Smart Share Global Ltd. Q1 FY2023 earnings call

• Revenues increased 11.6% year-over-year with mobile device charging service GMV up 16% year-over-year and 35% quarter-over-quarter. • Number of POIs exceeded 1 million for the first time. Added 31 new counties, and diversified POI mix with new locations like office buildings, medical facilities, etc. • Cumulative registered users reached 347.2 million as of end of first quarter. • Non-GAAP net profit was 17.1 million RMB, first profitability since third quarter of 2021. • Operating cash flow was positive at 238.6 million RMB for the first quarter. • Adjusted direct model POIs by removing underperforming ones as offline traffic normalized. • Network partner model had 7,700 active network partners, core driver of POI growth.

For the first quarter of 2023, revenues were 822.8 million RMB. Mobile device charging business revenues were 796.5 million RMB, accounting for 96.6% of total revenue. Power bank sales revenues were 18.6 million RMB, accounting for 2.3% of total revenue. Other revenues were 9.8 million RMB, accounting for 1.2% of total revenue. Cost of revenue was 127.4 million RMB, down 0.1% year-over-year. Gross profit was 695.4 million RMB, up 14.1% year-over-year.

• First quarter recovery trends to continue into second quarter with April mobile device charging service GMV up 64% year-over-year and May up 39%. • Labor Day holiday saw new historical high daily GMV averaging 18 million. • Confident of full-year 2023 profitability based on current trends.

Q: Given the current positive recovery trend, provide color on outlook for second quarter and whole year in terms of revenue and margin profile?

A: The first quarter's recovery trends will continue into the second quarter. In April, mobile device charging service GMV increased by 64% year-over-year and 39% in May. Confident of full-year 2023 profitability.

Q: Question on POI count for the quarter, lower than previous quarter. Exact reason and POI target by end of year?

A: This quarter was special as first quarter coming out of COVID. Adjusted direct model POIs by removing ~100,000 underperforming ones. No specific POI target given as market driven.

Q: Insight on competitive landscape in light of recovery and trends of network partner model contributing going forward?

A: Competition less intense now as industry shifted to network partner model during COVID. Network partner model was main driver of POI growth in first quarter, and will continue to be a driver as they work to support network partners to grow alongside.