Zhihu Inc. (NYSE: ZH)

Zhihu Inc., also known as Zhihu, is a prominent player in the Chinese online content community industry. Since its inception in 2010 by Mr. Yuan Zhou, it has grown to become one of the largest comprehensive online content communities in China, attracting a diverse range of users and content creators.

Zhihu's business model revolves around a content-centric approach, offering a vast array of content including Q&As, articles, videos, live streaming, and groups. The company's content is primarily organized in the Q&A format, a strategy that has proven effective in fostering user engagement and encouraging content creation. As of December 31, 2023, the platform boasts over 71.3 million cumulative content creators who have contributed 774.7 million pieces of content.

The company's revenue is primarily generated through marketing services, paid membership, vocational training, and other services. Its marketing services encompass online advertising services and content-commerce solutions, enabling merchants and brands to deliver targeted advertisements to users. The company's paid membership program, Yan Selection, offers users access to premium content, including professionally generated and user-generated content.

Zhihu's vocational training service, launched in 2020, has experienced rapid growth. It provides a diverse course portfolio primarily focusing on professional qualification exams and vocational education. In 2023, the service generated revenues of RMB565.6 million (US$79.7 million).

In terms of competition, Zhihu competes with other comprehensive online content communities and specialized online content communities. These competitors may vie for users' attention through better content, evolving user needs, content creation utilities, and brand promotions.

Zhihu's customers are diverse, primarily located in China, with a small number in other countries. The company's user base is characterized by over 74.1% of active users under the age of 30 and 60.5% of total active users being female as of December 2023.

Zhihu's brand portfolio includes Yan Selection for its paid membership program. Additionally, the company explores monetization channels such as the sale of private label products and book series, and has established a feedback mechanism for data collaboration with e-commerce platforms like Taobao and JD.com.

In managing its technological infrastructure, Zhihu utilizes proprietary know-how, AI-powered content assessment algorithms, and established systems and protocols to build and enhance its community culture. The company's infrastructure includes a feed recommendation system, a search system, and a knowledge graph, facilitating efficient distribution of content and personalized recommendations.

Zhihu places a strong emphasis on user privacy and data security, adhering to internal rules, policies, protocols, technologies, and systems to protect personal information. Users consent to the company's data collection, use, and disclosure in compliance with applicable laws and regulations upon accessing its products and services.

Zhihu relies on a combination of patent, copyright, trademark, domain name, and trade secret laws and restrictions to protect its intellectual property rights. As of March 31, 2024, the company had 80 registered patents, 121 pending patent registration applications, 1,346 registered trademarks, 1,107 pending trademark registration applications, registered copyrights to 22 pieces of software, and 19 domain names.

Regulations governing Zhihu include the PRC Telecommunications Regulations, Regulations for the Administration of Foreign-Invested Telecommunications Enterprises, Administrative Provisions on Internet Information Services, and regulations related to mobile internet applications, internet culture activities, and data security.