MOGU Inc. Q1 FY2022 earnings call

• Successfully completed business transformation to a pure-play LVB e-commerce company in fiscal year 2021.
• LVB business is the main growth driver going forward, with strong user retention rate and ARPU as validation.
• Acquired Ruisha Technology, which has strategic significance for expanding and utilizing 2B service capabilities, diversifying revenue stream, and helping brands transition to online operations.
• Continues to execute on business transformation towards LVB-focused model, optimizing customer acquisition costs and operating efficiency.

The large e-commerce business, specifically the live video broadcasting e-commerce (LVB) segment, continued steady growth. GMV from LVB increased by 14.7% year-over-year to RMB2.6 billion, contributing 8% of the total GMV. The acquisition of Ruisha Technology is strategically significant; Ruisha Technology's revenue has increased by 13.4 times in recent two years and serves various well-known brands across multiple industries.

• Board of Directors authorized a new share repurchase program to repurchase ADS with an aggregate value of up to $10 million within 12 months.
• LVB business is the main growth driver, with Ruisha Technology representing continuous effort to expand 2B services.
• Confident in long-term growth prospects despite near-term market challenges.

• Increasing competition environment impacting operating metrics such as user acquisition, user retention, and financials.
• Challenging market environment may impact near-term performance.

Q: Regarding the competitive landscape, how does the increasing competition environment impact operating metrics and the company's competitive strength?

A: Intensified competition leads to price competition and increasing user traffic costs. Competitive advantages include early start in LVB business with in-depth know-how, loyal users, and higher ARPU compared to other platforms.

Q: About the acquisition of Ruisha, how does Ruisha fit in the integration of supply chain and strengthen competitive edge?

A: Ruisha diversifies revenue stream by adding 2B income, helps service existing brands on MOGU's platform with private traffic development and cross-border business, and expands into more brands hard to acquire previously.

Q: Thoughts on antimonopoly regulation and its impact on MOGU?

A: Confident in Internet space, sees antimonopoly as beneficial for market openness, and MOGU has been complying with laws and regulations, expecting regulation to benefit the market and MOGU.

Q: Strategies to improve LVB business GMV growth slowing down?

A: Leverage competitive advantages via integrating more KOLs of different categories, expanding to new categories with higher gross profit margins, and attracting new users to live broadcasting shopping through cost-effective methods like working with other platforms.