Earnings release
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Smart Share Global Limited Announces Third Quarter 2024 Results March 6, 2025 POIs1 operated through network partner model reached 96.8% as of the end of the third quarter of 2024 Cumulative registered users2 reached 430.2 million as of the end of the third quarter of 2024 SHANGHAI, March 06, 2025 (GLOBE NEWSWIRE) -- Smart Share Global Limited (Nasdaq: EM) (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter ended September 30, 2024. HIGHLIGHTS FOR THE THIRD QUARTER OF 2024 As of September 30, 2024, the Company’s services were available in 1,274 thousand POIs, compared with 1,267 thousand as of June 30, 2024. As of September 30, 2024, the Company’s available-for-use power banks3 were 9.5 million. As of September 30, 2024, cumulative registered users reached 430.2 million, with 13.1 million newly registered users acquired during the quarter. Mobile device charging orders4 for the third quarter of 2024 was 148.1 million, compared with 176.5 million for the third quarter of 2023. As of September 30, 2024, 96.8% of POIs were operated under our network partner model, compared with 89.2% as of June 30, 2024. During the third quarter of 2024, the Company successfully completed its transition to the network partners model, accompanied by a retrospective review of the network partner model throughout the transition period. FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2024 Revenues were RMB490.8 million (US$69.9 million5) for the third quarter of 2024, representing a 20.0% decrease from the same period in 2023. The decrease was primarily due to the decrease in revenues generated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model. Mobile device charging revenues, which consist of revenues generated under both the direct and network partner models, decreased by 34.8% to RMB367.9 million (US$52.4 million) for the third quarter of 2024, from RMB564.2 million in the same period of 2023. Revenues generated under the network partner model, comprising of (i) mobile device charging solution fees, which increased by 12.2% year-over-year to RMB65.9 million, and (ii) power bank, cabinet and other related sales, which increased by 10.3% year-over-year to RMB243.9 million, increased by 10.7% to RMB309.8 million for the third quarter of 2024, from RMB280.0 million in the same period of 2023. The increase was primarily due to the increase in the number of POIs operated under the network partner model as part of the Company’s overall strategy of shifting towards the network partner model. Revenues generated under the direct model, comprising of mobile device charging service fees of RMB57.1 million and power bank sales of RMB0.9 million, decreased by 79.6% to RMB58.0 million for the third quarter of 2024, from RMB284.2 million in the same period of 2023. The decrease was primarily due to the decrease in the number of POIs operated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model. Other revenues, which primarily comprise of revenues from new business initiatives and advertising services, increased by 149.4% to RMB122.9 million (US$17.5 million) for the third quarter of 2024, from RMB49.3 million in the same period of 2023. The increase was primarily attributable to new business initiatives. Cost of revenues increased by 38.5% to RMB298.4 million (US$42.5 million) for the third quarter of 2024, from RMB215.5 million in the same period last year. The increase was primarily due to the increase in cost in association with the increase in new business initiatives and cost of cabinet sold. Research and development expenses decreased by 15.8% to RMB20.0 million (US$2.9 million) for the third quarter of 2024, from RMB23.8 million in the same period last year. The decrease was primarily due to the decrease in personnel related expenses. Sales and marketing expenses decreased by 51.8% to RMB142.6 million (US$20.3 million) for the third quarter of 2024 from RMB296.0 million in the same period last year. The decrease was primarily due to the decrease in incentive fees paid to location partners under the direct model and personnel related expenses. General and administrative expenses increased by 10.0% to RMB41.6 million (US$5.9 million) for the third quarter of 2024, compared to RMB37.8 million in