Smart Share Global Limited Q4 FY2023 earnings call

• GMV in 2023 grew 27% YOY to historical high, driven by offline traffic recovery and network expansion, though offset by soft consumption.
• Total POI count reached 1.2 million by end of 2023, up 237,000 from end of 2022.
• Fourth quarter 2023 saw GMV up 42% YOY, with POI count up over 45,000, and National Golden Week GMV up 26% YOY.
• Focus on network partner model (active partners >11,000 in Q4 2023) and direct model optimization, including partnerships with KAs and rebalancing underperforming POIs.
• User base grew to 391.5 million cumulative users by end of 2023, with IP collaborations like Jay Chou campaign.
• ESG efforts with sustainability campaign launched in March 2024.

For the fourth quarter of 2023, mobile device charging revenues were RMB 465.7 million, accounting for 95.7% of total revenues. Direct model revenues were RMB 215.7 million (down 19.8% YOY), with network partner model revenues at RMB 250 million (down 21.6% YOY). Other revenues were RMB 20.9 million (up 167.7% YOY). For full year 2023, mobile device charging revenues were RMB 2.9 billion (97% of total revenues). Direct model revenues were RMB 1.1 billion (down 33% YOY), network partner model revenues were RMB 1.8 billion (up 49.3% YOY), and other revenues were RMB 89.4 million (up 164% YOY).

• No specific top-line growth or profitability guidance provided.
• Focus on driving growth in 2024 by optimizing costs, capturing untapped POI opportunities in China, and continuing initiatives like KA acquisition and IP collaborations.

Q: Can you elaborate on the rebalancing of POIs from direct-to-network partner model and the outlook for 2024?

A: Rebalancing is due to increase in network partner count and underperforming direct model POIs being terminated. Network partner model will continue to drive growth, focusing on covering more regions, complementing existing direct model coverage, and providing operational leverage. For 2024, focus on KA acquisition, network partner coverage, and POI quality optimization.

Q: What is the outlook for growth and profitability in 2024?

A: Consumption power in China has mixed results, but focus on driving growth, optimizing costs, and capturing opportunities in the mobile device charging service market in China without providing specific top-line or profitability guidance.