6-K
Sound Group Inc. (SOGP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OFFOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2021
Commission file number: 001-39177
LIZHI INC.
(Exact Nameof Registrant as Specified in Its Charter)
YangchengCreative Industry Zone,
No. 309 Middle Huangpu Avenue,
Tianhe District, Guangzhou 510655,
The People’s Republic of China
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| LIZHI INC. | ||
|---|---|---|
| Date: November 29, 2021 | By: | /s/ Jinnan (Marco) Lai |
| Name: Jinnan (Marco) Lai | ||
| Title: Chief Executive Officer, Director |
EXHIBIT INDEX
| ExhibitNo. | Description |
|---|---|
| 99.1 | Press Release |
EX-99.1
Exhibit 99.1
LIZHI INC. Reports Third Quarter 2021 Unaudited Financial Results
GUANGZHOU, Nov. 29, 2021 /GLOBE NEWSWIRE/ **** - LIZHI INC. (“LIZHI” or the “Company” or “We”) (NASDAQ: LIZI), an audio-based social and entertainment platform, today announced its unaudited financial results for the third quarter ended September 30, 2021.
ThirdQuarter 2021 Financial and Operational Highlights
| • | Net revenues were RMB504.8 million (US$78.4 million) in the third quarter of 2021, representing a 40%<br>increase from RMB361.5 million in the third quarter of 2020. |
|---|---|
| • | Average total mobile MAUs^1^ **** in the third<br>quarter of 2021 reached 58.9 million, representing an increase of 5% from 56.2 million in the third quarter of 2020. |
| --- | --- |
| • | Average total monthly paying users^2^ in the third<br>quarter of 2021 reached 485.5 thousand, representing an increase of 8% from 448.3 thousand in the third quarter of 2020. |
| --- | --- |
“We continued to focus on building a competitive audio ecosystem in the third quarter of 2021,” said Mr. Jinnan (Marco) Lai, founder and CEO of LIZHI. “Our strategic initiatives during the quarter focused on refining our operational strategies and harnessing our capabilities on core content categories that feature higher commercialization prospects. In doing so, we strive to unleash more commercialization potential presented in audio entertainment business and build a solid foundation for our long-term sustainable growth. In the third quarter of 2021, our average audio entertainment mobile MAUs increased by 21% year-over-year to 9.17 million. Coupled with optimized operational strategy, we expect the audio entertainment business to further boost the efficiency of paying user conversion and drive our revenue growth moving forward.
“On the global front, we continued to refine and enhance the social networking capabilities of our TIYA App. We are pleased with its progress over the past year since its launch in the U.S. and will continue to introduce new functions and features that enhance user engagement. Building on our technology roadmap and iterative product development framework, we are diligently working to reinforce our ecosystem’s virtuous cycle and offer a better user experience across our platforms and apps. We believe these endeavors will strengthen our core competencies as we navigate the evolving market landscape in China and further expand in the global audio space,” Mr. Lai concluded.
Ms. Chengfang Lu, Acting Chief Financial Officer of LIZHI, stated, “We’re pleased to see another solid year-over-year revenue growth in the third quarter. Driven by our improved operational strategy, our gross margin grew to 30%, up 500 basis points year-over-year. We believe the audio entertainment ecosystem we’ve built is fundamental to our long-term growth. Looking ahead, we will continue optimizing our audio entertainment business, enhancing commercialization capabilities, and leveraging our technology innovation and expertise, as well as actively exploring the international market, in order to achieve sustainable growth.”
| ^1^ | Refers to the average monthly number of active users across our platforms and Apps in a given period,<br>calculated by dividing (i) the sum of mobile active users for each month of such period, by (ii) the number of months in the same period. |
|---|---|
| ^2^ | Refers to the average monthly number of paying user in a given period, calculated by dividing (i) the<br>total number of paying users in each month of such period by (ii) the number of months in the same period. |
| --- | --- |
1
Third Quarter 2021 Unaudited Financial Results
Net revenues were RMB504.8 million (US$78.4 million) in the third quarter of 2021, representing an increase of 40% from RMB361.5 million in the third quarter of 2020, primarily driven by the growth of paying users and enhanced commercialization capabilities of our audio entertainment products. While the COVID-19 resurgence in various parts of the world continues, the extent to which the COVID-19 impacts on the Company’s operations beyond the third quarter of 2021 depends on the future development of the pandemic in China and across the globe, which is subject to change and substantial uncertainty, and therefore cannot be predicted.
