0001104659-23-051892 | 20-F | XBRL Viewer

Principles of consolidation

Basis of presentation

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.

Principles of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company is the ultimate primary beneficiary.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity for accounting purpose.

All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation.

Use of estimates

Use of estimates

The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported years in the consolidated financial statements and accompanying notes. Such accounting estimates include, but are not limited to, assessment of average user relationship period for podcast business, assessment for the impairment of long-lived assets, fair value measurement of short-term investments, provision for income taxes and valuation allowance for deferred tax assets, fair value of ordinary shares and preferred shares before the IPO, and valuation and recognition of share-based compensation expenses.

Functional currency and foreign currency translation

Functional currency and foreign currency translation

The Group uses Renminbi (“RMB”) as its reporting currency. The Company and its overseas subsidiaries use United States dollars (“US$”) as their functional currency. The functional currency of the Group’s PRC entities is RMB.

In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, and expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive (loss)/income in the consolidated statements of operations and comprehensive (loss)/income.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in foreign exchange gains/(losses) in the consolidated statements of operations and comprehensive (loss)/income.

Convenience Translation

Convenience Translation

Translations of balances in the consolidated balance sheets, the consolidated statements of operations and comprehensive (loss)/income and the consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8972, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 30, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at such rate or at any other rate.

Fair value measurements

Fair value measurements

Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:

●	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

●

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

●	Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group’s financial instruments include cash and cash equivalents, short-term investments, restricted cash, accounts receivable, other receivables (included in “Prepayments and other current assets”), accounts payable and other payables (included in “Accrued expenses and other current liabilities”), and short-term loans.

See Note 18 for additional information relating to fair value measurements as of December 31, 2022.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents mainly represent cash and demand deposits placed with financial institutions, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2021 and 2022, the Group had cash held in accounts managed by online payment platforms such as Alipay and WeChat Pay in connection with the collection of service fees online for a total amount of RMB11.3 million and RMB8.6 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets.

As of December 31, 2021 and 2022, the Group had approximately RMB237.8 million and RMB415.6 million cash and cash equivalents held by its PRC subsidiaries and VIEs, representing 44.6% and 73.2% of total cash and cash equivalents of the Group, respectively. Cash transfers from the Company’s PRC subsidiaries and VIEs to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.

The Group had no lien arrangements during the years ended December 31, 2020, 2021 and 2022.

Restricted cash

Restricted cash

Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the consolidated balance sheets. As of December 31, 2022, bank balance of the Group amounted to RMB10.3 million was restricted, among which RMB7.8 million represents restricted deposits used as security against short-term loans and RMB2.5 million represents restricted deposits used as security against credit cards and an overseas operating lease.

Short-term investments

i)Short-term investments

In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in the fair value are reflected in the consolidated statements of operations and comprehensive (loss)/income. To estimate fair value, the Company refers to the quoted rate of return provided by financial institutions at the end of each period and classifies the valuation techniques that use these inputs as level 2 of fair value measurement. Since these investments’ maturity dates are within one year, they are classified as short-term investments. The Company recorded investment income from its short-term investments of RMB1.2 million, RMB0.5 million and RMB2.2 million in the consolidated statements of operations and comprehensive (loss)/income for the years ended December 31, 2020, 2021 and 2022.

Accounts receivable

Accounts receivable

The carrying value of accounts receivable is reduced by an allowance that reflects the Group’s best estimate of the amounts that will not be collected. Many factors are considered in estimating the general allowance, including but not limited to reviewing accounts receivable balances, historical bad debt rates, aging analysis, customer credit worthiness and industry trend analysis. The Group also makes specific allowance if there is evidence showing that the receivable is unlikely to be collected. Accounts receivable balances are written off against the allowance when they are determined to be uncollectible.

As of December 31, 2022, the Group was not yet required to adopt the expected credit loss model for estimating the allowance for doubtful accounts. See Note 2(dd) for additional information.

Property, equipment and leasehold improvement, net

Property, equipment and leasehold improvement, net

Property, equipment and leasehold improvement are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the following estimated useful lives:


Electronic equipment		3 years
Furniture and office equipment		5 years
Vehicles		4 years
Leasehold improvement		shorter of expected lives of leasehold improvement and lease term

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and leasehold improvement is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive (loss)/income.

Intangible assets, net

l)Intangible assets, net

Intangible assets mainly consist of copyright, software, trademark and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. No impairment charge was recognized for any of the years presented. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:


Copyright		1-3 years
Software		1-5 years
Trademark and others		3-5 years

Impairment of long-lived assets

Impairment of long-lived assets

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for any of the years presented.

Revenue recognition

Revenue recognition

The Group’s revenues comprise audio entertainment revenue, podcast, advertising and other revenue.

The following table summarizes the revenue by type of service provided by the Group:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Audio entertainment	1,481,120	2,101,475	2,174,314
Podcast, advertising and others	21,788	18,039	10,952
Total	1,502,908	2,119,514	2,185,266

The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services.

Audio entertainment revenue

The Group is principally engaged in operating its own audio entertainment live streaming platform, which enable hosts and users to interact with each other during audio entertainment live streaming services. Audio entertainment revenue is generated from sales of virtual items on the platform. The Group has a recharge system for users to purchase the Group’s virtual currency which is then used to purchase virtual items for use. Users can recharge via bank transfer and various online third-party payment platforms, including AliPay, WeChat Pay and other payment platforms. Virtual currency is non-refundable and without expiry. The virtual currency is often consumed soon after it is purchased based on history of turnover of the virtual currency. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below, unless otherwise stated.

The Group engages hosts to provide audio entertainment live streaming services. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with hosts and their respective guilds in accordance with their audio entertainment live streaming service agreements.

The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports audio entertainment revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to hosts and their respective guilds are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sale to users with pre-determined stand-alone selling price. Virtual items are categorized as either consumable or time-based items. Consumable items are consumed upon purchase while time-based items could be used for a fixed period of time such as a virtual special symbol that can be purchased and displayed on the users’ profile over a fixed period of time. Users can purchase either consumable or time-based items and present these virtual items to hosts to show support for their favorite hosts or purchase time-based virtual items that enhance the users’ personal profile.

Revenue related to each consumable item is a single performance obligation provided on a consumption basis and is recognized at the point in time when the virtual item is transferred directly to the users and consumed by them. Revenue related to time-based virtual items is recognized ratably over the contract period. During the years ended December 31, 2020, 2021 and 2022, the weighted average contract period for the time-based virtual items purchased were 124 days, 117 days and 121 days, respectively. The Group does not have further performance obligations to users after the virtual items are consumed immediately or after the stated contract period for time-based items.

2.Significant Accounting Policies (Continued)

Revenue recognition (Continued)

Podcast revenue

The Group provides users certain subscription services which entitle paying subscribers access to listen to specific podcast content on the platform. The subscription fee is time-based and is collected upfront from subscribers.

The receipt of subscription fee is initially recorded as deferred revenue. The Group satisfies its performance obligation by providing services throughout the estimated average user relationship period as the subscription period is generally perpetual. Revenue is recognized ratably over the estimated average user relationship period. The estimated average user relationship period is based on historical data collected from those paying users who have subscribed to podcast content. The Group estimates the average user relationship period for a podcast content to be the date a user subscribes to it through the date the Group estimates the paying user will listen to the content for the last time.

The determination of the estimated average user relationship period is based on the Group’s best estimate that considers all known and relevant information, including actual historical patterns of usage, at the time of assessment. Any adjustments arising from changes in the estimated average user relationship period as a result of new information is accounted as a change in accounting estimate.

The podcast contents are licensed by broadcasters to the Group. The Group records revenue on a gross basis considering that the Group: (i) is the primary obligor in the arrangement; and (ii) has latitude in establishing the selling price.

Contract liabilities

Contract liabilities primarily consist of deferred revenue which comprises unconsumed virtual currency, unamortized revenue from time-based virtual items and unamortized subscription fees for podcast services.

During the years ended December 31, 2020, 2021 and 2022, the Group recognized revenue amounted to RMB9.9 million, RMB11.0 million and RMB12.5 million, respectively, that was included in the corresponding opening deferred revenue balance of the year.

During the years ended December 31, 2020, 2021 and 2022, the Group did not have any arrangement where the performance obligations had already been satisfied in the past year but recognized the corresponding revenue in the current year.

Advertising revenue

The Group generates advertisement revenues from rendering various forms of advertisement services by way of advertisement display on its audio entertainment live streaming platform. Advertisements on the Group’s platform are generally charged on the basis of duration whereby revenue is recognized ratably over the contract period of display. The Group provides sales incentives in the forms of discounts and rebates to advertisement agencies based on purchase volume. Revenue is recognized based on the price charged to the advertisers or agencies, net of sales incentives provided to the agencies. Sales incentives are recorded at the time of revenue recognition based on the contracted rebate rates and contract amount.

Practical Expedients

The Group has used the following practical expedients as allowed under generally accepted accounting principles in the U.S.:

(i)

The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have an original expected duration of one year or less.

(ii)

Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. Accordingly, the Group has determined that its contracts generally do not include a significant financing component.

(iii)

Costs to obtain a contract with a customer are expensed as incurred when the amortization period is estimated to be one year or less.

Deferred revenue

Deferred revenue

Deferred revenue primarily consists of unconsumed virtual currency, unamortized revenue from time-based virtual items and unamortized subscription fees for podcast contents in the Group’s platform, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met.

Cost of revenue

Cost of revenue

Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of revenue sharing fees, salary and welfare benefits, payment handling costs, bandwidth costs and other costs. Revenue sharing fees represent the Company’s payments to hosts or guilds based on a percentage of revenue from sales of virtual items and certain performance-based incentives.

Research and development expenses

Research and development expenses

Research and development expenses mainly consist of salary and welfare benefits and bandwidth costs incurred for the development and enhancement to the Company’s websites and platform of applications.

Selling and marketing expenses

Selling and marketing expenses

Selling and marketing expenses consist primarily of advertising and promotional expenses, salary and welfare benefits to the Group’s sales and marketing personnel. Advertising and promotional expenses consist primarily of costs for the promotion of the Group’s corporate image and mobile app, and the organization of offline events between hosts and users. The Group expenses all advertising and promotional expenses as incurred and classifies them under selling and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, advertising and promotional expenses were RMB127.4 million, RMB360.2 million and RMB228.2 million, respectively.

Leases

Leases

The Group determines if an arrangement is a lease and determines the classification of the lease, as either operating or finance, at commencement. The Group adopted the accounting for leases beginning January 1, 2020 by applying the modified retrospective method to those contracts that were not completed as of January 1, 2020. There was no impact to retained earnings at adoption.

The Group elected to utilize the package of practical expedients at the time of adoption, which allowed the Group to: (1) not reassess whether any expired or existing contracts are or contain leases, (2) not reassess the lease classification of any expired or existing leases, and (3) not reassess initial direct costs for any existing leases. The Company also elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease right-of-use (“ROU”) assets or operating lease liabilities.

The Group has operating leases for office buildings and has no finance leases as of December 31, 2021 and 2022. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at commencement date.

As the Group’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at the commencement date, to determine the present value of lease payments. The incremental borrowing rate approximates the rate the Group would pay to borrow in the currency of the lease payments for the weighted-average life of the lease.

The operating lease ROU assets also include any lease payments made prior to lease commencement and exclude lease incentives and initial direct costs incurred if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The Group’s lease agreements contain both lease and non-lease components, which are accounted for separately based on their relative standalone price.

Government grants

Government grants

Government grants represent cash subsidies received from the PRC government by the Group. Government grants are in connection with the Group’s contributions to research and development activities, and additional deduction of Value Added Tax (“VAT”) input in local business districts.

Share-based compensation

Share-based compensation

Share-based compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares, restricted shares and restricted share units.

Share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values. The fair value of share option is affected by the fair value of ordinary shares as well as assumptions regarding complex and subjective variables, including: (i) the expected volatility of the fair value of ordinary shares, (ii) actual and projected employee share option exercise behavior, (iii) risk-free interest rates and (iv) expected dividends. The fair value of restricted share, restricted share units and share options with little to no exercise price, are generally measured as the grant date price of the Company’s ordinary shares.

The Company has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. The contractual term is the contract life of the options. The Group estimated the risk-free interest rate based on the market yield of US Government Bonds with maturities of ten years as of the valuation date, plus a country default risk spread between China and US. All share-based awards granted as of the years presented herein were granted with little to no exercise price and, accordingly, fair value was measured as the grant date price of the Company’s ordinary shares.

Share-based compensation expenses are recorded net of actual forfeitures. For a cliff-vesting award or an award with graded-vesting features and service conditions only, the Company uses the straight-line method to recognize compensation cost over the total requisite service period for the entire award. For an award with performance and/or service condition that affects vesting, the performance and/or service condition is not considered in determining the award’s fair value on the grant date. The Company recognizes compensation expenses for awards with performance conditions if, and when, the Company concludes that it is probable that the performance condition will be achieved, net of actual pre-vesting forfeitures over the requisite service period, using a graded-vesting method. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation expense based on its probability assessment, unless the Company is not able to determine that it is probable that a performance condition will be satisfied until the event occurs.

Employee benefits

Employee benefits

PRC Contribution Plan

Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries, VIEs and subsidiaries of the VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses were approximately RMB38.5 million, RMB57.2 million and RMB53.9 million for the years ended December 31, 2020, 2021 and 2022, respectively.

Taxation

Taxation

Income taxes

Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of operations in the period the change in tax rates or tax laws is enacted. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized.

Uncertain tax positions

In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statement of operations and comprehensive (loss)/income. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2020, 2021 and 2022.

Related parties

Related parties

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

Net (loss)/income per share

Net (loss)/income per share

Basic net (loss)/income per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net (loss)/income per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under treasury stock method. Potential ordinary shares include options to purchase ordinary shares, restricted shares and restricted share units, unless they were anti-dilutive. The computation of diluted net (loss)/income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e., an increase in earnings per share amounts or a decrease in loss per share amounts) on net (loss)/income per share.

The Group used the two-class method of computing basic earnings per share before the IPO in January 2020. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s preferred shares were participating securities because they were entitled to receive dividends or distributions on an as converted basis. Upon the completion of the Company’s IPO in January 2020, the preferred shares were automatically converted into ordinary shares. The two-class method of computing net (loss)/income per share ceased to apply on the conversion date.

Statutory reserves

Statutory reserves

In accordance with China’s Company Laws, the Company’s VIEs and subsidiaries of the VIEs in PRC must make appropriations from their after-tax profit, if any (as determined under the accounting principles generally acceptable in the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company.

Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries that are foreign investment enterprises in China have to make appropriations from their after-tax profit, if any (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the subsidiary. Appropriations to the other two reserve funds are at the subsidiary’s discretion.

For the years ended December 31, 2020, 2021 and 2022, appropriations to general reserve fund and statutory surplus fund amounted to nil, nil and RMB0.5 million, respectively.

Comprehensive (loss)/income

aa)

Comprehensive (loss)/income

Comprehensive (loss)/income is defined to include all changes in (deficit)/equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Other comprehensive (loss)/income, as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments.

Segment reporting

bb)

Segment reporting

The Group uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Group’s reportable segments. Management has determined that the Group operates in one segment.

Concentration and credit risk

cc)

Concentration and credit risk

Advertising and promotional service providers

The Group relied on advertising and promotional service providers and their affiliates to promote its platform and enhance brand awareness through a variety of online and offline marketing and brand promotion activities. The number of advertising and promotional service providers during the years ended December 31, 2020, 2021 and 2022 are as follows:


	For the year ended December 31,
	2020		2021		2022
Total number of advertising and promotional service providers	203		198		182
Number of service providers that each accounted for 10% or more of the Group’s advertising and promotional expenses	3		2		2
Total percentage of the Group’s advertising and promotional expenses that were paid to these service providers who each accounted for 10% or more of the Group’s advertising and promotional service expenses	38.1	%	44.9	%	35.7	%

Credit risk

Financial instruments that potentially subject the Group to the concentration of credit risk consist of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and other receivables (recorded in “Prepayments and other current assets”). As of December 31, 2021 and 2022, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held in financial institutions which management consider being of high credit quality. As of December 31, 2021 and 2022, approximately 49% and 64%, respectively, of the Group’s cash and cash equivalents, short-term investments, and restricted cash were held in 11 and 12 financial institutions, respectively, located in the Chinese mainland. The remaining cash and cash equivalents, short-term investments and restricted cash were held primarily in financial institutions in Hong Kong and Singapore. Under Chinese mainland law, it is generally required that a commercial bank in the Chinese mainland that holds third party cash deposits protect the depositors’ rights over and interests in their deposited money. Banks in the Chinese mainland are subject to a series of risk control regulatory standards, and bank regulatory authorities in the Chinese mainland are empowered to take over the operation and management of any Chinese mainland bank that faces a material credit crisis. As of December 31, 2021 and 2022, the Group held its cash and cash equivalents, short-term investments and restricted cash in different financial institutions and held no more than approximately 18% and 26%, respectively, of its total cash at any single institution. Accounts receivable is typically unsecured and is generally derived from revenue earned from advertising business.

