MOGU Inc. reported a return to profitability for fiscal year 2026, with net income attributable to shareholders reaching RMB1.8 million (US$0.3 million), compared to a net loss of RMB62.6 million in the prior year. This turnaround was supported by investment gains and a gain on the deconsolidation of a subsidiary. Total revenues for the year decreased by 11.2% to RMB125.4 million (US$18.2 million) from RMB141.2 million in fiscal year 2025, reflecting a challenging competitive environment in China's e-commerce market.

Full Fiscal Year 2026 Performance

The company's revenue streams showed mixed performance during the year. Commission revenues decreased by 11.8% to RMB65.8 million, while financing solutions revenues fell 13.5% to RMB6.8 million. Technology service revenues saw a significant decline of 47.4% to RMB26.9 million, primarily due to the deconsolidation of Hangzhou Ruisha Technology Co. Ltd. as the company's share interest dropped from 59.6% to 48.2% in August 2025. Conversely, other revenues surged 248.0% to RMB25.8 million, driven by increased advertising and promotion services through Key Opinion Leaders (KOLs) and talent management services.

Profitability and Expenses

Cost of revenues increased by 5.7% to RMB89.6 million (US$13.0 million), largely due to higher costs associated with talent management services. Operating expenses were tightly controlled, with sales and marketing expenses decreasing 35.2% to RMB37.6 million. Research and development expenses declined 4.0% to RMB28.8 million, and general and administrative expenses fell 12.9% to RMB49.4 million. Consequently, the loss from operations narrowed to RMB72.2 million (US$10.5 million) from RMB101.1 million in the previous year.

Second-Half and Operational Metrics

For the six months ended March 31, 2026, total revenues decreased by 28.5% to RMB56.7 million (US$8.2 million). Gross Merchandise Volume (GMV) for the period fell 15.6% year-over-year to RMB1,818 million (US$263.6 million), while live video broadcast associated GMV dropped 16.0% to RMB1,760 million (US$255.2 million). The company reported a net loss of RMB48.6 million for the second half, compared to a net loss of RMB38.4 million in the prior year's corresponding period.

Mr. Fan Yiming, Chief Executive Officer of MOGU, noted that the Multi-Channel Network (MCN) business on external platforms, including RedNote, performed well, generating over RMB350 million in transaction volume. Ms. Qi Feng, Financial Controller, emphasized the company's focus on identifying new revenue growth opportunities through MCN operations to narrow overall losses. Cash and cash equivalents, restricted cash, and short-term investments totaled RMB295.6 million (US$42.9 million) as of March 31, 2026.