Cost of revenues was RMB353.6 million (US$54.9 million) in the third quarter of 2021, representing an increase of 31% from RMB270.9 million in the third quarter of 2020, mainly attributable to an increase in revenue sharing fees to our content creators, salary and welfare benefits expenses and bandwidth costs, which were generally in line with the Company’s growth in business.
Gross profit was RMB151.3 million (US$23.5 million) in the third quarter of 2021, representing an increase of 67% from RMB90.6 million in the third quarter of 2020.
Non-GAAP gross profit^3^ **** was RMB154.5 million (US$24.0 million) in the third quarter of 2021, representing an increase of 68% from RMB91.9 million in the third quarter of 2020.
Gross margin for the third quarter of 2021 increased to 30% from 25% in the third quarter of 2020. Non-GAAP gross margin for the third quarter of 2021 grew to 31% from 25% in the third quarter of 2020.
Operating expenses were RMB191.3 million (US$29.7 million) in the third quarter of 2021, representing an increase of 91% from RMB100.2 million in the third quarter of 2020.
Research and development expenses were RMB73.4 million (US$11.4 million) in the third quarter of 2021, representing an increase of 32% from RMB55.6 million in the third quarter of 2020. The increase was primarily due to the increased salary and welfare benefits expenses related to an increase in the number of our research and development staff and averaging salary.
S elling and marketing expenses were RMB88.2 million (US$13.7 million) in the third quarter of 2021, compared to RMB27.1 million in the third quarter of 2020, primarily attributable to the increased promotion and marketing activities.
G eneral and administrative expenses were RMB29.7 million (US$4.6 million) in the third quarter of 2021, representing an increase of 71% from RMB17.4 million in the third quarter of 2020. The increase was mainly due to the increase in salary and welfare benefits expenses and other professional service fee.
Operating loss was RMB40.1 million (US$6.2 million) in the third quarter of 2021, compared to RMB9.6 million in the third quarter of 2020.
Non-GAAP operating loss^4^ **** was RMB30.1 million (US$4.7 million) in the third quarter of 2021, compared to RMB2.9 million in the third quarter of 2020.
Net loss was RMB37.1 million (US$5.8 million) in the third quarter of 2021, compared to RMB6.1 million in the third quarter of 2020.
Non-GAAP net loss^5^ **** was RMB27.2 million (US$4.2 million) in the third quarter of 2021, compared to non-GAAP net income of RMB0.6 million in the third quarter of 2020.
| ^3^ | Non-GAAP gross profit is a<br>non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to RMB3.2 million (US$0.5 million) in the third quarter of 2021. Please<br>refer to the section below titled “Unaudited Reconciliations of GAAP and Non-GAAP Results” for details. |
|---|---|
| ^4^ | Non-GAAP operating loss is a<br>non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. This adjustment amounted to RMB9.9 million (US$1.5 million) in the third quarter of 2021. Please<br>refer to the section below titled “Unaudited Reconciliations of GAAP and Non-GAAP Results” for details. |
| --- | --- |
| ^5^ | Non-GAAP net loss is a non-GAAP<br>financial measure, which is defined as net loss excluding share-based compensation expenses. These adjustments amounted to RMB9.9 million (US$1.5 million) in the third quarter of 2021. Please refer to the section below titled “Unaudited<br>Reconciliations of GAAP and Non-GAAP Results” for details. |
| --- | --- |
2
Net loss attributable to LIZHI INC.’s ordinary shareholders was RMB37.1 million (US$5.8 million) in the third quarter of 2021, compared to RMB6.1 million in the third quarter of 2020.
