MOGU Declares Unaudited Monetary Outcomes for the Six Months Ended September 30, 2022

MOGU Announces Unaudited Financial Results for the Six Months Ended September 30, 2022

MOGU Declares Unaudited Monetary Outcomes for the Six Months Ended September 30, 2022

MOGU Inc. (NYSE: MOGU) (“MOGU” or the “Firm”), a KOL-driven on-line vogue and way of life vacation spot in China, as we speak introduced its unaudited monetary outcomes for the six months ended September 30, 2022.

Mr. Chen Qi, Chairman and Chief Government Officer of MOGU, commented, “In 2022, the Stay eCommerce business confronted many challenges, together with ongoing macro surroundings uncertainty, the impression of the COVID-19 resurgence in China on consumption demand and an intensifying competitors amongst the main reside platforms. Particularly, COVID-19 journey restrictions affected the achievement of orders nationwide leading to each gross sales quantity and income coming in beneath expectations. The Gross Merchandise Worth (“GMV

2

”) and income of MOGU decreased by 48.1% and 32.2% to RMB2,828 million (US$397.6 million1) and RMB114.8 million (US$16.1 million) period-over-period, respectively. Regardless of these challenges, we proactively explored new alternatives.”

“Throughout the first half of fiscal 12 months of 2023, our whole revenues decreased by 32.2% to RMB114.8 million. We continued to take a holistic method to enhance our working effectivity and optimize prices all through the Firm to scale back loss from operations. The adjusted EBITDA and loss from operations have been unfavorable RMB17.1 million and RMB48.1 million, in contrast with unfavorable RMB72.7 million and RMB430.1 million, respectively, for a similar interval of fiscal 12 months 2022. We’re persevering with to discover new enterprise alternatives to diversify our income construction.” added Ms. Qi Feng, Monetary Controller.


Highlights for the Six Months ended September 30, 2022


  • Complete revenues

    for the six months ended September 30, 2022 decreased by 32.2% to RMB114.8 million (US$16.1 million) from RMB169.5 million throughout the identical interval of the fiscal 12 months 2022.

  • Stay Video Broadcast (LVB)

    related GMV for the six months ended September 30, 2022 decreased by 45.6% period-over-period to RMB2,703 million (US$379.9 million

    1

    ). LVB related GMV for the six months ended September 30, 2022 accounted for 95.6% of our whole GMV.

  • Gross Merchandise Worth (GMV

    2

    )

    for the six months ended September 30, 2022 was RMB2,828 million (US$397.6 million), a lower of 48.1% period-over-period.


Monetary Outcomes for the Six Months ended September 30, 2022


Complete revenues

for the six months ended September 30, 2022 decreased by 32.2% to RMB114.8 million (US$16.1 million) from RMB169.5 million throughout the identical interval of the fiscal 12 months 2022.


  • Fee revenues

    for the six months ended September 30, 2022


    decreased by 38.6% to RMB71.7 million (US$10.1 million) from RMB116.8 million in the identical interval of the fiscal 12 months 2022, primarily attributable to the decrease GMV as a result of heightened aggressive surroundings and the COVID-19 pandemic resurgence.

  • Advertising companies revenues

    for the six months ended September 30, 2022 decreased by 77.1% to RMB3.0 million (US$0.4 million) from RMB13.0 million in the identical interval of the fiscal 12 months 2022, primarily as a result of difficult aggressive surroundings.

  • Financing options revenues

    for the six months ended September 30, 2022 decreased by 67.7% to RMB6.9 million (US$1.0 million) from RMB21.5 million in the identical interval of the fiscal 12 months 2022. The lower was primarily as a result of lower within the service charge of loans to customers consistent with the decrease GMV.

  • Expertise service revenues

    for the six months ended September 30, 2022 elevated by 170.8% to RMB28.1 million(US$3.9 million) from RMB10.4 million in the identical interval of fiscal 12 months 2022, primarily attributable to the mix of Hangzhou Ruisha Expertise Co. Ltd. (“Ruisha”) in July 2021, which is dedicated to offering manufacturers retailers with one-stop and customised companies for full-domain operations, together with all kinds of operational companies, information platforms, and different software program companies, in addition to value-added companies resembling site visitors placement.

  • Different revenues

    for the six months ended September 30, 2022 decreased by 34.0% to RMB5.2 million (US$0.7 million) from RMB7.8 million in the identical interval of the fiscal 12 months 2022.


Price of revenues

for the six months ended September 30, 2022 decreased by 29.9% to RMB59.6 million (US$8.4 million) from RMB85.1 million in the identical interval of the fiscal 12 months 2022, which was primarily as a result of lower in payroll, IT-related bills and fee dealing with and outsourcing prices, correlating with general discount in income.


