36Kr Holdings Inc.

Company Overview

Business Model: 36Kr Holdings Inc. operates as a prominent brand and pioneering platform dedicated to serving New Economy participants in China. Its core value proposition is to empower New Economy participants, including New Economy companies, traditional companies undergoing technological transformation, institutional investors, and individuals, to achieve more. The business model is founded on high-quality, New Economy-focused content offerings, which drive user traffic and enable the monetization of diverse business services. Primary revenue generation mechanisms include online advertising services, enterprise value-added services, and subscription services.

Market Position: 36Kr Holdings Inc. is recognized as a leading New Economy-focused content platform in China, leveraging its significant brand influence among New Economy participants. The company has demonstrated a capability to discover high-potential startup companies, being the first to report on several that later became industry leaders (e.g., ByteDance in January 2013). As of December 31, 2024, the company had a total of 35.9 million followers across its self-operated platforms and major third-party platforms. Its competitive positioning is based on the quality and coverage of its content, industry expertise, brand recognition, user and customer experience, and data analytics capabilities.

Recent Strategic Developments:

• Acquisition and Divestiture: In March 2022, 36Kr Holdings Inc. acquired a 7.273% equity interest in Hangzhou Jialin Information Technology Co., Ltd., a fresh produce supply chain solution provider in China. This acquisition was made by transferring its 100% equity interest in Beijing Dianqier Creative Interactive Media Culture Co., Ltd., a subsidiary primarily providing interactive marketing dispense services.
• Nasdaq Listing Transfer: On May 3, 2024, the American depositary shares (ADSs) of 36Kr Holdings Inc. began trading on the Nasdaq Capital Market, having transferred from the Nasdaq Global Market.
• ADS Ratio Change: Effective October 3, 2024, the company changed the ratio of its ADSs representing Class A ordinary shares from one ADS representing 25 Class A ordinary shares to one ADS representing 500 Class A ordinary shares.
• AIGC Adoption: The company has adopted AI Generated Content (AIGC) technologies across its content ecosystem, utilizing AIGC for image generation, video creation, script editing, and data collection to enhance content production efficiency.
• Service Offering Refinement: The company is undergoing a strategic transition in its training services business model and has shrunk several regional operations to optimize cash flow and improve efficiency.
• Investment in Wenzhou Qingke: In 2024, the company invested RMB3.95 million to acquire a 79% equity interest in Wenzhou Qingke No.1 Venture Capital Partnership Enterprise (Limited Partnership).

Geographic Footprint: 36Kr Holdings Inc. is a Cayman Islands holding company with substantially all of its operations conducted in the People’s Republic of China (PRC). Its corporate headquarters are located in Beijing, PRC. The company maintains an international presence through its associate, 36Kr Global Holding (HK) Limited, which operates kr-asia.com in Singapore and 36kr.jp in Japan, and has expanded its presence in Europe, Australia, and New Zealand. The company's regulatory environment is primarily governed by PRC laws and regulations, with additional compliance considerations in the Cayman Islands, British Virgin Islands, and Hong Kong for its holding company structure and subsidiaries.

Cross-Border Operations: 36Kr Holdings Inc. operates in China through a Variable Interest Entity (VIE) structure, with Beijing Duoke Information Technology Co. Ltd. serving as the VIE. This structure is necessitated by PRC laws and regulations that restrict foreign investment in value-added telecommunication services, internet news services, internet audio-visual program services, and internet publishing services. Beijing Dake Information Technology Co., Ltd., a wholly-owned PRC subsidiary, controls Beijing Duoke Information Technology Co. Ltd. through a series of contractual arrangements including an exclusive purchase option agreement, powers of attorney, equity pledge agreement, and an exclusive business cooperation agreement. A minority investor, Beijing Cultural Investment Development Group Asset Management Co., Ltd. (BCI), holds a 1% equity interest in Beijing Duoke Information Technology Co. Ltd. but is not party to these contractual arrangements. The company also has subsidiaries in the British Virgin Islands and Hong Kong for investment holding. Funds are transferred between the PRC subsidiaries and the VIE through loans and service fees, with RMB8 million in loans from PRC subsidiaries to the VIE in 2024, and RMB180.1 million in outstanding service fees owed by the VIE to PRC subsidiaries as of December 31, 2024. The company has partnered with Nikkei, an international media group, to enhance its overseas coverage of China’s New Economy participants.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 48.6% (2024)
• Operating Margin: -33.7% (2024)
• Net Margin: -60.9% (2024)

