Smart Share Global Limited Announces Third Quarter 2024 Results

Source: Nasdaq GlobeNewswire / 06 Mar 2025 07:30:01 America/New_York

POIs¹ operated through network partner model reached 96.8% as of the end of the third quarter of 2024
Cumulative registered users² reached 430.2 million as of the end of the third quarter of 2024

SHANGHAI, March 06, 2025 (GLOBE NEWSWIRE) -- Smart Share Global Limited (Nasdaq: EM) (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter ended September 30, 2024.

HIGHLIGHTS FOR THE THIRD QUARTER OF 2024

As of September 30, 2024, the Company’s services were available in 1,274 thousand POIs, compared with 1,267 thousand as of June 30, 2024.
As of September 30, 2024, the Company’s available-for-use power banks³ were 9.5 million.
As of September 30, 2024, cumulative registered users reached 430.2 million, with 13.1 million newly registered users acquired during the quarter.
Mobile device charging orders⁴ for the third quarter of 2024 was 148.1 million, compared with 176.5 million for the third quarter of 2023.
As of September 30, 2024, 96.8% of POIs were operated under our network partner model, compared with 89.2% as of June 30, 2024.
During the third quarter of 2024, the Company successfully completed its transition to the network partners model, accompanied by a retrospective review of the network partner model throughout the transition period.

FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2024
Revenues were RMB490.8 million (US$69.9 million⁵) for the third quarter of 2024, representing a 20.0% decrease from the same period in 2023. The decrease was primarily due to the decrease in revenues generated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model.

Mobile device charging revenues, which consist of revenues generated under both the direct and network partner models, decreased by 34.8% to RMB367.9 million (US$52.4 million) for the third quarter of 2024, from RMB564.2 million in the same period of 2023.
- Revenues generated under the network partner model, comprising of (i) mobile device charging solution fees, which increased by 12.2% year-over-year to RMB65.9 million, and (ii) power bank, cabinet and other related sales, which increased by 10.3% year-over-year to RMB243.9 million, increased by 10.7% to RMB309.8 million for the third quarter of 2024, from RMB280.0 million in the same period of 2023. The increase was primarily due to the increase in the number of POIs operated under the network partner model as part of the Company’s overall strategy of shifting towards the network partner model.
- Revenues generated under the direct model, comprising of mobile device charging service fees of RMB57.1 million and power bank sales of RMB0.9 million, decreased by 79.6% to RMB58.0 million for the third quarter of 2024, from RMB284.2 million in the same period of 2023. The decrease was primarily due to the decrease in the number of POIs operated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model.
Other revenues, which primarily comprise of revenues from new business initiatives and advertising services, increased by 149.4% to RMB122.9 million (US$17.5 million) for the third quarter of 2024, from RMB49.3 million in the same period of 2023. The increase was primarily attributable to new business initiatives.

Cost of revenues increased by 38.5% to RMB298.4 million (US$42.5 million) for the third quarter of 2024, from RMB215.5 million in the same period last year. The increase was primarily due to the increase in cost in association with the increase in new business initiatives and cost of cabinet sold.

Research and development expenses decreased by 15.8% to RMB20.0 million (US$2.9 million) for the third quarter of 2024, from RMB23.8 million in the same period last year. The decrease was primarily due to the decrease in personnel related expenses.

Sales and marketing expenses decreased by 51.8% to RMB142.6 million (US$20.3 million) for the third quarter of 2024 from RMB296.0 million in the same period last year. The decrease was primarily due to the decrease in incentive fees paid to location partners under the direct model and personnel related expenses.

General and administrative expenses increased by 10.0% to RMB41.6 million (US$5.9 million) for the third quarter of 2024, compared to RMB37.8 million in the same period last year. The increase was primarily due to the increase in reserve for doubtful accounts in relation to the increasing contribution of the network partner model.

Loss from operations for the third quarter of 2024 was RMB5.1 million (US$0.7 million), compared to an income from operations of RMB33.4 million in the same period last year.

Net income for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income of RMB49.0 million in the same period last year.

Non-GAAP adjusted net income for the third quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a non-GAAP adjusted net income of RMB54.2 million in the same period last year.

Net income attributable to ordinary shareholders for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income attributable to ordinary shareholders of RMB49.0 million in the same period last year.

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.0 billion (US$432.0 million).

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

	2023Q3	2024Q2	2024Q3
	thousands RMB	thousands RMB	thousands RMB

Mobile device charging:
Network Partner Model	279,960	292,505	309,837
Mobile device charging solution	58,759	61,508	65,935
Power bank, cabinet and other related sales	221,201	230,997	243,902
Direct Model	284,233	118,105	58,048
Mobile device charging service	278,099	115,863	57,113
Power bank sales	6,134	2,242	935
Total mobile device charging	564,193	410,610	367,885

CORRECTIONS OF PREVIOUSLY ANNOUNCED INTERIM FINANCIAL INFORMATION AND PREVIOUSLY ISSUED FINANCIAL STATEMENTS
In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F. The section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” sets forth the specific corrections made to previously announced interim financial information and previously issued financial statements.

