Press Release: 36Kr Holdings Inc. Reports Third Quarter of 2019 Unaudited Financial Results
36Kr Holdings Inc. Reports Third Quarter of 2019 Unaudited Financial Results
BEIJING, Dec. 10, 2019 (GLOBE NEWSWIRE) -- 36Kr Holdings Inc. ("36Kr" or the "Company" or "We") (NASDAQ: KRKR), a prominent brand and a pioneering platform dedicated to serving New Economy participants in China, today announced its unaudited financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Operational and Financial Highlights
-- Average monthly page views ("PV") for the twelve-month period ended
September 30, 2019 was 389.5 million, compared to 145.6 million for the
twelve-month period ended September 30, 2018.
-- Total revenues increased by 59.1% to RMB130.9 million (US$18.3 million)
in the third quarter of 2019, from RMB82.3 million in the same period of
2018.
-- Online advertising services revenues increased by 4.6% to RMB54.1 million
(US$7.6 million) in the third quarter of 2019, from RMB51.7 million in
the same period of 2018.
-- Enterprise value-added services revenues increased by 202.8% to
RMB64.0 million (US$9.0 million) in the third quarter of 2019, from
RMB21.1 million in the same period of 2018.
-- Subscription services revenues increased by 36.2% to RMB12.9 million
(US$1.8 million) in the third quarter of 2019, from RMB9.4 million in the
same period of 2018.
-- Gross profit increased by 23.3% to RMB55.1 million (US$7.7 million) in
the third quarter of 2019, from RMB44.7 million in the same period of
2018.
-- Net loss was RMB12.4 million (US$1.7 million) in the third quarter of
2019, compared to net income of RMB9.8 million in the same period of
2018. Non-GAAP adjusted net income1 increased by 22.0% to RMB13.4 million
(US$1.9 million) in the third quarter of 2019, from RMB11.0 million in
the same period of 2018.
First Nine Months 2019 Operational and Financial Highlights
-- Total revenues increased by 115.1% to RMB332.8 million (US$46.6 million)
in the first nine months of 2019, from RMB154.7 million in the same
period of 2018.
-- Online advertising services revenues increased by 30.1% to
RMB133.6 million (US$18.7 million) in the first nine months of 2019, from
RMB102.7 million in the same period of 2018.
-- Enterprise value-added services revenues increased by 337.4% to
RMB165.0 million (US$23.1 million) in the first nine months of 2019, from
RMB37.7 million in the same period of 2018.
-- Subscription services revenues increased by 139.0% to RMB34.2 million
(US$4.8 million) in the first nine months of 2019, from RMB14.3 million
in the same period of 2018.
-- Gross profit increased by 72.1% to RMB118.8 million (US$16.6 million) in
the first nine months of 2019, from RMB69.1 million in the same period of
2018.
______________________
(1) Non-GAAP adjusted net income represents net income excluding share-based compensation.
Selected Operating Data
For the Nine Months Ended September 30,
2018 2019
Online advertising services
Number of online advertising
services end customers 224 329
Average revenue per online
advertising services end
customer (RMB'000)(2) 458.3 406.0
Enterprise value-added
services
Number of enterprise
value-added services end
customers 119 241
Average revenue per enterprise
value-added services end
customer (RMB'000)(3) 317.1 684.8
Subscription services
Number of individual
subscribers 39,657 14,052
Average revenue per individual
subscriber (RMB)(4) 152.3 1,377.1
Number of institutional
investor subscribers 103 127
Average revenue per
institutional investor
subscriber (RMB'000)(5) 80.3 101.3
Number of enterprise
subscribers - 262
Average revenue per enterprise
subscriber (RMB'000)(6) - 7.5
______________________
(2) Equals revenues generated from online advertising services for a period divided by the number of online advertising services end customers in the same period.
(3) Equals revenues generated from enterprise value-added services for a period divided by the number of enterprise value-added services end customers in the same period.
(4) Equals revenues generated from individual subscription services for a period divided by the number of individual subscribers in the same period.
(5) Equals revenues generated from institutional investor subscription services for a period divided by the number of institutional investor subscribers in the same period.
(6) Equals revenues generated from enterprise subscription services for a period divided by the number of enterprise subscribers in the same period.
Mr. Dagang Feng, co-chairman and chief executive officer of 36Kr, commented, "We delivered solid performance in the third quarter of 2019. Our average monthly PV for the twelve-month period ended September 30, 2019 was 389.5 million, representing a rapid year-over-year increase of 167.5%. This impressive PV growth was driven by our attractive and extensive New Economy-focused content distributed through a variety of channels, and reflected our expanding user base and ever-growing influence in the New Economy community.
