Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to US$17.21, the stock trades at a trailing P/E ratio of 2.2x. Average trailing P/E is 29x in the Entertainment industry in the US. Total returns to shareholders of 188% over the past three years. Upcoming Dividend • Apr 15
Upcoming dividend of US$1.17 per share Eligible shareholders must have bought the stock before 22 April 2026. Payment date: 12 May 2026. Trailing yield: 6.0%. Within top quartile of American dividend payers (4.2%). Higher than average of industry peers (1.5%). Reported Earnings • Apr 02
Full year 2025 earnings released Full year 2025 results: Revenue: CN¥3.10b (up 53% from FY 2024). Net income: CN¥226.5m (up CN¥307.5m from FY 2024). Profit margin: 7.3% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Duyuru • Mar 31
Sound Group Inc. Announces Special Cash Dividend, Payable on or Around May 12, 2026 Sound Group Inc. announced that its board of directors (the “Board”) has approved a special cash dividend of USD 0.006 per ordinary share, or USD 1.20 per American Depositary Share (“ADS”), to holders of ordinary shares and ADSs of record as of the close of business on April 22, 2026 (U.S. Eastern Time). The aggregate amount of the cash dividend will amount to approximately USD 5 million, with payments expected to be made on or around May 12, 2026, for holders of ordinary shares and ADSs. Holders of the Company’s ADSs will receive the cash dividend through Deutsche Bank Trust Company Americas, the depositary bank of the Company’s ADS program, subject to the terms and conditions of the deposit agreement. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to US$16.25, the stock trades at a trailing P/E ratio of 24.6x. Average trailing P/E is 35x in the Entertainment industry in the US. Total returns to shareholders of 124% over the past three years. New Risk • Mar 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (US$60.2m market cap). Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to US$14.79, the stock trades at a trailing P/E ratio of 22.6x. Average trailing P/E is 19x in the Entertainment industry in the US. Total returns to shareholders of 59% over the past three years. Duyuru • Jan 07
Sound Group Inc. Launches SoundSphereAI, a Voice AI Technology Showcase Platform Sound Group Inc. announced the official launch of SoundSphereAI, a voice AI technology showcase and experience platform designed for a global audience. The platform presents selected voice AI technologies and R&D achievements across automatic speech recognition, text-to-speech, and real-time audio intelligence. Built on years of continuous research and technological development, Sound Group has established a comprehensive SoundSphere technology system that integrates three major aspects: foundational infrastructure, advanced AI capabilities, and operational intelligence. This technology system supports the stable operation of the Company's existing core businesses while laying a solid foundation for future product innovation and global expansion. Sound Group has integrated selected voice AI technologies from its SoundSphere technology system into the SoundSphereAI platform, offering a structured overview of the Company's capabilities across key voice AI technologies. These include high-fidelity speech synthesis capable of generating natural and expressive voices, multilingual speech recognition supporting a wide range of global languages and major dialects, as well as ultra-light voice cloning and voice conversion technologies enabled by short, five-second audio samples. In addition, the platform introduces Sound Group's ongoing technical exploration in areas such as real-time audio and video processing, low-latency voice interaction, and semantic and emotional understanding. Together, these technologies and capabilities highlight the potential value of voice AI technologies across communication, content creation, and a diverse usage scenarios. As a technology showcase platform, SoundSphereAI provides an interactive experience module that allows users to intuitive explore voice AI technology use cases. Simultaneously, through introduction of the Company's voice AI technology architecture, capability modules, and applied scenarios, Sound Group offers developers, creators, and partners a clear window into its voice technology capabilities and long-term technical roadmap. Through SoundSphereAI, Sound Group aims to present the latest developments in voice AI technology in a more open and intuitive manner, fostering exploration of voice-based AI applications, and encouraging technological communication and collaboration. Looking ahead, the Company will continue to strengthen its technology foundation and advance its voice AI capabilities, leveraging technology to drive product innovation and user experience improvements, while reinforcing its long-term competitiveness in the global market. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$12.02, the stock trades at a trailing P/E ratio of 18.6x. Average trailing P/E is 20x in the Entertainment industry in the US. Total returns to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to US$13.24, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 21x in the Entertainment industry in the US. Total returns to shareholders of 86% over the past three years. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$10.94, the stock trades at a trailing P/E ratio of 17x. Average trailing P/E is 21x in the Entertainment industry in the US. Total returns to shareholders of 60% over the past three years. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$15.04, the stock trades at a trailing P/E ratio of 23.4x. Average trailing P/E is 25x in the Entertainment industry in the US. Total returns to shareholders of 281% over the past three years. Valuation Update With 7 Day Price Move • Oct 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$16.33, the stock trades at a trailing P/E ratio of 25.5x. Average trailing P/E is 28x in the Entertainment industry in the US. Total returns to shareholders of 245% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to US$26.52, the stock trades at a trailing P/E ratio of 41.4x. Average trailing P/E is 37x in the Entertainment industry in the US. Total returns to shareholders of 200% over the past three years. Recent Insider Transactions Derivative • Sep 04
VP of Finance & Acting CFO notifies of intention to sell stock Chengfang Lu intends to sell 10k shares in the next 90 days after lodging an Intent To Sell Form on the 3rd of September. If the sale is conducted around the recent share price of US$7.16, it would amount to US$72k. As of today, Chengfang currently holds no shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Reported Earnings • Aug 31
First half 2025 earnings released: EPS: CN¥13.74 (vs CN¥6.04 loss in 1H 2024) First half 2025 results: EPS: CN¥13.74 (up from CN¥6.04 loss in 1H 2024). Revenue: CN¥1.36b (up 47% from 1H 2024). Net income: CN¥70.5m (up CN¥101.5m from 1H 2024). Profit margin: 5.2% (up from net loss in 1H 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Duyuru • Aug 28
Sound Group Inc. Approves Special Cash Dividend, Payable on or Around September 30, 2025 Sound Group Inc. announced that its board of directors approved a cash dividend of USD 0.005 per ordinary share, or USD 1 per ADS, to holders of ordinary shares and ADSs of record as of the close of business on September 15, 2025 (U.S. Eastern Time). The payment is expected to be made on or around September 30, 2025 for holders of ordinary shares and holders of ADSs. New Risk • Jun 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Market cap is less than US$10m (US$6.54m market cap). Duyuru • Jun 09
Sound Group Inc. (NasdaqCM:SOGP) announces an Equity Buyback for $4 million worth of its shares. Sound Group Inc. announces a share repurchase program. Under the program, the company will repurchase up to $4 million worth of its shares. The company plans to fund the repurchases out of its existing cash balance or future cash generated by operating activities. Reported Earnings • May 01
Full year 2024 earnings released: CN¥15.77 loss per share (vs CN¥24.93 loss in FY 2023) Full year 2024 results: CN¥15.77 loss per share (improved from CN¥24.93 loss in FY 2023). Revenue: CN¥2.03b (down 1.9% from FY 2023). Net loss: CN¥81.0m (loss narrowed 40% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 54% per year whereas the company’s share price has fallen by 51% per year. New Risk • Apr 06
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.56m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • Dec 19
First half 2024 earnings released First half 2024 results: Revenue: CN¥924.0m (down 25% from 1H 2023). Net loss: CN¥31.0m (down 150% from profit in 1H 2023). Reported Earnings • Nov 01
Full year 2023 earnings released: CN¥25.54 loss per share (vs CN¥16.69 profit in FY 2022) Full year 2023 results: CN¥25.54 loss per share (down from CN¥16.69 profit in FY 2022). Revenue: CN¥2.12b (down 3.0% from FY 2022). Net loss: CN¥127.3m (down 247% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has fallen by 60% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$2.04, the stock trades at a trailing P/E ratio of 2.2x. Average trailing P/E is 25x in the Entertainment industry in the US. Total loss to shareholders of 94% over the past three years. New Risk • Sep 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Share price has been volatile over the past 3 months (10% average weekly change). Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (US$10.3m market cap). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to US$1.94, the stock trades at a trailing P/E ratio of 2.1x. Average trailing P/E is 22x in the Entertainment industry in the US. Total loss to shareholders of 94% over the past three years. New Risk • Aug 06
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.95m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (US$9.95m market cap). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Profit margins are more than 30% lower than last year (1.5% net profit margin). Board Change • Jul 30
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Xiang Wang was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Duyuru • May 22
