Financial Performance - For the year ended December 31, 2023, net revenues were RMB 2,071,772 thousand, a decrease of 5.2% from RMB 2,185,266 thousand in 2022[594]. - Gross profit for the year ended December 31, 2023, was RMB 585,375 thousand, down 18.3% from RMB 716,345 thousand in 2022[592]. - Operating income for the year ended December 31, 2023, was a loss of RMB 147,668 thousand, compared to a profit of RMB 66,651 thousand in 2022[592]. - The net loss attributable to the company's ordinary shareholders for the year ended December 31, 2023, was RMB 126,651 thousand[592]. - Net revenue for fiscal year 2024 was RMB2,031.8 million (US$278.4 million), a decrease from RMB2,071.8 million in the prior year, primarily due to a decline in the number of paying users[609]. - Gross profit for fiscal year 2024 was RMB556.8 million (US$76.3 million), compared to RMB585.4 million in the prior year[611]. - Operating loss for fiscal year 2024 was RMB89.7 million (US$12.3 million), an improvement from an operating loss of RMB147.7 million in the prior year[615]. - Net loss for fiscal year 2024 was RMB81.0 million (US$11.1 million), compared to a net loss of RMB134.5 million in the prior year[616]. User Engagement and Growth - Average total mobile MAUs decreased from 49,622 thousand in March 2023 to 35,564 thousand in June 2024, reflecting a decline of approximately 28.3%[581]. - Average total monthly paying users decreased from 471.5 thousand in March 2023 to 363.7 thousand in March 2024, a decline of about 22.9%[588]. - The company plans to enhance user engagement by attracting and nurturing high-quality hosts, which is critical for expanding the user base[582]. Cost and Expenses - Revenue sharing fees accounted for 92.1% of total cost of revenues in 2023, amounting to RMB 1,368,498 thousand[595]. - Cost of revenues for fiscal year 2024 was RMB1,474.9 million (US$202.1 million), slightly down from RMB1,486.4 million in the prior year, attributed to decreased salary and welfare benefits expenses and reduced bandwidth costs[610]. - Total operating expenses for fiscal year 2024 were RMB646.6 million (US$88.6 million), down from RMB733.0 million in the prior year[611]. - Research and development expenses for fiscal year 2024 were RMB232.7 million (US$31.9 million), a decrease from RMB301.5 million in the prior year, mainly due to reduced salary and welfare benefits expenses[612]. - Selling and marketing expenses increased by 29% to RMB307.3 million (US$42.1 million) in fiscal year 2024, driven by increased branding and marketing expenses[613]. - General and administrative expenses for fiscal year 2024 were RMB106.6 million (US$14.6 million), significantly lower than RMB193.9 million in the prior year, primarily due to decreased provision for credit loss and share-based compensation expenses[614]. Cash Flow and Capital Management - As of December 31, 2024, the company had cash and cash equivalents of RMB441.9 million (US$60.5 million) and positive working capital of RMB186.6 million (US$25.6 million)[672][673]. - Net cash used in operating activities was RMB26.5 million (US$3.6 million) in 2024, with a net loss of RMB81.0 million (US$11.1 million)[680]. - The company generated net cash from operating activities of RMB136.3 million in 2022, contrasting with net cash used of RMB117.0 million in 2023[682][681]. - Capital expenditures were RMB12.2 million (US$1.7 million) in 2024, with expectations for continued investment in long-term assets[691]. - The company intends to finance future working capital requirements through cash generated from operations and funds raised from financing activities[675]. - Net cash used in investing activities was RMB12.0 million (US$1.6 million) in 2024, primarily due to short-term investments[684]. - The company had net cash used in financing activities of RMB3.0 million (US$0.4 million) in 2024, mainly for repayments of short-term loans[687]. - Total cash, cash equivalents, and restricted cash at the end of 2024 amounted to RMB453.2 million (US$63.0 million)[700]. Tax and Regulatory Matters - For the years ended December 31, 2022, 2023, and 2024, the company recorded income tax expenses of RMB0.2 million, RMB0.4 million, and RMB3.3 million (US$0.5 million), respectively[710]. - The company has established full valuation allowances on deferred tax assets, indicating uncertainty regarding their realizability as of December 31, 2023, and 2024[712]. - The company regularly reviews its tax positions and may adjust unrecognized tax benefits based on new information, including changes in tax laws[710]. - The company’s deferred tax assets are recognized based on management's judgment regarding their realizability, which may involve various tax planning strategies[711]. - The company is subject to PRC laws and regulations, which restrict the provision of funding to its PRC subsidiaries and VIEs, potentially impacting its ability to use IPO proceeds for capital contributions or loans[702]. Technological Capabilities - The company expects to improve operational efficiency through the adoption of advanced streaming and AI technologies[590]. - The company emphasizes the importance of its technological capabilities, including audio making, AI-enabled discovery, and data storage technologies, to enhance operational efficiency and user experience[703].

