20-F: 36Kr Holdings Reports Net Income in 2025

36Kr Holdings Inc. achieved net income in 2025, a significant turnaround from the previous year's net loss, driven by cost control and improved operational efficiency.

Summary

• 36Kr Holdings Inc. reported a net income of RMB 11.4 million (US$1.6 million) for the fiscal year ended December 31, 2025, a substantial improvement from a net loss of RMB 140.8 million in 2024.
• Total revenues for 2025 were RMB 227.9 million (US$32.6 million), a slight decrease of 1.2% from RMB 231.1 million in 2024.
• Online advertising services, the largest revenue segment, saw a marginal decrease of 0.5% to RMB 179.7 million (US$25.7 million).
• Enterprise value-added services revenue increased by 1.2% to RMB 33.2 million (US$4.7 million), attributed to innovative marketing solutions and sales strategies.
• Subscription services revenue decreased by 14.2% to RMB 15.1 million (US$2.2 million), reflecting a strategic shift in training services.
• Cost of revenues decreased by 18.8% to RMB 96.4 million (US$13.8 million) due to strict cost control measures.
• Total operating expenses decreased significantly by 36.1% to RMB 121.5 million (US$17.4 million), primarily due to disciplined expense management across sales and marketing, general and administrative, and research and development.
• The company's other income/(expenses) shifted from an expense of RMB 63.0 million in 2024 to income of RMB 1.4 million in 2025, mainly due to a reduction in long-term investment impairment losses.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively due to the company's return to profitability and significant reduction in operating expenses, indicating improved financial health and operational efficiency, despite a slight revenue decline.

Positives

• Achieved net income of RMB 11.4 million (US$1.6 million) in 2025, reversing a net loss of RMB 140.8 million in 2024.
• Reduced total operating expenses by 36.1% to RMB 121.5 million (US$17.4 million) through disciplined management.
• Decreased cost of revenues by 18.8% to RMB 96.4 million (US$13.8 million) due to cost control measures.
• Enterprise value-added services revenue saw a slight increase of 1.2% to RMB 33.2 million (US$4.7 million).
• Improved other income/(expenses) from a net expense of RMB 63.0 million in 2024 to a net income of RMB 1.4 million in 2025, largely due to reduced investment impairment losses.

Negatives

• Total revenues decreased by 1.2% to RMB 227.9 million (US$32.6 million) in 2025 compared to 2024.
• Online advertising services revenue saw a slight decrease of 0.5% to RMB 179.7 million (US$25.7 million).
• Subscription services revenue decreased by 14.2% to RMB 15.1 million (US$2.2 million).

Risks

• The company's corporate structure, relying on VIE agreements, faces uncertainties regarding PRC laws and regulations, potentially affecting enforceability and financial performance.
• The company is subject to risks associated with operating in the rapidly evolving New Economy sectors, including regulatory changes and market trends.
• Failure to maintain and enhance brand reputation could adversely affect business, user acquisition, and customer retention.
• The company faces risks related to cybersecurity and data privacy, with evolving laws and regulations in China.
• The company may be subject to administrative sanctions due to a lack of Internet news information license, Internet audio-visual program transmission license, and Internet publishing license.
• The company has not maintained compliance with the minimum bid price requirement for continued listing on Nasdaq, although it has regained compliance.
• The company may be classified as a PRC resident enterprise for tax purposes, leading to unfavorable tax consequences.
• The company has a material weakness in internal control over financial reporting due to a lack of sufficient competent financial reporting and accounting personnel.
• The company's dual-class share structure with different voting rights could limit shareholder influence and discourage change-of-control transactions.
• The company is a controlled company, potentially exempting it from certain corporate governance requirements that protect shareholders.

Future Outlook

The company's financial performance in 2025 shows a positive trend with a return to net income, driven by cost control and operational efficiency. The company intends to continue focusing on these strategies to maintain and improve its financial position.

Management Comments

• The turnaround to net income was primarily driven by the effectiveness of our strategic initiatives focused on cost control and high-margin businesses, along with the reduction in impairment losses on long-term investments and lower provision of allowance for credit losses resulting from improved receivables collection.
• We believe that our current cash and cash equivalents and short-term investment will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures, for at least the next 12 months.

Industry Context

StockSavvy.ai notes that 36Kr's return to profitability in 2025, despite a slight revenue dip, highlights a strategic shift towards operational efficiency and cost management, a trend observed in some Chinese New Economy companies navigating a more challenging economic and regulatory landscape. The company's focus on high-margin businesses and cost reduction is a prudent approach in the current market.

Legal Proceedings

• The company is not a party to any material legal or administrative proceedings.
• The company may be subject to periodic legal or administrative proceedings in the ordinary course of business, but none are expected to have a material adverse effect.

Related Party Transactions

• Provided advertising and enterprise value-added services to Beijing Sanke (associate), with revenues of RMB 1.0 million in 2023, RMB 0.08 million in 2024, and Nil in 2025.
• Purchased video production services from Shanghai Xuanke (associate) for RMB 49 thousand in 2023, RMB 0.5 million in 2024, and RMB 0.3 million in 2025.
• Earned advertising revenue from Shanghai Xuanke (associate) of RMB 0.5 million in 2023, RMB 2.7 million in 2024, and RMB 1.0 million in 2025.
• Purchased overseas related content production services from Jijingzhiyu (associate) for RMB 0.1 million in 2023, RMB 0.4 million in 2024, and RMB 0.3 million in 2025.
• Invested RMB 3.95 million in Wenzhou Qingke in 2024 and an additional RMB 5.0 million in 2025.
• Disposed of equity investment to Wenzhou Qingke for RMB 3.0 million in 2025.
• Outsourced advertising and enterprise value-added services to Beijing Pengke (associate) for RMB 2.3 million in 2025.
• Earned advertising and branding resources revenue from Beijing Pengke (associate) of RMB 0.2 million in 2025.
• Outsourced advertising and enterprise value-added services to Beijing Zhisheng (associate) for RMB 0.9 million in 2025.

Stakeholder Impact

• Shareholders may experience less protection due to reliance on home country corporate governance practices and controlled company exemptions.
• Investors may face adverse U.S. federal income tax consequences if the company is classified as a Passive Foreign Investment Company (PFIC).

Next Steps

• Continue to focus on cost control and high-margin businesses.
• Refine subscription services customer base and training services.
• Explore opportunities to further diversify monetization channels.
• Continue to invest in technology and AI for content production efficiency.

Key Dates

Recommendation

While the company has returned to profitability and demonstrated improved cost management, the slight decline in total revenues and ongoing risks related to VIE structure, regulatory environment in China, and potential PFIC status warrant a cautious 'hold' recommendation. Further sustained revenue growth and clearer resolution of regulatory risks would be needed to consider a 'buy' recommendation.

Keywords

36Kr Holdings, SEC Filing, Form 20-F, Annual Report, Financial Results, Net Income, Revenue, Operating Expenses, New Economy, China, VIE Structure, Nasdaq, KRKR