Sound Group Inc. Announces $4 Million Share Repurchase Program

Rhea-AI Summary

Sound Group (NASDAQ: SOGP) has announced a $4 million share repurchase program for its Class A ordinary shares, including those in the form of American depositary shares. The repurchases will be executed through various means including open market purchases, private transactions, and block trades, with timing and volume dependent on market conditions and other factors. The company plans to fund the buyback using existing cash reserves or future operating cash flow. CEO Jinnan Lai emphasized that this program demonstrates the company's commitment to stakeholder value and confidence in Sound Group's growth prospects. The initiative aims to support the company's flexible capital structure while maintaining focus on market expansion and innovation.

Positive

• Board approval of $4 million share repurchase program demonstrates confidence in company's future
• Program to be funded through existing cash balance or operating cash flow, indicating financial stability
• Flexible implementation approach through multiple purchase methods (open market, private transactions, block trades)
• Strategic initiative aimed at enhancing shareholder value while maintaining growth focus

Negative

• Relatively small buyback amount of $4 million may have limited impact on share price
• Execution timing and volume uncertainty based on market conditions and other factors

Insights

Financial Analyst

Sound Group's $4M buyback signals management confidence but represents modest capital return given the company's scale.

Sound Group's announcement of a $4 million share repurchase program represents a strategic capital allocation decision that warrants investor attention. While the absolute dollar amount appears modest, it signals management's confidence in the company's underlying value and future prospects.

The timing of this announcement is particularly interesting. By authorizing repurchases "starting from today," management demonstrates conviction that shares are currently undervalued relative to their intrinsic worth. The flexibility in execution method—open market purchases, privately negotiated transactions, and block trades—gives the company multiple pathways to implement the program efficiently based on market conditions.

CEO Lai's statement emphasizes "flexible capital structure" alongside growth, suggesting this program balances shareholder returns with maintaining financial flexibility for operational needs and potential strategic investments. The company's plan to fund repurchases from existing cash or operating cash flow indicates confidence in its liquidity position and ongoing cash generation capabilities.

The lack of specific timeframe for completing the repurchase program gives management discretion on execution timing, potentially allowing them to be opportunistic buyers during market volatility. This approach, while prudent, does mean the actual impact on share count reduction and EPS enhancement will depend entirely on implementation pace and average repurchase price achieved.

For context, investors should view this program's size relative to Sound Group's total market capitalization to properly assess its potential impact on share count reduction and earnings per share enhancement.

GUANGZHOU, China, June 09, 2025 (GLOBE NEWSWIRE) -- Sound Group Inc. (“Sound Group” or the “Company”) (NASDAQ: SOGP), a global audio-centric social and entertainment company, today announced that its board of directors (the “Board”) has approved a share repurchase program whereby the Company is authorized to repurchase its Class A ordinary shares (including Class A ordinary shares in the form of American depositary shares) with an aggregate value of up to $4 million, starting from today.

Mr. Jinnan (Marco) Lai, Founder, CEO, and Chairman of Sound Group, said, “We remain steadfast in our commitment to generating sustainable value for all our stakeholders. This $4 million share repurchase program underscores our confidence in Sound Group’s growth prospects while supporting our flexible capital structure and strategic growth. Moving forward, we will continue to deliver lasting value for our shareholders, users, and the broader community by expanding our market presence, fostering innovation, and enhancing our resilience.”

The proposed share repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The number of ADSs repurchased and the timing or conditions of repurchases may depend on a number of factors, including, but not limited to, share price, trading volume and general market conditions, along with Sound Group’s working capital requirements and general business conditions, and will comply with applicable rules and regulations. Sound Group plans to fund the repurchases out of its existing cash balance or future cash generated by operating activities.

About Sound Group Inc.

Sound Group Inc. is a global audio-centric social and entertainment company driven by a clear mission and vision: building the world’s largest audio platform to better connect and communicate. The Company is dedicated to shaping a future where audio not only bridges gaps but also amplifies human connection through the power of sound. Sound Group Inc. has been listed on Nasdaq since January 2020.

For more information, please visit: https://ir.soundgroupinc.com/

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: the Company’s goals and strategies; the Company’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; the Company’s ability to monetize the user base; fluctuations in general economic and business conditions in China and overseas markets; the economy in China and elsewhere generally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to the Company; 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:

Sound Group Inc.
IR Department
E-mail: ir@soundgroupinc.com

Piacente Financial Communications
Jenny Cai
E-mail: soundgroup@tpg-ir.com

FAQ

What is the size of Sound Group's (SOGP) share repurchase program announced on June 9, 2025?

Sound Group announced a $4 million share repurchase program for its Class A ordinary shares, including American depositary shares.

How will Sound Group (SOGP) fund its $4 million share buyback program?

The company plans to fund the repurchases using its existing cash balance or future cash generated from operating activities.

What methods will Sound Group (SOGP) use to execute its share repurchase program?

The company will execute repurchases through open market purchases, privately negotiated transactions, block trades, and other legally permissible means.

When does Sound Group's (SOGP) share repurchase program begin?

The share repurchase program begins June 9, 2025, following board approval.

What factors will determine SOGP's share repurchase timing and volume?

The timing and volume will depend on share price, trading volume, general market conditions, working capital requirements, and general business conditions.