MOGU Inc. (NYSE: MOGU) (“MOGU” or the “Company”), a KOL-driven
online fashion and lifestyle destination in China, today announced
its unaudited financial results for the six months ended September
30, 2024.
Mr. Fan Yiming, Chief Executive Officer of MOGU, commented, "In
the first half of fiscal year 2025, China’s online retail industry
entered a phase of intense competition for existing markets, marked
by a further decline in consumer purchasing appetite. All major
platforms responded by implementing highly competitive product
pricing and user benefits to attract customers, resulting in a
sharper-than-expected decline in MOGU’s user traffic during this
period. Meanwhile, the platform faced challenges with the lifecycle
of key opinion leaders (KOLs), which led to a decline in live
streaming hours and sales. Consequently, MOGU’s gross merchandise
value (GMV1) declined year-on-year in the first half of fiscal year
2025.
To address these challenges, we have been launching targeted
marketing initiatives focusing on high-value members during this
fiscal year, with an aim to increase both retention rates and
average revenue per user (ARPU) for these members. Meanwhile, we
leveraged the supply chain resources and service capabilities that
we have developed over the years to actively explore new business
opportunities on other platforms. To date, MOGU has successfully
signed dozens of fashion KOLs from other social e-commerce
platforms. After four months of operation, MOGU has quickly become
a live streaming service provider on these platforms. Additionally,
we formed live-streaming management partnerships with some brands,
helping them to establish a stable business model. We believe these
two new segments present growth potential and will contribute to
MOGU’s overall expansion beyond its core platform."
“During the first half of fiscal year of 2025, our total
revenues decreased by 25.7% to RMB61.9 million for the same period
of fiscal year 2024. The loss from operations was RMB41.4 million,
compared to RMB52.1 million for the same period of fiscal year
2024. Despite the efforts to improve operational efficiency, the
increasing cost of acquiring new customers and a decline in revenue
prevented us from achieving our targeted operational results.
Looking ahead, we will continue to focus on cost reduction and
efficiency enhancements and continue looking for new revenue growth
opportunities. We believe that these measures will contribute to
our overall financial resilience and sustainable growth,” added Ms.
Qi Feng, Financial Controller.
Highlights for the Six Months Ended September 30,
2024
- Total revenues for the six months ended September 30,
2024 decreased by 25.7% to RMB61.9 million (US$8.8 million) from
RMB83.3 million during the same period of fiscal year 2024.
- Live video broadcast (“LVB”) associated GMV for
the six months ended September 30, 2024 decreased by 34.7%
period-over-period to RMB1,395 million (US$198.8 million2).
- GMV for the six months ended September 30, 2024 was
RMB1,442 million (US$205.5 million), a decrease of 34.3%
period-over-period.
______________________________ 1 GMV are to gross merchandise
volume, refers to the total value of orders placed on the MOGU
platform regardless of whether the products are sold, delivered or
returned, calculated based on the listed prices of the ordered
products without taking into consideration any discounts on the
listed prices. Buyers on the MOGU platform are not charged for
separate shipping fees over the listed price of a product. If
merchants include certain shipping fees in the listed price of a
product, such shipping fees will be included in GMV. As a prudent
matter aiming at eliminating any influence on MOGU’s GMV of
irregular transactions, the Company excludes from its calculation
of GMV transactions over a certain amount (RMB100,000) and
transactions by users over a certain amount (RMB1,000,000) per
day.
2 The U.S. dollar (US$) amounts disclosed in this press release,
except for those transaction amounts that were actually settled in
U.S. dollars, are presented solely for the convenience of the
readers. The conversion of Renminbi (RMB) into US$ in this press
release is based on the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of September 30, 2024, which was RMB7.0176 to
US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.
Financial Results For the Six Months Ended September 30,
2024
Total revenues for the six months ended September 30,
2024 decreased by 25.7% to RMB61.9 million (US$8.8 million) from
RMB83.3 million during the same period of fiscal year 2024.
