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 June 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 First 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: June 3, 2024

 

 

 

 

 

 

 

 

Exhibit 99.1

 

Smart Share Global Limited Announces First Quarter 2024 Results

 

POIs1 operated through network partner model reached 79.7% as of the end of the first quarter of 2024

 

Cumulative registered users2 reached 404.3 million as of the end of the first quarter of 2024

 

SHANGHAI, China, June 3, 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 March 31, 2024.

 

HIGHLIGHTS FOR THE FIRST QUARTER OF 2024

 

·As of March 31, 2024, 79.7% of POIs were operated under our network partner model, compared with 72.8% as of December 31, 2023.

·As of March 31, 2024, the Company’s services were available in 1,245 thousand POIs, compared with 1,234 thousand as of December 31, 2023.

·As of March 31, 2024, the Company’s available-for-use power banks3 were 9.4 million, compared with 9.2 million as of December 31, 2023.

·As of March 31, 2024, cumulative registered users reached 404.3 million, with 12.8 million newly registered users acquired during the quarter.

·Mobile device charging orders4 for the first quarter of 2024 was 147.0 million, compared with 153.2 million for the first quarter of 2023.

 

“Despite a stable performance this quarter due to a softer consumption environment, we continue to achieve new operational milestones, said Mars Guangyuan Cai, Chairman and Chief Executive Officer. “We have successfully expanded our POI coverage to a record-high scale and reached a remarkable milestone of over 400 million cumulative registered users. Additionally, we have strategically rebalanced our operational model towards the network partner model while maintaining our core direct model portfolios. This transition is anticipated to deliver substantial economic benefits for the Company in the long term. We remain steadfast in our commitment to delivering sustainable value to all our stakeholders and are optimistic about the future prospects of the mobile device charging service sector in China.”

 

“Our transition to the network partner model has been executed with precision, carefully balancing the rate of transition with quality,” said Peifeng Xu, President. “We are consistently reducing under-performing POIs and optimizing the operational efficiency of our direct model. Despite the challenging environment, we have maintained POI expansion momentum through the acquisition of new key accounts and by placing increased emphasis on the network partner model for core expansion. This strategy ensures that we leverage the strengths of both models to drive our coverage expansion and profitability.”

 

“The transition from the direct model to the network partner model in certain regions has incurred one-off costs, but it is a strategic move that will benefit the financial health of the Company in the long run,” said Maria Yi Xin, Chief Financial Officer. “We continue to maintain a strong balance sheet, providing us with the flexibility to navigate challenging environments and explore new opportunities that will drive future growth. Our focus remains on delivering long-term value for our shareholders, as exemplified by our previously announced share repurchase program and special dividend. We are confident that our initiatives will unlock our growth and value potential in the foreseeable future.”

 

 

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.

 

 

 

 

PREVIOUS UPDATE ON CONTRACTUAL ARRANGEMENT

 

Starting in the second quarter of 2023, the Company has updated its contractual arrangement with its network partners under the network partner model, shifting the principal role of providing mobile device charging service from the Company to network partners. Under the new contractual arrangement, the Company generates revenue by providing mobile device charging solutions to network partners, including software and system service, billing and settlement service, customer call center service and other services. The ownership rights of cabinets and power banks under the network partner model, which were previously held by the Company, have also been transferred to the network partners under the new contractual arrangement.

 

Starting in the second quarter of 2023, mobile device charging revenue generated under the network partner model has therefore been recorded under mobile device charging solution, which is now net of incentive fees paid to network partners. Relatedly, all incentive fees paid to network partners have been excluded from the Company’s sales and marketing expenses under the new contractual arrangement. Due to the new contractual arrangement, the Company now also generates revenue from cabinet and power bank sales to its network partners as a result of the shift in ownership rights of the cabinets and power banks under the network partner model from the Company to the network partners, and cost of cabinets and power banks sold to the network partners will be recognized accordingly.

 

Starting in the second quarter of 2023, the classification of revenue has been updated accordingly to more clearly reflect the results of the two mobile device charging models. The Company’s mobile device charging operation now consists of the direct model and the network partner model. Under the direct model, the Company generates revenue by offering mobile device charging service and sales of power banks to users. Under the network partner model, the Company generates revenue by offering mobile device charging solutions and sales of power banks and cabinets to network partners.

