0001104659-23-052057 | 20-F | XBRL Viewer

Organization and nature of operations

1. Organization and nature of operations

(a) Principal activities

Smart Share Global Limited (the “Company” or “Smart Share”) was incorporated under the law of Cayman Islands (“Cayman”) as a limited liability company on May 17, 2017. The Company, its subsidiaries and consolidated VIEs (collectively referred to as the “Group”) engage primarily in the mobile device charging business in the People’s Republic of China (“the PRC”).

As of December 31, 2022, the Company’s principal subsidiaries and the consolidated VIEs are as follows:


			Equity
	Place of	Date of	economic		Principal
Name of subsidiaries and consolidated VIEs	incorporation	incorporation	interest held		activities
Subsidiaries:
Smart Share International Limited	Hong Kong, China	August 15,2017	100	%	Investment holding
Zhixiang Technology (Shanghai) Co., Ltd. (“Zhixiang WFOE”)	PRC	June 23,2017	100	%	Mobile device charging business
Zhixiang Investment Co., Ltd. (“Zhixiang Investment WFOE”)	PRC	February 26,2021	100	%	Investment holding
Zhitong (Xinyi) Technology Co., Ltd.	PRC	March 22, 2021	100	%	Mobile device charging business
Zhilang Technology (Tianjin) Co., Ltd.	PRC	April 1,2021	100	%	Mobile device charging business
Zhisheng Technology (Tianjin) Co., Ltd.	PRC	June, 2021	100	%	Research and development function
Consolidated VIEs
Shanghai Zhixiang Technology Co., Ltd. (“Shanghai Zhixiang”)	PRC	April 28,2017	100	%	Research and development function

(b) Consolidated variable interest entities

Smart Share CGY and Smart Share Brothers

In May 2017, Smart Share CGY and Smart Share Brothers were established by one of the Company’s founders, to facilitate the adoption of the Company’s restricted share units (“RSUs”) scheme for the Company’s employees and external consultants. Upon the inception of Smart Share CGY and Smart Share Brothers, the Company entered into the management agreements with Smart Share CGY, Smart Share Brothers and their shareholder. Pursuant to the management agreements, the shareholder of Smart Share CGY and Smart Share Brothers irrevocably appoints the Company or its designated person to exercise the shareholder and director rights in Smart Share CGY and Smart Share Brothers; the shareholder of Smart Share CGY and Smart Share Brothers shall not transfer or pledge his shares in Smart Share CGY and Smart Share Brothers without the consent from the Company; the RSUs scheme of Smart Share CGY and Smart Share Brothers shall be administered by the board of directors of the Company; and all profit and loss of Smart Share CGY and Smart Share Brothers shall be entitled to and assumed by the Company. The management agreements shall be effective until the Company, Smart Share CGY, Smart Share Brothers and their shareholder mutually agree to terminate.

Accordingly, the management agreements provide the Company with the power to direct the activities that most significantly impact Smart Share CGY and Smart Share Brothers’ economic performance and the obligation to absorb the risks and receive the rewards normally associated with the ownership of Smart Share CGY and Smart Share Brothers. Therefore, management concluded that Smart Share CGY and Smart Share Brothers are consolidated VIEs of the Company, of which the Company is the ultimate primary beneficiary. As such, the Group consolidated the financial statements of Smart Share CGY and Smart Share Brothers upon their inception.

In connection with the Company’s adoption of 2021 Share Incentive Plan (Note 13), on April 12, 2021, Smart Share CGY and Smart Share Brothers were dissolved and the aforementioned management agreements were terminated accordingly. For the years ended December 31, 2020 and 2021, Smart Share CGY and Smart Share Brothers did not have any operation other than adopting the RSUs scheme. Refer to Note 13(b) “Smart Share CGY and Smart Share Brothers’ RSUs scheme” for details.

Shanghai Zhixiang

The Company obtained control over Shanghai Zhixiang by entering into a series of contractual arrangements with Shanghai Zhixiang and its shareholders (the “VIE Contractual Arrangements”). Shanghai Zhixiang is used to facilitate the Group’s research and development activities for the Group’s main business, as well as the innovation of certain new business which is under development where foreign ownership may be restricted. The principal terms of the agreements entered into amongst Shanghai Zhixiang, its respective shareholders (the “Nominee Shareholders”) and the Company are further described below:

Exclusive Business Cooperation Agreement

Pursuant to the business cooperation agreement entered between Zhixiang WFOE and Shanghai Zhixiang, Shanghai Zhixiang appointed Zhixiang WFOE as its exclusive service provider providing full business support, technology services and consultancy services, including but not limited to licensing of intellectual property rights, technology support, system maintenance, personnel training, equipment or office leasing and marketing consultancy. In exchange, Shanghai Zhixiang pays consultancy and service fees to Zhixiang WFOE, the price of which is mutually agreed in each quarterly bill according to the amount and commercial value of the services provided to Shanghai Zhixiang. Zhixiang WFOE owns the exclusive intellectual property rights created as a result of the performance of this agreement. The term of this agreement remains valid for a period of 10 years and can be extended at Zhixiang WFOE’s discretion. Zhixiang WFOE may terminate the agreement unilaterally with a 30-day prior written notice. For the years ended December 31, 2020, 2021 and 2022, the consultancy and service fees charged by Zhixiang WFOE were RMB276,578, nil and nil, respectively.

Equity Interest Pledge Agreement

Pursuant to the equity interest pledge agreement, the Nominee Shareholders have pledged 100% equity interests in Shanghai Zhixiang to Zhixiang WFOE as security for repayment obligations of any and all due payments, including but not limited to the consultancy and service fees due from Shanghai Zhixiang to Zhixiang WFOE under the exclusive business cooperation agreement. During the term of the equity interest pledge agreement, the Nominee Shareholders undertake that, without the prior written consent of Zhixiang WFOE, they will not transfer, or create or allow any encumbrance on the pledged equity interests, except as otherwise provided in the exclusive option agreement. If any of the specified events of default occurs, Zhixiang WFOE will have the right to request repayment of all due and payable payments, and/or transfer, auction or sale of all or part of the pledged equity interests in Shanghai Zhixiang and will have priority in receiving the proceeds from such disposal. Zhixiang WFOE may transfer all or any of its rights and obligations under the exclusive business cooperation agreement to its designee(s) at any time. The term of the agreement is 10 years and shall be extended if the term of the exclusive business cooperation agreement is extended. Since the initial paid-in capital of Shanghai Zhixiang was contributed by the Nominee Shareholders without being financed by the Company and the equity interest pledge agreement did not transfer the legal title of the pledged equity interest to the Company under PRC law, the Nominee Shareholders continue to have legal ownership of the paid-in capital of Shanghai Zhixiang. Accordingly, the initial paid-in capital of Shanghai Zhixiang amounted to RMB1,000 was recorded as other non-current liabilities to the Nominee Shareholders of Shanghai Zhixiang.

Exclusive Option Agreement

Pursuant to the exclusive option agreement, the Nominee Shareholders have irrevocably granted Zhixiang WFOE, to the extent permitted by PRC law, an irrevocable and exclusive right to purchase, or designate a third-party to purchase, all or any part of their equity interests at any time or from time to time at a purchase price equal to the lowest price permissible by PRC law. The option term remains valid for a period of 10 years and can be extended at Zhixiang WFOE’s discretion. Shanghai Zhixiang and their Nominee Shareholders have agreed that without prior written consent of the Zhixiang WFOE, their respective Nominee Shareholders cannot sell, transfer, pledge or dispose their equity interests, and Shanghai Zhixiang cannot sell, transfer, pledge or dispose, but not limited to, the equity interests and significant businesses. Also as agreed, Shanghai Zhixiang cannot change capitalization structure of Shanghai Zhixiang and cannot enter into any loan or investment agreements.

Proxy Agreement

Pursuant to the irrevocable proxy agreement, each of the Nominee Shareholders irrevocably authorized Zhixiang WFOE to act on their respective behalf as sole proxy attorney, to the extent permitted by law, to exercise all rights concerning all the equity interest held by each of them in Shanghai Zhixiang, including but not limited to proposing to convene or attend shareholder meetings, attending shareholder meetings, signing resolutions and minutes of such meetings, exercising all the rights as shareholders in such meeting (including but not limited to voting rights, nomination rights and appointment rights), the right to receive dividends and the right to sell, transfer, pledge or dispose of all the equity held in part or in whole, and exercising all other rights as shareholders allowable under PRC law and the memorandum and articles of our company.

Exclusive Assets Subscription Agreement

Pursuant to the exclusive assets subscription agreement, Shanghai Zhixiang has irrevocably granted Zhixiang WFOE, to the extent permitted by PRC law, an irrevocable and exclusive right to purchase, or designate a third-party to purchase, all the intellectual property rights and all the other assets currently owned or to be owned by Shanghai Zhixiang at any time at a purchase price equal to the lowest price permissible by PRC law. Shanghai Zhixiang further undertakes that, without Zhixiang WFOE’s prior written consent, it will not, among other things, sell, transfer, pledge, or permit others to use or otherwise dispose of such assets. The exclusive asset subscription agreement has a term of 10 years and can be extended at Zhixiang WFOE’s discretion.

Spousal Consent Letter

Pursuant to the spousal consent letter executed by the spouse of the Nominee Shareholders, the signing spouse unconditionally and irrevocably agreed that the equity interest in Shanghai Zhixiang held by and registered in the name of the Nominee Shareholders be disposed of in accordance with the exclusive option agreement, equity interest pledge agreement, proxy agreement, and other documents described above. The signing spouse agreed not to assert any rights over the equity interest in Shanghai Zhixiang held by the Nominee Shareholders. In addition, in the event that the signing spouse obtains any equity interest in Shanghai Zhixiang held by the Nominee Shareholders for any reason, she agrees to be bound by and sign any legal documents substantially similar to the contractual arrangements described above, as may be amended from time to time.

As a result of the VIE Contractual Arrangements, the Company has the power to direct the activities that most significantly impact Shanghai Zhixiang’s economic performance, bears the risks of and enjoys the rewards normally associated with the ownership of Shanghai Zhixiang. Therefore, management concluded that Shanghai Zhixiang is a consolidated VIE of the Company, of which the Company is the ultimate primary beneficiary. As such, the Group consolidated financial results of Shanghai Zhixiang in the consolidated financial statements.

Under the VIE Contractual Agreements, the Company has the power to direct activities of Shanghai Zhixiang through Zhixiang WFOE, and can have assets transferred freely out of Shanghai Zhixiang without restrictions. Therefore, the Company considers that there is no asset of Shanghai Zhixiang that can only be used to settle obligations of Shanghai Zhixiang, except for the registered capital and reserve funds of Shanghai Zhixiang with the aggregated amount of RMB1,566 as of December 31, 2021 and 2022. Since Shanghai Zhixiang are incorporated as limited liability companies under the PRC Law, creditors of Shanghai Zhixiang do not have recourse to the general credit of the Company.

The Company believes that the Zhixiang WFOE’s VIE Contractual Arrangements with Shanghai Zhixiang and the Nominee Shareholders are in compliance with PRC laws and regulations, as applicable, and are legally binding and enforceable. There are, however, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. Accordingly, the Company cannot be assured that the PRC government authorities will not ultimately take a view that is contrary to the Company’s belief and the opinion of its PRC legal counsel.

The Nominee Shareholders of Shanghai Zhixiang also own the majority of the voting shares of the Company. The enforceability, and therefore the benefits of the VIE Contractual Agreements between the Company and Shanghai Zhixiang depends on those individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and Shanghai Zhixiang may not be aligned in the future and they may fail to perform their contractual obligations. There would be a significant negative impact to the Company if these contracts were not enforced.

The Group’s operations depend on Shanghai Zhixiang to honor their VIE Contractual Agreements with the Group and the Company’s ability to control Shanghai Zhixiang also depends on the authorization by the Nominee Shareholders of Shanghai Zhixiang to exercise voting rights on all matters requiring shareholder approval in Shanghai Zhixiang. The Company believes that the agreements on authorization to exercise shareholder’s voting power are enforceable against each party thereto in accordance with their terms and applicable PRC laws or regulations currently in effect and the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote.

The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the consolidated VIEs, including Shanghai Zhixiang and the other VIE that had no significant operations, nor any material assets or liabilities, which were included in the Group’s consolidated financial statements with intercompany transactions eliminated:


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	606	90
Accounts receivable, net	1,470	—
Prepayments and other current assets	1,317	4,473
Amounts due from non-VIE subsidiaries of the Company	603,009	591,174
Total current assets	606,402	595,737
Other non-current assets	22	6
Total non-current assets	22	6
Total assets	606,424	595,743

Salary and welfare payable	1,745	2,376
Tax payable	7,548	7,442
Amounts due to non-VIE subsidiaries of the Company	445,029	442,819
Accruals and other current liabilities	1,240	544
Total current liabilities	455,562	453,181
Total liabilities	455,562	453,181

Total shareholders’ equity	150,862	142,562


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Third party revenues	9,413	16,386	11
Inter-company service charge (a)	406,730	103,948	2,554
Third-party costs and expenses	(101,895)	(66,477)	(10,015)
Inter-company costs and expenses	(276,578)	—	—
Other operating loss	(357)	(11,359)	(1,566)
Income from non-operations	—	—	8
Income/(loss) before income tax expense	37,313	42,498	(9,008)
Less: Income tax expense	—	(3,914)	—
Net income/(loss)	37,313	38,584	(9,008)


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Intercompany payments from service charge	(37,271)	(18,255)	(6,500)
Intercompany receipts from service charge	124,193	88,000	14,600
Operating activities with external parties	(85,138)	(73,720)	(8,616)
Net cash generated from/(used in) operating activities	1,784	(3,975)	(516)
Net increase/(decrease) in cash and cash equivalents	1,784	(3,975)	(516)

For the years ended December 31, 2020, 2021 and 2022, there was no cash generated from or used in investing and financing activities of the consolidated VIEs.

Note (a) — For the periods presented, Shanghai Zhixiang was used primarily to facilitate the Group’s internal research and development functions with no material external operations. In consideration for its service, Zhixiang WFOE pays service fees to Shanghai Zhixiang. The service fees are determined by Zhixiang WFOE based on the nature and cost of the research and development activities of Shanghai Zhixiang, which is adjusted and evaluated on periodical basis.

Summary of principal accounting policies

12 Months Ended

Dec. 31, 2022

Summary of principal accounting policies

Summary of principal accounting policies

2. Summary of principal accounting policies

(a) Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for the periods presented.

The accompanying consolidated financial statements have been prepared on a going concern basis.

(b) Consolidation

The Company’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the primary beneficiary.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiaries are the primary beneficiary of the entity.

All transactions and balances among the Company, its subsidiaries and the consolidated VIEs have been eliminated upon consolidation.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, measurement and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amount of expenses during the reporting periods. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include, allowance for doubtful accounts, useful lives of property, equipment and software, impairment of long-lived assets, inventory write-downs, impairment of prepayments to location partners, internal rate of return associated with the finance lease, valuation and recognition of share-based compensation arrangements, convertible redeemable preferred shares and warrant liabilities, capitalized software development cost, valuation allowance of deferred tax assets.

(d) Functional currency and foreign currency translation

An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which it primarily generates and expends cash and is determined by various indicators, including but not limited to cash flow, sales price, sales market, expenses, financing and intercompany transactions and arrangements. The functional currency of the Company, its consolidated VIEs in BVI and subsidiary in Hong Kong is the United States dollar (US$). The Company’s subsidiaries and consolidated VIEs in PRC use Renminbi (“RMB”) as their functional currency. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters.

Transactions denominated in currencies other than functional currencies are translated into functional currencies at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in net income. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currencies using the applicable exchange rates quoted by the PBOC at the balance sheet dates. All such exchange gains and losses are included in net income.

The reporting currency of the Group is RMB. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as accumulated comprehensive income/(loss) and are shown as a separate component of other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss).

(e) Fair value measurements

The Group defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group’s financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable, notes receivable, prepayments and other current assets, lease liabilities, accounts and notes payable, amounts due to related parties, financing payable and accruals and other current liabilities. Except for short-term investments and derivative liabilities which are measured at fair value, the carrying values of the other financial instruments approximated their fair values due to the short-term maturity of these instruments. Certain short-term investments in financial products and securities and derivative instruments classified within Level 2 are valued using directly or indirectly observable inputs in the marketplace.

The Group’s assets and liabilities measured at fair value on a recurring basis are summarized below:


	Fair Value Measurement Using Significant
	Other Observable Inputs (Level 2)
	As of December 31,
	2021	2022
	RMB	RMB
Short-term investments	1,418,721	2,091,198
Derivative liabilities	—	(2,592)

Refer to Note 12 for roll forward of level 3 financial instruments and key assumptions used by the Group in estimating the fair value of warrant liabilities.

(f) Convenience translation

Translations of the consolidated balance sheets, the consolidated statements of comprehensive income/(loss) and the consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8972, representing the certificated exchange rate published by the Federal Reserve Board as of December 30, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 30, 2022, or at any other rate.

(g) Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits placed with banks and third-party payment processors, which are unrestricted from withdrawal or use, that have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash.

(h) Restricted cash

Cash that is restricted from withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets. The Group’s restricted cash mainly represents the deposits held in designated bank accounts for issuance of bank acceptance notes and letter of guarantee. The Group adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) for all period presented.

Cash and cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on consolidated balance sheets as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	1,296,924	948,773
Restricted cash	19,671	14,608
Long-term restricted cash	20,000	21,000
Total	1,336,595	984,381

(i) Short-term investments

Short-term investments are comprised of investments in financial products issued by banks or other financial institutions, which contain a fixed or variable interest rate and with original maturities between one month and one year. Such investments are generally not permitted to be redeemed prior to the maturity or are subject to penalties for redemption prior to maturity. These investments are stated at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss).

(j) Derivative instruments

Derivative instruments are carried at fair value. The fair values of the derivative financial instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date. The Group’s derivative instruments primarily consisted of foreign currency forward contracts which are used to economically hedge certain foreign denominated liabilities and reduce, to the extent practicable, the potential exposure to the changes that exchange rates might have on the Group’s earnings, cash flows and financial position. As the derivative instruments of foreign currency forward contracts do not qualify for hedge accounting treatment, changes in the fair value are reflected in interest and investment income of the consolidated statements of comprehensive income/(loss).

As of December 31, 2021, and 2022, and for the years ended December 31, 2020, 2021 and 2022, the balance of the derivative instruments and the total amount of fair value changes are not material.

(k) Accounts receivable, net

The Group’s accounts receivable mainly consist of amounts due from the customers less an allowance for doubtful accounts. The Group reviews accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. The Group determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit worthiness of the customers as well as the age of the individual receivables balance. The facts and circumstances of each account may require the Group to use substantial judgment in assessing its collectability. For the years ended December 31, 2020, 2021 and 2022, the Group recognized a provision for doubtful accounts of RMB5,302, RMB3,206 and RMB3,435, respectively.

The following table summarized the details of the Group’s allowance for doubtful accounts:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	5,025	3,268	5,986
Provision for doubtful accounts	5,302	3,206	3,435
Write-offs	(7,059)	(488)	(4,335)
Balance at the end of year	3,268	5,986	5,086

(l) Inventories

Inventories, consisting of products for sale, are stated at the lower of cost or net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandises and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. For the years ended December 31, 2020, 2021 and 2022, the Group recognized cost of revenue in connection with write-down of inventory with the amount of nil, nil and RMB9,273 respectively.

(m) Property, equipment and software, net


Cabinets		4 to 5 years
Power banks		3 years
Computer and electronic equipment		3 years
Production tools		5 years
Software		10 years
Others		3 to 5 years
Leasehold improvements		Shorter of the estimated useful lives or the lease term

Property, equipment and software are stated at cost less accumulated depreciation/amortization and impairment. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives.

The Group purchases certain raw materials and components directly from suppliers and outsources the manufacturing to the assembly partners. Raw materials, components and all other direct costs that are related to the production of power banks and cabinets under construction and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to power banks and cabinets and depreciation commences when the asset is ready for its intended use.

Expenditures for maintenance and repairs are expensed as incurred. Gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss).

The Group’s power banks can be used either for rental in relation to the mobile device charging business or for sale, at the discretion of the users. The Group initially records the power bank as property and equipment based on the usage pattern of its users who primarily opt to rent the power banks. When the users elect to purchase power banks, the pertinent power banks are reclassified to the inventory at the net carrying value and are recognized as cost of revenues upon the transfer of power banks to users. As of December 31, 2021 and 2022, all power banks that were elected for purchase by the users had been transferred to the users. For the years ended December 31, 2020, 2021 and 2022, the Group recognized cost of revenue in connection with the power bank sales with the amount of RMB31,856, RMB27,956 and RMB12,465, respectively.

(n) Capitalized Software Development Cost

The Group capitalizes the direct development costs associated with internal-used software in accordance with ASC 350-40, “Internal-use software”, which requires the capitalization of costs relating to certain activities of developing internal-use software that occur during the application development stage. Costs capitalized mainly include payroll and payroll-related costs for employees incurred during the application development stage of the internal-use software projects. Capitalized internal-use software costs are stated at cost less accumulated amortization and the amount is included in “property and equipment, net” on the consolidated balance sheets, with an estimated useful life of three years. Software development cost capitalized amounted to nil, RMB7,922 and RMB5,677 for the years ended December 31, 2020, 2021 and 2022, respectively. The amortization expense for capitalized software costs amounted to nil, RMB1,280 and RMB3,679 for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the carrying amount of capitalized internal use software development costs was RMB6,642 and RMB8,640, respectively.

(o) Impairment of long-lived assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets that management expects to hold and use is based on the amount the carrying value exceeds the fair value of the asset.

When impairment is recognized, the adjusted carrying amount of the underlying fixed assets becomes their carrying value. The new cost basis is depreciated over the remaining useful lives of the assets. Impairment charge recognized in cost of revenues for the years ended December 31, 2020, 2021 and 2022 was nil, nil and RMB21,560, respectively.

(p) Revenue recognition

The Group’s revenues are primarily derived from (i) mobile device charging business, (ii) power bank sales, and (iii) others. Revenue recognition policies for each type of revenue stream are as follows:

Mobile device charging business

The Group deploys its equipment, including cabinets with power banks, in highly frequented points of interest, such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces, etc., which are operated by its location partners. Individual customers can scan the QR code on the cabinets with their mobile devices to place an order to use a power bank. A deposit is generally required for each order placed by the users except for users who have qualified credit scores at WeChat or Alipay. The deposit is refunded to users when they return the power banks. The Group records the deposit in accruals and other current liabilities. As provided in the customer agreement, if the power banks are not returned by the users after a certain period of time, the deposit will be kept by the Group to settle their usage of the power banks. The Group recognizes such deposit as revenue from the mobile device charging business.

The Group earns its revenue from the mobile device charging business from the rental fees it receives from the customers, which are a function of the hourly rate determined by the Group and the period of time for which the customers use the power banks. The Group collects fees directly from its customers through third party payment processors, such as WeChat and Alipay, generally upon the return of the power bank. As individual customers have the right to use a specific power bank for a period of time to charge their mobile devices, the arrangements with the individual customers constitute a lease and the revenue for the mobile device charging business is recognized under ASC 842, “Leases” (“ASC 842”) since the adoption of ASC 842 by the Group on January 1, 2022, and under ASC 840, “Leases” (“ASC 840”) during the periods prior to January 1, 2022. The revenue generated from the mobile device charging business is recognized as contingent rental revenue which is accrued during the rental period of the power banks.

