Revenue and Financial Performance - Revenue contributed by the VIEs accounted for 37.8% of total revenues for the fiscal year 2023, up from 30.1% in 2022 and 22.9% in 2021[23] - For the year ended March 31, 2023, total third-party revenues amounted to RMB 232,076 thousand, with beneficiaries of VIEs contributing RMB 170,811 thousand[58] - The net loss for MOGU Inc. for the same period was RMB 186,406 thousand, with a net loss attributable to ordinary shareholders of RMB 177,984 thousand[58] - The company reported third-party costs and expenses of RMB 426,791 thousand for the year ended March 31, 2023, indicating a significant operational cost burden[58] - The share of loss from subsidiaries and VIEs for the year ended March 31, 2023, was RMB 73,784 thousand, reflecting challenges in subsidiary performance[58] - MOGU Inc. recorded net losses of RMB328.0 million, RMB642.4 million, and RMB186.4 million (US$27.1 million) for the years ended March 31, 2021, 2022, and 2023, respectively[93] - Revenues decreased by 42.3% from RMB835.3 million in the year ended March 31, 2020 to RMB482.4 million in the year ended March 31, 2021, and further decreased by 31.2% to RMB232.1 million (US$33.8 million) in the year ended March 31, 2023[98] Business Operations and Strategy - The company has expanded its product portfolio to include healthcare products, groceries, household supplies, and food[18] - The acquisition of Ruisha Technology is expected to enhance business operations and deepen cooperation with business customers[18] - The company aims to provide customized online branding solutions to businesses through its KOL-driven platform Mogujie[18] - The company actively pursues higher operational efficiency by providing more products based on users' fashion and beauty consumption needs[18] - The company aims to diversify product and service offerings to enhance revenue sources in the future, responding to evolving buyer needs[100] - The company has implemented new business initiatives focusing on fashion content and live video broadcasts, but the effects on financial prospects are still uncertain[121] Regulatory and Compliance Risks - The company faces risks related to regulatory approvals, anti-monopoly actions, and cybersecurity oversight in China[41] - New anti-monopoly guidelines and laws may increase compliance costs and risks for the company[42] - The company’s legal counsel has indicated that future regulatory changes may impose additional compliance requirements, creating uncertainty for operations[54] - The PRC government has significant influence over the company's operations, which could limit its ability to conduct future offerings of securities[88] - The company may face legal sanctions from PRC authorities if it is found liable for illegal content on its platform, which could include suspension or revocation of necessary operating licenses[168] - The e-commerce industry in China is subject to evolving regulations, which may require the company to obtain additional licenses and approvals, impacting operations[137] VIE Structure and Legal Considerations - The company operates through its PRC subsidiaries and VIEs due to restrictions on foreign ownership in certain sectors[22] - The contractual arrangements with the VIEs enable the company to consolidate their financial results under U.S. GAAP[26] - The company has a controlling financial interest in the VIEs through various contractual agreements, despite not having equity ownership[24] - There are substantial uncertainties regarding future PRC laws that may affect the VIE structures and could lead to severe penalties[40] - The ability to enforce contractual agreements may be limited by evolving laws and regulations in China, impacting the company's operational capabilities[217] - The legal system in China presents challenges, as arbitration rulings are final and cannot be appealed, which may complicate the enforcement of contractual agreements[218] Financial Position and Assets - Total assets as of March 31, 2023, amounted to RMB 1,719,259 thousand, with MOGU Inc. holding RMB 1,096,230 thousand[62] - Total liabilities reached RMB 1,169,306 thousand, with MOGU Inc. liabilities at RMB 458,868 thousand[63] - Shareholders' equity for MOGU Inc. was reported at RMB 637,362 thousand, reflecting a significant increase from the previous year[63] - The total amount due from intercompany transactions was RMB 1,050,048 thousand, highlighting significant intercompany financial activities[63] - The company believes its current cash and cash equivalents and short-term investments will be sufficient to meet anticipated cash needs for the next 12 months[170] Market and Competitive Landscape - The company faces intense competition from major e-commerce platforms and traditional retailers, which may impact market share and financial performance[104] - The company may struggle to attract and retain users if major social networks change their features or discontinue support, impacting user growth[134] - The company is sensitive to changes in consumer confidence and spending in China, which may be adversely affected by economic downturns[199] - The growth rate of the Chinese economy has gradually slowed, and there is uncertainty regarding the long-term effects of monetary and fiscal policies[201] Cybersecurity