Company: ZHIHF
Filing Date: 2025-04-15
Form Type: 20-F
Source: 0001410578-25-000729
Chunk: 341

Company: Zhihu Inc.
Filing Date: 2025-04-15
Form: 20-F
Item: Item 5
Chunk 341
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 for reporting unit.
Revenue growth rate and profit margin. We make assumptions about the demand for our products in the marketplace. These projections are derived using our internal business plan forecasts that are updated at least annually. The internal business plan forecasts are developed considering the market data, selling plan and industry research.
Discount rate. When measuring the fair value of reporting unit, future cash flows are discounted at a rate that is consistent with a weighted-average cost of capital that we anticipate a potential market participant would use. Weighted-average cost of capital is an estimate of the overall risk-adjusted pre-tax rate of return expected by equity and debt holders of a business enterprise. 
Sensitivity Analysis. The estimate of fair value of the reporting units are sensitive to our assumptions in these factors. When one of our estimates of revenue growth rates and discount rate decreased or increased by 1% while holding all other estimates constant, there would be no significant impact to our consolidated financial statements.
For the year ended December 31, 2024, due to the changing market conditions and fluctuations in our share price, we performed both qualitative and quantitative analysis as of December 31, 2024. A third-party valuation firm was engaged to help us determine the fair value of the reporting unit by applying income approach. We concluded that there was no impairment of goodwill as of December 31, 2024.

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