Smart Share Global Ltd (EM) 2024 Q2 法說會逐字稿

Hello, and thank you for standing by for Energy Monster's Second Quarter 2024 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions)

您好，感謝您參加 Energy Monster 2024 年第二季財報電話會議。（操作員指示）今天的會議正在錄製。（操作員指示）

I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Hansen Shi.

現在，我想將會議交給今天電話會議的主持人、投資者關係總監 Hansen Shi。

Thank you. Welcome to our 2024 Second Quarter Earnings Conference Call. Joining me on the call today are Mars Cai, Energy Monster's Chairman and Chief Executive Officer; and Maria Xin, Chief Financial Officer. For today's agenda, management will discuss business updates, operation highlights, and financial performance for the second quarter of 2024.

謝謝。歡迎參加我們的 2024 年第二季財報電話會議。今天與我一起參加電話會議的還有 Energy Monster 董事長兼執行長 Mars Cai；以及財務長 Maria Xin。今天的議程是，管理層將討論 2024 年第二季的業務更新、營運亮點和財務表現。

Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call, as we will make forward-looking statements. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this call are in RMB.

在我們繼續之前，請參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出前瞻性陳述。此外，本次電話會議也討論了某些非公認會計準則財務指標。請參閱我們的收益報告，其中包含非 GAAP 指標與最直接可比較的 GAAP 指標的對帳。最後，請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

I would now like to turn the call over to our Chairman and Chief Executive Officer, Mars Cai, for the business and operation highlights.

現在，我想將電話轉給我們的董事長兼執行長蔡先生，以介紹業務和營運的亮點。

Thank you very much, Hansen. Good day, everyone. Welcome to our 2024 Second Quarter Earnings Call. I'm pleased to report that Energy Monster has demonstrated solid resilience in the second quarter, despite a softer-than-expected consumption environment here in China.

非常感謝，漢森。大家好。歡迎參加我們的 2024 年第二季財報電話會議。我很高興地報告，儘管中國的消費環境低於預期，但能源怪獸在第二季度表現出了強勁的韌性。

We managed to return to GAAP profitability, with net income reaching RMB9 million in the quarter. The return to GAAP profitability marks the strength and adaptability of our business model, especially given our overall transition towards the network partner model. This also marks the sixth consecutive quarters of non-GAAP profitability since the reopening from the pandemic in early 2023. This achievement reflects the effectiveness of our strategic initiatives and our ability to stay resilient, even amid challenging consumption conditions.

我們成功恢復了 GAAP 獲利能力，本季淨收入達到 900 萬元人民幣。恢復 GAAP 獲利標誌著我們業務模式的實力和適應性，特別是在我們全面轉型為網路合作夥伴模式的情況下。這也標誌著自 2023 年初疫情結束後，該公司連續第六個季度實現非公認會計準則獲利。這項成就體現了我們策略性舉措的有效性，以及即使在充滿挑戰的消費環境下我們保持韌性的能力。

Now in terms of the impact of the consumption power on our operation, our mobile device charging service GMV experienced a year-over-year decrease due to the softness of the consumption. Breaking down the quarter sequentially, the GMV decreased in April, increased in May, decreased in June, and then increased again in July on a month-on-month basis.

現在就消費力對我們營運的影響而言，由於消費疲軟，我們的行動裝置充電服務GMV年減。按季度來看，GMV 環比來看，4 月下降，5 月上升，6 月下降，7 月再次上升。

While the impact of holidays and a hotter-than-usual weather also served as factors in the oscillating the results, the primary season for the lower-than-usual demand is due to the weaker consumption power going into the summer holidays, which historically has been our peak season. This decline in consumer activity and consumer confidence going into the summer can be seen across the consumer sectors and especially in offline locations.

雖然假期和比平常更熱的天氣的影響也是導致業績波動的因素，但需求低於往常的主要原因是進入暑假後消費力較弱，而從歷史上看，暑假一直是我們的旺季。進入夏季，消費者活動和消費者信心的下降在各個消費領域，尤其是線下場所都可以看到。

In terms of the performance across different city tiers, we continue to observe trends that highlight the diversification of our mobile device charging network. Contribution from lower-tier cities continue to drive our network expansion, as our expansion into third- and lower-tier cities continues to bear fruit. POI count in third- and lower-tier cities increased by more than 20% year over year as of the end of the second quarter, as our network partner model continued to allow us to effectively branch into lower-tier cities.