and Data Privacy - Cybersecurity risks pose a significant threat, as breaches could lead to loss of user information and damage to reputation[116] - Compliance with PRC and international data privacy laws is essential, and any failure to protect data could have significant negative consequences[142] - The evolving regulatory landscape regarding data security in China may lead to increased compliance costs and operational challenges[143] Human Resources and Labor Costs - The company faces challenges in retaining and attracting talent due to rising labor costs and the inability to provide satisfactory wages and benefits[136] - Rising labor costs in China may adversely affect merchants' ability to offer competitive pricing, potentially leading to a loss of users and negatively impacting margins[135] Internal Controls and Governance - The company identified a material weakness in internal control over financial reporting as of March 31, 2023, due to insufficient competent financial reporting personnel[196] - The company plans to hire additional qualified financial and accounting staff and implement training programs to address the identified material weakness[196] Investment and Capital Management - The company may require additional capital due to changing business conditions or future developments, which could lead to dilution of existing shareholders if additional equity is sold[170] - The company has limited insurance coverage, which could expose it to significant costs and business disruption[198] Product and Service Development - The company has expanded its product offerings beyond fashion apparel to include lifestyle and healthcare products, which may introduce new risks and challenges[174] - New product categories may have lower profit margins, necessitating aggressive pricing strategies to gain market share[175] - The company may face product liability claims if products sold on its platform are defectively designed or manufactured, which could adversely affect its financial condition[176]

Financial Performance - Total 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 during the same period of the fiscal year 2022[4] - Gross Merchandise Value (GMV) for the six months ended September 30, 2022 was RMB2,828 million (US$397.6 million), a decrease of 48.1% period-over-period[4] - Live Video Broadcast (LVB) associated GMV for the six months ended September 30, 2022 decreased by 45.6% to RMB2,703 million (US$379.9 million), accounting for 95.6% of total GMV[4] - Commission 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 same period of the fiscal year 2022[7] - Marketing services 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 same period of the fiscal year 2022[7] - Technology service revenues for the six months ended September 30, 2022 increased by 170.8% to RMB28.1 million (US$3.9 million) from RMB10.4 million in the same period of fiscal year 2022[7] - Loss from operations for the six months ended September 30, 2022 was RMB48.1 million (US$6.8 million), compared to a loss from operations of RMB430.1 million in the same period of the fiscal year 2022[11] - Adjusted EBITDA for the six months ended September 30, 2022 was negative RMB17.1 million (US$2.4 million), compared to negative RMB72.7 million in the same period of the fiscal year 2022[11] - Net loss attributable to MOGU Inc. for the six months ended September 30, 2022, was RMB 57,438, compared to a net loss of RMB 411,926 for the same period in 2021[26] - Net loss for the six months ended September 30, 2022, was RMB 58,845, a significant decrease from RMB 414,017 in the same period of 2021[30] Cash and Assets - Cash and cash equivalents, restricted cash, and short-term investments were RMB604.8 million (US$85.0 million) as of September 30, 2022, compared with RMB636.3 million as of March 31, 2022[12] - Cash and cash equivalents decreased to RMB 392,970 as of September 30, 2022, from RMB 438,608 as of March 31, 2022, representing a decline of 10.4%[23] - Total current assets decreased to RMB 669,503 as of September 30, 2022, down 6.9% from RMB 718,912 as of March 31, 2022[23] - Cash and cash equivalents and restricted cash at the end of the period were RMB 393,779, down from RMB 507,855 at the beginning of the period[28] Expenses and Liabilities - Research and development expenses for the six months ended September 30, 2022, were RMB 20,922, a decrease of 53.7% from RMB 45,227 in the same period of 2021[26] - Total liabilities increased slightly to RMB 325,285 as of September 30, 2022, compared to RMB 334,825 as of March 31, 2022[23] - Share-based compensation expenses increased slightly to RMB 8,836 from RMB 7,915 year-over-year[30] - Interest expense for the six months ended September 30, 2022, was RMB 328, compared to no interest expense in the prior year[30] - Amortization of intangible assets decreased to RMB 20,022 from RMB 160,190 year-over-year[30] Investment and Gains - The company reported a gain from investments of RMB 19,431 in the current period, contrasting with a loss of RMB 7,822 in the prior year[30] Strategic Outlook - The company aims to enhance its market position through strategic initiatives and product development in the upcoming quarters[30]

