Smart Share Global Ltd. Q3 FY2022 earnings call

• COVID continued to impact operations with quarantine and lockdown measures reducing offline foot traffic, but Q3 revenue was above guidance with 18% quarter-over-quarter revenue increase, 11% revenue per power bank increase, and adjusted net loss down 50%. • Network partner model POIs reached 47% at end of Q3, up from 43% last quarter. Direct model POIs decreased to 53% due to COVID. • Focus on expanding coverage via network partner and direct models to leverage network effect. • Efficiency initiatives include reducing fixed fees for new signings, completing development of new power bank cabinets with 40%+ CapEx reduction per cabinet, and refining various operational details.

For the third quarter of 2022, revenues were RMB815 million. Mobile device charging business revenues were RMB791 million, accounting for 97.1% of total revenues. Power bank sales revenues were RMB18.1 million, accounting for 2.2% of total revenues. Other revenues were RMB5.8 million, accounting for 0.7% of total revenues. Cost of revenues was RMB125.5 million, down 10.2% year-over-year. Gross profit was RMB689.4 million, down 12.8% year-over-year.

• Energy Monster currently expects to generate RMB550 million to RMB570 million of revenues for the fourth quarter of 2022. The forecast is subject to change.

• COVID outbreaks continued to impact operations, with outbreaks in regions like Beijing, Guangzhou, etc., causing significant revenue declines. The impact of COVID was expected to remain during Q4 and early next year.

Q: Operator welcomes participants and starts the call.

A: Operator provides instructions and hands over to Hansen Shi. Then Mars Cai and Maria Xin speak.

Q: Operator concludes the conference call.

A: Operator thanks participants and concludes the call