"Along with significant traffic growth, our value proposition is resonating with customers as we achieved total revenues of RMB130.9 million for the third quarter of 2019, up 59.1% as compared to the same period in 2018. Of special note, our revenue from enterprise value-added services and subscription services grew 202.8% and 36.2%, respectively, as compared to the same period in 2018. The rapid growth of these two business segments and their greater contribution to our topline demonstrate the successful execution of our strategy to evolve ourselves into a service-focused enabler for New Economy participants. Going forward, we will remain focused on solidifying our advantages in high-quality content creation and distribution both domestically and globally, while proactively expanding our service offerings to strengthen our monetization capabilities. We believe, with the strong growth of the New Economy, there is great market potential for our comprehensive services to our customers and vibrant community. We are dedicated to being their partner of choice and empowering them to achieve more business success," Mr. Feng concluded.
Ms. Jihong Liang, director and chief financial officer of 36Kr, stated, "In the third quarter of 2019, we achieved robust topline results underpinned by our strong growth of enterprise value-added services as we provided tailored and diverse services to our customers. We are also pleased to yield positive Non-GAAP EBITDA and Non-GAAP net income for the quarter, showcasing our improving profitability coupled with encouraging business growth. To better position ourselves in driving key growth initiatives in the coming quarters, we made an upfront investment in additional headcount during the third quarter. As such, we expect headcount to remain stable for the remainder of 2019. Although the investment in headcount resulted in a relatively higher level of expenses, we believe it is necessary for us to be well prepared for grasping the market opportunities in the peak season ahead. Together with our unwavering efforts in technology enhancement, we are ready to embrace the growth of the New Economy with our customers."
Third Quarter 2019 Financial Results
Total revenues were RMB130.9 million (US$18.3 million) in the third quarter of 2019, compared to RMB82.3 million in the same period of 2018.
-- Online advertising services revenues increased by 4.6% to RMB54.1 million
(US$7.6 million) in the third quarter of 2019, from RMB51.7 million in
the same period of 2018. The increase was mainly attributable to an
increased number of end customers.
-- Enterprise value-added services revenues increased by 202.8% to
RMB64.0 million (US$9.0 million) in the third quarter of 2019, from
RMB21.1 million in the same period of 2018. The increase was primarily
attributable to the increase of integrated marketing service revenues and
business consulting services revenues.
-- Subscription services revenues increased by 36.2% to RMB12.9 million
(US$1.8 million) in the third quarter of 2019, from RMB9.4 million in the
same period of 2018. This increase was primarily attributable to the
increase of individual subscription services revenues in the third
quarter of 2019.
Cost of revenues increased by 101.7% to RMB75.8 million (US$10.6 million) in the third quarter of 2019, from RMB37.6 million in the same period of 2018. This increase was generally in line with the growth of the Company's business. Site fee and execution fee of enterprise value-added services and offline training were the main contributors to the increase in cost of revenues.
Gross profit increased by 23.3% to RMB55.1 million (US$7.7 million) from RMB44.7 million in the same period of 2018.
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Press Release: 36Kr Holdings Inc. Reports Third -2-
Operating expenses were RMB77.9 million (US$10.9 million) in the third quarter of 2019, compared to RMB32.6 million in the same period of 2018. The increase was mainly due to increases in general and administrative expenses and sales and marketing expenses in the third quarter of 2019.
-- Sales and marketing expenses increased by 69.0% to RMB31.8 million
(US$4.4 million) in the third quarter of 2019, compared to RMB18.8
million in the same period of 2018. The increase was primarily
attributable to an increase in payroll-related expenses in relation to
hiring new sales and marketing staff and rental expenses in relation to
office expansion.
-- General and administrative expenses increased by 473.8% to
RMB37.4 million (US$5.2 million) in the third quarter of 2019, compared
to RMB6.5 million in the same period of 2018. The increase was primarily
attributable to an increase in payroll-related expenses in relation to
hiring new general and administrative staff and also an increase in
share-based compensation expenses resulted from the newly granted share
option in the third quarter of 2019.
-- Research and development expenses increased by 20.1% to RMB8.7 million
(US$1.2 million) in the third quarter of 2019, compared to RMB7.2 million
in the same period of 2018. The increase was primarily attributable to an
increase in payroll-related expenses in relation to hiring more research
and development staff.
Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses and general and administrative expenses in total were RMB25.8 million (US$3.6 million) in the third quarter of 2019 and RMB1.2 million in the same period of 2018.
Other income increased by 476.1% to RMB12.8 million (US$1.8 million) in the third quarter of 2019, from RMB2.2 million in the same period of 2018. The increase was primarily attributable to the realized disposal gain associated with the overseas business investment in the third quarter of 2019.
Income tax expenses decreased by 47.8% to RMB2.4 million (US$0.3 million) in the third quarter of 2019, compared to RMB4.6 million in the same period of 2018. The decrease was primarily contributable to the change of profitability of certain subsidiaries.
Net loss was RMB12.4 million (US$1.7 million) in the third quarter of 2019, compared to net income of RMB9.8 million in the same period of 2018. Non-GAAP adjusted net income(7) increased by 22.0% to RMB13.4 million (US$1.9 million) in the third quarter of 2019, from RMB11.0 million in the same period of 2018.
Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB635.6 million (US$88.9 million), compared to RMB28.5 million in the same period of 2018. The increase was primarily contributed to an increase of accretion of the convertible redeemable preferred shares and the effect of re-designation of shares.
Basic and diluted net loss per share were both RMB2.535 (US$0.355) in the third quarter of 2019, compared to RMB0.097 in the same period of 2018.
Certain Balance Sheet Items
As of September 30, 2019, the Company had cash and cash equivalents and short-term investments of RMB267.3 million (US$37.4 million), compared to RMB194.4 million as of December 31, 2018.
______________________
(7) Non-GAAP adjusted net income represents net income excluding share-based compensation.
First Nine Months 2019 Financial Results
Total revenues were RMB332.8 million (US$46.6 million) in the first nine months of 2019, compared to RMB154.7 million in the same period of 2018.
-- Online advertising services revenues increased by 30.1% to
RMB133.6 million (US$18.7 million) in the first nine months of 2019, from
RMB102.7 million in the same period of 2018. The increase was mainly
attributable to an increased number of end customers.
-- Enterprise value-added services revenues increased by 337.4% to
RMB165.0 million (US$23.1 million) in the first nine months of 2019, from
RMB37.7 million in the same period of 2018. The increase was primarily
attributable to the increase of integrated marketing service revenues and
business consulting services revenues.
-- Subscription services revenues increased by 139.0% to RMB34.2 million
(US$4.8 million) in the first nine months of 2019, from RMB14.3 million
in the same period of 2018. This increase was primarily attributable to
the increase of individual subscription services revenues associated with
the increased offline trainings held in the first nine months of 2019.
Cost of revenues increased by 149.8% to RMB214.0 million (US$29.9 million) in the first nine months of 2019, from RMB85.6 million in the same period of 2018. This increase was primarily attributable to the increase of site fee and execution fee of enterprise value-added services, offline trainings and advertisement production costs.
Gross profit increased by 72.1% to RMB118.8 million (US$16.6 million) in the first nine months of 2019, from RMB69.1 million in the same period of 2018.
Operating expenses were RMB191.5 million (US$26.8 million) in the first nine months of 2019, compared to RMB71.3 million in the same period of 2018. The increase was mainly due to increases in general and administrative expenses and sales and marketing expenses.
-- Sales and marketing expenses increased by 88.7% to RMB81.6 million
(US$11.4 million) in the first nine months of 2019, compared to RMB43.3
million in the same period of 2018. The increase was primarily
attributable to an increase in payroll-related expenses in relation to
hiring new sales and marketing staff.
-- General and administrative expenses increased by 482.3% to
RMB84.3 million (US$11.8 million) in the first nine months of 2019,
compared to RMB14.5 million in the same period of 2018. The increase was
primarily attributable to an increase in payroll-related expenses in
relation to hiring new general and administrative staff and also an
increase in share-based compensation expenses resulted from the
re-designation of ordinary shares into the convertible redeemable
preferred shares and the newly granted share option in the first nine
months of 2019.
-- Research and development expenses increased by 88.9% to RMB25.6 million
(US$3.6 million) in the first nine months of 2019, compared to
RMB13.6 million in the same period of 2018. The increase was primarily
attributable to an increase in payroll-related expenses in relation to
hiring more research and development staff.
Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses and general and administrative expenses in total were RMB54.9 million (US$7.7 million) in the first nine months of 2019 and RMB3.9 million in the same period of 2018.
