6-K
Smart Share Global Ltd (EM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
Commission File Number: 001-40298
SMART SHARE GLOBAL LIMITED
6th Floor, 799 Tianshan W Road
Changning District, Shanghai 200335
The People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release—Smart Share Global Limited Announces Third Quarter 2024 Results |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SMART SHARE GLOBAL LIMITED | ||
|---|---|---|
| By | : | /s/ Maria Yi Xin |
| Name | : | Maria Yi Xin |
| Title | : | Chief Financial Officer |
Date: March 7, 2025
Exhibit 99.1
SmartShare Global Limited Announces Third Quarter 2024 Results
POIs^1^operated through network partner model reached 96.8% as of the end of the thirdquarter of 2024
Cumulativeregistered users^2^ reached 430.2 million as of the end of the third quarterof 2024
SHANGHAI, China, March 6, 2024 (GLOBE NEWSWIRE) -- Smart Share Global Limited (Nasdaq: EM) (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter ended September 30, 2024.
HIGHLIGHTSFOR THE THIRD QUARTER OF 2024
| · | As of September 30, 2024, the Company’s services were<br>available in 1,274 thousand POIs, compared with 1,267 thousand as of June 30, 2024. |
|---|---|
| · | As of September 30, 2024, the Company’s available-for-use<br>power banks^3^ were 9.5 million. |
| --- | --- |
| · | As of September 30, 2024, cumulative registered users reached<br>430.2 million, with 13.1 million newly registered users acquired during the quarter. |
| --- | --- |
| · | Mobile device charging orders^4^<br>for the third quarter of 2024 was 148.1 million, compared with 176.5 million for the third quarter of 2023. |
| --- | --- |
| · | As of September 30, 2024, 96.8% of POIs were operated under<br>our network partner model, compared with 89.2% as of June 30, 2024. |
| --- | --- |
| · | During the third quarter of 2024, the Company successfully completed<br>its transition to the network partners model, accompanied by a retrospective review of the network partner model throughout the transition<br>period. |
| --- | --- |
FINANCIALRESULTS FOR THE THIRD QUARTER OF 202****4
Revenueswere RMB490.8 million (US$69.9 million^5^) for the third quarter of 2024, representing a 20.0% decrease from the same period in 2023. The decrease was primarily due to the decrease in revenues generated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model.
| · | Mobile device charging revenues, which consist of revenues generated under both the direct and<br> network partner models, decreased by 34.8% to<br> RMB367.9 million (US$52.4 million) for the third<br> quarter of 2024, from RMB564.2 million in the same period of 2023. |
|---|---|
| o | Revenues<br> generated under the network partner model, comprising of (i) mobile device charging<br> solution fees, which increased by 12.2% year-over-year to RMB65.9 million, and (ii) power<br> bank, cabinet and other related sales, which increased by 10.3% year-over-year to RMB243.9<br> million, increased by 10.7% to RMB309.8 million for the third quarter of 2024, from RMB280.0<br> million in the same period of 2023. The increase was primarily due<br> to the increase in the number of POIs operated under the network partner model as part of<br> the Company’s overall strategy of shifting towards the network partner model. |
| --- | --- |
^1^The Company defines number of points of interests, or POIs, as of a certain date as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that date and have at least one cabinet assigned to the location.
^2^The Company defines cumulative registered users as the total number of users who have agreed to register their mobile phone numbers with the Company via its mini programs since inception, and the number of cumulative registered users of the Company on a certain date is the number of unique mobile phone numbers that have been registered with the Company since inception on that date.
^3^The Company defines available-for-use power banks as of a certain date as the number of power banks in circulation on that day.
^4^The Company defines mobile device charging orders for a given period as the total number of completed orders placed by registered users of the mobile device charging business under both the direct and network partner models in that given period, without any adjustment for orders that may qualify for discounts or incentives.
^5^The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024, which was RMB7.0176 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.
| o | Revenues generated under the direct model, comprising of mobile device charging service fees of RMB57.1<br>million and power bank sales of RMB0.9 million, decreased by 79.6% to RMB58.0 million for the third quarter of 2024, from RMB284.2 million<br>in the same period of 2023. The decrease was primarily due to the decrease in the number of POIs<br>operated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model. |
|---|---|
| · | Other revenues, which primarily comprise of revenues from new business initiatives and advertising<br>services, increased by 149.4% to RMB122.9 million (US$17.5 million) for the third quarter<br>of 2024, from RMB49.3 million in the same period of 2023. The increase was primarily attributable<br>to new business initiatives. |
| --- | --- |
Costof revenues increased by 38.5% to RMB298.4 million (US$42.5 million) for the third quarter of 2024, from RMB215.5 million in the same period last year. The increase was primarily due to the increase in cost in association with the increase in new business initiatives and cost of cabinet sold.
Researchand development expenses decreased by 15.8% to RMB20.0 million (US$2.9 million) for the third quarter of 2024, from RMB23.8 million in the same period last year. The decrease was primarily due to the decrease in personnel related expenses.
Salesand marketing expenses decreased by 51.8% to RMB142.6 million (US$20.3 million) for the third quarter of 2024 from RMB296.0 million in the same period last year. The decrease was primarily due to the decrease in incentive fees paid to location partners under the direct model and personnel related expenses.
Generaland administrative expenses increased by 10.0% to RMB41.6 million (US$5.9 million) for the third quarter of 2024, compared to RMB37.8 million in the same period last year. The increase was primarily due to the increase in reserve for doubtful accounts in relation to the increasing contribution of the network partner model.
Lossfrom operations for the third quarter of 2024 was RMB5.1 million (US$0.7 million), compared to an income from operations of RMB33.4 million in the same period last year.
Net****income for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income of RMB49.0 million in the same period last year.
Non-GAAPa****djusted net income for the third quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a non-GAAP adjusted net income of RMB54.2 million in the same period last year.
Net****income attributable to ordinary shareholders for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income attributable to ordinary shareholders of RMB49.0 million in the same period last year.
As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.0 billion (US$432.0 million).
