Press Release: Zhihu Inc. Reports Unaudited Fourth Quarter and Fiscal Year 2025 Financial Results

Dow Jones03-25 17:30

BEIJING, China, March 25, 2026 (GLOBE NEWSWIRE) -- Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Highlights

   -- Total revenues were RMB643.5 million (US$92.0 million), compared with 
      RMB859.2 million in the same period of 2024. 
 
   -- Gross margin was 53.6%, compared with 62.9% in the same period of 2024. 
 
   -- Net loss was RMB210.8 million (US$30.1 million), compared with a net 
      income of RMB86.4 million in the same period of 2024. 
 
   -- Adjusted net loss (non-GAAP)[1] was RMB39.4 million (US$5.6 million), 
      compared with an adjusted net income of RMB97.1 million in the same 
      period of 2024. 
 
   -- Average monthly subscribing members[2] were 12.2 million in the fourth 
      quarter of 2025. 

Fiscal Year 2025 Highlights

   -- Total revenues were RMB2,749.0 million (US$393.1 million), compared with 
      RMB3,598.9 million in 2024. 
 
   -- Gross margin was 59.9%, compared with 60.6% in 2024. 
 
   -- Net loss was RMB195.2 million (US$27.9 million), compared with RMB169.0 
      million in 2024. 
 
   -- Adjusted net income (non-GAAP)[1] was RMB37.9 million (US$5.4 million), 
      compared with an adjusted net loss of RMB96.3 million in 2024. 

"2025 marked a structural inflection point for Zhihu. We achieved our first-ever full-year non-GAAP profitability, building on our initial quarterly non-GAAP profit in the fourth quarter of 2024," said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. "This milestone validates that our shift towards high-quality has strengthened both our operating model and earnings resilience. In the fourth quarter, we drove solid progress across both our community ecosystem and commercialization efficiency. Our DAUs spent more than 41 minutes per day on average on Zhihu, while authentic, expert-driven, high-quality content continued to expand across verticals. Revenue trends improved sequentially, with a meaningfully narrower quarter-over-quarter decline. Entering 2026, while solidifying the foundation of our core business, we are accelerating our commercialization explorations related to AI. By leveraging our vast expert network, trusted content assets, and diverse real-user scenarios, we are building a differentiated moat around our community and enhancing Zhihu's strategic position within the broader AI ecosystem."

"2025 represents a structural upgrade in Zhihu's financial profile," said Mr. Han Wang, chief financial officer of Zhihu. "We delivered our first full year of non-GAAP profitability through sustained cost discipline, improved operating leverage, and tighter expense control, all while maintaining healthy gross margins. Entering 2026, we are focused on further enhancing earnings quality and scalability by prioritizing higher-margin, more capital-efficient revenue streams. At the same time, we remain committed to disciplined capital allocation, including share repurchases, to support long-term shareholder value."

Fourth Quarter 2025 Financial Results

Total revenues were RMB643.5 million (US$92.0 million), compared with RMB859.2 million in the same period of 2024.

Marketing services revenue was RMB234.8 million (US$33.6 million), compared with RMB315.9 million in the same period of 2024. The decrease was primarily due to our proactive and ongoing refinement of service offerings.

Paid membership revenue was RMB333.5 million (US$47.7 million), compared with RMB420.2 million in the same period of 2024. The decrease was primarily due to a decline in the number of our average monthly subscribing members.

Other revenues([3]) were RMB75.2 million (US$10.8 million), compared with RMB123.1 million in the same period of 2024. The decrease was primarily due to the strategic refinement of our vocational training business, partially offset by the growth of revenues generated from our intellectual property derivatives business.

Cost of revenues decreased by 6.2% to RMB298.7 million (US$42.7 million) from RMB318.5 million in the same period of 2024. The decrease was primarily due to a decrease in personnel-related expenses.

Gross profit was RMB344.8 million (US$49.3 million), compared with RMB540.7 million in the same period of 2024. Gross margin was 53.6%, compared with 62.9% in the same period of 2024. The decrease in gross margin was primarily due to our continued efforts in broadening and enhancing content offerings for all of our users.

Total operating expenses were RMB608.7 million (US$87.0 million), compared with RMB528.8 million in the same period of 2024.