Gross sales and advertising bills

for the six months ended September 30, 2022


decreased by 64.8% to RMB32.6 million (US$4.6 million) from RMB92.8 million in the identical interval of the fiscal 12 months 2022, primarily attributable to optimized spending on branding and consumer acquisition actions, consistent with discount in income.


Analysis and improvement bills

for the six months ended September 30, 2022


decreased by 53.7% to RMB20.9 million (US$2.9 million) from RMB45.2 million in the identical interval of the fiscal 12 months 2022, primarily attributable to a lower in payroll prices.


Normal and administrative bills

for the six months ended September 30, 2022


decreased by 22.2% to RMB32.7 million (US$4.6 million) from RMB42.1 million in the identical interval of the fiscal 12 months 2022, primarily attributable to a lower in skilled service charges and payroll prices.


Amortization of intangible belongings

for the six months ended September 30, 2022 decreased by 87.5% to RMB20.0 million (US$2.8 million) from RMB160.2 million in the identical interval of the fiscal 12 months 2022, primarily as a result of nearly all of the intangible belongings recorded because of the enterprise cooperation settlement MOGU entered into with Tencent in July 2018 have been totally amortized as of March 31, 2022.


Loss from operations

for the six months ended September 30, 2022 was RMB48.1 million (US$6.8 million), in comparison with a loss from operations of RMB430.1 million in the identical interval of the fiscal 12 months 2022, primarily attributable to the goodwill impairment of RMB186.5 million and extra amortization of intangible belongings incurred within the first half of the fiscal 12 months 2022.


Web loss attributable to MOGU Inc.

for the six months ended September 30, 2022


was RMB57.4 million (US$8.1 million), in comparison with a web loss attributable to MOGU Inc. of RMB411.9 million in the identical interval of the fiscal 12 months 2022.


Adjusted EBITDA

3


for the six months ended September 30, 2022 was unfavorable RMB17.1 million (US$2.4 million), in comparison with unfavorable RMB72.7 million in the identical interval of the fiscal 12 months 2022.


Adjusted web loss

4


for the six months ended September 30, 2022 was RMB11.8 million (US$1.7 million), in comparison with an adjusted web lack of RMB69.9 million in the identical interval of the fiscal 12 months 2022.


Fundamental and diluted loss per ADS

for the six months ended September 30, 2022 have been RMB6.79 (US$0.95) and RMB6.79 (US$0.95), respectively, in contrast with RMB49.07 and RMB49.07, respectively, in the identical interval of the fiscal 12 months 2022. Every ADS represents 300 Class A odd shares.


Money and money equivalents, Restricted money and Brief-term investments

have been RMB604.8 million (US$85.0 million) as of September 30, 2022, in contrast with RMB636.3 million as of March 31, 2022.


Use of Non-GAAP Monetary Measures

In evaluating the enterprise, the Firm considers and makes use of non-GAAP measures, resembling Adjusted EBITDA and Adjusted web loss as supplemental measures to evaluate and assess working efficiency. The presentation of those non-GAAP monetary measures is just not meant to be thought-about in isolation or as an alternative to the monetary data ready and offered in accordance with accounting ideas typically accepted in america of America (“U.S. GAAP”). The Firm defines Adjusted EBITDA as web loss earlier than curiosity revenue, curiosity expense, (achieve)/loss from investments, web, revenue tax advantages, share of outcomes of fairness investees, goodwill impairment, share-based compensation bills, amortization of intangible belongings, and depreciation of property and gear. The Firm defines Adjusted web loss as web loss excluding (achieve)/loss from investments, web, goodwill impairment, share-based compensation bills, amortization of intangible belongings, and changes for tax results. See “Unaudited Reconciliations of GAAP and Non-GAAP Outcomes” on the finish of this press launch.

The Firm presents these non-GAAP monetary measures as a result of they’re utilized by administration to guage working efficiency and formulate enterprise plans. The Firm believes that the non-GAAP monetary measures assist determine underlying tendencies in its enterprise by excluding sure bills, achieve/loss and different objects that aren’t anticipated to end in future money funds or which might be non-recurring in nature or might not be indicative of the Firm’s core working outcomes and enterprise outlook. The Firm additionally believes that the non-GAAP monetary measures may present additional details about the Firm’s outcomes of operations, improve the general understanding of the Firm’s previous efficiency and future prospects.