SUPPLEMENTAL INFORMATION
The table below sets forth the breakdown of mobile device charging revenue components based on the latest classification for the periods indicated:
| 2023Q3 | 2024Q2 | 2024Q3 | ||||
|---|---|---|---|---|---|---|
| thousands RMB | thousands RMB | thousands RMB | ||||
| Mobile device charging: | ||||||
| Network Partner Model | 279,960 | 292,505 | 309,837 | |||
| Mobile device charging solution | 58,759 | 61,508 | 65,935 | |||
| Power bank, cabinet and other related sales | 221,201 | 230,997 | 243,902 | |||
| Direct Model | 284,233 | 118,105 | 58,048 | |||
| Mobile device charging service | 278,099 | 115,863 | 57,113 | |||
| Power bank sales | 6,134 | 2,242 | 935 | |||
| Total mobile device charging | 564,193 | 410,610 | 367,885 |
CORRECTIONsof previously announced interim financial information and previously issued financialstatements
In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F. The section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” sets forth the specific corrections made to previously announced interim financial information and previously issued financial statements.
AboutSmart Share Global Limited
Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is a leading provider of mobile device charging service in China with an extensive network of partners powered by its own advanced service platform. The Company provides mobile device charging service through its shared power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of September 30, 2024, the Company had 13,000 network partners and 9.5 million power banks in 1,274,000 POIs across more than 2,100 counties and county-level districts in China.
ContactUs
Investor Relations
Hansen Shi
SafeHarbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (“SEC”), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
NON-GAAP FINANCIAL MEASURE
In evaluating its business, the Company considers and uses non-GAAP adjusted net income in reviewing and assessing its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that this non-GAAP financial measure helps identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects.
Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and have limitations as analytical tools. The Company’s non-GAAP financial measure does not reflect all items of expenses that affect its operations and does not represent the residual cash flow available for discretionary expenditures. Further, the Company’s non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling its non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating performance. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure.
The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Smart Share Global Limited
Unaudited Consolidated Balance Sheets
(In thousands, except for share and per share data, unless otherwise noted)
| December 31, 2023 | September 30, 2024 | September 30, 2024 | ||||||
|---|---|---|---|---|---|---|---|---|
| RMB | RMB | US | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 588,644 | 256,963 | ||||||
| Restricted cash | 173,246 | 114,291 | ||||||
| Short-term investments | 2,541,889 | 2,640,281 | ||||||
| Accounts receivable, net | 268,743 | 338,646 | ||||||
| Inventory | 106,530 | 162,508 | ||||||
| Prepayments and other current assets | 339,251 | 401,626 | ||||||
| Total current assets | 4,018,303 | 3,914,315 | ||||||
| Non-current assets: | ||||||||
| Long-term restricted cash | 20,000 | 20,000 | ||||||
| Property, equipment and software, net | 322,806 | 190,720 | ||||||
| Right-of-use assets, net | 16,353 | 9,010 | ||||||
| Other non-current assets | 20,469 | 6,759 | ||||||
| Deferred tax assets, net | 22,165 | 1,252 | ||||||
| Total non-current assets | 401,793 | 227,741 | ||||||
| Total assets | 4,420,096 | 4,142,056 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts and notes payable | 767,669 | 577,508 | ||||||
| Salary and welfare payable | 143,653 | 133,204 | ||||||
| Taxes payable | 230,763 | 207,414 | ||||||
| Current portion of lease liabilities | 7,399 | 3,585 | ||||||
| Accruals and other current liabilities | 336,959 | 352,341 | ||||||
| Total current liabilities | 1,486,443 | 1,274,052 | ||||||
| Non-current liabilities: | ||||||||
| Non-current lease liabilities | 7,641 | 5,090 | ||||||
| Amounts due to related parties-non-current | 1,000 | 1,000 | ||||||
| Other non-current liabilities | 195,585 | 215,780 | ||||||
| Total non-current liabilities | 204,226 | 221,870 | ||||||
| Total liabilities | 1,690,669 | 1,495,922 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Ordinary shares | 347 | 347 | ||||||
| Treasury stock | (5,549 | ) | (45,964 | ) | ) | |||
| Additional paid-in capital | 11,791,570 | 11,748,257 | ||||||
| Statutory reserves | 16,593 | 16,593 | ||||||
| Accumulated other comprehensive income | 182,824 | 168,951 | ||||||
| Accumulated deficit | (9,256,358 | ) | (9,242,050 | ) | ) | |||
| Total shareholders' equity | 2,729,427 | 2,646,134 | ||||||
| Total liabilities and shareholders' equity | 4,420,096 | 4,142,056 |
All values are in US Dollars.
Smart Share Global Limited
Unaudited Consolidated Statements of Comprehensive Income/ (Loss)
(In thousands, except for share and per share data, unless otherwise noted)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| RMB | RMB | US | RMB | RMB | US | |||||||||||
| As corrected* | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Mobile device charging | 564,193 | 367,885 | 2,403,516 | 1,156,571 | ||||||||||||
| Others | 49,273 | 122,898 | 68,511 | 194,341 | ||||||||||||
| Total revenues | 613,466 | 490,783 | 2,472,027 | 1,350,912 | ||||||||||||
| Cost of revenues | (215,461 | ) | (298,396 | ) | ) | (1,014,390 | ) | (685,733 | ) | ) | ||||||
| Research and development expenses | (23,799 | ) | (20,042 | ) | ) | (63,894 | ) | (60,528 | ) | ) | ||||||
| Sales and marketing expenses | (295,990 | ) | (142,614 | ) | ) | (1,258,883 | ) | (523,545 | ) | ) | ||||||
| General and administrative expenses | (37,777 | ) | (41,563 | ) | ) | (96,535 | ) | (108,511 | ) | ) | ||||||
| Other operating (loss)/income | (7,023 | ) | 6,763 | (17,033 | ) | (4,030 | ) | ) | ||||||||
| Income/(loss) from operations | 33,416 | (5,069 | ) | ) | 21,292 | (31,435 | ) | ) | ||||||||
| Interest and investment income | 32,160 | 27,919 | 86,450 | 87,262 | ||||||||||||
| Interest expense to third parties | - | - | (4,228 | ) | - | |||||||||||
| Foreign exchange loss, net | 4,299 | 5,700 | (8,210 | ) | 2,597 | |||||||||||
| Other (loss)/income, net | (16 | ) | 19 | (27 | ) | 87 | ||||||||||
| Income before income tax expense | 69,859 | 28,569 | 95,277 | 58,511 | ||||||||||||
| Income tax expense | (20,849 | ) | (24,323 | ) | ) | (20,231 | ) | (44,203 | ) | ) | ||||||
| Net income | 49,010 | 4,246 | 75,046 | 14,308 | ||||||||||||
| Net income attributable to ordinary shareholders of Smart Share Global Limited | 49,010 | 4,246 | 75,046 | 14,308 | ||||||||||||
| Other comprehensive (loss)/income | ||||||||||||||||
| Foreign currency translation adjustments, net of nil tax | (12,332 | ) | (22,136 | ) | ) | 38,090 | (13,873 | ) | ) | |||||||
| Total comprehensive income/(loss) | 36,678 | (17,890 | ) | ) | 113,136 | 435 | ||||||||||
| Comprehensive income/(loss) attributable to ordinary shareholders of Smart Share Global Limited | 36,678 | (17,890 | ) | ) | 113,136 | 435 | ||||||||||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||||||||||
| - basic | 520,075,932 | 507,084,501 | 519,795,778 | 512,825,904 | ||||||||||||
| - diluted | 520,075,932 | 512,101,780 | 519,795,778 | 517,894,151 | ||||||||||||
| Net income per share attributable to ordinary shareholders | ||||||||||||||||
| - basic | 0.09 | 0.01 | 0.14 | 0.03 | ||||||||||||
| - diluted | 0.09 | 0.01 | 0.14 | 0.03 | ||||||||||||
| Net income per ADS attributable to ordinary shareholders | ||||||||||||||||
| - basic | 0.19 | 0.02 | 0.29 | 0.06 | ||||||||||||
| - diluted | 0.19 | 0.02 | 0.29 | 0.06 |
All values are in US Dollars.