ABOUT SMART SHARE GLOBAL LIMITED
Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is a leading provider of mobile device charging service in China with an extensive network of partners powered by its own advanced service platform. The Company provides mobile device charging service through its shared power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of September 30, 2024, the Company had 13,000 network partners and 9.5 million power banks in 1,274,000 POIs across more than 2,100 counties and county-level districts in China.

CONTACT US
Investor Relations
Hansen Shi
ir@enmonster.com

SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (“SEC”), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

NON-GAAP FINANCIAL MEASURE
In evaluating its business, the Company considers and uses non-GAAP adjusted net income in reviewing and assessing its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that this non-GAAP financial measure helps identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and have limitations as analytical tools. The Company’s non-GAAP financial measure does not reflect all items of expenses that affect its operations and does not represent the residual cash flow available for discretionary expenditures. Further, the Company’s non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling its non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating performance. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure.

The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Smart Share Global Limited
Unaudited Consolidated Balance Sheets
(In thousands, except for share and per share data, unless otherwise noted)

	December 31, 2023		September 30, 2024		September 30, 2024
	RMB		RMB		US$

ASSETS
Current assets:
Cash and cash equivalents	588,644		256,963		36,617
Restricted cash	173,246		114,291		16,286
Short-term investments	2,541,889		2,640,281		376,237
Accounts receivable, net	268,743		338,646		48,257
Inventory	106,530		162,508		23,157
Prepayments and other current assets	339,251		401,626		57,232

Total current assets	4,018,303		3,914,315		557,786

Non-current assets:
Long-term restricted cash	20,000		20,000		2,850
Property, equipment and software, net	322,806		190,720		27,177
Right-of-use assets, net	16,353		9,010		1,284
Other non-current assets	20,469		6,759		963
Deferred tax assets, net	22,165		1,252		178

Total non-current assets	401,793		227,741		32,452

Total assets	4,420,096		4,142,056		590,238

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable	767,669		577,508		82,295
Salary and welfare payable	143,653		133,204		18,981
Taxes payable	230,763		207,414		29,556
Current portion of lease liabilities	7,399		3,585		511
Accruals and other current liabilities	336,959		352,341		50,209

Total current liabilities	1,486,443		1,274,052		181,552

Non-current liabilities:
Non-current lease liabilities	7,641		5,090		725
Amounts due to related parties-non-current	1,000		1,000		142
Other non-current liabilities	195,585		215,780		30,748

Total non-current liabilities	204,226		221,870		31,615

Total liabilities	1,690,669		1,495,922		213,167

SHAREHOLDERS' EQUITY
Ordinary shares	347		347		49
Treasury stock	(5,549	)	(45,964	)	(6,549	)
Additional paid-in capital	11,791,570		11,748,257		1,674,113
Statutory reserves	16,593		16,593		2,364
Accumulated other comprehensive income	182,824		168,951		24,075
Accumulated deficit	(9,256,358	)	(9,242,050	)	(1,316,981	)

Total shareholders' equity	2,729,427		2,646,134		377,071

Total liabilities and shareholders' equity	4,420,096		4,142,056		590,238

Smart Share Global Limited
Unaudited Consolidated Statements of Comprehensive Income/ (Loss)
(In thousands, except for share and per share data, unless otherwise noted)

	Three months ended September 30,						Nine months ended September 30,
	2023		2024				2023		2024
	RMB		RMB		US$		RMB		RMB		US$
							As corrected*
Revenues:
Mobile device charging	564,193		367,885		52,423		2,403,516		1,156,571		164,810
Others	49,273		122,898		17,513		68,511		194,341		27,693

Total revenues	613,466		490,783		69,936		2,472,027		1,350,912		192,503

Cost of revenues	(215,461	)	(298,396	)	(42,521	)	(1,014,390	)	(685,733	)	(97,716	)
Research and development expenses	(23,799	)	(20,042	)	(2,856	)	(63,894	)	(60,528	)	(8,625	)
Sales and marketing expenses	(295,990	)	(142,614	)	(20,322	)	(1,258,883	)	(523,545	)	(74,605	)
General and administrative expenses	(37,777	)	(41,563	)	(5,923	)	(96,535	)	(108,511	)	(15,463	)
Other operating (loss)/income	(7,023	)	6,763		964		(17,033	)	(4,030	)	(574	)

