REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
US$0.00001 per share |
(The New York Stock Exchange) |
* |
No t for trading, but only in connection with the listing on The New York Stock Exchange of American depositary shares. |
Large accelerated filer ☐ |
Accelerated filer ☒ |
Non-accelerated filer ☐ |
Emerging growth company | |||||||||
† |
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ |
International Financial Reporting Standards as issued |
Other ☐ | ||||||
by the International Accounting Standards Board ☐ |
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3 |
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4 |
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ITEM 1 |
4 |
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ITEM 2 |
4 |
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ITEM 3 |
4 |
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ITEM 4 |
47 |
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Item 4A. |
76 |
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Item 5. |
76 |
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Item 6. |
95 |
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Item 7. |
103 |
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Item 8. |
105 |
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Item 9. |
106 |
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Item 10. |
107 |
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Item 11. |
121 |
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Item 12. |
122 |
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125 |
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Item 13. |
125 |
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Item 14. |
125 |
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Item 15. |
125 |
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Item 16A. |
127 |
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Item 16B. |
127 |
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Item 16C. |
127 |
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Item 16D. |
127 |
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Item 16E. |
127 |
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Item 16F. |
128 |
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Item 16G. |
128 |
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Item 16H. |
128 |
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129 |
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Item 17. |
129 |
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Item 18. |
129 |
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Item 19. |
129 |
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131 |
• | “active buyer through LVB” in a given period are to registered user account that placed one or more orders in one of the LVB channels on our platform, regardless of whether the ordered products are sold, delivered or returned (If a buyer registered two or more user accounts on our platform and placed orders on our platform through those different registered user accounts, the number of active buyers would, under this methodology, be counted as the number of the registered user accounts that such buyer used to place the orders); |
• | “ADRs” are to the American depositary receipts which may evidence the ADSs; |
• | “ADSs” are to our American depositary shares, each of which represents 25 Class A ordinary shares; |
• | “Beijing Meilishikong” or “Meilishikong” are to Beijing Meilishikong Network and Technology Co., Ltd.; |
• | “BVI” are to the British Virgin Islands; |
• | “China” or the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; |
• | “Class A ordinary shares” are to our Class A ordinary shares, par value US$0.00001 per share; |
• | “Class B ordinary shares” are to our Class B ordinary shares, par value US$0.00001 per share; |
• | “established LVB host” are to LVB host above a certain level of fan following and product sales in our LVB host incubation system; |
• | “KOL” are to key opinion leader; |
• | “GMV” are to gross merchandise volume, which is the total value of orders placed on our platform regardless of whether the products are sold, delivered or returned, calculated based on the listed prices of the ordered products without taking into consideration any discounts on the listed prices. Buyers on our platform are not charged for shipping fees in addition to the listed price of a product. If merchants include certain shipping fees in the listed price of a product, such shipping fees will be included in our GMV. As a prudent matter aimed at eliminating any influence on our GMV of irregular transactions, we exclude from our calculation of GMV transactions over a certain amount (RMB100,000) and transactions by users over a certain amount (RMB1,000,000) per day; |
• | “Hangzhou Juangua” are to Hangzhou Juangua Network Co., Ltd.; |
• | “Hangzhou Shiqu” are to Hangzhou Shiqu Information and Technology Co., Ltd.; |
• | “LVB” are to live video broadcast; |
• | “MOGU,” “we,” “us,” “our company” and “our” are to MOGU Inc., our Cayman Islands holding company and its subsidiaries, its consolidated affiliated entities and the subsidiaries of the consolidated affiliated entities; |
• | “Meilishuo Beijing” are to Meilishuo (Beijing) Network Technology Co., Ltd.; |
• | “our VIEs” are to Hangzhou Juangua Network Co., Ltd. and Beijing Meilishikong Network and Technology Co., Ltd.; |
• | “RMB” and “Renminbi” are to the legal currency of China; and |
• | “US$,” “U.S. dollars,” “$,” and “dollars” are to the legal currency of the United States. |
• | our mission, goals and strategies; |
• | our future business development, financial conditions and results of operations; |
• | the expected growth of the online retail and fashion industries in China; |
• | our expectations regarding demand for and market acceptance of our products and services; |
• | our expectations regarding keeping and strengthening our relationships with users, KOLs, merchants, brand and strategic partners and other stakeholders; |
• | competition in our industry; |
• | our proposed use of proceeds; and |
• | relevant government policies and regulations relating to our industry. |
ITEM 1 |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2 |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3 |
KEY INFORMATION |
For the Year Ended March 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands, except for share and per share data) |
||||||||||||||||||||||||
Selected Consolidated Statement of Operations and Comprehensive Loss Data: |
||||||||||||||||||||||||
Revenues |
1,109,877 |
973,207 |
1,074,278 |
835,314 |
482,392 |
73,627 |
||||||||||||||||||
Cost of revenues (exclusive of amortization of intangible assets shown separately below) (1) |
(377,765 | ) | (317,725 | ) | (313,788 | ) | (293,757 | ) | (183,112 | ) | (27,948 | ) | ||||||||||||
Sales and marketing expenses (1) |
(692,742 | ) | (747,928 | ) | (743,732 | ) | (613,183 | ) | (229,775 | ) | (35,071 | ) | ||||||||||||
Research and development expenses (1) |
(418,496 | ) | (289,274 | ) | (236,446 | ) | (171,137 | ) | (103,474 | ) | (15,793 | ) | ||||||||||||
General and administrative expenses (1) |
(123,404 | ) | (100,105 | ) | (168,379 | ) | (128,152 | ) | (103,038 | ) | (15,727 | ) | ||||||||||||
Amortization of intangible assets |
(440,772 | ) | (384,555 | ) | (194,874 | ) | (331,294 | ) | (341,802 | ) | (52,169 | ) | ||||||||||||
Impairment of goodwill and intangible assets |
(110,610 | ) | — | — | (1,382,149 | ) | — | — | ||||||||||||||||
Other (expense)/income, net |
(17,429 | ) | 18,961 | 8,761 | 11,472 | 49,885 | 7,614 | |||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|||||||||||||
Loss from operations |
(1,071,341 |
) |
(847,419 |
) |
(574,180 |
) |
(2,072,886 |
) |
(428,924 |
) |
(65,467 |
) | ||||||||||||
Interest income |
24,514 | 33,464 | 33,700 | 29,312 | 19,601 | 2,992 | ||||||||||||||||||
Gain/(loss) from investments, net |
— | 172,219 | 31,236 | (66,550 | ) | 86,497 | 13,202 | |||||||||||||||||
Loss before income tax and share of results of equity investee |
(1,046,827 |
) |
(641,736 |
) |
(509,244 |
) |
(2,110,124 |
) |
(322,826 |
) |
(49,273 |
) | ||||||||||||
Income tax benefits/(expense) |
107,687 | 88,665 | 17,217 | 590 | (5,181 | ) | (791 | ) | ||||||||||||||||
Share of results of equity investee |
— | (4,982 | ) | 5,752 | (114,104 | ) | 36 | 5 | ||||||||||||||||
Net loss |
(939,140 |
) |
(558,053 |
) |
(486,275 |
) |
(2,223,638 |
) |
(327,971 |
) |
(50,059 |
) | ||||||||||||
Net (loss)/income attributable to non-controlling interests |
(3 | ) | 116 | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net loss attributable to MOGU Inc. |
(939,137 |
) |
(558,169 |
) |
(486,275 |
) |
(2,223,638 |
) |
(327,971 |
) |
(50,059 |
) | ||||||||||||
Accretion on convertible redeemable preferred shares to redemption value |
(601,902 | ) | (688,240 | ) | (509,904 | ) | — | — | — | |||||||||||||||
Deemed dividend to holders of mezzanine equity |
— | — | (89,076 | ) | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended March 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net loss attributable to MOGU Inc.’s ordinary shareholders |
(1,541,039 |
) |
(1,246,409 |
) |
(1,085,255 |
) |
(2,223,638 |
) |
(327,971 |
) |
(50,059 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per share attributable to ordinary shareholders |
||||||||||||||||||||||||
Basic |
(2.77 | ) | (2.26 | ) | (0.87 | ) | (0.82 | ) | (0.12 | ) | (0.02 | ) | ||||||||||||
Diluted |
(2.77 | ) | (2.26 | ) | (0.87 | ) | (0.82 | ) | (0.12 | ) | (0.02 | ) | ||||||||||||
Weighted average number of shares used in computing net loss per share |
||||||||||||||||||||||||
Basic |
555,729,818 | 550,793,455 | 1,247,998,533 | 2,718,827,977 | 2,630,425,361 | 2,630,425,361 | ||||||||||||||||||
Diluted |
555,729,818 | 550,793,455 | 1,247,998,533 | 2,718,827,977 | 2,630,425,361 | 2,630,425,361 |
(1) | Share-based compensation expenses were allocated as follows: |
For the Year Ended March 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Cost of revenues |
(5,342 | ) | (4,619 | ) | (13,916 | ) | 2,747 | (2,464 | ) | (376 | ) | |||||||||||||
Sales and marketing expenses |
(2,607 | ) | (2,450 | ) | (9,558 | ) | (7,927 | ) | (5,416 | ) | (827 | ) | ||||||||||||
Research and development expenses |
(7,801 | ) | (6,016 | ) | (15,161 | ) | (9,265 | ) | (3,940 | ) | (601 | ) | ||||||||||||
General and administrative expenses |
(4,988 | ) | (3,751 | ) | (64,433 | ) | (17,740 | ) | (14,475 | ) | (2,209 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(20,738 | ) | (16,836 | ) | (103,068 | ) | (32,185 | ) | (26,295 | ) | (4,013 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Selected Consolidated Balance Sheet Data: |
||||||||||||||||||||||||
Cash and cash equivalents |
1,270,289 | 1,224,393 | 1,276,710 | 856,567 | 542,076 | 82,737 | ||||||||||||||||||
Restricted cash |
1,206 | 1,004 | 1,006 | 807 | 808 | 123 | ||||||||||||||||||
