Operator
thank you for standing by and welcome to the 36 kr holdings inc 2026 first half earnings conference call all participants are in a listen only mode there will be a presentation followed by a question and answer session if you wish to ask a question you would need to press the star key followed by the number one on your telephone keypad i would now like to hand the conference over to management to begin please go ahead thank you very much hello everyone and welcome to 36KR holdings first half 2026 earning conference call the company's financial and operational results were released earlier today and have been made available online you can also
leave the earning press released by visiting the ir session of our website ir.36kr.com participants on today's call will include our chairman and ceo mr da gang feng and our chief financial officer, Mr. Xiang Li. Mr. Fong will start the call by providing an overall of companies and a performance highlight of first half in Chinese followed by English interruptions. 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 continue forward-looking statement made under the safe harbor provisions of the US private security litigation reform act of 1995. Forward-looking statement involving inherent risk and uncertainties. As such, the company result may be material different from the views expressed today. Further information regarding those and other risks and uncertainties is included in company's prospectors and now the public filing assailed with the USFEC the company does not assume any obligation to update any forward-looking statement except as required under the applicable law please note that 36k are earning price released and this conference call includes this audited GAAP financial measures as well as unaudited non-GAAP financial measures. 36K are earning price released the confirmations of unaudited non-GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMBs. I will now turn the call over to our Chairman and CEO Mr. Da Gangfung. Please go ahead.
Hello, everyone. Thank you for joining 36KR First Half 2026 Earning Process Call. 产业服务能力和技术应用能力三者协同基础上的可持续商业价值 In the first half of 2026, in the continued microeconomic uncertainty, the company sustained its profitability trend and maintained solid results across all operating metrics. The key takeaway from this period's result is that our profitability is not a product of short-term financial adjustment, but sustainable commercial values built on the interplay of three strengths, content influence, industrial service capabilities, and technological application properties. The total revenue was 124 million RMB in the first half of 2026, up 33.7% year-over-year. Growth profit was 82.68 million RMB, up 33.1% year over year, with a growth profit margin of 66.4%, net income was 15.37 million RMB, while cash reserve continued to increase, providing ample liquidity to support ongoing operations and strategic investment.
Those are pretty results dim from our long-standing strategy of being the peaks and stover player in the technology industry rather than going all-in on a small business. single technology or industry cycle, we draw our sharp insight into technology and innovation trends. Backed by years of expertise and robust assets to consistently capitalize on opportunities unlocked by 60 waves of industry transformations from artificial intelligence and embodied intelligence to emerging industries such as nuclear fusions, quantum computing, and brain computer interface. Whatever the next wave of technological innovation emerge, 36KR leverage its visionary content layout and commercial service capabilities to engage with the service, business, capital, technology, and local industrial stakeholders across the value chain. The 36 industry future initiative is a a primary example of this capability. By consistently providing forward-looking insights into the latest technology trends, we stress the competitive barriers around our content ecosystem, enhance our operating reliance across technology cycles, and deliver long-term sustainable growth in the commercial value in the wave of technological evolution. 产业服务技术与产品三个维度跟各位同步本期主要经营进展 Let's take a closer look at our major business process for the period in the three areas Content ecosystem, commercialization and industrial service, technology and product 2026年,我们依然在央实内容生态的建设 保持住了36克在中国新经济与科技创新领域的内容影响力 First, content ecosystem will consistently strengthen our content ecosystem during the period, maintaining 36K as content influence across China's new economic and social media. innovation sectors. We continue to expand our footprint across various channels, crafting a comprehensive circulation matrix in compasing major new media platforms like Weibo, Xiaohongshu, Tohtiao, Zhihu, Bilibili, Douyin, and Kuaishu, among others. Broad channel exposure brought us wider overall dissipation and higher our premium content. At the end of June 2026, we had approximately 36.52 million followers.
