36Kr Holdings Provides Update on its Status under the Holding Foreign Companies Accountable Act

Rhea-AI Summary

36Kr Holdings Inc. (NASDAQ: KRKR) announced an SEC identification under the Holding Foreign Companies Accountable Act (HFCAA) on May 4, 2022, due to its auditor's working papers being uninspectable by the PCAOB. This means that if the SEC identifies the company for three consecutive years, trading would be prohibited. Despite this identification, 36Kr's NASDAQ listing remains unaffected. The company is actively exploring solutions to protect shareholders from potential regulatory risks while complying with laws in both China and the U.S.

Positive

• Company's NASDAQ listing remains unchanged despite SEC identification.
• Management is committed to protecting shareholder interests and value creation.

Negative

• Identified by the SEC due to auditor's uninspectable working papers, posing risk of future trading prohibition.
• Potential long-term risk of delisting if SEC continues to identify the company for three years.

BEIJING, May 6, 2022 /PRNewswire/ -- 36Kr Holdings Inc. ("36Kr" or the "Company") (NASDAQ: KRKR), a prominent brand and pioneering platform dedicated to serving New Economy participants in China, today announced that the Company is aware that it was identified by the U.S. Securities and Exchange Commission ("SEC") on its provisional list under the Holding Foreign Companies Accountable Act ("HFCAA") on May 4, 2022.

This identification indicates that the SEC has determined the Company used an auditor, whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States ("PCAOB"), to issue the audit opinion for the Company's financial statements for the fiscal year ended December 31, 2021.

Under the HFCAA, the trading of a company's securities on a U.S. stock exchange will be prohibited only if the company has been identified by the SEC for three consecutive years due to PCAOB's inability to inspect auditor's working paper. Despite such identification by the SEC, 36Kr's active listing and trading status on the NASDAQ currently remains unchanged.

36Kr has been actively exploring possible solutions to protect our shareholders amid an evolving regulatory environment and mitigate the potential risks associated with the HFCAA. The Company will continue to comply with applicable laws and regulations in both China and the U.S., and strive to maintain its listing status on the NASDAQ. The Board and management team remain highly committed to protecting shareholder interests and driving value creation for the benefit of all shareholders.

About 36Kr Holdings Inc.

36Kr Holdings Inc. is a prominent brand and pioneering platform dedicated to serving New Economy participants in China with the mission of empowering New Economy participants to achieve more. The Company started its business with high-quality New Economy-focused content offerings, covering a variety of industries in China's New Economy with diverse distribution channels. Leveraging traffic brought by high-quality content, the Company has expanded its offerings to business services, including online advertising services, enterprise value-added services and subscription services to address the evolving needs of New Economy companies and upgrading needs of traditional companies. The Company is supported by comprehensive database and strong data analytics capabilities. Through diverse service offerings and the significant brand influence, the Company is well-positioned to continuously capture the high growth potentials of China's New Economy.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goal and strategies; the Company's future business development, results of operations and financial condition; relevant government policies and regulations relating to our business and industry; the Company's expectations regarding the use of proceeds from this offering; the Company's expectations regarding demand for, and market acceptance of, its services; the Company's ability to maintain and enhance its brand; the Company's ability to provide high-quality content in a timely manner to attract and retain users; the Company's ability to retain and hire quality in-house writers and editors; the Company's ability to maintain cooperation with third-party professional content providers; the Company's ability to maintain relationship with third-party platforms; general economic and business conditions globally and in China; possible disruptions in commercial activities caused by natural or human-induced disasters; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

36Kr Holdings Inc.
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com

The Piacente Group, Inc.
Brandi Piacente
Tel: +1(212) 481-2050
E-mail: 36Kr@tpg-ir.com

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SOURCE 36Kr Holdings Inc.

FAQ

What does the SEC identification mean for KRKR?

The SEC identification indicates that 36Kr used an auditor whose working papers cannot be inspected, which could lead to trading prohibition if continued for three years.

Is the NASDAQ listing of KRKR affected by the SEC identification?

No, 36Kr's NASDAQ listing remains unchanged despite the SEC's identification.

What actions is 36Kr taking to address SEC concerns?

36Kr is exploring solutions to protect shareholders and comply with regulations in both China and the U.S.

What is the Holding Foreign Companies Accountable Act (HFCAA)?

The HFCAA is a U.S. law that can prohibit trading of foreign companies if their auditors cannot be inspected by the PCAOB for three consecutive years.