Income/(loss) from operations	33,416		(5,069	)	(722	)	21,292		(31,435	)	(4,480	)

Interest and investment income	32,160		27,919		3,978		86,450		87,262		12,435
Interest expense to third parties	-		-		-		(4,228	)	-		-
Foreign exchange loss, net	4,299		5,700		812		(8,210	)	2,597		370
Other (loss)/income, net	(16	)	19		3		(27	)	87		12

Income before income tax expense	69,859		28,569		4,071		95,277		58,511		8,337

Income tax expense	(20,849	)	(24,323	)	(3,466	)	(20,231	)	(44,203	)	(6,299	)

Net income	49,010		4,246		605		75,046		14,308		2,038

Net income attributable to ordinary shareholders of Smart Share Global Limited	49,010		4,246		605		75,046		14,308		2,038

Other comprehensive (loss)/income
Foreign currency translation adjustments, net of nil tax	(12,332	)	(22,136	)	(3,154	)	38,090		(13,873	)	(1,977	)

Total comprehensive income/(loss)	36,678		(17,890	)	(2,549	)	113,136		435		61

Comprehensive income/(loss) attributable to ordinary shareholders of Smart Share Global Limited	36,678		(17,890	)	(2,549	)	113,136		435		61

Weighted average number of ordinary shares used in computing net income per share
- basic	520,075,932		507,084,501		507,084,501		519,795,778		512,825,904		512,825,904
- diluted	520,075,932		512,101,780		512,101,780		519,795,778		517,894,151		517,894,151

Net income per share attributable to ordinary shareholders
- basic	0.09		0.01		0.00		0.14		0.03		0.00
- diluted	0.09		0.01		0.00		0.14		0.03		0.00

Net income per ADS attributable to ordinary shareholders
- basic	0.19		0.02		0.00		0.29		0.06		0.01
- diluted	0.19		0.02		0.00		0.29		0.06		0.01

*The corrections as detailed in the section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” were material to the previously announced unaudited consolidated financial information of the Company for the nine months ended September 30, 2023.

Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements

In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F.

The Company is still in the process of assessing the control implications in connection with the identified errors. The Company has previously concluded that it had two material weaknesses in internal control over financial reporting, including (i) the Company’s lack of sufficient competent financial reporting and accounting personnel with appropriate understanding of accounting principles generally accepted in the United States of America, or U.S. GAAP, to address complex U.S. GAAP technical accounting issues and to prepare and review its consolidated financial statements, including disclosure notes, in accordance with U.S. GAAP and financial reporting requirements set forth by the SEC, and (ii) the Company’s lack of period end financial closing policies and procedures for preparation of consolidated financial statements, including disclosure notes, which are in compliance with U.S. GAAP and the SEC’s reporting and disclosure requirements. As a result of the errors identified, the Company could identify additional material weaknesses as part of finalizing its analysis related to its annual report process.

The Company assessed the effects of the corrections in previously announced interim financial information and previously issued financial statements for the prior periods affected and determined that they were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023, where the corrected amounts are labelled as “As corrected” in the following tables, but are not material to any of the other prior interim financial information or annual financial statements of the Company, where the corrected amounts are labelled as “As revised” in the following tables.

The following tables present the aggregated impact of the corrections to the financial information for the prior periods. The previously issued consolidated financial statements as of December 31, 2022 and 2023 and for the years then ended will be revised when they are presented in the Company’s Form 20-F for the year ended December 31, 2024.

	Year ended December 31, 2021
	As Previously Reported		Corrections		As revised		Error #
			(Amounts in thousands of RMB)

Sales and marketing expenses	(2,950,972	)	(3,457	)	(2,954,429	)	2>, 3>
General and administrative expenses	(118,973	)	(1,847	)	(120,820	)	3>
Loss from operations	(108,999	)	(5,304	)	(114,303	)
Loss before income tax expense	(124,615	)	(5,304	)	(129,919	)
Net loss	(124,615	)	(5,304	)	(129,919	)
Net loss attributable to ordinary shareholders	(4,958,370	)	(5,304	)	(4,963,674	)
Total comprehensive loss	(274,882	)	(5,304	)	(280,186	)
Net loss per share attributable to ordinary shareholders
- basic and diluted	(12.20	)	(0.01	)	(12.21	)
Net loss per ADS attributable to ordinary shareholders
- basic and diluted	(24.40	)	(0.02	)	(24.42	)
Adjusted net loss (non-GAAP)	(93,904	)	(5,304	)	(99,208	)