Other income increased by 188.5% to RMB15.1 million (US$2.1 million) in the first nine months of 2019 from RMB5.2 million in the same period of 2018. The increase was primarily attributable to realized disposal gain associated with the overseas business investment in the third quarter of 2019.
Income tax expenses decreased by 82.0% to RMB0.3 million (US$39.0 thousand) in the first nine months 2019, compared to RMB1.5 million in the same period of 2018. The decrease was primarily contributable to the change of profitability of certain subsidiaries.
Net loss was RMB57.9 million (US$8.1 million) in the first nine months of 2019, compared to a net income of RMB1.5 million in the same period of 2018. Non-GAAP adjusted net loss was RMB3.0 million (US$0.4 million) in the first nine months of 2019, compared to a Non-GAAP adjusted net income of RMB5.4 million in the same period of 2018.
Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB949.1 million (US$132.8 million), compared to RMB49.7 million in the same period of 2018. The increase was mainly due to the accretion increase associated with the convertible redeemable preferred shares and the effect of re-designation of shares.
Basic and diluted net loss per share were both RMB3.239 (US$0.453) in the first nine months of 2019, compared to RMB0.170 in the same period of 2018.
Recent developments
Overseas business investment
On September 25, 2019, the Company entered into an investment agreement with Lotus Walk Inc. ("Lotus"), pursuant to which Lotus agreed to subscribe 51% of the equity interest of the Company's overseas business, to jointly explore business opportunities in overseas markets. Upon completion of the subscription of shares, the Company invested US$6.0 million cash in October 2019 and Lotus agreed to invest digital resources to support the overseas business development. As a result, the Company deconsolidated the overseas business on September 25, 2019 and the remaining equity interest held in the overseas business is measured as an equity method investment.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on December 10, 2019 (9:00 PM Beijing/Hong Kong Time on December 10, 2019).
Dial-in details for the earnings conference call are as follows:
United States: +1-866-519-4004
International: +65-6713-5090
Hong Kong, China: 800-906-601
Mainland China: 400-620-8038
Conference ID: 9808228
Participants should dial-in approximately 5 minutes before the scheduled start time and ask to be connected to the call for "36Kr Holdings Inc."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.36kr.com.
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Press Release: 36Kr Holdings Inc. Reports Third -3-
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until December 17, 2019, by dialing the following telephone numbers:
United States: +1-855-452-5696
International: +61-2-8199-0299
Hong Kong, China: 800-963-117
Mainland China: 400-632-2162
Replay Access Code: 9808228
About 36Kr Holdings Inc.
36Kr Holdings Inc. is a prominent brand and a pioneering platform dedicated to serving New Economy participants in China with the mission of empowering New Economy participants to achieve more. The Company started its business with high-quality New Economy-focused content offerings, covering a variety of industries in China's New Economy with diverse distribution channels. Leveraging traffic brought by high-quality content, the Company has expanded its offerings to business services, including online advertising services, enterprise value-added services and subscription services to address the evolving needs of New Economy companies and upgrading needs of traditional companies. The Company is supported by comprehensive database and strong data analytics capabilities. Through diverse service offerings and the significant brand influence, the Company is well-positioned to continuously capture the high growth potentials of China's New Economy.
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses two non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess its operating performance. The presentation of these two non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the Company's management to evaluate its operating performance and formulate business plans. The Company also believes that the use of these non-GAAP measures facilitates investors' assessment of its operating performance.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensates for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.
Adjusted net income/(loss) represents net income/(loss) excluding share-based compensation.
Adjusted EBITDA represents adjusted net income/(loss) before interest income, interest expenses, income tax expense/(credit), depreciation of property and equipment and amortization of intangible assets.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB7.1477 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on of September 30, 2019.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goal and strategies; the Company's future business development, results of operations and financial condition; relevant government policies and regulations relating to our business and industry; the Company's expectations regarding the use of proceeds from this offering; the Company's expectations regarding demand for, and market acceptance of, its services; the Company's ability to maintain and enhance its brand; the Company's ability to provide high-quality content in a timely manner to attract and retain users; the Company's ability to retain and hire quality in-house writers and editors; the Company's ability to maintain cooperation with third-party professional content providers; the Company's ability to maintain relationship with third-party platforms; general economic and business condition in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
36Kr Holdings Inc.
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com
The Piacente Group, Inc.
Xi Zhang
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: 36Kr@tpg-ir.com
36Kr Holdings Inc.
