MOGU Announces Unaudited Financial Results for the Six Months Ended September 30, 2023
- 22.3% decrease in GMV for the six months ended September 30, 2023
- Efforts to optimize cost structure and improve operational efficiency
- Focus on cost reduction and efficiency enhancements for sustainable growth
- 27.5% decrease in total revenues for the six months ended September 30, 2023
- 20.9% decrease in LVB associated GMV
- Loss from operations of RMB 52.1 million
- Net loss attributable to MOGU Inc. of RMB 35.4 million
Mr. Fan Yiming, Chief Executive Officer of MOGU, commented, “Throughout 2023,
In order to cope with this new competition, we have proactively adjusted our commodity categories and supply chain. In the past months, we have restructured our platform from a traditional e-commerce platform to a professional service platform in beauty and personal care, health, baby, foods and other categories. We also provide the merchants on our platform with a series of differentiated services in sourcing supply chain, product selection, brand extension and other support. These measures drove our users' growth in some commodity categories. In the future, we will further strengthen our e-commerce live streaming service capabilities and channels to generate new business growth points.”
“During the first half of fiscal year of 2024, our total revenues decreased by
Highlights For the Six Months Ended September 30, 2023
-
Total revenues for the six months ended September 30, 2023 decreased by
27.5% toRMB83.3 million (US ) from$11.4 million RMB114.8 million during the same period of the fiscal year 2023. -
Live video broadcast (“LVB”) associated GMV for the six months ended September 30, 2023 decreased by
20.9% period-over-period toRMB2,137 million (US 2).$292.9 million
-
GMV for the six months ended September 30, 2023 was
RMB2,196 million (US ), a decrease of$301.0 million 22.3% period-over-period.
Financial Results For the Six Months Ended September 30, 2023
Total revenues for the six months ended September 30, 2023 decreased by
-
Commission revenues for the six months ended September 30, 2023 decreased by
22.4% toRMB55.6 million (US ) from$7.6 million RMB71.7 million in the same period of the fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment. -
Marketing services revenues for the six months ended September 30, 2023 decreased by
75.0% toRMB0.7 million (US ) from$0.1 million RMB3.0 million in the same period of the fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment. -
Financing solutions revenues for the six months ended September 30, 2023 decreased by
22.0% toRMB5.4 million (US ) from$0.7 million RMB6.9 million in the same period of the fiscal year 2023. The decrease was primarily due to the decrease in the service fee of loans to users in line with the lower GMV. -
Technology service revenues for the six months ended September 30, 2023 decreased by
34.5% toRMB18.4 million (US ) from$2.5 million RMB28.1 million in the same period of fiscal year 2023, primarily attributable to the decrease of software service revenue as a result of weaker-than-expected operating results of Ruisha Technology. -
Other revenues for the six months ended September 30, 2023 decreased by
39.0% toRMB3.1 million (US ) from$0.4 million RMB5.2 million in the same period of the fiscal year 2023, primarily due to the decrease of promotion services revenue provided to financial institutions.
Cost of revenues for the six months ended September 30, 2023 decreased by
Sales and marketing expenses for the six months ended September 30, 2023 increased by
Research and development expenses for the six months ended September 30, 2023 decreased by
General and administrative expenses for the six months ended September 30, 2023 decreased by
Amortization of intangible assets for the six months ended September 30, 2023 decreased by
Impairment of intangible assets for the six months ended September 30, 2023 increased to
Loss from operations for the six months ended September 30, 2023 was
Net loss attributable to MOGU Inc. for the six months ended September 30, 2023 was
Adjusted EBITDA3 for the six months ended September 30, 2023 was negative
Adjusted net loss4 for the six months ended September 30, 2023 was
Basic and diluted loss per ADS for the six months ended September 30, 2023 were
Cash and cash equivalents, Restricted cash and Short-term investments were
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 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
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
About MOGU Inc.
