Core Points - The Skechers World Champions Cup supporting Shriners Children's will take place from December 4-7, 2025, in Clearwater, Florida, with Skechers as the Title Sponsor and Shriners Children's as the Official Charity Partner [1][2][4] - The tournament is inspired by the Ryder Cup and Presidents Cup, featuring Team USA, Team International, and Team Europe competing for international pride and bragging rights [2][11] - The inaugural event in 2023 was successful, with Team USA winning by just two points over Team International [9] Company Involvement - Skechers, known as The Comfort Technology Company®, aims to enhance the golf experience through innovative products and engaging fan experiences at the tournament [4][12] - Shriners Children's will benefit from the event and will host the Shriners Children's Celebrity Classic, furthering its mission in pediatric specialty care [5][6][13] Event Details - The tournament will be held at Feather Sound Country Club, a challenging par-72 course, recognized as one of the top private clubs in the Tampa Bay area [6][15] - The competition format includes three days of nine-hole matches, with points awarded for each hole won across 24 matches [10][11] - Coverage of the event will be provided by ABC and ESPN, with specific air dates on December 4, 5, and 7 [8][10]

Group 1 - Barrick Mining has multiple positive factors that could drive the stock to outperform over the next year or two [1] - The stock is reasonably valued, indicating potential for upside as the company continues to grow [1] - The focus is on growth and momentum stocks that are reasonably priced and likely to outperform the market in the long term [1] Group 2 - The article emphasizes the importance of investing in high-quality growth stocks [1] - Historical context is provided, noting that the S&P 500 increased by 367% and the Nasdaq by 685% from 2009 through 2019 following strategic investment advice [1]

Group 1 - The primary investment interest lies in the fixed-income segment of the market, necessitating up-to-date knowledge of new IPOs in this area [1] - The article emphasizes the importance of conducting thorough analyses of newly listed companies to identify potential investment opportunities [1] Group 2 - The content does not provide specific information regarding company performance or industry trends [2]

Core Insights - Credo Technology Group Holding Ltd (CRDO) is positioned as a strong player in high-speed connectivity, driven by the increasing demand for data infrastructure and AI workloads [1] Financial Performance - For Q4 fiscal 2025, CRDO reported a non-GAAP operating margin of 36.8%, an increase of 538 basis points from the previous quarter [2][9] - The non-GAAP net margin reached 38.4%, exceeding the long-term target range of 28% to 33% [2] - Fiscal 2025 saw an operating margin expansion of 2,500 basis points, attributed to robust revenue growth and effective cost control [2] Revenue Growth - Revenues nearly tripled from Q1 to Q4 of fiscal 2025, driven by a shift towards efficient connectivity solutions [3] - Significant growth was noted in Active Electrical Cables (AECs), optical products, and retimers, with a notable win in the optical segment for an 800G transceiver [3] Future Outlook - For fiscal 2026, CRDO anticipates revenues to exceed $800 million, indicating over 85% year-over-year growth [4] - Non-GAAP operating expenses are expected to rise at less than half the rate of revenues, potentially driving the non-GAAP net margin to nearly 40% [4] Q1 Fiscal 2026 Projections - For Q1 fiscal 2026, CRDO expects revenues between $185 million and $195 million, suggesting a 12% sequential increase [5] - Non-GAAP gross margin is projected to be between 64% and 66%, with operating expenses forecasted between $54 million and $56 million [5] Competitive Landscape - CRDO faces competition from semiconductor giants like Broadcom Inc. and Marvell Technology, which may impact its growth trajectory [6] Market Performance - CRDO shares have increased by 197.8% over the past year, significantly outperforming the Electronics-Semiconductors industry's growth of 18.5% [11] - The company is currently trading at a price/book ratio of 24.54, higher than the sector's average of 9.91 [12] Earnings Estimates - The Zacks Consensus Estimate for CRDO's earnings for fiscal 2026 has been revised upward in the past 60 days [13]

Core Insights - AudioEnhancer.ai has launched a free browser-based audio enhancement platform aimed at providing studio-quality voice recordings without the need for software installation or subscription fees [1][5] - The platform claims to deliver performance comparable to Adobe Podcast Audio Enhancer, with features such as background noise removal and vocal clarity enhancement [2][5] - The tool utilizes AI models trained on thousands of voice recordings to optimize audio quality, making it user-friendly and accessible for various applications [3][4] Company Overview - AudioEnhancer.ai is designed for creators, educators, and professionals, offering instant voice enhancement and noise removal capabilities [5] - The platform is completely free to use, requires no account registration, and supports popular audio formats, making it globally accessible [4][5] - The interface allows users to easily drag and drop files for processing, ensuring a quick turnaround for polished audio [3][4]

Core Viewpoint - Sound Group Inc. has announced a share repurchase program with an aggregate value of up to $4 million, reflecting the company's confidence in its growth prospects and commitment to delivering sustainable value to stakeholders [1][2]. Company Overview - Sound Group Inc. is a global audio-centric social and entertainment company, aiming to build the world's largest audio platform to enhance human connection through sound [3]. Share Repurchase Program Details - The share repurchase program allows the company to buy back its Class A ordinary shares, including those in the form of American depositary shares, starting immediately [1]. - The repurchases may occur in the open market at prevailing prices, through privately negotiated transactions, block trades, or other legally permissible means, depending on market conditions [2]. - Funding for the repurchases will come from the company's existing cash balance or future cash generated from operations [2].

