(4) Adjusted net loss represents net loss excluding (i) gain from investments, net, (ii) share-based compensation expenses, (iii) impairment of intangible assets, (iv) adjustments for tax effects. See "Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.
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, gain from investments, net, income tax (benefits)/expenses, share of results of equity investees, impairment of 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 from investments, net, impairment of 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 nonSHYrecurring 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; 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 eSHYcommerce market; changes in its revenues and certain cost or expense items; the expected growth of China's eSHYcommerce 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. $(MOGU)$ 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.
MOGU INC. Unaudited Condensed Consolidated Balance Sheets (All
amounts in thousands, except for share and per share data)
As of March
31, September 30,
------------- -----------------------
2024 2024
------------- -----------------------
RMB RMB US$
ASSETS
Current assets:
Cash and cash
equivalents 358,787 84,356 12,021
Restricted cash 511 511 73
Short-term
investments 61,312 271,525 38,692
Inventories, net 98 67 10
Loan
receivables,
net 31,564 28,759 4,098
Prepayments,
receivables and
other current
assets 54,956 95,562 13,617
Amounts due from
related
parties 587 331 47
------------ ---------- ----------
Total current
assets 507,815 481,111 68,558
------------ ---------- ----------
Non-current
assets:
Property and
equipment, net 299,741 299,996 42,749
Intangible
assets, net 949 871 124
Right-of-use
assets 2,576 1,650 235
Investments 81,808 54,058 7,703
Other
non-current
assets 45,473 49,411 7,041
------------ ---------- ----------
Total non-current
assets 430,547 405,986 57,852
------------ ---------- ----------
Total assets 938,362 887,097 126,410
============ ========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current
liabilities:
Accounts payable 6,862 3,567 508
Salaries and
welfare
payable 6,936 5,254 749
Advances from
customers 207 627 89
Taxes payable 1,285 2,436 347
Amounts due to
related
parties 5,341 4,490 640
Current portion
of lease
liabilities 1,888 374 53
Accruals and
other current
liabilities 299,317 295,641 42,129
------------ ---------- ----------
Total current
liabilities 321,836 312,389 44,515
------------ ---------- ----------
Non-current
liabilities:
Non-current
lease
liabilities 773 386 55
Deferred tax
liabilities 1,299 -- --
Total non-current
liabilities 2,072 386 55
------------ ---------- ----------
Total liabilities 323,908 312,775 44,570
------------ ---------- ----------
Shareholders'
equity
Ordinary shares 181 181 26
Treasury stock (137,446) (138,269) (19,703)
Statutory
reserves 3,331 3,331 475
Additional
paid-in
capital 9,489,254 9,489,994 1,352,313
Accumulated
other
comprehensive
income 89,567 72,084 10,272
Accumulated
deficit (8,856,494) (8,880,623) (1,265,479)
------------ ---------- ----------
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