Selling and marketing expenses decreased by 13.0% to RMB275.2 million (US$39.4 million) from RMB316.2 million in the same period of 2024. The decrease was primarily due to more disciplined marketing spending and a decrease in personnel-related expenses.

Research and development expenses decreased by 16.0% to RMB123.1 million (US$17.6 million) from RMB146.6 million in the same period of 2024. The decrease was primarily attributable to improvements in our research and development efficiency.

General and administrative expenses were RMB84.0 million (US$12.0 million), compared with RMB66.0 million in the same period of 2024. The increase was primarily attributable to higher share-based compensation expenses.

Impairment of goodwill was RMB126.3 million (US$18.1 million), compared with nil in the same period of 2024. The impairment was primarily attributable to goodwill associated with our prior acquisitions, mainly driven by lower valuations amid the current market conditions.

Loss from operations was RMB263.9 million (US$37.7 million), compared with an income from operations of RMB11.9 million in the same period of 2024.

Adjusted loss from operations (non-GAAP)([1]) was RMB89.3 million (US$12.8 million), compared with an adjusted income from operations of RMB23.1 million in the same period of 2024.

Net loss was RMB210.8 million (US$30.1 million), compared with a net income of RMB86.4 million in the same period of 2024.

Adjusted net loss (non-GAAP)([1]) was RMB39.4 million (US$5.6 million), compared with an adjusted net income of RMB97.1 million in the same period of 2024.

Diluted net loss per American depositary share ("ADS") was RMB2.66 (US$0.38), compared with a diluted net income per ADS of RMB1.00 in the same period of 2024.

Cash and cash equivalents, term deposits, restricted cash and short-term investments

As of December 31, 2025, the Company had cash and cash equivalents, current and non-current term deposits, restricted cash and short-term investments of RMB4,451.2 million (US$636.5 million), compared with RMB4,859.0 million as of December 31, 2024.

Fiscal Year 2025 Financial Results

Total revenues were RMB2,749.0 million (US$393.1 million), compared with RMB3,598.9 million in 2024.

Marketing services revenue was RMB843.9 million (US$120.7 million), compared with RMB1,247.1 million in 2024. The decrease was primarily due to our proactive and ongoing refinement of service offerings.

Paid membership revenue was RMB1,538.9 million (US$220.1 million), compared with RMB1,762.0 million in 2024. The decrease was primarily due to a decline in the number of our average monthly subscribing members.

Other revenues([3]) were RMB366.1 million (US$52.4 million), compared with RMB589.8 million in 2024. The decrease was primarily due to the strategic refinement of our vocational training business.

Cost of revenues decreased by 22.3% to RMB1,101.3 million (US$157.5 million) from RMB1,418.1 million in 2024. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues and a decrease in personnel-related expenses.

Gross profit was RMB1,647.7 million (US$235.6 million), compared with RMB2,180.8 million in 2024. Gross margin was 59.9%, compared with 60.6% in 2024.

Total operating expenses decreased by 19.0% to RMB2,155.0 million (US$308.2 million) from RMB2,661.9 million in 2024.

Selling and marketing expenses decreased by 21.7% to RMB1,252.3 million (US$179.1 million) from RMB1,599.2 million in 2024. The decrease was primarily due to more disciplined marketing spending and a decrease in personnel-related expenses.

Research and development expenses decreased by 28.3% to RMB525.0 million (US$75.1 million) from RMB732.6 million in 2024. The decrease was primarily attributable to improvements in our research and development efficiency.

General and administrative expenses decreased by 23.9% to RMB251.4 million (US$36.0 million) from RMB330.2 million in 2024. The decrease was primarily attributable to a decline in the allowance for expected credit losses on trade receivables.

Impairment of goodwill was RMB126.3 million (US$18.1 million), compared with nil in 2024. The impairment was primarily attributable to goodwill associated with our prior acquisitions, mainly driven by lower valuations amid the current market conditions.

Loss from operations was RMB507.3 million (US$72.5 million), compared with RMB481.1 million in 2024.

Adjusted loss from operations (non-GAAP)([1]) narrowed by 33.6% to RMB269.2 million (US$38.5 million) from RMB405.4 million in 2024.

