Second Half 2025 Financial and Operational Highlights
- Net revenues were
RMB1,745.1 million (US$249.5 million ), representing a 58% increase fromRMB1,107.8 million for the same period last year. - Net income was
RMB153.1 million (US$21.9 million ), compared with a net loss ofRMB44.5 million for the same period last year.
Fiscal Year 2025 Financial and Operational Highlights
- Net revenues were
RMB3,102.8 million (US$443.7 million ), representing a 53% increase fromRMB2,031.8 million in 2024. - Net income was
RMB220.6 million (US$31.6 million ), compared with a net loss ofRMB81.0 million in 2024.
Mr.
“Throughout the year, we enhanced user engagement by expanding our audio content offerings while actively deploying AI technologies to optimize operational efficiency and drive product innovation. In addition, we accelerated the development of our international AI initiatives and further advanced our capabilities in voice AI technologies, including automatic speech recognition, speech synthesis, and real-time audio intelligence. Leveraging our deep expertise in the audio industry, we developed the SoundSphere technology system to power future AI-driven applications. In
Ms.
Second Half 2025 Unaudited Financial Results
Net revenues were
Cost of revenues were
Gross profit was
Non-GAAP gross profit1 was
Gross margin was 29% for the six months ended
Non-GAAP gross margin was 29% for the six months ended
Operating expenses were
Research and development expenses were
Selling and marketing expenses were
General and administrative expenses were
Operating income was
Non-GAAP operating income2 was
Net income was
Non-GAAP net income3 was
Net income attributable to
__________________________
1 Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to
2 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses. This adjustment amounted to
3 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. These adjustments amounted to
Non-GAAP net income attributable to
Basic and diluted net income per ADS5 were
Non-GAAP basic and diluted net income per ADS6 were
Fiscal Year 2025 Unaudited Financial Results
Net revenues were
Cost of revenues were
Gross profit was
Non-GAAP gross profit7 was
Gross margin in 2025 was 29%, compared with 27% in the prior year.
Non-GAAP gross margin in 2025 was 29%, compared with 27% in the prior year.
Operating expenses were
Research and development expenses were
Selling and marketing expenses were
_____________________________
4 Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income attributable to Sound Group Inc.’s ordinary shareholders, excluding share-based compensation expenses. These adjustments amounted to
5 ADS refers to American Depositary Share. Each ADS represents two hundred Class A ordinary shares of the Company. Basic and diluted net income/(loss) per ADS is net loss attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS.
6 Non-GAAP basic and diluted net loss per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income/(loss) attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net loss per ADS.
7 Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to
General and administrative expenses were
Operating income was
Non-GAAP operating income8 was
Net income was
Non-GAAP net income9 was
Net income attributable to
Non-GAAP net income attributable to
Basic and diluted net income per ADS were
Non-GAAP basic and diluted net income per ADS were
Balance Sheet
As of
Special Cash Dividend
The Company’s Board of Directors approved a special cash dividend of
_________________________
8 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses. This adjustment amounted to
9 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. These adjustments amounted to
10 Non-GAAP net income attributable to Sound Group Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income attributable to Sound Group Inc.’s ordinary shareholders, excluding share-based compensation expenses. These adjustments amounted to
About
For more information, please visit: https://ir.soundgroupinc.com/
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
SOGP uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss/income, non-GAAP net loss/income, non-GAAP net loss/income attributable to Sound Group Inc.’s ordinary shareholders and non-GAAP basic and diluted net loss/income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses. Non-GAAP gross margin is non-GAAP gross profit as a percentage of net revenues. Non-GAAP operating loss/income is operating loss/income excluding share-based compensation expenses. Non-GAAP net loss/income is net loss/income, excluding share-based compensation expenses. Non-GAAP net loss/income attributable to Sound Group Inc.’s ordinary shareholders is net loss/income attributable to Sound Group Inc.’s ordinary shareholders, excluding share-based compensation expenses. Non-GAAP basic and diluted net loss/income per ADS is non-GAAP net loss/ income attributable to Sound Group Inc.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net loss/income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of the above reconciling item adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of share-based compensation expenses.