The mobile device charging business is operated under a direct model or a network partner model as follows:

●

Under the direct model, the Group identifies and negotiates with location partners directly and pays location partners commissions based on a certain percentage of the revenue the Group generates from the equipment placed in location partners’ venues. In some cases, the Company pays the location partners entry fees or prepaid commissions for placement of the Group’s equipment. The amortization of entry fees and commissions paid to the location partners are presented as sales and marketing expenses; and

●

Under the network partner model, the Group collaborates with network partners by leveraging their local business network to expand its business. The network partners are engaged to identify the points of interest and negotiate with the location partners for deployment of the equipment. The Group is obligated to pay commissions to network partners based on a certain percentage of the revenue the Group generates from the equipment placed by the network partners. The commissions paid to location partners or network partners are presented as sales and marketing expenses.

Transaction with network partners - sales of the cabinets

Under the network partner model, the Group sells the cabinets to majority of network partners, but retains all the output derived from the cabinets, whose only potential use is to store, charge, and process the Group’s proprietary power banks, for an indefinite period. The Group has determined that this right of use should be accounted for as an embedded lease for the estimated useful life of the cabinets. Since the embedded lease of the cabinets would be classified as a capital lease under ASC 840 and as a finance lease under ASC 842, the Group accounts for the proceeds from the network partners as a financing transaction rather than as a sale of the cabinets.

Therefore, the cabinets continue to be recognized as the Group’s equipment and are depreciated over their useful lives (Note 5). The cash received from the network partners for the cabinets is initially recognized as financial liabilities and the liability is subsequently accreted over the estimated beneficial period of the cabinets based on the estimated effective rate of return implicit in the lease, with interest expense being recognized. The effective interest rate is estimated based on the projected variable lease repayment amounts that have been bifurcated from the estimated commissions to be paid to the network partners during the useful life of the cabinets based on their relative standalone selling prices. The financial liabilities are settled when payments are made to the network partners. The financial liabilities that are expected to be settled over one year from the balance sheet date are presented as long-term liabilities.

The Group regularly evaluates the effective interest rate against the actual lease repayments and prospectively adjusts the effective interest rate as necessary. For the periods presented, there was no material change in the effective interest rate. For the years ended December 31, 2020, 2021 and 2022, the weighted average effective interest rate was 23%, 24% and 21%, respectively.

The roll forward of the aggregated financing payables for both current and non-current are as below:


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	142,156	244,151	169,833
Addition	115,387	3,445	1,758
Accretion of interest	32,097	37,806	31,196
Repayment	(45,489)	(115,569)	(69,738)
Derecognition (*)	—	—	(24,496)
Balance at the end of year	244,151	169,833	108,553

*For the year ended December 31, 2022, with the termination of the arrangement with certain network partners, the Group is no longer considered to retain the right of use of the cabinets sold to these network partners and the financing transaction is ceased accordingly. Therefore, the Group derecognized the carrying values of the related equipment and the financing payables of RMB6,959 and RMB24,496, respectively, with the net gains of RMB17,537 recorded in other operating income as the debt extinguishment gain.

Transaction with network partners – upfront fee

Since 2021, the Group entered into network partners agreements with certain network partners under which, instead of purchasing the cabinets from the Group, the network partners agree to pay a pre-agreed fixed upfront fee to the Group to become its network partners. During the contractual period, the network partners are entitled to the commission from the Group based on a certain percentage of the revenue the Group generates from the equipment placed by the network partners. The upfront fee is recorded as liability when collected and is amortized on a straight-line basis over the estimated beneficial period as the deduction of the commission to the to the network partners. For the years ended December 31, 2021 and 2022, the upfront fees agreed under such arrangements were RMB158,176 and RMB433,404, respectively, among which RMB14,586 and RMB73,554 was amortized as the reduction to the sales and marketing expenses, respectively.

For the year ended December 31, 2022, with the business winding-ups of certain network partners under the upfront fee arrangements, the Group derecognized carrying values of the related equipment previously provided to these network partners and the outstanding upfront fee payable of RMB2,785 and RMB6,917, respectively, with the net gains of RMB4,132 recorded in other operating income.

Power bank sales

The Group generates revenues from sales of power banks if the customers purchase power banks. Revenue is recognized in accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”) when a purchase order is confirmed and the power banks are released to the customers, which is when the control of products is transferred.

Other revenues

Other revenues primarily comprise of revenues generated from advertising services and sales of merchandises.

The Group provides advertising services to customers by displaying advertisement on the Group’s mobile applications in WeChat or Alipay. Revenue is recognized in accordance with ASC 606 over the period when the advertising is displayed. The Group considers several factors in determining whether it is appropriate to record the revenues at the gross amount of fees charged, or those amounts net of commissions paid.

The Group sells certain merchandises through online platform. The Group recognizes revenue net of discounts and return allowance when the merchandises are delivered and control passes to the customers.

Generally, revenues are recorded at the gross sales price because the Group controls the specified goods or services, and is the primary obligor in a transaction, is subject to substantial inventory risk, and has latitude in establishing prices. The Group’s revenues are recognized after deducting estimated price concessions, discounts, and value added tax (“VAT”).

(q) Cost of revenues

Cost of revenues consists primarily of shipping and handling expenses, employee wages, bonus and benefits of supply chain departments, rental expenses, depreciation of power banks and cabinets, cost of power banks sold or lost, cost of merchandises sold and other expenses directly attributable to the Group’s principal operations.

(r) Research and development expenses

Research and product development expenses include employee wages and other compensation-related expenses for the Group’s research and product development personnel, as well as office rental, depreciation and related expenses and travel-related expenses for the Group’s research and product development team. The Group recognizes software development costs in accordance with ASC 350-40 “Software-internal use software”. The Group expenses all costs that are incurred in connection with the planning and implementation phases of development, and costs that are associated with maintenance of the existing websites or software for internal use. Certain costs associated with developing internal-use software are capitalized when such costs are incurred within the application development stage of software development (Note 2(n)).

(s) Sales and marketing expenses

Sales and marketing expenses comprise primarily of the amortization of entry fees paid to location partners and commissions to the location partners and network partners which are all primarily for purchase of user traffic, advertising expenses, third-party platforms commission fee, employee wages and benefits for sales and marketing staff, depreciation expenses, rental expenses and other daily expenses which are related to the sales and marketing functions. Entry fees paid to location partners are amortized on straight line basis over the contractual period with location partners during which the Group’s equipment is placed in location partners’ venues, ranging from 1 year to 6 years, and the weighted average term is around 1.9 years, 2.0 years and 2.3 years for the years ended December 31, 2020, 2021 and 2022. Entry fee is accrued based on actual period of cabinet placement if payment is yet to be made. Commissions to the location partners and network partners are expensed in line with the recognition of rental income from users. For the years ended December 31, 2020, 2021 and 2022, the aggregated commissions to the location partners and network partners and amortization of the entry fees to the location partners amounted to RMB1,576,565, RMB2,112,774 and RMB2,069,102, respectively.

Advertising expenses primarily consist of promotion and advertising expenses. The Group expenses all advertising expenses as incurred and classifies these expenses under sales and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, advertising expenses were RMB6,752, RMB14,988 and RMB10,684, respectively.

(t) General and administrative expenses

General and administrative expenses consist of employee wages and benefits for corporate employees, other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human resources, and costs associated with the use of facilities and equipment by these functions, such as depreciation expenses, rental and other general corporate related expenses.

(u) Employee benefits

The Company’s subsidiaries and the consolidated VIE in China participate in a government mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. For the years ended December 31, 2020, 2021 and 2022, employee social benefits included as expenses in the consolidated statements of comprehensive income/(loss) amounted to RMB53,266, RMB140,259 and RMB151,499, respectively.

The Group has not made contribution in full to the labor bureau for some of the employees based on relevant PRC regulation. The Group has made provision for the underpayment of social benefits according to the relevant PRC regulation. As of December 31, 2021 and 2022, the accrued and unpaid employee social benefits were RMB31,384 and RMB58,478, respectively.

(v) Government grants

The Group’s PRC based subsidiaries received government subsidies from certain local governments. The Group’s government subsidies are mainly VAT refund and other government subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Group; receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. VAT refund and other government subsidies are recognized as other operating income upon receipt as further performance by the Group is not required. For the years ended December 31, 2020, 2021 and 2022, government subsidies were RMB24,790, RMB29,956 and RMB17,636, respectively.

(w) Share-based compensation

The Company follows ASC 718, “Compensation — Stock Compensation” to determine whether share-based awards should be classified and accounted for as a liability award or equity award. The Company granted restricted shares, RSUs and share options to the Company’s founders, employees and external consultants, which are classified as equity awards and recognized in the consolidated financial statements based on their grant date fair values.

Share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required; or b) for awards granted with only service conditions, using the straight-line vesting method, over the vesting period.

Share-based compensation in relation to the restricted shares and RSUs is measured based on the fair market value of the Group’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Group’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, and subjective judgments regarding the Group’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. In addition, the binomial option-pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions including the expected share price volatility, actual and projected employee and non-employee share option exercise behavior, risk-free interest rates and expected dividends. The fair value of these awards was determined taking into account independent valuation advice.

The modifications of the terms or conditions of the shared-based award are treated as an exchange of the original award for a new award. The incremental compensation expense is equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. For awards already vested as of the modification date, the Company immediately recognized the incremental value as compensation expenses. For awards still unvested as of the modification date, the incremental compensation expenses are recognized over the remaining service period of these awards.

In accordance with ASU 2016-09, the Group makes an entity-wide accounting policy election to account for forfeitures when they occur.

(x) Leases

The Group applied ASC 842, Leases, on January 1, 2022 on a modified retrospective basis and has elected not to recast comparative periods. The Group determines if an arrangement is a lease at inception. Operating leases are primarily for office and warehouse space and are included in right-of-use (“ROU”) assets, current portion of lease liabilities and non-current lease liabilities on its consolidated balance sheets. ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Group’s lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liability when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

For operating leases with a term of one year or less, the Group has elected to not recognize a lease liability or ROU asset on its consolidated balance sheet. Instead, it recognizes the lease payments as expense on a straight-line basis over the lease term.

Upon the adoption of the new lease standard, on January 1, 2022, the Group recognized operating lease assets of RMB31,132 and total operating lease liabilities of RMB25,807 (including current liabilities of RMB22,132) in the consolidated balance sheets. There was no impact to retained earnings at adoption.

The Group has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Group elected not to apply ASC 842 recognition requirements; and (ii) the Group elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2022 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and (c) initial direct costs.

(y) Income tax

Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income/(loss) in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.

Uncertain tax positions

ASC 740, Tax provision prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under income tax expense in its consolidated statements of comprehensive income/(loss). As of December 31, 2021, the Group did not have any unrecognized uncertain tax position, or any interest or penalties associated with tax positions. As of December 31, 2022, if recognized, RMB209,078 of unrecognized tax benefits would impact the Group’s effective tax rate.

In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

(z) Statutory reserves

In accordance with China’s Company Laws, the Company’s subsidiaries and consolidated VIEs in PRC must make appropriations from their after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company.

Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiary that is a foreign investment enterprise in China has to make appropriations from its after-tax profit (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective company. Appropriations to the other two reserve funds are at the respective companies’ discretion.

For the years ended December 31, 2020, 2021 and 2022, the Group has provided RMB4,678, nil and nil appropriations to statutory surplus fund, respectively.

(aa) Comprehensive income/(loss)

Comprehensive income/(loss) is defined as the change in equity of the Group during the period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the periods presented, the Group’s comprehensive income/(loss) includes net income and other comprehensive income/(loss), which mainly consists of the foreign currency translation adjustment that have been excluded from the determination of net income. Accumulated other comprehensive income/(loss), as presented on the accompanying consolidated balance sheets, consists of cumulative foreign currency translation adjustments.

(ab) Income/(loss) per share

Basic income/(loss) per share is computed by dividing net income/(loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income/(loss) is allocated between common shares and other participating securities base on their participating rights. Diluted net income/(loss) per share reflects the potential dilution that could occur if securities to issue ordinary shares were exercised. The dilutive effect of outstanding share-based awards is reflected in the diluted net income/(loss) per share by application of the if-converted method and treasury stock method, respectively. Dilutive equivalent shares are excluded from the computation of diluted net income/(loss) per share if their effects would be anti-dilutive.

(ac) Dividends

Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2020, 2021 and 2022.

(ad) Treasury shares

Treasury shares for the years ended December 31, 2019 and 2020 represents ordinary shares issued to the Company’s consolidated VIEs for the RSUs scheme. Refer to Note 13(b) for details. On September 28, 2021, the Company’s board of directors authorized a share repurchase program under which the Company was authorized to repurchase up to US$50 million worth of the Company’s shares over the next 12 months (the “Share Repurchase Program”). On September 28, 2022, the Board authorized a 12-month extension to the Share Repurchase Program through September 27, 2023 that the Company may repurchase up to US$50.0 million of its shares. The share repurchase programs permitted the Company to purchase shares from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The repurchased shares were accounted for under the cost method and presented as “treasury stock” in equity on the Group’s consolidated balance sheets.

(ae) Segment reporting

In accordance with ASC 280, Segment Reporting, the Group’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one reportable segment.

The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all the Group’s revenues are derived from within the PRC, therefore, no geographical segments are presented.

(af) Recent accounting pronouncements

The Company qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Company can elect to not adopt any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Group adopts the following standards based on extended transition period provided to private companies or early adopts as necessary as permitted by the respective standards.

Recently adopted accounting pronouncements

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)” (“ASU 201602”). Under the new guidance, lessees will be required to recognize a lease liability and a right-of use asset for each of its leases (other than leases that meet the definition of a short-term lease). Leases will be classified as either operating or finance. The update also expands the required quantitative and qualitative disclosures for leases. The standard is effective for the Group beginning January 1, 2022 and interim periods within the following fiscal year, with early adoption permitted.

The Group adopted ASC 842 using the modified retrospective transition approach, to be applied to leases existing as of, or entered into after, January 1, 2022. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. This standard provides a number of optional practical expedients in transition , which has been detailed in accounting policy(x) above.

In connection with the adoption of ASC 842, on January 1, 2022, the Group recorded an impact of RMB31,132 and RMB25,807 on its assets and liabilities for the recognition of operating lease right-of-use-assets and operating lease liabilities, respectively, which are primarily related to the lease of the Group’s office and warehouse space. The adoption of ASC 842 did not have a material impact on the Group’s results of operations or cash flows.

In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after January 1, 2022 and interim periods within those for the Group beginning after January 1, 2023. The adoption of this standard did not have a material impact on the Group’s consolidated financial statements.

In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarified that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Group adopted this update in the first quarter of 2022 and the adoption did not have a material impact to the Group’s consolidated financial statements.

In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The Group adopted this update in the first quarter of 2022 and the adoption did not have a material impact to the Group’s consolidated financial statements.

Recently issued accounting pronouncements not yet adopted

In June 2016, the FASB amended guidance related to the impairment of financial instruments as part of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU relates to the measurement of credit losses for certain financial assets measured at amortized cost and available-for-sale debt securities.

The FASB further issued Accounting Standards Update No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” or ASU 2018-19, Accounting Standards Update No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” or ASU 2019-04, Accounting Standards Update No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief,” or ASU 2019-05, Accounting Standards Update No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates,” or ASU 2019-10 and Accounting Standards Update No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” or ASU 2019-11. The amendments in these ASUs provide clarifications to ASU 2016-13. For financial assets measured at amortized cost, ASU 2019-04 requires an entity to (1) estimate its lifetime expected credit losses upon recognition of the financial assets and establish an allowance to present the net amount expected to be collected, (2) recognize this allowance and changes in the allowance during subsequent periods through net income and (3) consider relevant information about past events, current conditions and reasonable and supportable forecasts in assessing the lifetime expected credit losses. For available-for-sale debt securities, ASU 2019-04 made several targeted amendments to the existing other-than-temporary impairment model, including (1) requiring disclosure of the allowance for credit losses, (2) allowing reversals of the previously recognized credit losses until the entity has the intent to sell, is more-likely-than-not required to sell the securities or the maturity of the securities, (3) limiting impairment to the difference between the amortized cost basis and fair value and (4) not allowing entities to consider the length of time that fair value has been less than amortized cost as a factor in evaluating whether a credit loss exists.

According to Accounting Standards Update No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates,” for public business entities that are U.S. SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Group elected to use the extended transition period for complying with any new or revised financial accounting standards. Therefore, the Group elected to adopt this new guidance for the year ended December 31, 2023, including interim periods in the year ended December 31, 2023. The Group adopted this standard on January 1, 2023 on a modified retrospective basis. The adoption did not have a material impact to the Group’s consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for the Group are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The standard is effective for the Group for the year ended December 31, 2024 including interim periods in the year ended December 31, 2024. The adoption of this update is not expected to have a material impact to the Group’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this update are effective for the Group beginning January 1, 2025 on a prospective basis. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Group is in the process of evaluating the impact of the new guidance on its consolidated financial statements. The adoption of this update is not expected to have a material impact to the Group’s consolidated financial statements.

Initial Public Offering ("IPO")

12 Months Ended

Dec. 31, 2022

Initial Public Offering ("IPO")

Initial Public Offering ("IPO")

3. Initial Public Offering (“IPO”)

In April 2021, the Company completed its IPO on NASDAQ and issued 35,300,000 Class A ordinary shares at the offering price of US$4.25 per share with the net proceeds of RMB896,320 after deducting underwriting discounts and commissions and other offering expenses.

In conjunction with the IPO, the Company adopted the dual-class share structure. A total of 73,973,970 then issued and outstanding ordinary shares were re-designated and re-classed into Class B ordinary shares on a one-for-one basis. Immediately prior to the completion of the IPO, all classes of preferred shares of the Company were converted to 389,598,177 Class A ordinary shares on a one-for-one basis.

Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to 10 votes. Each Class B ordinary share is convertible into one Class A ordinary share at any time at the option of the holders. Except for the voting and conversion rights, holders of Class A ordinary shares and Class B ordinary shares have the same rights.

Certain risks and concentration

12 Months Ended

Dec. 31, 2022

Certain risks and concentration

4. Certain risks and concentration

(a) Credit and concentration risk

Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, short-term investment, amounts due from related parties and prepayments and other current assets. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheets dates.

The Group expects that there is no significant credit risk associated with the cash and cash equivalents, restricted cash and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality.

Accounts receivables are typically unsecured and are primarily derived from revenue earned from mobile device charging provided for individuals and advertising services provided to customers. The following table summarized customers with greater than 10% of the account receivables:


	As of December 31,
	2021		2022
Customer A	17	%	11	%
Customer B	*		21	%
Customer C	*		12	%

*	Less than 10%

ZMI (Hong Kong) International Company Limited (“ZMI”), a related party of the Group (Note 15), accounted for 40% and 4% of purchases for the years ended December 31, 2021 and 2022, respectively. In addition, supplier A, a third party of the Group, accounted for 17% and 21% of purchases for the year ended December 31, 2021 and 2022, respectively. Supplier B, a third party of the Group, accounted for less than 10% and 12% of purchases for the years ended December 31, 2021 and 2022, respectively.

(b) Foreign currency risk

For Group’s PRC entities, the operating transactions and its assets and liabilities are mainly denominated in RMB. RMB is not freely convertible into foreign currencies. The value of RMB is subject to changes influenced by central government policies, and international economic and political developments. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Group in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

The Group is exposed to foreign currency exchange rate risk, which mainly affects the monetary assets denominated in the currencies other than the functional currencies of the respective entities. As of December 31, 2021 and 2022, such affected monetary assets primarily included cash and cash equivalents and restricted cash denominated in US$. Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. While the international reaction to the RMB appreciation has generally been positive, there remains significant international pressure on the PRC government to adopt an even more flexible currency policy, which could result in a further and more significant appreciation of the RMB against other currencies.

(d) Impact of COVID-19

Since 2020, in response to the outbreak of the novel strain of the coronavirus, COVID-19 (the “COVID-19 pandemic”), as well as its new variants, Chinese government has implemented, and continues to implement, a variety of restricted measures to reduce the spread of COVID-19. These measures have had adverse effect on the Group’s consumer behaviors, ability to expand points of interest coverage, workforce and operations. These COVID-19 outbreaks were generally followed by a significant drop in offline foot traffic as people were more likely to stay at home and the Group’s location partners were required to temporarily shut down due to measures implemented by the government, which negatively impacted the Group’s points of interest coverage and financial performance.

Starting in December 2022, most of the travel restrictions and quarantine requirements in China were lifted. Even though there have been improvements in the economic and operating conditions for the Group’s business since the outset of the COVID-19 pandemic, the Group cannot predict the long-term effects of the pandemic on its business at this time.

Prepayments and other current assets

12 Months Ended

Dec. 31, 2022

Prepayments and other current assets

Prepayments and other current assets

5. Prepayments and other current assets

The prepayments and other current assets consist of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Prepayment to location partners^(a)	357,060	74,301
VAT receivables	77,527	10,450
Prepayment to service providers^(b)	9,753	116,342
Deposits	14,553	14,400
Prepaid expenses	13,133	9,577
Advance payment of income tax	5,383	—
Others	10,131	3,602
Total	487,540	228,672

(a)

It represents entry fees and prepaid commissions to location partners. As discussed in Note 2(s), entry fees paid to location partners are amortized on straight line basis over the contractual period with location partners during which the Group’s equipment is placed in location partners’ venues. In addition, since 2021, when entering into the location partner agreements, the Group agreed to prepay commissions to certain location partners. The amount of the prepayment is based on the pre-agreed forecast of commissions to the location partners during the contractual period. The prepayment is used to offset the actual commissions to be paid to the local partners on monthly basis based on the pre-agreed monthly forecast of commissions. The location partners are obligated to refund to the Group any remaining prepayments if performance target is not met within a pre-agreed period.

The Group is closely monitoring the recoverability of these prepayments to location partners based on the actual performance of each of the location partners. For the years ended December 31, 2021, and 2022, the Group recognized nil and RMB56,385 impairments for the prepaid commissions to the location partners whose businesses were wound up in 2022 as a result of the surge of COVID-19 infections in certain regions.

(b)

It represents the prepayment made to third-party payment processing providers are engaged by Group to facilitate its settlement with network partners and location partners for the commission fees. Depends on the settlement arrangement with different payment processing providers, after the prepayment is made by the Group, the commissions can be drawn down by network partners at their discretions or settled by payment processing providers on a pre-agreed settlement period. Upon settlement, the prepayment made to the payment processing providers and commission payables to network partners and location partners (Note 9) are derecognized accordingly. As of December 31, 2022, both the amounts of the prepayment made to the payment processing providers and commission payables increased as result of the lengthened settlement period agreed with the payment processing provider.