Short-term investments |
400,583 | 130,000 | 212,000 | 238,000 | 260,245 | 39,721 | ||||||||||||||||||
Inventories, net |
4,098 | 110 | 5,042 | 2,926 | 240 | 37 | ||||||||||||||||||
Loan receivables, net |
149,106 | 104,247 | 120,901 | 113,111 | 99,965 | 15,258 | ||||||||||||||||||
Prepayments and other current assets |
650,048 | 188,862 | 161,249 | 99,108 | 77,679 | 11,855 | ||||||||||||||||||
Amounts due from related parties |
420 | 7,179 | 1,789 | 57 | 6,061 | 925 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total current assets |
2,475,750 |
1,655,795 |
1,778,697 |
1,310,576 |
987,074 |
150,656 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Property, equipment and software, net |
99,689 | 16,511 | 11,975 | 14,109 | 10,780 | 1,645 | ||||||||||||||||||
Intangible assets, net |
500,905 | 116,770 | 1,001,967 | 813,011 | 426,005 | 65,021 | ||||||||||||||||||
Goodwill. |
1,568,653 | 1,568,653 | 1,568,653 | 186,504 | 186,504 | 28,466 | ||||||||||||||||||
Investments |
10,935 | 201,037 | 241,721 | 102,373 | 66,382 | 10,132 | ||||||||||||||||||
Other non-current assets |
28,521 | 18,755 | 763 | 14,183 | 163,111 | 24,896 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total non-current assets |
2,208,703 |
1,921,726 |
2,825,079 |
1,130,180 |
852,782 |
130,160 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
4,684,453 |
3,577,521 |
4,603,776 |
2,440,756 |
1,839,856 |
280,816 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accounts payable |
11,104 | 12,270 | 17,989 | 17,080 | 19,938 | 3,044 | ||||||||||||||||||
Salaries and welfare payable |
36,626 | 20,654 | 22,112 | 6,032 | 4,349 | 664 | ||||||||||||||||||
Advances from customers |
236 | 37 | 1,177 | 103 | 77 | 12 | ||||||||||||||||||
Taxes payable |
4,510 | 8,523 | 5,844 | 6,342 | 1,558 | 238 | ||||||||||||||||||
Amounts due to related parties |
2,467 | 20,103 | 9,393 | 12,018 | 6,234 | 951 | ||||||||||||||||||
Accruals and other current liabilities |
1,019,037 | 608,486 | 492,385 | 393,536 | 333,127 | 50,845 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total current liabilities |
1,073,980 |
670,073 |
548,900 |
435,111 |
365,283 |
55,754 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
1,188,568 |
695,306 |
556,107 |
460,284 |
384,960 |
58,757 |
||||||||||||||||||
Total mezzanine equity |
6,696,632 |
7,384,872 |
— |
— |
— |
— |
||||||||||||||||||
Total shareholders’ (deficit)/equity |
(3,200,747 |
) |
(4,502,657 |
) |
4,047,669 |
1,980,472 |
1,454,896 |
222,059 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities, mezzanine equity and shareholders’ equity |
4,684,453 |
3,577,521 |
4,603,776 |
2,440,756 |
1,839,856 |
280,816 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended March 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Selected Consolidated Cash Flow Data: |
||||||||||||||||||||||||
Net cash used in operating activities |
(832,497 | ) | (314,862 | ) | (325,808 | ) | (311,789 | ) | (77,931 | ) | (11,895 | ) | ||||||||||||
Net cash (used in)/provided by investing activities |
(541,637 | ) | 340,461 | (82,836 | ) | (113,150 | ) | (96,663 | ) | (14,754 | ) | |||||||||||||
Net cash provided by/(used in) financing activities |
194,964 | 7,136 | 414,872 | (29,332 | ) | (119,249 | ) | (18,201 | ) | |||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
96,010 | (78,833 | ) | 46,091 | 33,929 | (20,647 | ) | (3,151 | ) | |||||||||||||||
Net (decrease)/increase in cash and cash equivalents and restricted cash |
(1,083,160 | ) | (46,098 | ) | 52,319 | (420,342 | ) | (314,490 | ) | (48,001 | ) | |||||||||||||
Cash and cash equivalents and restricted cash at beginning of year |
2,354,655 | 1,271,495 | 1,225,397 | 1,277,716 | 857,374 | 130,861 | ||||||||||||||||||
Cash and cash equivalents and restricted cash at end of year |
1,271,495 | 1,225,397 | 1,277,716 | 857,374 | 542,884 | 82,860 |
D. |
Risk Factors |
• | maintain superior shopping experience, particularly as user preferences evolve; |
• | maintain and grow our user base and keep our users highly engaged; |
• | maintain and grow our content offering and ensure access to content creators, including KOLs; |
• | maintain the popularity, attractiveness and quality of the content and products we offer; |
• | enhance our reputation and goodwill generally and in the event of any negative publicity on product quality, customer services, internet security, or other issues affecting us or our industry in China; and |
• | maintain our relationships with merchants, brand partners and other service providers. |
• | dissatisfaction with these online payment services or decreased use of their services by users and merchants; |
• | increasing competition, including from other established Chinese internet companies, payment service providers and companies engaged in other financial technology services; |
• | changes to rules or practices applicable to payment systems that link to third-party online payment service providers; |
• | breach of users’ personal information and concerns over the use and security of information collected from buyers; |
• | service outages, system failures or failures to effectively scale the system to handle large and growing transaction volumes; |
• | increasing costs to third-party online payment service providers, including fees charged by banks to process transactions through online payment channels, which would also increase our costs of revenues; and |
• | failure to manage funds accurately or loss of funds, whether due to employee fraud, security breaches, technical errors or otherwise. |
• | protecting the data in and hosted on our system, including against attacks on our system by outside parties or fraudulent behavior or improper use by our employees or users; |
• | addressing concerns related to privacy and sharing, safety, security and other factors; and |
• | complying with applicable laws, rules and regulations relating to the collection, use, storage, transfer, disclosure and security of personal information, including any requests from regulatory and government authorities relating to these data. |
• | our technology, system, networks and our users’ devices have been subject to, and may continue to be the target of, cyber-attacks, computer viruses, malicious code, phishing attacks or information security breaches that could result in an unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of ours, our employees or sensitive information provided by our users, or otherwise disrupt our, our users’ or other third parties’ business operations; |
• | the use of encryption and other security measures intended to protect our systems and confidential data may not provide absolute security, and losses or unauthorized access to or releases of confidential information may still occur; |
• | our security measures may be breached due to employee error, malfeasance or unauthorized access to sensitive information by our employees, who may be induced by outside third parties, and we may not be able to anticipate any breach of our security or to implement adequate preventative measures; and |
• | we may be subject to information technology system failures or network disruptions caused by natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or war, computer viruses, physical or electronic break-ins, or other events or disruptions. |
• | revoking the business licenses and/or operating licenses of such entities; |
• | imposing fines on us; |
• | confiscating any of our income that they deem to be obtained through illegal operations; |
• | terminating or placing restrictions or onerous conditions on our operations; |
• | placing restrictions on our right to collect revenues; and |
• | shutting down our servers or blocking our mobile apps and websites. |
• | variations in our revenues, earnings, cash flow and data related to our user base or user engagement; |
• | announcements of new investments, acquisitions, strategic partnerships or joint ventures by us or our competitors; |
• | announcements of new product and service offerings, solutions and expansions by us or our competitors; |
• | changes in financial estimates by securities analysts; |
• | detrimental adverse publicity about us, our products and services or our industry; |
• | additions or departures of key personnel; |
• | release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; and |
• | actual or potential litigation or regulatory investigations. |
ITEM 4 |
INFORMATION ON THE COMPANY |
A. |
History and Development of the Company |
B. |
Business Overview |
• | Live Video Broadcasts. |
• | Short-live Videos |
• | Short-form Videos. make-up lessons and lifestyle guides. In addition, our users can also upload short-form videos after the content is vetted by our content screening procedures. |
• | Photography |
• | Online Review Community |
C. |
Organizational Structure |
(1) | Each of Messrs. Qi Chen, Yibo Wei and Xuqiang Yue, a director and beneficial owner of the shares of our company, holds 58.67%, 23.62% and 17.71% equity interests in Hangzhou Juangua, respectively. |
(2) | Each of Messrs. Qi Chen, Yibo Wei and Xuqiang Yue, a director and beneficial owner of the shares of our company, holds 52.44%, 26.72% and 19.84% equity interests in Beijing Meilishikong, respectively. Mr. Yirong Xu, a beneficial owner of the shares of our company, holds the remaining 1% equity interests in Beijing Meilishikong. |
• | the ownership structures of our VIEs in China and Hangzhou Shiqu are not in violation of applicable PRC laws and regulations currently in effect; and |
• | the contractual arrangements between Hangzhou Shiqu, our VIEs and their respective shareholders governed by PRC law are valid, binding and enforceable, and will not result in any violation of applicable PRC laws and regulations currently in effect. |
D. |
Property, Plant and Equipment |
Location |
Space (in thousands of square meters) |
Use |
Lease Term (years) | |||
Hangzhou, China |
11.2 | Office | 1-5 | |||
Beijing, China |
0.1 | Office | 1 |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
Operating Results |
• | our ability to expand our user base, in particular our active buyers through LVB, and strengthen our user engagement; |
• | our ability to recruit more high-quality LVB hosts and improve the performance and popularity of existing LVB hosts; |
• | our ability to boost user purchases from our LVB hosts; |
• | our ability to use our KOLs and content to drive transactions for our merchants and brand partners; |
• | our ability to further diversify our monetization channels and enhance our monetization capabilities; |
• | our ability to effectively manage our sales and marketing efficiency; |
• | our ability to attract and retain talents and develop our technological infrastructure; |
• | our ability to effectively control our costs and operating expenses; |
• | our ability to make strategic acquisitions and investments; and |
