• Smart Share Global Limited Announces Fourth Quarter and Fiscal Year 2021 Results

    المصدر: Nasdaq GlobeNewswire / 11 مارس 2022 06:00:00   America/New_York

    Number of POIs1 reached 845 thousand as of the end of the fourth quarter of 2021
    Newly registered users2 were 13.8 million during the fourth quarter of 2021

    SHANGHAI, China, March 11, 2022 (GLOBE NEWSWIRE) -- Smart Share Global Limited (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2021.

    HIGHLIGHTS FOR THE FOURTH QUARTER OF 2021 AND FISCAL YEAR 2021

    • As of December 31, 2021, the Company’s services were available in 845 thousand POIs, compared with 820 thousand as of September 30, 2021 and 664 thousand as of December 31, 2020.
    • During the quarter, the Company continued its power bank optimization program that dynamically adjusts the suitable number of power banks in a given cabinet based on localized usage trends. As of December 31, 2021, the Company’s available-for-use power banks3 were 5.7 million, compared with 5.8 million as of September 30, 2021 and 5.4 million as of December 31, 2020.
    • As of December 31, 2021, cumulative registered users reached 286.9 million, with 13.8 million newly registered users acquired during the quarter.

    “We are pleased to announce fourth quarter results above our guidance despite the continuous headwind from regional COVID outbreaks on our operations,” said Mars Guangyuan Cai, Chairman and Chief Executive Officer. “In the fourth quarter of 2021 and into the first quarter of 2022, we are seeing a general increase in COVID outbreaks both in terms of frequency and scale. Despite the headwind, we continue to efficiently expand our regional coverage, POI network and network partners. We remain confident in the long-term development of the mobile device charging service industry as we believe the service we provide is fundamental to the way of life here in China.”

    “During these special times, we continue to implement measures to lessen our exposure to such external events and strengthen our long-term competitive advantages,” said Peifeng Xu, Chief Operating Officer. “We also continue to expand our coverage through a combination of the direct and network models in order to more efficiently gain market share within the market. Our ability to leverage both models gives us the market-leading capability to acquire more high-quality POIs and KAs, which in turn helps us acquire more potential users.”

    “With the headwind from COVID outbreaks continuing into 2022, we continue to implement measures that increase our asset efficiency and lower the share of fixed expenses in our operation,” said Maria Yi Xin, Chief Financial Officer. “Measures such as implementing the power bank optimization program, lowering of cabinet costs and increasing of our employee efficiency are key initiatives that will help us better navigate ourselves during COVID and will improve Energy Monster’s long-term competitive advantages.”

    FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2021

    Revenues were RMB836.2 million (US$131.2 million4) for the fourth quarter of 2021, representing a 9.7% decrease from the same period in 2020. The decrease was primarily due to the decrease in revenues from mobile device charging business as a result of the impact of COVID-19 during the quarter.

    • Revenues from mobile device charging business decreased by 9.0% to RMB812.1 million (US$127.4 million) for the fourth quarter of 2021 from RMB892.7 million in the same period of 2020. The decrease was primarily attributable to the impact of COVID-19 during the fourth quarter of 2021.
    • Revenues from power bank sales decreased by 25.7% to RMB18.9 million (US$3.0 million) for the fourth quarter of 2021 from RMB25.4 million in the same period of 2020. The decrease was primarily attributable to the impact of COVID-19 during the fourth quarter of 2021.
    • Revenues from other revenues, which mainly comprise of revenue from adverting services, decreased by 34.7% to RMB5.2 million (US$0.8 million) for the fourth quarter of 2021 from RMB8.0 million in the same period of 2020. The decrease was primarily attributable to the decrease in user traffic as a result of the impact of COVID-19 during the fourth quarter of 2021.

    Cost of revenues increased by 39.7% to RMB154.1 million (US$24.2 million) for the fourth quarter of 2021 from RMB110.3 million in the same period last year. The increase of cost of revenues was primarily due to the increase in operational scale resulting in increases in depreciation and maintenance cost.

    Research and development expenses increased by 15.5% to RMB23.6 million (US$3.7 million) for the fourth quarter of 2021 from RMB20.4 million in the same period last year. The increase was primarily due to the increase in personnel related expenses.

