36Kr - H1 2024

Transcript

Operator (participant)

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s 2024 first half year 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 will now turn the call over to your host, Yun Wang, IR Manager of the company. Please go ahead, Yun.

Yun Wang (IR Manager)

Thank you very much. Hello, everyone, and welcome to 36Kr Holdings Inc.'s 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, 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 involving 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 in this conference call include discussion 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. Feng, please go ahead. Thank you. Hello, everyone. Thank you for joining our first half 2024 earnings conference call. Despite persistent market challenges in the first half of 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 Q2, we had over 33.28 million followers, sustaining our growth momentum with an increase of 9% year-over-year.

These 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 business scenarios. These synchronized initiatives are boosting our operating efficiency and propelling us toward a new phase of a diversified development. Let me walk you through our major progress in each of these three steps, starting with positioning. First, we continue to enhance our content creation prowess, strengthening our text and graphic content ecosystem. Harnessing 36Kr's effective content dissemination network, we have built a robust content circulation mode. In the first half of the year, nearly 400 of our articles achieved over 100,000 page views.

Our premium content has garnered extensive industry acclaim, solidifying our industry-wide, wide leadership in insight and influence. We also extended our appeal to younger audiences with subvertical media channels like TIDE and OU, steadily diversifying our user demographic. With the launch of all new subspecialized accounts, 36Kr Games, we meaningfully enriched our content subverticals, extending our cross-segment reach beyond the new economy users to a broad spectrum of knowledge and entertainment audiences.

Dagang Feng (Co-Chairman and CEO)

...

短视频业务，公司上半年表现非常出色。我们积极布局B站、抖音、快手等主流短视频媒体平台，全网视频粉丝数突破九百二十万，B站粉丝数超过两百三十万。我们以深度内容和优质IP为两大核心策略，持续为用户提供专业、深度的原创视频作品。此外，我们推出了全新栏目AI Car，专注于人工智能在汽车领域的应用与发展，以及AI图谱，获取前沿AI资讯，记录智能世界新蓝图，全面提升了用户观感，巩固了公司作为领先的内容创作IP的地位。

Yun Wang (IR Manager)

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 fresh 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 constructs new blueprints for the intelligent world. This initiative notably elevated user engagement and overall experience, reinforcing our position as a top content IP creator.

Dagang Feng (Co-Chairman and CEO)

在长视频领域，我们的高端访谈节目看见2034于二季度全新上线，与国民级短视频平台抖音强强联手，在内容创作和传播渠道上实现了多重突破。首期节目邀请了蔚来汽车创始人李斌，共同探讨新能源汽车的未来变革，受到广泛关注。该期节目在全网的曝光，累计曝光量超过8400万。

Yun Wang (IR Manager)

In the long form video segment, we collaborated with the popular short form video platform Douyin to launch a new season of our elite talk show series, Foreseeing 2034. In the Q2, we made notable strides in content creation and the channel distribution through this robust partnership. The debut episode of Foreseeing 2034, featuring NIO founder Li Bin, delved into upcoming shifts in the new energy vehicle sector, garnering widespread interest and racking up over eighty-four million views across various platforms.

Dagang Feng (Co-Chairman and CEO)

在直播业务方面，公司不断优化创新，联合业内资深人士推出多档直播节目，直播互动性、实时性、趣味性更强，进一步增强用户粘性。比如公司推出了全新专题主编与创作者对话栏目，朝鲜大事，为用户呈现行业内人物的精彩分享和洞见。同时，聚焦资本动态与创新项目的直播节目，创投看这里，将为投资人提供专业的市场分析。此外，我们也推出了与新商业掌门人面对面交流的多数派，为用户带来多维度的深度洞察。

Yun Wang (IR Manager)

Next, live streaming, where we continually optimize our innovative offerings during the first half of the year. Joining hands with the industry veterans, we launched an array 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 media curators and content creators. Another is Insight Hub, a new show that focuses on capital dynamics and innovative initiatives, offering investors professional market intelligence. We also debuted Youth Talk, a series of face-to-face exchanges with emerging business leaders designed to enlighten users with deep, multi-dimensional insights.

