36Kr Holdings Inc (KRKR) 2022 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Today's conference call is being recorded.

I will now turn the call over to your host, Yang Li, IR Manager of the company. Please go ahead, Yang.

Thank you very much. Hello, everyone, and welcome to 36Kr Holdings' Second Quarter 2022 Earnings Conference Call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earlier press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Co-Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Lin Wei.

Mr. Feng will start the call by providing an overview of the company and performance highlights of the quarter in Chinese, followed by English interpretation. Ms. Wei 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 contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the lease press today. Further information regarding this and other risks and uncertainties is included in the company's first factors and other public sellings as well with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements, except as required in the applicable law.

Please note that 36 Kr's earnings press release and this conference call include discussion of the audited GAAP financial measures as well as unaudited non-GAAP financial measures. 36 Kr's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB.

I will now turn the call over to our Chairman and CEO, Mr. Dagang Feng. Pal, please go ahead.

(foreign language).

[Interpreted] Thank you. Hello, everyone. Thank you for joining our Second Quarter 2022 Earnings Conference Call.

(foreign language).

[Interpreted] In the second quarter of 2022, against the backdrop of COVID-19 resurgences and related control measures as well as macroeconomic headwinds, we delivered a robust financial performance with double-digit growth in terms of revenue and continued increase in gross margin while also achieving profitability for the third consecutive quarter, attachment to our powerful brand influence and our business through resilience and vitality.

(foreign language).

[Interpreted] High-quality content has always been our most prominent advantage and the backlog of our business development. In the second quarter, we continue to optimize our content ecosystem and in which our content columns and formats. Bolstered by our content platform strategy, we still focus on PGC and UGC. We're expanding our contingent more industry-free sort perspective, cultivating and even richer content ecosystem of helping us expand our reach to a wider high-quality user base.

(foreign language).

[Interpreted] Let's take a closer look at some of our accomplishments in content during the quarter. First, our constant content refinance have contributed to more than 150 articles with over 100,000 views, placing us at the forefront of the industry. In the second quarter, our hit articles garnered readership over 100,000 views each due to the trend on following the latest dynamic of popular industry. What's more, Oh! Youth spawned the topic on Weibo, which deeply resonates with users attracting nearly 300 million views and sparkling animated discussion across the Internet.

(foreign language).

[Interpreted] Second, we launched a series of innovative sub-media in China, which significantly improved the reach of our content tolerate well meeting the needs of a more diverse array of users and customers. For example, we launched the Long China 50 series in May where we reselected and showed 50 of the New Economy's most representative companies, all of which are important players, applauding their noteworthy accomplishments in effort to empower game to become a force in propelling the economy's recovery.

We also launched a host of programs as our sub-media talking to different workforce, including Kr Carbon, Wave, Digital Kr, and Career Bonus to improve the breadth and depth of our content with unique topic selections and perspective, satisfying the contents of more diversified user group. Finally, we recently launched a new channel targeting "specialized, refined, differentiated and innovative" companies, keeping them informed of the latest industry trends.

(foreign language).

[Interpreted] On a related note, I'd like to highlight that by finding our premium attention, we continue to enhance our sector market products influence among the wider public. Through our various niche columns, such as Kr Gold and Kr Intelligence, we explore unique topics from various fresh perspectives, conducted in-depth professional analysis and thought-provoking interpretation of listed companies and capital markets, and provided insight into the company's performance and trading trends, attracting massive new followers through Kr Finance. For example, our analyst reports on Lianhua Qingwen Capsule, Luckin Coffee, Miss Fresh, and tourism during the May Day holiday receive recognition from many users and professionals, laying a solid foundation for our commercialization efforts.

(foreign language).

