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Severely hit by the epidemic, the Energy Monster is having a hard time under the price hike tide.

Energy Monster released its second quarter 2022 financial results on September 8. The report shows that the company's second-quarter total revenue of CNY 690.5 million (USD 103.1 million), down 29% year-on-year; according to the U.S. General Accounting Standards (GAAP) net loss of CNY 184.5 million(USD 27.6 million), compared with a net profit of CNY 8.2 million in the same period last year. The financial report said that the main reason for the decline in performance was the impact of the epidemic which led to a plunge in offline foot traffic and a decline in the frequency of visits to Monster Charge's POIs.

The continued impact of the epidemic has made it more difficult to move in large shopping malls and offline stores, and Energy Monster has significantly slowed down the expansion of its core business. As of June 30, 2022, the total number of mobile power units provided by Energy Monster was 6 million. As of June 30, 2022, Energy Monster's service covered 895,000 POIs, compared to 861,000 as of March 31, 2022. As a comparison, Energy Monster's POI figures for 2021 are 845,000 and 664,000 for 2020.

Energy Monster's costs and expenses for the second quarter of 2022 were CNY 882 million, down 8% year-over-year. Of this, the cost of revenue was CNY 162.9 million, up 17.4% from CNY 138.7 million in the same period last year. The company explained that this was due to inventory backlog, equipment impairment, and increased maintenance costs.

In the second quarter of this year, Energy Monster's other revenues (mainly advertising and new business) were halved from a year ago to just CNY 4.5 million, according to the report.

Energy Monster expects revenue to reach CNY 770 million to CNY 800 million in the third quarter of 2022. After the release of the report, Energy Monster's share price closed at $0.81 on the same day, down 9.16% from the previous one.

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