 

The table below sets forth the breakdown of mobile device charging revenue components based on the latest classification for the periods indicated:

 

   2023Q1  2023Q4  2024Q1
   thousands RMB   thousands RMB   thousands RMB 
Mobile device charging:               
Direct Model   282,625    215,741    155,224 
Mobile device charging service   275,716    210,899    152,108 
Power bank sales   6,909    4,842    3,116 
Network Partner Model   530,420    249,958    222,852 
Mobile device charging service   518,743    -    - 
Mobile device charging solution   -    60,600    59,016 
Power bank and cabinet sales   11,677    189,358    163,836 
Total mobile device charging   813,045    465,699    378,076 

 

FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024

 

Revenues were RMB397.2 million (US$55.0 million5) for the first quarter of 2024, representing a 51.7% decrease from the same period in 2023. The decrease was primarily due to the decrease in mobile device charging revenues as a result of the change in the contractual arrangement with network partners.

 

 

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 March 29, 2024, which was RMB7.2203 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.

 

 

 

 

·Mobile device charging revenues, which consist of revenues generated under both the direct and network partner models, decreased by 53.5% to RMB378.1 million (US$52.4 million) for the first quarter of 2024, from RMB813.0 million in the same period of 2023.

oRevenues generated under the direct model, which comprise of mobile device charging service fees of RMB152.1 million and power bank sales of RMB3.1 million, decreased by 45.1% to RMB155.2 million for the first quarter of 2024, from RMB282.6 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, which comprise of mobile device charging solution fees of RMB59.0 million and sales of cabinets and power banks of RMB163.8 million, decreased by 58.0% to RMB222.9 million for the first quarter of 2024, from RMB530.4 million in the same period of 2023. The decrease was primarily due to the change in the contractual arrangement with network partners. Under the new contractual arrangement, mobile device charging revenues generated under the network partner model are net of incentive fees paid to network partners. The decrease was partially offset by the increase in the sales of cabinet and power bank to network partners.

 

·Other revenues, which primarily comprise of revenues from advertising services and new business initiatives, increased by 95.4% to RMB19.1 million (US$2.6 million) for the first quarter of 2024, from RMB9.8 million in the same period of 2023. The increase was primarily attributable to new business initiatives as well as increases in users and advertisement efficiency.

 

Cost of revenues increased by 31.7% to RMB167.7 million (US$23.2 million) for the first quarter of 2024, from RMB127.4 million in the same period last year. The increase was primarily due to the increase in sales of cabinets and power banks under the new contractual arrangement with network partners, partially offset by the decrease in depreciation cost.

 

Research and development expenses decreased by 8.3% to RMB19.7 million (US$2.7 million) for the first quarter of 2024, from RMB21.4 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 69.3% to RMB204.5 million (US$28.3 million) for the first quarter of 2024 from RMB665.3 million in the same period last year. The decrease was primarily due to the decrease in incentive fees paid to network partners as a result of the change in the contractual arrangement with network partners, the decrease in incentive fees paid to location partners and the reduction in personnel related expenses under the direct model.

 

General and administrative expenses remained relatively stable at RMB26.6 million (US$3.7 million) for the first quarter of 2024, compared to RMB26.8 million in the same period last year.

 

Loss from operations for the first quarter of 2024 was RMB22.8 million (US$3.2 million), compared to a loss from operations of RMB15.8 million in the same period last year.

 

Net loss for the first quarter of 2024 was RMB0.3 million, compared to a net income of RMB10.8 million in the same period last year.

 

Adjusted net income for the first quarter of 2024 was RMB3.8 million (US$0.5 million), compared to an adjusted net income of RMB17.1 million in the same period last year.

 

Net loss attributable to ordinary shareholders for the first quarter of 2024 was RMB0.3 million, compared to a net income attributable to ordinary shareholders of RMB10.8 million in the same period last year.

 

 

 

 

As of March 31, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.3 billion (US$454.1 million).

 

Conference Call Information

 

The company will hold a conference call at 8:00 A.M. Eastern Time on Monday, June 3, 2024 (8:00 P.M. Beijing Time on Monday, June 3, 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 First Quarter 2024 Earnings Conference Call

Pre-registration link: https://s1.c-conf.com/diamondpass/10039333-8hdt5e.html

 

Participants may also access the call via webcast: https://edge.media-server.com/mmc/p/msw8figv

 

A telephone replay will be available through June 10, 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: 10039333

 

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 March 31, 2024, the Company had 9.4 million power banks in 1,245,000 POIs across more than 2,000 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 share and per share data, unless otherwise noted)

 

   December 31, 2023   March 31, 2024   March 31, 2024 
   RMB   RMB   US$ 
ASSETS            
Current assets:               
Cash and cash equivalents   588,644    644,367    89,244 
Restricted cash   173,246    143,433    19,865 
Short-term investments   2,541,889    2,470,678    342,185 
Accounts receivable, net   269,736    278,690    38,598 
Inventory   106,530    129,661    17,958 
Prepayments and other current assets   345,744    380,314    52,673 
                
