (4,180) Net cash (used in)/provided by investing activities 98,305 (83,561) (164,054) Proceeds from initial public offering, net of issuance costs (6,094) (6,000) — Share repurchase (2,333) — — Capital injection from noncontrolling interest shareholders 6,895 520 750 Proceeds from loans provided by inter-company entities 87,170 35,910 25,010 Repayments of loans provided by inter-company entities — (5,000) (103,080) Cash paid in connection with the reorganization (87,170) — — Others (82) (19) 5,000 Net cash provided by/(used in) financing activities (1,614) 25,411 (72,320) Effect of exchange rate changes on cash, cash equivalents, and restricted cash held in foreign currencies (33) — — Increase/(Decrease) in cash, cash equivalents and restricted cash (36,597) (877) 30,553 Cash, cash equivalents and restricted cash at beginning of year 48,968 12,371 11,494 Cash, cash equivalents and restricted cash at end of year 12,371 11,494 42,047 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. (e) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) 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 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, 2021 | |
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. 2. Significant Accounting Policies (Continued) (b) Principles of consolidation (Continued) 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, 2019, 2020 and 2021, the net income/(loss) attributable to the non-controlling interests were a loss of RMB 0.16 million, an income of RMB 0.89 million and a loss of RMB 1.04 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, 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). 2. Significant Accounting Policies (Continued) (d) Functional currency and foreign currency translation (Continued) 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 3.29 million , a net loss of RMB 4.84 million and a net loss of RMB 1.09 million for the years ended December 31, 2019, 2020 and 2021, respectively. (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. Accounting guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities become unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 during the years ended December 31, 2019, 2020 and 2021. The Group’s financial instruments consist principally of cash and cash equivalents, 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. As of December 31, 2020 and 2021, 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. 2. Significant Accounting Policies (Continued) (e) Fair value measurements (Continued) On a recurring basis, the Group measures its short-term investments at fair value. For the details of the short-term investments, please refer to Note 2 (g). On a nonrecurring basis, the Group measures the equity method investments at fair value only when the impairment charges were recognized. For those investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. The fair values of the privately held investments were determined based on the discounted cash flow model using weighted average cost of capital(“WACC”) or based on the similar transaction price in the market directly. There was no impairment recognized for the year ended 2021. 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, 2020 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 — 148,344 — 148,344 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 Wealth management products with Level 2 inputs are valued using quoted subscription or redemption prices published by the banks or using discounted cash flow method at a quoted rate of return provided by banks at the end of each year. (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) 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. 2. Significant Accounting Policies (Continued) (h) 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 early 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. (i) 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 to 5 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). 2. Significant Accounting Policies (Continued) (j) 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. In accordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business environment, legal factors, financial performances, competition, or events affecting the reporting unit. Under ASC 350-20-35, the Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly, which consists of a two-step quantitative impairment test. The first step is comparing the carrying amount of the reporting unit to the fair value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the two-step quantitative goodwill impairment test to measure the amount of impairment loss by comparing the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. (k) 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. (l) Long-term investments The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative and equity investments accounted for using the equity method. 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. 2. Significant Accounting Policies (Continued) (l) Long-term investments (Continued) 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 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”) on a one quarter in arrears basis. The Group continually 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, 2019, 2020 and 2021. (m) 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) 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, mainly in Weibo, Weixin/WeChat, and Toutiao (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, and pop-ups. 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, 2019, 2020 and 2021. 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. 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 on a gross basis. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) II. Enterprise value added services (Continued) (ii) Online/Offline events The Group organizes online and offline 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 considers it should recognize 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 bundle 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. (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 this 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 on 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) III. Subscription services (i) Institutional investor and enterprise subscription services The Group offers institutional investor and enterprise subscription services, a service package to institutional investors and to New Economy companies, which consists of 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 is taken 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 has been 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, 2019, 2020 and 2021 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) III. Subscription services (Continued) In the following table, the total revenue is disaggregated by the major service lines mentioned above. For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Online advertising services 283,426 172,811 214,722 Enterprise value ‑ added services |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
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. Investments—Equity securities (Topic 321), Investments—Equity method and joint ventures (Topic 323), and Derivatives and hedging (Topic 815). Income taxes (Topic 740). |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019, 2020 and 2021 and more than 10% of the Group’s accounts receivable, net as of December 31, 2020 and 2021 were as follows: For the year ended December 31, Revenues 2019 2020 2021 Customer B 31 % 32 % * As of December 31, Accounts receivable 2020 2021 Customer A 11 % * Customer B 39 % 55 % 4. Concentrations and Risks (Continued) (a) Concentration of customers and suppliers (Continued) Suppliers accounting for more than 10% of the Group’s total costs and expenses for the years ended December 31, 2019, 2020 and 2021 were as follows: For the year ended December 31, Costs and expenses 2019 2020 2021 Supplier C 27 % 22 % * * Less than 10% No supplier accounts for more than 10% of the Group’s accounts payable as of December 31, 2020 and 2021. (b) Credit risk The Group’s credit risk primarily arises from cash and cash equivalents, 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. (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, 2021 | |
Accounts Receivable, net | |
Accounts Receivable, net | 5. Accounts Receivable, net Accounts receivable, net consists of the following: December 31, December 31, 2020 2021 RMB’000 RMB’000 Accounts receivable 429,049 302,200 Less: allowance for credit losses (124,204) (122,039) Accounts receivable, net 304,845 180,161 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, 2021, accounts receivable amounted to RMB 129.4 million has been derived from providing financing to the customer in connection with the advertisement agent services that mentioned in Note 2 (m)(II)(iv). 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, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Balance at beginning of the year (2,070) (11,413) (124,204) Additional allowance for credit losses, net of recoveries (9,504) (125,563) (8,681) Write-offs 161 12,772 10,846 Balance at end of the year (11,413) (124,204) (122,039) |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 RMB’000 RMB’000 Prepayments of copyright 7,862 — Deposits 5,108 5,758 Prepayments of IT services 1,205 907 Prepayments of procurement cost 612 32,842 Others 1,532 3,105 Total 16,319 42,612 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 RMB’000 RMB’000 Electronic equipment and computers 16,502 17,532 Office furniture and equipment 2,398 2,725 Leasehold improvement 4,645 4,971 Total 23,545 25,228 Less: accumulated depreciation (11,617) (14,082) Less: impairment (7,987) (7,987) Property and equipment, net 3,941 3,159 Depreciation expenses were RMB 4.20 million, RMB 5.55 million and RMB 2.56 million for the years ended December 31, 2019, 2020 and 2021, respectively. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Long-term investments | 8. Long-term investments Long-term investments consist of the following: December 31, December 31, 2020 2021 RMB’000 RMB’000 Equity investments accounted for using the measurement alternative: Beijing Sharetimes Technology Co., Ltd. — 30,000 Equity investments accounted for using the equity method: 36Kr Global Holding (HK) Limited 16,300 10,466 Shanghai Xuanke Technology Co., Ltd. — 976 Total 16,300 41,442 Until July 2019, 36Kr Global Holding, a 100% owned investment holding company by the Group in Hong Kong, owned a 75% equity interest in KRASIA PLUS PTE. LTD. (“KrAsia”), a subsidiary of the Group in Singapore by then. In July 2019, 36Kr Global Holding acquired 67.5% equity interests in 36Kr Japan Co., Ltd. (“36Kr Japan”) with the consideration of JPY 30 million, equivalent to approximately RMB 2 million. 36Kr Japan was 36Kr’s platform in Japan to conduct similar businesses. Upon the completion of the aforementioned transactions, 36Kr Global Holding became the Group’s investment holding company owning the overseas businesses of the Group. 8. Long-term investments (Continued) In late September 2019, the Group entered into an investment agreement (the "Investment Agreement") with one of the Series D preferred shares investors of the Company, Lotus Walk Inc. (“Lotus”, 100% owned by Bytedance Ltd.). Pursuant to the Investment Agreement, the Group transferred 51% of the equity interest in 36Kr Global Holding to Lotus in exchange for the resources and technologies provided by Lotus to 36Kr Global Holding for the development of its overseas business, the Group agreed to invest US$ 6 million in cash as well. The fair value of the resources and technologies that Lotus provided to 36Kr Global Holding on the disposal date was approximately US$ 6.27 million determined by the Company with the assistance from an independent valuation firm. As a result, 36Kr Global Holding ceased to be a subsidiary of the Group and the remaining 49% equity interest in 36Kr Global Holding was accounted for as an investment using equity method, and the Group began recording its share of the operating results to the consolidated statements of comprehensive income/(loss) on a one quarter in arrears basis. The Group recognized a gain of approximately RMB 11.5 million arising from the deconsolidation of 36Kr Global Holding. The share of loss from the equity method investment in 36Kr Global Holding recorded in the consolidated statements of comprehensive loss were RMB 23.5 million and RMB 5.5 million for the years ended December 31, 2020 and 2021, respectively. In March 2021, the Group entered into a joint venture agreement, in which the Group and three other shareholders agree to jointly establish Shanghai Xuanke Technology Co., Ltd. (“Shanghai Xuanke”), which primarily engages in online video production business. Pursuant to the agreement, the Group owned 19% equity interest of Shanghai Xuanke at a consideration of RMB 0.95 million. The Group has 1 out of 3 seats in the board of directors. The Group considers itself has significant influence over Shanghai Xuanke and accounted for this as equity investment using the equity accounting method. During 2021, the Group recorded a share of gain of RMB 26 thousand from this equity investment. 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 use the measurement alternative defined as cost, less impairments, adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of December 31, 2021, the carrying value of the equity investment in Sharetimes was RMB |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable | |
Taxes Payable | 9. Taxes Payable The following is a summary of taxes payable as of December 31, 2020 and 2021: December 31, December 31, 2020 2021 RMB’000 RMB’000 VAT payable 16,818 12,060 Enterprise income taxes payable 232 80 Withholding individual income taxes for employees 1,466 121 Others 308 575 Total 18,824 12,836 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021: December 31, December 31, 2020 2021 RMB’000 RMB’000 Accrued professional fees 10,459 11,788 Accrued office rental expense 340 177 Accrued employee welfare expense, meal and travel expense 411 1,579 Guarantee deposits 330 330 Withholding employees' social insurance and housing fund 1,082 1,140 Others 938 2,487 Total 13,560 17,501 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 11. Leases The Group has office space under non-cancelable operating lease agreement. A summary of supplemental information related to operating leases as of December 31, 2020 and 2021 are as follows: December 31, December 31, 2020 2021 RMB‘000 RMB‘000 Operating lease right-of-use asset 27,365 13,818 Operating lease liabilities-current (15,132) (16,302) Operating lease liabilities-non-current (12,426) (586) Total operating lease liabilities (27,558) (16,888) Weighted average remaining lease term 2.02 years 1.09 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, 2020 2021 RMB‘000 RMB‘000 Other information Operating lease cost 15,306 15,481 Short-term lease cost 675 572 Total 15,981 16,053 A summary of supplemental cash flow information related to leases are as followed: December 31, December 31, 2020 2021 RMB‘000 RMB‘000 Cash payments for operating leases 15,351 12,604 Right-of-use assets obtained in exchange for lease obligations 546 1,971 11. Leases (Continued) A summary of maturity of operating lease liabilities under the Group’s non-cancelable operating leases as of December 31, 2021 is as follows: December 31, 2021 RMB‘000 2022 16,718 2023 429 2024 214 Total lease payment 17,361 Less: interest 473 Present value of operating lease liabilities 16,888 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
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. In August 2019, the shareholders of the Company agreed to increase the authorized shares to 5,000,000,000 shares. As described in Note 1 (b), the Company issued ordinary shares and preferred shares in August 2019 to the ordinary shareholders and preferred shareholders of Beijing Duoke and Xieli as consideration to swap for the respective similar equity interests that they held in Beijing Duoke. Upon the completion of the Reorganization in August 2019, authorized ordinary shares are 4,326,574,000, of which issued and outstanding and the authorized issued and outstanding Series A-1 A-2 B-1 B-2 B-3 B-4 C-1 On November 8, 2019, the Company completed an Initial Public Offering (IPO) with new issuance of totaling 34,500,000 Class A ordinary shares, representing 1,380,000 ADS, at a price of US$14.5 per ADS. Immediately upon the completion of the IPO, the Company adopted a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares -for-one basis immediately prior to the completion of the IPO, and Series D preferred shares were converted into Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to twenty-five votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares. The Company concluded that the adoption of dual-class share structure did not have a material impact on its consolidated financial statements. 12. Ordinary Shares (Continued) There were 841,275,820 and 96,082,700 Class A and Class B ordinary shares issued outstanding There were 884,846,745 and 96,082,700 Class A and Class B ordinary shares issued, respectively, as of December 31, 2020, and 864,893,195 Class A (excluding 6,957,425 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, 2020. 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. In addition, the outstanding ordinary shares also included 61,006,382, 36,281,400 and 27,507,989 share options under the 2019 incentive plan as of December 31, 2019, 2020 and 2021, 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 16 Share-based Compensation. |
Share repurchase program
Share repurchase program | 12 Months Ended |
Dec. 31, 2021 | |
Share repurchase program | |
