Announcement • Apr 30
Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin completed the acquisition of 83.10% stake in Smart Share Global Limited (NasdaqCM:EM). Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin proposed to acquire 83.10% stake in Smart Share Global Limited (NasdaqCM:EM) for approximately $260 million on January 5, 2025. Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin entered into a definitive Agreement to acquire 83.10% stake in Smart Share Global Limited on August 1, 2025. The buyer group proposed to acquire all of the outstanding ordinary shares of Smart Share Global Limited, including the Class A ordinary shares represented by the American Depositary Shares of the Company (the “ADSs”, each representing two Class A ordinary shares), that are not already beneficially owned by the Buyer Group for a proposed purchase price of $0.625 per Ordinary Share or $1.25 per ADS in cash. Smart Share Global will pay termination fee of $4.9 million in case of termination and consortium will pay termination fee of $9.8 million in case of termination. The transaction is subject to consummation of due diligence investigation and definitive agreement. The Board cautions the Company’s shareholders and others considering trading the Company’s securities that no decisions have been made with respect to this proposal. There can be no assurance that any definitive offer will be received, that any definitive agreement will be executed relating to the transaction contemplated by the proposal, or that the transaction contemplated by the proposal or any similar transaction will be approved or consummated. The transaction was approved by shareholders of Smart Share Global on December 12, 2025.
Kroll, LLC acted as its independent financial advisor and Haiping Li and ?Esq of Skadden, Arps, Slate, Meagher & Flom LLP as its U.S. legal counsel for Smart Share Global Limited. Miranda So and Xi Shi of Davis Polk & Wardwell LLP, Hong Kong Office acted as legal advisor to Trustar Capital. Maples and Calder (Hong Kong) LLP and Commerce & Finance Law Offices acted as legal advisors to special committee. Davis Polk & Wardwell LLP, Adé Heyliger, Charles Ching, Chris Welty and Graham Price of Weil, Gotshal & Manges LLP, Harney Westwood & Riegels and Haiwen & Partners acted as legal advisor to consortium.
Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin completed the acquisition of 83.10% stake in Smart Share Global Limited (NasdaqCM:EM) on April 29, 2026. New Risk • Apr 29
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended December 2024. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported December 2024 fiscal period end). Revenue has declined by 36% over the past year. Announcement • Apr 01
Smart Share Global Limited Receives Exception by Nasdaq Staff Related to Filing of Its Interim Report Smart Share Global Limited (Energy Monster or the Company), announced that it has been granted an exception by Nasdaq Staff regarding the filing of a Form 6-K containing an interim balance sheet and income statement for its fiscal half-year ended June 30, 2025 (the Interim Report). On January 14, 2026, Nasdaq Staff notified the Company that it did not comply with Nasdaq's filing requirements set forth in Listing Rule 5250(c)(1) (the Rule) because it had not filed the Interim Report. However, based on further review and the materials submitted by the Company, Nasdaq Staff has determined to grant an exception to enable the Company to regain compliance with the Rule. The terms of the exception require the Company to file the Interim Report on or before June 29, 2026, as required by the Rule. In the event that the Company does not satisfy the terms, Nasdaq Staff will issue written notification regarding the potential delisting of the Company's securities. At such time, the Company retains the right to appeal Nasdaq Staff's determination to a Hearings Panel. The Company is working towards filing the Interim Report and regaining compliance with the Rule on or before June 29, 2026. New Risk • Dec 31
New major risk - Revenue and earnings growth Revenue has declined by 36% over the past year. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Revenue has declined by 36% over the past year. Minor Risk Latest financial reports are more than 6 months old (reported December 2024 fiscal period end). New Risk • Nov 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 30
Full year 2024 earnings released: CN¥0.053 loss per share (vs CN¥0.34 profit in FY 2023) Full year 2024 results: CN¥0.053 loss per share (down from CN¥0.34 profit in FY 2023). Revenue: CN¥1.89b (down 36% from FY 2023). Net loss: CN¥13.5m (down 115% from profit in FY 2023). Revenue is forecast to grow 2.7% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the Specialty Retail industry in the US. Over the last 3 years on average, earnings per share has increased by 132% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Mar 09
Third quarter 2024 earnings released: EPS: CN¥0.017 (vs CN¥0.19 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.017 (down from CN¥0.19 in 3Q 2023). Revenue: CN¥490.8m (down 20% from 3Q 2023). Net income: CN¥4.25m (down 92% from 3Q 2023). Profit margin: 0.9% (down from 8.2% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Specialty Retail industry in the US. Over the last 3 years on average, earnings per share has increased by 140% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jan 07
Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin proposed to acquire 83.10% stake in Smart Share Global Limited (NasdaqCM:EM) for approximately $130 million. Trustar Capital, Mars Guangyuan Cai, Peifeng Xu, Victor Yaoyu Zhang and Maria Yi Xin proposed to acquire 83.10% stake in Smart Share Global Limited (NasdaqCM:EM) for approximately $130 million on January 5, 2025. A cash consideration valued at $0.625 per share will be paid by Trustar Capital and the management. Consortium of buyers intend to finance the Acquisition with a combination of equity and debt capital. The transaction is subject to consummation of due diligence investigation and definitive agreement. New Risk • Sep 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Major Estimate Revision • Sep 10
Consensus revenue estimates fall by 23% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥2.20b to CN¥1.69b. EPS estimate fell from CN¥0.37 to CN¥0.12 per share. Net income forecast to grow 18% next year vs 15% growth forecast for Specialty Retail industry in the US. Consensus price target up from US$1.77 to US$1.86. Share price fell 11% to US$0.55 over the past week. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: CN¥0.036 (vs CN¥0.094 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.036 (down from CN¥0.094 in 2Q 2023). Revenue: CN¥462.9m (down 55% from 2Q 2023). Net income: CN¥9.18m (down 63% from 2Q 2023). Profit margin: 2.0% (down from 2.4% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Specialty Retail industry in the US. Over the last 3 years on average, earnings per share has increased by 148% per year but the company’s share price has fallen by 37% per year, which means it is significantly lagging earnings. Announcement • Aug 15
Smart Share Global Limited to Report Q2, 2024 Results on Aug 22, 2024 Smart Share Global Limited announced that they will report Q2, 2024 results Pre-Market on Aug 22, 2024 Buy Or Sell Opportunity • Jul 30
Now 21% undervalued Over the last 90 days, the stock has risen 9.9% to US$0.78. The fair value is estimated to be US$0.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.7% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 5.5% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Major Estimate Revision • Jun 10
Consensus EPS estimates increase by 95% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from CN¥0.19 to CN¥0.37. Revenue forecast unchanged at CN¥2.20b. Net income forecast to grow 30% next year vs 13% growth forecast for Specialty Retail industry in the US. Consensus price target up from US$1.11 to US$1.74. Share price rose 9.7% to US$1.07 over the past week. Reported Earnings • Jun 04
First quarter 2024 earnings released: CN¥0.001 loss per share (vs CN¥0.042 profit in 1Q 2023) First quarter 2024 results: CN¥0.001 loss per share (down from CN¥0.042 profit in 1Q 2023). Revenue: CN¥397.2m (down 52% from 1Q 2023). Net loss: CN¥349.0k (down 103% from profit in 1Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 4.9% growth forecast for the Specialty Retail industry in the US. Over the last 3 years on average, earnings per share has increased by 176% per year but the company’s share price has fallen by 47% per year, which means it is significantly lagging earnings. Announcement • May 29
Smart Share Global Limited to Report Q1, 2024 Results on Jun 03, 2024 Smart Share Global Limited announced that they will report Q1, 2024 results Pre-Market on Jun 03, 2024 Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to US$1.02, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 10x in the Specialty Retail industry in the US. Total loss to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$0.97 per share. Reported Earnings • Apr 27
Full year 2023 earnings released: EPS: CN¥0.34 (vs CN¥2.74 loss in FY 2022) Full year 2023 results: EPS: CN¥0.34 (up from CN¥2.74 loss in FY 2022). Revenue: CN¥2.96b (up 4.2% from FY 2022). Net income: CN¥87.7m (up CN¥799.0m from FY 2022). Profit margin: 3.0% (up from net loss in FY 2022). The move to profitability was primarily driven by lower expenses. Revenue is expected to decline by 4.8% p.a. on average during the next 3 years, while revenues in the Specialty Retail industry in the US are expected to grow by 4.9%. Over the last 3 years on average, earnings per share has increased by 147% per year but the company’s share price has fallen by 57% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: CN¥0.34 (vs CN¥2.74 loss in FY 2022) Full year 2023 results: EPS: CN¥0.34 (up from CN¥2.74 loss in FY 2022). Revenue: CN¥2.96b (up 4.2% from FY 2022). Net income: CN¥87.7m (up CN¥799.0m from FY 2022). Profit margin: 3.0% (up from net loss in FY 2022). The move to profitability was primarily driven by lower expenses. Revenue is expected to decline by 7.3% p.a. on average during the next 2 years, while revenues in the Specialty Retail industry in the US are expected to grow by 5.1%. Over the last 3 years on average, earnings per share has increased by 147% per year but the company’s share price has fallen by 57% per year, which means it is significantly lagging earnings. Announcement • Mar 21
