UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2024

 

 

  

Commission File Number: 001-40298

 

 

 

SMART SHARE GLOBAL LIMITED

 

6th Floor, 799 Tianshan W Road

Changning District, Shanghai 200335

The People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x             Form 40-F ¨

 

 

 

 

 

 

Exhibit Index

 

Exhibit No.   Description
99.1   Press Release — Smart Share Global Limited Announces Second Quarter 2024 Results

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

SMART SHARE GLOBAL LIMITED
       
  By : /s/ Maria Yi Xin
  Name : Maria Yi Xin
  Title : Chief Financial Officer

 

Date: August 22, 2024

 

 

 

 

Exhibit 99.1 

 

Smart Share Global Limited Announces Second Quarter 2024 Results

POIs1 operated through network partner model reached 89.2% as of the end of the second quarter of 2024

Cumulative registered users2 reached 417.1 million as of the end of the second quarter of 2024

 

SHANGHAI, China, August 22, 2024 (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 June 30, 2024.

 

HIGHLIGHTS FOR THE SECOND QUARTER OF 2024

 

·As of June 30, 2024, 89.2% of POIs were operated under our network partner model, compared with 79.7% as of March 31, 2024.

 

·As of June 30, 2024, the Company’s services were available in 1,267 thousand POIs, compared with 1,245 thousand as of March 31, 2024.

 

·As of June 30, 2024, the Company’s available-for-use power banks3 were 9.5 million, compared with 9.4 million as of March 31, 2024.

 

·As of June 30, 2024, cumulative registered users reached 417.1 million, with 12.8 million newly registered users acquired during the quarter.

 

·Mobile device charging orders4 for the second quarter of 2024 was 150.6 million, compared with 171.8 million for the second quarter of 2023.

 

“Despite the weaker-than-expected consumption environment, we delivered a solid performance this quarter as we returned to profitability,said Mars Guangyuan Cai, Chairman and Chief Executive Officer. “Our commitment to long-term value, even in the current consumption climate, is evident in our ongoing transition towards the network partner model, which we consider to be crucial for our long-term success. Additionally, this quarter, we have proactively begun exploring opportunities in the mobile device charging service market beyond China as a way to diversify our operation. By taking these steps, we are positioning the Company to capture the long-term value of the industry and deliver substantial returns to our investors.”

 

“The pace at which we have rebalanced our operations between the direct model and the network partner model has exceeded our initial expectations,” said Peifeng Xu, President. “Although the shift in our business model has imposed short-term impacts on our new POI expansion rate, we remain confident in our long-term prospects. Notably, the reduction in our direct model operations will not only lower our operational expenses but also enhance the contribution from the higher-margin network partner model.”

 

“Our return to profitability this quarter is a positive development, especially in light of the current transitions,” said Maria Yi Xin, Chief Financial Officer. “We will continue to pursue higher levels of operational efficiency within our core mobile device charging service. Simultaneously, we are committed to investing in new initiatives that will leverage Energy Monster’s existing capabilities and unlock new avenues for growth. These efforts are essential as we aim to realize our full growth potential and consistently deliver sustained value to our shareholders.”

 

 

1 The Company defines number of points of interests, or POIs, as of a certain day as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that day 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.

 

 

 

 

FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024

 

Revenues were RMB462.9 million (US$63.7 million5) for the second quarter of 2024, representing a 55.3% decrease from the same period in 2023. The decrease was primarily due to certain one-time adjustments made to the mobile device charging revenues for the second quarter of 2023 as a result of the change in the contractual arrangement with network partners.

 

·Mobile device charging revenues, which consist of revenues generated under both the direct and network partner models, decreased by 60.0% to RMB410.6 million (US$56.5 million) for the second quarter of 2024, from RMB1,026.3 million in the same period of 2023.

 

oRevenues generated under the direct model, comprising of mobile device charging service fees of RMB115.9 million and power bank sales of RMB2.2 million, decreased by 60.7% to RMB118.1 million for the second quarter of 2024, from RMB300.7 million in the same period of 2023. The decrease was primarily due to the decrease in number of POIs operated under the direct model.

 

oRevenues generated under the network partner model, comprising of (i) mobile device charging solution fees, which increased by 14.3% year-over-year to RMB61.5 million, and (ii) power bank, cabinet and other related sales, which decreased by 65.6% year-over-year to RMB231.0 million, decreased by 59.7% to RMB292.5 million for the second quarter of 2024, from RMB725.6 million in the same period of 2023. The decrease was primarily due to certain one-time adjustments made to the mobile device charging revenues for the second quarter of 2023 as a result of the change in the contractual arrangement with network partners.