Non-GAAP net loss attributable to LIZHI INC.’s ordinary shareholders^6^ **** was RMB27.2 million (US$4.2 million) in the third quarter of 2021, compared to non-GAAP net income attributable to LIZHI INC.’s ordinary shareholders of RMB0.6 million in the third quarter of 2020.
Basic and diluted net loss perADS^7^ **** were RMB0.73 (US$0.11) in the third quarter of 2021, compared to RMB0.13 in the third quarter of 2020.
Non-GAAP basic and diluted net loss per ADS^8^ **** were RMB0.54 (US$0.08) in the third quarter of 2021, compared to non-GAAP basic and diluted net income of RMB0.01 per ADS in the third quarter of 2020.
Balance Sheets
As of September 30, 2021, the Company had cash and cash equivalents and restricted cash of RMB515.9 million (US$80.1 million).
Conference Call
The Company’s management will host an earnings conference call at 8:00 PM U.S. Eastern Time on November 29, 2021 (9:00 AM Beijing/Hong Kong Time on November 30, 2021).
For participants who wish to join the call, please access the link provided below to complete the Direct Event online registration and dial in 10 minutes prior to the scheduled call start time.
Event Title: LIZHI INC. Third Quarter 2021 Earnings Conference Call
Conference ID: 7790167
Online Registration Link: http://apac.directeventreg.com/registration/event/7790167
Upon registration, each participant will receive a set of dial-in numbers by location, a Direct Event passcode, a unique Registrant ID, and further detailed instructions, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lizhi.fm.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until December 6, 2021, by dialing the following telephone numbers:
| United States: | +1-855-452-5696 |
|---|---|
| International: | +61-2-8199-0299 |
| Hong Kong, China: | 800-963-117 |
| Mainland, China: | 400-632-2162 |
| Replay Access Code: | 7790167 |
About LIZHI INC.
LIZHI INC. has created a comprehensive audio-based social ecosystem with a global presence. The Company aims to cater to users’ interests in audio entertainment and social networking through its product portfolios.
| ^6^ | Non-GAAP net loss attributable to LIZHI INC.’s ordinary<br>shareholders is a non-GAAP financial measure, which is defined as net loss attributable to LIZHI INC.’s ordinary shareholders excluding accretions to preferred shares redemption value and share-based<br>compensation expenses. These adjustments amounted to RMB9.9 million (US$1.5 million) and RMB6.6 million in the third quarter of 2021 and 2020, respectively. Please refer to the section below titled “Unaudited Reconciliations of GAAP<br>and Non-GAAP Results” for details. |
|---|---|
| ^7^ | ADS refers to American Depositary Share. Each ADS represents twenty Class A ordinary shares of the<br>Company. Basic and diluted net loss per ADS is net loss attributable to LIZHI INC.’s ordinary shareholders divided by weighted average number of ADS. |
| --- | --- |
| ^8^ | Non-GAAP basic and diluted net loss per ADS is a non-GAAP financial measure, which is defined as non-GAAP net loss attributable to LIZHI INC.’s ordinary shareholders divided by weighted average number of ADS used in the<br>calculation of basic and diluted net loss per ADS. |
| --- | --- |
3
LIZHI INC. envisions an audio ecosystem where everyone can be connected and interact through voices. LIZHI INC. has been listed on Nasdaq since January 2020.
For more information, please visit: http://ir.lizhi.fm.
Useof Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
LIZHI uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss/income, non-GAAP net loss/income, non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders and non-GAAP basic and diluted net loss/income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses. Non-GAAP gross margin is non-GAAP gross profit as a percentage of net revenues. Non-GAAP operating loss/income is operating loss/income excluding share-based compensation expenses. Non-GAAP net loss/income is net loss excluding share-based compensation expenses. Non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders is net loss attributable to LIZHI INC.’s ordinary shareholders excluding accretions to preferred shares redemption value and share-based compensation expenses. Non-GAAP basic and diluted net loss/income per ADS is non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders divided by weighted average number of ADS used in the calculation of basic and diluted net loss per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of accretions to preferred shares redemption value and share-based compensation expenses.
