KRKR

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s second half and fiscal year 2025 earnings conference call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Zhen Wang, IR Manager of the company. Please go ahead, Zhen.

Thank you very much. Hello, everyone, and welcome to 36Kr Holdings Inc.'s second half annual fiscal year 2025 earnings conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Chairman and CEO, Mr. Dagang Feng, and our Chief Financial Officer, Mr. Xiang Li. Mr. Feng will start the call by providing an overview of the company and the performance highlights of the second half and the fiscal year 2025 in Chinese, followed by an English interpretation. Mr. Li will then provide details on the company's financial results before opening the call for your questions.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please note that 36Kr's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unauditednon-GAAP measures to the unaudited GAAP measures. Please note that all amount numbers are in RMB.

I will now turn the call over to our Chairman and CEO, Mr. Dagang Feng. Dagang, please go ahead. Thank you. Hello, everyone. Thank you for joining our second half and the fiscal year 2025 earnings conference call. Over the past two years, 36Kr has consistently focused on improving operating efficiency and optimizing financial structure. We have continuously upgraded our organizational structure, optimized the expenses, and strengthened our core capabilities. In 2025, while maintaining solid revenue performance, we achieved a major operational breakthrough by turning profitable. At the same time, our cash reserves remain stable, paving the way for the company's long-term financial health and the sustainable innovation-driven growth. For the full year of 2025, our gross profit margin reached 57.7%, an increase of 9 percentage points year-over-year. Operating expenses decreased by almost RMB 70 million from the same period last year.

Our total operating expenses as a percentage of the total revenues decreased to 53%. Notably, the company recorded a net profit of RMB 11 million for the year. These achievements were driven by our continued integration of content innovation, commercialization breakthroughs and the technological applications into the company's business operations, which together optimized our organizational structure and improved workforce efficiency. We consistently fortified our content ecosystem in 2025, leveraging our peerless content creation promise to steadily extend our influence. In terms of our content dissemination network, we expanded our footprints across diverse channels, crafting a comprehensive circulation metrics encompassing major new medium platforms like Weibo, Xiaohongshu, Toutiao, Zhihu, Bilibili, Douyin, and Kuaishou, among others. Broad channel exposure has brought us wider overall dissemination and higher visibility for our premium content. Our consistent production of high quality content also diversified our users demographics, elevating user engagement and stickiness.

At the end of 2025, we had over 36.8 million followers, marking 19 consecutive quarters of user growth.

在内容体裁方面，我们通过图文、长短视频、音频、直播等逐步丰富内容表达形式。在图文方面，36Kr在保持既有内容矩阵的同时，多维度持续创造优质内容。公司在36Kr、36Kr Pro等旗舰型矩阵号的基础上，在智能涌现、36Kr汽车、未来消费、36Kr游戏、暗涌Waves、36Kr财经、后浪研究所、潮生Tide等优质垂类内容账号不断积累，兼顾内容的覆盖广度以及在细分领域的积累深度，带领用户洞察行业趋势与商业热点。2025年年初，我们首发36Kr未来产业，作为公司关注城市创新和前沿科技，布局未来产业影响力的全新内容频道。浙江嘉善创新药业产业培育，单篇报道收获7万家公众号阅读，全平台曝光超10万。截至目前，公司矩阵号已全面涵盖人工智能、出海、智能制造、硬科技、消费生活、投资行业等多个领域，建立起扎实的内容生态完整和。2025全年，36Kr公众号阅读量10万加的文章数达698篇。暗涌Waves实现同比54%的关注者增长。

We explored a growing array of content formats throughout 2025, including text, graphics, short and long-form videos, audio and live streaming, enriching our content offering with a greater diversity of styles. For text and graphics, we continue to create high quality content on multiple fronts while maintaining our existing content metrics. Building our flagship channels, including 36Kr and 36Kr Pro, we continuously broaden our reach in sub-verticals, actively expanding high qualitycontent-specific accounts like The Emergence of Intelligence, 36Kr Auto, Future Consumption, 36Kr Games, Waves, 36Kr Finance, Oh! Youth, and Tide, among others. These accounts enriched our metrics with both broad content coverage and deep expertise in specialized domains, providing users with invaluable insights into industry trends and evolving business dynamics.

At the start of 2025, we rolled out 36Kr Industry Future, an all-new content channel spotlighting urban innovation and state-of-the-art technologies, building our influence in emerging industries. A notable feature on the innovative pharmaceutical sector in Jiaxing, Zhejiang Province, garnered over 70,000 page views on our official WeChat account and more than 100,000 total exposures. To date, our accounts cover artificial intelligence, Global Expansion, advanced manufacturing, hardcore technology, consumer lifestyle, investment and much more, comprising a thriving content ecosystem. For the full year of 2025, on the 36Kr official account alone, 698 of our articles achieved over 100,000 page views. Meanwhile, Waves followers expanded by 54% year-over-year.

在短视频方面，我们凭借优秀的内容原创能力，获得了用户的广泛关注和认可。全平台视频粉丝数超950万，其中视频号粉丝数量实现同比增长67%。2025年下半年，抖音氪科技新号首发后，便打造AI交心、AI造物主等爆款视频，已经实现超过13万关注者。此外，卧底传播在小红书、抖音、视频号、B站实现超千万播放。

In terms of a short video, our exceptional content creation capabilities earned us widespread visibility and rave reviews from users. Our video followers expanded to 9.5 million as of the end of 2025, with WeChat Channels followers surging by 67% year-over-year. Following the debut of our brand new 36Kr Tech account on Douyin in the second half of 2025, we released blockbuster videos such as AI Confidence and AI Creator, attracting over 130,000 followers to date. In addition, our video undercover multi-host live garnered over 10 million views on Xiaohongshu, Douyin, WeChat Channels, and Bilibili.

在直播方面，2025年我们用较少的人力，积极整合现有资源，充分利用微信视频号，培养一系列矩阵号，包括搞点大事、出海金铲铲、三十六氪CEO锦囊等。同时我们首发面向AI创业者及独立开发者的AI局内人栏目。2025年七月举办的世界人工智能大会，三十六氪以特别支持媒体的身份，打造了集大会全程报道、大咖精彩对话、前沿技术探讨、未来趋势预测、科技新品路透于一体的超级直播间。三十六氪总曝光量5,020万，三十六氪矩阵直播总观看数112.7万。此外，2025年AWE与三十六氪合作，首个机器人特色展区，三十六氪携手五家机器人企业打造未来家机器人特色展区，深度展现机器人智能在家电行业、家居场景的优势，挖掘其市场潜力。此次展会，三十六氪视频号直播观看量104万+，全网总曝光量8,000万+。

In live streaming this year, we optimized our resources with a streamlined team and fully leveraged the WeChat channels to cultivate an array of content-specific accounts, including The Big Deal, Global Expansion, Golden Shovel, and the 36Kr CEO Tips. We also unveiled AI Insider, a program targeting AI entrepreneurs and independent developers.

During this year's World Artificial Intelligence Conference in July, 36Kr served as a special supporting media partner and offered a super live streaming channel that combined full conference reporting, expert panels, cutting-edge technology insights, future trend forecasts, and tech product scoops, garnering 50.8 million total views and engaging 1.17 million viewers across the 36Kr live stream metrics. Moreover, at Appliance & Electronics World Expo 2025, 36Kr launched its first robot-themed exhibition, Future Plus, in partnership with five robotics companies, showcasing the immense potential upside of embodied artificial intelligence in home appliances in home settings. With this exhibition, the 36Kr WeChat channel's livestream garnered over 1.04 million views in total, racking up over 80 million views across diverse platforms.

在IP支付会方面，2025年举办了聚焦投资行业的WAVES大会。本次大会聚焦科技创投新纪元，新锐企业创始人、年轻科学家与顶级投资人汇聚，共同探讨AI技术核心、全球化浪潮与价值成功等前沿议题。本次WAVES大会全网总曝光量超过1.5亿。此外，聚焦AI赛道的2025 AI Partners大会，以"最后APP来了"为主题，聚焦AI超级应用对千行百业的颠覆性变革。本次大会实现全网超过1.3亿曝光。下半年我们举办了WISE 2025商业智库大会，作为公司最大的年度峰会，2025年WISE大会实现总曝光超过5亿，直播观看量超过80万。

In terms of event IP, we hosted our signature investment-focused conference WAVES in 2025, centered on the new era of venture capital. Founders of the emerging companies and innovative young scientists gathered with top-tier investors to discuss leading-edge topics including AI breakthroughs, globalization, and value media assessments. This year's WAVES event amassed over 150 million views. In addition, our 2025 AI Partners Summit focused on the AI sector under the theme Here Comes the Super App, highlighted the disruptive impact of AI super applications across diverse industries, garnering over 130 million views. In the second half of the year, we hosted the WISE 2025 Business Kings Conference as the company's largest annual flagship conference. WISE 2025 Business Kings garnered an impressive 500 million-plus views across diverse platforms, with its live stream racking up more than 800,000 views.

二零二五年，上述内容IP方面的沉淀和创新，让我们在商业化端不断取得突破，包括客户结构优化，年轻态自媒体商业化突破，直播视频业务商业化突破，产业服务商业化突破。

In 2025, our deep expertise in innovation in content and IP sparked continuous commercialization breakthroughs including client structure optimization, stronger commercialization of sub-vertical media channels for younger audiences, new momentum in live streaming and video revenue, and meaningful progress in industrial services commercialization.

在客户结构优化方面，基于上述丰富的内容生态以及多元的出发渠道，让我们不断拓宽服务及产品类型，使得我们的商业化能力和持续性不断增强。后浪客户中，人工智能相关收入持续上升，其中模型层、应用层及硬件客户数量持续增加。

In terms of client structure optimization, our enriched content ecosystem and diverse content distribution channels empowered us to consistently expand our portfolio of services and products, constantly enhancing our commercialization capabilities. Within our internet client portfolio, revenue from AI-related services continued to grow, with the number of clients across model application and hardware layers steadily expanding.

在年轻态自媒体商业化方面，后浪、潮生等年轻态自媒体商业化收入实现同比增长超15%。核心客户持续复购，导致我们的突击内容已获客户持续认可。

Regarding the commercialization of sub-vertical media channels for younger audiences, revenue from channels like Oh! Youth and Tide increased by over 50% year-over-year, with core clients continuously making repeat purchases, reflecting sustained client recognition of our ToC content.

在直播和视频业务商业化方面，短视频和直播下单客户持续增加，新客比例超过50%。2025年直播相关收入同比增长接近40%。基于2025年科技展会如AWE、WAIC，我们也加大了对于展会类直播产品的开发。我们针对丰富的市场需求，开辟了低客单价产品线，作为原有高客单价精品商业化传播内容的有力补充。以此为纽带，我们为更多客户，尤其是正处于起步期的创业公司，提供了更多视频化直播产品，帮助他们触达更多潜在用户。凭借着出海赛道的持续深耕与直播内容创新，我们首次实现广交会客户突破，完成重要的商业合作。直播内容也得到主办方高度认可。在杭州举办的第四届全球数贸会上，我们携手杭州文化广播电视集团，打造了全程不间断直播矩阵。展会五天内，线上观展人数累计超过270万次，累规模达到现场观展人数的十倍以上。2025年，我们将持续探索新的直播形式及场景，为用户和客户搭建更加丰富的内容场景和服务模式。

As for live streaming and video commercialization, the number of clients placing short videos in the live streaming orders continued to grow, with new clients exceeding 50% of the total. For the full year of 2025, our live streaming revenue surged by nearly 40% year over year. Leveraging major technology exhibition in 2025, including AWE and WAIC, we stepped up our development of live streaming offerings tailored for event coverage. To address diverse market needs, we launched a low ARPU product line effectively our existing high ARPU premium commercialization content offerings. This expanded appeal of our video and live streaming offerings to more clients, particularly early-stage startups, enabling them to reach more potential users.

Furthermore, thanks to our sustained efforts in the global expansion segment in the live streaming content innovation, we achieved a breakthrough with 10 fair clients, forging important commercial partnerships and earning high recognition from the organizers with our live streaming content. At the fourth Global Digital Trade Expo, held in Hangzhou, we partnered with Hangzhou Cultural Radio and Television Group on a full event uninterrupted live streaming matrix across the five-day event. Total online attendance exceeded 2.7 million, more than 10 times the number of on-site visitors. Looking ahead, we will continue to explore new live stream formats and scenarios, building richer content scenarios in more diverse service models for users and the clients.

在产业服务商业化方面，2025年36氪与杭州钱塘新区建设投资集团有限公司关于中企国际服务中心运营服务项目及AI外向社区运营服务项目达成为期三年的合作关系，并顺利完成签约。双方合作的主要目的是通过引入36氪的专业化运营组织能力、高质量内容线上传播能力以及广泛的产业资源，帮助钱塘区构建具备自身特色的企业服务生态和运作体系，提升区域影响力。另一方面，基于36氪未来产业OpenTalk产业带计划的影响力不断扩大，我们紧扣低空经济、商业航天、先进制造、新能源、新材料等城市产业转型、未来产业落地的重点领域，吸引上下游超过200家产业内项目及政府深度建联，并形成商业合作。

Regarding industrial service commercialization in 2025, 36Kr reached a three-year strategic partnership agreement with Hangzhou Qiantang New District Construction and Investment Group Company for the Chinese Enterprise International Services Center Operations Project and the AI Panorama Community Operations Project. This collaboration will leverage our expertise in organizational operations and online content distribution, as well as our vast network of industry resources, to support Qiantang New District in building a unique service ecosystem and operational framework for corporate empowerment, amplifying its regional influence. Furthermore, building on the growing influence of 36Kr Industry Future OpenTalk in the 36Kr Industrial Belt project, we focused on key sectors driving urban industrial transformation and future industry development, including low altitude economy, commercial aerospace, advanced manufacturing, and new energy and materials. This initiative attracted more than 200 upstream and downstream industry projects and government entities, fostering deep collaborations in commercial partnerships.

除上述内容创新沉淀以及商业化突破外，二零二五年我们也在不断拓展媒体边界，持续深耕AGI基础的前端应用，进一步提升我们的内容生产和商业化效率。

Beyond these advancements across content and commercialization, we continue to expand the boundaries of media in 2025, consistently driving cutting-edge AGI applications to further optimize content production and commercialization efficiency.

在内容端，2025年也是36氪对国内AI领域高密度输出信息的一年。2025年年初，DeepSeek在国内外引起轰动。36氪是全球唯一一家两次独家专访DeepSeek创始人的科技媒体。除智能涌现、AI图谱等深度垂直图文号账号外，2025年我们发布了AI图谱、氪科技等视频账号，关注ToC端AI的人物访谈公众号未来人物实验室，青年化的科技产品线上发布会栏目X计划，与AI领域前哨人物深谈和实测的直播栏目AI局内人，聚焦AGI时代新生产力的系列研究报告。此外，我们结合WAIC等大会进行多场直播，获得行业内外关注及认可。

On the content side, we provided intensive coverage of China's AI ecosystem in 2025. At the beginning of 2025, 36Kr made headlines at home and abroad as the only tech media outlet worldwide to have exclusively interviewed DeepSeek founder twice. In addition to our deep vertical text and graphic accounts like The Emergence of Intelligence and Waves, we launched video channels such as AI Map and 36Kr Tech in 2025. The Future Human Laboratory official account focused on AI interviews for consumers. The lightweight online tech products launch series Project X, and the live streaming series AI Insider, featuring in-depth conversations and real-world testing with leading voices at the forefront of AI. We also released a series of research reports on advanced productivity in the AGI era.

Additionally, we hosted multiple live streaming sessions around major events such as WAIC, drawing strong engagement and recognition from within the industry and beyond.

除了内容端的敏锐触角，三十六氪积极将AIGC技术与自身内容生态相融合。我们在2024年下半年上线的AI新闻报道，产品底层充分结合利用大模型技术及AI算法，包括AI机器人采访、报道内容生成等。底层已接入多个大厂商大模型，包括豆包、通义千问等。2025年3月接入DeepSeek，通过最新的AI新闻报道来报道最新项目或融资企业已达到1308家。AI新闻报道帮我们提高了内容员工的效率，极大地改善了过去我们人手短缺的问题，进一步帮我们提升了我们对初创公司的覆盖度。

In addition to AI-focused content, we have actively integrated AIGC technology into our content ecosystem to enhance efficiency company-wide. Our AI meeting coverage product launched in the second half of 2024 leverages large-scale AI model technologies in the AI algorithm to produce AI-powered interviews and generate content. The underlying system incorporates multiple developers of large AI models such as Doubao and Tongyi Qianwen, among others. We also integrated DeepSeek in March 2025. In 2025, AI meeting coverage covered 1,308 companies, highlighting their latest initiatives or fundraising ventures. AI meeting coverage has meaningfully improved our content team's efficiency, substantially easing previous manpower limitations and enhancing our coverage of startups.

36氪企业资讯报于2024年10月上线，面向二级市场用户提供上市公司交易日的舆情分析事件、舆情事件分析报告，已支持七千八百多家A股和港股的上市公司订阅。用户可搜索、筛选、订阅感兴趣的上市公司，实现个性化订阅，推送日报分析内容。产品底层舆情数据由36氪与博彦科技全资子公司鸿脉聚信合作，目前累计用户数已达3.66万个，订阅用户达6,187人，并沉淀了500位核心用户社区。

We also launched the 36Kr Corporate Omni-Intelligence in October 2024, targeting investors in the secondary market by providing AI-powered daily sentiment analysis reports for public companies. The service currently covers over 7,800 public companies listed in Mainland China and Hong Kong. Users can search, filter and subscribe to reports on their preferred companies, receiving daily analysis in a personalized content format. The product's underlying sentiment data is a collaboration between 36Kr and 鸿脉聚信, a fully-owned subsidiary of Beyondsoft. Having nurtured a community of several hundred core users, currently we have a cumulative user base of 36,600, including 6,187 subscribers.