Share repurchase program | 13. Share repurchase program In October 2019, the Group repurchased 2,561,468 ordinary shares from certain employees with total consideration of approximately RMB 2.3 million which did not exceed the fair value of the vested restricted shares at repurchase date. 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 (RMB 11.7 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 (RMB 5.8 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. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Redeemable Preferred Shares | |
Convertible Redeemable Preferred Shares | 14. Convertible Redeemable Preferred Shares a. Issuance price per share Name Issuance date RMB Number of shares Series A‑1 preferred shares November 2011 0.01 62,273,127 Series A‑2 preferred shares June 2012 0.06 81,008,717 Series B‑1 preferred shares September 2015 1.24 200,241,529 Series B‑2 preferred shares May 2016 3.21 11,674,379 Series B‑3 preferred shares September 2015 1.24 12,141,515 Series B‑3 preferred shares November 2016 3.12 7,220,212 Series B‑4 preferred shares March 2016 3.21 7,004,073 Series B‑4 preferred shares December 2016 3.21 2,334,688 Series C‑1 preferred shares October 2017 to January 2018 1.53 164,876,000 b. The Group considered that such re-designation, in substance, was the same as a repurchase and cancellation of the Series A-1 preferred shares and simultaneously an issuance of the Series B-3 preferred shares. Therefore the Group recorded 1) difference between the fair value of the Series A-1 preferred shares and the carrying amount of the Series A-1 preferred shares against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional paid-in capital has been exhausted; and 2) difference between the fair value of the Series A-1 preferred shares and the fair value of the Series B-3 preferred shares as deemed distribution to preferred shareholders. c. The Group considered that such re-designation, in substance, was the same as a repurchase and cancellation of the ordinary shares and simultaneously an issuance of the preferred shares. Therefore the Company recorded 1) difference between the fair value and the par value of the ordinary shares, amounted to RMB 29,956,000 and RMB 20,261,000 for the re-designation of ordinary shares into Series B-3 and Series B-4 preferred shares, respectively, against additional paid-in capital or by increasing accumulated deficit once additional paid-in capital has been exhausted; and 2) difference between the fair value of the preferred shares and the fair value of the ordinary shares, amounted to RMB 11,230,000 and RMB 15,554,000 for the re-designation of ordinary shares into Series B-3 and Series B-4 preferred shares, respectively, as share-based compensation expenses in the Company’s consolidated statements of comprehensive income/(loss). d. 14. Convertible Redeemable Preferred Shares (Continued) The Company considered that re-designation and free transfer of shares from ordinary shareholders to preferred shareholders mentioned in (i) above were, in substance, the same as a contribution from ordinary shareholders followed by a cancellation of those ordinary shares and simultaneously an issuance of the preferred shares for no consideration. Therefore the Company recorded the par value of those ordinary shares cancelled into additional paid-in capital, and recorded the fair value of the preferred shares as deemed distribution to preferred shareholders, against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional paid-in capital has been exhausted. The issuance of the preferred shares as mentioned in (ii) above was recognized at the fair value at the date of issuance as mezzanine against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional paid-in capital has been exhausted. e. f. The Series C-2 preferred shares have no redemption right or liquidation preference, share the same voting right with other preferred shareholders, that is each Series C-2 preferred share shall be entitled to such number of votes as equals the whole number of ordinary shares into which such preferred share is convertible into, holders of such preferred shares shall vote together with the ordinary shareholders on all matters submitted to a vote by the members. Furthermore, Series C-2 preferred shares have the same dividend right as Series C-1 preferred shares to receive the dividend prior and in preference to any dividend on the Series B-4, B-3, B-2, B-1, A-2, A-1 preferred shares and the ordinary shares. In the event that any dividend is declared by the board, with respect to each holder of Series C-2 preferred shares, a non-cumulative dividend equal to (i) the dividend per share declared, multiplied by (ii) the number of the preferred shares held by the holders of such series preferred shares; The Company recorded the fair value of Series C-2 on the issuance date in the mezzanine equity to the Consolidated Balance Sheets against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital or by increasing the accumulated deficit once additional paid-in capital has been exhausted. 14. Convertible Redeemable Preferred Shares (Continued) g. Collectively, all the Series A-1, A-2, B-1, B-2, B-3, B-4, C-1, C-2 and D convertible redeemable preferred shares are referred to as the “Preferred Shares”. h. The major rights, preferences and privileges of the Preferred Shares are as follows: Conversion rights The Preferred Shares (exclusive of unpaid shares) would automatically be converted into ordinary shares 1) upon the qualified Initial Public Offering (“QIPO”); or 2) upon the written consent of the holders of a majority of the outstanding Preferred Shares of each class with respect to conversion of each class. The initial conversion ratio of Preferred Shares to ordinary shares shall be 1:1, subject to adjustments in the event of (i) share splits, share dividends, consolidations, recapitalization and similar events, or (ii) issuance of ordinary shares (excluding certain events such as issuance of ordinary shares pursuant to a public offering) at a price per share less than the conversion price in effect on the date of or immediately prior to such issuance or other dilutive events. Voting rights According to the Memorandum and Articles of Association of the Company, at all general meetings of the Company, each Preferred Share shall be entitled to such number of votes as equals the whole number of ordinary shares into which such Preferred Share is convertible immediately after the close of business on the record date of the determination of the Company’s members entitled to vote or, if no such record date is established, at the date such vote is taken or any written consent of the Company’s members is first solicited. Holders of Preferred Shares shall vote together with the ordinary shareholders, and not as a separate class or series, on all matters submitted to a vote by the members. Dividend rights Subject to the Memorandum and Articles, with the prior written approval of the holders of the Preferred Shares representing at least two-thirds of the voting power of the outstanding Preferred shares, voting together as a single class on an as converted basis, the holders of Preferred Shares shall be entitled to receive, when and if declared by the board, non-cumulative dividends. The order of distribution shall be made from senior shares to junior shares. That is from the holders of Series D preferred shares, holders of Series C-1 and C-2 preferred shares, holders of Series B-1 preferred shares, holders of Series B-2, B-3 and B-4 preferred shares, to holders of Series A-1 and A-2 preferred shares. No distribution to junior Preferred Shares until full payment of the amount distributable on the senior Preferred Shares. No dividend shall be paid on the ordinary shares at any time unless and until all dividends on the Preferred Shares have been paid in full. 14. Convertible Redeemable Preferred Shares (Continued) In the event that any dividend is declared by the board, with respect to each Series A-1, A-2, B-1, B-2, B-3, B-4, C-1, and D preferred shareholders, excluding Series C-2 preferred shareholders, a non-cumulative dividend equal to the higher of (i) each series’ issue price × (1 + 8)% N No dividends on preferred and ordinary shares have been declared since the issue date through December 31, 2019, 2020 and 2021. Liquidation preference Subject to any applicable law, in the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or upon the occurrence of any deemed liquidation event, all assets and funds of the Company legally available for distribution to all the shareholders shall be distributed as follows: The holders of preferred shares (exclusive of unpaid shares) shall be entitled to receive an amount per share equal to 100% of the issue price, plus all declared but unpaid dividends on such preferred shares, except for the holders of Series D and C-1 preferred shares who shall be entitled to receive an amount per share equal to the higher of (i) such portion of the assets and funds of the Company as each share (on an as-converted basis) is entitled to on a pro-rata basis ; and (ii) the Series D and C-1 issue price × (1 + 12)% N The order of distribution or payment shall be made from senior shares to junior shares. That is from the holders of Series D preferred shares, holders of Series C-1 Preferred Shares, holders of Series B-1 Preferred Shares, holders of Series B-2, B-3 and B-4 Preferred Shares, holders of Series A-2 Preferred Shares to holders of Series A-1 Preferred Shares. After distribution or payment in full of the amount distributable or payable on the Preferred Shares, the remaining assets and funds of the Company available for distribution to the shareholders shall be distributed ratably among all the shareholders according to the relative number of shares held by such shareholders on an as-converted basis. The deemed liquidation events include any of the following events: (i) any consolidation, amalgamation, scheme of arrangement or merger of the Company or other reorganization in which the shareholders of the Company immediately prior to such consolidation, amalgamation, merger, scheme of arrangement or reorganization own less than fifty percent (50)% of the surviving entity’s voting power in the aggregate immediately after such consolidation, merger, amalgamation, scheme of arrangement or reorganization; (ii) a sale, transfer, lease or other disposition of all or substantially all of the assets of the Group; (iii) any exclusive and irrevocable licensing or sale of all or substantially all of the Group’s intellectual property to a third party (except for the licensing or sale of the Company’s intellectual property in the ordinary course of business); (iv) cessation of the current primary business lines of the Group; (v) requisition or expropriation of any or all material assets of the Group by any governmental authority, which causes a material adverse effect; (vi) occurrence of material losses of any Group company which makes it unable to continue the business; and (vii) occurrence of material losses of any Group company due to force majeur, which makes it unable to continue the business in the foreseeable future; For the avoidance of doubt, the reorganization of the Company for the purpose of an IPO shall not be considered a liquidation event. 14. Convertible Redeemable Preferred Shares (Continued) Redemption right Series A-2, B-1, B-2, B-3, B-4, C-1, and D Preferred Shares shall be redeemable (Series A-1 and C-2 does not have redemption right) at the holder’s discretion, at any time (i) the Company has not completed an IPO or a trade sale approved by the shareholders in writing on or prior to December 31, 2022, (ii) the VIE agreements are held to be invalid or unenforceable under applicable laws and the economic or legal substance of the VIE agreements cannot be preserved by modification of the VIE agreements, (iii) the Company, certain holders of the ordinary shares or Mr. Dagang Feng (“Co-Founder”), is in material breach of its obligations , covenants or undertakings under the shareholders agreement of the Company, which is not waived in writing by the Preferred Shares’ investors, (iv) the representations and warranties of the Company, certain holders of the ordinary shares or the Co-Founder contain any material false or fraudulent statement, which causes a material adverse effect, and (v) certain holders of the ordinary shares or the Co-Founder is in material violation of any applicable law or is subject to any criminal investigation, which causes a material adverse effect. Upon receipt of a redemption notice, the Company and the Co-Founder shall redeem the redeemable Preferred Shares and make payment to the shareholders within ninety days following the receipt of the redemption notice an amount on a per share basis calculated as follows: The redemption price of Series D and C-1 preferred shares would be equal to the sum of (a) the Series D and C-1 issue price × (1 + 10)% N The redemption price of Series B-1, B-2, B-3, and B-4 preferred shares would be equal to the sum of (a) 120% of the Series B-1, B-2, B-3, and B-4 issue price or the fair market value of such shares (whichever is higher), plus (b) any declared but unpaid dividends on a Series B-1, B-2, B-3, and B-4 preferred share; The redemption price of Series A-2 preferred shares would be equal to the sum of 300% of the Series A-2 issue price plus any declared but unpaid dividends on a Series A-2 preferred share; Subject to applicable laws, the Company and the Co-Founder shall, jointly and severally, effect the redemption and make payment of the redemption price to each preferred shareholder in the following sequence and priority: (i) first, pay the Series D redemption price to the holders of Series D preferred shares on a pari passu basis (ii) second, after the full payment of the Series D redemption price, pay the Series C-1 redemption price to the holders of Series C-1 preferred shares on a pari passu basis; (iii) third, after the full payment of the Series D and Series C-1 redemption price, pay the Series B-1 redemption price to the holders of Series B-1 preferred shares on a pari passu basis; (iv) fourth, after the full payment of the Series D, Series C-1 and B-1 redemption price, pay the Series B-2, B-3, B-4 redemption price to the holders of Series B-2, B-3, B-4 preferred shares on a pari passu basis; (v) after redemption in full of the Series D, C-1, B-1, B-2, B-3 and B-4 preferred shares, redeem each Series A2 preferred shares requested to be redeemed. The Co-Founder’s obligations to the redemption right shall be limited to the financial value of the Company’s securities directly or indirectly held by the Co-Founder. The Co-Founder shall not be obligated to make any payment under the Redemption in an amount exceeding the financial value of the Company’s securities directly or indirectly held by the Co-Founder. 14. Convertible Redeemable Preferred Shares (Continued) Accounting for Preferred Shares The Company has classified the Preferred Shares in the mezzanine equity of the Consolidated Balance Sheets as they are contingently redeemable at the holders’ option any time upon occurrences of certain events except for Series A-1 which were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. The Company records accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption dates. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. Each issuance of the Preferred Shares was recognized at the respective fair value at the date of issuance net of issuance cost. In respect of the Co-Founder’s obligation to the redemption right, as it were directly linked to and incurred for the Preferred Shares issuance, the Group views it as appropriate to treat the amount of value related to such obligation as an issuance cost as it is similar to a finder’s fee to find a new investor. Since the underlying shares issued are preferred shares, such issuance costs are recorded as a reduction of the balance of mezzanine, and also deemed as the contribution from the Co-Founder. With the rapid growth of the Group’s business, the Group believes the fair value of such Co-Founder’s obligation is immaterial since inception as the probability of triggering the Co-Founder’s obligation is very remote taking into account independent valuations. The Company has determined that there was no beneficial conversion feature attributable to any of the Preferred Shares because the initial effective conversion price of these Preferred Shares was higher than the fair value of the Company’s ordinary shares determined by the Company with the assistance from an independent valuation firm. When the preferred shareholders converted their Preferred Shares to ordinary shares upon completion of the IPO in November 2019, the Company calculated the accretion value of the preferred share through the IPO date and the difference between the carrying value of the preferred shares on the IPO date and the paid-in capital of ordinary share converted into were recognized in the additional paid-in capital. 