MOGU Inc. (NYSE: MOGU) is a KOL-driven online fashion and lifestyle destination in
MOGU INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except for share and per share data)
|
|
As of March 31, |
|
|
As of September 30, |
|
||||||
|
|
2023 |
|
|
2023 |
|
||||||
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
|
416,201 |
|
|
|
366,151 |
|
|
|
50,185 |
|
Restricted cash |
|
|
810 |
|
|
|
510 |
|
|
|
70 |
|
Short-term investments |
|
|
145,836 |
|
|
|
103,679 |
|
|
|
14,210 |
|
Inventories, net |
|
|
144 |
|
|
|
113 |
|
|
|
15 |
|
Loan receivables, net* |
|
|
7,229 |
|
|
|
3,278 |
|
|
|
449 |
|
Prepayments, receivables and other current assets* |
|
|
69,126 |
|
|
|
99,135 |
|
|
|
13,588 |
|
Amounts due from related parties |
|
|
1,260 |
|
|
|
1,311 |
|
|
|
180 |
|
Total current assets |
|
|
640,606 |
|
|
|
574,177 |
|
|
|
78,697 |
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
194,589 |
|
|
|
222,228 |
|
|
|
30,459 |
|
Intangible assets, net |
|
|
12,554 |
|
|
|
1,026 |
|
|
|
141 |
|
Right-of-use assets |
|
|
5,441 |
|
|
|
2,155 |
|
|
|
295 |
|
Investments |
|
|
69,318 |
|
|
|
82,231 |
|
|
|
11,271 |
|
Other non-current assets* |
|
|
63,640 |
|
|
|
46,430 |
|
|
|
6,364 |
|
Total non-current assets |
|
|
345,542 |
|
|
|
354,070 |
|
|
|
48,530 |
|
Total assets |
|
|
986,148 |
|
|
|
928,247 |
|
|
|
127,227 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
|
8,179 |
|
|
|
6,480 |
|
|
|
888 |
|
Salaries and welfare payable |
|
|
13,550 |
|
|
|
8,293 |
|
|
|
1,137 |
|
Advances from customers |
|
|
245 |
|
|
|
55 |
|
|
|
8 |
|
Taxes payable |
|
|
11,126 |
|
|
|
3,809 |
|
|
|
522 |
|
Amounts due to related parties |
|
|
4,196 |
|
|
|
4,692 |
|
|
|
643 |
|
Current portion of lease liabilities |
|
|
2,654 |
|
|
|
1,485 |
|
|
|
204 |
|
Accruals and other current liabilities |
|
|
270,717 |
|
|
|
265,218 |
|
|
|
36,351 |
|
Total current liabilities |
|
|
310,667 |
|
|
|
290,032 |
|
|
|
39,753 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Non-current lease liabilities |
|
|
753 |
|
|
|
— |
|
|
|
— |
|
Deferred tax liabilities |
|
|
3,369 |
|
|
|
1,614 |
|
|
|
221 |
|
Total non-current liabilities |
|
|
4,122 |
|
|
|
1,614 |
|
|
|
221 |
|
Total liabilities |
|
|
314,789 |
|
|
|
291,646 |
|
|
|
39,974 |
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
|||
Ordinary shares |
|
|
181 |
|
|
|
181 |
|
|
|
25 |
|
Treasury stock |
|
|
(137,446 |
) |
|
|
(137,446 |
) |
|
|
(18,839 |
) |
Statutory reserves |
|
|
3,331 |
|
|
|
3,331 |
|
|
|
457 |
|
Additional paid-in capital |
|
|
9,484,664 |
|
|
|
9,487,453 |
|
|
|
1,300,364 |
|
Accumulated other comprehensive income |
|
|
82,396 |
|
|
|
89,068 |
|
|
|
12,207 |
|
Accumulated deficit* |
|
|
(8,795,764 |
) |
|
|
(8,832,878 |
) |
|
|
(1,210,647 |
) |
Total MOGU Inc. shareholders’ equity |
|
|
637,362 |
|
|
|
609,709 |
|
|
|
83,567 |
|
Non-controlling interests |
|
|
33,997 |
|
|
|
26,892 |
|
|
|
3,686 |
|
Total shareholders’ equity |
|
|
671,359 |
|
|
|
636,601 |
|
|
|
87,253 |
|
Total liabilities and shareholders’ equity |
|
|
986,148 |
|
|
|
928,247 |
|
|
|
127,227 |
|
*On April 1, 2023, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), using the modified retrospective method and the adoption did not have material impact on the consolidated financial statements.