2025年底，公司上线了AI测评网，是集AI工具导航加真实用户测评内容的社区平台，主要服务于AI工具选择需求的个人及企业用户。AI测评新品板块凭借专业内容输出与优质测评服务，实现口碑与数据双提升。累计上线AI测评内容516篇，内容吸引力与用户关注度稳步攀升。

At the end of 2025, we launched our AI review hub, 36AI Dianping.com, a community platform integrating AI tool discovery and authentic user reviews. Primarily serving individual and enterprise users seeking guidance in selecting AI tools. Backed by professional content output and high-quality review services, the platform's new product AI review section gained traction in both reputation and performance. 516 AI review articles have been posted in total, with content appeal and user engagement steadily rising.

AI产品和工具的尝试，进一步验证了36氪对AI科技应用的前瞻性、敏感性和执行力。在2025年，凭借AIGC技术与内容生产行业的天然契合性，我们充分发挥AIGC技术在信息识别、文字处理和图片生成等内容创造方面的优势，实现降本增效。此外，我们不断拓宽业务边界，积极推动AI技术在多元化场景的应用。这些AI产品的推出，提升了我们对客户群的覆盖度和颗粒度，使那些过去由于带宽以及人力而无法触达到的大量公司和企业也能成为我们的客户。

Our investment of AI products and tools further underscores 36Kr's foresight, human and outstanding execution capabilities in AI. Leveraging the inherent synergies between AIGC technology and the content production industry, we maximize the AIGC technology utilization in our content production activities this year, including information identification, text processing, and image generation. Moreover, we continue to broaden our business scope by actively promoting AI applications across diverse business scenarios. The launch of these AI products has enhanced the coverage and precision of our customer outreach initiatives, connecting with a diverse spectrum of enterprises and organizations previously beyond reach due to bandwidth and manpower limitations and turning them into clients.

综上，2025年公司实现扭亏为盈，是过去两年坚持经营优化、创新发展的阶段性成果，更是我们坚守长期财务健康底线的重要开端。未来，36氪将始终把财务健康作为公司发展的核心前提，持续优化费用结构，提升经营效率，保持现金流与盈利水平的稳定。同时，我们将继续立足内容核心优势，深化内容生态建设，推动商业化多维度突破，并持续深耕AI技术的产业应用，不断拓展业务边界，将技术创新与内容价值、产业服务深度结合，赋能科技企业高质量发展，实现财务健康与创新发展的双向赋能，长效发展。

In summary, as we turned profitable in 2025, the company reached a milestone achievement after two years of sustained operational optimization and innovative development, marking the start of a long-term commitment to financial health. Looking ahead, we will consistently place financial health as a foundational core of our development, constantly optimizing cost structure and improving operating efficiency to maintain stable cash flow and profitability. Moreover, building on our core content strength, we will continue to fortify our content ecosystem by driving commercialization breakthroughs on diverse fronts and broaden our business scope by actively expanding AI applications across industries. We will deeply integrate technological innovation with our valuable content assets in the industrial services to empower high quality of growth for technology enterprises, ensuring that financial health and innovative development reinforce each other and drive growth over the long term.

With that, I will now turn the call over to our CFO, Mr. Xiang Li, who will discuss our key financial results. Please go ahead, Xiang.

Thank you. Thank you, everyone, and thank you for joining today's presentation. We will now review the second half of 2025 and the full year financial performance. Please note, all the amounts are in RMB unless otherwise stated. Our total revenue increased by 4.7% to RMB 134.8 million in the second half of 2025, from RMB 128.7 million in the same period of 2024. Total revenues for the full year of 2024 were RMB 327.9 million, compared to RMB 331.1 million in the previous year. Online advertising services revenues increased by 5% to RMB 105.2 million in the second half of 2025, from RMB 100.2 million in the same period of 2024.

The increase was primarily attributable to strong advertising demand from AI and high tech companies, which 36Kr captured through its focus on the tech vertical. For the full year of 2025, our online advertising services revenue were RMB 179.7 million, compared to RMB 180.6 million in the previous year, relatively slight year-over-year. Enterprise value-added services revenue increased by 7.7% to RMB 20.9 million in the second half of 2025, from RMB 19.4 million in the same period of 2024. For the full year of 2025, our enterprise value-added services revenue increased by 1.2% to RMB 33.2 million, from RMB 32.8 million in the previous year.

The increase was primarily attributable to more innovative marketing solutions we provide to our customers, as well as proactive sales strategies we adopt to navigate the challenging environment. Subscription services revenue were RMB 8.7 million in the second half of 2025, compared to RMB 9 million in the same period of 2024. For the full year of 2025, decreased by 14.2% to RMB 50.1 million from RMB 17.6 million in the previous year. The decrease was mainly attributable to a strategy shift in training services and a continued focus on refining this segment's customer base. Cost of revenues decreased by 12.6% to RMB 54 million in the second half of 2025, from RMB 61.8 million in the same period of 2024.

For the full year of 2025, our cost of revenue decreased by 18.8% to RMB 96.4 million in fiscal year 2025, from RMB 118.7 million in the previous year. The decrease was primarily attributable to the company's strict cost control measures. Gross profits increased by 20.8% to RMB 88.8 million in the second half of 2025, from RMB 66.9 million in the same period of 2024. Gross profit margin increased by 8 percentage points to 60% from 52% over the same period of 2024. For the full year 2025, our gross profits increased by 17.1% to RMB 131.5 million in fiscal year 2025, from RMB 112.3 million in the previous year.

Gross profit margin increased by 9.1 percentage points to 57.7% from 48.6% over fiscal year 2022-24. The increase in gross margin were mainly attributable to higher gross margin from brand advertising services offered across 36Kr digital platforms, as well as a strong rebound in revenue from these services this year. Operating expenses decreased by 10.3% to RMB 65.6 million in the second half of 2025, from RMB 73.1 million in the same period of 2024. For the full year of 2025, our operating expenses decreased by 36.1% to RMB 121.5 million from RMB 190.1 million in the previous year. The decrease was primarily due to disciplined operating expenses management.

Sales and marketing expenses were RMB 37 million in the second half of 2025, a slight decrease of 0.5% from RMB 37.2 million in the same period of 2024. For the full year 2025, our sales and the marketing expenses decreased by 19.6% to RMB 66.4 million from RMB 82.6 million in the previous year. The decrease was primarily attributable to the decrease in payroll-related expenses, travel and entertainment expenses, and the marketing and promotional expenses. General and admin expenses were RMB 22.4 million in the second half of 2025. 26.1% decrease compared to RMB 30.3 million in the same period of 2024.

For the full year 2025, our general and admin expenses decreased by 54.5% to RMB 42.4 million from RMB 93.1 million in the previous year. The decrease was largely attributable to the decrease in personnel-related expenses and the provision of allowance for credit losses. Research and development expenses were RMB 6.3 million in the second half of 2025, a decrease of 12.5% from RMB 5.6 million in the same period of 2024. For the full year 2025, our R&D expenses decreased by 11.8% to RMB 12.7 million from RMB 14.4 million in the previous year.

The decrease was primarily due to the reduction in R&D headcount following a team restructuring in prior year, partially offset by an increase in salaries and discretionary bonuses for the R&D team this year. Share-based compensation gain recognized in cost of revenues, sales and marketing expenses, and research and development expenses, as well as general and administrative expenses totaled RMB 76,200 in the second half of 2025, compared to share-based compensation gain RMB 220,000 in the same period of 2024. For the full year 2025, the total amount of share-based compensation gain were RMB 13,400 compared to RMB 180,000 of share-based compensation expenses in the previous year.

The change were mainly due to higher reversal of SBC expenses caused by strategic workforce optimization in 2024 compared to 2025. Other income were RMB 1.1 million in the second half of 2025, compared to other expenses of RMB 38.6 million in the same period of 2024. For the full year 2025, our other income were RMB 1.4 million compared to RMB 63 million of other expenses in previous year. The change reflected large long-term investment impairment losses recognized in 2024. Income tax expenses were RMB 25,000 in the second half of 2025, compared to RMB 1,000 of income tax credit in the same period of 2024. For the full year 2025, our income tax expenses decreased by 67.2% to RMB 21,000 from RMB 64,000 in the previous year. Net income.

Net income was RMB 16.2 million in the second half of 2025 compared to net loss of RMB 44.9 million in the same period of 2024. For the full year 2025, the net income was RMB 11.4 million compared to net loss of RMB 140.8 million in the previous year. The turnaround was primarily driven by the effectiveness of a company's strategic initiatives focused on cost control and the high margin business, along with the reduction in impairment loss on long-term investments. The lower provision of allowance for credit loss resulting from improved receivables collection.

Net income attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB 16.1 million in the second half of 2025, compared to net loss attributable to 36Kr Holdings Inc.'s ordinary shares of RMB 42.3 million in the same period of 2024. For the full year 2025, net income attributable to 36Kr Holdings Inc.'s ordinary shareholders were RMB 11.2 million in fiscal year 2025, compared to net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders of RMB 136.6 million in the previous years. Basic and diluted net income per ADS were both RMB 7.616 in the second half of 2025, compared to basic and diluted net loss per ADS of $19.999 in the same period of 2024.

For the full year of 2025, basic and diluted net income per ADS were $5.274 and $5.266 respectively, compared to basic and diluted net loss per ADS of $64.795 in the previous year. As of December 31st, 2025, the company has cash equivalents, restricted cash and short-term investments of RMB 116.1 million, an increase of 25.5% from RMB 92.5 million as of December 31st, 2024. Well, this concludes all our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Your first question today comes from Lingyi Zhao with the SWS Research. Please go ahead.

嗨，三十六氪的管理层大家晚上好，大家晚上好。首先非常恭喜公司这次取得了非常优质的业绩，然后包括我们也看到了像收入端、利润端都出现了非常好的这样的一个表现。那我的问题是，一就是公司如何看待未来广告收入的趋势？然后第二个就是可否也请领导给我们拆解一下公司毛利率大幅增长的原因。Hi, 36Kr management team, this is Lingqi Zhao from SWS Research.

My question is, first, congratulations about the very good results. My question is, first, how do we see the advertising sections, the trends affect advertising sections? The second question is, could you explain and analyze our margin, the growth of margin? Thank you.

好的，多谢谢你。我们是老朋友了，互相也跟公司很多年，也终于看到这个，我们应该说还是一个蛮振奋的这样的一个财报，也感谢你多年的支持。我们自己团队，我们的团队和管理层和我们的股东其实都是很开心的。然后这个我回答你的问题，对于2026年的整体的广告趋势，我们还是比较谨慎乐观的这样的一个态度。广告收入主要还是跟宏观环境有关，宏观环境目前还是比较严峻，然后广告预算应该说，整个行业并没有迎来很好的一个增长，但是我们自己还是保持一个比较谨慎乐观，是因为我们觉得看到了几个关键点吧。第一，我们的老客户保持了非常大的稳定，比如说我们的品牌客户，我们的互联网客户，都保持了比较相对比较稳定的这样的一个态势，尤其是大客户。然后我们的新客户在不断地增加，在过去的2024年、2025年，我们的新客户增加都对公司的收入提升应该说起到了很大的帮助作用。那同时我们的新产品，更加受到大家欢迎，比如说包括这种视频、这种直播，过去的增长都还是蛮好的。去年我们的直播和视频新增客户已经超过50%，然后AI的收入在持续增加，这是新的行业，包括我们的直播收入，其实在这样的一个环境下，我们增长了40%。那另外一点就是我们的年轻人群，我们突推内容，年轻化内容更加受到市场的欢迎，包括我们的后浪研究所、潮生Tide这种年轻子媒体的人气引力在不断地提高，那我们可以看到比如后浪研究所之类的这种年轻化的子媒体，它增长也是蛮好的，也是双位数的成长。

Old friend, thanks for your support for the past several years, and we are very happy for the good results we have. For your question, we are cautiously optimistic about our advertising growth trajectory for 2026. Advertising revenue was largely influenced by macroeconomic headwinds and declines in advertising budgets. Despite the macro challenges, our overall advertising revenue remained stable as we maintained solid partnerships with our internet sector key accounts and the leading brand customers. Leveraging the audience reach and influence of our subvertical media channels for younger audiences, such as Oh! Youth and Tide, as well as the new live streaming and video formats like AI Insider, we continued to develop the tailored promotion solutions and the products that gained strong client approval.

In 2025, we added over 50% new clients in our live streaming and video businesses. AI-related demand steadily increased. Live streaming revenue increased by 40%, outpacing market trends. Our subvertical media channels for younger audiences, amplified by Oh! Youth, grew by more than 50%. In 2026, we will continue to advance the live streaming development, step up our investment in content creation, explore a wider area for programs in the formats in live streaming, and continue to build depth in key content verticals that matter most to our clients, such as AI and global expansion, further enriching our content ecosystem. Meanwhile, as we empower clients across diverse industries with premium content to meet their evolving communication needs, we are confident in strengthening the resilience of our advertising business.

Well, for your second question, last year, our gross profit margin improved substantially, mainly because we focused on high-margin businesses, streamlined low-margin operations, and implemented an era of cost control initiative for the past one year. Together, this endeavors have significantly increased our gross profit margin. Yeah. Thanks for your question.

Thank you. Your next question comes from Rui Yin with Sealand Securities. Please go ahead.

Uh,

Well, this is Rui Yin from CLSA, and the question is, what are the drivers behind the growth in value-added services? Well, the growth was mainly driven by the first factor. The first one is many of our legacy IP events continued to perform well in 2025. Over the second half of the year, we successfully hosted multiple events, including the WISE, W-I-S-E, and the AI Partners Conference for all industries, the Industry Future Conference and more. Beyond these IP summits, we had by ourselves, we also cooperated with AWE, WAIC, those national summits. Well, besides, I've already mentioned in 2025, we also restructured our content strategy, business roadmap, and organizational structure for the industry services businesses.

In 2025, 36Kr upgraded to a three-year strategic partnership with Hangzhou Qiantang New Era Construction and Investment Group Company for the Chinese Enterprise International Services Center Operations Project and the AI community operations projects. This collaboration will leverage our expertise in organizational operations in the online content distribution, as well as our vast network of industry resources to support Qiantang New Era in building a unique service ecosystem in the operational framework for corporate empowerment employed by institutional influence. The second reason, like, we've talked a lot. Each time we want to start a new market, we will deploy the new content accounts. For example, our content strategy for industry services began to yield a positive outcome.

36Kr Industry Future, our all-new content channel spotlighting urban innovation, state-of-the-art technologies and our reach across emerging industries, has published nearly 90 articles over the past year. Notably, a single feature on the innovative pharmaceutical sector in Jiaxing, Zhejiang Province garnered over 70,000 page views on our official WeChat account and more than 100,000 total exposures. Moreover, building on the growing influence of 36Kr Industry Future OpenTalk in 36Kr industry belt project, we have connected with over 200 upstream and downstream companies in the local government and will continue to develop the industry service offerings to better meet client needs. Well, thank you for your question.

Thank you. As there are no further questions, I'd now like to turn the call back over to the company for closing remarks.

Well, thank you once again for joining us today. If you have further questions, please feel free to contact 36Kr Investor Relations through the contact information provided on our website.

This concludes this conference call. You may now disconnect your line. Thank you.

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s 2025 First Half Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Xin Wang, IR Manager of the company. Please go ahead, Xin.

Thank you very much. Hello, everyone, and welcome to 36Kr Holdings First Half 2025 Earnings Conference Call. The company's financial and operational results were released earlier today and they have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Mr. Xiang Li. Mr. Feng will start the call by providing an overview of the company and the performance highlights of the first half in Chinese, followed by an English interpretation. Mr. Li will then provide details on the company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's perspective in other public filings as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please note that 36Kr's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB. I will now turn the call over to our Chairman and CEO, Mr. Dagang Feng. Please go ahead.