[Interpreted] Meanwhile, our rich media formats, including our short video and live streaming products are growing more mature. In the second quarter, our short video attracts over 7 million followers cumulatively, including multiple standout videos produced by 36Kr which ranked in over 1 million views each on Bilibili. For example, "Status quo of Vocational Schools in China" attracted a total of 2.64 million streams and 150,000 likes across Internet platforms. Thanks to our high-quality content, we ranked #5 on Bilibili's hot video chart in June. We're also becoming the only optimization on the list that is not affiliated with the Chinese government authorities.

(foreign language).

[Interpreted] Regarding live streaming, we actively integrated our existing resources and leveraged the influence of our WeChat Video Account to create a new IP entitled "Kr Planet Live Streaming Room." with "Youth Watch" and "CEO Tips" as its core program. We held a total of 16 live streaming station in this quarter, covering hot topics including enterprises' listing options and how companies can go through the winter in the capital markets. This event activity 36Kr current video resources helped build richer content scenarios and service models.

(foreign language).

[Interpreted] As we unseasonably strive to build and refine our content ecosystem, we have achieved consistent growth in our page view with the number of our total followers exceeding 25 million, an increase of 20% year-over-year and re-endorsement of our premium content and brand influence. Meanwhile, we have been exploring our big community concept to better aggregate our users and improve our user engagement while optimizing our closed-loop ecosystem.

(foreign language).

[Interpreted] In short, our relentless honing and refinement of content and our development of innovative nuanced products and service led to another quarter of excellent performance. Not only did we post solid double-digit year-over-year growth in total revenue and in ongoing improvements in gross margin, but we also achieved profitability for the third consecutive quarter. Next, I'd like to share the progress we have made in commercialization across our business segments.

(foreign language).

[Interpreted] Our advertising business continued to thrive up 12% year-over-year in the second quarter. Despite COVID-19 resurgence and macroeconomic challenges, we achieved year-over-year growth above industry average, a clear indication that 36Kr remind indispensable partner for advertisers' brand marketing.

(foreign language).

[Interpreted] During this quarter, we capitalized on 36Kr's omni-channel presence and multi-dimensional services to continue expanding our customer base, increasing our number of advertisers by 13% year-over-year. We're able to empower customers from both traditional industry and the New Economy to creatively innovate and upgrade their brand marketing. Among traditional industry customers, many in the automobile and real estate industry continue to promote the brand and content in the 36Kr platform despite headwinds from the pandemic, including Beijing Hyundai Motor Company and Gemdale Group. Notably, our market promotion of the renowned automotive manufacturer Beijing Hyundai marked a new high in contract sizes among our advertisers from the automotive industry since 2021.

(foreign language).

[Interpreted] With respect to our collaboration with the New Economy and frontier industries, we leveraged Oh! Youth to provide brand philosophy promotions for more customers, especially those targeting C-end consumers. Following our kick-off of its systematic commercialization in the beginning of this year, Oh! Youth experienced positive growth in the second quarter, achieving 270% sequential growth in contract size. During the second quarter, we cooperated with an area of well-known companies, including Intel, Joyvio, Quwan Group, iKang, and Kuaishou, covering a wide variety of popular industries such as science and technology, healthcare, new consumption, and internet, among others, creating marketing solutions for more brands for more customer acquisition.

(foreign language).

[Interpreted] During the second quarter, against the backdrop of COVID-19 and complicated macroeconomic headwinds, large and small companies across all industries as various challenges and changes. In May, we initiated the "Seeking the Light" program to fulfill our social responsibilities and health business, particularly small and medium-sized enterprises to maintain their brand's share of voice despite the market downturn. By optimizing our product portfolio and rate card, we achieved a marked increase in the number of customers while maintaining our average revenue per user at a relatively stable level.

(foreign language).

[Interpreted] Deploying short video as our flagship product alongside our C-end content program metrics such as Super Review and Oh! Youth has also significantly boosted our commercialization progress in advertising. In the second quarter, Samsung placed an order to promote these products and a traditional commercial bank, Bank of China, promoted its APP through 36Kr's Super Review. Short video's growing popularity among customers have is a useful format for us to effectively attract more advertisers and improve our monetization efficiency.

