Sound Group (SOGP) investor relations material

Executive summary

• Net revenues for the first half of 2026 reached RMB1,690.6 million (US$249.2 million), up 25% year-over-year.

• Net income rose 78% year-over-year to RMB120.5 million (US$17.8 million).

• AI subscription revenues surged 245% year-over-year, reflecting strong global traction and product adoption.

• Gross profit increased 32% to RMB516.1 million (US$76.1 million), with gross margin expanding to 31% from 29%.

• Operating income grew 88% year-over-year to RMB118.8 million (US$17.5 million).

Financial highlights

• Value-added services and diversified audio content drove revenue growth.

• Cost of revenues rose 22% to RMB1,174.5 million, mainly due to higher content creator fees and payment handling costs.

• Operating expenses increased 21% to RMB397.3 million, with notable rises in selling and marketing (up 47%) and R&D (up 5%).

• Basic and diluted net income per ADS were RMB29.08 and RMB28.96, up 112% and 111% year-over-year, respectively.

• Cash and cash equivalents plus restricted cash totaled RMB727.6 million (US$107.2 million) as of June 30, 2026.

Outlook and guidance

• AI will remain central to business evolution and new growth opportunities.

• Plans to deepen AI integration in the online audio ecosystem and accelerate product iteration and commercialization.

• Continued disciplined resource allocation and cost management, with strategic investments in AI technology and innovation.