Sound Group Boosts Rally with Special Dividend and Profit Increase Driving Momentum
Sound Group Inc. Financial Highlights
Special Cash Dividend Announcement: Sound Group Inc. declared a special cash dividend of $0.005 per ordinary share and $1.00 per American Depositary Share (ADS), with a total payout of $4 million. The dividend will be distributed to investors of record as of September 15, with payments scheduled for the end of the month.
Strong First-Half Results: For the first half of 2025, Sound Group reported revenue of 1.36 billion Chinese yuan ($189.5 million), marking a 47% increase from the previous year. The company achieved a net income of 67.6 million yuan ($9.4 million), a significant turnaround from a loss of 36.5 million yuan in the same period last year.
Profitability and Growth Metrics: Gross profit surged by 59% to 392.1 million yuan ($54.7 million), with gross margins improving to 29%. Operating income reached 63.2 million yuan ($8.8 million), compared to an operating loss of 44.3 million yuan in 2024. Non-GAAP net income also rose to 70.4 million yuan ($9.8 million).
Market Reaction and Stock Performance
Investor Confidence: The announcement of the dividend and the company's return to profitability boosted investor confidence, leading to a significant surge in share prices. On Thursday, shares of Sound Group experienced extreme volatility, initially rising by 196.58% before being halted, and later reaching a peak gain of 224.74%.
Current Stock Price: As of the latest update, Sound Group shares were trading at $12.75, reflecting a 2.00% increase.
Company Leadership Insights
CEO's Statement: Founder and CEO Jinnan (Marco) Lai emphasized that the dividend reflects the company's financial strength and its strategy to balance growth with shareholder returns.
CFO's Remarks: Acting CFO Chengfang Lu highlighted that the dividend and a $4 million buyback demonstrate the scalability of the business while ensuring resources for future investments.
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Sound Group Declares Cancellation of Acquired Shares
Share Repurchase Program Completion: Sound Group Inc. has successfully completed the cancellation of 951,252 American depositary shares (ADSs) under its US$4 million share repurchase program, enhancing earnings per share and reducing the number of outstanding shares.
Commitment to Shareholder Value: CEO Marco Lai emphasized the company's dedication to delivering shareholder value and confidence in its long-term growth prospects, while also announcing the completion of both the share repurchase and cash dividend programs.