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net loss for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from, superior to, or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” near the end of this release.
Statement RegardingPreliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the condensed consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from the preliminary unaudited financial information contained in this earnings release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.4434 to US$1.00, the exchange rate on September 30, 2021 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
4
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LIZHI’s goals and strategies; LIZHI’s future business development, results of operations and financial condition; the expected growth of the online audio market; the expectation regarding the rate at which to gain active users, especially paying users; LIZHI’s ability to monetize the user base; fluctuations in general economic and business conditions in China and overseas markets; the impact of the COVID-19 to LIZHI’s business operations and the economy in China and elsewhere generally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to LIZHI; and assumptions underlying or related to any of the foregoing. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
LIZHI INC.
IR Department
Tel: +86 (20) 3866-4265
E-mail: ir@lizhi.fm
The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: Lizhi@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: Lizhi@tpg-ir.com
5
LIZHI INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)
| December<br><br><br>31,<br> <br>2020 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | |||
|---|---|---|---|---|---|
| RMB | RMB | US | |||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | 315,459 | 511,710 | |||
| Short-term investments | 73,022 | — | |||
| Restricted cash | 3,695 | 4,233 | |||
| Accounts receivable, net | 8,361 | 7,393 | |||
| Prepayments and other current assets | 19,371 | 35,911 | |||
| Total current assets | **** | 419,908 | **** | 559,247 | |
| Non-current assets | |||||
| Property, equipment and leasehold improvement, net | 34,518 | 30,771 | |||
| Intangible assets, net | 2,929 | 2,540 | |||
| Right-of-use<br>assets, net | 4,282 | 21,666 | |||
| Other non-current assets | 2,181 | 895 | |||
| Total non-current assets | **** | 43,910 | **** | 55,872 | |
| TOTAL ASSETS | **** | 463,818 | **** | 615,119 | |
| LIABILITIES | |||||
| Current liabilities | |||||
| Accounts payable | 78,267 | 71,209 | |||
| Deferred revenue | 17,001 | 18,353 | |||
| Salary and welfare payable | 93,288 | 114,121 | |||
| Taxes payable | 5,809 | 6,204 | |||
| Short-term loans | 39,508 | 57,597 | |||
| Lease liabilities due within one year^^ | 3,709 | 10,525 | |||
| Accrued expenses and other current liabilities | 51,047 | 78,444 | |||
| Total current liabilities | **** | 288,629 | **** | 356,453 | |
| Non-current liabilities | |||||
| Lease liabilities^^ | 587 | 11,925 | |||
| Other non-current liabilities | 5,411 | 4,741 | |||
| Total non-current liabilities | **** | 5,998 | **** | 16,666 | |
| TOTAL LIABILITIES | **** | 294,627 | **** | 373,119 |
All values are in US Dollars.
6
LIZHI INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except for share, ADS, per share data and per ADS data)
| September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | ||||||
|---|---|---|---|---|---|---|---|
| RMB | US | ||||||
| SHAREHOLDERS’ EQUITY | |||||||
| Ordinary shares (US0.0001 par value, 1,500,000,000 and 1,500,000,000 shares authorized as of<br>December 31, 2020 and September 30, 2021, respectively, 941,464,520 shares issued and 924,318,450 shares outstanding as of December 31, 2020 and 1,030,177,260 shares issued and 1,012,099,185 shares outstanding as of September 30,<br>2021, respectively). | 640 | 698 | |||||
| Treasury stock | (12 | ) | (13 | ) | ) | ||
| Additional paid in capital | 2,409,753 | 2,621,366 | |||||
| Accumulated deficit | (2,239,281 | ) | (2,375,446 | ) | ) | ||
| Accumulated other comprehensive loss | (1,909 | ) | (4,605 | ) | ) | ||
| TOTAL SHAREHOLDERS’ EQUITY | 169,191 | **** | **** | 242,000 | **** | **** | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 463,818 | **** | **** | 615,119 | **** | **** |
All values are in US Dollars.