*The corrections as detailed in the section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” were material to the previously announced unaudited consolidated financial information of the Company for the nine months ended September 30, 2023.
Corrections of Previously Announced InterimFinancial Information and Previously Issued Financial Statements
In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F.
The Company is still in the process of assessing the control implications in connection with the identified errors. The Company has previously concluded that it had two material weaknesses in internal control over financial reporting, including (i) the Company’s lack of sufficient competent financial reporting and accounting personnel with appropriate understanding of accounting principles generally accepted in the United States of America, or U.S. GAAP, to address complex U.S. GAAP technical accounting issues and to prepare and review its consolidated financial statements, including disclosure notes, in accordance with U.S. GAAP and financial reporting requirements set forth by the SEC, and (ii) the Company’s lack of period end financial closing policies and procedures for preparation of consolidated financial statements, including disclosure notes, which are in compliance with U.S. GAAP and the SEC’s reporting and disclosure requirements. As a result of the errors identified, the Company could identify additional material weaknesses as part of finalizing its analysis related to its annual report process.
The Company assessed the effects of the corrections in previously announced interim financial information and previously issued financial statements for the prior periods affected and determined that they were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023, where the corrected amounts are labelled as “As corrected” in the following tables, but are not material to any of the other prior interim financial information or annual financial statements of the Company, where the corrected amounts are labelled as “As revised” in the following tables.
The following tables present the aggregated impact of the corrections to the financial information for the prior periods. The previously issued consolidated financial statements as of December 31, 2022 and 2023 and for the years then ended will be revised when they are presented in the Company’s Form 20-F for the year ended December 31, 2024.
| Year<br> ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error<br> # | ||||||||||||||||||||||||||||||||||
| (Amounts in thousands of RMB) | |||||||||||||||||||||||||||||||||||||
| Sales<br> and marketing expenses | (2,950,972 | ) | (3,457 | ) | (2,954,429 | ) | 2>,<br> 3> | ||||||||||||||||||||||||||||||
| General<br> and administrative expenses | (118,973 | ) | (1,847 | ) | (120,820 | ) | 3> | ||||||||||||||||||||||||||||||
| Loss<br> from operations | (108,999 | ) | (5,304 | ) | (114,303 | ) | |||||||||||||||||||||||||||||||
| Loss<br> before income tax expense | (124,615 | ) | (5,304 | ) | (129,919 | ) | |||||||||||||||||||||||||||||||
| Net<br> loss | (124,615 | ) | (5,304 | ) | (129,919 | ) | |||||||||||||||||||||||||||||||
| Net<br> loss attributable to ordinary shareholders | (4,958,370 | ) | (5,304 | ) | (4,963,674 | ) | |||||||||||||||||||||||||||||||
| Total<br> comprehensive loss | (274,882 | ) | (5,304 | ) | (280,186 | ) | |||||||||||||||||||||||||||||||
| Net<br> loss per share attributable to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| -<br> basic and diluted | (12.20 | ) | (0.01 | ) | (12.21 | ) | |||||||||||||||||||||||||||||||
| Net<br> loss per ADS attributable to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| -<br> basic and diluted | (24.40 | ) | (0.02 | ) | (24.42 | ) | |||||||||||||||||||||||||||||||
| Adjusted<br> net loss (non-GAAP) | (93,904 | ) | (5,304 | ) | (99,208 | ) | |||||||||||||||||||||||||||||||
| Three<br> months ended March 31, 2022 | Three<br> months ended June 30, 2022 | Three<br> months ended September 30, 2022 | Three<br> months ended December 31, 2022 | ||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error # | |||||||||||||||||||||||||
| (Amounts in thousands of RMB) | (Amounts in thousands of RMB) | (Amounts in thousands of RMB) | (Amounts in thousands of RMB) | ||||||||||||||||||||||||||||||||||
| Cost of revenues | (127,553 | ) | (398 | ) | (127,951 | ) | (162,869 | ) | (3,885 | ) | (166,754 | ) | (125,548 | ) | (6,545 | ) | (132,093 | ) | (140,953 | ) | (5,484 | ) | (146,437 | ) | 1> | ||||||||||||
| Sales and marketing expenses | (659,679 | ) | (919 | ) | (660,598 | ) | (664,918 | ) | (2,318 | ) | (667,236 | ) | (752,534 | ) | (325 | ) | (752,859 | ) | (635,199 | ) | 760 | (634,439 | ) | 2>, 3> | |||||||||||||
| General and administrative expenses | (27,376 | ) | (145 | ) | (27,521 | ) | (28,458 | ) | (199 | ) | (28,657 | ) | (29,421 | ) | (212 | ) | (29,633 | ) | (27,148 | ) | (812 | ) | (27,960 | ) | 3> | ||||||||||||