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, |
|
|||||||||
|
|
2022 |
|
|
2023 |
|
||||||
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
Net revenues |
|
|
|
|
|
|
|
|
|
|||
Commission revenues |
|
|
71,700 |
|
|
|
55,619 |
|
|
|
7,623 |
|
Marketing services revenues |
|
|
2,982 |
|
|
|
746 |
|
|
|
102 |
|
Financing service revenues |
|
|
6,930 |
|
|
|
5,403 |
|
|
|
741 |
|
Technology service revenues |
|
|
28,077 |
|
|
|
18,388 |
|
|
|
2,520 |
|
Other revenues |
|
|
5,157 |
|
|
|
3,146 |
|
|
|
431 |
|
Total revenues |
|
|
114,846 |
|
|
|
83,302 |
|
|
|
11,417 |
|
Cost of revenues (exclusive of amortization of intangible assets shown separately below) |
|
|
(59,641 |
) |
|
|
(49,602 |
) |
|
|
(6,799 |
) |
Sales and marketing expenses |
|
|
(32,646 |
) |
|
|
(37,274 |
) |
|
|
(5,109 |
) |
Research and development expenses |
|
|
(20,922 |
) |
|
|
(13,879 |
) |
|
|
(1,902 |
) |
General and administrative expenses |
|
|
(32,741 |
) |
|
|
(27,914 |
) |
|
|
(3,826 |
) |
Amortization of intangible assets |
|
|
(20,022 |
) |
|
|
(1,826 |
) |
|
|
(250 |
) |
Impairment of intangible assets |
|
|
— |
|
|
|
(9,945 |
) |
|
|
(1,363 |
) |
Other income, net |
|
|
3,066 |
|
|
|
5,059 |
|
|
|
693 |
|
Loss from operations |
|
|
(48,060 |
) |
|
|
(52,079 |
) |
|
|
(7,139 |
) |
Interest income |
|
|
9,013 |
|
|
|
7,142 |
|
|
|
979 |
|
Interest expense |
|
|
(328 |
) |
|
|
— |
|
|
|
— |
|
(Loss)/gain from investments, net |
|
|
(19,431 |
) |
|
|
1,267 |
|
|
|
174 |
|
Loss before income tax and share of results of equity investees |
|
|
(58,806 |
) |
|
|
(43,670 |
) |
|
|
(5,986 |
) |
Income tax benefits |
|
|
1,086 |
|
|
|
1,662 |
|
|
|
228 |
|
Share of results of equity investee |
|
|
(1,125 |
) |
|
|
(504 |
) |
|
|
(69 |
) |
Net loss |
|
|
(58,845 |
) |
|
|
(42,512 |
) |
|
|
(5,827 |
) |
Net loss attributable to non-controlling interests |
|
|
(1,407 |
) |
|
|
(7,105 |
) |
|
|
(974 |
) |
Net loss attributable to MOGU Inc. |
|
|
(57,438 |
) |
|
|
(35,407 |
) |
|
|
(4,853 |
) |
Net loss |
|
|
(58,845 |
) |
|
|
(42,512 |
) |
|
|
(5,827 |
) |
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustments, net of nil tax |
|
|
18,495 |
|
|
|
4,970 |
|
|
|
681 |
|
Unrealized securities holding (losses)/gains, net of tax |
|
|
(1,186 |
) |
|
|
1,702 |
|
|
|
233 |
|
Total comprehensive loss |
|
|
(41,536 |
) |
|
|
(35,840 |
) |
|
|
(4,913 |
) |
Total comprehensive loss attributable to non-controlling interests |
|
|
(1,407 |
) |
|
|
(7,105 |
) |
|
|
(974 |
) |
Total comprehensive loss attributable to MOGU Inc. |
|
|
(40,129 |
) |
|
|
(28,735 |
) |
|
|
(3,939 |
) |
Net loss per share attributable to ordinary shareholders |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
Diluted |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
Net loss per ADS |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
(6.79 |
) |
|
|
(4.11 |
) |
|
|
(0.56 |
) |
Diluted |
|
|
(6.79 |
) |
|
|
(4.11 |
) |
|
|
(0.56 |
) |
Weighted average number of shares used in
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
2,537,852,017 |
|
|
|
2,581,758,960 |
|
|
|
2,581,758,960 |
|
Diluted |
|
|
2,537,852,017 |
|
|
|
2,581,758,960 |
|
|
|
2,581,758,960 |
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
|
|||
Cost of revenues |
|
|
808 |
|
|
|
415 |
|
|
|
57 |
|
General and administrative expenses |
|
|
5,069 |
|
|
|
1,763 |
|
|
|
242 |
|
Sales and marketing expenses |
|
|
2,448 |
|
|
|
419 |
|
|
|
57 |
|
Research and development expenses |
|
|
511 |
|
|
|
192 |
|
|
|
26 |
|
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, |