We've stayed a trend to chance and remain focused on enhancing content quality, consistently delivering high cyber work while maintaining the influence of our flagship channels, including 3600,000. 36KR and 36KR Pro, we ramped up our efforts to spotlight the emergency of intelligence. Our AI-focused account, covering the latest development from AI industry chains, including the Biden State Team, DeepSeek, Tencent Hunyuan, and Alibaba's Tongyi Tianwen, built on a content model containing exclusive access to information within DeepSeek interviews. The channel has established a strong industry footprint in AI coverage. In addition, Hardcore KR, Sharpender is focused on embedded intelligence value chain, differentiating itself through first-to-report coverage on stand-up funding and in deeps founder interviews. Its follower increased by approximately 27%, attracted by coverage spanning key segments across the value chain, including brain chips, tackle sensors, robot body manufacturing and on-device computing power. Its hard-core KR conversation series offered in deep perspective from founders and their technology roadmap and strategic choices, building a differentiated content mode in hardcore technology coverage of other high-quality, vertical-specific accounts like 36KR Auto, Future Consumption, 36KR Games, Leaves, 36KR Finance, and 36KR industry futures also continued to build the momentum, building balancing board coverage with deep-off experts in specialized dominance to provide users with invaluable insights into industry trends and evolving business dynamics. Beyond graphic and text content, we continue to diversify our content formats by delivering premium content across short and long-form videos, audio, live streaming and short plays. In short video, our exceptional content creation capabilities earned us wide speed of visibility and way of review from users. Our radio followers reached 9.63 million. In the first half of 2026, we produced a total of 75 short videos, including a blockbuster on Douyin that garnered over 8.4 million waves. On other radio platforms, we consistently create in-depth pieces that generate more than one million waves each. On the commercial radio side, we continue to produce high-quality content, working closely with companies in support of clients' digital and intelligence transformations, governing a notable 230 million total exposure with a single breakout video Thank you. For live streaming, we made full use of our existing content specific account assets to actively develop live streaming products and explore new avenues for growth and innovation. At China Appliance and Electronic World Expo 2026, held from March 12th and 15th, 36KR launched the Antony AI live stream, conducting live on-site coverage from eight of the most popular brand provisions and the profiling time-leading brands in depth, Giving audience a first-hand look at the latest real-world application of AI technologies broadcast simultaneously across device platforms. The live stream garnered 1.358 million total views and racked up over 80 million impressions network worldwide. During this year, World Artificial Intelligence Conference in July, 36KR served as an ecosystem of partners and special supporting media partners, joined hand with the organizing committee to launch the KR Talk Future Lead Studio. The live stream combined expert panels, live exhibition coverage, where you highlight an in-depth interview with companies, guarding 51.8 million total views and engaging 61,000 viewers across the 36K RLIFD metrics.
In terms of EVAC, The future evaluated 36K's role from the new observer of industry trends to facilitator for industry cooperations. On May 19 to 20, 2026, we hosted the 2026 AI Partner Summit in Beijing, Yizhuang, seemed to take AI to the front line. The SMIT focus on shifting AI from technical discussion to practical implementations, featuring a main forum and an AI plus industry matchmaking meeting that connected technology providers with business holding real industry demands. Over the two-day event, they facilitated more than 100 rounds of in-depth closed-door matchmaking seasons, helping companies identify potential area of collaborations around the specific scenario. Our 2026 AI Partners Meet gathered approximately 120 million waves and attracted over 1,000 on-seat attendees. In addition, from June 16 to 17, 2026, we hosted WIFE 2026 in Tanyu, Guangdong, themed this middle summer. This summit gathered a great generation of investors, industry leaders, scientists, and emerging entrepreneurs for 15 in-depth roundtable discussions and dozens of talks covering core topics such as AI, hardcore technology, embedded intelligence, going global, healthy care, and youth innovation. The event also featured the challenge for intelligent youth and the national AI Plus scenario application competition finals. It's focused on three trackers, AI agents, embodied intelligence hardware, and lightweight one-person entrepreneurship, providing young innovators and their projects with a platform for exposures, evaluation, and feedback, and industry connections. Wave 2026 garnered 180 million Wave and attracted more than 2,000 on-site attendees. 基于身后的内容影响力和丰富的内容方法指导,三车课搭建了行为有效的客户服务体系,从而是我们在这一次史无前一的科技掌讨中实现了商业化的突破。 In the first half of the year, of 2026, thanks to our consistent investment in our content ecosystem and our early positioning in key sectors such as AI and hard core technology, our customer base growth significantly. New customer working with 36KR for the first time accounted for approximately one-third of our total customer base in the period. AI on the foundation models, robotic and embodied intelligence, and was the primary source of our new customers. We also acquired a new customer in the consumer goods, health care, travel and mobility, education and training sectors. This is for statistics care of leadership in new economic communication and our outstanding customer service capabilities.