Dagang Feng (Co-Chairman and CEO)

2024年上半年，我们推出了重磅IP活动，新质生产力AI Partner峰会，取得了亮眼的成绩。该活动携手阿里、百度、联想、Intel等行业巨头，深入探讨AI技术应用的最新的发展趋势，分享企业在实践中遇到的机遇与挑战。此次活动总曝光量超过一亿次，引发业内的广泛关注。2024年6月，我们备受期待的重磅IP Waves新浪潮大会如期回归，活动融合了创投、科技、人文、音乐等多元素，为青年创业者和投资者搭建了交流互动平台。该活动总曝光量达到一点五亿次，成功实现了对年轻用户群体的精准触达。

Yun Wang (IR Manager)

Last but not least, events IP. In the first half of 2024, we achieved a substantial success with the launch of a major event IP, the New Quality 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 both opportunities and the challenges gleaned from day-to-day business operations. The summit attracted an impressive 100 million-plus views, sparking extensive industry buzz. Additionally, our highly anticipated signature event IP, Waves Summit, returned in June 2024, offering a rich variety of features across the venture capital, technology, culture, and music sectors, among others. Waves served as a bustling hub, fostering connections among young entrepreneurs and investors, racking up 150 million views in precisely engaging the younger demographic.

Dagang Feng (Co-Chairman and CEO)

我们始终坚持制作优质原创节目，以及举办特色IP活动，确保稳定供应高质量的内容，获得了广泛的传播和讨论，并提升了我们品牌的影响力及广告价值。这些内容活动体系全面升级布局，不仅丰富了公司的内容生态，扩大了用户人群，同时也为用户和客户搭建更加丰富的内容场景和服务模式，以进一步夯实了公司在新领域的领导地位，进一步增强用户粘性。

Yun Wang (IR Manager)

By consistently crafting high quality original programs and distinctive event IP. We have ensured a steady flow of premium content, garnering broad visibility and inspiring lively discussions. The approach has significantly amplified our brand power, advertising potential, and the commercial value. Our holistic upgrade of our content and event lineup has enriched our content ecosystem, expanded our user base, and cultivated more diverse content scenarios in the service models for users and the customers alike, further solidifying our leadership across industry segments and boosting user stickiness.

Dagang Feng (Co-Chairman and CEO)

现在我来具体回顾一下扩展战略取得的最新的进展。

Yun Wang (IR Manager)

Now let's turn to the expansion piece of our three-step strategy.

Dagang Feng (Co-Chairman and CEO)

上图就是内容活动的创新布局，不仅让我们保持了与阿里、京东、字节跳动、华为等国际知名企业开展更加深入的合作，同时也推动了公司客户群体持续拓展，不断满足客户多样化的内容营销需求。2024年，公司持续推进客群拓展及客户服务内容的拓展，包括食品饮料、餐饮连锁、运动户外、美妆个护及家居家电等客群，并取得显著进展。其中，运动户外的新客占比超过60%，美妆个护新客占比超过40%，食品饮料及餐饮连锁新客占比超过20%。

Yun Wang (IR Manager)

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 and 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 new customers in the sports and outdoor category topped 60%. Meanwhile, beauty and personal care's new customer ratio exceeded 40%, and food and beverage, along with restaurant chains, recorded a new customer ratio surpassing 20%.

Dagang Feng (Co-Chairman and CEO)

此外，我们首次进入储能行业，为世界知名的锂离子电池制造商新能安制作了专题纪录片。我们为全球移动支付巨头提供整合营销服务，为其提供主题峰会、深度品牌宣传、混合支持、互动营销等多元定制化方案，成功助力其加速在全球移动支付领域的布局和拓展，进一步提升品牌影响力。

Yun Wang (IR Manager)

Moreover, we ventured into the energy storage sector, crafting a specialized documentary for Ampace, a globally renowned manufacturer of lithium-ion batteries. We also provided integrated marketing services for a major player in global mobile payments, including customized solutions such as thematic summits, in-depth brand promotion, customer acquisition support, and 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.

