Mogu Inc (MOGU) 2022 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the MOGU First Quarter of Fiscal Year 2022 Earnings Conference Call. (Operator Instructions)

女士們，先生們，感謝各位的支持，歡迎參加蘑菇街2022財年第一季業績電話會議。 （操作員指示）

Now I would like to hand the conference over to your speaker today, Ms. Vivian Wang. Thank you. Please go ahead.

現在，我想將會議交給今天的演講嘉賓王薇薇女士。謝謝。請繼續。

Thank you. Hello, everyone. And thank you for joining us today. MOGU's earnings release was distributed earlier today and is available on the IR website at irmogu-inc.com as well as on the Business Wire services.

謝謝大家。大家好。感謝大家今天加入我們。蘑菇街的財報已於今天稍早發布，可在投資者關係網站 irmogu-inc.com 和 Business Wire 服務上查閱。

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and the current market and operating conditions and relate to events that involve known or unknown risks, uncertainties or other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議包含經修訂的《1934 年證券交易法》第 21E 條和《1995 年美國私人證券訴訟改革法》定義的前瞻性陳述。這些前瞻性陳述是基於管理層當前的預期以及當前的市場和營運條件，並與涉及已知或未知風險、不確定性或其他因素的事件有關，所有這些因素都難以預測，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與前瞻性陳述中的結果、業績或成就存在重大差異。

Further information regarding this and other risks, uncertainties or factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.

有關此風險及其他風險、不確定性或因素的更多信息，請參閱公司提交給美國證券交易委員會的文件。除適用法律另有規定外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

On the call today for MOGU are Mr. Shark Chen Qi, Chairman and CEO; and Ms. Feng Qi, Financial Controller. Mr. Chen will review the business operations and company highlights, followed by Ms. Feng, who will discuss financials. They will all be available to take your questions during the Q&A section.

蘑菇街今日電話會議的嘉賓包括董事長兼執行長陳奇先生和財務總監馮琪女士。陳先生將回顧公司業務營運和亮點，隨後馮琪女士將討論公司財務狀況。在問答環節，他們將解答您的疑問。

Now it is my pleasure to introduce our Chairman and CEO, Mr. Chen. Please go ahead.

現在，我很高興介紹我們的董事長兼執行長陳先生。請開始。

(foreign language)

（外語）

[Interpreted] Hello, everyone. Thank you for joining us on our First Quarter Fiscal Year 2022 Earnings Conference Call today.

[口譯] 大家好。感謝您今天參加我們2022財年第一季財報電話會議。

(foreign language)

（外語）

[Interpreted] During the fiscal year of 2021, we successfully completed the transformation of our business and have essentially become a pure-play live video broadcasting e-commerce company, which I'll refer to as LVB moving forward. During the past quarter, our large e-commerce business continued to maintain its steady growth. The GMV from LVB increased by 14.7% year-over-year to RMB 2.6 billion, contributing to 90.8% of the total GMV during the period.

[解讀] 在2021財年，我們成功完成了業務轉型，基本轉型成為一家專注於直播的電商公司，我以後將簡稱為「直播」。上一季度，我們的大電商業務持續保持穩健成長。直播GMV年增14.7%，達到人民幣26億元，佔當季總GMV的90.8%。

(foreign language)

（外語）

[Interpreted] As we look ahead, we will continue to enhance the supply chains on our platform. On one hand, we'll further improve the overall quality of our platform by only offering products that have a higher standard for quality control and gradually replace the products and merchants that fall below the requirements.

[解讀] 展望未來，我們將持續加強平台的供應鏈建置。一方面，我們將進一步提昇平台的整體質量，只提供品質控制標準更高的產品，並逐步淘汰不達標的產品和商家。

On the other hand, we will continue to cater to the consumption trends fueled by the younger customers by offering more options of newly launched fashion brands through expanding our product categories and cooperation with more suppliers. For our LVB hosts, we will continue to empower them through a more effective and fashionable short video format and maintain our high user retention rate and ARPU by leveraging more high-quality short videos to attract more users to our platform.