| Other operating income/(loss) | 5,277 | - | 5,277 | (1,565 | ) | (821 | ) | (2,386 | ) | 19,846 | (1,287 | ) | 18,559 | (10,682 | ) | (796 | ) | (11,478 | ) | 1> | |||||||||||||||||
| Loss from operations | (99,316 | ) | (1,462 | ) | (100,778 | ) | (191,028 | ) | (7,223 | ) | (198,251 | ) | (96,974 | ) | (8,369 | ) | (105,343 | ) | (233,927 | ) | (6,332 | ) | (240,259 | ) | |||||||||||||
| Loss before income tax expense | (96,411 | ) | (1,462 | ) | (97,873 | ) | (184,527 | ) | (7,223 | ) | (191,750 | ) | (95,754 | ) | (8,369 | ) | (104,123 | ) | (220,072 | ) | (6,332 | ) | (226,404 | ) | |||||||||||||
| Income tax expense | - | 365 | 365 | - | 1,131 | 1,131 | - | 1,372 | 1,372 | (114,476 | ) | 1,005 | (113,471 | ) | All | ||||||||||||||||||||||
| Net loss | (96,411 | ) | (1,097 | ) | (97,508 | ) | (184,527 | ) | (6,092 | ) | (190,619 | ) | (95,754 | ) | (6,997 | ) | (102,751 | ) | (334,548 | ) | (5,327 | ) | (339,875 | ) | |||||||||||||
| Net loss attributable to ordinary<br> shareholders | (96,411 | ) | (1,097 | ) | (97,508 | ) | (184,527 | ) | (6,092 | ) | (190,619 | ) | (95,754 | ) | (6,997 | ) | (102,751 | ) | (334,548 | ) | (5,327 | ) | (339,875 | ) | |||||||||||||
| Total comprehensive loss | (102,246 | ) | (1,097 | ) | (103,343 | ) | (108,881 | ) | (6,092 | ) | (114,973 | ) | (21,459 | ) | (6,997 | ) | (28,456 | ) | (366,282 | ) | (5,327 | ) | (371,609 | ) | |||||||||||||
| Net loss per share attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (0.20 | ) | 0.01 | (0.19 | ) | (0.36 | ) | (0.01 | ) | (0.37 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | (0.64 | ) | (0.02 | ) | (0.66 | ) | ||||||||||||||
| Net loss per ADS attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (0.40 | ) | 0.02 | (0.38 | ) | (0.72 | ) | (0.02 | ) | (0.74 | ) | (0.36 | ) | (0.04 | ) | (0.40 | ) | (1.28 | ) | (0.03 | ) | (1.31 | ) | ||||||||||||||
| Adjusted net loss (non-GAAP) | (89,695 | ) | (1,097 | ) | (90,792 | ) | (177,491 | ) | (6,092 | ) | (183,583 | ) | (88,638 | ) | (6,997 | ) | (95,635 | ) | (327,171 | ) | (5,327 | ) | (332,498 | ) | |||||||||||||
| Six<br> months ended June 30, 2022 | Nine<br> months ended September 30, 2022 | Year<br> ended December 31, 2022 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Cost of revenues | (290,422 | ) | (4,283 | ) | (294,705 | ) | (415,970 | ) | (10,828 | ) | (426,798 | ) | (556,923 | ) | (16,312 | ) | (573,235 | ) | 1> | ||||||||||||||||||
| Sales and marketing expenses | (1,324,597 | ) | (3,237 | ) | (1,327,834 | ) | (2,077,131 | ) | (3,562 | ) | (2,080,693 | ) | (2,712,330 | ) | (2,802 | ) | (2,715,132 | ) | 2>, 3> | ||||||||||||||||||
| General and administrative expenses | (55,834 | ) | (344 | ) | (56,178 | ) | (85,255 | ) | (556 | ) | (85,811 | ) | (112,403 | ) | (1,368 | ) | (113,771 | ) | 3> | ||||||||||||||||||
| Other operating income | 3,712 | (821 | ) | 2,891 | 23,558 | (2,108 | ) | 21,450 | 12,876 | (2,904 | ) | 9,972 | 1> | ||||||||||||||||||||||||
| Loss from operations | (290,344 | ) | (8,685 | ) | (299,029 | ) | (387,318 | ) | (17,054 | ) | (404,372 | ) | (621,245 | ) | (23,386 | ) | (644,631 | ) | |||||||||||||||||||
| Loss before income tax expense | (280,938 | ) | (8,685 | ) | (289,623 | ) | (376,692 | ) | (17,054 | ) | (393,746 | ) | (596,764 | ) | (23,386 | ) | (620,150 | ) | |||||||||||||||||||
| Income tax expense | - | 1,496 | 1,496 | - | 2,868 | 2,868 | (114,476 | ) | 3,873 | (110,603 | ) | All | |||||||||||||||||||||||||
| Net loss | (280,938 | ) | (7,189 | ) | (288,127 | ) | (376,692 | ) | (14,186 | ) | (390,878 | ) | (711,240 | ) | (19,513 | ) | (730,753 | ) | |||||||||||||||||||
| Net loss attributable to ordinary<br> shareholders | (280,938 | ) | (7,189 | ) | (288,127 | ) | (376,692 | ) | (14,186 | ) | (390,878 | ) | (711,240 | ) | (19,513 | ) | (730,753 | ) | |||||||||||||||||||
| Total comprehensive loss | (211,127 | ) | (7,189 | ) | (218,316 | ) | (232,586 | ) | (14,186 | ) | (246,772 | ) | (598,868 | ) | (19,513 | ) | (618,381 | ) | |||||||||||||||||||
| Net loss per share attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (0.54 | ) | (0.02 | ) | (0.56 | ) | (0.73 | ) | (0.02 | ) | (0.75 | ) | (1.37 | ) | (0.04 | ) | (1.41 | ) | |||||||||||||||||||
| Net loss per ADS attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (1.08 | ) | (0.04 | ) | (1.12 | ) | (1.46 | ) | (0.04 | ) | (1.50 | ) | (2.74 | ) | (0.08 | ) | (2.82 | ) | |||||||||||||||||||
| Adjusted net loss (non-GAAP) | (267,186 | ) | (7,189 | ) | (274,375 | ) | (355,824 | ) | (14,186 | ) | (370,010 | ) | (682,995 | ) | (19,513 | ) | (702,508 | ) | |||||||||||||||||||
| Three<br> months ended March 31, 2023 | Three<br> months ended June 30, 2023 | Three<br> months ended September 30, 2023 | Three<br> months ended December 31, 2023 | ||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As<br> Previously<br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br><br> Previously<br><br> Reported | Corrections | As<br> corrected* | Error # | |||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||