the same period last year. The increase was primarily due to the increase in reserve for doubtful accounts in relation to the increasing contribution of the network partner model. Loss from operations for the third quarter of 2024 was RMB5.1 million (US$0.7 million), compared to an income from operations of RMB33.4 million in the same period last year. Net income for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income of RMB49.0 million in the same period last year. Non-GAAP adjusted net income for the third quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a non-GAAP adjusted net income of RMB54.2 million in the same period last year. Net income attributable to ordinary shareholders for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income attributable to ordinary shareholders of RMB49.0 million in the same period last year. As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.0 billion (US$432.0 million). SUPPLEMENTAL INFORMATION The table below sets forth the breakdown of mobile device charging revenue components based on the latest classification for the periods indicated: 2023Q3 2024Q2 2024Q3 thousands RMB thousands RMB thousands RMB Mobile device charging: Network Partner Model 279,960 292,505 309,837 Mobile device charging solution 58,759 61,508 65,935 Power bank, cabinet and other related sales 221,201 230,997 243,902 Direct Model 284,233 118,105 58,048
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Mobile device charging service 278,099 115,863 57,113 Power bank sales 6,134 2,242 935 Total mobile device charging 564,193 410,610 367,885 CORRECTIONS OF PREVIOUSLY ANNOUNCED INTERIM FINANCIAL INFORMATION AND PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F. The section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” sets forth the specific corrections made to previously announced interim financial information and previously issued financial statements. ABOUT SMART SHARE GLOBAL LIMITED Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is a leading provider of mobile device charging service in China with an extensive network of partners powered by its own advanced service platform. The Company provides mobile device charging service through its shared power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of September 30, 2024, the Company had 13,000 network partners and 9.5 million power banks in 1,274,000 POIs across more than 2,100 counties and county-level districts in China. CONTACT US Investor Relations Hansen Shi ir@enmonster.com SAFE HARBOR STATEMENT This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (“SEC”), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. NON-GAAP FINANCIAL MEASURE In evaluating its business, the Company considers and uses non-GAAP adjusted net income in reviewing and assessing its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that this non-GAAP financial measure helps identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects. Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and have limitations as analytical tools. The Company’s non-GAAP financial measure does not reflect all items of expenses that affect its operations and does not represent the residual cash flow available for discretionary expenditures. Further, the Company’s non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling its non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating performance. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release. Smart Share Global Limited Unaudited Consolidated Balance Sheets (In thousands, except for share and per share data, unless otherwise noted) December 31, 2023 September 30, 2024 September 30, 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 588,644 256,963 36,617 Restricted cash 173,246 114,291 16,286 Short-term investments 2,541,889 2,640,281 376,237 Accounts receivable, net 268,743 338,646 48,257 Inventory 106,530 162,508 23,157 Prepayments and other current assets 339,251 401,626 57,232 Total current assets 4,018,303 3,914,315 557,786 Non-current assets: Long-term restricted cash 20,000 20,000 2,850 Property, equipment and software, net 322,806 190,720 27,177 Right-of-use assets, net 16,353 9,010 1,284 Other non-current assets 20,469 6,759 963 Deferred tax assets, net 22,165 1,252 178 Total non-current assets 401,793 227,741 32,452