另一方面，我們將持續迎合年輕消費者的消費趨勢，透過拓展產品品類及與更多供應商合作，提供更多新晉時尚品牌的選擇。對於直播主播，我們將繼續透過更有效率、更時尚的短影片形式賦能他們，並透過更多優質短影片吸引更多用戶加入我們的平台，保持較高的用戶留存率和ARPU值。

(foreign language)

（外語）

[Interpreted] On July 26, we completed the acquisition of Hangzhou Ruisha Technology Co., Limited, which I will refer to as Ruisha Technology. MOGU beneficially owns the 59.62% equity interest in Ruisha Technology. Ruisha Technology is committed to providing one-stop and customized services for full-domain operations for brands from a wide variety of industries ranging from clothing, shoes and bags, education, maternal and infant health foods as well as cosmetics and skin care.

【解讀】7月26日，我們完成了對杭州瑞莎科技有限公司（以下簡稱瑞莎科技）的收購。蘑菇街實益擁有瑞莎科技59.62%的股權。瑞莎科技致力於為服飾鞋包、教育、母嬰、美妝護膚等各行各業的品牌提供一站式、客製化的全領域營運服務。

Its customers include various well-known brands such as (inaudible), (inaudible), (inaudible), (inaudible) and (inaudible). Its revenue has increased by 13.4x in recent 2 years, and MOGU's acquisition of Ruisha Technology is of strategic significance.

客戶涵蓋(inaudible)、(inaudible)、(inaudible)、(inaudible)和(inaudible)等眾多知名品牌，近兩年營收成長13.4倍，蘑菇街收購睿鯊科技具有戰略意義。

(foreign language)

（外語）

[Interpreted] After establishing our live e-commerce business in 2016, it took us many years of experience and constant improvements to reach our current state. We now operate a well-established LVB e-commerce ecosystem that empowers our brands and supply partners through the integration of our transaction systems, customer service systems and financial systems.

[解讀] 自2016年啟動直播電商業務以來，我們經過多年的累積和不斷的完善，已經擁有完善的直播電商生態，透過整合交易系統、客服系統、金融系統，賦能品牌和供應夥伴。

As an e-commerce platform, MOGU has helped many traditional brands, manufacturers and supply chains to successfully execute their transformation from offline to online operations and from traditional e-commerce to live e-commerce models. Thanks to our innovative and forward-looking ecosystem, we're now in a mature capacity to effectively service our brand partners.

作為一個電商平台，蘑菇街已幫助許多傳統品牌、製造商和供應鏈成功實現從線下到線上、從傳統電商到直播電商模式的轉型。憑藉我們創新且具前瞻性的生態系統，我們如今已具備成熟的能力，能夠有效率地服務我們的品牌合作夥伴。

(foreign language)

（外語）

[Interpreted] The acquisition of Ruisha Technology embodies the expansion and full utilization of the 2B service capabilities that we have accumulated over the years. Ruisha Technology will focus on helping those brands that hope to operate online, elective technology and operational experience to find solutions to achieve value and growth. In addition, MOGU will also reach more brands through Ruisha Technology to further enrich our LVB ecosystem for delivering better services to our partners.

【解讀】收購睿鯊科技，體現了我們多年累積的2B服務能力的拓展和充分發揮。睿鯊科技將專注於幫助那些希望線上化營運的品牌，結合自主研發的技術和營運經驗，找到實現價值和成長的解決方案。此外，蘑菇街也將透過睿鯊科技觸達更多品牌，進一步豐富我們的直播生態，為合作夥伴提供更優質的服務。

(foreign language)

（外語）

[Interpreted] Based on our unrelenting confidence in our future business growth prospects and the recognition of our long-term investment value, the Board of Directors has authorized a new share repurchase program. Our company is authorized to repurchase our ADS with an aggregate value of up to USD 10 million during the 12-month period starting from the date of the announcement of the share repurchase program.

