10 Best Performing Chinese Stocks So Far in 2025

8. Zhihu Inc. (NYSE:ZH)

No. of Hedge Fund Holders: 8

YTD Returns: 56.35%

Zhihu Inc. (NYSE:ZH) is another Chinese holding company that operates an online content community. The company is mainly engaged in the provision of advertising services, paid membership services, content monetization solutions, and other services. Zhihu also offers technology, business support, consulting, information transmission, software, IT, and internet services.

Zhihu Inc. is emerging as a leader in China’s content-driven online community, with its core focus on AI and high-quality content creation driving user engagement and positioning the company for profitability. The company is unprofitable but has reduced its losses over the past five years by 15.2% annually. This shows the company’s potential for improvement despite ongoing losses. In Q3 2024, the company indicated to reach break-even in Q4, after a robust performance during the quarter.

During Q3, the company’s paid membership revenue was reported at around 459.4 million yuan, a rise of 11.5% year over year and added 16.5 million new members to the platform. The company’s user engagement also shows significant progress, with daily active user time span increasing by almost 20% year over year. The company’s increased traffic reflects the strong growth in its AI-driven features.

Zhihu Inc.’s (NYSE:ZH) gross profit margin was around 63.9%, a significant milestone as it reached its highest point since its listing. To reduce its losses, the company reported a substantial reduction in total costs and operating expenses, decreasing by more than 35.6% and 30.5%, respectively.