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Total assets 4,420,096 4,142,056 590,238 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts and notes payable 767,669 577,508 82,295 Salary and welfare payable 143,653 133,204 18,981 Taxes payable 230,763 207,414 29,556 Current portion of lease liabilities 7,399 3,585 511 Accruals and other current liabilities 336,959 352,341 50,209 Total current liabilities 1,486,443 1,274,052 181,552 Non-current liabilities: Non-current lease liabilities 7,641 5,090 725 Amounts due to related parties-non-current 1,000 1,000 142 Other non-current liabilities 195,585 215,780 30,748 Total non-current liabilities 204,226 221,870 31,615 Total liabilities 1,690,669 1,495,922 213,167 SHAREHOLDERS' EQUITY Ordinary shares 347 347 49 Treasury stock (5,549) (45,964) (6,549) Additional paid-in capital 11,791,570 11,748,257 1,674,113 Statutory reserves 16,593 16,593 2,364 Accumulated other comprehensive income 182,824 168,951 24,075 Accumulated deficit (9,256,358) (9,242,050) (1,316,981) Total shareholders' equity 2,729,427 2,646,134 377,071 Total liabilities and shareholders' equity 4,420,096 4,142,056 590,238 Smart Share Global Limited Unaudited Consolidated Statements of Comprehensive Income/ (Loss) (In thousands, except for share and per share data, unless otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ As corrected* Revenues: Mobile device charging 564,193 367,885 52,423 2,403,516 1,156,571 164,810 Others 49,273 122,898 17,513 68,511 194,341 27,693 Total revenues 613,466 490,783 69,936 2,472,027 1,350,912 192,503 Cost of revenues (215,461) (298,396) (42,521) (1,014,390) (685,733) (97,716) Research and development expenses (23,799) (20,042) (2,856) (63,894) (60,528) (8,625) Sales and marketing expenses (295,990) (142,614) (20,322) (1,258,883) (523,545) (74,605) General and administrative expenses (37,777) (41,563) (5,923) (96,535) (108,511) (15,463) Other operating (loss)/income (7,023) 6,763 964 (17,033) (4,030) (574) Income/(loss) from operations 33,416 (5,069) (722) 21,292 (31,435) (4,480) Interest and investment income 32,160 27,919 3,978 86,450 87,262 12,435 Interest expense to third parties - - - (4,228) - - Foreign exchange loss, net 4,299 5,700 812 (8,210) 2,597 370 Other (loss)/income, net (16) 19 3 (27) 87 12 Income before income tax expense 69,859 28,569 4,071 95,277 58,511 8,337 Income tax expense (20,849) (24,323) (3,466) (20,231) (44,203) (6,299) Net income 49,010 4,246 605 75,046 14,308 2,038 Net income attributable to ordinary shareholders of Smart Share Global Limited 49,010 4,246 605 75,046 14,308 2,038 Other comprehensive (loss)/income Foreign currency translation adjustments, net of nil tax (12,332) (22,136) (3,154) 38,090 (13,873) (1,977)
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Total comprehensive income/(loss) 36,678 (17,890) (2,549) 113,136 435 61 Comprehensive income/(loss) attributable to ordinary shareholders of Smart Share Global Limited 36,678 (17,890) (2,549) 113,136 435 61 Weighted average number of ordinary shares used in computing net income per share - basic 520,075,932 507,084,501 507,084,501 519,795,778 512,825,904 512,825,904 - diluted 520,075,932 512,101,780 512,101,780 519,795,778 517,894,151 517,894,151 Net income per share attributable to ordinary shareholders - basic 0.09 0.01 0.00 0.14 0.03 0.00 - diluted 0.09 0.01 0.00 0.14 0.03 0.00 Net income per ADS attributable to ordinary shareholders - basic 0.19 0.02 0.00 0.29 0.06 0.01 - diluted 0.19 0.02 0.00 0.29 0.06 0.01 *The corrections as detailed in the section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” were material to the previously announced unaudited consolidated financial information of the Company for the nine months ended September 30, 2023. Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F. The Company is still in the process of assessing the control implications in connection with the identified errors. The Company has previously concluded that it had two material weaknesses in internal control over financial reporting, including (i) the Company’s lack of sufficient competent financial reporting and accounting personnel with appropriate understanding of accounting principles generally accepted in the United States of America, or U.S. GAAP, to address complex U.S. GAAP technical accounting issues and to prepare and review its consolidated financial statements, including disclosure notes, in accordance with U.S. GAAP and financial reporting requirements set forth by the SEC, and (ii) the Company’s lack of period end financial closing policies and procedures for preparation of consolidated financial statements, including disclosure notes, which are in compliance with U.S. GAAP and the SEC’s reporting and disclosure requirements. As a result of the errors identified, the Company could identify additional material weaknesses as part of finalizing its analysis related to its annual report process. The Company assessed the effects of the corrections in previously announced interim financial information and previously issued financial statements for the prior periods affected and determined that they were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023, where the corrected amounts are labelled as “As corrected” in the following tables, but are not material to any of the other prior interim financial information or annual financial statements of the Company, where the corrected amounts are labelled as “As revised” in the following tables. The following tables present the aggregated impact of the corrections to the financial information for the prior periods. The previously issued consolidated financial statements as of December 31, 2022 and 2023 and for the years then ended will be revised when they are presented in the Company’s Form 20-F for the year ended December 31, 2024. Year ended December 31, 2021 As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB) Sales and marketing expenses (2,950,972) (3,457) (2,954,429) 2>, 3> General and administrative expenses (118,973) (1,847) (120,820) 3> Loss from operations (108,999) (5,304) (114,303) Loss before income tax expense (124,615) (5,304) (129,919) Net loss (124,615) (5,304) (129,919) Net loss attributable to ordinary shareholders (4,958,370) (5,304) (4,963,674) Total comprehensive loss (274,882) (5,304) (280,186) Net loss per share attributable to ordinary shareholders - basic and diluted (12.20) (0.01) (12.21) Net loss per ADS attributable to ordinary shareholders - basic and diluted (24.40) (0.02) (24.42) Adjusted net loss (non-GAAP) (93,904) (5,304) (99,208) Three months ended March 31, 2022 Three months ended June 30, 2022 Three months ended September 30, 2022 Three months ended December 31, 2022 As Previously Reported Corrections As revised As Previously Reported Corrections As revised As Previously Reported Corrections As revised As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB)(Amounts in thousands of RMB)(Amounts in thousands of RMB)(Amounts in thousands of RMB) Cost of revenues (127,553) (398) (127,951) (162,869) (3,885) (166,754) (125,548) (6,545) (132,093) (140,953) (5,484) (146,437) 1>
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Sales and marketing expenses (659,679) (919) (660,598) (664,918) (2,318) (667,236) (752,534) (325) (752,859) (635,199) 760 (634,439) 2>, 3> General and administrative expenses (27,376) (145) (27,521) (28,458) (199) (28,657) (29,421) (212) (29,633) (27,148) (812) (27,960) 3> Other operating income/(loss) 5,277 - 5,277 (1,565) (821) (2,386) 19,846 (1,287) 18,559 (10,682) (796) (11,478) 1> Loss from operations (99,316) (1,462) (100,778) (191,028) (7,223) (198,251) (96,974) (8,369) (105,343) (233,927) (6,332) (240,259) Loss before income tax expense (96,411) (1,462) (97,873) (184,527) (7,223) (191,750) (95,754) (8,369) (104,123) (220,072) (6,332) (226,404) Income tax expense - 365 365 - 1,131 1,131 - 1,372 1,372 (114,476) 1,005 (113,471) All Net loss (96,411) (1,097) (97,508) (184,527) (6,092) (190,619) (95,754) (6,997) (102,751) (334,548) (5,327) (339,875) Net loss attributable to ordinary shareholders (96,411) (1,097) (97,508) (184,527) (6,092) (190,619) (95,754) (6,997) (102,751) (334,548) (5,327) (339,875) Total comprehensive loss (102,246) (1,097) (103,343) (108,881) (6,092) (114,973) (21,459) (6,997) (28,456) (366,282) (5,327) (371,609) Net loss per share attributable to ordinary shareholders - basic and diluted (0.20) 0.01 (0.19) (0.36) (0.01) (0.37) (0.18) (0.02) (0.20) (0.64) (0.02) (0.66) Net loss per ADS attributable to ordinary shareholders - basic and diluted (0.40) 0.02 (0.38) (0.72) (0.02) (0.74) (0.36) (0.04) (0.40) (1.28) (0.03) (1.31) Adjusted