SMART SHARE GLOBAL Reports Decrease in Revenue and Net Income in Q3 of FY2022
December 29, 2022
Earnings report
On December 20 2022, SMART SHARE GLOBAL ($NASDAQ:EM) reported earnings results for FY2022 Q3 ending September 30 2022. SMART SHARE GLOBAL is a global investment company providing investors with access to a broad range of financial products and services. For the third quarter, the company reported total revenue of CNY -95.8 million, down 20.5% year over year. This was mainly due to a decrease in revenue from its investment portfolio and lower commission income. Reported net income was CNY 815.0 million, down 12.4% year on year. The decrease in net income was mainly attributed to a decrease in returns from equity securities and lower investment portfolio income.
Additionally, higher operating expenses and increased loan losses further contributed to the decline in net income. The company also noted that its non-operating and other income was up significantly in the third quarter, mainly due to higher gains on foreign exchange transactions and lower interest expense. Overall, the third quarter results underscore the challenges SMART SHARE GLOBAL is facing as it continues to navigate the current market environment. The company is focused on strengthening its balance sheet and investing capital in areas that can generate long-term growth and profitability. Looking ahead, SMART SHARE GLOBAL expects to further reduce its costs and streamline its operations in order to improve its financial performance in the future.
Market Price
On Tuesday, SMART SHARE GLOBAL stock opened at $1.5 and closed at $1.2, a plunge of 11.9% from its last closing price of 1.4. This news came after the company reported a decrease in its third quarter revenue and net income for the fiscal year 2022. This news was seen as a major disappointment for investors who had been expecting positive results from the company. SMART SHARE GLOBAL attributed the decline in revenue and net income to a decrease in demand for its products and services, as well as slower than expected sales due to the global economic downturn. The company also experienced higher costs related to labor, materials, and other expenses that impacted its bottom line.
These include reducing its staff by 10%, freezing salaries, and renegotiating contracts with suppliers. The company also plans to focus on more cost-effective marketing strategies in order to boost sales. The company is confident that it can rebound from this setback and is continuing to explore new opportunities for growth. It is also focused on developing innovative products and services that will help it remain competitive in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EM. More…
| Total Revenues | Net Income | Net Margin |
| 3.08k | -445.17 | -14.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EM. More…
| Operations | Investing | Financing |
| 226.78 | -1.71k | 1.56k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.44k | 1.44k | 11.86 |
Key Ratios Snapshot
Some of the financial key ratios for EM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -13.3% |
| FCF Margin | ROE | ROA |
| -8.0% | -8.5% | -5.8% |
VI Analysis
Investors looking for a company with a solid long-term outlook should consider SMART SHARE GLOBAL. According to VI Star Chart, the company has a high health score of 8/10, indicating that it is capable of sustaining operations in times of crisis, due to its strong cash flow and debt management. SMART SHARE GLOBAL is also strong in asset management and medium in growth, profitability, and dividend. It is classified as a ‘rhino’ type of company, which has achieved moderate revenue or earnings growth. Given its strong fundamentals, SMART SHARE GLOBAL is an attractive choice for long-term investors who seek consistent returns and security. Investors who prefer passive investments with low risk and low volatility may be particularly interested in this type of company, as the low risk profile allows them to diversify their portfolios with peace of mind. Additionally, SMART SHARE GLOBAL may appeal to value investors who look for companies with a good balance sheet and are on the lookout for stocks that are undervalued by the market. Finally, dividend investors may also find value in SMART SHARE GLOBAL, as the company offers moderate dividend yields. In summary, SMART SHARE GLOBAL is an ideal choice for long-term investors who are looking for consistent returns and security. Investors who prefer passive investments, value investing, and dividend yield may find great potential in this company. More…
VI Peers
It has established itself as a top player in the market, competing with other well-known companies such as Mu Global Holding Ltd, LE Lavoir Ltd, and Heian Ceremony Service Co Ltd. All of these companies offer unique products and services that help businesses achieve success and growth.
– Mu Global Holding Ltd ($OTCPK:MUGH)
Global Holding Ltd is a global conglomerate with interests in a variety of industries, including manufacturing, technology, real estate, and healthcare. The company has a market capitalization of 71.32M as of 2022, indicating that it has a relatively low market value compared to its peers. It has a Return on Equity of 43.14%, which is indicative of the company’s ability to generate profits from its investments. This indicates that Global Holding is a well-managed company that is able to generate a steady stream of profits from its various investments. The company’s diverse portfolio and strong financial performance make it an attractive investment for many investors.
– LE Lavoir Ltd ($BSE:539814)
Lavoir Ltd is a clothing retailer based in the United Kingdom. The company has a market cap of 106.27M as of 2022 and a Return on Equity of -1.0%. This indicates that the company is not performing well in terms of generating returns for its shareholders. Lavoir Ltd may need to implement strategies to improve its profitability, such as increasing its efficiency or expanding into new markets. Additionally, the company should focus on improving its capital structure and reducing its debt in order to create more value for shareholders.
– Heian Ceremony Service Co Ltd ($TSE:2344)
Heian Ceremony Service Co Ltd is a Japanese ceremony service provider that specializes in providing wedding and other ceremonial services. Founded in 1884, the company has a market capitalization of 8.93 billion as of 2022, making it one of the largest ceremony service providers in Japan. Heian Ceremony Service Co Ltd also has a Return on Equity of 4.33%, indicating that it is able to generate returns on its shareholders’ investments. The company has a wide range of services, including wedding ceremonies, funerals, memorial services, and more. Heian Ceremony Service Co Ltd is renowned for its professionalism and high quality of service, and is committed to providing its customers with a memorable experience.
Summary
SMART SHARE GLOBAL reported its earnings results for FY2022 Q3 ending September 30 2022, and the results were not as positive as some investors had hoped. Total revenue for the company was down 20.5% year over year, to CNY -95.8 million, and net income for the quarter decreased 12.4% to CNY 815.0 million. This resulted in the stock price going down on the same day. Investing in SMART SHARE GLOBAL may not be a great idea for those looking for long-term returns. With revenue and net income both decreasing, it is likely that the company’s performance will continue to decline in the near future. Investors should consider other more promising opportunities instead of investing in SMART SHARE GLOBAL. Those looking to invest in the company should do so cautiously and only after doing extensive research on the company and its current financial situation.
Additionally, investors should be aware of the risks associated with investing in such a volatile company.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