Major customers for advertising business

There were one and two customers that had receivable balances derived from advertising business exceeding l0% of the total accounts receivable balances of the Group as of December 31, 2021 and 2022, respectively, as follows:


	December 31,		December 31,
	2021		2022
Customer A	87.3	%	71.6	%
Customer B	—		27.8	%

Recently issued accounting pronouncements

dd)

Recently issued accounting pronouncements

The Group qualifies as an “emerging growth company”, or “EGC”, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards.

In June 2016, the FASB amended guidance related to the impairment of financial instruments as part of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which was further amended by ASU 2019-10 in November 2019, for public business entities that meet the definition of an U.S. Securities and Exchange Commission (“SEC”) filer, excluding entities eligible to be SRCs as defined by the SEC, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company is required to recognize an allowance based on its estimate of expected credit loss. The Company adopted ASU 2016-13 beginning January 1, 2023 by applying the modified retrospective method with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company has finalized its analysis and the impact to the opening balance of retained earnings at January 1, 2023 was immaterial.

Taxation (Tables)

12 Months Ended

Dec. 31, 2022

Taxation

Schedule of Income tax reconciliation


	For the year ended December 31,
	2020	2021	2022
	%	%	%
Statutory income tax rate of the PRC	25.0	25.0	25.0
Tax rate difference from preferential tax treatments and statutory rate in other jurisdictions	(16.3)	(16.5)	(0.1)
Effect of withholding taxes	—	(0.3)	—
Permanent differences⁽¹⁾	16.9	26.6	(33.4)
Change in valuation allowances	(26.8)	(35.2)	8.7
Effective income tax rate	(1.2)	(0.4)	0.2

(1)	The permanent differences mainly consist of additional super deduction for research and development expenditures, and certain non-deductible expenses.

Schedule of net operating tax loss carry forwards


		RMB

Loss expiring in 2023		3,238
Loss expiring in 2024		14,186
Loss expiring in 2025		18,996
Loss expiring in 2026		43,579
Loss expiring in 2027		28,366
Loss expiring in 2028		47,863
Loss expiring in 2029		156,879
Loss expiring in 2030		156,066
Loss expiring in 2031		207,664
Loss expiring in 2032		14,027
		690,864

Schedule of deferred tax assets


	December 31, 2021	December 31, 2022
	RMB	RMB
Deferred tax assets:
Net operating tax loss carry forwards	112,248	108,601
Advertising expenses in excess of deduction limit	63	—
Deferred revenue	527	—
Total deferred tax assets	112,838	108,601
Less: valuation allowances	(112,838)	(108,601)
Net deferred tax assets	—	—

Schedule of movement of the aggregate valuation allowances for deferred tax assets


	Balance at January 1	Movement*	Balance at December 31
	RMB	RMB	RMB
2020	(80,320)	5,713	(74,607)
2021	(74,607)	(38,231)	(112,838)
2022	(112,838)	4,237	(108,601)

*	The movement in valuation allowances were due to the changes of deferred tax assets recognized for net operating tax loss carry forwards, advertising expenses in excess of deduction limit and deferred revenue.

Organization and Principal Activities - Summary of Major Subsidiaries Consolidated Vies and Vies Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2022
Lizhi Inc
Organization and Reorganization
Place and year of incorporation	British Virgin Islands, Y2010
Principal activities	Investment holding
Lizhi Inc \| Lizhi Inc
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Lizhi Holding Limited
Organization and Reorganization
Place and year of incorporation	Hong Kong, China Y2010
Principal activities	Investment holding
Lizhi Holding Limited \| Lizhi Holding Limited
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Beijing Hongyiyichuang Information Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Beijing, China Y2011
Principal activities	Technical support and consulting services, advertising service
Beijing Hongyiyichuang Information Technology Co., Ltd \| Beijing Hongyiyichuang Information Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
TIYA INC. Tiya Cayman
Organization and Reorganization
Place and year of incorporation	Cayman Islands, Y2019
Principal activities	Investment holding
TIYA INC. Tiya Cayman \| TIYA INC. Tiya Cayman
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
VOCAL BEATS Inc. ("Vocal Beats")
Organization and Reorganization
Place and year of incorporation	British Virgin Islands, Y2019
Principal activities	Investment holding
VOCAL BEATS Inc. ("Vocal Beats") \| VOCAL BEATS Inc. ("Vocal Beats")
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
TIYA INC Tiya BVI
Organization and Reorganization
Place and year of incorporation	British Virgin Islands, Y2019
Principal activities	Investment holding
TIYA INC Tiya BVI \| TIYA INC Tiya BVI
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Tiya Holding Limited
Organization and Reorganization
Place and year of incorporation	Hong Kong, China Y2019
Principal activities	Investment holding
Tiya Holding Limited \| Tiya Holding Limited
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
TIYA PTE. LTD.
Organization and Reorganization
Place and year of incorporation	Singapore Y2019
Principal activities	Audio entertainment business and others
TIYA PTE. LTD. \| TIYA PTE. LTD.
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
NASHOR PTE. LTD.
Organization and Reorganization
Place and year of incorporation	Singapore Y2019
Principal activities	Audio entertainment business and others
NASHOR PTE. LTD. \| NASHOR PTE. LTD.
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou Tiya Information Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2019
Principal activities	Technical support and consulting services
Guangzhou Tiya Information Technology Co., Ltd \| Guangzhou Tiya Information Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Tiya Inc.
Organization and Reorganization
Place and year of incorporation	USA Y2020
Principal activities	Audio entertainment business and others
Tiya Inc. \| Tiya Inc.
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou QingYin Information Technology Co., Ltd. ("Guangzhou QingYin")
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2022
Principal activities	Technical support and consulting services
Guangzhou QingYin Information Technology Co., Ltd. ("Guangzhou QingYin") \| Guangzhou QingYin Information Technology Co., Ltd. ("Guangzhou QingYin")
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou Yuyin Information Technology Co., Ltd.
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2022
Principal activities	Technical support and consulting services
Guangzhou Yuyin Information Technology Co., Ltd. \| Guangzhou Yuyin Information Technology Co., Ltd.
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou Yuechuang Information Technology Co., Ltd.
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2022
Principal activities	Technical support and consulting services
Guangzhou Yuechuang Information Technology Co., Ltd. \| Guangzhou Yuechuang Information Technology Co., Ltd.
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou Lizhi Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2007
Principal activities	Audio entertainment and podcast business
Guangzhou Lizhi Network Technology Co., Ltd \| Guangzhou Lizhi Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Guangzhou Huanliao Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Guangzhou, China Y2016
Principal activities	Audio entertainment business and others
Guangzhou Huanliao Network Technology Co., Ltd \| Guangzhou Huanliao Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Changsha Limang Interaction Entertainment Co., Ltd
Organization and Reorganization
Place and year of incorporation	Changsha, China Y2015
Principal activities	Audio entertainment business and others
Changsha Limang Interaction Entertainment Co., Ltd \| Changsha Limang Interaction Entertainment Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Huaian Lizhi Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Huai’an, China Y2015
Principal activities	Audio entertainment business and others
Huaian Lizhi Network Technology Co., Ltd \| Huaian Lizhi Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Wuhan Lizhi Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Wuhan, China Y2017
Principal activities	Audio entertainment business and others
Wuhan Lizhi Network Technology Co., Ltd \| Wuhan Lizhi Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Wuhan Yuyinliaorao Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Wuhan, China Y2019
Principal activities	Audio entertainment business and others
Wuhan Yuyinliaorao Network Technology Co., Ltd \| Wuhan Yuyinliaorao Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%
Wuhan Zhiyin Network Technology Co., Ltd
Organization and Reorganization
Place and year of incorporation	Wuhan, China Y2019
Principal activities	Audio entertainment business and others
Wuhan Zhiyin Network Technology Co., Ltd \| Wuhan Zhiyin Network Technology Co., Ltd
Organization and Reorganization
Percentage of direct or indirect economic ownership	100.00%

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Measurement

Summary of financial instruments measured or disclosed at fair value on a recurring basis


	Fair Value Measurement at
	December 31, 2022 Using
	Quoted Prices	Significant
	in Active Market	Other	Unobservable	Fair Value at
	for Identical	Observable	inputs	December 31,
	Assets (Level 1)	Inputs (Level 2)	(Level 3)	2022
	RMB	RMB	RMB	RMB	US$
Short-term investments	—	111,353	—	111,353	16,145
Total	—	111,353	—	111,353	16,145

Organization and Principal Activities

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Share-based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 CNY (¥) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) shares	Sep. 17, 2021 shares	Mar. 18, 2020 shares	Mar. 17, 2020 shares
Share-based Compensation
Ordinary shares, shares authorized	1,500,000,000	1,500,000,000			1,500,000,000
Cash settled equity instrument granted under share-based payment arrangements \| ¥	¥ 0		¥ 0	¥ 0
Compensation cost for share-based payment arrangements \| ¥	¥ 0		¥ 0	¥ 0
Weighted average grant date fair value of options granted \| (per share)	¥ 0.28	$ 0.04	¥ 1.44	¥ 1.96
Vesting of restricted share units (in shares)	5,637,860		1,812,960	190,160
common Class A
Share-based Compensation
Ordinary shares, shares authorized	1,268,785,000	1,268,785,000	1,268,785,000		1,268,785,000
Restricted shares
Share-based Compensation
Restricted shares units, granted				2,607,000
Vesting of restricted share units (in shares)	3,625,000		6,232,000	9,857,000
Restricted share units
Share-based Compensation
Restricted shares units, granted	2,192,900		13,080,200	9,611,020
Vesting of restricted share units (in shares)	3,649,000		3,018,000
2019 Incentive Plan and the Amended and Restated 2019 Share Incentive Plan
Share-based Compensation
Unrecognized compensation expenses, unvested awards	¥ 62,500	$ 62,500	¥ 75,300		$ 9.1
Unrecognized compensation expenses, weighted average period for recognition	2 years 11 months 4 days		2 years 6 months 29 days
2019 Incentive Plan \| common Class A
Share-based Compensation
Ordinary shares, shares authorized						100,000,000	100,000,000	40,000,000
2019 Incentive Plan \| common Class A \| Restated
Share-based Compensation
Ordinary shares, shares authorized						170,000,000
2019 Incentive Plan \| common Class A \| Minimum
Share-based Compensation
Award vesting period	0 years
2019 Incentive Plan \| common Class A \| Maximum
Share-based Compensation
Award vesting period	4 years
2018 Incentive Plan
Share-based Compensation
Award vesting period	4 years

Cover Page - shares	12 Months Ended
Cover Page - shares	Dec. 31, 2022	Feb. 28, 2023
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Registrant Name	LIZHI INC.
Entity Central Index Key	0001783407
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Document Accounting Standard	U.S. GAAP
Entity File Number	001-39177
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	Yangcheng Creative Industry Zone
Entity Address, Address Line Two	No. 309 Middle Huangpu Avenue
Entity Address, City or Town	Guangzhou
Entity Address, Postal Zip Code	510655
Entity Address, Country	CN
ICFR Auditor Attestation Flag	false
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Firm ID	1424
Auditor Location	Beijing, the People’s Republic of China
Business Contact [Member]
Document Information [Line Items]
Contact Personnel Name	Chengfang Lu
Entity Address, Address Line One	Yangcheng Creative Industry Zone
Entity Address, Address Line Two	No. 309 Middle Huangpu Avenue
Entity Address, City or Town	Guangzhou
Entity Address, Postal Zip Code	510655
Entity Address, Country	CN
Country Region	86
City Area Code	20
Local Phone Number	8398-1267
Contact Personnel Email Address	luchengfang@lizhi.fm
American Depositary Shares [Member]
Document Information [Line Items]
Title of 12(b) Security	American depositary shares, each ADS represents 20 Class A ordinary shares, par value US$0.0001 per share
Trading Symbol	LIZI
Security Exchange Name	NASDAQ
Class A ordinary shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		805,283,870
Title of 12(b) Security	Class A ordinary shares, par value US$0.0001 per share *
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ
Class B ordinary shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		231,215,000

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Net revenues	¥ 2,185,266	$ 316,834	¥ 2,119,514	¥ 1,502,908
Cost of revenues	(1,468,921)	(212,974)	(1,502,505)	(1,134,678)
Gross profit	716,345	103,860	617,009	368,230
Operating expenses:
Selling and marketing expenses	(259,618)	(37,641)	(386,204)	(142,734)
General and administrative expenses	(106,727)	(15,474)	(104,617)	(88,856)
Research and development expenses	(283,349)	(41,082)	(264,706)	(225,329)
Total operating expenses	(649,694)	(94,197)	(755,527)	(456,919)
Operating (loss)/income	66,651	9,663	(138,518)	(88,689)
Other income:
Interest (expenses)/income, net	2,611	379	(1,103)	(1,796)
Foreign exchange losses	(1,052)	(153)	(738)	(836)
Investment income	2,197	319	468	1,241
Government grants	14,360	2,082	13,496	12,870
Others, net	1,944	282	(479)	(3,975)
(Loss)/income before income taxes	86,711	12,572	(126,874)	(81,185)
Income tax expense	(207)	(30)	(376)	(999)
Net (loss)/income	86,504	12,542	(127,250)	(82,184)
Accretions to preferred shares redemption value \| ¥				(154,066)
Net loss attributable to the non-controlling interests shareholders	13	2
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	86,517	12,544	(127,250)	(236,250)
Net (loss)/income	86,504	12,542	(127,250)	(82,184)
Other comprehensive (loss)/income:
Foreign currency translation adjustments	24,314	3,525	(7,848)	(6,338)
Total other comprehensive (loss)/income	24,314	3,525	(7,848)	(6,338)
Total comprehensive (loss)/income	110,818	16,067	(135,098)	(88,522)
Accretions to preferred shares redemption value \| ¥				(154,066)
Net loss attributable to the non-controlling interests shareholders	13	2
Comprehensive (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	¥ 110,831	$ 16,069	¥ (135,098)	¥ (242,588)
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders per share
Basic \| (per share)	¥ 0.08	$ 0.01	¥ (0.13)	¥ (0.27)
Diluted \| (per share)	¥ 0.08	$ 0.01	¥ (0.13)	¥ (0.27)
Weighted average number of ordinary shares
Basic	1,036,485,949	1,036,485,949	991,715,849	883,202,412
Diluted	1,038,617,910	1,038,617,910	991,715,849	883,202,412
American Depository Shares
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders per share
Basic \| (per share)	¥ 1.67	$ 0.24	¥ (2.57)	¥ (5.35)
Diluted \| (per share)	¥ 1.67	$ 0.24	¥ (2.57)	¥ (5.35)
Weighted average number of ordinary shares
Basic	51,824,297	51,824,297	49,585,792	44,160,121
Diluted	51,930,895	51,930,895	49,585,792	44,160,121

Share-based Compensation - Share-based compensation expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Share-based Compensation
Total	¥ 29,233	$ 4,238	¥ 37,359	¥ 50,741
Cost of revenues
Share-based Compensation
Total	7,052	1,022	11,484	14,789
Selling and marketing expenses
Share-based Compensation
Total	2,259	328	3,431	2,370
General and administrative expenses
Share-based Compensation
Total	9,659	1,400	12,496	16,128
Research and development expenses
Share-based Compensation
Total	¥ 10,263	$ 1,488	¥ 9,948	¥ 17,454