Core Viewpoint - Stardust Solar Energy Inc. has entered into a partnership with B2B Solar Solutions to establish a dedicated warehousing, logistics, and fulfillment center in Owen Sound, Ontario, aimed at enhancing the distribution of renewable energy equipment across Canada [1][2]. Strategic Context - Stardust Solar currently operates 93 franchise territories in North America and aims to exceed 100 territories by the end of 2025, with the new distribution hub expected to accelerate franchise growth [3]. - The Owen Sound facility will serve as the primary Canadian warehouse, complementing existing U.S. logistics centers and providing coast-to-coast coverage [7]. Economic Alignment - The partnership allows Stardust Solar to fund all inventory while B2B Solar Solutions manages warehousing and fulfillment, with a 50/50 sharing of incremental margin above the base distributor price [7]. Operational Details - The hub is projected to handle over 25 MW of solar PV products annually, with options for future expansion [7]. - Initial inventory staging for deliveries is set to begin in June 2025, with franchisees able to place stock orders starting May 27, 2025 [4].

SINGAPORE, April 29, 2025 (GLOBE NEWSWIRE) -- Sound Group Inc. (“Sound Group” or the “Company”) (NASDAQ: SOGP), a global audio-centric social and entertainment company, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission (the “SEC”) on April 29, 2025 (U.S. Time). The annual report, which contains the Company’s audited consolidated statements, can be accessed on the SEC’s website at http://www.sec.gov and the Co ...

[Introduction](index=4&type=section&id=INTRODUCTION) This section provides definitions for key terms used throughout the annual report, such as 'active users', 'MAUs' (monthly active users), and 'paying users'), and specifies the currency translation rate used for financial figures, which is **RMB7.2993 to US$1.00** as of **December 31, 2024** [Definitions and Conventions](index=4&type=section&id=INTRODUCTION) This section provides definitions for key terms used throughout the annual report, such as 'active users', 'MAUs' (monthly active users), and 'paying users'. It also specifies the currency translation rate used for financial figures, which is RMB7.2993 to US$1.00 as of December 31, 2024 - An 'active user' is defined as a user who visited the company's platforms at least once in a given period, measured by the number of unique mobile devices that launched the mobile apps. This means a single individual with multiple devices could be counted as multiple users[16](index=16&type=chunk) - A 'paying user' is a user who has purchased virtual items or other products and services at least once during the relevant period. The company notes that a unique user may have multiple paying accounts[16](index=16&type=chunk) - All translations from RMB to U.S. dollars in the report are made at a rate of **RMB7.2993 to US$1.00**, the exchange rate on **December 31, 2024**[19](index=19&type=chunk) [Forward-Looking Information](index=6&type=section&id=FORWARD-LOOKING%20INFORMATION) This section contains a standard disclaimer regarding forward-looking statements, identifying signal words and listing factors that could cause actual results to differ materially [Forward-Looking Statements Disclaimer](index=6&type=section&id=FORWARD-LOOKING%20INFORMATION) This section contains a standard disclaimer regarding forward-looking statements. It identifies words that signal such statements (e.g., 'anticipate,' 'believe,' 'expect') and lists factors that could cause actual results to differ materially, including government policies, economic conditions, and other risks detailed in 'Item 3.D. Risk Factors' - The report contains forward-looking statements concerning the company's goals, strategies, future business development, and financial condition[22](index=22&type=chunk)[23](index=23&type=chunk) - Key uncertainties affecting these statements include government regulations, economic conditions in China and overseas, and other risk factors discussed in the report[26](index=26&type=chunk) [PART I](index=7&type=section&id=PART%20I) [Item 3. Key Information](index=7&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details the company's Variable Interest Entity (VIE) structure, its financial contribution, status under the Holding Foreign Companies Accountable Act (HFCAA), and an extensive overview of various risks [Corporate Structure, Operational Risks, and Cash Flows](index=7&type=section&id=Our%20Corporate%20Structure%20and%20Contractual%20Arrangements) The company operates in China through a Variable Interest Entity (VIE) structure to comply with PRC foreign investment restrictions, posing unique risks as the company controls VIEs contractually, which generated **99.8%** of total net revenues and **41.5%** of consolidated total assets in **2024** - The company operates in China through a VIE structure, where its PRC subsidiaries have contractual control over the VIEs (Guangzhou Lizhi and Guangzhou Huanliao) that hold key operating licenses[30](index=30&type=chunk)[31](index=31&type=chunk) VIE Financial Contribution | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **VIE Revenue as % of Total** | 98.6% | 99.9% | 99.8% | | **VIE Assets as % of Total** | N/A | 35.6% | 41.5% | - In **2024**, the VIEs transferred **RMB 176.0 million (US$24.5 million)** to the company's PRC subsidiaries as payment for technical development service fees[37](index=37&type=chunk) - The company faces significant oversight from the PRC government, which could impact operations and the value of its ADSs. Future offshore offerings may require filing with the CSRC[33](index=33&type=chunk)[35](index=35&type=chunk) [Condensed