Investment in Growth:

• R&D Expenditure: RMB14.4 million (6.2% of revenue)
• Capital Expenditures: RMB0.5 million
• Strategic Investments:
  • In 2024, invested RMB3.95 million in Wenzhou Qingke No.1 Venture Capital Partnership Enterprise (Limited Partnership) for a 79% equity interest.
  • In October 2024, partially disposed 41,139 shares of Beijing Sharetimes Technology Co., Ltd. to Wenzhou Qingke No.1 Venture Capital Partnership Enterprise (Limited Partnership) for RMB3.95 million.

Currency Impact Analysis:

• The company's reporting currency is Renminbi (RMB), while the functional currency of its Cayman Islands parent company is U.S. dollars (US$). PRC entities' functional currency is RMB.
• Foreign currency translation adjustments resulted in an income of RMB0.37 million in 2024.
• The company has not entered into any hedging transactions to reduce foreign currency exchange risk.
• The PRC government imposes controls on RMB convertibility and remittance, which can affect the company's ability to utilize revenues effectively and transfer cash across borders.

Business Segment Analysis

The company operates as a single operating segment, with revenues disaggregated into three primary service lines: Online Advertising Services, Enterprise Value-added Services, and Subscription Services.

Online Advertising Services

Financial Performance:

• Revenue: RMB180.6 million (-24.3% YoY)
• Operating Margin: Not separately disclosed.
• Key Growth Drivers: The decrease in 2024 was primarily due to clients' advertising budget reductions and the company's proactive efforts to cease collaboration with certain customers identified with relatively high credit risk.
• Customers: Served 411 customers in 2024, a decrease from 488 in 2023.

Product Portfolio:

• Offers brand-based online advertising services in various formats including full screen display, banners, pop-ups, and embedded advertisements.
• Leverages strong content creation capabilities to produce advertisements based on customer requests.

Market Dynamics:

• Faces competition from other content-based online advertising service providers and technology verticals of major Internet information portals such as Sina and Tencent News.
• Services are primarily charged on a cost-per-day or cost-per-advertisement basis.

Geographic Revenue Distribution:

• Substantially all revenues are derived from the PRC. No specific regional breakdown for this service line is provided.

Enterprise Value-added Services

Financial Performance:

• Revenue: RMB32.8 million (-51.2% YoY)
• Operating Margin: Not separately disclosed.
• Key Growth Drivers: The decrease in 2024 was mainly due to the ongoing refinement of service offerings, including shrinking several regional operations to accelerate focus on cash flow optimization and efficiency improvement.

Product Portfolio:

• Integrated Marketing: Provides tailored marketing strategies, including marketing plan development, event organization and execution on third-party media platforms, and public relations.
• Online/Offline Events: Organizes summits, forums, industry conferences, and fan festivals focused on the New Economy, including live-streaming options.
• Consulting: Offers customized market research and industry reports to traditional companies, government agencies, and other New Economy participants, and assists with business event organization.
• Advertisement Agent Services: Coordinates and procures third-party advertisement resources for customers, and provides short-term financing for these procured resources.

Market Dynamics:

• Competes with other New Economy-focused enterprise value-added service providers, as well as traditional marketing, consulting, and public relations companies.
• Provides value to New Economy companies by strengthening marketing and managerial experience, to traditional companies by guiding technological innovation, and to regional governments by aiding digitalization and investment attraction.

Geographic Revenue Distribution:

• Substantially all revenues are derived from the PRC. No specific regional breakdown for this service line is provided.

Subscription Services

Financial Performance:

• Revenue: RMB17.6 million (-48.4% YoY)
• Operating Margin: Not separately disclosed.
• Key Growth Drivers: The decrease in 2024 was primarily due to a strategic transition in the business model for training services. Despite the decrease in individual subscribers, the average revenue per user for individual subscription business achieved significant growth.