Accounts Receivable Net - Summary of Accounts Receivable Net (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts Receivable, Net
Accounts receivable, gross:	¥ 3,233		¥ 6,458
Accounts receivable, net	¥ 3,233	$ 469	¥ 6,458

Taxation - Summary of Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Taxation
Beginning Balance	¥ (112,838)	¥ (74,607)	¥ (80,320)
Movement	4,237	(38,231)	5,713
Ending Balance	¥ (108,601)	¥ (112,838)	¥ (74,607)

Organization and Principal Activities (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Major Subsidiaries Consolidated Vies and Vies Subsidiaries

As of December 31, 2022, the Company’s consolidated subsidiaries, the VIEs and subsidiaries of the VIEs are as follows:


	Place and	Percentage of
	year of	direct or indirect
Major Subsidiaries	incorporation	economic ownership	Principal activities
Lizhi Inc. (“Lizhi BVI”)	British Virgin Islands, Y2010	100	Investment holding
Lizhi Holding Limited (“Lizhi HK”)	Hong Kong, China Y2010	100	Investment holding
Beijing Hongyiyichuang Information Technology Co., Ltd. (“Hongyi Technology”)	Beijing, China Y2011	100	Technical support and consulting services, advertising service
Tiya Inc. (“Tiya Cayman”)	Cayman Islands, Y2019	100	Investment holding
VOCAL BEATS Inc. (“Vocal Beats”)	British Virgin Islands, Y2019	100	Investment holding
TIYA INC. (“Tiya BVI”)	British Virgin Islands, Y2019	100	Investment holding
Tiya Holding Limited (“Tiya HK”)	Hong Kong, China Y2019	100	Investment holding
TIYA PTE. LTD.	Singapore Y2019	100	Audio entertainment business and others
NASHOR PTE. LTD.	Singapore Y2019	100	Audio entertainment business and others
Guangzhou Tiya Information Technology Co., Ltd. (“Guangzhou Tiya”)	Guangzhou, China Y2019	100	Technical support and consulting services
Tiya Inc. (“Tiya USA”)	USA Y2020	100	Audio entertainment business and others
Guangzhou QingYin Information Technology Co., Ltd. (“Guangzhou QingYin”)	Guangzhou, China Y2022	100	Technical support and consulting services
Guangzhou Yuyin Information Technology Co., Ltd.	Guangzhou, China Y2022	100	Technical support and consulting services
Guangzhou Yuechuang Information Technology Co., Ltd.	Guangzhou, China Y2022	100	Technical support and consulting services

1.	Organization and Principal Activities (Continued)


	Place and
	year of	Percentage of
	incorporation/	direct or indirect
Major VIEs	acquisition	economic ownership	Principal activities
Guangzhou Lizhi Network Technology Co., Ltd. (“Guangzhou Lizhi”)	Guangzhou, China Y2007	100	Audio entertainment and podcast business
Guangzhou Huanliao Network Technology Co., Ltd. (“Guangzhou Huanliao”)	Guangzhou, China Y2016	100	Audio entertainment business and others


	Place and	Percentage of
	year of	direct or indirect
Major subsidiaries of VIEs	incorporation	economic ownership	Principal activities
Changsha Limang Interaction Entertainment Co., Ltd.	Changsha, China Y2015	100	Audio entertainment business and others
Huai’an Lizhi Network Technology Co., Ltd.	Huai’an, China Y2015	100	Audio entertainment business and others
Wuhan Lizhi Network Technology Co., Ltd.	Wuhan, China Y2017	100	Audio entertainment business and others
Wuhan Yuyinliaorao Network Technology Co., Ltd.	Wuhan, China Y2019	100	Audio entertainment business and others
Wuhan Zhiyin Network Technology Co., Ltd.	Wuhan, China Y2019	100	Audio entertainment business and others

Schedule of Variable Interest Entities

The following combined financial information of the VIEs as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 was included in the accompanying consolidated financial statements of the Group as follows:


	As of December 31,	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	191,549	302,103
Restricted cash	3,023	—
Accounts receivable, net	1	902
Prepayments and other current assets	20,245	21,365
Amount due from the subsidiaries of the Group	197	781
Total current assets	215,015	325,151
Non-current assets:
Property, equipment and leasehold improvement, net	28,580	18,390
Intangible assets, net	2,245	1,104
Right-of-use assets, net	9,653	7,087
Other non-current assets	799	—
Total non-current assets	41,277	26,581
TOTAL ASSETS	256,292	351,732
Current liabilities:
Accounts payable	70,639	50,735
Deferred revenue	19,118	27,718
Salary and welfare payable	116,204	120,563
Taxes payable	4,940	4,112
Short-term loans	68,999	66,800
Lease liabilities due within one year	5,767	7,021
Accrued expenses and other current liabilities	42,803	42,770
Amount due to the subsidiaries of the Group	377,331	379,306
Total current liabilities	705,801	699,025
Non-current liabilities:
Lease liabilities	4,132	160
Total non-current liabilities	4,132	160
TOTAL LIABILITIES	709,933	699,185


	For the year ended
	December 31,	December 31,	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net revenues	1,456,190	1,975,758	2,155,620
Net (loss)/income	(84,441)	(81,551)	106,188


	For the year ended
	December 31,	December 31,	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net cash generated from/(used in) operating activities	17,425	(17,723)	147,067
Net cash (used in)/generated from investing activities	(94,559)	52,323	(5,576)
Net cash generated from/(used in) financing activities	187,752	7,298	(33,960)
Net increase in cash, cash equivalents and restricted cash	110,618	41,898	107,531

Summary of cost of revenues

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Significant Accounting Policies - Additional information (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) segment agreement ¥ / shares	Dec. 31, 2022 USD ($) segment agreement	Dec. 31, 2021 CNY (¥) agreement	Dec. 31, 2020 CNY (¥) agreement	Dec. 31, 2022 USD ($)
Significant Accounting Policies
Cash and cash equivalents	¥ 568,192		¥ 533,293		$ 82,400
Total percentage of cash and cash equivalents	73.20%		44.60%		73.20%
Number of lien arrangements \| agreement	0	0	0	0
Restricted cash	¥ 10,323		¥ 4,155		$ 1,497
Investment income from its short term investments	2,200		500	¥ 1,200
Impairment charges	¥ 0		¥ 0	¥ 0
Weighted average contract period	121 days	121 days	117 days	124 days
Recognized revenue	¥ 12,500		¥ 11,000	¥ 9,900
Revenue remaining performance obligation	0		0	0
Advertising and promotional expenses	228,200		360,200	127,400
Lease liabilities	26,567		31,005
Lease liabilities due within one year	18,372		13,929		2,664
Lease liabilities	8,195		17,076		$ 1,188
Finance lease	0		0
Unrecognized uncertain tax positions	¥ 0		0	0
Exchange rate	6.8972				6.8972
Income tax examination likelihood of settlement	The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.	The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.
Annual Appropriation To Reserve Percent	10.00%				10.00%
Threshold limit for reserve appropriation	50.00%				50.00%
Number of Operating Segments \| segment	1	1
Number of Reportable Segments \| segment	1	1
Exercise price of fair value grant date price \| ¥ / shares	¥ 0
Share-based compensation expense	¥ 29,233	$ 4,238	¥ 37,359	50,741
11 financial institutions
Significant Accounting Policies
Percentage of cash and cash equivalents held financial institution			49.00%
12 financial institutions
Significant Accounting Policies
Percentage of short term investments held financial institution	64.00%	64.00%
Single financial institution
Significant Accounting Policies
Percentage of cash and cash equivalents held financial institution			18.00%
Percentage of short term investments held financial institution	26.00%	26.00%
PRC Contribution Plan
Significant Accounting Policies
Employee benefit expenses	¥ 53,900		¥ 57,200	38,500
Statutory reserves
Significant Accounting Policies
Appropriation to statutory reserves	529		0	¥ 0
Alipay and WeChat Pay
Significant Accounting Policies
Cash and cash equivalents	8,600		11,300
Subsidiaries
Significant Accounting Policies
Cash and cash equivalents	415,600		¥ 237,800
Bank balance
Significant Accounting Policies
Restricted cash	10,300
Credit cards and overseas operating lease
Significant Accounting Policies
Restricted cash	2,500
Local authorities
Significant Accounting Policies
Restricted cash	¥ 7,800

Cost of Revenues (Tables)

12 Months Ended

Dec. 31, 2022

Cost Of Revenues


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenue sharing fees	1,031,903	1,357,270	1,351,096
Salary and welfare benefits	41,159	52,268	40,653
Payment handling costs	22,692	32,506	22,899
Bandwidth costs	11,226	30,889	32,795
Share-based compensation expense	14,789	11,484	7,052
Others	12,909	18,088	14,426
Total	1,134,678	1,502,505	1,468,921

Taxation - Summary of Operating Loss Carry Forward (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Taxation
Operating loss carryforwards	¥ 108,601	¥ 112,248
Loss expiring in 2023
Taxation
Operating loss carryforwards	3,238
Loss expiring in 2024
Taxation
Operating loss carryforwards	14,186
Loss expiring in 2025
Taxation
Operating loss carryforwards	18,996
Loss expiring in 2026
Taxation
Operating loss carryforwards	43,579
Loss expiring in 2027
Taxation
Operating loss carryforwards	28,366
Loss expiring in 2028
Taxation
Operating loss carryforwards	47,863
Loss expiring in 2029
Taxation
Operating loss carryforwards	156,879
Loss expiring in 2030
Taxation
Operating loss carryforwards	156,066
Loss expiring in 2031
Taxation
Operating loss carryforwards	207,664
Loss expiring in 2032
Taxation
Operating loss carryforwards	14,027
Operating loss carry forwards
Taxation
Operating loss carryforwards	¥ 690,864

Share-based Compensation - Summary of restricted shares activities (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation
Restricted shares, Vested	(5,637,860)	(1,812,960)	(190,160)
Restricted shares
Share-based Compensation
Restricted shares, Beginning balance	3,625,000	9,857,000	24,928,000
Restricted shares, Awarded			2,607,000
Restricted shares, Forfeited			(7,821,000)
Restricted shares, Vested	(3,625,000)	(6,232,000)	(9,857,000)
Restricted shares, Ending balance	0	3,625,000	9,857,000
Restricted weighted-average grant date fair value, Beginning balance	$ 0.21	$ 0.23	$ 0.23
Restricted weighted-average grant date fair value, Awarded			0.27
Restricted weighted-average grant date fair value, Forfeited			0.26
Restricted weighted-average grant date fair value, Vested	$ 0.21	0.24	0.22
Restricted weighted-average grant date fair value, Ending balance		$ 0.21	$ 0.23
Restricted share units
Share-based Compensation
Restricted shares, Beginning balance	12,264,000	4,510,000
Restricted shares, Awarded	2,192,900	13,080,200	9,611,020
Restricted shares, Forfeited	(2,612,000)	(2,308,000)	(5,101,000)
Restricted shares, Vested	(3,649,000)	(3,018,000)
Restricted shares, Ending balance	8,196,000	12,264,000	4,510,000
Restricted weighted-average grant date fair value, Beginning balance	$ 0.31	$ 0.20
Restricted weighted-average grant date fair value, Awarded	0.07	0.30	$ 0.22
Restricted weighted-average grant date fair value, Forfeited	0.33	0.20	0.24
Restricted weighted-average grant date fair value, Vested	0.29	0.19
Restricted weighted-average grant date fair value, Ending balance	$ 0.29	$ 0.31	$ 0.20

Taxes Payable

12 Months Ended

Dec. 31, 2022

Taxes Payable

Taxes Payable

9.Taxes Payable

The Group’s subsidiaries, the VIEs and subsidiaries of the VIEs incorporated in China are subject to 6% VAT for services rendered.

The following is a summary of taxes payable as of December 31, 2021 and 2022:


	December 31, 2021	December 31, 2022
	RMB	RMB
VAT payables	2,058	1,846
Withholding individual income taxes for employees	2,334	2,533
Income tax payable	450	557
Others	722	485
Total	5,564	5,421

Leases - Summary of Lease Cost (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases
Operating lease cost	¥ 17,284	¥ 10,329	¥ 8,569
Short-term lease cost	10,974	9,353	7,456
Total lease cost	28,258	19,682	16,025
Cash paid for operating leases	17,910	9,786	8,867
Right-of-use assets obtained in exchange for operating lease liabilities	¥ 13,505	¥ 34,988	¥ 12,851

Taxation - Summary of Significant Components of Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Taxation
Net operating tax loss carry forwards	¥ 108,601	¥ 112,248
Advertising expenses in excess of deduction limit		63
Deferred revenue		527
Total deferred tax assets	108,601	112,838
Less: valuation allowances	¥ (108,601)	¥ (112,838)	¥ (74,607)	¥ (80,320)

Fair Value Measurement

12 Months Ended

Dec. 31, 2022

Fair Value Measurement

Fair Value Measurement

18.Fair Value Measurement

Recurring

When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rate and currency rate.

The following table sets forth the Company’s financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2022. No balance of financial instruments measured or disclosed at fair value on a recurring basis as of December 31, 2021.


	Fair Value Measurement at
	December 31, 2022 Using
	Quoted Prices	Significant
	in Active Market	Other	Unobservable	Fair Value at
	for Identical	Observable	inputs	December 31,
	Assets (Level 1)	Inputs (Level 2)	(Level 3)	2022
	RMB	RMB	RMB	RMB	US$
Short-term investments	—	111,353	—	111,353	16,145
Total	—	111,353	—	111,353	16,145

The Company’s other financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, other receivables (included in “Prepayments and other current assets”), accounts payable, other payables (included in “Accrued expenses and other current liabilities”) and short-term loans are not measured at fair value in the consolidated balance sheets, as their carrying values approximated fair value due to their short-term maturity.

Non-recurring

As of December 31, 2021 and 2022, the group had no financial assets or financial liabilities that are measured at fair value at non-recurring basis. The Group’s non-financial assets, such as intangible assets, property, equipment and leasehold improvement and other non-current assets, would be measured at fair value on non-recurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable.