就不同城市層級的表現而言，我們繼續觀察到突顯我們行動裝置充電網路多樣化的趨勢。來自低線城市的貢獻繼續推動我們的網路擴張，因為我們向三線及低線城市的擴張繼續取得成果。截至第二季末，三線及以下城市的 POI 數量同比增長超過 20%，因為我們的網路合作夥伴模式繼續使我們能夠有效地擴展到低線城市。

First-tier city POI count maintained a slight increase year over year, despite the reduction in our direct model. Our diverse POI categories also showcased varying levels of performances. The restaurants, shopping, beauty, and transportation segments displayed resilience, with quarter-over-quarter increases in terms of mobile device charging service GMV. Conversely, entertainment and hotel experienced quarter-over-quarter declines. While these sectors remain important to our portfolio, the fluctuations reflect the broader economic conditions and consumer behavior patterns in the current consumer climate.

儘管我們的直接模式有所減少，但一線城市 POI 數量同比仍保持小幅增長。我們多樣化的 POI 類別也展示了不同程度的表現。餐飲、購物、美妝和交通領域表現出韌性，行動裝置充電服務 GMV 環比成長。相反，娛樂和酒店業則是環比下滑。雖然這些產業對我們的投資組合仍然很重要，但波動反映了當前消費環境下更廣泛的經濟狀況和消費者行為模式。

Our expansion strategies has allowed us to continue to improve the network effect of our portion, which drives a self-reinforcing cycle between the growth of our POI count and user count. While the market conditions have slowed our pace of expansion, I'm proud to see that we continue to reach new operational milestones.

我們的擴張策略使我們能夠繼續改善我們所部分的網路效應，從而推動我們的 POI 數量和用戶數量的成長之間形成自我強化的循環。儘管市場狀況減緩了我們的擴張步伐，但我很自豪地看到我們繼續達到新的營運里程碑。

Our POI coverage now encompass a record high 1.7 -- 1.27 million POIs, highlighting our relentless drive to enhance service availability and user convenience across a wider geographic region. In parallel, our user base has grown alongside the growth in coverage, as we landed at over 417.1 million cumulative registered users as of the end of the second quarter, an increase of 12.8 million users.

我們的 POI 覆蓋範圍現已達到創紀錄的 170 萬至 127 萬個 POI，凸顯了我們不懈地致力於在更廣泛的地理區域內提高服務可用性和用戶便利性。同時，隨著覆蓋範圍的擴大，我們的用戶群也在擴大，截至第二季末，我們的累計註冊用戶超過 4.171 億，增加了 1,280 萬用戶。

Additionally, I would like to note that these operational milestones were achieved even during our strategic rebalancing between our operation models. We were able to expand the contribution of our network partner model while maintaining our core direct model portfolios. Although the shift in contribution between our business models have imposed short-term impact on our new POI expansion rate, we remain confident in our long-term prospects. We're already seeing the reduction in our direct model operations, not only lower our operational expenses, but also enhance the contribution from the higher-margin network partner model.

此外，我想指出的是，即使在我們的營運模式進行策略重新平衡期間，這些營運里程碑也是實現的。我們能夠在保持核心直接模型組合的同時擴大網路合作夥伴模型的貢獻。儘管我們業務模式之間貢獻的轉變對我們的新 POI 擴張率產生了短期影響，但我們對長期前景仍然充滿信心。我們已經看到直接模式營運的減少，這不僅降低了我們的營運費用，而且還增強了利潤率更高的網路合作夥伴模式的貢獻。

Financially, our cash and cash equivalents remain robust, providing us with the financial stability necessary to continue pursuing strategic initiatives and investing in future growth opportunities. Our new initiatives that leverages Energy Monster's existing capabilities will unlock new avenues for growth.

從財務角度來看，我們的現金和現金等價物依然強勁，為我們繼續推行策略舉措和投資未來成長機會提供了必要的財務穩定性。我們的新措施將利用 Energy Monster 的現有能力開闢新的成長途徑。

During the second quarter, other revenue outside of our core business grew by over 400% year over year, as new business segments begin to make a more meaningful contribution to our financials. These assets are essential as we aim to realize our full growth potential and consistently deliver sustained value to our shareholders.

第二季度，隨著新業務部門開始對我們的財務做出更有意義的貢獻，我們核心業務以外的其他收入年增超過 400%。這些資產對於我們實現全部成長潛力並持續為股東提供持續價值至關重要。

Now let me walk you through our key initiatives in coverage and efficiency. First is our strategies in coverage expansion, in light of the ongoing transition in our operational model. Our commitment to expanding our POI network is driven by the immense potential we see in untapped regions and categories throughout China. This expansion is not just about increasing numbers. It's about strategic growth that aligns with our long-term vision of building a mobile device charging infrastructure network capable of fulfilling users' needs anywhere and anytime.