Smart Share Global Limited to Report Q4, 2023 Results on Mar 28, 2024 Smart Share Global Limited announced that they will report Q4, 2023 results Pre-Market on Mar 28, 2024 Announcement • Mar 11
Smart Share Global Limited Declares Special Cash Dividend, Payable on or Around June 7, 2024 Smart Share Global Limited announced that its Board of Directors approved a special cash dividend of USD 0.015 per ordinary share, or USD 0.03 per American Depositary Share (“ADS”), to holders of ordinary shares and holders of ADSs of record as of the close of business on May 31, 2024, U.S. Eastern Time, payable in U.S. dollars. Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. The payment date is expected to be on or around June 7, 2024 for holders of ordinary shares and on or around June 14, 2024 for holders of ADSs. Announcement • Nov 29
Mr. Feng Zhang Resigns as A Director of Smart Share Global Limited Mr. Feng Zhang has resigned as a director of Smart Share Global Limited for personal reasons, effective November 27, 2023. The resignation of Mr. Zhang was not due to any disagreement with the Company. Reported Earnings • Nov 28
Third quarter 2023 earnings released: EPS: CN¥0.19 (vs CN¥0.37 loss in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.19 (up from CN¥0.37 loss in 3Q 2022). Revenue: CN¥613.5m (down 25% from 3Q 2022). Net income: CN¥50.0m (up CN¥145.8m from 3Q 2022). Profit margin: 8.2% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Specialty Retail industry in the US. Announcement • Nov 21
Smart Share Global Limited to Report Q3, 2023 Results on Nov 27, 2023 Smart Share Global Limited announced that they will report Q3, 2023 results at 9:30 AM, US Eastern Standard Time on Nov 27, 2023 Announcement • Sep 19
Smart Share Global Limited Announces Executive Changes, Effective October 31, 2023 Smart Share Global Limited announced that its Chief Technology Officer, Mr. Xiaowei Li, has tendered his resignation from the Company due to personal reasons. The resignation will be effective on October 31, 2023. The Board has approved the Companys nomination of Mr. Peifeng Xu to the role of the President of the Company, in addition to his role as a Director of the Company. The appointment will be effective on September 18, 2023. Following the appointment, Mr. Xu will be in charge of the operation and the research and development of the Companys mobile device charging business and will continue to report to Mr. Mars Guangyuan Cai, Chairman of the Board and Chief Executive Officer of the Company. Reported Earnings • Aug 21
Second quarter 2023 earnings released: EPS: CN¥0.094 (vs CN¥0.71 loss in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.094 (up from CN¥0.71 loss in 2Q 2022). Revenue: CN¥1.04b (up 50% from 2Q 2022). Net income: CN¥24.5m (up CN¥209.0m from 2Q 2022). Profit margin: 2.4% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Specialty Retail industry in the US. Announcement • Aug 18
Smart Share Global Limited to Report Q2, 2023 Results on Aug 21, 2023 Smart Share Global Limited announced that they will report Q2, 2023 results Pre-Market on Aug 21, 2023 Board Change • Jul 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Shen Chen was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 24
Smart Share Global Limited Announces Receipt of Minimum Bid Price Notice from Nasdaq Smart Share Global Limited announced that it has received a written notification from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated June 22, 2023, indicating that for the last 30 consecutive business days, the closing bid price of the Company’s American depositary shares (the “ADSs”) was below the minimum bid price of $1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). The Nasdaq notification letter has no current effect on the listing or trading of the Company’s ADSs on Nasdaq. Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until December 19, 2023, to regain compliance under the Nasdaq Listing Rules. If at any time during the 180-day compliance period, the closing bid price of the Company’s ADSs is $1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance by December 19, 2023, subject to the determination by the staff of Nasdaq, the Company may be eligible for additional time to cure the delinquency. The Nasdaq notification letter does not affect the Company’s business operations, and the Company will take all reasonable measures to regain compliance within the prescribed grace period. Announcement • Jun 21
Smart Share Global Limited Announces Directorate Changes Smart Share Global Limited announced that Ms. Xiao Xiao has tendered her resignation as a director of the Company and the Board of Directors has approved the appointment of Ms. Chen Shen as a director of the Company to replace Ms. Xiao, both effective today. Ms. Chen Shen is a director of strategic investments at Alibaba Group Holding Ltd. She joined Alibaba in 2018. Previously she served as senior investment officer in International Finance Corporation at World Bank Group from 2017 to 2018. Prior to that, she was an associate from 2010 to 2012 and then vice president of CDH from 2013 to 2016. She also served as an investment analyst and then associate at China International Capital Corporation Limited from 2004 to 2008. Ms. Shen holds an MBA degree from Columbia University and a bachelor's degree from Fudan University. Reported Earnings • Jun 21
