On June 3rd Beijing time, technology consumer company Monster Charging (NASDAQ: EM) released its unaudited financial report for the first quarter of 2024.
According to the financial report, the revenue of Monster Charging in the first quarter was 397.2 million yuan, with an order volume of 147 million yuan. Under non GAAP accounting standards, the adjusted net profit of Monster Charging is 3.8 million RMB.
At the main business level, starting from the second quarter of 2023, the recognition of revenue from monster charging agency business 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, maintaining a "healthy operation" while continuously expanding its business scale. It maintained growth in core operational data such as user numbers and point numbers, demonstrating its business resilience and market potential.
In 2024, Monster Charging proposed a strategic direction of "healthy operation and sustainable growth", deeply promoting the coordinated development of the "direct sales+agency" dual model, and continuously setting new highs in business scale and service coverage. As of March 31, 2024, the cumulative registered users of Monster Charging have exceeded 400 million, with 12.8 million new registered users in the first quarter and 9.4 million online shared power banks. There are a total of 1.245 million POIs (points) nationwide, and the proportion of proxy points has 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 Consulting, the shared power bank industry has shown a good recovery momentum. In 2023, the industry scale has steadily increased to 12.6 billion yuan, and Monster Charging continues its leading advantage in the industry with a GMV of 36%. In the context of increasing user dependence on mobile phones, increasing power consumption, and no breakthrough innovation in battery technology, iResearch predicts that the industry is expected to maintain an average annual growth rate of around 20% in the future, and is expected to exceed 40 billion yuan in scale by 2029.
Monster Charging CEO Cai Guangyuan said, "Although the company's business has been affected by the overall external consumption environment and its performance has remained stable this quarter, we have still made new progress in operations. 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 in this quarter. While maintaining the core points under the direct operation model, we have strategically adjusted our resources to develop towards the agency model, which will bring long-term significant economic benefits to the company. We still have confidence in the domestic mobile charging service market and the future of the industry, and will continue to create sustainable value for users, merchants, agents, investors, and others."
It is worth noting that in order to enhance the experience of agents and consumers, Monster Charging has launched new hardware products such as cabinet machines and power banks, which have stronger competitiveness and cost-effectiveness to better meet the flexible market environment and diverse customer needs. Monster Charging relies on a vast network of agents to quickly push new products to the market through marketing opportunities such as the Spring Festival promotion and New Year discounts. With the large-scale deployment of new generation products, Monster Charging will continue to optimize operational leverage, improve asset efficiency, and ultimately drive continuous cost reduction and efficiency improvement in operations.
Monster Charging President Xu Peifeng said, "We are steadily adjusting the economic models of direct sales and agency models, not only to be efficient, but also to promote agency development with high quality. In addition, we will continue to optimize some inefficient points and improve the operational efficiency of the direct sales model. Faced with the challenges brought by the external environment, we have maintained steady growth in scale by expanding high-quality customers and agent networks. We will fully utilize the advantages of the coordinated development of the two models, continuously improve service coverage and profitability."
Monster Charging CFO Xin Yi said, "During the adjustment period of the operating model, although it may result in one-time costs, it is of great and positive significance for the company to maintain long-term financial health. Faced with the complex market environment, by planning cash usage plans, we can maintain flexible business development, explore new growth opportunities, and provide long-term value to shareholders. Through the recently announced stock repurchase and dividend plans, we have demonstrated confidence in the company's potential for future value growth."
In terms of shareholder returns, Monster Charging announced its first dividend payout plan since going public during the reporting period, distributing special cash dividends to shareholders registered after the market closed on May 31 Eastern Time. The dividend amount is $0.015 per ordinary share, which is $0.03 per ADS (American Depositary Stock). The total amount of cash dividends distributed is approximately $8 million, which is paid from the company's surplus cash.
As of the end of the first quarter of 2024, the cash and cash equivalents, short-term investments, and restricted cash of Monster Charging amounted to RMB 3.3 billion. Adequate cash reserves support Monster Charging to continue fulfilling its commitments to shareholders and provide guarantees for its continued business growth, demonstrating the company's long-term growth potential and investment value.