net loss (non-GAAP) (89,695) (1,097) (90,792) (177,491) (6,092) (183,583) (88,638) (6,997) (95,635) (327,171) (5,327) (332,498) Six months ended June 30, 2022 Nine months ended September 30, 2022 Year ended December 31, 2022 As Previously Reported Corrections As revised As Previously Reported Corrections As revised As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Cost of revenues (290,422) (4,283) (294,705) (415,970) (10,828) (426,798) (556,923) (16,312) (573,235) 1> Sales and marketing expenses (1,324,597) (3,237) (1,327,834) (2,077,131) (3,562) (2,080,693) (2,712,330) (2,802) (2,715,132) 2>, 3> General and administrative expenses(55,834) (344) (56,178) (85,255) (556) (85,811) (112,403) (1,368) (113,771) 3> Other operating income 3,712 (821) 2,891 23,558 (2,108) 21,450 12,876 (2,904) 9,972 1> Loss from operations (290,344) (8,685) (299,029) (387,318) (17,054) (404,372) (621,245) (23,386) (644,631) Loss before income tax expense (280,938) (8,685) (289,623) (376,692) (17,054) (393,746) (596,764) (23,386) (620,150) Income tax expense - 1,496 1,496 - 2,868 2,868 (114,476) 3,873 (110,603) All Net loss (280,938) (7,189) (288,127) (376,692) (14,186) (390,878) (711,240) (19,513) (730,753) Net loss attributable to ordinary shareholders (280,938) (7,189) (288,127) (376,692) (14,186) (390,878) (711,240) (19,513) (730,753) Total comprehensive loss (211,127) (7,189) (218,316) (232,586) (14,186) (246,772) (598,868) (19,513) (618,381) Net loss per share attributable to ordinary shareholders - basic and diluted (0.54) (0.02) (0.56) (0.73) (0.02) (0.75) (1.37) (0.04) (1.41) Net loss per ADS attributable to ordinary shareholders - basic and diluted (1.08) (0.04) (1.12) (1.46) (0.04) (1.50) (2.74) (0.08) (2.82) Adjusted net loss (non-GAAP) (267,186) (7,189) (274,375) (355,824) (14,186) (370,010) (682,995) (19,513) (702,508) Three months ended March 31, 2023 Three months ended June 30, 2023 Three months ended September 30, 2023 Three months ended December 31, 2023 As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* As Previously Reported Corrections As revised As Previously Reported Corrections As corrected* Error # (Amounts in thousands of RMB)(Amounts in thousands of RMB)(Amounts in thousands of RMB)(Amounts in thousands of RMB)
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Cost of revenues (127,389) (1,355) (128,744) (668,547) (1,638) (670,185) (214,817) (644) (215,461) (198,711) 6,910 (191,801) 1> Sales and marketing expenses (665,274) (1,253) (666,527) (295,150) (1,216) (296,366) (298,216) 2,226 (295,990) (248,792) 1,075 (247,717) 2>, 3> General and administrative expenses (26,771) (450) (27,221) (31,117) (420) (31,537) (37,094) (683) (37,777) (30,546) (955) (31,501) 3> Other operating income/(loss) 2,268 (2,305) (37) (8,703) (1,270) (9,973) (5,532) (1,491) (7,023) (13,860) 4,985 (8,875) 1> (Loss)/income from operations (15,775) (5,363) (21,138) 13,558 (4,544) 9,014 34,008 (592) 33,416 (32,856) 12,015 (20,841) Income before income tax expense 10,810 (5,363) 5,447 24,515 (4,544) 19,971 70,451 (592) 69,859 2,986 12,015 15,001 Income tax expense - 227 227 - 391 391 (20,442) (407) (20,849) (579) (724) (1,303) All Net income 10,810 (5,136) 5,674 24,515 (4,153) 20,362 50,009 (999) 49,010 2,407 11,291 13,698 Net income attributable to ordinary shareholders 10,810 (5,136) 5,674 24,515 (4,153) 20,362 50,009 (999) 49,010 2,407 11,291 13,698 Total comprehensive (loss)/income (7,257) (5,136) (12,393) 93,004 (4,153) 88,851 37,677 (999) 36,678 (16,787) 11,291 (5,496) Net income per share attributable to ordinary shareholders - basic and diluted 0.02 (0.01) 0.01 0.05 (0.01) 0.04 0.10 (0.01) 0.09 0.00 0.03 0.03 Net income per ADS attributable to ordinary shareholders - basic and diluted 0.04 (0.02) 0.02 0.10 (0.02) 0.08 0.20 (0.01) 0.19 0.00 0.05 0.05 Adjusted net income (non-GAAP) 17,095 (5,136) 11,959 30,055 (4,153) 25,902 55,214 (999) 54,215 5,716 11,291 17,007 Six months ended June 30, 2023 Nine months ended September 30, 2023 Year ended December 31, 2023 As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Cost of revenues (795,936) (2,993) (798,929) (1,010,753) (3,637) (1,014,390) (1,209,464) 3,273 (1,206,191) 1> Sales and marketing expenses (960,424) (2,469) (962,893) (1,258,640) (243) (1,258,883) (1,507,432) 832 (1,506,600) 2>, 3> General and