Sound Group Inc. (NASDAQ: SOGP), a global company specializing in audio-centric social and entertainment platforms, has been granted an extension by Nasdaq to file its overdue annual report, the Form 20-F, for the year ended December 31, 2023. The extension sets a new deadline of November 11, 2024, for the company, previously known as LIZHI INC., to meet Nasdaq's filing requirements and avoid potential delisting.
On May 17, 2024, Sound Group was notified of non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of financial reports. In response, the company submitted materials on July 11, 2024, leading to Nasdaq's decision to grant the exception. The company must now file the Form 20-F by the newly appointed November deadline to regain compliance.
Should Sound Group fail to file by the extended deadline, it may face a notice from Nasdaq Staff regarding the possible delisting of its securities. However, the company would then have the opportunity to appeal the decision before a Nasdaq Hearings Panel.
CEO and Director Jinnan (Marco) Lai signed the report on behalf of Sound Group, emphasizing the company's commitment to upholding high standards of corporate governance and transparency.
This announcement, based on a press release statement.
In other recent news, Sound Group Inc., the global audio-centric social and entertainment company, has announced the appointment of Enrome LLP as its new independent registered public accounting firm for the fiscal year that ended on December 31, 2023. This decision has been approved by the company's audit committee of the Board of Directors and is effective immediately.
The transition to Enrome follows Sound Group's previous engagement with PricewaterhouseCoopers Zhong Tian LLP (PwC) as its auditor. PwC has pledged its commitment to assist both Sound Group and Enrome in ensuring a smooth transition.
These are among the recent developments within the company.
InvestingPro Insights
As Sound Group Inc. navigates through its compliance challenges with Nasdaq, the company's financial health and market performance provide a mixed picture for investors. According to InvestingPro data, Sound Group Inc. holds a market capitalization of 11.25 million USD, which reflects the size of the company in the current market. Despite recent struggles, the firm is trading at a low Price/Earnings (P/E) ratio of 2.41, and an even lower adjusted P/E ratio for the last twelve months as of Q3 2023 at 2.39, suggesting that the company's shares could be undervalued relative to its earnings.
The Price to Book (P/B) ratio, another key metric for valuation, stands at 0.19 for the same period, further indicating that the stock might be trading below its asset value. This is reinforced by InvestingPro Tips, which highlight that Sound Group Inc. is trading at a low Price/Book multiple. Additionally, the company's liquid assets exceed its short-term obligations, which is a positive sign of liquidity and financial stability.
However, investors should consider the volatility and recent performance of the stock. Sound Group Inc. has been trading near its 52-week low, with the price significantly down over the last year, three months, and five years. This could be a concern for potential investors looking for stability or growth. Another InvestingPro Tip to note is that the company's net income is expected to drop this year, which could be a contributing factor to the recent decline in stock price.
For investors seeking more comprehensive analysis, InvestingPro offers additional InvestingPro Tips to help navigate the complexities of the financial markets. There are currently 13 additional tips available for Sound Group Inc. at https://www.investing.com/pro/SOGP. To access these insights and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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