[Foreign Language] [Interpreted] Thank you. Hello, everyone. Thank you for joining our first half 2025 earnings conference call. [Foreign Language] [Interpreted] Over the past 2 years, we have consistently upgraded our organizational structure, optimize expenses and improved operating efficiency. In the first half of 2025, our gross profit increased by 10% year-over-year. Operating expenses decreased by more than CNY 60 million from the same period last year, down 52% year-over-year. We narrowed our net loss by more than CNY 90 million, an impressive 95% improvement year-over-year, while our cash results remained stable following the company's solid business operations. [Foreign Language] [Interpreted] These operational achievements were largely driven by our ongoing efforts in content innovation, commercialization breakthroughs in technological applications which together optimize our organizational structure and improve the workforce efficiency. Let me walk you through our business progress in those three areas. [Foreign Language] [Interpreted] First, content. We consistently fortified on our content ecosystem in 2025, leveraging our peerless content creation promise to steadily expand our influence. In terms of a content dissemination network, we expanded our footprint across diverse channels, crossing a comprehensive circulation metrics encompassing major new media platforms like Weibo, Xiaohongshu, Toutiao, Zhihu, Bilibili, Douyin, and Kuaishou among others. Broad channel exposure brings us wider overall dissemination and higher visibility for our premium content. Our consistent production of high-quality content also broadened in the diversified user demographics, further elevating user engagement and the stickiness. As of the first half of 2025, we had over 36.57 million followers marking 17 consecutive quarters of growth. [Foreign Language] [Interpreted] We explored a growing area of content format throughout the first half of 2025 including text with graphics, short- and long-form video, audio and a live streaming, enriching our content offering with a greater diversity of styles. For text and graphics, we continue to create a high-quality content on multiple fronts while maintaining our existing content metrics. Leading our flagship channels, including 36Kr and the 36Kr Pro, we continuously broaden our reach in some verticals actively expanding high-quality content specific accounts like the emergence of intelligence, 36Kr auto, future consumption, 36Kr games, waves and 36Kr finance among others. This accounts enriched our metrics with both broad content coverage and deep expertise in specialized domains, providing users with invaluable insights into industry trends and the evolving business dynamics. At the same time, we continued to tailor content experiences for younger generations with our Youth and TIDE subvertical media channels. Greatly extending our content reach by successfully engaging younger audiences. At the start of 2025, we rolled out 36Kr industry future and all new content channel, spotlighting, urban innovation and the state-of-the-art technologies building our influence in the emerging industries. Within 6 months, we released over 60 -- more than 60 articles, including a notable feature on the innovative pharmaceutical sector in [indiscernible], which garnered over 70,000 page views on our official WeChat accounts and more than 100,000 total exposures. To date, our accounts cover artificial intelligence, global expansion, advanced manufacturing, digitalization, dual carbon and ESG, hard core technology, consumer life science and much more comprising a thriving content ecosystem. In the first half of 2025 under 36Kr of Visual Accounts alone, the 339 of our articles achieved over 100,000 page views. Meanwhile, WAVES followers expanded by 44% year-over-year. [Foreign Language] [Interpreted] In terms of a short video, our exceptional content creation capabilities earned us widespread visibility in the rate. Our video followers exceeded 9.52 million at the end of the first half of 2025. Our retail channels of followers surged by 69% year-over-year. Following the debut of 36Kr tech on Douyin in 2025, we released the blockbuster videos such as AI Confident and AI Creator. In addition, our video undercover multiple host live garnered over 10 million views on Xiaohongshu, Douyin, WeChat channels, [indiscernible]. [Foreign Language] [Interpreted] For live streaming, this year, we optimized our resources with a streamlined team in fully leveraged WeChat channels to cultivate an area of content-specific accounts, including the big deal global expansion, Golden Shovel and 36Kr CEO tips. We also unveiled AI Insider and episode targeting AI entrepreneurs and independent developers. During this year's World Artificial Intelligence Conference in July, 36Kr served as a special supporting media partner, offering full spectrum content coverage and multidimensional reporting. Our super live streaming channel jointly initiated by WAIC Organizing Committee and 36Kr provided professional cutting-edge of high-quality live streaming content that brought together leading ones in AI, focusing on scenario and application-driven insights. The live streaming -- the live stream combines for all conference reporting, expert panels, cutting-edge technology insights, future trend forecast and tech product groups, garnering 50.2 million total views while engaging 1.17 million viewers across the 36Kr live stream metrics. Moreover, at the Appliance and Electronics World Expo 2025 organized by the China Household Electrical Appliances Association, 36Kr launched its first robust themed exhibition, Future Plus in partnership with 5 robotics companies, showcasing the immense potential upside of embedded artificial intelligence in home appliances and home settings. With this exhibition, the 36Kr retail channels live stream grew 175,000 live views and 151,000 likes in a single session, while our Omni Channel live streaming garnered over 1.04 million views in total, racking up over 80 million views across diverse platforms. [Foreign Language] [Interpreted] In terms of the event IP, we successfully hosted WAVES in the first half of 2025, co-hosted by HI Camp and Hangzhou Liangzhu New Town Management Committee. This year's WAVES centered on the new era for venture capital. At both investor and entrepreneur sessions, founders of emerging companies, innovative young scientists and creators gathered with top-tier investors to discuss leading-edge topics, including AI breakthroughs, globalizations and value reassessment, sharing insights into their business aspirations and the perspectives on the future. This year's WAVES event amassed over 150 million views. In addition, on April 18, 2025, 36Kr hosted the 2025 AI Partner Summit at Modu Space Shanghai. Under the theme, here comes the Super App, the event highlighted the disruptive impact of AI super applications across diverse industries, delving into how AI innovations are redefining business logic and reshaping industry landscapes and exploring AI super apps limitless possibilities. We invited executives from AMD, Baidu, Qihoo, Qualcomm, Goofish, Dahua Technology, TAL Education, Chu Wang group, and The Best Brand to explore trending topics such as industry AI adoption, AI computing power, AI search, AI-powered imaging and breakthroughs in AI education. Our 2024 AI Partner Summit garnered over 130 million views. [Foreign Language] [Interpreted] Next, commercialization. In the first half of 2025, our deep expertise in innovation in content and IP sparked continuous commercialization breakthroughs, including client structure optimization, stronger commercialization of subvertical media channels for younger audiences, new momentum in live streaming and video revenue and meaningful progress in industrial service commercialization. [Foreign Language] [Interpreted] In terms of client structure optimization, our enriched content ecosystem and diverse content distribution channels empowered us to consistently expand our portfolio of services and products, consistently enhancing our commercialization capabilities. Within our -- within our Internet client portfolio, the AI and the large language model segments continue to gain momentum, driving an increasing share of revenue. Revenue directly generated by our Internet clients increased by 52% year-over-year. Revenue from the FMCG segment grew by 27% year-over-year as multiple brand clients acquired last year repurchased our offerings in the first half of 2025. [Foreign Language] [Interpreted] Regarding the commercialization of the subvertical media channels for younger audiences, revenue from these channels like [indiscernible] and TIDE increased by 30% year-over-year, with brand clients spending doubling year-over-year, up an impressive 1% to 2%, reflecting sustained brand recognition of our 2C content. [Foreign Language] [Interpreted] As for live streaming and video commercialization, leveraging major technology exhibitions in 2025, including AWE and WAIC, we stepped up our development of live streaming offerings tailored for event coverage. To address diverse market needs, we launched a low ARPU product line, effectively complementing our existing high ARPU premium commercialization content offerings. This expanded the appeal of our video and live streaming offerings to more clients, particularly early-stage start-ups, enabling them to reach more potential users. Furthermore, thanks to our sustained efforts in the global expansion segment in the live streaming content innovation, we achieved a breakthrough with Canton Fair clients, forging important commercial partnerships in earning high recognition from the organizers with our live streaming content. Looking ahead, we will continue to explore a new live stream formats and scenarios, delighting both our users and clients with richer content scenarios in a more diverse service model. [Foreign Language] [Interpreted] Regarding industrial service commercialization, global expansion is a core priority within this segment. At the beginning of 2025, 36Kr signed an agreement to enter a strategic partnership with Hangzhou Tiantang New Era Construction and the Investment Group Company for the Chinese Enterprise International Service Center operations project. This collaboration will leverage our expertise in organizational operations in online content distribution as well as our vast network of global expansion resources to support Tiantang area to be in building a unique service ecosystem and operational framework for corporate global expansion. This initiative aims to create a powerful brand for Tiantang new era, amplifying its international influence and its ability to empower Chinese enterprises to go global. In the first half of 2025, we hosted a total of 11 events on global expansion, continuously supporting our clients' global ambitions. Furthermore, building on the growing influence of the 36Kr industry future, we focused on key sectors driving urban industrial transformation and the future industry development, including low altitude economy, commercial aerospace, advanced manufacturing and new energy and materials. This initiative attracted more than 200 upstream and downstream industry projects in the government entities, fostering deep collaborations in the commercial partnerships. [Foreign Language] [Interpreted] Beyond these advancements across content and commercialization, we continue to expand the boundaries in 2025, consistently driving cutting-edge EDI applications to further optimize content production and commercialization efficiency. [Foreign Language] [Interpreted] On the content side, we provided an intensive coverage of China's AI ecosystem in 2025. At the beginning of 2025, 36Kr made headlines at home and abroad as only tech media outlets worldwide to have exclusively interviewed DeepSeek's founder twice. This inspired the launch of our disruptors program in the first quarter, leveraging our deep roots and expertise in venture-focused media. We crafted a practical communication road map for Chinese tech companies advancing towards brand globalization. In addition to our context -- in addition to our text and a graphic account, the emergence of intelligence, we launched video channels such as AI Map and 36Kr tech in 2025, delighting users with multiple blockbuster videos. Furthermore, along with the launch of our new live streaming series, AI Insider, we hosted multiple live streaming sessions around major events such as WAIC, joining strong engagement and recognition from within the industry and beyond. [Foreign Language] [Interpreted] In addition to AI-focused content, we have actively integrated AI technology in our content ecosystem to enhance efficiency company-wide. Our AI meeting corporate product launched in the second half of 2024, leverages large-scale AI model technologies in AI algorithm to produce AI-powered interviews and generate content. The underlying system incorporates multiple developers of large AI models such as Doubao and Tongyi Tianwen. Among others, we also integrated the DeepSeek in March 2025. To date, AI meeting coverage has covered 993 companies, highlighting their latest initiatives in fundraising ventures. AI meeting coverage has meaningfully improved our content team's efficiency, substantially easing previous manpower limitations and enhancing our coverage of start-ups. [Foreign Language] [Interpreted] In addition, we launched the 36Kr corporate Omni intelligence in October 2024, targeting investors in the secondary market by providing AI-powered daily sentiment analysis reports for public companies. The service currently covers over 7,800 public companies listed in Mainland China and Hong Kong. Users can search, filter and subscribe to reports on their preferred companies, receiving daily analysis in a personalized content format. The product's underlying sentiment data is a collaboration between 36Kr and Soften, a fully owned subsidiary of Beyondsoft. Having nurtured a community of several hundred core users, currently, we have a cumulative user base of 25,000, including 4,220 subscribers. [Foreign Language] [Interpreted] In the first half of 2025, as Doubao's exclusive technology and finance media partner, we launched the Doubao AI agent. Since its launch, we have achieved a consistent 10% weekly increase in user interactions. Furthermore, we plan to roll out user review and discovery platform for AI tools in the second half of the year, integrating AI product guidance, real user reviews and community engagement. This platform will assist both individuals and the businesses in identifying the ideal AI tools, all while facilitating user experience sharing. [Foreign Language] [Interpreted] Our advancement of AI products and tools further underscores the 36Kr's foresight acumen and outstanding execution capabilities in AI, leveraging the inherent synergies between AIGC technology and the content production industry, we maximized AIGC technology utilization in our content production activities this year, including information identification, text processing and image generation. Moreover, we continue to broaden our business scope by actively promoting AI applications across diverse business scenarios. By introducing diverse AI products, we enhanced the coverage in the precision as of our customer outreach initiatives, connecting with a diverse spectrum of enterprises and organizations previously beyond reach due to the bandwidth and manpower limitations and turning them into clients. [Foreign Language] [Interpreted] In summary, 36Kr comprehensively improved its operating efficiency throughout 2025, thanks to our peerless content creation prowess, robust IP assets, deeply engaged users and the commercialization breakthroughs. Looking ahead to the second half of 2025, we will continue to hone our competitive edge in content creation, broaden the reach of our products and the service offerings and further harness AI technology to empower high-quality development among new economy stakeholders. With that, I will now turn the call over to our CFO, Mr. Xiang Li, who will discuss our key financial results. Please go ahead, Xiang.

Thank you. Thank you for joining today's presentation. We will now review the first half of 2025 financial performance. Please note that all amounts are in RMB unless otherwise stated. Total revenue were CNY 93.2 million in the first half of 2025 compared to CNY 102.4 million in the same period last year. Online advertising services revenue was CNY 74.5 million in the first half of 2025 compared to CNY 80.4 million in the same period last year. The decrease was primarily due to the advertisers adjusting their advertising and promotion strategies in response to macro pressures and to a lesser extent for ongoing optimization of our customer structure to control credit risk, which lead to decreased revenue scope. Enterprise value-added services revenue were CNY 12.2 million in the first half of 2025 compared to CNY 13.4 million in the same period last year. The decrease was primarily due to our proactive and ongoing refinement of service offering to strategically focus on margin improvement. Subscription services revenue were CNY 6.4 million in the first half of 2025 compared to CNY 8.6 million in the same period last year. The decrease was primarily due to the change in our training services business model. Cost of revenue decreased by 25% to CNY 42.5 million from CNY 56.9 million in the same period of 2024 as a result of the company's strict cost control measures. Gross margin increased by 11% to CNY 50.7 million from CNY 45.5 million in the same period of 2024. Gross profit margin was 54.4% in the first half of 2025, representing an increase of 10% from 44.4% in the same period of 2024. The increase in gross margin were primarily driven by savings in payroll-related costs following the strategic workforce optimization. Operating expenses decreased by 52.3% to CNY 55.9 million from CNY 117 million in the same period of 2024. The decrease was primarily attributable to strategic cost management actions, including target workforce reductions and streamlined noncore spending. Sales and marketing expenses were CNY 29.4 million in the first half of 2025, a decrease of 35.1% from CNY 45.4 million in the same period last year. The decrease was primarily attributable to the decrease in payroll-related expenses, rental expenses, marketing and promotion expenses and travel and entertainment expenses. General and admin expenses were CNY 20 million in the first half of 2025, a decrease of 68.2% from CNY 52.8 million in the same period last year. The decrease was primarily attributable to the decrease in the allowance for doubtful accounts payroll-related expenses. Research and development expenses were CNY 6.4 million in the first half of 2025, a decrease of 27.1% from CNY 8.8 million in the same period last year. The decrease was primarily due to the decrease in average compensation level for our research and development personnel as we restructured our R&D team. Share-based compensation expenses recognized in cost of revenue, sales and marketing expenses, research and development expenses as well as general and admin expenses totaled CNY 90,000 in the first half of 2025 compared to CNY 50,000 in the same period last year. Other income was CNY 0.4 million in the first half of 2025 compared to CNY 24.3 million of other expenses in the same period last year. The change was mainly due to the decrease in long-term investment loss. Income tax credit was CNY 4,000 in the first half of 2025 compared to CNY 70,000 of income tax expenses in the same period last year. Net loss was CNY 4.8 million in the first half of 2025 compared to net loss of CNY 95.9 million in the same period last year. Non-GAAP adjusted net loss were CNY 4.7 million in the first half of 2025 compared to non-GAAP adjusted net loss of CNY 95.9 million in the same period last year. Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders was CNY 5 million in the first half of 2025 compared to net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders of CNY 94.4 million in the same period last year. Basic and diluted net loss per ADS were both CNY 2.307 in the first half of 2025 compared to CNY 44.859 in the same period last year. As of June 30, 2025, the company had cash, cash equivalents and short-term investments of CNY 75.1 million. Well, this concludes all our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

[Operator Instructions] Your first question comes from Yong Zhang from SWS Research.

[Foreign Language] [Interpreted] I will translate the question in English. We noted that the company's financial performance has achieved a significant improvement in the first half of 2025. And I would like to ask, firstly, how did the company achieve this financial turnaround? And secondly, what's the company's full year financial outlook for 2025?

[Foreign Language] [Interpreted] First of all -- first off, through sustained operational efforts over the past 2 years, we have implemented a series of cost reduction and efficiency boosting measures. This include relocating to an office building with lower rent cost, streamlined our tech and R&D teams, adjusting unprofitable businesses, improving workforce efficiency in core operations and upgrading our organizational structure. As a result, operating expenses decreased by more than CNY 60 million year-over-year, and net loss was narrowed by more than CNY 90 million. [Foreign Language] [Interpreted] While second, our gross profit margin rebounded to over 50% in the first half of this year. This was primarily driven by adjustments to our customers and businesses, coupled with stricter cost controls. Over the past 6 months, we optimized our product portfolio and client structure. Additionally, we implemented more rigorous project approval standards internally to enhance cost management. [Foreign Language] [Interpreted] Well, for the first half of this year, the company will continue to improve its content creation capabilities and optimize our product metrics, focusing on achieving profitability, and we predict that we will have profits at the end of 2025. That all answer for this question.

Your next question comes from Rui Yin from Sealand Securities.

[Foreign Language] [Interpreted] Well, thank you for your question, and I will interpret it for you. Well, there are two questions. The first question is, could management share the future plan for your new initiative of industrial service business?

[Foreign Language] [Interpreted] Well, first off, we have already hosted and will continue to host many of our IP events in 2025. We have a series of events scheduled for the second half of the year, including [indiscernible], the AI Partner Conference for all industries, the industrial future conference and more. Beyond this IP summit in 2025, we also restructured our content layout business strategy and organizational structure for the industrial service business. While these adjustments are beginning to yield positive outcomes, 36Kr industry future, our new -- all new content channels spotlighting urban innovation, our state-of-the-art technologies and our reach across emerging industries have published over 60 articles within the past 6 months. While a lot of the articles of 36Kr industry future garnered and unmatched a lot of page views on our official WeChat accounts. While leveraging our content influence, we have connected with over 200 upstream and downstream companies in the local government. [Foreign Language] [Interpreted] Moreover, we will continue to expand our overseas ventures, sustaining our strong globalization momentum from 2024. In addition to Southeast Asia, Japan, the Middle East and Europe, we will further strengthen our global network and collaborate with the China Council for the promotion of International Trade Beijing Subcouncil to tap into additional resources from Beijing-based service providers specializing in global expansion-related solutions and identify enterprises seeking global expansion. At the beginning of this year, we made our first foray into operating a local government's global expansion service center in our capacity as a media entity, partnering with Hangzhou Tiantang New Era Construction and Investment Group company on the Chinese Enterprise International Service Center Operations project. In the first half of 2025, we hosted a total of 11 events on global expansion. [Foreign Language] [Interpreted] As our business adjustments are implemented in the second half of the year, our industrial services had 4 new commercial opportunities with optimized offerings that are more sustained and profitable. Well, the second question from Sealand in Ray is, how does the company position itself in generative AI across content and product offerings? [Foreign Language] [Interpreted] Before DeepSeek gained widespread attention, we were the only tech media outlet worldwide to have exclusively interviewed DeepSeek founder Liang Wenfeng twice. Building our existing influence in the AI field in 2025 on the content side, we launched 36Kr tech on Douyin and our new live streaming series, AI Insider as a supplement to our graphic and text content. This initiative delivered multiple blockbuster videos shortly after the debut. In the second half of 2025, we will also launch the future human laboratory graphic account to document ordinary people's real-world interactions with AI and exploring their experiences and the challenges using AI tools. [Foreign Language] [Interpreted] As I just mentioned, we've made good progress this year on several AI products. To date, AI meeting coverage has covered nearly 1,000 companies, highlighting their latest initiatives in fundraising ventures. 36Kr corporate Omni Intelligence currently covers over 7,800 public companies listed in Mainland China and Hong Kong with a cumulative user base of 25,000, including 4,220 subscribers. In the first half of 2025, as Doubao's exclusive technology and finance media partner, we launched our Doubao AI agent. achieving a consistent 10% weekly increase in user interaction following this launch. Well, furthermore, we plan to roll out a user review and discovery platform for AI tools in the second half of this year, integrating AI product guidance, real user reviews in the community space for experiencing sharing. This platform will assist both individuals and businesses in identifying the ideal AI tools for their needs. [Foreign Language] [Interpreted] While in 2025, we will continue to develop our AI content ecosystem, maintaining our edge in covering the latest AI trains in consistently delighting users with premium content associated with AIGC technology. We will also further integrate AIGC technology with content production to unlock new avenues for success. Well, that's all answer for your two questions. Thank you for your question.