• | our ability to maintain partnerships with key strategic partners. |
For the Year Ended March 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Commission revenues |
507,728 | 47.3 | 438,274 | 52.5 | 318,602 | 48,628 | 66.0 | |||||||||||||||||||||
Marketing services revenues |
395,747 | 36.8 | 243,081 | 29.1 | 71,345 | 10,889 | 14.8 | |||||||||||||||||||||
Financing solutions revenues |
49,076 | 4.6 | 53,989 | 6.5 | 49,285 | 7,522 | 10.2 | |||||||||||||||||||||
Other revenues |
121,727 | 11.3 | 99,970 | 11.9 | 43,160 | 6,588 | 9.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
1,074,278 |
100.0 |
835,314 |
100.0 |
482,392 |
73,627 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended March 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Cost of revenues (exclusive of amortization of intangible assets shown separately below) |
(313,788 | ) | 19.0 | (293,757 | ) | 10.1 | (183,112 | ) | (27,948 | ) | 20.1 | |||||||||||||||||
Sales and marketing expenses |
(743,732 | ) | 45.1 | (613,183 | ) | 21.1 | (229,775 | ) | (35,071 | ) | 25.2 | |||||||||||||||||
Research and development expenses |
(236,446 | ) | 14.4 | (171,137 | ) | 5.9 | (103,474 | ) | (15,793 | ) | 11.4 | |||||||||||||||||
General and administrative expenses |
(168,379 | ) | 10.2 | (128,152 | ) | 4.4 | (103,038 | ) | (15,727 | ) | 11.3 | |||||||||||||||||
Amortization of intangible assets |
(194,874 | ) | 11.8 | (331,294 | ) | 11.4 | (341,802 | ) | (52,169 | ) | 37.5 | |||||||||||||||||
Goodwill impairment |
— | — | (1,382,149 | ) | 47.5 | — | — | — | ||||||||||||||||||||
Other income, net |
8,761 | (0.5 | ) | 11,472 | (0.4 | ) | 49,885 | 7,614 | (5.5 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total costs and expenses |
(1,648,458 |
) |
100.0 |
(2,908,200 |
) |
100.0 |
(911,316 |
) |
(139,094 |
) |
100.0 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended March 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Commission revenues |
507,728 | 47.3 | 438,274 | 52.5 | 318,602 | 48,628 | 66.0 | |||||||||||||||||||||
Marketing services revenues |
395,747 | 36.8 | 243,081 | 29.1 | 71,345 | 10,889 | 14.8 | |||||||||||||||||||||
Financing solutions revenues |
49,076 | 4.6 | 53,989 | 6.5 | 49,285 | 7,522 | 10.2 | |||||||||||||||||||||
Other revenues |
121,727 | 11.3 | 99,970 | 11.9 | 43,160 | 6,588 | 9.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
1,074,278 |
100.0 |
835,314 |
100.0 |
482,392 |
73,627 |
100.0 |
|||||||||||||||||||||
Cost of revenues (exclusive of amortization of intangible assets shown separately below) (1) |
(313,788 | ) | (29.2 | ) | (293,757 | ) | (35.2 | ) | (183,112 | ) | (27,948 | ) | (38.0 | ) | ||||||||||||||
Sales and marketing expenses (1) |
(743,732 | ) | (69.2 | ) | (613,183 | ) | (73.4 | ) | (229,775 | ) | (35,071 | ) | (47.6 | ) | ||||||||||||||
Research and development expenses (1) |
(236,446 | ) | (22.0 | ) | (171,137 | ) | (20.5 | ) | (103,474 | ) | (15,793 | ) | (21.5 | ) | ||||||||||||||
General and administrative expenses (1) |
(168,379 | ) | (15.7 | ) | (128,152 | ) | (15.3 | ) | (103,038 | ) | (15,727 | ) | (21.4 | ) | ||||||||||||||
Amortization of intangible assets |
(194,874 | ) | (18.1 | ) | (331,294 | ) | (39.7 | ) | (341,802 | ) | (52,169 | ) | (70.9 | ) | ||||||||||||||
Goodwill impairment |
— | — | (1,382,149 | ) | (165.5 | ) | — | — | — | |||||||||||||||||||
Other income, net |
8,761 | 0.8 | 11,472 | 1.4 | 49,885 | 7,614 | 10.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loss from operations |
(574,180 |
) |
(53.4 |
) |
(2,072,886 |
) |
(248.2 |
) |
(428,924 |
) |
(65,467 |
) |
(88.9 |
) | ||||||||||||||
Interest income |
33,700 | 3.1 | 29,312 | 3.5 | 19,601 | 2,992 | 4.1 | |||||||||||||||||||||
Gain/(loss) from investments, net |
31,236 | 2.9 | (66,550 | ) | (8.0 | ) | 86,497 | 13,202 | 17.9 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loss before income tax and share of results of equity investee |
(509,244 |
) |
(47.4 |
) |
(2,110,124 |
) |
(252.7 |
) |
(322,826 |
) |
(49,273 |
) |
(66.9 |
) | ||||||||||||||
Income tax benefits/(expenses) |
17,217 | 1.6 | 590 | 0.1 | (5,181 | ) | (791 | ) | (1.1 | ) | ||||||||||||||||||
Share of results of equity investee |
5,752 | 0.5 | (114,104 | ) | (13.7 | ) | 36 | 5 | 0.0 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss |
(486,275 |
) |
(45.3 |
) |
(2,223,638 |
) |
(266.3 |
) |
(327,971 |
) |
(50,059 |
) |
(68.0 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Share-based compensation expenses were allocated as follows: |
For the Year Ended March 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Cost of revenues |
(13,916 | ) | 2,747 | (2,464 | ) | (376 | ) | |||||||||
Sales and marketing expenses |
(9,558 | ) | (7,927 | ) | (5,416 | ) | (827 | ) | ||||||||
Research and development expenses |
(15,161 | ) | (9,265 | ) | (3,940 | ) | (601 | ) | ||||||||
General and administrative expenses |
(64,433 | ) | (17,740 | ) | (14,475 | ) | (2,209 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(103,068 |
) |
(32,185 |
) |
(26,295 |
) |
(4,013 |
) | ||||||||
|
|
|
|
|
|
|
|
Revenues (1) |
Total Assets (1) |
|||||||||||||||
For the Year Ended March 31, |
As of March 31, 2021 |
|||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
MOGU Inc. and its wholly-owned subsidiaries |
88.7 | % | 88.6 | % | 82.4 | % | 64.8 | % | ||||||||
Consolidated variable interest entities |
11.3 | % | 11.4 | % | 17.6 | % | 35.2 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% | ||||||||
|
|
|
|
|
|
|
|
(1) | The percentages exclude the inter-company transactions and balances between MOGU Inc. and its wholly-owned subsidiaries and the consolidated variable interest entities. |
For the years ended March 31, | ||||||
2019 |
2020 |
2021 | ||||
Lack of marketability discount |
30% | 30% | 30% | |||
Risk-free rate |
2.25%-2.60% |
0.3%~2.29% | 0.5% | |||
Expected volatility |
45%-52.68% |
42%~54% | 45% | |||
Revenue multiple |
2.80-18.74 |
5.09~11.18 | 7.92 | |||
Net profit multiple |
21.23 | 8.95 | 16 |
Unobservable Inputs |
||||
Revenue growth rate |
8%~327 | % | ||
Weighted average cost of capital |
30 | % | ||
Lack of marketability discount |
30 | % | ||
EBIT margin rate |
17%~29 | % |
For the Year Ended March 31, | ||
2020 | ||
Expected term |
10 years | |
Expected volatility |
39.93% | |
Exercise multiple |
2.2 | |
Expected dividend yield |
— | |
Risk-free interest rate |
1.67% | |
Expected forfeiture rate (post vesting) |
3% for staff 0% for management | |
Fair value of the underlying shares on the date of option grants (US$) |
0.10 | |
Fair value of share option (US$) |
0.09 |
B. |
Liquidity and Capital Resources |
For the Year Ended March 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Summary Consolidated Cash Flow Data: |
||||||||||||||||
Net cash used in operating activities |
(325,808 | ) | (311,789 | ) | (77,931 | ) | (11,895 | ) | ||||||||
Net cash used in investing activities |
(82,836 | ) | (113,150 | ) | (96,663 | ) | (14,754 | ) | ||||||||
Net cash provided by/(used in) financing activities |
414,872 | (29,332 | ) | (119,249 | ) | (18,201 | ) | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
46,091 | 33,929 | (20,647 | ) | (3,151 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (decrease)/increase in cash and cash equivalents and restricted cash |
52,319 | (420,342 | ) | (314,490 | ) | (48,001 | ) | |||||||||
Cash and cash equivalents and restricted cash at beginning of year |
1,225,397 | 1,277,716 | 857,374 | 130,861 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents and restricted cash at end of year |
1,277,716 | 857,374 | 542,884 | 82,860 | ||||||||||||
|
|
|
|
|
|
|
|
C. |
Research and Development |
D. |
Trend Information |
E. |
Off-Balance Sheet Arrangements |
F. |
Tabular Disclosure of Contractual Obligations |
For the Year Ended March 31, |
||||||||||||||||||||
(in RMB thousands) | ||||||||||||||||||||
Total |
2022 |
2023 |
2024 |
2025 |
||||||||||||||||
Operating lease obligations (1) |
37,129 | 14,166 | 12,451 | 7,636 | 2,876 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Asset purchase remaining obligations (2) |
62,700 | 52,250 | — | 10,450 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
99,829 |
66,416 |
12,451 |
18,086 |
2,876 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Operating lease obligations consist of the obligations under the lease agreements covering various facilities. |
(2) | Asset purchase remaining obligations arising from our remaining installment payments for purchase of the office building located at the Hangzhou Zijingang Technology Zone in August 2020. |
G. |
Safe Harbor |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Directors and Senior Management |
Directors and Executive Officers |
Age |
Position/Title | ||
Qi Chen |
39 | Co-founder, Chairman of the Board of Directors and Chief Executive Officer | ||
Xuqiang Yue |
39 | Co-founder, Director and Chief Operating Officer | ||
Yibo Wei |
39 | Co-founder and Director | ||
Andrew Hong Teoh |
44 | Independent Director | ||
Shengwen Rong |
52 | Independent Director | ||
Qi Feng |
40 | Financial Controller |
B. |
Compensation |
Name |
Ordinary Shares Underlying Options and Restricted Share Units |
Average Exercise Price of Options (US$/Share) |
Date of Grant |
Date of Expiration |
||||||||
Andrew Hong Teoh |
* | 0.30 | May 1, 2016 | April 30, 2026 | ||||||||
Qi Feng |
* | 0.14 | |
Various dates from April 1, 2014 to January 1, 2019 |
|
|
Various dates from March 31, 2024 to December 31, 2028 |
| ||||
Total |
* | * | |
Various dates from April 1, 2014 to January 1, 2019 |
|
|
Various dates from March 31, 2024 to December 31, 2028 |
|
* | Aggregate number of shares represented by all grants of options and restricted share units to the person accounted for less than 1% of our total outstanding ordinary shares on an as-converted basis as of May 31, 2021. |
C. |
Board Practices |
• | appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; |
• | reviewing with the independent auditors any audit problems or difficulties and management’s response; |
• | discussing the annual audited financial statements with management and the independent auditors; |
• | reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; |
• | reviewing and approving all proposed related party transactions; |
• | meeting separately and periodically with management and the independent auditors; and |
• | monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. |
• | reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; |
• | reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; |
• | reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and |
• | selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
• | convening shareholders’ annual and extraordinary general meetings and reporting its work to shareholders at such meetings; |
• | declaring dividends and distributions; |
• | appointing officers and determining the term of office of the officers; |