Sound Group Receives NASDAQ Notice Related to Late Filing of Form 20-F Sound Group Inc. (‘Sound Group’ or the ‘Company’) announced that it has received a letter from the NASDAQ Stock Market, dated May 17, 2024 (the ‘Delinquency Letter’), notifying the Company that it is not in compliance with the requirements for continued listing set in NASDAQ Listing Rule 5250(c)(1) because it did not timely file its annual report on Form 20-F for the fiscal year ended December 31, 2023 (the ‘2023 Annual Report’). In accordance with NASDAQ Listing Rules, the Company has 60 calendar days from the date of the Delinquency Letter to submit a plan to regain compliance with NASDAQ Listing Rules (the ‘Compliance Plan’). If NASDAQ accepts the Compliance Plan, NASDAQ may grant the Company an extension until November 11, 2024 to regain compliance. The Company intends to submit the Compliance Plan within the prescribed 60-day period. The Delinquency Letter has no immediate impact on the listing of the Company’s ordinary shares represented by American depositary shares on the Nasdaq Capital Market. This announcement is made in compliance with NASDAQ Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification. Duyuru • May 01
Sound Group Inc. announced delayed 20-F filing On 04/30/2024, Sound Group Inc. announced that they will be unable to file their next 20-F by the deadline required by the SEC. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$2.83, the stock trades at a trailing P/E ratio of 3.2x. Average trailing P/E is 20x in the Entertainment industry in the US. Total loss to shareholders of 95% over the past three years. Duyuru • Mar 12
Sound Group Inc. Upgrades AI-Powered App to Enrich Its Product Portfolio Sound Group Inc. announced that it has upgraded one of its AI-powered applications and launched a new version, incorporating voice technology and the latest AI models. Constantly engaged in in-depth research and exploration of cutting-edge technologies such as AIGC, Sound Group is committed to advancing technological productization, deeply integrating AI and the Company’s proprietary technologies, as well as expanding the scope where these technologies can be applied. Leveraging the advantages of voice-based technology, Sound Group further optimized its AI products and implemented voice input functionality in the new version of its AI application. This was achieved by employing Natural Language Processing (NLP), Automatic Speech Recognition (ASR), Large Language Models (LLM) and other related technologies, as well as integrating the GPT-4 model by OpenAI. These efforts are aimed at enhancing product usability and improving the user experience. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to US$4.07, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 18x in the Entertainment industry in the US. Total loss to shareholders of 96% over the past three years. Duyuru • Feb 21
Sound Group Embraces Generative AI to Unveil New Ai-Powered Applications Sound Group Inc. announced that it has launched new AI-powered applications for the international market. The Company expects to further develop and enrich its suite of AI products by actively integrating AIGC technologies. Constantly engaged in in-depth research and exploration of cutting-edge technologies such as AIGC, Sound Group leverages its strengths and expertise in product development and operations to optimize its AI technologies. The Company has achieved numerous breakthroughs across various technological niches including Automatic Speech Recognition (ASR), Text-to-Speech (TTS), AI voice, and Large Language Models (LLM) - establishing a solid technical foundation for sustainable business development. By integrating the Company's core technologies with AI, Sound Group is steadfast in its pursuit of developing a diverse range of AI-powered applications through continuous product innovation and advancement, catering to a wider spectrum of user needs and demands. Sound Group recently rolled out various different AI-powered applications for the International market that enhance user productivity and foster creativity, focusing on smart keyboards, intelligent audio recording, AI audio processing, and more. Looking ahead, Sound Group will continue advancing its research and exploration of AI technology. Centering around its core business ecosystem and leveraging its proprietary technologies, the Company aims to continue upgrading its existing AI products as well as incubate more applications and features that deeply integrate AI capabilities. Sound Group strives to build a varied AI product matrix to drive the Company's global business development and unlock further commercialization potential. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$2.74, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 18x in the Entertainment industry in the US. Total loss to shareholders of 98% over the past three years. Duyuru • Jan 26