	Three months ended March 31, 2022						Three months ended June 30, 2022						Three months ended September 30, 2022						Three months ended December 31, 2022
	As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Cost of revenues	(127,553	)	(398	)	(127,951	)	(162,869	)	(3,885	)	(166,754	)	(125,548	)	(6,545	)	(132,093	)	(140,953	)	(5,484	)	(146,437	)	1>
Sales and marketing expenses	(659,679	)	(919	)	(660,598	)	(664,918	)	(2,318	)	(667,236	)	(752,534	)	(325	)	(752,859	)	(635,199	)	760		(634,439	)	2>, 3>
General and administrative expenses	(27,376	)	(145	)	(27,521	)	(28,458	)	(199	)	(28,657	)	(29,421	)	(212	)	(29,633	)	(27,148	)	(812	)	(27,960	)	3>
Other operating income/(loss)	5,277		-		5,277		(1,565	)	(821	)	(2,386	)	19,846		(1,287	)	18,559		(10,682	)	(796	)	(11,478	)	1>
Loss from operations	(99,316	)	(1,462	)	(100,778	)	(191,028	)	(7,223	)	(198,251	)	(96,974	)	(8,369	)	(105,343	)	(233,927	)	(6,332	)	(240,259	)
Loss before income tax expense	(96,411	)	(1,462	)	(97,873	)	(184,527	)	(7,223	)	(191,750	)	(95,754	)	(8,369	)	(104,123	)	(220,072	)	(6,332	)	(226,404	)
Income tax expense	-		365		365		-		1,131		1,131		-		1,372		1,372		(114,476	)	1,005		(113,471	)	All
Net loss	(96,411	)	(1,097	)	(97,508	)	(184,527	)	(6,092	)	(190,619	)	(95,754	)	(6,997	)	(102,751	)	(334,548	)	(5,327	)	(339,875	)
Net loss attributable to ordinary shareholders	(96,411	)	(1,097	)	(97,508	)	(184,527	)	(6,092	)	(190,619	)	(95,754	)	(6,997	)	(102,751	)	(334,548	)	(5,327	)	(339,875	)
Total comprehensive loss	(102,246	)	(1,097	)	(103,343	)	(108,881	)	(6,092	)	(114,973	)	(21,459	)	(6,997	)	(28,456	)	(366,282	)	(5,327	)	(371,609	)
Net loss per share attributable to ordinary shareholders
- basic and diluted	(0.20	)	0.01		(0.19	)	(0.36	)	(0.01	)	(0.37	)	(0.18	)	(0.02	)	(0.20	)	(0.64	)	(0.02	)	(0.66	)
Net loss per ADS attributable to ordinary shareholders
- basic and diluted	(0.40	)	0.02		(0.38	)	(0.72	)	(0.02	)	(0.74	)	(0.36	)	(0.04	)	(0.40	)	(1.28	)	(0.03	)	(1.31	)
Adjusted net loss (non-GAAP)	(89,695	)	(1,097	)	(90,792	)	(177,491	)	(6,092	)	(183,583	)	(88,638	)	(6,997	)	(95,635	)	(327,171	)	(5,327	)	(332,498	)

	Six months ended June 30, 2022						Nine months ended September 30, 2022						Year ended December 31, 2022
	As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Cost of revenues	(290,422	)	(4,283	)	(294,705	)	(415,970	)	(10,828	)	(426,798	)	(556,923	)	(16,312	)	(573,235	)	1>
Sales and marketing expenses	(1,324,597	)	(3,237	)	(1,327,834	)	(2,077,131	)	(3,562	)	(2,080,693	)	(2,712,330	)	(2,802	)	(2,715,132	)	2>, 3>
General and administrative expenses	(55,834	)	(344	)	(56,178	)	(85,255	)	(556	)	(85,811	)	(112,403	)	(1,368	)	(113,771	)	3>
Other operating income	3,712		(821	)	2,891		23,558		(2,108	)	21,450		12,876		(2,904	)	9,972		1>
Loss from operations	(290,344	)	(8,685	)	(299,029	)	(387,318	)	(17,054	)	(404,372	)	(621,245	)	(23,386	)	(644,631	)
Loss before income tax expense	(280,938	)	(8,685	)	(289,623	)	(376,692	)	(17,054	)	(393,746	)	(596,764	)	(23,386	)	(620,150	)
Income tax expense	-		1,496		1,496		-		2,868		2,868		(114,476	)	3,873		(110,603	)	All
Net loss	(280,938	)	(7,189	)	(288,127	)	(376,692	)	(14,186	)	(390,878	)	(711,240	)	(19,513	)	(730,753	)
Net loss attributable to ordinary shareholders	(280,938	)	(7,189	)	(288,127	)	(376,692	)	(14,186	)	(390,878	)	(711,240	)	(19,513	)	(730,753	)
Total comprehensive loss	(211,127	)	(7,189	)	(218,316	)	(232,586	)	(14,186	)	(246,772	)	(598,868	)	(19,513	)	(618,381	)
Net loss per share attributable to ordinary shareholders
- basic and diluted	(0.54	)	(0.02	)	(0.56	)	(0.73	)	(0.02	)	(0.75	)	(1.37	)	(0.04	)	(1.41	)
Net loss per ADS attributable to ordinary shareholders
- basic and diluted	(1.08	)	(0.04	)	(1.12	)	(1.46	)	(0.04	)	(1.50	)	(2.74	)	(0.08	)	(2.82	)
Adjusted net loss (non-GAAP)	(267,186	)	(7,189	)	(274,375	)	(355,824	)	(14,186	)	(370,010	)	(682,995	)	(19,513	)	(702,508	)