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures in isolation from, superior to, or as an alternative to the financial measure prepared in accordance with
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
For investor and media inquiries, please contact:
IR Department
E-mail: ir@soundgroupinc.com
Christensen Advisory
E-mail: soundgroup@christensencomms.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||
2024 | 2025 | 2025 | |||
| RMB | RMB | US$ | |||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | 441,858 | 655,058 | 93,672 | ||
| Restricted cash | 11,305 | 4,844 | 693 | ||
| Accounts receivable, net | 1,082 | 972 | 139 | ||
| Prepayments and other current assets | 35,106 | 49,683 | 7,105 | ||
| Total current assets | 489,351 | 710,557 | 101,609 | ||
| Non-current assets | |||||
| Property, equipment and leasehold improvement, net | 16,491 | 12,070 | 1,726 | ||
| Intangible assets, net | 1,176 | 879 | 126 | ||
| Right-of-use assets, net | 12,692 | 23,572 | 3,371 | ||
| Other non-current assets | 1,730 | 2,536 | 363 | ||
| Total non-current assets | 32,089 | 39,057 | 5,586 | ||
| TOTAL ASSETS | 521,440 | 749,614 | 107,195 | ||
| LIABILITIES | |||||
| Current liabilities | |||||
| Accounts payable | 39,379 | 58,751 | 8,401 | ||
| Deferred revenue | 30,960 | 38,240 | 5,468 | ||
| Salary and welfare payable | 131,186 | 176,216 | 25,199 | ||
| Taxes payable | 7,267 | 9,203 | 1,316 | ||
| Short-term loans | 7,188 | - | - | ||
| Lease liabilities due within one year | 8,240 | 14,619 | 2,090 | ||
| Accrued expenses and other current liabilities | 78,491 | 68,327 | 9,772 | ||
| Total current liabilities | 302,711 | 365,356 | 52,246 | ||
| Non-current liabilities | |||||
| Lease liabilities | 4,424 | 9,962 | 1,425 | ||
| Total non-current liabilities | 4,424 | 9,962 | 1,425 | ||
| TOTAL LIABILITIES | 307,135 | 375,318 | 53,671 | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||
2024 | 2025 | 2025 | ||||||
| RMB | RMB | US$ | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A Ordinary shares ( shares issued and 600,638,350 shares outstanding as of | 557 | 422 | 60 | |||||
| Class | 168 | 168 | 24 | |||||
| (10,182 | ) | (10,156 | ) | (1,452 | ) | |||
| Additional paid in capital | 2,703,147 | 2,678,350 | 382,999 | |||||
| Statutory reserves | 2,605 | 14,392 | 2,058 | |||||
| Accumulated deficit | (2,490,809 | ) | (2,314,891 | ) | (331,025 | ) | ||
| Accumulated other comprehensive income | 29,803 | 32,777 | 4,687 | |||||
| TOTAL SOGP Inc.’s shareholders’ equity | 235,289 | 401,062 | 57,351 | |||||
| Non-controlling interests | (20,984 | ) | (26,766 | ) | (3,827 | ) | ||
| TOTAL SHAREHOLDERS’ EQUITY | 214,305 | 374,296 | 53,524 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 521,440 | 749,614 | 107,195 | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||||||||||||||
| Six Months Ended | Twelve Months Ended | |||||||||||||||||||
| December | December | December | December | December | December | |||||||||||||||
| 31, 2024 | 2025 | 31, 2025 | 31, 2025 | 31, 2024 | 31, 2025 | 31, 2025 | ||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Net revenues | ||||||||||||||||||||
| Value-added Services | 1,100,551 | 1,341,392 | 1,715,034 | 245,247 | 2,018,598 | 3,056,426 | 437,063 | |||||||||||||
| Subscription and others | 7,276 | 16,282 | 30,046 | 4,297 | 13,208 | 46,328 | 6,625 | |||||||||||||
| Total net revenues | 1,107,827 | 1,357,674 | 1,745,080 | 249,544 | 2,031,806 | 3,102,754 | 443,688 | |||||||||||||
| Cost of revenues (1) | (797,307 | ) | (965,618 | ) | (1,231,977 | ) | (176,170 | ) | (1,474,948 | ) | (2,197,595 | ) | (314,252 | ) | ||||||
