MOGU Inc. Q2 FY2021 earnings call

• Live video broadcasting e-commerce GMV reached RMB2.3 billion in Q2, up 42.2% y-o-y, being the growth engine. - Established a differentiating shopping experience with KOLs, enhancing customer engagement. - LVB active buyers grew 20.7% y-o-y, and social sharing/referral program was effective. - Launched short video detail page for better product presentation. - During Double 11, top KOLs had over 200 million sales in one live session; traced apparel production zones via live broadcast to boost manufacturer sales.

In the second quarter, the live video broadcasting e-commerce (LVB) GMV increased by 42.2% year-over-year to RMB2.3 billion, contributing 74.4% of the total GMV. The number of LVB active buyers in the last 12 months ended September 30, 2020, grew by 20.7% year-over-year to 3.5 million.

• Focus on product innovation and supply chain development for live e-commerce. - MOGU Live to drive future growth. - Breakeven is a milestone but no specific timing for achieving it is provided.

• Uncertainties in market and operating conditions may cause actual results to differ from forward-looking statements. - Challenges in transitioning from traditional e-commerce to live e-commerce, including potential impact on take rate and competition.

Q: About slower growth rate of LVB-associated GMV A: Q2 has seasonality, COVID-19 impact on apparel factories, and comparison with prior strong quarter.

Q: About Double 11 performance and investee repurchase A: Top KOLs had over 200 million sales in one live session; investee repurchase related to portfolio company growth.

Q: About active buyers decline A: Transition from traditional to live e-commerce, focusing on live users with higher ARPU and loyalty.

Q: About take rate downtrend A: Transition to live e-commerce with lower initial take rate, potential for improvement in future.

Q: About KOL incubation strategy A: Comprehensive tiering and empowerment training system for KOLs to grow on the platform.