Unaudited Condensed Consolidated Balance Sheets
December 31, September 30, September 30,
2018 2019 2019
RMB'000 RMB'000 US$'000
Assets
Current assets:
Cash and cash
equivalents 48,968 207,567 29,040
Short--term
investments 145,451 59,724 8,356
Accounts receivable,
net 182,269 320,906 44,896
Receivables due from
related parties 11,018 19,563 2,737
Prepayments and other
current assets 11,686 35,240 4,930
Total current assets 399,392 643,000 89,959
Non--current assets:
Property and
equipment, net 15,472 16,049 2,245
Intangible assets, net 255 367 51
Equity method
investments - 42,441 5,938
Deferred tax assets 306 1,623 227
Total non--current
assets 16,033 60,480 8,461
Total assets 415,425 703,480 98,420
Liabilities
Current liabilities:
Accounts payable 20,270 63,668 8,907
Salary and welfare
payables 36,160 36,623 5,124
Taxes payable 16,917 9,163 1,282
Deferred revenue 4,227 13,812 1,932
Amounts due to related
parties 1,979 43,411 6,073
Accrued liabilities and
other payables 5,152 44,427 6,216
Total current
liabilities 84,705 211,104 29,534
Total liabilities 84,705 211,104 29,534
Mezzanine equity
Series A-1 convertible
redeemable preferred
shares 681 41,804 5,849
Series A-2 convertible
redeemable preferred
shares 13,500 77,494 10,842
Series B-1 convertible
redeemable preferred
shares 388,145 934,138 130,691
Series B-2 convertible
redeemable preferred
shares 45,000 61,923 8,663
Series B-3 convertible
redeemable preferred
shares 48,016 237,100 33,172
Series B-4 convertible
redeemable preferred
shares 36,000 89,035 12,456
Series C-1 convertible
redeemable preferred
shares 277,259 297,746 41,656
Series C-2 convertible
redeemable preferred
shares - 36,977 5,173
Series D convertible
redeemable preferred
shares - 169,923 23,773
Redeemable
non-controlling
interests 7,731 - -
Total mezzanine equity 816,332 1,946,140 272,275
Shareholders' deficit
Ordinary shares 184 147 21
Treasury stock - (2,333) (327)
Accumulated deficit (486,027) (1,456,999) (203,842)
Accumulated other
comprehensive
income/(loss) 231 147 21
Total 36Kr Holdings
Inc.'s shareholders'
(deficit)/equity (485,612) (1,459,038) (204,127)
Non-controlling
interests - 5,274 738
Total shareholders'
deficit (485,612) (1,453,764) (203,389)
Total liabilities,
mezzanine equity and
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Press Release: 36Kr Holdings Inc. Reports Third -4-
shareholders' deficit 415,425 703,480 98,420
36Kr Holdings Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2018 2019 2019 2018 2019 2019
RMB'000 RMB'000 US$'000 RMB'000 RMB'000 US$'000
Revenues:
Online
advertising
services 51,705 54,082 7,567 102,665 133,559 18,685
Enterprise
value-added
services 21,128 63,974 8,950 37,736 165,046 23,091
Subscription
services 9,449 12,867 1,800 14,309 34,192 4,784
Total revenues 82,282 130,923 18,317 154,710 332,797 46,560
Cost of revenues (37,605) (75,837) (10,610) (85,647) (213,957) (29,934)
Gross profit 44,677 55,086 7,707 69,063 118,840 16,626
Operating expenses:
Sales and
marketing
expenses (18,794) (31,756) (4,443) (43,256) (81,636) (11,421)
General and
administrative
expenses (6,521) (37,416) (5,235) (14,470) (84,265) (11,789)
Research and
development
expenses (7,241) (8,695) (1,216) (13,576) (25,643) (3,588)
Total operating
expenses (32,556) (77,867) (10,894) (71,302) (191,544) (26,798)
Income/(Loss) from
operations 12,121 (22,781) (3,187) (2,239) (72,704) (10,172)
Other
income/(expenses):
Share of loss
from equity
method
investments (741) - - (2,794) - -
Gain on disposal
of a subsidiary - 11,454 1,602 - 11,454 1,602
Short-term
investment
income 2,459 880 123 7,477 3,261 456
Others, net 503 462 65 556 399 57
Income/(Loss)