Property, equipment and software, net

12 Months Ended

Dec. 31, 2022

Property, equipment and software, net

Property, equipment and software, net

6. Property, equipment and software, net

Property, equipment and software and its related accumulated depreciation and accumulated impairment as of December 31, 2021 and 2022 were as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Cabinets	1,059,963	1,159,455
Power banks	675,611	833,257
Construction in progress	103,157	150,654
Software	14,982	23,039
Production tools	9,625	13,847
Computer and electronic equipment	4,543	13,445
Leasehold improvements	3,722	3,902
Others	816	844
Subtotal	1,872,419	2,198,443
Less: Accumulated depreciation	(927,193)	(1,291,203)
Less: Accumulated impairment	—	(20,780)
Property, equipment and software, net	945,226	886,460

For the years ended December 31, 2020, 2021 and 2022, depreciation expenses were RMB343,381, RMB396,906 and RMB421,345 respectively.

For the years ended December 31, 2020, 2021 and 2022, impairment charges were nil, nil and RMB21,560, respectively.

The summary of the leased cabinets under finance leases is as below:


	As of December 31,
	2021	2022
	RMB	RMB
Cabinets	173,663	154,822
Less: Accumulated depreciation	(70,621)	(111,183)
Less: Accumulated impairment	—	(3,018)
	103,042	40,621

Other non-current assets

12 Months Ended

Dec. 31, 2022

Other non-current assets

Other non-current assets

7. Other non-current assets

Other non-current assets consist of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Prepayment to location partners^(a)	133,887	11,649
Prepayment for purchase of property, equipment and software	19,920	15,038
Deposits	8,467	7,790
Others	2,712	1,421
Total	164,986	35,898

(a)

As discussed in Note 5(a), as of December 31, 2022, the Company assessed the recoverability of these prepayments based on the actual performance of each of the location partners. For the years ended December 31, 2021, and 2022, the Group recognized nil and RMB87,069 for impairments of the non-current prepaid commissions to the location partners whose businesses were wound up in 2022 as a result of the surge of COVID-19 infections in certain regions.

Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

8. Leases

The Group has operating leases primarily for office and warehouses to store its cabinets and power banks, which have lease terms varying from one to four years.

Total lease costs for the year ended December 31, 2022 was RMB34,243, included in research and development, sales and marketing and general and administrative expenses in the Group’s consolidated statements of comprehensive income/(loss). Out of the total lease costs, there was RMB4,143 of expenses for short-term leases within 12 months. As of December 31, 2022, the operating lease arrangements of the Group, primarily for warehouse premises, that have not yet commenced is not material.

Supplemental cash flow information related to leases were as follows:


		Year Ended December 31,
		2022
		RMB
Cash paid for the rentals included in the lease liabilities		22,850
ROU assets obtained in exchange for operating lease liabilities		10,034

As of December 31, 2022, supplemental consolidated balance sheet information related to leases were as follows:


		As of December 31,
		2022
		RMB
Right-of-use assets		12,442
Current portion of lease liabilities		9,761
Non-current lease liabilities		854

Lease term and discount rates were as follows:


	As of December 31,
	2022

Weighted-average remaining lease term
Operating leases	0.6 years
Weighted-average discount rate
Operating leases	4.7	%


		As of December 31,
		2022
Maturities of lease liabilities were as follows:
2023		10,452
2024		323
Total undiscounted lease payments		10,775
Less: imputed interest		(160)
Total present value of lease liabilities		10,615

As of December 31, 2021, future minimum payments under non-cancellable operating leases for offices and warehouses consist of the following:


		As of December 31,
		2021

2022		23,457
2023		5,349
2024		173
Total		28,979

Amounts are based on ASC 840, Leases that were superseded upon the Group’s adoption of ASC 842, Leases on January 1, 2022 and operating lease expenses were RMB34,682 and RMB41,902 for the years ended December 31, 2020 and 2021, respectively.

Accounts and notes payable and accruals and other current liabilities

12 Months Ended

Dec. 31, 2022

Accounts and notes payable and accruals and other current liabilities

Accounts and notes payable and accruals and other current liabilities

9. Accounts and notes payable and accruals and other current liabilities

Accounts and notes payable consist of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Commission payables to network partners and location partners	330,586	546,739
Entry fees payable to location partners	62,135	46,359
Payables for purchase and maintenance of property, equipment and software	154,430	209,367
Others	4,600	7,732
Total	551,751	810,197

Accruals and other current liabilities consist of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Customer deposits	211,938	229,356
Derivative liabilities	—	2,592
Others	26,572	36,059
Total	238,510	268,007

Income taxes

12 Months Ended

Dec. 31, 2022

Income taxes

Income taxes

10. Income taxes

The Company is registered in the Cayman Island. The Group generates substantially all of its income/(loss) from its PRC operations.

Cayman

Under the current laws of Cayman, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to shareholders, no Cayman withholding tax will be imposed.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, the subsidiary of the Group in Hong Kong is subject to 8.25% profit tax on the first HKD2 million taxable income and 16.5% profit tax on the remaining taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

PRC

In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and consolidated VIE of the Group in the PRC are subject to a uniform income tax rate of 25% for all periods presented. Shanghai Zhixiang was entitled to be “Software Enterprise”. According to the new EIT Law and relevant regulations, from the year of 2019, Shanghai Zhixiang could enjoy a tax holiday of 2-year EIT exemption and subsequently 3-year 12.5% preferential tax rate. Meanwhile, in 2022, Shanghai Zhixiang also applied for its qualification as High and New Technology Enterprise (“HNTE”) and is entitled to a preferential income tax rate of 15% from 2022 to 2024 as long as it maintained its qualification for HNTE that is subject to verification by competent authorities and renewals every three years.

The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes.

The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion issued in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the immediate holding company in Hong Kong is the beneficial owner of the FIE and owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and withholding taxes should be accrued accordingly. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends from its PRC subsidiaries will be re-invested and the remittance of the dividends from its PRC subsidiaries will be postponed indefinitely.

As of December 31, 2021 and 2022, the aggregated amount of undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company were RMB127,713 and RMB72,966, respectively. In accordance with the EIT Law, a withholding tax of 10%, or 5% subject to approval of Chinese tax authorities, will be imposed on the dividends when distributed to their immediate holding company outside of Mainland China. The Group plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as of December 31, 2021 and 2022.

The components of income before tax are as follows:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Income/(loss) before tax:
Income/(loss) from PRC entities	102,073	(128,658)	(609,980)
(Loss)/income from overseas entities	(8,082)	4,043	13,216
Total income/(loss) before tax	93,991	(124,615)	(596,764)

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	Year Ended
	December 31,
	2020		2021		2022
	RMB		RMB		RMB
Statutory income tax rate	25	%	25	%	25	%
Difference in tax rates of subsidiaries outside PRC	3	%	—	%	—	%
Effect of permanent differences	(3)	%	(7)	%	(6)	%
Research and development super deduction	—		15	%	3	%
Non-taxable income	—		1	%	1	%
Effect of tax holiday	(5)	%	2	%	—
Change in estimates for uncertain tax positions	—		—		(35)	%
Others	—		—		(3)	%
Change in valuation allowance	—	%	(36)	%	(4)	%
Effect tax rate	20	%	—	%	(19)	%

The aggregate amount and per share effect of the tax holidays are as follows:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
The aggregate amount of effect of tax holidays	4,535	2,243	—
Basic and diluted net loss per share effect	0.08	0.01	—

Composition of income tax expense

The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income/(loss) are as follows:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Income tax expense applicable to PRC entities
Current income tax expense	903	(554)	179,907
Deferred income tax expense	17,661	554	(65,431)
Subtotal income tax expense appliable to PRC entities	18,564	—	114,476
Current and deferred income tax expense applicable to overseas entities	—	—	—
Income tax expense, net	18,564	—	114,476

The following table sets forth the significant components of deferred tax assets/(liabilities):


	As of
	December 31,
	2021	2022
	RMB	RMB
Deferred tax assets:
Deferred upfront fee received	—	117,264
Commissions and entry fees for which invoices have not been collected	2,780	3,043
Accrued salary and welfare payable	8,194	14,500
Accrued expenses	—	5,209
Property, equipment and software, net	12,642	5,037
Inventory write-downs	—	2,318
Net operating loss carry-forwards	96,761	65,531
Others	801	11,036
Less: Valuation allowances	(47,430)	(72,783)
Total deferred tax assets	73,748	151,155
Deferred tax liabilities
Property, equipment and software, net	—	(20,499)
Accrued service revenue (a)	(108,193)	(93,382)
Capitalized software development costs	—	(1,296)
Others	—	(4,992)
Total deferred tax liabilities	(108,193)	(120,169)
Deferred tax (liabilities)/assets, net,	(34,445)	30,986

Note (a) — Deferred tax liabilities were provided for the unbilled service fee charged to VIEs by WFOEs pursuant to the exclusive business cooperation agreement entered into between VIEs and WFOEs as discussed in Note 1(b).

As of December 31, 2022, the Group had net operating loss carry forwards of approximately RMB405,191 which mainly arose from the subsidiaries and consolidated VIEs established in the PRC. The loss carries forwards from PRC entities will expire during the calendar year from 2025 to 2032. The net operating loss of the Group will start to expire if not utilized. Other than the expiration, there are no other limitations or restrictions upon Group’s ability to use these operating losses carry forwards.

As of December 31, 2022, net operating loss carry forwards from PRC entities will expire as follows:


At December 31,		RMB
2025		637
2026		237,664
2027		131,203
2031		17,408
2032		18,279
		405,191

Movement of valuation allowance


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	474	621	47,430
Additions	147	46,809	25,353
Balance at the end of the year	621	47,430	72,783

As of December 31, 2021 and 2022, valuation allowances of RMB47,430 and RMB72,783 were provided because it was more likely than not that certain entities within the Group will not be able to utilize certain tax losses carry forwards and other deferred tax assets generated. If events occur in the future that allow these entities to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will increase income when those events occur.

The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. The evaluation involves considerable judgement and is based on the best information available. For the year ended December 31, 2022, the Group identified the uncertain tax position related to certain commission expenses and recognized RMB176,880 tax liability in other non-current liabilities, which is based on the best estimate of the largest amount of tax benefit that is more likely than not to be realized. Included within the unrecognized tax benefit is the tax benefit of RMB209,078 that, if recognized, would impact the Group’s effective tax rate. It is possible that the estimate and ultimate settlement of this uncertain tax position may be further change based on further interactions with tax authorities.

The material jurisdiction in which the Group is subject to potential examination is the Chinese mainland. In general, the tax authorities in the Chinese mainland have three years, and in special cases up to five years, to conduct examinations of the tax filings of the Group’s PRC subsidiaries.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Ordinary shares

12 Months Ended

Dec. 31, 2022

Ordinary shares

Ordinary shares

11. Ordinary shares

Upon inception on May 17, 2017, the Company issued 83,000,000 ordinary shares to Smart Share Holdings Limited (“Smart Share Holding”), a company jointly controlled by the founders of the Company, for nominal consideration. On June 1, 2017, Smart Share Holding transferred 2,000,000 ordinary shares to Smart Share Brothers for nominal consideration. On July 25, 2017, Smart Share Holding designated all 81,000,000 remaining ordinary shares of the Company it held as the founders’ restricted shares of the Company in exchange for the service of the founders as the Company’s employees.

From 2017 to 2019, the Company issued an aggregate of 44,841,250 ordinary shares to Smart Share CGY for nominal consideration. Smart Share CGY and Smart Share Brothers, the consolidated VIEs of the Company, were established to facilitate the adoption of the Company’s RSUs scheme. The Company’s ordinary shares issued to Smart Share CGY and Smart Share Brothers are presented as treasury shares in the consolidated balance sheets. See Note 13(b) for details.

On October 15, 2019, as approved by the Company’s board of directors and shareholders, the Company repurchased 7,026,030 and 275,000 ordinary shares from Smart Share Holding and Smart Share CGY, respectively, at the purchase price of US$0.8218 per share with an aggregate consideration of US$6 million (RMB42,070). This consideration was passed by Smart Share Holding and Smart Share CGY to the founders and employees who are considered as the holders of the economics associated with the ordinary shares repurchased. The shares were cancelled by the Company after the repurchase. Since the economics of the ordinary shares repurchased from Smart Share Holding and Smart Share CGY were ultimately held by the founders and employees of the Company as a result of the vesting of the restricted shares and RSUs, the excess of the repurchase price over the fair value of the Company’s ordinary shares on the date of the transaction of RMB17,421 in the aggregate was recorded as share-based compensation expense within general and administrative expenses.

In January 2021, the Company’s board of directors resolved the surrender of 34,703,970 ordinary shares of Smart Share Holdings and issued the corresponding 27,397,000 ordinary shares to Super June Limited and 7,306,970 ordinary shares to Victor Family Limited, respectively, for no consideration. Super June Limited and Victor Family Limited are entities owned by two founders of the Group respectively. After the transaction, each founder holds the same percentage of the equity interest of the Group directly as the ones used to be held indirectly through Smart Share Holding.

In January 2021, the Company’s shareholders and board of directors approved a share incentive plan (the “2021 Share Incentive Plan”) for its employees, directors and external consultants. In connection with the adoption of the 2021 Share Incentive Plan, the Company’s board of directors have resolved the surrender of 44,566,250 ordinary shares of Smart Share CGY and 2,000,000 ordinary shares of Smart Share Brothers for no consideration.

Pursuant to a resolution made by the Company’s board of directors and shareholders on March 12, 2021, the Company adopted a dual-class share structure. A total of 73,973,970 then issued and outstanding ordinary shares were re-designated and re-classed into Class B ordinary shares on a one-for-one basis immediately prior to the completion of the IPO. The remaining issued and outstanding ordinary shares and all the Series Seed, Series A, Series A-1, Series B-1, Series B-2, Series C-1, Series C-2, Series D-1 and Series D-2 Convertible Redeemable Preferred Shares were converted to Class A ordinary shares, in each case on a one-for-one basis immediately prior to the completion of the IPO. Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to 10 votes. Each Class B ordinary share is convertible into one Class A ordinary share at any time at the option of the holder thereof. Except for the voting and conversion rights, holders of Class A ordinary shares and Class B ordinary shares have the same rights.

In August 2021, the Company issued 28,000,000 Class A ordinary shares for nominal consideration and deposited these shares in the Bank of New York Mellon. Such shares were issued by the Company for the purpose to issue to the Company’s employees upon the vesting of their RSUs or the exercise of their share options under the Company’s 2021 Share Incentive Plan. Such shares are presented as treasury shares in the consolidated balance sheets until the issuance to the Company’s employees.

As of December 31, 2021, the Company had 609,026,779 ordinary shares authorized, 452,898,177 shares of Class A Ordinary Shares and 73,973,970 shares of Class B Ordinary Shares issued, and 443,533,171 shares of Class A Ordinary Shares and 73,973,970 shares of Class B Ordinary Shares were outstanding, respectively.

As of December 31, 2022, the Company had 609,026,779 ordinary shares authorized, 452,898,177 shares of Class A Ordinary Shares and 73,973,970 shares of Class B Ordinary Shares issued, and 444,390,065 shares of Class A Ordinary Shares and 73,973,970 shares of Class B Ordinary Shares were outstanding, respectively.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 16
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

Convertible redeemable preferred shares

Convertible redeemable preferred shares

12 Months Ended

Dec. 31, 2022

Convertible redeemable preferred shares

12. Convertible redeemable preferred shares

Series Seed Convertible Redeemable Preferred Shares (“Series Seed Preferred Shares”)

On July 25, 2017, the Company issued 85,185,184 Series Seed Preferred Shares to certain third-party investors at the purchase price of US$0.06275 per share with an aggregate consideration of US$5,345 (equivalent to RMB36,597). Upon the issuance, the carrying value of Series Seed Preferred Shares were accreted immediately to their fair value of US$0.11 which was also the redemption value. The cost incurred for issuance of Series Seed Preferred Shares was US$45 (equivalent to RMB305). Certain Series Seed Preferred Shares investor did not pay the consideration with amount of US$4,183 (equivalent to RMB28,711) when the Series Seed Preferred Shares was issued, but paid the consideration in December 2019 when such Series Seed Preferred Shares investor completed its regulatory overseas investment registration under relevant PRC laws.

Series A Convertible Redeemable Preferred Shares (“Series A Preferred Shares”)

On July 25, 2017, the Company issued 37,037,035 Series A Preferred Shares to certain third-party investors at the purchase price of US$0.27 per share with an aggregate consideration of US$10,000 (equivalent to RMB66,957). The cost incurred for issuance of Series A Preferred Shares was US$85 (equivalent to RMB570).

Series A-1 Convertible Redeemable Preferred Shares (“Series A-1 Preferred Shares”)

On September 26, 2017, the Company issued 69,570,808 Series A-1 Preferred Shares to certain third-party investors at the purchase price of US$0.2824 per share with an aggregate consideration of US$19,646 (equivalent to RMB130,056). The cost incurred for issuance of Series A-1 Preferred Shares was US$346 (equivalent to RMB2,273). Certain Series A-1 Preferred Shares investor did not pay the consideration with amount of US$1,515 (equivalent to RMB10,399) when the Series A-1 Preferred Shares was issued, but paid the consideration in December 2019 when such Series A-1 Preferred Shares investor completed its regulatory overseas investment registration under relevant PRC laws.

In connection with the issuance of Series A-1 Preferred Shares, the Company issued a warrant to one of the investors which entitled this investor, at its discretion, to purchase the same seniority of preferred shares to be issued in the next round of equity financing of the Company (“Next Financing”) at the price equals to 85% of the per share purchase price in the Next Financing, with a total consideration up to US$10,000. On August 9, 2018, the warrant was partially exercised with total amount of US$ 3,000 (equivalent to RMB20,668) for the subscription of Series B-1 Preferred Shares with the remaining unexercised warrant expiring. The remaining warrant liability of US$ 1,235 (equivalent to RMB8,416) was reversed upon the expiration with a corresponding gain from reversal of liability recorded in the consolidated statements of comprehensive income/(loss).

On June 14, 2018, the Company issued 6,347,117 Series A-1 Preferred Shares to a third-party investor at the purchase price of US$0.2824 per share with an aggregate consideration of US$1,792 (equivalent to RMB11,465). The cost incurred for issuance of Series A-1 Preferred Shares was immaterial. The per share fair value of Series A-1 Preferred Shares on the date of the transaction was US$0.3021 and the excess of fair value over the issuance price with the aggregate amount of US$126 (equivalent to RMB834) was recorded as professional expense within general and administrative expenses as this investor provided service to the Group.

On December 10, 2020, the warrant which was issued in connection with the receipts of short-term borrowings (Refer to Note 8) were exercised by the third-party investor to purchase 885,269 Series A-1 Preferred Shares at the purchase price of US$0.2824 per share for an aggregate amount of US$250 (equivalent to RMB1,631). Warrant liability was re-measured to the date when this investor exercised the warrant. The Company recorded Series A-1 Preferred Shares based on its fair value as of the date of issuance in the amount of US$1,660 (equivalent to RMB11,262).

Series B-1/ B-2 Convertible Redeemable Preferred Shares (“Series B1/ B2 Preferred Shares”, collectively referred to as Series B Preferred Shares)

On August 9, 2018, the Company issued 7,467,196 Series B-1 Preferred Shares and 40,228,492 Series B-2 Preferred Shares to certain third-party investors at the purchase price of US$0.4018 and US$0.4727 per share with an aggregate consideration of US$3,000 (equivalent to RMB20,668) and US$19,014 (equivalent to RMB130,441), respectively. The cost incurred for issuance of Series B Preferred Shares was US$746 (equivalent to RMB5,159). Series B-1 Preferred Shares were issued in connection with the partial exercise of the warrant previously issued to one of the investors of Series A-1 Preferred Shares as aforementioned.

Series C-1 Convertible Redeemable Preferred Shares (“Series C-1 Preferred Shares”)

On October 15, 2019, the Company issued 57,653,035 Series C-1 Preferred Shares to certain third-party investors at the purchase price of US$0.9366 per share with an aggregate consideration of US$54,000 (equivalent to RMB381,883). The cost incurred for issuance of Series C-1 Preferred Shares was US$1,360 (equivalent to RMB9,492).

Repurchase of Preferred Shares

On October 15, 2019, the Company repurchased and cancelled 7,301,030 Series Seed and 3,654,318 Series A Preferred Shares at the repurchase price of US$0.8218 per share with total consideration of US$9,000 (equivalent to RMB63,065). The per share fair value of Series Seed and Series A Preferred Shares on the date of the transaction were $0.4855 and $0.5325, respectively, and the Company recorded the aggregate amount of US$3,512 (equivalent to RMB24,229) in accumulated deficit as a deemed dividend to the shareholders which represented the excess of the purchase price of the repurchased preferred shares over their fair value on the date of transaction.

Series C-2 Convertible Redeemable Preferred Shares (“Series C-2 Preferred Shares”, together with Series C-1 Preferred Shares, referred to as Series C Preferred Shares)

On December 24, 2019, the Company issued 10,224,598 Series C-2 Preferred Shares to certain third-party investors at the purchase price of US$0.9780 per share with an aggregate consideration of US$10,000 (equivalent to RMB71,531). The cost incurred for issuance of Series C-2 Preferred Shares was US$252 (equivalent to RMB1,758). As of December 31, 2019, certain Series C-2 Preferred Shares investor did not pay the consideration with amount of US$3,500 (equivalent to RMB24,458) when the Series C-2 Preferred Shares was issued, but paid the consideration in January 2020 accordingly to the consideration payment schedule.

Series D-1 Convertible Redeemable Preferred Shares (“Series D-1 Preferred Shares”)

On December 10, 2020 and December 29, 2020, the Company issued an aggregate of 42,329,835 Series D-1 Preferred Shares to certain third-party investors at the purchase price of US$2.5986 per share with an aggregate consideration of US$110,000 (equivalent to RMB719,401). The cost incurred for issuance of Series D-1 Preferred Shares was US$916 (equivalent to RMB5,979).

Series D-2 Convertible Redeemable Preferred Shares (“Series D-2 Preferred Shares”)

On January 6, 2021, the Company issued 43,624,956 Series D-2 Preferred Shares to a third-party investor at the purchase price of US$2.8425 per share with an aggregate consideration of US$124,002 (equivalent to RMB801,104). The issuance cost was US$1,131 (equivalent to RMB7,306). In addition, the investor of Series D-2 Preferred Shares also purchased 32,761,153 preferred shares from certain holders of Series Seed, Series A, Series A-1 and Series C-2 Preferred Shares at the purchase price of US$2.2740 per share, with an aggregate consideration of US$74,498. These preferred shares were re-designated by the Company to 32,761,153 Series D-2 Preferred Shares. The Company recorded an amount of US$16,104 (equivalent to RMB104,036), being the excess of the fair value of the Series D-2 Preferred Shares obtained by the investor over the aggregated fair value of the preferred shares purchased by the investor on the date of the transaction, in accumulated deficit as a deemed dividend to the shareholders which represented the transfer of value from the holders of Series Seed, Series A, Series A-1 and Series C-2 Preferred Shares to the investor of Series D-2 Preferred Shares.

The Series Seed, Series A, Series A-1, Series B, Series C, Series D 1 and Series D-2 Preferred Shares are collectively referred to as the “Preferred Shares”.

The significant terms of Preferred Shares are summarized below:

Dividends

The Preferred Shares do not include a fixed dividend rate. The dividends shall be distributed ratably among all of the holders of Preferred Shares on an as-converted basis, as and if declared at the sole discretion of the shareholders. Unless and until any dividend or dividend in like amount has been paid in full on the Series D-1 Preferred Shares (on an as if-converted basis), the Company shall not declare, pay or set apart for payment, any dividend and other distributions on any other series of Preferred Shares.