	Three months ended March 31, 2023						Three months ended June 30, 2023						Three months ended September 30, 2023						Three months ended December 31, 2023
	As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As corrected*		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Cost of revenues	(127,389	)	(1,355	)	(128,744	)	(668,547	)	(1,638	)	(670,185	)	(214,817	)	(644	)	(215,461	)	(198,711	)	6,910		(191,801	)	1>
Sales and marketing expenses	(665,274	)	(1,253	)	(666,527	)	(295,150	)	(1,216	)	(296,366	)	(298,216	)	2,226		(295,990	)	(248,792	)	1,075		(247,717	)	2>, 3>
General and administrative expenses	(26,771	)	(450	)	(27,221	)	(31,117	)	(420	)	(31,537	)	(37,094	)	(683	)	(37,777	)	(30,546	)	(955	)	(31,501	)	3>
Other operating income/(loss)	2,268		(2,305	)	(37	)	(8,703	)	(1,270	)	(9,973	)	(5,532	)	(1,491	)	(7,023	)	(13,860	)	4,985		(8,875	)	1>
(Loss)/income from operations	(15,775	)	(5,363	)	(21,138	)	13,558		(4,544	)	9,014		34,008		(592	)	33,416		(32,856	)	12,015		(20,841	)
Income before income tax expense	10,810		(5,363	)	5,447		24,515		(4,544	)	19,971		70,451		(592	)	69,859		2,986		12,015		15,001
Income tax expense	-		227		227		-		391		391		(20,442	)	(407	)	(20,849	)	(579	)	(724	)	(1,303	)	All
Net income	10,810		(5,136	)	5,674		24,515		(4,153	)	20,362		50,009		(999	)	49,010		2,407		11,291		13,698
Net income attributable to ordinary shareholders	10,810		(5,136	)	5,674		24,515		(4,153	)	20,362		50,009		(999	)	49,010		2,407		11,291		13,698
Total comprehensive (loss)/income	(7,257	)	(5,136	)	(12,393	)	93,004		(4,153	)	88,851		37,677		(999	)	36,678		(16,787	)	11,291		(5,496	)
Net income per share attributable to ordinary shareholders
- basic and diluted	0.02		(0.01	)	0.01		0.05		(0.01	)	0.04		0.10		(0.01	)	0.09		0.00		0.03		0.03
Net income per ADS attributable to ordinary shareholders
- basic and diluted	0.04		(0.02	)	0.02		0.10		(0.02	)	0.08		0.20		(0.01	)	0.19		0.00		0.05		0.05
Adjusted net income (non-GAAP)	17,095		(5,136	)	11,959		30,055		(4,153	)	25,902		55,214		(999	)	54,215		5,716		11,291		17,007

	Six months ended June 30, 2023						Nine months ended September 30, 2023						Year ended December 31, 2023
	As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As revised		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Cost of revenues	(795,936	)	(2,993	)	(798,929	)	(1,010,753	)	(3,637	)	(1,014,390	)	(1,209,464	)	3,273		(1,206,191	)	1>
Sales and marketing expenses	(960,424	)	(2,469	)	(962,893	)	(1,258,640	)	(243	)	(1,258,883	)	(1,507,432	)	832		(1,506,600	)	2>, 3>
General and administrative expenses	(57,888	)	(870	)	(58,758	)	(94,982	)	(1,553	)	(96,535	)	(125,528	)	(2,508	)	(128,036	)	3>
Other operating loss	(6,435	)	(3,575	)	(10,010	)	(11,967	)	(5,066	)	(17,033	)	(25,827	)	(81	)	(25,908	)	1>
(Loss)/income from operations	(2,217	)	(9,907	)	(12,124	)	31,791		(10,499	)	21,292		(1,065	)	1,516		451
Income before income tax expense	35,325		(9,907	)	25,418		105,776		(10,499	)	95,277		108,762		1,516		110,278
Income tax expense	-		618		618		(20,442	)	211		(20,231	)	(21,021	)	(513	)	(21,534	)	All
Net income	35,325		(9,289	)	26,036		85,334		(10,288	)	75,046		87,741		1,003		88,744
Net income attributable to ordinary shareholders	35,325		(9,289	)	26,036		85,334		(10,288	)	75,046		87,741		1,003		88,744
Total comprehensive income	85,747		(9,289	)	76,458		123,424		(10,288	)	113,136		106,637		1,003		107,640
Net income per share attributable to ordinary shareholders
- basic and diluted	0.07		(0.02	)	0.05		0.16		(0.02	)	0.14		0.17		0.00		0.17
Net income per ADS attributable to ordinary shareholders
- basic and diluted	0.14		(0.04	)	0.10		0.32		(0.03	)	0.29		0.34		0.00		0.34
Adjusted net income (non-GAAP)	47,150		(9,289	)	37,861		102,364		(10,288	)	92,076		108,080		1,003		109,083