14. Convertible Redeemable Preferred Shares (Continued) The Group’s Preferred Shares activities for the years ended December 31, 2019, 2020 and 2021 are summarized as below: Re-designation Re-designation Re-designation of ordinary Accretions of Series A-1 of ordinary shares into Series A-1, A-2, of Preferred into Series shares into Re-designation B-1, B-2, B-3 preferred Re-designation of Conversion and Balance as of Balance as Issuance of Shares to B-3 Series B-3 of ordinary shares shares, and issuance of ordinary shares re-designation December 31, of January 1, Preferred redemption preferred preferred into Series B-4 Series A-1, A-2, B-1, B-2, B- into Series C-2 of Preferred 2019, 2020, 2019 Shares value shares shares preferred shares 3 preferred shares preferred shares Shares and 2021 Series A-1 Preferred Shares Number of shares 62,273,127 — — (10,027,455) — — 13,061,328 — (65,307,000) — Amount (RMB’000) 681 — — (110) — — 41,233 — (41,804) — Series A-2 Preferred Shares Number of shares 81,008,717 — — — — — 20,252,283 — (101,261,000) — Amount (RMB’000) 13,500 — — — — — 63,994 — (77,494) — Series B-1 Preferred Shares Number of shares 200,241,529 — — — — — 50,060,471 — (250,302,000) — Amount (RMB’000) 388,145 — 363,100 — — — 163,340 — (914,585) — Series B-2 Preferred Shares Number of shares 11,674,379 — — — — — 2,918,621 — (14,593,000) — Amount (RMB’000) 45,000 — (1,722) — — — 10,044 — (53,322) — Series B-3 Preferred Shares Number of shares 19,361,727 — — 10,027,455 17,215,818 — 9,500,000 — (56,105,000) — Amount (RMB’000) 48,016 — 57,521 26,897 41,196 — 31,373 — (205,003) — Series B-4 Preferred Shares Number of shares 9,338,761 — — — — 11,643,239 — — (20,982,000) — Amount (RMB’000) 36,000 — 4,845 — — 35,822 — — (76,667) — Series C-1 Preferred Shares Number of shares 164,876,000 — — — — — — — (164,876,000) — Amount (RMB’000) 277,259 — 23,534 — — — — — (300,793) — Series C-2 Preferred Shares Number of shares — — — — — — — 12,545,000 (12,545,000) — Amount (RMB’000) — — — — — — — 36,977 (36,977) — Series D Preferred Shares Number of shares — 39,999,999 — — — — — — (39,999,999) — Amount (RMB’000) — 169,750 1,852 — — — — — (171,602) — Total number of Preferred Shares 548,774,240 39,999,999 — — 17,215,818 11,643,239 95,792,703 12,545,000 (725,970,999) — Total amount of Preferred Shares (RMB’000) 808,601 169,750 449,130 26,787 41,196 35,822 309,984 36,977 (1,878,247) — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 15. 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 2020 through 2022, 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. Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Current income tax expense 22,978 373 155 Deferred taxation (3,085) 3,391 (53) Total 19,893 3,764 102 15. Income Taxes (Continued) Reconciliation of the differences between statutory income tax rate and the effective income tax rate for the years ended December 31, 2019, 2020 and 2021 are as below: For the year ended December 31, 2019 2020 2021 % % % Statutory EIT rate 25.00 25.00 25.00 Effect of non‑deductible expenses(1) (386.74) (5.78) (6.60) Tax incentives for research and development expense(2) 111.56 2.08 9.00 Tax incentives for wages of disabled staff 9.89 0.02 0.05 Preferential tax rate — 1.15 0.48 Change in valuation allowance (154.03) (23.19) (25.55) Non-taxable item (3) 47.58 — — Tax rate difference from statutory rate in other jurisdictions 7.45 (0.72) (2.49) Others 8.72 0.07 — Effective income tax rate (330.57) (1.37) (0.11) (1) It is mainly 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 2019, 2020 and 2021. (3) It is due to the disposal gain arising from the disposal of 36Kr Global Holding. Composition of deferred tax assets 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 consist of the following components: December 31, December 31, 2020 2021 RMB’000 RMB’000 Deferred tax assets - non‑current: —Net operating tax losses carry forwards 30,536 46,031 —Allowances of doubtful accounts 18,906 18,702 —Property and equipment impairment 1,997 1,997 —Others 299 299 Total deferred tax assets 51,738 67,029 Less: valuation allowance (51,738) (67,029) Total deferred tax assets, net — — 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. 15. Income Taxes (Continued) As of December 31, 2021, the Group has incurred accumulated tax losses of RMB 234 million, increased from RMB 143 million as of December 31, 2020. 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 11 million, RMB 28 million, RMB 81 million and RMB 114 million will expire in 2023, 2024, 2025 and after 2025, respectively, if not utilized. The Group believes that it is more likely that these net accumulated tax losses will not be utilized in the future. Therefore, the Group has provided full valuation allowance for the deferred tax assets amounted to RMB 67 million which arose from such net accumulated tax losses as of December 31, 2021. 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, 2021 | |
Share-based Compensation | |
Share-based Compensation | 16. 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 2014 and 2016 incentive plan 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 129,590,471, 5,125,000 and 32,765,413 share options for the years ended December 31, 2019, 2020 and 2021, 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. 16. 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, 2019 2020 2021 Expected volatility 50.22 % 50.22 % 49.29%-50.47 % Expected dividend yield — — — Contractual term (in year) 10 10 10 Risk-free interest rate 1.66 % 1.66 % 1.38%-1.45 % 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. Contractual term is the remaining 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, 2019, 2020 and 2021: Weighted Weighted average average exercise Aggregate intrinsic remaining Number of price US$ per value contractual shares share US$ years Outstanding at December 31, 2018 — — — — Granted during the year 129,590,471 0.0001 Exercised during the year — — Forfeited during the year (3,187,546) 0.0001 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 Exercisable at December 31, 2021 56,003,331 0.0001 16. Share-based Compensation (Continued) The weighted average grant date fair value of share options granted for the years ended December 31, 2019, 2020 and 2021 were RMB 3.81, RMB 0.78 and RMB 0.54, respectively. For the years ended December 31, 2019, 2020 and 2021, total share-based compensation expenses recognized for share options granted were RMB 61.25 million, RMB 39.28 million and RMB 15.02 million, respectively. Nil, 36,613,500 and 18,031,675 share options granted were exercised for the years ended December 31, 2019, 2020 and 2021, respectively. As mentioned above, certain vested restricted share units under 2014 and 2016 incentive plan 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’ (deficit)/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 36,613,500 and 18,031,675 share options legally exercised in 2020 and 2021, there were 24,474,535 and 7,475,213 shares Replacement Share Options included. As of December 31, 2021, the unrecognized share-based compensation expense related to unvested share options granted was RMB 24.17 million. Total unrecognized share-based compensation expenses are expected to be recognized over a weighted average period of 1.02 years. The aggregate number of Class A ordinary shares available for future grant under the 2019 Incentive Plan was 12,710,395 as of December 31, 2021. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and Diluted Net Loss Per Share | |
Basic and Diluted Net Loss Per Share | 17. Basic and Diluted Net Loss Per Share Basic and diluted net loss per share for the years ended December 31, 2019, 2020 and 2021 have been calculated in accordance with ASC 260 as follows: For the years ended December 31, 2019 2020 2021 Net loss per ordinary share - basic: Numerator (RMB’000): Net loss attributable to 36Kr Holdings Inc. (25,911) (279,342) (90,609) Accretion on redeemable non‑controlling interests to redemption value (1,808) — — Accretion of convertible redeemable preferred shares to redemption value (449,130) — — Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares (26,787) — — Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares (309,984) — — Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares (36,977) — — Net loss/(income) attributable to non-controlling interests 156 (889) 1,038 Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic (850,441) (280,231) (89,571) Denominator: Weighted average number of ordinary shares outstanding 368,159,249 1,019,316,944 1,025,068,349 Denominator used in computing net loss per share - basic 368,159,249 1,019,316,944 1,025,068,349 Net loss per ordinary share: - basic (RMB) (2.310) (0.275) (0.087) Net loss per ordinary share – diluted: Numerator (RMB’000): Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic (850,441) (280,231) (89,571) Net loss attributable to ordinary shareholders - diluted (850,441) (280,231) (89,571) Denominator: Denominator used in computing net loss per share - basic 368,159,249 1,019,316,944 1,025,068,349 Denominator used in computing net loss per share - diluted 368,159,249 1,019,316,944 1,025,068,349 Net loss per ordinary share - diluted (RMB) (2.310) (0.275) (0.087) 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, 2019, assumed conversion of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260 due to the anti-dilutive effect. The effects of all outstanding restricted share units and share options granted have also been excluded from the computation of diluted loss per share for the year ended December 31, 2019 as their effects would be anti-dilutive. 17. Basic and Diluted Net Loss Per Share (Continued) For the years ended December 31, 2020 and 2021, there is no anti-dilutive effects that should be excluded from the computation of diluted loss per share. The following ordinary shares equivalents were excluded from the computation to eliminate any antidilutive effect: For the years ended December 31, 2019 2020 2021 Preferred Shares 518,830,264 — — Share‑based awards 30,484,784 — — Total 549,315,048 — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. 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, 2021. (b) Litigation In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. As of December 31, 2021, 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, 2021 | |
Related Party Transactions | |
Related Party Transactions | 19. Related Party Transactions In 2020, the Group purchased information and data services amounted to approximately RMB 3.0 million from Jiangsu Jingzhun Digital Information Industry Development Co., Ltd. ("Jiangsu Jingzhun", previously known as "Beijing Venture Glory Information Technology Co.,Ltd.”), whose chairman of board of directors is a co-founder of the Group. As of December 31, 2020, the amount due to Jiangsu Jingzhun was nil. In 2019, 2020 and 2021, the Group earned revenue for providing advertising and enterprise value-added services to Jiangsu Jingzhun amounted to approximately RMB 5.0 million, RMB 0.8 million and RMB 1.7 million, respectively. As of December 31,2020 and 2021, the amount due from Jiangsu Jingzhun were RMB 58 thousand and RMB 1.3 million, respectively. In 2020, the Group purchased advertising and information services from 36Kr Global Holding and paid salary and other expenses on behalf of 36Kr Global Holding, which amounted to approximately RMB 1.4 million and RMB 1.5 million, respectively. As of December 31, 2020 and 2021, the amount due to 36Kr Global Holding were approximately RMB 0.5 million and nil, respectively. 19. Related Party Transactions (Continued) In 2021, interest income amounted to approximately RMB 47 thousand was 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 subsequently in January and February 2022. In 2021, the Group purchased video production services from Shanghai Xuanke amounted to RMB 1.1 million. As of December 31, 2021, the amount due to Shanghai Xuanke was RMB 1.2 million. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets | |
Restricted Net Assets | 20. 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 186.06 million and RMB 134.03 million as of December 31, 2020 and 2021, 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, 2019, 2020 and 2021. |
COVID -19
COVID -19 | 12 Months Ended |
Dec. 31, 2021 | |
COVID -19 | |
COVID -19 | 21. COVID -19 In December 2019, a novel strain of coronavirus was reported in Wuhan, China and on March 11, 2020 the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has resulted in a widespread health crisis and numerous disease control measures being taken to limit its spread. As the pandemic continues its impact throughout the world, it impacts the operation of the Group’s business especially the delay or cancellation of offline events and offline training. The business and financial position of certain of the Group’s customers were also affected, which adversely affected the financial results of the Group, including but not limited to negative impact to the Group’s total revenues, slower collection of receivables, additional allowance for credit losses, and impairment to the Company’s long-term assets. The Group will continue to monitor and assess the impact of the ongoing development of the pandemic on the Group’s financial condition and operating results. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Event. | |
Subsequent Event | 22. Subsequent Event Investment in Changsha Benweixianwu Brand Management Co., Ltd. (“Benweixianwu”) In February 2022, the Group entered into an investment agreement with Benweixianwu, which primarily engages in operating of high-end low-temperature meat products. Pursuant to this agreement, the Group subscribed 21,200 newly issued ordinary shares with total consideration of RMB 5.0 million, which was paid on February 25, 2022. After the subscription, the Group owned 1.66% equity interests in Benweixianwu. The Group has no significant influence over Benweixianwu. The investment was recorded using measurement alternative defined as cost, less impairment plus or minus subsequent adjustment for the observable price changes, as the readily determinable fair values cannot be obtained with reasonable efforts. Investment in Hangzhou Jialin Information Technology Co., Ltd. (“Hangzhou Jialin”) and disposal of Dianqier In March 2022, the Group, as one of the investors in the round B financing of Hangzhou Jialin, acquired its 7.273% equity interests by transferring the 100% equity interests the Group held in 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 Group acquired is RMB 40 million. The Group expects to recognize approximately RMB 36 million of gain arising from such investment and disposal in the first quarter of 2022. |
Condensed Financial Information
Condensed Financial Information of the Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information of the Company | |
Condensed Financial Information of the Company | 23. 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. The Company did not have significant capital and other commitments or guarantees as of December 31, 2021. 23. Condensed Financial Information of the Company (Continued) Condensed Balance Sheet December 31, December 31, 2020 2021 RMB’000 RMB’000 Current assets: Cash and cash equivalents 48,510 31,833 Amount due from inter-company entities — 468 Receivables due from related parties 29 10 Prepayments and other current assets 181 180 Non ‑ current assets: Investments in subsidiaries, VIE and subsidiaries of VIE 351,816 285,624 Total assets 400,536 318,115 Current liabilities: Amount due to inter-company entities 14,762 14,463 Salary and welfare payables — 361 Accrued liabilities and other payables 4,953 3,886 Total liabilities 19,715 18,710 Commitments and Contingencies (Note 18) Shareholders' equity : Class A ordinary shares (US$0.0001 par value per share; 4,903,917,300 shares authorized, 621 628 Class B ordinary shares (US$0.0001 par value per share; 96,082,700 shares authorized, 96,082,700 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 66 66 Additional paid-in capital 2,040,693 2,049,448 Treasury stock (US$ 0.0001 par value; shares as of December 31, 2020 and 2021, respectively) (14,081) (13,598) Accumulated deficit (1,638,581) (1,728,152) Accumulated other comprehensive loss (7,897) (8,987) Total 36Kr Holdings Inc.'s shareholders’ equity 380,821 299,405 Total liabilities and shareholders’ equity 400,536 318,115 23. Condensed Financial Information of the Company (Continued) Condensed Statement of Operations and Comprehensive Loss For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Operating expenses: Sales and marketing expenses — (55) (282) General and administrative expenses (2,435) (9,439) (9,269) Total operating expenses (2,435) (9,494) (9,551) Loss from operations (2,435) (9,494) (9,551) Other income/(expenses): Share of loss from subsidiaries, VIE and subsidiaries of VIE (23,797) (272,297) (80,559) Interest income 484 983 64 Interest expense (73) (14) (70) Others, net 66 591 545 Loss before income tax (25,755) (280,231) (89,571) Income tax expense — — — Net loss (25,755) (280,231) (89,571) Accretion on redeemable non-controlling interests to redemption value (1,808) — — Accretion of convertible redeemable preferred shares to redemption value (449,130) — — Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares (26,787) — — Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares (309,984) — — Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares (36,977) — — Net loss attributable to 36Kr Holdings Inc.’s ordinary shareholders (850,441) (280,231) (89,571) Condensed Statement of Cash Flows For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Net cash used in operating activities (1,604) (3,298) (9,857) Net cash used in investing activities (210,769) (77,536) — Net cash provided by/(used in) financing activities 371,659 (27,360) (5,773) Effect of exchange rate changes on cash, and cash equivalents held in foreign currencies (248) (2,334) (1,047) Net increase/(decrease) in cash and cash equivalents 159,038 (110,528) (16,677) Cash and cash equivalents at beginning of the year — 159,038 48,510 Cash and cash equivalents at end of the year 159,038 48,510 31,833 The Condensed Financial Information of the Company for the year ended December 31, 2019 has been revised to correct an immaterial error related to presentation of cash flows of investment in subsidiaries. Such cash flow was previously presented in error as cash flows in financing activities of the Company and has been revised to cash flows in investing activities of the Company. The impact of the above presentation error was not material to the previously issued financial statements taken as a whole. 