- Commission revenues for the six months ended September
30, 2024 decreased by 36.6% to RMB35.3 million (US$5.0 million)
from RMB55.6 million in the same period of fiscal year 2024,
primarily attributable to the lower GMV due to the heightened
competitive environment.
- Financing solutions revenues for the six months ended
September 30, 2024 decreased by 29.2% to RMB3.8 million (US$0.55
million) from RMB5.4 million in the same period of fiscal year
2024. The decrease was primarily due to the decrease in the service
fee of loans to users in line with the lower GMV.
- Technology services revenues for the six months ended
September 30, 2024 increased by 12.8% to RMB20.7 million (US$3.0
million) from RMB18.4 million in the same period of fiscal year
2024, primarily attributable to the increase of revenue generated
by one-stop customized services provided by Ruisha to corporate
customers.
- Other revenues for the six months ended September 30,
2024 decreased by 37.9% to RMB2.0 million (US$0.3 million) from
RMB3.1 million in the same period of fiscal year 2024.
Cost of revenues for the six months ended September 30, 2024
decreased by 20.2% to RMB39.6 million (US$5.6 million) from RMB49.6
million in the same period of fiscal year 2024, which was primarily
due to a decrease in IT-related expenses of RMB5.1 million and a
decrease in payroll costs of RMB1.6 million, in line with the
overall trend of reduction in revenue.
Sales and marketing expenses for the six months ended September
30, 2024 decreased by 29.3% to RMB26.4 million (US$3.8 million)
from RMB37.3 million in the same period of fiscal year 2024,
primarily due to a decrease in performance-related bonus of RMB4.5
million and user acquisition costs of RMB4.6 million.
Research and development expenses for the six months ended
September 30, 2024 decreased by 11.1% to RMB12.3 million (US$1.8
million) from RMB13.9 million in the same period of fiscal year
2024 due to a decrease in performance-related bonus.
General and administrative expenses for the six months ended
September 30, 2024 decreased by 2.8% to RMB27.1 million (US$3.9
million) from RMB27.9 million in the same period of fiscal year
2024, primarily due to a decrease in performance-related bonus.
Amortization of intangible assets for the six months ended
September 30, 2024 decreased by 95.9% to RMB0.1 million (US$0.01
million) from RMB1.8 million in the same period of the fiscal year
2024, primarily because the intangible assets recorded as a result
of the acquisition of Hangzhou Ruisha Technology Co., Ltd. (“Ruisha
Technology”) had been fully amortized and impaired as of September
30, 2023.
Impairment of intangible assets for the six months ended
September 30, 2024 decreased by 100.0% to nil from RMB9.9 million
in the same period of fiscal year 2024, primarily due to the
Company’s recognition of a full impairment charge of RMB9.9 million
against its intangible assets arising from the acquisition of
Ruisha Technology in the same period of fiscal year 2024.
Loss from operations for the six months ended September
30, 2024 was RMB41.4 million (US$5.9 million), compared to the loss
from operations of RMB52.1 million in the same period of fiscal
year 2024.
Net loss attributable to MOGU Inc. for the six months
ended September 30, 2024 was RMB24.1 million (US$3.4 million),
compared to the net loss attributable to MOGU Inc. of RMB35.4
million in the same period of fiscal year 2024.
Adjusted EBITDA3 for the six months ended September 30,
2024 was negative RMB35.0 million (US$5.0 million), compared to
negative RMB34.0 million in the same period of fiscal year
2024.
Adjusted net loss4 for the six months ended September 30,
2024 was RMB38.3 million (US$5.5 million), compared to the adjusted
net loss of RMB32.8 million in the same period of fiscal year
2024.
Basic and diluted loss per ADS for the six months ended
September 30, 2024 were RMB2.76 (US$0.39) and RMB2.76 (US$0.39),
respectively, compared with RMB4.11 and RMB4.11, respectively, in
the same period of fiscal year 2024. One ADS represents 300 Class A
ordinary shares.
Cash and cash equivalents, Restricted cash and Short-term
investments were RMB356.4 million (US$50.8 million) as of
September 30, 2024, compared with RMB420.6 million as of March 31,
2024.