Consolidating Financial Schedules](index=10&type=section&id=Condensed%20Consolidating%20Schedule) This section provides detailed consolidating financial schedules, breaking down statements of operations, balance sheets, and cash flows by entity type, illustrating financial interplay and significant concentration of third-party revenues within VIEs Condensed Consolidating Statement of Operations (Year Ended Dec 31, 2024, RMB in thousands) | Entity Type | Third-party revenues (RMB in thousands) | Gross profit (RMB in thousands) | Net (loss)/income (RMB in thousands) | | :--- | :--- | :--- | :--- | | Sound Group Inc. | — | — | (69,580) | | Other Subsidiaries | 5,062 | 23,441 | (62,897) | | WFOEs | 80 | 161,413 | 15,074 | | VIEs and VIEs' Subsidiaries | 2,026,664 | 569,648 | (56,416) | | **Consolidated Total** | **2,031,806** | **556,858** | **(80,976)** | Condensed Consolidating Balance Sheet (As of Dec 31, 2024, RMB in thousands) | Entity Type | Cash and cash equivalents (RMB in thousands) | Total assets (RMB in thousands) | Total liabilities (RMB in thousands) | | :--- | :--- | :--- | :--- | | Sound Group Inc. | 132,787 | 493,953 | 258,664 | | Other Subsidiaries | 90,914 | 235,263 | 462,543 | | WFOEs | 30,464 | (22,639) | 113,678 | | VIEs and VIEs' Subsidiaries | 187,693 | 284,498 | 711,903 | | **Consolidated Total** | **441,858** | **521,440** | **307,135** | - The VIEs hold unrecognized revenue-producing assets, including the ICP License and the Internet Culture Operating License, which are crucial for the company's operations[58](index=58&type=chunk) [Holding Foreign Companies Accountable Act (HFCAA)](index=15&type=section&id=Holding%20Foreign%20Companies%20Accountable%20Act) The company addresses its status under the Holding Foreign Companies Accountable Act (HFCAA), noting that its current auditor is subject to PCAOB inspection, thus mitigating the risk of a trading prohibition - The company was previously identified under the HFCAA in May 2022 because its former auditor was in a jurisdiction the PCAOB could not inspect[62](index=62&type=chunk) - The company's current auditor, Enrome LLP, is based in Singapore and is subject to PCAOB inspection. As a result, the company believes it is not currently at risk of a trading prohibition under the HFCAA[63](index=63&type=chunk) [Risk Factors](index=16&type=section&id=3.D.%20Risk%20Factors) This section outlines principal risks, including internal control weaknesses, complexities of operating in China, online audio industry challenges, VIE structure risks, and ADS price volatility - The company completed an independent investigation in **October 2024** regarding a **US$12.8 million** deposit, which uncovered internal control weaknesses[69](index=69&type=chunk)[74](index=74&type=chunk) - **Two material weaknesses** in internal control over financial reporting were identified as of **December 31, 2024**, related to insufficient accounting personnel and inadequate risk monitoring of financial assets[69](index=69&type=chunk)[76](index=76&type=chunk) - Significant risks are associated with the PRC government's oversight, data privacy regulations (like the Cybersecurity Law), and anti-monopoly laws, which could adversely affect business operations[69](index=69&type=chunk) - The company's reliance on its VIE structure is a major risk, as PRC government actions could render the contractual arrangements unenforceable, potentially causing the company to lose control over its China operations[71](index=71&type=chunk) - The company was likely a Passive Foreign Investment Company (PFIC) for **2024** and faces a significant risk of being a PFIC in **2025**, which has adverse U.S. federal income tax consequences for U.S. investors[367](index=367&type=chunk) [Item 4. Information on the Company](index=75&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of Sound Group Inc., detailing its history, business operations, corporate structure, and reliance on a VIE structure for China operations [History and Development of the Company](index=75&type=section&id=4.A.%20History%20and%20Development%20of%20the%20Company) The company, founded in 2010, launched its LIZHI App in 2013, listed on Nasdaq in **January 2020**, and changed its name to 'Sound Group Inc.' in **January 2024**, operating globally through a VIE structure in China amidst regulatory uncertainties - In **January 2024**, the company changed its corporate name from 'LIZHI INC.' to 'Sound Group Inc.' and its Nasdaq ticker symbol from 'LIZI' to 'SOGP'[386](index=386&type=chunk) - The company completed its IPO in **January 2020** and a follow-on offering in **April 2021**. It also authorized a **US$3.0 million** share repurchase program in December 2023[382](index=382&type=chunk)[385](index=385&type=chunk) - The company faces significant regulatory uncertainty from recent PRC rules on cybersecurity, data security, and overseas listings, including the CSRC's Trial Measures effective March 2023, which may require filings for future offerings[389](index=389&type=chunk)[390](index=390&type=chunk)[399](index=399&type=chunk) - The company's ability to pay dividends and service debt depends on payments from its PRC subsidiaries, which are subject to PRC regulations on profit distribution and foreign exchange controls[404](index=404&type=chunk)[406](index=406&type=chunk) [Business Overview](index=81&type=section&id=4.B.