36Kr Holdings Inc. Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

BEIJING,March 29,2023 -- 36Kr Holdings Inc. ("36Kr" or the "Company" or "We") (NASDAQ: KRKR),a prominent brand and a pioneering platform dedicated to serving New Economy participants in China,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2022.

Fourth Quarter 2022 Highlights

Number of followers[1] as of December 31,2022 reached 28.7 million,an increase of 22.6% from 23.4 million as of December 31,2021.

Total revenues were RMB96.6 million (US$14.0 million) in the fourth quarter of 2022,compared to RMB116.3 million in the same period of 2021.

Net loss was RMB21.5 million (US$3.1 million) in the fourth quarter of 2022,compared to net income of RMB15.4 million in the same period of 2021.

Fiscal Year 2022 Financial Highlights

Total revenues increased by 1.8% to RMB322.5 million (US$46.8 million) in fiscal year 2022,compared to RMB316.8 million in the prior year.

Revenues from online advertising services increased by 3.2% to RMB221.6 million (US$32.1 million) in fiscal year 2022,from RMB214.7 million in the prior year.

Revenues from enterprise value-added services were RMB72.6 million (US$10.5 million) in fiscal year 2022,compared to RMB74.0 million in the prior year.

Revenues from subscription services increased by 0.7% to RMB28.2 million (US$4.1 million) in fiscal year 2022,from RMB28.0 million in the prior year.

Gross profit was RMB184.6 million (US$26.8 million) in fiscal year 2022,compared to RMB187.9 million in the prior year. Gross profit margin was 57.3% in fiscal year 2022,compared to 59.3% in the prior year.

Net income was RMB22.6 million (US$3.3 million) in fiscal year 2022,compared to net loss of RMB90.6 million in the prior year.

[1] "Number of followers" refers to the aggregate number of followers across the official accounts we own and/or operate on various social media and online platforms,including but not limited to Weixin,Weibo,Zhihu,Toutiao,Xinhua Net,Douyin and Bilibili.

Selected Operating Data

For the Fiscal Year Ended

December 31,

2021

2022

Online advertising services

Number of online advertising services end customers

512

532

Average revenue per online advertising services end

customer (RMB'000)[2]

419.4

416.6

Enterprise value-added services

Number of enterprise value-added services end customers

302

252

Average revenue per enterprise value-added services end

customer (RMB'000)[3]

245.1

288.3

Subscription services

Number of individual subscribers

1,874

437

Average revenue per individual subscriber (RMB)[4]

1,302.7

1,643.5

Number of institutional investors

208

217

Average revenue per institutional investor (RMB'000)[5]

123.0

126.8

[2] Equals revenues generated from online advertising services for a period divided by the number of online advertising services end customers in the same period.

[3] Equals revenues generated from enterprise value-added services for a period divided by the number of enterprise value-added services end customers in the same period.

[4] Equals revenues generated from individual subscription services for a period divided by the number of individual subscribers in the same period.

[5] Equals revenues generated from institutional investor subscription services for a period divided by the number of institutional investors in the same period

Mr. Dagang Feng,Co-chairman and CEO of 36Kr,commented,"Despite pandemic resurgences and macroeconomic challenges in 2022,we navigated through numerous headwinds and concluded the year on a solid note. Our full-year revenue grew 2% year-over-year and net income reached RMB23 million,marking our first full-year profit since our listing. These strong results were driven by our continuous innovation in New Economy-focused content,product and services,which also elevated our ever-growing influence and value proposition to our consumers. As of the end of 2022,the number of our followers exceeded 28 million,representing an increase of 23% year-over-year. Moreover,our new application-level product,36Kr Enterprise Service Review platform,continued to see a robust uptick across multiple operating metrics and growing commercialization momentum. As we embark on 2023,we will remain focused on enriching our content ecosystem and product matrix,fueling our efforts to seize the New Economy's tremendous growth potential. We believe that our firm fundamentals have positioned us to propel the Company to even greater heights and unlock more value in 2023 and beyond."

Ms. Lin Wei,Chief Financial Officer of 36Kr,added,"Our solid financial performance in fiscal year 2022 is a testament to our businesses' resilience and vitality given the COVID-19 resurgences and macro uncertainties during the year. We managed to grow our top-line on a full-year basis while maintaining our gross margin at a relatively stable level,against the backdrop of various external challenges and complications. Notably,we also achieved our first full-year profitability since our IPO as we refined our revenue mix,cost structure and operational efficiency,as well as our investment rationale. Heading into 2023,we will continue to amplify our core competitive advantages,expand our product and service offerings and explore greater monetization potential,reaffirming our longstanding commitment to creating sustainable value for our shareholders and society."