As there are no further questions, I'd now like to turn the call back over to the company for closing remarks.

Yes, please say the closing remarks.

This concludes the conference call. You may now disconnect your lines. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Ladies and gentlemen, thank you for standing by for 36Kr Holdings, Inc, second half and fiscal year 2024 earnings conference call. At this time, all participants are in listen only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I'll now turn the call over to your host, Shin Wang, IR, Manager of the Company. Please go ahead, Shin.

Thank you very much. Hello everyone, and welcome to 36 Kr, holding the second half and the fiscal year 2024 earnings conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com participants on today's call will include our Chairman and CEO, Mr. Dagang Feng and our Chief Financial Officer, Mr. Xiang Li, Mr. Feng will start the call by providing an overview of the company in the performance highlights for the second half in the full year in Chinese, followed by an English interpretation. Mr. Lee will then provide details on the company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward looking statements made under the safe harbor provisions of the US private security litigation reform act of 1995 forward looking statements involving hearing the risks in uncertainties as such, the company's results may be materially different from the views expressed today. Further information regarding in other risks, in uncertainty included in the company's perspectives in other public filings, as filed with us. Sec, the company does not assume any obligation to update any forward looking statements, except as required under our law. Please note that 36 Kr's earnings press release in this conference call include discussion of unaudited GAAP financial measures as well as unaudited non GAAP financial measures. 36 Kr's earnings. Press release contains a reconciliation of the unaudited non GAAP measures to its unaudited gap measures. And please note that all amounts are in RMB. I will now turn the call over to your coaching. And the CEO, Mr. Dagang Feng please go ahead.

Thank you. Hello everyone. Thank you for joining our second half in the fiscal year 2024 earnings conference call. 2024 marked a year of comprehensive operating efficiency improvements for 36 Kr, notably, our operating expenses in the second half of 2024 decreased by 50% compared to the same period for 2023 our total operating expenses as a percentage of the total revenue decreased by 17% percentage in the second half of 2024 compared to the second half of 2023 while our gross profit margin remained about 50% for the second half of 2024 as a result, we vastly narrowed our operating losses, while cash reserves remain essentially stable, establishing a resilient framework to support companies long term, solid business operations. This operational achievements were primarily driven by our business structure in the workforce efficiency improvements throughout the year, we also consistently fortified our content ecosystem in 2024 leveraging our peerless content creation promise in comprehensive marketing offerings, we continued to optimize our advertising operations while broadening our media reach. We embraced the emerging global expansion trends and remained focused on AGI innovation, further accelerating our implementation of the AI across real world scenarios. This efforts gives significant progress in both our global expansion and the AI application. Let's a closer look at companies development from two key perspectives, first, our existing business, and second, our growth initiatives. For existing business. I will start with an update on our content influence in commercialization. In terms of content ecosystem development, we continue to create high quality content on multiple fronts, while maintaining our existing content metrics, building our flagship channels, including 36 Kr in the 36 Kr Pro. We broadened our reach in sub verticals, actively expanding high quality content specific accounts like the emergence of intelligence, 36 Kr auto, future consumption, 36 Kr games, weights in, 36 Kr finance, among others, this account made our metrics more comprehensive by adding both broad content coverage and deep expertise in specialized domains to provide users with invaluable insights into industry trends, in evolving business dynamics. At the same time, we continue to tailor content experiences for younger generations by loving by launching our OE in tight, sub vertical media channels featuring a broad content metrics of text in the graphics, comics and customized videos, the channels successfully engage the younger audiences, greatly extending our contents reach. In August 2024 we officially launched a new content specific account, 36 Kr games dedicated to exploring gaming products, technology, business value in cultural stories. We utilize a wide range mix of text, graphics, like streaming and we do formats to capture the vigorous development of the gaming sector and engage its dynamic audience. To date, our accounts cover advanced manufacturing, digitalization, dual carbon in ESG, hardcore technology, highly specialized in innovative enterprises, consumer life science, in much more, fostering a thriving content ecosystem. In 2024 our editorial team published 8090 articles through content specific accounts of which 2465 were original gathering over 220 million page views, more than 241,000 comments in the 5.263 million shares, notably on the 36 Kr official account alone 757 of our articles achieved over 100,000 page views Moving on to our content dissemination network, we said we expanded our footprint across diverse channels, crossing a comprehensive circulation metrics in compassing, major new medium platforms like Weibo, red note, total, Juhu, Billy Doug show, among others. Broad channel exposure brings us wider overall dissemination and higher visibility for. Our premium content, our consistent production of high quality content, expanded and diversified our user demographics, further elevating user engagement in the thickness as of the aims of 2024 we had over 35.9 million followers, marking 16 consecutive quarters of growth. We explored the growing areas for content format throughout 2024 including text, graphics, short and a long form, reviews, audio in your live streaming and reaching our content offerings with a greater diversity of styles in terms of a short review, our exceptional content creation capabilities earn as widespread visibility in the rate for reviews from users. Our video followers exceeded nine.31, million by the end of 2024 including a significant 2.47 million or billion alone up by 10% a year over year. Our beach channels forward followers searched by 58% year over year. Our short video business continue to excel with its contribution to advertising revenue consistently on the rise. The long form video segment, we collaborated with popular short form video platforms though, in to launch a new season about a late talk show series foreseeing 2034 in the second quarter. We made notable strides in content creation and a channel distribution through this robust partnership, the debut episode before seeing 2034 featuring new founder, William Lee, being delved into upcoming shifts in the New Energy vehicle sector garnering widespread interest in The racking up over 84 million views across various platforms. For last streaming this year, we optimized our resources with a streamlined team in the fully leveraged WeChat channels to cultivate an area for content specific accounts, including 36 Kr Pro Plus global expansion golden shovel and 36 Kr CEO tips. This effort not only significantly elevated our live streaming content influence, but also developed commercial convergence and supplemented our low output offerings. We hosted the 272 live streaming sessions in 2024 addressing a diverse spectrum of training topics, including AI, large models in Chinese brands, global expansion. Additionally, we launched our first e commerce live streaming in late 2024 our debut episode featured 3038, tech products and garnered over 1.6 3 million views with a live audience of 289,000 notably the 36 Kr live streaming channel ranks the number one, although in the smart device category later board during the same same time period as live streaming. What's more, for the full year, our live streaming revenue surged by 68.5% year over years. Moving forward, we will continue to explore new live stream formats in scenarios, delighting both our users in clients with richer content scenarios in the more diverse service models. Now let's turn to enterprise value added services. In 2024 we achieved a substantial success with the launch of a major event, IP advanced productivity. AI partner submit, in collaboration with industry giants like Alibaba, by Duke, Lenovo and Intel, we delved into the latest trends in AI application, sharing insights on both opportunities and challenges gleaned from day to day, business operations. This summit attracted an impressive 100 million plus views, sparking extensive industry buzz. Additionally, we held our highly anticipated signature it event, the white 2024 business kings conference in November. 2024 the Submit focused on 11 trading industry verticals in the future, the two regional sub forums, the wise 2024 continuing to think globalization. Sub forum, Shenzhen and the wise 2024 always with you. Future consumption conference, Beijing. The event brought together more than 200 Chinese business leaders in the elites representing a wide area of industries, including the Tai Fu, CEO of 01 AI and the chairman of the Innovation Ventures. Wei Bing, partner in the president of the Xiaomi group, Dai Wei, Senior Vice President of group jacking Dong, Vice President of Weibo in year, CEO of the BG, BCI group in John con, CEO of jupy, sharing visionary insights into the future for China. China's business advancement. A wide 2024 business games conference attracted over 850 million total views In addition to offline events, we continue to make straight in our consulting services and other enterprise value added a service offering to this year, for instance, 36 Kr Research Institute delved into key sectors appointed for disruptive growth with significant upside potential, such as global expansion, embodied artificial intelligence, low altitude economy and artificial intelligence, among others, Their in depth analysis considered the factors like policy, guidance, funding, activity, market demand, industry, chain, structure, competitive landscape, business model and development trends in 2024 followers of 36 Kr research institutes increased by over 11% while workforce productivity ratio significantly improved on the commercialization front, we strengthened our foundation in industry research, in the strategy for market planning, while expanding into due diligence, branding, consulting in other services. To various efforts I just described have also contributed to client structure optimization, our enrich the content ecosystem and diverse content distribution channels empowered us to consistently expand our portfolios of services and the products this year, enhancing our commercialization capabilities. This has enabled us to expand our outreach to clients in emerging sectors. Like New Energy vehicles in the luxury food consumption, while actively broadening partnerships with legacy brands in traditional industries like a apparel and food Physically coordinated initiatives meaningfully benefited already existing business through increased productivity, optimize the business in the client structures and enhance the sustainability of revenue streams. Going forward, we will continue to expand the boundaries of the median explore new products in the business models for global expansion to drive revenue growth in advanced AGI applications to further optimize content production and commercialization efficiency. Turning now to our growth initiatives in 2024 global expansion emerged as a crucial opportunity that no Chinese company could afford to meet, and 36 Kr is no exception. 36 Kr has already established a solid presence in Japan through 36 Kr Japan in Southeast Asia, while Croatia, building on years of extensive efforts by its overseas teams, 36 Kr has cultivated significant ties with foreign governments, major industry players, startups in capital ecosystems and matching a wealth of success stories and experiences in facilitating global business expansion. For years, we have been providing media services in the marketing support to Chinese companies overseas, while our international teams have been helping foreign institutions and enterprises tap into business opportunities in China. On the content front, we have extensively covered globalization success stories of leading Chinese companies such as Minnesota, novel, APR e propulsion, nationality, digital, animal rich, keeping a close my eye on the global expansion dynamics of Chinese enterprises. On global expansion we launched that this expansion, we launched the 36 Kr European Central Station in 2024 currently 36 Kr Europe mainly features new operational startups from the 36 Kr ecosystem, along with our regional content, such as a quarter passage, equipping open stakeholders with timely and comprehensive information on Chinese businesses. This initiative enables 36 Kr Europe users to access the same information at the same time as those in China. Additionally, 36 Kr Europe leverages AIG technology to empower its content ecosystem, notably improving productivity while lowering content creation cost. It currently supports browsing English domain, German in the Chinese, with plans to add more languages in country specific channels. To maximize the synergy of domestic resources in December 2024 26 KR initiated and launched the Beijing International Chamber of Commerce global expansion Service Committee, under guidance for China console for the Promo. Question of international trade, Beijing sub Council 2026, leading institutions have joined the committee, including LinkedIn, China, China Mobile, international, KPMG and financial. The committee brings together Beijing's top industry and professional service providers specializing in global expansion related solutions to help local businesses expand into global markets, aiming to gradually enhance the international competitiveness of the Beijing based companies. Moving on to commercialization beginning of the beginning of 2025 36 Kr signed a an agreement to enter strategic partnership with Hangzhou Tian new area reconstruction and Investment Group company for the Chinese enterprise International Services Center Operations project. This collaboration will leverage our expertise in organizational operations, in the online content distribution, as well as our vast network of global expansion resources to support Tian tau new area in building a unique service ecosystem in the operational framework for cooperative global expansion. This initiative seeks to create a powerful brand 14 pound new area in the amplify its international influence to empower Chinese enterprises, to expand globally. Moving forward, 36 Kr will remain committed to expanding into integrating cooperative resources for storing synergy within an extensive Global Partnership ecosystem. This will enable us to better serve Chinese businesses and institutions in their international ventures, empowering Chinese businesses global expansion while driving 36 Kr's revenue growth. In addition to exploring global expansion offerings, we continue to focus on artificial intelligence depending our innovative AGI applications to further optimize content production and commercialization efficiency. We also provided intensive coverage of China's AI ecosystem throughout 2024 we are the only tech media outlet worldwide to have exclusively interviewed the deep six founder twice for our first in the industry reports on topics like six AI Tigers face the exit from a pre training In the GPU leasing dilemma for AI computing centers to tracking and swiftly capturing the latest AI developments of attack giants like Alibaba by dance in Xiaomi, our coverage of China's AI community is both broad and deep and qualified by our network's extensive reach In addition to our broad concentrate in the king insights, we have actively integrated AI GC technology into our content ecosystem to enhance efficiency company wide. In 2024 we launched an area of AI powered tools, including AI text to image, AI Bab and AI financial report interpretation, as well as AI meeting coverage, which fully elaborate. Is a large scale AI model technologies in the AI algorithm to produce AI powered interviews in a generated content. The underlying system currently incorporates multiple developers, large AI models such as Seoul Bao and Tony Jian. The models and we integrated Deep State in February 2025, AI meeting coverage has covered over 330 companies since its launch, highlighting their latest initiatives were found raising dangers. In addition, we launched the 36 Kr cooperate only intelligence in October 2024 targeting stock market investors by providing daily sentiment analysis reports for public companies. The Service currently covers over 7800 public companies listed in mainland China and Hong Kong, users can search filter and subscribe to reports on their preferred companies receiving data analysis in a personalized content format. The products underlying sentiment data is a collaboration between 36 Kr in Stockton, a fully owned subsidiary of a beyond soft. Currently, subscriptions for this daily report total 303 124 with a cumulative user base of 600 more than 600. Our [indiscernible] further underscores the 36 Kr's or full size acumen and outstanding execution capabilities in AI, leveraging the inherent synergies between aigc technology in the content production industry, we maximize the aigc technology utilization in our content production activities this year, including information identification, text processing and image generation. Moreover, we continued to broaden our business scope by actively promoting AI application across diverse business scenarios. For example, we partnered with, partners with, since time, to jointly launch AI financial report interpretation services by introducing diverse AI products, we broadened the purview in the precision of our customer outreach initiatives, effectively connecting with a diverse spectrum of enterprises in the organizations previously beyond reach due to resource intensive workloads in the manpower limitations In summary 36 Kr comprehensively improved its operating efficiency throughout 2024 thanks to our peerless content creation process, robust IPS assets, deeply engaged users, refined the customer structure in the Diversified product in the service lineup, looking ahead to g20 25 as a prominent brand in the pioneering platform supporting new economy enterprises, we are pointed to hone on competitive edge in content creation, broaden the reach of our products in the service offerings, and further harness AI technology To empower high quality development among New Economy stakeholders. With that, I will now turn the call over to our CFO, Mr. Xiang Li who will discuss our financial results.

Thank you for joining or today's conference call, we will now review the second half. Of 2024 and the full year financial performance. Please note that all amount are in RMB, unless otherwise stated, the company's total revenue were 128.7 million in the second half of 2024 compared to 200.3 million in the same period of 2023 the total revenue for the full year of 2024 were 231.1 million, compared to 340.2 million in the previous year. Online advertising services revenue were 100.2 million in the second half of 2024 compared to 139.8 million in the same period of 2023 for the full year of 2024 or online advertising services revenue were 180.6 million, compared to 238.7 million in the previous year. The decrease was primarily due to the reduction in advertising spending by advertisers from certain industry and ongoing elimination of underperforming customers as a proactive measure to reduce credit risk, enterprise value added services revenue were 19.4 million in the second half of 2024 compared to 40.5 million in the same period of 2023 for the full year of 2024 for enterprise value added services revenue were 32.8 million, compared to 67.3 million in the previous year. The decrease was mainly due to a strategic degree focusing on the core high marketing business through the optimization of underperforming Regional Operations, subscription services revenue were 9 million in the second half of 2024 compared to 20 million in the same period of 2023 for the full year of 2024 or subscription services revenue were 17.6 million compared to 34.2 million in the previous year. The decrease was mainly due to the strategically transition in the business model for training services. Cost offered revenue was 61.8 million in the second half of 2024 compared to 88.1 million in the same period of 2023 for the full year of 2024 or cost of revenue, was 180.7 million, compared to 158.2 million in this in the previous year, the decrease was primarily attributable to the to a decrease in operating costs resulting from or improve the efficiency. Gross profit was 66.9 million in the second half of 2024 compared to 112.2 million in the same period of 2023 gross margin was 52% in the second half of 2024 compared to 56% in the same period of 2023 for the full year 2024 or gross profit was 112.3 million, compared to 182 million in the previous year. Gross margin for the full year of 2024 was 48.6% compared to 53.5% in the previous year. Operating expenses were 73.1 million in the second half of 2024 compared to 147.5 million in The same period of 2023 representing a decrease of 50% year over year for the full year of 2024 or operating expenses were 119.1 million, compared to 276.2 million in the Previous Year, representing a decrease of 31.2% year over year, sales and marketing expenses were 33.2 million in the second half of 2024 a decrease of 40% from 62.7 million in the same period of 2023 for the four. Year of 2024 or sales and marketing expenses were 82.6 million, a decrease of 35.2% from 127.5 million in the previous year. The decrease was primarily attributable to the decrease in payload related expenses, rental expenses, and marketing and promotional expenses, general and administrative expenses, were 30.3 million in the second half of 2024 58.8% decrease compared to 72.2 million in the same period of 2023 for the full year 2024 or general and admin expenses were 93.1,000,030% decrease compared to 107 million in the previous year, the decrease was largely attributable to the decrease in personal related expenses, and partially offsite by doubtful account, loss, research and development expenses were 5.6 million in the second half of 2024 a decrease of 55.6% from 12.6 million in the same period of 2023, for the full year 2024, or R&D expenses were 14.4 million, a decrease of 65.5% from 41.7 million in the previous year, the decrease was primarily due to the workforce risk factoring to enhance RMD efficiency, share based compensation gain recognized In cost of revenue, sales and marketing expenses, and R&D expenses, as well as the general and admin expenses, totaled 0.2 2 million in the second half of 2024 compared to the share based compensation expenses of 0.9 7 million in the same period of 2023 for the full year 2024 the total amount of share based compensation gain was 0.1 8 million, compared to 4.7 million of share based compensation expenses in the previous year. The change were mainly due to the reversal of SPC expenses caused by strategic workforce optimization, other expenses were 38.6 million in the second half of 2024 compared to 1.1 million of The of other income in the same period of 2023 for the full year, 2024 or other expenses were 63 million compared to 4.9 million of other income in previous year. The change was primarily driven by the impairment loss of long term investment. However, the company has a proactive, responded and upbeat about its future. Income Credit were 1000 in the second half of 2024 compared to 148,000 of income tax expenses in the same period of 2023 for the full year, 2024 or income tax expenses were 64,000 compared to 42,000 of the income tax credit in previous year. Net loss were 44.9 million in the second half of 2024 compared to 36.6 million in the same period of 2023 for the full year 2024 net loss was 140.8 million compared to 89.2 million in the previous year, net loss attributable to 36 Kr in ordinary shareholders was 42.3 million in the second half of 2024 compared to 37.7 million in The same period of 2023 for the full year 2024 the number was 136.6 million, compared to 19 million in the previous year. Basic and the diluted net loss per ABS was were bought 19.329 in. The second half of 2024 compared to 17.9 double seven in the same keyword of 2023 for the full year 2024 the number were about 64.795 compared to 47.132 in the previous year. As of December 31 2024 the company has a cash and cash equivalent and short term advisement of 92.5 million. Well, this concludes all or prepared remarks today. We will now open the call to questions. Operator please go ahead.