 

·Other revenues, which primarily comprise of revenues from new business initiatives and advertising services, increased by 453.7% to RMB52.3 million (US$7.2 million) for the second quarter of 2024, from RMB9.4 million in the same period of 2023. The increase was primarily attributable to new business initiatives.

 

Cost of revenues decreased by 67.2% to RMB219.6 million (US$30.2 million) for the second quarter of 2024, from RMB668.5 million in the same period last year. The decrease was primarily due to certain one-time adjustments made to the mobile device charging cost of revenues for the second quarter of 2023 as a result of the change in the contractual arrangement with network partners and the decrease in depreciation as a result of the decrease in number of POIs operated under the direct model.

 

Research and development expenses increased by 11.6% to RMB20.8 million (US$2.9 million) for the second quarter of 2024, from RMB18.7 million in the same period last year. The increase was primarily due to the increase in personnel related expenses.

 

Sales and marketing expenses decreased by 38.7% to RMB180.9 million (US$24.9 million) for the second quarter of 2024 from RMB295.2 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 26.8% to RMB39.5 million (US$5.4 million) for the second quarter of 2024, compared to RMB31.1 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.

 

 

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 June 28, 2024, which was RMB7.2672 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.

 

 

 

 

Loss from operations for the second quarter of 2024 was RMB6.0 million (US$0.8 million), compared to an income from operations of RMB13.6 million in the same period last year.

 

Net income for the second quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a net income of RMB24.5 million in the same period last year.

 

Non-GAAP adjusted net income for the second quarter of 2024 was RMB15.2 million (US$2.1 million), compared to a non-GAAP adjusted net income of RMB30.1 million in the same period last year.

 

Net income attributable to ordinary shareholders for the second quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a net income attributable to ordinary shareholders of RMB24.5 million in the same period last year.

 

As of June 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.2 billion (US$440.9 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:

 

 

    2023Q2   2024Q1   2024Q2
    thousands RMB    thousands RMB    thousands RMB 
Mobile device charging:               
Direct Model   300,701    155,224    118,105 
Mobile device charging service   293,922    152,108    115,863 
Power bank sales   6,779    3,116    2,242 
Network Partner Model   725,577    222,852    292,505 
Mobile device charging service   -    -    - 
Mobile device charging solution   53,793    59,016    61,508 
Power bank, cabinet and other related sales   671,784    163,836    230,997 
Total mobile device charging   1,026,278    378,076    410,610 

 

Conference Call Information

 

The company will hold a conference call at 8:00 A.M. Eastern Time on Thursday, August 22, 2024 (8:00 P.M. Beijing Time on Thursday, August 22, 2024) to discuss the financial results. Upon registration, each participant will receive dial-in details to join the conference call.

 

Event Title: Energy Monster’s Second Quarter 2024 Earnings Conference Call

Pre-registration link: https://s1.c-conf.com/diamondpass/10041388-erkogt.html

 

Participants may also access the call via webcast: https://edge.media-server.com/mmc/p/fga362u4

 

A telephone replay will be available through August 29, 2024. The dial-in details are as follows:

 

International:+61-7-3107-6325
United States:+1-855-883-1031
Mainland China:+86-400-120-9216
China Hong Kong:+852-800-930-639
Access Code:10041388

 

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.enmonster.com/.

 

 

 

 

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 the largest provider of mobile device charging service in China with the number one market share. The Company provides mobile device charging service through its 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 June 30, 2024, the Company had 9.5 million power banks in 1,267,000 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   June 30, 2024   June 30, 2024 
   RMB   RMB   US$ 
ASSETS               
Current assets:               
Cash and cash equivalents   588,644    735,208    101,168 
Restricted cash   173,246    146,037    20,095 
Short-term investments   2,541,889    2,302,795    316,875 
Accounts receivable, net   269,736    300,853    41,399 
Inventory   106,530    155,743    21,431 
Prepayments and other current assets   345,744    327,539    45,071 
Total current assets   4,025,789    3,968,175    546,039 
Non-current assets:               
Long-term restricted cash   20,000    20,000    2,752 
Property, equipment and software, net   322,806    237,794    32,722 
Right-of-use assets, net   16,353    11,134    1,532 
Other non-current assets   21,621    16,592    2,283 
Deferred tax assets, net   18,804    18,804    2,587 
Total non-current assets   399,584    304,324    41,876 
Total assets   4,425,373    4,272,499    587,915 
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities:               
Accounts and notes payable   764,741    699,504    96,254 
Salary and welfare payable   143,653    122,335    16,834 
Taxes payable   214,738    213,000    29,310 
Current portion of lease liabilities   7,399    5,241    721 
Accruals and other current liabilities   336,959    334,455    46,023 
Total current liabilities   1,467,490    1,374,535    189,142 
Non-current liabilities:               
Non-current lease liabilities   7,641    5,390    742 
Amounts due to related parties-non-current   1,000    1,000    138 
Other non-current liabilities   195,585    207,501    28,553 
Total non-current liabilities   204,226    213,891    29,433 
Total liabilities   1,671,716    1,588,426    218,575 
SHAREHOLDERS' EQUITY               
Ordinary shares   347    347    48 
Treasury stock   (5,549)   (44,243)   (6,088)
Additional paid-in capital   11,791,570    11,743,588    1,615,971 
Statutory reserves   16,593    16,593    2,283 
Accumulated other comprehensive income   182,824    191,087    26,294 
Accumulated deficit   (9,232,128)   (9,223,299)   (1,269,168)
Total shareholders' equity   2,753,657    2,684,073    369,340 
Total liabilities and shareholders' equity   4,425,373    4,272,499    587,915 