(foreign language).

[Interpreted] Turning to value-added enterprise services. Despite the impact of COVID-19 resurgences, we were able to maintain our enterprise value-added services revenues at a stable level compared with the period of last year. In terms of offline activities, we proactively transfer certain services to offline and online combined scenarios during the quarter, which partially mitigated the overall impact from the pandemic and related control measures. In addition, our consulting services and integrated marketing services performed remarkably as well during the quarter.

(foreign language).

[Interpreted] In June held an online grand event at "X·36Under36". As a companion and observer of enterprises across verticals, we invite in numerous entrepreneurs and investor representatives from various industries to share their brilliant success stories and convey the most authentic voice of China's new generation of entrepreneurs.

Given the current uncertain environment, 36Kr organized this grand online ceremony for entrepreneurs to boost the venture capital community's confidence and help forge connections among all parties. In addition, we also partner with Kuaishou and Douyin to promote the ceremony and gained great traction among users, achieving total user exposure of $350 million.

(foreign language).

[Interpreted] In terms of regional business expansion, while first-tier cities, including Beijing and Shanghai, were under strict control due to the pandemic. Our regional office in Sichuan and Guangdong were a great boon to our business. For instance, our regional offices in Sichuan and Chongqing jointly created a proprietary IP event entitled "The Marvelous Taste of Bashu," a summit which brought gather local governments and over 100 new consumption enterprises and investment institutions, building a breach of communication between supply and demand to accelerate the development of the new construction industry in the Bashu area. The debut of 36Kr's Marvelous IP series in Sichuan and Chongqing was a triumph, clearly demonstrating that 36 Kr brand influence and service system has taken root in these regions. We have gained over 200 enterprise clients leads from this event, creating projects in progress worth RMB 10 of million as well as potential forward quarters.

(foreign language).

[Interpreted] Furthermore, through an approach combining industry insights and data analysis, 36Kr Research Institutes track the latest development of popular industries and produce frequent high-cost research reports, achieving content dominance and improving customer loyalty. At present, in addition to a large number of local government clients on the coverage side, 36Kr Research Institute is also providing consulting services to a wide range of renowned companies, including Alibaba, Baidu, Tencent ByteDance, Zhiyun Medical, Kao Master, P&G, and Slamtec.

(foreign language).

[Interpreted] Moving on to our integrity marketing services. During the quarter, we continued to make positive progress in our content operation agency service. For instance, through our recent partnership with Huatai Securities, 36Kr will provide content support in agency operations for Huatai's Zhangle Fortune App. Following our partnership with China Merchants Bank and Shanghai Pudong Development Bank, our cooperation with Huatai Securities represents another exploration of our financial agency operation capabilities, which will lay groundwork for us to publicate the cooperation model with additional securities companies in the future.

(foreign language).

[Interpreted] With respect to subscription services, we implemented innovative upgrades to our subscription service system in this quarter, which increased our revenue from subscription service by 58% year-over-year. Take our institutional subscription service as an example, 36Kr conducting Poly Capital with the Wuxi Municipal Government for industry collaborations and integration, demonstrating value of the customized membership service we provided for our institutional clients. Furthermore, despite the postponement of certain courses into our individual subscription due to the pandemic. We made breakthrough progress in multiple-star subscription products such as the BP Building Camp and the Funding Acceleration Camp since July.

(foreign language).

[Interpreted] Last but not least, I'd like to share the latest progress of our Enterprise Service Review platform. During the quarter, we not only continue to rapidly improve our major operating metrics but also achieve fruitful commercialization progress.

(foreign language).