現在讓我向您介紹我們在覆蓋範圍和效率方面的主要舉措。首先，鑑於我們營運模式的持續轉變，我們的覆蓋範圍擴大策略正在製定中。我們致力於擴大我們的 POI 網絡，因為我們看到中國各地尚未開發的地區和類別具有巨大的潛力。這種擴張不僅僅是為了增加數量。這是一項策略性成長，符合我們的長期願景，即建立一個能夠隨時隨地滿足用戶需求的行動裝置充電基礎設施網路。

We continue to take a balanced approach in our expansion efforts, leveraging both our network partner model and a direct model. The network partner model offers distinct advantages in providing comprehensive coverage across all regions, seamlessly complementing our direct model strengths. The direct model remains particularly effective in high-yield locations within higher-tier cities and key accounts.

我們在擴張過程中繼續採取平衡的方式，利用網路合作夥伴模式和直接模式。網路合作夥伴模式在提供覆蓋所有地區的全面覆蓋方面具有獨特的優勢，無縫補充了我們的直接模式優勢。直銷模式在高線城市的高收益地區和重點客戶中仍然特別有效。

A significant component of our expansion strategy is the ongoing transition to the network partner model. This transition is being executed with precision, balancing the rate of transition with quality and operational efficiency. By the end of the second quarter, 89.2% of our POI were operated under the network partner model, a substantial increase from 79.7% at the end of the first quarter and 62% at the end of the same time last year. The pace at which we have rebalanced our operations between the direct model and network partner model has exceeded our initial expectations, and will continue to take place going into the second half of 2024.

我們的擴張策略的一個重要組成部分是持續向網路合作夥伴模式轉型。這一轉變正在精確執行，以平衡轉變速度與品質和營運效率。截至第二季末，我們89.2%的POI是在網路合作夥伴模式下運作的，較一季末的79.7%和去年同期的62%有大幅提升。我們在直接模式和網路合作夥伴模式之間重新平衡營運的速度已經超出了我們最初的預期，並將持續到 2024 年下半年。

We also now have over 12,000 network partners, an increase of more than 1,000 since the end of first quarter, and an increase of around 3,700 year over year. This growth in network partners allow Energy Monster to develop a robust and dynamic distribution capability that drives our market penetration and service reach. The increase in network partner count has allowed us to broaden the reach of our operation as we expanded into more than 50 new county-level areas this quarter, for total coverage of more than 2,100 county-level cities. The improved reach of our service has also translated into access to new users, as we were able to attract 12.8 million new registered users during the second quarter of 2024.

我們現在擁有超過 12,000 個網路合作夥伴，自第一季末以來增加了 1,000 多個，年成長約 3,700 個。網路合作夥伴的成長使 Energy Monster 能夠開發強大且動態的分銷能力，從而推動我們的市場滲透和服務覆蓋範圍。網路合作夥伴數量的增加使我們的業務覆蓋範圍得以擴大，本季我們擴展到 50 多個新的縣級地區，總覆蓋範圍超過 2,100 個縣級城市。我們服務覆蓋範圍的擴大也轉化為對新用戶的獲取，因為我們在 2024 年第二季吸引了 1,280 萬新註冊用戶。

Our network partner support team continued to play a crucial role, providing hand-on guidance and direct support for everyday needs. Our network partner team continue to improve the standardization of our hardware, software, and operational support for our partners. This is crucial, as the number of network partners continue to grow. We have to provide more comprehensive support for all case scenarios for network partners with all levels of experience.

我們的網路合作夥伴支援團隊繼續發揮至關重要的作用，為日常需求提供實際指導和直接支援。我們的網路合作夥伴團隊不斷提高對合作夥伴的硬體、軟體和營運支援的標準化。這一點至關重要，因為網路合作夥伴的數量不斷增長。我們要為各個經驗層次的網路合作夥伴提供針對所有案例場景的更全面的支援。

These initiatives are designed to ensure that our partners not only feel supported, but also empowered to achieve their full potential, as we want every single one of them to be successful. The positive reception of the comprehensive support system to our partners is a strong validation of our approach, and we will continue to refine and enhance this support mechanism to further strengthen our network partner model. By being able to support our network partners to more quickly launch a profitable operation, we are enhancing Energy Monster's own competitive advantages.

這些措施旨在確保我們的合作夥伴不僅感受到支持，而且還能充分發揮他們的潛力，因為我們希望他們每個人都能取得成功。全面的支援系統得到合作夥伴的正面迴響是對我們做法的有力驗證，我們將繼續完善和增強這項支援機制，進一步加強我們的網路合作夥伴模式。透過支持我們的網路合作夥伴更快地開展獲利業務，我們正在增強 Energy Monster 本身的競爭優勢。

In addition to expanding our network, we continue to optimize low-efficiency and underperforming POIs under direct model. This process involves a rigorous review of each POI's performance based on current user traffic and other key metrics. By transitioning underperforming POIs to our network partner model, we can optimize our portfolio for maximum effectiveness and long-term profitability.

