HANGZHOU, China–()– MOGU Inc. (NYSE: MOGU) (” MOGU” or the “Business”), a leading online style and way of life location in China, today announced its unaudited financial outcomes for the 4th quarter and 2020 ended March 31,2020

Mr. Qi Chen, Chairman and Chief Executive Officer of MOGU, commented, “The global fashion industry experienced a tough quarter as an outcome of the COVID-19 break out. MOGU and our KOLs are well positioned and prepared to satisfy their growing need.”.

” Despite this extraordinary and difficult quarter, our LVB business maintained robust growth momentum with GMV increased by 54.1%in the 4th quarter of 2020 from the same period in 2019,” commented Mr. Raymond Huang, Chief Technique Officer of MOGU. “LVB GMV accounted for most of our GMV for the second consecutive quarter which shows the instructions that we are heading towards. Over the past 12 months, we have actually been focusing our attention and resources on our innovative LVB e-commerce method and structure supply chain infrastructure to empower and support our KOLs. As an outcome, LVB GMV rose by 91.6%in fiscal year2020 We have actually clearly reached an inflection point where our LVB business will act as our primary growth chauffeur moving forward. We will continue to perform our strategy and provide a differentiated, individualized and immersive shopping experience to our customers.”.

Fourth Quarter Fiscal Year 2020 Emphasizes

  • Gross Product Worth (GMV 1) for the fourth quarter of 2020 was RMB2,420 million (US$3418 million 2), a reduction of 33.8%year-over-year.
  • Live Video Broadcast business continued to grow strongly with associated GMV for the 4th quarter of 2020 increasing 54.1%year-over-year to RMB1,581 million (US$2232 million). LVB associated GMV for the 4th quarter of 2020 accounted for 65.4%of overall GMV for the 4th quarter of2020
  • Total profits for the 4th quarter of fiscal year 2020 were RMB1190 million (US$168 million), a decrease of 45.3%year-over-year.

Fiscal Year 2020 Emphasizes

  • GMV for 2020 was RMB17,057 million (US$ 2,4089 million), which remains steady as compared with2019
  • Live Video Broadcast associated GMV for fiscal year 2020 increased 91.6%to RMB7,877 million (US$ 1,1124 million). LVB associated GMV for fiscal year 2020 represented 46.2%of overall GMV. Active purchasers of LVB business in fiscal year 2020 increased by 44.9%year-over-year to 3.6 million.
  • Overall profits for fiscal year 2020 were RMB8353 million (US$1180 million), a decrease of 22.2%year-over-year.

4th Quarter Fiscal Year 2020 Monetary Results

Overall revenues reduced by 45.3%to RMB1190 million (US$168 million) from RMB2176 million during the same quarter of2019

  • Commission revenues decreased by 43.0%to RMB663 million (US$ 9.4 million) from RMB1165 million in the exact same period of 2019, primarily due to the COVID-19 pandemic’s impacts on the shipment of the product offered on the Company’s e-commerce platform, demand for the apparel, and the exemption of commission charge to brand name merchants. Commission earnings from the LVB organisation grew considerably and was in line with the continued strong growth in LVB-associated GMV. The LVB company also continues to generate a stable commission rate, which was partially balanced out by a slowdown in the market service.
  • Marketing services profits reduced by 74.4%to RMB182 million (US$ 2.6 million) from RMB713 million in the exact same duration of fiscal year2019 The decline was mostly due to the break out of the COVID-19 pandemic and the restructuring of the Business’s business towards its LVB business.
  • Other earnings increased by 15.4%to RMB344 million (US$ 4.9 million) from RMB298 million in the exact same duration of 2019, mainly due to an increase in the online direct sales.

Cost of earnings decreased by 4.0%to RMB586 million (US$ 8.3 million) from RMB611 million in the very same duration of fiscal year 2019, which was mostly due to the decrease of payment handling expenses and IT-related costs.

Sales and marketing expenditures decreased by 56.1%to RMB782 million (US$110 million) from RMB1782 million in the very same duration of fiscal year 2019, primarily due to optimized spending on user acquisition and branding expenditures.