Dagang Feng (Co-Chairman and CEO)

同时，我们借助36氪媒体的影响力优势，及研究员的专业和地方站区域布局优势，持续深化政企服务体系。凭借我们对各地政府的深入了解及丰富服务经验，为客户提供包括产业对接、招商引资、出海服务中心等在内的服务，以满足他们的复合型需求，重点拓展长三角及珠三角政府客户。

Yun Wang (IR Manager)

Meanwhile, capitalizing on 36Kr's substantial media influence and expertise development on our own, and 36Kr Research Institute, we continuously refined our service architecture for governmental and the public services system. Harnessing our vast understanding of the intricacy of all levels of government operations. Along with our broad-based service experience, we offer customers an integrated suite of services, including facilitating industry-specific partnerships, investment inflows in the global expansion service hubs to meet their varied needs. Our diverse slate of premium services continues to attract new clients, expanding our governmental customer base in both the Yangtze River Delta and the Pearl River Delta regions.

Dagang Feng (Co-Chairman and CEO)

36Kr Platform资源及专业能力，为客户提供了更加精准的市场洞察和全链路的营销解决方案，稳定优质的客户资源及丰富多样的客户群体，不仅凸显了公司商业化能力的持续提升，也为业绩的持续增长奠定了坚实基础。

Yun Wang (IR Manager)

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 enhancements and paves the way for sustained business growth.

Dagang Feng (Co-Chairman and CEO)

2024年，在推进各项业务与AI技术的深度融合方面，公司始终践行合作战略，并取得了显著成果。

Yun Wang (IR Manager)

Last but not least, collaboration, the final piece of our three-step strategy. In the first half of 2024, we deepened and broadened our collaborative efforts as we integrated the technology across our business segments, achieving positive outcomes.

Dagang Feng (Co-Chairman and CEO)

公司与商汤科技达成深度战略合作，共同探索AI技术的深入应用，推出一系列AI驱动的新产品，例如AI需求报道、AI财报解读、AI图像生图等，为广大用户提供更加智能高效的内容服务，持续扩大三十六氪的客群覆盖度。双方通过整合三十六氪专业的内容创作能力和商汤的AI技术优势，将共同打造AI首席内容官的全新概念，引领传媒行业进入更智能、更互联的未来。在丰富的内容生态和AI技术的加持下，我们的产品矩阵将不断拓展，经营效率将不断提升。

Yun Wang (IR Manager)

... One noteworthy example is our in-depth strategic partnership with SenseTime, for advanced applications of AI technology. We've jointly launched an area for AI-driven offerings, including AI medium Spotlight Seeker, 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 prominence with SenseTime's advanced AI technology, we aim to create and promote an all-new AI chief content officer concept, 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 improve our operating efficiency. In summary, during the first half of 2024, our three-step strategy covering positioning, expansion, and collaboration ensured solid operation while laying a robust foundation for growth in the later half of the year. With our innovative spirit, embrace of the next generation technology, and the vibrant partnerships with global front runners, we are poised to enhance our content influence and advance commercialization, propelling the company to high quality, sustainable growth.

Dagang Feng (Co-Chairman and CEO)

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

Lin Wei (CFO)

Thank you. Now, I'd like to walk you through the detail of our first half of 2024 financial results. Please note, all amounts are in RMB, unless otherwise stated. Okay. First, total revenue were RMB 102.4 million in the first half of 2024, compared to RMB 139.9 million in the same period of last year. Online advertising services revenue were RMB 80.4 million in the first half of 2024, compared to RMB 98.9 million in the same period of last year. The decrease was mainly due to the reduction in advertising spending by advertisers from certain industries and the challenging external environment. In addition, we optimized our customer structure to control credit risk, which lead to a decrease in revenue scope.

