| Additional Information-Parent Company Only Condensed Financial Information |
25. Additional Information—Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the condensed financial information of the Company is required to be presented. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2024 and 2025. 25. Additional Information—Parent Company Only Condensed Financial Information (Continued) (a)Condensed balance sheets of Zhihu Inc. | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | 2025 | | | | RMB in thousands | | US$ in | | | | | | | thousands | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | | 37,711 | | 240,902 | | 34,449 | Term deposits | | 70,378 | | — | | — | Short-term investments | | — | | 71,279 | | 10,193 | Amounts due from subsidiaries and VIEs and VIEs’ subsidiaries | | 2,814 | | 2,893 | | 414 | Prepayments and other current assets | | 7,759 | | 9,727 | | 1,390 | Total current assets | | 118,662 | | 324,801 | | 46,446 | | | | | | | | Non-current assets: | | | | | | | Investments in subsidiaries | | 4,139,841 | | 3,583,957 | | 512,499 | Total non-current assets | | 4,139,841 | | 3,583,957 | | 512,499 | | | | | | | | Total assets | | 4,258,503 | | 3,908,758 | | 558,945 | | | | | | | | LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | Current liabilities: | | | | | | | Accounts payable and accrued liabilities | | 29,858 | | 13,934 | | 1,993 | Other current liabilities | | 31,966 | | 31,253 | | 4,469 | Amounts due to subsidiaries and VIEs and VIEs’ subsidiaries | | 60,556 | | 59,435 | | 8,499 | Total current liabilities | | 122,380 | | 104,622 | | 14,961 | | | | | | | | Total liabilities | | 122,380 | | 104,622 | | 14,961 | | | | | | | | Shareholders’ equity: | | | | | | | Ordinary shares (US$0.000125 par value) | | 203 | | 207 | | 30 | Treasury stock | | (112,057) | | (275,059) | | (39,333) | Additional paid-in capital | | 13,113,010 | | 13,183,041 | | 1,885,150 | Statutory reserve | | 435 | | 706 | | 101 | Accumulated other comprehensive income/(loss) | | 12,383 | | (33,736) | | (4,824) | Accumulated deficit | | (8,877,851) | | (9,071,023) | | (1,297,140) | Total shareholders’ equity | | 4,136,123 | | 3,804,136 | | 543,984 | Total liabilities and shareholders’ equity | | 4,258,503 | | 3,908,758 | | 558,945 |
25. Additional Information—Parent Company Only Condensed Financial Information (Continued) (b)Condensed statements of operations and comprehensive loss of Zhihu Inc. | | | | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | | RMB in thousands | | US$ in | | | | | | | | | thousands | Operating expenses: | | | | | | | | | General and administrative expenses | | (45,625) | | (41,861) | | (22,159) | | (3,169) | Total operating expenses | | (45,625) | | (41,861) | | (22,159) | | (3,169) | | | | | | | | | | Loss from operations | | (45,625) | | (41,861) | | (22,159) | | (3,169) | Other income/(expenses): | | | | | | | | | Interest income | | 5,105 | | 8,559 | | 23,540 | | 3,366 | Exchange gains | | 138 | | 8 | | — | | — | Investment income | | — | | 13 | | 999 | | 143 | Share of loss of subsidiaries | | (816,004) | | (181,878) | | (219,832) | | (31,436) | Others, net | | 12,745 | | 43,357 | | 24,551 | | 3,513 | | | | | | | | | | Net loss | | (843,641) | | (171,802) | | (192,901) | | (27,583) | | | | | | | | | | Net loss attributable to Zhihu Inc.’s shareholders | | (843,641) | | (171,802) | | (192,901) | | (27,583) | | | | | | | | | | Net loss | | (843,641) | | (171,802) | | (192,901) | | (27,583) | Other comprehensive income/(loss): | | | | | | | | | Foreign currency translation adjustments | | 45,257 | | 32,934 | | (46,119) | | (6,594) | Total other comprehensive income/(loss) | | 45,257 | | 32,934 | | (46,119) | | (6,594) | | | | | | | | | | Total comprehensive loss | | (798,384) | | (138,868) | | (239,020) | | (34,177) | Comprehensive loss attributable to Zhihu Inc.’s shareholders | | (798,384) | | (138,868) | | (239,020) | | (34,177) |
25. Additional Information—Parent Company Only Condensed Financial Information (Continued) (c)Condensed statements of cash flows of Zhihu Inc. | | | | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | | RMB in thousands | | US$ in | | | | | | | | | thousands | Net cash (used in)/provided by operating activities | | (44,388) | | 18,577 | | 17,866 | | 2,555 | Purchases of term deposits | | (72,054) | | (69,150) | | (502,525) | | (71,860) | Proceeds from withdrawal of term deposits | | — | | 71,006 | | 564,963 | | 80,789 | Purchases of short-term investments | | — | | (35,679) | | (71,013) | | (10,155) | Proceeds of maturities of short-term investments | | — | | 35,582 | | — | | — | Repayment from subsidiaries of investment | | 284,017 | | 670,696 | | 2,377,171 | | 339,931 | Investment in subsidiaries | | — | | (258,192) | | (2,015,804) | | (288,256) | Net cash provided by investing activities | | 211,963 | | 414,263 | | 352,792 | | 50,449 | Proceeds received from employees in relation to share options and restricted shares | | 4,513 | | 1,158 | | 431 | | 62 | Payments for repurchase of shares | | (369,569) | | (400,707) | | (167,060) | | (23,889) | Net cash used in financing activities | | (365,056) | | (399,549) | | (166,629) | | (23,827) | Effect of exchange rate changes on cash and cash equivalents | | 3,340 | | 1,549 | | (838) | | (121) | Net (decrease)/increase in cash and cash equivalents | | (194,141) | | 34,840 | | 203,191 | | 29,056 | Cash and cash equivalents at beginning of the year | | 197,012 | | 2,871 | | 37,711 | | 5,393 | Cash and cash equivalents at end of the year | | 2,871 | | 37,711 | | 240,902 | | 34,449 |
|