In terms of commercialization of online results, we generated 104 million RMB in revenue from online advertising service in the first half of 2026, up approximately 40% or year over year. Our flagship channels, including 36KR and 36KR Pro, maintained industry-leading commercial values. At the same time, the influence of our sub-vertical media channels, such as the Emergency of Intelligence, Hardcore KR, 36KR Auto, Future Consumption, Tides, and OUs, continue to expand, emerging as another key driver of our revenue growth. short video also achieved a commercialization book through in the first half of 2026 the revenue approximately doubling year-over-year furthermore we launched the 36 kr pro a new WeChat channel content offering that meaningfully enriched our product line and enable more differentiated pricing this broader range of product options help propel the continued growth in our revenue from online advertising service. In institutional and entrepreneur service, we continue to optimize our business structures, establishing a dual-engine growth model, driven by our submit and ranking alongside content communications. As the primary market gradually recovered, institutional demands for communication service With content focus on institutional funding raising and the portfolio company financing growth rapidly, driving revenue to nearly double year-over-year, we fully leverage the vertical accounts such as WIFE and 36KR industry futures to connect the content, enterprise, capital, technology and local industries results, further unlocking their commercial value. In terms of industrial service commercialization, in addition to hosting large-scale events in K-regions, we continue to advancing the curing day-to-day industrial service while our three-year strategic operations project with Hangzhou Tiantang new area including the Chinese Enterprise International Service Center operation project and the AI phenomena community operation service project continued to progress steadily during this period in the first half of the year we focused primarily on key industrial park including the Chiantan Embodied Intelligence Industrial Park delivering a diverse range of operational activities build around brand of exposures resource connections and enterprise service this initiative effectively enhance the parks industry profile supporting investment inflows and the industry survey building on this project we continue to deepen our industrial service capabilities in the young river deltas lying the foundation of replication across the region for the mall at this year's wave event we showcase the young river deltas industrial resource for Great Bay Area entrepreneurs and investors continues to bridge technological innovation and real-world industry applications. Our industry service has progressively shifted from one-off events towards ongoing operation and deeper customer partnership. In applying AI technologies, we continue to pursue a dual-tackle strategy, improving internal efficiency while productizing our AI capabilities for common stakeholders. In the first half of 2026, we hosted the KR-Star AI Application Challenge internally to deepen adoption of AI tools across our operations. The initiative focused on identifying practical, replicable, and high-value use cases for improving productivity with AI, First, treating a culture where everyone knows how to use AI, AI can be applied everywhere and AI is consistently used to improve efficiency. The competition brought improvement across customer sales process, video and image optimization, internal process management and more, while cultivating a company-wide atmosphere of learning and knowledge sharing. We also continue to optimize our 36KR project recommendations product using foundation model technology we enable online AI conducted interviews to dig deeper into project and automatically generate projects of recommendation based on the interview content in the first half of 2026 our 56k our project recommendations for that help entrepreneurs secure coverage and connection for 1117 projects increasing the conversion rate by nearly 80% year over year. On the back side, 36KR and Softus jointly launched the 36KR on intelligence, which has many programs aimed at retailer investors, a daily sentiment and analysis report for public companies and experts that help users make more informed decisions in stock market another investment market cumulative user have reached 55,200 including more than 10,000 subscribers up 50.5 50.8 percent and 61.7 percent and respectively from 33,600 users and 6,187 subscribers at the end of 2025 and have more than doubled year over year.
