EM stock showed excellent relative strength on September 29, 2021, a day after the company announced a $50M share buyback program.
Smart Share Global Limited Announces Share Repurchase Program
GlobeNewswire – Press Releases
Posted 28-Sep-2021 at 07:00 am EST
SHANGHAI, China, Sept. 28, 2021 (GLOBE NEWSWIRE) — Smart Share Global Limited (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced that its board of directors (“Board”) has authorized a share repurchase plan under which the Company may repurchase up to US$50 million of its shares over the next 12 months (the “Share Repurchase Program”).
The Company’s proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission (the “SEC”) Rule 10b-18 and/or Rule 10b5-1 requirements. The Board will review the Share Repurchase Program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company expects to fund the repurchases under this program with its existing cash balance.
“The Share Repurchase Program reflects our confidence in the long-term prospect of the Company,” said Mars Guangyuan Cai, Chairman and Chief Executive Officer. “We continue to remain focused on our operations and have recently signed key accounts in the amusement park, retail and chain restaurant industries. We also recently expanded our coverage network with the launch of our service in a variety of popular locations in Macau, China. By continuing to offer industry leading service capabilities and expanding our coverage network, we are confident that we will continue expanding our market share as the number one player in China’s mobile device charging service industry.”
“The fundamentals of the Company remain solid even as we are impacted by COVID-19 outbreaks,” said Maria Yi Xin, Chief Financial Officer. “During September, our operations continued to recover from the July COVID-19 outbreak and we continued to maintain a healthy cash balance. Our competitive advantages in operational excellence, network effect, technology and brand continue to help us accelerate our market leadership position compared to our peers. Going forward, these advantages will help us continually deliver value for our users, location partners, network partners and shareholders.”
Smart Share Global Limited Announces Second Quarter 2021 Results
GlobeNewswire – Press Releases
Posted 23-Aug-2021 at 06:30 am EST
Revenues increased 52.9% year-over-year for the second quarter of 2021
Number of POIs1 reached 771 thousand as of the end of the second quarter of 2021
SHANGHAI, China, Aug. 23, 2021 (GLOBE NEWSWIRE) — Smart Share Global Limited (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter ended June 30, 2021.
HIGHLIGHTS FOR THE SECOND QUARTER OF 2021
- Revenues for the second quarter of 2021 were RMB972.4 million (US$150.6 million2), an increase of 52.9% from the second quarter of 2020.
- As of June 30, 2021, our services were available in 771 thousand POIs, compared with 716 thousand as of March 31, 2021.
- As of June 30, 2021, our available-for-use power banks3 were 6.0 million, compared with 5.6 million as of March 31, 2021.
- As of June 30, 2021, cumulative registered users4 reached 255.1 million, with 19.4 million newly registered users acquired during the quarter.
- Adjusted net income5 for the second quarter of 2021 was RMB17.2 million (US$2.7 million).
- “We are pleased to announce solid second quarter results with revenues growing 52.9% year-over-year, which is above the upper end of our previous guidance range, despite the negative impact of COVID,” said Mars Guangyuan Cai, Chairman and Chief Executive Officer. “As a result of continued POI and power bank expansion, we were able to reinforce our leadership and grow our market share to 35.2% within the mobile device charging service industry during the first half of 2021.”
“Efficiency has always been the hallmark of Energy Monster that differentiated us from our peers,” said Peifeng Xu, Chief Operating Officer. “We continue to dynamically balance growth and operational efficiency based on market conditions. In the future, we believe the increase in our business development team and network partners in conjunction with our industry-leading efficiency will allow us to accelerate the advantages of the network effect.”
“Looking into the third quarter, we continue to see headwinds that will impact what traditionally has been the peak quarter of the year,” said Maria Yi Xin, Chief Financial Officer. “Despite these challenges, we are committed to remaining focused on our long-term strategies of providing best-in-class services and value-propositions to our users, location partners, and network partners. By focusing on these strategies, we will be able to further distinguish ourselves from our industry peers and to deliver long-term value to our shareholders.”
FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2021
Revenues were RMB972.4 million (US$150.6 million) for the second quarter of 2021, representing a 52.9% increase from the same period in 2020. The increase was primarily due to the increase in revenues from mobile device charging business.
- Revenues from mobile device charging business increased by 51.6% to RMB931.6 million (US$144.3 million) for the second quarter of 2021 from RMB614.5 million in the same period of 2020. The increase was primarily attributable to the increase in the number of POIs and available-for-use power banks.
- Revenues from power bank sales increased by 83.2% to RMB31.6 million (US$4.9 million) for the second quarter of 2021 from RMB17.2 million in the same period of 2020. The increase was primarily attributable to the increase in the number of POIs, available-for-use power banks and customers that select to purchase the power bank.
- Revenues from other revenues, which mainly comprise of revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... from adverting services, increased by 111.1% to RMB9.2 million (US$1.4 million) for the second quarter of 2021 from RMB4.4 million in the same period of 2020. The increase was primarily attributable to the increase in users and advertisement efficiency.
- Cost of revenues increased by 44.8% to RMB138.7 million (US$21.5 million) for the second quarter of 2021 from RMB95.8 million in the same period last year. The increase of cost of revenues was primarily due to the increase in operational scale resulting in increases in maintenance cost, disposal cost and logistics expenses.
Research and development expenses increased by 25.3% to RMB20.5 million (US$3.2 million) for the second quarter of 2021 from RMB16.4 million in the same period last year. The increase was primarily due to the increase in personnel related expenses.
Sales and marketing expenses increased by 64.6% to RMB771.0 million (US$119.4 million) for the second quarter of 2021 from RMB468.4 million in the same period last year. The increase was primarily due to the increase in incentive fees paid to location partners and network partners from the increase in mobile device charging business revenues and the increase in personnel related expenses.
General and administrative expenses increased by 49.3% to RMB28.7 million (US$4.4 million) for the second quarter of 2021 from RMB19.2 million in the same period last year. The increase was primarily due to the increase in personnel related expenses.
Income from operations for the second quarter of 2021 was RMB18.8 million (US$2.9 million), compared to RMB39.2 million in the same period last year. Operating margin for the second quarter of 2021 was 1.9%, compared to 6.2% in the same period last year.
Net income for the second quarter of 2021 was RMB8.2 million (US$1.3 million), compared to RMB29.9 million in the same period last year. Adjusted net income for the second quarter of 2021 was RMB17.2 million (US$2.7 million), compared to RMB38.8 million in the same period last year. Net margin for the second quarter of 2021 was 0.8%, compared to 4.7% in the same period last year.
Net income attributable to ordinary shareholders for the second quarter of 2021 was RMB8.2 million (US$1.3 million), compared to a net loss attributable to ordinary shareholders of RMB641.4 million in the same period last year.
As of June 30, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.1 billion (US$476.1 million).
BUSINESS OUTLOOK
For the third quarter of 2021 ending September 30, 2021, the Company expects to generate RMB900 million to RMB930 million of revenues. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China.
EM Stock Technical Analysis
EM stock saw large players bottom feeding on September 29, 2021; however, the stock is not a good setup at the moment. It is better to wait for a pullback or consolidation to enter.
