Zhihu Inc. announces restricted share units grant

Published 11/04/2025, 13:00
Zhihu Inc. announces restricted share units grant

BEIJING, Monday - Zhihu Inc. (ZH), a $306 million market cap company specializing in business services, disclosed in a filing with the Securities and Exchange Commission (SEC) today that it has granted restricted share units (RSUs) under its 2022 Share Incentive Plan. According to InvestingPro data, the company currently trades at $3.59 per share and has seen its stock decline nearly 17% over the past year. The announcement was made as part of the company's monthly reporting obligation for foreign private issuers.

The RSUs have been awarded pursuant to Zhihu Inc.'s ongoing efforts to incentivize and retain its employees. The specific terms of the grant, including the number of RSUs awarded and the vesting schedule, were not detailed in the filing. Restricted share units are a form of stock-based compensation used to motivate employees, with shares typically vesting over a set period of time. Analysts maintain a bullish stance on the stock, with InvestingPro data showing price targets ranging from $4.72 to $6.55, suggesting potential upside from current levels.

Zhihu Inc., with its principal executive offices located at 18 Xueqing Road, Haidian District, Beijing, is incorporated under the laws of the People's Republic of China. The company files annual reports under the SEC Form 20-F, as indicated in the filing.

The filing, dated April 11, 2025, was signed by Han Wang, the Chief Financial Officer of Zhihu Inc. This action reflects the company's commitment to align the interests of its employees with those of its shareholders, a common practice among publicly traded companies. InvestingPro analysis indicates the company maintains strong financial health with a current ratio of 3.6x and more cash than debt on its balance sheet, though it remains unprofitable over the last twelve months. For deeper insights into Zhihu's financial position and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The SEC filing ensures transparency and provides investors and the public with essential information regarding Zhihu Inc.'s financial decisions and governance practices. As per SEC regulations, foreign private issuers like Zhihu Inc. are required to report certain material events on Form 6-K.

The information contained in this article is based on Zhihu Inc.'s SEC filing and does not include any additional data or commentary. The granting of RSUs is a routine corporate action and is part of the company's compensation strategy as outlined in their 2022 Share Incentive Plan.

In other recent news, Zhihu Inc. reported its first profitable quarter in Q4 2024, achieving an adjusted net income of RMB 97.1 million. Despite a 24.5% decline in revenue year-over-year to RMB 859.2 million, the company improved its gross margin to 62.9%. Zhihu's focus on high-margin products and cost-cutting measures contributed to this profitability milestone. The company's AI product, JYDAN, also reached 10 million users, reflecting its strategic emphasis on AI integration. Analyst reactions to these developments were not specified in the recent reports. Additionally, Zhihu's cash and equivalents stood at RMB 4.9 billion, highlighting strong liquidity. The company continues to navigate challenges such as revenue decline and market competition while leveraging its AI capabilities for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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