|
|||||||||
|
|
2022 |
|
|
2023 |
|
||||||
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
Net cash used in operating activities |
|
|
(16,020 |
) |
|
|
(32,907 |
) |
|
|
(4,510 |
) |
Net cash used in investing activities |
|
|
(28,155 |
) |
|
|
(20,779 |
) |
|
|
(2,848 |
) |
Net cash used in financing activities |
|
|
(2,972 |
) |
|
|
— |
|
|
|
— |
|
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
|
|
1,509 |
|
|
|
3,336 |
|
|
|
457 |
|
Net decrease in cash and cash equivalents and restricted cash |
|
|
(45,638 |
) |
|
|
(50,350 |
) |
|
|
(6,901 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
|
439,417 |
|
|
|
417,011 |
|
|
|
57,156 |
|
Cash and cash equivalents and restricted cash at end of period |
|
|
393,779 |
|
|
|
366,661 |
|
|
|
50,255 |
|
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, |
|
|||||||||
|
|
|
|
2022 |
|
|
2023 |
|
||||||
|
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|||
|
|
Net loss |
|
|
(58,845 |
) |
|
|
(42,512 |
) |
|
|
(5,827 |
) |
Add: |
|
Interest expense |
|
|
328 |
|
|
|
— |
|
|
|
— |
|
Less: |
|
Income tax benefits |
|
|
(1,086 |
) |
|
|
(1,662 |
) |
|
|
(228 |
) |
Less: |
|
Interest income |
|
|
(9,013 |
) |
|
|
(7,142 |
) |
|
|
(979 |
) |
Add: |
|
Amortization of intangible assets |
|
|
20,022 |
|
|
|
1,826 |
|
|
|
250 |
|
Add: |
|
Depreciation of property and equipment |
|
|
2,067 |
|
|
|
3,529 |
|
|
|
484 |
|
|
|
EBITDA |
|
|
(46,527 |
) |
|
|
(45,961 |
) |
|
|
(6,300 |
) |
Add: |
|
Impairment of intangible assets |
|
|
— |
|
|
|
9,945 |
|
|
|
1,363 |
|
Add: |
|
Share-based compensation expenses |
|
|
8,836 |
|
|
|
2,789 |
|
|
|
382 |
|
Add: |
|
Share of result of equity investees |
|
|
1,125 |
|
|
|
504 |
|
|
|
69 |
|
Less: |
|
Loss/(gain) from investments, net |
|
|
19,431 |
|
|
|
(1,267 |
) |
|
|
(174 |
) |
|
|
Adjusted EBITDA |
|
|
(17,135 |
) |
|
|
(33,990 |
) |
|
|
(4,660 |
) |
|
|
Net loss |
|
|
(58,845 |
) |
|
|
(42,512 |
) |
|
|
(5,827 |
) |
Add: |
|
Loss/(gain) from investments, net |
|
|
19,431 |
|
|
|
(1,267 |
) |
|
|
(174 |
) |
Add: |
|
Share-based compensation expenses |
|
|
8,836 |
|
|
|
2,789 |
|
|
|
382 |
|
Add: |
|
Impairment of intangible assets |
|
|
— |
|
|
|
9,945 |
|
|
|
1,363 |
|
Less: |
|
Adjusted for tax effects |
|
|
(1,235 |
) |
|
|
(1,755 |
) |
|
|
(241 |
) |
|
|
Adjusted net loss |
|
|
(31,813 |
) |
|
|
(32,800 |
) |
|
|
(4,497 |
) |
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 (
2 The
3 Adjusted EBITDA represents net loss before (i) interest income, interest expense, loss/(gain) from investments, net, income tax benefits and share of results of equity investee, 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) loss/(gain) from investments, net, (ii) share-based compensation expenses, (iii) impairment of intangible assets, (iv) adjustments for tax effects. The Company excluded “amortization of intangible assets” as a non-recurring item in the presentation of adjusted net loss in its Unaudited Reconciliations of GAAP and Non-GAAP Results for the six months ended March 31, 2023 and fiscal year 2023. As a result, the Company made the corresponding change to the prior period comparative metrics to conform with this new definition. See “Unaudited Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231215513432/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
Ms. Crystal Lai
Phone: +852 2232 3907
E-mail:crystal.lai@christensencomms.com
In
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Source: MOGU Inc.
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