Liquidation preference

Liquidation Events include (a) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or (b) any following events including (i) any consolidation, reorganization, amalgamation or merger of the Company and/or its subsidiaries or shareholders of the subsidiaries with or into any person, or any other corporate reorganization or scheme of arrangement, including a sale or acquisition of equity securities of the Company, in which the shareholders of the Company or shareholders of the subsidiaries immediately before such transaction own less than fifty percent (50%) of the voting power of the surviving company immediately after such transaction, (ii) sale, lease, transfer, license or other disposition, in a single transaction or series of related transactions, by the Group of all or substantially all of the assets and/or intellectual property of the Group, (iii) exclusive license of all or substantially all of the intellectual property rights of the Group to a third party; or (iv) termination of, or invalidation of the VIE Contractual Arrangements without the prior written consent of the certain preferred shareholders and no alternative arrangement is agreed by the Group, the founders of the Group and these certain preferred shareholders within a reasonable time after such termination or invalidation.

In the event of any Liquidation Events, all assets and funds of the Company legally available for distribution (after satisfaction of all creditors’ claims and claims that may be preferred by law) shall be distributed in the preference order of Series D-1 Preferred Shares, Series C Preferred Shares, Series B Preferred Shares, Series A-1 Preferred Shares, Series A Preferred Shares and Series Seed Preferred Shares, at an amount equal to one hundred percent (100%) of the applicable issuance price of each Preferred Shares, plus all dividends accrued and unpaid.

After distribution or payment in full of the amount distributable or payable on the Preferred Shares, the remaining assets of the Company available for distribution to Shareholders shall be distributed ratably among the holders of outstanding ordinary shares and holders of Preferred Shares on an as-converted basis.

If upon any Liquidation Events, the assets of the Company available for distribution to its shareholders shall be insufficient to pay the holders of holders of Preferred Shares the full amount to which they shall be entitled, the holders of Preferred Shares shall share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

Redemption

If (i) the Company has not consummated a qualified public offering within forty eight (48) months from the issuance date of Series D-1 Preferred Shares, (ii) there is any material breach by any of the Group or the founders of Group any of their representations, warranties, covenants or other obligations under the transaction documents (as defined in the applicable share purchase agreement), which has not been cured within ninety (90) days after such breach, or (iii) any other shareholder of the Company requests the Company to redeem all or portion of any outstanding shares held by such shareholder (“Optional Redemption Date”), upon the earliest occurrence of (i), (ii) or (iii), each holder of Preferred Shares may require that the Company redeems all or any part of the then outstanding Preferred Shares held by such holder in accordance with the following terms in writing.

The price at which each Preferred Share shall be redeemed are summarized as follows:

(i)

with respect to each holder of Series D-1 Preferred Shares, each holder of Series C Preferred Shares, each holder of Series B Preferred Shares and each holder of Series A-1 Preferred Shares, the redemption price shall be equal to the greater of (a) the sum applicable issuance price of preferred shares plus a 8% rate of return and declared but unpaid dividends, or (b) fair market value of the preferred share.

(ii)

with respect to each holder of Series Seed Preferred Shares and each holder of Series A Preferred Shares, the redemption price shall be equal to the greater of (a) the sum applicable issuance price of preferred shares plus a 6% rate of return and declared but unpaid dividends, or (b) fair market value of the preferred share.

If the Company’s assets or funds which are legally available on the date that any redemption payment is due are insufficient to pay in full all redemption payments to be paid, those assets or funds which are legally available shall be used to the extent permitted by applicable law to pay all redemption payments due on such date in the sequence of Series D-1 Preferred Share, Series C Preferred Share, Series B Preferred Share, Series A-1 Preferred Share, Series A Preferred Share and Series Seed Preferred Share, in a pro-rata manner in accordance with the relative full amounts owed thereon.

Voting rights

Each Preferred Share shall be entitled to the number of votes equal to the number of ordinary shares into which such Preferred Shares could be converted.

Conversion

Each holder of Preferred Shares shall be entitled to convert any or all of Preferred Shares, at any time, into such number of ordinary shares at an initial conversion ratio of 1:1 subject to customary anti-dilution adjustments.

The Preferred Shares shall automatically be converted into ordinary shares upon the closing of a Qualified Public Offering based on the then-effective conversion price. Qualified Public Offering means a firmly underwritten public offering of the ordinary shares on the Main Board of Hong Kong Stock Exchange, New York Stock Exchange, or NASDAQ Global Market, with an offering price (exclusive of underwriting commissions and expenses) that reflects the gross proceeds to the Company of at least US$100,000,000 and an implied pre-offering market capitalization of the Company of at least US$1,000,000,000, or in a similar public offering of the ordinary Shares of the Company which results in the ordinary shares trading publicly on another internationally recognized major securities exchange.

In April 2021, all classes of Preferred Shares of the Company were converted to Class A ordinary shares immediately prior to the completion of the IPO (Note 3).

Accounting and measurement for preferred shares

The Company classifies the Preferred Shares in mezzanine equity of the consolidated balance sheets because they are redeemable at the holders’ option any time upon the occurrence of certain events outside of the Company’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs.

For each reporting period, the Company accretes the carrying amount of the Preferred Shares to the redemption value, which is the higher of (1) the result of using effective interest rate method to accrete the Preferred Shares to the redemption prices on the Optional Redemption Date, or (2) the fair market value of the Preferred Shares on the reporting date. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in-capital, or in the absence of additional paid-in-capital, by charges to accumulated deficit until the Preferred Shares were converted. For the years ended December 31, 2020, 2021 and 2022, the accretion of the Preferred Shares was RMB3,206,324, RMB4,729,719 and nil, respectively.

The Company has determined that host contract of the Preferred Shares is more akin to an equity host, given the Preferred Shares holders have participating right in the Company like that of the ordinary shareholders, along with other equity-like features in the terms of the Preferred Shares, including the conversion and dividend rights. The Company has assessed each embedded feature in the Preferred Shares, and determined that the conversion and dividend feature to be clearly and closely related to the equity host, and none of these embedded features needs to be bifurcated from the equity host. The Company also assessed the liquidation feature and determined that the debt-like feature does not meet the net settlement and would not result in bifurcation.

The Company has determined that there were no beneficial conversion features identified for any of the Preferred Shares because the effective conversion price was greater than the fair value of the ordinary shares. To the extent a conversion price adjustment occurs, as described above, the Company will re-evaluate whether or not a beneficial conversion feature should be recognized.

The Company’s Preferred Shares activities for the years ended December 31, 2020, 2021 and 2022 are summarized below:


	Series Seed Convertible		Series A Convertible		Series A‑1 Convertible		Series B‑1 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2020	77,884,154	301,268	33,382,717	139,432	75,917,925	322,883	7,467,196	34,538
Repurchase of Series Seed and Series A Preferred Shares from holders	—	—	—	—	—	—	—	—
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	847,639	—	358,299	—	812,973	—	78,078
Issuance of Series A‑1 Convertible Redeemable Preferred Shares upon exercise of warrants by an investor	—	—	—	—	885,269	11,262	—	—
FX exchange translation	—	(57,008)	—	(25,008)	—	(57,563)	—	(5,788)
Balance as of December 31, 2020	77,884,154	1,091,899	33,382,717	472,723	76,803,194	1,089,555	7,467,196	106,828


									Receivable
									from a holder
	Series B‑2 Convertible		Series C‑1 Convertible		Series C‑2 Convertible		Series D‑1 Convertible		of Series C‑2
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Preferred
	Shares		Shares		Shares		Shares		share	Total
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Amount	Amount
Balance as of January 1, 2020	40,228,492	194,351	57,653,035	383,148	10,224,598	69,880	—	—	(24,417)	1,421,083
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	42,329,835	713,422	22,765	736,187
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	415,254	—	537,890	—	94,011	—	62,180	—	3,206,324
Issuance of Series A‑1 Convertible Redeemable Preferred Shares upon exercise of warrant by an investor	—	—	—	—	—	—	—	—	—	11,262
FX exchange translation	—	(31,514)	—	(50,244)	—	(9,044)	—	(2,465)	1,652	(236,982)
Balance as of December 31, 2020	40,228,492	578,091	57,653,035	870,794	10,224,598	154,847	42,329,835	773,137	—	5,137,874


	Series Seed Convertible		Series A Convertible		Series A‑1 Convertible		Series B‑1 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2021	77,884,154	1,091,899	33,382,717	472,723	76,803,194	1,089,555	7,467,196	106,828
Re-designation of previously issued preferred shares to Series D-2 Preferred Shares	(13,812,613)	(208,136)	(8,310,604)	(125,999)	(6,171,252)	(93,644)	—	—
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	889,582	—	347,662	—	957,778	—	99,626
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	—	—
FX exchange translation	—	16,047	—	5,829	—	18,922	—	2,090
Conversion of preferred shares to Class A ordinary shares	(64,071,541)	(1,789,392)	(25,072,113)	(700,215)	(70,631,942)	(1,972,611)	(7,467,196)	(208,544)
Balance as of December 31, 2021	—	—	—	—	—	—	—	—



	Series B‑2 Convertible		Series C‑1 Convertible		Series C‑2 Convertible		Series D‑1 Convertible		Series D‑2 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares		Shares		Total
	Number of		Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Amount
Balance as of January 1, 2021	40,228,492	578,091	57,653,035	870,794	10,224,598	154,847	42,329,835	773,137	—	—	5,137,874
Re-designation of previously issued preferred shares to Series D-2 Preferred Shares	—	—	—	—	(4,466,684)	(69,801)	—	—	32,761,153	601,616	104,036
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	534,164	—	723,457	—	74,859	—	398,193	—	704,398	4,729,719
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	—	—	43,624,956	793,798	793,798
FX exchange translation	—	11,247	—	15,884	—	902	—	10,859	—	33,501	115,281
Conversion of preferred shares to Class A ordinary shares	(40,228,492)	(1,123,502)	(57,653,035)	(1,610,135)	(5,757,914)	(160,807)	(42,329,835)	(1,182,189)	(76,386,109)	(2,133,313)	(10,880,708)
Balance as of December 31, 2021	—	—	—	—	—	—	—	—	—	—	—

Accounting for warrant

The Company classified the warrant as financial liabilities under ASC 480 as the warrants conditionally obligated the Company to ultimately transfer assets. For the warrant issued in connection with the Series A-1 Preferred Shares, the proceeds were allocated first to the warrant based on its fair value and the residual was allocated to the Series A-1 Preferred Shares. For the warrant issued in connection with the loan, the warrant was recorded at its fair value when the loan was obtained with a corresponding reduction to the carrying amount of the loan as the debt issuance cost and was amortized on a straight-line basis over the loan period. The warrants were subsequently measured at fair value with changes in fair value recorded in the consolidated statements of comprehensive income/(loss).

The Company recognized a loss of RMB7,442 from the change in fair value of the warrant liabilities for the years ended December 31, 2020.

The roll forward of major Level 3 investments are as following:


	Fair Value Measurement Using
	Unobservable Inputs (Level 3)
	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Fair value of Level 3 liability at the beginning of the year	2,384	—	—
The change in fair value of the liability	7,442	—	—
Exercise of warrant	(9,631)	—	—
Foreign currency translation	(195)	—	—
Fair value of Level 3 liability at the end of the year	—	—	—

The warrant is not traded in an active securities market, and as such, with the assistance from an independent valuation firm, the Company estimated its fair value using the binomial option pricing model as of December 10, 2020, the date of exercise, using the following main assumptions:


	As of		As of	As of
	December 10,		December 31,	December 31,
	2020		2021	2022
Fair value of Series A-1 Preferred Shares (US$)	1.8517		—	—
Dividend yield	—	%	—	—
Time to maturity	—		—	—
Risk-free interest rate	0.20	%	—	—
Expected volatility	68.45	%	—	—

Share-based compensation

12 Months Ended

Dec. 31, 2022

Share-based compensation

Share-based compensation

13. Share-based compensation

Compensation expenses recognized for share-based awards granted by the Group were as follows:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	24,015	23,688	21,383
Research and development expenses	1,378	1,462	1,679
Sales and marketing expenses	4,144	5,252	4,983
Cost of revenues	218	271	200
Total	29,755	30,673	28,245

Compensation expenses recognized for different awards were as follows:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Vesting of restricted shares	12,415	6,607	—
Vesting of RSUs	17,340	20,130	17,878
Vesting of share options	—	3,936	10,367
Total	29,755	30,673	28,245

There was no income tax benefit recognized in the consolidated statements of comprehensive income/(loss) for share-based compensation expense and the Group did not capitalize any share-based compensation expense as part of the cost of any assets for the years ended December 31, 2020, 2021 and 2022. The Group makes an entity-wide accounting policy election to account for forfeitures when they occur.

(a)

Restricted shares

As disclosed in Note 10, on July 25, 2017, all 81,000,000 ordinary shares of the Company issued to Smart Share Holding were designated as restricted shares of the Company granted to the founders who are the owners of Smart Share Holding, in consideration for their continuous service to the Company as employees. Each founder was ascribed a particular number of the Company’s ordinary shares based on that founder’s ownership of Smart Share Holding.

The restricted shares shall be legally vested and released in equal 25% instalments over the four-year period from July 25, 2017 on each anniversary. Upon Qualified Public Offering, all the unvested restricted shares shall be vested immediately. Upon vesting, a founder is entitled to receive from Smart Share Holding any dividends received on their attributed portion of Company shares held by Smart Share Holding, and direct Smart Share Holding to dispose of their attributed portion of Company shares and receive the sale proceeds. Upon termination of employment with the Company, any unvested shares attributed to a founder can be repurchased by the Company for par value, and the founder would lose their economic rights associated with those shares. Accordingly, as the overall substance of the arrangement is a grant of share-based awards to founders, the Company has recorded share-based compensation expense on these awards.

The following table summarizes the Group’s restricted shares activities:


	Numbers of shares	Weighted-average grant date fair value
		US$
Unvested at December 31, 2019	40,500,000	0.0889
Vested	(20,250,000)	0.0889
Unvested at December 31, 2020	20,250,000	0.0889
Vested	(20,250,000)	0.0889
Unvested at December 31, 2021 and 2022	—	—

Share-based compensation expense for the restricted shares was measured using the estimated fair value of the Company’s ordinary shares of US$0.0889 at the grant date and is amortized to the consolidated statements of comprehensive income/(loss) on a straight-line basis over the vesting term.

For the years ended December 31, 2020, 2021 and 2022, the total fair value of restricted shares vested were RMB12,415, RMB6,607 and nil, respectively.

Upon the completion of IPO, the 20,250,000 of unvested restricted shares owned by the founders of the Group were vested immediately according to the IPO vesting condition.

As of December 31, 2021 and 2022, there was not any unrecognized shared-based compensation expense related to restricted shares.

(b)

Smart Share CGY and Smart Share Brothers’ RSUs scheme (“RSUs scheme”)

As disclosed in Note 11, Smart Share CGY and Smart Share Brothers are solely owned by the founder of the Company and are the consolidated VIEs of the Company. Both Smart Share CGY and Smart Share Brothers were established to facilitate the adoption of an RSUs scheme on behalf of the Company. The RSUs scheme is administered by the board of directors of the Company and RSUs were granted to the Company’s employees and external consultants. All the ordinary shares of Smart Share CGY and Smart Share Brothers are authorized and issued to the founder to facilitate the adoption of the RSUs scheme.

The number of authorized and issued shares of Smart Share CGY and Smart Share Brothers were 44,841,250 and 2,000,000, respectively, which mirrored the number of the Company’s ordinary shares issued to Smart Share CGY and Smart Share Brothers, respectively. The founder holds the shares of Smart Share CGY and Smart Share Brothers on behalf of the Company and beneficiaries of the RSUs scheme. Other than holding the Company’s ordinary shares, Smart Share CGY and Smart Share Brothers do not have any other assets. The ordinary shares issued to Smart Share CGY and Smart Share Brothers are presented as treasury shares in the Company’s consolidated balance sheets.

Upon vesting, the Company’s employees and external consultants are entitled to the ordinary shares of Smart Share CGY or Smart Share Brothers, and the Company directs the founder to deliver such shares. Holders of vested shares of Smart Share CGY or Smart Share Brothers are entitled to the economics of the vested shares, including dividends and sale proceeds of these shares. Any proceeds received by Smart Share CGY or Smart Share Brothers on Company shares that have not been allocated to employees and external consultants are required to be returned to the Company. The RSUs granted by Smart Share CGY vest in the four-year period from the grant date, with 25% of the RSUs to be vested upon each anniversary. The RSUs granted by Smart Share Brothers are fully vested on the grant date. If an employee or external consultant terminates service to the Group, unvested shares of Smart Share CGY and Smart Share Brothers can be repurchased for nominal amounts. The Group has the right to repurchase vested shares of Smart Share CGY and Smart Share Brothers at a price based on recent transaction prices involving the Company’s stock. The ordinary shares of the Company held by Smart Share CGY and Smart Share Brothers are unchanged as a result of these transactions.

In January 2021, the Company’s board of directors approved the modification of Smart Share CGY and Smart Share Brothers’ RSUs scheme to allow the grantees to directly hold the ordinary shares or RSUs of the Company, under which each vested RSU of Smart Share CGY and Smart Share Brothers’ RSUs scheme was exchanged for one ordinary share of the Company with an equivalent economic value, and each outstanding unvested RSU under the Smart Share CGY’s RSUs scheme was exchanged for one RSU of the Company with an equivalent economic value. The modification did not change the vesting conditions and the remaining vesting period. There was no incremental share-based compensation cost recorded in connection with this modification.

The following table summarizes the Group’s RSUs activities:


	RSUs	Weighted Average
	Outstanding	Grant Date Fair Value
		US$
Unvested at December 31, 2019	20,798,863	0.3119
Granted	7,775,835	0.9203
Vested	(6,060,842)	0.2753
Forfeited	(1,608,861)	0.4077
Unvested at December 31, 2020	20,904,995	0.5415
Vested	(7,629,599)	0.4302
Forfeited	(861,193)	0.6266
Unvested at December 31, 2021	12,414,203	0.6037
Vested	(5,341,452)	0.5265
Forfeited	(713,418)	0.7401
Unvested at December 31, 2022	6,359,333	0.6531

The fair value of each granted RSUs is estimated based on the fair value of the underlying ordinary share of the Company on the date of grant, less any nominal amounts paid for such shares. The fair value of the RSUs granted by Smart Share Brothers was recognized as share-based compensation expense immediately on the grant date. The fair value of the RSUs granted by Smart Share CGY was amortized to the consolidated statements of comprehensive income/(loss) as share-based compensation expense on a straight-line basis over the vesting term.

The Company recognized share-based compensation expenses of RMB17,340, RMB20,130 and RMB17,878 related to RSUs in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2020, 2021 and 2022, respectively.

For the years ended December 31, 2021 and 2022, as agreed with the employees in connection with the vesting of their RSUs, the employees transferred 2,306,690 and 91,860 vested RSUs to the Company respectively, of which the aggregated fair value was RMB21,848 and RMB362 respectively on the dates of transfer. The fair value of the transferred shares was determined by the market prices on the dates of transfer and was equivalent to the individual income taxes that the employees were liable to for the vesting of RSUs and the Company would settle with the local tax authority on behalf of the employees. The Company recorded the withheld shares in treasury shares.

For the years ended December 31, 2020, 2021 and 2022, the total fair value of RSUs vested were RMB11,504, RMB22,661 and RMB19,423, respectively.

As of December 31, 2021 and 2022, there were RMB39,525 and RMB17,413 of unrecognized shared-based compensation expenses related to the RSUs, which is expected to be recognized over a weighted-average period of 2.08 and 1.20 years.

(c)Share Options

In January 2021, the shareholders and board of directors approved the 2021 Share Incentive Plan to attract and retain qualified personnel, provide incentives to employees, directors and consultants, and promote the success of the Group’s business. The 2021 Share Incentive Plan permits the awards of options, restricted share units, restricted shares or other types of award approved by a committee that administers the plan. The 2021 Share Incentive Plan assumed all awards that the Company had granted previously. The terms and conditions of the survived awards remain unchanged and continue to be effective and binding under the 2021 Share Incentive Plan.

In August 2021, the Board approved the Company to grant share options and restricted shares to purchase up to 5,055,208 Class A ordinary shares under the 2021 Share Incentive Plan. Accordingly, as of December 31, 2021, the Company granted 5,009,222 share options. The Company didn’t grant any share options in 2022.

Share options granted under the 2021 Incentive Plan have a contractual term of ten years from the stated grant date and are generally subject to a four-year vesting schedule. Depending on the nature and the purpose of the grant, share-based awards generally vest 25% upon the first anniversary of the vesting commencement date, and 25%, 25% and 25% in following years thereafter.

The following table summarizes the Group’s option activities:


		Weighted	Weighted
		Average	Average
		Grant	Remaining	Aggregate
	Share	Date Fair	Contractual	Intrinsic
	Option	Value	Life	Value
		US$	In years
Outstanding as of December 31, 2020	—	—	—	—
Granted	5,009,222	1.4350	—	—
Cancelled	(228,624)	1.4350	—	—
Outstanding as of December 31, 2021	4,780,598	1.4350	9.64	21,945
Exercised	(55,960)	1.4350	—	—
Cancelled	(451,726)	1.4350	—	—
Outstanding as of December 31, 2022	4,272,912	1.4350	8.64	16,667
Vested and expected to vest as of December 31, 2022	4,272,912	1.4350	8.64	16,667
Exercisable as of December 31, 2022	1,064,156	1.4350	8.64	4,151

The Group uses binomial option-pricing model determine fair value of the share-based awards. The estimated fair value of each option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions:


	Year ended December 31, 2021
Exercise price (US$)	0.01
Fair value of the ordinary share on the date of option grant (US$)	1.445
Expected volatility	62.97	%
Risk-free interest rate (per annum)	1.25	%
Expected dividend yield	—
Exercise multiple	2.2
Contractual term (in years)	10
Expected forfeiture rate (post-vesting)	5.24	%

Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Group has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. The exercise multiple is estimated as the ratio of fair value of underlying shares over the exercise price as at the time the option is exercised, based on a consideration of empirical studies on the actual exercise behavior of employees. Contractual term is the contract life of the options.

Share-based compensation expense is recorded on a straight-line basis over the requisite service period, which is generally four years from the date of grant. The Company recognized share-based compensation expenses of nil, RMB3,936 and RMB10,367 for share options granted in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2020, 2021 and 2022, respectively.

As of December 31, 2021 and 2022, there was RMB40,601 and RMB26,456 of unrecognized compensation expense related to unvested share options, which is expected to be recognized over a weighted average period of 3.64 and 2.64 years, respectively.

Loss per share

12 Months Ended

Dec. 31, 2022

Net loss per share attributable to ordinary shareholders of Smart Share Global Limited

Loss per share

14. Loss per share

Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 Earnings per share for the years ended December 31, 2020, 2021 and 2022 as below:


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net income/(loss)	75,427	(124,615)	(711,240)
Less: Accretion on convertible redeemable preferred shares to redemption value	(3,206,324)	(4,729,719)	—
Less: deemed dividend to the shareholders	—	(104,036)	—
Net loss attributable to ordinary shareholders - basic and diluted	(3,130,897)	(4,958,370)	(711,240)
Denominator:
Weighted average number of ordinary shares outstanding - basic and diluted	54,506,733	406,567,584	518,307,406
Net loss per share - basic and diluted	(57.44)	(12.20)	(1.37)

For the year ended December 31, 2020, the effects of all outstanding Preferred Shares, restricted shares and RSUs have been excluded from the computation of diluted loss per share as their effects would be antidilutive. For the years ended December 31, 2021 and 2022, the effects of all outstanding RSUs and share options have been excluded from the computation of diluted loss per share as their effects would be antidilutive.

