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“We are pleased to announce that we have once again regained profitability during the first quarter of 2023,” said Maria Yi Xin, Chief Financial Officer. “The increase in revenue efficiency of our cabinets and power banks as a result of the normalization of offline traffic helped us reach a scale that can better cover our fixed costs and expenses while the initiatives we have taken last year to reduce cost and improve efficiency are also bearing fruit. The strength of our financials, both in terms of our strong cash position and positive cash flow, provides us with the financial stability necessary to capture the growth of the mobile device charging service industry as well as strategically expand into new initiatives that can leverage Energy Monster’s advantages.”

FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2023

Revenues were RMB822.8 million (US$119.8 million³) for the first quarter of 2023, representing a 11.6% increase from the same period in 2022. The increase was primarily due to the increase in revenues from mobile device charging business as a result of the general recovery in offline foot traffic in China during the quarter.

• Revenues from mobile device charging business increased by 10.7% to RMB794.5 million (US$115.7 million) for the first quarter of 2023 from RMB717.7 million in the same period of 2022. The increase was primarily due to the general recovery in offline foot traffic in China during the quarter.

• Revenues from power bank sales increased by 43.7% to RMB18.6 million (US$2.7 million) for the first quarter of 2023 from RMB12.9 million in the same period of 2022. The increase was primarily due to the general recovery in offline foot traffic in China during the quarter.

• Revenues from other revenues, which mainly comprise of revenue from advertising services and new business initiatives, increased by 52.8% to RMB9.8 million (US$1.4 million) for the first quarter of 2023 from RMB6.4 million in the same period of 2022. The increase was primarily attributable to the increase in user traffic from the general recovery in offline foot traffic in China during the quarter and the increase in advertisement efficiency.
  

Cost of revenues decreased by 0.1% to RMB127.4 million (US$18.5 million) for the first quarter of 2023 from RMB127.6 million in the same period last year. The decrease was primarily due to the decrease in maintenance costs and disposal cost, which was partially offset by the increase in depreciation cost and cost of power banks sold.

Research and development expenses decreased by 20.8% to RMB21.4 million (US$3.1 million) for the first quarter of 2023 from RMB27.1 million in the same period last year. The decrease was primarily due to the decrease in personnel related expenses.

Sales and marketing expenses increased by 0.8% to RMB665.3 million (US$96.9 million) for the first quarter of 2023 from RMB659.7 million in the same period last year. The increase was primarily due to the increase in incentive fees paid to network partners, which was partially offset by the decrease in entry fees and incentive fees paid to location partners and personnel related expenses.

General and administrative expenses decreased by 2.2% to RMB26.8 million (US$3.9 million) for the first quarter of 2023 from RMB27.4 million in the same period last year. The decrease was primarily due to the general increase in efficiency of our operation.

Loss from operations for the first quarter of 2023 was RMB15.8 million (US$2.3 million), compared to a loss from operations of RMB99.3 million in the same period last year.

Net income for the first quarter of 2023 was RMB10.8 million (US$1.6 million), compared to a net loss of RMB96.4 million in the same period last year.

Adjusted net income⁴ for the first quarter of 2023 was RMB17.1 million (US$2.5 million), compared to an adjusted net loss of RMB89.7 million in the same period last year.

Net income attributable to ordinary shareholders for the first quarter of 2023 was RMB10.8 million (US$1.6 million), compared to a net loss attributable to ordinary shareholders of RMB96.4 million in the same period last year.

As of March 31, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.1 billion (US$454.5 million).

APPOINTMENT OF NEW DIRECTOR FROM ALIBABA
The Company 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. (NYSE: BABA). 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.

CONFERENCE CALL INFORMATION
The company will hold a conference call at 8:00 A.M. Eastern Time on Tuesday, June 20, 2023 (8:00 P.M. Beijing Time on Tuesday, June 20, 2023) to discuss the financial results. Upon registration, each participant will receive dial-in details to join the conference call.

Event Title: Energy Monster First Quarter 2023 Earnings Conference Call
Pre-registration link: https://s1.c-conf.com/diamondpass/10031469-ay6hrs.html

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

A telephone replay will be available through June 27, 2023. The dial-in details are as follows:

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.enmonster.com/

ABOUT SMART SHARE GLOBAL LIMITED
Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is the largest provider of mobile device charging service in China with the number one market share. The Company provides mobile device charging service through its power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of March 31, 2023, the Company had 7.2 million power banks in 1,001,000 POIs across more than 1,900 counties and county-level districts in China.

CONTACT US
Investor Relations
Hansen Shi
ir@enmonster.com

SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission ("SEC"), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; the risk that COVID-19 or other health risks in China or globally could adversely affect its operations or financial results; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

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

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

The Company defines non-GAAP adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses. 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.

¹ The Company defines number of points of interests, or POIs, as of a certain day as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that day and have at least one cabinet assigned to the location.
² The Company defines available-for-use power banks as of a certain date as the number of power banks in circulation on that day.
³ 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, 2023, which was RMB6.8676 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.
⁴ See the sections entitled “Non-GAAP Financial Measure” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” in this press release for more information.