除了擴大我們的網路之外，我們還繼續優化直接模式下效率低下和表現不佳的POI。此過程涉及根據當前用戶流量和其他關鍵指標對每個 POI 的性能進行嚴格審查。透過將表現不佳的 POI 轉變為我們的網路合作夥伴模型，我們可以優化我們的投資組合，以實現最大效益和長期獲利能力。

During the second quarter, our net -- our direct model sales team continue to secure and extend partnerships with leading KA chains in hospitality, convenience stores, and restaurant industries. These high-profile partnerships are instrumental in boosting our brand visibility and driving our engagement, particularly in high-tier cities where brand influence is critical. For the remainder of 2024, in terms of our expansionary strategies, we will continue to emphasize network partner model as the core driver for growth here in China, while the direct model will focus on high-tier cities and major key accounts.

在第二季度，我們的網路—我們的直銷模式銷售團隊繼續與飯店、便利商店和餐飲業領先的 KA 連鎖店建立並擴大合作夥伴關係。這些備受矚目的合作關係有助於提升我們的品牌知名度並推動我們的參與度，特別是在品牌影響力至關重要的一線城市。2024 年剩餘時間，就我們的擴張策略而言，我們將繼續強調網路合作夥伴模式作為中國成長的核心驅動力，而直接模式將專注於高線城市和主要關鍵客戶。

Additionally, this quarter, we have proactively begun exploring opportunities in beyond China as a way to diversify our operations. We are seeing more and more countries outside of China having the demand for our service, and have the suitable infrastructure in place for mobile device charging service to take off. We believe our on-the-ground experience and hardware and software capabilities in China will extend into the international market. In the future, it will serve as one of our new drivers of growth and in the long run, serve as a way to diversify our operation geographically.

此外，本季度，我們已開始積極探索中國以外的機會，以實現業務多元化。我們看到中國以外越來越多的國家對我們的服務有需求，並且擁有適合行動裝置充電服務發展的基礎設施。我們相信，我們在中國的實地經驗和軟硬體能力將延伸到國際市場。未來，它將成為我們新的成長動力之一，從長遠來看，也將成為我們實現地理多元化經營的一種方式。

In terms of operational efficiency, we have made a significant stride in optimizing our contract structures under the direct model. During the second quarter, we continued to transition thousands of POIs from direct model to network partner model. This transition, while incurring some one-time costs, is a strategic move that will enhance the financial health for our company in the long run. By optimizing the structure of our own direct model POIs, we are ensuring that the direct model portfolio is aligned with our broader goals of efficiency and profitability. Also, notably, the reduction in direct model contribution is also directly translating into a smaller workforce of direct model BD personnel, driving the reduction of our operational expenses.

在營運效率方面，我們在優化直銷模式下的合約結構方面取得了重大進展。在第二季度，我們繼續將數千個 POI 從直接模式轉變為網路合作夥伴模式。此次轉型雖然會產生一些一次性成本，但從長遠來看，這是一項策略舉措，將增強我們公司的財務狀況。透過優化我們自己的直接模型 POI 結構，我們確保直接模型組合與我們更廣泛的效率和獲利目標保持一致。此外，值得注意的是，直接模型貢獻的減少也直接轉化為直接模型 BD 人員隊伍的減少，從而推動了我們的營運費用的降低。

On the other side of the press -- equation, the efficiency of our network partner operations remains stellar, with the network partner count growing by 41% year over year, while the size of our team has grown only at a fraction of that rate. The operational leverage highlights the scalability of our network partner model and our ability to drive both without proportional increase in operational overheads.

另一方面，我們的網路合作夥伴營運效率仍然很高，網路合作夥伴數量年增 41%，而我們團隊規模的成長速度僅為這一數字的一小部分。營運槓桿凸顯了我們的網路合作夥伴模式的可擴展性，以及我們在不相應增加營運開銷的情況下推動兩者的能力。

In addition to optimizing our existing operation, we are also committed to innovation. We continue to dedicate ourselves to the development of new series of cabinets and power banks with improved durability and end-user experience. This sustained and meticulous attention to every detail has led important improvement to our hardware before, and it will continue to do so going into the future. This progress is crucial, as our cabinets are placed across China in all types of locations and in all types of environmental conditions. Improved durability will help reduce the maintenance requirement for both the company and all of our partners, increasing the efficiency across all segments. We are confident that our initiatives in operational efficiency and innovation will unlock our growth and value potential in the foreseeable future.