Fourth Quarter 2022 Financial Results

Total revenuesdecreased by 17.0% to RMB96.6 million (US$14.0 million) in the fourth quarter of 2022,from RMB116.3 million in the same period of 2021.

Online advertising services revenues were RMB62.2 million (US$9.0 million) in the fourth quarter of 2022,compared to RMB76.4 million in the same period of 2021. The decrease was primarily attributable to relatively weak advertising spending caused by the negative impact of COVID-19 control measures and infections across China during the fourth quarter of 2022.

Enterprise value-added services revenues were RMB25.4 million (US$3.7 million) in the fourth quarter of 2022,compared to RMB30.3 million in the same period of 2021. The decrease was primarily because some of our offline events were delayed or downscaled due to disruptions from COVID-19.

Subscription services revenues were RMB8.9 million (US$1.3 million) in the fourth quarter of 2022,compared to RMB9.6 million in the same period of 2021. The decrease was primarily attributable to the negative impact of COVID-19.

Cost of revenues was RMB47.6 million (US$6.9 million) in the fourth quarter of 2022,compared to RMB40.7 million in the same period of 2021. The increase was primarily attributable to higher content costs related to expansion of commercial-oriented content programs.

Gross profitwas RMB48.9 million (US$7.1 million) in the fourth quarter of 2022,compared to RMB75.6million in the same period of 2021. Gross profit margin was 50.7% in the fourth quarter of 2022,compared to65.0% in the same period of 2021.

Operating expenseswere RMB69.0 million (US$10.0million) in the fourth quarter of 2022,compared to RMB61.6million in the same period of 2021.

Sales and marketing expenses were RMB32.8 million (US$4.8 million) in the fourth quarter of 2022,a decrease of 16.5% from RMB39.3 million in the same period of 2021,primarily attributable to the decrease in marketing related expenses.

General and administrative expenses were RMB21.7 million (US$3.1 million) in the fourth quarter of 2022,compared to RMB9.6 million in the same period of 2021. The variance was primarily attributable to the release of allowance for credit losses recognized in the fourth quarter of 2021.

Research and development expenses were RMB14.5 million (US$2.1 million) in the fourth quarter of 2022,compared to RMB12.6 million in the same period of 2021. The increase was primarily attributable to the increase of payroll-related expenses.

Share-based compensation expenses recognized in cost of revenues,sales and marketing expenses,research and development expenses,as well as general and administrative expenses totaled RMB4.6 million (US$0.7 million) in the fourth quarter of 2022,compared to RMB4.1 million in the same period of 2021.

Other expenses were RMB1.2 million (US$0.2 million) in the fourth quarter of 2022,compared to other income of RMB1.5 million in the same period of 2021

Income tax expenseswere RMB0.2 million(US$28.0thousand) in the fourth quarter of 2022,compared to RMB93.0 thousand in the same period of 2021.

Net loss was RMB21.5 million (US$3.1million) in the fourth quarter of 2022,compared to net income of RMB15.4 million in the same period of 2021. Non-GAAP adjusted net loss[6] was RMB16.9million (US$2.4 million) in the fourth quarter of 2022,compared to non-GAAP adjusted net income of RMB19.6 million in the same period of 2021.

[6] Non-GAAP adjusted income/(loss) represents net income/(loss) excluding share-based compensation expenses

Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholderswas RMB20.8million (US$3.0million) in the fourth quarter of 2022,compared to net income attributable to 36Kr Holdings Inc.'s ordinary shareholders of RMB14.6million in the same period of 2021.

Basic and diluted net loss per ADS were both RMB0.50 (US$0.07) in the fourth quarter of 2022,compared to basic and diluted net income per ADS of RMB0.36 in the same period of 2021.

Certain Balance Sheet Items

As of December 31,2022,the Company had cash,cash equivalents,restricted cash and short-term investments of RMB184.9 million (US$26.8 million),compared to RMB164.0 million as of September 30,2022. The increase was mainly attributable to positive cash inflow from operating activities,partially offset by the long-term investment in a New Economy start-up company in the fourth quarter of 2022.

Fiscal Year 2022 Financial Results

Total revenueswere RMB322.5 million (US$46.8 million) in fiscal year 2022,compared to RMB316.8 million in the prior year.

Online advertising services revenues were RMB 221.6 million (US$32.1 million) in fiscal year 2022,representing an increase of 3.2%,compared to RMB214.7 million in the prior year. The increase was primarily attributable to more innovative marketing solutions we provided to our customers as well as proactive sales strategies we adopted to navigate the challenging environment during the year.