| Cost of revenues | (127,389 | ) | (1,355 | ) | (128,744 | ) | (668,547 | ) | (1,638 | ) | (670,185 | ) | (214,817 | ) | (644 | ) | (215,461 | ) | (198,711 | ) | 6,910 | (191,801 | ) | 1> | |||||||||||||
| Sales and marketing expenses | (665,274 | ) | (1,253 | ) | (666,527 | ) | (295,150 | ) | (1,216 | ) | (296,366 | ) | (298,216 | ) | 2,226 | (295,990 | ) | (248,792 | ) | 1,075 | (247,717 | ) | 2>, 3> | ||||||||||||||
| General and administrative expenses | (26,771 | ) | (450 | ) | (27,221 | ) | (31,117 | ) | (420 | ) | (31,537 | ) | (37,094 | ) | (683 | ) | (37,777 | ) | (30,546 | ) | (955 | ) | (31,501 | ) | 3> | ||||||||||||
| Other operating income/(loss) | 2,268 | (2,305 | ) | (37 | ) | (8,703 | ) | (1,270 | ) | (9,973 | ) | (5,532 | ) | (1,491 | ) | (7,023 | ) | (13,860 | ) | 4,985 | (8,875 | ) | 1> | ||||||||||||||
| (Loss)/income from operations | (15,775 | ) | (5,363 | ) | (21,138 | ) | 13,558 | (4,544 | ) | 9,014 | 34,008 | (592 | ) | 33,416 | (32,856 | ) | 12,015 | (20,841 | ) | ||||||||||||||||||
| Income before income tax expense | 10,810 | (5,363 | ) | 5,447 | 24,515 | (4,544 | ) | 19,971 | 70,451 | (592 | ) | 69,859 | 2,986 | 12,015 | 15,001 | ||||||||||||||||||||||
| Income tax expense | - | 227 | 227 | - | 391 | 391 | (20,442 | ) | (407 | ) | (20,849 | ) | (579 | ) | (724 | ) | (1,303 | ) | All | ||||||||||||||||||
| Net income | 10,810 | (5,136 | ) | 5,674 | 24,515 | (4,153 | ) | 20,362 | 50,009 | (999 | ) | 49,010 | 2,407 | 11,291 | 13,698 | ||||||||||||||||||||||
| Net income attributable to ordinary<br> shareholders | 10,810 | (5,136 | ) | 5,674 | 24,515 | (4,153 | ) | 20,362 | 50,009 | (999 | ) | 49,010 | 2,407 | 11,291 | 13,698 | ||||||||||||||||||||||
| Total comprehensive (loss)/income | (7,257 | ) | (5,136 | ) | (12,393 | ) | 93,004 | (4,153 | ) | 88,851 | 37,677 | (999 | ) | 36,678 | (16,787 | ) | 11,291 | (5,496 | ) | ||||||||||||||||||
| Net income per share attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | 0.02 | (0.01 | ) | 0.01 | 0.05 | (0.01 | ) | 0.04 | 0.10 | (0.01 | ) | 0.09 | 0.00 | 0.03 | 0.03 | ||||||||||||||||||||||
| Net income per ADS attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | 0.04 | (0.02 | ) | 0.02 | 0.10 | (0.02 | ) | 0.08 | 0.20 | (0.01 | ) | 0.19 | 0.00 | 0.05 | 0.05 | ||||||||||||||||||||||
| Adjusted net income (non-GAAP) | 17,095 | (5,136 | ) | 11,959 | 30,055 | (4,153 | ) | 25,902 | 55,214 | (999 | ) | 54,215 | 5,716 | 11,291 | 17,007 | ||||||||||||||||||||||
| Six<br> months ended June 30, 2023 | Nine<br> months ended September 30, 2023 | Year<br> ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Cost of revenues | (795,936 | ) | (2,993 | ) | (798,929 | ) | (1,010,753 | ) | (3,637 | ) | (1,014,390 | ) | (1,209,464 | ) | 3,273 | (1,206,191 | ) | 1> | |||||||||||||||||||
| Sales and marketing expenses | (960,424 | ) | (2,469 | ) | (962,893 | ) | (1,258,640 | ) | (243 | ) | (1,258,883 | ) | (1,507,432 | ) | 832 | (1,506,600 | ) | 2>, 3> | |||||||||||||||||||
| General and administrative expenses | (57,888 | ) | (870 | ) | (58,758 | ) | (94,982 | ) | (1,553 | ) | (96,535 | ) | (125,528 | ) | (2,508 | ) | (128,036 | ) | 3> | ||||||||||||||||||
| Other operating loss | (6,435 | ) | (3,575 | ) | (10,010 | ) | (11,967 | ) | (5,066 | ) | (17,033 | ) | (25,827 | ) | (81 | ) | (25,908 | ) | 1> | ||||||||||||||||||
| (Loss)/income from operations | (2,217 | ) | (9,907 | ) | (12,124 | ) | 31,791 | (10,499 | ) | 21,292 | (1,065 | ) | 1,516 | 451 | |||||||||||||||||||||||
| Income before income tax expense | 35,325 | (9,907 | ) | 25,418 | 105,776 | (10,499 | ) | 95,277 | 108,762 | 1,516 | 110,278 | ||||||||||||||||||||||||||
| Income tax expense | - | 618 | 618 | (20,442 | ) | 211 | (20,231 | ) | (21,021 | ) | (513 | ) | (21,534 | ) | All | ||||||||||||||||||||||
| Net income | 35,325 | (9,289 | ) | 26,036 | 85,334 | (10,288 | ) | 75,046 | 87,741 | 1,003 | 88,744 | ||||||||||||||||||||||||||
| Net income attributable to ordinary<br> shareholders | 35,325 | (9,289 | ) | 26,036 | 85,334 | (10,288 | ) | 75,046 | 87,741 | 1,003 | 88,744 | ||||||||||||||||||||||||||
| Total comprehensive income | 85,747 | (9,289 | ) | 76,458 | 123,424 | (10,288 | ) | 113,136 | 106,637 | 1,003 | 107,640 | ||||||||||||||||||||||||||
| Net income per share attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | 0.07 | (0.02 | ) | 0.05 | 0.16 | (0.02 | ) | 0.14 | 0.17 | 0.00 | 0.17 | ||||||||||||||||||||||||||
| Net income per ADS attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | 0.14 | (0.04 | ) | 0.10 | 0.32 | (0.03 | ) | 0.29 | 0.34 | 0.00 | 0.34 | ||||||||||||||||||||||||||
| Adjusted net income (non-GAAP) | 47,150 | (9,289 | ) | 37,861 | 102,364 | (10,288 | ) | 92,076 | 108,080 | 1,003 | 109,083 | ||||||||||||||||||||||||||