Table of Contents | --- | --- | --- | --- | |------------|-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------| | | | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 \nFORM 20-F | | | (Mark One) | | | | | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) ...

SINGAPORE, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Sound Group Inc. ("Sound Group" or the "Company") (NASDAQ:SOGP), a global audio-centric social and entertainment company, today issued a letter to shareholders from its founder and Chief Executive Officer, Mr. Marco Lai. Dear Shareholders, In the blink of an eye, the Company is already celebrating the fourth anniversary of its listing. Despite persistent external challenges in 2023, we remain firmly committed to the Company's long-term trajectory. Over the past y ...

Company Overview - Sound Group Inc. is a global audio-centric social and entertainment company with a mission to build the world's largest audio platform to enhance communication and connection through sound [2] Name Change Announcement - The company announced that its American depositary shares will begin trading on Nasdaq under the new name "Sound Group Inc." starting January 26, 2024 [1] - This name change from "LIZHI INC." was approved at an Extraordinary General Meeting of Shareholders held on January 25, 2024 [1] Impact of Name Change - The trading of ADSs under the new name will not affect shareholders' rights, the company's operations, or its financial position [1] - The company does not plan to change its financial strategy or financial reporting as a result of the name change [1]

Group 1 - The company has officially changed its name from "LIZHI INC." to "Sound Group Inc." and its ticker symbol from "LIZI" to "SOGP" effective January 25, 2024 [1][2] - The new name and ticker symbol reflect the company's mission to build the world's largest audio platform for better connection and communication [2][3] - The changes will not impact shareholders' rights, operations, or financial position, and the company will maintain its current financial strategy and reporting [2] Group 2 - Sound Group Inc. is focused on creating an audio-centric social and entertainment platform, aiming to enhance human connection through sound [3] - The company has been listed on Nasdaq since January 2020, indicating its established presence in the market [3]

GUANGZHOU, China, Jan. 11, 2024 (GLOBE NEWSWIRE) -- LIZHI INC. ("LIZHI" or the "Company") (NASDAQ:LIZI), an audio-based social and entertainment platform, today announced that it will change the ticker symbol of its American depositary shares listed on the Nasdaq Capital Market from "LIZI" to "SOGP." Trading under the new ticker symbol is expected to begin at the market opening on January 25, 2024. No action by the Company's shareholders is required with respect to the proposed ticker symbol change, and suc ...

Financial Data and Key Metrics Changes - In Q3 2023, the company's net revenues were RMB425.1 million, a decrease from RMB565.2 million in the same period last year, primarily due to a decline in average paying users and user spending on audio entertainment products [15][16] - Gross profit for the quarter was RMB107.8 million, down from RMB189.1 million year-over-year, resulting in a gross margin of 25% compared to 33% in the same period last year [16] - The net loss for Q3 2023 was RMB62 million, contrasting with a net income of RMB19.8 million in the same period last year, leading to a basic and diluted net loss per ADF of RMB11.01 [19] Business Line Data and Key Metrics Changes - The audio entertainment business focused on optimizing the content creator platform and launched the Starlight Challenge to enhance creator engagement and quality [7][8] - The company reported a total average mobile MAUs of 42.1 million and average monthly paying users of 402.6 thousand [6] Market Data and Key Metrics Changes - The company faced macroeconomic headwinds but continued to pursue its globalization strategy and improve operational efficiency [7][15] - The decline in revenues was attributed to decreased user spending and average paying users, indicating challenges in the market environment [15] Company Strategy and Development Direction - The company is committed to enhancing its core technology capabilities and integrating AIGC and voice AI technologies throughout its business [14] - Future strategies include improving organizational efficiency, developing globalization capabilities, and enhancing overall agility to deliver value to stakeholders [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex market backdrop and uncertainties but emphasized the importance of technological innovation in strengthening core competitiveness [15] - The company aims to refine its business strategies and build a more competitive ecosystem despite macro challenges [13][14] Other Important Information - The company was recognized as one of China's top 100 internet companies for the fifth consecutive year, reflecting its comprehensive capabilities [13] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a detailed Q&A segment [20][21]