• | exercising the borrowing powers of our company and mortgaging the property of our company; and |
• | approving the transfer of shares in our company, including the registration of such shares in our share register. |
D. |
Employees |
Operations |
Number of Employees |
|||
Platform operation |
297 | |||
Sales and marketing |
53 | |||
Technology |
196 | |||
Administration and management |
59 | |||
Total |
605 |
|||
|
|
E. |
Share Ownership |
• | each of our directors and executive officers; and |
• | each of our principal shareholders who beneficially own more than 5% of our total outstanding shares. |
Ordinary Shares Beneficially Owned |
||||||||||||||||||||
Class A Ordinary Shares |
Class B Ordinary Shares |
Total ordinary shares |
% of Total ordinary Shares |
% of Aggregate voting Power *** |
||||||||||||||||
Directors and Executive Officers**: |
||||||||||||||||||||
Qi Chen (1) |
— | 303,234,004 | 303,234,004 | 12.1 | % | 80.5 | % | |||||||||||||
Xuqiang Yue (2) |
79,914,375 | — | 79,914,375 | 3.2 | % | * | ||||||||||||||
Yibo Wei (3) |
107,643,285 | — | 107,643,285 | 4.3 | % | * | ||||||||||||||
Andrew Hong Teoh (4) |
* | — | * | * | * | |||||||||||||||
Shengwen Rong |
— | — | — | — | — | |||||||||||||||
Qi Feng |
* | — | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group |
189,455,810 | 303,234,004 | 492,689,814 | 19.7 | % | 82.2 | % | |||||||||||||
Principal Shareholders: |
||||||||||||||||||||
Entities affiliated with Tencent (5) |
460,141,266 | — | 460,141,266 | 18.4 | % | 4.1 | % | |||||||||||||
Entities affiliated with Qi Chen (6) |
— | 303,234,004 | 303,234,004 | 12.1 | % | 80.5 | % | |||||||||||||
Entities affiliated with Hillhouse (7) |
261,174,255 | — | 261,174,255 | 10.4 | % | 2.3 | % | |||||||||||||
Trustbridge Partners IV, L.P. (8) |
208,698,484 | — | 208,698,484 | 8.3 | % | 1.8 | % | |||||||||||||
Bertelsmann China Holding GmbH (9) |
200,662,100 | — | 200,662,100 | 8.0 | % | 1.8 | % | |||||||||||||
Entities affiliated with Qiming (10) |
159,665,557 | — | 159,665,557 | 6.4 | % | 1.4 | % |
* | Less than 1% of our total outstanding ordinary shares or aggregate voting power on an as-converted basis. |
** | Except as indicated otherwise below, the business address of our directors and executive officers is Huanglong Wanke Center, 23/F, Building No. G, No. 77 Xueyuan Road, Xihu District, Hangzhou, 310012, People’s Republic of China. |
*** | For each person or group included in this column, percentage of total voting power represents voting power based on both Class A and Class B ordinary shares held by such person or group with respect to all outstanding shares of our Class A and Class B ordinary shares as a single class. Each holder of our Class A ordinary shares is entitled to one vote per share. Each holder of our Class B ordinary shares is entitled to 30 votes per share. Our Class B ordinary shares are convertible at any time by the holder into Class A ordinary shares on a one-for-one |
(1) | Represents 220,151,966 Class B ordinary shares held by Elevenhalf MG International Limited, a BVI business company, and 83,082,038 Class B ordinary shares held by Elevenhalf MG Holding Limited, a BVI business company. Elevenhalf MG International Limited and Elevenhalf MG Holding Limited are ultimately owned by SharkBay Captain Trust. Mr. Chen is the settlor of the trust, and Mr. Chen and others designated by Mr. Chen are its beneficiaries. Under the terms of the trust, Mr. Chen has the power to direct the retention or disposal of, and the exercise of any voting and other rights attached to the shares held by Elevenhalf MG International Limited and Elevenhalf MG Holding Limited in our company. The registered address of each of Elevenhalf MG International Limited and Elevenhalf MG Holding Limited is OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands. |
(2) | Represents 79,914,375 Class A ordinary shares held by Plus Performance MG Limited, a BVI company. Plus Performance MG Limited is ultimately held by Plus Performance Trust. Mr. Yue is the settlor of Plus Performance Trust, and Mr. Yue and his family members are its beneficiaries. Under the terms of this trust, Mr. Yue has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to the shares held by Plus Performance MG Limited in our company. The registered address of Plus Performance MG Limited is OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands. |
(3) | Represents 107,643,285 Class A ordinary shares held by Exceed Intelligence Limited, a BVI company. Exceed Intelligence Limited is ultimately held by Exceed Intelligence Trust. Mr. Wei is the settlor of Exceed Intelligence Trust, and Mr. Wei and his family members are its beneficiaries. Under the terms of this trust, Mr. Wei has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to the shares held by Exceed Intelligence Limited in our company. The registered address of Exceed Intelligence Limited is OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands. |
(4) | Represents the Class A ordinary shares represented by ADSs Mr. Teoh held as of May 31, 2021. The business address of Mr. Teoh is 24/F, Car Po Commercial Building, 18-20 Lyndhurst Terrace, Central, Hong Kong. |
(5) | Represents (i) 444,989,552 Class A ordinary shares held by Image Future Investment (HK) Limited, a Hong Kong limited liability company, and (ii) 15,151,714 Class A ordinary shares held by Tencent Growth Holdings Limited, a Hong Kong limited liability company. Tencent Holdings Limited, a company listed on the Hong Kong Stock Exchange, is the ultimate beneficial owner of both Image Future Investment (HK) Limited and Tencent Growth Holdings Limited. The registered address of each of Image Future Investment (HK) Limited and Tencent Growth Holdings Limited is 29/F, Three Pacific Place, No. 1 Queen’s Road East, Wanchai, Hong Kong. |
(6) | Represents (i) 220,151,966 Class B ordinary shares held by Elevenhalf MG International Limited, a BVI business company, and (ii) 83,082,038 Class B ordinary shares held by Elevenhalf MG Holding Limited, a BVI business company. Elevenhalf MG International Limited and Elevenhalf MG Holding Limited are ultimately owned by SharkBay Captain Trust. Mr. Chen is the settlor of SharkBay Captain Trust, and Mr. Chen and others designated by Mr. Chen are its beneficiaries. Under the terms of the trust, Mr. Chen has the power to direct the retention or disposal of, and the exercise of any voting and other rights attached to the shares held by Elevenhalf MG International Limited and Elevenhalf MG Holding Limited in our company. The registered address of Elevenhalf MG International Limited and Elevenhalf MG Holding Limited is OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.. |
(7) | Represents (i) 163,016,634 Class A ordinary shares held by Hillhouse MGJ Holdings Limited, a BVI business company, and (ii) 98,157,621 ordinary shares held by Hillhouse MLS Holdings Limited, a BVI business company. Each of Hillhouse MGJ Holdings Limited and Hillhouse MLS Holdings Limited is owned by Hillhouse Fund II, L.P., Gaoling Fund, L.P. and YHG Investment, L.P. Hillhouse Capital Management, Ltd. acts as the sole management company of Hillhouse Fund II, L.P. and Gaoling Fund, L.P., and the sole general partner of YHG Investment, L.P. The registered address of each of Hillhouse MGJ Holdings Limited and Hillhouse MLS Holdings Limited is Citco B.V.I. Limited of Flemming House, Wickhams Cay, P.O. Box 662, Road Town, Tortola, British Virgin Islands. |
(8) | Represents 208,698,484 Class A ordinary shares held by Trustbridge Partners IV, L.P., a Cayman Islands limited partnership. Trustbridge Partners IV, L.P. is managed by an investment committee consisting of Messrs. Shujun Li, Feng Ge, David Ning Lin, Hongyan Guan and Xiaodong Liang, which by majority vote has the power to make investment or divestment decisions for Trustbridge Partners IV, L.P. The registered address of Trustbridge Partners IV, L.P. is c/o Intertrust Corporate Services (Cayman) Limited, 190 Elgin Avenue, George Town, Grand Cayman KY1-9005, Cayman Islands. The business address of each of Messrs. Shujun Li, Feng Ge, David Ning Lin, Hongyan Guan and Xiaodong Liang is 2001, Agricultural Bank of China Tower, 50 Connaught Road Central, Central, Hong Kong. |
(9) | Represents 200,662,100 Class A ordinary shares held by Bertelsmann China Holding GmbH, a German company with limited liability, as reported in a as reported in a Schedule 13G amendment jointly filed by Bertelsmann SE & Co. KGaA and Bertelsmann China Holding GmbH on February 8, 2021. Bertelsmann China Holding GmbH is a wholly-owned subsidiary of Bertelsmann SE & Co. KGaA. The business address of Bertelsmann China Holding GmbH is Carl-Bertelsmann-Strasse 270, 33311 Gütersloh, Germany. |
(10) | Represents (i) 4,878,678 Class A ordinary shares held by Qiming Managing Directors Fund III, L.P., a Cayman Islands exempted limited partnership, and (ii) 154,786,879 Class A ordinary shares (in the form of ADSs and 4 Class A ordinary shares) held by Qiming Venture Partners III, L.P., a Cayman Islands exempted limited partnership, as reported in a Schedule 13G amendment jointly filed by Qiming Corporate GP III, Ltd., Qiming Managing Directors Fund III, L.P., Qiming GP III, L.P., and Qiming Venture Partners III, L.P. on February 10, 2021. The general partner of Qiming Venture Partners III, L.P. is Qiming GP III, L.P., whose general partner is Qiming Corporate GP III, Ltd., a Cayman Islands exempted company. Qiming Corporate GP III, Ltd. is also the general partner of Qiming Managing Directors Fund III, L.P. The voting and investment power of the shares held by Qiming Managing Directors Fund III, L.P. and Qiming Venture Partners III, L.P. in our company are exercised by the board of directors of Qiming Corporate GP III, Ltd., which consists of Messrs. Duane Kuang, Gary Rieschel, JP Gan and Nisa Leung. The registered address of each of Qiming Managing Directors Fund III, L.P. and Qiming Venture Partners III, L.P. is PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Major Shareholders |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
ITEM 8. |
FINANCIAL INFORMATION |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
ITEM 9. |
THE OFFER AND LISTING |
A. |
Significant Changes |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
• | the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; |
• | the instrument of transfer is in respect of only one class of ordinary shares; |
• | the instrument of transfer is properly stamped, if required; |
• | in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and |
• | a fee of such maximum sum as the New York Stock Exchange may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof. |
• | the designation of the series; |
• | the number of shares of the series; |
• | the dividend rights, dividend rates, conversion rights, voting rights; and |
• | the rights and terms of redemption and liquidation preferences. |
• | authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and |
