Financial Performance - The company reported net revenues of RMB 2,119,514,000 for the year ended December 31, 2021, representing a 41.0% increase from RMB 1,502,908,000 in 2020[567]. - The company experienced a net loss attributable to ordinary shareholders of RMB 127,250,000 in 2021, a decrease from RMB 236,250,000 in 2020, suggesting some improvement in financial performance[567]. - The net loss for 2021 was RMB 127.3 million (US$20.0 million), compared to a net loss of RMB 82.2 million in 2020[589]. - Net revenues for the fiscal year 2021 were RMB2,119.5 million (US$332.6 million), representing a 41.0% increase from RMB1,502.9 million in 2020[579]. User Engagement and Growth - Average total mobile MAUs reached 60,877,000 in Q2 2021, up from 58,438,000 in Q1 2020, indicating a growth trend in user engagement[557]. - The average audio entertainment mobile MAUs increased to 9,401,000 in Q4 2021, compared to 8,269,000 in Q1 2021, reflecting a consistent rise in user base[563]. - The number of average audio entertainment paying users rose to 496,800 in Q4 2021, up from 472,900 in Q1 2021, showcasing growth in monetization efforts[563]. - The growth of the user base is influenced by regulatory measures imposed by the PRC government, which could impact the company's operations and market position[555]. Revenue Composition - The company generated 99.1% of its net revenues from audio entertainment in 2021, highlighting the dominance of this segment in its revenue structure[569]. Operating Expenses - Operating loss for the year ended December 31, 2021, was RMB 138,518,000, compared to RMB 88,689,000 in 2020, indicating challenges in managing operating expenses[567]. - Cost of revenues for 2021 was RMB1,502.5 million (US$235.8 million), an increase of 32.4% from RMB1,134.7 million in 2020, primarily due to higher revenue sharing fees and operational costs[579]. - Total operating expenses for 2021 were RMB755.5 million (US$118.6 million), reflecting a 65.4% increase from RMB456.9 million in 2020[581]. - Selling and marketing expenses surged to RMB386.2 million (US$60.6 million) in 2021, a 170.6% increase from RMB142.7 million in 2020, driven by increased branding and promotional activities[582]. - Research and development expenses rose to RMB264.7 million (US$41.5 million) in 2021, a 17.5% increase from RMB225.3 million in 2020, due to higher headcount and salaries[583]. - General and administrative expenses increased to RMB104.6 million (US$16.4 million) in 2021, up 17.7% from RMB88.9 million in 2020, mainly due to rising salary and welfare benefits[585]. Cash Flow and Financing - As of December 31, 2021, the company had cash and cash equivalents of RMB533.3 million (US$83.7 million) and positive working capital of RMB211.0 million (US$33.1 million) due to net proceeds from a follow-on public offering[648][649]. - The net cash used in operating activities was RMB40.4 million (US$6.3 million) in 2021, with a net loss of RMB127.3 million (US$20.0 million) attributed to increases in salary and welfare payable, depreciation, and deferred revenue[656]. - The net cash generated from financing activities was RMB212.7 million (US$33.4 million) in 2021[655]. - The company intends to finance future working capital requirements from cash generated from operating activities and funds raised from financing activities, including net proceeds from the follow-on offering in April 2021[651]. Future Plans and Strategies - The company plans to enhance technological capabilities and infrastructure to support business growth, aiming for improved operational efficiency through advanced streaming and AI technologies[565]. - The company aims to diversify monetization channels and increase the paying ratio by expanding innovative audio entertainment product offerings[563]. - The company plans to strengthen monetization efforts through innovative products and develop a diversified content creator base[650]. - The company intends to continue strengthening its technological capabilities, focusing on audio making, AI-enabled discovery, user experience enhancements, and data storage technologies[677]. Tax and Deferred Revenue - The company’s subsidiaries in China are generally subject to a 25% enterprise income tax rate, with certain entities qualifying for a preferential rate of 15%[608][609]. - For the years ended December 31, 2019, 2020, and 2021, the company recorded income tax expenses of RMB nil, RMB1.0 million, and RMB0.4 million, respectively[683]. - Deferred revenue increased from RMB14.5 million in 2019 to RMB20.7 million in 2021, reflecting a growth of approximately 42.2%[625]. - Revenue recognized from deferred revenue was RMB9.9 million in 2020 and RMB11.0 million (US$1.7 million) in 2021, indicating a year-over-year increase of approximately 11.1%[625].