______________________________ 3 Adjusted EBITDA represents net
loss before (i) interest income, gain from investments, net, income
tax (benefits)/expenses and share of results of equity method
investees, impairment of intangible assets and (ii) certain
non-cash expenses, consisting of share-based compensation expenses,
amortization of intangible assets, and depreciation of property and
equipment. See “Unaudited Reconciliations of GAAP and Non-GAAP
Results” at the end of this press release.
4 Adjusted net loss represents net loss excluding (i) gain from
investments, net, (ii) share-based compensation expenses, (iii)
impairment of intangible assets, (iv) adjustments for tax effects.
See “Unaudited Reconciliations of GAAP and Non-GAAP Results” at the
end of this press release.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
non-GAAP measures, such as Adjusted EBITDA and Adjusted net
income/loss as supplemental measures to review and assess operating
performance. The presentation of these non-GAAP financial measures
is not intended to be considered in isolation or as a substitute
for the financial information prepared and presented in accordance
with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). The Company defines Adjusted EBITDA as
net loss before interest income, gain from investments, net, income
tax (benefits)/expenses, share of results of equity investees,
impairment of intangible assets, share-based compensation expenses,
amortization of intangible assets, and depreciation of property and
equipment. The Company defines Adjusted net loss as net loss
excluding gain from investments, net, impairment of intangible
assets, share-based compensation expenses, and adjustments for tax
effects. See “Unaudited Reconciliations of GAAP and Non-GAAP
Results” at the end of this press release.
The Company presents these non-GAAP financial measures because
they are used by management to evaluate operating performance and
formulate business plans. The Company believes that the non-GAAP
financial measures help identify underlying trends in its business
by excluding certain expenses, gain/loss and other items that are
not expected to result in future cash payments or that are
nonrecurring in nature or may not be indicative of the Company’s
core operating results and business outlook. The Company also
believes that the non-GAAP financial measures could provide further
information about the Company’s results of operations, enhance the
overall understanding of the Company’s past performance and future
prospects.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. The
Company’s non-GAAP financial measures do not reflect all items of
income and expense that affect the Company’s operations and do not
represent the residual cash flow available for discretionary
expenditures. Further, these non-GAAP measures may differ from the
non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited. The
Company compensates for these limitations by reconciling the
non-GAAP financial measures to the nearest U.S. GAAP performance
measure, all of which should be considered when evaluating
performance. The Company encourages you to review the Company’s
financial information in its entirety and not rely on a single
financial measure.
For more information on the non-GAAP financial measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
Non-GAAP Results” set forth at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “aims,” “future,” “intends,”
“plans,” “believes,” “estimates,” “confident,” “potential,”
“continue” or other similar expressions. Among other things, the
business outlook and quotations from management in this
announcement, as well as MOGU’s strategic and operational plans,
contain forward-looking statements. MOGU may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including but not limited to statements about MOGU’s beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: MOGU’s growth strategies; its ability to
understand buyer needs and provide products and services to attract
and retain buyers; its ability to maintain and enhance the
recognition and reputation of its brand; its ability to rely on
merchants and third-party logistics service providers to provide
delivery services to buyers; its ability to maintain and improve
quality control policies and measures; its ability to establish and
maintain relationships with merchants; trends and competition in
China’s ecommerce market; changes in its revenues and certain cost
or expense items; the expected growth of China’s ecommerce market;
PRC governmental policies and regulations relating to MOGU’s
industry, and general economic and business conditions globally and
in China and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in MOGU’s filings with the SEC. All information provided
in this press release and in the attachments is as of the date of
this press release, and MOGU undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
About MOGU Inc.
MOGU Inc. (NYSE: MOGU) is a KOL-driven online fashion and
lifestyle destination in China. MOGU provides people with a more
accessible and enjoyable shopping experience for everyday fashion,
particularly as they increasingly live their lives online. By
connecting merchants, KOLs and users together, MOGU’s platform
serves as a valuable marketing channel for merchants, a powerful
incubator for KOLs, and a vibrant and dynamic community for people
to discover and share the latest fashion trends with others, where
users can enjoy a truly comprehensive online shopping
experience.