• | limit the ability of shareholders to requisition and convene general meetings of shareholders. |
• | does not have to file an annual return of its shareholders with the Registrar of Companies; |
• | is not required to open its register of members for inspection; |
• | does not have to hold an annual general meeting; |
• | may issue negotiable or bearer shares or shares with no par value; |
• | may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance); |
• | may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | may register as a limited duration company; and |
• | may register as a segregated portfolio company. |
• | the names and addresses of our members, together with a statement of the shares held by each member, and such statement shall confirm (i) the amount paid or agreed to be considered as paid, on the shares of each member, (ii) the number and category of shares held by each member, and (iii) whether each relevant category of shares held by a member carries voting rights under the articles of association of the company, and if so, whether such voting rights are conditional; |
• | the date on which the name of any person was entered on the register as a member; and |
• | the date on which any person ceased to be a member. |
• | the statutory provisions as to the required majority vote have been met; |
• | the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class; |
• | the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and |
• | the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act. |
• | a company acts or proposes to act illegally or ultra vires (and is therefore incapable of ratification by the shareholders); |
• | the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and |
• | those who control the company are perpetrating a “fraud on the minority.” |
C. |
Material Contracts |
D. |
Exchange Controls |
E. |
Taxation |
• | banks and other financial institutions; |
• | insurance companies; |
• | pension plans; |
• | cooperatives; |
• | regulated investment companies; |
• | real estate investment trusts; |
• | broker-dealers; |
• | traders that elect to use a mark-to-market |
• | certain former U.S. citizens or long-term residents; |
• | tax-exempt entities (including private foundations); |
• | persons liable for alternative minimum tax; |
• | holders who acquire their ADSs or ordinary shares pursuant to any employee share option or otherwise as compensation; |
• | investors that will hold their ADSs or ordinary shares as part of a straddle, hedge, conversion, constructive sale or other integrated transaction for U.S. federal income tax purposes; |
• | persons holding their ADSs or ordinary shares in connection with a trade or business outside the United States; |
• | investors that have a functional currency other than the U.S. dollar; |
• | persons that actually or constructively own 10% or more of our stock (by vote or value); |
• | persons required to accelerate the recognition of any item of gross income with respect to their ADSs or ordinary shares as a result of such income being recognized on an applicable financial statement; or |
• | partnerships or other entities taxable as partnerships for U.S. federal income tax purposes, or persons holding common stock through such entities, |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created in, or organized under the law of the United States or any state thereof or the District of Columbia; |
• | an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or |
• | a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a U.S. person under the Code. |
• | the excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or ordinary shares; |
• | the amount allocated to the current taxable year and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in which we are a PFIC (each, a “pre-PFIC year”), will be taxable as ordinary income; and |
• | the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that year, increased by an additional tax equal to the interest on the resulting tax deemed deferred with respect to each such taxable year. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Persons depositing or withdrawing Class A ordinary shares or ADS holders must pay: |
For: | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | • Issuance of ADSs, including issuances resulting from a distribution of Class A ordinary shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | ||
$0.05 (or less) per ADS | • Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been Class A ordinary shares and the Class A ordinary shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
$0.05 (or less) per ADS per calendar year | • Depositary services | |
Registration or transfer fees | • Transfer and registration of Class A ordinary shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw Class A ordinary shares | |
Expenses of the depositary | • Cable and facsimile transmissions (when expressly provided in the deposit agreement) | |
• Converting foreign currency to U.S. dollars | ||
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or Class A ordinary shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | • As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities |
• As necessary |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the Year Ended March 31, |
||||||||||||||||
2020 |
2021 |
|||||||||||||||
(in thousands) |
||||||||||||||||
Audit fees (1) |
RMB | 6,600 | RMB | 6,400 | ||||||||||||
Tax fees (2) |
RMB | 186 | RMB | 328 | ||||||||||||
Other fees (3) |
RMB | 393 | RMB | 60 |
(1) | “Audit fees” means the aggregate fees billed for professional services rendered by our principal external auditors for the audit of our annual financial statements and the quarterly reviews of our condensed consolidated financial information. |
(2) | “Tax fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal external auditors for tax compliance, tax advice, and tax planning. |
(3) | “Other fees” means the aggregate fees billed for professional services rendered by our principal external auditors associated with other advisory services. |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Period |
Total Number of Class A Ordinary Shares Purchased |
Average Price Paid Per Class A Ordinary Share |
Total Number of Class A Ordinary Shares Purchased as Part of the Publicly Announced Plans |
Approximate Dollar Value of Class A Ordinary Shares that May Yet Be Purchased Under the Plans |
||||||||||||
April 1 – April 30, 2020 |
— | — | — | US$ | 14,048,742 | |||||||||||
May 1 – May 31, 2020 |
— | — | — | US$ | 10,000,000 | |||||||||||
June 1 – June 30, 2020 |
11,533,175 | US$0.07 | 11,533,175 | US$ | 9,200,733 | |||||||||||
July 1 – July 31, 2020 |
152,500 | US$0.08 | 152,500 | US$ | 9,188,615 | |||||||||||
August 1 - August 31, 2020 |
— | — | — | US$ | 9,188,615 | |||||||||||
September 1 - September 30, 2020 |
164,837,075 | US$0.09 | 164,837,075 | US$ | 5,120,945 | |||||||||||
October 1 – October 31, 2020 |
391,475 | US$0.09 | 391,475 | US$ | 5,084,163 | |||||||||||
November 1 – November 30, 2020 |
528,475 | US$0.09 | 528,475 | US$ | 5,035,074 | |||||||||||
December 1 – December 31, 2020 |
11,539,275 | US$0.09 | 11,539,275 | US$ | 3,966,926 | |||||||||||
January 1 – January 31, 2021 |
2,827,175 | US$0.08 | 2,827,175 | US$ | 3,727,037 | |||||||||||
February 1 – February 28, 2021 |
208,750 | US$0.09 | 208,750 | US$ | 3,709,085 | |||||||||||
March 1 – March 31, 2021 |
14,498,075 | US$0.08 | 14,498,075 | US$ | 2,559,318 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
206,515,975 |
US$0.08 |
206,515,975 |
US$ | 2,559,318 |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
ITEM 16H. |
MINE SAFETY DISCLOSURE |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
* | Filed herewith |
** | Furnished herewith |
MOGU Inc. | ||||
By: | /s/ Qi Chen | |||
Name: | Qi Chen | |||
Title: | Chief Executive Officer |
Page |
||||
F-2 |
||||
F-3 |
||||
F-5 |
||||
F-6 |
||||
F-8 |
||||
F-9 |
As of March 31, |
||||||||||||||
Note |
2020 |
2021 |
||||||||||||
RMB |
RMB |
US$ Note 2(f) |
||||||||||||
ASSETS |
||||||||||||||
Current assets: |
||||||||||||||
Cash and cash equivalents |
||||||||||||||
Restricted cash |
||||||||||||||
Short-term investment s |
7 | |||||||||||||
Inventories, net |
||||||||||||||
Loan receivables, net |
8 | |||||||||||||
Prepayments and other current assets |
9 | |||||||||||||
Amounts due from related parties |
19 | |||||||||||||
Total current assets |
||||||||||||||
Non-current assets: |
||||||||||||||
Property, equipment and software, net |
11 | |||||||||||||
Intangible assets, net |
12 | |||||||||||||
Goodwill |
13 | |||||||||||||
Investments |
10 | |||||||||||||
Other non-current assets |
9 | |||||||||||||
Total non-current assets |
||||||||||||||
Total assets |
||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||
Current liabilities |
||||||||||||||
Accounts payable (including accounts payable of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
||||||||||||||
Salaries and welfare payable (including salaries and welfare payable of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
||||||||||||||
Advances from customers (including advances from customers of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
||||||||||||||
Taxes payable (including taxes payable of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
||||||||||||||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
19 | |||||||||||||
Accruals and other current liabilities (including accruals and other current liabilities of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiaries of RMB |
14 | |||||||||||||
Total current liabilities |
||||||||||||||
Non-current liabilities: |
||||||||||||||
Deferred tax liabilities |
15 | |||||||||||||
Other non-current liabilities |
14 | |||||||||||||
Total non-current liabilities |
||||||||||||||
Total liabilities |
||||||||||||||
As of March 31, |
||||||||||||||||
Note |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
US$ Note 2(f) |
||||||||||||||
Commitments and contingencies (Note 22) |
||||||||||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||||||
Class A ordinary shares (US$ |
16 | |||||||||||||||
Class B ordinary shares (US$ |
16 | |||||||||||||||
Treasury stock (US$ |
2(aa), 16 | ( |
) | ( |
) | ( |
) | |||||||||
Additional paid-in capital |
||||||||||||||||
Statutory reserves |
||||||||||||||||
Accumulated other comprehensive income |
||||||||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||||||
Total shareholders’ equity |
||||||||||||||||
Total liabilities and shareholders’ equity |
||||||||||||||||
For the year ended March 31, |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(f) |
|||||||||||||||||
Revenues |
||||||||||||||||||||
Commission revenues |
||||||||||||||||||||
Marketing services revenues |
||||||||||||||||||||
Financing solutions revenues |
||||||||||||||||||||
Other revenues |
5 | |||||||||||||||||||
Total revenues |