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 568,192	$ 82,400	¥ 533,293
Short-term investments	111,353	16,145
Prepayments and other current assets	30,391	4,406	33,604
Total current assets	723,492	104,897	577,510
Non-current assets:
Total non-current assets	52,845	7,662	65,376
TOTAL ASSETS	776,337	112,559	642,886
Current liabilities:
Salary and welfare payable	136,837	19,840	123,075
Accrued expenses and other current liabilities	47,622	6,904	53,486
Total current liabilities	371,526	53,866	366,503
Non-current liabilities:
Other non-current liabilities	3,952	573	4,452
Total non-current liabilities	12,147	1,761	21,528
TOTAL LIABILITIES	383,673	55,627	388,031
SHAREHOLDERS' EQUITY
Treasury stock	(10)	(1)	(11)
Other shareholders' equity	14,557	2,111	(9,757)
TOTAL LIZHI Inc.'s SHAREHOLDERS' EQUITY	392,677	56,934	254,855
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	776,337	112,559	642,886
Class A ordinary shares
SHAREHOLDERS' EQUITY
Ordinary shares	543	79	530
Class B ordinary shares
SHAREHOLDERS' EQUITY
Ordinary shares	168	$ 24	168
Parent company
Current assets:
Cash and cash equivalents	93,673		224,779
Short-term investments	91,339
Amounts due from Lizhi Group Companies	359,675		278,553
Prepayments and other current assets	2,313		3,417
Total current assets	547,000		506,749
Non-current assets:
Deficit in subsidiaries	(130,257)		(223,293)
Total non-current assets	(130,257)		(223,293)
TOTAL ASSETS	416,743		283,456
Current liabilities:
Salary and welfare payable	2,487		1,330
Accrued expenses and other current liabilities	1,683		3,021
Amounts due to Lizhi Group Companies	15,944		19,798
Total current liabilities	20,114		24,149
Non-current liabilities:
Other non-current liabilities	3,952		4,452
Total non-current liabilities	3,952		4,452
TOTAL LIABILITIES	24,066		28,601
SHAREHOLDERS' EQUITY
Treasury stock	(10)		(11)
Other shareholders' equity	391,976		254,168
TOTAL LIZHI Inc.'s SHAREHOLDERS' EQUITY	392,677		254,855
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	416,743		283,456
Parent company \| Class A ordinary shares
SHAREHOLDERS' EQUITY
Ordinary shares	543		530
Parent company \| Class B ordinary shares
SHAREHOLDERS' EQUITY
Treasury stock	¥ (168)		¥ (168)

Segment Information

12 Months Ended

Dec. 31, 2022

Segment Information

Segment Information

17.Segment Information

The Group’s chief operating decision maker (“CODM”), is concluded by the Company to be Mr. Jinnan (Marco) Lai, Chairman of the Board of Directors and CEO. The CODM reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. Information regarding the business segments provided to the Group’s CODM is at the revenue level and the Group currently does not allocate operating costs or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As the Group’s long-lived assets are substantially located in the PRC and substantially the Group’s revenues are derived from the PRC, no geographical information is presented.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Summary of antidilutive securities excluded from computation of earnings per share

Net (Loss)/Income per Share (Tables)

12 Months Ended

Dec. 31, 2022

Net (Loss)/Income per Share


	For the year ended December 31,
	2020	2021	2022
Share options	2,092,300	7,036,117	—
Restricted shares	3,141,612	5,680,877	—
Restricted share units	—	2,462,618	—
Total	5,233,912	15,179,612	—

Summary of computation of basic and diluted net (loss)/income per share


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net (loss)/income	(82,184)	(127,250)	86,504
Less: accretions to preferred shares redemption value	(154,066)	—	—
Less: net loss attributable to the non-controlling interest shareholders	—	—	(13)
Net (loss)/income attributable to Lizhi Inc.’s ordinary shareholders	(236,250)	(127,250)	86,517

Denominator:
Weighted average number of ordinary shares outstanding, basic	883,202,412	991,715,849	1,036,485,949
Add:
Share options	—	—	852,691
Restricted shares	—	—	1,279,270
Weighted average number of ordinary shares outstanding, diluted	883,202,412	991,715,849	1,038,617,910

Basic net (loss)/income per share attributable to Lizhi Inc.’s ordinary shareholders	(0.27)	(0.13)	0.08
Diluted net (loss)/income per share attributable to Lizhi Inc.’s ordinary shareholders	(0.27)	(0.13)	0.08

Property, Equipment and Leasehold Improvement, Net - Summary of Property Plant and Equipment (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Property, Equipment and Leasehold Improvement, Net
Total property, equipment and leasehold improvement	¥ 101,597		¥ 90,935
Less: accumulated depreciation	(75,051)		(57,544)
Property, equipment and leasehold improvement, net	26,546	$ 3,849	33,391
Electronic equipment
Property, Equipment and Leasehold Improvement, Net
Total property, equipment and leasehold improvement	80,099		76,401
Furniture and office equipment
Property, Equipment and Leasehold Improvement, Net
Total property, equipment and leasehold improvement	3,273		1,729
Vehicles
Property, Equipment and Leasehold Improvement, Net
Total property, equipment and leasehold improvement	2,818		2,793
Leasehold improvement
Property, Equipment and Leasehold Improvement, Net
Total property, equipment and leasehold improvement	¥ 15,407		¥ 10,012

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2022

Accrued Expenses and Other Current Liabilities.

Accrued Expenses and Other Current Liabilities

11.Accrued Expenses and Other Current Liabilities

The following is a summary of accrued expenses and other current liabilities as of December 31, 2021 and 2022:


	December 31, 2021	December 31, 2022
	RMB	RMB
Advertising and promotional expenses	32,849	33,048
Professional service fees	7,690	5,237
Payable for property, equipment and leasehold improvement,net	681	871
Accrued sales rebates for advertising business	2,660	1,360
Provision for litigation contingencies	4,863	3,156
Others	4,743	3,950
Total	53,486	47,622

Short-term Loans

12 Months Ended

Dec. 31, 2022

Short-term Loans

Short-term Loans

10.Short-term Loans

During the years ended December 31, 2021 and 2022, the Group obtained bank credit facilities totaling RMB121.8 million. The unused credit line amount was RMB48.0 million as of December 31, 2022.

As of December 31, 2021 and 2022, the loans obtained by the Group under these bank facilities have maturity dates that are less than six months and the weighted average interest rate for the outstanding loans was 5.3% and 4.6%, respectively.

As of December 31, 2021 and 2022, the balance of short-term loans was RMB69.0 million and RMB73.8 million, respectively.

Organization and Principal Activities

12 Months Ended

Dec. 31, 2022

Organization and Principal Activities

Organization and Principal Activities

1.Organization and Principal Activities

Lizhi Inc. (the “Company”) was incorporated in the Cayman Islands in January 2019. The Company is a holding company and conducts its business mainly through its subsidiaries, and through variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”). The Group is primarily engaged in the operation of providing audio entertainment, and podcast, advertising and others in the People’s Republic of China (the “PRC” or “China”). The Group commenced its audio entertainment business from the fourth quarter of 2016.

As of December 31, 2022, the Company’s consolidated subsidiaries, the VIEs and subsidiaries of the VIEs are as follows:


	Place and	Percentage of
	year of	direct or indirect
Major Subsidiaries	incorporation	economic ownership	Principal activities
Lizhi Inc. (“Lizhi BVI”)	British Virgin Islands, Y2010	100	Investment holding
Lizhi Holding Limited (“Lizhi HK”)	Hong Kong, China Y2010	100	Investment holding
Beijing Hongyiyichuang Information Technology Co., Ltd. (“Hongyi Technology”)	Beijing, China Y2011	100	Technical support and consulting services, advertising service
Tiya Inc. (“Tiya Cayman”)	Cayman Islands, Y2019	100	Investment holding
VOCAL BEATS Inc. (“Vocal Beats”)	British Virgin Islands, Y2019	100	Investment holding
TIYA INC. (“Tiya BVI”)	British Virgin Islands, Y2019	100	Investment holding
Tiya Holding Limited (“Tiya HK”)	Hong Kong, China Y2019	100	Investment holding
TIYA PTE. LTD.	Singapore Y2019	100	Audio entertainment business and others
NASHOR PTE. LTD.	Singapore Y2019	100	Audio entertainment business and others
Guangzhou Tiya Information Technology Co., Ltd. (“Guangzhou Tiya”)	Guangzhou, China Y2019	100	Technical support and consulting services
Tiya Inc. (“Tiya USA”)	USA Y2020	100	Audio entertainment business and others
Guangzhou QingYin Information Technology Co., Ltd. (“Guangzhou QingYin”)	Guangzhou, China Y2022	100	Technical support and consulting services
Guangzhou Yuyin Information Technology Co., Ltd.	Guangzhou, China Y2022	100	Technical support and consulting services
Guangzhou Yuechuang Information Technology Co., Ltd.	Guangzhou, China Y2022	100	Technical support and consulting services

1.	Organization and Principal Activities (Continued)


	Place and
	year of	Percentage of
	incorporation/	direct or indirect
Major VIEs	acquisition	economic ownership	Principal activities
Guangzhou Lizhi Network Technology Co., Ltd. (“Guangzhou Lizhi”)	Guangzhou, China Y2007	100	Audio entertainment and podcast business
Guangzhou Huanliao Network Technology Co., Ltd. (“Guangzhou Huanliao”)	Guangzhou, China Y2016	100	Audio entertainment business and others


	Place and	Percentage of
	year of	direct or indirect
Major subsidiaries of VIEs	incorporation	economic ownership	Principal activities
Changsha Limang Interaction Entertainment Co., Ltd.	Changsha, China Y2015	100	Audio entertainment business and others
Huai’an Lizhi Network Technology Co., Ltd.	Huai’an, China Y2015	100	Audio entertainment business and others
Wuhan Lizhi Network Technology Co., Ltd.	Wuhan, China Y2017	100	Audio entertainment business and others
Wuhan Yuyinliaorao Network Technology Co., Ltd.	Wuhan, China Y2019	100	Audio entertainment business and others
Wuhan Zhiyin Network Technology Co., Ltd.	Wuhan, China Y2019	100	Audio entertainment business and others

1.Organization and Principal Activities (Continued)

History of the Group

Initial Public Offering

In January 2020, the Company completed an IPO in which an aggregate of 82,000,000 Class A ordinary shares was offered and sold in the form of ADSs. On January 17, 2020, the ADSs have been listed on the Nasdaq Global Market under the symbol “LIZI”.

Follow-on Public Offering

In April 2021, the Company completed a registered direct offering of 3,685,504 ADSs and warrants to purchase up to 2,764,128 ADSs, at an offering price of US$8.14 per ADS and the corresponding warrant. The gross proceeds of this registered direct offering were US$30.0 million before deducting placement agent fees and other offering expenses.

Contractual arrangements with VIEs

PRC laws and regulations place certain restrictions on foreign investment in value-added telecommunication service businesses. The Company conducts a significant portion of its operations in the PRC through Guangzhou Lizhi, Guangzhou Huanliao, and their subsidiaries. The Company relies on a series of contractual arrangements among its wholly-owned PRC subsidiaries, VIEs and their shareholders to conduct the business operations of the VIEs and the VIEs’ subsidiaries.

As a result of these contractual arrangements, the Company’s wholly-owned subsidiaries are entitled to substantially all of the economic benefits from the VIEs and the VIEs’ subsidiaries and are obligated to absorb all of the VIEs and the VIEs’ subsidiaries expected losses and therefore the Company has determined that it is the ultimate primary beneficiary of the VIEs and subsidiaries of the VIEs, and has consolidated the financial results of VIEs and subsidiaries of the VIEs in its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for accounting purposes.

Below is a summary of the currently effective contractual arrangements by and among the Company’s wholly-owned subsidiaries Hongyi Technology, Guangzhou QingYin, the Company’s VIEs Guangzhou Lizhi, Guangzhou Huanliao and their shareholders (also nominee shareholders).

1.Organization and Principal Activities (Continued)

Contractual arrangements with VIEs (Continued)

Guangzhou Lizhi

Equity Pledge Agreement

Pursuant to an equity pledge agreement entered into on January 17, 2023 by and between Hongyi Technology and then shareholders of Guangzhou Lizhi, such shareholders of Guangzhou Lizhi pledged all of their equity interests in Guangzhou Lizhi to Hongyi Technology, to guarantee the performance of Guangzhou Lizhi and, to the extent applicable, such shareholders of Guangzhou Lizhi, of their obligations under the contractual arrangements of the VIE. If Guangzhou Lizhi or such shareholders of Guangzhou Lizhi fail to perform their obligations under the contractual arrangement of the VIE, Hongyi Technology will be entitled to, among other things, right to sell the pledged shares of Guangzhou Lizhi via an auction. This equity pledge agreement will remain in effect so long as any of the exclusive technical consulting and management service agreement, the operation agreement or the exclusive equity transfer option agreement, as mentioned below, remains in effect or any guaranteed obligation of Guangzhou Lizhi, or, to the extent applicable, its shareholders, remains outstanding under the VIE contractual arrangements. The existing equity pledge agreement was initially entered into in March 2011 and was subsequently amended and restated on substantially similar terms in December 2014, June 2017, August 2017, June 2019 and January 2023, respectively.

Exclusive Equity Transfer Option Agreement

Pursuant to an exclusive equity transfer option agreement entered into on January 17, 2023 by and between Hongyi Technology and then shareholders of Guangzhou Lizhi, such shareholders of Guangzhou Lizhi exclusively granted Hongyi Technology or any party appointed by Hongyi Technology an irrevocable option to purchase all or part of the shares in Guangzhou Lizhi held by then shareholders of Guangzhou Lizhi at a price no lower than the lowest price permitted by PRC law. Whether to exercise this option and the timing, methods and frequency of exercising such option are at the full discretion of Hongyi Technology. The exclusive equity transfer option agreement shall remain valid until all shares in Guangzhou Lizhi held by the shareholders of Guangzhou Lizhi, or all irrevocable options to purchase such shares, have been transferred to Hongyi Technology or its designated person. Hongyi Technology is entitled to terminate this exclusive equity transfer option agreement if a default occurs due to reasons not related to Hongyi Technology under this agreement. The existing exclusive equity transfer option agreement was initially entered into in March 2011 and was subsequently amended and restated on substantially similar terms in December 2014, June 2017, August 2017, June 2019 and January 2023, respectively.

Exclusive Technical Consulting and Service Agreement

Pursuant to an exclusive technical consulting and service agreement entered into on June 9, 2017 by and between Hongyi Technology and Guangzhou Lizhi, Guangzhou Lizhi agreed to appoint Hongyi Technology as its exclusive provider of technology services, including software development, internet maintenance, network security and other services in exchange for a service fee which equal to an amount no more than 90% of the after-tax net profit of Guangzhou Lizhi and are subject to the adjustment by the Company’s relevant subsidiaries at its sole discretion, for a term of ten years starting from the date thereof. Hongyi Technology is entitled to terminate or extend the exclusive technical consulting and service agreement at its discretion. The existing exclusive technical consulting and service agreement was initially entered into in March 2011 and was subsequently superseded by an amended and restated exclusive technical consulting and service agreement on substantially similar terms in June 2017.

1.	Organization and Principal Activities (Continued)

Contractual arrangements with VIEs (Continued)

Guangzhou Lizhi (Continued)

Operation Agreement

Pursuant to an operation agreement entered into on January 17, 2023 by and among Hongyi Technology, Guangzhou Lizhi and then shareholders of Guangzhou Lizhi, such shareholders of Guangzhou Lizhi agreed that, without written consent of Hongyi Technology or a party designated by it, Guangzhou Lizhi shall refrain from conducting any action that may materially or adversely affect its assets, business, personnel, obligations, rights or operation, for a term of ten years starting from the date thereof. Such actions include, among other things, incurrence of debt to a third party, change of directors or senior management, acquisition or disposal of assets or shares, amendment to its articles of association or business scope and other matters. Hongyi Technology is also entitled to appoint directors and senior management of Guangzhou Lizhi and instruct Guangzhou Lizhi on matters pertinent to its daily operation, financial management. Guangzhou Lizhi is obligated to fully effectuate the appointment or instructions made by Hongyi Technology in methods consistent with applicable laws and articles of Guangzhou Lizhi. Hongyi Technology is entitled to terminate or extend the operation agreement at its discretion. The existing operation agreement was initially entered into in March 2011 and was subsequently superseded by an amended and restated operation agreement on substantially similar terms in June 2017, June 2019 and January 2023, respectively.

Power of Attorney

Pursuant to a series of power of attorney issued by shareholders of Guangzhou Lizhi on January 17, 2023, such shareholders of Guangzhou Lizhi irrevocably appointed Hongyi Technology as their attorney-in-fact to act on their behalf on all shareholder matters of Guangzhou Lizhi and exercise all rights as shareholders of Guangzhou Lizhi. This power of attorney shall remain valid until the abovementioned operation agreement is terminated or Guangzhou Lizhi is dissolved, whichever is earlier. The existing series of power of attorney was initially entered into in March 2011 and was subsequently superseded by a new series of powers of attorney on substantially similar terms in June 2017, June 2019 and January 2023, respectively.

The Equity Pledge Agreement, Exclusive Equity Transfer Option Agreement, Exclusive Technical Consulting and Service Agreement, Operation Agreement and Power of Attorney were amended to reflect the changes of shareholders’ holding in the VIE at their respective dates. No other material terms or conditions of these agreements were changed or altered. The Company is still the ultimate primary beneficiary of Guangzhou Lizhi for accounting purpose, and the Group continues to consolidate Guangzhou Lizhi.

1.	Organization and Principal Activities (Continued)

Contractual arrangements with VIEs (Continued)

Guangzhou Huanliao

To streamline operations in China, the Company terminated the entire series of VIE contractual arrangements between and among Guangzhou Tiya, Guangzhou Huanliao and Mr. Ning Ding, the sole shareholder of Guangzhou Huanliao in July 2022. Concurrently with such termination, Guangzhou QingYin entered into a new series of contractual arrangements by and among Guangzhou QingYin, Guangzhou Huanliao and then shareholder of Guangzhou Huanliao in July 2022, which were amended and restated in January 2023.

