Highlights For the Six Months Ended March 31, 2024

• Total revenues for the six months ended March 31, 2024 decreased by 34.3% to RMB77.0 million (US$10.7 million) from RMB117.2 million during the same period of fiscal year 2023.

• Live video broadcast ("LVB") associated GMV for the six months ended March 31, 2024 decreased by 6.8% period-over-period to RMB2,950 million (US$408.6 million²).

• GMV for the six months ended March 31, 2024 was RMB3,036 million (US$420.5 million), a decrease of 6.3% period-over-period.

Financial Results For the Six Months Ended March 31, 2024

Total revenues for the six months ended March 31, 2024 decreased by 34.3% to RMB77.0 million (US$10.7 million) from RMB117.2 million during the same period of fiscal year 2023.

• Commission revenues for the six months ended March 31, 2024 decreased by 28.6% to RMB54.1 million (US$7.5 million) from RMB75.8 million in the same period of fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment.

• Marketing services revenues for the six months ended March 31, 2024 decreased by 85.0% to RMB0.2 million (US$0.03 million) from RMB1.4 million in the same period of fiscal year 2023, primarily due to the challenging competitive environment.

• Financing solutions revenues for the six months ended March 31, 2024 decreased by 19.2% to RMB4.9 million (US$0.7 million) from RMB6.0 million in the same period of 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 March 31, 2024 decreased by 51.6% to RMB14.9 million (US$2.1 million) from RMB30.8 million in the same period of fiscal year 2023, primarily attributable to the decrease of insurance technology service revenue.

• Other revenues for the six months ended March 31, 2024 decreased by 7.4% to RMB2.9 million (US$0.4 million) from RMB3.2 million in the same period of fiscal year 2023.

Cost of revenues for the six months ended March 31, 2024 decreased by 23.3% to RMB41.6 million (US$5.8 million) from RMB54.2 million in the same period of fiscal year 2023, which was primarily due to a decrease in IT-related expenses of RMB7.3 million and decrease in payroll costs of RMB5.4 million, in line with the overall reduction in revenue.

Sales and marketing expenses for the six months ended March 31, 2024 decreased by 14.1% to RMB30.1 million (US$4.2 million) from RMB35.1 million in the same period of fiscal year 2023, primarily due to a decrease in performance-related year-end bonus.

Research and development expenses for the six months ended March 31, 2024 decreased by 20.4% to RMB12.8 million (US$1.8 million) from RMB16.1 million in the same period of fiscal year 2023, primarily due to a decrease in performance-related year-end bonus.

General and administrative expenses for the six months ended March 31, 2024 decreased by 11.3% to RMB27.2 million (US$3.8 million) from RMB30.7 million in the same period of fiscal year 2023, primarily due to a decrease in performance-related year-end bonus.

Amortization of intangible assets for the six months ended March 31, 2024 decreased by 99.8% to RMB0.08 million (US$0.01 million) from RMB40.0 million in the same period of the fiscal year 2023, primarily because the intangible assets recorded as a result of the business cooperation agreement MOGU entered into with Tencent in July 2018 had been fully amortized as of December 31, 2022.

Impairment of goodwill and intangible assets for the six months ended March 31, 2024 decreased by 100.0% to nil from RMB84.7 million in the same period of fiscal year 2023, primarily due to the Company’s recognition of a full impairment charge of RMB63.5 million against its remaining goodwill balance and impairments totaling of RMB21.2 million for intangible assets which had been recorded in connection with the acquisition of Hangzhou Ruisha Technology Co., Ltd. ("Ruisha Technology") in the same period of fiscal year 2023.

Loss from operations for the six months ended March 31, 2024 was RMB27.1 million (US$3.8 million), compared to the loss from operations of RMB139.4 million in the same period of fiscal year 2023.

Net loss attributable to MOGU Inc. for the six months ended March 31, 2024 was RMB23.9 million (US$3.3 million), compared to the net loss attributable to MOGU Inc. of RMB120.5 million in the same period of fiscal year 2023.

Adjusted EBITDA³ for the six months ended March 31, 2024 was negative RMB20.7 million (US$2.9 million), compared to negative RMB6.8 million in the same period of fiscal year 2023.

Adjusted net loss⁴ for the six months ended March 31, 2024 was RMB22.3 million (US$3.1 million), compared to the adjusted net loss of RMB46.7 million in the same period of fiscal year 2023.

Basic and diluted loss per ADS for the six months ended March 31, 2024 were RMB2.74 (US$0.38) and RMB2.74 (US$0.38), respectively, compared with RMB14.07 and RMB14.07, respectively, in the same period of fiscal year 2023. One ADS represents 300 Class A ordinary shares.

Cash and cash equivalents, Restricted cash and Short-term investments were RMB420.6 million (US$58.3 million) as of March 31, 2024, compared with RMB562.8 million as of March 31, 2023.

Fiscal Year 2024 Financial Results

Total revenues decreased by 30.9% to RMB160.3 million (US$22.2 million) from RMB232.1 million in fiscal year 2023.

• Commission revenues decreased by 25.6% to RMB109.7 million (US$15.2 million) from RMB147.5 million in fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment.

• Marketing services revenues decreased by 78.2% to RMB1.0 million (US$0.1 million) from RMB4.4 million in fiscal year 2023. The decrease was primarily due to the challenging competitive environment.

• Financing solutions revenues decreased by 20.7% to RMB10.3 million (US$1.4 million) from RMB12.9 million in the same period of fiscal year 2023. The decrease was primarily due to the decrease in service fees of loans to users in line with the lower GMV.

• Technology service revenues increased by 43.5% to RMB33.3 million (US$4.6 million) from RMB58.9 million in the fiscal year 2023, primarily attributable to a decrease in insurance technology services and software services revenue due to the challenging competitive environment.

• Other revenues decreased by 27.0% to RMB6.1 million (US$0.8 million) from RMB8.3 million in fiscal year 2023, primarily due to the decrease in branding services revenue.

Cost of revenues decreased by 19.9% to RMB91.2 million (US$12.6 million) from RMB113.9 million in fiscal year 2023, which was primarily due to a decrease in IT-related expenses of RMB11.3 million, payroll cost of RMB9.9 million and payment handling costs of RMB2.5 million, in relation to the overall reduction in revenue.

Sales and marketing expenses decreased by 0.5% to RMB67.4 million (US$9.3 million) from RMB67.7 million in fiscal year 2023, primarily due to a decrease in payroll cost of RMB13.2 million in relation to the decrease of performance-related year-end bonus, partially offset by spending on branding and user acquisition activities of RMB12.9 million.

Research and development expenses decreased by 27.9% to RMB26.7 million (US$3.7 million) from RMB37.1 million in fiscal year 2023, primarily due to a decrease in performance-related year-end bonus.

General and administrative expenses decreased by 13.1% to RMB55.1 million (US$7.6 million) from RMB63.4 million in fiscal year 2023, primarily due to a decrease in performance-related year-end bonus of RMB7.2 million and professional service fees of RMB1.8 million.

Amortization of intangible assets decreased by 96.8% to RMB1.9 million (US$0.3 million) from RMB60.0 million in fiscal year 2023, primarily because the majority of the intangible assets recorded as a result of the business cooperation agreement MOGU entered into with Tencent in July 2018 had been fully amortized as of December 31, 2022.

Impairment of goodwill and intangible assets for the year ended March 31, 2024 was RMB9.9 million (US$1.4 million), compared to RMB84.7 million in the fiscal year 2023. In fiscal year 2023, the Company recognized a full impairment charge of RMB63.5 million against its remaining goodwill balance and impairments totaling of RMB21.2 million for intangible assets which had been recorded in connection with the acquisition of Ruisha Technology. In fiscal year 2024, the Company recognized a full impairment charge of RMB9.9 million against its intangible assets arising from the acquisition of Ruisha Technology. The recorded impairments resulted from weaker-than-expected operating results which reflect an increasingly competitive business environment and the related limited future economic benefits expected to be generated from these intangible assets.

Loss from operations was RMB79.2 million (US$11.0 million), compared to the loss from operations of RMB187.4 million in fiscal year 2023.

Net loss attributable to MOGU Inc. was RMB59.3 million (US$8.2 million), compared to the net loss attributable to MOGU Inc. of RMB178.0 million in fiscal year 2023.

Adjusted EBITDA was negative RMB54.6 million (US$7.6 million), compared to negative RMB23.9 million in fiscal year 2023.

Adjusted net loss was RMB55.1 million (US$7.6 million), compared to the adjusted net loss of RMB78.5 million in fiscal year 2023.

Basic and diluted loss per ADS were RMB6.85 (US$0.95) and RMB6.85 (US$0.95) respectively, compared with RMB20.90 and RMB20.90, respectively, in fiscal year 2023. One ADS represents 300 Class A ordinary shares.

Subsequent event

On May 14, 2024, the board of directors of the Company approved a new share repurchase program where the Company is authorized to repurchase up to US$8 million of its shares, effective until May 12, 2025.

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, interest expense, (gain)/loss from investments, net, income tax (benefits)/expenses, share of results of equity investees, impairment of goodwill and 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)/loss from investments, net, impairment of goodwill and 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 non-recurring 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; the risk that COVID-19 or other health risks in China or globally could adversely affect its operations or financial results; its future business development, results of operations and financial condition; 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 e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China’s e-commerce 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.

The financial statements as of March 31, 2023 are being revised to correct an error related to the receipts from users, amounting to RMB 25 million, which was previously accounted for as repayments of loan receivables. It has been revised to record the receipts in the accruals and other current liabilities as of March 31, 2023. The impacts of the revision on the previously issued consolidated financial statements are not considered material to the financial statements taken as a whole.

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 March 31, 2024, which was RMB7.2203 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts.

³ Adjusted EBITDA represents net loss before (i) interest income, interest expense, (gain)/loss from investments, net, income tax (benefits)/expenses and share of results of equity investees, impairment of goodwill and 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)/loss from investments, net, (ii) share-based compensation expenses, (iii) impairment of goodwill and intangible assets, (iv) adjustments for tax effects. See "Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

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Contacts

For investor and media inquiries, please contact:

MOGU Inc.
Ms. Qi Feng
Phone: +86-571-8530-8201
E-mail: [email protected]

Christensen
In China
Ms. Rachel Xia
Phone: +852-2232-3980
E-mail: [email protected]

In the United States
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]