before income tax 14,342 (9,985) (1,397) 3,000 (57,590) (8,057)
Income tax expenses (4,561) (2,383) (333) (1,532) (276) (39)
Net income/(loss) 9,781 (12,368) (1,730) 1,468 (57,866) (8,096)
Accretion on
redeemable
non-controlling
interests to
redemption
value (350) (1,477) (207) (688) (1,808) (252)
Accretion of
convertible
redeemable
preferred shares
to redemption
value (37,967) (276,012) (38,615) (50,518) (517,023) (72,334)
Re-designation of
Series A-1 into
Series B-3
convertible
redeemable
preferred
shares - - - - (26,787) (3,748)
Re-designation of
ordinary shares
into Series A-1,
A-2, B-1, B-2,
B-3, and
issuance of
Series A-1, A-2,
B-1, B-2, B-3
preferred shares
without
consideration - (309,984) (43,368) - (309,984) (43,368)
Re-designation of
ordinary shares
into Series C-2 - (36,977) (5,173) - (36,977) (5,173)
Net loss
attributable to
non-controlling
interests - 1,215 169 - 1,351 188
Net loss
attributable to
36Kr Holdings
Inc.'s ordinary
shareholders (28,536) (635,603) (88,924) (49,738) (949,094) (132,783)
Net income/(loss) 9,781 (12,368) (1,730) 1,468 (57,866) (8,096)
Other comprehensive
income/(loss)
Foreign currency
translation
adjustments 201 (82) (12) 265 (85) (12)
Total other
comprehensive
income/(loss) 201 (82) (12) 265 (85) (12)
Total comprehensive
income/(loss) 9,982 (12,450) (1,742) 1,733 (57,951) (8,108)
Accretion on
redeemable
non-controlling
interests to
redemption
value (350) (1,477) (207) (688) (1,808) (252)
Accretion of
convertible
redeemable
preferred shares
to redemption
value (37,967) (276,012) (38,615) (50,518) (517,023) (72,334)
Re-designation of
Series A-1 into
Series B-3
convertible
redeemable
preferred
shares - - - - (26,787) (3,748)
Re-designation of
ordinary shares
into Series A-1,
A-2, B-1, B-2,
B-3, and
issuance of
Series A-1, A-2,
B-1, B-2, B-3
preferred shares
without
consideration - (309,984) (43,368) - (309,984) (43,368)
Re-designation of
ordinary shares
into Series C-2 - (36,977) (5,173) - (36,977) (5,173)
Net loss
attributable to
non-controlling
interests - 1,215 169 - 1,351 188
Comprehensive loss
attributable to
36Kr Holding
Inc.'s ordinary
shareholders (28,335) (635,685) (88,936) (49,473) (949,179) (132,795)
Net loss per share
attributable to
36Kr Holding Inc.'s
shareholders
-Basic (0.097) (2.535) (0.355) (0.170) (3.239) (0.453)
-Diluted (0.097) (2.535) (0.355) (0.170) (3.239) (0.453)
Weighted average
number of shares
-Basic 293,613,084 250,756,678 250,756,678 292,148,436 281,664,251 281,664,251
-Diluted 293,613,084 250,756,678 250,756,678 292,148,436 281,664,251 281,664,251
36Kr Holdings Inc.
Unaudited Reconciliations of GAAP and Non-GAAP Results
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2018 2019 2019 2018 2019 2019
RMB'000 RMB'000 US$'000 RMB'000 RMB'000 US$'000
Net
income/(loss) 9,781 (12,368) (1,730) 1,468 (57,866) (8,096)
Share-based
compensation
expenses 1,186 25,750 3,603 3,920 54,858 7,675
Non-GAAP
adjusted net
income/(loss) 10,967 13,382 1,873 5,388 (3,008) (421)
Interest
expense, net 18 101 14 7 147 21
Income tax
expense 4,561 2,383 333 1,532 276 39
Depreciation
and
amortization
expenses 300 900 126 788 2,815 393
Non-GAAP
adjusted
EBITDA 15,846 16,766 2,346 7,715 230 32
(END) Dow Jones Newswires
December 10, 2019 06:00 ET (11:00 GMT)
*DJ 36Kr Holdings 3Q Rev $18.3M >KRKR
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
December 10, 2019 06:00 ET (11:00 GMT)
*DJ 36Kr Holdings 3Q Loss $1.7M >KRKR
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
December 10, 2019 06:00 ET (11:00 GMT)
*DJ 36Kr Holdings 3Q Loss/Shr 36c >KRKR
(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)
December 10, 2019 06:01 ET (11:01 GMT)
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