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows:


	Year Ended December 31,
	2020	2021	2022
Shares issuable upon vesting of RSUs	12,973,563	10,723,068	490,148
Shares issuable upon vesting of share options	—	2,821,137	—
Shares issuable upon conversion of the Preferred Shares	305,355,746	—	—
Restricted shares that become outstanding upon vesting	28,022,113	—	—
Warrant to purchase of Preferred Shares	—	—	—
Total	346,351,422	13,544,205	490,148

Related party transactions and balances

12 Months Ended

Dec. 31, 2022

Related party transactions and balances

15. Related party transactions and balances

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

The following entities are considered to be related parties to the Group:


Name of related parties		Relationship with the Group
People Better Limited (“People Better”)		A shareholder with significant influence over the Group
ZMI		Subject to common significant influence by one of the Company’s directors

The Group had the following balances with the major related parties:


	As of December 31,
	2021	2022
	RMB	RMB
Long-term prepayments to a related party
Long-term prepayments to ZMI (a)	20,037	71
Amounts due to related parties - current
Due to ZMI (b)	23,290	—
Amounts due to related parties - non-current
Due to the Nominee Shareholders of Shanghai Zhixiang (Note 1)	1,000	1,000

(a)	It represents the balance prepaid for power banks and cabinets purchase, which are non-current assets.

(b)	It represents the notes payable issued by the Group for power banks and cabinets purchase. The terms of notes are ranged from 3 to 6 months with interest free.

The Group had the following transactions with the major related parties:


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of power banks and cabinets from ZMI	233,605	154,127	18,306
Proceeds of borrowings from People Better (c)	50,000	—	—
Repayment of borrowings from People Better (c)	50,000	—	—
Payment of deposit to People Better (c)	8,600	—	—
Proceeds of deposit refund from People Better (c)	8,600	—	—
Payment of interest to People Better (c)	1,032	—	—

(c)

In May 2020, the Group entered into a capital lease agreement of cabinets with People Better for 1 year with selling price of RMB50,000 and total rental payment of RMB51,613. The Group also paid a deposit of RMB8,600 to People Better for the lease, which was refundable at the end of lease. The Group has the option to purchase the cabinets back at the nominal price at the end of lease term. Considering the existence of bargain purchase option, the lease was accounted for as a capital lease. The Group did not derecognize the cabinets from property, equipment and software and continued depreciating the assets. The transaction was accounted for as a failed sale-leaseback transaction and the proceeds of RMB50,000 received from People Better was recognized as a financial liability in amount due to related party — current. Rental payments were allocated between interest expense and principal repayment of the financial liability and the Group used the rate of return implicit in the lease of 6% to determine the amount of interest expenses.

In November 2020, the Group repaid remaining lease payments in advance and received deposit refund of RMB8,600. Total interest expense was amount to RMB1,032, which included early repayment penalty.

Commitments and contingencies

12 Months Ended

Dec. 31, 2022

Commitments and contingencies

Commitments and contingencies

16. Commitments and contingencies

(a) Operating lease agreement

As of December 31, 2021, the Group entered into various non-cancelable operating lease agreements for its offices and warehouses with remaining lease terms of up to 2.5 years. See Note 8 to these consolidated financial statements for additional details on the Group’s operating lease commitments.

(b) Capital commitments

The Group’s capital commitments primarily relate to commitments on purchase of cabinets and power banks. As of December 31, 2021 and 2022, capital commitments relating to purchase of cabinets and power banks were approximately RMB80,147 and RMB109,638, respectively.

The Group is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Group does not anticipate that the final outcome arising out of any such matter will have a material adverse effect on our consolidated financial position, cash flows or results of operations on an individual basis or in the aggregate. As of December 31, 2021 and 2022, the Group is not a party to any material legal or administrative proceedings.

In February 2021, Mr. Mars Guangyuan Cai, the founder and chief executive officer of the Company who, as one of the Nominee Shareholders, holds 62% equity interest of Shanghai Zhixiang, received a lawsuit filed by two individuals alleging that Mr. Cai had failed to fulfil an alleged promise Mr. Cai was claimed to have made when Shanghai Zhixiang had not been incorporated to gift 3% equity interest of Shanghai Zhixiang to the plaintiffs. On January 25, 2022, the case was ruled in favor of Mr. Mars Guangyuan Cai by a court of competent jurisdiction in the PRC as the final verdict. This lawsuit did not have any impact on the Company’s consolidated financial statements.

Restricted net assets

12 Months Ended

Dec. 31, 2022

Restricted net assets

Restricted net assets

17. Restricted net assets

Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiaries and consolidated VIE incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s subsidiaries and consolidated VIE in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s subsidiaries and consolidated VIE incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. There are no significant differences between US GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiaries and the consolidated VIE in the PRC.

As of December 31, 2021 and 2022, the total restricted net assets of the Group’s subsidiaries and consolidated VIE incorporated in PRC and subjected to restriction amounted to approximately RMB1,611,371 and RMB1,294,247, respectively. Even though the Group currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Group may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. There is no other restriction on the use of proceeds generated by the Group’s subsidiaries and consolidated VIE to satisfy any obligations of the Group.

Condensed financial information of the parent company

12 Months Ended

Dec. 31, 2022

Condensed financial information of the parent company

Condensed financial information of the parent company

18. Condensed financial information of the parent company

The Group performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company only.

The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.

The parent company did not have significant capital and other commitments, long-term obligations, other long-term debt, or guarantees as of December 31, 2021 and 2022.

Basis of presentation

The Company’s accounting policies are the same as the Group’s accounting policies.

For the Parent only condensed financial information, the Company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments — Equity Method and Joint Ventures.

Such investments are presented on the Condensed Balance Sheets as “Investments in subsidiaries” and shares in the subsidiaries’ loss are presented as “Shares of loss of subsidiaries” on the Condensed Statements of Comprehensive Income/(Loss). The parent company only condensed financial information should be read in conjunction with the Group’ consolidated financial statements.

Condensed balance sheets


		As of December 31,
		2021	2022
		RMB	RMB
ASSETS
Current Assets:
Cash and cash equivalents		59,079	5,390
Prepayments and other current assets		987	802
Total current assets		60,066	6,192
Non-current Assets:
Investment in subsidiaries		1,919,167	1,136,046
Amounts due from related parties		1,300,477	1,545,429
Total non-current assets	.	3,219,644	2,681,475
Total assets	.	3,279,710	2,687,667
LIABILITIES, AND SHAREHOLDER’S EQUITY
Current Liabilities:
Salary and welfare payable		—	104
Accruals and other current liabilities		6,606	8,897
Amounts due to related parties		24,591	24,918
Total current liabilities		31,197	33,919
Non-current Liabilities:
Other non-current liabilities		16,489	12,443
Total Non-current liabilities		16,489	12,443
Total liabilities		47,686	46,362
Shareholder’s equity:
Ordinary shares (par value of US$0.0001, nil shares authorized, issued, and outstanding as of December 31, 2021 and 2022, respectively)		—	—
Class A ordinary shares (par value of US$0.0001, 535,052,809 and 535,052,809 shares authorized, 452,898,177 and 452,898,177 issued, and 443,533,171 and 444,390,065 outstanding as of December 31, 2021 and 2022, respectively)		296	296
Class B ordinary shares (par value of US$0.0001, 73,973,970 and 73,973,970 shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively)		51	51
Treasury shares (9,365,006 and 8,508,112 shares as of December 31, 2021 and 2022, respectively)		(27,784)	(6,816)
Additional paid-in capital		11,799,301	11,786,482
Statutory reserves		16,593	16,593
Accumulated other comprehensive income		51,556	163,928
Accumulated deficit		(8,607,989)	(9,319,229)
Total shareholders’ equity		3,232,024	2,641,305
Total liabilities, and shareholders’ equity		3,279,710	2,687,667

Condensed statements of comprehensive loss


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	(1,702)	(6,163)	(7,859)
Other operating income	—	3,946	5,379
Loss from operations	(1,702)	(2,217)	(2,480)
Interest and investment income	—	547	104
Foreign exchange gains, net	—	25	—
Fair value changes of warrant liabilities	(7,442)	—	—
Equity in income/(loss) of subsidiaries and the VIEs	84,571	(122,970)	(708,864)
Income/(loss) before income tax expense	75,427	(124,615)	(711,240)
Net income/(loss)	75,427	(124,615)	(711,240)
Accretion of convertible redeemable preferred shares	(3,206,324)	(4,729,719)	—
Deemed dividend of preferred shareholders	—	(104,036)	—
Net loss attributable to ordinary shareholders of Smart Share Global Limited	(3,130,897)	(4,958,370)	(711,240)
Net income/(loss)	75,427	(124,615)	(711,240)
Other comprehensive income/(loss)	—	—	—
Foreign currency translation adjustments, net of nil tax	232,957	(150,267)	112,372
Total comprehensive income/(loss)	308,384	(274,882)	(598,868)
Accretion of convertible redeemable preferred shares	(3,206,324)	(4,729,719)	—
Deemed dividend of preferred shareholders	—	(104,036)	—
Comprehensive loss attributable to ordinary shareholders of Smart Share Global Limited	(2,897,940)	(5,108,637)	(598,868)

Condensed statements of cash flows


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Operating activities with external parties	—	23,705	(5,559)
Net cash generated from/(used in) operating activities	—	23,705	(5,559)

Investments in subsidiaries	(58,473)	(1,048,953)	—
Loans to subsidiaries	—	(1,300,477)	(31,394)
Investing activities with external parties	—	—	920
Net cash used in investing activities	(58,473)	(2,349,430)	(30,474)

Financing activities with external parties	733,569	1,679,515	(19,734)
Net cash generated from/(used in) financing activities	733,569	1,679,515	(19,734)

Effect of foreign exchange rate changes on cash and cash equivalents	(1,438)	(17,475)	2,078

Net increase/(decrease) in cash and cash equivalents	673,658	(663,685)	(53,689)
Cash and cash equivalents at beginning of year	49,106	722,764	59,079
Cash and cash equivalents at end of year	722,764	59,079	5,390

Summary of principal accounting policies (Policies)

12 Months Ended

Dec. 31, 2022

Summary of principal accounting policies

Basis of presentation

(a) Basis of presentation

The accompanying consolidated financial statements have been prepared on a going concern basis.

Consolidation

(b) Consolidation

The Company’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the primary beneficiary.

All transactions and balances among the Company, its subsidiaries and the consolidated VIEs have been eliminated upon consolidation.

Use of estimates

Functional currency and foreign currency translation

(d) Functional currency and foreign currency translation

Fair value measurements

(e) Fair value measurements

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group’s assets and liabilities measured at fair value on a recurring basis are summarized below:


	Fair Value Measurement Using Significant
	Other Observable Inputs (Level 2)
	As of December 31,
	2021	2022
	RMB	RMB
Short-term investments	1,418,721	2,091,198
Derivative liabilities	—	(2,592)

Refer to Note 12 for roll forward of level 3 financial instruments and key assumptions used by the Group in estimating the fair value of warrant liabilities.

Convenience translation

(f) Convenience translation

Cash and cash equivalents

(g) Cash and cash equivalents

Restricted cash

(h) Restricted cash

Cash and cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on consolidated balance sheets as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	1,296,924	948,773
Restricted cash	19,671	14,608
Long-term restricted cash	20,000	21,000
Total	1,336,595	984,381

Short-term investments

(i) Short-term investments

Derivative instruments

(j) Derivative instruments

As of December 31, 2021, and 2022, and for the years ended December 31, 2020, 2021 and 2022, the balance of the derivative instruments and the total amount of fair value changes are not material.

Accounts receivable, net

(k) Accounts receivable, net

The following table summarized the details of the Group’s allowance for doubtful accounts:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	5,025	3,268	5,986
Provision for doubtful accounts	5,302	3,206	3,435
Write-offs	(7,059)	(488)	(4,335)
Balance at the end of year	3,268	5,986	5,086

Inventories

(l) Inventories

Property, equipment and software, net

(m) Property, equipment and software, net


Cabinets		4 to 5 years
Power banks		3 years
Computer and electronic equipment		3 years
Production tools		5 years
Software		10 years
Others		3 to 5 years
Leasehold improvements		Shorter of the estimated useful lives or the lease term

Capitalized Software Development Cost

(n) Capitalized Software Development Cost

Impairment of long-lived assets

(o) Impairment of long-lived assets

Revenue recognition

(p) Revenue recognition

Mobile device charging business

The mobile device charging business is operated under a direct model or a network partner model as follows:

●

Transaction with network partners - sales of the cabinets

The roll forward of the aggregated financing payables for both current and non-current are as below:


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	142,156	244,151	169,833
Addition	115,387	3,445	1,758
Accretion of interest	32,097	37,806	31,196
Repayment	(45,489)	(115,569)	(69,738)
Derecognition (*)	—	—	(24,496)
Balance at the end of year	244,151	169,833	108,553

Transaction with network partners – upfront fee

Power bank sales

Other revenues

Other revenues primarily comprise of revenues generated from advertising services and sales of merchandises.

Research and development expenses

(q) Cost of revenues

(r) Research and development expenses

Sales and marketing expenses

(s) Sales and marketing expenses

General and administrative expenses

(t) General and administrative expenses

Employee benefits

(u) Employee benefits

Government grants

(v) Government grants

Share-based compensation

(w) Share-based compensation

In accordance with ASU 2016-09, the Group makes an entity-wide accounting policy election to account for forfeitures when they occur.

Leases

(x) Leases

Income tax

(y) Income tax

Uncertain tax positions

Statutory reserves

(z) Statutory reserves

For the years ended December 31, 2020, 2021 and 2022, the Group has provided RMB4,678, nil and nil appropriations to statutory surplus fund, respectively.

Comprehensive income/(loss)

(aa) Comprehensive income/(loss)

Income/(loss) per share

(ab) Income/(loss) per share

Dividends

(ac) Dividends

Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2020, 2021 and 2022.

Treasury shares

(ad) Treasury shares

Segment reporting

(ae) Segment reporting

Recent accounting pronouncements

(af) Recent accounting pronouncements

Recently adopted accounting pronouncements

Recently issued accounting pronouncements not yet adopted

Organization and nature of operations (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of company's principal subsidiaries and consolidated VIEs

As of December 31, 2022, the Company’s principal subsidiaries and the consolidated VIEs are as follows:


			Equity
	Place of	Date of	economic		Principal
Name of subsidiaries and consolidated VIEs	incorporation	incorporation	interest held		activities
Subsidiaries:
Smart Share International Limited	Hong Kong, China	August 15,2017	100	%	Investment holding
Zhixiang Technology (Shanghai) Co., Ltd. (“Zhixiang WFOE”)	PRC	June 23,2017	100	%	Mobile device charging business
Zhixiang Investment Co., Ltd. (“Zhixiang Investment WFOE”)	PRC	February 26,2021	100	%	Investment holding
Zhitong (Xinyi) Technology Co., Ltd.	PRC	March 22, 2021	100	%	Mobile device charging business
Zhilang Technology (Tianjin) Co., Ltd.	PRC	April 1,2021	100	%	Mobile device charging business
Zhisheng Technology (Tianjin) Co., Ltd.	PRC	June, 2021	100	%	Research and development function
Consolidated VIEs
Shanghai Zhixiang Technology Co., Ltd. (“Shanghai Zhixiang”)	PRC	April 28,2017	100	%	Research and development function

Schedule of assets, liabilities, results of operations and changes in cash and cash equivalents of the consolidated VIEs


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	606	90
Accounts receivable, net	1,470	—
Prepayments and other current assets	1,317	4,473
Amounts due from non-VIE subsidiaries of the Company	603,009	591,174
Total current assets	606,402	595,737
Other non-current assets	22	6
Total non-current assets	22	6
Total assets	606,424	595,743

Salary and welfare payable	1,745	2,376
Tax payable	7,548	7,442
Amounts due to non-VIE subsidiaries of the Company	445,029	442,819
Accruals and other current liabilities	1,240	544
Total current liabilities	455,562	453,181
Total liabilities	455,562	453,181

Total shareholders’ equity	150,862	142,562


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Third party revenues	9,413	16,386	11
Inter-company service charge (a)	406,730	103,948	2,554
Third-party costs and expenses	(101,895)	(66,477)	(10,015)
Inter-company costs and expenses	(276,578)	—	—
Other operating loss	(357)	(11,359)	(1,566)
Income from non-operations	—	—	8
Income/(loss) before income tax expense	37,313	42,498	(9,008)
Less: Income tax expense	—	(3,914)	—
Net income/(loss)	37,313	38,584	(9,008)


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Intercompany payments from service charge	(37,271)	(18,255)	(6,500)
Intercompany receipts from service charge	124,193	88,000	14,600
Operating activities with external parties	(85,138)	(73,720)	(8,616)
Net cash generated from/(used in) operating activities	1,784	(3,975)	(516)
Net increase/(decrease) in cash and cash equivalents	1,784	(3,975)	(516)

For the years ended December 31, 2020, 2021 and 2022, there was no cash generated from or used in investing and financing activities of the consolidated VIEs.

Summary of principal accounting policies

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Summary of principal accounting policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of assets and liabilities measured at fair value on a recurring basis


	Fair Value Measurement Using Significant
	Other Observable Inputs (Level 2)
	As of December 31,
	2021	2022
	RMB	RMB
Short-term investments	1,418,721	2,091,198
Derivative liabilities	—	(2,592)

Schedule of cash and cash equivalents and restricted cash as reported in the consolidated statements of cash flows


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	1,296,924	948,773
Restricted cash	19,671	14,608
Long-term restricted cash	20,000	21,000
Total	1,336,595	984,381

Summary of allowance for doubtful accounts


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	5,025	3,268	5,986
Provision for doubtful accounts	5,302	3,206	3,435
Write-offs	(7,059)	(488)	(4,335)
Balance at the end of year	3,268	5,986	5,086

Summary of useful life of property, equipment and software


Cabinets		4 to 5 years
Power banks		3 years
Computer and electronic equipment		3 years
Production tools		5 years
Software		10 years
Others		3 to 5 years
Leasehold improvements		Shorter of the estimated useful lives or the lease term

Schedule of aggregate financing payables current and non-current


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of year	142,156	244,151	169,833
Addition	115,387	3,445	1,758
Accretion of interest	32,097	37,806	31,196
Repayment	(45,489)	(115,569)	(69,738)
Derecognition (*)	—	—	(24,496)
Balance at the end of year	244,151	169,833	108,553

Certain risks and concentration (Tables)

12 Months Ended

Dec. 31, 2022

Summarized customers with greater than 10% of the account receivables


	As of December 31,
	2021		2022
Customer A	17	%	11	%
Customer B	*		21	%
Customer C	*		12	%

*	Less than 10%

Prepayments and other current assets (Tables)

12 Months Ended

Dec. 31, 2022

Prepayments and other current assets

Schedule of prepayments and other current assets


	As of December 31,
	2021	2022
	RMB	RMB
Prepayment to location partners^(a)	357,060	74,301
VAT receivables	77,527	10,450
Prepayment to service providers^(b)	9,753	116,342
Deposits	14,553	14,400
Prepaid expenses	13,133	9,577
Advance payment of income tax	5,383	—
Others	10,131	3,602
Total	487,540	228,672

(a)

(b)

Property, equipment and software, net (Tables)

12 Months Ended

Dec. 31, 2022

Property, equipment and software, net

Schedule of property, equipment and software, net


	As of December 31,
	2021	2022
	RMB	RMB
Cabinets	1,059,963	1,159,455
Power banks	675,611	833,257
Construction in progress	103,157	150,654
Software	14,982	23,039
Production tools	9,625	13,847
Computer and electronic equipment	4,543	13,445
Leasehold improvements	3,722	3,902
Others	816	844
Subtotal	1,872,419	2,198,443
Less: Accumulated depreciation	(927,193)	(1,291,203)
Less: Accumulated impairment	—	(20,780)
Property, equipment and software, net	945,226	886,460

Schedule of leased assets under capital leases


	As of December 31,
	2021	2022
	RMB	RMB
Cabinets	173,663	154,822
Less: Accumulated depreciation	(70,621)	(111,183)
Less: Accumulated impairment	—	(3,018)
	103,042	40,621

Other non-current assets (Tables)

12 Months Ended

Dec. 31, 2022

Other non-current assets

Schedule of other non-current assets


	As of December 31,
	2021	2022
	RMB	RMB
Prepayment to location partners^(a)	133,887	11,649
Prepayment for purchase of property, equipment and software	19,920	15,038
Deposits	8,467	7,790
Others	2,712	1,421
Total	164,986	35,898

(a)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases

Schedule of supplemental cash flow information related to leases


		Year Ended December 31,
		2022
		RMB
Cash paid for the rentals included in the lease liabilities		22,850
ROU assets obtained in exchange for operating lease liabilities		10,034

Schedule of supplemental consolidated balance sheet information


		As of December 31,
		2022
		RMB
Right-of-use assets		12,442
Current portion of lease liabilities		9,761
Non-current lease liabilities		854

Schedule of lease term and discount rates


	As of December 31,
	2022

Weighted-average remaining lease term
Operating leases	0.6 years
Weighted-average discount rate
Operating leases	4.7	%


		As of December 31,
		2022
Maturities of lease liabilities were as follows:
2023		10,452
2024		323
Total undiscounted lease payments		10,775
Less: imputed interest		(160)
Total present value of lease liabilities		10,615

Schedule of future minimum lease payments


		As of December 31,
		2021

2022		23,457
2023		5,349
2024		173
Total		28,979

Accounts and notes payable and accruals and other current liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Accounts and notes payable and accruals and other current liabilities

Schedule of accounts and notes payable


	As of December 31,
	2021	2022
	RMB	RMB
Commission payables to network partners and location partners	330,586	546,739
Entry fees payable to location partners	62,135	46,359
Payables for purchase and maintenance of property, equipment and software	154,430	209,367
Others	4,600	7,732
Total	551,751	810,197

Schedule of accruals and other current liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Customer deposits	211,938	229,356
Derivative liabilities	—	2,592
Others	26,572	36,059
Total	238,510	268,007

Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income taxes

Schedule of components of income before tax


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Income/(loss) before tax:
Income/(loss) from PRC entities	102,073	(128,658)	(609,980)
(Loss)/income from overseas entities	(8,082)	4,043	13,216
Total income/(loss) before tax	93,991	(124,615)	(596,764)

Schedule of reconciliation between the effective income tax rate and the PRC statutory income tax rate


	Year Ended
	December 31,
	2020		2021		2022
	RMB		RMB		RMB
Statutory income tax rate	25	%	25	%	25	%
Difference in tax rates of subsidiaries outside PRC	3	%	—	%	—	%
Effect of permanent differences	(3)	%	(7)	%	(6)	%
Research and development super deduction	—		15	%	3	%
Non-taxable income	—		1	%	1	%
Effect of tax holiday	(5)	%	2	%	—
Change in estimates for uncertain tax positions	—		—		(35)	%
Others	—		—		(3)	%
Change in valuation allowance	—	%	(36)	%	(4)	%
Effect tax rate	20	%	—	%	(19)	%