administrative expenses(57,888) (870) (58,758) (94,982) (1,553) (96,535) (125,528) (2,508) (128,036) 3> Other operating loss (6,435) (3,575) (10,010) (11,967) (5,066) (17,033) (25,827) (81) (25,908) 1> (Loss)/income from operations (2,217) (9,907) (12,124) 31,791 (10,499) 21,292 (1,065) 1,516 451 Income before income tax expense35,325 (9,907) 25,418 105,776 (10,499) 95,277 108,762 1,516 110,278 Income tax expense - 618 618 (20,442) 211 (20,231) (21,021) (513) (21,534) All Net income 35,325 (9,289) 26,036 85,334 (10,288) 75,046 87,741 1,003 88,744 Net income attributable to ordinary shareholders 35,325 (9,289) 26,036 85,334 (10,288) 75,046 87,741 1,003 88,744 Total comprehensive income 85,747 (9,289) 76,458 123,424 (10,288) 113,136 106,637 1,003 107,640 Net income per share attributable to ordinary shareholders - basic and diluted 0.07 (0.02) 0.05 0.16 (0.02) 0.14 0.17 0.00 0.17 Net income per ADS attributable to ordinary shareholders - basic and diluted 0.14 (0.04) 0.10 0.32 (0.03) 0.29 0.34 0.00 0.34 Adjusted net income (non-GAAP) 47,150 (9,289) 37,861 102,364 (10,288) 92,076 108,080 1,003 109,083 Three months ended March 31, 2024 Three months ended June 30, 2024 Six months ended June 30, 2024 As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Cost of revenues (167,737) - (167,737) (219,600) - (219,600) (387,337) - (387,337) 1>
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Sales and marketing expenses (204,494) 2,082 (202,412) (180,949) 2,430 (178,519) (385,443) 4,512 (380,931) 2>, 3> General and administrative expenses(26,584) (986) (27,570) (39,450) 72 (39,378) (66,034) (914) (66,948) 3> Other operating loss (1,474) (593) (2,067) (8,133) (593) (8,726) (9,607) (1,186) (10,793) 1> Loss from operations (22,757) 503 (22,254) (6,021) 1,909 (4,112) (28,778) 2,412 (26,366) Income before income tax expense 7,339 503 7,842 20,191 1,909 22,100 27,530 2,412 29,942 Income tax expense (7,688) (354) (8,042) (11,013) (825) (11,838) (18,701) (1,179) (19,880) All Net (loss)/income (349) 149 (200) 9,178 1,084 10,262 8,829 1,233 10,062 Net (loss)/income attributable to ordinary shareholders (349) 149 (200) 9,178 1,084 10,262 8,829 1,233 10,062 Total comprehensive income 2,013 149 2,162 15,079 1,084 16,163 17,092 1,233 18,325 Net (loss)/ income per share attributable to ordinary shareholders - basic and diluted (0.00) 0.00 (0.00) 0.02 0.00 0.02 0.02 0.00 0.02 Net (loss)/ income per ADS attributable to ordinary shareholders - basic and diluted (0.00) 0.00 (0.00) 0.04 0.00 0.04 0.03 0.01 0.04 Adjusted net income (non-GAAP) 3,834 149 3,983 15,212 1,084 16,296 19,046 1,233 20,279 As of March 31, 2022 As of June 30, 2022 As of September 30, 2022 As Previously Reported Corrections As revised As Previously Reported Corrections As revised As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Accounts receivable, net 11,616 - 11,616 16,729 - 16,729 13,862 - 13,862 3> Prepayments and other current assets 396,431 5,399 401,830 408,906 2,406 411,312 365,891 (51) 365,840 2>, 3> Total current assets 3,158,544 5,399 3,163,943 3,296,072 2,406 3,298,478 3,473,368 (51) 3,473,317 Deferred tax assets - - - - - - - - - Other non-current assets 143,384 (317) 143,067 114,696 (317) 114,379 75,356 (319) 75,037 3> Total non-current assets 1,085,178 (317) 1,084,861 1,011,567 (317) 1,011,250 970,140 (319) 969,821 Total assets 4,243,722 5,082 4,248,804 4,307,639 2,089 4,309,728 4,443,508 (370) 4,443,138 Accounts and notes payable 533,924 11,866 545,790 691,115 11,391 702,506 796,380 9,469 805,849 2> Tax payable 8,373 33 8,406 33,048 3,607 36,655 93,077 10,067 103,144 All Current Liabilities 992,753 11,899 1,004,652 1,176,270 14,998 1,191,268 1,336,208 19,536 1,355,744 Total liabilities 1,120,470 11,899 1,132,369 1,290,251 14,998 1,305,249 1,441,126 19,536 1,460,662 Accumulated deficit (8,704,399) (6,817) (8,711,216) (8,888,927) (12,909) (8,901,836) (8,984,680) (19,906) (9,004,586) All Total shareholders' equity 3,123,252 (6,817) 3,116,435 3,017,388 (12,909) 3,004,479 3,002,382 (19,906) 2,982,476 Total liabilities and shareholders' equity 4,243,722 5,082 4,248,804 4,307,639 2,089 4,309,728 4,443,508 (370) 4,443,138 As of March 31, 2023 As of June 30, 2023 As of September 30, 2023 As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Accounts receivable, net 17,203 - 17,203 243,068 (29) 