First quarter 2023 earnings released: EPS: CN¥0.042 (vs CN¥0.37 loss in 1Q 2022) First quarter 2023 results: EPS: CN¥0.042 (up from CN¥0.37 loss in 1Q 2022). Revenue: CN¥822.8m (up 12% from 1Q 2022). Net income: CN¥10.8m (up CN¥107.2m from 1Q 2022). Profit margin: 1.3% (up from net loss in 1Q 2022). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Specialty Retail industry in the US. Announcement • Jun 14
Smart Share Global Limited to Report Q1, 2023 Results on Jun 20, 2023 Smart Share Global Limited announced that they will report Q1, 2023 results Pre-Market on Jun 20, 2023 Reported Earnings • Apr 21
Full year 2022 earnings released: CN¥2.74 loss per share (vs CN¥24.39 loss in FY 2021) Full year 2022 results: CN¥2.74 loss per share (improved from CN¥24.39 loss in FY 2021). Revenue: CN¥2.84b (down 21% from FY 2021). Net loss: CN¥711.2m (loss narrowed 86% from FY 2021). Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Specialty Retail industry in the US. Board Change • Jan 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Xiao Xiao was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 24
Smart Share Global Regains Compliance with Nasdaq’s Minimum Bid Price Requirement Smart Share Global Limited (“Energy Monster” or the “Company”) announced that it has received a written notification letter (the “Compliance Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated December 22, 2022, indicating that the Company has regained compliance with the minimum bid price requirement set in Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). As previously disclosed, on October 7, 2022, the Company received a letter from Nasdaq indicating that the Company was not in compliance with the Listing Rules of The Nasdaq Stock Market, as the closing bid price of the American Depositary Shares (the “ADSs”) had been below $1.00 per ADS for the previous 30 consecutive business days. According to the Compliance Notice, the closing bid price of the Company’s ADSs has been at $1.00 per ADS or greater for 10 consecutive business days from December 8 to December 21, 2022, and the Company has regained compliance with the Minimum Bid Price Requirement and the matter is closed. Reported Earnings • Dec 20
Third quarter 2022 earnings released: CN¥0.37 loss per share (vs CN¥0.31 loss in 3Q 2021) Third quarter 2022 results: CN¥0.37 loss per share (further deteriorated from CN¥0.31 loss in 3Q 2021). Revenue: CN¥815.0m (down 12% from 3Q 2021). Net loss: CN¥95.8m (loss widened 21% from 3Q 2021). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Specialty Retail industry in the US. Announcement • Dec 14
Smart Share Global Limited to Report Q3, 2022 Results on Dec 20, 2022 Smart Share Global Limited announced that they will report Q3, 2022 results Pre-Market on Dec 20, 2022 Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Onward Choi was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 11
Smart Share Global Announces Receipt of Minimum Bid Price Notice from Nasdaq Smart Share Global Limited (“Energy Monster” or the “Company”) announced that it has received a written notification from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated October 7, 2022, indicating that for the last 30 consecutive business days, the closing bid price of the Company’s American depositary shares (the “ADSs”) was below the minimum bid price of USD 1.00 per share requirement set in Nasdaq Listing Rule 5450(a)(1). The Nasdaq notification letter has no current effect on the listing or trading of the Company’s ADSs on Nasdaq. Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until April 5, 2023, to regain compliance under the Nasdaq Listing Rules. If at any time during the 180-day compliance period, the closing bid price of the Company’s ADSs is USD 1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance by April 5, 2023, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period. Announcement • Sep 10
Smart Share Global Limited Provides Revenue Guidance for the Third Quarter of 2022 Ending September 30, 2022 Smart Share Global Limited provided revenue guidance for the third quarter of 2022 ending September 30, 2022. For the third quarter, the Company expects to generate RMB 770 million to RMB 800 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. Reported Earnings • Sep 09
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: CN¥690.5m (down 19% from 2Q 2021). Net loss: CN¥184.5m (loss narrowed 96% from 2Q 2021). Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Specialty Retail industry in the US. Announcement • Sep 02
Smart Share Global Limited to Report Q2, 2022 Results on Sep 08, 2022 Smart Share Global Limited announced that they will report Q2, 2022 results Pre-Market on Sep 08, 2022 Seeking Alpha • Jul 12
Smart Share Global Faces Revenue Drop On Rolling China Lockdowns Smart Share Global went public in April 2021, raising approximately $150 million in a U.S. IPO.
