Sound Group, Inc. Q2 FY2022 earnings call

• Focused on the dual pillar approach of interactive entertainment plus audio-based social networking business development and globalized diversified product matrix strategy.
• Incubated and launched new interactive entertainment products like live streaming, and built a unified content creator operational platform.
• Strengthened content creator engagement through events such as Summer Carnival Creator and Hall Fan, and partnered with League of Legends: Wild Rift for a cover song contest.
• Upgraded TIYA's product features, enhancing user engagement.
• Unveiled Voice Cloud, a hybrid cloud computing platform with DOREME, VoderX, and a business intelligence platform.

In the second quarter of 2022, LIZHI's total net revenues were RMB515.7 million. The gross margin reached a record high of 34%, up 600 basis points year-over-year. The interactive audio entertainment business had a user penetration rate increase of 350 basis points year-over-year to 18.5%, with average mobile MAUs of 9.17 million. For the global social product TIYA, the average daily time spent per user increased by 44% year-over-year, and the average monthly group penetration rate was up 150% year-over-year.

• Continue to refine and execute the product matrix strategy and globalization initiatives.
• Devote resources to advancing interactive entertainment and audio-based social networking business, and elevate core technology capabilities.

• Forward-looking statements involve inherent risks and uncertainties due to factors beyond control.
• Regulatory changes in live streaming tipping and other areas could materially impact actual results.

Q: Concerns on live streaming regulations and challenges in going global A: Monitored relevant industry policies, conducting self-examinations to comply with regulations; challenges in going global include localization, talent development, and cultural barriers, with focus on recruiting local talents and conducting localized operations Q: Plans for audio entertainment, MAU/ARPU outlook, in-car audio A: Focus on diversified product matrix for audio entertainment, optimize marketing strategy; in-car audio is partnering with auto companies and IoT platforms to deploy in-car applications, with growth potential in the future