The non-GAAP monetary measures aren’t outlined beneath U.S. GAAP and aren’t offered in accordance with U.S. GAAP. The non-GAAP monetary measures have limitations as analytical instruments. The Firm’s non-GAAP monetary measures don’t mirror all objects of revenue and expense that have an effect on the Firm’s operations and don’t signify the residual money stream accessible for discretionary expenditures. Additional, these non-GAAP measures might differ from the non-GAAP data utilized by different firms, together with peer firms, and due to this fact their comparability could also be restricted. The Firm compensates for these limitations by reconciling the non-GAAP monetary measures to the closest U.S. GAAP efficiency measure, all of which needs to be thought-about when evaluating efficiency. The Firm encourages you to evaluate the Firm’s monetary data in its entirety and never depend on a single monetary measure.

For extra data on the non-GAAP monetary measures, please see the desk captioned “Unaudited Reconciliations of GAAP and Non-GAAP Outcomes” set forth on the finish of this press launch.


Protected Harbor Assertion

This announcement comprises forward-looking statements. These statements are made beneath the “protected harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements could be recognized by terminology resembling “will,” “expects,” “anticipates,” “goals,” “future,” “intends,” “plans,” “believes,” “estimates,” “assured,” “potential,” “proceed” or different comparable expressions. Amongst different issues, the enterprise outlook and quotations from administration on this announcement, in addition to MOGU’s strategic and operational plans, include forward-looking statements. MOGU may make written or oral forward-looking statements in its periodic reviews to the U.S. Securities and Trade Fee (the “SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. Statements that aren’t historic details, together with however not restricted to statements about MOGU’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Quite a lot of elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: MOGU’s progress methods; the chance that COVID-19 or different well being dangers in China or globally may adversely have an effect on its operations or monetary outcomes; its future enterprise improvement, outcomes of operations and monetary situation; its means to know purchaser wants and supply services and products to draw and retain consumers; its means to take care of and improve the popularity and fame of its model; its means to depend on retailers and third-party logistics service suppliers to offer supply companies to consumers; its means to take care of and enhance high quality management insurance policies and measures; its means to determine and keep relationships with retailers; tendencies and competitors in China’s e­commerce market; adjustments in its revenues and sure price or expense objects; the anticipated progress of China’s e­commerce market; PRC governmental insurance policies and laws referring to MOGU’s business, and basic financial and enterprise situations globally and in China and assumptions underlying or associated to any of the foregoing. Additional data relating to these and different dangers is included in MOGU’s filings with the SEC. All data offered on this press launch and within the attachments is as of the date of this press launch, and MOGU undertakes no obligation to replace any forward-looking assertion, besides as required beneath relevant regulation.


About MOGU Inc.

MOGU Inc. (NYSE: MOGU) is a KOL-driven on-line vogue and way of life vacation spot in China. MOGU supplies folks with a extra accessible and pleasing procuring expertise for on a regular basis vogue, significantly as they more and more reside their lives on-line. By connecting retailers, KOLs and customers collectively, MOGU’s platform serves as a invaluable advertising channel for retailers, a strong incubator for KOLs, and a vibrant and dynamic group for folks to find and share the most recent vogue tendencies with others, the place customers can get pleasure from a really complete on-line procuring expertise.


MOGU INC.


Unaudited Interim Condensed Consolidated Stability Sheets


(All quantities in 1000’s, aside from share and per share information)


As of March 31,


As of September 30,


2022


2022


RMB


RMB


US$


ASSETS


Present belongings:

Money and money equivalents

438,608

392,970

55,243

Restricted money

809

809

114

Brief-term investments

196,853

211,049

29,669

Inventories, web

79

84

12

Mortgage receivables, web

26,788

9,739

1,369

Prepayments and different present belongings

55,135

54,073

7,600

Quantities due from associated events

640

779

110


Complete present belongings


718,912


669,503


94,117


Non-current belongings:

Property, gear and software program, web

7,702

5,881

827

Intangible belongings, web

89,822

74,414

10,461

Proper-of-use belongings*

12,394

1,742

Goodwill

63,460

63,460

8,921

Investments

72,120

61,392

8,630

Different non-current belongings

214,964

236,363

33,227


Complete non-current belongings


448,068


453,904


63,808


Complete belongings


1,166,980


1,123,407


157,925


LIABILITIES AND SHAREHOLDERS’ EQUITY


Present liabilities:

Brief-term borrowings

10,064

11,635

1,636

Accounts payable

17,950

15,564

2,188

Salaries and welfare payable

12,311

9,455

1,329

Advances from prospects

901

326

46

Taxes payable

3,265

2,171

305

Quantities attributable to associated events

4,694

2,990

420

Present portion of lease liabilities*

6,675

938

Accruals and different present liabilities

272,638

262,085

36,845


Complete present liabilities


321,823


310,901


43,707


Non-current liabilities:

Non-current lease liabilities*

3,175

446

Deferred tax liabilities

12,112

10,877

1,529

Different non-current liabilities

890

332

47


Complete non-current liabilities


13,002


14,384


2,022


Complete liabilities


334,825


325,285


45,729


SHAREHOLDERS’ EQUITY

Odd shares

181

181

25

Treasury inventory

(136,113

)

(137,446

)

(19,322

)

Statutory reserves

3,331

3,331

468

Extra paid-in capital

9,471,101

9,479,937

1,332,668

Amassed different complete revenue

69,016

86,325

12,135

Amassed deficit

(8,617,780

)

(8,675,218

)

(1,219,543

)

Complete MOGU Inc. shareholders’ fairness

789,736

757,110

106,431

Non-controlling pursuits


42,419


41,012


5,765


Complete shareholders’ fairness


832,155


798,122


112,196


Complete liabilities and shareholders’ fairness


1,166,980


1,123,407


157,925

*On April 1, 2022, the Firm adopted ASC 842, Leases and used the extra transition technique to initially apply this new lease commonplace on the adoption date. Proper-of-use belongings and lease liabilities have been acknowledged on the Firm’s consolidated monetary statements.


MOGU INC.


Unaudited Interim Condensed Consolidated Statements of Operations and Complete Loss


(All quantities in 1000’s, aside from share and per share information)


For the six months ended


September 30,


2021


2022


RMB


RMB


US$


Web revenues

Fee revenues

116,807

71,700

10,079

Advertising companies revenues

13,006

2,982

419

Financing options revenues

21,485

6,930

974

Expertise service revenues

10,368

28,077

3,947

Different revenues

7,808

5,157

725


Complete revenues


169,474


114,846


16,144

Price of revenues (unique of amortization of intangible belongings proven individually beneath)

(85,133

)

(59,641

)

(8,384

)

Gross sales and advertising bills

(92,772

)

(32,646

)

(4,589

)

Analysis and improvement bills

(45,227

)

(20,922

)

(2,941

)

Normal and administrative bills

(42,095

)

(32,741

)

(4,603

)

Amortization of intangible belongings

(160,190

)

(20,022

)

(2,815

)

Goodwill impairment

(186,504

)

Different revenue, web

12,310

3,066

431


Loss from operations


(430,137


)


(48,060


)


(6,757


)

Curiosity revenue

7,001

9,013

1,267

Curiosity expense

(328

)

(46

)

Achieve/(loss) from investments, web

7,822

(19,431

)

(2,732

)


Loss earlier than revenue tax and share of outcomes of fairness investees


(415,314


)


(58,806


)


(8,268


)

Earnings tax advantages

1,715

1,086

153

Share of outcomes of fairness investee

(418

)

(1,125

)

(158

)


Web loss


(414,017


)


(58,845


)


(8,273


)

Web loss attributable to non-controlling pursuits

(2,091

)

(1,407

)

(198

)


Web loss attributable to MOGU Inc.


(411,926


)


(57,438


)


(8,075


)


Web loss


(414,017


)


(58,845


)


(8,273


)


Different complete revenue/(loss):

Overseas foreign money translation changes, web of nil tax

(10,656

)

18,495

2,600

Unrealized securities holding losses, web of tax

(10,213

)

(1,186

)

(167

)


Complete complete loss


(434,886


)


(41,536


)


(5,840


)

Complete complete loss attributable to non-controlling pursuits

(2,091

)

(1,407

)

(198

)


Complete complete loss attributable to MOGU Inc.


(432,795


)


(40,129


)


(5,642


)


Web loss per share attributable to odd shareholders

Fundamental

(0.16

)

(0.02

)

(0.00

)

Diluted

(0.16

)

(0.02

)

(0.00

)


Web loss per ADS

Fundamental

(49.07

)

(6.79

)

(0.95

)

Diluted

(49.07

)

(6.79

)

(0.95

)


Weighted common variety of shares utilized in computing web loss per share

Fundamental

2,518,428,173

2,537,852,017

2,537,852,017

Diluted

2,518,428,173

2,537,852,017

2,537,852,017


Share-based compensation bills included in:

Price of revenues

1,241

808

114

Normal and administrative bills

3,668

5,069

713

Gross sales and advertising bills

2,762

2,448

344

Analysis and improvement bills

244

511

71


MOGU INC.


