FAST NEWS: Smart Share Global posts second straight quarterly profit
The latest: Smart Share Global Ltd. (EM.US), a supplier of rentable power banks, on Tuesday reported a net profit of 50 million yuan ($7.05 million) in the third quarter, reversing a net loss of 95.6 million yuan a year earlier, marking its second consecutive quarterly profit.
Looking up: With China’s gradual return to normal post-pandemic, gross merchandise value (GMV) for the company’s mobile device charging services grew by 18% year-on-year to a record high.
Take Note: The company’s revenue fell 24.7% to 614 million yuan, mainly due to a drop in mobile device charging revenues as the result of changes in contractual arrangements with its network partners.
Digging Deeper: Smart Share Global, better known in China as Energy Monster, provides charging services for mobile devices by renting out power banks in public places such as restaurants, shopping centers, hotels and transportation hubs. The company had just over 1 million mobile charging devices at the end of September. The company’s business was hit hard during the pandemic by the closure of many of the premises where its power banks are located, as consumers were often forced to stay at home due to China’s stringent disease-control measures. But as economic activity recovers, the company’s business has returned to a more stable track, allowing it to become profitable in the second quarter of this year.
Market Reaction: Smart Share Global’s shares fell 6.7% to close at $0.70 after it announced the results on Monday in New York. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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