7
LIZHI INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br><br><br>30,<br> <br>2020 | June<br><br><br>30,<br> <br>2021 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | September<br><br><br>30,<br> <br>2020 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | |||||||||||||
| RMB | RMB | RMB | US | RMB | RMB | US | |||||||||||||
| Net revenues | |||||||||||||||||||
| Audio entertainment revenues | 355,810 | 555,073 | 500,792 | 1,066,389 | 1,545,171 | ||||||||||||||
| Podcast, advertising and other revenues | 5,650 | 4,212 | 4,052 | 16,266 | 14,011 | ||||||||||||||
| Total net revenues | **** | 361,460 | **** | **** | 559,285 | **** | **** | 504,844 | **** | **** | **** | 1,082,655 | **** | **** | 1,559,182 | **** | **** | ||
| Cost of revenues**^(1)^** | (270,853 | ) | (400,531 | ) | (353,575 | ) | ) | (833,428 | ) | (1,124,099 | ) | ) | |||||||
| Gross profit | **** | 90,607 | **** | **** | 158,754 | **** | **** | 151,269 | **** | **** | **** | 249,227 | **** | **** | 435,083 | **** | **** | ||
| Operating expenses^(1)^ | |||||||||||||||||||
| Selling and marketing expenses | (27,131 | ) | (106,325 | ) | (88,230 | ) | ) | (94,052 | ) | (315,345 | ) | ) | |||||||
| General and administrative expenses | (17,406 | ) | (23,072 | ) | (29,736 | ) | ) | (68,573 | ) | (72,425 | ) | ) | |||||||
| Research and development expenses | (55,625 | ) | (60,938 | ) | (73,377 | ) | ) | (168,887 | ) | (191,183 | ) | ) | |||||||
| Total operating expenses | **** | (100,162 | ) | **** | (190,335 | ) | **** | (191,343 | ) | ) | **** | (331,512 | ) | **** | (578,953 | ) | ) | ||
| Operating loss | **** | (9,555 | ) | **** | (31,581 | ) | **** | (40,074 | ) | ) | **** | (82,285 | ) | **** | (143,870 | ) | ) | ||
| Interest expenses, net | (661 | ) | (308 | ) | (393 | ) | ) | (1,430 | ) | (949 | ) | ) | |||||||
| Foreign exchange gains/(losses) | (32 | ) | 1 | (279 | ) | ) | (678 | ) | (427 | ) | ) | ||||||||
| Investment income | 382 | 53 | 8 | 777 | 468 | ||||||||||||||
| Government grants | 4,033 | 2,663 | 4,084 | 9,672 | 9,664 | ||||||||||||||
| Others, net | (241 | ) | 144 | (446 | ) | ) | (2,393 | ) | (1,051 | ) | ) | ||||||||
| Loss before income taxes | **** | (6,074 | ) | **** | (29,028 | ) | **** | (37,100 | ) | ) | **** | (76,337 | ) | **** | (136,165 | ) | ) | ||
| Income tax expenses | **** | — | **** | — | **** | — | **** | **** | **** | — | **** | **** | — | **** | **** | ||||
| Net loss | **** | (6,074 | ) | **** | (29,028 | ) | **** | (37,100 | ) | ) | **** | (76,337 | ) | **** | (136,165 | ) | ) | ||
| Accretions to preferred shares redemption value | **** | — | **** | **** | — | **** | — | (154,066 | ) | — | |||||||||
| Net loss attributable to LIZHI INC.’s ordinary shareholders | **** | (6,074 | ) | **** | (29,028 | ) | **** | (37,100 | ) | ) | **** | (230,403 | ) | **** | (136,165 | ) | ) |
All values are in US Dollars.