Equity Pledge Agreement

Pursuant to an equity pledge agreement entered into on January 6, 2023 by and between Guangzhou QingYin and then shareholders of Guangzhou Huanliao, such shareholders of Guangzhou Huanliao pledged all of their equity interests in Guangzhou Huanliao to Guangzhou QingYin to guarantee the performance of Guangzhou Huanliao and, to the extent applicable, such shareholders of Guangzhou Huanliao, of their obligations under the contractual arrangement of the VIE. If Guangzhou Huanliao or such shareholders of Guangzhou Huanliao fail to perform their obligations under the contractual arrangement of the VIE, Guangzhou QingYin will be entitled to, among other things, a right to sell the pledged shares of Guangzhou Huanliao via an auction. This equity pledge agreement will remain in effect so long as any of the exclusive technical consulting and management service agreement, the operation agreement and the exclusive equity transfer option agreement, as mentioned below, remains in effect and any guaranteed obligation of Guangzhou Huanliao, or, to the extent applicable, its shareholders, remains outstanding under the VIE contractual arrangements. The existing equity pledge agreement was initially entered into in July 2022 and was subsequently amended and restated on substantially similar terms in January 2023.

Exclusive Equity Transfer Option Agreement

Pursuant to an exclusive equity transfer option agreement entered into on January 6, 2023 by and between Guangzhou Huanliao, Guangzhou QingYin and then shareholders of Guangzhou Huanliao, such shareholders of Guangzhou Huanliao exclusively granted Guangzhou QingYin or any party appointed by Guangzhou QingYin an irrevocable option to purchase all or part of the shares in Guangzhou Huanliao held by then shareholders of Guangzhou Huanliao at a price no lower than the lowest price permitted by PRC law. Whether to exercise this option and the timing, methods and frequency of exercising such option are at the full discretion of Guangzhou QingYin. The exclusive equity transfer option agreement shall remain valid until all shares in Guangzhou Huanliao held by then shareholders of Guangzhou Huanliao, or all irrevocable options to purchase such shares, have been transferred to Guangzhou QingYin or its designated person. Guangzhou QingYin is entitled to terminate this exclusive equity transfer option agreement if a default occurs due to reasons not related to Guangzhou QingYin under this agreement. The existing exclusive equity transfer option agreement was initially entered into in July 2022 and was subsequently amended and restated on substantially similar terms in January 2023.

Exclusive Technical Consulting and Service Agreement

Pursuant to an exclusive technical consulting and service agreement entered into on July 19, 2022 by and between Guangzhou QingYin and Guangzhou Huanliao, Guangzhou Huanliao agreed to appoint Guangzhou QingYin as its exclusive provider of technology services, including software development, internet maintenance, network security and other services in exchange for a service fee which equal to an amount no more than 90% of the after-tax net profit of Guangzhou Huanliao and are subject to the adjustment by the Company’s relevant subsidiaries at its sole discretion, for a term of ten years starting from the date thereof. Guangzhou QingYin is entitled to terminate or extend the exclusive technical consulting and service agreement at its discretion.

1.	Organization and Principal Activities (Continued)

Contractual arrangements with VIEs (Continued)

Guangzhou Huanliao (Continued)

Operation Agreement

Pursuant to an operation agreement entered into on January 6, 2023 by and among Guangzhou QingYin, Guangzhou Huanliao and then shareholders of Guangzhou Huanliao, such shareholders of Guangzhou Huanliao agreed that, without written consent of Guangzhou QingYin or a party designated by it, Guangzhou Huanliao shall refrain from conducting any action that may materially or adversely affect its assets, business, personnel, obligations, rights or operation, for a term of ten years starting from the date thereof. Such actions include, among other things, incurrence of debt to a third party, change of directors or senior management, acquisition or disposal of assets or shares, amendment to its articles of association or business scope and other matters. Guangzhou QingYin is also entitled to appoint directors and senior management of Guangzhou Huanliao and instruct Guangzhou Huanliao on matters relating to its daily operation, financial management. Guangzhou Huanliao is obligated to fully effectuate the appointment or instructions made by Guangzhou QingYin in methods consistent with applicable laws and articles of Guangzhou Huanliao. Guangzhou QingYin is entitled to terminate or extend the operation agreement at its discretion. The existing operation agreement was initially entered into in July 2022 and was subsequently amended and restated on substantially similar terms in January 2023.

Power of Attorney

Pursuant to a series of power of attorney issued by shareholders of Guangzhou Huanliao on January 6, 2023, such shareholders of Guangzhou Huanliao irrevocably appointed Guangzhou QingYin as their attorney-in-fact to act on their behalf on all shareholder matters of Guangzhou Huanliao and exercise all rights as shareholders of Guangzhou Huanliao. This power of attorney shall remain valid until the abovementioned operation agreement is terminated or Guangzhou QingYin is dissolved. The existing series of power of attorney was initially entered into in July 2022 and was subsequently superseded by a new series of powers of attorney on substantially similar terms in January 2023.

The Equity Pledge Agreement, Exclusive Equity Transfer Option Agreement, Exclusive Technical Consulting and Service Agreement, Operation Agreement and Power of Attorney were amended to reflect the changes of shareholders’ holding in the VIE at their respective dates. No other material terms or conditions of these agreements were changed or altered. The Company is still the ultimate primary beneficiary of Guangzhou Huanliao for accounting purpose and the Group continues to consolidate Guangzhou Huanliao.

Risks in relation to the VIE structure

A significant part of the Company’s business is conducted through the VIEs, of which the Company is the ultimate primary beneficiary. The Company has been advised by its PRC legal counsel, that its contractual arrangements with its consolidated VIEs as described in the Company’s annual report are valid, binding and enforceable under the current laws and regulations of China. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIEs were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements.

1.Organization and Principal Activities (Continued)

Risks in relation to the VIE structure (Continued)

The Chief Executive Officer (CEO) along with the Chief Technology Officer (CTO) own the majority of the voting shares of the Company, they also own the majority of the voting shares of the VIEs. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIEs depend on these individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and the VIEs may not be aligned in the future. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced.

The Group’s operations depend on the VIEs to honour their contractual agreements with the Group and the enforceability, and therefore the benefits depend on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to be the ultimate primary beneficiary and consolidate the VIE as a result of the aforementioned risks and uncertainties is remote.

The Company’s ability to be the ultimate primary beneficiary of the VIEs also depends on the Power of Attorney the shareholders have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes these Power of Attorney are legally enforceable but may not be as effective as direct equity ownership.

In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions:

●

revoke the business licenses and/or operating licenses of the Group;

●

confiscate any of the Group’s income that they deem to be obtained through illegal operations;

●

discontinue or place restrictions or onerous conditions on the Group’s operations;

●

place restrictions on the Group’s right to collect revenues;

●

shut down the Group’s servers or block the Group’s apps/websites;

●

require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply for the necessary licenses or relocate the Group’s businesses, staff and assets;

●

impose additional conditions or requirements with which the Group may not be able to comply;

●

taking other regulatory or enforcement actions against the Group that could be harmful to the Group’s business; or

●

impose fines on the Group.

1.	Organization and Reorganization (Continued)

Risks in relation to the VIE structure (Continued)

The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may lose the rights to direct the activities of the VIEs or the right to receive their economic benefits, which may result in deconsolidation of the VIEs in the Group’s consolidated financial statements. In the opinion of the Company’s management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group believes that the contractual arrangements among each of the VIEs, their respective shareholders and relevant wholly foreign owned enterprises are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. Management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those contractual arrangements.

1.	Organization and Principal Activities (Continued)

Risks in relation to the VIE structure (Continued)


	As of December 31,	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	191,549	302,103
Restricted cash	3,023	—
Accounts receivable, net	1	902
Prepayments and other current assets	20,245	21,365
Amount due from the subsidiaries of the Group	197	781
Total current assets	215,015	325,151
Non-current assets:
Property, equipment and leasehold improvement, net	28,580	18,390
Intangible assets, net	2,245	1,104
Right-of-use assets, net	9,653	7,087
Other non-current assets	799	—
Total non-current assets	41,277	26,581
TOTAL ASSETS	256,292	351,732
Current liabilities:
Accounts payable	70,639	50,735
Deferred revenue	19,118	27,718
Salary and welfare payable	116,204	120,563
Taxes payable	4,940	4,112
Short-term loans	68,999	66,800
Lease liabilities due within one year	5,767	7,021
Accrued expenses and other current liabilities	42,803	42,770
Amount due to the subsidiaries of the Group	377,331	379,306
Total current liabilities	705,801	699,025
Non-current liabilities:
Lease liabilities	4,132	160
Total non-current liabilities	4,132	160
TOTAL LIABILITIES	709,933	699,185

1.	Organization and Principal Activities (Continued)

Risks in relation to the VIE structure (Continued)

The VIEs hold assets with no carrying value in the consolidated balance sheet that are important to the Company’s ability to produce revenue (referred to as unrecognized revenue-producing assets). Unrecognized revenue-producing assets held by the VIEs mainly include the ICP License and the Internet Culture Operating License. Recognized revenue-producing assets held by the VIEs mainly include copyrights, trademarks and domain names.


	For the year ended
	December 31,	December 31,	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net revenues	1,456,190	1,975,758	2,155,620
Net (loss)/income	(84,441)	(81,551)	106,188

Included in the net (loss)/income of the VIEs are charges for technical development or technical service fees paid to other entities within the Group. The amount of such fees were RMB26.9 million, RMB9.6 million, and RMB82.1 million in 2020, 2021 and 2022, respectively.


	For the year ended
	December 31,	December 31,	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net cash generated from/(used in) operating activities	17,425	(17,723)	147,067
Net cash (used in)/generated from investing activities	(94,559)	52,323	(5,576)
Net cash generated from/(used in) financing activities	187,752	7,298	(33,960)
Net increase in cash, cash equivalents and restricted cash	110,618	41,898	107,531

For the years ended December 31, 2020, 2021 and 2022, net cash generated from financing activities in the VIEs consist of: i) net borrowing from/(net repayments to) the Group companies, amounting to RMB148.8 million, RMB(22.2) million and RMB (31.8) million, respectively, and ii) net borrowing from/(net repayments to) bank loans of RMB39.0 million, RMB29.5 million and RMB(2.2)million, respectively.

In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and their subsidiaries and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounted to approximately RMB51.0 million and RMB51.0 million as of December 31, 2021 and 2022, respectively, as well as certain non-distributable statutory reserves amounting to nil and RMB0.5 million as of December 31, 2021 and 2022, respectively. As the respective VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting a significant portion of businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss.

There is no VIEs in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary.

1.	Organization and Principal Activities (Continued)

Liquidity

The Group incurred net (loss)/income of RMB(82.2) million, RMB(127.3) million and RMB86.5 million for the years ended December 31, 2020, 2021 and 2022, respectively. Net cash generated from/(used in) operating activities were RMB40.0 million, RMB (40.4) million and RMB136.3 million for the years ended December 31, 2020, 2021 and 2022, respectively. Accumulated deficit was RMB2,366.5 million and RMB2,280.5 million as of December 31, 2021 and 2022, respectively.The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments.

The Group’s principal sources of liquidity have been cash generated from its operations and contributions from its shareholders, as well as short term borrowings. As of December 31, 2022, it had RMB568.2 million (US$82.4 million) in cash and cash equivalents which are readily convertible to fixed amounts of cash and with original maturities from the date of purchase with terms of three months or less. The Group had a positive working capital (defined as total current assets deducted by total current liabilities) of RMB352.0 million (US$51.0 million) as of December 31, 2022. Therefore, the Group believes its current cash and cash equivalents will be sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the date of the issuance of the consolidated financial statements. The Group’s consolidated financial statements have been prepared based on the Company continuing as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of property, equipment and leasehold improvement


Electronic equipment		3 years
Furniture and office equipment		5 years
Vehicles		4 years
Leasehold improvement		shorter of expected lives of leasehold improvement and lease term

Schedule of amortization of finite-lived intangible assets


Copyright		1-3 years
Software		1-5 years
Trademark and others		3-5 years

Summary of the revenue by type of service provided by the Group


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Audio entertainment	1,481,120	2,101,475	2,174,314
Podcast, advertising and others	21,788	18,039	10,952
Total	1,502,908	2,119,514	2,185,266

Advertising and promotional service providers

Schedule of advertising and promotional service providers


	For the year ended December 31,
	2020		2021		2022
Total number of advertising and promotional service providers	203		198		182
Number of service providers that each accounted for 10% or more of the Group’s advertising and promotional expenses	3		2		2
Total percentage of the Group’s advertising and promotional expenses that were paid to these service providers who each accounted for 10% or more of the Group’s advertising and promotional service expenses	38.1	%	44.9	%	35.7	%

Major customers for advertising business

Schedule of advertising and promotional service providers


	December 31,		December 31,
	2021		2022
Customer A	87.3	%	71.6	%
Customer B	—		27.8	%

Leases - Summary of Lessee Operating Lease Liability Maturity (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
2023	¥ 19,527
2024	7,399
2025	1,121
Total future lease payment	28,047
Impact of discounting remaining lease payments	(1,480)
Total lease liabilities	26,567	¥ 31,005
Operating leases not yet commenced	¥ 0	¥ 0

Prepayments and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2022

Prepayments and Other Current Assets

Summary of prepayments and other current assets


	December 31,	December 31,
	2021	2022
	RMB	RMB
Prepayments to vendors	12,408	16,110
Deposits	7,786	5,286
Receivables from third-party online payment platform	5,652	2,612
Deductible VAT	2,946	2,399
Staff advances	495	393
Others	4,317	3,591
Total	33,604	30,391

Taxes Payable - Summary of Taxes Payable (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Taxes Payable
VAT payables	¥ 1,846	¥ 2,058
Withholding individual income taxes for employees	2,533	2,334
Income tax payable	557	450
Others	485	722
Total	¥ 5,421	¥ 5,564

Taxes Payable - Additional Information (Details)	12 Months Ended
Taxes Payable - Additional Information (Details)	Dec. 31, 2022
Taxes Payable
Value added tax rate	6.00%

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases

Summary of Group's operating leases mainly related to offices facilities


	December 31, 2021		December 31, 2022
	RMB		RMB
Operating lease ROU assets	28,941		25,116
Operating lease liabilities, non-current	(17,076)		(8,195)
Operating lease liabilities, current	(13,929)		(18,372)
Total operating lease liabilities	(31,005)		(26,567)
Weighted average remaining lease term	2.5 years		1.7 years
Weighted average discount rate	7.0	%	6.3	%

Summary of components of lease cost and supplemental cash flow information


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Operating lease cost	8,569	10,329	17,284
Short-term lease cost	7,456	9,353	10,974
Total lease cost	16,025	19,682	28,258


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cash payments for operating leases	8,867	9,786	17,910
Right-of-use assets obtained in exchange for operating lease liabilities	12,851	34,988	13,505

Summary of maturity of operating lease liabilities


		RMB
2023		19,527
2024		7,399
2025		1,121
Total future lease payments		28,047
Impact of discounting remaining lease payments		(1,480)
Total lease liabilities		26,567

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2022

Accounts Receivable, Net

Accounts Receivable, Net

4.Accounts Receivable, Net

Accounts receivable, net is consisted of the following:


	December 31, 2021	December 31, 2022
	RMB	RMB
Accounts receivable, gross:	6,458	3,233
Less: allowance for doubtful accounts	—	—
Accounts receivable, net	6,458	3,233

The Group closely monitors the collection of its accounts receivable and records allowance for doubtful accounts against aged accounts receivable and for specifically identified non-recoverable amounts. If the economic situation and the financial condition of a customer deteriorate resulting in an impairment of the customer’s ability to make payments, additional allowances might be required. Receivable balances are written off when they are determined to be uncollectable.

As of December 31, 2022, the Group was not yet required to adopt the expected credit loss model for estimating the allowance for doubtful accounts. See Note 2(dd) for additional information.