MOGU INC.
Unaudited Condensed
Consolidated Balance Sheets
(All amounts in thousands,
except for share and per share data)
As of March 31,
September 30,
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
358,787
84,356
12,021
Restricted cash
511
511
73
Short-term investments
61,312
271,525
38,692
Inventories, net
98
67
10
Loan receivables, net
31,564
28,759
4,098
Prepayments, receivables and other current
assets
54,956
95,562
13,617
Amounts due from related parties
587
331
47
Total current assets
507,815
481,111
68,558
Non-current assets:
Property and equipment, net
299,741
299,996
42,749
Intangible assets, net
949
871
124
Right-of-use assets
2,576
1,650
235
Investments
81,808
54,058
7,703
Other non-current assets
45,473
49,411
7,041
Total non-current assets
430,547
405,986
57,852
Total assets
938,362
887,097
126,410
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
6,862
3,567
508
Salaries and welfare payable
6,936
5,254
749
Advances from customers
207
627
89
Taxes payable
1,285
2,436
347
Amounts due to related parties
5,341
4,490
640
Current portion of lease liabilities
1,888
374
53
Accruals and other current liabilities
299,317
295,641
42,129
Total current liabilities
321,836
312,389
44,515
Non-current liabilities:
Non-current lease liabilities
773
386
55
Deferred tax liabilities
1,299
—
—
Total non-current liabilities
2,072
386
55
Total liabilities
323,908
312,775
44,570
Shareholders’ equity
Ordinary shares
181
181
26
Treasury stock
(137,446
)
(138,269
)
(19,703
)
Statutory reserves
3,331
3,331
475
Additional paid-in capital
9,489,254
9,489,994
1,352,313
Accumulated other comprehensive income
89,567
72,084
10,272
Accumulated deficit
(8,856,494
)
(8,880,623
)
(1,265,479
)
Total MOGU Inc. shareholders’ equity
588,393
546,698
77,904
Non-controlling interests
26,061
27,624
3,936
Total shareholders’ equity
614,454
574,322
81,840
Total liabilities and shareholders’
equity
938,362
887,097
126,410
MOGU INC.
Unaudited Condensed
Consolidated Statements of Operations and Comprehensive
Loss
(All amounts in thousands,
except for share and per share data)
For the six months
ended
September 30,
2023
2024
RMB
RMB
US$
Net revenues
Commission revenues
55,619
35,275
5,027
Marketing services revenues
746
63
9
Financing solutions revenues
5,403
3,827
545
Technology services revenues
18,388
20,734
2,955
Other revenues
3,146
1,954
278
Total revenues
83,302
61,853
8,814
Cost of revenues (exclusive of
amortization of intangible assets shown separately below)
(49,602
)
(39,560
)
(5,637
)
Sales and marketing expenses
(37,274
)
(26,362
)
(3,757
)
Research and development expenses
(13,879
)
(12,332
)
(1,757
)
General and administrative expenses
(27,914
)
(27,143
)
(3,868
)
Amortization of intangible assets
(1,826
)
(75
)
(11
)
Impairment of intangible assets
(9,945
)
—
—
Other income, net
5,059
2,172
310
Loss from operations
(52,079
)
(41,447
)
(5,906
)
Interest income
7,142
3,120
445
Gain from investments, net
1,267
16,468
2,347
Loss before income tax and share of
results of equity investees
(43,670
)
(21,859
)
(3,114
)
Income tax benefits/(expenses)
1,662
(7
)
(1
)
Share of results of equity method
investees
(504
)
(700
)
(100
)
Net loss
(42,512
)
(22,566
)
(3,215
)
Net (loss)/gain attributable to
non-controlling interests
(7,105
)
1,563
223
Net loss attributable to MOGU
Inc.
