The Latest: Smart Share Global Ltd. (EM.US), a supplier of rentable power banks, on Tuesday reported its revenue fell 12.4% to 815 million yuan ($114.6 million) in the third quarter, while its net loss widened to 95.8 million yuan from a 79.4 million yuan loss a year earlier.

Looking Up:  The company exceeded its earlier revenue forecast for the quarter. China’s re-opening from Covid also raises hope that the company will be able to recover and return to growth as rental usage gradually picks up with less restrictions on the shops, theaters and other retail venues where most of its power banks are located.

Take Note: Smart Share Global’s revenue guidance of 550 million yuan to 570 million yuan for the fourth quarter represents a significant decline from 836.2 million yuan for the same period last year, reflecting continued difficulties the company has faced in the final three months of the year.

Digging Deeper: Smart Share Global, better known as Energy Monster in China, provides mobile device charging services through power bank rentals at over 956,000 public venues across China, such as restaurants, shopping centers, hotels and transportation hubs. It is the leading player in the sector with a third of the market. Its business has been hit hard over the last three years as many of the venues where its power banks are located were closed and consumers were often forced to stay home as a result of China’s strict Covid control measures. The company has yet to earn a profit as price competition and commission fees for partners continue to weigh in on its business. It could also face weaker demand as quick-charging technology and battery capacity for mobile devices further improves.

Market Reaction:  Smart Share Global’s shares fell 11.9% to close at $1.19 after it announced the results on Tuesday in New York. They currently trade in the middle of their 52-week range.

Reporting by Chan Ka Po

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