||||||||||||||||||||
Cost of revenues (exclusive of amortization of intangible assets shown separately below, including transactions with related parties of RMB |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Amortization of intangible assets |
12 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Goodwill impairment |
13 | — | ( |
) | — | — | ||||||||||||||
Other income, net |
6 | |||||||||||||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Interest income |
||||||||||||||||||||
Gain/(Loss) from investments, net |
10 | ( |
) | |||||||||||||||||
Loss before income tax and share of results of equity investee |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Income tax benefits/(expenses) |
15 | ( |
) | ( |
) | |||||||||||||||
Share of results of equity method investees |
10 | ( |
) | |||||||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net loss attributable to MOGU Inc. |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Accretion on convertible redeemable preferred shares to redemption value |
17 | ( |
) | — | — | — | ||||||||||||||
Deemed dividends to preferred shareholders |
17 | ( |
) | — | — | — | ||||||||||||||
Net loss attributable to MOGU Inc.’s ordinary shareholders |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Other comprehensive income/(loss): |
||||||||||||||||||||
Foreign currency translation adjustments, net of |
2 | (e) | ( |
) | ( |
) | ||||||||||||||
Share of other comprehensive income/(loss) of equity method investees |
( |
) | — | — | ||||||||||||||||
Unrealized securities holding gains/(losses), net of tax |
( |
) | ( |
) | ||||||||||||||||
Total comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Total comprehensive loss attributable to MOGU Inc. |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net loss attributable to MOGU Inc.’s ordinary shareholders |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net loss per share attributable to ordinary shareholders |
||||||||||||||||||||
Basic |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Diluted |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Weighted average number of shares used in computing net loss per share |
||||||||||||||||||||
Basic |
||||||||||||||||||||
Diluted |
||||||||||||||||||||
Share-based compensation expenses included in: |
||||||||||||||||||||
Cost of revenues |
( |
) | ( |
) | ( |
) | ||||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) |
Class A ordinary shares ($0.00001 par value) |
Class B ordinary shares ($0.00001 par value) |
Class C ordinary shares ($0.00001 par value) |
Additional paid-in |
Statutory |
Accumulated |
Accumulated other comprehensive |
Total shareholders’ |
|||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
capital |
reserves |
deficit |
income/(loss) |
(deficit)/ equity |
||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||||||||
Balances at April 1, 2018 |
— |
— |
— |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Accretion of convertible redeemable preferred shares to redemption value |
— | — | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Share of other comprehensive income of equity method investee |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Unrealized securities holding gains, net of tax |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Appropriations to statutory reserves |
— | — | — | — | — | — | — | ( |
) | — | — | |||||||||||||||||||||||||||||||||
Conversion and redesignation of mezzanine equity |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance cost |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Deemed dividend to holders of mezzanine equity |
— | — | — | — | — | — | — | ( |
) | — | — | |||||||||||||||||||||||||||||||||
Issuance of ordinary shares pursuant to share incentive plan |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Redesignation of Class C ordinary shares |
— | — | ( |
) | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Others |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balances at March 31, 2019 |
303,234,004 |
— |
— |
( |
) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares ($0.00001 par value) |
Class B ordinary shares ($0.00001 par value) |
Treasury Stock ($0.00001 par value) |
Additional paid-in |
Statutory |
Accumulated |
Accumulated other comprehensive |
Total shareholders’ |
|||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
capital |
reserves |
deficit |
income/(loss) |
equity |
||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 |
— |
— |
( |
) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) | — |
( |
) | |||||||||||||||||||||||||||||||
Share-based compensation |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||
Share of other comprehensive income of equity method investee |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Unrealized securities holding gains, net of tax |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||
Appropriations to statutory reserves |
— |
— |
— |
— |
— |
— |
— |
( |
) | — |
— |
|||||||||||||||||||||||||||||||||
Repurchase of ordinary shares (Note 16) |
( |
) | — |
— |
— |
( |
) | — |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||||||
Exercise of option and RSUs (Note 18) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||
Others |
— |
— |
— |
— |
— |
— |
( |
) | — |
— |
— |
( |
) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balances at March 31, 2020 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Unrealized securities holding gains, net of tax |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Appropriations to statutory reserves |
— | — | — | — | — | — | — | ( |
) | — | — | |||||||||||||||||||||||||||||||||
Repurchase of ordinary shares (Note 16) |
( |
) | — | — | — | ( |
) | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Exercise of option and RSUs (Note 18) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balances at March 31, 2021 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended March 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(f) |
|||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Allowance for loan receivables and prepayments and other current assets |
||||||||||||||||
Gains on disposal of property and equipment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Goodwill impairment |
— | — | — | |||||||||||||
Share-based compensation expenses |
||||||||||||||||
Deferred income tax benefit |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
(Gain)/Loss from investments, net |
( |
) | ( |
) | ( |
) | ||||||||||
Share of results of equity investee |
( |
) | ( |
) | ( |
) | ||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Prepayments and other current assets |
||||||||||||||||
Loan receivables—service fee |
( |
) | ||||||||||||||
Inventories, net |
( |
) | ||||||||||||||
Amounts due from related parties |
( |
) | ( |
) | ||||||||||||
Other non-current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Accounts payable |
( |
) | ||||||||||||||
Salary and welfare payable |
( |
) | ( |
) | ( |
) | ||||||||||
Taxes payable |
( |
) | ( |
) | ( |
) | ||||||||||
Advances from customers |
( |
) | ( |
) | ( |
) | ||||||||||
Amounts due to related parties |
( |
) | ( |
) | ( |
) | ||||||||||
Accruals and other current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net cash used in operating activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Cash flows from investing activities: |
||||||||||||||||
Purchase of property, equipment and software |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchase of intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposal of property and equipment |
||||||||||||||||
Disposal of long-term investment |
— | |||||||||||||||
Purchase of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from sale of short term investments |
||||||||||||||||
Cash paid for long-term investments |
— | ( |
) | ( |
) | ( |
) | |||||||||
Cash paid for loan originations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash received from loan repayments |
||||||||||||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs |
— | — | — | |||||||||||||
Cash payment of remaining issuance cost for IPO |
— | ( |
) | — | — | |||||||||||
Proceeds from deemed exercise of share options, net |
— | — | — | |||||||||||||
Return of the proceeds withdrawn by employees for deemed exercise of share options |
— | ( |
) | — | — | |||||||||||
Proceeds from exercise of share options |
— | |||||||||||||||
Cash payment for repurchase of ordinary shares (Note 16) |
— | ( |
) | ( |
) | ( |
) | |||||||||
Cash paid for loan to shareholder |
( |
) | — | — | — | |||||||||||
Cash received for loan repayments due from a shareholder |
— | — | — | |||||||||||||
Cash paid for borrowing from shareholder |
( |
) | — | — | — | |||||||||||
Net cash provided by/(used in) financing activities |
( |
) |
( |
) |
( |
) | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
( |
) | ( |
) | ||||||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash |
( |
) | ( |
) | ( |
) | ||||||||||
Cash and cash equivalents and restricted cash at beginning of year |
||||||||||||||||
Cash and cash equivalents and restricted cash at end of year |
||||||||||||||||
Supplemental disclosures of cash flow information: |
||||||||||||||||
Cash paid for income taxes |
( |
) | ( |
) | ( |
) | ||||||||||
Supplemental disclosures of non-cash flow investing and financing activities: |
||||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value |
— | — | — | |||||||||||||
Deemed dividend to holders of mezzanine equity |
— | — | — |
(a) | Principle activities |
Equity interest held |
Place and date of incorporation |
|||||||
Subsidiaries: |
||||||||
Meili Group Limited |
% | |||||||
Hangzhou Shiqu |
% | |||||||
Meilishuo (Beijing) Network Technology Co., Ltd. |
% | |||||||
Place and date of incorporation |
||||||||
Consolidated VIEs: |
||||||||
Hangzhou Juangua |
||||||||
Beijing Meilishikong Network and Technology Co., Ltd. |
(b) | Consolidated variable interest entities |
(c) | Risks in relation to the VIE structure |
As of March 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
|||||||||||
Cash and cash equivalents |
||||||||||||
Restricted cash |
||||||||||||
Short-term investments |
||||||||||||
Inventories, net |
||||||||||||
Loan receivables, net |
||||||||||||
Prepayments and other current assets |
||||||||||||
Amounts due from non-VIE subsidiaries of the Company |
||||||||||||
Amounts due from related parties |
||||||||||||
Property, equipment and software, net |
||||||||||||
Intangible assets, net |
||||||||||||
Goodwill |
||||||||||||
Investments |
||||||||||||
Other non-current asset |
||||||||||||
Total assets |
||||||||||||
As of March 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
|||||||||||
Amounts due to non-VIE subsidiaries of the Company |
||||||||||||
Accounts payable |
||||||||||||
Salaries and welfare payable |
||||||||||||
Advances from customers |
||||||||||||
Taxes payable |