(35,407
)
(24,129
)
(3,438
)
Net loss
(42,512
)
(22,566
)
(3,215
)
Other comprehensive
income/(loss):
Foreign currency translation adjustments,
net of nil tax
4,970
(1,231
)
(175
)
Unrealized securities holding
gains/(losses), net of tax
1,702
(16,252
)
(2,316
)
Total comprehensive loss
(35,840
)
(40,049
)
(5,706
)
Total comprehensive (loss)/gain
attributable to non-controlling interests
(7,105
)
1,563
223
Total comprehensive loss attributable
to MOGU Inc.
(28,735
)
(41,612
)
(5,929
)
Net loss per share attributable to
ordinary shareholders
Basic
(0.01
)
(0.01
)
(0.00
)
Diluted
(0.01
)
(0.01
)
(0.00
)
Net loss per ADS
Basic
(4.11
)
(2.76
)
(0.39
)
Diluted
(4.11
)
(2.76
)
(0.39
)
Weighted average number of shares used
in computing net loss per share
Basic
2,581,758,960
2,620,311,457
2,620,311,457
Diluted
2,581,758,960
2,620,311,457
2,620,311,457
Share-based compensation expenses
included in:
Cost of revenues
415
34
5
General and administrative expenses
1,763
604
86
Sales and marketing expenses
419
14
2
Research and development expenses
192
88
13
MOGU INC.
Unaudited Condensed
Consolidated Statements of Cash Flows
(All amounts in thousands,
except for share and per share data)
For the six months
ended
September 30,
2023
2024
RMB
RMB
US$
Net cash used in operating
activities
(32,907
)
(28,953
)
(4,126
)
Net cash used in investing
activities
(20,779
)
(244,012
)
(34,771
)
Net cash used in financing
activities
—
(822
)
(117
)
Effect of foreign exchange rate changes on
cash and cash equivalents and restricted cash
3,336
(644
)
(92
)
Net decrease in cash and cash equivalents
and restricted cash
(50,350
)
(274,431
)
(39,106
)
Cash and cash equivalents and restricted
cash at beginning of period
417,011
359,298
51,200
Cash and cash equivalents and restricted
cash at end of period
366,661
84,867
12,094
MOGU INC.
Unaudited Reconciliations of
GAAP and Non-GAAP Results
(All amounts in thousands,
except for share and per share data)
For the six months
ended
September 30,
2023
2024
RMB
RMB
US$
Net loss
(42,512
)
(22,566
)
(3,215
)
Less:
Income tax (benefits)/expenses
(1,662
)
7
1
Less:
Interest income
(7,142
)
(3,120
)
(445
)
Add:
Amortization of intangible assets
1,826
75
11
Add:
Depreciation of property and equipment
3,529
5,636
803
EBITDA
(45,961
)
(19,968
)
(2,845
)
Add:
Impairment of intangible assets
9,945
—
—
Add:
Share-based compensation expenses
2,789
740
106
Add:
Share of result of equity method
investees
504
700
100
Less:
Gain from investments, net
(1,267
)
(16,468
)
(2,347
)
Adjusted EBITDA
(33,990
)
(34,996
)
(4,986
)
Net loss
(42,512
)
(22,566
)
(3,215
)
Add:
Gain from investments, net
(1,267
)
(16,468
)
(2,347
)
Add:
Share-based compensation expenses
2,789
740
106
Add:
Impairment of intangible assets
9,945
—
—
Less:
Adjusted for tax effects
(1,755
)
—
—
Adjusted net loss
(32,800
)
(38,294
)
(5,456
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241122771856/en/
For investor and media inquiries, please contact:
MOGU Inc.
Ms. Qi Feng Phone: +86-571-8530-8201 E-mail: ir@mogu.com
Christensen
In China Ms. Rachel Xia Phone: +852-2232-3980 E-mail:
rachel.xia@christensencomms.com
In the United States Ms. Linda Bergkamp Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
MOGU (NYSE:MOGU)
Historical Stock Chart
From Dec 2024 to Jan 2025
MOGU (NYSE:MOGU)
Historical Stock Chart
From Jan 2024 to Jan 2025