Investment income was RMB231.9 million (US$33.2 million), compared with RMB65.4 million in 2024. The increase was primarily attributable to unrealized gains as a result of re-measuring the fair value of our investment in a privately held company associated with an observable price change in 2025.

Net loss was RMB195.2 million (US$27.9 million), compared with RMB169.0 million in 2024.

Adjusted net income (non-GAAP)([1]) was RMB37.9 million (US$5.4 million), compared with an adjusted net loss of RMB96.3 million in 2024.

Diluted net loss per ADS was RMB2.41 (US$0.34), compared with RMB1.88 in 2024.

Share Repurchase Programs

As of December 31, 2025, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company's existing share repurchase programs.

([1]) Adjusted income/(loss) from operations and adjusted net income/(loss) are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section "Use of Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

([2]) Monthly subscribing members refers to the number of members who subscribed for our membership packages in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.

([3]) Starting from the third quarter of 2025, the Company simplified its revenue stream by reclassifying vocational training into "others" to align with its overall strategy. Revenues for the applicable comparison periods have been retrospectively reclassified.

Conference Call

The Company's management will host a conference call at 7:00 A.M. U.S. Eastern Time on Wednesday, March 25, 2026 (7:00 P.M. Beijing/Hong Kong Time on Wednesday, March 25, 2026) to discuss the results.

All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers and a unique access PIN which can be used to join the conference call.

Registration Link:

https://register-conf.media-server.com/register/BI08008b110630454896e9325bb3268f90

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhihu.com.

About Zhihu Inc.

Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, Zhihu has grown into the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted income/(loss) from operations and adjusted net income/(loss), to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization and impairment of intangible assets resulting from business acquisitions, impairment of goodwill and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company's management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company's consolidated results of operations in the same manner as they help the Company's management.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB6.9931 to US$1.00, the exchange rate in effect as of December 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

Zhihu Inc.

Email: ir@zhihu.com

Christensen Advisory

Roger Hu

Tel: +86-10-5900-1548

Email: zhihu@christensencomms.com

 
                                                       ZHIHU INC. 
                                UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                                    (All amounts in thousands, except share, ADS, per 
                                              share data and per ADS data) 
 
                                    For the Three Months Ended                            For the Year Ended 
                      ------------------------------------------------------ 
                      December 31,   September           December 31,         December 31,          December 31, 
                          2024        30, 2025               2025                 2024                  2025 
                          RMB           RMB           RMB           US$           RMB           RMB            US$ 
Revenues: 
    Marketing 
     services             315,940       189,388       234,808        33,577     1,247,092       843,933       120,681 
    Paid membership       420,215       385,625       333,469        47,685     1,761,978     1,538,942       220,066 
    Others                123,057        83,916        75,239        10,759       589,835       366,129        52,356 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
Total revenues            859,212       658,929       643,516        92,021     3,598,905     2,749,004       393,103 
Cost of revenues         (318,547)     (255,288)     (298,699)      (42,713)   (1,418,076)   (1,101,259)     (157,478) 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
Gross profit              540,665       403,641       344,817        49,308     2,180,829     1,647,745       235,625 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
 
Selling and 
 marketing expenses      (316,198)     (330,144)     (275,243)      (39,359)   (1,599,186)   (1,252,274)     (179,073) 
Research and 
 development 
 expenses                (146,613)     (114,362)     (123,085)      (17,601)     (732,553)     (524,996)      (75,073) 
General and 
 administrative 
 expenses                 (65,988)      (58,950)      (84,009)      (12,013)     (330,173)     (251,419)      (35,952) 
Impairment of 
 goodwill                       -             -      (126,344)      (18,067)            -      (126,344)      (18,067) 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
Total operating 
 expenses                (528,799)     (503,456)     (608,681)      (87,040)   (2,661,912)   (2,155,033)     (308,165) 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
 
Income/(Loss) from 
 operations                11,866       (99,815)     (263,864)      (37,732)     (481,083)     (507,288)      (72,540) 
 