Financial Data and Key Metrics Changes - In Q4 2021, Lizhi reported a record high revenue of RMB560 million, representing a year-over-year increase of 33% [11][34] - The average monthly paying users increased by 18% year-over-year to 497,300 [11][40] - Gross margin expanded to 32%, up 400 basis points year-over-year [12][32] - The company achieved a net income of RMB8.92 million in Q4 2021, compared to a net loss of RMB5.8 million in Q4 2020 [12][40] - Full year revenue for 2021 grew by 41% to RMB2.1 billion, with a gross margin of 29%, an increase of 400 basis points compared to 2020 [13][34] Business Line Data and Key Metrics Changes - The audio entertainment business saw an increase in average monthly active users to 9.4 million in Q4 2021, with robust growth in both paying user base and revenue [16] - The company organized various events to enhance user engagement, which contributed to the growth in the audio entertainment segment [15][66] Market Data and Key Metrics Changes - By the end of 2021, cumulative downloads of the TIYA app reached nearly 20 million, indicating strong user interest and engagement [19] - The average time spent daily in real-time voice rooms per user increased by 68% year-over-year in December 2021 [18] Company Strategy and Development Direction - Lizhi aims to continue its globalization strategy, exploring new markets and diversifying its product portfolio to enhance its competitive position in the audio ecosystem [29][62] - The company plans to optimize its operational strategies and enhance user engagement through product innovation and marketing [22][66] - Lizhi is focused on building a sustainable audio ecosystem while maximizing value through refined operational strategies [9][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining solid revenue growth momentum in 2022, despite potential fluctuations due to seasonal factors [48][50] - The company anticipates further narrowing of losses in 2022 and aims for overall profitability in the mid to long term [50][52] - Management highlighted the importance of optimizing cost structures and enhancing operational efficiency to achieve profitability [52][66] Other Important Information - The company established its global headquarters in Singapore to support international business expansion and innovation [23] - Lizhi's in-house developed technologies, such as DOREME and VoderX, are expected to enhance product features and user experiences [25][24] Q&A Session Summary Question: What is the outlook for profitability in 2022 and mid to long-term prospects? - Management noted the achievement of GAAP profitability for the first time and emphasized strategies for expanding the user base and increasing user spending to drive revenue growth [46][50] Question: Can management elaborate on the improvements in paying user rates? - Management attributed the increase in paying users to focused marketing strategies and promotional activities that enhanced user engagement and participation [53][54] Question: What is the growth strategy for 2022 and the outlook for the audio entertainment sector? - Management expressed confidence in scaling growth through globalization and product optimization, aiming to replicate successful domestic strategies in international markets [60][62]

LIZHI INC. Investor Presentation Q4 2021 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 written communication in connection with the contents contained herein. The information contained in this presentation ...

LIZHI INC. Investor Presentation Q3 2021 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 written communication in connection with the contents contained herein. The information contained in this presentation ...

Lizhi Inc. (LIZI) Q3 2021 Earnings Conference Call November 29, 2021 8:00 PM ET Company Participants Effy Kang - Investor Relations Marco Lai - Founder and Chief Executive Officer Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vicky Wei - Citi Vincent Yu - Needham & Company Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you na ...

| --- | --- | --- | |-------|-------|-----------------------------------| | | | | | | | LIZHI INC. Investor Presentation | | | | August 2021 | 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 written communica ...

| --- | --- | --- | |-------|-------|-----------------------------------| | | | | | | | LIZHI INC. Investor Presentation | | | | August 2021 | 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 written communica ...

Lizhi Inc. (LIZI) Q2 2021 Earnings Conference Call August 30, 2021 9:00 PM ET Company Participants Effy Kang - Investor Relations Marco Lai - Founder and Chief Executive Officer Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vincent Yu - Needham & Company Vicky Wei - Citi Operator Hello, ladies and gentlemen. Thank you for standing by and welcome to the Lizhi Inc.Â's Second Quarter 2021 Earnings Conference Call. At this time, all participants a ...

| --- | --- | --- | |-------|-------|-----------------------------------| | | | | | | | LIZHI INC. Investor Presentation | | | | June 2021 | 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 written communicati ...

LIZHI Inc. (LIZI) Q1 2021 Earnings Conference Call June 1, 2021 9:00 PM ET Company Participants Effy Kang - Head, Capital Markets Marco Lai - CEO Chengfang Lu - Acting CFO Conference Call Participants Vincent Yu - Needham & Company Vicky Wei - Citi Ivy Liu - Crédit Suisse Operator Hello, ladies and gentlemen, thank you for standing by for LIZHI's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After managementÂ's remarks there will be a question-and-ans ...