| Three<br> months ended March 31, 2024 | Three<br> months ended June 30, 2024 | Six<br> months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br> corrected* | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Cost of revenues | (167,737 | ) | - | (167,737 | ) | (219,600 | ) | - | (219,600 | ) | (387,337 | ) | - | (387,337 | ) | 1> | |||||||||||||||||||||
| Sales and marketing expenses | (204,494 | ) | 2,082 | (202,412 | ) | (180,949 | ) | 2,430 | (178,519 | ) | (385,443 | ) | 4,512 | (380,931 | ) | 2>, 3> | |||||||||||||||||||||
| General and administrative expenses | (26,584 | ) | (986 | ) | (27,570 | ) | (39,450 | ) | 72 | (39,378 | ) | (66,034 | ) | (914 | ) | (66,948 | ) | 3> | |||||||||||||||||||
| Other operating loss | (1,474 | ) | (593 | ) | (2,067 | ) | (8,133 | ) | (593 | ) | (8,726 | ) | (9,607 | ) | (1,186 | ) | (10,793 | ) | 1> | ||||||||||||||||||
| Loss from operations | (22,757 | ) | 503 | (22,254 | ) | (6,021 | ) | 1,909 | (4,112 | ) | (28,778 | ) | 2,412 | (26,366 | ) | ||||||||||||||||||||||
| Income before income tax expense | 7,339 | 503 | 7,842 | 20,191 | 1,909 | 22,100 | 27,530 | 2,412 | 29,942 | ||||||||||||||||||||||||||||
| Income tax expense | (7,688 | ) | (354 | ) | (8,042 | ) | (11,013 | ) | (825 | ) | (11,838 | ) | (18,701 | ) | (1,179 | ) | (19,880 | ) | All | ||||||||||||||||||
| Net (loss)/income | (349 | ) | 149 | (200 | ) | 9,178 | 1,084 | 10,262 | 8,829 | 1,233 | 10,062 | ||||||||||||||||||||||||||
| Net (loss)/income attributable<br> to ordinary shareholders | (349 | ) | 149 | (200 | ) | 9,178 | 1,084 | 10,262 | 8,829 | 1,233 | 10,062 | ||||||||||||||||||||||||||
| Total comprehensive income | 2,013 | 149 | 2,162 | 15,079 | 1,084 | 16,163 | 17,092 | 1,233 | 18,325 | ||||||||||||||||||||||||||||
| Net (loss)/ income per share attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (0.00 | ) | 0.00 | (0.00 | ) | 0.02 | 0.00 | 0.02 | 0.02 | 0.00 | 0.02 | ||||||||||||||||||||||||||
| Net (loss)/ income per ADS attributable<br> to ordinary shareholders | |||||||||||||||||||||||||||||||||||||
| - basic and diluted | (0.00 | ) | 0.00 | (0.00 | ) | 0.04 | 0.00 | 0.04 | 0.03 | 0.01 | 0.04 | ||||||||||||||||||||||||||
| Adjusted net income (non-GAAP) | 3,834 | 149 | 3,983 | 15,212 | 1,084 | 16,296 | 19,046 | 1,233 | 20,279 | ||||||||||||||||||||||||||||
| As<br> of March 31, 2022 | As<br> of June 30, 2022 | As<br> of September 30, 2022 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Accounts receivable,<br> net | 11,616 | - | 11,616 | 16,729 | - | 16,729 | 13,862 | - | 13,862 | 3> | |||||||||||||||||||||||||||
| Prepayments and other current<br> assets | 396,431 | 5,399 | 401,830 | 408,906 | 2,406 | 411,312 | 365,891 | (51 | ) | 365,840 | 2>, 3> | ||||||||||||||||||||||||||
| Total current assets | 3,158,544 | 5,399 | 3,163,943 | 3,296,072 | 2,406 | 3,298,478 | 3,473,368 | (51 | ) | 3,473,317 | |||||||||||||||||||||||||||
| Deferred tax assets | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Other non-current assets | 143,384 | (317 | ) | 143,067 | 114,696 | (317 | ) | 114,379 | 75,356 | (319 | ) | 75,037 | 3> | ||||||||||||||||||||||||
| Total non-current assets | 1,085,178 | (317 | ) | 1,084,861 | 1,011,567 | (317 | ) | 1,011,250 | 970,140 | (319 | ) | 969,821 | |||||||||||||||||||||||||
| Total assets | 4,243,722 | 5,082 | 4,248,804 | 4,307,639 | 2,089 | 4,309,728 | 4,443,508 | (370 | ) | 4,443,138 | |||||||||||||||||||||||||||
| Accounts and notes payable | 533,924 | 11,866 | 545,790 | 691,115 | 11,391 | 702,506 | 796,380 | 9,469 | 805,849 | 2> | |||||||||||||||||||||||||||
| Tax payable | 8,373 | 33 | 8,406 | 33,048 | 3,607 | 36,655 | 93,077 | 10,067 | 103,144 | All | |||||||||||||||||||||||||||
| Current Liabilities | 992,753 | 11,899 | 1,004,652 | 1,176,270 | 14,998 | 1,191,268 | 1,336,208 | 19,536 | 1,355,744 | ||||||||||||||||||||||||||||
| Total liabilities | 1,120,470 | 11,899 | 1,132,369 | 1,290,251 | 14,998 | 1,305,249 | 1,441,126 | 19,536 | 1,460,662 | ||||||||||||||||||||||||||||
| Accumulated deficit | (8,704,399 | ) | (6,817 | ) | (8,711,216 | ) | (8,888,927 | ) | (12,909 | ) | (8,901,836 | ) | (8,984,680 | ) | (19,906 | ) | (9,004,586 | ) | All | ||||||||||||||||||
| Total shareholders' equity | 3,123,252 | (6,817 | ) | 3,116,435 | 3,017,388 | (12,909 | ) | 3,004,479 | 3,002,382 | (19,906 | ) | 2,982,476 | |||||||||||||||||||||||||
| Total liabilities and shareholders'<br> equity | 4,243,722 | 5,082 | 4,248,804 | 4,307,639 | 2,089 | 4,309,728 | 4,443,508 | (370 | ) | 4,443,138 | |||||||||||||||||||||||||||
| As<br> of March 31, 2023 | As<br> of June 30, 2023 | As<br> of September 30, 2023 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br><br> corrected* | As<br> Previously<br><br> Reported | Corrections | As<br> corrected* | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Accounts receivable,<br> net | 17,203 | - | 17,203 | 243,068 | (29 | ) | 243,039 | 243,771 | (524 | ) | 243,247 | 3> | |||||||||||||||||||||||||