Lizhi Inc.(NasdaqCM:SOGP) dropped from NASDAQ Composite Index Lizhi Inc. has been dropped from NASDAQ Composite Index . Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$2.75, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 19x in the Entertainment industry in the US. Total loss to shareholders of 93% over the past three years. Duyuru • Dec 14
Lizhi Inc. (NasdaqCM:LIZI) announces an Equity Buyback for $3 million worth of its shares. Lizhi Inc. (NasdaqCM:LIZI) announces a share repurchase program. Under the program, the company will repurchase up to $3 million worth of its Class A ordinary shares (including Class A ordinary shares in the form of American depositary shares). The repurchases will be funded out of company's existing cash balance or future cash generated by operating activities. The program will be valid for 12 months. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment deteriorates as stock falls 41% After last week's 41% share price decline to US$2.27, the stock trades at a trailing P/E ratio of 2.5x. Average trailing P/E is 21x in the Entertainment industry in the US. Total loss to shareholders of 94% over the past three years. New Risk • Dec 01
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.5% Last year net profit margin: 3.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (US$20.4m market cap). Duyuru • Nov 22
Lizhi Inc. to Report Q3, 2023 Results on Nov 29, 2023 Lizhi Inc. announced that they will report Q3, 2023 results After-Market on Nov 29, 2023 Duyuru • Oct 06
Lizhi Inc. Regains Compliance with Nasdaq Capital Market Minimum Bid Price Requirement Lizhi Inc. announced that it had received a notification letter (the ‘Compliance Notification’) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (‘Nasdaq’), dated October 4, 2023, notifying the Company that it has regained compliance with the minimum bid price of USD 1.00 per share requirement set forth under Nasdaq Listing Rule 5550(a)(2) (the ‘Nasdaq Capital Market Minimum Bid Price Requirement’). As announced on October 12, 2022, LIZHI was notified by Nasdaq that the Company was not in compliance with the Minimum Bid Price Requirement, as the closing bid price of the Company’s American depositary shares (‘ADSs’) was below USD 1.00 per share for 30 consecutive business days. As announced on March 29, 2023, Nasdaq approved the Company's request to transfer the listing of its ADSs from The Nasdaq Global Market to The Nasdaq Capital Market, as a result of which the Company was eligible for an additional period to regain compliance with the Nasdaq Capital Market Minimum Bid Price Requirement for continued listing. To regain compliance with the Minimum Bid Price Requirement, the closing bid price of the Company's ADSs needs to be at least USD 1.00 for a minimum of 10 consecutive business days. As part of its efforts to regain compliance with the Minimum Bid Price Requirement, the Company changed the ratio of its ADSs representing Class A ordinary shares from one (1) ADS representing twenty (20) Class A ordinary shares to one (1) ADS representing two hundred (200) Class A ordinary shares. The change became effective on September 20, 2023. On October 4, 2023, Nasdaq confirmed in the Compliance Notification that the closing bid price of the Company’s ADSs has been at $1.00 per share or greater for the ten consecutive business days from September 20, 2023 through October 3, 2023. Accordingly, the Company has regained compliance with the Nasdaq Capital Market Minimum Bid Price Requirement, and the matter is now closed. Valuation Update With 7 Day Price Move • Sep 20
Investor sentiment improves as stock rises 838% After last week's 838% share price gain to US$4.34, the stock trades at a trailing P/E ratio of 14.6x. Average trailing P/E is 21x in the Entertainment industry in the US. Total returns to shareholders of 61% over the past three years. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.25 (vs CN¥0.37 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.25 (down from CN¥0.37 in 2Q 2022). Revenue: CN¥592.9m (up 15% from 2Q 2022). Net income: CN¥13.2m (down 30% from 2Q 2022). Profit margin: 2.2% (down from 3.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 139% per year but the company’s share price has fallen by 46% per year, which means it is significantly lagging earnings. Duyuru • Aug 15
Lizhi Inc. to Report Q2, 2023 Results on Aug 29, 2023 Lizhi Inc. announced that they will report Q2, 2023 results After-Market on Aug 29, 2023 Board Change • Aug 09
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Xiang Wang was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Duyuru • Jul 11