23. Condensed Financial Information of the Company (Continued) The following table presents the summary information of the revision: Condensed Statement of Cash Flows for the year ended December 31, 2019 As reported Revision As revised RMB'000 RMB'000 RMB'000 Net cash used in investing activities (123,599) (87,170) (210,769) Net cash provided by financing activities 284,489 87,170 371,659 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. 2. Significant Accounting Policies (Continued) (b) Principles of consolidation (Continued) 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, 2019, 2020 and 2021, the net income/(loss) attributable to the non-controlling interests were a loss of RMB 0.16 million, an income of RMB 0.89 million and a loss of RMB 1.04 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, 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). 2. Significant Accounting Policies (Continued) (d) Functional currency and foreign currency translation (Continued) 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 3.29 million , a net loss of RMB 4.84 million and a net loss of RMB 1.09 million for the years ended December 31, 2019, 2020 and 2021, 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. Accounting guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities become unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 during the years ended December 31, 2019, 2020 and 2021. The Group’s financial instruments consist principally of cash and cash equivalents, 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. As of December 31, 2020 and 2021, 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. 2. Significant Accounting Policies (Continued) (e) Fair value measurements (Continued) On a recurring basis, the Group measures its short-term investments at fair value. For the details of the short-term investments, please refer to Note 2 (g). On a nonrecurring basis, the Group measures the equity method investments at fair value only when the impairment charges were recognized. For those investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. The fair values of the privately held investments were determined based on the discounted cash flow model using weighted average cost of capital(“WACC”) or based on the similar transaction price in the market directly. There was no impairment recognized for the year ended 2021. 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, 2020 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 — 148,344 — 148,344 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 Wealth management products with Level 2 inputs are valued using quoted subscription or redemption prices published by the banks or using discounted cash flow method at a quoted rate of return provided by banks at the end of each year. |
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. |
Short-term investments | (g) 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 | (h) 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 early 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 | (i) 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 to 5 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 | 2. Significant Accounting Policies (Continued) (j) 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. In accordance with ASC 350, Goodwill and Other Intangible Assets, recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances include a significant change in stock prices, business environment, legal factors, financial performances, competition, or events affecting the reporting unit. Under ASC 350-20-35, the Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly, which consists of a two-step quantitative impairment test. The first step is comparing the carrying amount of the reporting unit to the fair value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the two-step quantitative goodwill impairment test to measure the amount of impairment loss by comparing the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. |
Impairment of long-lived assets | (k) 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 | (l) Long-term investments The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative and equity investments accounted for using the equity method. 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. 2. Significant Accounting Policies (Continued) (l) Long-term investments (Continued) 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 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”) on a one quarter in arrears basis. The Group continually 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, 2019, 2020 and 2021. |
Revenue recognition | (m) 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) 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, mainly in Weibo, Weixin/WeChat, and Toutiao (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, and pop-ups. 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, 2019, 2020 and 2021. 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. 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 on a gross basis. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) II. Enterprise value added services (Continued) (ii) Online/Offline events The Group organizes online and offline 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 considers it should recognize 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 bundle 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. (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 this 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 on 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) III. Subscription services (i) Institutional investor and enterprise subscription services The Group offers institutional investor and enterprise subscription services, a service package to institutional investors and to New Economy companies, which consists of 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 is taken 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 has been 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, 2019, 2020 and 2021 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. 2. Significant Accounting Policies (Continued) (m) Revenue recognition (Continued) III. Subscription services (Continued) In the following table, the total revenue is disaggregated by the major service lines mentioned above. For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Online advertising services 283,426 172,811 214,722 Enterprise value ‑ added services Integrated marketing 250,344 133,599 1,342 Offline events 53,861 26,992 32,127 Consulting 15,264 32,622 36,867 Advertisement agent services — — 3,696 Revenue for Enterprise value ‑ added services 319,469 193,213 74,032 Subscription services Institutional investor subscription services 20,039 16,036 25,490 Enterprise subscription services 2,077 361 94 Individual subscription services 30,595 4,343 2,441 Revenue for Subscription services 52,711 20,740 28,025 Total revenue 655,606 386,764 316,779 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, 2020 and 2021, 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, 2019, 2020 and 2021 that was included in the contract liabilities balance at the beginning of the period was RMB 4.23 million, RMB 8.16 million and RMB 18.85 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. 2. Significant Accounting Policies (Continued) |
Cost of revenues | (n) 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 | (o) 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, 2019, 2020 and 2021, total advertising expenses were RMB 0.70 million, RMB 6.34 million and RMB 7.27 million, respectively. |
General and administrative expenses | (p) 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 doubtful accounts, 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 | (q) 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 | (r) 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. 2. Significant Accounting Policies (Continued) (r) Operating lease and adoption of ASU 2016-02 (Contined) 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. As a result of the adoption, the Group recorded an operating lease right-of-use assets and lease liabilities of approximately RMB 41.9 million and RMB 42.1 million, respectively,on January 1, 2020, primarily related to the leased office space. The adoption had no material impact on the Group’s consolidated statements of comprehensive income/(loss) for the year ended December 31, 2020 or the opening balance of accumulated deficit as of January 1, 2020. |
Share-based compensation | (s) 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 | (t) 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 32.90 million, RMB 21.18 million and RMB 36.41 million for the years ended December 31, 2019, 2020 and 2021, respectively. |
Taxation | (u) 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, 2019, 2020 and 2021. |
Government grant | (v) Government grant Government grant 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, 2019, 2020 and 2021, government grants amounted to approximately RMB 0.5 million, RMB 10.1 million, and RMB 3.3 million, respectively. |
Other income - Others, net | (w) Other income — Others, net Others, net mainly represent interest income, interest expense, and foreign currency exchange gains or losses. |
Comprehensive income | (x) 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 | (y) 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 | (z) 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 | (aa) 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. 2. Significant Accounting Policies (Continued) (aa) Statutory reserves (Continued) 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 was RMB 1.08 million, RMB 0.66 million and RMB 0.30 million for the years ended December 31, 2019, 2020 and 2021, respectively. |
Net loss per share | (ab) Net loss per share Net loss per share is computed in accordance with ASC 260, “Earnings per Share”. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. The Company’s convertible redeemable preferred shares may be considered as participating securities because they are entitled to receive dividends or distributions on an as if converted basis if the Group has net income available for distribution under certain circumstances. Net losses are not allocated to other participating securities as they are not obligated to share the losses based on their contractual terms. 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 the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the vesting of the restricted share units or the exercise of share options, using the treasury stock method. |
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. Investments—Equity securities (Topic 321), Investments—Equity method and joint ventures (Topic 323), and Derivatives and hedging (Topic 815). Income taxes (Topic 740). |
Nature of Operations and Reor_2
Nature of Operations and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 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 Beijing Dianqier Creative Interactive Media Culture Co., Ltd. (“Dianqier”) The PRC, established in 2017 100 % Enterprise value‑added services 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 | 1. Nature of Operations and Reorganization (Continued) (e) 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, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 is included in the accompanying consolidated financial statements of the Group as follows: December 31, December 31, 2020 2021 RMB’000 RMB’000 Current assets: Cash and cash equivalents 11,494 42,047 Short‑term investments 122,277 99,017 Accounts receivable, net 304,845 179,986 Amounts due from the Company and its subsidiaries 16,106 16,137 Receivables due from related parties of the Group 89 3,620 Prepayments and other current assets 14,566 42,312 Non‑current assets: Property and equipment, net 3,937 3,157 Intangible assets, net 471 808 Long-term investments, net — 30,976 Operating lease right-of-use assets, net 27,365 13,818 Total assets 501,150 431,878 Current liabilities: Accounts payable 64,641 56,069 Salary and welfare payables 32,749 37,631 Taxes payable 17,207 11,311 Deferred revenue 18,849 28,863 Amounts due to the Company and its subsidiaries 199,392 143,331 Amounts due to related parties of the Group 548 1,328 Accrued liabilities and other payables 8,219 12,621 Short-term bank loan — 5,000 Operating lease liabilities 15,132 16,302 Non-current liabilities: Operating lease liabilities 12,426 586 Total liabilities 369,163 313,042 1. Nature of Operations and Reorganization (Continued) (e) Contractual agreements with the VIE (Continued) Risks in relation to the VIE structure (Continued) For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Inter-company revenues — — 25 Third-party revenues 655,241 386,861 316,632 Cost of revenues (392,569) (282,772) (147,654) Gross profit 262,672 104,089 169,003 Operating expenses (259,867) (284,163) (190,249) Income/(Loss) from operations 2,805 (180,074) (21,246) Share of loss from equity method investments — — 26 Short-term investments income 3,237 1,416 1,768 Others, net 8,572 12,021 5,602 Income/(Loss) before income tax 14,614 (166,637) (13,850) Income tax expenses (19,672) (3,814) (111) Net loss (5,058) (170,451) (13,961) For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Net cash (used in)/provided by operating activities (133,255) 57,273 266,927 Purchase of short-term investments (451,450) (504,571) (571,110) Proceeds from maturities of short-term investments 557,189 423,937 594,927 Investment in long-term investments — — (30,950) Loan paid to inter-company entities — (150) (5,000) Loan collected from inter-company entities — — 5,000 Cash received from customer in relation to advertisement agent services — — 26,295 Cash paid on behalf of the customer in relation to advertisement agent services — — (179,036) Others (7,434) (2,777) (4,180) Net cash (used in)/provided by investing activities 98,305 (83,561) (164,054) Proceeds from initial public offering, net of issuance costs (6,094) (6,000) — Share repurchase (2,333) — — Capital injection from noncontrolling interest shareholders 6,895 520 750 Proceeds from loans provided by inter-company entities 87,170 35,910 25,010 Repayments of loans provided by inter-company entities — (5,000) (103,080) Cash paid in connection with the reorganization (87,170) — — Others (82) (19) 5,000 Net cash provided by/(used in) financing activities (1,614) 25,411 (72,320) Effect of exchange rate changes on cash, cash equivalents, and restricted cash held in foreign currencies (33) — — Increase/(Decrease) in cash, cash equivalents and restricted cash (36,597) (877) 30,553 Cash, cash equivalents and restricted cash at beginning of year 48,968 12,371 11,494 Cash, cash equivalents and restricted cash at end of year 12,371 11,494 42,047 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Schedule of assets and liabilities measured at fair value on a recurring basis | As of December 31, 2020 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 — 148,344 — 148,344 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 |
Schedule of estimated useful lives of property and equipment, net | Estimated useful life Electronic equipment and computers 3 to 5 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, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Online advertising services 283,426 172,811 214,722 Enterprise value ‑ added services Integrated marketing 250,344 133,599 1,342 Offline events 53,861 26,992 32,127 Consulting 15,264 32,622 36,867 Advertisement agent services — — 3,696 Revenue for Enterprise value ‑ added services 319,469 193,213 74,032 Subscription services Institutional investor subscription services 20,039 16,036 25,490 Enterprise subscription services 2,077 361 94 Individual subscription services 30,595 4,343 2,441 Revenue for Subscription services 52,711 20,740 28,025 Total revenue 655,606 386,764 316,779 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenues | Customer risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31, Revenues 2019 2020 2021 Customer B 31 % 32 % * |
Accounts receivable | Customer risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | As of December 31, Accounts receivable 2020 2021 Customer A 11 % * Customer B 39 % 55 % |
Costs and expenses | Supplier risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31, Costs and expenses 2019 2020 2021 Supplier C 27 % 22 % * |
Accounts payable | Supplier risk | |
Concentration Risk [Line Items] | |
Summary of concentration of risk | For the year ended December 31, Costs and expenses 2019 2020 2021 Supplier C 27 % 22 % * * Less than 10% |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable, net | |
Schedule of accounts receivable, net | December 31, December 31, 2020 2021 RMB’000 RMB’000 Accounts receivable 429,049 302,200 Less: allowance for credit losses (124,204) (122,039) Accounts receivable, net 304,845 180,161 |
Schedule of allowance for doubtful accounts | For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Balance at beginning of the year (2,070) (11,413) (124,204) Additional allowance for credit losses, net of recoveries (9,504) (125,563) (8,681) Write-offs 161 12,772 10,846 Balance at end of the year (11,413) (124,204) (122,039) |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets | |
Schedule of prepayments and other current assets | December 31, December 31, 2020 2021 RMB’000 RMB’000 Prepayments of copyright 7,862 — Deposits 5,108 5,758 Prepayments of IT services 1,205 907 Prepayments of procurement cost 612 32,842 Others 1,532 3,105 Total 16,319 42,612 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment, net | |