Financial Data and Key Metrics Changes - The company's revenue increased by 15% year-over-year to RMB593 million in Q2 2023 [5][14] - Net income for Q2 2023 was RMB11.6 million, down from RMB18.9 million in the same period last year [18] - Gross margin decreased to 29% from 34% year-over-year [15] - Operating income was RMB7.8 million, compared to RMB14.1 million in the same period last year [17] Business Line Data and Key Metrics Changes - The audio entertainment business saw enhanced community engagement through refined operational management and themed activities [6][7] - The average monthly active users (MAUs) reached 45.6 million, with 433,700 average monthly paying users [5] Market Data and Key Metrics Changes - The company continues to expand its global business, launching innovative products like the chatbot MY AI FRIEND in the TIYA App [9][10] - New features such as animated avatars were introduced to enhance user interaction [11] Company Strategy and Development Direction - The company is focused on executing an online audio-centric globalization strategy, optimizing product features, and enhancing user experience [5] - Future plans include advancing product innovation and localization to strengthen global expansion efforts [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro challenges but emphasized commitment to elevating product competitiveness through innovation [13] - The focus will remain on integrating AI technologies and enhancing operational efficiency [12] Other Important Information - Cost of revenues increased by 23% year-over-year, primarily due to higher revenue sharing fees and increased salaries [15] - Cash and cash equivalents, short-term investments, and restricted cash totaled RMB697.1 million as of June 30, 2023 [19] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating that the call concluded without a Q&A segment [20]

Exhibit 99.1 LIZHI INC. Reports Second Quarter 2023 Unaudited Financial Results GUANGZHOU, China, Aug. 29, 2023 /GLOBE NEWSWIRE/ - LIZHI INC. ("LIZHI" or the "Company" or "We") (NASDAQ: LIZI), an audio-based social and entertainment platform, today announced its unaudited financial results for the second quarter ended June 30, 2023. Second Quarter 2023 Financial and Operational Highlights · Net revenues were RMB592.9 million (US$81.8 million) in the second quarter of 2023, representing a 15% increase from R ...

Financial Data and Key Metrics - Revenue increased by 22% year-over-year to RMB 631 million in Q1 2023 [7][13] - Net income surged by 54% sequentially and 194% year-over-year to RMB 48.3 million [7][13] - Total average mobile MAUs reached 49.6 million, with average monthly paying users totaling 471.5 thousand [7] - Gross profit was RMB 196.4 million, with a gross margin of 31% [14] - Non-GAAP gross profit was RMB 198.2 million, with a non-GAAP gross margin of 31% [14] - Operating income was RMB 42.7 million, compared to RMB 14.6 million in Q1 2022 [16] - Non-GAAP operating income was RMB 52.9 million, up from RMB 23.4 million in Q1 2022 [17] - Cash and cash equivalents, short-term investments, and restricted cash totaled RMB 731.3 million as of March 31, 2023 [17] Business Line Performance - The company focused on enhancing audio entertainment product features, boosting commercialization efficiency [7] - Content creator ecosystem was strengthened through refined operations and diversified themed activities, attracting more creators and increasing engagement [8][9] - Global business expansion was supported by the launch of the MY AI FRIEND chatbot in the TIYA App, which improved user engagement and usage time [9][10] Market Performance - The company achieved solid growth across all business segments in Q1 2023 [12] - Overseas business is in the early stages, with monetization models being tested and optimized [21][26] Strategic Direction and Industry Competition - The company aims to build a more competitive audio-based ecosystem and expand its global business [6] - Focus on AI chatbot development, with plans to optimize and upgrade MY AI FRIEND features and integrate AI chatbots into social networking protocols [10][11] - Localized operations and R&D of self-developed core technologies are key to global expansion [11] Management Commentary on Operating Environment and Future Outlook - The company remains committed to innovation and global positioning, with a focus on improving operating efficiency [12][13] - Regulatory environment in the live-streaming sector has seen stricter standards, prompting the company to reinforce compliance management [22][23] Other Important Information - The company launched themed activities and special sessions to enhance interaction in the audio-centric community [9] - MY AI FRIEND chatbot was upgraded to provide a more tailored AI-enabled chat experience, with plans to further optimize voice functions [10][11] Q&A Session Summary Question: Monetization scale of overseas products and regulatory environment changes [20] - Overseas monetization is in the early stages, with subscription models being tested and optimized based on user feedback [21] - Regulatory efforts in the live-streaming sector have strengthened, leading to stricter compliance management [22][23] Question: Progress and outlook for overseas business [25] - Overseas business is steadily developing, with a focus on user experience optimization and function upgrades [26] - Monetization models are being optimized, and investments in localized operations and marketing will continue [27]