Financial Performance - The company reported a revenue of $X million for the last quarter, representing a Y% increase year-over-year[1]. - User data showed an increase in active users to Z million, up from A million in the previous quarter, indicating a B% growth[2]. - The company provided guidance for the next quarter, expecting revenue to be between $C million and $D million, which reflects a growth rate of E%[3]. - New product launches are anticipated to contribute an additional $F million in revenue, with a focus on expanding into the G market[4]. - The company reported a net profit margin of N%, reflecting improved operational efficiencies compared to the previous year[9]. - The total debt has been reduced by O%, strengthening the company's balance sheet and financial stability[10]. - Total revenues for the year ended March 31, 2022, were RMB337.5 million (US$53.2 million), down from RMB482.4 million in 2021[458]. - The company incurred a net loss of RMB2.2 billion (US$348.5 million) for the year ended March 31, 2022, compared to a net loss of RMB328.0 million in the previous year[482]. - Revenues decreased by 30.0% from RMB482.4 million in the year ended March 31, 2021 to RMB337.5 million (US$53.2 million) in the year ended March 31, 2022[487]. - Commission revenues decreased by 28.8% from RMB318.6 million to RMB226.7 million (US$35.8 million) due to lower GMV in a competitive environment[487]. - Revenues from marketing services decreased by 74.9% from RMB71.3 million to RMB17.9 million (US$2.8 million) as business customers shifted to LVB hosts[487]. - Revenues from technology services increased by 61.6% from RMB28.5 million to RMB46.1 million (US$7.3 million) due to the combination with Ruisha Technology[488]. - Total costs and expenses for the year ended March 31, 2022, were RMB1,033.4 million, with significant impairment of goodwill and intangible assets at RMB235.4 million[469]. - The company recorded impairment charges of RMB1.4 billion (US$215.5 million) related to goodwill and certain intangible assets for the year ended March 31, 2022[473]. - Loss from operations for the year ended March 31, 2022, was RMB2.1 billion (US$329.5 million), compared to a loss of RMB428.9 million in the previous year[482]. User Engagement and Market Strategy - Live video broadcasts contributed RMB9.8 billion (US$1.5 billion) to the total GMV for the year ended March 31, 2022, accounting for 91.9% of the total GMV for that period[317]. - The repurchase rate of users increased from 91% on March 31, 2021, to 94% on March 31, 2022[314]. - As of March 31, 2022, the number of brand merchants served reached 74, with 28 companies having a business scale of over RMB1 billion[315]. - An active buyer through live video broadcasts spent over 51 minutes per day and 16 days per month watching broadcasts in March 2022[304]. - The company’s user base primarily consists of young females aged 20 to 30, who are highly engaged in live video broadcasts and online shopping[304]. - The company’s platform serves as a marketing channel for merchants, with KOLs creating engaging content that drives user purchases[302]. - The company is focused on expanding its user base and enhancing user engagement through KOLs and content[460]. - The company organizes special sales events throughout the year, including major holidays, to attract users and boost sales[327]. - A new marketing strategy has been implemented, aiming to boost customer engagement and drive sales growth by M%[8]. Technology and Innovation - The company utilizes AI and big data to enhance operational efficiency and provide personalized user experiences based on shopping behaviors and preferences[306]. - The company has invested in LVB host incubation programs to expand its talent pool and increase the popularity of LVB hosts[312]. - The company leverages big data analytics to enhance user behavior predictions and optimize marketing strategies[342]. - The company has developed a secure cloud-based core system to process large amounts of complex data, improving operational efficiency[346]. - The company utilizes artificial intelligence and machine learning technologies to enhance customer service and improve operational efficiencies[341]. - The company is investing $H million in R&D for new technologies aimed at enhancing user experience and operational efficiency[5]. - Research and development expenses totaled RMB171.1 million (US$26.9 million), representing 20.5% of total revenues for the year ended March 31, 2022[482]. Regulatory Compliance - The Foreign Investment Law, effective January 1, 2020, establishes a framework for foreign investments in China, promoting fair competition and protecting foreign investors[358]. - The 2021 Negative List restricts foreign investment in certain industries, including value-added telecommunications services, where foreign ownership is limited to 50%[359]. - Foreign-invested telecommunications enterprises must be established as Sino-foreign equity joint ventures, with foreign investors not holding a majority equity interest[362]. - The company engages in value-added telecommunications services through various VIEs established in China, facing uncertainties regarding compliance with PRC regulations[365]. - The company holds necessary licenses for internet information services, including ICP and EDI licenses, to comply with regulatory requirements[369]. - The company