Summary of the aggregate amount and per share effect of the tax holidays


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
The aggregate amount of effect of tax holidays	4,535	2,243	—
Basic and diluted net loss per share effect	0.08	0.01	—

Schedule of the current and deferred portions of income tax expense


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Income tax expense applicable to PRC entities
Current income tax expense	903	(554)	179,907
Deferred income tax expense	17,661	554	(65,431)
Subtotal income tax expense appliable to PRC entities	18,564	—	114,476
Current and deferred income tax expense applicable to overseas entities	—	—	—
Income tax expense, net	18,564	—	114,476

Schedule of significant components of deferred tax assets and liabilities


	As of
	December 31,
	2021	2022
	RMB	RMB
Deferred tax assets:
Deferred upfront fee received	—	117,264
Commissions and entry fees for which invoices have not been collected	2,780	3,043
Accrued salary and welfare payable	8,194	14,500
Accrued expenses	—	5,209
Property, equipment and software, net	12,642	5,037
Inventory write-downs	—	2,318
Net operating loss carry-forwards	96,761	65,531
Others	801	11,036
Less: Valuation allowances	(47,430)	(72,783)
Total deferred tax assets	73,748	151,155
Deferred tax liabilities
Property, equipment and software, net	—	(20,499)
Accrued service revenue (a)	(108,193)	(93,382)
Capitalized software development costs	—	(1,296)
Others	—	(4,992)
Total deferred tax liabilities	(108,193)	(120,169)
Deferred tax (liabilities)/assets, net,	(34,445)	30,986

Summary of net operating loss carry forwards from PRC


At December 31,		RMB
2025		637
2026		237,664
2027		131,203
2031		17,408
2032		18,279
		405,191

Summary of movement of valuation allowance


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	474	621	47,430
Additions	147	46,809	25,353
Balance at the end of the year	621	47,430	72,783

Convertible redeemable preferred shares (Tables)

12 Months Ended

Dec. 31, 2022

Convertible redeemable preferred shares

Schedule of Company's Preferred Shares activities


	Series Seed Convertible		Series A Convertible		Series A‑1 Convertible		Series B‑1 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2020	77,884,154	301,268	33,382,717	139,432	75,917,925	322,883	7,467,196	34,538
Repurchase of Series Seed and Series A Preferred Shares from holders	—	—	—	—	—	—	—	—
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	847,639	—	358,299	—	812,973	—	78,078
Issuance of Series A‑1 Convertible Redeemable Preferred Shares upon exercise of warrants by an investor	—	—	—	—	885,269	11,262	—	—
FX exchange translation	—	(57,008)	—	(25,008)	—	(57,563)	—	(5,788)
Balance as of December 31, 2020	77,884,154	1,091,899	33,382,717	472,723	76,803,194	1,089,555	7,467,196	106,828


									Receivable
									from a holder
	Series B‑2 Convertible		Series C‑1 Convertible		Series C‑2 Convertible		Series D‑1 Convertible		of Series C‑2
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Preferred
	Shares		Shares		Shares		Shares		share	Total
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Amount	Amount
Balance as of January 1, 2020	40,228,492	194,351	57,653,035	383,148	10,224,598	69,880	—	—	(24,417)	1,421,083
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	42,329,835	713,422	22,765	736,187
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	415,254	—	537,890	—	94,011	—	62,180	—	3,206,324
Issuance of Series A‑1 Convertible Redeemable Preferred Shares upon exercise of warrant by an investor	—	—	—	—	—	—	—	—	—	11,262
FX exchange translation	—	(31,514)	—	(50,244)	—	(9,044)	—	(2,465)	1,652	(236,982)
Balance as of December 31, 2020	40,228,492	578,091	57,653,035	870,794	10,224,598	154,847	42,329,835	773,137	—	5,137,874


	Series Seed Convertible		Series A Convertible		Series A‑1 Convertible		Series B‑1 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares
	Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2021	77,884,154	1,091,899	33,382,717	472,723	76,803,194	1,089,555	7,467,196	106,828
Re-designation of previously issued preferred shares to Series D-2 Preferred Shares	(13,812,613)	(208,136)	(8,310,604)	(125,999)	(6,171,252)	(93,644)	—	—
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	889,582	—	347,662	—	957,778	—	99,626
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	—	—
FX exchange translation	—	16,047	—	5,829	—	18,922	—	2,090
Conversion of preferred shares to Class A ordinary shares	(64,071,541)	(1,789,392)	(25,072,113)	(700,215)	(70,631,942)	(1,972,611)	(7,467,196)	(208,544)
Balance as of December 31, 2021	—	—	—	—	—	—	—	—



	Series B‑2 Convertible		Series C‑1 Convertible		Series C‑2 Convertible		Series D‑1 Convertible		Series D‑2 Convertible
	Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred		Redeemable Preferred
	Shares		Shares		Shares		Shares		Shares		Total
	Number of		Number of		Number of		Number of		Number of
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Amount
Balance as of January 1, 2021	40,228,492	578,091	57,653,035	870,794	10,224,598	154,847	42,329,835	773,137	—	—	5,137,874
Re-designation of previously issued preferred shares to Series D-2 Preferred Shares	—	—	—	—	(4,466,684)	(69,801)	—	—	32,761,153	601,616	104,036
Accretion of Convertible Redeemable Preferred Shares to Preference Amount	—	534,164	—	723,457	—	74,859	—	398,193	—	704,398	4,729,719
Proceeds from issuance of Convertible Redeemable Preferred Shares	—	—	—	—	—	—	—	—	43,624,956	793,798	793,798
FX exchange translation	—	11,247	—	15,884	—	902	—	10,859	—	33,501	115,281
Conversion of preferred shares to Class A ordinary shares	(40,228,492)	(1,123,502)	(57,653,035)	(1,610,135)	(5,757,914)	(160,807)	(42,329,835)	(1,182,189)	(76,386,109)	(2,133,313)	(10,880,708)
Balance as of December 31, 2021	—	—	—	—	—	—	—	—	—	—	—

Schedule of roll forward of major Level 3 investments


	Fair Value Measurement Using
	Unobservable Inputs (Level 3)
	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Fair value of Level 3 liability at the beginning of the year	2,384	—	—
The change in fair value of the liability	7,442	—	—
Exercise of warrant	(9,631)	—	—
Foreign currency translation	(195)	—	—
Fair value of Level 3 liability at the end of the year	—	—	—

Schedule of estimated fair value using the binomial pricing model


	As of		As of	As of
	December 10,		December 31,	December 31,
	2020		2021	2022
Fair value of Series A-1 Preferred Shares (US$)	1.8517		—	—
Dividend yield	—	%	—	—
Time to maturity	—		—	—
Risk-free interest rate	0.20	%	—	—
Expected volatility	68.45	%	—	—

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based compensation

Schedule of compensation expenses recognized for share-based awards


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	24,015	23,688	21,383
Research and development expenses	1,378	1,462	1,679
Sales and marketing expenses	4,144	5,252	4,983
Cost of revenues	218	271	200
Total	29,755	30,673	28,245

Schedule of compensation expenses recognized for different awards


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Vesting of restricted shares	12,415	6,607	—
Vesting of RSUs	17,340	20,130	17,878
Vesting of share options	—	3,936	10,367
Total	29,755	30,673	28,245

Schedule of group's restricted shares activities


	Numbers of shares	Weighted-average grant date fair value
		US$
Unvested at December 31, 2019	40,500,000	0.0889
Vested	(20,250,000)	0.0889
Unvested at December 31, 2020	20,250,000	0.0889
Vested	(20,250,000)	0.0889
Unvested at December 31, 2021 and 2022	—	—

Schedule of group's RSU activities


		Weighted	Weighted
		Average	Average
		Grant	Remaining	Aggregate
	Share	Date Fair	Contractual	Intrinsic
	Option	Value	Life	Value
		US$	In years
Outstanding as of December 31, 2020	—	—	—	—
Granted	5,009,222	1.4350	—	—
Cancelled	(228,624)	1.4350	—	—
Outstanding as of December 31, 2021	4,780,598	1.4350	9.64	21,945
Exercised	(55,960)	1.4350	—	—
Cancelled	(451,726)	1.4350	—	—
Outstanding as of December 31, 2022	4,272,912	1.4350	8.64	16,667
Vested and expected to vest as of December 31, 2022	4,272,912	1.4350	8.64	16,667
Exercisable as of December 31, 2022	1,064,156	1.4350	8.64	4,151

Schedule of fair value of option assumptions


	Year ended December 31, 2021
Exercise price (US$)	0.01
Fair value of the ordinary share on the date of option grant (US$)	1.445
Expected volatility	62.97	%
Risk-free interest rate (per annum)	1.25	%
Expected dividend yield	—
Exercise multiple	2.2
Contractual term (in years)	10
Expected forfeiture rate (post-vesting)	5.24	%

RSUs

Share-based compensation

Schedule of group's RSU activities


	RSUs	Weighted Average
	Outstanding	Grant Date Fair Value
		US$
Unvested at December 31, 2019	20,798,863	0.3119
Granted	7,775,835	0.9203
Vested	(6,060,842)	0.2753
Forfeited	(1,608,861)	0.4077
Unvested at December 31, 2020	20,904,995	0.5415
Vested	(7,629,599)	0.4302
Forfeited	(861,193)	0.6266
Unvested at December 31, 2021	12,414,203	0.6037
Vested	(5,341,452)	0.5265
Forfeited	(713,418)	0.7401
Unvested at December 31, 2022	6,359,333	0.6531

Loss per share (Tables)

12 Months Ended

Dec. 31, 2022

Net loss per share attributable to ordinary shareholders of Smart Share Global Limited

Basic loss per share and diluted loss per share


	Year Ended
	December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net income/(loss)	75,427	(124,615)	(711,240)
Less: Accretion on convertible redeemable preferred shares to redemption value	(3,206,324)	(4,729,719)	—
Less: deemed dividend to the shareholders	—	(104,036)	—
Net loss attributable to ordinary shareholders - basic and diluted	(3,130,897)	(4,958,370)	(711,240)
Denominator:
Weighted average number of ordinary shares outstanding - basic and diluted	54,506,733	406,567,584	518,307,406
Net loss per share - basic and diluted	(57.44)	(12.20)	(1.37)

Anti-dilutive loss per share


	Year Ended December 31,
	2020	2021	2022
Shares issuable upon vesting of RSUs	12,973,563	10,723,068	490,148
Shares issuable upon vesting of share options	—	2,821,137	—
Shares issuable upon conversion of the Preferred Shares	305,355,746	—	—
Restricted shares that become outstanding upon vesting	28,022,113	—	—
Warrant to purchase of Preferred Shares	—	—	—
Total	346,351,422	13,544,205	490,148

Related party transactions and balances (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of balances with related parties

The following entities are considered to be related parties to the Group:


Name of related parties		Relationship with the Group
People Better Limited (“People Better”)		A shareholder with significant influence over the Group
ZMI		Subject to common significant influence by one of the Company’s directors

The Group had the following balances with the major related parties:


	As of December 31,
	2021	2022
	RMB	RMB
Long-term prepayments to a related party
Long-term prepayments to ZMI (a)	20,037	71
Amounts due to related parties - current
Due to ZMI (b)	23,290	—
Amounts due to related parties - non-current
Due to the Nominee Shareholders of Shanghai Zhixiang (Note 1)	1,000	1,000

(a)	It represents the balance prepaid for power banks and cabinets purchase, which are non-current assets.

(b)	It represents the notes payable issued by the Group for power banks and cabinets purchase. The terms of notes are ranged from 3 to 6 months with interest free.


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of power banks and cabinets from ZMI	233,605	154,127	18,306
Proceeds of borrowings from People Better (c)	50,000	—	—
Repayment of borrowings from People Better (c)	50,000	—	—
Payment of deposit to People Better (c)	8,600	—	—
Proceeds of deposit refund from People Better (c)	8,600	—	—
Payment of interest to People Better (c)	1,032	—	—

(c)

Condensed financial information of the parent company (Tables)

12 Months Ended

Dec. 31, 2022

Condensed financial information of the parent company

Schedule of Condensed balance sheets


		As of December 31,
		2021	2022
		RMB	RMB
ASSETS
Current Assets:
Cash and cash equivalents		59,079	5,390
Prepayments and other current assets		987	802
Total current assets		60,066	6,192
Non-current Assets:
Investment in subsidiaries		1,919,167	1,136,046
Amounts due from related parties		1,300,477	1,545,429
Total non-current assets	.	3,219,644	2,681,475
Total assets	.	3,279,710	2,687,667
LIABILITIES, AND SHAREHOLDER’S EQUITY
Current Liabilities:
Salary and welfare payable		—	104
Accruals and other current liabilities		6,606	8,897
Amounts due to related parties		24,591	24,918
Total current liabilities		31,197	33,919
Non-current Liabilities:
Other non-current liabilities		16,489	12,443
Total Non-current liabilities		16,489	12,443
Total liabilities		47,686	46,362
Shareholder’s equity:
Ordinary shares (par value of US$0.0001, nil shares authorized, issued, and outstanding as of December 31, 2021 and 2022, respectively)		—	—
Class A ordinary shares (par value of US$0.0001, 535,052,809 and 535,052,809 shares authorized, 452,898,177 and 452,898,177 issued, and 443,533,171 and 444,390,065 outstanding as of December 31, 2021 and 2022, respectively)		296	296
Class B ordinary shares (par value of US$0.0001, 73,973,970 and 73,973,970 shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively)		51	51
Treasury shares (9,365,006 and 8,508,112 shares as of December 31, 2021 and 2022, respectively)		(27,784)	(6,816)
Additional paid-in capital		11,799,301	11,786,482
Statutory reserves		16,593	16,593
Accumulated other comprehensive income		51,556	163,928
Accumulated deficit		(8,607,989)	(9,319,229)
Total shareholders’ equity		3,232,024	2,641,305
Total liabilities, and shareholders’ equity		3,279,710	2,687,667

Schedule of Condensed statements of comprehensive loss


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	(1,702)	(6,163)	(7,859)
Other operating income	—	3,946	5,379
Loss from operations	(1,702)	(2,217)	(2,480)
Interest and investment income	—	547	104
Foreign exchange gains, net	—	25	—
Fair value changes of warrant liabilities	(7,442)	—	—
Equity in income/(loss) of subsidiaries and the VIEs	84,571	(122,970)	(708,864)
Income/(loss) before income tax expense	75,427	(124,615)	(711,240)
Net income/(loss)	75,427	(124,615)	(711,240)
Accretion of convertible redeemable preferred shares	(3,206,324)	(4,729,719)	—
Deemed dividend of preferred shareholders	—	(104,036)	—
Net loss attributable to ordinary shareholders of Smart Share Global Limited	(3,130,897)	(4,958,370)	(711,240)
Net income/(loss)	75,427	(124,615)	(711,240)
Other comprehensive income/(loss)	—	—	—
Foreign currency translation adjustments, net of nil tax	232,957	(150,267)	112,372
Total comprehensive income/(loss)	308,384	(274,882)	(598,868)
Accretion of convertible redeemable preferred shares	(3,206,324)	(4,729,719)	—
Deemed dividend of preferred shareholders	—	(104,036)	—
Comprehensive loss attributable to ordinary shareholders of Smart Share Global Limited	(2,897,940)	(5,108,637)	(598,868)

Schedule of Condensed statements of cash flows


	Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Operating activities with external parties	—	23,705	(5,559)
Net cash generated from/(used in) operating activities	—	23,705	(5,559)

Investments in subsidiaries	(58,473)	(1,048,953)	—
Loans to subsidiaries	—	(1,300,477)	(31,394)
Investing activities with external parties	—	—	920
Net cash used in investing activities	(58,473)	(2,349,430)	(30,474)

Financing activities with external parties	733,569	1,679,515	(19,734)
Net cash generated from/(used in) financing activities	733,569	1,679,515	(19,734)

Effect of foreign exchange rate changes on cash and cash equivalents	(1,438)	(17,475)	2,078

Net increase/(decrease) in cash and cash equivalents	673,658	(663,685)	(53,689)
Cash and cash equivalents at beginning of year	49,106	722,764	59,079
Cash and cash equivalents at end of year	722,764	59,079	5,390

Organization and nature of operations - Company's principal subsidiaries and consolidated VIEs (Details)	12 Months Ended
	Dec. 31, 2022
Smart Share International Limited
Organization and nature of operations
Date of incorporation	Aug. 15, 2017
Equity economic interest held	100.00%
Principal activities	Investment holding
Zhixiang Technology
Organization and nature of operations
Date of incorporation	Jun. 23, 2017
Equity economic interest held	100.00%
Principal activities	Mobile device charging business
Zhixiang Investment Co., Ltd
Organization and nature of operations
Date of incorporation	Feb. 26, 2021
Equity economic interest held	100.00%
Principal activities	Investment holding
Zhitong (Xinyi) Technology Co., Ltd.
Organization and nature of operations
Date of incorporation	Mar. 22, 2021
Equity economic interest held	100.00%
Principal activities	Mobile device charging business
Zhilang Technology (Tianjin) Co., Ltd.
Organization and nature of operations
Date of incorporation	Apr. 01, 2021
Equity economic interest held	100.00%
Principal activities	Mobile device charging business
Zhisheng Technology (Tianjin) Co., Ltd.
Organization and nature of operations
Date of incorporation	Jun. 01, 2021
Equity economic interest held	100.00%
Principal activities	Research and development function
Shanghai Zhixiang Technology Co., Ltd.
Organization and nature of operations
Date of incorporation	Apr. 28, 2017
Equity economic interest held	100.00%
Principal activities	Research and development function

Organization and nature of operations - Additional Information (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2022 USD ($)
Organization and nature of operations
Initial paid-in capital recorded as other non-current liabilities	¥ 189,323		¥ 16,489				$ 27,449,000
Cash generated from investing activities	(1,023,997)	$ (148,465,000)	(1,714,287)		¥ (261,487)
Cash generated from financing activities	(78,454)	(11,374,000)	1,563,397		654,571
Shanghai Zhixiang Technology Co., Ltd.
Organization and nature of operations
Capital and reserve funds	¥ 1,566		1,566
Variable Interest Entities
Organization and nature of operations
Cash generated from investing activities \| $		$ 0		$ 0		$ 0
Variable Interest Entities \| Equity Interest Pledge Agreement \| Shanghai Zhixiang Technology Co., Ltd.
Organization and nature of operations
Percentage of pledged equity interests	100.00%	100.00%
Initial paid-in capital recorded as other non-current liabilities	¥ 1,000
Variable Interest Entities \| Equity Interest Pledge Agreement \| Zhixiang Technology
Organization and nature of operations
Business cooperation agreement term	10 years	10 years
Variable Interest Entities \| Exclusive Option Agreement \| Shanghai Zhixiang Technology Co., Ltd.
Organization and nature of operations
Stock option term	10 years	10 years
Variable Interest Entities \| Zhixiang Technology
Organization and nature of operations
Variable interest entity terms of arrangement	The term of this agreement remains valid for a period of 10 years and can be extended at Zhixiang WFOE’s discretion. Zhixiang WFOE may terminate the agreement unilaterally with a 30-day prior written notice.	The term of this agreement remains valid for a period of 10 years and can be extended at Zhixiang WFOE’s discretion. Zhixiang WFOE may terminate the agreement unilaterally with a 30-day prior written notice.
Term of agreement remains valid for a period	10 years	10 years
Term of terminate the agreement unilaterally prior written notice	30 days	30 days
Consultancy and service fees	¥ 0		¥ 0		¥ 276,578
Exclusive asset subscription agreement term	10 years	10 years

Organization and nature of operations - Schedule of consolidated financial statements (Details)
¥ in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2022

CNY (¥)

Dec. 31, 2022

USD ($)

Dec. 31, 2021

CNY (¥)

Dec. 31, 2020

CNY (¥)

Dec. 31, 2022

USD ($)

Cash and cash equivalents

¥ 948,773

¥ 1,296,924

$ 137,559

Accounts receivable, net

16,482

14,881

2,390

Prepayments and other current assets

228,672

487,540

33,154

Total current assets

3,300,784

3,247,732

478,568

Other non-current assets

35,898

164,986

5,204

Total non-current assets

986,857

1,150,249

143,081

Total assets

4,287,641

4,397,981

621,649

Salary and welfare payable

111,274

120,444

16,133

Tax payable

147,367

10,195

21,366

Accruals and other current liabilities

268,007

238,510

38,858

Total current liabilities

1,422,878

1,028,365

206,298

Total liabilities

1,646,336

1,165,957

238,696

Total shareholders' equity

2,641,305

3,232,024

$ 382,953

Third party and inter-company revenues

2,838,190

$ 411,498

3,585,391

¥ 2,809,359

Income/(loss) before income tax expense

(556,923)

(80,746)

(557,177)

(430,773)

(596,764)

(86,523)

(124,615)

93,991

Less: Income tax expense

114,476

16,597

18,564

Net income/(loss)

(711,240)

(103,120)

(124,615)

75,427

Net cash generated from/(used in)operating activities

708,142

102,670

226,778

536,118

Net increase/(decrease) in cash and cash equivalents

(352,214)

$ (51,066)

33,094

922,968

Variable Interest Entities

Cash and cash equivalents

606

Accounts receivable, net

1,470

Prepayments and other current assets

4,473

1,317

Amounts due from non-VIE subsidiaries of the Company

591,174

603,009

Total current assets

595,737

606,402

Other non-current assets

Total non-current assets

Total assets

595,743

606,424

Salary and welfare payable

2,376

1,745

Tax payable

7,442

7,548

Amounts due to non-VIE subsidiaries of the Company

442,819

445,029

Accruals and other current liabilities

544

1,240

Total current liabilities

453,181

455,562

Total liabilities

453,181

455,562

Total shareholders' equity

142,562

150,862

Other operating income/(loss)

(276,578)

(1,566)

(11,359)

(357)

Income from non-operations

Income/(loss) before income tax expense

(9,008)

42,498

37,313

Less: Income tax expense

(3,914)

Net income/(loss)

(9,008)

38,584

37,313

Variable interest entity primary beneficiary excluding intra group

Third party and inter-company revenues

^[1]

(11)

(16,386)

(9,413)

Operating activities with external parties

(10,015)

(66,477)

(101,895)

(8,616)

(73,720)

(85,138)

Variable interest entity primary beneficiary intra group

Third party and inter-company revenues

2,554

103,948

406,730

Intercompany payments from service charge

(6,500)

(18,255)

(37,271)

Intercompany receipts from service charge

14,600

88,000

124,193

Net cash generated from/(used in)operating activities

(516)

(3,975)

1,784

Net increase/(decrease) in cash and cash equivalents

¥ (516)

¥ (3,975)

¥ 1,784

[1]

Summary of principal accounting policies - Assets and liabilities measured at fair value on recurring basis (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Summary of principal accounting policies
Short-term investments	¥ 2,091,198	$ 303,195	¥ 1,418,721
Derivative liabilities	2,592
Recurring \| Level 2
Summary of principal accounting policies
Short-term investments	2,091,198		¥ 1,418,721
Derivative liabilities	¥ (2,592)

Summary of principal accounting policies - Convenience translation (Details)	Dec. 31, 2022 $ / ¥
Summary of principal accounting policies
Convenience calculated exchange rate	6.8972