    Sales and marketing expenses increased by 4.2% to RMB704.3 million (US$110.5 million) for the fourth quarter of 2021 from RMB676.1 million in the same period last year. The increase was primarily due to the increase in personnel related expenses and incentive fees to network partners.

    General and administrative expenses increased by 30.3% to RMB31.5 million (US$4.9 million) for the fourth quarter of 2021 from RMB24.2 million in the same period last year. The increase was primarily due to the increase in professional service expenses and personnel related expenses.

    Loss from operations for the fourth quarter of 2021 was RMB69.4 million (US$10.9 million), compared to an income from operations of RMB101.8 million in the same period last year. The loss from operations was primarily attributable to the impact of regional COVID-19 outbreaks in China.

    Net loss for the fourth quarter of 2021 was RMB68.5 million (US$10.7 million), compared to a net income of RMB74.3 million in the same period last year.

    Adjusted net loss5 for the fourth quarter of 2021 was RMB61.3 million (US$9.6 million), compared to an adjusted net income of RMB84.7 million in the same period last year.

    Net loss attributable to ordinary shareholders for the fourth quarter of 2021 was RMB68.5 million (US$10.7 million), compared to a net loss attributable to ordinary shareholders of RMB1.2 billion in the same period last year.

    As of December 31, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.8 billion (US$432.4 million). 

    FINANCIAL RESULTS FOR FISCAL YEAR 2021

    Revenues were RMB3.6 billion (US$562.6 million) in 2021, representing a 27.6% year-over-year increase. The increase was primarily due to the increase in revenues from mobile device charging business.

    • Revenues from mobile device charging business increased by 27.4% to RMB3.5 billion (US$542.3 million) in 2021, compared to RMB2.7 billion in 2020. The increase was primarily due to the recovery from COVID-19 during the first half of 2021 and the increases in the number of POIs and available-for-use power banks.        
    • Revenues from power bank sales increased by 32.6% to RMB102.9 million (US$16.1 million) in 2021, compared to RMB77.6 million in 2020. The increase was primarily due to the recovery from COVID-19 during the first half of 2021, increases in the number of POIs, available-for-use power banks and customers that purchased the power banks.
    • Revenues from other revenues, which mainly comprise of revenue from adverting services, increased by 32.2% to RMB26.7 million (US$4.2 million) in 2021, compared to RMB20.2 million in 2020. The increase was primarily due to the recovery from COVID-19 during the first half of 2021 and the increases in users and advertisement efficiency.

    Cost of revenues was RMB557.2 million (US$87.4 million) in 2021, representing a 29.3% year-over-year increase. The increase of cost of revenues was primarily due to the increase in operational scale resulting in increases in depreciation and maintenance cost.

    Research and development expenses were RMB93.9 million (US$14.7 million) in 2021, representing a 32.3% year-over-year increase. The increase was primarily due to the increase in personnel related expenses.

    Sales and marketing expenses were RMB3.0 billion (US$463.1 million) in 2021, representing a 39.1% year-over-year increase. The increase was primarily due to the increase in incentive fees paid to location partners and network partners from the increase in mobile device charging business revenues and the increase in personnel related expenses.

    General and administrative expenses were RMB119.0 million (US$18.7 million) in 2021, representing a 49.5% year-over-year increase. The increase was primarily due to the increase in personnel related expenses and professional service expenses.

    Loss from operations was RMB109.0 million (US$17.1 million), compared to an income from operations of RMB131.8 million in 2020. The loss from operations was primarily attributable to the impact of regional COVID-19 outbreaks in China in the second half of 2021.

    Net loss was RMB124.6 million (US$19.6 million), compared to a net income of RMB75.4 million in 2020.

    Adjusted net loss was RMB93.9 million (US$14.7 million), compared to an adjusted net income of RMB112.6 million in 2020.

    Net loss attributable to ordinary shareholders was RMB5.0 billion (US$778.1 million), compared to a net loss attributable to ordinary shareholders of RMB3.1 billion in 2020.

    BUSINESS OUTLOOK
    For the first quarter of 2022 ending March 31, 2022, the Company expects to generate RMB750 million to RMB780 million of revenues. This forecast considers the potential impact of the ongoing COVID-19 outbreaks and reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of COVID-19 on the economy in China.