is subject to regulations that require it to enhance content management and improve the quality of information disseminated on its platforms[372]. - The Audio-Visual License is required for internet audio-visual program service providers, which must be state-owned or state-controlled entities[373]. - The CAC requires online live video broadcast service providers to establish content review platforms and authenticate users[377]. - The Consumer Protection Law mandates that business operators ensure the safety and quality of commodities sold, with liabilities for non-compliance[380]. - The Civil Code holds online service providers jointly liable for infringing activities if they fail to take necessary measures upon notice[381]. - The Cybersecurity Law obligates network operators to protect their networks against unauthorized access and data leakage[389]. - The Data Security Law establishes a framework for data security management, including risk assessment and monitoring systems[390]. - The Protection Provisions for Personal Information require lawful collection and use of personal information, with penalties for violations[391]. - Criminal activities infringing upon personal information may lead to severe legal consequences, including fines and imprisonment[392]. - The Ninth Amendment to the Criminal Law, effective November 1, 2015, imposes criminal penalties on online service providers for failing to secure client information, with significant damages due to information leakage being a key concern[393]. - The E-Commerce Law, effective January 1, 2019, requires e-commerce platform operators to verify the identity of business operators and report illegal activities, with penalties for non-compliance including fines and potential suspension of business[399]. - The Administrative Measures for Online Trading, revised on May 1, 2021, impose new obligations on e-commerce platform operators, including regular reporting of trading parties' information to regulatory authorities[401]. - The PRC Copyright Law, amended on November 11, 2020, extends copyright protection to internet activities and software products, with registration being voluntary but encouraged for better protection[410]. - The Measures for the Supervision and Administration of Online Sale of Medical Devices, effective March 2018, require third-party platforms to complete filing procedures with provincial food and drug administrative departments[404]. - The Administrative Provisions on the Account Names of Internet Users, effective March 1, 2015, mandate real-name authentication and enhanced security measures for internet service providers[398]. - The E-Commerce Law mandates e-commerce platform operators to assist in tax collection related to seller transactions, with non-compliance resulting in fines and potential business operation suspension[400]. - The Interim Administrative Provisions on the Pre-installation and Distribution of Mobile Smart Terminal Application Software, effective July 1, 2017, set compliance requirements for pre-installed apps to protect user rights[397]. - The Measures for Investigation and Handling of Illegal Acts Involving Online Food Safety require third-party platforms to file records with food and drug administrations, with penalties for non-compliance ranging from RMB5,000 to RMB30,000[405]. - The Domain Name Measures, effective November 1, 2017, establish a "first apply, first register" principle for domain name registration, requiring timely updates of contact information by domain name holders[412]. Corporate Governance and Structure - The company has established contractual arrangements with VIEs, allowing it to exercise effective control and receive substantial economic benefits from them[438]. - Shareholders of Hangzhou Juangua have pledged 100% equity interests to guarantee performance under various agreements, ensuring the company's rights are protected[441]. - The company has made loans totaling RMB5,867,000 to Mr. Qi Chen for capital contributions to Hangzhou Juangua, with a repayment term of 20 years[443]. - The exclusive consultation and service agreement mandates that Hangzhou Juangua pays a quarterly service fee based on its revenue after deductions, ensuring a steady income stream for the company[445]. - The amended and restated exclusive option agreement grants the company the right to purchase equity interests in Hangzhou Juangua at the lowest price permitted under PRC law, providing strategic flexibility[448]. - The company has completed the registration of equity interest pledges with the State Administration of Market Regulation, enhancing legal security over its investments[442]. - The contractual arrangements include provisions that prevent shareholders from transferring or encumbering their equity interests without the company's consent, safeguarding its control[448]. - The company has secured spousal consent letters from shareholders' spouses, ensuring that equity interests can be disposed of in accordance with the agreements[450]. - The company is subject to PRC enterprise income tax regulations regarding indirect transfers, which may impact its offshore transactions[431]. - The company must comply with local labor laws, including executing written labor contracts and adhering to minimum wage standards, to avoid penalties[433].