Subsequent Events (Details) $ / shares in Units, ¥ in Thousands, $ in Millions	1 Months Ended		12 Months Ended
	Jan. 31, 2023 USD ($) $ / shares shares	Apr. 30, 2021 shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Subsequent Events
Stock issued, during the period		3,685,504
Issuance of ordinary shares at the initial public offering ("IPO") \| ¥			¥ 183,188	¥ 256,408
Subsequent events \| Vocal Beats Inc
Subsequent Events
Ownership percentage	68.52%
Ordinary shares, shares issued	100,000,000
Ordinary shares, par value \| $ / shares	$ 0.0001
Subsequent events \| Sky Voice Limited \| Vocal Beats Inc
Subsequent Events
Stock issued, during the period	31,481,481
Issuance of ordinary shares at the initial public offering ("IPO") \| $	$ 0.3
Ownership percentage held by LIZHI INC	31.48%

Significant Accounting Policies - Summary of Advertising and Promotional Service Providers (Details) - Advertising and promotional service expense - item	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Advertising and promotional service providers
Number of service providers that accounted for 10% or more of the Group's advertising and promotional expenses	182	198	203
Supplier concentration risk
Advertising and promotional service providers
Number of service providers that accounted for 10% or more of the Group's advertising and promotional expenses	2	2	3
Customer concentration risk \| Major customers for advertising business
Advertising and promotional service providers
Total percentage of the Group's advertising and promotional expenses that were paid to these service providers who accounted for 10% or more of the Group's advertising and promotional service expenses	35.70%	44.90%	38.10%

Prepayments and Other Current Assets - Summary of Prepayments and Other Assets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Prepayments and Other Current Assets
Prepayments to vendors	¥ 16,110		¥ 12,408
Deposits	5,286		7,786
Receivables from third-party online payment platform	2,612		5,652
Deductible VAT	2,399		2,946
Staff advances	393		495
Others	3,591		4,317
Total	¥ 30,391	$ 4,406	¥ 33,604

Significant Accounting Policies - Summary of Property Plant Equipment Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2022
Electronic equipment
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Furniture and office equipment
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	5 years
Vehicles
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	4 years
Leasehold improvement
Property, Plant and Equipment
Property, plant and equipment, estimated useful life	shorter of expected lives of leasehold improvement and lease term

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands, $ in Thousands	Ordinary shares CNY (¥) shares	Treasury stock CNY (¥) shares	Additional paid-in capital CNY (¥)	Statutory reserves CNY (¥)	Accumulated other comprehensive (loss)/income CNY (¥)	Accumulated deficit CNY (¥)	Non-controlling interests CNY (¥)	CNY (¥) shares	USD ($) shares
Beginning balance at Dec. 31, 2019	¥ 189	¥ (18)			¥ 4,429	¥ (2,003,031)		¥ (1,998,431)
Beginning balance (in shares) at Dec. 31, 2019 \| shares	285,428,430	(25,428,430)
Statement
Net income (loss)						(82,184)		(82,184)
Issuance of ordinary shares at the initial public offering ("IPO")	¥ 56		¥ 256,352					256,408
Issuance of ordinary shares at the initial public offering ("IPO") (in shares) \| shares	82,000,000
Conversion of preferred shares to ordinary shares upon the completion of the IPO shares	¥ 391		2,100,665					2,101,056
Conversion of preferred shares to ordinary shares upon the completion of the IPO shares (in shares) \| shares	569,036,090
Accretions to preferred shares redemption value						(154,066)		(154,066)
Share-based compensation			49,170					49,170
Grant of vested options to settle annual bonus			3,378					3,378
Issuance of treasury stock for share incentive plan	¥ 4	¥ (4)
Issuance of treasury stock for share incentive plan (in shares) \| shares	5,000,000	(5,000,000)
Vesting of restricted shares		¥ 8	(8)
Vesting of restricted shares (in shares) \| shares		9,857,100
Vesting of restricted share units			196					¥ 196
Vesting of restricted share units (in shares) \| shares		190,160						190,160	190,160
Exercise of share options		¥ 2						¥ 2
Exercise of share options (in shares) \| shares		3,235,100						3,235,000	3,235,000
Foreign currency translation adjustment					(6,338)			¥ (6,338)
Appropriation to statutory reserves				¥ 0
Ending balance at Dec. 31, 2020	¥ 640	¥ (12)	2,409,753		(1,909)	(2,239,281)		169,191
Ending balance (in shares) at Dec. 31, 2020 \| shares	941,464,520	(17,146,070)
Statement
Net income (loss)						(127,250)		(127,250)
Issuance of ordinary shares at the initial public offering ("IPO")	¥ 48		183,140					183,188
Issuance of ordinary shares at the initial public offering ("IPO") (in shares) \| shares	73,710,080
Share-based compensation			34,715					34,715
Issuance of treasury stock for share incentive plan	¥ 10	¥ (10)
Issuance of treasury stock for share incentive plan (in shares) \| shares	15,002,660	(15,002,660)
Vesting of restricted shares		¥ 5	(5)
Vesting of restricted shares (in shares) \| shares		6,232,100
Vesting of restricted share units		¥ 3	2,853					¥ 2,856
Vesting of restricted share units (in shares) \| shares		4,830,900						1,812,960	1,812,960
Exercise of share options		¥ 3						¥ 3
Exercise of share options (in shares) \| shares		4,924,720						4,925,000	4,925,000
Foreign currency translation adjustment					(7,848)			¥ (7,848)
Appropriation to statutory reserves				0
Ending balance at Dec. 31, 2021	¥ 698	¥ (11)	2,630,456		(9,757)	(2,366,531)		254,855
Ending balance (in shares) at Dec. 31, 2021 \| shares	1,030,177,260	(16,161,010)
Statement
Net income (loss)						86,517	¥ (13)	86,504
Share-based compensation			24,964					24,964
Issuance of treasury stock for share incentive plan	¥ 13	¥ (13)
Issuance of treasury stock for share incentive plan (in shares) \| shares	20,000,000	(20,000,000)
Vesting of restricted shares		¥ 3	(3)
Vesting of restricted shares (in shares) \| shares		3,625,000
Vesting of restricted share units		¥ 6	2,016					¥ 2,022
Vesting of restricted share units (in shares) \| shares		9,286,460						5,637,860	5,637,860
Exercise of share options		¥ 5						¥ 5
Exercise of share options (in shares) \| shares		7,894,340						7,894,000	7,894,000
Foreign currency translation adjustment					24,314			¥ 24,314	$ 3,525
Appropriation to statutory reserves				529		(529)
Ending balance at Dec. 31, 2022	¥ 711	¥ (10)	¥ 2,657,433	¥ 529	¥ 14,557	¥ (2,280,543)	¥ (13)	¥ 392,664	$ 56,932
Ending balance (in shares) at Dec. 31, 2022 \| shares	1,050,177,260	(15,355,210)

Net (Loss)/Income per Share

12 Months Ended

Dec. 31, 2022

Net (Loss)/Income per Share

Net (Loss)/Income per Share

15.Net (Loss)/Income per Share

For the years ended December 31, 2020, 2021 and 2022, the following shares outstanding were excluded from the calculation of diluted net (loss)/income per share, as their inclusion would have been anti-dilutive for the periods prescribed but which could potentially dilute EPS in the future.


	For the year ended December 31,
	2020	2021	2022
Share options	2,092,300	7,036,117	—
Restricted shares	3,141,612	5,680,877	—
Restricted share units	—	2,462,618	—
Total	5,233,912	15,179,612	—

The following table sets forth the computation of basic and diluted net (loss)/income per share of the Company for the years ended December 31, 2020, 2021 and 2022:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net (loss)/income	(82,184)	(127,250)	86,504
Less: accretions to preferred shares redemption value	(154,066)	—	—
Less: net loss attributable to the non-controlling interest shareholders	—	—	(13)
Net (loss)/income attributable to Lizhi Inc.’s ordinary shareholders	(236,250)	(127,250)	86,517

Denominator:
Weighted average number of ordinary shares outstanding, basic	883,202,412	991,715,849	1,036,485,949
Add:
Share options	—	—	852,691
Restricted shares	—	—	1,279,270
Weighted average number of ordinary shares outstanding, diluted	883,202,412	991,715,849	1,038,617,910

Basic net (loss)/income per share attributable to Lizhi Inc.’s ordinary shareholders	(0.27)	(0.13)	0.08
Diluted net (loss)/income per share attributable to Lizhi Inc.’s ordinary shareholders	(0.27)	(0.13)	0.08

Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

7.Leases

The Group’s operating leases mainly related to offices facilities and staff quarters. As of December 31, 2021 and 2022, the Group recognized the following items related to operating leases on its consolidated balance sheet:


	December 31, 2021		December 31, 2022
	RMB		RMB
Operating lease ROU assets	28,941		25,116
Operating lease liabilities, non-current	(17,076)		(8,195)
Operating lease liabilities, current	(13,929)		(18,372)
Total operating lease liabilities	(31,005)		(26,567)
Weighted average remaining lease term	2.5 years		1.7 years
Weighted average discount rate	7.0	%	6.3	%

The components of lease cost for the years ended December 31, 2020, 2021 and 2022 were as follows:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Operating lease cost	8,569	10,329	17,284
Short-term lease cost	7,456	9,353	10,974
Total lease cost	16,025	19,682	28,258

No lease cost was capitalized as part of the cost of another assets.

Supplemental cash flow information related to the operating leases was as follows:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cash payments for operating leases	8,867	9,786	17,910
Right-of-use assets obtained in exchange for operating lease liabilities	12,851	34,988	13,505

A summary of maturity of operating lease liabilities under the Group’s non-cancellable operating leases as of December 31, 2022 is as follows:


		RMB
2023		19,527
2024		7,399
2025		1,121
Total future lease payments		28,047
Impact of discounting remaining lease payments		(1,480)
Total lease liabilities		26,567

The increase of operating lease assets obtained in exchange for operating lease liabilities in 2022 was mainly due to the renewal of lease agreements that expired , and several new lease agreements signed by the Group in 2022. As of December 31, 2021 and 2022, the Group had no operating leases that had not yet commenced.

Restricted Net Assets

12 Months Ended

Dec. 31, 2022

Restricted Net Assets

Restricted Net Assets

19.Restricted Net Assets

Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries, VIEs and subsidiaries of the VIEs can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the general reserve fund and the statutory surplus fund, respectively. The general reserve fund and the statutory surplus fund require that annual appropriations of 10% of net after-tax income should be set aside prior to payment of any dividends, until the reserve fund reached 50% of the registered capital of the respective company. As a result of these and other restrictions under PRC laws and regulations, the PRC subsidiaries, VIEs and subsidiaries of the VIEs are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion amounted to approximately RMB129.7 million as of December 31, 2022. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIEs and subsidiaries of the VIEs for working capital and other funding purposes, nor any remaining, undistributed earnings existed in its PRC subsidiaries as of December 31, 2022, the Company may in the future require additional cash resources from its PRC subsidiaries, VIEs and subsidiaries of the VIEs due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to the Company’s shareholders, if any.

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
CONDENSED STATEMENTS OF CASH FLOWS
Net cash generated from/(used in) operating activities	¥ 136,300	$ 19,759	¥ (40,426)	¥ 39,996
Net cash used in investing activities
Net cash (used in)/generated from investing activities	(122,783)	(17,803)	52,101	(94,559)
Net cash generated from financing activities
Proceeds from issuance of ordinary shares, net			183,188	259,043
Proceeds from exercise of vested share options	5	1	3	2
Net cash generated from financing activities	4,771	692	212,682	298,046
Effect of exchange rate changes on cash and cash equivalents	22,812	3,306	(6,063)	(7,038)
Net increase in cash, cash equivalents and restricted cash	41,067	5,954	218,294	236,445
Cash, cash equivalents and restricted cash at beginning of the year	537,448	77,923	319,154	82,709
Cash, cash equivalents and restricted cash at end of the year	578,515	$ 83,877	537,448	319,154
Parent company
CONDENSED STATEMENTS OF CASH FLOWS
Net cash generated from/(used in) operating activities	(11,752)		(15,728)	(7,745)
Net cash used in investing activities
Cash paid for investments in subsidiaries	(50,204)		(83,661)	(120,281)
Other investing activities	(91,022)
Cash repayment from Group companies	3,677
Net cash (used in)/generated from investing activities	(137,549)		(83,661)	(120,281)
Net cash generated from financing activities
Proceeds from issuance of ordinary shares, net			183,188	259,043
Cash transferred from subsidiaries to parent company for reorganization				16,683
Proceeds from exercise of vested share options	5		3	2
Net cash generated from financing activities	5		183,191	275,728
Effect of exchange rate changes on cash and cash equivalents	18,190		(4,291)	(4,871)
Net increase in cash, cash equivalents and restricted cash	(131,106)		79,511	142,831
Cash, cash equivalents and restricted cash at beginning of the year	224,779		145,268	2,437
Cash, cash equivalents and restricted cash at end of the year	¥ 93,673		¥ 224,779	¥ 145,268

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Operating expenses:
Selling and marketing expenses	¥ (259,618)	$ (37,641)	¥ (386,204)	¥ (142,734)
General and administrative expenses	(106,727)	(15,474)	(104,617)	(88,856)
Total operating expenses	(649,694)	(94,197)	(755,527)	(456,919)
Other expenses:
Others, net	1,944	282	(479)	(3,975)
Net (loss)/income	86,504	12,542	(127,250)	(82,184)
Accretions to preferred shares redemption value				(154,066)
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	86,517	12,544	(127,250)	(236,250)
Net (loss)/income	86,504	12,542	(127,250)	(82,184)
Other comprehensive (loss)/income:
Foreign currency translation adjustments	24,314	3,525	(7,848)	(6,338)
Total other comprehensive (loss)/income	24,314	3,525	(7,848)	(6,338)
Total comprehensive (loss)/income	110,818	16,067	(135,098)	(88,522)
Accretions to preferred shares redemption value				(154,066)
Comprehensive (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	110,831	$ 16,069	(135,098)	(242,588)
Parent company
Operating expenses:
Selling and marketing expenses	(1,514)		(1,452)	(1,554)
General and administrative expenses	(14,452)		(17,558)	(14,321)
Total operating expenses	(15,966)		(19,010)	(15,875)
Other expenses:
(Loss)/income from subsidiaries	100,300		(109,046)	(67,158)
Others, net	2,183		806	849
Net (loss)/income	86,517		(127,250)	(82,184)
Accretions to preferred shares redemption value				(154,066)
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	86,517		(127,250)	(236,250)
Net (loss)/income	86,517		(127,250)	(82,184)
Other comprehensive (loss)/income:
Foreign currency translation adjustments	24,314		(7,848)	(6,338)
Total other comprehensive (loss)/income	24,314		(7,848)	(6,338)
Total comprehensive (loss)/income	110,831		(135,098)	(88,522)
Accretions to preferred shares redemption value				(154,066)
Comprehensive (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	¥ 110,831		¥ (135,098)	¥ (242,588)

Net (Loss)/Income per Share - The computation of basic and diluted net loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Numerator:
Net (loss)/income	¥ 86,504	$ 12,542	¥ (127,250)	¥ (82,184)
Less: accretions to preferred shares redemption value \| ¥				(154,066)
Less: net loss attributable to the non-controlling interest shareholders	(13)	(2)
Net (loss)/income attributable to the Lizhi Inc.'s ordinary shareholders	¥ 86,517	$ 12,544	¥ (127,250)	¥ (236,250)
Denominator:
Weighted average number of ordinary shares outstanding, basic	1,036,485,949	1,036,485,949	991,715,849	883,202,412
Share options	852,691	852,691
Restricted shares	1,279,270	1,279,270
Weighted average number of ordinary shares outstanding, diluted	1,038,617,910	1,038,617,910	991,715,849	883,202,412
Basic net (loss)/income per share attributable to Lizhi Inc.'s ordinary shareholders \| (per share)	¥ 0.08	$ 0.01	¥ (0.13)	¥ (0.27)
Diluted net (loss)/income per share attributable to Lizhi Inc.'s ordinary shareholders \| (per share)	¥ 0.08	$ 0.01	¥ (0.13)	¥ (0.27)

Significant Accounting Policies - Summary of Finite Lived Intangible Assets Useful Lives (Details)	12 Months Ended
	Dec. 31, 2022
Copyright \| Minimum
Intangible Assets
Finite-lived intangible asset, useful life	1 year
Copyright \| Maximum
Intangible Assets
Finite-lived intangible asset, useful life	3 years
Software \| Minimum
Intangible Assets
Finite-lived intangible asset, useful life	1 year
Software \| Maximum
Intangible Assets
Finite-lived intangible asset, useful life	5 years
Trademark and others \| Minimum
Intangible Assets
Finite-lived intangible asset, useful life	3 years
Trademark and others \| Maximum
Intangible Assets
Finite-lived intangible asset, useful life	5 years