Research and advancement expenditures reduced by 42.6%to RMB328 million (US$ 4.6 million) from RMB572 million in the same duration of 2019, mostly as an outcome of headcount optimization.

General and administrative expenses reduced by 75.5%to RMB115 million (US$ 1.6 million) from RMB468 million in the same duration of fiscal year 2019, mostly due to the reversal of share-based payment costs.

Amortization of intangible assets increased by 93.5%to RMB871 million (US$123 million) from RMB450 million in the very same duration of fiscal year 2019, mainly due to an increase in the amortization of intangible properties taped as an outcome of the business cooperation agreement that MOGU participated in with Tencent which became effective from April2019

Loss from operations was RMB1491 million (US$211 million), compared to loss from operations of RMB1681 million in the same duration of fiscal year2019

Bottom line attributable to MOGU Inc.’s ordinary shareholders was RMB1419 million (US$200 million), compared to a bottom line attributable to MOGU Inc’s regular investors of RMB1408 million in the very same period of fiscal year2019

Adjusted EBITDA 3 was unfavorable RMB836 million (US$118 million), compared to negative RMB874 million in the exact same period of2019

Changed net loss 4 was RMB793 million (US$112 million), compared to adjusted bottom line of RMB677 million in the exact same duration of fiscal year2019

Basic and diluted loss per ADS were RMB1.32, respectively, in the exact same period of fiscal year2019 One ADS represents 25 Class An ordinary shares.

Cash and cash equivalents, Restricted cash and Short-term investments were RMB1,0954 million (US$1547 million) as of March 31, 2020, compared with RMB1,4897 million since March 31,2019

Fiscal Year 2020 Monetary Results

Total earnings reduced by 22.2%to RMB8353 million (US$1180 million) from RMB1,0743 million in2019

  • Commission incomes decreased by 13.7%to RMB4383 million (US$619 million) from RMB5077 million in fiscal year 2019, mostly due to the restructuring of the Business’s organisation mix towards its LVB service and the break out of COVID-19 Commission revenue from the LVB business grew substantially and in line with the continued strong growth in LVB-associated GMV. The LVB company also continues to generate a steady commission rate, which was partially balanced out by a slowdown in the market service.
  • Marketing services earnings reduced by 38.6%to RMB2431 million (US$343 million) from RMB3957 million in fiscal year2019 The decrease was primarily due to the restructuring of the Business’s service mix towards its LVB business and the break out of COVID-19
  • Other profits reduced by 9.9%to RMB1540 million (US$217 million) from RMB1708 million in 2019, primarily due to a decrease in technology supporting services the Company offered to its equity investee throughout the same quarter last when they had not developed their back workplace technology supporting functions.

Expense of profits decreased by 6.4%to RMB2938 million (US$415 million) from RMB3138 million in fiscal year 2019, which was mainly a result of a reduction in payment handling costs, which were partially offset by an increase in IT-related costs related to the LVB company.

Sales and marketing expenditures reduced by 17.6%to RMB6132 million (US$866 million) from RMB7437 million in 2019, mainly due to enhanced costs on user acquisition activities and user reward programs, which were partly balanced out by a boost in branding and marketing activities.

Research and advancement expenditures decreased by 27.6%to RMB1711 million (US$242 million) from RMB2364 million in 2019, mainly as a result of headcount optimization.

General and administrative expenses reduced by 23.9%to RMB1282 million (US$181 million) from RMB1684 million in 2019, mainly due to the turnaround of share-based payment costs.

Amortization of intangible assets increased by 70.0%to RMB3313 million (US$468 million) from RMB1949 million in fiscal year 2019, primarily due to an increase in the amortization of intangible assets tape-recorded as an outcome of business cooperation contract that MOGU entered into with Tencent which became reliable from April2019

Loss from operations was RMB2,0729 million (US$2927 million), compared to loss from operations of RMB5742 million in fiscal year 2019, mainly attributable to a goodwill problems sustained which was connected with weaker-than-expected synergies created by the acquisition of Meiliworks Limited (meilishuo.com) in February in2016 The shortage in the realized synergies remained in part due to the repositioning of the Company’s technique towards constructing a KOL-driven interactive e-commerce model, as well as a significantly competitive market environment and the effect from the outbreak of COVID-19

Bottom line attributable to MOGU Inc.’s normal shareholders was RMB2,2236 million (US$3140 million), compared to a bottom line attributable to MOGU Inc.’s common shareholders of RMB1,0853 million in2019

Adjusted EBITDA 5 was negative RMB3201 million (US$452 million), compared to negative RMB2647 million in2019

Changed net loss 6 was RMB4142 million (US$585 million), compared to adjusted bottom line of RMB2397 million in2019

Fundamental and diluted loss per ADS were RMB2089) and RMB2089) respectively, compared with RMB21

Share Repurchase Plan

On May 28, 2020, the board of directors of the Company approved a brand-new share repurchase program (the “2020 Program”) where the Company is licensed to buy up to US$10 million of its shares, effective till May 27,2021

The Company’s proposed repurchases may be made from time to time on the open market at prevailing market value, in privately worked out deals, in block trades and/or through other lawfully permissible methods, depending on market conditions and in accordance with appropriate guidelines and policies. The Business’s board of directors will evaluate the share repurchase program periodically, and might authorize adjustment of its terms and size. The Company prepares to fund repurchases from its existing money balance.

Effect of COVID-19

To name a few things, the break out of COVID-19 has caused hold-ups in the shipment of the product sold on the Company’s e-commerce platforms during the first quarter of2020 The shipment has been gradually recovering in the 2nd quarter of2020 If the effect of COVID-19 is extended or worsens further, it might still interfere with the shipment. In addition, the Business has actually chosen to exempt the charge of commissions from brand name merchants that experienced various degrees of shutdowns and delays in beginning of operations due to COVID-19 in the first quarter of2020

At the exact same time, the Company has actually taken measures to reduce the effect of this pandemic outbreak, including, upgrading its telecommuting system, monitoring its workers’ health on a daily basis and optimizing its innovation system to support possible development in user traffic. The degree of the related impact on the Company’s monetary outcomes and company outlook depends upon the future advancements of the global pandemic.

Since March 31, 2020, the Company had money and cash equivalents, limited money and short-term financial investments of RMB1,0954 million (US$1547 million).

Teleconference

MOGU’s management will host a revenues conference call at 7: 30 AM U.S. Eastern Time on Friday, May 29, 2020 (7: 30 PM Beijing/Hong Kong Time on the exact same day).

Dial-in numbers for the live teleconference are as follows:.

International:.

1 647 6895649

Mainland China, North:.

86108 007 141191

Mainland China, South:.

86108 001401195

United States:.

1 877 824 0239

Hong Kong:.

852800 901563

Passcode:.

Mogu.

A telephone replay of the call will be readily available after the conclusion of the conference call up until 11: 59 PM ET on June 5,2020

Dial-in numbers for the replay are as follows:.

International:.

1 416 6214642

United States:.

1 800 5858367

Passcode:.

6952537

A live and archived webcast of the teleconference will be readily available on the Financier Relations area of MOGU’s website at http://ir.mogu-inc.com

Usage of Non-GAAP Financial Steps

The Company defines Adjusted EBITDA as net loss before interest earnings, loss from investments, internet, income tax advantages, share of results of equity investee, goodwill impairment, share-based compensation expenditures, amortization of intangible possessions, and depreciation of residential or commercial property and equipment. The Business defines Adjusted net earnings/( loss) as net loss omitting loss from investments, internet, share-based settlement expenses, goodwill problems, amortization of intangible properties, and modifications for tax results. Beginning from the second quarter of financial year 2020, we integrated each of (i) investment gain/( loss), (ii) gain on deconsolidation of a subsidiary and (iii) acquire from financial investment disposals, into loss from investments.

The Business presents these nonGAAP financial procedures because they are utilized by management to evaluate operating efficiency and create organisation plans. The Business believes that the nonGAAP financial procedures help identify underlying trends in its company by omitting specific expenses, gain/loss and other products that are not anticipated to lead to future money payments or that are nonrecurring in nature or might not be indicative of the business’s core operating outcomes and organisation outlook. The Business also thinks that the nonGAAP financial steps could supply more details about the Company’s results of operations, enhance the total understanding of the Business’s past efficiency and future prospects.

The nonGAAP monetary measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The nonGAAP monetary steps have limitations as analytical tools. The Business’s nonGAAP monetary measures do not show all products of earnings and cost that affect the Business’s operations and do not represent the residual cash flow offered for discretionary expenditures. Even more, these nonGAAP procedures might differ from the nonGAAP details utilized by other business, consisting of peer business, and therefore their comparability may be limited. The Company makes up for these constraints by reconciling the nonGAAP financial measures to the nearest U.S. GAAP performance step, all of which should be thought about when assessing efficiency. The Business motivates you to evaluate the Company’s monetary information in its entirety and not depend on a single monetary measure.

For more details on the nonGAAP monetary procedures, please see the table captioned “Unaudited Reconciliations of GAAP and NonGAAP Outcomes” stated at the end of this press release.

Safe Harbor Declaration

This statement contains forward-looking declarations. These declarations are made under the “safe harbor” provisions of the U.S. Personal Securities Lawsuits Reform Act of1995 These positive statements can be identified by terminology such as “will,” “expects,” “anticipates,” “goals,” “future,” “means,” “plans,” “thinks,” “estimates,” “positive,” “possible,” “continue” or other comparable expressions. Among other things, the effect of COVID-19, business outlook and quotations from management in this announcement, as well as MOGU’s strategic and functional plans, include positive declarations. MOGU may also make written or oral positive statements in its regular reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to investors, in news release and other written products and in oral statements made by its officers, directors or workers to third parties. Statements that are not historical truths, including however not restricted to statements about MOGU’s beliefs and expectations, are forward-looking statements. Forward-looking declarations include fundamental threats and unpredictabilities. A number of elements could cause real outcomes to differ materially from those contained in any forward-looking declaration, consisting of but not limited to the following: COVID-19 pandemic on MOGU’s organisation, outcomes of operations, monetary condition and stock cost; MOGU’s growth methods; its future service development, outcomes of operations and financial condition; its capability to understand buyer requirements and supply product or services to draw in and maintain buyers; its capability to maintain and enhance the acknowledgment and credibility of its brand name; its ability to depend on merchants and third-party logistics company to supply shipment services to buyers; its ability to preserve and improve quality control policies and measures; its capability to develop and maintain relationships with merchants; trends and competitors in China’s ecommerce market; changes in its earnings and certain cost or expense products; the expected development of China’s ecommerce market; PRC governmental policies and policies connecting to MOGU’s industry, and basic economic and business conditions worldwide and in China and presumptions underlying or connected to any of the foregoing. More info regarding these and other risks is included in MOGU’s filings with the SEC. All information supplied in this press release and in the accessories is as of the date of this press release, and MOGU undertakes no responsibility to upgrade any positive statement, except as needed under relevant law.

About MOGU Inc.

MOGU Inc. (NYSE: MOGU) is a leading online style and way of life destination in China. MOGU provides youths with a more accessible and satisfying shopping experience for everyday fashion, particularly as they increasingly live their lives online. Through ingenious use of content, MOGU’s platform supplies a vibrant and dynamic community for individuals to discover and share the most recent style trends with others, and provides users a truly thorough shopping experience.

MOGU INC.

Unaudited Interim Condensed Consolidated Balance Sheets

( All amounts in thousands, other than for share and per share information)

As of March 31,

Since March 31,

2019.

2020

RMB

RMB

US$

ASSETS

Existing possessions:

Money and cash equivalents.

1,276,710

856,567

120,970

Restricted cash.

1,006

807

114

Short-term financial investments.

212,000

238,000

33,612

Inventories, net.

5,042

2,926

413

Loan receivables, web.

120,901

113,111

15,974

Prepayments and other existing possessions.

161,249

99,108

13,997

Amounts due from related celebrations.

1,789

57

8.

Overall present possessions

1,778,697.

1,310,576

185,088

Non-current assets:

Home, equipment and software, net.

11,975

14,109

1,993

Intangible properties, web.

1,001,967

813,011

114,819

Goodwill.

1,568,653

186,504

26,339

Investments.

241,721

102,373

14,458

Other non-current assets.

763

14,183

2,003

Total non-current assets

2,825,079.

1,130,180.

159,612.

Total properties

4,603,776.

2,440,756

344,700.

LIABILITIES AND INVESTORS’ EQUITY

Present liabilities:

Accounts payable.

17,989

17,080

2,412

Salaries and well-being payable.

22,112

6,032

852

Advances from consumers.

1,177

103

15

Taxes payable.

5,844

6,342

896

Amounts due to associated celebrations.

9,393

12,018

1,697

Accruals and other present liabilities.

492,385

393,536

55,578

Overall current liabilities

548,900.

435,111.

61,450

Non-current liabilities:

Deferred tax liabilities.

2,485

21,529

3,040

Other non-current liabilities.

4,722

3,644

515

Total non-current liabilities

7,207.

25,173

3,555

Overall liabilities

556,107.

460,284

65,005

Shareholders’ equity

Common shares.

177

180

25

Treasury Stock.

-.

( 6,566).

(927).

Statutory reserves.

2,475

2,630

371

Additional paid-in capital.

9,392,737

9,431,740

1,332,016

Built up other detailed income.

77,795

201,796

28,499

Accumulated deficit.

( 5,425,515).

( 7,649,308).

( 1,080,289).

Overall MOGU Inc. shareholders’ equity.

4,047,669

1,980,472

279,695

Total investors’ equity

4,047,669.

1,980,472

279,695

Total liabilities and shareholders’ equity

4,603,776.

2,440,756

344,700

MOGU INC.

Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss

( All quantities in thousands, other than for share and per share data)

For the 3 months ended

For the year ended

March 31,

March 31,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net profits

Commission revenues.

116,498

66,346

9,370

507,728

438,274

61,896

Marketing services incomes.

71,298

18,248

2,577

395,747

243,081

34,330

Other revenues.

29,797

34,395

4,858

170,803

153,959

21,743

Overall revenues

217,593.

118,989.

16,805.

1,074,278.

835,314.

117,969.

Expense of revenues (special of amortization of intangible properties revealed separately listed below).

(61,054).

(58,590).

( 8,274).

(313,788).

(293,757).

(41,486).

Sales and marketing expenditures.

(178,203).

(78,190).

(11,043).

(743,732).

(613,183).

(86,598).

Research and development costs.

(57,210).

(32,813).

( 4,634).

(236,446).

(171,137).

(24,169).

General and administrative expenses.

(46,805).

(11,454).

( 1,618).

(168,379).

(128,152).

(18,099).

Amortization of intangible assets.

(45,012).

(87,112).

(12,303).

(194,874).

(331,294).

(46,788).

Goodwill impairment.

-.

-.

-.

-.

( 1,382,149).

(195,197).

Other earnings, internet.

2,620

68

10

8,761

11,472

1,620

Loss from operations

(168,071)

(149,102)

(21,057)

(574,180)

( 2,072,886)

(292,748)

Interest income.

9,278

6,094

861

33,700

29,312

4,140

Gain/( loss) from financial investments, net.

-.

-.

-.

31,236

(66,550).

( 9,399).

Loss before earnings tax and share of outcomes of equity investees

(158,793)

(143,008)

(20,196)

(509,244)

( 2,110,124)

(298,007)

Income tax advantages.

4,861

1,118

158

17,217

590

83

Share of outcomes of equity investee.

13,146

-.

-.

5,752

(114,104).

(16,115).

Net loss

(140,786)

(141,890)

(20,038)

(486,275)

( 2,223,638)

(314,039)

Earnings attributable to non-controlling interests.

-.

-.

-.

-.

-.

-.

Bottom line attributable to MOGU Inc.

(140,786)

(141,890)

(20,038)

(486,275)

( 2,223,638)

(314,039)

Accretion on convertible redeemable preferred shares to redemption worth.

-.

-.

-.

(509,904).

-.

-.

Deemed dividend to holders of mezzanine equity.

-.

-.

-.

(89,076).

-.

-.

Net loss attributable to MOGU Inc’s normal shareholders

(140,786)

(141,890)

(20,038)

( 1,085,255)

( 2,223,638)

(314,039)

Net loss

(140,786)

(141,890)

(20,038)

(486,275)

( 2,223,638)

(314,039)

Other thorough loss:

Foreign currency translation adjustments, web of nil tax.

(27,057).

18,622

2,630

55,440

105,433

14,890

Share of other thorough earnings/( loss) of equity method investee.

1,048

-.

-.

938

(145).

(20).

Unrealized securities holding gains, web of tax.

18,618

25,472

3,597

25,067

18,713

2,643

Total extensive loss

(148,177)

(97,796)

(13,811)

(404,830)

( 2,099,637)

(296,526)

Total comprehensive earnings attributable to non-controlling interests.

-.

-.

-.

-.

-.

-.

Overall detailed loss attributable to MOGU Inc.

(148,177)

(97,796)

(13,811)

(404,830)

( 2,099,637)

(296,526)

Net loss attributable to MOGU Inc’s common investors

(140,786)

(141,890)

(20,038)

( 1,085,255 )

( 2,223,638)

(314,039)

Bottom line per share attributable to normal shareholders

Basic.

( 0.05).

( 0.05).

( 0.01).

( 0.87).

( 0.82).

( 0.12).

Diluted.

( 0.05).

( 0.05).

( 0.01).

( 0.87).

( 0.82).

( 0.12).

Bottom line per ADS

Standard.

( 1.32).

( 1.30).

( 0.18).

(2174).

(2045).

( 2.89).

Diluted.

( 1.32).

( 1.30).

( 0.18).

(2174).

(2045).

( 2.89).

Weighted average number of shares used in computing net loss per share

Standard.

2,675,956,443

2,730,786,951

2,730,786,951

1,247,998,533

2,718,827,977

2,718,827,977

Diluted.

2,675,956,443

2,730,786,951

2,730,786,951

1,247,998,533

2,718,827,977

2,718,827,977

Share-based compensation expenses consisted of in:

Expense of incomes.

3,451

( 3,205).

(453).

13,916

( 2,747).

(388).

General and administrative expenses.

25,028

(16,071).

( 2,270).

64,433

17,740

2,505

Sales and marketing expenditures.

3,349

(631).

(89).

9,558

7,927

1,120

Research and advancement expenditures.

2,054

( 3,491).

(493).

15,161

9,265

1,308

33,882

(23,398).

( 3,305).

103,068

32,185

4,545

MOGU INC.

Unaudited Interim Condensed Consolidated Statements of Money Flows

( All amounts in thousands, other than for share and per share data)

For the three months ended

For the year ended

March 31,

March 31,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net money used in operating activities

(90,538).

(154,827).

(21,866).

(325,808).

(311,789).

(44,033).

Net money offered by/( used in) investing activities

140,543

141,860

20,034

(82,836).

(113,150).

(15,980).

Net money (utilized in)/ provided by financing activities

(23,083).

( 1,510).

(213).

414,872

(29,332).

( 4,142).

Result of foreign exchange rate modifications on cash and cash equivalents and limited money.

(16,383).

5,515

779

46,091

33,929

4,791

Net boost/( decline) in money and cash equivalents and restricted money.

10,539

( 8,962).

( 1,266).

52,319

(420,342).

(59,364).

Cash and cash equivalents and restricted money at start of duration.

1,267,177

866,336

122,350

1,225,397

1,277,716

180,448

Money and cash equivalents and restricted cash at end of duration.

1,277,716

857,374

121,084

1,277,716

857,374

121,084

MOGU INC.

Reconciliations of GAAP and Non-GAAP Results

( All amounts in thousands, other than for share and per share data)

For the 3 months

ended March 31,

For the year ended

March 31,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Bottom line

(140,786)

(141,890)

(20,038)

(486,275)

( 2,223,638)

(314,039)

Include:.