[Operator Instructions]. Your first question comes from [indiscernible].

The company's overall advertising revenue declined this year. Was the company's outlook for its advertising business moving forward?

First of all, in 2024 we proactively optimized our advertising products in advertiser customer base, adjusting certain low margin in high risk advertising businesses, this strategy could move resulted in a greater reduction in relevant cost, in the expenses driving continuous improvement in the overall profitability of our advertising business. Although our overall advertising revenue declined slightly, our internet sector, key accounts in the leading brand customers remained stable in 2024 we maintained the strong partnerships with key accounts like Alibaba, jd.com Lenovo and Huawei, additionally leveraging the content influence with our VCAT content specific accounts, including our youth in TIDE, we continuously accelerated the growth in our high quality customer base by consistently meeting our customers diverse Content marketing needs. We continued to attract premium customer customers across the sectors such as food and beverage, restaurant chains, sports in outdoor beauty and personal care, home appliances and more, we onboarded various premium global brands as partners, including Apple artery covers, PFC and PNG with the proportion of a new customers consistently on the right. We are cautiously optimistic about our advertising growth trajectory for 2025 despite the micro economic headwinds, we continue to deepen our expertise in key content verticals that matter mostly to our clients, such as AI and global expansion among others, by empowering customers across our industries with premium content solutions and constantly optimizing our products in the client structure, we are confident we can strengthen our advertising business resilience.

Thank you for your question. And do you have more questions?

Throughout 2024 what progress has a company made in reducing costs, in improving efficiency?

Firstly, through rigorous cost control in the cost structure. Optimization of gross margin responded to over 50% in the second half of the year. Secondly, as for expenses, we implemented an area for cost cutting in The efficiency enhancement initiatives, including relocating to an office building with lower rental costs, streamlining our tech and R&D teams, adjusting unprofitable businesses, improving workforce efficiency In cooperation in upgrading our organizational structure, etc. as usual. Additionally, we are integrating, integrating AI technology in the AI tools on all fronts, effectively saving costs in the elevating efficiency. This initiative led to a significant reduction in operating expenses in the second half of 2024 down by over 50% compared to the same period of 2023 Meanwhile, our operating expense ratio declined by 17% year over year. As a result, we badly narrowed our operating losses compared to the same period of 2023. In 2025 the company will continue to refine its products or customer base in the organizational structure to further enhance overall profitability. That's all for the answer. Thank you for your question. Do you have more questions?

Thank you. Your next question comes from [indiscernible]. Please go ahead

What led the decline in the full year revenue from enterprise value added services. Can you share the outlook for this huge revenue from enterprise value added services?

Small and median enterprises in the government institutions made up the majority of our enterprise value added services points, and they are relatively more affected by massive economic dynamics, uncertainties as a macro level, may promise more in the median enterprises to certain to curtain spending on consulting in offline initiatives, while government institutions may implement budget cuts. These factors collectively contributed to the decline in demand for enterprise value added services. Additionally one more important reason, this year, we strategically restructured our existing network of regional outlets in the once again optimized our service architecture and offerings for government in the public services system. As a result, we scaled down low margin, unprofitable, low. Government projects, leading to a decline in revenue from enterprise value added services, but on the upside, the strategies, this strategic adjustment has optimized our business in the product portfolio, reinforcing both sustainability in profitability. In 2025 we plan to carry on many of our legacy IP events, including wage our signature gathering designed for individual customers, and why our flagship year end submit, along with a variety of industry specific sharing programs in the forums that cater to diverse customer segments, like AI partner, these activities will lay the groundwork for revenue growth in enterprise value added the services Moreover, we will continue to expand the initiatives related to global expansion within our enterprise value added services in 2025 sustaining our strong globalization momentum from 2024 in addition to Southeast Asia, Japan, the Middle East and Europe will further strengthening, strengthen our global network and collaborate with the China Council for the promotion of international trade Beijing sub council to tap into additional resources from Beijing based service providers specializing in global expansion related solutions and enterprises seeking global expansion. At the beginning of this year, we made our first worry into operating a local government global expansion service center in our capacity as a meeting entity, partnering with partnering with Hangzhou Qian Tong new area construction in Investment Group company for The Chinese enterprise International Service Center Operation projects, moving forward, 36 Kr will remain committed to expanding and integrating cooperative resources for storing synergy within an extensive Global Partnership ecosystem. This will this will enable us to serve Chinese businesses in the institutions, in their international ventures, empowering Chinese businesses for expansion, while driving 36 Kr's revenue growth. Thank you for your question. Do you have more questions?

How does the company position itself in generative AI, across content in the product offerings?

Thank you for your question. Before DeepSeek gained widespread attention, we were the only tech media that worked to have exclusively interviewed the deep six founder then one phone twice. We were also the first in the industry to report on key industry development related six. Ai typers faced acid from pre training GPU leasing dilemma for AI computing centers in 2024 we also hosted the highly influential AI quantum submit for AI sub verticals. Those achievements underscored our broad and deep coverage of China's AI community and qualified by our network's extensive reach. As I just mentioned, the company launched an area of AI powered products in 2024 including AI text to image, AI Lab, AI financial report, interpretation, AI meeting coverage in the 36 Kr corporate, company intelligence, among others, notably AI meeting coverage has covered over 330 companies highlighting their latest initiatives in fund raising ventures. And we integrated in February 2025 meanwhile, 36 Kr cooperative Omni intelligence currently covers over 707,800 public companies listed in mainland China, in Hong Kong, subscriptions for its daily reports have reached more than 3000 and with a cumulative user base of more than 6000. In 2025 we will continue to develop our AI content ecosystem, maintaining our edge in corporate covering the latest AI trains, inconsistently, delighting users with premium content associated with AI GC technology. We will also further integrate AI GC technology with content production to unlock new avenues for success. Thank you for your question.

Thank you. As there are no further questions, I'd now like to turn the call back over to the company for closing remarks.

Thank you once again for joining us today. If you other questions, please feel free to contact 36 Kr's investor relations through the contact information provided on our website.

This concludes the conference call. You may now disconnect your line. Thank you.

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc. 2024 First Half Year Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements’ prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Jianan Ding, IR Manager of the Company. Please go ahead, Jianan.

Thank you very much. Hello, everyone and welcome to 36Kr Holdings first half 2024 earnings conference call. The Company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Co-Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Ms. Xiang Li. Mr. Feng will start the call by providing an overview of the Company and performance highlights of the quarter in Chinese, followed by an English interpretation. Ms. Li will then provide details on the Company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the Company's prospectus and other public filings as filed with the U.S. SEC. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please note that 36Kr's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unaudited GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB. I will now turn the call over to our Co-Chairman and CEO, Mr. Dagang Feng. Feng, please go ahead.

Hello, everyone. Thank you for joining our first half 2024 earnings conference call. Despite persistent market challenges in the first half of the 2024, we delivered a solid operational performance. Our online advertising services’ ARPU rose by 22% year over year, while subscription services’ ARPU among institutional customers increased by 8% year over year, underscoring our competitive market standing. As of the end of second quarter, we had over 33.28 million followers sustaining our growth momentum over that increase of 9% year over year. Those achievements were largely attributable to the effective execution of our three-step strategy, positioning, expansion and collaboration. Specifically, we are deepening our focus on premium original content, enhancing our original content supply capabilities, expanding our customer base in the segments to meet the diverse customer needs and collaboratively exploring AI applications to empower a variety of the business scenarios. These synchronized initiatives are boosting our operating efficiency in propelling us toward a new phase of a diversified development. Let me walk you through our major progress in each of the three steps, starting with positioning. First, we continue to enhance our content creation promise, strengthening our text in the graphic content ecosystem. Harnessing 36Kr defects of content dissemination network we have built a robust content circulation model. In the first half of the year, nearly 400 of our articles achieved over 100,000 page views. Our female content has garnered extensive industry claim solidifying our industry-wide leadership in insight and influence. We also extended our appeal to younger audiences with sub-vertical media channels like [indiscernible] steadily diversifying our user demographic. With the launch of all new sub-specialized accounts, 36Kr games, we minimally enriched our content sub-verticals, extending our process segment reach beyond new economy users to a broad spectrum of knowledge and entertainment audiences. Our short video business also performed exceptionally well in the first half of the year. We actively expanded our presence across leading short video platforms like Bilibili, Douyin and Kuaishou, driving an increase in our short video followers to over 9.2 million with a notable 2.3 million on Bili alone guided by our dual focus on in-depth content and the high-quality IP. We consistently impress our audience with professional specialized insight for original videos. Additionally, we unveiled AI Car, a crash program on the auto industry's application and development of AI. We also rolled out AI Map, which attracts the latest trend in AI and construct new blueprints for the intelligent world. This initiative notably elevated user engagement and overall experience, reinforcing our position as a top content IP creator. In the long form video segment, we collaborated with popular short form video platform, Douyin, to launch a new season of our Elite Talk Show series [indiscernible] in the second quarter. We made notable strides in content creation and channel distribution through this robust partnership. The debut episode of [indiscernible] featuring NIO founder, Li Bin, delved into upcoming shifts in the new energy vehicle sector, garnering widespread interest in the ranking up over 84 million views across various platforms. Next, live streaming where we continually optimize our innovative offerings during the first half of the year. Training hands of the industry veterans, we launched an area of entertaining live streaming programs that facilitated greater interaction and real-time connections, elevating user engagement and stickiness. One prime example is our new series, The Big Deal, which features insightful conversations between industry insiders and the medium curators and the content creators. Another is Business Insight Hub, a new show that focuses on capital dynamics and innovative initiatives, offering investor professional marketing intelligence. We also debuted Yooz Talk, a series of face-to-face exchanges with emerging business leaders designed to enlighten users with deep multidimensional insights. Last but not least, event IP, In the first half of 2024, we achieved a substantial success with the launch of a major event IP Advanced Productivity AI Partner Summit. In collaboration with industry giants like Alibaba, Baidu, Lenovo and Intel, we delved into the latest trends in AI applications, sharing insights on growth opportunities and the challenges gleaned from day-to-day business operations. This amid attracted an impressive million plus views, sparking extensive industry buzz. Additionally, our highly anticipated signature event IP with summit returned in June, 2024, offering a rich variety of the features across the venture capital technology, culture and the music sectors among others. Event served as a bustling hub, fostering connections among young entrepreneurs in investors, breaking up wonder 50 million views in the precisely engaging the younger demographic. By consistently crossing high quality original programs and distinctive events IP, we have ensured the steady flow of premium content, garnering broad visibility and inspiring lively discussions. The approach has a significantly amplified our brand power advertising potential in the commercial value. Our holistic upgraded our content and the event lineup has enriched our content ecosystem, expanded our user base in the cultivated more diverse content scenarios in the service models for users and the customers alike. Further solidifying our leadership across industry segments in the booking user ticket. Now let's turn to the expansion piece about three-step strategy. Our strategic innovative content and event layout has empowered us to forge closer ties with top global brands like Alibaba, JD, ByteDance, and Huawei, while also accelerating growth in our customer base. We are well positioned to consistently meet our customers’ diverse content marketing needs. In 2024, we made a remarkable progress in broadening our customer segments, enriching relevant service offerings in sectors such as food and beverage, restaurant chains, sports and outdoor, beauty and personal care, home appliances, and more. Notably, the proportion of the new customers in the sports and the outdoor category top to 60%. Meanwhile, beauty and the personal cares new customer usually exceeded 40%, and the food and the beverage along with the restaurant chains recorded a new customer is surpassing 20%. Moreover, we ventured into the energy storage sector crafting a specialized documentary for [indiscernible], a globally renowned manufacturer of advanced lithium batteries. We also provided integrated marketing services for a major player in global mobile payments, including customized solutions such as thematic summit, in-depth brand promotion, customer acquisition support in the interactive marketing. Our tailored approach effectively accelerating its global expansion and enhanced its position in the mobile payment sector while further strengthening its brand influence. Meanwhile, capitalizing on 36Kr as a substantial media influence and expertise of all regional outlets and 36Kr Research Institute, we continuously refined our service architecture for governmental and the public services system, harnessing our best understanding as to the intricacy of all levels of government operations. Along with our broad-based service experience, we offer customers an integrated suite of services, including facilitated industry specific partnerships, investment inflows in the global expansion service hubs to meet their varied needs. Our diverse slate of the premium services continues to attract new clients, expanding our government customer base in both Yangtze River Delta and Pearl River Delta regions. Leveraging 36Kr's platform resources and expertise, we have impressed our customers with more precise market insights in end-to-end marketing solutions. Our stable and high-quality customer base coupled with a broad and varied customer demographic, underscores our ongoing commercialization enhancement in a pace way for sustained business growth. Last but not least, collaboration is the final piece of our three-step strategy. In the first half of 2024, we depend and broadened our collaborative efforts as we integrated the technology across our business segments, achieving positive outcomes. One notable example is our in-depth strategic partnership with SenseTime [indiscernible] to explore advanced applications of AI technology. We've jointly launched an area for AI driven offerings including AI medium spotlight seekers, AI financial report interpretation and AI one-click image generation, delighting users with modern, more efficient content service offerings and expanding 36Kr's audience reach. By integrating 36Kr's content creation partners with SenseTime advanced AI technology, we aim to create and promote in all-new AI Chief Content Officer’s concepts, steering traditional media towards a more intelligent and interconnected future. We are confident that our enhanced content ecosystem and AI advancements will drive continued expansion in our product metrics and consistently improved our operating efficiency. In summary, during the first half of 2024, our three-step strategy, offering, positioning, expansion, and the collaboration ensures the solid operation will lay a robust foundation for growth in the latter half of the year. With our innovative spirit in brisk of the next generation technology in the wide brand partnerships with global frontrunners, we are points to enhance our content inference in once commercialization, propelling the Company's high quality, sustainable growth.

With that, I will now turn the call over our CFO, Mr. Xiang Li, who will discuss to our key financial results. Please go ahead, Xiang.

Thank you. Now, I'd like to walk you through the detail of our first half of 2024 financial results. Please note all amount are in RMB unless otherwise stated. Total revenues were RMB102.4 million in the first half of 2024 compared to RMB139.9 million in the same period of last year. Online advertising services revenue were RMB80.4, meaning in the first half of 2024 compared to RMB98.9 million in the same period of last year. The decrease was mainly due to the reduction in advertising spending by advertiser from certain industries and challenging external environment. In addition, we optimized our customer structure to control credit risk, which leads to a decrease in revenue scale. Enterprise value-added services revenues were RMB13.4 million in the first half of 2024 compared to RMB26.8 million in the same period of last year. The decrease was mainly due to our ongoing service offering refinements, which involved reducing several regional offices activities to strategically focus on our cash flow and efficiency optimization. Subscription services revenues were RMB8.6 million in the first half of 2024 compared to RMB14.2 million in the same period of last year. The decrease was mainly due to the planned evolution of our premium service business model. Cost of the revenues were RMB57 million in the first half of 2024 compared to RMB70 million in the same period of last year. The decrease was mainly attributable to decrease in operating costs in connect with the decline in our revenues. Gross profit was RMB45.5 million in the first half of 2024 compared to RMB69.8 million in the same period of last year. Gross profit margin was 44.4% in the first half of 2024 compared to 49.9%. Operating expenses were RMB117 million in the first half of 2024, decreasing by 9% compared to RMB128.7 million in the same period of last year. Sales and marketing expenses were RMB45.4 million in the first half of 2024, a decrease of 29.9% from RMB64.8 million in the same period of last year. The decrease was mainly attributable to the decrease in payroll related expenses, rental expenses, marketing and promotional expenses and share based compensation expenses. G&A expenses were RMB62.8 million in the first half of 2024, a 79.9% increase compared to RMB34.9 million in the same period of last year. The increase was mainly attributable to the increase in allowance of doubtful accounts and partially offset by the decrease in share-based compensation expenses. Research and development expenses were RMB8.8 million in the first half of 2024, a decrease of 69.7% from RMB29 million in the same period of last year. The decrease was mainly attributable to the decrease in average compensation level for our research and development personnel as we restructured our R&D team. Share based compensation expenses recognized in cost of revenue, sales and marketing expenses, research and development expenses and G&A totaled RMB0.05 million in the first half of 2024 compared to RMB3.7 million in the same period of last year. Other expenses were RMB24.3 million in the first half of 2024 compared to RMB6 million of other income in the same period of last year. The increase was mainly because the Company recognized about RMB25.5 million of investment loss, a reason for fair value change of long-term investment this year. Net loss was RMB95.9 million in the first half of 2024 compared to net loss of RMB52.7 million in the same period of last year. Non-GAAP adjusted net loss were RMB95.9 million in the first half of 2024 compared to non-GAAP adjusted net loss of RMB49 million in the same period of last year. Net loss attributable to 36Kr ordinary shareholders were RMB94.4 million in the first half of 2024 compared to RMB52.3 million in the same period of last year. Basic and diluted net loss per ADS were both RMB2.245 in the first half of 2024, compared to basic and diluted net loss of per ADS of RMB1.258 in the same period of last year. As of June 30, 2024, the Company has a cash, cash equivalence and short-term environment of RMB96.9 million compared to RMB116.9 million as of December 31, 2023. The decrease was mainly attributable to net cash outflow from operating activities. This concludes all our prepared remarks today. We'll now open the call to question. Operator, please go ahead.