除了優化現有營運之外，我們還致力於創新。我們持續致力於開發具有更高耐用性和最終用戶體驗的新型機櫃和行動電源系列。這種對每個細節的持續而細緻的關注已經為我們的硬體帶來了重要的改進，並且在未來也將繼續如此。這項進展至關重要，因為我們的櫥櫃遍布中國各地，處於各種地點和各種環境條件下。耐用性的提高將有助於減少公司和所有合作夥伴的維護需求，從而提高所有部門的效率。我們相信，我們在營運效率和創新方面的舉措將在可預見的未來釋放我們的成長和價值潛力。

In conclusion, the sustained profitability is a clear indicator of the robustness of our business model and the effectiveness of our strategic vision. The ongoing optimization of our direct model, coupled with expansion of network partner model, positions Energy Monster for continued growth and success.

總而言之，持續獲利能力清楚地表明了我們的商業模式的穩健性和策略願景的有效性。我們直接模式的持續優化，加上網路合作夥伴模式的擴展，使 Energy Monster 能夠持續成長並取得成功。

Although the second quarter and current trajectory of the third quarter show signs of weaker-than-expected consumption, we remain confident in the long-term recovery of consumer spending here in China. As we enter the second half of the of the year, we will continue to focus on strengthening our operational scale and efficiency, with a particular emphasis on expanding network partner coverage support, key account acquisition in our direct operations, and optimizing POI quality to enhance our margins.

儘管第二季和第三季的當前走勢顯示出消費弱於預期的跡象，但我們仍然對中國消費支出的長期復甦充滿信心。進入下半年，我們將繼續致力於加強營運規模和效率，特別強調擴大網路合作夥伴覆蓋支援、直接營運中的關鍵客戶獲取以及優化 POI 品質以提高利潤率。

We need to continue sharpening our competitive edge with the network partner model, which already delivers healthy unit economics, but has the potential to achieve even greater efficiencies and returns. To that end, we will continue to improve the standardization of our product and service for our network partners and provide enhanced support experiences to ensure their continued success. We will continue developing new hardware, including next-generation power banks and cabinet, designed to be more durable while at the same time of featuring reduced costs. These initiatives are designed to ensure that we remain at the forefront of innovation and further strengthen our competitive advantages and the network partner model.

我們需要繼續透過網路合作夥伴模式來增強我們的競爭優勢，該模式已經實現了健康的單位經濟效益，但有可能實現更高的效率和回報。為此，我們將繼續為網路合作夥伴提高產品和服務的標準化，並提供增強的支援體驗，以確保他們繼續取得成功。我們將繼續開發新的硬件，包括下一代行動電源和機櫃，設計得更耐用，同時降低成本。這些措施旨在確保我們始終處於創新前沿，並進一步加強我們的競爭優勢和網路合作夥伴模式。

In summary, we are optimistic about the future of the market in China and beyond. Energy Monster is well positioned for sustained development, as the transition between direct and network partner models will help refine the quality of our direct model portfolio, while network partner model continues to fuel growth. Once the transition is complete, our business model and financials will be even healthier.

綜上所述，我們對中國及全球市場的未來持樂觀態度。Energy Monster 已做好持續發展的準備，因為直接合作夥伴模式和網路合作夥伴模式之間的轉變將有助於提高我們直接合作夥伴模式組合的質量，而網路合作夥伴模式將繼續推動成長。一旦過渡完成，我們的商業模式和財務狀況將更加健康。

Our robust cash reserves and cash flow provide a solid foundation for driving continued growth and value creation for shareholders. We are also pleased to see that the seeds of new initiatives in renewable energy is starting to take form, while the expansion towards international market will be a new catalyst in the future. We believe all of these strategies and positioning will allow us to deliver improved value to Energy Monster shareholders in the future.

我們強勁的現金儲備和現金流為推動持續成長和為股東創造價值提供了堅實的基礎。我們也很高興地看到，再生能源領域的新措施正在開始形成，而向國際市場的擴張將成為未來新的催化劑。我們相信，所有這些策略和定位將使我們能夠在未來為 Energy Monster 股東帶來更高的價值。

Thank you very much. I will now turn the call to Maria, our Chief Financial Officer, for the financial details.

非常感謝。現在我將把電話轉給我們的財務長瑪麗亞，以了解財務細節。

Thank you, Mars. Now let me walk you through the second quarter 2024 financial results in greater detail. For the second quarter of 2024, revenues were RMB462.9 million, representing a 55.3% year-over-year decrease. Mobile device charging revenues, which consists of revenue generated from both direct and network partner models, were RMB410.6 million, and accounted for 88.7% of our total revenues for the quarter.