[解讀] 基於我們對未來業務成長前景的堅定信心以及對我們長期投資價值的認可，董事會已批准一項新的股份回購計劃。本公司獲授權在股份回購計畫公告之日起12個月內回購總價值最高可達1,000萬美元的美國存託憑證（ADS）。

(foreign language)

（外語）

[Interpreted] With that, I will turn the call to Feng Qi to go over the financial details.

[口譯] 說完這些，我會把電話轉給馮奇，討論一下財務細節。

Okay. Thank you, Shark. Thank you, Vivian. Thanks again to everyone for joining our conference call today.

好的。謝謝你，Shark。謝謝你，Vivian。再次感謝大家今天參加我們的電話會議。

I will now walk you through our first quarter of fiscal year 2022 financials. We believe year-over-year comparisons are the best way to review our performance. Therefore, unless otherwise stated, all percentage change I'm going to mention will be on that basis.

現在，我將向大家介紹我們2022財年第一季的財務狀況。我們認為，年比比較是評估我們績效的最佳方式。因此，除非另有說明，我接下來提到的所有百分比變化均以此為基礎。

Let's review the financials first. Our GMV for the first quarter of fiscal year 2022 was RMB 2,864 million, a decrease of 8.2% year-over-year. Our strategic focus has been on growing the GMV from live video broadcasting, which has increased by 14.7% year-over-year to RMB 2,600 million. LVB-associated GMV for the first quarter of fiscal year 2022 accounted for 90.8% of the total GMV.

我們先來回顧一下財務數據。 2022財年第一季，我們的GMV為人民幣28.64億元，年減8.2%。我們的策略重點是提升直播GMV，該業務GMV年增14.7%，達到人民幣26億元。 2022財年第一季，直播相關GMV佔總GMV的90.8%。

During the quarter, total revenues decreased by 30.6% to RMB 92 million from RMB 132.5 million during the same quarter for fiscal year 2021.

本季，總收入較2021財年同期的1.325億元下降30.6%至9,200萬元。

Commission revenues decreased by 23.7% to RMB 65.1 million from RMB 85.3 million in the same period of fiscal year 2021, primarily attributable to the lower GMV from the heightened competitive environment.

佣金收入從2021財年同期的人民幣8,530萬元下降23.7%至人民幣6,510萬元，主要由於競爭環境加劇導致GMV下降。

Marketing Services revenue, which is mainly generated from our marketplace business unit, decreased by 64% to RMB 8.6 million from RMB 24 million in the same period of fiscal year 2021. The decrease was mainly due to the restructuring of the company's business towards an LVB-focused model, which involved more business customers, including LVB hosts and their agencies who take on a portion of our marketing and promotion functions.

行銷服務收入主要來自我們的市場業務部門，較2021財年同期的人民幣2,400萬元下降64%至人民幣860萬元。下降的主要原因是公司業務重組為以直播為中心的模式，涉及更多企業客戶，包括直播主播及其經紀公司，他們承擔了我們部分行銷和推廣職能。

Financing Solutions revenues decreased by 5.1% to RMB 11.3 million from RMB 12 million in the same period of fiscal year 2021, mainly due to the lower service fees of the loan to user.

融資解決方案收入較2021財年同期的人民幣1,200萬元下降5.1%至人民幣1,130萬元，主要由於貸款給用戶的服務費降低。

I will now walk you through our major costs and expenses. Cost of revenue decreased by 10.9% to RMB 43.5 million from RMB 48.8 million in the same period of fiscal year 2021, which was mainly due to a decrease in the IT-related expenses.

現在我將向您介紹我們的主要成本和費用。收入成本從2021財年同期的人民幣4,880萬元下降10.9%至人民幣4,350萬元，主要是由於IT相關費用的減少。

Sales and the marketing expenses decreased by 28.9% to RMB 44 million from RMB 61.9 million in the same period of fiscal year 2021, primarily due to optimized spending on branding activities.