[Operator Instructions] As we are showing no questions, I'll turn the call over to the Company for closing remarks. Alright, your first question comes from Yin Rui with Sealand Securities.

Could management outline the expected growth trajectory for the advertising business? How will the Company strategize moving forward? Thank you.

We remain cautiously optimistic about future advertising growth. In terms of the strategy, we have proactively optimized our products and services to navigate ongoing macroeconomic challenges, providing deeper support to core customers, including leading internet giants in the Fortune 500 Companies. This approach has proven highly effective, driving a 20% increase in ARPU in the first half of the year. We believe there is a few potentials for future growth. We will also continue to enrich our content ecosystem, expand our reach to new channels and diversify our content specific accounts to cover more sub-verticals. We are also actively defending the integration of AIGC technology with the content production. Rolling out more AIGS and offerings will allow us to engage with a broader range of companies and institutions that were previously out of reach due to bandwidth and the stopping constraints. Our ongoing content development efforts have expanded and diversified our user base in the service scenarios while strengthening our stable partnerships with the key accounts like Alibaba, JD, ByteDance and Huawei. We are also consistently finding high value new customers as we cater to company's diverse content marketing needs. In 2024, we continued to broaden our premium customer segment in sectors such as food and beverage, restaurant chain, sports and outdoor beauty and personal care, home appliances and more, making great strides. We onboarded various premium global brands as partners, including Alberts, KCF, and P&G. Note fully, the proportion of the new customers in the sport and outdoor category tops 60%. Meanwhile, beauty and the personal care, new customer ratio exceed 40%, and the food and beverage along with restaurant team to record the new customer refill surpassing 20%. Thank you.

Your next question comes from Lin with SWS Research.

What are the latest developments in short and long video segments? How about the Company plan to expand their growth potential?

In the first half of 2024, we delved deeper into the short and the long video sectors consistently providing diverse content offerings while expanding our range of the 2C products. Our short video contents line up now covers a broad spectrum of CUC including technological innovation, business insights, lifestyle, and more. The lighting users was rich in varied content options, As we mentioned before, relative to the other advertising channels short video advertising, both the broader customer appeal and higher ARPU, which has contributed significantly to the Company's advertising revenue growth. In 2024 leveraging our content creation promise in the substantial platform influence, we established the high visibility commercialization collaborations with multiple leading brands. Revenue performance was on track with our forecast for the year. Additionally, our finance in use lifestyle content has gone the widespread visibility in the user interest of fast major platforms like Bilibili, Douyin and Kuaishou. We launched the fresh programs like AI Car and the AI Map, substantially elevating user engagement and overall experience, and reinforcing our position as a top content IP creator. By mid-year 2024, our short video followers surpassed 9.2 million and a notable 2.3 million on Bili alone, which is difficult for an institution and media company. Regarding long form video, we collaborated with popular short form video platform Douyin to launch a new season of our Elite Talk Show series, [indiscernible] in second quarter. We made notable choice in content creation and channel distribution through this robust partnership. Its debut episode featuring NIO founder, William Bin Li, ranked up over 84 million views across various platforms.

That does conclude. There are no further questions. I'd like to turn the call over back to the Company for closing remarks. Just turning over to the Company for closing remarks. Our apologies. We have another question from Lin with SWS Research.

What key strategies will the Company implement to drive growth in enterprise value added services and subscription services in the second half of the year? Thank you.

First, in response to market dynamics and evolving customer needs, we launched a major event IP Advanced Productivity AI Partner Summit during the first half of the year. The event was quite successful, attracting an impressive 200 million plus views and sparking extensive industry buzz. We also supported Lenovo in organizing the Lenovo New Business Innovation Ecosystem Series Roadshow, leveraging diverse channels such as 36Kr official accounts, Weibo, and community platforms for high impact promotion. This initiative empowered the elite startups across sectors, including artificial intelligence, application software, smart devices in advanced manufacturing with end-to-end services. Moving forward, we'll focus on reaching our product metrics and the services scenarios to meet our customers evolving needs. In addition, we'll launch our [indiscernible] in October this year and we'll have more innovative services for our customers in the audiences. In addition to offline events, we have consistently enhanced our value-added consulting services. In the first half of the year, 36Kr Research Institute conducted in-depth studies on emerging business models, commercial structures in the industries within the new economic sectors, issuing a range of industry research reports that offered a thorough analysis and insights on the trends and the prospects in artificial intelligence, digitalization, global expansion in the customer sectors. We also refined our service architecture for governmental and the public service systems this year, harnessing our best understanding of the intricacy of the governmental customers. Along with our broad basis service experience, we delivered a host of top year services, including facilitating industry specific partnerships, investment inflow in the global expansion service to fulfill our customer's very needs. Given that globalization is an irreversible trend, we are channeling considerable strategic resources to our overseas ventures this year. For instance, we are establishing meeting operations targeting Europe in this September, leveraging 36Kr’s existing strength in our regional content in the integrating AI technology to enable real-time dissemination of a high volume of content to Europe, while also bring the latest European news back to China. As we expand our network worldwide, we will work with the Chinese government entities and the businesses to establish 36Kr global expansion service centers.

Thank you for your question. Thank you once again for joining us today. If you have further questions, please feel free to contact 36Kr’s Investor Relations to the contact information provided on our website.

This concludes our teleconference today. You may now disconnect your line. Thank you.

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc. Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Jianan Ding, IR Manager of the Company. Please go ahead, Jianan.

Thank you very much. Hello, everyone and welcome to 36Kr Holdings fourth quarter and fiscal year 2023 earnings conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Co-Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Ms. Lin Wei. Mr. Feng will start the call by providing an overview of the company and performance highlights of the quarter in Chinese, followed by an English interpretation. Ms. Wei will then provide details on the company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please note that 36Kr's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unaudited GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB. I will now turn the call over to our Co-Chairman and CEO, Mr. Dagang Feng. Feng, please go ahead.

Thank you. Hello, everyone. Thank you for joining our fourth quarter and full year 2023 earnings conference call. 2023 was an extraordinary year for 36Kr as we continuously strengthen our content ecosystem, leveraging our periods content creation partners and comprehensive marketing offerings we drove growth in both our user base and monetization. As a result, our annual revenue reached RMB340 million, up 5% year-over-year and we sustained our high gross profit margin of 54%. 2023 also marked the year of exposed growth in AC by actively embracing the vast opportunities brought by this industry transformation, we were able to dive deeper into visionary AGI applications. accelerating AGI adoption in real-world scenarios. Let me share some additional details of our 2023 progress across 3, 4 areas: the enrichment of our content ecosystem, AI product development and the comprehensive AI applications. I will start with our content ecosystem will further enrich and diversify our content metrics continuously creating high-quality content on multiple fronts. In 2023, we built upon our flagship channels, including 36Kr and 36Kr Pro by accelerating our reach in the vertical. We rolled out high quality content specific account like the emergency of intelligence, 36Kr auto future consumption, PR carbon and hardcore among others. These accounts made our metrics more comprehensive, bringing both broad content coverage and a great depth of expert in specialized domains to provide users with invaluable insights into industry trends and evolving business dynamics. At the same time, we continue to tailor content experiences for younger generations by our and tied vertical media channels, selling a broad content metrics of text and graphics, clicks and customized videos. This channel successfully engage younger audiences, greatly extending our content reach with approximately 40 accounts so far covering advanced manufacturing digitization, dual carbon and ESG hard core technology, highly specialized, innovative enterprises, consumer lifestyles and much more. We have successfully introduced and fostered a solid content ecosystem. We also expanded our footprint across various channels, crafting a comprehensive circulation measures, encompassing major new media platforms like Weibo, China exposure brings us wider overall dissemination, higher visibility for our prime content with blockbuster articles emerging back to back throughout 2023. 740 of our articles achieved over 10,000 views. The automate Weibo topic list with 23 hot search topics and over 100 hotly debated topics, thanks to our continued stream of fresh perspectives. Our consistent production of high-quality content standard and diversified our user demographics, further elevating user engagement and stickiness. As of the end of 2023, we had over 32.7 million followers, marking 11 consecutive quarters of growth. Moreover, our overbill content ecosystem is now a more comprehensive and diverse. We explore a growing area of content formats, including texts, graphics and short and long-form videos as well as audio and live streaming. In terms of short video, our exceptional content creation capabilities are as widespread visibility and views from users. Our short video followers exceeded 9 million by the end of 2023, including a significant 2.2 million on Bilibili alone. Moving on to long-form video. In 2023, we unveiled our first long video talk show series, say in 2033, owing to its roster of single and in-depth discussion, a rarity within the industry. Our show rapidly captured audience attention and imagination. So far, we have aired 2 productive seasons of the show. As a host, I discussed and explored exciting aspects of the new economy with visionaries from various industries, including AI triple lasers, traditional automotive manufacturing leaders in the burdening electric vehicle sector, carbon neutrality industry, luminary and capital market experts. Live streaming for say 2033 at Youku and Beijing Radio and Television station also marked a pivotal milestone for us. They extended our reach beyond social media, successfully breaching out into long video platforms and television networks and fostering a broader content portfolio and closed loop ecosystem. In terms of we integrated our resources and maximize the utilization of WeChat channels to launch in live streaming IP, leave PR Star, primarily centered on 2 programs, used wash and tips. In 2023, we're hosting 95 live streaming sessions, addressing a diverse spectrum of trying topic, including perspectives on employment at Internet giants, industry know-how, such as AI row in quality cost reduction and efficiency content and global expansion of its brand. These coordinated initiatives are aimed at bringing more in-depth content and services models to our users and clients alike. In the audio line, Services Care's audio channel has emerged as a top-tier streamer on platforms like Himalaya, delighting listeners with a varied slate of initiatives such as 815 warning ports, major moments and Business Intelligence Hub, gardening invasive acclaim. We also further deepened our commitment to expanding our audio content portfolio and functionality in 2023 with the launch of our live podcast, get off work have fun. Our second main area of progress is in IP product development. We consistently reinforce our medium value by concerning our medium platforms competitive barriers with high-quality content offerings. In 2023, we continuously augmented our content metrics by creating and neutering our content IP with programming like those I just mentioned, foreseeing 2023 and our use series. We also launched a diverse range of initiatives supporting our newer IP, including texts and graphics, short videos and live streaming programs following reinforcing our content influence. In terms of event IP innovation, we broadened the scope of our annual flagship-wise conference to encompass all business domains completing its evolution from the wiring of the New Economy conference to the wise King of the Business Conference. This strategic graduation enrich the events of diversity, while also providing its audience with broader industry perspectives. We also unveiled a brand-new summit waves as well as 2 culture and leisure IP series, surprise incredible, successful driving growth in our business and facilitating enterprise client acquisition. Furthermore, 36Kr emphasizes IP-oriented upgrades to enhance its branded service offerings in 2023 as a keen observer and interpreter of industry and market trends, such as KR Research Institute has maintained its focus on conducting thorough research on state-of-the-art technologies, innovative trends and business advancement through high precision data and actuate analysts. We support government and corporate clients with tailored consulting services, offering invaluable perspectives and insights to drive industry transformation and innovation. Additionally, as a rising star in the business training field, 36Kr business school offers a diverse array of courses, including open lectures, explosive fireside chats with C-level executives, corporate site visits and interviews. We also advanced our development of degree-based programs for senior executives in the new economy sector in China, teaming up with globally estimated institutions such as Oxford University, business schools in France and Cure Marine University of London, among others, to jointly deliver world-class masters and doctoral programs. Moreover, in response to the escalating need for AI applications which forces with top-tier institutions, including Peking University and University to unveil the global intelligent entrepreneurial initiative, further the propelling AI advancement, as a result, 36Kr Business School's IP has gradually emerged as a permanent player in the training sector, enabling recent graduates business elect as well as AI professionals with all live training solutions, empowering them to anticipate and amplify the new economic growth trend. The third and final aspect I want to highlight today is how we have advanced our AI applications in innovative scenarios, new opportunities with the emergency of large we're strategically integrated technologies throughout our content ecosystem and pioneer the use of AI technology in opening at store. This significantly improved the efficiency of store operations while reducing relevant costs. During the Asian Games, we innovated once again creating an AI-driven Asian Game blogger on Xiaohongshu and teaming up with Alibaba AI model. This joint initiative marked a significant content creation milestone for us while also underscoring 36Kr's human and outstanding execution capabilities in AI applications. In 2023, by virtue of our outstanding proficiency in creating business and test finance content, we were one of the first companies invited to partner with Baidu, ChatGPT ecosystem. This cooperation has since evolved into a more in-depth strategic partnership with Baidu, under which we're effectively advancing innovation and the commercialization of AI technology in content production enterprise services. Further leveraging the inherited synergies between AIGC technology and the content production industry, we maximize the utilization of AIGC technology across content production activities, including information identification, text progressing and image generation. This upgrade effectively reduce costs while enhancing efficiency, ongoing updates and interrelations of AI-powered video tools will also lower the costs associated with video production going forward. Moreover, we continued to broaden our business goal by actively promoting AI applications across diverse business scenarios. Our AI power solution for financial report importation jointly launched with since time, empower customers with unparalleled insight into corporate and financials by harnessing AI technology, ensuring our subscribers receive a superior level of service and value. Additionally, we plan to unveil an area of AI-driven product in 2024, such as corporate briefings and medium spotlight seekers, among others. Through the strategic deployment of AI technologies, we broaden the preview and the position of our customer outreach initiatives effectively connecting with the diverse spectrum of enterprises and organizations previously beyond reach due to resource intensive workloads and manpower limitations. Through our enriched content ecosystem, growing metrics of services and products and extensive AI empowerment, we have continuously strengthened our commercialization capabilities resulting in solid revenue growth. Now I'd like to take a closer look at the commercialization progress we made in each segment in 2023. Starting with advertising, revenue increased by 8% year-over-year. We continue to craft innovative content marketing strategies and expanded into diverse marketing format like text, graphics, short- and long-form videos, audio and live streaming to fulfill client holistic branding needs. Our ongoing service innovation drove a pool on by 17% year-over-year, our industry footprint, we ramped up advertising initiatives in emerging sectors such as new energy vehicles and luxury goods consumption while also broadening partnerships with legacy brands in traditional industries like apparel and food. We also continue to diversify our advertising commercialization channels. Beyond revenue growth across our flagship platforms, like the 36Kr website, 36Kr app, WeChat and Weibo, we made significant headway in monetized like BDB, WeChat channels, among others. Following on to short video. Our short video business continued to excel which is contributing as a percentage of advertising revenue consistently on the road. Our short videos attracted a large following with high-quality content positioning us as a standout among corporate accounts across various platforms. Notably, our short video covering the automotive sector has garnered widespread claims within the industry for its top-notch content. This drove ongoing expansion of its for based as well as partnerships with teams auto brands, including BMW, Mercedes-Benz and This publishers highlight our competitive edge in the short-video sector and lay a robust foundation for our future expansion. Now let's turn to underprice value-added services. Throughout 2023, 36Kr remain committed to verticals such as new technology, new energy and new consumption posting approximately 20 industry summits to more directly and efficiently empowered enterprise. We extended our reach to younger demographics with our all new waves, integrating venture capital technology, culture and music themes to zero-in on young business founders and investors. This celebration of yields for entrepreneurship amass over 83 million views. Meanwhile, more than 300 distinguished commercial and economic experts, scholars, business and investors, including and joined us at our year-end flagship summit, the Wise 2023 Kings of Business. The event vibrant discussions park new ideas and innovation. We also enhanced this year's conference with certain functional upgrades to amplify its networking potential and foster even more social engagement among users. In addition to off-line initiatives, we continue to make strides in our consulting services and other enterprise service offerings. Throughout 2023, we continue to fortify 36Kr research institutes expertise in industry research, regularly issuing top notch research report with valuable insights, including industry exports on an array of topics like new energy global expansion, automation, smart agriculture and enterprise SaaS, etcetera, while forging in-depth alliances with leading companies like Lenovo, Alibaba Cloud, Baidu, Doing and Nets Cloud Music among others. Furthermore, this year, we opposed to further deepen our engagement with the government and the public service system, drawing upon comprehensive graph of government structures at different levels and our wealth of service expertise will offer customers with integrated suite of services, including facilitating industry-specific partnerships and investment inflows addressing their varied needs with precision. Next up for subscription services. We continue to refine our membership system and subscription product offerings, achieving significant year-over-year annual revenue growth of 21%. One good example is our optimization of 36Kr business school services. As part of our aforementioned innovative to craft a permanent business training IP in addition to consistently refining our premium training courses, including funding acceleration camp, we also dive deeply into the development of international degree-based programs. This now feature instead for lectures distinguished leadership scholars and professors covering an array of exciting topics, as a result, our subscription services app surged to over RMB140,000, reflecting a notable improve in our holistic commercializing capabilities. In short, 36Kr sustained a solid growth trajectory throughout 2023. We achieved a full year revenue of RMB340 million, up 5% year-over-year, thanks to our peerless content creation companies, robust IP assets actively engaged users and a diversified product As of the end of 2023, we had over RMB32.7 million, a surge of 14% [ph] year-over-year that marked our 11th executive quarter of growth. 2023 also ushered in the era of AIGC, large language models are reshaping and redefining nearly every sector of the economy, content production included, driving new wave of technological transformation. 36Kr actively embraced the AI boom, further optimizing content production and commercialization efficiency through visionary AI applications. Stepping into 2024, as a provider and facilitator of advanced productivity, we opposed to hone our competitive edge in content fruition, broaden the reach of our product and service offerings and for the harness AI technology to empower high-quality development among new economy stakeholders. With that, I will now turn the call over to our CFO, Lin Wei, who will discuss the financial results. Please go ahead, Lin.