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Cash flows from operating activities:
Net (loss)/income	¥ 86,504	$ 12,542	¥ (127,250)	¥ (82,184)
Adjustment to reconcile net (loss)/income to net cash generated from/(used in) operating activities:
Depreciation of property, equipment and leasehold improvement	18,100	2,618	19,225	17,677
Amortization of intangible assets	1,202	174	1,686	1,593
Amortization of right-of-use assets	14,557	2,111	10,329	8,569
Foreign exchange losses	1,052	153	738	836
Investment income	(331)	(48)		(1,241)
Interest expense	217	31		2,395
Share-based compensation	29,233	4,238	37,359	50,741
(Gains)/losses on disposal of property equipment and software	105	15		(28)
Changes in operating assets and liabilities:
Accounts receivable	3,225	468	1,903	(5,382)
Prepayments and other current assets	4,012	582	(15,935)	(4,989)
Accounts payable	(26,961)	(3,909)	2,526	5,968
Deferred revenue	15,020	2,178	3,656	2,471
Salary and welfare payable	11,505	1,668	29,998	26,393
Taxes payable	537	78	1,691	6,044
Lease liabilities	(15,169)	(2,199)	(8,279)	(8,555)
Accrued expenses and other current liabilities	(5,997)	(869)	2,886	14,277
Other non-current liabilities	(500)	(72)	(959)	5,411
Net cash generated from/(used in) operating activities	136,300	19,759	(40,426)	39,996
Cash flows from investing activities:
Purchase of property, equipment and leasehold improvement	(11,691)	(1,695)	(20,075)	(21,246)
Purchase of intangible assets	(149)	(22)	(855)	(1,759)
Purchase of short-term investments	(191,022)	(27,696)		(86,305)
Maturities of short-term investments	80,000	11,599	73,022	14,505
Net cash received from disposal of property, equipment and leasehold improvement	79	11	9	246
Net cash (used in)/generated from investing activities	(122,783)	(17,803)	52,101	(94,559)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares, net			183,188	259,043
Proceeds from exercise of vested share options	5	1	3	2
Proceeds from short-term loans	72,015	10,441	49,248	69,942
Repayments of short-term loans	(67,249)	(9,750)	(19,757)	(30,941)
Net cash generated from financing activities	4,771	692	212,682	298,046
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	22,812	3,306	(6,063)	(7,038)
Net increase in cash, cash equivalents and restricted cash	41,067	5,954	218,294	236,445
Cash, cash equivalents and restricted cash at beginning of the year	537,448	77,923	319,154	82,709
Cash, cash equivalents and restricted cash at end of the year	578,515	83,877	537,448	319,154
Supplemental disclosures of cash flow information:
Cash paid for interest expense	(2,227)	(323)	(3,141)	(1,888)
Income taxes paid	¥ (100)	$ (15)	¥ (924)
Accretions to preferred shares redemption value				¥ 154,066

Significant Accounting Policies - Summary of revenue by type of service (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Segment Information
Total	¥ 2,185,266	$ 316,834	¥ 2,119,514	¥ 1,502,908
Audio entertainment
Segment Information
Total	2,174,314		2,101,475	1,481,120
Podcast, advertising and others
Segment Information
Total	¥ 10,952		¥ 18,039	¥ 21,788

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Significant Accounting Policies

2.Significant Accounting Policies

Basis of presentation

Principles of consolidation

All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation.

2.Significant Accounting Policies (Continued)

Use of estimates

Functional currency and foreign currency translation

Convenience Translation

Fair value measurements

●	Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

2.	Significant Accounting Policies (Continued)

Fair value measurements (Continued)

●

●	Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

See Note 18 for additional information relating to fair value measurements as of December 31, 2022.

Cash and cash equivalents

The Group had no lien arrangements during the years ended December 31, 2020, 2021 and 2022.

Restricted cash

i)Short-term investments

2.	Significant Accounting Policies (Continued)

Accounts receivable

As of December 31, 2022, the Group was not yet required to adopt the expected credit loss model for estimating the allowance for doubtful accounts. See Note 2(dd) for additional information.

Property, equipment and leasehold improvement, net


Electronic equipment		3 years
Furniture and office equipment		5 years
Vehicles		4 years
Leasehold improvement		shorter of expected lives of leasehold improvement and lease term

l)Intangible assets, net


Copyright		1-3 years
Software		1-5 years
Trademark and others		3-5 years

Impairment of long-lived assets

2.Significant Accounting Policies (Continued)

Revenue recognition

The Group’s revenues comprise audio entertainment revenue, podcast, advertising and other revenue.

The following table summarizes the revenue by type of service provided by the Group:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Audio entertainment	1,481,120	2,101,475	2,174,314
Podcast, advertising and others	21,788	18,039	10,952
Total	1,502,908	2,119,514	2,185,266

Audio entertainment revenue

2.Significant Accounting Policies (Continued)

Revenue recognition (Continued)

Podcast revenue

Contract liabilities

Advertising revenue

2.	Significant Accounting Policies (Continued)

Revenue recognition (Continued)

Practical Expedients

The Group has used the following practical expedients as allowed under generally accepted accounting principles in the U.S.:

(i)

(ii)

(iii)

Costs to obtain a contract with a customer are expensed as incurred when the amortization period is estimated to be one year or less.

Deferred revenue

Cost of revenue

Research and development expenses

Selling and marketing expenses

2.	Significant Accounting Policies (Continued)

Leases

The Group’s lease agreements contain both lease and non-lease components, which are accounted for separately based on their relative standalone price.

Government grants

2.	Significant Accounting Policies (Continued)

Share-based compensation

Share-based compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares, restricted shares and restricted share units.

2.	Significant Accounting Policies (Continued)

Employee benefits

PRC Contribution Plan

Taxation

Income taxes

Uncertain tax positions

Related parties

2.	Significant Accounting Policies (Continued)

Net (loss)/income per share

Statutory reserves

For the years ended December 31, 2020, 2021 and 2022, appropriations to general reserve fund and statutory surplus fund amounted to nil, nil and RMB0.5 million, respectively.

aa)

Comprehensive (loss)/income

bb)

Segment reporting

2.	Significant Accounting Policies (Continued)

cc)

Concentration and credit risk

Advertising and promotional service providers


	For the year ended December 31,
	2020		2021		2022
Total number of advertising and promotional service providers	203		198		182
Number of service providers that each accounted for 10% or more of the Group’s advertising and promotional expenses	3		2		2
Total percentage of the Group’s advertising and promotional expenses that were paid to these service providers who each accounted for 10% or more of the Group’s advertising and promotional service expenses	38.1	%	44.9	%	35.7	%

Credit risk

Major customers for advertising business


	December 31,		December 31,
	2021		2022
Customer A	87.3	%	71.6	%
Customer B	—		27.8	%

2.	Significant Accounting Policies (Continued)

dd)

Recently issued accounting pronouncements

Taxation

12 Months Ended

Dec. 31, 2022

Taxation

Taxation

8.Taxation

a)Income taxes

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company in the Cayman Islands to its shareholders, no Cayman Islands withholding tax will be imposed.

British Virgin Islands

Under the current laws of the British Virgin Islands, entities incorporated in British Virgin Islands are exempted from income tax on their foreign-derived incomes in the BVI. There are no withholding taxes in the BVI.

Singapore

Under the Singapore tax laws, subsidiaries in Singapore are subject to a unified 17% tax rate, except for certain entities that are entitled to preferential tax treatments, and there are no withholding taxes in Singapore on remittance of dividends. For the years ended December 31, 2020, 2021 and 2022, the Company’s overseas entity recognized income tax expense amounted to RMB1.0 million, RMB0.3 million and RMB0.1 million, respectively, for the assessable profits base on the existing legislation, interpretation and practice of Singapore.

Hong Kong

Subsidiaries incorporated in Hong Kong are subject to Hong Kong profits tax at a two-tiered regime under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million. As an anti-avoidance measure, a group of “connected entities” can only nominate one entity within the Group to enjoy the reduced tax rate for a given year of assessment.

China

Under the Enterprise Income Tax Law of the PRC, the Company’s Chinese subsidiaries, VIEs and subsidiaries of the VIEs are subject to an income tax of 25%, except for Guangzhou Lizhi and Guangzhou Huanliao. Due to their current status of entitled High and New Technology Enterprise (“HNTE”), Guangzhou Lizhi enjoys a preferential tax rate of 15% starting from 2017 and Guangzhou Huanliao enjoys a preferential tax rate of 15% starting from 2021, respectively. This status is subject to annual evaluation and a requirement that Guangzhou Lizhi and Guangzhou Huanliao reapply for HNTE status every three years.

8.	Taxation (Continued)

a)Income taxes (Continued)

The following table presents a reconciliation of the differences between the statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2020, 2021 and 2022:


	For the year ended December 31,
	2020	2021	2022
	%	%	%
Statutory income tax rate of the PRC	25.0	25.0	25.0
Tax rate difference from preferential tax treatments and statutory rate in other jurisdictions	(16.3)	(16.5)	(0.1)
Effect of withholding taxes	—	(0.3)	—
Permanent differences⁽¹⁾	16.9	26.6	(33.4)
Change in valuation allowances	(26.8)	(35.2)	8.7
Effective income tax rate	(1.2)	(0.4)	0.2

(1)	The permanent differences mainly consist of additional super deduction for research and development expenditures, and certain non-deductible expenses.

As of December 31, 2022, certain entities of the Company had net operating tax loss carry forwards as follows:


		RMB

Loss expiring in 2023		3,238
Loss expiring in 2024		14,186
Loss expiring in 2025		18,996
Loss expiring in 2026		43,579
Loss expiring in 2027		28,366
Loss expiring in 2028		47,863
Loss expiring in 2029		156,879
Loss expiring in 2030		156,066
Loss expiring in 2031		207,664
Loss expiring in 2032		14,027
		690,864

b)Deferred tax assets and liabilities

The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets as of December 31, 2021 and 2022:


	December 31, 2021	December 31, 2022
	RMB	RMB
Deferred tax assets:
Net operating tax loss carry forwards	112,248	108,601
Advertising expenses in excess of deduction limit	63	—
Deferred revenue	527	—
Total deferred tax assets	112,838	108,601
Less: valuation allowances	(112,838)	(108,601)
Net deferred tax assets	—	—

8.	Taxation (Continued)

b)Deferred tax assets and liabilities (Continued)

The Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets of certain entities of the Group is more likely than not to be realized. Consequently, the Group has provided full valuation allowances on the related deferred tax assets. The following table sets forth the movement of the aggregate valuation allowances for deferred tax assets for the years presented:


	Balance at January 1	Movement*	Balance at December 31
	RMB	RMB	RMB
2020	(80,320)	5,713	(74,607)
2021	(74,607)	(38,231)	(112,838)
2022	(112,838)	4,237	(108,601)

*	The movement in valuation allowances were due to the changes of deferred tax assets recognized for net operating tax loss carry forwards, advertising expenses in excess of deduction limit and deferred revenue.

c)Withholding income tax

The enterprise income tax (“EIT”) Law also imposes a withholding income tax of 10% on dividends distributed by a foreign-invested entity (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate that may be lowered to 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The State Administration of Taxation (“SAT”) further promulgated Circular 601 on October 27, 2009, which provides that tax treaty benefits will be denied to “conduit” or shell companies without business substance and that a beneficial ownership analysis will be used based on a “substance-over-form” principle to determine whether or not to grant the tax treaty benefits. Further, the SAT promulgated the Notice on Issues Related to the “Beneficial Owner” in Tax Treaties in February 2018, which requires the “beneficial owner” to have ownership and the right to dispose of the income or the rights and properties giving rise to the income and generally engage in substantive business activities and sets forth certain detailed factors in determining the “beneficial owner” status.

To the extent that subsidiaries, VIEs and subsidiaries of the VIEs of the Group have undistributed earnings, the Company will accrue appropriate expected withholding tax associated with repatriation of such undistributed earnings. As of December 31, 2021 and 2022, the Company did not record any such withholding tax of its subsidiaries, the VIEs and subsidiaries of the VIEs in the PRC as they are still in accumulated deficit position.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Cost of Revenues - Summary of Cost of Revenues (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Cost Of Revenues
Revenue sharing fees	¥ 1,351,096		¥ 1,357,270	¥ 1,031,903
Salary and welfare benefits	40,653		52,268	41,159
Payment handling costs	22,899		32,506	22,692
Bandwidth costs	32,795		30,889	11,226
Share-based compensation expense	29,233	$ 4,238	37,359	50,741
Others	14,426		18,088	12,909
Total	1,468,921	212,974	1,502,505	1,134,678
Cost of revenues
Cost Of Revenues
Share-based compensation expense	¥ 7,052	$ 1,022	¥ 11,484	¥ 14,789

The aggregate cost of goods produced and sold and services rendered during the reporting period.

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Taxation - Summary of Income Tax Reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Taxation
Statutory income tax rate of the PRC	25.00%	25.00%	25.00%
Tax rate difference from preferential tax treatments and statutory rate in other jurisdictions	(0.10%)	(16.50%)	(16.30%)
Effect of withholding taxes		(0.30%)
Permanent differences	(33.40%)	26.60%	16.90%
Change in valuation allowances	8.70%	(35.20%)	(26.80%)
Effective income tax rate	0.20%	(0.40%)	(1.20%)

Cost of Revenues

12 Months Ended

Dec. 31, 2022

Cost Of Revenues

Cost of Revenues

12.Cost of Revenues

The following is a summary of cost of revenues for the years ended December 31, 2020, 2021 and 2022:


	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenue sharing fees	1,031,903	1,357,270	1,351,096
Salary and welfare benefits	41,159	52,268	40,653
Payment handling costs	22,692	32,506	22,899
Bandwidth costs	11,226	30,889	32,795
Share-based compensation expense	14,789	11,484	7,052
Others	12,909	18,088	14,426
Total	1,134,678	1,502,505	1,468,921

Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses And Other Current Liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accrued Expenses and Other Current Liabilities.
Advertising and promotional expenses	¥ 33,048	¥ 32,849
Professional service fees	5,237	7,690
Payable for property, equipment and leasehold improvement, net	871	681
Accrued sales rebates for advertising business	1,360	2,660
Provision for litigation contingencies	3,156	4,863
Others	3,950	4,743
Total	¥ 47,622	¥ 53,486

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares
Liabilities	¥ 383,673	¥ 388,031
Ordinary shares, shares authorized	1,500,000,000
Class A ordinary shares
Ordinary shares, shares authorized	1,268,785,000	1,268,785,000
Ordinary shares, shares issued	818,962,260	798,962,260
Ordinary shares, shares outstanding	803,607,050	782,801,250
Class B ordinary shares
Ordinary shares, shares authorized	231,215,000	231,215,000
Ordinary shares, shares issued	231,215,000	231,215,000
Ordinary shares, shares outstanding	231,215,000	231,215,000
Variable Interest Entity Primary Beneficiary
Liabilities \| ¥	¥ 699,185	¥ 709,933
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member]
Liabilities \| ¥	¥ 319,900	¥ 332,600

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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Schedule of accounts receivable, net

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2022

Accounts Receivable, Net


	December 31, 2021	December 31, 2022
	RMB	RMB
Accounts receivable, gross:	6,458	3,233
Less: allowance for doubtful accounts	—	—
Accounts receivable, net	6,458	3,233

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Compensation

Summary of share-based compensation


	For the year ended December 31,
	2020	2021	2022	2022
	RMB	RMB	RMB	US$
Cost of revenues	14,789	11,484	7,052	1,022
Selling and marketing expenses	2,370	3,431	2,259	328
General and administrative expenses	16,128	12,496	9,659	1,400
Research and development expenses	17,454	9,948	10,263	1,488
Total	50,741	37,359	29,233	4,238

summary of the company's stock options activities



				Weighted average	Remaining	Aggregated
	Employees	Consultants	Total	exercise price	contractual life	intrinsic value
	(in thousands)	(in thousands)	(in thousands)	US$		RMB

Outstanding at January 1, 2020	11,821	500	12,321	0.0001	2.75	43,011
Granted	32,932	363	33,295	0.0001	—	—
Exercised	(3,235)	—	(3,235)	0.0001	—	—
Forfeited	(3,714)	—	(3,714)	0.0001	—	—
Outstanding at December 31, 2020	37,804	863	38,667	0.0001	3.09	48,921
Exercisable as of December 31, 2020	5,002	250	5,252	0.0001	—	6,644