243,039 243,771 (524) 243,247 3> Prepayments and other current assets 302,793 (4,234) 298,559 401,716 (6,548) 395,168 349,793 (4,368) 345,425 2>, 3> Total current assets 3,420,919 (4,234) 3,416,685 3,916,080 (6,577) 3,909,503 3,991,784 (4,892) 3,986,892 Deferred tax assets 30,986 3,873 34,859 30,986 3,873 34,859 23,070 3,873 26,943 All Other non-current assets 28,683 (703) 27,980 19,402 (1,058) 18,344 19,630 (1,150) 18,480 3> Total non-current assets 978,630 3,170 981,800 391,352 2,815 394,167 419,466 2,723 422,189 Total assets 4,399,549 (1,064) 4,398,485 4,307,432 (3,762) 4,303,670 4,411,250 (2,169) 4,409,081 Accounts and notes payable 909,320 6,656 915,976 688,213 5,594 693,807 794,811 5,644 800,455 2> Tax payable 169,452 22,649 192,101 262,152 25,166 287,318 215,253 27,708 242,961 All Current Liabilities 1,543,809 29,305 1,573,114 1,382,863 30,760 1,413,623 1,444,630 33,352 1,477,982 Total liabilities 1,766,006 29,305 1,795,311 1,579,012 30,760 1,609,772 1,642,733 33,352 1,676,085 Accumulated deficit (9,309,059) (30,369) (9,339,428) (9,284,544) (34,522) (9,319,066) (9,234,535) (35,521) (9,270,056) All Total shareholders' equity 2,633,543 (30,369) 2,603,174 2,728,420 (34,522) 2,693,898 2,768,517 (35,521) 2,732,996 Total liabilities and shareholders' equity 4,399,549 (1,064) 4,398,485 4,307,432 (3,762) 4,303,670 4,411,250 (2,169) 4,409,081 As of December 31, 2021 As of December 31, 2022 As of December 31, 2023 As Previously Reported Corrections As revised As Previously Reported Corrections As revised As Previously Reported Corrections As revised Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) (Amounts in thousands of RMB) Accounts receivable, net 14,881 - 14,881 16,482 - 16,482 269,736 (993) 268,743 3> Prepayments and other current assets 487,540 11,180 498,720 228,672 (2,209) 226,463 345,744 (6,493) 339,251 2>, 3> Total current assets 3,247,732 11,180 3,258,912 3,300,784 (2,209) 3,298,575 4,025,789 (7,486) 4,018,303 Deferred tax assets - - - 30,986 3,873 34,859 18,804 3,361 22,165 All
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Other non-current assets 164,986 (317) 164,669 35,898 (634) 35,264 21,621 (1,152) 20,469 3> Total non-current assets 1,150,249 (317) 1,149,932 986,857 3,239 990,096 399,584 2,209 401,793 Total assets 4,397,981 10,863 4,408,844 4,287,641 1,030 4,288,671 4,425,373 (5,277) 4,420,096 Accounts and notes payable 551,751 16,583 568,334 810,197 7,048 817,245 764,741 2,928 767,669 2> Tax payable 10,195 - 10,195 147,367 19,215 166,582 214,738 16,025 230,763 All Current Liabilities 1,028,365 16,583 1,044,948 1,422,878 26,263 1,449,141 1,467,490 18,953 1,486,443 Total liabilities 1,165,957 16,583 1,182,540 1,646,336 26,263 1,672,599 1,671,716 18,953 1,690,669 Accumulated deficit (8,607,989) (5,720) (8,613,709) (9,319,229) (25,233) (9,344,462) (9,232,128) (24,230) (9,256,358) All Total shareholders' equity 3,232,024 (5,720) 3,226,304 2,641,305 (25,233) 2,616,072 2,753,657 (24,230) 2,729,427 Total liabilities and shareholders' equity 4,397,981 10,863 4,408,844 4,287,641 1,030 4,288,671 4,425,373 (5,277) 4,420,096 As of March 31, 2024 As of June 30, 2024 As Previously Reported Corrections As corrected* As Previously Reported Corrections As corrected* Error # (Amounts in thousands of RMB) (Amounts in thousands of RMB) Accounts receivable, net 278,690 (1,626) 277,064 300,853 (1,292) 299,561 3> Prepayments and other current assets 380,314 (8,120) 372,194 327,539 (10,115) 317,424 2>, 3> Total current assets 4,047,143 (9,746) 4,037,397 3,968,175 (11,407) 3,956,768 Deferred tax assets 18,804 3,360 22,164 18,804 3,360 22,164 All Other non-current assets 20,081 (1,368) 18,713 16,592 (1,391) 15,201 3> Total non-current assets 354,770 1,992 356,762 304,324 1,969 306,293 Total assets 4,401,913 (7,754) 4,394,159 4,272,499 (9,438) 4,263,061 Accounts and notes payable 726,011 (644) 725,367 699,504 (4,830) 694,674 2> Tax payable 213,999 16,971 230,970 213,000 18,389 231,389 All Current Liabilities 1,494,455 16,327 1,510,782 1,374,535 13,559 1,388,094 Total liabilities 1,702,971 16,327 1,719,298 1,588,426 13,559 1,601,985 Accumulated deficit (9,232,477) (24,081) (9,256,558) (9,223,299) (22,997) (9,246,296) All Total shareholders' equity 2,698,942 (24,081) 2,674,861 2,684,073 (22,997) 2,661,076 Total liabilities and shareholders' equity 4,401,913 (7,754) 