Lizhi Inc. Launches New Impressive "Animated Avatar" Feature for Users' Customized My Ai Fondend Chatbot LIZHI INC. launched a new expressive "Animated Avatar" feature for users' customized MY AI FRIEND chatbot with the latest update to its global social networking platform TIYA App ("TIYA"). The new "Animated Avatar' feature for TIYA's MY AI FRIEND chatbot provides animated and expressive AI-generated faces to users' customized AI companions, further enhancing real-time conversations and fostering a deeper emotional connection between users and their AI companions. Leveraging the LIZHI Group's innovations with AI-generated voice technology, all TIYA users can now also use voice chat with their customized MY AI FRIEND chat bot. This feature more effectively conveys emotions online, helping AI companions' responses be more natural and fitting for different situations. Earlier in May, LIZHI had launched virtual AI preset companions for TIYA's MY AIRIEND chatbot, spanning characters such as musician DJ Fresh and game consultant Alex Marshall. Each preset companion has a unique personality that caters to the diverse needs and interests of TIYA users. These companions provide users with unique socializing options and supplement TIYA's existing MY AI FRIEND chatbot features, which already enable users to create and customize their own exclusive AI friends. LIZHI is committed to exploring the boundless possibilities of AI technology, especially for online companies and fulfilling users' social needs. The Company plans to continue developing its AI features to provide users with better AI-based emotional companionship and a richer online, interactive social experience. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$1.06, the stock trades at a trailing P/E ratio of 3.3x. Average forward P/E is 25x in the Entertainment industry in the US. Total loss to shareholders of 82% over the past three years. Reported Earnings • May 26
First quarter 2023 earnings released: EPS: CN¥0.93 (vs CN¥0.32 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.93 (up from CN¥0.32 in 1Q 2022). Revenue: CN¥631.0m (up 22% from 1Q 2022). Net income: CN¥49.4m (up 201% from 1Q 2022). Profit margin: 7.8% (up from 3.2% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 139% per year but the company’s share price has fallen by 42% per year, which means it is significantly lagging earnings. Duyuru • May 11
Lizhi Inc. to Report Q1, 2023 Results on May 25, 2023 Lizhi Inc. announced that they will report Q1, 2023 results Pre-Market on May 25, 2023 Reported Earnings • Mar 17
Full year 2022 earnings released: EPS: CN¥1.67 (vs CN¥2.57 loss in FY 2021) Full year 2022 results: EPS: CN¥1.67 (up from CN¥2.57 loss in FY 2021). Revenue: CN¥2.19b (up 3.1% from FY 2021). Net income: CN¥86.5m (up CN¥213.8m from FY 2021). Profit margin: 4.0% (up from net loss in FY 2021). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 2.4% p.a. on average during the next 2 years, compared to a 8.5% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 135% per year but the company’s share price has fallen by 51% per year, which means it is significantly lagging earnings. Duyuru • Feb 11
LIZHI’s Advancements in NLP Tech Enrich Interactive Entertainment Experience LIZHI INC. has announced that, with its latest technological advancements and achievements in natural language processing (NLP), the Company is working on an AI-powered online chatbot demo. LIZHI plans to integrate the chatbot into the Company’s diverse product matrix, which will further enrich users' social audio and interactive audio entertainment experience. LIZHI is committed to driving ongoing product innovation for interactive audio entertainment through continuous exploration and advancement of cutting-edge technologies along with the Company’s strengths in developing online audio products. Years of in-depth research and experience in technological optimization have enabled LIZHI to develop the chatbot, which leverages NLP technology – similar to how OpenAI's ChatGPT is also based on NLP technology. LIZHI’s chatbot is now able to intelligently analyze, comprehend and derive meaning from natural, text-based human language, and reply with automated text-based responses. Using the insights and knowledge into AI gained from experience in online audio and interactive entertainment, LIZHI hopes to continue expanding the possible applications and usage scenarios of NLP technologies and actualize more implementation of these technologies in its audio products. In addition to the text-based chat function, LIZHI plans to further enhance its chatbot’s features by leveraging Automatic Speech Recognition (ASR) and Text-to-Speech (TTS) technology, and launch a voice-based chatbot that is capable of automated voice dialogue. In the years to come, LIZHI will continue advancing the technologies that support and enhance the Company’s products, and then apply these advancements to a wider range of usage scenarios – ultimately providing users with a richer and even more personalized content and audio experience. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$1.07, the stock trades at a trailing P/E ratio of 5.8x. Average forward P/E is 32x in the Entertainment industry in the US. Total loss to shareholders of 90% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: CN¥0.38 (vs CN¥0.73 loss in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.38 (up from CN¥0.73 loss in 3Q 2021). Revenue: CN¥565.2m (up 12% from 3Q 2021). Net income: CN¥19.8m (up CN¥56.9m from 3Q 2021). Profit margin: 3.5% (up from net loss in 3Q 2021). Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Entertainment industry in the US. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Founder, Chairman & CEO Marco Lai is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Duyuru • Nov 09
