Core Insights - KFC and Hatch have launched a new content channel called "Kentucky Fried Chicken Rain," designed to help users fall asleep with the soothing sounds of frying chicken [2][3][4] - The collaboration features the custom sound available on Hatch Restore 2 smart sleep devices with a Hatch+ subscription, as well as on YouTube and Spotify [2][3][4] - The initiative was inspired by social media trends highlighting the similarity between the sounds of frying chicken and rain, leading to a unique audio experience [4] Company Overview - KFC, known for its Original Recipe fried chicken, has been serving customers since 1952 and operates over 30,000 restaurants globally [7] - Hatch specializes in sleep wellness products and has helped over 5 million users improve their sleep quality through innovative devices and content [8] Product Details - KFC's new Original Recipe® Tenders, launched on October 14, are double hand-breaded and feature a blend of 11 herbs and spices, priced at $5 for a meal including fries and sauces [5][6] - The partnership includes co-branded products, such as a Hatch x KFC Sleep Shirt, available for purchase [4]

Professional Background - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock are part of the policy-level work [1] Certifications and Thought Leadership - Roberts Berzins is a CFA Charterholder and holds an ESG investing certificate [1] - Actively involved in thought-leadership activities to support the development of pan-Baltic capital markets [1] - Previous internship experience at the Chicago Board of Trade, while residing in Latvia [1]

Core Viewpoint - Sound Group Inc. has appointed Enrome LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2023, effective July 9, 2024, following the approval of the audit committee [1][2]. Company Overview - Sound Group Inc., formerly known as LIZHI 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 [3]. - The company has been listed on Nasdaq since January 2020 [3]. Transition Details - Enrome LLP succeeds PricewaterhouseCoopers Zhong Tian LLP (PwC) as the independent registered public accounting firm, with PwC committed to ensuring a seamless transition [2].

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 ...

Financial Data and Key Metrics Changes - In Q3 2022, total revenue reached RMB565.2 million, up 12% year-over-year and 10% quarter-over-quarter, marking a new record high [21][22] - Net income was RMB19.8 million, a 5% increase sequentially, achieving profitability for the fourth consecutive quarter [8][21] - Gross profit increased to RMB189.1 million, representing a 25% year-over-year growth, with gross margin rising to 33% from 30% in Q3 2021 [23] Business Line Data and Key Metrics Changes - The average monthly active users (MAUs) totaled 49.7 million, with average monthly paying users at 477,000 [7] - The interactive audio entertainment business saw MAUs grow to 9.5 million, with a user penetration rate of 19.1% [10] - Revenue from the audio entertainment business was driven by increased average user spending [22] Market Data and Key Metrics Changes - The average daily time spent per user increased by 34% year-over-year, and the monthly average user group participation rate rose 94% year-over-year [14] - The number of pairs of friend connections grew by 56% compared to the same period last year [14] Company Strategy and Development Direction - The company is focusing on enhancing its globalization capabilities and optimizing its product matrix ecosystem [13] - A new mission and vision were announced to become the world's biggest audio platform, emphasizing user connection and happiness [19] - The company aims to leverage core technology capabilities to achieve breakthroughs in international business [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stable growth and sustainable development despite challenging macro conditions [36][37] - The domestic business is expected to have tremendous growth potential, with plans to increase user penetration and conversion rates [36] Other Important Information - The company is actively working on obtaining ISO-27001 and ISO-27701 certifications for data security and privacy management [18] - Investment in overseas operations accounted for no more than 10% of total operating expenses in Q3 2022 [33] Q&A Session Summary Question: Insights on overseas business development and investment expenses - Management highlighted a focus on product development, technology, and team building for overseas markets, with investment expenses being a small portion of total operating costs [31][33] Question: Thoughts on domestic product profitability amid low growth - Management noted that the audio entertainment business is relatively mature and emphasized the importance of timely strategy adjustments to improve operational efficiency and profitability [35][36]