4,394,159 4,272,499 (9,438) 4,263,061 * The corrections were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023. Note: 1> Understatements of accrual for tax surcharges and related interest expenses Upon the final settlement of the Company’s underpaid VAT, which was recorded in prior periods, and surcharges, which was not recorded in prior periods, with the relevant tax authorities for its mobile device charging revenue in 2024, the Company determined that the unrecorded surcharges and interest expenses related to the surcharges should have been recorded in the same prior periods that the provision for underpaid VAT was recorded. As a result, the Company has determined to correct the accrual for tax surcharges and related interest expenses in prior periods such that cost of revenues, other operating loss, tax payable and accumulated deficit are corrected. 2> Misstatements of accruals for commissions to location partners and related balances The accounts payable balances due to location partners under the direct model contained certain entries in relation to the commissions to location partners that were duplicative or incomplete in prior periods. Certain debit balances in accounts payable should have been reclassified to prepayments and subjected to impairment as of prior period ends. In connection therewith, the Company has determined to correct the commissions paid to locations partners and related balances for certain prior periods such that sales and marketing expenses, accounts and notes payable, prepayments and other current assets and accumulated deficit are corrected. 3> Understatements of impairment of prepayments to location partners and expected credit losses of deposits to location partners and accounts receivable due from network partners The different risk characteristics of the prepayments to location partners with invalid or expired contracts, the deposits to location partners under the direct model with expired or invalid contracts and the accounts receivable due from network partners that were deregistered or dissolved were inadequately considered in the impairment assessments of such assets as of prior period ends. In connection therewith, the Company has determined to correct the impairment of prepayments to locations partners and the provision for the expected credit losses of deposits to location partners and accounts receivable due from network partners in prior periods such that sales and marketing expenses, general and administrative expenses, accounts receivable, net, prepayments and other current assets, other non-current assets and accumulated deficit are corrected. Smart Share Global Limited Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands, except for share and per share data, unless otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ As corrected* Net income 49,010 4,246 605 75,046 14,308 2,038 Add: Share-based compensation 5,205 4,979 710 17,030 15,196 2,165 Less:
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Adjusted for tax effects - - - - - - Adjusted net income (non-GAAP) 54,215 9,225 1,315 92,076 29,504 4,203 _____________________________ 1 The Company defines number of points of interests, or POIs, as of a certain date as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that date and have at least one cabinet assigned to the location. 2 The Company defines cumulative registered users as the total number of users who have agreed to register their mobile phone numbers with the Company via its mini programs since inception, and the number of cumulative registered users of the Company on a certain date is the number of unique mobile phone numbers that have been registered with the Company since inception on that date. 3 The Company defines available-for-use power banks as of a certain date as the number of power banks in circulation on that day. 4 The Company defines mobile device charging orders for a given period as the total number of completed orders placed by registered users of the mobile device charging business under both the direct and network partner models in that given period, without any adjustment for orders that may qualify for discounts or incentives. 5 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024, which was RMB7.0176 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.