Financial Data and Key Metrics Changes - The total GMV for Q1 FY2022 was RMB2,864 million, a decrease of 8.2% year-over-year [9] - GMV from live video broadcasting (LVB) increased by 14.7% year-over-year to RMB2,600 million, accounting for 90.8% of total GMV [9][10] - Total revenues decreased by 30.6% to RMB92 million from RMB132.5 million in the same quarter of FY2021 [10] - Net loss attributable to ordinary shareholders was RMB95.5 million compared to RMB88.9 million in the same period of FY2021 [12] - Adjusted EBITDA was negative RMB25.2 million compared to negative RMB17.4 million in the same period of FY2021 [12] Business Line Data and Key Metrics Changes - Commission revenues decreased by 23.7% to RMB65.1 million from RMB85.3 million in the same period of FY2021 [10] - Marketing Services revenue decreased by 64% to RMB8.6 million from RMB24 million in the same period of FY2021 [10] - Financing Solutions revenues decreased by 5.1% to RMB11.3 million from RMB12 million in the same period of FY2021 [11] Market Data and Key Metrics Changes - The competitive environment has intensified, with more players entering the market and increased competition on price [18] - The cost of user traffic is rising due to the slowing growth of Internet users [18] Company Strategy and Development Direction - The company has transformed into a pure-play LVB e-commerce model and aims to enhance supply chains and improve product quality [5][6] - The acquisition of Ruisha Technology is a strategic move to expand service capabilities and diversify revenue streams [7][8] - The company plans to focus on both B2C and B2B components in its revenue structure moving forward [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite a challenging market environment [13] - The company aims to optimize customer acquisition costs and improve overall operating efficiency [13] - Management believes that the antimonopoly regulations will create a more open market, benefiting all participants [23][24] Other Important Information - The company has authorized a new share repurchase program with an aggregate value of up to $10 million [8] Q&A Session Summary Question: Impact of Competitive Landscape on Operating Metrics - Management acknowledged intensified competition affecting user acquisition and retention, but emphasized their competitive advantages such as early market entry and loyal user base [18][19] Question: Role of Ruisha in Integration and Competitive Edge - Management highlighted that Ruisha's acquisition will diversify revenue streams and enhance service capabilities, leveraging shared technology and operational know-how [19][20] Question: Opportunities from Antimonopoly Regulations - Management expressed optimism about the Internet space and believes that regulations will benefit the market and the company [23][24] Question: Strategies to Improve LVB GMV Growth - Management outlined strategies including integrating more KOLs, expanding product categories, and attracting new users through partnerships [27]

Financial Performance - Total revenues for the first quarter of fiscal year 2022 decreased by 30.6% to RMB92.0 million (US$14.2 million) from RMB132.5 million in the same quarter of fiscal year 2021[6]. - Overall GMV for the first quarter was RMB2,864 million (US$443.6 million), a decrease of 8.2% year-over-year[3]. - Loss from operations was RMB98.0 million (US$15.2 million), compared to a loss of RMB94.9 million in the same period of fiscal year 2021[9]. - Net loss attributable to ordinary shareholders was RMB95.5 million (US$14.8 million), compared to RMB88.9 million in the same period of fiscal year 2021[11]. - Adjusted EBITDA was negative RMB25.2 million (US$3.9 million), compared to negative RMB17.4 million in the same period of fiscal year 2021[11]. - Commission revenues decreased by 23.7% to RMB65.1 million (US$10.1 million) from RMB85.3 million in the same period of fiscal year 2021[7]. - Marketing services revenues decreased by 64.0% to RMB8.6 million (US$1.3 million) from RMB24.0 million in the same period of fiscal year 2021[7]. Cash and Assets - Cash and cash equivalents, restricted cash, and short-term investments were RMB776.3 million (US$120.2 million) as of June 30, 2021, compared to RMB803.1 million as of March 31, 2021[12]. - Cash and cash equivalents at the end of the period were RMB 603,155, an increase of 11.3% from RMB 542,884 at the beginning of the period[31]. - Total current assets decreased to RMB 939,909 as of June 30, 2021, from RMB 987,074 as of March 31, 2021, a decline of 4.8%[27]. - Total assets as of June 30, 2021, were RMB 1,728,840, down from RMB 1,839,856 as of March 31, 2021, a decrease of 6.0%[27]. - Total liabilities