謝謝你，馬爾斯。現在讓我向您更詳細地介紹 2024 年第二季的財務表現。2024年第二季度，營收為人民幣4.629億元，年減55.3%。行動裝置充電收入（包括直接和網路合作夥伴模式產生的收入）為 4.106 億元，佔本季總收入的 88.7%。

Revenue generated from direct model, which comprised of mobile device charging service fee of RMB115.9 million and power bank sales of RMB2.2 million, were RMB118.1 million for the second quarter of 2024, down 60.7% year over year. The decrease was primarily due to the decrease in number of POIs operated under the direct model.

2024 年第二季直銷模式營收為 1.181 億元人民幣，年減 60.7%，其中包括行動裝置充電服務費 1.159 億元和行動電源銷售額 220 萬元。下降的主要原因是直接模式下營運的 POI 數量減少。

Revenues generated from network partner model, which comprised of mobile device charging solution fees, reached -- increased 14.3% year over year to RMB61.5 million, and power bank-type cabinet and other related sales reached -- decreased 65.6% year-over-year to RMB131 million (sic - see press release, "RMB231 million"), decreased by 59.7% to RMB292.5 million for the second quarter of 2024. The decrease was primarily due to the certain one-time adjustments in mobile device charging revenues for the second quarter of 2023 as a result of the change in the contractual arrangements with network partners.

網路合作夥伴模式的收入（包括行動裝置充電解決方案費用）年增14.3%至人民幣6,150萬億元，行動電源類機櫃及其他相關銷售額年減65.6%至人民幣1.31億元（原文如此 - 請參閱新聞稿「人民幣2.31億元」），2024年第二億元下降5.7%。下降的主要原因是與網路合作夥伴的合約安排發生變化，導致 2023 年第二季行動裝置充電收入進行了某些一次性調整。

Other revenues, which account for 11.3% of our total revenues, reached RMB52.3 million for the second quarter of 2024, up 453.7% year over year. The increase was primarily attributable to the new business initiatives.

其他收入占我們總營收的 11.3%，2024 年第二季達到 5,230 萬元，年增 453.7%。成長主要歸因於新的業務舉措。

Cost of revenues was down 67.2% year-over-year to RMB219.6 million for the second quarter of 2024. The decrease was primarily due to the one-time adjustment in mobile device charging cost of revenue for the second quarter of 2023 as a result of the change in contractual arrangements with network partners, and the decrease in depreciation is a result of the decrease in number of POIs operated under the direct model.

2024 年第二季營收成本年減 67.2% 至 2.196 億元。減少的主要原因是與網路合作夥伴的合約安排發生變化導致2023年第二季度行動裝置充電收入成本的一次性調整，而折舊減少是由於直接模式下營運的POI數量減少。

Gross profit was down 33.7% year-over-year to RMB243.3 million for the second quarter of 2024. Operating expenses for the second quarter of 2024 were RMB249.3 million, down 29.5% year-over-year. Excluding share-based compensation, non-GAAP operating expenses were RMB243.3 million, representing a year-over-year decrease of 30.1%.

2024年第二季毛利年減33.7%至人民幣2.433億元。2024年第二季營業費用為人民幣2.493億元，年減29.5%。不計股權報酬費用，非美國通用會計準則營業費用為人民幣2.433億元，較去年同期下降30.1%。

Research and development expenses for the second quarter of 2024 were RMB20.8 million, up 11.6% year-over-year. The decrease was primarily due to the increase in personnel-related expenses.

2024年第二季研發費用為人民幣2,080萬元，較去年同期成長11.6%。減少的主要原因是人員相關費用的增加。

Sales and marketing expenses for the second quarter of 2024 were RMB180.9 million, down 38.7% year over year. The decrease was primarily due to the decrease in incentive fees paid to location partners under the direct model, and the personnel-related expenses.

2024年第二季銷售及行銷費用為人民幣1.809億元，年減38.7%。下降的主要原因是直接模式下支付給當地合作夥伴的激勵費用減少，以及與人員相關的費用減少。

General and administrative expenses for the second quarter of 2024 was RMB39.5 million, up 26.8% year over year. The increase was primarily due to the increase in reserve for the doubtful accounts in relation to the increasing contribution of network partner model.

