GlobeNewswire Inc | May 19, 2021 07:00AM EDT

May 19, 2021

Revenues increased 162.5% year-over-year in the first quarter of 2021Number of POIs1 reached 716 thousand as of the end of the first quarter of 2021

SHANGHAI, China, May 19, 2021 (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 ended March 31, 2021.

HIGHLIGHTS FOR THE FIRST QUARTER OF 2021

-- Revenuesfor the first quarter of 2021 were RMB846.9 million (US$129.3 million2), an increase of 162.5% from the first quarter of 2020. -- As of March31, 2021, our services were available in 716 thousand POIs, compared with 664 thousand as of December31, 2020. -- As of March31, 2021, our available-for-use power banks3 were 5.6 million, compared with 5.4 million as of December31, 2020. -- As of March31, 2021, cumulative registered users4 reached 235.8 million, implying the acquisition of 16.4 million newly registered users during the quarter. -- Income from operationsfor the first quarter of 2021 was RMB23.8 million (US$3.6 million), compared to a loss from operations of RMB129.2 million for the same period last year. -- Net incomefor the first quarter of 2021 was RMB15.1 million (US$2.3 million), compared to a net loss of RMB137.5 million for the same period last year.Adjusted net income5 for the first quarter of 2021 was RMB23.2 million (US$3.5 million), compared to an adjusted net loss of RMB131.1 million in the same period last year.

We delivered solid results for the first quarter of 2021 as we continue executing our core strategies of expanding the coverage of our mobile device charging service and improving operational efficiency, said Mars Guangyuan Cai, Chairman and Chief Executive Officer. As of March 31, 2021, we had 5.6 million power banks in 716,000 POIs across more than 1,600 counties and county-level districts throughout China. We continue to expand our presence in both higher- and lower-tiered cities across China while maintaining our long-term philosophy of driving growth and profitability. We also continued investing in both software and hardware capabilities to cement our market leading position both in terms of scale and efficiency.

Energy Monster is the leader within the industry in terms of efficiency, said Peifeng Xu, Chief Operating Officer. Our achievements are attributable to our relentless pursuit for operational excellence. For our business development employees and network partners, we made refinements to the incentive and management systems to enable us to continue expanding into POIs that generate positive economics.

Chinas mobile device charging service industry is poised to grow at a rapid pace driven by the growing supply and demand, said Maria Yi Xin, Chief Financial Officer. Our core advantages in network scale, operational efficiency, brand and technologies have allowed us to differentiate ourselves within the industry. We believe by focusing on our core strategies, we can continue expanding each of these advantages to deliver long-term value for our users, partners and shareholders.

FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2021

Revenues were RMB846.9 million (US$129.3 million), representing a 162.5% increase from the same period in 2020. The increase was primarily due to the increase in revenues from mobile device charging business.

-- Revenues from mobile device charging business increased by 164.5% to RMB816.8 million (US$124.7 million) in the first quarter of 2021 from RMB308.8 million in the same period of 2020. The increase was primarily on the back of the impact of COVID-19 on the first quarter of 2020 and was also attributable to the increase in the number of POIs and available-for-use power banks. -- Revenues from power bank sales increased by 129.2% to RMB25.0 million (US$3.8 million) in the first quarter of 2021 from RMB10.9 million in the same period of 2020. The increase was primarily on the back of the impact of COVID-19 on the first quarter of 2020 and was also attributable to the increase in the number of POIs and available-for-use power banks. -- Revenues from other revenues, which mainly comprise of revenue from adverting services, increased by 71.5% to RMB5.1 million (US$0.8 million) in the first quarter of 2021 from RMB3.0 million in the same period of 2020. The increase was primarily on the back of the impact of COVID-19 on the first quarter of 2020.

Cost of revenues increased by 14.5% to RMB124.6 million (US$19.0 million) for the first quarter of 2021 from RMB108.8 million in the same period last year. Among it, cost of power bank sales increased by 67.7% to RMB8.1 million (US$1.2 million) for the first quarter of 2021 from RMB4.9million in the same period last year.The increase of cost of revenues was primarily due to the increase in maintenance cost, cost of power banks sold and depreciation.

Research and development expenses increased by 24.2% to RMB20.6 million (US$3.1 million) for the first quarter of 2021 from RMB16.6 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 107.4% to RMB661.7 million (US$101.0 million) for the first quarter of 2021 from RMB319.1 million in the same period last year. 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.