%20Business%20Overview) Sound Group Inc. is a global audio-centric social and entertainment company focusing on audio entertainment, social networking, and podcasts, with revenue primarily from virtual gift sales, leveraging proprietary technologies and facing intense competition - The company's business focuses on audio entertainment, social networking, and podcasts, with a mission to build the world's largest audio platform[409](index=409&type=chunk) Key Operating Metrics (Annual) | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Average Total Mobile MAUs (millions) | **50.4** | **43.3** | **34.2** | | Average Total Monthly Paying Users (thousands) | **483.9** | **418.3** | **391.3** | Revenue Breakdown (2024) | Revenue Source | Amount (RMB million) | % of Total | | :--- | :--- | :--- | | Audio entertainment | **2,018.6** | **99.4%** | | Podcast, advertising and others | **13.2** | **0.6%** | | **Total Net Revenues** | **2,031.8** | **100.0%** | - The company has developed proprietary technologies including DOREME (real-time communication), VoderX (instant messaging), Voice Cloud (hybrid cloud), and is exploring voice AI and AIGC[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk)[423](index=423&type=chunk) - As of **December 31, 2024**, the company held **65 patents** in China, **466 trademarks in China**, **496 trademarks overseas**, and **133 software copyrights in China**[434](index=434&type=chunk)[438](index=438&type=chunk) [Organizational Structure](index=102&type=section&id=4.C.Organizational%20Structure) This section outlines the company's corporate structure, centered around its Cayman Islands holding company and its operations in China through Wholly Foreign-Owned Enterprises (WFOEs) and Variable Interest Entities (VIEs), controlled via contractual arrangements due to PRC foreign ownership restrictions - The company uses a VIE structure to operate in China due to legal restrictions on foreign ownership in the value-added telecommunication services sector[555](index=555&type=chunk) - The contractual arrangements with the VIEs (Guangzhou Lizhi and Guangzhou Huanliao) and their shareholders are designed to give the company effective control and entitle it to substantially all economic benefits[558](index=558&type=chunk) - Key agreements in the VIE structure include: Equity Pledge Agreement, Exclusive Equity Transfer Option Agreement, Exclusive Technical Consulting and Service Agreement, and Power of Attorney[559](index=559&type=chunk)[560](index=560&type=chunk)[561](index=561&type=chunk)[562](index=562&type=chunk)[563](index=563&type=chunk) - In **2024**, revenues from the VIEs accounted for **99.8%** of the company's total net revenues, and service fees paid from the VIEs to PRC subsidiaries amounted to **RMB 176.0 million**[555](index=555&type=chunk) [Property, Plant and Equipment](index=107&type=section&id=4.D.Property,%20Plant%20and%20Equipment) The company's principal executive offices are in Singapore, with most of its leased office space in Guangzhou, and its IT infrastructure relies on leased Internet data centers and content delivery networks from major domestic providers - As of **December 31, 2024**, the company leased a total of approximately **8,476 square meters** of office space, with about **69%** located in Guangzhou[572](index=572&type=chunk) - The company's main IT infrastructure, including data centers and content delivery networks, is leased from major domestic providers[573](index=573&type=chunk) [Item 5. Operating and Financial Review and Prospects (MD&A)](index=107&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides management's discussion and analysis of the company's financial condition and results of operations, detailing factors affecting performance, year-over-year analysis, liquidity, capital resources, R&D efforts, and critical accounting policies [Operating Results](index=107&type=section&id=5.A.Operating%20Results) The company's operating results are primarily affected by its ability to expand its user base, retain hosts, and monetize its platform, with net revenues decreasing to **RMB 2,031.8 million** in **2024** but net loss narrowing to **RMB 81.0 million** Quarterly Average Total Mobile MAUs (in thousands) | Quarter | 2023 | 2024 | | :--- | :--- | :--- | | Q1 | 49,622 | 35,776 | | Q2 | 45,607 | 35,564 | | Q3 | 42,138 | 32,251 | | Q4 | 36,022 | 33,173 | Quarterly Average Total Monthly Paying Users (in thousands) | Quarter | 2023 | 2024 | | :--- | :--- | :--- | | Q1 | 471.5 | 363.7 | | Q2 | 433.7 | 388.8 | | Q3 | 402.6 | 398.9 | | Q4 | 365.3 | 413.6 | Consolidated Results of Operations (RMB in thousands) | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net revenues (RMB in thousands) | 2,185,266 | 2,071,772 | 2,031,806 | | Gross profit (RMB in thousands) | 716,345 | 585,375 | 556,858 | | Operating income/(loss) (RMB in thousands) | 66,651 | (147,668) | (89,703) | | Net income/(loss) (RMB in thousands) | 86,504 | (134,515) | (80,976) | | Net (loss) per ADS (Basic) | 16.69 | (23.48) | (13.55) | - Net loss for **2024** was **RMB 81.0 million**, an improvement from a net loss of **RMB 134.5 million** in 2023. The change was driven by decreased R&D and G&A expenses, which offset a **29% increase** in selling and marketing expenses[611](index=611&type=chunk)[612](index=612&type=chunk)[613](index=613&type=chunk)[614](index=614&type=chunk)[616](index=616&type=chunk) [Liquidity and Capital Resources](index=120&type=section&id=5.B%20Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily sourced from operations, shareholder contributions, and bank loans, with **RMB 441.9 million** in cash and cash equivalents and a positive working capital of **RMB 186.6 million** as of **December 31, 2024** Consolidated Cash Flows Summary (RMB in thousands) | Cash Flow Item | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities (RMB in thousands) | 136,267 | (117,045) | (26,469) | | Net cash (used in)/from investing activities (RMB in thousands) | (122,783) | 105,653 | (11,974) | | Net cash from/(used in) financing activities (RMB in thousands) | 4,771 | (71,674) | (2,995) | | **Cash at end of year (RMB in thousands)** | **578,515** | **497,617** | **453,163** | - As of **December 31, 2024**, the company had cash and cash equivalents of **RMB 441.9 million (US$60.5 million)** and a positive working capital of **RMB 186.6 million (US$25.6 million)**[672](index=672&type=chunk)[673](index=673&type=chunk) Contractual Obligations as of Dec 31, 2024 (RMB in thousands) | Obligation Type | Less than 1 year (RMB in thousands) | 1-3 years (RMB in thousands) | Total (RMB in thousands) | | :--- | :--- | :--- | :--- | | Lease obligations | 9,641 | 5,087 | 14,728 | | Short-term loans | 7,188 | — | 7,188 | - The company conducts its operations primarily through its PRC subsidiaries and VIEs. As of **Dec 31, 2024**, **RMB 132.8 million** of cash was held by the parent company, with the rest held by its subsidiaries and VIEs, subject to PRC restrictions on fund transfers[698](index=698&type=chunk)[700](index=700&type=chunk) [Critical Accounting Estimates](index=124&type=section&id=5.E.Critical%20Accounting%20Estimates) This section highlights the provision for income taxes and the valuation allowance for deferred tax assets as critical accounting estimates, requiring significant management judgment due to complex tax laws and realizability assumptions - The company identifies the provision for income taxes and the valuation allowance for deferred tax assets as a critical accounting estimate due to the complexity and judgment involved[708](index=708&type=chunk) - Management must make assumptions about interpreting complex tax laws and the timing of taxable income, which are subject to review by tax authorities[709](index=709&type=chunk) - A full valuation allowance has been established against the company's deferred tax assets, as management does not believe their recoverability is more likely than not[712](index=712&type=chunk) [Item 6. Directors, Senior Management and Employees](index=126&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section provides information on the company's leadership, compensation, board structure, and employees, highlighting the dual-class share structure that gives the founder substantial voting control [Directors and Senior Management](index=126&type=section&id=6.A.%20Directors%20and%20Senior%20Management) The company's leadership includes founder, CEO, and Chairman Mr. Jinnan (Marco) Lai, co-founder and CTO Mr. Ning Ding, and a board of **five directors**, including **three independent directors** - The board is led by founder, CEO, and Chairman Mr. Jinnan (Marco) Lai[716](index=716&type=chunk) - The board includes **three independent directors**: Mr. Yipeng Li, Mr. Ming Zhang, and Mr. Xiang Wang[716](index=716&type=chunk) [Compensation](index=127&type=section&id=6.B.Compensation) For fiscal year **2024**, aggregate compensation paid to executive officers was **RMB 13.0 million** and to non-executive directors was **RMB 2.6 million**, with a share incentive plan authorizing up to **170,000,000 Class A ordinary shares** for awards FY2024 Compensation | Recipient Group | Aggregate Compensation (RMB) | | :--- | :--- | | Executive Officers | 13.0 million | | Non-Executive Directors | 2.6 million | - The Second Amended and Restated 2019 Share Incentive Plan authorizes up to **170,000,000 Class A ordinary shares** for awards[732](index=732&type=chunk)[734](index=734&type=chunk) - As of **February 28, 2025**, **58,748,670 options and restricted share units** were outstanding under the share incentive plan[733](index=733&type=chunk) [Board Practices](index=129&type=section&id=6.C.Board%20Practices) The board consists of **five directors**, **three** of whom are independent, and the company utilizes the 'home country practice' exemption, establishing an audit, compensation, and nominating committee - The board has **five directors**, **three** of whom are independent. The company relies on the 'home country practice' exemption and does not have a majority-independent board[747](index=747&type=chunk) - The Audit Committee is composed of **three independent directors**: Mr. Yipeng Li (Chairman), Mr. Ming Zhang, and Mr. Xiang Wang. Mr. Yipeng Li is the designated 'audit committee financial expert'[751](index=751&type=chunk) - The Compensation Committee and Nominating and Corporate Governance Committee are chaired by CEO Mr. Jinnan (Marco) Lai and include non-independent directors[752](index=752&type=chunk)[754](index=754&type=chunk) [Employees](index=132&type=section&id=6.D.Employees) As of **December 31, 2024**, the company had **563 employees**, with **65.5%** in research and development, and maintains good working relationships with no significant labor disputes reported Employee Breakdown by Function (as of Dec 31, 2024) | Function | Number of employees | % of total | | :--- | :--- | :--- | | Research and development | 369 | **65.5%** | | Operations and products | 60 | **10.7%** | | Sales and marketing | 62 | **11.0%** | | General and administration | 72 | **12.8%** | | **Total** | **563** | **100.0%** | - The company had **563 employees** as of **December 31, 2024**. None are represented by labor unions[759](index=759&type=chunk)[763](index=763&type=chunk) [Share Ownership](index=132&type=section&id=6.E.Share%20Ownership) As of **February 28, 2025**, the founder controlled **62.7%** of total voting power due to the dual-class share structure, giving management substantial influence, with **80.8%** of outstanding shares held by Deutsche Bank Trust Company Americas as the ADS depositary - Due to the dual-class share structure (**Class A: 1 vote**, **Class B: 10 votes**), the company's leadership holds significant voting control[768](index=768&type=chunk) Beneficial Ownership and Voting Power (as of Feb 28, 2025) | Shareholder | % of Total Shares | % of Aggregate Voting Power | | :--- | :--- | :--- | | Mr. Jinnan (Marco) Lai | 19.5% | 62.7% | | Mr. Ning Ding | 4.0% | 12.7% | | All Directors & Executive Officers (as a group) | 25.9% | 76.2% | - As of **February 28, 2025**, Deutsche Bank Trust Company Americas held **80.8%** of total outstanding shares as the depositary for the ADS program[772](index=772&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=134&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section refers to other parts of the report for details on major shareholders and their differential voting rights, confirming key related party transactions include VIE contractual arrangements, employment agreements, and the share incentive plan - The company's major shareholders have different voting rights due to the dual-class share structure, as detailed in Item 6.E[776](index=776&type=chunk) - Significant related party transactions include the contractual arrangements with the VIEs, employment agreements, and the share incentive plan[777](index=777&type=chunk)[779](index=779&type=chunk) [Item 8. Financial Information](index=135&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section contains key financial information, including details of an independent investigation completed in **October 2024** into a **US$12.8 million** deposit, which uncovered internal control weaknesses and led to a full provision for potential loss, with no plans for future dividends - An independent investigation was completed in **October 2024** regarding the recoverability of a **US$12.8 million** deposit at a third-party financial institution[783](index=783&type=chunk)[784](index=784&type=chunk) - The investigation identified internal control weaknesses related to account opening, fund withdrawal documentation, and data retention. The company is implementing remedial measures[786](index=786&type=chunk)[787](index=787&type=chunk) - Due to the uncertainty of recovery, the company has fully provided for the **US$12.8 million** deposit as a credit loss[788](index=788&type=chunk) - The company has no plan to declare or pay dividends in the near future and intends to retain earnings for business operations and expansion[789](index=789&type=chunk) [Item 9. The Offer and Listing](index=137&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section provides details about the company's American Depositary Shares (ADSs), each representing **two hundred (200)** Class A ordinary shares, listed on the Nasdaq Capital Market under the ticker symbol 'SOGP' since **January 25, 2024** - The company's ADSs trade on the Nasdaq Capital Market under the ticker symbol 'SOGP' since **January 25, 2024**[792](index=792&type=chunk)[795](index=795&type=chunk) - Each ADS represents **two hundred (200)** Class A ordinary shares[793](index=793&type=chunk) [Item 10. Additional Information](index=137&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides further details on the company's corporate governance and legal framework, including share classes, voting rights (**1 vote** for Class A, **10 votes** for Class B), dividend rights, anti-takeover provisions, exchange controls, and the material U.S. federal income tax consideration that the company was likely a Passive Foreign Investment Company (PFIC) for **2024**, with a significant risk of being a PFIC in **2025** - The company's shares are divided into **Class A (1 vote per share)** and **Class B (10 votes per share)**. Class B shares are convertible to Class A, but not vice-versa[807](index=807&type=chunk)[808](index=808&type=chunk) - The company is an exempted company under Cayman Islands law and is subject to the Cayman Islands Beneficial Ownership Transparency Act, 2023 (BOTA)[826](index=826&type=chunk)[828](index=828&type=chunk) - The company was likely a Passive Foreign Investment Company (PFIC) for its **2024** taxable year and there is a significant risk it will be a PFIC for **2025**. This status carries adverse U.S. federal income tax consequences for U.S. Holders[845](index=845&type=chunk)[367](index=367&type=chunk) - If the company is a PFIC, U.S. Holders are subject to punitive tax rules on gains and 'excess distributions', and favorable dividend tax rates would not apply[847](index=847&type=chunk)[851](index=851&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=147&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section discusses the company's exposure to various market risks, primarily foreign exchange risk, as most revenues are in Renminbi (RMB) while holding U.S. dollar-denominated cash, with a **10% depreciation** of the U.S. dollar against the RMB resulting in a decrease of **RMB 16.9 million** in cash and cash equivalents - The company's primary market risk is foreign exchange risk, as most revenues are in RMB while it holds cash in U.S. dollars and other currencies[872](index=872&type=chunk) - As of **December 31, 2024**, the company held **US$23.5 million** in U.S. dollar-denominated cash and cash equivalents. A **10% depreciation** of the USD against the RMB would result in a decrease of **RMB 16.9 million** in cash[874](index=874&type=chunk) - The company has not entered into any hedging transactions to mitigate foreign currency exchange risk[873](index=873&type=chunk) [Item 12. Description of Securities Other Than Equity Securities](index=148&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECU) This section details the fees and expenses associated with holding the company's American Depositary Shares (ADSs), including service fees paid to the depositary bank, Deutsche Bank Trust Company Americas, and payments made by the company for ADS ratio changes ADS Holder Service Fees | Service | Fee | | :--- | :--- | | Issuance of ADSs | Up to US$0.05 per ADS | | Cancellation of ADSs | Up to US$0.05 per ADS | | Cash dividend distribution | Up to US$0.05 per ADS held | | Depositary services | Up to US$0.05 per ADS held on record date | - In 2020, the company received a payment of **US$1.0 million** from the depositary bank. In 2023 and 2024, the company paid approximately **US$1.5 million** to the depositary bank for services related to an ADS ratio change[889](index=889&type=chunk) [PART II](index=151&type=section&id=PART%20II) [Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](index=151&type=section&id=ITEM%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) This section details the use of proceeds from the company's **January 2020** initial public offering (IPO), which generated **US$38.1 million** for product development, marketing, and general corporate purposes, and its **April 2021** follow-on offering, which generated **US$28.5 million**, with **US$10.8 million** used for general corporate purposes - The company received net proceeds of approximately **US$38.1 million** from its **January 2020** IPO. As of the report date, all of these proceeds have been used for product development, sales and marketing, and general corporate purposes[894](index=894&type=chunk)[895](index=895&type=chunk) - The company received net proceeds of approximately **US$28.5 million** from its **April 2021** follow-on offering. As of the report date, **US$10.8 million** of these proceeds have been used for general corporate purposes[898](index=898&type=chunk)[899](index=899&type=chunk) [Item 15. Controls and Procedures](index=152&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that as of **December 31, 2024**, the company's disclosure controls and procedures were not effective due to **two material weaknesses** in internal control over financial reporting, though the weakness related to financial asset risk monitoring has been remediated - Management concluded that disclosure controls and procedures were not effective as of **December 31, 2024**, due to **two material weaknesses**[902](index=902&type=chunk) - **Material Weakness 1**: Lack of sufficient financial reporting and accounting personnel with appropriate U.S. GAAP and SEC reporting experience[903](index=903&type=chunk) - **Material Weakness 2**: Lack of a comprehensive and continuous assessment and risk monitoring mechanism for financial assets and collection risk with third-party financial institutions[905](index=905&type=chunk) - As of **December 31, 2024**, management determined that the **material weakness** related to financial asset risk monitoring had been remediated by updating fund management policies and providing training[910](index=910&type=chunk)[911](index=911&type=chunk) [Item 16. [RESERVED]](index=154&type=section&id=ITEM%2016.%20%5BRESERVED%5D) This section covers various governance and compliance topics, including the audit committee financial expert, code of ethics, auditor fees (**RMB 3.1 million** in **2024**), auditor change, a **US$3.0 million** share repurchase program, reliance on 'home country' practices, and cybersecurity risk management - Mr. Yipeng Li is the designated 'audit committee financial expert'[916](index=916&type=chunk) Auditor Fees (RMB in thousands) | Year | Audit Fees (RMB in thousands) | | :--- | :--- | | 2022 | 7,300 | | 2023 | 14,741 | | 2024 | 3,139 | - In **July 2024**, the company engaged Enrome LLP as its new independent registered public accounting firm, dismissing PricewaterhouseCoopers Zhong Tian LLP[920](index=920&type=chunk) - A share repurchase program of up to **US$3.0 million** was authorized in December 2023. As of **March 2024**, a total of **483,643 ADSs** had been repurchased for approximately **US$1.4 million**[922](index=922&type=chunk)[925](index=925&type=chunk) - The company relies on 'home country practice' exemptions from certain Nasdaq corporate governance rules, such as not having a majority-independent board or a compensation committee composed entirely of independent directors[928](index=928&type=chunk)[930](index=930&type=chunk) [PART III](index=157&type=section&id=PART%20III) [Item 18. Financial Statements](index=157&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for the fiscal years ended **December 31, 2022**, **2023**, and **2024**, prepared in accordance with U.S. GAAP, including the independent auditor's report and detailed notes [Consolidated Balance Sheets](index=162&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show total assets decreased from **RMB 566.6 million** in **2023** to **RMB 521.4 million (US$71.4 million)** in **2024**, while total liabilities increased from **RMB 276.6 million** to **RMB 307.1 million (US$42.1 million)**, resulting in a decrease in total shareholders' equity from **RMB 290.0 million** to **RMB 214.3 million (US$29.4 million)** Consolidated Balance Sheet Summary (RMB in thousands) | Account | Dec 31, 2023 (RMB in thousands) | Dec 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 494,965 | 441,858 | | Total Assets | 566,574 | 521,440 | | Total Liabilities | 276,561 | 307,135 | | Total Shareholders' Equity | 290,013 | 214,305 | [Consolidated Statements of Operations and Comprehensive (Loss) Income](index=164&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20%28Loss%29%20Income) The consolidated statements of operations show net revenues of **RMB 2,031.8 million** in **2024**, a slight decrease from **RMB 2,071.8 million** in **2023**, but a significant improvement in net loss to **RMB 81.0 million** from **RMB 134.5 million** in **2023**, with diluted net loss per ADS at **US$1.86** Key Performance Indicators (RMB in thousands) | Metric | 2022 (RMB