Enterprise value-added service revenue were RMB 13.4 million in the first half of 2024, compared to RMB 26.8 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 service revenues were RMB 8.6 million in the first half of 2024, compared to RMB 14.2 million in the same period of last year. The decrease was mainly due to the planned evolution of our training service business model. Cost of the revenue were RMB 57 million in the first half of 2024, compared to RMB 17 million in the same period of last year. The decrease was mainly attributable to decrease in operating costs in connection with the decline in our revenues.

Gross profit was RMB 45.5 million in the first half of 2024, compared to RMB 69.8 million in the same period of last year. Gross profit margin was 44.4% in the first half of 2024, compared to 49.9% in the same period of last year. Operating expenses were RMB 117 million in the first half of 2024, decreasing by 9% compared to RMB 128.7 million in the same period of last year. Sales and marketing expenses were RMB 45.4 million in the first half of 2024, a decrease of 29.9% from RMB 64.8 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 the share-based compensation expenses.

G&A expenses were RMB 62.8 million in the first half of 2024, a 79.9% increase compared to RMB 34.9 million in the same period of last year. The increase were 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 RMB 8.8 million in the first half of 2024, a decrease of 69.7% from RMB 29 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 at the restructured R&D team.

Share-based compensation expenses recognized in cost of revenue, sales and marketing expenses, research and development, development expenses, and G&A totaled RMB 0.05 million in the first half of 2024, compared to RMB 3.7 million in the same period of last year. Other expenses were RMB 24.3 million in the first half of 2024, compared to RMB 6 million of other income in the same period of last year. The increase was mainly because the company recognized about RMB 25.5 million of investment loss, arising from fair value change of long-term investment this year. Net loss was RMB 95.9 million in the first half of 2024, compared to net loss of RMB 52.7 million in the same period of last year.

Non-GAAP adjusted net loss were RMB 95.9 million in the first half of 2024, compared to non-GAAP adjusted net loss of RMB 49 million in the same period of last year. Net loss attributable to 36Kr ordinary shareholders was RMB 94.4 million in the first half of 2024, compared to RMB 52.3 million in the same period of last year. Basic and diluted net loss per ADS were both 2.245 in the first half of 2024, compared to basic and diluted net loss per ADS of 1.258 in the same period of last year.

As of June 30, 2024, the company has cash, cash equivalents, and short-term investments of RMB 96.9 million, compared to RMB 116.9 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 will now open the call to questions. Operator, please go ahead.

Operator (participant)

Thank you. If you wish to ask a question, please Press* one on your telephone and wait for your name to be announced. If you wish to cancel your request, please Press* two. If you are 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. Once again, if you wish to ask a question, please Press* one on your telephone and wait for your name to be announced. We will just pause for a moment to allow questioners to enter the queue. That's star one to register for a question. That is star one on your telephone for a question. As we are showing no questions, I'll turn the call over to the company for closing remarks.

Yun Wang (IR Manager)

All right. Your first question comes from Yin Ru with Sealand Securities.

Rui Yin (Vice President and Senior Analyst)

Good evening, management. I am Yin Rui, analyst from the overseas group of Sealand Securities. I have a question about the company's advertising business. Could you please advise? What is the expected growth for the company's advertising business going forward? Then, subsequently, what kind of countermeasures will there be? Could management outline the expected growth trajectory for the advertising business? How will the company strategize moving forward? Thank you.

Dagang Feng (Co-Chairman and CEO)

好的，谢谢尹锐。对于未来的广告增长，我们是保持着一个谨慎乐观的态度。

Yun Wang (IR Manager)

We remain cautiously optimistic about future advertising growth.

Dagang Feng (Co-Chairman and CEO)

一方面，宏观经济仍然受到挑战，所以我们在主动地优化我们的产品和服务，进一步为我们的核心客户群体，比如说互联网巨头、世界五百强公司等提供更加专业的服务。这个策略取得了成效，让我们的客单价在上半年提升了20%。接下来我相信仍然有继续扩大客单价的机会。

Yun Wang (IR Manager)

In terms of the strategy, we have to proactively optimize our products and the 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 our revenue in the first half of the year. We believe there is still potential for future growth.