	Three months ended March 31, 2024						Three months ended June 30, 2024						Six months ended June 30, 2024
	As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Cost of revenues	(167,737	)	-		(167,737	)	(219,600	)	-		(219,600	)	(387,337	)	-		(387,337	)	1>
Sales and marketing expenses	(204,494	)	2,082		(202,412	)	(180,949	)	2,430		(178,519	)	(385,443	)	4,512		(380,931	)	2>, 3>
General and administrative expenses	(26,584	)	(986	)	(27,570	)	(39,450	)	72		(39,378	)	(66,034	)	(914	)	(66,948	)	3>
Other operating loss	(1,474	)	(593	)	(2,067	)	(8,133	)	(593	)	(8,726	)	(9,607	)	(1,186	)	(10,793	)	1>
Loss from operations	(22,757	)	503		(22,254	)	(6,021	)	1,909		(4,112	)	(28,778	)	2,412		(26,366	)
Income before income tax expense	7,339		503		7,842		20,191		1,909		22,100		27,530		2,412		29,942
Income tax expense	(7,688	)	(354	)	(8,042	)	(11,013	)	(825	)	(11,838	)	(18,701	)	(1,179	)	(19,880	)	All
Net (loss)/income	(349	)	149		(200	)	9,178		1,084		10,262		8,829		1,233		10,062
Net (loss)/income attributable to ordinary shareholders	(349	)	149		(200	)	9,178		1,084		10,262		8,829		1,233		10,062
Total comprehensive income	2,013		149		2,162		15,079		1,084		16,163		17,092		1,233		18,325
Net (loss)/ income per share attributable to ordinary shareholders
- basic and diluted	(0.00	)	0.00		(0.00	)	0.02		0.00		0.02		0.02		0.00		0.02
Net (loss)/ income per ADS attributable to ordinary shareholders
- basic and diluted	(0.00	)	0.00		(0.00	)	0.04		0.00		0.04		0.03		0.01		0.04
Adjusted net income (non-GAAP)	3,834		149		3,983		15,212		1,084		16,296		19,046		1,233		20,279

	As of March 31, 2022						As of June 30, 2022						As of September 30, 2022
	As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Accounts receivable, net	11,616		-		11,616		16,729		-		16,729		13,862		-		13,862		3>
Prepayments and other current assets	396,431		5,399		401,830		408,906		2,406		411,312		365,891		(51	)	365,840		2>, 3>
Total current assets	3,158,544		5,399		3,163,943		3,296,072		2,406		3,298,478		3,473,368		(51	)	3,473,317
Deferred tax assets	-		-		-		-		-		-		-		-		-
Other non-current assets	143,384		(317	)	143,067		114,696		(317	)	114,379		75,356		(319	)	75,037		3>
Total non-current assets	1,085,178		(317	)	1,084,861		1,011,567		(317	)	1,011,250		970,140		(319	)	969,821
Total assets	4,243,722		5,082		4,248,804		4,307,639		2,089		4,309,728		4,443,508		(370	)	4,443,138
Accounts and notes payable	533,924		11,866		545,790		691,115		11,391		702,506		796,380		9,469		805,849		2>
Tax payable	8,373		33		8,406		33,048		3,607		36,655		93,077		10,067		103,144		All
Current Liabilities	992,753		11,899		1,004,652		1,176,270		14,998		1,191,268		1,336,208		19,536		1,355,744
Total liabilities	1,120,470		11,899		1,132,369		1,290,251		14,998		1,305,249		1,441,126		19,536		1,460,662
Accumulated deficit	(8,704,399	)	(6,817	)	(8,711,216	)	(8,888,927	)	(12,909	)	(8,901,836	)	(8,984,680	)	(19,906	)	(9,004,586	)	All
Total shareholders' equity	3,123,252		(6,817	)	3,116,435		3,017,388		(12,909	)	3,004,479		3,002,382		(19,906	)	2,982,476
Total liabilities and shareholders' equity	4,243,722		5,082		4,248,804		4,307,639		2,089		4,309,728		4,443,508		(370	)	4,443,138