| Gross profit | 310,520 | 392,056 | 513,103 | 73,374 | 556,858 | 905,159 | 129,436 | |||||||||||||
| Operating expenses (1) | ||||||||||||||||||||
| Selling and marketing expenses | (184,089 | ) | (153,390 | ) | (194,300 | ) | (27,785 | ) | (307,281 | ) | (347,690 | ) | (49,719 | ) | ||||||
| General and administrative expenses | (62,063 | ) | (54,119 | ) | (46,135 | ) | (6,597 | ) | (106,587 | ) | (100,254 | ) | (14,336 | ) | ||||||
| Research and development expenses | (109,792 | ) | (121,390 | ) | (118,823 | ) | (16,991 | ) | (232,693 | ) | (240,213 | ) | (34,350 | ) | ||||||
| Total operating expenses | (355,944 | ) | (328,899 | ) | (359,258 | ) | (51,373 | ) | (646,561 | ) | (688,157 | ) | (98,405 | ) | ||||||
| Operating (loss)/income | (45,424 | ) | 63,157 | 153,845 | 22,001 | (89,703 | ) | 217,002 | 31,031 | |||||||||||
| Interest expense | (218 | ) | (28 | ) | - | - | (416 | ) | (28 | ) | (4 | ) | ||||||||
| Foreign exchange gains/(losses) | (2,435 | ) | 573 | (1,595 | ) | (228 | ) | (4,209 | ) | (1,022 | ) | (146 | ) | |||||||
| Interest income and investment income | 5,240 | 3,519 | 3,750 | 536 | 10,042 | 7,269 | 1,039 | |||||||||||||
| Government grants | 1,032 | 2,175 | 120 | 17 | 2,148 | 2,295 | 328 | |||||||||||||
| Others, net | (677 | ) | (653 | ) | (1,433 | ) | (205 | ) | 4,423 | (2,086 | ) | (298 | ) | |||||||
| (Loss)/income before income taxes | (42,482 | ) | 68,743 | 154,687 | 22,121 | (77,715 | ) | 223,430 | 31,950 | |||||||||||
| Income tax expenses | (2,014 | ) | (1,158 | ) | (1,623 | ) | (232 | ) | (3,261 | ) | (2,781 | ) | (398 | ) | ||||||
| Net (loss)/income | (44,496 | ) | 67,585 | 153,064 | 21,889 | (80,976 | ) | 220,649 | 31,552 | |||||||||||
| Net loss attributable to the non-controlling interests shareholders | 5,903 | 2,957 | 2,876 | 411 | 11,396 | 5,833 | 834 | |||||||||||||
| Net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders | (38,593 | ) | 70,542 | 155,940 | 22,300 | (69,580 | ) | 226,482 | 32,386 | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||||||||
| Six Months Ended | Twelve Months Ended | ||||||||||||||||
| December | December | December | December | ||||||||||||||
| 2024 | 2025 | 31, 2025 | 31, 2025 | 2024 | 31, 2025 | 31, 2025 | |||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||
| Net (loss)/income | (44,496 | ) | 67,585 | 153,064 | 21,889 | (80,976 | ) | 220,649 | 31,552 | ||||||||
| Other comprehensive (loss)/ income: | |||||||||||||||||
| Foreign currency translation adjustments | 13,846 | 6,771 | (3,746 | ) | (536 | ) | 11,754 | 3,025 | 433 | ||||||||
| Total comprehensive (loss)/ income | (30,650 | ) | 74,356 | 149,318 | 21,353 | (69,222 | ) | 223,674 | 31,985 | ||||||||
| Comprehensive loss attributable to non-controlling interests shareholders | 5,987 | 2,945 | 2,837 | 406 | 11,522 | 5,782 | 827 | ||||||||||
| Comprehensive (loss)/income attributable to Inc.’s ordinary shareholders | (24,663 | ) | 77,301 | 152,155 | 21,759 | (57,700 | ) | 229,456 | 32,812 | ||||||||
| Net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders per share | |||||||||||||||||
| —Basic | (0.04 | ) | 0.07 | 0.17 | 0.02 | (0.07 | ) | 0.24 | 0.03 | ||||||||
| —Diluted | (0.04 | ) | 0.07 | 0.17 | 0.03 | (0.07 | ) | 0.24 | 0.03 | ||||||||
| Weighted average number of ordinary shares | |||||||||||||||||
| —Basic | 1,026,725,421 | 1,027,216,172 | 940,645,994 | 940,645,994 | 1,026,725,421 | 940,645,994 | 940,645,994 | ||||||||||
| —Diluted | 1,026,725,421 | 1,027,216,172 | 943,559,133 | 943,559,133 | 1,026,725,421 | 943,559,133 | 943,559,133 | ||||||||||
Net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders per ADS
| —Basic | (7.52 | ) | 13.73 | 33.16 | 4.74 | (13.55 | ) | 48.15 | 6.89 | ||||||||