The firm operates a network of mobile device charging stations and sells energy devices in China.
EM has recently produced declining revenue and worsening operating losses as a result of COVID-19 lockdowns in China.
Given continuing fears of more lockdowns and the firm's financial results, I'm on Hold for EM for the near term.
A Quick Take On Smart Share Global
Smart Share Global (EM) went public in April 2021, raising approximately $150 million in gross proceeds from an IPO that was priced at $8.50 per ADS.
The firm provides members with access to mobile device charging locations in China.
Given the firm's cash flow dynamics, contracting revenue, worsening operating losses and uncertain pandemic restriction effects, I'm on Hold for EM in the near term.
Smart Share Overview
Shanghai, China-based Smart Share was founded to develop a network of mobile charging spots for users in Mainland China.
Management is headed by Co-founder, Chairman and CEO, Mars Guangyuan Cai, who was previously General Manager at Uber Shanghai.
The company's power banks are generally placed in:
Entertainment centers
Restaurants
Shopping centers
Hotels
Transportation hubs
Public spaces
The firm operates a self-run network in larger cities via an in-house business development team as well as works through network partners in smaller cities.
According to an iResearch report commissioned by management, the firm was the largest mobile device charging service provider in China, in terms of gross 2020 revenue.
Smart Share's Market & Competition
According to a recent market research report by iResearch, the market for mobile device charging services was approximately $1.3 billion in 2020 and is expected to reach $15.4 billion by 2028.
This represents a forecast CAGR of 36.2% from 2020 to 2028.
The main drivers for this expected growth are continued growth in smartphone usage and dependence on mobile applications by consumers.
Also, the adoption of next-generation, 5G technologies will expand the use cases for mobile phones and is expected to increase usage further.
Major competitive or other industry participants by category include:
Internet companies
Payment service providers
Other financial tech companies
Smaller, local players
EM's Recent Financial Performance
Total revenue by quarter has been uneven but has trended lower in recent quarters:
5 Quarter Total Revenue (Seeking Alpha)
Gross profit by quarter has also trended lower as the chart shows below:
5 Quarter Gross Profit (Seeking Alpha)
Selling, G&A expenses as a percentage of total revenue by quarter have increased over the past 5 quarters, indicating the company has become less efficient at generating revenue:
5 Quarter Selling, G&A % Of Revenue (Seeking Alpha)
Operating income by quarter has swung well into loss territory over the past 3 quarters:
5 Quarter Operating Income (Seeking Alpha)
Earnings per share (Diluted) have also remained negative in the 5 quarters ended March 31, 2022:
5 Quarter Earnings Per Share (Seeking Alpha)
In the past 12 months, EM's stock price has dropped 78.2 percent vs. the U.S. S&P 500 Index's fall of around 12 percent, as the chart below indicates:
52 Week Stock Price (Seeking Alpha)
Valuation Metrics For Smart Share
Below is a table of relevant capitalization and valuation figures for the company:
Measure
Amount
Enterprise Value
-$106,620,000
Market Capitalization
$297,570,000
Price/Sales ((TTM))
0.54
Revenue Growth Rate ((TTM))
4.26%
Operating Cash Flow ((TTM))
$35,680,000
CapEx Ratio
0.48
Earnings Per Share (Fully Diluted)
-$21.30
(Source - Seeking Alpha)
Commentary On Smart Share
In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted the firm's challenges due to a continuous outbreak of COVID-19 in regions that affected its network use.
This resulted in a reduction of same-store revenue of 35% year-over-year.