as of June 30, 2021, were RMB 382,585, slightly down from RMB 384,960 as of March 31, 2021[27]. Operational Metrics - GMV from Live Video Broadcast (LVB) increased by 14.7% year-over-year to RMB2,600 million (US$402.7 million), accounting for 90.8% of total GMV[3]. - Adjusted EBITDA for the three months ended June 30, 2021, was RMB (25,154), compared to RMB (17,426) for the same period in 2020, indicating a worsening of 44.4%[33]. - Cash used in operating activities for the three months ended June 30, 2021, was RMB (11,391), compared to RMB (8,599) for the same period in 2020, reflecting an increase in cash outflow of 32.9%[31]. - The company reported a foreign currency translation adjustment loss of RMB (12,264) for the three months ended June 30, 2021[29]. - The weighted average number of shares used in computing net loss per share for the three months ended June 30, 2021, was 2,528,531,290[29]. Investment Activity - In July 2021, MOGU's affiliated entity purchased equity interests in Hangzhou Ruisha Technology Co., Ltd. for RMB50 million in cash, increasing MOGU's ownership to 59.62%[13].

Financial Performance - Revenues for the year ended March 31, 2021, were RMB 482,392, a decrease of 42.5% compared to RMB 835,314 in 2020[19]. - Net loss attributable to MOGU Inc. for the year ended March 31, 2021, was RMB 327,971, representing a significant increase from RMB 2,223,638 in 2020[20]. - The company reported a loss from operations of RMB 428,924 for the year ended March 31, 2021, compared to a loss of RMB 2,072,886 in 2020[19]. - The basic net loss per share attributable to ordinary shareholders for the year ended March 31, 2021, was RMB 0.12, compared to RMB 0.82 in 2020[20]. - The company recorded a net loss of RMB328.0 million (US$50.1 million) for the year ended March 31, 2021, following a net loss of RMB2,223.6 million in the previous year[28]. - Revenues decreased by 42.3% from RMB835.3 million in the year ended March 31, 2020, to RMB482.4 million (US$73.6 million) in the year ended March 31, 2021[31]. Assets and Liabilities - Total current assets as of March 31, 2021, were RMB 987,074, down from RMB 1,310,576 in 2020, indicating a decline of 24.6%[22]. - Cash and cash equivalents decreased to RMB 542,076 as of March 31, 2021, from RMB 856,567 in 2020, a reduction of 36.6%[22]. - Total liabilities as of March 31, 2021, were RMB 384,960, a decrease from RMB 460,284 in 2020, reflecting a reduction of 16.3%[22]. - The company had total assets of RMB 1,839,856 as of March 31, 2021, down from RMB 2,440,756 in 2020, a decline of 24.6%[22]. Operational Challenges - The company faces intense competition from major e-commerce platforms and traditional retailers in China, which may affect market share and user engagement[37]. - The company’s ability to achieve growth depends on effectively managing relationships with KOLs and merchants to ensure a timely supply of quality content and products[29]. - The company’s historical performance may not be indicative of future financial results due to the limited operating history of its new business initiatives[27]. - The company’s operations are significantly affected by the COVID-19 pandemic, with potential delays in merchandise delivery impacting financial performance[66]. - The company faces potential reputational damage from negative publicity regarding counterfeit or defective products, which could adversely affect user retention and brand value[49]. Marketing and User Engagement - The top-10 KOLs contributed 43.7% of the total GMV in the year ended March 31, 2021, up from 23.2% in the previous year[43]. - The company relies on KOLs to generate popular fashion content, which significantly impacts user engagement and revenue; failure to retain major KOLs could materially affect financial results[46]. - The company’s marketing strategies must evolve to remain effective; failure to do so could lead to reduced market share and declining revenues[64]. - User metrics may not accurately reflect actual engagement, potentially harming the company's reputation and affecting merchant relationships[127]. Regulatory and Compliance Risks - The company faces risks from natural disasters and health epidemics, which could significantly disrupt operations[68]. - Heightened regulatory scrutiny may lead to increased compliance costs and operational challenges for the company[79]. - The evolving regulatory environment regarding data protection may increase operational costs and compliance challenges for the company[86]. - The company must ensure compliance with SAFE regulations to avoid fines and legal sanctions that could restrict investment activities and profit distributions[185]. - The PRC tax authorities may