Dagang Feng (Co-Chairman and CEO)

在这一点，在另一方面，我们也不会放弃那些规模更小的客户。事实上，我们会采取一个，丰富的的内容生态、新的渠道以及人号，以及积极地深化AIGC技术与内容的深度结合，用这种方法来推出更多的由AI所驱动的产品，这样就可以达到一个效果，就是使那些过去由于我们自己的带宽和人力而无法触达的这种大量的所谓的长尾型的公司和企业，也可以成为我们的客户，享受这样的服务。

Yun Wang (IR Manager)

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 deepening the integration of AIGC technology with content production. Rolling out more AIGC offerings will allow us to engage with a broader range of companies and institutions that were previously out of reach due to bandwidth and staffing constraints.

Dagang Feng (Co-Chairman and CEO)

所以事实上我刚才说的两点，就是这个在头部客户的，提升客单价和中长尾客户提供AI的产品方面取得了一定的成效。所以我们可以，看得到，我们在上半年的时候，不仅跟像阿里、京东、字节、华为这样的客户依然保持稳定的合作，同时我们的这个优质客户群体在不断地拓展，不断地满足了用户的多样化的内容营销需求。2024年，公司重点推进了食品饮料、餐饮连锁、运动户外、美妆客户以及家居家电等优质客户群，并取得了比较不错的进展，获得了包括石榴鸟、Uber Eats、肯德基、宝洁等新的优质客户合作，其中运动户外的新客占比超过60%，美妆客户新客占比超过40%，食品饮料及餐饮连锁新客占比20%。那么对新的领域来说，我们关注它的"新客"比例是非常有价值的一个指标。

Yun Wang (IR Manager)

Our ongoing content development efforts have expanded and diversified our user base in the service scenarios, while strengthening our stable partnerships with key accounts like Alibaba, JD, ByteDance, and Huawei. We are also consistently finding high-value new customers as we cater to customer-companies' diverse content marketing needs. In 2024, we continue to broaden our premium customer segment in sectors such as food and beverage, restaurant chains, sports and outdoor, beauty and personal care, home appliances and more. Making great strides. We onboarded various premium global brands as partners, including Uber, KFC, and P&G. Notably, the proportion of new customers in the sports and outdoor category topped 60%. Meanwhile, beauty and personal care's new customer ratio exceeded 40%, and food and beverage, along with restaurant chains, recorded new customer ratios surpassing 20%. Thank you. Your next question comes from Lin with SWS Research.

哎，领导好，请问可以听到吗？

Dagang Feng (Co-Chairman and CEO)

啊，可以的，谢谢。

领导好。我主要就是有两个小问题想跟领导请教一下，然后第一个问题是刚刚领导也介绍了一些，就是我们这个长短视频业务的一些经营进展，就是能不能麻烦领导可能比如说再详细地展开拆一下，就是说我们目前来讲这个长短视频业务的一些经营进展，然后以及我们后续对于这个长短视频业务的增长潜力，以及说就是怎么把这个增长潜力把它开拓释放出来，有哪些规划。What are the latest development in short and long video segments?

How does the company plan to expand their growth potential?

好，谢谢。2024年，我想我们的这个长短视频都是我们业绩的，亮点。其实我们在保持......

多元化的内容，然后总是不断扩展更多的视频产品。现在我们的短视频内容已经覆盖到了科技创新、商业洞察、生活方式等多个领域。我想这个如果你参加我们以前的这个活动的话，你会发现相比于两年前，相比于一年前，我们的内容已经比那时候丰富很多。

Yun Wang (IR Manager)

In the first half of 2024, we delved deeper into the short and long video sectors, consistently providing diverse content offerings while expanding our range of the 2C products. Our short video content lineup now covers a broader spectrum of views, including technological innovation, business insights, lifestyle, and more, providing users with rich and varied content options.