Product Portfolio:

• Institutional Subscription (V-club): Offers industry reports, market updates, enhanced exposure for institutional subscribers and their portfolios, investor profile pages, branding promotion events, referrals to promising companies, and priority access to online/offline events.
• Individual Subscription: Provides offline training services, online courses, and one-on-one consulting (for enterprise subscribers).

Market Dynamics:

• Competes with paid content service providers and offline training agencies.
• Institutional subscribers increased to 231 in 2024 from 185 in 2023.
• Individual subscribers decreased to 16 in 2024 from 46 in 2023.

Geographic Revenue Distribution:

• Substantially all revenues are derived from the PRC. No specific regional breakdown for this service line is provided.

International Operations & Geographic Analysis

Revenue by Geography: The company's long-lived assets are substantially all located in the PRC, and substantially all of its revenues are derived from the PRC. Therefore, a detailed revenue breakdown by specific international regions or countries is not presented.

International Business Structure:

• Subsidiaries:
  • 36Kr Holding Limited (British Virgin Islands): Investment holding.
  • 36Kr Holdings (HK) Limited (Hong Kong): Investment holding.
  • Tianjin Duoke Investment Co., Ltd. (PRC): Investment holding.
  • Tianjin Dake Information Technology Co., Ltd. (PRC): Management consulting.
  • Beijing Dake Information Technology Co., Ltd. (PRC): Management consulting.
  • Nanjing Dake Information Technology Co., Ltd. (PRC): Management consulting.
• Joint Ventures: 36Kr Global Holding (HK) Limited, an associate of the Group, jointly explores business opportunities in overseas markets.
• Licensing Agreements: Not explicitly detailed as a revenue-generating or operational structure.

Cross-Border Trade:

• Export Markets: The company is exploring overseas business opportunities through 36Kr Global Holding (HK) Limited, which operates kr-asia.com in Singapore and 36kr.jp in Japan, and has expanded its presence in Europe, Australia, and New Zealand.
• Import Dependencies: Not explicitly detailed in the filing.
• Transfer Pricing: The company's PRC subsidiaries charge service fees to the VIE, which are recognized as cost of revenues for the VIE and service income for the PRC subsidiaries, and are tax neutral for income tax purposes. The company acknowledges the risk of PRC tax authorities scrutinizing these arrangements.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: The board authorized a share repurchase program in May 2020 for up to 1,000,000 ADSs. No repurchases were made from April 1, 2024, to March 31, 2025.
• Dividend Payments: 36Kr Holdings Inc. has not previously declared or paid cash dividends and has no plan to do so in the foreseeable future, intending to retain available funds for business development and growth.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: The company intends to retain most, if not all, available funds and future earnings to fund business development and growth.

Balance Sheet Position (as of December 31, 2024):

• Cash and Equivalents: RMB36.8 million (US$5.1 million)
• Total Debt: RMB10.0 million (short-term bank loan)
• Net Cash Position: RMB26.8 million
• Credit Rating: Not disclosed.
• Debt Maturity Profile: All short-term bank loans mature within one year. For example, a RMB6 million loan from Beijing Dake Information Technology Co., Ltd. and a RMB4 million loan from Beijing Duoke Information Technology Co. Ltd. are scheduled to be paid off on February 21, 2025.

Cash Flow Generation:

• Operating Cash Flow: -RMB33.0 million (US$4.5 million) in 2024, compared to -RMB122.2 million in 2023.
• Free Cash Flow: Approximately -RMB33.5 million (Operating Cash Flow - Capital Expenditures) in 2024.
• Cash Conversion Metrics: Not explicitly provided.

Currency Management:

• Cash holdings by major currencies: RMB25.2 million (US$3.5 million) in RMB held in the PRC by subsidiaries and the VIE; RMB11.6 million (US$1.6 million) in US$ held in the Cayman Islands by the parent company and its subsidiaries.
• Natural hedging through operational diversification is not explicitly stated as a strategy.
• Financial hedging instruments: The company has not entered into any hedging transactions to reduce foreign currency exchange risk.

