Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

 

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.

 

o

Revenues 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.

 

o

Revenues 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:	[phone]
United States:	[phone]
Mainland China:	[phone]
China Hong Kong:	[phone]
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

[e-mail]

 

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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