||||||||||||
Amounts due to related parties |
||||||||||||
Accruals and other current liabilities |
||||||||||||
Deferred tax liabilities |
||||||||||||
Total liabilities |
||||||||||||
Year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Total revenues |
||||||||||||
Cost of revenues |
( |
) | ( |
) | ( |
) | ||||||
Net profit/(loss) |
( |
) | ||||||||||
Year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net cash (used in)/provided by operating activities |
( |
) | ||||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
Net cash provided by financing activities |
— | |||||||||||
Net (decrease)/increase in cash and cash equivalents and restricted cash |
( |
) | ( |
) |
(a) | Basis of presentation and consolidation |
(b) | Principles of consolidation |
(c) | Business combination and non-controlling interests |
(d) | Use of estimates |
(e) | Foreign currency translation |
(f) | Convenience translation |
(g) | Fair value measurement |
• | Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. |
• | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. |
• | Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
(h) | Cash and cash equivalents |
(i) | Restricted cash |
(j) | Short-term investments |
(k) | Loan receivables, net |
(l) | Inventories, net |
(m) | Property, equipment and software, net |
Electronic equipment |
||
Furniture and office equipment |
||
Computer software |
||
Vehicles |
||
Leasehold improvements |
(n) | Intangible assets, net |
Domain name |
||
Trademarks |
||
Insurance agency license |
||
Broadcasting License |
||
Buyer and customer relationship |
||
Brand |
||
Technology |
||
Strategic business resources |
(o) | Goodwill |
(p) | Investments |
(q) | Impairment of long-lived assets |
(r) | Revenue recognition |
(s) | User incentives |
(t) | Cost of revenue |
(u) | Sales and marketing expenses |
(v) | Research and development expenses |
(w) | General and administrative expenses |
(x) | Government grants |
(y) | Operating leases |
(z) |
Share-based compensation |
(aa) | Treasury stock |
(bb) |
Employee benefits |
(cc) | Taxation |
(dd) | Statutory reserves |
(ee) | Comprehensive income/(loss) |
(ff) | Net income/(loss) per share |
(gg) | Segment reporting |
(hh) | Recent accounting pronouncements |
(a) | Concentration of credit risk |
(b) | Concentration of customers and suppliers |
(c) | Foreign currency exchange rate risk |
(d) | Certain risks and uncertainties |
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Technology services |
||||||||||||
Online direct sales |
||||||||||||
Others |
||||||||||||
Total |
||||||||||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Government grants |
||||||||||||
Merchant penalty income (1) |
— | — | ||||||||||
Refund from depositary bank (Note 14(3)) |
||||||||||||
Exchange (losses)/gains |
( |
) | ( |
) | ||||||||
Gains on disposal of property and equipment |
||||||||||||
Others |
( |
) | ||||||||||
Total |
||||||||||||
(1) | Merchant penalty income represents the penalties charged to the merchants that have quality and/or service issues based on the agreements with the merchants. The Company may use the penalty received from the merchants to settle the users’ complaints. The penalties are therefore recorded in other payables when received and recognized as other income when the Company considers the possibility of the penalty to be paid out is remote. |
Fair value measurement at reporting date using |
||||||||||||||||
Description |
Fair value as of March 31, 2020 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
— | |||||||||||||||
Available-for-sale |
— | |||||||||||||||
Total assets |
||||||||||||||||
Fair value measurement at reporting date using |
||||||||||||||||
Description |
Fair value as of March 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
||||||||||||||||
-wealth management products |
||||||||||||||||
- equity securities with readily determinable fair value |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Total assets |
||||||||||||||||
iSNOB |
Ruisha Technology |
Huzan |
Xuanwei |
Kuailaimai |
Others |
Total |
||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
||||||||||||||||||||||
Fair value of Level 3 investments as at March 31, 2019 |
||||||||||||||||||||||||||||
Addition |
||||||||||||||||||||||||||||
Impairment |
( |
) |
( |
) | ||||||||||||||||||||||||
Effect of currency translation adjustment |
||||||||||||||||||||||||||||
The change in fair value of the investments |
( |
) |
( |
) |
||||||||||||||||||||||||
Fair value of Level 3 investments as at March 31, 2020 |
||||||||||||||||||||||||||||
Addition |
||||||||||||||||||||||||||||
Disposal* |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Impairment |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Effect of currency translation adjustment |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
The change in fair value of the investments |
( |
) |
||||||||||||||||||||||||||
Fair value of Level 3 investments as at March 31, 2021 |
||||||||||||||||||||||||||||
* |
For the year ended March 31, 2021, the amount of disposal in the roll forward included a reclassification adjustment of RMB |
For the years ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Lack of marketability discount |
||||||||||||
Risk-free rate |
||||||||||||
Expected volatility |
||||||||||||
Revenue multiple |
||||||||||||
Net profit multiple |
For the years ended March 31, |
||||||||
2020 |
2021 |
|||||||
Unobservable Inputs |
||||||||
Revenue growth rate |
||||||||
Weighted average cost of capital |
||||||||
Lack of marketability discount |
||||||||
EBIT margin rate |
( |
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Loan receivables - principals |
||||||||
- service fee |
||||||||
Allowance for doubtful accounts |
( |
) | ( |
) | ||||
Loan receivables, net |
||||||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of year |
( |
) | ( |
) | ( |
) | ||||||
Additions |
( |
) | ( |
) | ( |
) | ||||||
Reversals |
||||||||||||
Balance at end of year |
( |
) | ( |
) | ( |
) | ||||||
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Prepayments and other current assets |
||||||||
Receivables from third-party payment service providers (1) |
||||||||
Receivables of technology service |
||||||||
Other prepaid expenses |
||||||||
VAT receivables |
||||||||
Deposits |
||||||||
Receivables of financing facilitation service |
||||||||
Prepaid promotion fees |
||||||||
Employee loans and advances |
||||||||
Interest receivable |
||||||||
Others |
||||||||
Less: Allowance for doubtful accounts |
( |
) | ( |
) | ||||
Total prepayments and other current assets |
||||||||
Other non-current assets |
||||||||
Prepayment for office building (2) |
— | |||||||
Long-term deposit |
||||||||
Prepayment for trademark |
||||||||
Total non-current assets |
||||||||
(1) | Receivables from third party payment service providers represent cash due from the Group’s third party on-line payment service providers in relation to their processing of payments to the Group. As of March 31, 2020 and 2021, |
(2) | On August 8, 2020, the Group entered into an agreement with a third-party company to purchase an office building located in Hangzhou, China for a total consideration of RMB |
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of year |
( |
) | ( |
) | ( |
) | ||||||
Additions |
( |
) | ( |
) | ||||||||
Balance at end of year |
( |
) | ( |
) | ( |
) | ||||||
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Available-for-sale |
||||||||
iSNOB Holdings Limited (“iSNOB”) |
||||||||
Hangzhou Ruisha Technology Co., Ltd. (“Ruisha Technology”) |
||||||||
Huzan Inc. (“Huzan”) |
||||||||
Xuanwei Limited (“Xuanwei”) |
||||||||
Shanghai Kuailaimai Information and Technology Co., Ltd. (“Kuailaimai”) |
||||||||
Others |
||||||||
Equity method investments |
||||||||
JM Weshop (Cayman) Inc. (“JM Weshop”) |
||||||||
Jiaxing Neixiangyoupan Equity investment Fund Partnership (limited partnership) (“Neixiangyoupan”) |
||||||||
Other s |
||||||||
Tota l |
||||||||
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Cost |
||||||||
Unrealized gains, including foreign exchange adjustment |
||||||||
Fair Valu e |
||||||||
RMB |
||||
Cash consideration collected |
||||
Less: Carrying value of investment as at November 20, 2018 |
( |
) | ||
Add: Realized gain in other comprehensive income |
||||
|
|
|||
Gain from investment disposal |
||||
|
|
As of March 31, |
||||
2020 |
||||
RMB |
||||
Investment cost |
||||
Foreign currency translation |
||||
Surrender 10% of ordinary shares held |
( |
) | ||
|
|
|||
Total investment cost |
||||
|
|
|||
Value booked under equity method |
||||
Share of cumulative loss |
( |
) | ||
Share of other comprehensive loss |
( |
) | ||
|
|
|||
Total booked value under equity method |
( |
) | ||
|
|
|||
Impairment |
( |
) | ||
|
|
|||
Net book value |
||||
|
|
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Electronic equipment |
||||||||
Furniture and office equipment |
||||||||
Leasehold improvements |
||||||||
Vehicles |
||||||||
Computer softwares |
||||||||
|
|
|
|
|||||
Subtotal |
||||||||
Less: Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Property, equipment and software, net |
||||||||
|
|
|
|
As of March 31, 2020 |
||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Accumulated Impairment Amount |
Net Carrying Amount |
|||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Domain name |
( |
) | — | |||||||||||||
Trademarks |
( |
) | — | |||||||||||||
Insurance agency license |
( |
) | — | |||||||||||||
Broadcasting License |
( |
) | — | |||||||||||||
Buyer and customer relationship |
( |
) | — | — | ||||||||||||
Brand |
( |
) | ( |
) | — | |||||||||||
Strategic business resources |
( |
) | — | |||||||||||||
Technology |
( |
) | ( |
) | — | |||||||||||
Total |
( |
) |
( |
) |
||||||||||||
As of March 31, 2021 |
||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Accumulated Impairment Amount |
Net Carrying Amount |
|||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Domain name |
( |
) | — | |||||||||||||
Trademarks |
( |
) | — | |||||||||||||
Insurance agency license |
( |
) | — | |||||||||||||
Broadcasting License |
( |
) | — | |||||||||||||
Buyer and customer relationship |
( |
) | — | — | ||||||||||||
Brand |
( |
) | ( |
) | — | |||||||||||
Strategic business resources |
( |
) | — | |||||||||||||
Technology |
( |
) | ( |
) | — | |||||||||||
Total |
( |
) |
( |
) |
||||||||||||
For the years ended March 31, |
RMB |
|||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
Cross-border business |
Domestic business |
Total |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance as of March 31, 2019 |
||||||||||||
Goodwill |
||||||||||||
Accumulated impairment loss |
( |
) | — | ( |
) | |||||||
— |
||||||||||||
Transaction during the years |
||||||||||||
Impairment recognized during the year ended March 31, 2020 (Note (a)) |
— | ( |
) | ( |
) | |||||||
Balance as of March 31, 2020 and 2021 |
||||||||||||