Other 
income/(expenses): 
Investment income          13,049        37,050        34,629         4,952        65,441       231,864        33,156 
Interest income            26,311        17,306        13,379         1,913       114,964        71,542        10,230 
Fair value change of 
 financial 
 instruments               30,698             -             -             -        78,405             -             - 
Exchange 
 gains/(losses)             1,701           (43)          (56)           (8)        1,013          (233)          (33) 
Others, net                   113          (391)       (2,487)         (356)       42,902        30,641         4,382 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
 
Income/(Loss) before 
 income tax                83,738       (45,893)     (218,399)      (31,231)     (178,358)     (173,474)      (24,805) 
Income tax 
 benefits/(expenses)        2,663          (850)        7,609         1,088         9,391       (21,687)       (3,101) 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
Net income/(loss)          86,401       (46,743)     (210,790)      (30,143)     (168,967)     (195,161)      (27,906) 
Net (income)/loss 
 attributable to 
 noncontrolling 
 interests                   (127)           88         2,156           308        (2,835)        2,260           323 
Net income/(loss) 
 attributable to 
 Zhihu Inc.'s 
 shareholders              86,274       (46,655)     (208,634)      (29,835)     (171,802)     (192,901)      (27,583) 
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
 
Net income/(loss) 
per share 
    Basic                    0.34         (0.19)        (0.89)        (0.13)        (0.63)        (0.80)        (0.11) 
    Diluted                  0.33         (0.19)        (0.89)        (0.13)        (0.63)        (0.80)        (0.11) 
 
Net income/(loss) 
per ADS (One ADS 
represents three 
Class A ordinary 
shares) 
    Basic                    1.01         (0.58)        (2.66)        (0.38)        (1.88)        (2.41)        (0.34) 
    Diluted                  1.00         (0.58)        (2.66)        (0.38)        (1.88)        (2.41)        (0.34) 
 
Weighted average 
number of ordinary 
shares outstanding 
    Basic             256,257,971   239,496,037   235,516,843   235,516,843   273,560,865   240,043,649   240,043,649 
    Diluted           259,990,323   239,496,037   235,516,843   235,516,843   273,560,865   240,043,649   240,043,649 
 
 
 
                                      ZHIHU INC. 
               UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                                      (CONTINUED) 
                   (All amounts in thousands, except share, ADS, per 
                             share data and per ADS data) 
 
                         For the Three Months Ended            For the Year Ended 
                    ------------------------------------ 
                    December                              December 
                      31,      September   December 31,     31,        December 31, 
                      2024     30, 2025         2025        2024           2025 
                      RMB         RMB       RMB     US$     RMB       RMB       US$ 
Share-based 
compensation 
expenses included 
in: 
   Cost of 
    revenues           (314)      110         157     22    3,949     (595)     (85) 
   Selling and 
    marketing 
    expenses            269      (434)        497     71   (1,975)      31        4 
   Research and 
    development 
    expenses         (6,436)    2,825       4,145    593    7,916    5,501      787 
   General and 
    administrative 
    expenses         14,261    20,352      29,503  4,219   49,372   82,346   11,775 
 
 
                                ZHIHU INC. 
              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
                        (All amounts in thousands) 
 