Our AI Review Hub at AI436kr.com was launched at the end of the 2025. It is positioned as a点评 of AI Truth, a community platform combining AI Truth discovery and authentic user reviews primarily serve individual and enterprise seeking guidance in selecting AI tools anchored in professional review content and power by product capability upgrades our AI review segment continued to grow across user scale ecosystem development and commercial values on the content site we continue to scale volume now improving qualities publishing accumulative 4,000 and 1962 AI review articles nearly time times the five hundred and sixty articles published up as of the end of 2025 content appeal and user image engagement are raising in fact ecosystem appeal also continue to to stress them with 42 companies while voluntarily listing their products on our AI review hub, with reflecting board market recognition of our precision of the AI application segment. We also comprehensively expanded our review network, adding 260 new reviewers and launching our campus ambassador initiative, building a job tracker review network, spanning both professional and student users. Meanwhile, we continue to broaden our external content distribution channels with a diversified content dissemination, economic ecosystems that leads tracking shots. At the product capability levels, we complete a case upgrade to core modules such as promotional placement, new community form works, leader boards, and the product database. We also roll out our AI review agent with build testing capabilities, creating an end-to-end and AI-powered workflow from conversations to review to content postings. Commercially, we achieved a meaningful breakthrough on the stress of our team in deep product review content. We secured a paid commercialization partnership with Ko-Lin and Kwaisho. AI validating our closed-loop model from professional review content to commercial modernizations. In short, our AI review segment continue to progress rapidly, made by growing industry influence, gather ecosystem breadth and depth, and the expanding motivation capabilities. To sum up, in the first half of 2026, we maintained a solid financial position, while steadily advancing our content innovation, commercialization, upgrades, and AI industry application, we will continue to build depth and emerging industry and technology verticals, become a trusted authority and value, capitalized of industry growth, a facilitator of resource connections, and a contributor to sharp industry standards in the AI year.
With that, I will now turn the call over to our CFO, Mr. Xiang Li, who will discuss our key financial results. We will go ahead, Xiang.
Thank you. Thank you for joining today's presentation. We will now review the first half of the 2026 financial performance. Please note that all amounts are in RMB, unlike otherwise stated. Our company's total revenue increased by 33.7% to $124.6 million in the first half of 2026, from 93.2 million in the same period last year. Online advertising services revenues increased by 38.9% to $103.5 million in the first half of 2026, from $74.5 million in the same period last year. The increase was primarily attributable to surging demand from the AI sector for all advertising solutions. Enterprise value added services revenue increased by 25.4% to $15.3 million in the first half of the 2026 from 12.2 million in the same period last year. The increase was primarily driven by our ongoing refinement of service offerings aimed at a margin improvement. Subscription services revenue were $5.8 million in the first half of 2026, compared to $6.4 million in the same period last year. The decrease was primarily due to a strategic shift in the segment's customer composition. Cost of revenues was $41.9 million in the first half of 2026, a slight decrease of 1.4% from $42.5 million in the same period last year. The decrease was primarily driven by the company's strict cost control measures. Gross profit increased by 63.1% to 82.7 million in the first half of 2026, from 50.7 million in the same period last year. Gross profit margin was 66.4% in the first half of 2026, representing an increase of of 12 percentage points from 54.4% in the same period last year. The increase in gross margin was primarily driven by higher margin from our online advertising services within the AI sector and a significant increase in related revenues. alongside slight payroll-related costs resulting from or strategic workforce management. Operating expenses increased by 6.6% to $59.6 million in the first half of 2026 from $55.9 million in the same period last year. Sales and marketing expenses were $29.2 million in the first half of the 2026, remaining flight year-over-year, reflecting or disciplined approach to sales spending. General and administrative expenses were $24.1 million in the