	As of March 31, 2023						As of June 30, 2023						As of September 30, 2023
	As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Accounts receivable, net	17,203		-		17,203		243,068		(29	)	243,039		243,771		(524	)	243,247		3>
Prepayments and other current assets	302,793		(4,234	)	298,559		401,716		(6,548	)	395,168		349,793		(4,368	)	345,425		2>, 3>
Total current assets	3,420,919		(4,234	)	3,416,685		3,916,080		(6,577	)	3,909,503		3,991,784		(4,892	)	3,986,892
Deferred tax assets	30,986		3,873		34,859		30,986		3,873		34,859		23,070		3,873		26,943		All
Other non-current assets	28,683		(703	)	27,980		19,402		(1,058	)	18,344		19,630		(1,150	)	18,480		3>
Total non-current assets	978,630		3,170		981,800		391,352		2,815		394,167		419,466		2,723		422,189
Total assets	4,399,549		(1,064	)	4,398,485		4,307,432		(3,762	)	4,303,670		4,411,250		(2,169	)	4,409,081
Accounts and notes payable	909,320		6,656		915,976		688,213		5,594		693,807		794,811		5,644		800,455		2>
Tax payable	169,452		22,649		192,101		262,152		25,166		287,318		215,253		27,708		242,961		All
Current Liabilities	1,543,809		29,305		1,573,114		1,382,863		30,760		1,413,623		1,444,630		33,352		1,477,982
Total liabilities	1,766,006		29,305		1,795,311		1,579,012		30,760		1,609,772		1,642,733		33,352		1,676,085
Accumulated deficit	(9,309,059	)	(30,369	)	(9,339,428	)	(9,284,544	)	(34,522	)	(9,319,066	)	(9,234,535	)	(35,521	)	(9,270,056	)	All
Total shareholders' equity	2,633,543		(30,369	)	2,603,174		2,728,420		(34,522	)	2,693,898		2,768,517		(35,521	)	2,732,996
Total liabilities and shareholders' equity	4,399,549		(1,064	)	4,398,485		4,307,432		(3,762	)	4,303,670		4,411,250		(2,169	)	4,409,081

	As of December 31, 2021						As of December 31, 2022						As of December 31, 2023
	As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		As Previously Reported		Corrections		As revised		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Accounts receivable, net	14,881		-		14,881		16,482		-		16,482		269,736		(993	)	268,743		3>
Prepayments and other current assets	487,540		11,180		498,720		228,672		(2,209	)	226,463		345,744		(6,493	)	339,251		2>, 3>
Total current assets	3,247,732		11,180		3,258,912		3,300,784		(2,209	)	3,298,575		4,025,789		(7,486	)	4,018,303
Deferred tax assets	-		-		-		30,986		3,873		34,859		18,804		3,361		22,165		All
Other non-current assets	164,986		(317	)	164,669		35,898		(634	)	35,264		21,621		(1,152	)	20,469		3>
Total non-current assets	1,150,249		(317	)	1,149,932		986,857		3,239		990,096		399,584		2,209		401,793
Total assets	4,397,981		10,863		4,408,844		4,287,641		1,030		4,288,671		4,425,373		(5,277	)	4,420,096
Accounts and notes payable	551,751		16,583		568,334		810,197		7,048		817,245		764,741		2,928		767,669		2>
Tax payable	10,195		-		10,195		147,367		19,215		166,582		214,738		16,025		230,763		All
Current Liabilities	1,028,365		16,583		1,044,948		1,422,878		26,263		1,449,141		1,467,490		18,953		1,486,443
Total liabilities	1,165,957		16,583		1,182,540		1,646,336		26,263		1,672,599		1,671,716		18,953		1,690,669
Accumulated deficit	(8,607,989	)	(5,720	)	(8,613,709	)	(9,319,229	)	(25,233	)	(9,344,462	)	(9,232,128	)	(24,230	)	(9,256,358	)	All
Total shareholders' equity	3,232,024		(5,720	)	3,226,304		2,641,305		(25,233	)	2,616,072		2,753,657		(24,230	)	2,729,427
Total liabilities and shareholders' equity	4,397,981		10,863		4,408,844		4,287,641		1,030		4,288,671		4,425,373		(5,277	)	4,420,096

	As of March 31, 2024						As of June 30, 2024
	As Previously Reported		Corrections		As corrected*		As Previously Reported		Corrections		As corrected*		Error #
	(Amounts in thousands of RMB)						(Amounts in thousands of RMB)

