Company Overview - Sound Group Inc., formerly known as LIZHI INC., is a global audio-centric social and entertainment company focused on building the world's largest audio platform to enhance communication and connection through sound [5]. Recent Developments - On July 9, 2024, Sound Group announced the appointment of Enrome LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2023, succeeding PricewaterhouseCoopers Zhong Tian LLP (PwC) [4][3]. Strategic Vision - The company is dedicated to shaping a future where audio serves as a bridge for human connection, emphasizing the importance of sound in enhancing interpersonal communication [5].

Financial Data and Key Metrics Changes - The company's revenue increased by 15% year-over-year to RMB593 million in Q2 2023 [8][24] - Net income for the quarter was RMB11.6 million, down from RMB18.9 million in the same period last year [30] - Gross margin decreased to 29% from 34% year-over-year [26] - Operating income was RMB7.8 million, compared to RMB14.1 million in the same period last year [29] Business Line Data and Key Metrics Changes - The audio entertainment business saw enhanced community engagement through themed activities, contributing to user interaction [9][11] - The average monthly active users (MAUs) reached 45.6 million, with 433,700 average monthly paying users [8] Market Data and Key Metrics Changes - The company continues to expand its global business, launching new features in the TIYA App, including AI companions [15][16] - The introduction of new product functions aims to enhance user experience and engagement in the global market [18][19] Company Strategy and Development Direction - The company is focused on an online audio-centric globalization strategy, emphasizing core technology advancement and user experience [8][21] - Future plans include further product innovation and localization to strengthen global expansion efforts [18][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro challenges but remains committed to enhancing product competitiveness and operational efficiency [21] - The focus will be on integrating AI technologies and optimizing the ecosystem for sustainable growth [21] Other Important Information - Cost of revenues increased by 23% year-over-year, primarily due to higher revenue sharing fees and increased salaries [25] - Cash and cash equivalents as of June 30, 2023, totaled RMB697.1 million [30] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a lack of interaction during the Q&A segment.

Financial Data and Key Metrics Changes - In Q1 2023, the company's revenue increased by 22% year-over-year to RMB 631 million, with net income surging by 54% sequentially and 194% year-over-year to RMB 48.3 million [9][21][28] - Gross profit was RMB 196.4 million, compared to RMB 168.1 million in the same period last year, with a gross margin of 31% [24][28] - Operating income reached RMB 42.7 million, up from RMB 14.6 million in the previous year [27] Business Line Data and Key Metrics Changes - The average monthly active users (MAUs) totaled 49.6 million, and average monthly paying users reached 471.5 thousand, indicating strong user engagement [9] - The company focused on enhancing audio entertainment product features, which improved commercialization efficiency and user participation [10][11] Market Data and Key Metrics Changes - The company is in the early stages of monetization for its overseas products, primarily through subscription models, with expectations of a smaller proportion of overseas revenue this year [33][34] - The regulatory environment for the audio live streaming sector has tightened, prompting the company to enhance compliance management [35][36] Company Strategy and Development Direction - The company aims to build a more competitive audio-based ecosystem and expand its global business through innovative product features and localized operations [8][14] - There is a commitment to developing AI chatbot platforms to enhance user experience and engagement in the global market [14][19] Management Comments on Operating Environment and Future Outlook - Management noted that the overseas business is steadily developing, with ongoing enhancements to user experience and monetization models [39][40] - The company plans to continue investing in marketing and localized operations to support its global business growth [34][40] Other Important Information - The cost of revenue increased by 25% year-over-year to RMB 434.6 million, primarily due to higher revenue sharing fees and operational costs [23] - As of March 31, 2023, the company had cash and cash equivalents totaling RMB 731.3 million [29] Q&A Session Summary Question: Monetization scale of overseas products and regulatory changes - Management indicated that monetization models for overseas products are in early testing stages, focusing on subscription services, with a smaller expected revenue proportion this year [33][34] - Regulatory monitoring in the live-streaming sector has increased, leading to enhanced compliance management efforts [35][36] Question: Progress of overseas business and user metrics - The overseas business is developing steadily, with improvements in user engagement and function upgrades, including the MY AI Friend chatbot [39][40]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | Name of each exchange | | --- | --- | --- | | Title of each class | Trad ...

Financial Data and Key Metrics Changes - In Q4 2022, total net revenues reached RMB587.6 million, a 5% increase year-over-year, driven by growth in average user spending on audio entertainment products [24] - Full year 2022 revenue increased to RMB2.185 billion, with a gross margin improvement of 400 basis points to 33% [12][23] - Net income for Q4 2022 surged to RMB31.4 million, a 58% sequential increase and over 250% year-over-year [12][22] - Full year net income reached RMB86.5 million, compared to a net loss of RMB127.3 million in the previous year [23] Business Line Data and Key Metrics Changes - The audio entertainment business saw the launch of new products and features, enhancing user engagement and interactivity [13][14] - Average monthly active users (MAUs) in Q4 2022 were 50.8 million, with average monthly paying users totaling 491.8 thousand [11] Market Data and Key Metrics Changes - The company has been recognized among China's top 100 Internet companies for the fourth consecutive year, indicating strong market positioning [16] Company Strategy and Development Direction - The company aims to enhance its global expansion strategy in 2023, focusing on AI chatbot applications and targeting diverse user groups [36] - Plans to leverage advanced technologies such as AIGC and voice AI to innovate product features and enhance user experiences [20][36] - The strategy includes reducing user acquisition costs and promoting organic growth through enhanced product network effects [37] Management Comments on Operating Environment and Future Outlook - Management noted that the pandemic has shifted user behavior towards online companionship and emotional connections, which aligns with the company's product positioning [36] - The company expects to see continued growth in profitability and revenue diversification through new business models, including AI chatbots [44] Other Important Information - The company has made significant advancements in AI technologies, including automatic speech recognition and text-to-speech, which are foundational for future product innovations [15][18] Q&A Session Summary Question: What is the company's strategy in the post-pandemic era in 2023? - The company will focus on global expansion and AI chatbot applications, targeting diverse user groups to achieve steady growth [36] Question: Can management share more specific plans regarding the chatbot area? - The company has been developing voice chatbot technology since 2018 and plans to leverage its experience to enhance user companionship experiences [40] Question: What measures are being taken to sustain growth and improve profitability? - The company aims to improve average revenue per user (ARPU) through innovative product features and operational strategies, while also diversifying revenue streams [43][44]

