Company: ZHIHF
Filing Date: 2025-04-15
Form Type: 20-F
Source: 0001410578-25-000729
Chunk: 179

Company: Zhihu Inc.
Filing Date: 2025-04-15
Form: 20-F
Item: Item 3
Chunk 179
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 description of the comparison of our operating results for the year ended December 31, 2023 to the year ended December 31, 2022, see “ Item 5. Operating and Financial Review and Prospects - A. Operating Results - Results of Operations - Year Ended December 31, 2023 Compared to Year Ended December 31, 2022” of our annual report on Form 20-F filed with the Securities and Exchange Commission on April 26, 2024.

B. Liquidity and Capital Resources

To date, we have financed our operations primarily through cash generated by historical equity financing. We had cash and cash equivalents, term deposits, short-term investments and restricted cash of RMB6.3 billion, RMB5.5 billion, and RMB4.9 billion (US$665.7 million) as of December 31, 2022, 2023, and 2024, respectively.

We may decide to enhance our liquidity position or increase our cash reserve for future operations and investments through additional financing. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increasing fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

As of December 31, 2024, 64.1% of our cash and cash equivalents were held in China, of which 97.3% was held in Renminbi. As of December 31, 2024, 12.4% of our cash and cash equivalents were held by the VIE and its subsidiaries.

Substantially all of our revenues have been denominated in Renminbi, and we expect them to likely continue in the same manner. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior the approval of the State Administration of Foreign Exchange as long as certain routine procedural requirements are fulfilled. Therefore, our PRC subsidiaries are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements. However, approval from or registration with competent government authorities is required where the Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may