Schedule of property and equipment | December 31, December 31, 2020 2021 RMB’000 RMB’000 Electronic equipment and computers 16,502 17,532 Office furniture and equipment 2,398 2,725 Leasehold improvement 4,645 4,971 Total 23,545 25,228 Less: accumulated depreciation (11,617) (14,082) Less: impairment (7,987) (7,987) Property and equipment, net 3,941 3,159 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Schedule of long term investments | December 31, December 31, 2020 2021 RMB’000 RMB’000 Equity investments accounted for using the measurement alternative: Beijing Sharetimes Technology Co., Ltd. — 30,000 Equity investments accounted for using the equity method: 36Kr Global Holding (HK) Limited 16,300 10,466 Shanghai Xuanke Technology Co., Ltd. — 976 Total 16,300 41,442 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable | |
Schedule of summary of taxes payable | December 31, December 31, 2020 2021 RMB’000 RMB’000 VAT payable 16,818 12,060 Enterprise income taxes payable 232 80 Withholding individual income taxes for employees 1,466 121 Others 308 575 Total 18,824 12,836 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables | |
Schedule of accrued liabilities and other payables | December 31, December 31, 2020 2021 RMB’000 RMB’000 Accrued professional fees 10,459 11,788 Accrued office rental expense 340 177 Accrued employee welfare expense, meal and travel expense 411 1,579 Guarantee deposits 330 330 Withholding employees' social insurance and housing fund 1,082 1,140 Others 938 2,487 Total 13,560 17,501 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Summary of supplemental information related to operating leases | December 31, December 31, 2020 2021 RMB‘000 RMB‘000 Operating lease right-of-use asset 27,365 13,818 Operating lease liabilities-current (15,132) (16,302) Operating lease liabilities-non-current (12,426) (586) Total operating lease liabilities (27,558) (16,888) Weighted average remaining lease term 2.02 years 1.09 years Weighted average discount rate 4.75 % 4.75 % |
Summary of lease cost | December 31, December 31, 2020 2021 RMB‘000 RMB‘000 Other information Operating lease cost 15,306 15,481 Short-term lease cost 675 572 Total 15,981 16,053 |
Summary of supplemental cash flow information related to leases | December 31, December 31, 2020 2021 RMB‘000 RMB‘000 Cash payments for operating leases 15,351 12,604 Right-of-use assets obtained in exchange for lease obligations 546 1,971 |
Summary of maturity of operating lease liabilities under the Group's non-cancelable operating leases | December 31, 2021 RMB‘000 2022 16,718 2023 429 2024 214 Total lease payment 17,361 Less: interest 473 Present value of operating lease liabilities 16,888 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Redeemable Preferred Shares | |
Schedule of issuances of convertible redeemable preferred shares | Issuance price per share Name Issuance date RMB Number of shares Series A‑1 preferred shares November 2011 0.01 62,273,127 Series A‑2 preferred shares June 2012 0.06 81,008,717 Series B‑1 preferred shares September 2015 1.24 200,241,529 Series B‑2 preferred shares May 2016 3.21 11,674,379 Series B‑3 preferred shares September 2015 1.24 12,141,515 Series B‑3 preferred shares November 2016 3.12 7,220,212 Series B‑4 preferred shares March 2016 3.21 7,004,073 Series B‑4 preferred shares December 2016 3.21 2,334,688 Series C‑1 preferred shares October 2017 to January 2018 1.53 164,876,000 |
Schedule of preferred shares activities | Re-designation Re-designation Re-designation of ordinary Accretions of Series A-1 of ordinary shares into Series A-1, A-2, of Preferred into Series shares into Re-designation B-1, B-2, B-3 preferred Re-designation of Conversion and Balance as of Balance as Issuance of Shares to B-3 Series B-3 of ordinary shares shares, and issuance of ordinary shares re-designation December 31, of January 1, Preferred redemption preferred preferred into Series B-4 Series A-1, A-2, B-1, B-2, B- into Series C-2 of Preferred 2019, 2020, 2019 Shares value shares shares preferred shares 3 preferred shares preferred shares Shares and 2021 Series A-1 Preferred Shares Number of shares 62,273,127 — — (10,027,455) — — 13,061,328 — (65,307,000) — Amount (RMB’000) 681 — — (110) — — 41,233 — (41,804) — Series A-2 Preferred Shares Number of shares 81,008,717 — — — — — 20,252,283 — (101,261,000) — Amount (RMB’000) 13,500 — — — — — 63,994 — (77,494) — Series B-1 Preferred Shares Number of shares 200,241,529 — — — — — 50,060,471 — (250,302,000) — Amount (RMB’000) 388,145 — 363,100 — — — 163,340 — (914,585) — Series B-2 Preferred Shares Number of shares 11,674,379 — — — — — 2,918,621 — (14,593,000) — Amount (RMB’000) 45,000 — (1,722) — — — 10,044 — (53,322) — Series B-3 Preferred Shares Number of shares 19,361,727 — — 10,027,455 17,215,818 — 9,500,000 — (56,105,000) — Amount (RMB’000) 48,016 — 57,521 26,897 41,196 — 31,373 — (205,003) — Series B-4 Preferred Shares Number of shares 9,338,761 — — — — 11,643,239 — — (20,982,000) — Amount (RMB’000) 36,000 — 4,845 — — 35,822 — — (76,667) — Series C-1 Preferred Shares Number of shares 164,876,000 — — — — — — — (164,876,000) — Amount (RMB’000) 277,259 — 23,534 — — — — — (300,793) — Series C-2 Preferred Shares Number of shares — — — — — — — 12,545,000 (12,545,000) — Amount (RMB’000) — — — — — — — 36,977 (36,977) — Series D Preferred Shares Number of shares — 39,999,999 — — — — — — (39,999,999) — Amount (RMB’000) — 169,750 1,852 — — — — — (171,602) — Total number of Preferred Shares 548,774,240 39,999,999 — — 17,215,818 11,643,239 95,792,703 12,545,000 (725,970,999) — Total amount of Preferred Shares (RMB’000) 808,601 169,750 449,130 26,787 41,196 35,822 309,984 36,977 (1,878,247) — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of composition of income tax expenses | For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Current income tax expense 22,978 373 155 Deferred taxation (3,085) 3,391 (53) Total 19,893 3,764 102 |
Schedule of reconciliation of the differences between statutory income tax rate and the effective income tax rate | For the year ended December 31, 2019 2020 2021 % % % Statutory EIT rate 25.00 25.00 25.00 Effect of non‑deductible expenses(1) (386.74) (5.78) (6.60) Tax incentives for research and development expense(2) 111.56 2.08 9.00 Tax incentives for wages of disabled staff 9.89 0.02 0.05 Preferential tax rate — 1.15 0.48 Change in valuation allowance (154.03) (23.19) (25.55) Non-taxable item (3) 47.58 — — Tax rate difference from statutory rate in other jurisdictions 7.45 (0.72) (2.49) Others 8.72 0.07 — Effective income tax rate (330.57) (1.37) (0.11) (1) It is mainly 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 2019, 2020 and 2021. (3) It is due to the disposal gain arising from the disposal of 36Kr Global Holding. |
Schedule of composition of deferred tax assets | December 31, December 31, 2020 2021 RMB’000 RMB’000 Deferred tax assets - non‑current: —Net operating tax losses carry forwards 30,536 46,031 —Allowances of doubtful accounts 18,906 18,702 —Property and equipment impairment 1,997 1,997 —Others 299 299 Total deferred tax assets 51,738 67,029 Less: valuation allowance (51,738) (67,029) Total deferred tax assets, net — — |
Share-based Compensation (Table
Share-based Compensation (Tables) - 2019 Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of fair value assumptions on options | For the year ended December 31, 2019 2020 2021 Expected volatility 50.22 % 50.22 % 49.29%-50.47 % Expected dividend yield — — — Contractual term (in year) 10 10 10 Risk-free interest rate 1.66 % 1.66 % 1.38%-1.45 % |
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, 2018 — — — — Granted during the year 129,590,471 0.0001 Exercised during the year — — Forfeited during the year (3,187,546) 0.0001 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 Exercisable at December 31, 2021 56,003,331 0.0001 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basic and Diluted Net Loss Per Share | |
Schedule of basic and diluted net loss per share calculated in accordance with ASC 260 | For the years ended December 31, 2019 2020 2021 Net loss per ordinary share - basic: Numerator (RMB’000): Net loss attributable to 36Kr Holdings Inc. (25,911) (279,342) (90,609) Accretion on redeemable non‑controlling interests to redemption value (1,808) — — Accretion of convertible redeemable preferred shares to redemption value (449,130) — — Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares (26,787) — — Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares (309,984) — — Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares (36,977) — — Net loss/(income) attributable to non-controlling interests 156 (889) 1,038 Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic (850,441) (280,231) (89,571) Denominator: Weighted average number of ordinary shares outstanding 368,159,249 1,019,316,944 1,025,068,349 Denominator used in computing net loss per share - basic 368,159,249 1,019,316,944 1,025,068,349 Net loss per ordinary share: - basic (RMB) (2.310) (0.275) (0.087) Net loss per ordinary share – diluted: Numerator (RMB’000): Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic (850,441) (280,231) (89,571) Net loss attributable to ordinary shareholders - diluted (850,441) (280,231) (89,571) Denominator: Denominator used in computing net loss per share - basic 368,159,249 1,019,316,944 1,025,068,349 Denominator used in computing net loss per share - diluted 368,159,249 1,019,316,944 1,025,068,349 Net loss per ordinary share - diluted (RMB) (2.310) (0.275) (0.087) |
Schedule of ordinary shares equivalents that were excluded from the computation to eliminate any antidilutive effect | For the years ended December 31, 2019 2020 2021 Preferred Shares 518,830,264 — — Share‑based awards 30,484,784 — — Total 549,315,048 — — |
Condensed Financial Informati_2
Condensed Financial Information of the Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information of the Company | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, December 31, 2020 2021 RMB’000 RMB’000 Current assets: Cash and cash equivalents 48,510 31,833 Amount due from inter-company entities — 468 Receivables due from related parties 29 10 Prepayments and other current assets 181 180 Non ‑ current assets: Investments in subsidiaries, VIE and subsidiaries of VIE 351,816 285,624 Total assets 400,536 318,115 Current liabilities: Amount due to inter-company entities 14,762 14,463 Salary and welfare payables — 361 Accrued liabilities and other payables 4,953 3,886 Total liabilities 19,715 18,710 Commitments and Contingencies (Note 18) Shareholders' equity : Class A ordinary shares (US$0.0001 par value per share; 4,903,917,300 shares authorized, 621 628 Class B ordinary shares (US$0.0001 par value per share; 96,082,700 shares authorized, 96,082,700 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 66 66 Additional paid-in capital 2,040,693 2,049,448 Treasury stock (US$ 0.0001 par value; shares as of December 31, 2020 and 2021, respectively) (14,081) (13,598) Accumulated deficit (1,638,581) (1,728,152) Accumulated other comprehensive loss (7,897) (8,987) Total 36Kr Holdings Inc.'s shareholders’ equity 380,821 299,405 Total liabilities and shareholders’ equity 400,536 318,115 |
Condensed Statement of Operations and Comprehensive Loss | Condensed Statement of Operations and Comprehensive Loss For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Operating expenses: Sales and marketing expenses — (55) (282) General and administrative expenses (2,435) (9,439) (9,269) Total operating expenses (2,435) (9,494) (9,551) Loss from operations (2,435) (9,494) (9,551) Other income/(expenses): Share of loss from subsidiaries, VIE and subsidiaries of VIE (23,797) (272,297) (80,559) Interest income 484 983 64 Interest expense (73) (14) (70) Others, net 66 591 545 Loss before income tax (25,755) (280,231) (89,571) Income tax expense — — — Net loss (25,755) (280,231) (89,571) Accretion on redeemable non-controlling interests to redemption value (1,808) — — Accretion of convertible redeemable preferred shares to redemption value (449,130) — — Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares (26,787) — — Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares (309,984) — — Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares (36,977) — — Net loss attributable to 36Kr Holdings Inc.’s ordinary shareholders (850,441) (280,231) (89,571) |
Condensed Statement of Cash Flows | Condensed Statement of Cash Flows For the year ended December 31, 2019 2020 2021 RMB’000 RMB’000 RMB’000 Net cash used in operating activities (1,604) (3,298) (9,857) Net cash used in investing activities (210,769) (77,536) — Net cash provided by/(used in) financing activities 371,659 (27,360) (5,773) Effect of exchange rate changes on cash, and cash equivalents held in foreign currencies (248) (2,334) (1,047) Net increase/(decrease) in cash and cash equivalents 159,038 (110,528) (16,677) Cash and cash equivalents at beginning of the year — 159,038 48,510 Cash and cash equivalents at end of the year 159,038 48,510 31,833 |
Summary information of the revision of cashflows | Condensed Statement of Cash Flows for the year ended December 31, 2019 As reported Revision As revised RMB'000 RMB'000 RMB'000 Net cash used in investing activities (123,599) (87,170) (210,769) Net cash provided by financing activities 284,489 87,170 371,659 |
Nature of Operations and Reor_3
Nature of Operations and Reorganization - Reorganization and Initial Public Offering (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 08, 2019CNY (¥)shares | Nov. 08, 2019USD ($)$ / sharesshares | Aug. 02, 2019 | Dec. 31, 2021 | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Reorganization | ||||||
Proceeds from initial public offering, net of issuance costs | ¥ | ¥ (21,617) | ¥ 109,045 | ||||
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 | ||||
Issuance price per share (in US dollar per share) | $ / shares | $ 14.50 | |||||
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) | 100.00% | |||||
Principal activities | Investment holding | |||||
36Kr Holdings (HK) Limited ("36Kr HK" or "HK Subsidiary") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Principal activities | Investment holding | |||||
Tianjin Duoke Investment Co., Ltd. ("Tianjin Duoke") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Principal activities | Investment holding | |||||
Beijing Dake | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Principal activities | Management consulting | |||||
Beijing Duoke | ||||||
Reorganization | ||||||
Percentage of ownership in VIEs | 100.00% | |||||
Principal activities | 36Kr Business | |||||
Beijing Dianqier Creative Interactive Media Culture Co., Ltd. ("Dianqier") | ||||||
Reorganization | ||||||
Percentage of ownership in VIEs | 100.00% | |||||
Principal activities | Enterprise value‑added services | |||||
Zhejiang Pinxin Technology Co., Ltd. | ||||||
Reorganization | ||||||
Percentage of ownership in VIEs | 100.00% | |||||
Principal activities | Investment holding | |||||
Tianjin Dake Information Technology Co., Ltd. ("Tianjin Dake") | ||||||
Reorganization | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Principal activities | Management consulting |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | ¥ 96,965 | ¥ 60,846 | |
Shortterm investments | 119,140 | 148,344 | |
Accounts receivable, net | 180,161 | 304,845 | |
Receivables due from related parties | 3,630 | 98 | |
Prepayments and other current assets | 42,612 | 16,319 | |
Noncurrent assets: | |||
Property and equipment, net | 3,159 | 3,941 | |
Intangible assets, net | 808 | 471 | |
Long-term investments, net | 41,442 | 16,300 | |
Operating lease right-of-use assets, net | 13,818 | 27,365 | |
Total assets | 501,735 | 578,529 | |
Current liabilities: | |||
Accounts payable | 56,266 | 64,641 | |
Salary and welfare payables | 55,788 | 45,580 | |
Taxes payable | 12,836 | 18,824 | |
Deferred revenue | 28,863 | 18,849 | |
Amounts due to related parties | 1,328 | 548 | |
Accrued liabilities and other payables | 17,501 | 13,560 | |
Short-term bank loan | 5,000 | ||
Operating lease liabilities | 16,302 | 15,132 | |
Non-current liabilities: | |||
Operating lease liabilities | 586 | 12,426 | |
Total liabilities | 194,470 | 189,560 | |
Cash flows from operating activities: | |||
Revenues | 316,779 | 386,764 | ¥ 655,606 |
Cost of revenues | (128,844) | (261,372) | (380,290) |
Gross Profit | 187,935 | 125,392 | 275,316 |
Operating expenses | 282,041 | 392,710 | 298,183 |
Income/(Loss) from operations | (94,106) | (267,318) | (22,867) |
Share of loss from equity method investments | 5,473 | 23,502 | |
Shortterm investment income | 2,485 | 1,859 | 4,115 |
Others, net | 3,283 | 3,280 | 783 |
Income/(Loss) before income tax | (90,507) | (275,578) | (6,018) |
Income tax expenses | 102 | 3,764 | 19,893 |
Net loss | (90,609) | (279,342) | (25,911) |
Net cash (used in)/provided by operating activities | 194,961 | (17,125) | (158,937) |
Cash flows from investing activities: | |||
Net cash (used in)/provided by investing activities | (157,997) | (64,289) | 9,885 |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (21,617) | 109,045 | |
Share repurchase | (5,780) | (11,748) | (2,333) |
Net cash provided by/(used in) financing activities | (23) | (32,837) | 278,337 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash held in foreign currencies | (822) | (2,780) | (376) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 36,119 | (117,031) | 128,909 |
Cash, cash equivalents and restricted cash at beginning of the year | 60,846 | 177,877 | 48,968 |
Cash, cash equivalents and restricted cash at end of the year | 96,965 | 60,846 | 177,877 |
VIEs | |||
Current assets: | |||
Cash and cash equivalents | 42,047 | 11,494 | |
Shortterm investments | 99,017 | 122,277 | |
Accounts receivable, net | 179,986 | 304,845 | |
Amounts due from the Company and its subsidiaries | 16,137 | 16,106 | |