8
LIZHI INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except for share, ADS, per share data and per ADS data)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br><br><br>30,<br> <br>2020 | June<br><br><br>30,<br> <br>2021 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | September<br><br><br>30,<br> <br>2020 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | |||||||||||||
| RMB | RMB | RMB | US | RMB | RMB | US | |||||||||||||
| Net loss | **** | (6,074 | ) | **** | (29,028 | ) | **** | (37,100 | ) | ) | **** | (76,337 | ) | **** | (136,165 | ) | ) | ||
| Other comprehensive income/(loss): | |||||||||||||||||||
| Foreign currency translation adjustments | (6,181 | ) | (5,016 | ) | 1,184 | 271 | (2,696 | ) | ) | ||||||||||
| Total comprehensive loss | **** | (12,255 | ) | **** | (34,044 | ) | **** | (35,916 | ) | ) | **** | (76,066 | ) | **** | (138,861 | ) | ) | ||
| Accretions to preferred shares redemption value | — | — | — | (154,066 | ) | — | |||||||||||||
| Comprehensive loss attributable to LIZHI INC.’s ordinary shareholders | **** | (12,255 | ) | **** | (34,044 | ) | **** | (35,916 | ) | ) | **** | (230,132 | ) | **** | (138,861 | ) | ) | ||
| Net loss attributable to LIZHI INC.’s ordinary shareholders per share | |||||||||||||||||||
| —Basic | (0.01 | ) | (0.03 | ) | (0.04 | ) | ) | (0.27 | ) | (0.14 | ) | ) | |||||||
| —Diluted | (0.01 | ) | (0.03 | ) | (0.04 | ) | ) | (0.27 | ) | (0.14 | ) | ) | |||||||
| Weighted average number of ordinary shares | |||||||||||||||||||
| —Basic | 922,272,330 | 997,522,794 | 1,014,757,633 | 867,682,957 | 981,348,659 | ||||||||||||||
| —Diluted | 922,272,330 | 997,522,794 | 1,014,757,633 | 867,682,957 | 981,348,659 | ||||||||||||||
| Net loss attributable to LIZHI INC.’s ordinary shareholders per ADS | |||||||||||||||||||
| —Basic | (0.13 | ) | (0.58 | ) | (0.73 | ) | ) | (5.31 | ) | (2.78 | ) | ) | |||||||
| —Diluted | (0.13 | ) | (0.58 | ) | (0.73 | ) | ) | (5.31 | ) | (2.78 | ) | ) | |||||||
| Weighted average number of ADS | |||||||||||||||||||
| —Basic | 46,113,617 | 49,876,140 | 50,737,882 | 43,384,148 | 49,067,433 | ||||||||||||||
| —Diluted | 46,113,617 | 49,876,140 | 50,737,882 | 43,384,148 | 49,067,433 |
All values are in US Dollars.
| (1) | Share-based compensation was allocated in cost of revenues and operating expenses as follows:<br> | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| September<br><br><br>30,<br> <br>2020 | June<br><br><br>30,<br> <br>2021 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | September<br><br><br>30,<br> <br>2020 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | ||||||
| RMB | RMB | RMB | US | RMB | RMB | US | ||||||
| Cost of revenues | 1,264 | 3,112 | 3,183 | 11,217 | 8,965 | |||||||
| Selling and marketing expenses | 236 | 1,025 | 1,084 | 1,932 | 2,392 | |||||||
| General and administrative expenses | 2,401 | 3,421 | 2,968 | 11,822 | 9,617 | |||||||
| Research and development expenses | 2,740 | 2,278 | 2,708 | 14,512 | 7,050 |
All values are in US Dollars.