Lizhi Inc. to Report Q3, 2022 Results on Nov 16, 2022 Lizhi Inc. announced that they will report Q3, 2022 results Pre-Market on Nov 16, 2022 Duyuru • Oct 14
Lizhi Inc. Launches ‘Short Audio Clips’ to Boost Interactivity on Its Vibrant Online Audio Community Lizhi Inc. has recently rolled out a new short audio clips feature on its audio platform. Short audio clips create an even more immersive and engaging audio and listening experience for the platform’s vibrant and growing online communities and encourage users to explore innovative interactions through “short audio + social audio”. Through the platform, users can click into the short audio clips space with a single touch and access a wide range of high-quality audio content, and at the same time also share short audio content with fellow users through likes, recommendations and reviews. Within the short audio clips space, users can also take advantage of an audio clips library and audio clip templates to create their own segments, whether to create content around current hot topics or ongoing challenges. The platform recently held a dubbing event where users were encouraged to act as a character for one minute, encouraging sharing of their own audio bites and creating a more lively environment for online audio communities. LIZHI has also launched a series of different events and challenges to boost user engagement around themes such as “the sound of cosmic stars”, “seeking a reply on an autumn day”, and the “listen and recommend great voices” content referral event. The platform recently released the first language-specific livestreaming room, the “Cantonese Teahouse”, where users can mingle and interact with Cantonese-speaking streamers from diverse backgrounds. This has enabled a deeper appreciation of Lingnan culture through livestreaming. LIZHI’s launch of short audio clips is closely linked to the Company’s Voice Cloud – a proprietary in-house cloud computing platform built on LIZHI’s technological expertise. LIZHI continuously optimizes and upgrades audio creator tools through Voice Cloud’s technology, including upgrades to the synchronization between audio and text, noise reduction, and improved sound quality through AI – all of which enables LIZHI’s community of users and creators to produce higher quality audio content more easily. LIZHI is committed to its core value of putting users first, constantly striving to satisfy users’ needs for positive online communities and audio interactivity, and regularly upgrading and updating LIZHI's suite of products and services to improve users’ satisfaction. Duyuru • Oct 13
Lizhi Inc. Announces Receipt of Minimum Bid Price Notice from Nasdaq Lizhi Inc. announced that it has received a written notification from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated October 11, 2022, indicating that for the last 30 consecutive business days, the closing bid price of the Company’s American depositary shares (the “ADSs”) was below the minimum bid price of $1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). The Nasdaq notification letter has no current effect on the listing or trading of the Company’s ADSs on Nasdaq. Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until April 10, 2023, to regain compliance under the Nasdaq Listing Rules. If, at any time during the 180-day compliance period, the closing bid price of the Company’s ADSs is $1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance, and the matter will be closed. In the event the Company does not regain compliance by April 10, 2023, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period if it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards, with the exception of the bid price requirement, and provides written notice of its intention to cure the deficiency. The Nasdaq notification letter does not affect the Company’s business operations. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment deteriorated over the past week After last week's 41% share price decline to US$1.03, the stock trades at a trailing P/E ratio of 50.8x. Average forward P/E is 26x in the Entertainment industry in the US. Total loss to shareholders of 76% over the past year. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.37 (vs CN¥0.58 loss in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.37 (up from CN¥0.58 loss in 2Q 2021). Revenue: CN¥515.7m (down 7.8% from 2Q 2021). Net income: CN¥18.8m (up CN¥47.9m from 2Q 2021). Profit margin: 3.7% (up from net loss in 2Q 2021). The move to profitability was driven by lower expenses. Over the next year, revenue is forecast to grow 8.5%, compared to a 22% growth forecast for the Entertainment industry in the US. Duyuru • Jul 28