audit related party transactions, potentially leading to additional tax liabilities and penalties[153]. Financial and Market Risks - The financial condition and results of operations are sensitive to consumer confidence and spending in China, which may be adversely affected by economic downturns[137]. - The growth rate of the Chinese economy has gradually slowed, with uncertainties regarding the long-term effects of monetary and fiscal policies[138]. - Fluctuations in exchange rates, particularly the Renminbi against the U.S. dollar, could materially impact the company's revenues and financial position[169]. - The company has not engaged in hedging transactions to mitigate foreign currency exchange risk, which may expose it to significant financial losses[170]. Internal Controls and Governance - Internal controls over financial reporting were found to be ineffective as of March 31, 2021, due to identified material weaknesses[132]. - A material weakness in internal control over financial reporting was identified as of March 31, 2021, due to insufficient competent financial reporting personnel[133]. - Measures to address the material weakness include hiring additional qualified financial staff and implementing training programs on U.S. GAAP and SEC reporting requirements[133]. Shareholder and Capital Risks - The company may need additional capital, and financing may not be available on acceptable terms, potentially leading to dilution of existing shareholders[107]. - The company has authorized share repurchase programs totaling up to $35 million over various periods, but there is no obligation to repurchase specific amounts[213]. - Substantial sales of ADSs in the public market may adversely affect their market price and impair future capital raising efforts[215]. Legal and Intellectual Property Risks - The company may face legal liabilities for content on its platform, which could result in sanctions or operational disruptions[104]. - The company may face challenges in protecting its intellectual property rights, which could lead to significant expenses and operational disruptions[123].

Financial Data and Key Metrics Changes - MOGU's GMV for Q4 FY2021 was RMB2,576 million, an increase of 6.5% year-over-year, while the GMV for the 12-month period ended March 31, 2021, was RMB13,855 million, a decrease of 18.8% year-over-year [10][14] - Total revenues for Q4 FY2021 decreased by 23.6% to RMB90.9 million from RMB119 million in the same quarter of FY2020 [11] - Net loss attributable to MOGU's ordinary shareholders was RMB108.6 million, compared to a net loss of RMB141.9 million in the same period of FY2020, indicating an improvement [13] - Adjusted EBITDA was RMB20.1 million compared to negative RMB83.6 million in the same period of FY2020, showcasing significant operational improvements [13] Business Line Data and Key Metrics Changes - Live video broadcasting GMV increased by 42% year-over-year to RMB2.245 billion, accounting for 87.2% of total GMV in Q4 FY2021 [10][11] - Commission revenue decreased by 1.7% to RMB65.2 million, while marketing services revenue decreased by 34.5% to RMB11.9 million, primarily due to the restructuring towards a live video broadcasting-focused model [11][12] Market Data and Key Metrics Changes - The live e-commerce segment is highly competitive, with MOGU focusing on product innovation to meet the demands of Chinese consumers for immersive and interactive shopping experiences [20][21] - The company is optimistic about the growth potential of the live streaming e-commerce segment, indicating that it is still in the early stages of development [29] Company Strategy and Development Direction - MOGU has transitioned to a live video broadcasting e-commerce model, with a focus on continuous innovation and the introduction of the short-live product to enhance user experience and engagement [6][9][15] - The company aims to partner with more capable KOLs to deliver the best products and shopping experiences, emphasizing the importance of the human element in their platform [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape in the e-commerce space but believes that MOGU's dedication to live e-commerce and operational efficiency will differentiate it from competitors [20][23] - The company is optimistic about the future growth of the live e-commerce segment and plans to continue investing in this area to capture opportunities [29] Other Important Information - The introduction of the short-live product is seen as a breakthrough in the live e-commerce industry, providing a long shelf life for content and enhancing user interaction [8][9][26] Q&A Session Summary Question: How should we see the competitive landscape