Share of result of equity investees.

(13,146).

-.

-.

( 5,752).

114,104

16,115

Include:.

( Gain)/ loss from investments, web.

-.

-.

-.

(31,236).

66,550

9,399

Less:.

Earnings tax advantages.

( 4,861).

( 1,118).

(158).

(17,217).

(590).

(83).

Less:.

Interest earnings.

( 9,278).

( 6,094).

(861).

(33,700).

(29,312).

( 4,140).

Loss from operations

(168,071)

(149,102)

(21,057)

(574,180)

( 2,072,886)

(292,748)

Add:.

Share-based settlement expenses.

33,882

(23,398).

( 3,305).

103,068

32,185

4,545

Include:.

Goodwill impairment.

-.

-.

-.

-.

1,382,149

195,197

Add:.

Amortization of intangible assets.

45,012

87,112

12,303

194,874

331,294

46,788

Add:.

Devaluation of property and equipment.

1,792

1,832

259

11,572

7,174

1,013

Changed EBITDA

(87,385)

(83,556)

(11,800)

(264,666)

(320,084)

(45,205)

Bottom line

(140,786)

(141,890)

(20,038)

(486,275)

( 2,223,638)

(314,039)

Add:.

( Gain)/ loss from investments, web.

-.

-.

-.

(31,236).

66,550

9,399

Include:.

Share-based payment.

33,882

(23,398).

( 3,305).

103,068

32,185

4,545

Add:.

Goodwill disability.

-.

-.

-.

-.

1,382,149

195,197

Include:.

Amortization of intangible assets.

45,012

87,112

12,303

194,874

331,294

46,788

Less:.

Changed for tax effects.

( 5,817).

( 1,161).

(164).

(20,139).

( 2,709).

(382).

Changed bottom line

(67,709)

(79,337)

(11,204)

(239,708)

(414,169)

(58,492)

______________________________.


1 GMV refers to the total value of orders put on the MOGU platform no matter whether the products are offered, provided or returned, calculated based upon the market price of the bought items without considering any discount rates on the listed prices. Purchasers on the MOGU platform are not charged for separate shipping costs over the market price of an item. If merchants include particular shipping charges in the sticker price of an item, such shipping costs will be consisted of in GMV. As a prudent matter focusing on removing any influence on MOGU’s GMV of irregular transactions, the Company omits from its estimation of GMV transactions over a particular amount (RMB100,000) and deals by users over a particular quantity (RMB1,000,000) per day.

The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 analytical release of the Board of Governors of the Federal Reserve System as of March 31, 2020, which was RMB7.0808 to US$ 1. The percentages specified in this press release are computed based on the RMB quantities.

3 Adjusted EBITDA represents bottom line prior to (i) interest earnings, loss from financial investments, web, income tax advantages and share of outcomes of equity investee, goodwill impairment and (ii) certain non-cash costs, including share-based settlement expenditures, amortization of intangible possessions, and devaluation of property and devices. See “Unaudited Reconciliations of GAAP and NonGAAP Outcomes” at the end of this news release …

4 Adjusted bottom line represents bottom line excluding (i) loss from investments, net, (ii) share-based compensation expenses, (iii) goodwill impairment, (iv) amortization of intangible assets, (v) changes for tax effects. See “Unaudited Reconciliations of GAAP and NonGAAP Results” at the end of this press release.

5 Adjusted EBITDA represents bottom line before (i) interest income, loss from investments, net, earnings tax benefits and share of results of equity investee, goodwill problems and (ii) certain non-cash costs, including share-based settlement expenditures, amortization of intangible assets, and devaluation of home and devices. See “Unaudited Reconciliations of GAAP and NonGAAP Outcomes” at the end of this press release …

6 Adjusted net loss represents bottom line omitting (i) loss from investments, internet, (ii) share-based compensation costs, (iii) goodwill impairment, (iv) amortization of intangible possessions, (v) modifications for tax impacts. See “Unaudited Reconciliations of GAAP and NonGAAP Outcomes” at the end of this press release.

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