Receivables due from related parties | 3,620 | 89 | |
Prepayments and other current assets | 42,312 | 14,566 | |
Noncurrent assets: | |||
Property and equipment, net | 3,157 | 3,937 | |
Intangible assets, net | 808 | 471 | |
Long-term investments, net | 30,976 | ||
Operating lease right-of-use assets, net | 13,818 | 27,365 | |
Total assets | 431,878 | 501,150 | |
Current liabilities: | |||
Accounts payable | 56,069 | 64,641 | |
Salary and welfare payables | 37,631 | 32,749 | |
Taxes payable | 11,311 | 17,207 | |
Deferred revenue | 28,863 | 18,849 | |
Amounts due to the Company and its subsidiaries | 143,331 | 199,392 | |
Amounts due to related parties | 1,328 | 548 | |
Accrued liabilities and other payables | 12,621 | 8,219 | |
Short-term bank loan | 5,000 | 0 | |
Operating lease liabilities | 16,302 | 15,132 | |
Non-current liabilities: | |||
Operating lease liabilities | 586 | 12,426 | |
Total liabilities | 313,042 | 369,163 | |
Cash flows from operating activities: | |||
Cost of revenues | (147,654) | (282,772) | (392,569) |
Gross Profit | 169,003 | 104,089 | 262,672 |
Operating expenses | (190,249) | (284,163) | (259,867) |
Income/(Loss) from operations | (21,246) | (180,074) | 2,805 |
Share of loss from equity method investments | 26 | ||
Shortterm investment income | 1,768 | 1,416 | 3,237 |
Others, net | 5,602 | 12,021 | 8,572 |
Income/(Loss) before income tax | (13,850) | (166,637) | 14,614 |
Income tax expenses | (111) | (3,814) | (19,672) |
Net loss | (13,961) | (170,451) | (5,058) |
Net cash (used in)/provided by operating activities | 266,927 | 57,273 | (133,255) |
Cash flows from investing activities: | |||
Purchase of short-term investments | (571,110) | (504,571) | (451,450) |
Proceeds from maturities of short-term investments | 594,927 | 423,937 | 557,189 |
Investment in long-term investments | (30,950) | ||
Loan paid to inter-company entities | (5,000) | (150) | |
Loan collected from inter-company entities | 5,000 | ||
Cash received from customer in relation to advertisement agent services | 26,295 | ||
Cash paid on behalf of the customer in relation to advertisement agent services | (179,036) | ||
Others | (4,180) | (2,777) | (7,434) |
Net cash (used in)/provided by investing activities | (164,054) | (83,561) | 98,305 |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs | (6,000) | (6,094) | |
Share repurchase | (2,333) | ||
Capital injection from noncontrolling interest shareholders | 750 | 520 | 6,895 |
Proceeds from loans provided by inter-company entities | 25,010 | 35,910 | 87,170 |
Repayments of loans provided by inter-company entities | (103,080) | (5,000) | |
Cash paid in connection with the reorganization | (87,170) | ||
Others | 5,000 | (19) | (82) |
Net cash provided by/(used in) financing activities | (72,320) | 25,411 | (1,614) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash held in foreign currencies | (33) | ||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 30,553 | (877) | (36,597) |
Cash, cash equivalents and restricted cash at beginning of the year | 11,494 | 12,371 | 48,968 |
Cash, cash equivalents and restricted cash at end of the year | 42,047 | 11,494 | 12,371 |
VIEs | Inter-company revenues | |||
Cash flows from operating activities: | |||
Revenues | 25 | ||
VIEs | Third-party revenues | |||
Cash flows from operating activities: | |||
Revenues | ¥ 316,632 | ¥ 386,861 | ¥ 655,241 |
Significant Accounting Polici_4
Significant Accounting Policies - Principles of consolidation to short-term investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Principles of consolidation | |||
Net loss attributable to non-controlling interests | ¥ (1,038) | ¥ 889 | ¥ (156) |
Functional currency and foreign currency translation | |||
Total foreign currency translation adjustments | (1,090) | (4,843) | ¥ (3,285) |
Fair value measurements | |||
Impairment loss | 0 | ||
Recurring | |||
Fair value measurements | |||
Short-term investments-Wealth management products | 119,140 | 148,344 | |
Level 2 | Recurring | |||
Fair value measurements | |||
Short-term investments-Wealth management products | ¥ 119,140 | ¥ 148,344 |
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, 2021 | Dec. 31, 2020 | |
Goodwill | ||
Goodwill impairment | ¥ 1,395 | |
Impairment of long-lived assets | ||
Impairment of long-lived assets | ¥ 7,987 | |
Electronic equipment and computers | Minimum | ||
Estimated useful lives to impairment of long-lived assets | ||
Estimated useful life | 3 years | |
Electronic equipment and computers | Maximum | ||
Estimated useful lives to impairment of long-lived assets | ||
Estimated useful life | 5 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 - Long-term investments and Revenue recognition (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue recognition | |||
Impairment of equity method investment | ¥ 0 | ¥ 0 | ¥ 0 |
Maximum economic benefit period from paid columns and online courses | 1 year | ||
Revenues | ¥ 316,779 | 386,764 | 655,606 |
Contract assets | 0 | 0 | |
Revenue recognized included in contract liabilities balance at the beginning of the period | 18,850 | 8,160 | 4,230 |
Online advertising services | |||
Revenue recognition | |||
Revenues | 214,722 | 172,811 | 283,426 |
Integrated marketing | |||
Revenue recognition | |||
Revenues | 1,342 | 133,599 | 250,344 |
Offline events | |||
Revenue recognition | |||
Revenues | 32,127 | 26,992 | 53,861 |
Consulting | |||
Revenue recognition | |||
Revenues | 36,867 | 32,622 | 15,264 |
Advertisement agent services | |||
Revenue recognition | |||
Revenues | 3,696 | ||
Enterprise value-added services | |||
Revenue recognition | |||
Revenues | 74,032 | 193,213 | 319,469 |
Institutional investor subscription services | |||
Revenue recognition | |||
Revenues | 25,490 | 16,036 | 20,039 |
Enterprise subscription services | |||
Revenue recognition | |||
Revenues | 94 | 361 | 2,077 |
Individual subscription services | |||
Revenue recognition | |||
Revenues | 2,441 | 4,343 | 30,595 |
Subscription services | |||
Revenue recognition | |||
Revenues | ¥ 28,025 | ¥ 20,740 | ¥ 52,711 |
Significant Accounting Polici_7
Significant Accounting Policies - Sales and marketing expenses, Operating lease and adoption of ASU 2016-02, Employee Benefits, Government grant, Segment Reporting and Statutory Reserves (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)segment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 01, 2020CNY (¥) | |
Employee benefits | ||||
Employee social security and welfare benefits | ¥ 36,410 | ¥ 21,180 | ¥ 32,900 | |
Segment Reporting | ||||
Number of reportable segments | segment | 1 | |||
Statutory Reserves | ||||
Percentage of general reserve fund, annual after-tax profits | 10.00% | |||
Maximum percentage of general reserve fund, registered capital | 50.00% | |||
Percentage of statutory surplus fund, annual after-tax profits | 10.00% | |||
Maximum percentage of statutory surplus fund, registered capital | 50.00% | |||
Profit appropriation to reserve funds | ¥ 300 | 660 | 1,080 | |
Operating lease right-of-use assets, net | 13,818 | 27,365 | ||
Operating lease liabilities | 586 | 12,426 | ||
Government grant | 3,304 | 10,103 | 497 | |
Sales and marketing expenses | ||||
Sales and marketing expenses | ||||
Total advertising expenses | ¥ 7,270 | ¥ 6,340 | ¥ 700 | |
ASU 2016 02 | Adjustment | ||||
Statutory Reserves | ||||
Operating lease right-of-use assets, net | ¥ 41,900 | |||
Operating lease liabilities | ¥ 42,100 |
Concentration and Risks (Detail
Concentration and Risks (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | Customer risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 32.00% | 31.00% | |
Accounts receivable | Customer risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% | ||
Accounts receivable | Customer risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 55.00% | 39.00% | |
Costs and expenses | Supplier risk | Supplier C | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 22.00% | 27.00% |
Accounts Receivable, net - Summ
Accounts Receivable, net - Summary (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable | ¥ 302,200,000 | ¥ 429,049,000 |
Less: allowance for credit losses | (122,039,000) | (124,204,000) |
Accounts receivable, net | 180,161,000 | 304,845,000 |
Advertisement agent services | ||
Accounts receivable | ¥ 129,400,000 | ¥ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movements in the allowance for doubtful accounts | |||
Balance at beginning of the year | ¥ (124,204) | ¥ (11,413) | ¥ (2,070) |
Additional allowance for credit losses, net of recoveries | (8,681) | (125,563) | (9,504) |
Write-offs | (10,846) | (12,772) | (161) |
Balance at end of the year | ¥ (122,039) | ¥ (124,204) | ¥ (11,413) |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments and Other Current Assets | ||
Prepayments of copyright | ¥ 7,862 | |
Deposits | ¥ 5,758 | 5,108 |
Prepayments of IT services | 907 | 1,205 |
Prepayments of procurement cost | 32,842 | 612 |
Others | 3,105 | 1,532 |
Total | ¥ 42,612 | ¥ 16,319 |
Property and Equipment, net (De
Property and Equipment, net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment, net | |||
Total | ¥ 25,228 | ¥ 23,545 | |
Less: accumulated depreciation | (14,082) | (11,617) | |
Less: impairment | (7,987) | (7,987) | |
Property and equipment, net | 3,159 | 3,941 | |
Depreciation expense | 2,563 | 5,549 | ¥ 4,195 |
Electronic equipment and computers | |||
Property and equipment, net | |||
Total | 17,532 | 16,502 | |
Office furniture and equipment | |||
Property and equipment, net | |||
Total | 2,725 | 2,398 | |
Leasehold improvement | |||
Property and equipment, net | |||
Total | ¥ 4,971 | ¥ 4,645 |
Long-term investments - Long-te
Long-term investments - Long-term investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Equity investments accounted for using the equity method: | ||
Total | ¥ 41,442 | ¥ 16,300 |
Beijing Sharetimes Technology Co., Ltd. | ||
Equity investments accounted for using the measurement alternative: | ||
Equity investments accounted for using the measurement alternative | 30,000 | |
36Kr Global Holding (HK) Limited | ||
Equity investments accounted for using the equity method: | ||
Equity investments accounted for using the equity method | 10,466 | ¥ 16,300 |
Shanghai Xuanke | ||
Equity investments accounted for using the equity method: | ||
Equity investments accounted for using the equity method | ¥ 976 |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands, $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021CNY (¥)item | Sep. 30, 2019USD ($) | Jul. 31, 2019CNY (¥) | Jul. 31, 2019JPY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Equity method investments | ||||||
Share of loss from equity method investments | ¥ 5,473 | ¥ 23,502 | ||||
Lotus | ||||||
Equity method investments | ||||||
Agreed to invest in cash under investment agreement | $ | $ 6,000 | |||||
36Kr Global Holding (HK) Limited | ||||||
Equity method investments | ||||||
Ownership interest (as a percent) | 100.00% | 100.00% | ||||
36Kr Global Holding (HK) Limited | Lotus | ||||||
Equity method investments | ||||||
Agreed equity interest for transferring under investment agreement (as a percent) | 51.00% | |||||
36Kr Global Holding (HK) Limited | 36Kr Japan | ||||||
Equity method investments | ||||||
Percentage of ownership interest acquired (as a percent) | 67.50% | 67.50% | ||||
Total consideration on acquisition | ¥ 2,000 | ¥ 30 | ||||
36Kr Global Holding (HK) Limited | KrAsia | ||||||
Equity method investments | ||||||
Ownership interest (as a percent) | 75.00% | 75.00% | ||||
Bytedance | Lotus | ||||||
Equity method investments | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Lotus | ||||||
Equity method investments | ||||||
Fair value of resources and technologies agreed under investment agreement | $ | $ 6,270 | |||||
36Kr Global Holding (HK) Limited | ||||||
Equity method investments | ||||||
Percentage of investment held | 49.00% | |||||
Share of loss from equity method investments | 5,500 | ¥ 23,500 | ||||
Gain from derecognition | $ | $ 11,500 | |||||
Shanghai Xuanke | ||||||
Equity method investments | ||||||
Percentage of investment held | 19.00% | |||||
Carrying value of equity method investments | ¥ 950 | |||||
Share of loss from equity method investments | 26 | |||||
Number of shareholders agreed to join joint venture agreement | item | 3 | |||||
Beijing Sharetimes Technology Co., Ltd. | ||||||
Equity method investments | ||||||
Percentage of investment held | 1.64% | |||||
Carrying value of equity method investments | ¥ 30,000 | |||||
Carrying value of the equity investment | ¥ 30,000 |
Taxes Payable (Details)
Taxes Payable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Taxes Payable | ||
VAT payable | ¥ 12,060 | ¥ 16,818 |
Enterprise income taxes payable | 80 | 232 |
Withholding individual income taxes for employees | 121 | 1,466 |
Others | 575 | 308 |
Total | ¥ 12,836 | ¥ 18,824 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Payables | ||
Accrued professional fees | ¥ 11,788 | ¥ 10,459 |
Accrued office rental expense | 177 | 340 |
Accrued employee welfare expense, meal and travel expense | 1,579 | 411 |
Guarantee deposits | 330 | 330 |
Withholding employees' social insurance and housing fund | 1,140 | 1,082 |
Others | 2,487 | 938 |
Total | ¥ 17,501 | ¥ 13,560 |
Leases - non-cancelable operati
Leases - non-cancelable operating lease agreement (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Supplemental information related to operating leases | ||
Operating lease right-of-use assets, net | ¥ 13,818 | ¥ 27,365 |
Operating lease liabilities-current | (16,302) | (15,132) |
Operating lease liabilities-non-current | (586) | (12,426) |
Total operating lease liabilities | ¥ (16,888) | ¥ (27,558) |
Weighted average remaining lease term | 1 year 1 month 2 days | 2 years 7 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, 2021 | Dec. 31, 2020 | |
Lease cost | ||
Operating lease cost | ¥ 15,481 | ¥ 15,306 |
Short-term lease cost | 572 | 675 |
Total | ¥ 16,053 | ¥ 15,981 |
Leases - supplemental cash flow
Leases - supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Cash Payments For Operating Leases | ¥ 12,604 | ¥ 15,351 |
Right-of-use assets obtained in exchange for lease obligations | ¥ 1,971 | ¥ 546 |
Leases - maturity of operating
Leases - maturity of operating lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturity of operating lease liabilities under the Group's non-cancelable operating leases | ||
2022 | ¥ 16,718 | |
2023 | 429 | |
2024 | 214 | |
Total lease payment | 17,361 | |
Less: interest | 473 | |
Present value of operating lease liabilities | ¥ 16,888 | ¥ 27,558 |
Ordinary Shares (Details)
Ordinary Shares (Details) $ / shares in Units, $ in Thousands | Nov. 08, 2019$ / sharesshares | Nov. 07, 2019shares | Aug. 31, 2019shares | Apr. 30, 2019shares | Mar. 31, 2019shares | Dec. 31, 2016¥ / sharesshares | Nov. 30, 2016¥ / sharesshares | May 31, 2016¥ / sharesshares | Mar. 31, 2016¥ / sharesshares | Sep. 30, 2015¥ / sharesshares | Jun. 30, 2012¥ / sharesshares | Nov. 30, 2011¥ / sharesshares | Jan. 31, 2018¥ / sharesshares | Dec. 31, 2021Vote$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares |
Ordinary Shares | |||||||||||||||||
Authorized share capital | $ | $ 50,000 | ||||||||||||||||
authorized share capital (in shares) | 5,000,000,000 | 500,000,000 | |||||||||||||||
Par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering (in shares) | 96,082,700 | ||||||||||||||||
Preferred shares conversion ratio | 1 | ||||||||||||||||
Shares issued (in shares) | 1 | ||||||||||||||||
Ordinary shares, shares authorized (in shares) | 4,326,574,000 | ||||||||||||||||
Ordinary shares, shares issued (in shares) | 189,388,000 | ||||||||||||||||
Ordinary shares, shares outstanding (in shares) | 189,388,000 | ||||||||||||||||
Shares issuable in connection to vested restricted share units (in shares) | 63,567,850 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 548,774,240 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued | 27,507,989 | 36,281,400 | 61,006,382 | ||||||||||||||
Ordinary shares | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering (in shares) | (237,849,382) | ||||||||||||||||
Share repurchase (in shares) | (2,561,468) | ||||||||||||||||
IPO | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Issuance price per share (in US dollar per share) | $ / shares | $ 14.50 | ||||||||||||||||
Ordinary shares increased results of conversion rate | 44,521 | ||||||||||||||||
IPO | ADS | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
New issuance (in shares) | 1,380,000 | ||||||||||||||||
Issuance price per share (in US dollar per share) | $ / shares | $ 14.50 | ||||||||||||||||
Series A-1 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 65,307,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 65,307,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 65,307,000 | 10,027,455 | 62,273,127 | ||||||||||||||
New issuance (in shares) | 65,307,000 | 62,273,127 | |||||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 0.01 | ||||||||||||||||
Series A-2 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 101,261,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 101,261,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 101,261,000 | 81,008,717 | |||||||||||||||
New issuance (in shares) | 101,261,000 | 81,008,717 | |||||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 0.06 | ||||||||||||||||
Series B-1 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 250,302,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 250,302,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 250,302,000 | 200,241,529 | |||||||||||||||
New issuance (in shares) | 250,302,000 | 200,241,529 | |||||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 1.24 | ||||||||||||||||
