Sound Group (SOGP) investor relations material

Executive summary

• Net revenues for the first half of 2025 reached RMB1,357.7 million (US$189.5 million), up 47% year-over-year, driven by growth in audio entertainment and AI product revenues.

• Net income was RMB67.6 million (US$9.4 million), a turnaround from a net loss of RMB36.5 million in the same period last year.

• Average total mobile MAUs declined to 30.4 million from 35.7 million year-over-year.

• Strategic focus on expanding AI initiatives and content ecosystem contributed to revenue growth and operational efficiency.

Financial highlights

• Gross profit increased 59% year-over-year to RMB392.1 million (US$54.7 million); gross margin improved to 29% from 27%.

• Operating income was RMB63.2 million (US$8.8 million), compared to an operating loss of RMB44.3 million a year ago.

• Non-GAAP net income was RMB70.4 million (US$9.8 million), versus a non-GAAP net loss of RMB27.1 million last year.

• Basic and diluted net income per ADS was RMB13.73 (US$1.92), compared to a net loss per ADS of RMB6.04.

• Cash and cash equivalents plus restricted cash totaled RMB511.1 million (US$71.4 million) as of June 30, 2025.

Outlook and guidance

• Management expects to continue enhancing operational efficiency and exploring new growth opportunities, leveraging a strong balance sheet and ongoing AI initiatives.