[Interpreted] In terms of operating data, our monthly active user rose more than 18 times year-over-year to nearly 900,000 and the number of authentic reviews climbed 17 times to over 32,000, up 56% sequentially. Meanwhile, we optimized the platform's business coordination, function layouts, and user experience. And as a result, the number of customers are willing to leave their information on the platform more than doubled compared with the beginning of the second quarter. We showcased over 6,600 pieces of mainstream software on the platform, up 84% year-over-year and nearly 20% quarter-over-quarter. Since merchant-oriented features were launched in September 2021, a total of over 860 merchants have set up presence on our platform, rising almost 30% quarter-over-quarter.

(foreign language).

[Interpreted] Regarding commercialization, 36Kr Enterprise Service Review Platform reached our strategic collaboration with Volcano Engine this quarter, focusing on the functions and features of a diversified portfolio of Volcano Engine's products, including cloud computing, big data, and SaaS applications. Meanwhile, we built a product library on our Enterprise Service Review Platform for our Volcano Engine, providing precise and targeting access to specific customer groups. Furthermore, 36Kr Enterprise Service Review Platform will collaborate with Volcano Engine to produce and disseminate various formats of content such as live broadcast and in-depth interviews. Taken together, this strategy will cultivate customer awareness, as well as shape Volcano Engine's brand influence and unique positioning in the SaaS market.

(foreign language).

[Interpreted] Despite a challenging external environment, including pandemic resurgences and macroeconomic downturn, we achieved double-digit growth in total revenue and profitability for the third consecutive quarter. Our robust financial results again demonstrated our business model resilience as well as massive development potential further solidifying our business foundation while handling the inflection point of our company value. Meanwhile, as our second growth engine, our Enterprise Service Review Platform has achieved strong growth in all major operating metrics together with steady development of its commercialization, expanding our service boundaries and unlocking more business potential.

As the New Economy service group, 36Kr remains committed to its original aspirations and will continue to empower its partners with high-quality content, supplying an innovation-driven content ecosystem with dedicated and effective services while hoping to enhance the business efficiency of Chinese enterprises. Moving forward as a companion and enabler of the New Economy, 36Kr will continue to empower more industry participants to achieve high-speed development. Capitalizing on the wave of digital transformation, we are confident that we can create experience value for more users, customers, and investors.

Thank you, Pal, and hello, everyone. Against the backdrop of the pandemic and macroeconomic uncertainties, we achieved solid top-line growth in the second quarter with a 13% year-over-year increase in total revenues and a third consecutive quarter of profitability, a strong testament to our business's resilience and vitality. Notably, our advertising revenues continued to grow, up 12% year-over-year to RMB 57.8 million, outpacing the overall market. In addition, through our multiple efforts to navigate the impact of stringent COVID-19 prevention measures nationwide, we were able to maintain our enterprise value-added services revenues at a stable level, while our subscription services revenue recorded remarkable growth of 58% year-over-year, as we proactively executed certain services through online and virtual scenarios.

In addition, as we continually optimize our cost structure and operating efficiency, we further improved our gross profit margin to 62% in the second quarter, up 5 percentage point year-over-year. On the cash position front, we once again generated positive operating cash flow in the second quarter. Our cash, cash equivalents, and short-term investments increased by over RMB 20 million quarter-over-quarter and over RMB 40 million year-over-year, respectively. Looking ahead, we'll continue to hone our core capabilities and explore diversified growth avenues to drive monetization while also strengthening our long-standing commitment to cultivating a compelling value proposition for more customers, users, and investors.

Now, I'd like to walk you through more details of our second quarter 2020 financial results. Total revenues were RMB 81.7 million in the second quarter of 2022, an increase of 13% compared to RMB 72.1 million in the same period of last year. Online advertising services revenue increased by 12% year-over-year to RMB 57.8 million in the second quarter of 2022. The increase was primarily attributable to more innovative marketing solutions we provided to our customers as well as the proactive sales strategies we adopted to navigate the challenging environment during the quarter.

The number of advertising customers increased by 13% year-over-year, while the ARPU remained largely stable during the quarter. Enterprise value-added services revenue were RMB 14.3 million in the second quarter of 2022, largely flat compared with the same period of last year. We were able to maintain our enterprise value-added services at a steady level despite the resurgence of pandemic during the quarter. This is mainly because we proactively executed certain services through online and virtual scenarios.

Subscription services revenues were RMB 9.5 million in the second quarter of 2022 compared to RMB 6 million in the same period of last year. The increase was primarily attributable to our continuous efforts to offer high-quality subscription products to our subscribers. Cost of revenues were RMB 30.8 million in the second quarter of 2022 compared to RMB 30.7 million in the same period of last year.

Gross profit increased by 23% year-over-year to RMB 50.9 million in the second quarter of 2022 compared to RMB 41.4 million in the same period of last year. Gross profit margin was 62% in the second quarter of 2022 compared to 57% in the same period of last year. The increase was mainly attributable to the economy of scale achieved by our revenue growth as well as the optimized cost structure driven by more services delivered online during the quarter. Operating expenses were RMB 64.6 million in the second quarter of 2022 compared to RMB 75.3 million in the same period of last year. Sales and marketing expenses were RMB 27.4 million in the second quarter of 2022 compared to RMB 33.4 million in the same period of last year.

The decrease was primarily attributable to the decrease in payroll-related expenses, share-based compensation expenses, marketing expenses, and business travel-related expenses. G&A expenses were RMB 23.8 million in the second quarter of 2022 compared to RMB 29.9 million in the same period of last year. The decrease was primarily attributable to the decrease in allowance for credit losses and professional fees, partially upside by the increase in payroll-related expenses. Research and development expenses were RMB 13.4 million in the second quarter of 2022 compared to RMB 12 million in the same period of last year. The increase was primarily attributable to the increase in payroll-related expenses as we bolstered our research and development capabilities, especially for our 36Kr enterprise review platform.

Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses as well as G&A expenses totaled RMB 2.6 million in the second quarter of 2022 compared to RMB 3.3 million in the same period of last year. Other income was RMB 22.7 million in the second quarter of 2022 compared to other expenses of RMB 0.4 million in the same period of last year. This fluctuation was primarily attributable to investment income arising from fair value change of long-term investments and more government grants received in the second quarter of 2022.

Net income was RMB 9 million in the second quarter of 2022 compared to net loss of RMB 34.3 million in the same period of last year. Non-GAAP adjusted net income was RMB 11.6 million in the second quarter of 2022 compared to non-GAAP adjusted net loss of RMB 31 million in the same period of last year. Net income attributable to 36Kr Holdings ordinary shareholders was RMB 8 million in the second quarter of 2022 compared to net loss of RMB 34.1 million in the same period of last year. Basic and diluted net income per ADS were both RMB 19.5 cents in the second quarter of 2022 compared to basic and diluted net loss per ADS of RMB 83.4 cents in the same period of last year.

As of June 30th, 2022, the company had cash, cash equivalents and short-term investments of RMB 194.3 million, increased by RMB 23.2 million compared to the previous quarter and by RMB 44.7 million compared to a year ago. The increase was primarily accruable to cash inflow from operating activities. This concludes our prepared remarks today.

We'll now open the call for questions. Operator, please go ahead.

(Operator Instructions) And today's first question comes from Lingyi with SWS Research.

(foreign language) Let me translate my questions in English. The first one is since the third quarter the impact of COVID in (inaudible) gradually eased. How about the recovery of the company's various business? The second question is, recently, [Bashu] has held several offline summits, and we have noticed that more summits have been scheduled. What are our expectations and arrangements for off-line activities in the second half of the year? My third question is Enterprise Service Review Platform officially announced a one-step marketing service corporation with Baidu. Could you give us more color on this corporation programs?

(foreign language).