Unaudited Interim Condensed Consolidated Statements of Money Flows


(All quantities in 1000’s, aside from share and per share information)


For the six months ended


September 30,


2021


2022


RMB


RMB


US$


Web money utilized in working actions

(73,528

)

(16,020

)

(2,252

)


Web money offered by/(utilized in) investing actions

49,458

(28,155

)

(3,957

)


Web money utilized in financing actions

(8,365

)

(2,972

)

(418

)

Impact of international trade charge adjustments on money and money equivalents and restricted money

(2,594

)

1,509

212

Web lower in money and money equivalents and restricted money

(35,029

)

(45,638

)

(6,415

)

Money and money equivalents and restricted money at starting of interval

542,884

439,417

61,772

Money and money equivalents and restricted money at finish of interval

507,855

393,779

55,357


MOGU INC.


Reconciliations of GAAP and Non-GAAP Outcomes


(All quantities in 1000’s, aside from share and per share information)


For the six months ended


September 30,


2021


2022


RMB


RMB


US$


Web loss


(414,017


)


(58,845


)


(8,273


)

Add:

Curiosity expense

328

46

Much less:

Earnings tax advantages

(1,715

)

(1,086

)

(153

)

Much less:

Curiosity revenue

(7,001

)

(9,013

)

(1,267

)

Add:

Amortization of intangible belongings

160,190

20,022

2,815

Add:

Depreciation of property and gear

2,797

2,067

291


EBITDA


(259,746


)


(46,527


)


(6,541


)

Add:

Goodwill impairment

186,504

Add:

Share-based compensation bills

7,915

8,836

1,242

Add:

Share of results of fairness investees

418

1,125

158

Much less:

(Achieve)/loss from investments, web

(7,822

)

19,431

2,732


Adjusted EBITDA


(72,731


)


(17,135


)


(2,409


)


Web loss


(414,017


)


(58,845


)


(8,273


)

Much less:

(Achieve)/loss from investments, web

(7,822

)

19,431

2,732

Add:

Share-based compensation bills

7,915

8,836

1,242

Add:

Goodwill impairment

186,504

Add:

Amortization of intangible belongings

160,190

20,022

2,815

Much less:

Adjusted for tax results

(2,672

)

(1,235

)

(174

)


Adjusted web loss


(69,902


)


(11,791


)


(1,658


)


1

The U.S. greenback (US$) quantities disclosed on this press launch, aside from these transaction quantities that have been truly settled in U.S. {dollars}, are offered solely for the comfort of the readers. The conversion of Renminbi (RMB) into US$ on this press launch is predicated on the trade charge set forth within the H.10 statistical launch of the Board of Governors of the Federal Reserve System as of September 30, 2022, which was RMB7.1135 to US$1.00. The odds said on this press launch are calculated primarily based on the RMB quantities.


2

GMV refers back to the whole worth of orders positioned on the MOGU platform no matter whether or not the merchandise are bought, delivered or returned, calculated primarily based on the listed costs of the ordered merchandise with out taking into account any reductions on the listed costs. Consumers on the MOGU platform aren’t charged for separate transport charges over the listed value of a product. If retailers embrace sure transport charges within the listed value of a product, such transport charges can be included in GMV. As a prudent matter aiming at eliminating any affect on MOGU’s GMV of irregular transactions, the Firm excludes from its calculation of GMV transactions over a specific amount (RMB100,000) and transactions by customers over a specific amount (RMB1,000,000) per day.


3

Adjusted EBITDA represents web loss earlier than (i) curiosity revenue, curiosity expense, (achieve)/Loss from investments, web, revenue tax advantages and share of outcomes of fairness investee, goodwill impairment and (ii) sure non-cash bills, consisting of share-based compensation bills, amortization of intangible belongings, and depreciation of property and gear. See “Unaudited Reconciliations of GAAP and Non­GAAP Outcomes” on the finish of this press launch.


4

Adjusted web loss represents web loss excluding (i) (achieve)/Loss from investments, web, (ii) share-based compensation bills, (iii) goodwill impairment, (iv)amortization of intangible belongings, (v) changes for tax results. See “Unaudited Reconciliations of GAAP and Non­GAAP Outcomes” on the finish of this press launch.


https://www.businesswire.com/information/house/20230303005111/en/


For investor and media inquiries:


M


OGU Inc.

Ms. Qi Feng

Cellphone: +86-571-8530-8201

E-mail:

ir@mogu.com


Christensen Advisory

In China

Mr. Eric Yuan

Cellphone: +86-10-5900-1548

E-mail:

eric.yuan@christensencomms.com

In america

Ms. Linda Bergkamp

Cellphone: +1-480-614-3004

Electronic mail:

linda.bergkamp@christensencomms.com

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