Series B-2 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 14,593,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 14,593,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 14,593,000 | 11,674,379 | |||||||||||||||
New issuance (in shares) | 14,593,000 | 11,674,379 | |||||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 3.21 | ||||||||||||||||
Series B-3 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 56,105,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 56,105,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 56,105,000 | 10,027,455 | 19,361,727 | ||||||||||||||
New issuance (in shares) | 56,105,000 | 17,215,818 | 10,027,455 | 7,220,212 | 12,141,515 | ||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 3.12 | ¥ 1.24 | |||||||||||||||
Series B-4 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 20,982,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 20,982,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 20,982,000 | 9,338,761 | |||||||||||||||
New issuance (in shares) | 20,982,000 | 11,643,239 | 2,334,688 | 7,004,073 | |||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 3.21 | ¥ 3.21 | |||||||||||||||
Series C-1 Convertible Redeemable Preferred Stock | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Convertible redeemable preferred shares, shares authorized (in shares) | 164,876,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares issued (in shares) | 164,876,000 | ||||||||||||||||
Convertible redeemable preferred shares, shares outstanding (in shares) | 164,876,000 | 164,876,000 | |||||||||||||||
New issuance (in shares) | 164,876,000 | 164,876,000 | |||||||||||||||
Issuance price per share (in US dollar per share) | ¥ / shares | ¥ 1.53 | ||||||||||||||||
Class A ordinary shares | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||
Ordinary shares conversion ratio | 1 | ||||||||||||||||
Ordinary shares, shares authorized (in shares) | 4,903,917,300 | 4,903,917,300 | |||||||||||||||
Ordinary shares, shares issued (in shares) | 907,346,745 | 884,846,745 | 841,275,820 | ||||||||||||||
Ordinary shares, shares outstanding (in shares) | 893,706,595 | 871,850,620 | 841,275,820 | ||||||||||||||
Number of shares of common stock outstanding, excluding 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 | 61,006,382 | ||||||||||||||||
Number of votes per share | Vote | 1 | ||||||||||||||||
Class A ordinary shares | 2019 Incentive Plan | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Ordinary shares issued to the depositary bank for bulk issuance of ADSs | 17,428,425 | 6,957,425 | |||||||||||||||
Common Stock Shares Outstanding, Excluding Shares Issued For Depositary Bank | 876,278,170 | 864,893,195 | |||||||||||||||
Class A ordinary shares | Ordinary shares | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering (in shares) | 141,766,682 | ||||||||||||||||
New issuance (in shares) | 34,500,000 | ||||||||||||||||
Share repurchase (in shares) | (6,646,700) | (12,996,125) | |||||||||||||||
Class A ordinary shares | IPO | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
New issuance (in shares) | 34,500,000 | ||||||||||||||||
Number of shares issued on conversion | 40,044,520 | ||||||||||||||||
Class B ordinary shares | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Par value (in US dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||
Ordinary shares conversion ratio | 1 | ||||||||||||||||
Ordinary shares, shares authorized (in shares) | 96,082,700 | 96,082,700 | |||||||||||||||
Ordinary shares, shares issued (in shares) | 96,082,700 | 96,082,700 | 96,082,700 | ||||||||||||||
Ordinary shares, shares outstanding (in shares) | 96,082,700 | 96,082,700 | 96,082,700 | ||||||||||||||
Number of votes per share | Vote | 25 | ||||||||||||||||
Class B ordinary shares | Ordinary shares | |||||||||||||||||
Ordinary Shares | |||||||||||||||||
Re-designation of ordinary shares into Class A and Class B ordinary shares upon initial public offering (in shares) | 96,082,700 |
Share repurchase program (Detai
Share repurchase program (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2019USD ($)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | May 06, 2020shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of shares repurchased | 2,561,468 | 6,646,700 | 6,646,700 | 12,996,125 | 12,996,125 | |
Payments for repurchase of shares | $ | $ 2.3 | |||||
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 |
Convertible Redeemable Prefer_3
Convertible Redeemable Preferred Shares - Issuances (Details) - ¥ / shares | 1 Months Ended | 4 Months Ended | |||||||||
Aug. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2016 | Nov. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2012 | Nov. 30, 2011 | Jan. 31, 2018 | |
Series A-1 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 0.01 | ||||||||||
New issuance (in shares) | 65,307,000 | 62,273,127 | |||||||||
Series A-2 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 0.06 | ||||||||||
New issuance (in shares) | 101,261,000 | 81,008,717 | |||||||||
Series B-1 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 1.24 | ||||||||||
New issuance (in shares) | 250,302,000 | 200,241,529 | |||||||||
Series B-2 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 3.21 | ||||||||||
New issuance (in shares) | 14,593,000 | 11,674,379 | |||||||||
Series B-3 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 3.12 | ¥ 1.24 | |||||||||
New issuance (in shares) | 56,105,000 | 17,215,818 | 10,027,455 | 7,220,212 | 12,141,515 | ||||||
Series B-4 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 3.21 | ¥ 3.21 | |||||||||
New issuance (in shares) | 20,982,000 | 11,643,239 | 2,334,688 | 7,004,073 | |||||||
Series C-1 Convertible Redeemable Preferred Stock | |||||||||||
Convertible Redeemable Preferred Shares | |||||||||||
Issuance price per share (in US dollar per share) | ¥ 1.53 | ||||||||||
New issuance (in shares) | 164,876,000 | 164,876,000 |
Convertible Redeemable Prefer_4
Convertible Redeemable Preferred Shares - Re-designation (Details) | 1 Months Ended | 4 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||
Sep. 30, 2019USD ($)shares | Aug. 31, 2019shares | Apr. 30, 2019CNY (¥)shares | Apr. 30, 2019USD ($)shares | Mar. 31, 2019CNY (¥)shares | Dec. 31, 2016shares | Nov. 30, 2016shares | May 31, 2016shares | Mar. 31, 2016shares | Sep. 30, 2015shares | Jun. 30, 2012shares | Nov. 30, 2011shares | Jan. 31, 2018shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2020shares | |
Series B-3 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 56,105,000 | 17,215,818 | 17,215,818 | 10,027,455 | 7,220,212 | 12,141,515 | |||||||||
Total amount | ¥ | ¥ 30,896,752 | ¥ 27,140,000 | |||||||||||||
Difference between the fair value and the par value of the ordinary shares | ¥ | ¥ 29,956,000 | ||||||||||||||
Difference between the fair value of the preferred shares and the fair value of the ordinary shares | $ | $ 11,230,000 | ||||||||||||||
Re-designation of ordinary shares | ¥ | ¥ (29,966,000) | ||||||||||||||
Series B-4 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 20,982,000 | 11,643,239 | 11,643,239 | 2,334,688 | 7,004,073 | ||||||||||
Total amount | ¥ | ¥ 36,756,000 | ||||||||||||||
Difference between the fair value and the par value of the ordinary shares | ¥ | ¥ 20,261,000 | ||||||||||||||
Difference between the fair value of the preferred shares and the fair value of the ordinary shares | $ | $ 15,554,000 | ||||||||||||||
Re-designation of ordinary shares | ¥ | (20,268,000) | ||||||||||||||
Series A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 67,311,809 | ||||||||||||||
Re-designation of ordinary shares | ¥ | (309,984,000) | ||||||||||||||
Series A-1 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 65,307,000 | 62,273,127 | |||||||||||||
Series A-2 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 101,261,000 | 81,008,717 | |||||||||||||
Series B-1 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 250,302,000 | 200,241,529 | |||||||||||||
Series B-2 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 14,593,000 | 11,674,379 | |||||||||||||
Series C-1 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 164,876,000 | 164,876,000 | |||||||||||||
Series C-2 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Re-designation of ordinary shares | ¥ | (36,977,000) | ||||||||||||||
Re-designation of ordinary shares into convertible redeemable preferred shares (in shares) | shares | 12,545,000 | ||||||||||||||
Series D Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Preferred shares issued (in shares) | shares | 39,999,999 | 39,999,999 | |||||||||||||
Aggregate Purchase Price | $ | $ 24,000,000 | ||||||||||||||
Restricted share units | Series A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 12,927,101 | ||||||||||||||
Ordinary shares | Series B-3 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Re-designation of ordinary shares | ¥ | (10,000) | ||||||||||||||
Ordinary shares | Series B-4 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Re-designation of ordinary shares | ¥ | (7,000) | ||||||||||||||
Ordinary shares | Series A-1, A-2, B-1, B-2 and B-3 convertible redeemable preferred shares | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Share issuance upon initial public offering, net of issuance costs (in shares) | shares | 15,553,793 | ||||||||||||||
Re-designation of ordinary shares | ¥ | (11,000) | ||||||||||||||
Ordinary shares | Series C-2 Convertible Redeemable Preferred Stock | |||||||||||||||
Convertible Redeemable Preferred Shares | |||||||||||||||
Re-designation of ordinary shares | ¥ | ¥ (9,000) |
Convertible Redeemable Prefer_5
Convertible Redeemable Preferred Shares - Conversion right, Dividend right, Liquidation preference, Redemption rights (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥)factorshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Convertible Redeemable Preferred Shares | |||
Dividend declared | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
Liquidation amount as percentage of temporary equity issue price | 100.00% | ||
Payment term of redemption right (in days) | 90 days | ||
Ordinary shares | |||
Convertible Redeemable Preferred Shares | |||
Conversion ratio of preferred shares to ordinary shares | shares | 1 | ||
Series A-1 A-2 B-1 B-2 B-3 B-4 C-1 D Convertible Redeemable Preferred Stock [Member] | |||
Convertible Redeemable Preferred Shares | |||
Factor in calculating dividend | 8 | ||
Series D And C-1 Redeemable Preferred Shares [Member] | |||
Convertible Redeemable Preferred Shares | |||
Factor included in liquidation calculation | 12 | ||
Factor included in calculation of redemption price | 10 | ||
Merger | |||
Convertible Redeemable Preferred Shares | |||
Percentage of voting | 50.00% | ||
Preferred shares | Series B-1, B-2, B-3, and B-4 convertible redeemable preferred shares | |||
Convertible Redeemable Preferred Shares | |||
Redemption price as a percentage on issue price | 120.00% | ||
Preferred shares | Series A-2 Convertible Redeemable Preferred Stock | |||
Convertible Redeemable Preferred Shares | |||
Redemption price as a percentage on issue price | 300.00% |
Convertible Redeemable Prefer_6
Convertible Redeemable Preferred Shares - Preferred Shares activities (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | |
Sep. 30, 2019shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | |
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 808,601 | ¥ 808,601 | ||
Balance at the beginning of the year (in shares) | shares | 548,774,240 | 548,774,240 | 548,774,240 | |
Issuance of Preferred Shares | ¥ 169,750 | $ 39,999,999 | ||
Accretions of Preferred Shares to redemption value | 449,130 | |||
Re-designation of Series A-1 into Series B-3 preferred shares | ¥ (26,787) | 26,787 | ||
Re-designation of ordinary shares into Series B-3 convertible redeemable preferred shares | 41,196 | ¥ 41,196 | ||
Re-designation of ordinary shares into Series B-3 preferred shares (in shares) | shares | 17,215,818 | 17,215,818 | ||
Re-designation of ordinary shares into Series B-4 convertible redeemable preferred shares | 35,822 | ¥ 35,822 | ||
Re-designation of ordinary shares into Series B-4 preferred shares (in shares) | shares | 11,643,239 | 11,643,239 | ||
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 | 309,984 | ¥ 309,984 | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 95,792,703 | 95,792,703 | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | 36,977 | ¥ 36,977 | ||
Re-designation of ordinary shares into Series C-2 preferred shares (in shares) | shares | 12,545,000 | 12,545,000 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (1,878,247) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (725,970,999) | (725,970,999) | ||
Series A-1 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 681 | ¥ 681 | ||
Balance at the beginning of the year (in shares) | shares | 65,307,000 | 62,273,127 | 62,273,127 | 62,273,127 |
Re-designation of Series A-1 into Series B-3 preferred shares | ¥ (110) | |||
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 | ¥ (41,233) | |||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 13,061,328 | 13,061,328 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (41,804) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (65,307,000) | (65,307,000) | ||
Balance at the end of the year (in shares) | shares | 10,027,455 | 10,027,455 | ||
Series A-2 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 13,500 | ¥ 13,500 | ||
Balance at the beginning of the year (in shares) | shares | 101,261,000 | 81,008,717 | 81,008,717 | 81,008,717 |
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 | ¥ (63,994) | |||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 20,252,283 | 20,252,283 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (77,494) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (101,261,000) | (101,261,000) | ||
Series B-1 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 388,145 | ¥ 388,145 | ||
Balance at the beginning of the year (in shares) | shares | 250,302,000 | 200,241,529 | 200,241,529 | 200,241,529 |
Accretions of Preferred Shares to redemption value | ¥ 363,100 | |||
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 | ¥ (163,340) | |||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 50,060,471 | 50,060,471 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (914,585) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (250,302,000) | (250,302,000) | ||
Series B-2 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 45,000 | ¥ 45,000 | ||
Balance at the beginning of the year (in shares) | shares | 14,593,000 | 11,674,379 | 11,674,379 | 11,674,379 |
Accretions of Preferred Shares to redemption value | ¥ 1,722 | |||
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 | ¥ (10,044) | |||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 2,918,621 | 2,918,621 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (53,322) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (14,593,000) | (14,593,000) | ||
Series B-3 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 48,016 | ¥ 48,016 | ||
Balance at the beginning of the year (in shares) | shares | 56,105,000 | 19,361,727 | 19,361,727 | 19,361,727 |
Accretions of Preferred Shares to redemption value | ¥ 57,521 | |||
Re-designation of Series A-1 into Series B-3 preferred shares | 26,897 | |||
Re-designation of ordinary shares into Series B-3 convertible redeemable preferred shares | ¥ 41,196 | |||
Re-designation of ordinary shares into Series B-3 preferred shares (in shares) | shares | 17,215,818 | 17,215,818 | ||
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 | ¥ (31,373) | |||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 preferred shares (in shares) | shares | 9,500,000 | 9,500,000 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (205,003) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (56,105,000) | (56,105,000) | ||
Balance at the end of the year (in shares) | shares | 10,027,455 | 10,027,455 | ||
Series B-4 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 36,000 | ¥ 36,000 | ||
Balance at the beginning of the year (in shares) | shares | 20,982,000 | 9,338,761 | 9,338,761 | 9,338,761 |
Accretions of Preferred Shares to redemption value | ¥ 4,845 | |||
Re-designation of ordinary shares into Series B-4 convertible redeemable preferred shares | ¥ (35,822) | |||
Re-designation of ordinary shares into Series B-4 preferred shares (in shares) | shares | 11,643,239 | 11,643,239 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (76,667) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (20,982,000) | (20,982,000) | ||
Series C-1 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Balance at beginning of year | ¥ 277,259 | ¥ 277,259 | ||
Balance at the beginning of the year (in shares) | shares | 164,876,000 | 164,876,000 | 164,876,000 | 164,876,000 |
Accretions of Preferred Shares to redemption value | ¥ 23,534 | |||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (300,793) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (164,876,000) | (164,876,000) | ||
Series C-2 Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | ¥ (36,977) | |||
Re-designation of ordinary shares into Series C-2 preferred shares (in shares) | shares | 12,545,000 | 12,545,000 | ||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (36,977) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (12,545,000) | (12,545,000) | ||
Series D Convertible Redeemable Preferred Stock | ||||
Convertible Redeemable Preferred Shares | ||||
Issuance of Preferred Shares | ¥ 169,750 | |||
Issuance of Preferred Shares (in shares) | shares | 39,999,999 | 39,999,999 | 39,999,999 | |
Accretions of Preferred Shares to redemption value | ¥ 1,852 | |||
Conversion and re-designation of Pre-IPO Preferred Shares | ¥ (171,602) | |||
Conversion and re-designation of Pre-IPO Preferred Shares (in shares) | shares | (39,999,999) | (39,999,999) |