Enterprise value-added services revenues were RMB72.6 million (US$10.5 million) in fiscal year 2022,compared to RMB74.0 million in the prior year. The decrease was primarily because to some of our offline events were delayed or downscaled due to disruptions from COVID-19.

Subscription services revenues were RMB28.2 million (US$4.1 million) in fiscal year 2022,representing an increase of 0.7%,compared to RMB28.0 million in the prior year. The increase was primarily attributable to our continuous efforts to offer high-quality subscription products to our subscribers.

Cost of revenues was RMB137.8 million (US$20.0 million) in fiscal year 2022,compared to RMB128.8 million in the prior year.The increase was primarily attributable to the increase in content related costs,partially offset by the decrease in costs of offline events.

Gross profitwas RMB184.6 million (US$26.8 million) in fiscal year 2022,compared to RMB187.9million in the prior year. Gross profit margin was 57.3% in fiscal year 2022,compared to 59.3% in the prior year.

Operating expenseswere RMB229.2 million (US$33.2million) in fiscal year 2022,compared to RMB282.0million in the prior year.

Sales and marketing expenses were RMB122.1 million (US$17.7 million) in fiscal year 2022,compared to RMB143.9 million in the prior year. The decrease was primarily attributable to the decrease in payroll-related expenses,share-based compensation expenses,marketing expenses and promotion fees.

General and administrative expenses were RMB52.1 million (US$7.6million) in fiscal year 2022,compared to RMB90.6 million in the prior year. The decrease was primarily attributable to the release of the allowance for credit losses amounted to RMB33.3 million and the decrease in professional fees. The release of allowance for credit losses was mainly due to improved collection of accounts receivable,as we continuously increase our efforts in accounts receivable collection.

Research and development expenses were RMB55.0 million (US$8.0 million) in fiscal year 2022,compared to RMB47.5 million in the prior year. The increase was primarily attributable to the increase in payroll-related expenses as we bolstered our research and development capabilities.

Share-based compensation expenses recognized in cost of revenues,as well as general and administrative expenses totaled RMB13.9 million (US$2.0 million) in fiscal year 2022,compared to RMB15.0 million in the prior year.

Other incomewas RMB67.5 million (US$9.8 million) in fiscal year 2022,compared to RMB3.6 million in the prior year. The increase was primarily attributable to gain arising from disposal of a subsidiary and investment income arising from fair value changes of long-term investments,as well as income generated from write-offs of accounts payable.

Income tax expenseswere RMB0.4 million(US$52thousand) in fiscal year 2022,compared to RMB0.1million in the prior year.

Net incomewas RMB22.6 million (US$3.3 million) in fiscal year 2022,compared to net loss ofRMB90.6million in the prior year. Non-GAAP adjusted net income was RMB36.5million (US$5.3million) in fiscal year 2022,compared to Non-GAAP adjusted net loss of RMB75.6 million in the prior year.

Net income attributable to 36Kr Holdings Inc.'s ordinary shareholderswas RMB21.9 million (US$3.2million) in fiscal year 2022,compared to net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders of RMB89.6 million in the prior year.

Basic and diluted net income per ADS were both RMB0.53 (US$0.08) in fiscal year 2022,compared to basic and diluted net loss per ADS of RMB2.19 in the prior year.

Conference Call

The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March29,2023 (8:00 PM Beijing/Hong Kong Time on March29,2023).

For participants who wish to join the call by phone,please access the link provided below to complete the pre-registration and dial in 5 minutes prior to the scheduled call start time. Upon registration,each participant will receive dial-in details to join the conference call.

Event Title:

36Kr Holdings Inc. Fourth Quarter and Fiscal Year 2022 Earnings Conference Call

Pre-registration link:

https://s1.c-conf.com/diamondpass/10029686-7z13rg.html

Additionally,a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.36kr.com.

A replay of the conference call will be available for one week from the date of the conference,by dialing the following telephone numbers:

United States:

+1-855-883-1031

International:

+61-7-3107-6325

Hong Kong,China:

800-930-639

Mainland China:

400-120-9216

Replay PIN:

10029686

About 36Kr Holdings Inc.