Total current assets   4,025,789    4,047,143    560,523 
                
Non-current assets:               
Long-term restricted cash   20,000    20,000    2,770 
Property, equipment and software, net   322,806    282,660    39,148 
Right-of-use assets, net   16,353    13,225    1,832 
Other non-current assets   21,621    20,081    2,781 
Deferred tax assets, net   18,804    18,804    2,604 
                
Total non-current assets   399,584    354,770    49,135 
                
Total assets   4,425,373    4,401,913    609,658 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities:               
Accounts and notes payable   764,741    726,011    100,551 
Salary and welfare payable   143,653    136,805    18,947 
Taxes payable   214,738    213,999    29,639 
Current portion of lease liabilities   7,399    5,849    810 
Accruals and other current liabilities   336,959    411,791    57,032 
                
Total current liabilities   1,467,490    1,494,455    206,979 
                
Non-current liabilities:               
Non-current lease liabilities   7,641    6,497    900 
Amounts due to related parties-non-current   1,000    1,000    138 
Other non-current liabilities   195,585    201,019    27,841 
                
Total non-current liabilities   204,226    208,516    28,879 
                
Total liabilities   1,671,716    1,702,971    235,858 
                
SHAREHOLDERS' EQUITY               
Ordinary shares   347    347    48 
Treasury stock   (5,549)   (11,756)   (1,628)
Additional paid-in capital   11,791,570    11,741,049    1,626,117 
Statutory reserves   16,593    16,593    2,298 
Accumulated other comprehensive income   182,824    185,186    25,648 
Accumulated deficit   (9,232,128)   (9,232,477)   (1,278,683)
                
Total shareholders' equity   2,753,657    2,698,942    373,800 
                
Total liabilities and shareholders' equity   4,425,373    4,401,913    609,658 

 

 

 

 

Smart Share Global Limited

Unaudited Consolidated Statements of Comprehensive (Loss)/Income

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

                 

   Three months ended  March 31, 
   2023   2024 
   RMB   RMB   US$ 
Revenues:               
Mobile device charging   813,045    378,076    52,363 
Others   9,790    19,130    2,649 
                
Total revenues   822,835    397,206    55,012 
                
Cost of revenues   (127,389)   (167,737)   (23,231)
Research and development expenses   (21,444)   (19,674)   (2,725)
Sales and marketing expenses   (665,274)   (204,494)   (28,322)
General and administrative expenses   (26,771)   (26,584)   (3,682)
Other operating income/(loss)   2,268    (1,474)   (204)
                
Loss from operations   (15,775)   (22,757)   (3,152)
                
Interest and investment income   26,236    30,589    4,237 
Interest expense to third parties   (4,228)   -    - 
Foreign exchange gain/(loss), net   4,760    (566)   (78)
Other (loss)/income, net   (183)   73    10 
                
Income before income tax expense   10,810    7,339    1,017 
                
Income tax expense   -    (7,688)   (1,065)
                
Net income/(loss)   10,810    (349)   (48)
                
Net income/(loss) attributable to ordinary shareholders of Smart Share Global Limited   10,810    (349)   (48)
                
Other comprehensive (loss)/income               
Foreign currency translation adjustments, net of nil tax   (18,067)   2,362    327 
                
Total comprehensive (loss)/income   (7,257)   2,013    279 
                
Comprehensive (loss)/income attributable to ordinary shareholders of Smart Share Global Limited   (7,257)   2,013    279 
                
Weighted average number of ordinary shares used in computing net income/(loss) per share               
- basic   519,242,751    518,487,159    518,487,159 
- diluted   519,353,842    518,487,159    518,487,159 
                
Net income/(loss) per share attributable to ordinary shareholders               
- basic   0.02    0.00    0.00 
- diluted   0.02    0.00    0.00 
                
Net income/(loss) per ADS attributable to ordinary shareholders               
- basic   0.04    0.00    0.00 
- diluted   0.04    0.00    0.00 

 

 

 

 

Smart Share Global Limited

Unaudited Reconciliation of  GAAP and Non-GAAP Results

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

               

   Three months ended  March 31, 
   2023   2024 
   RMB   RMB   US$ 
Net income/(loss)   10,810    (349)   (48)
Add:               
Share-based compensation   6,285    4,183    579 
Less:               
Adjusted for tax effects   -    -    - 
                
Adjusted net income (non-GAAP)   17,095    3,834    531 

 

 

 


 

 


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