Summary of principal accounting policies - Restricted cash (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Summary of principal accounting policies
Cash and cash equivalents	¥ 948,773	$ 137,559	¥ 1,296,924
Restricted cash	14,608	2,118	19,671
Long-term restricted cash	21,000	3,045	20,000
Total	¥ 984,381	$ 142,722	¥ 1,336,595	$ 193,788	¥ 1,303,501	¥ 380,533

Summary of principle accounting policies - Short-term investments (Details)	12 Months Ended
	Dec. 31, 2022
Minimum
Summary of principal accounting policies
Short-term investments	1 month
Maximum
Summary of principal accounting policies
Short-term investments	1 year

Summary of principal accounting policies - Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Accounts receivable, net
Balance at the beginning of year	¥ 5,986		¥ 3,268	¥ 5,025
Provision for doubtful accounts	3,435	$ 498	3,206	5,302
Write-offs	(4,335)		(488)	(7,059)
Balance at the end of year	¥ 5,086		¥ 5,986	¥ 3,268

Summary of principal accounting policies - Property, equipment and software and Capitalized Software Development Cost (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of principal accounting policies
Software development cost capitalized	¥ 5,677	¥ 7,922	¥ 0
Property, plant and equipment estimated useful lives	three
Amortization expense for capitalized software costs	¥ 3,679	1,280	0
Unamortized amount of capitalized internal use software development costs	8,640	6,642
Power bank sales
Summary of principal accounting policies
Cost of revenues	¥ 12,465	¥ 27,956	¥ 31,856
Cabinets \| Minimum
Summary of principal accounting policies
Property plant and equipment	4 years
Cabinets \| Maximum
Summary of principal accounting policies
Property plant and equipment	5 years
Power banks
Summary of principal accounting policies
Property plant and equipment	3 years
Computer and electronic equipment
Summary of principal accounting policies
Property plant and equipment	3 years
Production tools
Summary of principal accounting policies
Property plant and equipment	5 years
Software
Summary of principal accounting policies
Property plant and equipment	10 years
Others \| Minimum
Summary of principal accounting policies
Property plant and equipment	3 years
Others \| Maximum
Summary of principal accounting policies
Property plant and equipment	5 years

Summary of principal accounting policies - Impairment of long-lived assets (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of principal accounting policies
Impairment loss for long-lived assets	¥ 21,560	¥ 0	¥ 0
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]	General and Administrative Expense	General and Administrative Expense	General and Administrative Expense

Summary of principal accounting policies - Revenue recognition (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Weighted average effective interest rate	21.00%		24.00%	23.00%
Balance at the beginning of year	¥ 169,833		¥ 244,151	¥ 142,156
Addition	1,758		3,445	115,387
Accretion of interest	31,196		37,806	32,097
Repayment	(69,738)		(115,569)	(45,489)
Derecognition	(24,496)
Balance at the end of year	108,553		169,833	¥ 244,151
Cumulative upfront fees	433,404		158,176
Amortized cumulative upfront fees	73,554		¥ 14,586
Gain on derecognition of financing payable and accounts payable	21,669	$ 3,142
Derecognition of related equipment on business winding-ups	2,785
Derecognition of outstanding upfront fee payable	6,917
Net gains recognized on business winding-ups	4,132
Terminated Arrangements [Member]
Derecognition	(24,496)
Derecognition of related equipment on termination of the arrangement	6,959
Gain on derecognition of financing payable and accounts payable	¥ 17,537

Summary of principal accounting policies - Sales and marketing expenses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of principal accounting policies
Entry fees paid to location partners, contractual period	6 years	1 year
Entry fees paid to location partners, weighted average term	2 years 3 months 18 days	2 years	1 year 10 months 24 days
Aggregated commissions to the location partners and network partners and amortization of the entry fees to the location partners	¥ 2,069,102	¥ 2,112,774	¥ 1,576,565
Advertising expenses	¥ 10,684	¥ 14,988	¥ 6,752

Summary of principal accounting policies - Employee benefits (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of principal accounting policies
Employee social benefits included as expenses	¥ 151,499	¥ 140,259	¥ 53,266
Accrued and unpaid employee social benefits	¥ 58,478	¥ 31,384

Summary of principal accounting policies - Government grants (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of principal accounting policies
Government subsidies	¥ 17,636	¥ 29,956	¥ 24,790

Summary of principal accounting policies - Leases (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Summary of principal accounting policies
Right-of-use assets	¥ 12,442	$ 1,804	¥ 31,132
Long term lease liabilities	854	124	25,807
Operating lease liability, current	9,761	1,415	22,132
Accumulated deficit	¥ (9,319,229)	$ (1,351,161)	¥ 0	¥ (8,607,989)

Summary of principle accounting policies - Income tax (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Summary of principal accounting policies
Unrecognized uncertain tax positions	¥ 209,078	¥ 0
Threshold to measure uncertain tax position	50.00%

Summary of principle accounting policies - Dividends and treasury shares (Details) ¥ in Thousands, $ in Millions		12 Months Ended
	Sep. 28, 2021 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Sep. 28, 2022 USD ($)
Summary of principal accounting policies
Dividends \| ¥		¥ 0	¥ 0	¥ 0
Share repurchase program duration	12 months
Treasury stock authorized to repurchase \| $	$ 50.0				$ 50.0

Summary of principal accounting policies - Additional information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Summary of principal accounting policies
Threshold reserve fund, percent of after-tax profits	10.00%				10.00%
Threshold percentage of registered capital negating reserve appropriation	50.00%				50.00%
Appropriation to statutory surplus fund	¥ 0		¥ 0	¥ 4,678,000
Number of reportable segments \| item	1	1
Right-of-use assets	¥ 12,442,000				$ 1,804	¥ 31,132,000
Right-of-use assets	12,442,000				$ 1,804	31,132,000
Lease liabilities	10,615,000
Inventory write-downs	¥ 9,273,000	$ 1,344	¥ 0	¥ 0
Accounting standards update 2016-02
Summary of principal accounting policies
Right-of-use assets						31,132,000
Right-of-use assets						31,132,000
Lease liabilities						¥ 25,807,000

Initial Public Offering ("IPO") (Details) ¥ in Thousands	1 Months Ended	12 Months Ended
Initial Public Offering ("IPO") (Details) ¥ in Thousands	Apr. 30, 2021 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2022 Vote shares	Apr. 30, 2021 $ / shares shares	Mar. 12, 2021 Vote shares	Oct. 15, 2019 $ / shares
Initial Public Offering ("IPO")
Purchase price per share \| $ / shares						$ 0.8218
Net proceeds raised from the IPO \| ¥		¥ 896,320
Conversion ratio			1	1
Class A ordinary shares
Initial Public Offering ("IPO")
Conversion ratio					1
Common shares, votes per share \| Vote			1		1
Ordinary shares issued		452,898,177	452,898,177
Ordinary shares outstanding		443,533,171	444,390,065
Class B ordinary shares
Initial Public Offering ("IPO")
Conversion ratio					1
Ordinary shares conversion ratio					1
Common shares, votes per share \| Vote			10		10
Ordinary shares issued		73,973,970	73,973,970		73,973,970
Ordinary shares outstanding		73,973,970	73,973,970		73,973,970
IPO
Initial Public Offering ("IPO")
Net proceeds raised from the IPO \| ¥	¥ 896,320
IPO \| Class A ordinary shares
Initial Public Offering ("IPO")
Issuance of ordinary shares (in shares)	35,300,000
Purchase price per share \| $ / shares				$ 4.25
Net proceeds raised from the IPO \| ¥	¥ 896,320
Conversion ratio				1
IPO \| Class B ordinary shares
Initial Public Offering ("IPO")
Number of issued and outstanding ordinary shares were re-designated and re-classed into Class B ordinary shares	1
Ordinary shares issued				73,973,970
Ordinary shares outstanding				73,973,970
Convertible preferred stock				389,598,177

Certain risks and concentration - Summarized customers with greater than 10 percent of the account receivables (Details) - Credit and concentration risk - Accounts receivable

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

^[1]

Customer A

Concentration risk (as on percentage)

11.00%

17.00%

Customer B

Concentration risk (as on percentage)

21.00%

Customer C

Concentration risk (as on percentage)

^[1]

12.00%

[1]	Less than 10%

Certain risks and concentration (Details) - Supplier Concentration Risk [Member] - Purchases	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Supplier A [Member]
Certain risks and concentration
Concentration risk (as on percentage)	21.00%	17.00%
Supplier B [Member]
Certain risks and concentration
Concentration risk (as on percentage)	12.00%	10.00%
ZMI
Certain risks and concentration
Concentration risk (as on percentage)	0.00%	40.00%

Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)
Prepayments and other current assets
Prepayment to location partners	¥ 74,301	¥ 357,060
VAT receivables	10,450	77,527
Prepayment to service providers	116,342	9,753
Deposits	14,400	14,553
Prepaid expenses	9,577	13,133
Advance payment of income tax		5,383
Others	3,602	10,131
Total	228,672	487,540	$ 33,154
Impairments for the prepaid commissions to the location partners	¥ 56,385	¥ 0

Property, equipment and software, net (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Property, equipment and software, net
Property, equipment and software, gross	¥ 2,198,443		¥ 1,872,419
Less: Accumulated depreciation	(1,291,203)		(927,193)
Less: Accumulated impairment	(20,780)
Property, equipment and software, net	886,460		945,226		$ 128,525
Depreciation expenses	421,345	$ 61,089	396,906	¥ 343,381
Impairment charges	21,560	$ 3,126	0	¥ 0
Cabinets
Property, equipment and software, net
Property, equipment and software, gross	1,159,455		1,059,963
Less: Accumulated impairment	(3,018)
Power banks
Property, equipment and software, net
Property, equipment and software, gross	833,257		675,611
Construction in progress
Property, equipment and software, net
Property, equipment and software, gross	150,654		103,157
Software
Property, equipment and software, net
Property, equipment and software, gross	23,039		14,982
Production tools
Property, equipment and software, net
Property, equipment and software, gross	13,847		9,625
Computer and electronic equipment
Property, equipment and software, net
Property, equipment and software, gross	13,445		4,543
Leasehold improvements
Property, equipment and software, net
Property, equipment and software, gross	3,902		3,722
Others
Property, equipment and software, net
Property, equipment and software, gross	¥ 844		¥ 816

Property, equipment and software, net - Summary of the leased cabinets under capital leases (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, equipment and software, net
Less: Accumulated impairment	¥ (20,780)
Finance lease right of use asset statement of financial position	Property, equipment and software, net	Property, equipment and software, net
Cabinets
Property, equipment and software, net
Cabinets	¥ 154,822	¥ 173,663
Less: Accumulated depreciation	(111,183)	(70,621)
Less: Accumulated impairment	(3,018)
Assets under capital leases, net	¥ 40,621	¥ 103,042

Other non-current assets (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)
Other non-current assets
Prepayment to location partners	¥ 11,649	¥ 133,887
Prepayment for purchase of property, equipment and software	15,038	19,920
Deposits	7,790	8,467
Others	1,421	2,712
Total	35,898	164,986	$ 5,204
Impairment of non-current prepaid commissions to the location partners	¥ 87,069	¥ 0

Leases (Details) ¥ in Thousands	12 Months Ended
Leases (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Leases
Lease cost	¥ 34,243
Short-term lease cost	4,143
Cash paid for the rentals included in the lease liabilities	22,850
ROU assets obtained in exchange for operating lease liabilities	¥ 10,034
Minimum
Leases
Lease term	1 year
Maximum
Leases
Lease term	4 years

Leases - Consolidated balance sheet information (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Leases
Right-of-use assets	¥ 12,442	$ 1,804	¥ 31,132
Current portion of lease liabilities	9,761	1,415	22,132
Non-current lease liabilities	¥ 854	$ 124	¥ 25,807

Leases - Lease term and discount rates (Details)	Dec. 31, 2022
Leases
Operating leases, Weighted-average remaining lease term	7 months 6 days
Operating leases, Weighted-average discount rate	4.70%

Leases - Future minimum payments (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Maturities of lease liabilities were as follows:
2022/2023	¥ 23,457		¥ 10,452
2023/2024	5,349		323
2024	173
Total undiscounted lease payments	28,979		10,775
Less: imputed interest			(160)
Total present value of lease liabilities			¥ 10,615
Operating lease expenses	¥ 41,902	¥ 34,682

Accounts and notes payable and accruals and other current liabilities - Accounts and notes payable (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts and notes payable and accruals and other current liabilities
Commission payables to network partners and location partners	¥ 546,739		¥ 330,586
Entry fees payable to location partners	46,359		62,135
Payables for purchase of property, equipment and software	209,367		154,430
Others	7,732		4,600
Total	¥ 810,197	$ 117,468	¥ 551,751

Accounts and notes payable and accruals and other current liabilities - Accruals and other current liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts and notes payable and accruals and other current liabilities
Customer deposits	¥ 229,356		¥ 211,938
Derivative liabilities	2,592
Others	36,059		26,572
Total	¥ 268,007	$ 38,858	¥ 238,510

Income taxes (Details) ¥ in Thousands	12 Months Ended
Income taxes (Details) ¥ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Income tax rate	25.00%	25.00%	25.00%
Preferential tax rate period	3 years
Preferential tax rate	12.50%
Withholding tax amount \| $	$ 0	$ 0
Unrecognized uncertain tax positions				¥ 209,078	¥ 0
Minimum \| State Administration of Taxation, China
Withholding tax rate	5.00%
Maximum \| State Administration of Taxation, China
Withholding tax rate	10.00%
Shanghai Zhixiang Technology Co., Ltd. [Member]
Income tax holiday, period	P2Y
Preferential tax rate	15.00%
CAYMAN ISLANDS
Withholding tax rate	0.00%
HONG KONG
Withholding tax rate	5.00%
Minimum Percentage of Foreign Investor Ownership in Shares of FIE	25.00%
CHINA
Income tax rate	25.00%
Withholding tax rate	10.00%
Undistributed earnings and reserves				¥ 72,966	¥ 127,713

Income taxes - Components of income before tax (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Income/(loss) before tax:
Income/(loss) from PRC entities	¥ (609,980)		¥ (128,658)	¥ 102,073
(Loss)/income from overseas entities	13,216		4,043	(8,082)
Income/(loss) before income tax expense	¥ (596,764)	$ (86,523)	¥ (124,615)	¥ 93,991

Income taxes - Reconciliation of effective income tax rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Statutory income tax rate	25.00%	25.00%	25.00%
Difference in tax rates of subsidiaries outside PRC			3.00%
Effect of permanent differences	(6.00%)	(7.00%)	(3.00%)
Research and development super deduction	3.00%	15.00%
Non-taxable income	1.00%	1.00%
Effect of tax holiday		2.00%	(5.00%)
Change in estimates for uncertain tax positions	(35.00%)
Others	(3.00%)
Change in valuation allowance	(4.00%)	(36.00%)
Effect tax rate	(19.00%)		20.00%

Income taxes - Aggregate amount and per share effect of the tax holiday (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income taxes
The aggregate amount of effect of tax holidays	¥ 2,243	¥ 4,535
Basic and diluted net loss per share effect	¥ 0.01	¥ 0.08

Income taxes - Current and deferred portions of income tax expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Income taxes
Current income tax expense	¥ 179,907		¥ (554)	¥ 903
Deferred income tax expense	(65,431)	$ (9,487)	¥ 554	17,661
Subtotal income tax expense appliable to PRC entities	114,476			18,564
Current and deferred income tax expense applicable to overseas entities	114,476			18,564
Income tax expense, net	¥ 114,476	$ 16,597		¥ 18,564

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income taxes - Significant components of deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Deferred upfront fee received	¥ 117,264
Commissions and entry fees for which invoices have not been collected	3,043	¥ 2,780
Accrued salary and welfare payable	14,500	8,194
Accrued expenses	5,209
Property, equipment and software, net	5,037	12,642
Inventory write-downs	2,318
Net operating loss carry-forwards	65,531	96,761
Other	11,036	801
Less: Valuation allowances	(72,783)	(47,430)	¥ (621)	¥ (474)
Total deferred tax assets	151,155	73,748
Deferred tax liabilities
Property, equipment and software, net	(20,499)
Accrued service revenue	(93,382)	(108,193)
Capitalized software development costs	(1,296)
Other	(4,992)
Total deferred tax liabilities	(120,169)	(108,193)
Deferred tax (liabilities)/assets, net	¥ 30,986	¥ (34,445)

Income taxes - Net operating loss carry forwards from PRC (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Income taxes
2025	¥ 637
2026	237,664
2027	131,203
2031	17,408
2032	18,279
Net operating loss carryforwards	¥ 405,191

Income taxes - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Balance at the beginning of the year	¥ 47,430	¥ 621	¥ 474
Additions	25,353	46,809	147
Balance at the end of the year	72,783	47,430	¥ 621
Uncertain tax positions related to commission expense	176,880
Unrecognized uncertain tax positions	¥ 209,078	¥ 0

Ordinary shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands						1 Months Ended			12 Months Ended				36 Months Ended
	Oct. 15, 2019 CNY (¥) shares	Oct. 15, 2019 USD ($) $ / shares shares	Jul. 25, 2017 shares	Jun. 01, 2017 shares	May 17, 2017 shares	Aug. 31, 2021 shares	Apr. 30, 2021 CNY (¥) shares	Jan. 31, 2021 shares	Dec. 31, 2022 CNY (¥) Vote shares	Dec. 31, 2022 USD ($) Vote shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 shares	Apr. 30, 2021 $ / shares shares	Mar. 12, 2021 Vote shares
Purchase price per share \| $ / shares		$ 0.8218
Amount of consideration for ordinary shares repurchased	¥ 42,070	$ 6,000
Share-based compensation expenses									¥ 28,245	$ 4,095	¥ 30,673	¥ 29,755
Proceeds from IPO, net of underwriter discounts and commissions and other offering costs paid \| ¥											¥ 896,320
Conversion ratio									1	1				1
IPO
Proceeds from IPO, net of underwriter discounts and commissions and other offering costs paid \| ¥							¥ 896,320
Ordinary shares
Ordinary shares authorized									609,026,779	609,026,779	609,026,779
Class A ordinary shares
Ordinary shares authorized									535,052,809	535,052,809	535,052,809
Ordinary shares issued									452,898,177	452,898,177	452,898,177
Ordinary shares outstanding									444,390,065	444,390,065	443,533,171
Conversion ratio															1
Common shares, votes per share \| Vote									1	1					1
Class A ordinary shares \| IPO
Number of ordinary shares issued							35,300,000
Purchase price per share \| $ / shares														$ 4.25
Proceeds from IPO, net of underwriter discounts and commissions and other offering costs paid \| ¥							¥ 896,320
Conversion ratio														1
Class B ordinary shares
Ordinary shares authorized									73,973,970	73,973,970	73,973,970
Ordinary shares issued									73,973,970	73,973,970	73,973,970				73,973,970
Ordinary shares outstanding									73,973,970	73,973,970	73,973,970				73,973,970
Conversion ratio															1
Ordinary shares conversion ratio															1
Common shares, votes per share \| Vote									10	10					10
Class B ordinary shares \| IPO
Ordinary shares issued														73,973,970
Ordinary shares outstanding														73,973,970
General and administrative expenses
Share-based compensation expenses \| ¥	¥ 17,421
Smart Share Holdings Limited
Number of ordinary shares issued					83,000,000
Number of shares transferred				2,000,000
Number of shares issued to founders for services			81,000,000
Number of ordinary shares repurchased	7,026,030	7,026,030
Number of ordinary shares surrendered								34,703,970
Smart Share Brothers
Number of ordinary shares surrendered								2,000,000
Smart Shares CGY
Number of ordinary shares issued													44,841,250
Number of ordinary shares repurchased	275,000	275,000
Number of ordinary shares surrendered								44,566,250
Super june limited
Number of ordinary shares issued								27,397,000
Victor family limited
Number of ordinary shares issued								7,306,970
Bank of New York Mellon \| Class A ordinary shares
Number of ordinary shares issued						28,000,000