General and administrative expenses increased by 55.9% to RMB26.8 million (US$4.1 million) for the first quarter of 2021 from RMB17.2 million in the same period last year. The increase was primarily due to the increase in personnel related expenses and third-party service expenses.

Income from operations for the first quarter of 2021 was RMB23.8 million (US$3.6 million), compared to a loss from operations of RMB129.2 million in the same period last year. Operating margin for the first quarter of 2021 was 2.8%, compared to negative 40.0% in the same period last year.

Net income for the first quarter of 2021 was RMB15.1 million (US$2.3 million), compared to a net loss of RMB137.5 million in the same period last year. Adjusted net income for the first quarter of 2021 was RMB23.2 million (US$3.5 million), compared to an adjusted net loss of RMB131.1 million in the same period last year. Net margin for the first quarter of 2021 was 1.8%, compared to negative 42.6% in the same period last year.

Net loss attributable to ordinary shareholders for the first quarter of 2021 was RMB4.8 billion (US$735.5 million), compared to RMB271.2 million in the same period last year. The increase was primarily due to the increase in accretion of preferred shares previously issued to their redemption price as a result of the increase in the fair value of these preferred shares.

As ofMarch 31, 2021, the Company hadcash and cash equivalents, restricted cash and short-term investmentsofRMB2.2 billion(US$342.1 million).

Recent DevelopmentOn April 1, 2021, the Company successfully completed its initial public offering (IPO) of 17,650,000 American Depositary Shares (ADSs) at a public offering price of US$8.50 per ADS.

Business OutlookFor the second quarter of 2021 ending June 30, 2021, the Company expects to generate RMB940 million to RMB970 million of revenues. This business outlook reflects the Companys current and preliminary view on the business situation and market condition, which is subject to change.

Conference Call InformationThe Company will hold a conference call at 08:00 A.M. Eastern Time on Wednesday, May 19, 2021 (08:00 P.M. Beijing Time on Wednesday, May 19, 2021) to discuss the financial results.

To participate in the conference call, please dial the following numbers:

International: +65-6713-5330United States: +1-347-549-4094Mainland China: 400-820-6895China Hong Kong: +852-3018-8307 Event title: Smart Share Global Limited First Quarter 2021 Earnings Conference CallConference ID / 2663446Passcode:

A telephone replay will be available through May 27, 2021. The dial-in details are as follows:

International: +61-2-8199-0299United States: +1-646-254-3697Mainland China: 400-632-2162China Hong Kong: +852-3051-2780 Access Code: 2663446

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 LimitedSmart 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 a market share of 34.4% in 2020. 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 Monsters cabinets to release the power banks. As of March 31, 2021, the company had 5.6 million power banks in 716,000 POIs across more than 1,600 counties and county-level districts in China.

For more information, please visit: https://ir.enmonster.com

Contact UsInvestor RelationsHansen Shiir@enmonster.com

Safe Harbor StatementThis 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 Companys 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 Monsters 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 MEASUREIn 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 SeriesA-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 LimitedUnaudited Consolidated Balance Sheets(In thousands, except share and per share data, unless otherwise noted) December March March 31,2020 31,2021 31,2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,252,493 1,912,204 291,859 Restricted cash 51,008 38,177 5,827 Short-term investments 170,552 290,937 44,406 Accounts receivable, net 18,743 21,237 3,241 Inventory - 659 101 Prepayments and other 253,020 274,425 41,885 current assets Total current assets 1,745,816 2,537,639 387,319 Non-current assets: Property,equipment and 963,453 927,412 141,551 software, net Long-term prepayments to 23,591 28,439 4,341 a related party Other non-current assets 52,775 60,990 9,309 Total non-current assets 1,039,819 1,016,841 155,201 Total assets 2,785,635 3,554,480 542,520 LIABILITIES,MEZZANINE EQUITY AND SHAREHOLDERS'S DEFICIT Current liabilities: Short-term borrowings 24,500 - - Accounts and notes 406,760 394,457 60,206 payable Amounts due to related 77,939 48,230 7,361 parties-current Salary and welfare 72,436 80,414 12,274 payable Taxes payable 7,134 4,970 759 Financing payable-current 46,854 52,628 8,033 Accruals and other 219,212 222,664 33,986 current liabilities Total current liabilities 854,835 803,363 122,619 Non-current liabilities: Financing 197,297 185,647 28,335 payable-non-current Amounts due to related 1,000 1,000 153 parties-non-current Deferred tax 33,891 32,609 4,977 liabilities,net Total non-current 232,188 219,256 33,465 liabilities Total liabilities 1,087,023 1,022,619 156,084 MEZZANINE EQUITY Mezzanine equity 5,137,872 10,880,708 1,660,720 SHAREHOLDERS' DEFICIT Ordinary shares 83 51 8 Statutory reserves 16,592 16,592 2,532 Accumulated other 201,823 102,787 15,688 comprehensive income Accumulated deficit (3,657,758 ) (8,468,277 ) (1,292,512 ) Total shareholders' (3,439,260 ) (8,348,847 ) (1,274,284 ) deficit Total liabilities, mezzanine equity and 2,785,635 3,554,480 542,520 shareholders' deficit