| Prepayments and other current<br> assets | 302,793 | (4,234 | ) | 298,559 | 401,716 | (6,548 | ) | 395,168 | 349,793 | (4,368 | ) | 345,425 | 2>, 3> | ||||||||||||||||||||||||
| Total current assets | 3,420,919 | (4,234 | ) | 3,416,685 | 3,916,080 | (6,577 | ) | 3,909,503 | 3,991,784 | (4,892 | ) | 3,986,892 | |||||||||||||||||||||||||
| Deferred tax assets | 30,986 | 3,873 | 34,859 | 30,986 | 3,873 | 34,859 | 23,070 | 3,873 | 26,943 | All | |||||||||||||||||||||||||||
| Other non-current assets | 28,683 | (703 | ) | 27,980 | 19,402 | (1,058 | ) | 18,344 | 19,630 | (1,150 | ) | 18,480 | 3> | ||||||||||||||||||||||||
| Total non-current assets | 978,630 | 3,170 | 981,800 | 391,352 | 2,815 | 394,167 | 419,466 | 2,723 | 422,189 | ||||||||||||||||||||||||||||
| Total assets | 4,399,549 | (1,064 | ) | 4,398,485 | 4,307,432 | (3,762 | ) | 4,303,670 | 4,411,250 | (2,169 | ) | 4,409,081 | |||||||||||||||||||||||||
| Accounts and notes payable | 909,320 | 6,656 | 915,976 | 688,213 | 5,594 | 693,807 | 794,811 | 5,644 | 800,455 | 2> | |||||||||||||||||||||||||||
| Tax payable | 169,452 | 22,649 | 192,101 | 262,152 | 25,166 | 287,318 | 215,253 | 27,708 | 242,961 | All | |||||||||||||||||||||||||||
| Current Liabilities | 1,543,809 | 29,305 | 1,573,114 | 1,382,863 | 30,760 | 1,413,623 | 1,444,630 | 33,352 | 1,477,982 | ||||||||||||||||||||||||||||
| Total liabilities | 1,766,006 | 29,305 | 1,795,311 | 1,579,012 | 30,760 | 1,609,772 | 1,642,733 | 33,352 | 1,676,085 | ||||||||||||||||||||||||||||
| Accumulated deficit | (9,309,059 | ) | (30,369 | ) | (9,339,428 | ) | (9,284,544 | ) | (34,522 | ) | (9,319,066 | ) | (9,234,535 | ) | (35,521 | ) | (9,270,056 | ) | All | ||||||||||||||||||
| Total shareholders' equity | 2,633,543 | (30,369 | ) | 2,603,174 | 2,728,420 | (34,522 | ) | 2,693,898 | 2,768,517 | (35,521 | ) | 2,732,996 | |||||||||||||||||||||||||
| Total liabilities and shareholders'<br> equity | 4,399,549 | (1,064 | ) | 4,398,485 | 4,307,432 | (3,762 | ) | 4,303,670 | 4,411,250 | (2,169 | ) | 4,409,081 | |||||||||||||||||||||||||
| As<br> of December 31, 2021 | As<br> of December 31, 2022 | As<br> of December 31, 2023 | |||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | As<br> Previously<br><br> Reported | Corrections | As<br> revised | Error # | ||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||
| Accounts receivable,<br> net | 14,881 | - | 14,881 | 16,482 | - | 16,482 | 269,736 | (993 | ) | 268,743 | 3> | ||||||||||||||||||||||||||
| Prepayments and other current<br> assets | 487,540 | 11,180 | 498,720 | 228,672 | (2,209 | ) | 226,463 | 345,744 | (6,493 | ) | 339,251 | 2>, 3> | |||||||||||||||||||||||||
| Total current assets | 3,247,732 | 11,180 | 3,258,912 | 3,300,784 | (2,209 | ) | 3,298,575 | 4,025,789 | (7,486 | ) | 4,018,303 | ||||||||||||||||||||||||||
| Deferred tax assets | - | - | - | 30,986 | 3,873 | 34,859 | 18,804 | 3,361 | 22,165 | All | |||||||||||||||||||||||||||
| Other non-current assets | 164,986 | (317 | ) | 164,669 | 35,898 | (634 | ) | 35,264 | 21,621 | (1,152 | ) | 20,469 | 3> | ||||||||||||||||||||||||
| Total non-current assets | 1,150,249 | (317 | ) | 1,149,932 | 986,857 | 3,239 | 990,096 | 399,584 | 2,209 | 401,793 | |||||||||||||||||||||||||||
| Total assets | 4,397,981 | 10,863 | 4,408,844 | 4,287,641 | 1,030 | 4,288,671 | 4,425,373 | (5,277 | ) | 4,420,096 | |||||||||||||||||||||||||||
| Accounts and notes payable | 551,751 | 16,583 | 568,334 | 810,197 | 7,048 | 817,245 | 764,741 | 2,928 | 767,669 | 2> | |||||||||||||||||||||||||||
| Tax payable | 10,195 | - | 10,195 | 147,367 | 19,215 | 166,582 | 214,738 | 16,025 | 230,763 | All | |||||||||||||||||||||||||||
| Current Liabilities | 1,028,365 | 16,583 | 1,044,948 | 1,422,878 | 26,263 | 1,449,141 | 1,467,490 | 18,953 | 1,486,443 | ||||||||||||||||||||||||||||
| Total liabilities | 1,165,957 | 16,583 | 1,182,540 | 1,646,336 | 26,263 | 1,672,599 | 1,671,716 | 18,953 | 1,690,669 | ||||||||||||||||||||||||||||
| Accumulated deficit | (8,607,989 | ) | (5,720 | ) | (8,613,709 | ) | (9,319,229 | ) | (25,233 | ) | (9,344,462 | ) | (9,232,128 | ) | (24,230 | ) | (9,256,358 | ) | All | ||||||||||||||||||
| Total shareholders' equity | 3,232,024 | (5,720 | ) | 3,226,304 | 2,641,305 | (25,233 | ) | 2,616,072 | 2,753,657 | (24,230 | ) | 2,729,427 | |||||||||||||||||||||||||
| Total liabilities and shareholders'<br> equity | 4,397,981 | 10,863 | 4,408,844 | 4,287,641 | 1,030 | 4,288,671 | 4,425,373 | (5,277 | ) | 4,420,096 | |||||||||||||||||||||||||||
| As of March 31, 2024 | As of June 30, 2024 | ||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| As Previously<br><br> Reported | Corrections | As corrected* | As Previously<br><br> Reported | Corrections | As corrected* | Error # | |||||||||||||||||||||||||||||||
| **** | (Amounts in thousands of RMB) | **** | (Amounts in thousands of RMB) | **** | |||||||||||||||||||||||||||||||||
| Accounts receivable, net | 278,690 | (1,626 | ) | 277,064 | 300,853 | (1,292 | ) | 299,561 | 3> | ||||||||||||||||||||||||||||