| --- | --- | --- | --- | |-------|-------|-------|-----------------------------------| | | | | | | | | | LIZHI INC. Investor Presentation | | | | | Q4 2022 | 2 Disclaimer This presentation has been prepared by LIZHI INC. (the "Company") solely for informational purposes. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, reasonableness or correctness of the information or any opinions presented herein or any oral or w ...

Call Start: 08:00 January 1, 0000 8:40 AM ET LIZHI Inc. (LIZI) Q3 2022 Earnings Conference Call November 16, 2022 08:00 ET Company Participants Effy Kang - Head of Capital Markets Marco Lai - Founder & Chief Executive Officer Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vicky Wei - Citi Operator Hello, ladies and gentlemen. Thank you for standing by for LIZHI's Inc. Third Quarter 2022 Earnings Conference Call. At this time, all participants a ...

Business Overview - LIZHI's Q2 2022 total average mobile MAUs reached 49.7 million[12] - The average mobile MAUs for audio entertainment was 9.17 million[12, 21] - The user penetration rate for audio entertainment was 18.5%[19] - The average time spent daily on the App per user increased by 44% year-over-year in Q2 2022[23] - The number of friend pairs grew 1.4 times compared to the same period last year as of June 2022[23] - The group penetration rate grew 150% year-over-year in Q2 2022[23] Financial Highlights - LIZHI's Q2 2022 net revenues were RMB 516 million[12, 33] - The gross margin for Q2 2022 was 34%, a +600bps increase[12] - The company achieved an operating income margin of 2.7% and a net income margin of 3.7% in Q2 2022[37, 38] - Non-GAAP net income attributable to LIZHI INC.'s ordinary shareholders for Q2 2022 was RMB 25.961 million[43]

LIZHI Inc. (LIZI) Q2 2022 Earnings Conference Call August 18, 2022 9:00 PM ET Company Participants Effy Kang - Head, Capital Markets Marco Lai - Founder and CEO Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vicky Wei - Citi Operator Hello, ladies and gentlemen. Thank you for standing by for LIZHI Inc. Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After managementÂ's remarks, there will be ...

Financial Data and Key Metrics Changes - In Q1 2022, total revenue rose 4.4% year-over-year to RMB 517 million, with a gross margin increase of 700 basis points to 32% [10][32] - Net income surged 84% quarter-over-quarter to RMB 16.42 million, marking the second consecutive quarter of profitability on a GAAP basis [10][39] - Operating income was RMB 14.6 million, compared to a loss of RMB 72.2 million in Q1 2021 [39] Business Line Data and Key Metrics Changes - The audio entertainment business saw user penetration increase from 13.8% to 17.7% year-over-year [13] - Average monthly paying users grew to 482,000, maintaining year-over-year growth [12] - The average daily time spent on the TIYA app increased by 42% year-over-year, with daily messages sent per user rising 57% [20] Market Data and Key Metrics Changes - The group penetration rate grew 257% year-over-year, with active groups increasing 3.77 times compared to the same period last year [21] - The number of brand connections grew 3.87 times year-over-year, indicating strong engagement in the global market [20] Company Strategy and Development Direction - The company is focused on building a competitive audio-centric ecosystem and improving product functionality while exploring overseas markets for globalization [11][29] - Continued investment in in-house technology aims to enhance product innovation and operational efficiency [24][26] - The establishment of a Singapore headquarters is intended to attract talent and support globalization efforts [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the company, emphasizing the importance of optimizing operational efficiency and exploring new business growth opportunities [29][46] - The company is well-prepared for regulatory changes in the live streaming sector, which are expected to benefit the audio live streaming market in the long run [44] Other Important Information - Cash and cash equivalents, short-term investments, and restricted cash totaled RMB 514.5 million as of March 31, 2022 [41] - The company plans to continue expanding its in-house technology coverage to lower costs and enhance product differentiation [26] Q&A Session Summary Question: Impact of live streaming regulations on audio live streaming sector - Management believes the clarified regulations will promote standardized operations and protect minors, benefiting the sector in the long term [44] Question: Balance between investment in overseas and domestic markets - Domestic business is currently profitable and supports overseas expansion, with a focus on organic growth strategies for international markets [46][49] Question: Business planning after establishing headquarters - The focus is on expanding the U.S. market through the TIYA product, with an emphasis on user experience and organic growth [55] Question: Differentiation of TIYA compared to competitors - The core differentiation lies in in-house technology, allowing for customized features and enhanced user experience [60] Question: Improvement of gross profit margin and revenue sharing - Management plans to optimize cost structures and innovate monetization models to improve gross margins in the medium to long term [66][68]