in thousands) | 2023 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | :--- | | Net revenues (RMB in thousands) | 2,185,266 | 2,071,772 | 2,031,806 | | Gross profit (RMB in thousands) | 716,345 | 585,375 | 556,858 | | Operating income/(loss) (RMB in thousands) | 66,651 | (147,668) | (89,703) | | Net income/(loss) (RMB in thousands) | 86,504 | (134,515) | (80,976) | | Net (loss) per ADS (Basic) | 16.69 | (23.48) | (13.55) | [Consolidated Statements of Changes in Shareholders' Equity](index=165&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) These statements detail changes in equity for **2022**, **2023**, and **2024**, showing a decrease in total shareholders' equity from **RMB 290.0 million** as of **Dec 31, 2023**, to **RMB 214.3 million** as of **Dec 31, 2024**, driven by net loss, share repurchases, and share-based compensation - Total shareholders' equity decreased from **RMB 290.0 million** as of **Dec 31, 2023**, to **RMB 214.3 million** as of **Dec 31, 2024**[968](index=968&type=chunk)[971](index=971&type=chunk) - In **2024**, the company repurchased common shares for **RMB 9.2 million** and recorded share-based compensation expense of **RMB 13.1 million**[971](index=971&type=chunk) [Consolidated Statements of Cash Flows](index=167&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show net cash used in operating activities was **RMB 26.5 million** in **2024**, with net cash used in investing activities at **RMB 12.0 million** and financing activities at **RMB 3.0 million**, resulting in a **RMB 44.5 million** decrease in cash and cash equivalents, ending the year at **RMB 453.2 million** Cash Flow Summary (RMB in thousands) | Cash Flow Activity | 2022 (RMB in thousands) | 2023 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | :--- | | Net cash from/(used in) Operating Activities (RMB in thousands) | 136,267 | (117,045) | (26,469) | | Net cash (used in)/from Investing Activities (RMB in thousands) | (122,783) | 105,653 | (11,974) | | Net cash from/(used in) Financing Activities (RMB in thousands) | 4,771 | (71,674) | (2,994) | | **Cash at End of Year (RMB in thousands)** | **578,515** | **497,617** | **453,163** | [Notes to the Consolidated Financial Statements](index=168&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and figures, including the VIE structure, revenue recognition, share-based compensation, income tax calculations, and commitments, notably a full provision for a **US$12.8 million** deposit and pending litigation - The company's business is primarily conducted through its VIEs in the PRC. The contractual arrangements that give the company control are detailed, along with the associated risks[977](index=977&type=chunk)[985](index=985&type=chunk)[1006](index=1006&type=chunk) - Revenue from consumable virtual items is recognized at the point of consumption, while revenue from time-based items and podcast subscriptions is recognized ratably over the service period[1064](index=1064&type=chunk)[1066](index=1066&type=chunk) - The company recorded a full allowance for credit loss of **RMB 90.7 million (US$12.8 million)** for a deposit at a third-party financial institution due to difficulties in recovery[1123](index=1123&type=chunk) - As of **Dec 31, 2024**, the company had net operating tax loss carryforwards of **RMB 961.8 million**, for which a full valuation allowance has been provided[1142](index=1142&type=chunk)[1143](index=1143&type=chunk) - The company is involved in pending litigation, including a music copyright infringement claim for **RMB 9.1 million** and a fraud-related claim requiring a refund of **RMB 8.4 million**, for which a provision has been made[1181](index=1181&type=chunk)

Core Viewpoint - The stock market experienced an overcorrection due to tariff-induced fears, leading to a sell-off of fundamentally sound stocks that present deep value opportunities for investors as concerns subside [1][2]. Group 1: Snap-on - Snap-on reported mixed Q1 results but maintains a resilient business outlook, with expectations for stability in 2025 [2][4]. - The company has an attractive capital return strategy, with a dividend yield of 2.77% and share buybacks that enhance shareholder value [4]. - Balance sheet highlights include increased cash, inventory, and assets, with equity rising over 2% and low leverage [4]. Group 2: Whirlpool - Whirlpool's Q1 results showed a significant contraction in revenue and earnings, attributed to divestitures and repositioning efforts to capture the U.S. housing market recovery [5][6]. - The company is well insulated from tariff threats, with 80% of goods manufactured in the U.S., and its dividend yield stands at 9% [6]. - Q1 balance sheet highlights include reduced debt and a 13% increase in equity, indicating financial stability [6]. Group 3: Verizon - Verizon is not experiencing rapid growth but is leading the industry in size and scope, reaffirming its guidance for expanding free cash flow [9][10]. - The company has improved its free cash flow through debt reduction and strengthening its balance sheet, with a dividend payout expected to grow at a low single-digit pace [10]. Group 4: Cintas - Cintas' stock price pullback is linked to several factors, but the business remains strong with expected capital returns continuing [14][15]. - The company benefits from healthy labor markets, which support its growth trajectory [15]. Group 5: Lockheed Martin - Lockheed Martin's stock price decline is primarily due to the loss of a critical contract, but fundamentals remain strong with solid Q1 results and a robust outlook for U.S. government defense spending [18][19]. - The dividend yield is 2.85%, and share buybacks have reduced the share count by 2.6% year-over-year in Q1 [19].