| Prepayments and other current assets | 380,314 | (8,120 | ) | 372,194 | 327,539 | (10,115 | ) | 317,424 | 2>,3> | ||||||||||||||||||||||||||||
| Total current assets | 4,047,143 | (9,746 | ) | 4,037,397 | 3,968,175 | (11,407 | ) | 3,956,768 | |||||||||||||||||||||||||||||
| Deferred tax assets | 18,804 | 3,360 | 22,164 | 18,804 | 3,360 | 22,164 | All | ||||||||||||||||||||||||||||||
| Other non-current assets | 20,081 | (1,368 | ) | 18,713 | 16,592 | (1,391 | ) | 15,201 | 3> | ||||||||||||||||||||||||||||
| Total non-current assets | 354,770 | 1,992 | 356,762 | 304,324 | 1,969 | 306,293 | |||||||||||||||||||||||||||||||
| Total assets | 4,401,913 | (7,754 | ) | 4,394,159 | 4,272,499 | (9,438 | ) | 4,263,061 | |||||||||||||||||||||||||||||
| Accounts and notes payable | 726,011 | (644 | ) | 725,367 | 699,504 | (4,830 | ) | 694,674 | 2> | ||||||||||||||||||||||||||||
| Tax payable | 213,999 | 16,971 | 230,970 | 213,000 | 18,389 | 231,389 | All | ||||||||||||||||||||||||||||||
| Current Liabilities | 1,494,455 | 16,327 | 1,510,782 | 1,374,535 | 13,559 | 1,388,094 | |||||||||||||||||||||||||||||||
| Total liabilities | 1,702,971 | 16,327 | 1,719,298 | 1,588,426 | 13,559 | 1,601,985 | |||||||||||||||||||||||||||||||
| Accumulated deficit | (9,232,477 | ) | (24,081 | ) | (9,256,558 | ) | (9,223,299 | ) | (22,997 | ) | (9,246,296 | ) | All | ||||||||||||||||||||||||
| Total shareholders' equity | 2,698,942 | (24,081 | ) | 2,674,861 | 2,684,073 | (22,997 | ) | 2,661,076 | |||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | 4,401,913 | (7,754 | ) | 4,394,159 | 4,272,499 | (9,438 | ) | 4,263,061 |
* The corrections were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023.
Note:
1> Understatements of accrual for tax surcharges and related interest expenses
Upon the final settlement of the Company’s underpaid VAT, which was recorded in prior periods, and surcharges, which was not recorded in prior periods, with the relevant tax authorities for its mobile device charging revenue in 2024, the Company determined that the unrecorded surcharges and interest expenses related to the surcharges should have been recorded in the same prior periods that the provision for underpaid VAT was recorded. As a result, the Company has determined to correct the accrual for tax surcharges and related interest expenses in prior periods such that cost of revenues, other operating loss, tax payable and accumulated deficit are corrected.
2> Misstatements of accruals for commissions to location partners and related balances
The accounts payable balances due to location partners under the direct model contained certain entries in relation to the commissions to location partners that were duplicative or incomplete in prior periods. Certain debit balances in accounts payable should have been reclassified to prepayments and subjected to impairment as of prior period ends. In connection therewith, the Company has determined to correct the commissions paid to locations partners and related balances for certain prior periods such that sales and marketing expenses, accounts and notes payable, prepayments and other current assets and accumulated deficit are corrected.
3> Understatements of impairment of prepayments to location partners and expected credit losses of deposits to location partners and accounts receivable due from network partners
The different risk characteristics of the prepayments to location partners with invalid or expired contracts, the deposits to location partners under the direct model with expired or invalid contracts and the accounts receivable due from network partners that were deregistered or dissolved were inadequately considered in the impairment assessments of such assets as of prior period ends. In connection therewith, the Company has determined to correct the impairment of prepayments to locations partners and the provision for the expected credit losses of deposits to location partners and accounts receivable due from network partners in prior periods such that sales and marketing expenses, general and administrative expenses, accounts receivable, net, prepayments and other current assets, other non-current assets and accumulated deficit are corrected.
Smart Share Global Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands, except for share and per share data, unless otherwise noted)
| Three months ended September 30, | Nine months ended September 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2024 | 2023 | 2024 | |||||||
| RMB | RMB | US | RMB | RMB | US | |||||
| As corrected* | ||||||||||
| Net income | 49,010 | 4,246 | 75,046 | 14,308 | ||||||
| Add: | ||||||||||
| Share-based compensation | 5,205 | 4,979 | 17,030 | 15,196 | ||||||
| Less: | ||||||||||
| Adjusted for tax effects | - | - | - | - | ||||||
| Adjusted net income (non-GAAP) | 54,215 | 9,225 | 92,076 | 29,504 |
All values are in US Dollars.