銷售及行銷費用由2021財年同期的人民幣6,190萬元下降28.9%至人民幣4,400萬元，主要由於優化了品牌活動支出。

R&D expenses decreased by 24.8% to RMB 21.8 million from RMB 29 million in the same period of fiscal year 2021, mainly due to headcount optimization during the first quarter of fiscal year 2021 that resulted in an increase in lieu of compensation payments during that period.

研發費用由2021財年同期的人民幣2,900萬元減少24.8%至人民幣2,180萬元，主要由於2021財年第一季員工人數優化，導致該期間替代薪酬支付增加。

General and administrative expenses decreased by 1.4% to RMB 23.2 million from RMB 23.5 million in the same period of fiscal year 2021, mainly due to a decrease in the allowance for doubtful receivables.

一般及行政開支較2021財年同期的人民幣2,350萬元減少1.4%至人民幣2,320萬元，主要由於壞帳準備金減少。

Amortization of intangible assets decreased by 8.2% to RMB 64.7 million from RMB 70.5 million in the same period of fiscal year 2021.

無形資產攤銷由2021財年同期的人民幣7,050萬元減少8.2%至人民幣6,470萬元。

Loss from operations was RMB 98 million compared to loss from operations of RMB 94.9 million in the same period of fiscal year 2021.

營業虧損為人民幣 9,800 萬元，而 2021 財年同期的營業虧損為 9,490 萬元。

Net loss attributable to MOGU's ordinary shareholders was RMB 95.5 million compared with a net loss attributable to MOGU's ordinary shareholders of RMB 88.9 million in the same period of fiscal year 2021.

歸屬於蘑菇街普通股股東的淨虧損為9,550萬元人民幣，而2021財年同期歸屬於蘑菇街普通股股東的淨虧損為8,890萬元。

Adjusted EBITDA was negative RMB 25.2 million compared to negative RMB 17.4 million in the same period of fiscal year 2021.

調整後EBITDA為負2520萬元人民幣，而2021財年同期為負1740萬元。

Cash and cash equivalents, restricted cash and short-term investments were RMB 776.3 million as of June 30, 2021 compared with RMB 803.1 million as of March 31, 2021.

截至 2021 年 6 月 30 日，現金及現金等價物、受限現金及短期投資為人民幣 7.763 億元，而截至 2021 年 3 月 31 日為人民幣 8.031 億元。

During the quarter, we continued to successfully execute on our business transformation towards an LVB-focused model from a financial performance perspective. The strong user retention rate and ARPU are the best validation of our LVB-focused strategy. We have clearly reached an inflection point in that the LVB business will be our main growth driver going forward. Our investment in Ruisha Technology represents a continuous effort to expand and utilize our capabilities to provide services for business customers.

本季度，從財務表現來看，我們持續成功推動以直播為中心的業務轉型。強勁的用戶留存率和每位用戶平均收入 (ARPU) 是我們以直播為中心的策略的最佳印證。我們顯然已到達一個轉捩點，直播業務將成為我們未來的主要成長動力。我們對睿鯊科技的投資體現了我們持續拓展和利用自身能力，為企業客戶提供服務的努力。

In addition, the increasingly challenging market environment may impact our performance in the near term. However, with our disciplined financial strategy of investing and serving our brands and merchants on our platform while diversifying our revenue structure to gain incremental growth, we will also continue to optimize customer acquisition costs and our overall operating efficiency. We remain confident in the long-term growth prospects for our business.

此外，日益嚴峻的市場環境可能會在短期內影響我們的業績。然而，憑藉我們嚴謹的財務策略，我們持續投資並服務平台上的品牌和商家，同時多元化收入結構以實現增量成長，並將繼續優化獲客成本和整體營運效率。我們對業務的長期成長前景充滿信心。

So with that, I would like to open the call for Q&A section. Thank you.

好了，現在開始問答。謝謝大家。

(Operator Instructions) Your first question is from the line of Charlie Chen from China Renaissance.