However, registered user numbers continued to grow, reaching 299 million by the end of the quarter, representing impressive growth of 25% year-over-year. Major Estimate Revision • Jun 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from CN¥3.77b to CN¥3.28b. EPS estimate unchanged from -CN¥0.61 per share at last update. Specialty Retail industry in the US expected to see average net income decline 5.9% next year. Consensus price target down from US$5.40 to US$3.91. Share price fell 6.7% to US$1.16 over the past week. Announcement • Jun 16
Smart Share Global Limited Provides Earnings Guidance for the Second Quarter Ending June 30, 2022 Smart Share Global Limited provided earnings guidance for the second quarter ending June 30, 2022. For the quarter, the company expects to generate RMB 660 million to RMB 690 million of revenues. Reported Earnings • Jun 16
First quarter 2022 earnings released: CN¥0.37 loss per share (vs CN¥139 loss in 1Q 2021) First quarter 2022 results: CN¥0.37 loss per share (up from CN¥139 loss in 1Q 2021). Revenue: CN¥737.1m (down 13% from 1Q 2021). Net loss: CN¥96.4m (loss narrowed 98% from 1Q 2021). Over the next year, revenue is forecast to grow 31%, compared to a 7.7% growth forecast for the industry in the US. Announcement • Jun 09
Smart Share Global Limited to Report Q1, 2022 Results on Jun 15, 2022 Smart Share Global Limited announced that they will report Q1, 2022 results Pre-Market on Jun 15, 2022 Reported Earnings • Apr 29
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: CN¥24.39 loss per share. Revenue: CN¥3.59b (up 28% from FY 2020). Net loss: CN¥4.96b (loss widened 58% from FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 51%. Over the next year, revenue is forecast to grow 16%, compared to a 8.4% growth forecast for the retail industry in the US. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Onward Choi was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Breakeven Date Change • Mar 13
Forecast to breakeven in 2022 The 3 analysts covering Smart Share Global expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of CN¥195.0m in 2022. Earnings growth of 145% is required to achieve expected profit on schedule. Announcement • Mar 06
Smart Share Global Limited to Report Q4, 2021 Results on Mar 11, 2022 Smart Share Global Limited announced that they will report Q4, 2021 results Pre-Market on Mar 11, 2022 Board Change • Jan 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Onward Choi was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Dec 02
Third quarter 2021 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2021 results: CN¥0.31 loss per share (up from CN¥38.94 loss in 3Q 2020). Revenue: CN¥930.0m (flat on 3Q 2020). Net loss: CN¥79.4m (loss narrowed 92% from 3Q 2020). Revenue exceeded analyst estimates by 1.1%. Over the next year, revenue is forecast to grow 31%, compared to a 15% growth forecast for the industry in the US. Breakeven Date Change • Dec 02
Forecast to breakeven in 2022 The 4 analysts covering Smart Share Global expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of CN¥416.0m in 2022. Average annual earnings growth of 107% is required to achieve expected profit on schedule. Announcement • Dec 01
Smart Share Global Limited Provides Revenue Guidance for the Fourth Quarter Ending December 31, 2021 Smart Share Global Limited provided revenue guidance for the fourth quarter ending December 31, 2021. For the fourth quarter of 2021 ending December 31, 2021, the Company expects to generate RMB 800 million to RMB 830 million of revenues. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$2.07, the stock trades at a forward P/E ratio of 68x. Average forward P/E is 10x in the Specialty Retail industry in the US. Announcement • Oct 01
Smart Share Global Limited (NasdaqGS:EM) announces an Equity Buyback for $50 million worth of its shares. Smart Share Global Limited (NasdaqGS:EM) announces a share repurchase program. Under the program, the company will repurchase up to $50 million worth of its shares. The program will be funded from the existing cash balance. The program will be valid for a period of 12 months. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improved over the past week After last week's 48% share price gain to US$3.91, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Specialty Retail industry in the US. Announcement • Aug 24
Smart Share Global Limited Provides Revenue Guidance for the Third Quarter Ending September 30, 2021 Smart Share Global Limited provided revenue guidance for the third quarter ending September 30, 2021. For the quarter, the company expects to generate RMB 900 million to RMB 930 million of revenues. This forecast considers the potential impact of the COVID-19 outbreak 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 the COVID-19 on the economy in China. Reported Earnings • May 21
First quarter 2021 earnings released: CN¥139 loss per share (vs CN¥5.52 loss in 1Q 2020) The company reported a soft first quarter result with increased losses and weaker control over costs, although revenues improved. First quarter 2021 results: Revenue: CN¥846.9m (up 20% from 1Q 2020). Net loss: CN¥4.82b (loss widened CN¥4.70b from 1Q 2020). Announcement • May 21
Smart Share Global Limited Provides Revenue Guidance for the Quarter Ending June 30, 2021 Smart Share Global Limited provided revenue guidance for the quarter ending June 30, 2021. For the quarter, the company expected to generate RMB 940 million to RMB 970 million of revenues.