9
LIZHI INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br><br><br>30,<br> <br>2020 | June<br><br><br>30,<br> <br>2021 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | September<br><br><br>30,<br> <br>2020 | September<br><br><br>30,<br> <br>2021 | September<br>30, 2021 | |||||||||||||
| RMB | RMB | RMB | US | RMB | RMB | US | |||||||||||||
| Gross profit | 90,607 | 158,754 | 151,269 | 249,227 | 435,083 | ||||||||||||||
| Share-based compensation expenses | 1,264 | 3,112 | 3,183 | 11,217 | 8,965 | ||||||||||||||
| Non-GAAP gross profit | **** | 91,871 | **** | **** | 161,866 | **** | **** | 154,452 | **** | **** | **** | 260,444 | **** | **** | 444,048 | **** | **** | ||
| Operating loss | (9,555 | ) | (31,581 | ) | (40,074 | ) | ) | (82,285 | ) | (143,870 | ) | ) | |||||||
| Share-based compensation expenses | 6,641 | 9,836 | 9,943 | 39,483 | 28,024 | ||||||||||||||
| Non-GAAP operating loss | **** | (2,914 | ) | **** | (21,745 | ) | **** | (30,131 | ) | ) | **** | (42,802 | ) | **** | (115,846 | ) | ) | ||
| Net loss | (6,074 | ) | (29,028 | ) | (37,100 | ) | ) | (76,337 | ) | (136,165 | ) | ) | |||||||
| Share-based compensation expenses | 6,641 | 9,836 | 9,943 | 39,483 | 28,024 | ||||||||||||||
| Non-GAAP net income/(loss) | **** | 567 | **** | **** | (19,192 | ) | **** | (27,157 | ) | ) | **** | (36,854 | ) | **** | (108,141 | ) | ) | ||
| Net loss attributable to LIZHI INC.’s ordinary shareholders | (6,074 | ) | (29,028 | ) | (37,100 | ) | ) | (230,403 | ) | (136,165 | ) | ) | |||||||
| Share-based compensation expenses | 6,641 | 9,836 | 9,943 | 39,483 | 28,024 | ||||||||||||||
| Accretions to preferred shares redemption value | — | — | — | 154,066 | — | ||||||||||||||
| Non-GAAP net income/(loss) attributable to LIZHIINC.’s ordinary shareholders | **** | 567 | **** | **** | (19,192 | ) | **** | (27,157 | ) | ) | **** | (36,854 | ) | **** | (108,141 | ) | ) | ||
| Non-GAAP net income/(loss) attributable to LIZHIINC.’s ordinary shareholders per share | |||||||||||||||||||
| —Basic | 0.00 | (0.02 | ) | (0.03 | ) | ) | (0.04 | ) | (0.11 | ) | ) | ||||||||
| —Diluted | 0.00 | (0.02 | ) | (0.03 | ) | ) | (0.04 | ) | (0.11 | ) | ) | ||||||||
| Weighted average number of ordinary shares | |||||||||||||||||||
| —Basic | 922,272,330 | 997,522,794 | 1,014,757,633 | 867,682,957 | 981,348,659 | ||||||||||||||
| —Diluted | 936,247,945 | 997,522,794 | 1,014,757,633 | 867,682,957 | 981,348,659 | ||||||||||||||
| Non-GAAP net income/(loss) attributable to LIZHIINC.’s ordinary shareholders per ADS | |||||||||||||||||||
| —Basic | 0.01 | (0.38 | ) | (0.54 | ) | ) | (0.85 | ) | (2.20 | ) | ) | ||||||||
| —Diluted | 0.01 | (0.38 | ) | (0.54 | ) | ) | (0.85 | ) | (2.20 | ) | ) | ||||||||
| Weighted average number of ADS | |||||||||||||||||||
| —Basic | 46,113,617 | 49,876,140 | 50,737,882 | 43,384,148 | 49,067,433 | ||||||||||||||
| —Diluted | 46,812,397 | 49,876,140 | 50,737,882 | 43,384,148 | 49,067,433 |
All values are in US Dollars.
10