Operational Excellence

Production & Service Model: 36Kr Holdings Inc.'s operational philosophy is centered on high-quality, New Economy-focused content as the foundation for its business. Content is created by a professional in-house team of 102 personnel (including 40 writers) and sourced from over 1,290 third-party professional content providers. Content is presented in various formats including text, pictures, audio, video, and live streaming. The company has adopted AI Generated Content (AIGC) technologies for image generation, video creation, script editing, and data collection to enhance production efficiency. Content undergoes a multi-layered editing, screening, and monitoring process involving both automated filtering and manual review to ensure quality and compliance.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Content Providers: Over 1,290 third-party professional content providers (reputable media, research institutions, Key Opinion Leaders).
• Advertising Partners: Third-party advertising agencies for online advertising services.
• Telecommunication Services: Relies on a limited number of telecommunication service providers in China for data communications capacity.
• International Media Partners: Partnered with Nikkei for overseas coverage of China’s New Economy.

Facility Network:

• Manufacturing: Not applicable as the company primarily provides content and business services.
• Research & Development: Maintains an R&D team of 22 employees, primarily AI engineers and IT infrastructure architects, focused on upgrading technology and enhancing operational efficiency.
• Distribution:
  • Self-operated: Mobile app "36Kr" and website "36kr.com".
  • Third-party platforms: Utilizes major Internet and social networking platforms including Weixin, Weibo, Zhihu, Toutiao, Xinhua Net, Douyin, Bilibili, Kuaishou, and RED.
  • International: Operates overseas websites kr-asia.com (Singapore) and 36kr.jp (Japan), with an expanded presence in Europe, Australia, and New Zealand.

Operational Metrics:

• Content Published: 143,492 pieces in 2024.
• Total Followers: 35.9 million as of December 31, 2024.
• R&D Headcount: 22 employees as of December 31, 2024.
• Sales Team Headcount: 127 employees as of December 31, 2024.
• Office Space: Approximately 5,321 square meters leased in China as of December 31, 2024.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Leverages an experienced in-house sales team of 127 employees, equipped with specialized New Economy sector knowledge.
• Channel Partners: Utilizes third-party advertising agencies for online advertising services and local partners for overseas website operations.
• Digital Platforms: Distributes content and services through its self-operated mobile app "36Kr" and website "36kr.com", as well as accounts on major third-party Internet and social networking platforms including Weixin, Weibo, Zhihu, Toutiao, Xinhua Net, Douyin, Bilibili, Kuaishou, RED, and Bai Jiahao.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: A significant portion of revenue is derived from a limited number of customers. Customer C accounted for 22% of total revenues in 2024, and Customer D accounted for 12% of total revenues in 2024.
• Strategic Partnerships: The company refers promising companies to institutional subscribers seeking investment opportunities and helps investment institutions raise capital through branding activities.
• Customer Concentration: The company faces concentration risk with its largest customers, with Customer C and Customer D representing significant portions of its total revenues.
• Customer Types: Serves New Economy companies, traditional companies, regional government clients, and institutional investors.

Regional Market Penetration:

• The company's primary market penetration is within the PRC.
• Internationally, it has established overseas websites kr-asia.com in Singapore and 36kr.jp in Japan, and has expanded its presence in Europe, Australia, and New Zealand. No specific market share data is disclosed.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The company operates within the rapidly evolving New Economy sectors in China, which encompass a broad range of industries including Internet, hardware and software technologies, consumer and retail, healthcare, entertainment and media, finance, and enterprise services. The New Economy-focused business services market is highly competitive, with competition primarily centered on increasing user traffic, user engagement, brand recognition, and customer acquisition and retention.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Online Advertising Services: Other content-based online advertising service providers and technology verticals of major Internet information portals, such as Sina and Tencent News.
• Enterprise Value-added Services: Other New Economy-focused enterprise value-added service providers, as well as traditional marketing, consulting, and public relations companies.
• Subscription Services: Paid content service providers and offline training agencies.

Regional Competitive Dynamics: The competitive landscape varies across the major geographic markets and service segments in which the company operates, with established players and new entrants vying for market share and customer engagement.

Risk Assessment Framework

Strategic & Market Risks

• New Economy Sector Volatility: The company is subject to risks associated with the rapidly evolving nature of New Economy sectors, including significant uncertainties regarding their growth and sustained profitability in China.
• Technology Disruption: The company faces risks from new risk factors and uncertainties that emerge from time to time in the fast-changing technology landscape.
• Customer Concentration: A considerable portion of the company's revenues is derived from a limited number of customers, with Customer C accounting for 22% and Customer D for 12% of total revenues in 2024, posing a concentration risk.