first half of 2026, an increase of 20.5% from $20 million in the same period last year. The increase was primarily related to the increase in allowance for thoughtful accounts and the payroll-related expenses. Research and development expenses were $6.4 million in the first half of 2026. Remaining flights year-over-year primarily reflecting or continued focus on R&D efficiency and strategic programs prioritizations. Share-based compensation expenses recognized in cost of revenue, sales and marketing expenses, expenses, research and development expenses, as well as general and admin expenses totaled 19.7 thousand in the first half of 2026 compared to 89.6 thousand in the same period last year. Other expenses were 7.7 million in the first half of 2026 compared to 0.4 million of other income in the same period last year. The change was mainly due to the increase in long-term investment loss. Income tax expenses were $27,000 in the first half of 2026, compared to $4,000 of income tax credit in the same period last year. Night income. Net income was 15.4 million in the first half of 2026, compared to a net loss of 4.8 million in the same period last year. Non-GAAP adjusted net loss was 15.4 million in the first half of 2026, compared to a non-GAAP adjusted net loss of 4.7 million in the same period last year. Net income attributable to 36KR holding inks ordinary shareholders was 15 million in the first half of 2026 compared to a net loss attributable to 36KR holding inks ordinary shareholders of 5 million in the same period last year. Basic and diluted net income per ADS was 7.058 and 7.056 respectively in the first half of 2026, compared to basic and diluted net loss per ADS of 2.307 in the same period last year. Certain balance sheet items, as of June 30, 2026, the company had cash and the cash equivalents, restrictive cash, and short-term investments of $124.2 million, an increase of 6.9 percent from 116.1 million as of December 31st, 2025. The increase was mainly attributable to positive cash inflow from operating activities. Well, this concludes all our prepared remarks today. We will now open the call to questions. Operator, please go ahead.
Operator
Thank you. If you wish to ask a question, please press star then 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask a question. And the first question will come from Lingyi Zhao with SWS Research. Please go ahead.
My question is, first, face to other media competition, 36K in the AI news report on the main difference in the main difference in the AI news? What is the main difference in the main difference in the AI news? What is the main difference in the AI news? This is my first question. My second question is, 放眼未来,公司认为驱动增长的核心引擎是什么? 包括在加大内容和技术投入以驱动增长与维持盈利和现金流稳健之间,管理城市如何做到平衡? I would like to translate myself. Good evening,大老师. Good evening, management team. Thank you for giving me this opportunity. And my first question is, compared with other media outlets, What are Senshi Liu Ke's key differentiators in AI content coverage? Why do advertisers choose Senshi Liu Ke over specialized AI media outlets? And my second question is, looking ahead, what are the key growth engines for the company? And how does management plan to balance increased investment in content and technology to drive growth with maintaining health profitability and solid cash flow? Thank you.
That's a great question, and the differentiation in AI content coverage comes down to 3K areas.
这意味着广告主持36克 不仅能触达AI的行业受众 还能同时覆盖山下有企业和跨行业用户
First off First our board-based platform reach Our content metrics spans AI Hardcore technology Going global Consumer goods Automotive Gaming Healthy Care and other verticals We have 36.52 million followers across a diverse range of mainstream media platforms, including Weibo, Xiaohongshu, Tohtiao, Zhihu, Bilibili, Douyin, and Kuaishu, among others. This allows advertisers on our platform to reach not only the AI industry audience, but also up-steam and down-steam business and cross-sector users simultaneously.
Something specialized AI media outlets cannot easily deliver second our content model is built on exclusive information access combined with in-depth content output.
At 36KR, we hold ourselves to extremely high standards for content quality. We don't simply follow the latest trends. We insist on real deeps. We consistently offer incentive, original perspectives on industry development and the sectors analyst.
Providing user with invaluable insights into industry trends and evolving business dynamic. 第三是我们的产业服务的全链条能力 广告主选三六克不仅是因为内容专业度 更重要的是综合服务能力 比如说我们在AI partner大会中策划完成了超过一百轮的围绕AI技术 逻辑场景的闭门匹配环节 确实做到了连接技术供给方与真实产业需求方 三六克具备了很强的产业全链条服务能力 广告主在三六克不仅能获得品牌曝光 还能获得产业资源对接和商业合作机会 这是其他垂直媒体无法提供的综合价值 Our end-to-end industrial service advertiser to 36K are not only for our professional content but more importantly for our comprehensive service capabilities.