 

 

 

 

Smart Share Global Limited

Unaudited Consolidated Statements of Comprehensive Income

(In thousands, except for share and per share data, unless otherwise noted)

 

   Three months ended June 30,   Six months ended June 30, 
   2023   2024   2023   2024 
   RMB   RMB   US$   RMB   RMB   US$ 
Revenues:                              
Mobile device charging   1,026,278    410,610    56,502    1,839,323    788,686    108,527 
Others   9,448    52,313    7,199    19,238    71,443    9,831 
Total revenues   1,035,726    462,923    63,701    1,858,561    860,129    118,358 
Cost of revenues   (668,547)   (219,600)   (30,218)   (795,936)   (387,337)   (53,299)
Research and development expenses   (18,651)   (20,812)   (2,864)   (40,095)   (40,486)   (5,571)
Sales and marketing expenses   (295,150)   (180,949)   (24,899)   (960,424)   (385,443)   (53,039)
General and administrative expenses   (31,117)   (39,450)   (5,429)   (57,888)   (66,034)   (9,087)
Other operating loss   (8,703)   (8,133)   (1,119)   (6,435)   (9,607)   (1,322)
Income/(loss) from operations   13,558    (6,021)   (828)   (2,217)   (28,778)   (3,960)
Interest and investment income   28,054    28,754    3,957    54,290    59,343    8,166 
Interest expense to third parties   -    -    -    (4,228)   -    - 
Foreign exchange loss, net   (17,269)   (2,537)   (349)   (12,509)   (3,103)   (427)
Other income/(loss), net   172    (5)   (1)   (11)   68    9 
Income before income tax expense   24,515    20,191    2,779    35,325    27,530    3,788 
Income tax expense   -    (11,013)   (1,516)   -    (18,701)   (2,573)
Net income   24,515    9,178    1,263    35,325    8,829    1,215 
Net income attributable to ordinary shareholders of Smart Share Global Limited       24,515       9,178         1,263     35,325     8,829     1,215   
Other comprehensive income                              
Foreign currency translation adjustments, net of nil tax   68,489    5,901    812    50,422    8,263    1,137 
Total comprehensive income   93,004    15,079    2,075    85,747    17,092    2,352 
Comprehensive income attributable to ordinary shareholders of Smart Share Global Limited  
 
 
 
 
93,004
 
 
 
 
 
 
 
15,079
 
 
 
 
 
 
 
2,075
 
 
 
 
 
 
 
85,747
 
 
 
 
 
 
 
17,092
 
 
 
 
 
 
 
2,352
 
 
Weighted average number of ordinary shares used in computing net income per share                                           
- basic   520,059,564    513,255,262    513,255,262    519,652,925    515,725,209    515,725,209 
- diluted   520,059,564    523,442,724    523,442,724    519,652,925    520,818,940    520,818,940 
Net income per share attributable to ordinary shareholders                              
- basic   0.05    0.02    0.00    0.07    0.02    0.00 
- diluted   0.05    0.02    0.00    0.07    0.02    0.00 
Net income per ADS attributable to ordinary shareholders                              
- basic   0.10    0.04    0.01    0.14    0.03    0.00 
- diluted   0.10    0.04    0.01    0.14    0.03    0.00 

 

 

 

 

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 June 30,   Six months ended June 30, 
   2023   2024   2023   2024 
   RMB   RMB   US$   RMB   RMB   US$ 
Net income  24,515   9,178   1,263   35,325   8,829   1,215 
Add:                        
Share-based compensation  5,540   6,034   830   11,825   10,217   1,406 
Less:                        
Adjusted for tax effects  -   -   -   -   -   - 
Adjusted net income (non-GAAP)  30,055   15,212   2,093   47,150   19,046   2,621 

 

 


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