Smart Share Global LimitedUnaudited Consolidated Statements of Comprehensive Income/(Loss)(In thousands, except share and per share data, unless otherwise noted) Quarter Ended Quarter Ended Quarter Ended March March March 31,2020 31,2021 31,2021 RMB RMB US$ Revenues: Mobile device charging 308,776 816,763 124,662 business Power bank sales 10,913 25,011 3,817 Others 2,976 5,104 779 Total revenues 322,665 846,878 129,258 Cost of revenues (108,812 ) (124,622 ) (19,021 ) Research and (16,604 ) (20,628 ) (3,148 ) development expenses Sales and marketing (319,078 ) (661,675 ) (100,991 ) expenses General and (17,206 ) (26,819 ) (4,093 ) administrative expenses Other operating income 9,825 10,705 1,634 (Loss)/Income from (129,210 ) 23,839 3,639 operations Interest and investment 1,160 3,269 499 income Interest expense to (8,846 ) (10,439 ) (1,593 ) third parties Foreign exchange gains (405 ) 2,441 373 / (losses), net Other (loss)/income, 180 (201 ) (31 ) net Change in fair value of (363 ) - - warrant liabilities (Loss)/Income before (137,484 ) 18,909 2,887 income tax expense Income tax expense - (3,813 ) (582 ) Net (loss)/income (137,484 ) 15,096 2,305 Accretion of convertible redeemable (133,684 ) (4,729,719 ) (721,896 ) preferred shares Deemed dividend to - (104,036 ) (15,879 ) preferred shareholders Net loss attributable to ordinary (271,168 ) (4,818,659 ) (735,470 ) shareholders of Smart Share Global Limited Net (loss)/income (137,484 ) 15,096 2,305 Other comprehensive income Foreign currency translation (11,705 ) (99,036 ) (15,116 ) adjustments, net of nil tax Total comprehensive (149,189 ) (83,940 ) (12,811 ) loss Accretion of convertible redeemable (133,684 ) (4,729,719 ) (721,896 ) preferred shares Deemed dividend to - (104,036 ) (15,879 ) preferred shareholders Comprehensive loss attributable to ordinary shareholders (282,873 ) (4,917,695 ) (750,586 ) of Smart Share Global Limited Net loss per share attributable to ordinary shareholders of Smart Share Global Limited - basic and diluted (6.29 ) (69.30 ) (10.58 ) Weighted average ordinary shares outstanding - basic and diluted 43,118,186 69,535,853 69,535,853

Smart Share Global LimitedUnaudited Reconciliation of GAAP and Non-GAAP Results(In thousands, except share and per share data, unless otherwise noted) Quarter Quarter Quarter Ended Ended Ended March March March 31,2020 31,2021 31,2021 RMB RMB US$ Net (loss)/income (137,484 ) 15,096 2,305 Add: Share-based compensation 6,016 8,141 1,244 Change in fair value of warrant 363 - - liabilities Adjusted net (loss)/income (131,105 ) 23,237 3,549 (non-GAAP)

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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 us or our network partners on that day.2 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 31, 2021, which was RMB6.5518 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.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 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;5 See the sections entitled Non-GAAP Financial Measures and Unaudited Reconciliation of GAAP and Non-GAAP Results for more information about the non-GAAP measures referred to in this press release.