For example, at this year's AI Partners Meet, we've facilitated more than 100 runs of INDIPS, closed-door matchmaking systems, centered on real-world AI information scenario, effectively connecting technology providers with companies looking for practical solutions. This demonstrated the strong capabilities we build in connecting the full industry value chains. With 36K, advertisers get more than brand exposures. They can also access industry resource and business partnership opportunities, an integrity that specialized media outlets cannot easily provide. 智能永线, 英客等账号的粉丝 正当显著,商业价值正在释放 第二是AI产品的规文化实现 其中AI托评网已经获得可灵和字节的付费合作 且神经网用户同比三倍 三是产业服务的区域复制 我们在杭州的模式被验证和成功后 可推广至其他区域 For the second question, regarding the engine I see four area getting attractions In the near term, AI customer growth will be a key driver. Over the first half of the year, approximately 40% of our new customer came from the AI sector and we continue to see strong momentum in the segment. In the medium term, another area will run in pillars. First, we will deepen the commercialization of our sub-vertical content metrics. Our content such as the Emergency of Intelligence and the Hub Core KR have achieved a significant follower growth, which is now unleashing their commercial values. Second, we will scale the multisamination of AI products. Our AI review hub, ai.36kr.com, secured a paid commercialization partnership with Ko-Ling and Bitdance, and the user base of the 36kr cooperative intelligence has doubled year over year. Third, we will replicate our industrial service model across regions with the Qiantang model now validated. we can roll it out in another region. 每一笔投入都会有明确的商业逻辑和回报语气。 谢谢林一。 In terms of balancing investment and profitability, our philosophy is clear. We invest where we see a clear path to return. Our financial results over the first half reflected this discipline. Growth profit margin continued to improve due to our ongoing efforts to control costs and optimize our customer mix. We place a high priority on financial health and our continually improve operating efficiency while keeping our cost-based lanes. At the same time, we continue to invest in content. This is the core strength that we continuously build the real force, the reliance, and the sustainability of our business operations. We will never pressure growth on the expense of possibilities. Even investors, every investment must have a clear business rationale and a clear path to return. Thank you, Lin.
Operator
The next question will come from Rui Yin with Sealant Securities.
Please go ahead. and how will the AI-class leadership locations in the future of the AI-class media platform and the business-channel platform be placed in time? Let me transmit myself. What's the company's long-term strategy positioning in the AI era? How do you expect the mix between tech media outlets and industrial services platform to evolve in the future? Thank you.
Thank you, Ingrid. the shelf supplier, and even in technology industries. No matter how technology evolves, enterprise demands for building, industry insights, and access to industry resources and the connections will remain strong. As AI adoption accelerates, the demand is only increasing. Our content includes industrial service and technological application capabilities. working concerns to form a closed loop. As for the mix between the two, content advertising remain our business foundation and our traffic gateway, while industrial service are our growth engine and the driver of matching expansions. The relationship between them is a flywheel, not a substitution. Our content influence builds customer trust and stresses our ability to connect to industry resource. In turn, our industrial service deepen our content and industry insights, ultimately attracting more advertising customers. In terms of how the balance will evolve, we expect the share of industrial service to increase steadily. In the first half of the year, we continue to deepen our three-year strategic cooperation projects with Hangzhou-Tian-Hangu area. And our 2026 AI partners meet in Beijing, Yichang, also strengthen our ecosystem influence. Our industrial service is gradually evolving from one-off events towards ongoing operations. That said, content advertising will remain foundational to our revenue base. In the first half of these years, our flagship channels contribute nearly half of online advertising revenues. And both broad videos and institutional communication revenues doubled year over year. With both growth and gaining momentum, we are confident in our future trajectory.
Operator
There are no further questions at this time. I would now like to hand the call back over to management for any closing remarks. Please go ahead.
Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact the StatisticsKR's investor relationship through the contact information provided on our website.
Operator
This does conclude our conference for today. Thank you for your participation. You may now disconnect.