Thank you, Paul. Now I'd like to walk you through more details of our fourth quarter and fiscal year 2023 financial results. Please note our numbers are in RMB, unless otherwise stated. Total revenues were RMB103.3 million in the fourth quarter of 2023, a 7% increase from 96.6% in the same period of last year. Total revenues for the full year of 2023 were RMB340.2 million, a year-over-year increase of 5.5%. Online advertising services revenue were RMB68.6 million in the fourth quarter of 2024 [ph], an increase of 10% compared to the same period of last year. For full year of 2023, our online advertising services grew by 8% year-over-year to RMB238.7 million. The increase was primarily attributable to more innovative marketing solutions we provide to our customers as well as proactive sales strategies we adopted during the year. The average revenue per online advertising customer in 2023 were RMB489,000, a 17% increase year-over-year. Enterprise value-added services revenues were RMB26.3 million in the fourth quarter of 2023, a 4% increase from the same period of last year. For full year 2023, our enterprise value-added services revenue was RMB67.3 million compared to RMB72.6 million in the previous year. The 7% decrease was primarily due to the transition of our integrated marketing services, partially offset by the growth of our app enterprise value-added services in 2023. Subscription services revenues were RMB8.4 million in the fourth quarter of 2023 compared to RMB8.9 million in the same period of last year. The slight decrease was primarily attributable to the structural changes to our institutional clients in China, partially outside by the increase in individual subscription services. For full year 2023, our subscription services revenue was RMB34.2 million, representing an increase of 1% year-over-year. The increase was primarily attributable to our continuous efforts to offer high-quality subscription products to our subscribers, especially individual subscribers. Cost of revenues was RMB45.8 million in the fourth quarter of 2023 compared to RMB47.6 million in the same period of last year. The decrease was primarily attributable to the optimization of personnel-related costs. For full year 2023, our cost of revenues was RMB158.2 million compared to RMB137.8 million in the previous year. The increase was primarily attributable to higher content costs and fulfillment costs. Gross profit was RMB57.6 million in the fourth quarter of 2023, increasing by 18% from the same period of last year. Gross profit margin was 56% in the fourth quarter of 2023, up 5 percentage points from 51% in the same period of last year. For the full year of 2023, our gross profit was RMB182 million compared to RMB184.6 million in the previous year. Gross profit margin for full year 2023 was 54% compared to 57% in the previous year. Operating expenses were RMB30 million [ph] in the fourth quarter of 2023 compared to RMB69 million in the same period of last year. For full year 2023, operating expenses were RMB276.2 million compared to RMB229.2 million in the previous year. Sales and marketing expenses were RMB30.3 million in the fourth quarter of 2023, a decrease of 8% from the same period of last year. This is primarily attributable to the decrease in payroll-related expenses, partially upside by the increase in marketing expenses. For full year 2023, sales and marketing expenses were RMB127.5 million compared to RMB122.1 million in the previous year. The slight increase was primarily attributable to the increase in marketing expenses and promotion fees during the year. G&A expenses was RMB35.3 million in the fourth quarter of 2023 compared to RMB21.7 million in the same period of last year. The increase was primarily attributable to the increase in the loss of credit losses. For full year 2023, G&A expenses were RMB107 million compared to RMB52.1 million in the previous year. The increase was mainly attributable to the increase in allowance for credit losses as well as certain one-off expenses, including severance payments as we optimized our organization and office lease termination fees as we moved our headquarters office in fiscal year 2023. Research and development expenses were RMB4.4 million in the fourth quarter of 2023, a 70% reduction compared to RMB14.5 million in the same period of last year. For full year 2023, our research and development expenses were RMB41.7 million, 24% down from RMB55 million in the previous year, as we proactively embrace AI technology and streamlined our research and development teams, resulting in a decrease in payroll-related expenses. Share-based compensation income recognized in cost of revenues, sales and marketing expenses, research and development as well as G&A expenses totaled RMB0.4 million in the fourth quarter of 2023 compared to SBC expenses of RMB4.6 million in the same period of last year. This fluctuation was primarily due to the reversal of share-based compensation expenses related to future in Q4 2013. For the full year of 2023, the total amount of share-based compensation expenses were RMB4.7 million compared to RMB13.9 million in the previous year. Other expenses were RMB5.1 million in the fourth quarter of 2023 compared to other expense of RMB1.2 million in the same period of last year. For full year 2023, other income was RMB4.9 million compared to other income of RMB67.5 million in the previous year. The decrease was primarily because the company recognized RMB38 million gain on disposal of subsidiaries and RMB16 million of long-term investment income in 2022 but recognized RMB8.1 million fair value loss of long-term investments in 2023. Net loss was RMB17.7 million in the fourth quarter of 2023 compared to a net loss of RMB21.5 million in the same period of last year. For full year of 2023, our net loss was RMB89.2 million compared to net income of RMB22.6 million in the previous year. Non-GAAP adjusted net loss was RMB18.1 million in the fourth quarter of 2023 compared to non-GAAP adjusted net loss of RMB16.9 million in the same period of last year. For full year 2023, non-GAAP adjusted net loss was RMB84.6 million compared to non-GAAP adjusted net income of RMB36.5 million in the previous year. Net loss attributable to 36Kr ordinary shareholders was RMB18.8 million in the fourth quarter of 2023 compared to net loss attributable to 36Kr ordinary shareholders of 36Kr 20.8 million in the same period of last year. For full year of 2023, net loss attributable to 36Kr ordinary shareholders was RMB90 million compared to net income of RMB21.9 million in the previous year. Basic and diluted net loss per ADS were both RMB0.45 in the fourth quarter of 2023 compared to net loss per ADS of RMB0.50 in the same period of last year. For full year 2023, basic diluted net loss per ADS were both RMB2.16 compared to basic and diluted net income per ADS of RMB0.53 in the previous year. As of December 31, 2023, the company had cash, cash equivalents and short-term investments of RMB117 million compared to RMB160 million as of September 30, 2023. This concludes all of our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

[Operator Instructions] Your first question comes from Shan Jiao with CICC.

Congratulation to a solid growth in the revenue in 2023. And how does the management view the advertising revenue trend in the first quarter and in 2024?

Thank you. Despite persistent macroeconomic changes in 2023, our advertising business demonstrated solid growth momentum, achieving 8% year-over-year revenue growth. This success is attributable to our ongoing commitment to enhancing content influence and our ongoing client base expansion across diverse industries, particularly among top-tier and midsized advertisers. The steady growth trend in ad spending by our advertisers propelled a year-over-year increase in our pool of 17% attestment to 36Kr's robust business resilience. In addition, we have been actively exploring and harnessing AI technology to enhance marketing and craft innovative strategies including personnel, advertising content generation, advertising placement and live streaming featuring digital influencers, et cetera. As such, we are providing our customers with marketing solutions that are smarter, more efficient and more innovative. We are cautiously optimistic about our advertising growth trajectory for 2024, aimed at the ongoing macroeconomic rebound, sustained stimulus policies and new development strategies such as advanced productivity as a leading service provider for and the facilitator of new economy and advanced productivity stakeholders, we expect robust growth in our advertising business in 2024, particularly in industry sectors such as demand from business and AI business sectors as well as the need to market advanced technologies from traditional asset prices.

Your next question comes from Zhao [ph] with SWS Research.

What is the latest progress on both long- and short-video business? What are the plans for our further explore growth potential? And what is the company's layout and further developed plan in generative AI?

Thank you for your question. Well, for your first question, our short video adds both the wider customer acceptance and the higher ARPU compared to other advertising formats providing the major of the company's overall advertising revenue in 2023, leveraging our peerless content creation and a substantial influence across major platforms commercial various leading companies. This generated revenue totaling [indiscernible] accounting for over 20% of the company's total advertising revenue. At the same time, our engaging content across finance, economics and useful lifestyle garnered website across major platforms that BDB, et cetera. As of the end of 2023, our short-video followers reached 9 million, including a significant 2.2 million BDB alone. Regarding long videos throughout 2023, our long video talk show series in 2033 roster of distinguished and in-depth analysis, a rarity within the industry. Our show rapidly captured audience attention and achieved a substantial monetization success while earning growing reviews as 2 amass over 350 million views. We also thrilled about the 2 programs of our upcoming series for say in 2034 which is in full swing. In 2024, we will deepen both [indiscernible] on develop, stepping up our investments in content creation and service customization and exploring a wide array We have a handful of long-video programs in the pipeline which we will further [ph]. Now for your second question, as we all know, 2023 assured in the area AIGC as a new economic content creation platform, 36Kr skillfully leverage the inherited synergies between content creation and AIG technology. We rolled out the emergency intelligence, a specialized account focused on providing high AIGC tech content. We also further pinned our integration of AIGC with content production actively harness AIGC technology for content creation across the broad copyrighting and translation to image generation and more, reducing cost and inefficiency, in addition, leveraging our king acumen visual AI technology, we pioneered the process of opening a Taobao store exclusively using AI. During the Asia games, we innovated once again to create an AI-driven Asia Games blogger on We also teamed up with Alibaba AI model. We have also advanced AI applications across scenarios and unveiled array of AI-driven perspectives, such as the AI financial report interpretation launch in collaboration with as well as a company a brief and medium coverage outreach. These offerings empower customers with intelligent information collection, analysis and reporting services. Through the strategic development of AIGC technology we broadened the preview and position of our customer operate initiatives effective enacting with a diverse spectrum of enterprise organizations previously beyond reach due to resource intensive footnote and manpower limitations.

Your next question comes from Peipei Qiu with Industrial Securities.

I will translate my question. The subscription service business is growing faster than expected. So what are the main factors behind this? And what are the new growth strategies for this segment in the future?

While the reps in our subscription services was primarily propelled by the launch of [indiscernible] like I just mentioned, throughout 2023, as we diligently optimize our premium training courses, that venture capital class and funding acceleration cap, we also joined hands with global team institutions, deliver world-class and programs for corporate executives. Our subscription services are pulled over RMB140,000 [ph]. Moreover, in respect to the escalating need for AI expertise and applications, we partnered with top-tier institutions, including Peking University and University unveil the global intelligent entrepreneurial initiative, enabling participants to further advance AI awareness and AI utilization through hands-on training. In 2024, we will continue to diversify our core course offerings and welcome more institutions and partners, continually inviting our portfolio of training options. We are actively expanding our AI-driven subscription offerings to cater to both 2C and 2B segments, including AI-powered solutions for financial report interpretation, corporate briefings and more by harnessing AI technology for intelligent information question, analytical intelligence and reporting, among other things. We ensure our subscribers receive a superior level of service and value for the accelerating the growth in our subscription services.

Your next question comes from Ricky [ph] with Sealand Securities.

What are the growth prospects for 2024?

While Looking back on 2023, despite macro uncertainties and shifting external dynamics, we delivered solid results with 5.5% year-over-year revenue growth. We are cautiously optimistic of 2024 and we expect to sustain revenue growth and improved profitability. For one thing, we will further enrich our content ecosystem and reinforce our products and services. We will also actively minimize utilization of AIGC technology across content production initiatives and launch additional AI-driven products to engage with a diverse spectrum of enterprises and clients previously beyond reach due to resource intensive workloads and manage our limitations. Moreover, the introduction of the notion of Advanced Productivity has fostered a strong sense of confidence and assurance across the company, giving our comprehensive offerings that support and empower a diverse spectrum of businesses. We are well positioned to capture greater commercialization opportunities arising from this new strategy. Furthermore, with the optimization of our organizational structure and systematic CapEx in cost and expenses, we are posed to advance our goals of cost-reduction and efficiency enhancements which will further bolster our operating leverage, driving overall profitability to new heads.

As there are no further questions, I'd now like to turn the call back over to the company for closing remarks.

Thank you once again for joining us today. If you have further questions, please feel free to contact 36Kr Investor Relations through the contact information provided on our website.

This concludes this conference call. You may now disconnect your lines. Thank you.

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question-and-answer session. Today's conference is being recorded. I will now turn the call over to your host, [Indiscernible], IR Manager of the company. Please go ahead, [Indiscernible].

Thank you very much. Hello everyone and welcome to 36Kr Holdings third quarter 2023 earnings conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Co-Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Ms. Lin Wei. Mr. Feng will start the call by providing an overview of the company and performance highlights of the quarter in Chinese, followed by an English interpretation. Ms. Wei will then provide details on the company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the US SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please note that 36Kr's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB. I will now turn the call over to our Co-Chairman and CEO, Mr. Dagang Feng. Pal, please go ahead.