    CONFERENCE CALL INFORMATION
    The company will hold a conference call at 8:00 A.M. Eastern Time on Friday, March 11, 2022 (9:00 P.M. Beijing Time on Friday, March 11, 2022) to discuss the financial results. Listeners may access the call by dialing the following numbers:

    International:+65-6780-1201
    United States:+1-332-208-9458
    Mainland China:+86-400-820-6895
    China Hong Kong:+852-3018-8307
      
    Conference ID / Passcode:7598034

    Participants may also access the call via webcast: https://edge.media-server.com/mmc/p/pc982h89

    A telephone replay will be available through March 18, 2022. The dial-in details are as follows:

    International:+61-2-8199-0299
    United States:+1-855-452-5696
    Mainland China:+86-400-632-2162
    China Hong Kong:+852-3051-2780
      
    Access Code:7598034

    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 December 31, 2021, the company had 5.7 million power banks in 845,000 POIs across more than 1,700 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; the risk that COVID-19 or other health risks in China or globally could adversely affect its operations or financial results; 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/(loss) 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/(loss) as net income/(loss) excluding share-based compensation expenses and change in fair value of warrant liabilities in connection with a warrant to purchase Series A-1 Preferred Shares at a fixed price provided to one of the Company’s shareholders. 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, 2020  December 31, 2021  December 31, 2021
    RMBRMBUS$
       
    ASSETS        
    Current assets:        
    Cash and cash equivalents 1,252,493   1,296,924   203,516 
    Restricted cash 51,008   19,671   3,087 
    Short-term investments 170,552   1,418,721   222,628 
    Accounts receivable, net 18,743   14,881   2,335 
    Notes receivable -   5,622   882 
    Inventory -   4,373   686 
    Prepayments and other current assets 253,020   487,540   76,506 
             
    Total current assets 1,745,816   3,247,732   509,640 
             
    Non-current assets:        
    Long-term restricted cash -   20,000   3,138 
    Property, equipment and software, net 963,453   945,226   148,327 
    Long-term prepayments to related parties 23,591   20,037   3,144 
    Other non-current assets 52,775   164,986   25,890 
             
    Total non-current assets 1,039,819   1,150,249   180,499 
             
    Total assets 2,785,635   4,397,981   690,139 
             
    LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' (DEFICIT)/EQUITY        
    Current liabilities:        
    Short-term borrowings 24,500   -   - 
    Accounts and notes payable 406,760   551,751   86,582 
    Amounts due to related parties-current 77,939   23,290   3,655 
    Salary and welfare payable 72,436   120,444   18,900 
    Taxes payable 7,134   10,195   1,600 
    Financing payable-current 46,854   84,175   13,209 
    Accruals and other current liabilities 219,210   238,510   37,427 
             
    Total current liabilities 854,833   1,028,365   161,373 
             
    Non-current liabilities:        
    Financing payable-non-current 197,297   85,658   13,442 
    Amounts due to related parties-non-current 1,000   1,000   157 
    Other non-current liability -   16,489   2,587 
    Deferred tax liabilities, net 33,891   34,445   5,405 
             
    Total non-current liabilities 232,188   137,592   21,591 
             
    Total liabilities 1,087,021   1,165,957   182,964 
             
    MEZZANINE EQUITY        
    Mezzanine equity 5,137,874   -   - 
             
    SHAREHOLDERS' (DEFICIT)/EQUITY        
    Ordinary shares 83   347   54 
    Treasury stock -   (27,784)  (4,360)
    Additional paid-in capital -   11,799,301   1,851,568 
    Statutory reserves 16,593   16,593   2,604 
    Accumulated other comprehensive income 201,823   51,556   8,090 
    Accumulated deficit (3,657,759)  (8,607,989)  (1,350,781)
             
    Total shareholders' (deficit)/equity (3,439,260)  3,232,024   507,175 
             
    Total liabilities, mezzanine equity and shareholders' (deficit)/equity 2,785,635   4,397,981   690,139 
             


    Smart Share Global Limited
    Unaudited Consolidated Statements of Comprehensive Income/(Loss)
    (In thousands, except share and per share data, unless otherwise noted)
                 
      Three months ended December 31, Twelve months ended December 31,
      2020  2021 2020 2021
      RMB RMB US$ RMB RMB US$
                 