LIZHI Deepens Huawei HarmonyOS Partnership Through Launch on AITO Smart Vehicles LIZHI INC. has announced that its in-car audio products have been integrated into Huawei’s HarmonyOS ecosystem featured in AITO’s M5 and M7 smart vehicles - marking the latest milestone in LIZHI’s ongoing partnership with Huawei’s HarmonyOS smart car cockpit operating system. Since the Huawei Developer Conference in October 2021, LIZHI has already integrated LIZHI Podcast, the company’s vertical podcast platform, into the HarmonyOS ecosystem and the HarmonyOS-powered smart car cockpit operating system. The start of Huawei and LIZHI’s partnership last year also marked the debut of LIZHI Podcast’s “one-click seamless connectivity” feature, which supports the cross-screen connection and use of LIZHI Podcast between HarmonyOS-equipped devices for an uninterrupted podcast experience. LIZHI Podcast is one of the first HarmonyOS vehicle ecosystem partners in China to achieve two-way seamless connectivity between mobile devices and vehicles, and the first Chinese podcast platform in China to offer this function to users. LIZHI is committed to satisfying users’ needs for high-quality audio content and providing a diverse range of audio entertainment that can be seamlessly accessed across multiple platforms at the same time. Through LIZHI’s partnership with the HarmonyOS ecosystem and AITO, AITO users will be able to enjoy LIZHI’s extensive content library of premium audio content and an innovative in-car audio entertainment experience. Leveraging LIZHI’s proprietary real-time communication (RTC) and audio data transmission technology, dubbed ‘DOREME’, Huawei and LIZHI are also collaborating to further advance in-car audio technology and will jointly roll out more in-car audio features boasting enhanced interactivity and multi-device interconnectivity. Duyuru • May 19
Lizhi Inc. to Report Q1, 2022 Results on May 26, 2022 Lizhi Inc. announced that they will report Q1, 2022 results After-Market on May 26, 2022 Duyuru • May 10
LIZHI’s Social App TIYA Amps Up Real-Time Interactivity With Key New Features LIZHI INC. has unveiled a slew of new features for its TIYA App, a global social networking platform. These new features, available through the latest app update, enrich TIYA users’ real-time online interactions. Having been downloaded by nearly 20 million users by the end of 2021, TIYA aims to meet users’ social needs in diverse usage scenarios by continuously innovating easy-to-use online social networking tools and creating a real-time interactive social space. Among TIYA’s new features, its modified group recommendation function uses LIZHI’s in-house technology and AI to recommend suitable and relevant “groups” based on users’ interests, further customizing and optimizing the user experience. Groups already engaged in real-time chat are recommended first so that users can immediately join the group’s conversation – this brings together active users and increases group social engagement on TIYA. Both TIYA’s group function and real-time interactive group spaces now also benefit from LIZHI’s proprietary technologies: VoderX, an instant messaging (IM) platform that enhances online interactivity and provides tailored IM functions; and DOREME, an audio and video streaming solution that provides high-quality technical support for LIZHI’s products, including reducing voice delay and optimizing sound quality. Improving the quality and efficiency of real-time interactions through DOREME enables smoother and more stable communication in multi-user scenarios. Integrating VoderX and DOREME into TIYA has optimized the online social audio experience making it even more vibrant with innovative features such as special voice effects for audio chats and personalized instant messaging options. In a recent app update, TIYA had unveiled a new innovative feature, dubbed the “real-time interactive group space,” on top of a redesign and optimization of its user interface. TIYA users can easily switch to the new real-time interactive group space with just one click, enabling group access to voice and text chat, image and screen-sharing, in-app YouTube video playback, and more multimedia functions – these combined features encourage real-time socializing with friends and contribute to a richer social experience. Reported Earnings • May 03
Full year 2021 earnings released: CN¥2.57 loss per share (vs CN¥5.35 loss in FY 2020) Full year 2021 results: CN¥2.57 loss per share (up from CN¥5.35 loss in FY 2020). Revenue: CN¥2.12b (up 41% from FY 2020). Net loss: CN¥127.3m (loss narrowed 46% from FY 2020). Over the next year, revenue is forecast to grow 13%, compared to a 37% growth forecast for the industry in the US. Duyuru • Apr 28
Lizhi Inc. Announces Board Changes Lizhi Inc. announced that three non-independent directors of the Company, including Mr. Ning Ding, Mr. Zelong Li and Mr. Junhua Zhang, step down from the Board. Mr. Junhua Zhang no longer serves as a member of the compensation committee and the nominating and corporate governance committee of the Board. Mr. Ming Zhang, an independent director of the Company, has been appointed as a member of both the compensation committee and the nominating and corporate governance committee of the Board. Ms. Juan Ren has been appointed as a member of the nominating and corporate governance committee of the Board. Upon the effectiveness of these changes, the Board will consist of six directors, including four independent directors. Furthermore, Mr. Ding and Mr. Li will continue to serve as the Company’s Chief Technology Officer and Chief Operating Officer, respectively. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Yike Guo was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Buying Opportunity • Mar 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 45%. The fair value is estimated to be CN¥1.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% per annum over the last 3 years. Earnings per share has grown by 58% per annum over the last 3 years. Reported Earnings • Mar 11