Operational & Execution Risks

• Global Supply Chain Vulnerabilities: Deterioration or termination of cooperation with third-party professional content providers or reliance on a limited number of telecommunication service providers could materially impact business operations.
• Regional Disruptions: The business is vulnerable to natural disasters, health pandemics (e.g., COVID-19), and other extraordinary events that could disrupt operations.
• Trade Restrictions: The company faces uncertainties from ongoing trade disputes, tariffs, and changes in monetary and fiscal policies by leading economies, which could affect its business.

Financial & Regulatory Risks

• Currency & Financial Risks: Fluctuations in exchange rates, particularly between RMB and US$, could materially and adversely affect results of operations. The company has historically recorded negative cash flows from operating activities and has not engaged in hedging transactions. The company was likely a Passive Foreign Investment Company (PFIC) for 2024, with a significant risk of being a PFIC for 2025 and future taxable years, which could result in adverse U.S. federal income tax consequences for U.S. investors.
• Regulatory & Compliance Risks: Substantial uncertainties exist regarding the interpretation and application of current and future PRC laws and regulations related to the VIE structure. The company faces risks from evolving licensing requirements (e.g., Internet news information license, Internet audio-visual program transmission license, Internet publishing license) and potential scrutiny of transfer pricing by PRC tax authorities. New regulations, such as the Revised Cybersecurity Review Measures and Overseas Listing Measures, could impose additional compliance burdens and affect its listing status.
• Tax Regulations: The company may be classified as a "PRC resident enterprise" for PRC enterprise income tax purposes, which could result in unfavorable tax consequences for the company and its non-PRC shareholders.

Geopolitical & External Risks

• Country-Specific Risks: The PRC government has significant authority to influence the company's business operations through new laws and regulations. Changes in China's economic, political, and social conditions could have a material adverse effect.
• PCAOB Inspection: While the PCAOB was able to conduct inspections in 2022, the risk remains that it may not have full access in the future, potentially leading to the company being identified as a "Commission-Identified Issuer" under the Holding Foreign Companies Accountable Act (HFCAA) and subsequent delisting from U.S. markets.

Innovation & Technology Leadership

Research & Development Focus: 36Kr Holdings Inc. is committed to continuous investment in its technology system to enhance user experience and operational efficiency. Global R&D Network:

• R&D Centers: The company's R&D team consists of 22 employees, primarily AI engineers and IT infrastructure architects.
• Innovation Pipeline: R&D efforts are focused on data analysis to understand user and customer preferences, tailoring content and service offerings accordingly. The company has adopted AI Generated Content (AIGC) technologies to empower its content ecosystem and improve content production efficiency across areas like image generation, video creation, script editing, and data collection.

Intellectual Property Portfolio:

• Patent Strategy: The company holds 4 registered patents in the PRC.
• Licensing Programs: Beijing Dake Information Technology Co., Ltd. has granted Beijing Duoke Information Technology Co. Ltd. the right to register its intellectual property rights, with Beijing Dake Information Technology Co., Ltd. retaining the right to purchase these IP rights at nominal prices.
• IP Litigation: The company acknowledges the risk of intellectual property infringement claims or other allegations by third parties for content distributed on its platform.

Technology Partnerships: While not explicitly detailed, the company's reliance on third-party Internet and social networking platforms for content distribution implies ongoing technological collaborations.

Leadership & Governance

Executive Leadership Team

International Management Structure: The executive leadership team includes individuals with diverse backgrounds and international experience, contributing to the management of the company's cross-border operations.

Board Composition: The Board of Directors consists of seven directors, including three independent directors: Yifan Li, Hendrick Sin, and Peng Su. Yifan Li is designated as an "audit committee financial expert." As of March 31, 2025, Dagang Feng controls approximately 74.5% of the total voting power, classifying 36Kr Holdings Inc. as a "controlled company" under Nasdaq Stock Market Rules. Consequently, the company relies on "home country practice" and "controlled company" exemptions from certain Nasdaq corporate governance requirements, such as having a majority of independent directors and fully independent compensation and nominating/corporate governance committees.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• People's Republic of China (PRC): The company's operations are heavily regulated by the PRC government, particularly in the Internet industry. Key regulations include:
  • Foreign Investment Law (Negative List 2024): Restricts foreign investment in value-added telecommunications services, internet news services, internet audio-visual program services, and internet publishing services, necessitating the VIE structure.
  • Telecommunications Regulations: Requires operating licenses for telecommunications services, with value-added telecommunication services (VATS) requiring an ICP License (obtained, effective until March 25, 2030).
  • Internet News Services: Requires an Internet news information license, which the company is not currently eligible for due to requirements for state-owned shareholders.
  • Internet Audio-visual Program Services: Requires an Internet audio-visual program transmission license, which the company is not currently eligible for due to requirements for state-owned or state-controlled entities.
  • Internet Publishing Services: Requires an Internet publishing license, which the company is not currently eligible for due to requirements for specific professional qualifications and restrictions on foreign-invested entities.
  • Radio and Television Program Production: Holds a Production and Operation of Radio and Television Program License (effective until August 2, 2026).
  • Cybersecurity and Data Privacy: Subject to the PRC Data Security Law, PRC Personal Information Protection Law, and Revised Cybersecurity Review Measures, which require cybersecurity reviews for platform operators with over one million users' personal information seeking foreign listings. The company has not been subject to such a review as of the filing date.
  • Overseas Listing Measures: Requires filing with the China Securities Regulatory Commission (CSRC) for indirect overseas offerings and listings by PRC domestic companies.
  • Advertising Law: Requires monitoring of advertising content for truthfulness and compliance.
  • Intellectual Property Laws: Governed by Copyright Law, Patent Law, Trademark Law, and Domain Name Measures.
• Cayman Islands, British Virgin Islands, Hong Kong: These jurisdictions primarily serve as holding company locations and are subject to their respective corporate and tax laws.

Cross-Border Compliance:

• Export Controls, Sanctions Compliance, Anti-Corruption: General risks associated with multi-jurisdictional operations are acknowledged.
• Transfer Pricing: The company's inter-company service fee arrangements are designed to be tax-neutral, but are subject to potential audit and challenge by PRC tax authorities.

International Tax Strategy:

• Enterprise Income Tax (EIT): PRC subsidiaries are subject to a 25% EIT rate, with Beijing Duoke Information Technology Co. Ltd. eligible for a 15% preferential tax rate as a "High-New Technology Enterprise" until October 16, 2026.
• Withholding Tax on Dividends: Dividends paid by PRC entities to non-resident enterprise investors are subject to a 10% withholding tax, potentially reduced to 5% for Hong Kong-resident enterprises under a tax treaty, subject to qualification.
• Resident Enterprise Classification: The company faces uncertainty regarding potential classification as a "PRC resident enterprise," which could result in PRC EIT on its worldwide income and withholding taxes on dividends and gains for non-PRC shareholders.

Environmental & Social Impact

Global Sustainability Strategy: The provided 20-F filing does not contain specific information regarding 36Kr Holdings Inc.'s global sustainability strategy or explicit environmental commitments such as climate strategy, carbon neutrality targets, or renewable energy adoption.

Regional Sustainability Initiatives: No specific regional sustainability initiatives are detailed in the filing.

Social Impact by Region:

• Community Investment: Not explicitly detailed in the filing.
• Labor Standards: The company participates in government-mandated multi-employer social security plans for its PRC-based employees, covering pension, unemployment, work-related injury, medical, and housing insurance, in compliance with PRC labor laws.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: 36Kr Holdings Inc. has not entered into any hedging transactions to reduce its exposure to foreign currency exchange risk.
• Translation Hedging: Not explicitly detailed in the filing.
• Economic Hedging: Not explicitly detailed in the filing.
• Functional Currency Considerations: The functional currency of the company's PRC entities is RMB, while the functional currency of 36Kr Holdings Inc. (Cayman Islands) is US$. The reporting currency is RMB.
• Foreign Exchange Controls: The PRC government imposes foreign exchange controls on the convertibility of RMB and the remittance of currency out of China, which can limit the company's ability to utilize its revenues effectively and affect the value of investments.