Dagang Feng (Co-Chairman and CEO)

就像我们以前说过的，短视频广告相对于其他形式的广告，而受到了客户的更广泛的接受和更获得更高的客单价，从而带动了公司广告整体收入的提升。2024年，我们凭借原创能力和平台影响力优势，收获了很多知名公司的商业化合作，整体营收进度符合我们今年的预期。同时，今年我们在专业财经内容、年轻人生活方式等方面的内容，在B站、抖音、快手等多个平台受到用户的广泛关注和喜爱。我们也推出了全新的栏目，跟AI相关的，比如说AICAR或者AI图谱，全面提升用户的观感，巩固了公司作为领先的内容创造IP的地位。截止到上半年，公司的全网粉丝数突破920万，B站粉丝数超过230万。我想解释一下，这个数对一个机构媒体来说，应该是一个非常难能可贵的数据。

Yun Wang (IR Manager)

As we mentioned before, relative to the other advertising channels, short video advertising boasts a broader customer appeal and higher ARPU, which has contributed significantly to the company's advertising revenue growth. In 2024, leveraging our content creation prominence in the substantial platform influence, we established a high visibility commercialization collaborations with multiple leading brands. Revenue performance was on track with our forecast for the year. Additionally, our finance and youth lifestyle content has garnered widespread visibility and user interest across major platforms like Bilibili, Douyin, and Kuaishou. We launched a 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, a medium company.

Dagang Feng (Co-Chairman and CEO)

在长视频方面，我们的高端访谈节目《看见2034》，这也是由我亲自主持的一档节目，于二季度全新上线，与国民级的短视频平台抖音加强联手，在内容创作和传播渠道上实现了多重突破。首期节目邀请了蔚来汽车创始人李斌，该节目在全网的曝光量，累计超过八千四百萬。然后接下来我们无论是对长视频还是短视频，我想我们都会进一步加强我们的投入，我们也预计这个视频类的产品在我们整体营收中的占比会进一步提高。

Yun Wang (IR Manager)

Regarding long form video, we collaborated with popular short form video platform Douyin to launch a new season of our elite talk show series, Foreseeing 2034. In Q2, we made notable strides in content creation and the channel distribution through this robust partnership. Its debut episode featuring NIO founder William Li Bin racked up over 84 million views across various platforms. Thank you for your question.

Operator (participant)

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. 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。

Dagang Feng (Co-Chairman and CEO)

好的，谢谢秀玲。因为我们根据市场变化和客户需求，推出了上半年中盘大笔活动，叫做新质生产力 AI 合作伙伴峰会，取得了比较不错的成绩，这个活动的总曝光量超过了一亿次，引发了业界的广泛关注。同时，我们协助联想举办了联想新商业创新生态不言季的活动，通过36氪公众号、微博、社群等多元化渠道，为人工智能应用软件、智能终端、新智能等领域的优秀初创公司提供全方位的赋能服务。后续我们会继续聚焦提升产品体系，丰富服务场景，满足客户不断变化的需求。

Yun Wang (IR Manager)

First, in response to market dynamics and evolving customer needs, we launched a major event, New Quality Productivity AI Partner Summit, during the first half of the year. The event was quite successful, attracting an impressive 100 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 36 key official accounts, Weibo, and community platforms for high impact promotion. This initiative empowered elite startups across sectors including artificial intelligence, application software, smart devices in the advanced manufacturing with end-to-end services. Moving forward, we will focus on enriching our product metrics and service scenarios to meet our customers' evolving needs. In addition, we will launch our Waves Summit in October this year, and we will have more innovative services for our customers and 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 sector, issuing a range of industry research reports that offered a thorough analysis and insights on the trends in 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 vast understanding of the intricacy of governmental customers, along with our broad-based service experience, we delivered a host of top-tier services, including facilitating industry specific partnerships, investment inflows in the global expansion service to fulfill our customers' varied 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 media operations targeting Europe in this September, leveraging 36Kr existing strength in original content and integrating AI technology to enable real-time dissemination of a high volume of content to Europe, while also bringing 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 a 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 using the contact information provided on our website.

Operator (participant)

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