Goodwill |
||||||||||||
Accumulated impairment loss |
( |
) | ( |
) | ( |
) | ||||||
— |
||||||||||||
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Accrued liabilities and other current liabilities |
||||||||
Deposits from merchants (1) |
||||||||
Receipts under custody (2) |
||||||||
Accrued advertisement expenses |
||||||||
Payable for Broadcasting License acquired (Note 12) |
||||||||
Accrued expenses |
||||||||
Other payables |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Non-current |
||||||||
Initial reimbursement payment from depositary bank (3) |
||||||||
|
|
|
|
|||||
|
|
|
|
(1) | The customer deposits mainly represent the cash deposits as collateral collected from the merchants of the online platform. The deposit can be withdrawn immediately after the merchants terminate its online shop on the platform. |
(2) | The receipts under custody mainly represent the amounts received by the Group from the registered users for their purchase through the Company’s online market platform, and have not been remitted to the third-party merchants yet. |
(3) | The Company received initial reimbursement payment of US$ RMB in other income. For the year ended March 31, 2021, the Group received an additional reimbursement payment of US$ |
(a) | Value-added tax (“VAT”) and surcharges |
(b) | Income taxes benefits |
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Current income tax expenses |
( |
) | ( |
) | ( |
) | ||||||
Deferred income tax benefits |
||||||||||||
( |
||||||||||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Loss before tax |
||||||||||||
Loss from PRC entities |
( |
) | ( |
) | ( |
) | ||||||
Loss from overseas entities |
( |
) | ( |
) | ( |
) | ||||||
Total loss before tax |
( |
) | ( |
) | ( |
) | ||||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Income tax benefits/(expenses) |
||||||||||||
Current income tax expenses |
( |
) | ( |
) | ( |
) | ||||||
Deferred tax benefits |
||||||||||||
Total income tax benefits/(expenses) |
( |
) | ||||||||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
PRC Statutory tax rate |
||||||||||||
Difference in EIT rates of certain subsidiaries |
( |
) | ( |
) | ( |
) | ||||||
Permanent book – tax difference |
( |
) | ( |
) | ( |
) | ||||||
Additional deduction for research and development expenditures |
||||||||||||
Changes in valuation allowance |
( |
) | ( |
) | ( |
) | ||||||
Effective tax rate |
( |
) | ||||||||||
(c) | Deferred tax assets and liabilities |
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Deferred tax assets: |
||||||||
- Tax losses carried forward |
||||||||
- Carryforwards of un-deducted advertising expenses |
||||||||
- Accruals and other liabilities |
||||||||
- Provision for doubtful accounts |
||||||||
- Impairment of available-for-sale |
||||||||
Less: valuation allowance |
( |
) | ( |
) | ||||
Net deferred tax assets |
||||||||
Deferred tax liabilities: |
||||||||
- Recognition of intangible assets arisen from business combination and unrealized holding gain |
||||||||
- Recognition of acquired broadcasting license |
||||||||
Net deferred tax liabilities |
||||||||
At December 31, |
RMB |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of the period |
||||||||||||
Addition |
||||||||||||
Written off for expiration of net operating losses |
— | ( |
) | ( |
) | |||||||
Utilization of previously unrecognized tax loss and un-deductible advertising expenses |
( |
) | ( |
) | ( |
) | ||||||
Balance at end of the period |
||||||||||||
(a) | Global Share Plan |
Valuation Dates |
2020 |
|||
Expected term |
||||
Expected volatility |
% | |||
Exercise multiple |
||||
Expected dividend yield |
||||
Risk-free interest rate |
% | |||
Expected forfeiture rate (post vesting) |
| |||
Fair value of the underlying shares on the date of option grants (US$) |
||||
Fair value of share option (US$) |
Number of share options |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Life |
Aggregate Intrinsic Value |
|||||||||||||
(US$) |
(In years) |
(US$) |
||||||||||||||
Outstanding as of April 1, 2018 |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled (post-vesting) |
( |
) | ||||||||||||||
|
|
|
|
|||||||||||||
Outstanding as of March 31, 2019 |
||||||||||||||||
|
|
|
|
|||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled (post-vesting) |
( |
) | ||||||||||||||
|
|
|
|
|||||||||||||
Outstanding as of March 31, 2020 |
||||||||||||||||
|
|
|
|
|||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled (post-vesting) |
( |
) | ||||||||||||||
|
|
|
|
|||||||||||||
Outstanding as of March 31, 2021 |
||||||||||||||||
Vested and expected to vest as of March 31, 2021 |
||||||||||||||||
|
|
|
|
|||||||||||||
Exercisable as of March 31, 2021 |
||||||||||||||||
|
|
|
|
(b) | Service-based RSUs |
Number of RSUs |
Weighted-Average Grant-Date Fair Value |
|||||||
US$ |
||||||||
Unvested at March 31, 2018 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at March 31, 2019 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at March 31, 2020 |
||||||||
|
|
|
|
|||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at March 31, 2021 |
||||||||
|
|
|
|
Name of related parties |
Relationship with the Group |
|||
JM Weshop (Cayman) Inc. (a) |
An investee of the Group |
|||
Tencent Group (b) |
Shareholder of the Group |
|||
Chen Qi |
Founder and CEO of the Group |
(a) |
JM Weshop (Cayman) Inc. has been closed in November 2019. |
(b) |
Tencent Holdings Limited together with its subsidiaries are referred to as Tencent Group. |
For the year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Revenues: |
||||||||||||
Marketing services to Tencent |
— | |||||||||||
Technology services to JM Wesho p |
— | |||||||||||
Total |
— |
|||||||||||
Other income: |
||||||||||||
Equipment sales to JM Weshop |
— | — | ||||||||||
Cost of revenue: |
||||||||||||
Cloud technology services from Tencent Group |
||||||||||||
Payment processing fees to Tencent Group |
||||||||||||
Total |
||||||||||||
As of March 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Due from Tencent Group |
||||||||
Due to Tencent Group |
( |
) | ( |
) | ||||
Year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Numerator: |
||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ||||||
Accretion on convertible redeemable preferred shares |
( |
) | — | — | ||||||||
Deemed dividends to preferred shareholders |
( |
) | — | — | ||||||||
Net loss attributable to ordinary shareholders-Basic and Diluted |
( |
) | ( |
) | ( |
) | ||||||
Denominator: |
||||||||||||
Weighted average number of ordinary shares -Basic and Diluted |
||||||||||||
Basic and diluted loss per share |
( |
) | ( |
) | ( |
) |
Year ended March 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Share options and RSUs |
||||||||||||
(a) | Operating lease commitments |
Operating lease obligations |
||||
RMB |
||||
For the year ended March 31, |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Total |
||||
(b) | Capital and other commitments |
Capital commitments |
||||
RMB |
||||
For the year ended March 31, |
||||
2022 |
||||
2024 |
||||
Total |
||||
(c) | Contingencies |
As of March 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ Note 2(f) |
||||||||||
Cash and cash equivalents |
||||||||||||
Amounts due from subsidiaries |
||||||||||||
Prepayments and other current assets |
||||||||||||
Amounts due from related parties |
— | |||||||||||
Total current assets |
||||||||||||
Non-current assets: |
||||||||||||
Intangible assets, net |
||||||||||||
Investments in subsidiaries, VIEs and VIEs’ subsidiaries |
||||||||||||
Investments in other investees |
||||||||||||
Total non-current assets |
||||||||||||
Total assets |
||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Amounts due to subsidiaries |
||||||||||||
Accruals and other current liabilities |
||||||||||||
Total current liabilities |
||||||||||||
Non-current liabilities: |
||||||||||||
Deferred tax liabilities |
||||||||||||
Other non-current liabilities |
||||||||||||
Total non-current liabilities |
||||||||||||
Total liabilities |
||||||||||||
As of March 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ Note 2(f) |
||||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||
Class A ordinary shares (US$ p ar value; s hares authorized as of March 31, 2020 and 2021; |
||||||||||||
Class B ordinary shares (US$ p ar value; s hares issued and outstanding as of March 31, 2020 and 2021, respectively) |
||||||||||||
Treasury stock (US$ p ar value; |
( |
) | ( |
) | ( |
) | ||||||
Additional paid-in capital |
||||||||||||
Accumulated other comprehensive incom e |
||||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Total shareholders’ equity |
||||||||||||
Total liabilities and shareholders’ equit y |
||||||||||||
For the year ended March 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(f) |
|||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amortization of intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other expense, net |
( |
) | ||||||||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
||||||||||||||||
Loss from subsidiaries, VIEs and VIEs’ subsidiaries |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain/(loss) from investments, net |
( |
) | ||||||||||||||
Loss before income tax and share of results of equity investee |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax expenses |
— | — | ( |
) | ( |
) | ||||||||||
Share of results of equity investee |
( |
) | — | — | ||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Accretion on convertible redeemable preferred shares to redemption value |
( |
) | — | — | — | |||||||||||
Deemed dividends to preferred shareholders |
( |
) | — | — | — | |||||||||||
Net loss attributable to MOGU Inc.’s ordinary shareholders |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net Loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other comprehensive income/(loss): |
||||||||||||||||
Foreign currency translation adjustments, net of |
( |
) | ( |
) | ||||||||||||
Share of other comprehensive gain/(loss) of equity method investee |
( |
) | — | — | ||||||||||||
Share of other comprehensive (loss)/income of subsidiaries, VIEs and VIEs’ subsidiaries, net of tax |
( |
) | ( |
) | ||||||||||||
Unrealized securities holding gains, net of tax |
( |
) | ( |
) | ||||||||||||
Total other comprehensive income/(loss) |
( |
) | ( |
) | ||||||||||||
Total comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
For the year ended March 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(f) |
|||||||||||||
Net cash provided by operating activities |
||||||||||||||||
Net cash (used in)/provide by investing activities |
( |
) | ( |
) | ||||||||||||
Net cash provided by/(used in) financing activities |
( |
) | ( |
) | ( |
) | ||||||||||
Net increase/(decrease) in cash and cash equivalents |
( |
) | ( |
) | ( |
) | ||||||||||
Cash and cash equivalents at beginning of year |
||||||||||||||||
Cash and cash equivalents at end of year |