36Kr Holdings Inc. is a prominent brand and a pioneering platform dedicated to serving New Economy participants in China with the mission of empowering New Economy participants to achieve more. The Company started its business with high-quality New Economy-focused content offerings,covering a variety of industries in China's New Economy with diverse distribution channels. Leveraging traffic brought by high-quality content,the Company has expanded its offerings to business services,including online advertising services,enterprise value-added services and subscription services to address the evolving needs of New Economy companies and upgrading needs of traditional companies. The Company is supported by comprehensive database and strong data analytics capabilities. Through diverse service offerings and the significant brand influence,the Company is well-positioned to continuously capture the high growth potentials of China's New Economy.

For more information,please visit: http://ir.36kr.com.

Use of Non-GAAP Financial Measures

In evaluating its business,the Company considers and uses two non-GAAP measures,adjusted net income/(loss) and adjusted EBITDA,as supplemental measures to review and assess its operating performance. The presentation of these two non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the Company's management to evaluate its operating performance and formulate business plans. The Company also believes that the use of these non-GAAP measures facilitates investors' assessment of its operating performance.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further,these non-GAAP measures may differ from the non-GAAP information used by other companies,including peer companies,and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure,all of which should be considered when evaluating the Company performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.

Adjusted net loss represents net loss excluding share-based compensation expenses.

Adjusted EBITDA represents adjusted net income/(loss) before interest income,interest expenses,income tax expense/(credit),depreciation of property and equipment and amortization of intangible assets.

For more information on these non-GAAP financial measures,please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader.Unless otherwise noted,all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB6.8972 to US$1.00,the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on of December 30,2022.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the Company's goal and strategies; the Company's future business development,results of operations and financial condition; relevant government policies and regulations relating to our business and industry; the Company's expectations regarding the use of proceeds from this offering; the Company's expectations regarding demand for,and market acceptance of,its services; the Company's ability to maintain and enhance its brand; the Company's ability to provide high-quality content in a timely manner to attract and retain users; the Company's ability to retain and hire quality in-house writers and editors; the Company's ability to maintain cooperation with third-party professional content providers; the Company's ability to maintain relationship with third-party platforms; general economic and business condition in China; possible disruptions in commercial activities caused by natural or human-induced disasters; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release,and the Company undertakes no obligation to update any forward-looking statement,except as required under applicable law.

For investor and media inquiries,please contact:

In China:

36Kr Holdings Inc.

Investor Relations

Tel: +86 (10) 5825-4188

E-mail: ir@36kr.com

The Piacente Group,Inc.

Jenny Cai

Tel: +86 (10) 6508-0677

E-mail: 36Kr@tpg-ir.com

In the United States:

The Piacente Group,Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: 36Kr@tpg-ir.com

36Kr Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

December31,

December31,

2021

2022

2022

RMB'000

RMB'000

US$'000

Assets

Current assets:

Cash and cash equivalents

96,965

142,511

20,662

Restricted cash

-

100

14

Short–term investments

119,140

42,270

6,129

Accounts receivable,net

180,161

197,528

28,639

Receivables due from related parties

3,630

858

124

Prepayments and other current assets

42,612

16,159

2,343

Total current assets

442,508

399,426

57,911

Non–current assets:

Property and equipment,net

3,428

352

Intangible assets,net

808

1,249

181

Long-term investments

41,442

137,357

19,915

Operating lease right-of-use assets,net

13,818

30,911

4,482

Total non–current assets

59,227

171,945

24,930

Total assets

501,735

571,371

82,841

Liabilities

Current liabilities:

Accounts payable

56,266

53,465

7,752

Salary and welfare payables

55,788

52,204

7,569

Taxes payable

12,836

10,874

1,577

Deferred revenue

28,863

24,575

3,563

Amounts due to related parties

1,328

312

45

Accrued liabilities and other payables

17,501

27,606

4,002

Short-term bank loan

5,000

9,950

1,443

Operating lease liabilities

16,302

31,293

4,537

Total current liabilities

193,884

210,279

30,488

Non-current liabilities:

Operating lease liabilities

586

15,093

2,188

Other non-current liabilities

-

615

89

Total non-current liabilities

586

15,708

2,277

Total liabilities

194,470

225,987

32,765

Shareholders' equity

Ordinary shares

694

694

101

Treasury stock

(13,598)

(12,010)

(1,741)

Additional paid-in capital

2,049,448

2,061,491

298,888

Accumulated deficit

(1,728,152)

(1,706,209)

(247,377)

Accumulated other comprehensive loss

(8,987)

(5,860)

(850)

Total 36Kr Holdings Inc.'s shareholders' equity

299,405

338,106

49,021

Non-controlling interests

7,860

7,278

1,055

Total shareholders' equity

307,265

345,384

50,076

Total liabilities and shareholders' equity

501,841

36Kr Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

Three Months Ended

Twelve Months Ended

December31,

2021

2022

2022

2021

2022

2022

RMB'000

RMB'000

US$'000

RMB'000

RMB'000

US$'000

Revenues:

Online advertising services

76,393

62,246

9,025

214,722

221,620

32,132

Enterprise value-added services

30,333

25,396

3,682

74,032

72,640

10,532

Subscription services

9,561

8,933

1,295

28,025

28,237

4,094

Total revenues

116,287

96,575

14,002

316,779

322,497

46,758

Cost of revenues

(40,735)

(47,626)

(6,905)

(128,844)

(137,848)

(19,986)

Gross profit

75,552

48,949

7,097

187,935

184,649

26,772

Operating expenses:

Sales and marketing expenses

(39,303)

(32,802)

(4,756)

(143,887)

(122,069)

(17,698)

General and administrative expenses

(9,622)

(21,699)

(3,146)

(90,636)

(52,072)

(7,550)

Research and development expenses

(12,635)

(14,538)

(2,108)

(47,518)

(55,045)

(7,981)

Total operating expenses

(61,560)

(69,039)

(10,010)

(282,041)

(229,186)

(33,229)

Income/(loss) from operations

13,992

(20,090)

(2,913)

(94,106)

(44,537)

(6,457)

Other income/(expenses):

Share of loss from equity method investments

(1,417)

(234)

(34)

(5,473)

51

7

Gain on disposal of a subsidiary

-

-

-

-

38,019

5,512

Long-term investment income/(loss),net

-

(2,500)

(362)

-

15,964

2,315

Short-term investment income

587

364

53

2,485

1,999

290

Government grant

877

96

14

3,304

3,447

500

Others,net

1,473

1,047

152

3,283

8,055

1,168

Income/(loss) before income tax

15,512

(21,317)

(3,090)

(90,507)

22,998

3,335

Income tax expenses

(93)

(190)

(28)

(102)

(361)

(52)

Net income/(loss)

15,419

(21,507)

(3,118)

(90,609)

22,637

3,283

Net (income)/loss attributable to non-controlling

interests

(858)

692

100

1,038

(694)

(101)

Net income/(loss) attributable to 36Kr Holdings

Inc.'s ordinary shareholders

14,561

(20,815)

(3,018)

(89,571)

21,943

3,182

Net income/(loss)

15,283

Other comprehensive income/(loss)

Foreign currency translation adjustments

(719)

(621)

(90)

(1,090)

3,127

453

Total other comprehensive income/(loss)

(719)

(621)

(90)

(1,090)

3,127

453

Total comprehensive income/(loss)

14,700

(22,128)

(3,208)

(91,699)

25,764

3,736

Net loss/(income) attributable to non-controlling

interests

(858)

692

100

1,038

(694)

(101)

Comprehensive income/(loss) attributable to 36Kr

Holdings Inc.'s ordinary shareholders

13,842

(21,436)

(3,108)

(90,661)

25,070

3,635

Net income/(loss) per ordinary share (RMB)

Basic

0.014

(0.020)

(0.003)

(0.087)

0.021

0.003

Diluted

0.014

(0.020)

(0.003)

(0.087)

0.021

0.003

Net income/(loss) per ADS (RMB)

Basic

0.356

(0.498)

(0.072)

(2.185)

0.530

0.077

Diluted

0.356

(0.498)

(0.072)

(2.185)

0.530

0.077

Weighted average number of ordinary shares used in

per share calculation

Basic

1,023,363,947

1,044,317,684

1,025,068,349

1,034,547,219

1,219

Diluted

1,219

Weighted average number of ADS used in per ADS

calculation

Basic

40,934,558

41,772,707

41,002,734

41,381,889

41,889

Diluted

40,889

36Kr Holdings Inc.

UNAUDITEDRECONCILIATIONSOF GAAP AND NON-GAAP RESULTS

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2021

2022

2022

2021

2022

2022

RMB'000

RMB'000

US$'000

RMB'000

RMB'000

US$'000

Net income/(loss)

15,283

Share-based compensation expenses

4,138

4,618

670

15,018

13,886

2,013

Non-GAAP adjusted net income/(loss)

19,557

(16,889)

(2,448)

(75,591)

36,523

5,296

Interest income,net

(396)

(475)

(69)

(903)

(1,039)

(151)

Income tax expenses

93

190

28

102

361

52

Depreciation and amortization

expenses

735

499

72

2,659

1,922

279

Non-GAAP adjusted EBITDA

19,989

(16,675)

(2,417)

(73,733)

37,767

5,476