| Leases |
7.
Leases
The
Group’s operating leases mainly related to offices facilities and staff quarters. As of December 31, 2024 and 2025, the Group recognized
the following items related to operating leases on its consolidated balance sheet:
Schedule
Of Operating Lease On Consolidated balance Sheet
| | |
December
31, 2024 | | |
December
31, 2025 | |
| | |
| RMB | | |
| RMB | |
| Operating
lease ROU assets | |
| 12,692 | | |
| 23,572 | |
| Lease liabilities, non-current | |
| (4,424 | ) | |
| (9,962 | ) |
| Lease liabilities,
current | |
| (8,240 | ) | |
| (14,619 | ) |
| Total lease liabilities | |
| (12,664 | ) | |
| (24,581 | ) |
| Weighted average remaining
lease term | |
| 1.6
years | | |
| 1.9
years | |
| Weighted
average discount rate | |
| 4.9 | % | |
| 4.90 | % |
The
components of lease cost for the years ended December 31, 2023, 2024 and 2025 were as follows:
Schedule
Of Lease Cost
| | |
2023 | | |
2024 | | |
2025 | |
| | |
For
the year ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Operating lease cost | |
| 16,903 | | |
| 17,460 | | |
| 15,263 | |
| Short-term lease cost | |
| 12,895 | | |
| 9,706 | | |
| 7,790 | |
| Total lease cost | |
| 29,798 | | |
| 27,166 | | |
| 23,053 | |
No
lease cost was capitalized as part of the cost of another asset.
SOUND
GROUP INC.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(All
amounts in thousands, except for share, ADS, per share and per ADS data)
7.
Leases (continued)
A
summary of maturity of lease liabilities under the Group’s non-cancellable operating leases as of December 31, 2025 is
as follows：
Schedule
of Summary Of Lease Liability
| | |
RMB | |
| 2026 | |
| 14,954 | |
| 2027 | |
| 10,409 | |
| 2028 | |
| 247 | |
| Total
future lease payments | |
| 25,610 | |
| Impact of discounting remaining lease payments | |
| (1,029 | ) |
| Total
lease liabilities | |
| 24,581 | |
A
summary of operating lease assets under the Group’s non-cancellable operating leases as of December 31, 2025 is as follows：
Schedule
of Summary Of Operating Lease Asset
| | |
RMB | |
| | |
| |
| Carrying
amount, beginning of year | |
| 12,692 | |
| Additions | |
| 27,255 | |
| Amortization | |
| (15,263 | ) |
| Sub-total | |
| 24,684 | |
| Less: impairment losses
(1) | |
| (1,112 | ) |
| Carrying
amount, end of year | |
| 23,572 | |
| (1) | | In 2025, The Company
entered into a sublease agreement at below-market rental rates for an office facility, which reduced the expected future cash flow attributable
to the underlying right-of-use asset, which of carrying amount was lower than the fair value estimated by using discounted cash flow
(inclusive of sublease income) based on market rental rates. The Company determined that the carrying amounts of the right-of-use asset
were no longer fully recoverable. As a result, the Company recognized an impairment loss of RMB1.1 million within operating expenses
in the consolidated statements of operations and comprehensive (loss)/income for the year ended December 31, 2025. |
SOUND
GROUP INC.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(All
amounts in thousands, except for share, ADS, per share and per ADS data)
|