Accounts receivable, net	278,690		(1,626	)	277,064		300,853		(1,292	)	299,561		3>
Prepayments and other current assets	380,314		(8,120	)	372,194		327,539		(10,115	)	317,424		2>, 3>
Total current assets	4,047,143		(9,746	)	4,037,397		3,968,175		(11,407	)	3,956,768
Deferred tax assets	18,804		3,360		22,164		18,804		3,360		22,164		All
Other non-current assets	20,081		(1,368	)	18,713		16,592		(1,391	)	15,201		3>
Total non-current assets	354,770		1,992		356,762		304,324		1,969		306,293
Total assets	4,401,913		(7,754	)	4,394,159		4,272,499		(9,438	)	4,263,061
Accounts and notes payable	726,011		(644	)	725,367		699,504		(4,830	)	694,674		2>
Tax payable	213,999		16,971		230,970		213,000		18,389		231,389		All
Current Liabilities	1,494,455		16,327		1,510,782		1,374,535		13,559		1,388,094
Total liabilities	1,702,971		16,327		1,719,298		1,588,426		13,559		1,601,985
Accumulated deficit	(9,232,477	)	(24,081	)	(9,256,558	)	(9,223,299	)	(22,997	)	(9,246,296	)	All
Total shareholders' equity	2,698,942		(24,081	)	2,674,861		2,684,073		(22,997	)	2,661,076
Total liabilities and shareholders' equity	4,401,913		(7,754	)	4,394,159		4,272,499		(9,438	)	4,263,061

* The corrections were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023.

Note:

1> Understatements of accrual for tax surcharges and related interest expenses

Upon the final settlement of the Company’s underpaid VAT, which was recorded in prior periods, and surcharges, which was not recorded in prior periods, with the relevant tax authorities for its mobile device charging revenue in 2024, the Company determined that the unrecorded surcharges and interest expenses related to the surcharges should have been recorded in the same prior periods that the provision for underpaid VAT was recorded. As a result, the Company has determined to correct the accrual for tax surcharges and related interest expenses in prior periods such that cost of revenues, other operating loss, tax payable and accumulated deficit are corrected.

2> Misstatements of accruals for commissions to location partners and related balances

The accounts payable balances due to location partners under the direct model contained certain entries in relation to the commissions to location partners that were duplicative or incomplete in prior periods. Certain debit balances in accounts payable should have been reclassified to prepayments and subjected to impairment as of prior period ends. In connection therewith, the Company has determined to correct the commissions paid to locations partners and related balances for certain prior periods such that sales and marketing expenses, accounts and notes payable, prepayments and other current assets and accumulated deficit are corrected.

3> Understatements of impairment of prepayments to location partners and expected credit losses of deposits to location partners and accounts receivable due from network partners

The different risk characteristics of the prepayments to location partners with invalid or expired contracts, the deposits to location partners under the direct model with expired or invalid contracts and the accounts receivable due from network partners that were deregistered or dissolved were inadequately considered in the impairment assessments of such assets as of prior period ends. In connection therewith, the Company has determined to correct the impairment of prepayments to locations partners and the provision for the expected credit losses of deposits to location partners and accounts receivable due from network partners in prior periods such that sales and marketing expenses, general and administrative expenses, accounts receivable, net, prepayments and other current assets, other non-current assets and accumulated deficit are corrected.

Smart Share Global Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands, except for share and per share data, unless otherwise noted)

	Three months ended September 30,			Nine months ended September 30,
	2023	2024		2023	2024
	RMB	RMB	US$	RMB	RMB	US$
				As corrected*
Net income	49,010	4,246	605	75,046	14,308	2,038
Add:
Share-based compensation	5,205	4,979	710	17,030	15,196	2,165
Less:
Adjusted for tax effects	-	-	-	-	-	-

Adjusted net income (non-GAAP)	54,215	9,225	1,315	92,076	29,504	4,203

_____________________________

¹ The Company defines number of points of interests, or POIs, as of a certain date as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that date and have at least one cabinet assigned to the location.

² The Company defines cumulative registered users as the total number of users who have agreed to register their mobile phone numbers with the Company via its mini programs since inception, and the number of cumulative registered users of the Company on a certain date is the number of unique mobile phone numbers that have been registered with the Company since inception on that date.

³ The Company defines available-for-use power banks as of a certain date as the number of power banks in circulation on that day.

⁴ The Company defines mobile device charging orders for a given period as the total number of completed orders placed by registered users of the mobile device charging business under both the direct and network partner models in that given period, without any adjustment for orders that may qualify for discounts or incentives.

⁵ The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024, which was RMB7.0176 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.

Smart Share Global Limited Announces Third Quarter 2024 Results

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