[Interpreted] We are currently seeing some improvement in advertising business in the third quarter compared to the same period of last year. Compared with last year, we made -- we have been following several efforts to improve the vitality of advertising business this year. First, we have expanded the coverage industry supporting this year, such as Kr Carbon, Digital Transformation, Career, and so on. So which will bring new business opportunities in the third quarter and the second half of the year.

Second, after more than 1 year of [depiction], short video and QC columns have attracted more and more advertisers at the same time, further expanding more brand-tracking fee end users. So finally, we will continue to optimize our product portfolio at rate card. So we can go through the hard times together with our advertising clients and grow our advertising revenue. So our advertising is more a combination of branding and effects, but therefore, even enter macroeconomic pressures, advertiser demand for brand advertising still exists.

(foreign language).

[Interpreted] So for off-line business, in the first half of this year, due to the impact of pandemic, many of our offline events were delayed or transferred to online form, which did have some impact on revenue. However, we are confident in the pandemic control in the second half of the year, we have planned many same offerings in our pipeline, for example, going Global Forum, Super Automation Forum, New Video Forum, categories, and the end of year [2022] conference. Even if the resurgence of the pandemic has a certain impact on offline events, we still have the capability to prepare online forum. For example, the flagship IP 36Kr, the risk we held insurance with a pure online event with great performance in terms of both influence and commercialization. Therefore, we remain cautiously optimistic on the revenue front.

(foreign language).

[Interpreted] For subscription services, we have maintain a certain proportion of growth in the institutional subscriptions, mainly because we continue to innovate in the membership system and have more potential competition connections between investment institutions and enterprises customers.

In terms of individual subscriptions, many courses were postponed in the first half of the year due to the impact of pandemic. However, since July, 36Kr business school has successfully lever several offline forces with relatively high average revenue for our users. So we expect a certain increase in the third quarter and the second half of the year. So this is the end of the first question.

(foreign language).

[Interpreted] So now is the second question regarding the offline lens. So we believe the dynamics will be manageable in the second half of the year amongst offline summits will take place as planned. So we will launch a series of events related to our key IP such as the [Pavers Taking Fee End Users, the End of the Year Life Conference], Going Global Forum, [Bashu Summit], Life Enterprise Services, and many customers industry forums.

(foreign language).

[Interpreted] So even if the pandemic in the second half of the year, leading to reinforce control measures as we already have mutual capabilities of operating online segments, we will outsole [sell] them online side. On the other hand, our regional offices will expand business to propel growth. Our regional business pension help us reshape many IPs, such as the recovering of the mobile series, spending our activities with regional capitalistic. This is the end of the second question.

(foreign language).

[Interpreted] So regarding collaboration with Volcano Engine, they will focus on the functions and features of a diversified portfolio of Volcano Engine's products, including cloud computing, big data, and self-applications. Meanwhile, we will build our product lever on our enterprise risk reveal platform for Volcano Engine, providing pressures and targeted access to specific customer groups.

Furthermore, to enhance customer awareness and brand increase, we will collaborate with Volcano Engine to produce and determine various forms of content, such as live streaming and in-depth intervals. Volcano Engine has set up its presence on the Enterprise Service Review Platform as merchant and we are helping them with overall operations on the platform and content production as well as handling certain sales leads and customer information.

(foreign language).

[Interpreted] Recently, we have upgraded on collaboration with several well-known SaaS suppliers. And we will provide service to them going forward, including offering sales leads regarding our plans to expand corporation to more sales providers. We will approach it from 2 perspectives: first, through industrial parks and business in lower-tier markets.

We will cover more SaaS products and invite more provider to doing our platform to make our platform more complicated while accumulating more financial customers through the operation and maintenance of the merchant-oriented features; second, by enhancing operational efficiency and optimizing the process for customers to leave their information or sales leads.

We will improve the conversion rates and attract more providers to work with 36Kr Enterprise Service Review Platform and leveraging our customer Bank of Enterprise Service industries, we will start with working enterprise providers to our customers through forum, live streaming, and consulting. Then moving on to in-depth sources such as acquisition of more pressure fleet. So this is the end of the third question.

