Sound Group Inc. SOGP shares jumped on Friday after the company announced a special cash dividend with strong first-half 2025 results, underscoring its return to profitability and focus on shareholder rewards.
The dividend, set at $0.005 per ordinary share or $1.00 per American Depositary Share (ADS), will be paid to investors of record as of September 15, with distribution scheduled for the end of the month.
The $4 million payout will be processed through Deutsche Bank Trust Company Americas for ADS holders. The announcement followed unaudited results showing revenue growth and a swing to profit.
For the first six months of 2025, Sound Group posted 1.36 billion Chinese yuan ($189.5 million) in revenue, up 47% from last year. Net income reached 67.6 million yuan ($9.4 million), reversing a 36.5 million yuan loss. The company credited stronger audio offerings and rising adoption of AI-driven products.
Gross profit rose 59% to 392.1 million yuan ($54.7 million), with margins improving to 29%. Operating income was 63.2 million yuan ($8.8 million), compared with operating loss of 44.3 million yuan for the same period in 2024.
Non-GAAP net income climbed to 70.4 million yuan ($9.8 million).
Founder and CEO Jinnan (Marco) Lai said the dividend shows confidence in the company’s financial strength and strategy of balancing growth with shareholder returns.
Acting CFO Chengfang Lu added that the dividend and a $4 million buyback highlight the scalability of the business while keeping resources for future investment.
On Thursday, shares of Sound Group surged after the announcement, with investors encouraged by the firm’s return to profitability and dual capital return strategies.
According to Benzinga Pro , Sound Group shares experienced extreme volatility on Thursday, first halted on a circuit breaker to the upside after jumping 196.58%, then resuming trade before being halted again on a downside circuit breaker as gains stretched to 224.74%.
Price Action: SOGP shares were trading higher by 2.00% to $12.75 at last check Friday.
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