2024年第二季一般及行政費用為人民幣3,950萬元，較去年同期成長26.8%。此成長主要是由於網路合作夥伴模式貢獻增加導致的壞帳準備金增加。

Loss from operations was RMB6 million, and operating margin for the second quarter of 2024 was negative 1.3%. Net income was RMB9.2 million in the second quarter of 2024, compared to a net income of RMB24.5 million in the same period last year. Net margin for the second quarter of 2024 was 2%, compared to a net margin of 2.4% in the same period last year. Non-GAAP net income, which excludes share-based compensation expenses, was RMB15.2 million in the second quarter of 2024, compared to a non-GAAP net income of RMB13.1 million in the same period last year.

營業虧損為600萬元人民幣，2024年第二季營業利益率為-1.3%。2024年第二季淨收入為人民幣920萬元，去年同期淨收入為人民幣2,450萬元。2024 年第二季淨利率為 2%，去年同期淨利率為 2.4%。2024年第二季非美國通用會計準則淨利（不含股權激勵費用）為人民幣1,520萬元，去年同期非美國通用會計準則淨利為人民幣1,310萬元。

As of June 30, 2024, the company had cash and cash equivalents, restricted cash, and short-term investments of RMB3.2 billion. Cash flow from use in operations for the second quarter of 2024 was RMB6.7 million. Capital expenditures for the second quarter of 2024 were RMB1.4 million.

截至2024年6月30日，本公司擁有現金及現金等價物、受限現金及短期投資為人民幣32億元。2024年第二季經營活動現金流為人民幣670萬元。2024年第二季資本支出為140萬元人民幣。

Thank you for listening. We are now ready for your questions. Operator?

謝謝您的聆聽。我們現在已準備好回答您的問題。操作員？

(Operator Instructions) Vicky Wei, Citi.

（操作員指示）Vicky Wei，花旗銀行。

Would you please share a bit more color about the progress of the second half this year, both in terms of the power bank business and other initiatives? It seems like other revenue is growing quickly, but from a financial perspective, how should we think of margin outlook this year? Thank you.

您能否分享一下今年下半年在行動電源業務和其他舉措方面的進展？其他收入似乎成長迅速，但從財務角度來看，我們該如何看待今年的利潤前景？謝謝。

Thanks, Vicky. Yes, I will take the first part of the question. I think the market in the second quarter was pretty challenging. Like I mentioned earlier, results are oscillating with no definitive trend of rebound as of the end of the second quarter. This, again, I think is due to a number of factors that include the consumer confidence and somewhat extreme weather conditions. And their impact has wrinkled down to the overall consumer sector.

謝謝，維姬。是的，我將回答問題的第一部分。我認為第二季的市場相當具有挑戰性。正如我之前提到的，截至第二季末，業績波動較大，沒有明確的反彈趨勢。我認為，這是由一系列因素造成的，包括消費者信心和極端天氣條件。其影響已蔓延至整個消費領域。

There isn't too much visibility actually for the second half of 2024 in terms of our core business. The current numbers in July doesn't show much signs of a rebound in the peak third quarter season. But at the same time, our other initiative is trending up pretty quickly, and there is definitely potential it being a driver of growth in the longer term.

就我們的核心業務而言，2024 年下半年的前景實際上並不那麼明朗。7 月的當前數據並未顯示出第三季旺季出現反彈的跡象。但與此同時，我們的另一項舉措正在迅速發展，並且絕對有可能成為長期成長的動力。

Now, again, at the end of the day, I think we need to focus back into things that are in our own hand. Specifically, our focus on strengthening our operational scale and efficiency, especially in expanding network partner coverage and providing more comprehensive support, key account acquisition under the direct model, and optimizing POI quality to enhance our margins. At the same time, diversifying ourselves with initiatives in renewable energy and plans for the international market will serve as drivers for tomorrow. Overall, I'm confident that these strategies collectively positions Energy Monster for long-term success.

現在，再說一遍，歸根結底，我認為我們需要重新專注於我們自己能夠掌控的事情。具體來說，我們專注於加強營運規模和效率，特別是擴大網路合作夥伴覆蓋範圍並提供更全面的支援、直接模式下的關鍵客戶獲取以及優化POI品質以提高我們的利潤率。同時，我們在再生能源方面的舉措和國際市場的計劃將成為我們未來的驅動力。總體而言，我相信這些策略將使 Energy Monster 長期成功。

Yeah, I will now let Maria take the second part of the question.

是的，現在我請瑪麗亞回答問題的第二部分。

Hi, Vicky. Other revenue, mainly from our initiatives in renewable energy, have been growing quickly in this quarter. It's a sector with a large market opportunity as well as clear business model. As of July, this new initiative is already at a breakeven point with a small amount of profit.