                                  As of December 31,   As of December 31, 
                                         2024                 2025 
                                  ------------------  -------------------- 
                                         RMB              RMB        US$ 
ASSETS 
Current assets: 
    Cash and cash equivalents              3,999,160    3,369,154  481,783 
    Term deposits                            320,088       30,000    4,290 
    Short-term investments                   538,816      840,938  120,253 
    Restricted cash                              900        1,078      154 
    Trade receivables                        420,636      357,998   51,193 
    Amounts due from related 
     parties                                  41,588       25,570    3,656 
    Prepayments and other 
     current assets                          163,446      107,265   15,339 
                                  ------------------  -----------  ------- 
      Total current assets                 5,484,634    4,732,003  676,668 
                                  ------------------  -----------  ------- 
Non-current assets: 
    Property and equipment, net                8,490        5,349      765 
    Intangible assets, net                    54,534       29,588    4,231 
    Goodwill                                 126,344            -        - 
    Long-term investments, net                51,176      158,480   22,662 
    Term deposits                                  -      210,000   30,030 
    Right-of-use assets                        7,151       42,063    6,015 
    Other non-current assets                     623       13,391    1,915 
                                  ------------------  -----------  ------- 
      Total non-current assets               248,318      458,871   65,618 
                                  ------------------  -----------  ------- 
Total assets                               5,732,952    5,190,874  742,286 
                                  ------------------  -----------  ------- 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
Current liabilities: 
    Accounts payable and accrued 
     liabilities                             835,688      681,307   97,426 
    Salary and welfare payables              275,260      188,038   26,889 
    Taxes payables                            22,081       16,285    2,329 
    Contract liabilities                     235,539      186,034   26,603 
    Amounts due to related 
     parties                                   6,825       16,135    2,307 
    Short term lease liabilities              17,308       21,382    3,058 
    Short-term borrowings                          -       35,000    5,005 
    Other current liabilities                131,955      124,233   17,765 
                                  ------------------  -----------  ------- 
      Total current liabilities            1,524,656    1,268,414  181,382 
                                  ------------------  -----------  ------- 
Non-current liabilities: 
    Long term lease liabilities                1,823       15,592    2,230 
    Deferred tax liabilities                   6,830       27,174    3,885 
    Other non-current 
     liabilities                               3,957        4,650      665 
                                  ------------------  -----------  ------- 
      Total non-current 
       liabilities                            12,610       47,416    6,780 
                                  ------------------  -----------  ------- 
Total liabilities                          1,537,266    1,315,830  188,162 
                                  ------------------  -----------  ------- 
 
Total Zhihu Inc.'s shareholders' 
 equity                                    4,136,123    3,804,136  543,984 
Noncontrolling interests                      59,563       70,908   10,140 
                                  ------------------  -----------  ------- 
Total shareholders' equity                 4,195,686    3,875,044  554,124 
                                  ------------------  -----------  ------- 
 
Total liabilities and 
 shareholders' equity                      5,732,952    5,190,874  742,286 
                                  ------------------  -----------  ------- 
 
 
                                           ZHIHU INC. 
                     UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS 
                                   (All amounts in thousands) 
 
                            For the Three Months Ended                 For the Year Ended 
                  -------------------------------------------- 
                     December   September      December 31,     December       December 31, 
                     31, 2024   30, 2025            2025        31, 2024            2025 
                       RMB         RMB         RMB       US$       RMB        RMB        US$ 
Income/(Loss) 
 from 
 operations        11,866        (99,815)  (263,864)  (37,732)  (481,083)  (507,288)  (72,540) 
   Add:                                                                           - 
   Share-based 
    compensation 
    expenses        7,780         22,853     34,302     4,905     59,262     87,283    12,481 
   Amortization 
    and 
    impairment 
    of 
    intangible 
    assets 
    resulting 
    from 
    business 
    acquisitions    3,490          3,490     13,950     1,995     16,460     24,420     3,492 
   Impairment of 
    goodwill            -              -    126,344    18,067          -    126,344    18,067 
                  -------  ---  --------   --------   -------   --------   --------   ------- 
Adjusted 
 income/(loss) 
 from 
 operations        23,136        (73,472)   (89,268)  (12,765)  (405,361)  (269,241)  (38,500) 
                  -------  ---  --------   --------   -------   --------   --------   ------- 
 
 
Net 
 income/(loss)     86,401        (46,743)  (210,790)  (30,143)  (168,967)  (195,161)  (27,906) 
   Add: 
   Share-based 
    compensation 
    expenses        7,780         22,853     34,302     4,905     59,262     87,283    12,481 
   Amortization 
    and 
    impairment 
    of 
    intangible 
    assets 
    resulting 
    from 
    business 
    acquisitions    3,490          3,490     13,950     1,995     16,460     24,420     3,492 
   Impairment of 
    goodwill            -              -    126,344    18,067          -    126,344    18,067 
   Tax effects 
    on non-GAAP 
    adjustments      (600)          (600)    (3,215)     (460)    (3,025)    (5,015)     (717) 
                  -------       --------   --------   -------   --------   --------   ------- 
Adjusted net 
 income/(loss)     97,071        (21,000)   (39,409)   (5,636)   (96,270)    37,871     5,417 
                  -------  ---  --------   --------   -------   --------   -------- 

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