[Foreign Language] Thank you. Hello everyone. Thank you for joining our third quarter 2023 earnings conference call. During the third quarter of 2023, we achieved solid progress across all of our business segments, propelling a year-over-year increase of 2.5% in total revenue as we consistently enrich our content ecosystem and so to diversify and expand our product and service offerings. We also deepened the integration of AI applications across our business and in evolution of generative AI and large language models. These synchronized endeavors have empowered great strides in our commercialization and further elevate our operating efficacy, effectively reducing overall cost to improve efficiency company-wide. I'd like to begin with a discussion of this quarter's content initiatives and advancements, followed by a more detailed look at our commercialization progress across each of our business segments. 36Kr's core competitive edge lies in our exceptional content creation partners. Through years of dedicated effort, we have cultivated an extensive portfolio of premium sub-vertical media. Our multidimensional content matrix covers a broad array of trending topics and [Indiscernible] to connect with diverse user demographics, offering deep insights into industry trends and market dynamics for new economy participants. During the third quarter, we maintained a continuous flow of high quality content with blockbuster articles emerging back-to-back. More than 110 articles achieved over 100,000 page views. We also continue to expand our footprint across various channels, costing a multi-platform across media circulation metrics. As of the end of the third quarter, the number of our followers surpassed 32 million, rising 20% year-over-year. This achievement reflects 36Kr's substantial market influence and set a stage for greater business development. In addition to the solid performance of our text and image business content portfolio, we also achieved a new breakthroughs in content variety during the third quarter, spanning short videos, long videos, and podcasts. Let me start with short videos. We have constantly enhanced the value of our short video lineup, creating trendsetting and pioneering content that drives development industry-wide. This quarter, we launched an all new short video series, The Pioneers, the debut episode which we call the rise, fall, and potent combat of almost 20 old [Indiscernible] industry giants, [Indiscernible], garnered numerous shares and likes by users. Our vertical medium, 36Kr Auto, also continue to thrive, gaining momentum in content quantity and engagement with growth in the number of both likes and forwards. Overall, short video is pivotal for broadening our customer reach and enhancing user engagement and stickiness. As of the end of third quarter, we had over 8.5 million short video followers, among which, more than 2.50 million were [Indiscernible] users. Moving on to long videos, our first long video show Foreseeing 2033, returned for its second season. This student, we extended each episode from 30 to 40 minutes and elaborated the narrative with greater detail across five segments, including a deep-dive into the Jester's profile, a review of the historical backdrop, a thought provoking message of the era shaping their business success, key takeaways and insights, and an engaging Q&A session. We hosted a stimulating conversation with Charles Li Xiaojia, the former Chief Executive of Hong Kong Exchange and Founder of Micro Connect; William Li, Founder of NIO; James Liang, Founder of Trip.com Group; and Chen Yanshun, Chairman of BOE. We also have the privilege of speaking [Indiscernible] with Kevin Kelly, The Founding Executive Editor of Wired Magazine, who is widely recognized as the Father of Silicon Valley Spirit, [Indiscernible] Session. This flagship initiative was upstream across various platforms, including WeChat channels, Youku, and Beijing radio and television station. It not only cemented our standing as an innovator in long video production, but also showcase 36Kr's robust brand influence across the industry. In addition, we continue to broaden the horizons of our innovative audio content lineup, our first live podcast, Get off Work, Have Fun, fully leveraged our high quality content assets and delighted our listeners with a more diverse and a personalized audio experience. Additionally, several of our audio content programs were featured on [Indiscernible] text channel, including news/briefing business, intelligence hub, and services care breaking news. By driving user growth through an enrich the content experience, we made solid progress in crafting our comprehensive closed loop content ecosystems. The vibrant innovation in AI technology is creating intriguing growth opportunities for 36Kr and we diligently integrate AIGC technology throughout our ecosystem. We further enhanced our content production efficiency through AI applications of image generation, video creations, script editing, and data collection. Additionally, we launched the 36Kr medium light in Silicon Valley, our first unmanned initiative to further explore the innovative application and development of large language models in the financial industry. Furthermore, we joined hands with top tier industry players, including Baidu, SenseTime and iFLYTEK to deepen AIGC applications, including AI powered deep-dive into financial reports and the dynamics of the primary market. Harnessing AI-powered technical tools, we have delivered more comprehensive, more agile, higher quality offerings to a broader spectrum of companies, while optimizing our report value for money. Similarly, we also implemented a comprehensive AI-driven transformation company-wide, launching AI driven upgrades for a wide array of services and products such as the 36Kr and [Indiscernible] and our venture capital platform further reducing operating costs and elevating efficiencies. I'd also like to specifically highlight our forays into AI empowerment during the quarter followed our pioneering AI-powered ecommerce store earlier this year. This quarter we applied AI technology to create a virtual blogger for the Asia Games on [Indiscernible], which garnered significant visibility and engagement in just one month. Initiatives like this stand as a resounding testament to our leadership and consistent excellence in AI innovation and application. Thanks to our enriched content ecosystem and AI development, our content and product matrix remain robust with an ever-broadening array of offerings. Furthermore, we continue to diversify our customers' dynamics. Our stable, high quality customer base not only reflected the company's substantial market influence, but also laid the [Indiscernible] for consistent [Indiscernible] key performance matrix. Next, I'd like to share a more detailed [Technical Difficulty] AI application in business information across various scenarios. First, let's look at advertising where our revenue increased by 11% year-over-year, fully leveraging our strength in content and distribution channels, specifically engage target audiences and achieve the high marketing conversion rate. Furthermore, our continuous service innovation drove our accrual up by 20% year-over-year during the quarter. Through years of development, 36Kr has accrued extensive advertising service experience spanning multiple industries, including TMT, consumer goods, automotive, real estate, advanced manufacturing, and new energy. As such, we are well-positioned to accommodate the distinct market preference of advertisers across the broad spectrum of industries. For example, we provided a full service integrated marketing campaign for the launch event of Haier Wet/Dry Space Smart Robot Vacuum Cleaner from pre-event teaser posters and ID views to customize offerings and live broadcast during events. Our choreography of omnichannel content information and created topics resulted in total online exposure of over 7.94 million views. We also crafted a variety of marketing materials of Baidu, AI Cloud utilizing infographics and videos of on-site tours to vividly present its capabilities. We broadcasted this content across our new media metrics to efficiently reach the target audience, receiving widespread acclaim. Given our premium content, profound insights into user space and preferences and the high conversion rate of commercialized content. We expected to attract an increasing number of advertisers for content promotion going forward as well as achieve sustained revenue growth in advertising. In terms of short video advertising, as our content continues to gain traction on platforms like BiliBili and Xiaohongshu, we have attracted a more diverse range of advertisers spanning intelligent technology, consumer lifestyle, culture and entertainment, and other sectors. This quarter we build on our track record of producing permanent content by crafting a compelling video in collaboration with Alibaba Cloud, all our AI driving Asia Games, Xiaohongshu, infused with unique perspective, the video garnered 1.62 million views on BiliBili and ranked 30th on Weibo's Trending Topics List. Also as I mentioned previously, our sub-vertical medium services, Kia Auto continued to amplify brand influence, fostering new partnerships with renowned auto manufacturers, including BMW and Mercedes-Benz. Furthermore, we attended the 2023 IAA Mobility Event in Munich and auto show spanning major cities, including Guangzhou and Chengdu, delighting users with firsthand insight into the latest auto market dynamics through the wider variety of content displays formats, including images, texts, short videos, live streaming, and more, while further expanding our reach and partnerships in auto market. Meanwhile, empowered by AI technology, we set trends in digital human marketing by pioneering live streaming sales sessions, featuring digital [Indiscernible] in our Taobao store, an innovative initiative that has attracted the interest of many clients in addition corporation. In addition, we continue to expand and deepen AI applications across diverse scenario, capitalizing on our underlying technology's advantages in real-time interaction, visual effects, creative graphics, and other features to offer our users diversified AI making solutions, propelling the company's efficiency and sustainable growth. With respect to enterprise value-added services, in the third quarter, we remain committed to providing high quality services, leading to collaborations with additional corporate clients and government institutions. We hosted several industry-specific conferences during the quarter, involving Services Care Carbon Summit, Sustainable Value for Green Horizons, Innovate Digital Innovation Tour, deepening our engagement in these sub-verticals. Notably, at our Services Care Carbon Summit Sustainability Value for Green Horizons, experts, scholars, and stakeholders representing professional institutions, top tier platform, and leading consumer group companies from China and around the globe gathered together to dive into the latest trends shaping lower carbon consumption policy dynamics and the pioneering practices. The Summit achieved total online exposure exceeding 80 million views, underscoring 36Kr's pivotal role in fostering valuable connections among stakeholders in the new economic sectors. Another recent highlight was our Annual Flagship WISE Conference, which successfully concluded last week in Beijing. This year's theme centered on commercialization and cutting edge AI technologies. While WISE was previously focused solely on new economic participants, this year, we broadened the conference range to cover the entire business sector and updated its title accordingly to WISE 2023 [Indiscernible] of Business. We hosted over 300 distinguished commercials and economic experts, scholars, business elites, and investors including [Indiscernible], sparking ideas through thought provoking discussions. Quite a few of China's traditional industry icons also joined us at the WISE 2023, including [Indiscernible] enriching the event's diversity and offering fresh industry perspectives. WISE 2023 amassed over 1.030 billion views, further showcasing 36Kr's brand influence. Via our offline events, our consulting services and other enterprise value-added services continue to gain momentum during the quarter. 36Kr Research Institute further depended its industry insights, elevating our reputation through the publication of industry recent reports. On the commercialization front, we forged a collaborative consulting partnerships with government institutions in prominent cities such as Guangzhou, [Indiscernible] among others, as well as with industry giants, including Lenovo, [Indiscernible] Holdings Inc., Unicontact, and Pacific Insurance, among others. Furthermore, we have made consistent meaningful progress in our regional business expansion. Weiko hosted an AI Industry Development Summit titled AI Westlake with the government of Xihu District, Hangzhou, at the XPAA Conference 2023 to further explore innovative AI applications. Additionally, we launched a Connecting the Dot Along Investment Trails, a strategic initiative capitalizing our extensive resources across large scale traditional and innovative companies. This program aims to strengthen regional industry chains, address relevant shortfalls, and expand [ph] the integration of industry ecosystems. Our production of high quality content for this program has significantly increased user retention engagement. It's also worth mentioning that with the rise of R&D funds and the evolution of the guided funds, stakeholders in the new economic sector enjoying a plethora of investment options, maximizing the benefits of our robust brand advantages and adapt the resource alignment capabilities. We forged partnership with [Indiscernible], expanding our reach into regional markets to identify optimal financing channels and approaches for broader spectrum of enterprises. In addition, I'd like to highlight that our fund management subsidiary was recently successfully registered as a fund manager. This strategic move unleashed a fresh opportunities for us to facilitate deeper connections among industry stakeholders and investment institutions, while exploring involving possibilities for industry-wide cooperation, steering the company towards a new phase of growth. Regarding subscription services, revenue from subscription services increased by 62% year-over-year to RMB11.51 million during the quarter, bolstering our diversified course offerings and efficiencies, customer acquisition strategies. In addition to upgrades across our traditional training courses such as funding acceleration cap, we forced ahead with the development and expansion of high quality degree-based programs. For example, we made great progress on the postdoctoral research program we rolled out in collaboration with Keble College of the University of Oxford, further driving our revenue growth. In the meanwhile, we continue to add new courses to our portfolio and with the Can Do spirit, partnered with top universities worldwide to cultivate a high value-added training ecosystem, providing China-based senior executives with avenues to expand their careers globally. Moreover, with the widespread application of AI and on saving innovation in product intelligence, market demand for AI expert is growing increasingly urgent. We are actively embracing the business opportunities arising from this trend in collaboration with more AI-focused partners to expand and enrich our core offerings and training system with AI-related courses. Our strategic partnership cover AI cloud training and innovative talent development as well as industry-specific large language model solutions. Together with our partners, we are setting renewal benchmark for talent development in artificial intelligence, propelling the digital transformation of a wide range of enterprises. In the macroeconomic uncertainties, there has been a sustained increase in user demand for sub engagement, consequently, the training sector outperformed market trends in a counter-cycling fashion, aligned with the wisdom of the saying to do a good job, one must first sharpen the tools. Our user self-improvement has translated into overall enhancement of their performance and the efficiency incorporate workplaces. We are confident that as a company, we invest in the training field, we will further enrich our course offerings, constantly enhance our training system and continuously expand our consumer base. We expect a significant growth potential for our subscription services as we move forward. In short, we maintained encouraging growth momentum in the third quarter of 2023. Our total revenue increased by 2.5% year-over-year to RMB97 million, with revenue from our advertising business up 11% year-over-year outpacing market trends. Notably revenue from our subscription services surged by 62% year-over-year and our gross margin remained high at 56%, a compelling testament to the resilience and the vibrance of our business as we adapt navigate macro challenges. In the meantime, we redoubled our efforts across content formats, including images, texts, short and long videos, audio, podcast, and live streaming among others, fostering a sophisticated full spectrum content metrics. The number of our followers surpassed 32 billion, expanding its growth stake for a 10 straight quarter. Looking ahead, building on our peerless content, formidable brand influence and keen sense of innovation, we will actively forge new partnerships with global industry leaders, while resiliency exploring innovative AI applications, propelling the company's enduring excellence and sustainable growth. With that, I will now turn the call over to our CFO, Mr. Lin Wei, who will discuss our key financial results. Please go ahead, Lin.

Thank you, Pal. Now, I'd like to walk you through more details of our Q3 financial results. Please note all amount numbers are in RMB unless otherwise stated. Total revenues increased by 2.5% year-over-year to RMB97 million in the Q3 of 2023, up from RMB94.6 million in the same period of last year. Online advertising services revenues increased by 11% RMB71.2 million in the Q3 of 2023 compared to RMB63.9 million in the same period of last year. The increase was primarily attributable to more innovative marketing solutions we provided to our customers. Enterprise value-added services revenues were RMB14.2 million in the third quarter of 2023 compared to RMB23.6 million in the same period of last year. The decrease was mainly due to the negative impact of macroeconomic uncertainties. Also our offline events are not scheduled evenly throughout the year and it turned out there were relatively fewer events during the third quarter. Subscription services revenues increased by 62% to RMB11.5 million in the third quarter of 2023 compared to RMB7.1 million in the same period of last year. The increase was primarily attributable to our continuous efforts to offer high quality subscription products and training programs to our subscribers. For example, in the Q3, we rolled out the postdoctoral research program that we collaborated with the University of Oxford, which was well-received by our high end subscribers and helped boost our subscription revenues growth during the quarter. Cost of revenues was RMB42.3 million in the third quarter of 2023 compared to RMB35.5 million in the same period of last year. The increase was primarily due to higher fulfillment costs and content costs. Gross profit was RMB54.6 million in the third quarter of 2023 compared to RMB59.1 million in the same period of last year. Gross profit margin was 56% in the third quarter of 2023 compared to 62% in the same period of last year. Operating expenses were RMB77.5 million in the third quarter of 2023 compared to RMB62.1 million in the same period of last year. Sales and marketing expenses were RMB32.4 million in the third quarter of 2023, an increase of 1% from RMB32.2 million in the same period of last year. The slight increase was largely due to the increase in payroll-related expenses, partially offset by the decrease in marketing-related expenses. G&A expenses was RMB36.9 million in the third quarter of 2023, a 123% increase compared to RMB16.6 million in the same period of last year. This fluctuation was primarily attributable to certain one-off expenses, including severance payments as we optimized our organization and office lease termination fees incurred in the quarter, as well as the increase in allowance for credit losses. Research and development expenses were RMB8.3 million in the third quarter of 2023, a decrease of 38% from RMB13.4 million in the same period of last year, as we continued to proactively embrace AI technology and streamlined our research and development teams, resulting in a decrease in payroll-related expenses. Peer-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, as well as G&A expenses totaled RMB1.4 million in the third quarter of 2023 compared to RMB2.6 million in the same period of last year. Other income was RMB4 million in the third quarter of 2023 compared to RMB5.7 million in the same period of last year. Net loss was RMB18.9 million in the third quarter of 2023 compared to net income of RMB2.5 million in the same period of last year. Non-GAAP adjusted net loss was RMB17.5 million in the third quarter of 2023 compared to non-GAAP adjusted net income of RMB5.1 million in the same period of last year. Net loss attributable to 36Kr's ordinary shareholders was RMB18.9 million in the third quarter of 2023 compared to net income attributable to 36Kr's ordinary shareholders of RMB1.7 million in the same period of last year. Basic and diluted net loss per ADS were both RMB0.45 in the third quarter of 2023 compared to basic and diluted net income per ADS of RMB0.04 in the same period of last year. As of September 30th, 2023, the company had cash, cash equivalents, restricted cash, and short-term investments of RMB116 million compared to RMB136.5 million as of June 30th, 2023. The increase was mainly attributable to small-sized long-term investments in certain new economies entities we made in the third quarter of 2023, as well as net cash outflow from operating activities. If we exclude the previously mentioned one-off payments relating to the optimization of our organization and moving our headquarters office, which altogether amounted to over RMB25 million during the third quarter, our cash position actually would have increased quarter-over-quarter. This concludes all of our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

Thank you. [Operator Instructions] Today's first question comes from Shen [ph] Zhao with CICC. Please go ahead.

[Foreign Language] Congratulations to the solid performance in the Q3. And how does the management view the fourth quarter and next year's advertising revenue trend? Thank you.

[Foreign Language] The third quarter brought sustained and robust growth momentum in our advertising business with year-over-year revenue growth of 11%. As the market gradually stabilized, we noted an encouraging rebound in demand for advertising compared with previous launches. Our branding and performance based one-stop advertising solutions have earned a substantial trust and support from clients, sparkling steady growth. Our advertising consumer base includes [Indiscernible], Internet Giants and the Fortune Global 500 companies as well as China's traditional industrial icons such as [Indiscernible], steady growth of advertisement placement by these companies propelled a year-over-year increase in our ARPU of 20%. Meanwhile, we also offer and a versatile services to emerging industry players, catering to their diverse advertising and marketing needs with graphics, texts and the long and short videos among other formats. For the fourth quarter, we maintained a cautiously optimistic outlook for our advertising business. To drive continued growth in our advertising business, we will further enhance our content influence, strengthen our in-depth cooperation with advertisers, and actively explore AI marketing and other new marketing channels to create more growth opportunities for advertising.

Thank you. Next question, please.

Thank you. [Operator Instructions] Our next question comes from Lingyi Zhao with SWS Research. Please go ahead.

[Foreign Language] Congrats with good results and I have two questions. The first one was both long and short video segments recorded robust growth on a sustained basis, what plan do you have to in place to unlock further growth potential? And my second question is, the company's gross margin remained fairly high in Q3. What has the company achieved in cost reduction and efficiency enhancements? Thank you.

[Foreign Language] We have consistently prioritized content innovation and diversification for short videos. Our lineup already covers diverse topics ranging from technology, innovation, and business insights to lifestyle posted across popular short video media platforms, including BiliBili, Douyin, and Kuaishou. Our subvertical medium, 36Kr is also worth highlighting. Since its launch during the first half of 2023, 36Kr also has made great progress in terms of content quantity and user engagement with a surging number of likes and followers. We have also initiated partnerships with top tier automakers such as BMW and Mercedes-Benz. As of the end of the quarter, we had over 8.5 million short video followers, up 41% year-over-year, among which more than 2.50 million were BiliBili users. In the swiftly involving landscape of social media platforms, short videos have emerged as a crucial channel for user interaction and social engagement, earning widespread favor among advertisers. Short video ad also boasted a higher ARPU compared to other advertising formats further propelling the company's overall advertising revenue. Regarding long videos this year, I hosted a long video show for say in 2023. The show featured enlightening conversations with visionaries including Wang Shi [ph], Robin Li, Charles Dixiao, Jia Jing, Fei Yang and Kevin Kelly, which deeply engage a diverse audience. The first season has successfully concluded with a total online exposure of over 250 million views and the second season is currently arriving on Youku and Beijing radio and the television station. Looking ahead at 2024, we will continue to expand our footprint in long videos. We have three to four new programs in our long video pipeline, which are set to further enrich our content ecosystem.

Hi, Lingyi, thank you for your question on gross margin and the financials. This is Lin. I will take your question. So, first of all, we continue to take rigorous cost control measures and optimize our cost structure. That's why we were able to maintain our gross margin at relatively high level, which is 56% level in the third quarter. And on top of gross margin, actually I want to highlight further that we are also taking initiatives to improve our operating margin as well. So, to cut our spending, actually in the third quarter, we have taken several measures. For example, we moved our headquarter office to a relatively lower rental building in the third quarter. And secondly, we continue to increase AI technology, which enables us to streamline our R&D team and which resulted in some cost savings in the payroll side as well. So, if you take a look at our operating expenses in Q3, although there were temporarily some one-off impact in Q3, because we have to pay some severance compensation, as well as terminating the old lease contract, we need to pay some compensation expenses. So, that hit our third quarter, but that's temporary and that's only a one-off issue. And if you take a long-term view at our these initiatives, those two measures altogether will give us a spending cut of at least RMB30 million on an annual basis. So, that's quite improvement on our operating margin. And going forward, on one hand, we will continue to grow our revenues and on the other hand, we will continue to embrace AI technology to more diversified business scenarios, so to cut our cost and further cut our spending. So, overall, we will improve our gross margin as well as operating leverage. Thank you.

Thank you. And our next question comes from Peipei Qiu with Industrial Securities. Please go ahead.

[Foreign Language] Thank you management for taking my question. As you already explained how AI played a very important role in improving efficiency, but could you share more details about eventually AI helped make money? So, could you share like your monetization counts in this area? Thank you.

[Foreign Language] 36Kr has clearly demonstrated its vision and keen [Indiscernible] with respect to generative AI. Following last quarter's Pioneering AI-powered live streaming sales sessions, featuring digital humans in our Taobao store, during the third quarter, we collaborated with Alibaba Cloud and leveraged its large AI model, Tongyi, to create our Asia Games blogger on Xiaohongshu garnering significant visibility and engagement. On the advertising front, we are actively exploring and applying AI technology to enhance marketing effectiveness and craft innovative strategies. This includes personnel advertising content generation and advertising placement as well as intelligent decision-making based on data analytics. By consistently extending our footprint in AI marketing, we seek to provide our clients with marketing solutions that are smarter, more efficient and more innovative. Additionally, we joined hand with top tier investor players, including [Indiscernible] to deepen AIGC applications in analyzing financial statements as well as reporting on the primary market, delivering more comprehensive, more agile, higher quality offerings to a broad spectrum of companies at exceptional cost to benefit [Indiscernible]. Thank you.

Thank you. And our next question comes from [Indiscernible] with Sealand Securities. Please go ahead.

[Foreign Language] What specific factors contributed to the rapid growth in company's subscription services and new growth strategies in time for this segment?

[Foreign Language] The rapid growth in our subscription services was primarily propelled by the launch of our high-risk [Indiscernible] programs. This quarter, we joint hands with Keble College of the University of Oxford, and launched a new degree-based program, vastly boosting our ARPU to over RMB68,000. Meanwhile, we continue to enrich the high quality training courses offered through our venture capital class and funding acceleration cap. Our diverse and engaging course offerings brought top tier learning experiences to users drawing extensive [Indiscernible]. Looking ahead, we aim for additional partnership with top universities worldwide on more international MBA programs such as University of Oxford, University of Leeds, Queen Marine University of London, [Indiscernible] DraftKings University in the UK and INSEEC Business School in France, providing China based linear with [Indiscernible] to expand their careers globally. Moreover, with the vibrant advancement of AI innovation, we noticed an increase in people's demand for learning and harness AI technology. To address this demand, we are actively working with leading AI companies based in China to jointly develop AI focused training programs, enabling participants to have a better grasp of AI technology and practical skills. Thank you.

Thank you. As there are no further questions, I'd now like to turn the call back over to the company for closing remarks.

Thank you once again for joining us today. If you have further questions, please feel free to contact the 36Kr Investor Relations through the contact information provided in our website.

Thank you.

Thank you. This concludes this conference call. You may now disconnect your lines and have a wonderful day.