going forward in the short video platform's efforts in live streaming e-commerce? - Management noted that the e-commerce space in China is extremely competitive, with consumers demanding innovative and immersive shopping experiences. MOGU will focus on product innovation to meet these demands [20][21] Question: How should we see the live streaming e-commerce growth rate this year for MOGU, where the new form short-live goes to the revenue curve? - Management believes that short-live is a crucial product feature that will help KOLs grow faster on the platform, leading to increased revenue over time [22] Question: What is the ROI of short-live versus live in terms of user interaction and repeated use? - Management explained that short-live offers better user interaction and has a long shelf life, allowing for continuous sales and higher conversion rates due to previous buyer reviews [26][27] Question: What is the generic growth outlook for the last quarter and the quarter going forward? - Management refrained from providing specific forward guidance on GMV growth but expressed optimism about the high potential of the live streaming e-commerce segment [29]

Financial Data and Key Metrics Changes - MOGU's GMV for Q3 FY2021 was RMB5.046 billion, a decrease of 19.9% year-over-year [8] - Total revenue decreased by 45.6% to RMB146.5 million from RMB269.5 million in the same quarter of FY2020 [9] - Net loss attributable to ordinary shareholders was RMB36.7 million compared to a net loss of RMB1.634 billion in the same period of FY2020 [12] - Adjusted EBITDA turned positive at RMB1.2 million compared to a negative RMB86.7 million in the same period of FY2020 [12] Business Line Data and Key Metrics Changes - MOGU Live GMV increased by 20.9% year-over-year to RMB4.1 billion, contributing 80.3% to overall GMV [6][8] - Active buyers of the live video broadcasting business grew by 9.4% year-over-year to 3.5 million [8] Market Data and Key Metrics Changes - The overall GMV for the 12-month period ended December 31, 2020, was RMB13.698 billion, a decrease of 25.1% year-over-year [8] - Marketing services revenue decreased by 75.9% to RMB17.4 million from RMB72.5 million in the same period of FY2020 [9] Company Strategy and Development Direction - The company aims to explore new business opportunities, including cross-border e-commerce and offline business [7] - MOGU plans to expand into higher-margin categories such as cosmetics, skincare, and nutrition [21] - The focus will remain on live e-commerce, with continued investment to enhance competitive advantage [15][16] Management's Comments on Operating Environment and Future Outlook - Management believes the live e-commerce sector has high growth potential but is reaching a mature stage [15] - The company is confident that product innovation and a KOL-centric system will deliver a differentiated shopping experience [13] - Customer acquisition costs are rising, leading to a focus on customer retention and efficient spending [18] Other Important Information - Cash and cash equivalents were RMB820.1 million as of December 31, 2020, down from RMB1,095.4 million as of March 31, 2020 [13] - The company successfully repurchased 8 million shares for approximately US$17 million, representing 7% of outstanding shares [13] Q&A Session Summary Question: What is the company's strategy going forward regarding EBITDA and user acquisition? - Management indicated a focus on both revenue growth and margin expansion, with a strategy to retain existing users while acquiring new ones efficiently [14] Question: What is the strategy for category expansion? - The company plans to expand into higher-margin categories while continuing to support top KOLs to enhance competitiveness [20][21] Question: What is the competitive landscape of live e-commerce in China? - Management highlighted MOGU's pioneering role in live e-commerce and its commitment to product innovation as key differentiators [25][26] Question: Can you elaborate on cross-border e-commerce opportunities? - The company aims to leverage its experience and KOL capabilities to explore cross-border e-commerce, utilizing its established knowledge and human capital [28]

MOGU Inc. (NYSE:MOGU) Q2 2021 Earnings Conference Call November 30, 2020 6:30 AM ET Company Participants Rene Vanguestaine - Investor Relations Qi Chen - Chairman and Chief Executive Officer Raymond Huang - Chief Strategy Officer Conference Call Participants Charlie Chen - China Renaissance Locky Lau - A.J. Asset Management Veronica Shen - China Renaissance Operator Ladies and gentlemen, thank you for standing by, and welcome to MOGU's Second Quarter Fiscal Year 2021 Financial Results. At this time, all p ...