From Smart Share Global's financial report, what is the "second half" of shared power banks like, and how much room for imagination is there beyond stability?

When an emerging industry transitions from a period of rapid growth to a mature and stable phase, the core logic of market competition typically shifts from scale-driven "land grab" development to "refined cultivation" driven by profitability. At this point, leading players will also place greater emphasis on operational optimization and model innovation. After all, in the business world, healthy operations and sustainable growth are eternal pursuits. Take the shared power bank industry as an example. With the maturation of business models and the leading tier, the remaining participants in the market urgently need to find new paradigms for sustainable development. Zhitong Finance noted that recently, Smart Share Global (EM.US) disclosed its financial report for the third quarter of 2024. The report showed that during Q3 of last year, the company achieved revenue of 491 million yuan (RMB, the same below), maintaining a steady growth pace. Meanwhile, against the backdrop of corporate strategies placing more emphasis on development quality, Smart Share Global reported a Non-GAAP adjusted net profit of 9.2 million yuan for the quarter, maintaining Non-GAAP profitability for seven consecutive quarters; the GAAP net profit was 4.2 million yuan. Thanks to a sustainable financial model, Smart Share Global's cash reserves remain ample. As of the end of the third quarter, the company's cash and cash equivalents, short-term investments, and restricted cash amounted to 3 billion yuan. On the operational front, Smart Share Global is actively promoting model adjustments and business expansion overseas. By September 30 of last year, the proportion of agency points for Smart Share Global had risen to 96.8%. In terms of effectiveness, the development of the agency model has positively impacted Smart Share Global's expansion potential. In the third quarter, the company's mobile charging business generated over 1.2 billion yuan in revenue. By the end of the period, Smart Share Global had 1.274 million points of interest (POI) nationwide, with the number of online power banks reaching 9.5 million; throughout Q3, the platform added 13.1 million registered users, bringing the total to 430 million. For technology consumer companies like Smart Share Global, deepening the technological moat and providing high-quality supply to the market is undoubtedly key to maintaining competitiveness. Recently, Smart Share Global launched the fourth generation of 8-slot and 12-slot Pro version cabinets. According to reports, the new generation of cabinets innovatively introduced a "wild mode," allowing power banks to supply power back to the cabinets; it also added features such as Bluetooth rental and three-color backlighting, and enhanced late-night endurance. Going overseas will likely also be one of the decisive factors for Smart Share Global's future direction. Taking the Southeast Asian market as an example, from a demand perspective, Southeast Asia not only has a demographic dividend but is also a major destination for Chinese tourists. Currently, the penetration rate of shared power banks in this region still has significant room for improvement compared to the Chinese market. Since launching overseas recruitment last year, based on its domestic market operational experience, Smart Share Global has been accelerating the implementation of its overseas market business. Earlier this year, Smart Share Global officially entered the Malaysian market. It is understood that the team that "fired the first shot" for Smart Share Global in Malaysia is one of its earliest domestic agents, and the subsequent cooperation between the two parties in a foreign land is worth continuous observation to see what kind of chemical reaction will occur. As the shared power bank industry enters the "second half," and the competitive landscape stabilizes, companies like Smart Share Global can devote more energy to technological innovation and overseas expansion, which can bring long-term returns. Moving forward, how Smart Share Global, having nearly completed its model adjustment and lightened its load, will address the "growing pains" of the overseas market and carve out a new growth path will likely serve as a valuable case study