    Revenues:            
    Mobile device charging business 892,702  812,072  127,432  2,711,541  3,455,797  542,290 
    Power bank sales 25,413  18,873  2,962  77,598  102,857  16,141 
    Others 8,011  5,232  821  20,220  26,737  4,196 
                 
    Total revenues 926,126  836,177  131,215  2,809,359  3,585,391  562,627 
                 
    Cost of revenues (110,259) (154,070) (24,177) (430,773) (557,177) (87,433)
    Research and development expenses (20,446) (23,612) (3,705) (70,938) (93,882) (14,732)
    Sales and marketing expenses (676,097) (704,277) (110,516) (2,121,006) (2,950,972) (463,072)
    General and administrative expenses (24,189) (31,516) (4,946) (79,600) (118,973) (18,669)
    Other operating income 6,617  7,889  1,238  24,790  26,614  4,176 
                 
    Income/(loss) from operations 101,752  (69,409) (10,891) 131,832  (108,999) (17,103)
                 
    Interest and investment income 4,207  15,378  2,413  10,271  30,560  4,796 
    Interest expense to third parties (10,773) (7,673) (1,204) (39,596) (38,051) (5,971)
    Interest expense to a related party (342) -  -  (1,032) -  - 
    Foreign exchange losses, net -  (6,778) (1,064) (485) (7,935) (1,245)
    Other income/(loss), net (123) 2  -  443  (190) (30)
    Change in fair value of warrant liabilities (2,113) -  -  (7,442) -  - 
                 
    Income/(loss) before income tax expense 92,608  (68,480) (10,746) 93,991  (124,615) (19,553)
                 
    Income tax expense (18,281) -  -  (18,564) -  - 
                 
    Net income/(loss) 74,327  (68,480) (10,746) 75,427  (124,615) (19,553)
                 
    Accretion of convertible redeemable preferred shares (1,320,288) -  -  (3,206,324) (4,729,719) (742,196)
    Deemed dividend to preferred shareholders -  -  -  -  (104,036) (16,326)
    Net loss attributable to ordinary shareholders of Smart Share Global Limited (1,245,961) (68,480) (10,746) (3,130,897) (4,958,370) (778,075)
                 
    Net income/(loss) 74,327  (68,480) (10,746) 75,427  (124,615) (19,553)
                 
    Other comprehensive income            
    Foreign currency translation adjustments, net of nil tax 150,607  (23,697) (3,719) 232,957  (150,267) (23,580)
                 
    Total comprehensive income/(loss) 224,934  (92,177) (14,465) 308,384  (274,882) (43,133)
                 
    Accretion of convertible redeemable preferred shares (1,320,288) -  -  (3,206,324) (4,729,719) (742,196)
    Deemed dividend to preferred shareholders -  -  -  -  (104,036) (16,326)
    Comprehensive loss attributable to ordinary shareholders of Smart Share Global Limited (1,095,354) (92,177) (14,465) (2,897,940) (5,108,637) (801,655)
                 
    Weighted average number of ordinary shares used in computing net loss per share            
    - basic 54,496,937  518,534,809  518,534,809  54,506,733  406,567,584  406,567,584 
                 
    Net loss per share attributable to ordinary shareholders            
    - basic and diluted (22.86) (0.13) (0.02) (57.44) (12.20) (1.91)
                 
    Net loss per ADS attributable to ordinary shareholders            
    - basic and diluted -  (0.26) (0.04) -  (24.38) (3.82)
                 


    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 December 31, Twelve months ended December 31,
     2020 2021 2020 2021
     RMB RMB US$ RMB RMB US$
                
    Net income/(loss)74,327 (68,480) (10,746) 75,427 (124,615) (19,553)
    Add:           
    Share-based compensation8,249 7,200  1,130  29,755 30,711  4,819 
    Change in fair value of warrant liabilities2,113 -  -  7,442 -  - 
    Adjusted net income/(loss) (non-GAAP)84,689 (61,280) (9,616) 112,624 (93,904) (14,734)
                

    _________________________

    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.
    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 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 December 31 , 2021, which was RMB6.3726 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.
    5 See the sections entitled “Non-GAAP Financial Measure” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” in this press release for more information.


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