Outstanding at January 1, 2021	37,804	863	38,667	0.0001	3.09	48,921
Granted	32,389	—	32,389	0.0001	—	—
Exercised	(4,925)	—	(4,925)	0.0001	—	—
Forfeited	(15,571)	—	(15,571)	0.0001	—	—
Outstanding at December 31, 2021	49,697	863	50,560	0.0001	2.56	29,786
Exercisable as of December 31, 2021	8,216	341	8,557	0.0001	—	5,041

Outstanding at January 1, 2022	49,697	863	50,560	0.0001	2.56	29,786
Granted	24,924	—	24,924	0.0001	—	—
Exercised	(7,894)	—	(7,894)	0.0001	—	—
Forfeited	(6,076)	—	(6,076)	0.0001	—	—
Outstanding at December 31, 2022	60,651	863	61,514	0.0001	2.98	13,452
Exercisable as of December 31, 2022	16,421	682	17,103	0.0001	—	3,740

Summary of restricted shares activities


		Weighted-Average
	Number of Restricted Shares	Grant Date
	Granted	Fair Value
	(in thousands)	US$

January 1, 2020	24,928	0.23
Awarded	2,607	0.27
Forfeited	(7,821)	0.26
Vested	(9,857)	0.22
Outstanding at December 31, 2020	9,857	0.23

January 1, 2021	9,857	0.23
Awarded	—	—
Forfeited	—	—
Vested	(6,232)	0.24
Outstanding at December 31, 2021	3,625	0.21

January 1, 2022	3,625	0.21
Awarded	—	—
Forfeited	—	—
Vested	(3,625)	0.21
Outstanding at December 31, 2022	—	—


	Number of Restricted Share	Weighted-Average
	Units Granted	Grant Date Fair Value
	(in thousands)	US$

January 1, 2020	—	—
Awarded	9,611	0.22
Forfeited	(5,101)	0.24
Vested	—	—
Outstanding at December 31, 2020	4,510	0.20

January 1, 2021	4,510	0.20
Awarded	13,080	0.30
Forfeited	(2,308)	0.20
Vested	(3,018)	0.19
Outstanding at December 31, 2021	12,264	0.31

January 1, 2022	12,264	0.31
Awarded	2,193	0.07
Forfeited	(2,612)	0.33
Vested	(3,649)	0.29
Outstanding at December 31, 2022	8,196	0.29

Organization and Principal Activities - Summary of Variable Interest Entities (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2019 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 568,192		¥ 533,293		$ 82,400
Restricted cash	10,323		4,155		1,497
Accounts receivable, net	3,233		6,458		469
Prepayments and other current assets	30,391		33,604		4,406
Total current assets	723,492		577,510		104,897
Short-term investments	111,353				16,145
Non-current assets:
Property, equipment and leasehold improvement, net	26,546		33,391		3,849
Intangible assets, net	1,183		2,245		172
Other non-current assets			799
Total non-current assets	52,845		65,376		7,662
TOTAL ASSETS	776,337		642,886		112,559
Current liabilities:
Accounts payable	53,832		80,793		7,805
Salary and welfare payable	136,837		123,075		19,840
Short-term loans	73,765		68,999		10,694
Lease liabilities due within one year	18,372		13,929		2,664
Accrued expenses and other current liabilities	47,622		53,486		6,904
Total current liabilities	371,526		366,503		53,866
Non-current liabilities:
Lease liabilities	8,195		17,076		1,188
Total non-current liabilities	12,147		21,528		1,761
TOTAL LIABILITIES	383,673		388,031		55,627
TOTAL LIZHI Inc.'s SHAREHOLDERS' EQUITY	392,677		254,855		56,934
Non-controlling interests	(13)				(2)
TOTAL SHAREHOLDERS' EQUITY	392,664		254,855	¥ 169,191	56,932	¥ (1,998,431)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	776,337		642,886		$ 112,559
Net revenues	2,185,266	$ 316,834	2,119,514	1,502,908
Net (loss)/income	86,504	12,542	(127,250)	(82,184)
Net cash generated from/(used in) operating activities	136,300	19,759	(40,426)	39,996
Net cash (used in)/generated from investing activities	(122,783)	(17,803)	52,101	(94,559)
Net cash generated from/(used in) financing activities	4,771	$ 692	212,682	298,046
Variable Interest Entity Primary Beneficiary
Current assets:
Cash and cash equivalents	302,103		191,549
Restricted cash			3,023
Accounts receivable, net	902		1
Prepayments and other current assets	21,365		20,245
Amount due from the subsidiaries of the Group	781		197
Total current assets	325,151		215,015
Non-current assets:
Property, equipment and leasehold improvement, net	18,390		28,580
Intangible assets, net	1,104		2,245
Right-of-use assets, net	7,087		9,653
Other non-current assets			799
Total non-current assets	26,581		41,277
TOTAL ASSETS	351,732		256,292
Current liabilities:
Accounts payable	50,735		70,639
Deferred revenue	27,718		19,118
Salary and welfare payable	120,563		116,204
Taxes payable	4,112		4,940
Short-term loans	66,800		68,999
Lease liabilities due within one year	7,021		5,767
Accrued expenses and other current liabilities	42,770		42,803
Amount due to the subsidiaries of the Group	379,306		377,331
Total current liabilities	699,025		705,801
Non-current liabilities:
Lease liabilities	160		4,132
Total non-current liabilities	160		4,132
TOTAL LIABILITIES	699,185		709,933
Net revenues	2,155,620		1,975,758	1,456,190
Net (loss)/income	106,188		(81,551)	(84,441)
Net cash generated from/(used in) operating activities	147,067		(17,723)	17,425
Net cash (used in)/generated from investing activities	(5,576)		52,323	(94,559)
Net cash generated from/(used in) financing activities	(33,960)		7,298	187,752
Net increase in cash, cash equivalents and restricted cash	¥ 107,531		¥ 41,898	¥ 110,618

Restricted Net Assets - (Details) ¥ in Millions	12 Months Ended
Restricted Net Assets - (Details) ¥ in Millions	Dec. 31, 2022 CNY (¥)
Restricted Net Assets
Annual appropriation to reserve percent	10.00%
Percentage of capital	50.00%
Restricted assets	¥ 129.7

Share-based Compensation - Summary of Company's stock options activities (Details) ¥ in Thousands, shares in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 CNY (¥) shares
Share-based Compensation
Number of Options - Beginning balance	50,560		38,667		12,321
Number of Options - Granted	24,924		32,389		33,295
Number of Options - Exercised	(7,894)		(4,925)		(3,235)
Number of Options - Forfeited	(6,076)		(15,571)		(3,714)
Number of Options - Ending balance	61,514		50,560		38,667		12,321
Number of Options - Exercisable	17,103	17,103	8,557	8,557	5,252	5,252
Weighted average exercise price, Beginning balance \| $ / shares		$ 0.0001		$ 0.0001		$ 0.0001
Weighted average exercise price, Granted \| $ / shares		0.0001		0.0001		0.0001
Weighted average exercise price, Exercised \| $ / shares		0.0001		0.0001		0.0001
Weighted average exercise price, Forfeited \| $ / shares		0.0001		0.0001		0.0001
Weighted average exercise price, Ending balance \| $ / shares		0.0001		0.0001		0.0001
Options, Exercisable, Weighted Average Exercise Price \| $ / shares		$ 0.0001		$ 0.0001		$ 0.0001
Options, Outstanding, Weighted Average Remaining Contractual Term	2 years 11 months 23 days		2 years 6 months 21 days		3 years 1 month 2 days		2 years 9 months
Aggregated intrinsic value, Beginning balance \| ¥	¥ 29,786		¥ 48,921		¥ 43,011
Aggregated intrinsic value, Ending balance \| ¥	13,452		29,786		48,921		¥ 43,011
Aggregated intrinsic value, Option exercisable \| ¥	¥ 3,740		¥ 5,041		¥ 6,644
Employees
Share-based Compensation
Number of Options - Beginning balance	49,697		37,804		11,821
Number of Options - Granted	24,924		32,389		32,932
Number of Options - Exercised	(7,894)		(4,925)		(3,235)
Number of Options - Forfeited	(6,076)		(15,571)		(3,714)
Number of Options - Ending balance	60,651		49,697		37,804		11,821
Number of Options - Exercisable	16,421	16,421	8,216	8,216	5,002	5,002
Consultants
Share-based Compensation
Number of Options - Beginning balance	863		863		500
Number of Options - Granted					363
Number of Options - Ending balance	863		863		863		500
Number of Options - Exercisable	682	682	341	341	250	250

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

12 Months Ended

Dec. 31, 2022

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

Rules 12-04(a) and 4-08(e)(3) of Regulation S-X require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of and for the same periods for which the audited consolidated financial statements have been presented when the restricted net assets of the consolidated subsidiaries together exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year.

The following condensed financial statements of the Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Company used the equity method to account for its investment in its subsidiaries. Such investment is presented on the separate condensed balance sheets of the Company as “Deficit in subsidiaries”. The Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Company’s (loss)/income from its subsidiaries is reported as “(Loss)/income from subsidiaries” in the condensed financial statements.

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (CONTINUED)

As of December 31, 2021 and 2022, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company.


CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2021 AND 2022
	As of December 31,
	2021	2022
	RMB	RMB

ASSETS
Current assets:
Cash and cash equivalents	224,779	93,673
Short-term investments	—	91,339
Amounts due from Lizhi Group Companies	278,553	359,675
Prepayments and other current assets	3,417	2,313
Total current assets	506,749	547,000
Non-current assets:
Deficit in subsidiaries	(223,293)	(130,257)
Total non-current assets	(223,293)	(130,257)
TOTAL ASSETS	283,456	416,743
LIABILITIES
Current liabilities:
Salary and welfare payable	1,330	2,487
Accrued expenses and other current liabilities	3,021	1,683
Amounts due to Lizhi Group Companies	19,798	15,944
Total current liabilities	24,149	20,114

Non-current liabilities:
Other non-current liabilities	4,452	3,952
Total non-current liabilities	4,452	3,952
TOTAL LIABILITIES	28,601	24,066

SHAREHOLDERS’ EQUITY:
Class A ordinary shares (US$0.0001 par value, 1,268,785,000 shares authorized, 798,962,260 shares issued and 782,801,250 shares outstanding as of December 31, 2021; 1,268,785,000 shares authorized, 818,962,260 shares issued and 803,607,050 shares outstanding as of December 31, 2022).	530	543
Class B ordinary shares (US$0.0001 par value, 231,215,000 shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively).	168	168
Treasury stock	(11)	(10)
Other shareholders’ equity	254,168	391,976
TOTAL LIZHI Inc.’s SHAREHOLDERS’ EQUITY	254,855	392,677
TOTAL LIABILITIES AND LIZHI Inc.’s SHAREHOLDERS’ EQUITY	283,456	416,743

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (CONTINUED)


CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME FOR THE YEARS ENDED DECEMBER 31, 2020, 2021 AND 2022
	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

Operating expenses:
Selling and marketing expenses	(1,554)	(1,452)	(1,514)
General and administrative expenses	(14,321)	(17,558)	(14,452)
Total operating expenses	(15,875)	(19,010)	(15,966)

Other expenses:
(Loss)/income from subsidiaries	(67,158)	(109,046)	100,300
Others, net	849	806	2,183
Net (loss)/income	(82,184)	(127,250)	86,517

Accretions to preferred shares redemption value	(154,066)	—	—
Net (loss)/income attributable to the Lizhi Inc.’s ordinary shareholders	(236,250)	(127,250)	86,517
Net (loss)/income	(82,184)	(127,250)	86,517
Other comprehensive (loss)/income:
Foreign currency translation adjustments	(6,338)	(7,848)	24,314
Total other comprehensive (loss)/income	(6,338)	(7,848)	24,314
Total comprehensive (loss)/income	(88,522)	(135,098)	110,831
Accretions to preferred shares redemption value	(154,066)	—	—
Total comprehensive (loss)/income to ordinary shareholders	(242,588)	(135,098)	110,831

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (CONTINUED)


CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020, 2021 AND 2022
	For the year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB

Net cash used in operating activities
	(7,745)	(15,728)	(11,752)
Net cash used in investing activities
Cash paid for investments in subsidiaries	(120,281)	(83,661)	(50,204)
Other investing activities	—	—	(91,022)
Cash repayment from Group companies	—	—	3,677
Net cash used in investing activities	(120,281)	(83,661)	(137,549)

Net cash generated from financing activities
Proceeds from issuance of ordinary shares, net	259,043	183,188	—
Cash transferred from subsidiaries to parent company for reorganization	16,683	—	—
Proceeds from exercise of vested share options	2	3	5
Net cash generated from financing activities	275,728	183,191	5


Effect of exchange rate changes on cash and cash equivalents	(4,871)	(4,291)	18,190

Net increase/(decrease) in cash and cash equivalents	142,831	79,511	(131,106)
Cash and cash equivalents at beginning of the year	2,437	145,268	224,779
Cash and cash equivalents at end of the year	145,268	224,779	93,673

Leases - Summary of Information Related To Operating Leases (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Leases
Operating lease ROU assets	¥ 25,116	$ 3,641	¥ 28,941
Operating lease liabilities-non-current	(8,195)	(1,188)	(17,076)
Operating lease liabilities-current	(18,372)	$ (2,664)	(13,929)
Total operating lease liabilities	¥ (26,567)		¥ (31,005)
Weighted average remaining lease term	1 year 7 months	1 year 7 months	2 years 6 months
Weighted average discount rate	6.30%	6.30%	7.00%

ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Parentheticals (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Ordinary shares, shares authorized	1,500,000,000
Class A ordinary shares
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	1,268,785,000	1,268,785,000
Ordinary shares, shares issued	818,962,260	798,962,260
Ordinary shares, shares outstanding	803,607,050	782,801,250
Class B ordinary shares
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	231,215,000	231,215,000
Ordinary shares, shares issued	231,215,000	231,215,000
Ordinary shares, shares outstanding	231,215,000	231,215,000
Parent company \| Class A ordinary shares
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	1,268,785,000	1,268,785,000
Ordinary shares, shares issued	818,962,260	798,962,260
Ordinary shares, shares outstanding	803,607,050	782,801,250
Parent company \| Class B ordinary shares
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	231,215,000	231,215,000
Ordinary shares, shares issued	231,215,000	231,215,000
Ordinary shares, shares outstanding	231,215,000	231,215,000

Fair Value Measurement - Summary of fair value, assets and liabilities measured on recurring basis (Details) - Dec. 31, 2022 - Recurring ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)
Fair value of net assets
Short-term investments	¥ 111,353	$ 16,145
Total	111,353	$ 16,145
Significant Other Observable Inputs (Level 2)
Fair value of net assets
Short-term investments	111,353
Total	¥ 111,353

Ordinary Shares

12 Months Ended

Dec. 31, 2022

Ordinary Shares

Ordinary Shares

13.Ordinary Shares

The authorized share capital of the Company was 1,500,000,000 shares comprising of (i) 1,268,785,000 Class A ordinary shares; (ii) 231,215,000 Class B ordinary shares. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion right. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. Upon any sale, transfer, assignment or disposition of any Class B ordinary shares by a holder thereof to any person who is not a Founder or an affiliate of a Founder, or upon a change of beneficial ownership of any Class B ordinary shares as a result of which any person who is not a Founder or an affiliate of a Founder becomes a beneficial owner of such Class B ordinary shares, each of such Class B ordinary shares will be automatically and immediately converted into one Class A ordinary share.

Prior to the completion of the IPO in January 2020, the Company issued several series of convertible redeemable preferred shares (collectively referred to as the “Preferred Shares”), these preferred shares have certain preferred rights and the Group has classified them in the mezzanine equity of the consolidated balance sheets. In addition, the Group records accretions on the Preferred Shares to the redemption value from the issuance dates to the earliest redemption dates. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. All series of Preferred Shares were automatically converted into Class A ordinary shares upon the Company’s IPO in January 2020. Accordingly, no additional accretion has been recorded since conversion and no mezzanine equity recorded since completion of the IPO.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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