Income Taxes - Income tax rates
Income Taxes - Income tax rates (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
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 | 25.00% | ||
Preferential tax rate as High and New Technology Enterprises | 15.00% |
Income Taxes - Composition of i
Income Taxes - Composition of income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Composition of income tax | |||
Current income tax expense | ¥ 155 | ¥ 373 | ¥ 22,978 |
Deferred taxation | (53) | 3,391 | (3,085) |
Total | ¥ 102 | ¥ 3,764 | ¥ 19,893 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the differences between statutory income tax rate and the effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation | |||
Statutory EIT rate | 25.00% | 25.00% | 25.00% |
Effect of non-deductible expenses | (6.60%) | (5.78%) | (386.74%) |
Tax incentives for research and development expense | 9.00% | 2.08% | 111.56% |
Tax incentives for wages of disabled staff | 0.05% | 0.02% | 9.89% |
Preferential tax rate | 0.48% | 1.15% | |
Change in valuation allowance | (25.55%) | (23.19%) | (154.03%) |
Non-taxable item | 47.58% | ||
Tax rate difference from statutory rate in other jurisdictions | (2.49%) | (0.72%) | 7.45% |
Others | 0.07% | 8.72% | |
Effective income tax rate | (0.11%) | (1.37%) | (330.57%) |
Percentage of tax incentives on research and development expenses | 175.00% | 175.00% | 175.00% |
Income Taxes - Composition of d
Income Taxes - Composition of deferred tax assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets-non-current: | ||
Net operating tax losses carry forwards | ¥ 46,031 | ¥ 30,536 |
Allowances of doubtful accounts | 18,702 | 18,906 |
Property and equipment impairment | 1,997 | 1,997 |
Others | 299 | 299 |
Total deferred tax assets | 67,029 | 51,738 |
Less: valuation allowance | (67,029) | (51,738) |
Total deferred tax assets, net | 67,000 | |
Accumulated operating losses | 234,000 | 143,000 |
Accumulated operating losses expire in 2023 | 11,000 | |
Accumulated operating losses expire in 2024 | 28,000 | |
Accumulated operating losses expire in 2025 | 81,000 | |
Accumulated operating losses expire after 2025 | 114,000 | |
Deferred tax assets from accumulated tax losses | ¥ 46,031 | ¥ 30,536 |
HNTE | ||
Deferred tax assets-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, 2021 | |
Outside of China | |
Income taxes | |
Withholding income tax rate on dividends distributed by a FIE | 10.00% |
Minimum | Outside of China | |
Income taxes | |
Percentage of shares owned by foreign investors | 25.00% |
Minimum | Hong Kong | |
Income taxes | |
Withholding income tax rate on dividends distributed by a FIE | 5.00% |
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, 2019CNY (¥)shares | Sep. 30, 2019$ / sharesshares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021CNY (¥)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Jun. 30, 2021shares | |
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 | 50.22% | 50.22% | ||||||||
Contractual term (in year) | 10 years | 10 years | 10 years | |||||||
Risk-free interest rate | 1.66% | 1.66% | ||||||||
Number of shares | ||||||||||
Beginning balance | 88,240,084 | 126,402,925 | ||||||||
Granted during the year | 32,765,413 | 5,125,000 | 129,590,471 | |||||||
Exercised during the year | (18,031,675) | (36,613,500) | 0 | |||||||
Forfeited / Cancelled during the year | (8,143,392) | (6,674,341) | (3,187,546) | |||||||
Ending balance | 94,830,430 | 88,240,084 | 126,402,925 | |||||||
Exercisable at the end | 56,003,331 | 56,003,331 | 56,003,331 | |||||||
Weighted average exercise price US$/Share | ||||||||||
Outstanding at beginning of period | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Granted during the year | $ / shares | 0.0001 | 0.0001 | $ 0.0001 | |||||||
Exercised during the year | $ / shares | 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 | ||||||
Exercisable at the end (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Aggregate intrinsic value | ||||||||||
Aggregate intrinsic value US$ | $ | $ 9,847,593 | $ 37,352,064 | $ 4,324,268 | |||||||
Weighted average remaining contractual years | ||||||||||
Weighted average remaining contractual years | 8 years 5 months 8 days | 8 years 9 months 7 days | 9 years 8 months 4 days | |||||||
Weighted average price of options granted during the year | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Weighted average exercise price of options exercisable | $ / shares | $ 0.0001 | |||||||||
Unrecognized share-based compensation expenses, recognition period | 1 year 7 days | |||||||||
Weighted average grant date fair value of share options | (per share) | ¥ 0.54 | $ 0.78 | ¥ 3.81 | |||||||
Share-based compensation expenses recognized for share options | ¥ | ¥ 15,020 | ¥ 39,280 | ¥ 61,250 | |||||||
Unrecognized share-based compensation expenses | ¥ | ¥ 24,170 | $ 24,170 | ||||||||
Unrecognized compensation expense, recognition period | 1 year 7 days | |||||||||
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) | 12,710,395 | 12,710,395 | 12,710,395 | |||||||
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 | 7,475,213 | 24,474,535 | ||||||||
Certain Directors And Senior Management | 2019 Incentive Plan | ||||||||||
Number of shares | ||||||||||
Granted during the year | 32,765,413 | 5,125,000 | 129,590,471 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Net loss per share in accordance with ASC 260 (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income/(loss) per ordinary share-basic: Numerator: | |||
Net loss attributable to 36Kr Holdings Inc. | ¥ (90,609) | ¥ (279,342) | ¥ (25,911) |
Accretion on redeemable noncontrolling interests to redemption value | (1,808) | ||
Accretion of convertible redeemable preferred shares to redemption value | (449,130) | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (26,787) | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares | (309,984) | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | (36,977) | ||
Net loss/(income) attributable to non-controlling interests | 1,038 | (889) | 156 |
Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic | ¥ (89,571) | ¥ (280,231) | ¥ (850,441) |
Net income/(loss) per ordinary share-basic: Denominator: | |||
Denominator used in computing net loss per share - basic (in shares) | 1,025,068,349 | 1,019,316,944 | 368,159,249 |
Weighted average number of ordinary shares outstanding | ¥ (0.087) | ¥ (0.275) | ¥ (2.310) |
Net income/(loss) per ordinary share-diluted: Numerator: | |||
Net loss attributable to ordinary shareholders of 36Kr Holdings Inc.- basic | ¥ (89,571) | ¥ (280,231) | ¥ (850,441) |
Net loss attributable to ordinary shareholders - diluted | ¥ (89,571) | ¥ (280,231) | ¥ (850,441) |
Net income/(loss) per ordinary share-diluted: Denominator: | |||
Denominator used in computing net loss per share - basic (in shares) | 1,025,068,349 | 1,019,316,944 | 368,159,249 |
Denominator used in computing net loss per share - diluted ((in shares) | 1,025,068,349 | 1,019,316,944 | 368,159,249 |
-Diluted | ¥ (0.087) | ¥ (0.275) | ¥ (2.310) |
Basic and Diluted Net Income_(L
Basic and Diluted Net Income/(Loss) Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities, (in shares) | 0 | 0 | 549,315,048 |
Preferred Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities, (in shares) | 518,830,264 | ||
Share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities, (in shares) | 30,484,784 |
Related Party Transactions (Det
Related Party Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | |||
Amounts due to related parties | ¥ 1,328 | ¥ 548 | |
Amount due from inter-company entities | 3,630 | 98 | |
Venture Glory | |||
Related Party Transactions | |||
Purchases from related party | 3,000 | ||
Amounts due to related parties | 0 | ||
Revenue from transactions with related parties | 1,700 | 800 | ¥ 5,000 |
Amount due from inter-company entities | 1,300 | 58 | |
36Kr Global Holding (HK) Limited | |||
Related Party Transactions | |||
Expenses from transactions with related party | 1,500 | ||
Purchases from related party | 1,400 | ||
Amounts due to related parties | 0 | ¥ 500 | |
Shanghai Xuanke | |||
Related Party Transactions | |||
Purchases from related party | 1,100 | ||
Amounts due to related parties | 1,200 | ||
Amount due from inter-company entities | 2,000 | ||
Interest income from related party | 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, 2021 | Dec. 31, 2020 | |
Restricted Net Assets | ||
Appropriation of after-tax income to general reserve fund or statutory surplus reserve fund (as a percentage) | 10.00% | |
Transfer of assets, restricted portion | ¥ 134,030 | ¥ 186,060 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - CNY (¥) ¥ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | |
Investment in Benweixianwu | |||
Subsequent Event | |||
Investment subscribed newly issued ordinary shares | 21,200 | ||
Total consideration | ¥ 5 | ||
Investment ownership percentage | 1.66% | ||
Investment in Hangzhou Jialin | |||
Subsequent Event | |||
Equity Securities without Readily Determinable Fair Value, Amount | ¥ 40 | ¥ 40 | |
Equity Securities without Readily Determinable Fair Value, Ownership Percentage | 7.273% | ||
Investment in Hangzhou Jialin | Dianqier | |||
Subsequent Event | |||
Percentage of equity interest transferred as condieration for other investment | 100 | ||
Gain arising from such investment and disposal | ¥ 36 |
Condensed Financial Informati_3
Condensed Financial Information of the Company Condensed Balance Sheet (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | ¥ 96,965 | ¥ 60,846 |
Receivables due from related parties | 3,630 | 98 |
Prepayments and other current assets | 42,612 | 16,319 |
Non-current assets: | ||
Total assets | 501,735 | 578,529 |
Current liabilities: | ||
Accrued liabilities and other payables | 17,501 | 13,560 |
Total liabilities | 194,470 | 189,560 |
Commitments and Contingencies (Note 18) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,049,448 | 2,040,693 |
Treasury stock (US$ 0.0001 par value; 15,557,593 shares and 16,201,618 shares as of December 31, 2020 and 2021, respectively) | (13,598) | (14,081) |
Accumulated deficit | (1,728,152) | (1,638,581) |
Accumulated other comprehensive loss | (8,987) | (7,897) |
Total 36Kr Holdings Inc.'s shareholders' equity | 299,405 | 380,821 |
Total liabilities and shareholders' equity | 501,735 | 578,529 |
Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 621 |
Class B ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 66 | 66 |
Parent company | Reportable legal entities | ||
Current assets: | ||
Cash and cash equivalents | 31,833 | 48,510 |
Amount due from inter-company entities | 468 | |
Receivables due from related parties | 10 | 29 |
Prepayments and other current assets | 180 | 181 |
Non-current assets: | ||
Investments in subsidiaries, VIE and subsidiaries of VIE | 285,624 | 351,816 |
Total assets | 318,115 | 400,536 |
Current liabilities: | ||
Amount due to inter-company entities | 14,463 | 14,762 |
Salary and welfare payables | 361 | |
Accrued liabilities and other payables | 3,886 | 4,953 |
Total liabilities | 18,710 | 19,715 |
Commitments and Contingencies (Note 18) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,049,448 | 2,040,693 |
Treasury stock (US$ 0.0001 par value; 15,557,593 shares and 16,201,618 shares as of December 31, 2020 and 2021, respectively) | (13,598) | (14,081) |
Accumulated deficit | (1,728,152) | (1,638,581) |
Accumulated other comprehensive loss | (8,987) | (7,897) |
Total 36Kr Holdings Inc.'s shareholders' equity | 299,405 | 380,821 |
Total liabilities and shareholders' equity | 318,115 | 400,536 |
Parent company | Reportable legal entities | Class A ordinary shares | ||
Shareholders' equity | ||
Ordinary shares | 628 | 621 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 08, 2019 | Aug. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheets | ||||||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, shares authorized (in shares) | 4,326,574,000 | |||||
Ordinary shares, shares issued (in shares) | 189,388,000 | |||||
Ordinary shares, shares outstanding (in shares) | 189,388,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Treasury stock (in shares) | 16,201,618 | 15,557,593 | ||||
Class A ordinary shares | ||||||
Condensed Balance Sheets | ||||||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 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 | 884,846,745 | 841,275,820 | |||
Ordinary shares, shares outstanding (in shares) | 893,706,595 | 871,850,620 | 841,275,820 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | 0.0001 | |||
Class B ordinary shares | ||||||
Condensed Balance Sheets | ||||||
Ordinary shares, par value (in US dollar per share) | $ 0.0001 | $ 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 | 96,082,700 | |||
Ordinary shares, shares outstanding (in shares) | 96,082,700 | 96,082,700 | 96,082,700 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Parent company | Reportable legal entities | ||||||
Condensed Balance Sheets | ||||||
Ordinary shares, par value (in US dollar per share) | 0.0001 | 0.0001 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||
Treasury stock (in shares) | 16,201,618 | 15,557,593 | ||||
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 | 884,846,745 | ||||
Ordinary shares, shares outstanding (in shares) | 893,706,595 | 871,850,620 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||
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 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Condensed Financial Informati_5
Condensed Financial Information of the Company Condensed Statement of Operations and Comprehensive Loss (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses: | |||
Sales and marketing expenses | ¥ (143,887) | ¥ (140,672) | ¥ (131,301) |
General and administrative expenses | (90,636) | (212,411) | (131,075) |
Total operating expenses | (282,041) | (392,710) | (298,183) |
Loss from operations | (94,106) | (267,318) | (22,867) |
Other income/(expenses): | |||
Share of loss from subsidiaries, VIE and subsidiaries of VIE | (5,473) | (23,502) | |
Others, net | 3,283 | 3,280 | 783 |
Loss before income tax | (90,507) | (275,578) | (6,018) |
Income tax expenses | 102 | 3,764 | 19,893 |
Net loss | (90,609) | (279,342) | (25,911) |
Accretion on redeemable noncontrolling interests to redemption value | (1,808) | ||
Accretion of convertible redeemable preferred shares to redemption value | (449,130) | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (26,787) | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares | (309,984) | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | (36,977) | ||
Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders | (89,571) | (280,231) | (850,441) |
Parent company | Reportable legal entities | |||
Operating expenses: | |||
Sales and marketing expenses | (282) | (55) | |
General and administrative expenses | (9,269) | (9,439) | (2,435) |
Total operating expenses | (9,551) | (9,494) | (2,435) |
Loss from operations | (9,551) | (9,494) | (2,435) |
Other income/(expenses): | |||
Share of loss from subsidiaries, VIE and subsidiaries of VIE | (80,559) | (272,297) | (23,797) |
Interest income | 64 | 983 | 484 |
Interest expenses | (70) | (14) | (73) |
Others, net | 545 | 591 | 66 |
Loss before income tax | (89,571) | (280,231) | (25,755) |
Net loss | (89,571) | (280,231) | (25,755) |
Accretion on redeemable noncontrolling interests to redemption value | (1,808) | ||
Accretion of convertible redeemable preferred shares to redemption value | (449,130) | ||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | (26,787) | ||
Re-designation of ordinary shares into Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares, and issuance of Series A-1, A-2, B-1, B-2, B-3 convertible redeemable preferred shares | (309,984) | ||
Re-designation of ordinary shares into Series C-2 convertible redeemable preferred shares | (36,977) | ||
Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders | ¥ (89,571) | ¥ (280,231) | ¥ (850,441) |
Condensed Financial Informati_6
Condensed Financial Information of the Company Condensed Statement of Cash Flows (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | ¥ 194,961 | ¥ (17,125) | ¥ (158,937) |
Net cash used in investing activities | (157,997) | (64,289) | 9,885 |
Net cash provided by/(used in) financing activities | (23) | (32,837) | 278,337 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | (822) | (2,780) | (376) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 36,119 | (117,031) | 128,909 |
Cash, cash equivalents and restricted cash at beginning of the year | 60,846 | 177,877 | 48,968 |
Cash, cash equivalents and restricted cash at end of the year | 96,965 | 60,846 | 177,877 |
Parent company | Reportable legal entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | (9,857) | (3,298) | (1,604) |
Net cash used in investing activities | (77,536) | (210,769) | |
Net cash provided by/(used in) financing activities | (5,773) | (27,360) | 371,659 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | (1,047) | (2,334) | (248) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (16,677) | (110,528) | 159,038 |
Cash, cash equivalents and restricted cash at beginning of the year | 48,510 | 159,038 | |
Cash, cash equivalents and restricted cash at end of the year | ¥ 31,833 | ¥ 48,510 | ¥ 159,038 |
Condensed Financial Informati_7
Condensed Financial Information of the Company information of the revision (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | ¥ (157,997) | ¥ (64,289) | ¥ 9,885 |
Net cash provided by financing activities | (23) | (32,837) | 278,337 |
Parent company | Reportable legal entities | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | (77,536) | (210,769) | |
Net cash provided by financing activities | ¥ (5,773) | ¥ (27,360) | ¥ 371,659 |