（操作員指示）您的第一個問題來自華興資本的 Charlie Chen。

(foreign language)

（外語）

I have 2 questions here. First one is regarding the competitive landscape. In the announcement, I noticed that your -- the management mentioned that the competition environment actually is increasing. So how does that environment change will impact the operating metrics of your company, including like user acquisition, user retention and also other operating metrics? How does that impact the company's financials? And also, how does your company believes your competitive strength will be changed or remain going forward? So that's the first question.

我有兩個問題。第一個是關於競爭格局的。在公告中，我注意到貴公司的管理層提到競爭環境實際上正在加劇。那麼，這種環境變化將如何影響貴公司的營運指標，包括用戶獲取、用戶留存以及其他營運指標？這將如何影響公司的財務狀況？此外，貴公司認為你們的競爭優勢將如何改變或在未來如何維持？這是第一個問題。

And my second question is regarding the acquisition of Ruisha as I believe the company has been making a lot of efforts in consolidating or integrating the supply chain by connecting the KOLs and the brands together. So how will Ruisha fit in this integration? And how can Ruisha help the company to expand the business or do more to further strengthen the company's competitive edge?

我的第二個問題是關於收購瑞莎，我相信公司一直在努力整合供應鏈，將KOL和品牌連結起來。那麼瑞莎將如何參與這次整合？瑞莎如何幫助公司拓展業務或進一步增強公司的競爭優勢？

(foreign language)

（外語）

[Interpreted] [Okay. I'll translate now.] I'll first answer your question about the intensified competition. This is because market participants is very optimistic about this market. So many more players are entering the market.

[口譯] [好的，我現在翻譯。 ] 我先回答你關於競爭加劇的問題。這是因為市場參與者對這個市場非常樂觀。所以越來越多的參與者正在進入這個市場。

(foreign language)

（外語）

[Interpreted] As more and more KOLs or hosts entering the market, they compete on price. So as a platform, we also compete on price with other platforms.

【解讀】隨著越來越多的KOL或主播進入市場，他們之間展開價格競爭。因此，作為平台，我們也正在與其他平台進行價格競爭。

(foreign language)

（外語）

[Interpreted] Other than the intensified competition on price, the cost of user traffic is also increasing as the Internet users -- the growth of Internet users started to slow down, the price to gain traffic has been increasing fast.

[解讀]除了價格競爭加劇之外，隨著網民數量的成長放緩，用戶流量的成本也不斷提高，獲取流量的價格也隨之快速上漲。

(foreign language)

（外語）

[Interpreted] So for us, our competitive advantage is as one of the early starters of the LVB business, we have very in-depth know-how. So we know the hosts and the merchants and the suppliers very well. For our hosts, the cost of doing business on our platform is lower than others.

[翻譯] 所以對我們來說，我們的競爭優勢在於，作為直播業務的早期參與者之一，我們擁有非常深入的專業知識。因此，我們非常了解主播、商家和供應商。對於我們的主播來說，在我們平台上開展業務的成本比其他平台更低。

(foreign language)

（外語）

[Interpreted] The second company strength is that our users are very loyal to our platform, and they have been with us for a long time. So our ARPU is much higher than other platforms. So combining with the -- So this combined competitive advantage helps us to maintain a reasonable growth despite the intensified competition in the space.

[解讀] 公司的第二個優勢在於，我們的用戶對我們的平台非常忠誠，並且已經與我們合作了很長時間。因此，我們的每位用戶平均收入 (ARPU) 遠高於其他平台。這種綜合競爭優勢幫助我們在產業競爭加劇的情況下維持了合理的成長。

(foreign language)

（外語）

[Interpreted] So now I'll answer the second question about the Ruisha acquisition. So Ruisha was founded by a group of engineers that formed MOGU 2.5 years ago. So they left MOGU to found Ruisha. So also MOGU is one of their (inaudible) investors.

[口譯] 現在我來回答第二個問題，關於收購瑞莎。瑞莎是由一群兩年半前創立蘑菇街的工程師創立的。他們離開了蘑菇街，創立了瑞莎。所以蘑菇街也是他們的（聽不清楚）投資者之一。

(foreign language)

（外語）

[Interpreted] So the Ruisha team and the MOGU team will share the same vision and value. So during the past 2.5 years, we have been cooperating and keeping a -- kept a close contact.