Convertible redeemable preferred shares - Preferred shares activities (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands																			12 Months Ended
	Jan. 06, 2021 CNY (¥) shares	Jan. 06, 2021 USD ($) $ / shares shares	Dec. 29, 2020 CNY (¥)	Dec. 29, 2020 USD ($) $ / shares	Dec. 10, 2020 CNY (¥)	Dec. 10, 2020 USD ($) $ / shares	Dec. 24, 2019 CNY (¥)	Dec. 24, 2019 USD ($) $ / shares	Oct. 15, 2019 CNY (¥)	Oct. 15, 2019 USD ($) $ / shares	Aug. 09, 2018 CNY (¥)	Aug. 09, 2018 USD ($)	Jun. 14, 2018 CNY (¥)	Jun. 14, 2018 USD ($)	Sep. 26, 2017 CNY (¥)	Sep. 26, 2017 USD ($)	Jul. 25, 2017 CNY (¥)	Jul. 25, 2017 USD ($)	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares
Convertible redeemable preferred shares
Beginning balance, total mezzanine equity																			¥ 5,137,874	¥ 1,421,083
Accretion of convertible redeemable preferred shares																			4,729,719	3,206,324
Redesignation																			104,036
FX exchange translation																			115,281	(236,982)
Issuance of Series A1 Convertible Redeemable Preferred Shares upon exercise of warrant by an investor																				11,262
Proceeds from issuance of Convertible Redeemable Preferred Shares																			(793,798)	736,187
Conversion of preferred shares to Class A ordinary shares																			(10,880,708)
Ending balance, total mezzanine equity																				5,137,874
Series Seed Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 1,091,899	¥ 301,268
Beginning balance (in shares) \| shares																			77,884,154	77,884,154
Issuance of Convertible Redeemable Preferred Shares (in shares) \| shares	32,761,153	32,761,153
Accretion of convertible redeemable preferred shares																			¥ 889,582	¥ 847,639
Redesignation																			¥ (208,136)
Redesignation (in shares) \| shares																			(13,812,613)
FX exchange translation																			¥ 16,047	(57,008)
Proceeds from issuance of Convertible Redeemable Preferred Shares																			¥ (1,789,392)
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																			(64,071,541)
Ending balance, convertible redeemable preferred shares																				¥ 1,091,899
Ending balance, temporary equity receivable																	¥ (28,711)	$ (4,183)
Ending balance (in shares) \| shares																				77,884,154
Purchase price \| $ / shares										$ 0.4855
Aggregate consideration																	36,597	5,345
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares																	305	45
Series A Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 472,723	¥ 139,432
Beginning balance (in shares) \| shares																			33,382,717	33,382,717
Accretion of convertible redeemable preferred shares																			¥ 347,662	¥ 358,299
Redesignation																			¥ (125,999)
Redesignation (in shares) \| shares																			(8,310,604)
FX exchange translation																			¥ 5,829	(25,008)
Proceeds from issuance of Convertible Redeemable Preferred Shares																			¥ (700,215)
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																			(25,072,113)
Ending balance, convertible redeemable preferred shares																				¥ 472,723
Ending balance (in shares) \| shares																				33,382,717
Purchase price \| $ / shares										$ 0.5325
Aggregate consideration																	66,957	10,000
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares																	¥ 570	$ 85
Series A-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 1,089,555	¥ 322,883
Beginning balance (in shares) \| shares																			76,803,194	75,917,925
Accretion of convertible redeemable preferred shares																			¥ 957,778	¥ 812,973
Redesignation																			¥ (93,644)
Redesignation (in shares) \| shares																			(6,171,252)
FX exchange translation																			¥ 18,922	(57,563)
Issuance of Series A1 Convertible Redeemable Preferred Shares upon exercise of warrant by an investor																				¥ 11,262
Issuance of Series A1 Convertible Redeemable Preferred Shares upon exercise of warrant by an investor (in shares) \| shares																				885,269
Proceeds from issuance of Convertible Redeemable Preferred Shares																			¥ (1,972,611)
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																			(70,631,942)
Warrant liability transferred into Series A-1 Convertible Redeemable Preferred Shares											¥ 8,416	$ 1,235
Ending balance, convertible redeemable preferred shares																				¥ 1,089,555
Ending balance, temporary equity receivable											(20,668)	(3,000)			¥ (10,399)	$ (1,515)
Ending balance (in shares) \| shares																				76,803,194
Aggregate consideration					¥ 1,631	$ 250							¥ 11,465	$ 1,792	130,056	19,646
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares					11,262	$ 1,660							¥ 834	$ 126	¥ 2,273	$ 346
Series B-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 106,828	¥ 34,538
Beginning balance (in shares) \| shares																			7,467,196	7,467,196
Accretion of convertible redeemable preferred shares																			¥ 99,626	¥ 78,078
FX exchange translation																			2,090	(5,788)
Proceeds from issuance of Convertible Redeemable Preferred Shares																			¥ (208,544)
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																			(7,467,196)
Ending balance, convertible redeemable preferred shares																				¥ 106,828
Ending balance (in shares) \| shares																				7,467,196
Aggregate consideration											20,668	3,000
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares											5,159	746
Series B-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 578,091	¥ 194,351
Beginning balance (in shares) \| shares																			40,228,492	40,228,492
Accretion of convertible redeemable preferred shares																			¥ 534,164	¥ 415,254
FX exchange translation																			11,247	(31,514)
Conversion of preferred shares to Class A ordinary shares																			¥ (1,123,502)
Conversion of preferred shares to Class A ordinary shares (in shares) \| shares																			(40,228,492)
Ending balance, convertible redeemable preferred shares																				¥ 578,091
Ending balance (in shares) \| shares																				40,228,492
Aggregate consideration											¥ 130,441	$ 19,014
Series C-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 870,794	¥ 383,148
Beginning balance (in shares) \| shares																			57,653,035	57,653,035
Accretion of convertible redeemable preferred shares																			¥ 723,457	¥ 537,890
FX exchange translation																			15,884	(50,244)
Conversion of preferred shares to Class A ordinary shares																			¥ (1,610,135)
Conversion of preferred shares to Class A ordinary shares (in shares) \| shares																			(57,653,035)
Ending balance, convertible redeemable preferred shares																				¥ 870,794
Ending balance (in shares) \| shares																				57,653,035
Aggregate consideration									¥ 381,883	$ 54,000
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares									¥ 9,492	$ 1,360										¥ 8,919
Series C-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 154,847	¥ 69,880
Beginning balance (in shares) \| shares																			10,224,598	10,224,598
Accretion of convertible redeemable preferred shares																			¥ 74,859	¥ 94,011
Redesignation																			¥ (69,801)
Redesignation (in shares) \| shares																			(4,466,684)
FX exchange translation																			¥ 902	(9,044)
Conversion of preferred shares to Class A ordinary shares																			¥ (160,807)
Conversion of preferred shares to Class A ordinary shares (in shares) \| shares																			(5,757,914)
Ending balance, convertible redeemable preferred shares																				¥ 154,847
Ending balance (in shares) \| shares																				10,224,598
Purchase price \| $ / shares		$ 2.2740						$ 0.9780
Aggregate consideration		$ 74,498					¥ 71,531	$ 10,000
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares							¥ 1,758	$ 252
Series D-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Beginning balance, convertible redeemable preferred shares																			¥ 773,137
Beginning balance (in shares) \| shares																			42,329,835
Accretion of convertible redeemable preferred shares																			¥ 398,193	¥ 62,180
FX exchange translation																			10,859	(2,465)
Proceeds from issuance of Convertible Redeemable Preferred Shares																				¥ 713,422
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																				42,329,835
Conversion of preferred shares to Class A ordinary shares																			¥ (1,182,189)
Conversion of preferred shares to Class A ordinary shares (in shares) \| shares																			(42,329,835)
Ending balance, convertible redeemable preferred shares																				¥ 773,137
Ending balance (in shares) \| shares																				42,329,835
Purchase price \| $ / shares				$ 2.5986		$ 2.5986
Aggregate consideration			¥ 719,401	$ 110,000	719,401	$ 110,000
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares			¥ 5,979	$ 916	¥ 5,979	$ 916
Series D-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Issuance of Convertible Redeemable Preferred Shares (in shares) \| shares	43,624,956	43,624,956
Accretion of convertible redeemable preferred shares																			¥ 704,398
Redesignation	¥ 104,036	$ 16,104																	¥ 601,616
Redesignation (in shares) \| shares	(32,761,153)	(32,761,153)																	32,761,153
FX exchange translation																			¥ 33,501
Proceeds from issuance of Convertible Redeemable Preferred Shares																			¥ (793,798)
Proceeds from issuance of Convertible Redeemable Preferred Shares (in shares) \| shares																			43,624,956
Conversion of preferred shares to Class A ordinary shares																			¥ (2,133,313)
Conversion of preferred shares to Class A ordinary shares (in shares) \| shares																			(76,386,109)
Purchase price \| $ / shares		$ 2.8425
Aggregate consideration	¥ 801,104	$ 124,002
Payment of issuance cost of Series D-2 Convertible Redeemable Preferred Shares	¥ 7,306	$ 1,131
Receivable from a holder of Series C-2 Preferred Share
Convertible redeemable preferred shares
Beginning balance, temporary equity receivable																				¥ (24,417)
FX exchange translation																				1,652
Proceeds from issuance of Convertible Redeemable Preferred Shares																				¥ 22,765

Convertible redeemable preferred shares - Roll forward of major Level 3 investments (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Convertible redeemable preferred shares
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]	Fair Value Adjustment of Warrants	Fair Value Adjustment of Warrants	Fair Value Adjustment of Warrants
Foreign currency translation		¥ 115,281	¥ (236,982)
Level 3
Convertible redeemable preferred shares
Fair value of Level 3 liability at the beginning of the year			2,384
The change in fair value of the liability			7,442
Exercise of warrant			(9,631)
Foreign currency translation			¥ (195)

Convertible redeemable preferred shares - Fair value using the binomial option pricing model (Details)	Dec. 10, 2020 $ / shares
Fair value of Series A1 Preferred Shares (US$)
Convertible redeemable preferred shares
Fair Value Measurement Input	1.8517
Risk-free interest rate
Convertible redeemable preferred shares
Fair Value Measurement Input	0.0020
Expected volatility
Convertible redeemable preferred shares
Fair Value Measurement Input	0.6845

Convertible redeemable preferred shares - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands															12 Months Ended
	Dec. 29, 2020 CNY (¥) shares	Dec. 29, 2020 USD ($) shares	Dec. 10, 2020 CNY (¥)	Dec. 10, 2020 USD ($) $ / shares shares	Oct. 15, 2019 CNY (¥)	Oct. 15, 2019 USD ($) $ / shares shares	Aug. 09, 2018 CNY (¥) shares	Aug. 09, 2018 USD ($)	Jun. 14, 2018 CNY (¥)	Jun. 14, 2018 USD ($) $ / shares shares	Sep. 26, 2017 CNY (¥) shares	Sep. 26, 2017 USD ($)	Jul. 25, 2017 CNY (¥) shares	Jul. 25, 2017 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Apr. 30, 2021	Aug. 09, 2018 USD ($) $ / shares shares	Sep. 26, 2017 USD ($) $ / shares shares	Jul. 25, 2017 USD ($) $ / shares shares
Convertible redeemable preferred shares
Period for curing breach															90 days	90 days
Conversion ratio																1			1
Minimum proceeds from qualified public offering \| $																$ 100,000,000
Minimum pre offering market capitalization \| $																$ 1,000,000,000
Accretion on convertible redeemable preferred shares to redemption value \| ¥															¥ 0		¥ 4,729,719	¥ 3,206,324
Percentage on issuance price															100.00%	100.00%
Series Seed Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares													85,185,184									85,185,184
Temporary equity, par or stated value per share																						$ 0.06275
Aggregate consideration													¥ 36,597	$ 5,345
Temporary equity redemption price per share																						$ 0.11
Issuance costs incurred													305	45
Consideration amount													¥ 28,711									$ 4,183
Series A Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares													37,037,035									37,037,035
Temporary equity, par or stated value per share																						$ 0.27
Aggregate consideration													¥ 66,957	10,000
Issuance costs incurred													¥ 570	$ 85
Series A-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares				885,269						6,347,117	69,570,808										69,570,808
Temporary equity, par or stated value per share				$ 0.2824						$ 0.2824											$ 0.2824
Aggregate consideration			¥ 1,631	$ 250					¥ 11,465	$ 1,792	¥ 130,056	$ 19,646
Temporary equity redemption price per share										$ 0.3021
Issuance costs incurred			11,262	$ 1,660					¥ 834	$ 126	2,273	$ 346
Consideration amount							¥ 20,668				¥ 10,399					$ 10,000				$ 3,000	$ 1,515
Percentage on issuance price															85.00%	85.00%
Series B-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares							7,467,196													7,467,196
Temporary equity, par or stated value per share																				$ 0.4018
Aggregate consideration							¥ 20,668	$ 3,000
Issuance costs incurred							¥ 5,159	746
Series B-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares							40,228,492													40,228,492
Temporary equity, par or stated value per share																				$ 0.4727
Aggregate consideration							¥ 130,441	$ 19,014
Series C-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares						57,653,035
Temporary equity, par or stated value per share						$ 0.9366
Aggregate consideration					¥ 381,883	$ 54,000
Issuance costs incurred					¥ 9,492	$ 1,360												¥ 8,919
Series D-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Temporary equity, shares issued \| shares	42,329,835	42,329,835		42,329,835
Aggregate consideration	¥ 719,401	$ 110,000	719,401	$ 110,000
Issuance costs incurred	¥ 5,979	$ 916	¥ 5,979	$ 916
Threshold period for consummation of public offering															48 months	48 months

Convertible redeemable preferred shares - Repurchase of Preferred Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands												12 Months Ended
	Jan. 06, 2021 USD ($) $ / shares	Dec. 29, 2020 CNY (¥)	Dec. 29, 2020 USD ($) $ / shares shares	Dec. 10, 2020 CNY (¥)	Dec. 10, 2020 USD ($) $ / shares shares	Dec. 24, 2019 CNY (¥) shares	Dec. 24, 2019 USD ($)	Oct. 15, 2019 CNY (¥) shares	Oct. 15, 2019 USD ($) $ / shares shares	Jul. 25, 2017 CNY (¥) shares	Jul. 25, 2017 USD ($) shares	Dec. 31, 2021 CNY (¥)	Dec. 24, 2019 USD ($) $ / shares shares
Convertible redeemable preferred shares
Repurchase price \| $ / shares									$ 0.8218
Total consideration								¥ 63,065	$ 9,000
Deemed dividend to preferred shareholders								¥ 24,229	$ 3,512			¥ 104,036
Series Seed Convertible Redeemable Preferred Shares [Member]
Convertible redeemable preferred shares
Share repurchased and cancelled \| shares								7,301,030	7,301,030
Purchase price \| $ / shares									$ 0.4855
Share issued \| shares										85,185,184	85,185,184
Aggregate consideration										¥ 36,597	$ 5,345
Issuance costs incurred										¥ 305	$ 45
Series A Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Share repurchased and cancelled \| shares								3,654,318	3,654,318
Repurchase price \| $ / shares									$ 0.8218
Purchase price \| $ / shares									$ 0.5325
Share issued \| shares										37,037,035	37,037,035
Aggregate consideration										¥ 66,957	$ 10,000
Issuance costs incurred										¥ 570	$ 85
Series C-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Purchase price \| $ / shares	$ 2.2740												$ 0.9780
Share issued \| shares						10,224,598							10,224,598
Aggregate consideration	$ 74,498					¥ 71,531	$ 10,000
Issuance costs incurred						1,758	$ 252
Investor consideration not paid						¥ 24,458							$ 3,500
Series D-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares
Purchase price \| $ / shares			$ 2.5986		$ 2.5986
Share issued \| shares			42,329,835		42,329,835
Aggregate consideration		¥ 719,401	$ 110,000	¥ 719,401	$ 110,000
Issuance costs incurred		¥ 5,979	$ 916	¥ 5,979	$ 916

Share-based compensation - Expense (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based compensation
Stock-based compensation expense	¥ 28,245	¥ 30,673	¥ 29,755
General and administrative expenses
Share-based compensation
Stock-based compensation expense	21,383	23,688	24,015
Research and development expenses
Share-based compensation
Stock-based compensation expense	1,679	1,462	1,378
Selling expenses
Share-based compensation
Stock-based compensation expense	4,983	5,252	4,144
Cost of revenues
Share-based compensation
Stock-based compensation expense	¥ 200	¥ 271	¥ 218

Share-based compensation - Compensation expense for different awards (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based compensation
Stock-based compensation expense	¥ 28,245	¥ 30,673	¥ 29,755
Vesting of restricted shares
Share-based compensation
Stock-based compensation expense		6,607	12,415
RSUs
Share-based compensation
Stock-based compensation expense	17,878	20,130	17,340
Vesting of share options
Share-based compensation
Stock-based compensation expense	¥ 10,367	¥ 3,936	¥ 0

Share-based compensation - Restricted shares - Additional information (Details) ¥ in Thousands		12 Months Ended
	Jul. 25, 2017 shares	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥) $ / shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥) shares	Jun. 30, 2021 shares	Dec. 31, 2019 shares
Share-based compensation
Total income tax benefit recognized \| ¥		¥ 0		¥ 0	¥ 0
Unvested shares \| shares						20,250,000
Vesting of restricted shares
Share-based compensation
Number of shares issued to founders for services \| shares	81,000,000
Percentage of RSU to be vested each year	25.00%
Vesting period	4 years
Granted weighted average grant date fair value \| $ / shares			$ 0.0889
Fair value of shares vested \| ¥		0		6,607	¥ 12,415
Unvested shares \| shares					20,250,000		40,500,000
Employee stock options
Share-based compensation
Total unrecognized compensation cost related to share-based compensation arrangements \| ¥		¥ 26,456	$ 26,456	¥ 40,601
Remaining weighted-average period for recognition of total unrecognized compensation cost		2 years 7 months 20 days		3 years 7 months 20 days

Share-based compensation - Restricted shares (Details) - Vesting of restricted shares - $ / shares	12 Months Ended	24 Months Ended
	Dec. 31, 2020	Dec. 31, 2022
Number of Shares
Beginning Non vested shares	40,500,000	20,250,000
Vested Shares	(20,250,000)	(20,250,000)
Ending Non vested shares	20,250,000
Weighted Average Grant Date Fair Value
Beginning Non vested weighted average grant date fair value	$ 0.0889	$ 0.0889
Vested weighted average grant date fair value	0.0889	$ 0.0889
Ending Non vested weighted average grant date fair value	$ 0.0889

Share-based compensation - Restricted stock units - Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share Incentive Plan 2021
Share-based compensation
Contractual term	10 years
Vesting period	4 years
Share Incentive Plan 2021 \| First anniversary
Share-based compensation
Percentage of RSU to be vested each year	25.00%
Share Incentive Plan 2021 \| Second anniversary
Share-based compensation
Percentage of RSU to be vested each year	25.00%
Share Incentive Plan 2021 \| Third anniversary
Share-based compensation
Percentage of RSU to be vested each year	25.00%
Share Incentive Plan 2021 \| Fourth anniversary
Share-based compensation
Percentage of RSU to be vested each year	25.00%
RSUs
Share-based compensation
Fair value of shares vested	¥ 19,423	¥ 22,661	¥ 11,504
RSUs \| Smart Share CGY Holding Limited
Share-based compensation
Common stock shares issued	44,841,250
Ordinary shares authorized	44,841,250
Percentage of RSU to be vested each year	25.00%
Vesting period	4 years
RSUs \| Smart Share Brothers Holding Limited
Share-based compensation
Common stock shares issued	2,000,000
Ordinary shares authorized	2,000,000

Share-based compensation - RSU (Details) - $ / shares	1 Months Ended	12 Months Ended			24 Months Ended
Share-based compensation - RSU (Details) - $ / shares	Aug. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
RSUs
Number of Shares
Beginning Non vested shares		12,414,203	20,904,995	20,798,863	20,904,995
Granted shares				7,775,835
Vested Shares		(5,341,452)	(7,629,599)	(6,060,842)
Forfeited shares		(713,418)	(861,193)	(1,608,861)
Ending Non vested shares		6,359,333	12,414,203	20,904,995	6,359,333
Weighted Average Grant Date Fair Value
Beginning Non vested weighted average grant date fair value		$ 0.6037	$ 0.5415	$ 0.3119	$ 0.5415
Granted weighted average grant date fair value				0.9203
Vested weighted average grant date fair value		0.5265	0.4302	0.2753
Forfeited weighted average grant date fair value		0.7401	0.6266	0.4077
Ending Non vested weighted average grant date fair value		$ 0.6531	$ 0.6037	$ 0.5415	$ 0.6531
Employee stock options
Number of Shares
Granted	5,055,208		5,009,222
Cancelled		451,726	228,624
Vested and expected to vest, share options		4,272,912			4,272,912

Share-based compensation - RSU - Additional information (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares
Share-based compensation
Stock-based compensation expense	¥ 28,245		¥ 30,673	¥ 29,755
RSUs
Share-based compensation
Vested shares \| shares	5,341,452	5,341,452	7,629,599	6,060,842
Fair value of shares vested	¥ 19,423		¥ 22,661	¥ 11,504
Stock-based compensation expense	17,878		20,130	17,340
Total unrecognized compensation cost related to share-based compensation arrangements	¥ 17,413		¥ 39,525
Remaining weighted-average period for recognition of total unrecognized compensation cost	2 years 1 month 29 days	2 years 1 month 29 days	2 years 6 months 24 days
RSUs \| Employee stock
Share-based compensation
Vested shares \| shares			2,306,690
Fair value of shares vested	¥ 362	$ 91,860	¥ 21,848
Employee stock options
Share-based compensation
Stock-based compensation expense	10,367		3,936	¥ 0
Total unrecognized compensation cost related to share-based compensation arrangements	¥ 26,456		¥ 40,601
Remaining weighted-average period for recognition of total unrecognized compensation cost	2 years 7 months 20 days	2 years 7 months 20 days	3 years 7 months 20 days

Share based compensation - Option activities (Details) ¥ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2021 shares	Dec. 31, 2022 CNY (¥) $ / shares shares	Dec. 31, 2021 CNY (¥) $ / shares shares	Dec. 31, 2020 $ / shares	Dec. 31, 2022 $ / shares
Weighted Average Grant Date Fair Value per Share
Weighted Average Remaining Contractual Life		8 years 7 months 20 days	9 years 7 months 20 days
Weighted average remaining contractual life vested and expected to vest		8 years 7 months 20 days
Weighted average remaining contractual life, Exercisable		8 years 7 months 20 days
Aggregate Intrinsic Value \| ¥		¥ 16,667	¥ 21,945
Aggregate intrinsic value vested and expected to vest \| ¥		16,667
Aggregate intrinsic value, Exercisable \| ¥		¥ 4,151
RSUs
Weighted Average Grant Date Fair Value per Share
Granted weighted average grant date fair value				$ 0.9203
Forfeited weighted average grant date fair value		¥ 0.7401	¥ 0.6266	$ 0.4077
Employee stock options
Share Options
Beining balance of share options \| shares		4,780,598
Granted \| shares	5,055,208		5,009,222
Exercised \| shares		(55,960)
Cancelled \| shares		(451,726)	(228,624)
Ending balance of share options \| shares		4,272,912	4,780,598
Vested and expected to vest, share options \| shares		4,272,912
Exercisable \| shares		1,064,156
Weighted Average Grant Date Fair Value per Share
Beining balance of outstanding		¥ 1.4350
Granted			¥ 1.4350
Exercised		1.4350
Cancelled		1.4350	1.4350
Ending balance of outstanding		¥ 1.4350	¥ 1.4350
Vested and expected to vest, weighted average grant date fair value					$ 1.4350
Exercisable, weighted average grant date fair value					$ 1.4350

Share-based compensation - Estimated fair value (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Oct. 15, 2019
Share-based compensation
Purchase price per share		$ 0.8218
Employee stock options
Share-based compensation
Exercise price (US$)	$ 0.01
Purchase price per share	$ 1.445
Expected volatility	62.97%
Risk-free interest rate (per annum)	1.25%
Exercise multiple	2.2
Contractual term (in years)	10 years
Expected forfeiture rate (post-vesting)	5.24%

Loss per share - Basic loss per share and diluted loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands			12 Months Ended
	Oct. 15, 2019 CNY (¥)	Oct. 15, 2019 USD ($)	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Numerator:
Net income/(loss)			¥ (711,240)	$ (103,120)	¥ (124,615)	¥ 75,427
Less: Accretion on convertible redeemable preferred shares to redemption value \| ¥					(4,729,719)	(3,206,324)
Less: deemed dividend to the shareholders	¥ (24,229)	$ (3,512)			(104,036)
Net loss attributable to ordinary shareholders - basic and diluted			¥ (711,240)	$ (103,120)	¥ (4,958,370)	¥ (3,130,897)
Denominator:
Weighted average number of ordinary shares outstanding - basic			518,307,406	518,307,406	406,567,584	54,506,733
Weighted average number of ordinary shares outstanding - diluted			518,307,406	518,307,406	406,567,584	54,506,733
Net loss per share - basic \| (per share)			¥ (1.37)	$ (0.20)	¥ (12.20)	¥ (57.44)
Net loss per share - diluted \| (per share)			¥ (1.37)	$ (0.20)	¥ (12.20)	¥ (57.44)

Loss per share - Potentially dilutive securities (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net loss per share attributable to ordinary shareholders of Smart Share Global Limited
Shares issuable upon vesting of RSUs	490,148	10,723,068	12,973,563
Shares issuable upon vesting of share options		2,821,137
Shares issuable upon conversion of the Preferred Shares			305,355,746
Restricted shares that become outstanding upon vesting			28,022,113
Total	490,148	13,544,205	346,351,422

Related party transactions and balances - Balances with the major related parties (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Related party transactions and balances
Long-term prepayments to related parties	¥ 71	$ 10	¥ 20,037
Amounts due to related parties - current			23,290
Amounts due to related parties - non-current	1,000	$ 145	1,000
ZMI
Related party transactions and balances
Long-term prepayments to related parties	¥ 71		20,037
ZMI \| Maximum
Related party transactions and balances
Notes payable term	6 months	6 months
ZMI \| Minimum
Related party transactions and balances
Notes payable term	3 months	3 months
Nominee Shareholders of Shanghai Zhixiang
Related party transactions and balances
Amounts due to related parties - non-current	¥ 1,000		¥ 1,000

Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).

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