Monster Charging (EM.US) Announces Results for the First Quarter of 2024: Focus on Healthy Management and Continued Growth

Zhitongcaijing · 06/03 11:41

The Zhitong Finance App learned that on June 3, Beijing time, the technology consumer company Monster Charging (EM.US) announced an unaudited financial report for the first quarter of 2024.

According to financial reports, Monster Charging's revenue for the first quarter was 397.2 million yuan, and the order volume reached 147 million yuan. Under Non-Gaap (Non-Gaap), Monster Charging's adjusted net profit was RMB 3.8 million.

At the main business level, starting from the second quarter of 2023, Monster Charging Agency business revenue recognition will be adjusted from full amount to net amount. Monster Charging's mobile charging service revenue in the first quarter was 378.1 million yuan. While maintaining “healthy management,” the business scale continued to expand, and maintained growth in core operating data such as number of users and number of points, showing the resilience and market potential of the business.

In 2024, Monster Charging proposed the strategic direction of “healthy management and continuous growth”, further promoted the collaborative development of the “direct management+agency” dual model, and continued to reach new heights in terms of business scale and service coverage. As of March 31, 2024, the total number of registered users of Monster Charging has exceeded 400 million. In the first quarter, 12.8 million registered users were added, 9.4 million power banks were shared online, and there were 1.245,000 POI (points) nationwide. The proportion of agent points increased from 72.8% at the end of 2023 to 79.7%.

According to the “2024 China Shared Power Bank Industry Research Report” released by iResearch, the shared power bank industry is recovering well. The scale of the industry rose steadily to 12.6 billion yuan in 2023, and Monster Charging continued its leading edge in the industry with a 36% GMV share. In a situation where users' dependence on mobile phones is increasing, electricity consumption continues to grow, and there are no breakthroughs or innovations in battery technology, iResearch expects the industry to maintain an average annual growth rate of about 20% in the future, and the scale is expected to exceed 40 billion yuan by 2029.

Cai Guangyuan, CEO of Monster Charging, said, “Although the company's business was affected by the overall external consumption environment this quarter, the performance was stable. However, we have made new progress in operation. Not only has the number of charging service network points reached a new high, but the cumulative number of registered users has exceeded 400 million this quarter. While maintaining the core position under the direct management model, we strategically adjust resources to develop an agency model, which will bring significant long-term economic benefits to the company. We remain confident in the future of the domestic mobile charging service market and industry, and will continue to create sustainable value for users, merchants, agents, investors, etc.”

It is worth noting that in order to enhance the experience of agents and consumers, Monster Charging has launched new hardware products such as cabinets and power banks, which have stronger competitiveness and cost performance to better meet the flexible market environment and diverse customer needs. Monster Charging relies on a huge agency network and uses marketing nodes such as Lunar New Year promotions and New Year specials as an opportunity to quickly bring new products to market. As next-generation products are put into use on a large scale, Monster Charging will continue to optimize operating leverage and improve asset efficiency, thereby continuing to reduce operating costs and increase efficiency.

Xu Peifeng, president of Monster Charging, said, “We are steadily adjusting the economic models of direct management and agency models to not only be efficient, but also promote agent development with high quality. In addition, we will continue to optimize some inefficient points to improve the operational efficiency of the direct management model. Faced with the challenges brought about by the external environment, we have maintained steady growth in scale by expanding our high-quality customers and expanding our agency network. We will take full advantage of the collaborative development of the two models to continuously improve service coverage and profitability.”

Monster Charging CFO Xin Yi said, “Although the adjustment period of the operating model will cause one-time costs, it is important and positive for the company to maintain long-term financial health. In the face of a complex market environment, by planning cash usage plans, we guarantee the flexible development of our business, explore new growth opportunities, and provide long-term value to shareholders. We have shown confidence in the company's potential for future value growth through the share repurchase and dividend payment plan announced a few days ago.”

In terms of shareholder returns, Monster Charging announced its first dividend payment plan since listing during the reporting period to distribute special cash dividends to shareholders registered after the market closed on May 31, EST. The amount of dividends paid is $0.015 per common share, or $0.03 per ADS (American Depositary Shares). The total cash dividend amount paid is approximately $8 million, which is paid out of the company's surplus cash.

As of the end of the first quarter of 2024, Monster Charging's cash and cash equivalents, short-term investments, and restricted cash was RMB 3.3 billion. Sufficient cash reserves supported Monster Charging to continue to fulfill its promises to shareholders, and also provided a guarantee for it to drive continued business growth, demonstrating the company's long-term growth and investment value.