| —Diluted | (7.52 | ) | 13.73 | 33.05 | 4.73 | (13.55 | ) | 48.01 | 6.86 | ||||||||
| Weighted average number of ADS | |||||||||||||||||
| —Basic | 5,133,627 | 5,136,081 | 4,703,230 | 4,703,230 | 5,133,627 | 4,703,230 | 4,703,230 | ||||||||||
| —Diluted | 5,133,627 | 5,136,081 | 4,717,796 | 4,717,796 | 5,133,627 | 4,717,796 | 4,717,796 | ||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (All amounts in thousands, except for share, ADS, per share data and per ADS data) |
(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Six Months Ended | Twelve Months Ended | ||||||||||||
| December | December | December | December | December | December | ||||||||
| 31, 2024 | 2025 | 31, 2025 | 31, 2025 | 31, 2024 | 31, 2025 | 31, 2025 | |||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| Cost of revenues | 383 | 237 | 319 | 46 | 1,788 | 556 | 80 | ||||||
| Selling and marketing expenses | 44 | 59 | - | - | 994 | 59 | 8 | ||||||
| General and administrative expenses | 2,565 | 236 | 238 | 34 | 5,702 | 474 | 68 | ||||||
| Research and development expenses | 1,811 | 2,247 | 1,182 | 169 | 5,666 | 3,429 | 490 | ||||||
| Total | 4,803 | 2,779 | 1,739 | 249 | 14,150 | 4,518 | 646 | ||||||
| UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||||
| Six Months Ended | Twelve Months Ended | ||||||||||||
| December | December | December | |||||||||||
| 2024 | 2025 | 31, 2025 | 2024 | 31, 2025 | 31, 2025 | ||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
| Gross profit | 310,520 | 392,056 | 73,374 | 556,858 | 905,159 | 129,436 | |||||||
| Share-based compensation expenses | 383 | 237 | 46 | 1,788 | 556 | 80 | |||||||
| Non-GAAP gross profit | 310,903 | 392,293 | 73,420 | 558,646 | 905,715 | 129,516 | |||||||
| Operating (loss)/income | (45,424 | ) | 63,157 | 22,001 | (89,703 | ) | 217,002 | 31,031 | |||||
| Share-based compensation expenses | 4,803 | 2,779 | 249 | 14,150 | 4,518 | 646 | |||||||
| Non-GAAP operating (loss)/ income | (40,621 | ) | 65,936 | 22,250 | (75,553 | ) | 221,520 | 31,677 | |||||
| Net (loss)/income | (44,496 | ) | 67,585 | 21,889 | (80,976 | ) | 220,649 | 31,552 | |||||
| Share-based compensation expenses | 4,803 | 2,779 | 249 | 14,150 | 4,518 | 646 | |||||||
| Non-GAAP net (loss)/income | (39,693 | ) | 70,364 | 22,138 | (66,826 | ) | 225,167 | 32,198 | |||||
| Net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders | (38,593 | ) | 70,542 | 22,300 | (69,580 | ) | 226,482 | 32,386 | |||||
| Share-based compensation expenses | 4,803 | 2,779 | 249 | 14,150 | 4,518 | 646 | |||||||
| Non-GAAP net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders | (33,790 | ) | 73,321 | 22,549 | (55,430 | ) | 231,000 | 33,032 | |||||
| Non-GAAP net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders per share | |||||||||||||
| —Basic | (0.03 | ) | 0.07 | 0.02 | (0.05 | ) | 0.25 | 0.04 | |||||
| —Diluted | (0.03 | ) | 0.07 | 0.02 | (0.05 | ) | 0.24 | 0.04 | |||||
| Weighted average number of ordinary shares | |||||||||||||
| —Basic | 1,026,725,421 | 1,027,216,172 | 940,645,994 | 1,026,725,421 | 940,645,994 | 940,645,994 | |||||||
| —Diluted | 1,026,725,421 | 1,027,216,172 | 943,559,133 | 1,026,725,421 | 943,559,133 | 943,559,133 | |||||||
| Non-GAAP net (loss)/income attributable to Sound Group Inc.’s ordinary shareholders per ADS | |||||||||||||
| —Basic | (6.58 | ) | 14.28 | 4.79 | (10.80 | ) | 49.12 | 7.02 | |||||
| —Diluted | (6.58 | ) | 14.28 | 4.78 | (10.80 | ) | 48.96 | 7.00 | |||||
| Weighted average number of ADS | |||||||||||||
| —Basic | 5,133,627 | 5,136,081 | 4,703,230 | 5,133,627 | 4,703,230 | 4,703,230 | |||||||
| —Diluted | 5,133,627 | 5,136,081 | 4,717,796 | 5,133,627 | 4,717,796 | 4,717,796 | |||||||
Source: