Financial Report Comments | Mogujie's loss in the first half of fiscal year 2022 doubles year-on-year, and rumors of layoffs again

In the first half of fiscal year 2022, Mogujie revenue was 169 million yuan, a year-on-year decline of 30.8%; net loss was 414 million yuan, compared with a net loss of 183 million yuan in the same period last year; basic and diluted ADS losses were 4 yuan per ADS.
On December 24, Capital State learned that Mogujie (MOGU.US) , a U.S.-listed company, released its financial results for the first half of fiscal year 2022 for the six months ended September 30, 2021.

In the first half of fiscal year 2022, Mogujie’s revenue was 169 million yuan (RMB, the same below), a year-on-year decline of 30.8%; a net loss of 414 million yuan, a net loss of 183 million yuan in the same period last year, an increase of 126.2% year-on-year; basic and diluted Each ADS loses 4 yuan.

According to the specific business, in the first half of the fiscal year, the company’s commission income decreased by 24.3% year-on-year to 116.8 million yuan, marketing service revenue decreased by 69% year-on-year to 13 million yuan, financing solutions revenue decreased by 10.4% year-on-year to 21.5 million yuan, and other income A decrease of 26.8% to 18.2 million yuan.

In the first half of fiscal year 2022, Mogujie achieved GMV of approximately 5.454 billion yuan, a year-on-year decrease of 12.5%. Among them, LVB increased by 8.5% year-on-year to 4.972 billion yuan, accounting for 91.2% of the total GMV of the platform.

Qi Feng, the company’s chief financial officer, said, “The company plans to diversify its revenue structure by focusing on products with higher gross profit margins and exploring new sources of revenue, thereby increasing the company’s revenue. The company will continue to optimize customer procurement and operational efficiency to achieve Cost and expense reduction."

Earlier, Mogujie was exposed to a layoff plan, the plan is mainly for the technical department, the network transmission technology department will cut 80%, about 30% of the overall layoffs.

This is not the first large-scale layoffs in Mogujie. In April last year, Mogujie lay off 14% of its employees. According to an internal letter sent to employees by the company's founder, Chen Qi, this round of layoffs mainly optimized and adjusted some businesses, and the abolition was left over due to historical reasons. Business, especially the departments that deviate from the core business of e-commerce live broadcast.

As of the close of trading on December 23, Mogujie stock price was $0.435, an increase of 6.1%.