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: CN¥2.52 loss per share (up from CN¥5.35 loss in FY 2020). Revenue: CN¥2.12b (up 41% from FY 2020). Net loss: CN¥127.3m (loss narrowed 46% from FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 19%, compared to a 19% growth forecast for the industry in the US. Duyuru • Mar 04
Lizhi Inc. to Report Q4, 2021 Results on Mar 10, 2022 Lizhi Inc. announced that they will report Q4, 2021 results Pre-Market on Mar 10, 2022 Reported Earnings • Dec 02
Third quarter 2021 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2021 results: CN¥0.73 loss per share (down from CN¥0.13 loss in 3Q 2020). Revenue: CN¥504.8m (up 40% from 3Q 2020). Net loss: CN¥37.1m (loss widened CN¥31.0m from 3Q 2020). Revenue exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 22%, compared to a 31% growth forecast for the industry in the US. Duyuru • Sep 25
LIZHI INC. Launches “My Friends” Live Status Feature to Further Enhance Social Engagement on Social Audio App TIYA LIZHI INC. has launched a new "My Friends" live status/mood function on its app, TIYA, a global audio-based social networking product available for Android and iOS users. This new feature of the TIYA App is designed to redefine the traditional contact list found in most social products and aims to enhance the app’s audio social networking experience by enabling users to easily find friends with similar status and moods and deepen existing relationships. Through the “My Friends” function, TIYA users can discover their friends’ social intentions and status, such as whether they want to team up to play games, watch videos together through the “screen sharing” function, study, or simply chat. The new feature uses an algorithm-based recommendation engine to simplify how users can find and interact online with friends with similar status and moods. With just one click, users can join their friends’ rooms on the platform to participate in activities using real-time audio chat, encouraging more user interaction with existing contacts. LIZHI is committed to an audio-centric globalization strategy and to bringing a diverse range of audio products to a broader user base. TIYA aims to deliver a brand new social experience for younger generations worldwide by combining audio innovation with social interaction. Since the beginning of this year, TIYA’s level of user engagement has continued to grow rapidly. In June 2021, the number of active chat rooms increased by more than 180% from March 2021. Recent Insider Transactions Derivative • Sep 10
Acting Chief Financial Officer notifies of intention to sell stock Chengfang Lu intends to sell 12k shares in the next 90 days after lodging an Intent To Sell Form on the 7th of September. If the sale is conducted around the recent share price of US$4.25, it would amount to US$50k. As of today, Chengfang currently holds no shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Reported Earnings • Sep 01
Second quarter 2021 earnings released: CN¥0.58 loss per share (vs CN¥0.48 loss in 2Q 2020) The company reported a solid second quarter result with improved revenues and control over costs, although losses increased. Second quarter 2021 results: Revenue: CN¥559.3m (up 59% from 2Q 2020). Net loss: CN¥29.0m (loss widened 32% from 2Q 2020). Recent Insider Transactions Derivative • Jun 17
Acting Chief Financial Officer notifies of intention to sell stock Chengfang Lu intends to sell 11k shares in the next 90 days after lodging an Intent To Sell Form on the 11th of June. If the sale is conducted around the recent share price of US$7.47, it would amount to US$85k. As of today, Chengfang currently holds no shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Executive Departure • Jun 10
Director Xi Chen has left the company On the 1st of June, Xi Chen's tenure as Director ended after 1.4 years in the role. We don't have any record of a personal shareholding under Xi's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Executive Departure • Jun 10
Independent Director Yinquan Li has left the company On the 1st of June, Yinquan Li's tenure as Independent Director ended. We don't have any record of a personal shareholding under Yinquan's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Reported Earnings • Jun 03
First quarter 2021 earnings released The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: CN¥495.1m (up 34% from 1Q 2020). Net loss: CN¥70.0m (loss narrowed 65% from 1Q 2020).