Our next question comes from Peipei Qiu with Industrial Securities.

(foreign language) I'll translate my question. The first question is about advertisement. We can expect the economy is going to be in low level for a relatively longer time as expected. Could you give us more color of the growth of other transact in that pool? And will we can expect for the coming 2 quarters? And second question is about -- the second question is because management could explain more about our plan as to growth and monetization in short video platforms?

Peipei, thank you for your question. Yes, you can see that in Q2, we delivered another very strong quarter of advertising revenue growth. And compared to others, I think this is a very remarkable success. The reason being, actually, if you look at our pre and the number of the advertisers disclosed in our ER, in our earnings release, actually, our number of advertisers grew by 13%. And we proved actually for the first time in many quarters, I think, declined slightly 1%. That's because, as mentioned, as the CEO mentioned in our prepared remarks that we launched Seeking the Light program, which means in Chinese, (foreign language). That means we actually adjusted our product portfolio and the rate card in the second quarter, meaning that we actually provide some favorable pricing for customers, especially SME advertising customers.

That's why you can see that by that program, we expanded effectively the number of advertisers. That number grows strongly, while we can see that ARPU remained at a very stable level. It actually only slightly declined by 1%. And if you look at our industry-wise, actually, the top industries in our advertisers, namely -- number one, we call it hardcore technologies; and number 2, still Internet services; and number 3 is enterprise services.

And also, there's intelligent manufacturing and new consumption, new consumer businesses. So that's very diversified and especially the hardcore technology sector emerged as a very top-ranked advertising industries for us. I think that's partially driven by our proactive sales strategy that I just described for Q2. And for your second question regarding short-form video as well as our some new columns new product columns, that's very successful. I think that's another very strong driver for the advertising revenue growth in Q2. And we said the short-form video is more and more welcomed by many advertisers.

They previously mainly advertised with us with some articles or retail account disclosure. But now they are more and more using short-form video and our new columns, we created, for example, the Oh! Youth (foreign language) and Super Review, (foreign language), and some other columns are very, very popular among audiences as well as customers.

As we mentioned in the prepared remarks, we -- this quarter, we entered into advertising cooperation with Intel iKang, [Quwan], and Kuaishou, and even IT and Jovyio Internet brands advertised with us. So that's another success. And to give you some ballpark idea of the contribution from short-form video. Actually, if you remember, by the end of last year, as said the proportion of short-form views revenue contribution for advertising dollars is less than 10%.

But by the end of the second quarter, actually, the contribution from short-form video has already rose to around 15%. You can gauge how quickly that short-form video has been developing for the company. I hope this answers the question, Peipei.

And our next question today comes from Jing Chen with CICC.

(foreign language) I will translate myself. Congratulations on the strong financial performance and the challenging environment, the company has strong content capability. Is there any consideration for improving the monetization capability on the user side?

(foreign language).

[Interpreted] So at present, our CN monetization is mainly reflected in our individual subscription business, especially 36Kr Business School. So the 36Kr Business School has set up a number of products such as the recently we completed Business Building Camp and Finance Acceleration Camp, which has been collated recently. So those courses are mainly high-value off-line courses and the main target customers is the founders of the startup.

On the other hand, we also have a low-cost online training courses like [PR Class], which focus on course content such as steel improvement. So moving forward, we will price the core content in the form of open class and small class to build corresponding membership service system and provide courses on clear improvement, business administration, investment, and management resources to entry-level employees and professional leads and high net worth individuals. Thank you.

Thank you. Showing no further questions, I'd like to turn the conference back over to the company for closing remarks.

Thank you for everyone for joining us today. If you have further questions, please feel free to contact 36Kr's Investor Relations with the contact information provided on our website.

Thank you. This concludes this conference call. You may now disconnect your lines. Thank you.