你好，Vicky。本季其他收入（主要來自我們在再生能源方面的舉措）增長迅速。這是一個擁有巨大市場機會和清晰商業模式的行業。截至 7 月份，這項新舉措已達到收支平衡，並獲得了少量利潤。

The margin going forward will really depend on the scale, but the industry standard for this model is around 8% to 10% gross margin and 3% to 5% net margins. It will take a bit of time to reach that margin level, but we are definitely excited about that.

未來的利潤率實際上取決於規模，但這種模式的行業標準是毛利率約為 8% 至 10%，淨利率約為 3% 至 5%。達到該利潤水平需要一些時間，但我們對此感到非常興奮。

Charlie Chen, China Renaissance.

Charlie Chen，中華復興。

It seems like we are executing the transition pretty quickly, so I just want to understand what would be the equilibrium for the direct and the partner model in the near future. And also, just a quick final question. How exactly do you work with KAs in the future if most of your regions are under the network partner model? Thank you.

看起來我們正在快速地執行轉變，所以我只是想了解在不久的將來直接模式和合作夥伴模式的平衡會是什麼。另外，最後一個簡短的問題。如果你們大多數的地區都採用網路合作夥伴模式，那麼未來你們具體如何與 KA 合作？謝謝。

Thanks, Charlie. Great questions. The vast majority of our POIs and GMV will be from the network partner model. That trend is undeniable. I think the balance would be around 5% to 10% of GMV by the end of this year, if I had to give a rough estimate. But this number really depends on a number of effects, things like the efficiency of our direct model portfolio, and the team all contribute to the end result. What is clear is currently, that the economics of network partner model is still superior to that of the direct one. And thus, we will continue forward with the rebalancing going into the second half of this year.

謝謝，查理。很好的問題。我們的絕大部分 POI 和 GMV 將來自網路合作夥伴模式。這一趨勢是不可否認的。如果我必須給出一個粗略的估計的話，我認為到今年年底，餘額將達到 GMV 的 5% 到 10% 左右。但這個數字其實取決於許多因素，例如我們直接模型組合的效率以及團隊對最終結果的貢獻。目前可以肯定的是，網路合作夥伴模式的經濟效益仍優於直接模式。因此，我們將在今年下半年繼續推動再平衡工作。

As for your question on KA, that's something we definitely thought through before we started this transition. The KA team currently closely work with the network partner team to continue expanding our penetration of key accounts. For certain new KAs, our KA team first secures the collaboration with a major brand, and then our network partner team finds a suitable network partner with extensive experience and proven track record of maintenance capability to jointly work with the KA. This allows us to continue expanding our KA footprint, either in lower-tier cities or other regions where our direct model doesn't appear that.

至於您關於 KA 的問題，這是我們在開始這一轉變之前肯定考慮過的事情。KA團隊目前與網路合作夥伴團隊密切合作，繼續擴大我們對重點客戶的滲透。對於某些新的KA，我們的KA團隊首先會與主要品牌商達成合作，然後我們的網路合作夥伴團隊會找到具有豐富經驗和良好維護能力的合適網路合作夥伴，與KA共同合作。這使我們能夠繼續擴大我們的 KA 覆蓋​​範圍，無論是在低線城市還是在直銷模式尚未出現的其他地區。

In terms of our service and maintenance commitment to the KAs, the marketing campaigns between their brand and ours, and the tailored cabinets and power banks, nothing has changed. All of the bells and whistles that comes with working with Energy Monster will remain the same for our current and future KA partners. Given that, we remain very confident in our value proposition to our partners and ability to continue onboarding leading KAs in our mobile device network. Thank you very much. Hope that answers your question.

就我們對 KA 的服務和維護承諾、他們的品牌與我們之間的行銷活動以及客製化的機櫃和行動電源而言，一切都沒有改變。對於我們目前和未來的 KA 合作夥伴來說，與 Energy Monster 合作所帶來的所有便利性都將保持不變。有鑑於此，我們對我們的合作夥伴的價值主張以及繼續在我們的行動裝置網路中引入領先KA的能力仍然非常有信心。非常感謝。希望這能回答你的問題。

Thank you. We are now approaching the end of the conference call. I will now turn the call over to Energy Monster CFO Maria Xin for closing remarks.

謝謝。我們現在即將結束電話會議。現在，我將把電話轉給 Energy Monster 財務長 Maria Xin 最後發言。

Once again, thank you for joining us today. Please don't hesitate to contact us if you have any further questions. Thank you for your continued support, and we look forward to speaking with you in the coming months. Thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時與我們聯絡。感謝您一直以來的支持，我們期待在未來幾個月與您交談。謝謝。

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

感謝大家參加今天的會議。演講到此結束。您現在可以斷開連線。再會。