Mogujie.Com's Net Loss In The Two Quarter Was Half Cut, But Revenue Fell Year-On-Year.

Tencent, the leading online fashion and lifestyle destination in China, and mogujie.com, the first technology in the New York Stock Exchange in December 6, 2018, was released on Monday, August 26th. It released its unaudited first quarter fiscal year 2020 results for June 30, 2019 as of June 30, 2019.

Earnings showed that mogujie.com's first quarter revenue was 248 million 900 thousand yuan (US $36 million 300 thousand), down 2.8% compared to the same period last year, mainly due to the increase in commission revenue from 10% to 129 million 400 thousand yuan over the same period, but it was partially offset by a decrease of 12.3% to 89 million 200 thousand yuan in revenue from marketing services.

The operating loss for the quarter was 105 million 300 thousand yuan (US $15 million 300 thousand), narrowing compared with the operating loss of 116 million 500 thousand yuan in the same period last year. The net loss attributable to ordinary shareholders was 120 million 500 thousand yuan (US $17 million 600 thousand), which was cut by half of the net loss of 309 million 300 thousand yuan in the same period last year. The adjusted EBITDA was negative 25 million 300 thousand yuan, which was negative 58 million 900 thousand yuan in the same period last year.

Financial reports show that the first quarter of fiscal year 2020, mogujie.com platform GMV (total transaction volume) was 4 billion 172 million yuan, an increase of 2.6% over the same period last year. Among them, the important carrier of fashion content and the efficient transformation of fashion merchandise sales live broadcast business recorded GMV 1 billion 315 million yuan, an increase of 102.7% over the same period, accounting for 31.5% of the total GMV of the platform, doubling the proportion of 16% over the same period last year. The active buyers of live video live (LVB) increased by 90.4% to 2 million 700 thousand over the 12 months of June 30, 2019, and the average monthly mobile user activity (MAU) increased by 40.6% over the same period.

June, chairman and chief executive of mogujie.com, said that the company continued to make significant progress in achieving the goal of becoming a key opinion leader (KOL), promoting fashion and lifestyle supply chain with fashion upgrades, and LVB business continued to achieve three digit growth. Future Ltd has also expanded its LVB business to more categories, including cosmetics, jewelry, household goods and lifestyle products, and incorporated other creative fashion content to deepen its potential market.

However, since the listing of mogujie.com's earnings report, total revenue growth has been greatly reduced. For example, since February, the first financial report released since February, the total revenue of the third quarter of fiscal year 2019 was 367 million 200 thousand yuan, up 20.3% over the same period last year. In May this year, the results showed that the total revenue of 217 million 600 thousand yuan in the fourth quarter of fiscal year fourth increased by 15.9% over the same period, which was significantly higher than the latest decline in earnings.

In addition, mogujie.com's net loss narrowing is also related to cost reduction. The total cost and expenses decreased by 4.9% to 354 million 200 thousand yuan compared with the same period last year, and the cost of income, sales and marketing, R & D, general and administrative expenses decreased. Earlier analysts said that although the loss was narrowed so obviously, it was not easy, but from the earnings data, this improvement is not from the operational level, but more importantly, mogujie.com's control over all important costs. In the context of slowing revenue growth and not knowing when to make profits, investors will be worried.

Mogujie.com's biggest decline in the US stock market on Monday was 22.7%, while Japan's low value hit 2.81 U.S. dollars, then narrowed down to less than 18%, trying to return to the top of 3 dollars, close to the lows since listing.