[翻譯] 所以，瑞莎團隊和蘑菇街團隊將擁有共同的願景和價值觀。所以在過去的兩年半里，我們一直在合作，並保持著密切的聯繫。

(foreign language)

（外語）

[Interpreted] So in MOGU's history, we have accumulated a very in-depth e-commerce technology -- a very advanced e-commerce technology and operational know-how. So the Ruisha team, they have used the same technology and know-how to service many, many brands.

[翻譯] 在蘑菇街的發展歷程中，我們累積了非常深厚的電商技術－非常先進的電商技術和營運經驗。瑞莎團隊也運用同樣的技術和經驗為眾多品牌提供服務。

(foreign language)

（外語）

[Interpreted] Ruisha's customers are internationally -- all the biggest brands in China are internationally. So that provides us with a lot of synergy because traditionally, Mogu's customers and brands are small or midsize. So with the acquisition of Ruisha, we'll be able to expand into more brands and that was hard to acquire.

[翻譯] 瑞莎的客戶遍佈全球－中國所有最大的品牌都是國際品牌。這為我們帶來了很大的協同效應，因為蘑菇街的客戶和品牌傳統上都是中小型品牌。收購瑞莎後，我們將能夠拓展到更多品牌，而這在過去很難實現。

(foreign language)

（外語）

[Interpreted] So Ruisha's -- 100% of Ruisha's revenue is from service income. So that will diversify our income stream -- that will diversify MOGU's income stream, which will be more healthy going forward.

[解讀] 所以，瑞莎100%的收入都來自服務收入。這將使我們的收入來源更加多元化，而蘑菇街的收入來源也更加多元化，這對未來發展來說將更加健康。

(foreign language)

（外語）

[Interpreted] So after the acquisition of Ruisha, we'll be able to service our existing brand on MOGU's platform, such as private traffic development, live forecasting and cross-border business.

[解讀]所以收購瑞莎之後，我們就可以在蘑菇街的平台上為我們現有的品牌提供服務，例如私域流量拓展、直播預測、跨境業務等等。

(foreign language)

（外語）

[Interpreted] So going forward, in our revenue breakdown, we'll have the 2C and 2B components. In the 2B part, we expect to see very fast growth. That's all about the Ruisha acquisition.

[翻譯] 展望未來，我們的收入組成將包含2C和2B兩個部分。我們預計2B部分將出現非常快速的成長。關於收購Ruisha，以上就是全部內容。

(Operator Instructions) Your next question is from the line of Cecilia Yu from [AJ Securities]

（操作員指示）您的下一個問題來自[AJ證券]的Cecilia Yu

(foreign language)

（外語）

[Interpreted] [I'll translate the questions first.] So there are 2 questions. First is about the recent regulations on antimonopoly. So with the recent regulation environment, do we -- does the management see more opportunities for companies like MOGU? The second question is about -- it's about, can management elaborate more on the Ruisha acquisition because this is quite a major deal for the company.

[口譯] [我先翻譯一下問題。 ] 所以有兩個問題。第一個是關於最近的反壟斷法規。那麼，在最近的監管環境下，管理層是否看到了像蘑菇街這樣的公司有更多機會？第二個問題是，管理階層能否更詳細闡述瑞莎收購案，因為這對公司來說是一筆相當重要的交易。

(foreign language)

（外語）

[Interpreted] First, I'll answer the question about antimonopoly regulation. So we are still very confident about the Internet space. And we think it will be one -- it will be the fastest-growing space globally, and it will provide us with a lot of opportunities.

[譯] 首先，我來回答關於反壟斷監管的問題。我們對網路領域仍然非常有信心。我們認為它將是全球成長最快的領域之一，並將為我們提供大量機會。

(foreign language)

（外語）

[Interpreted] So from my personal point of view, the antimonopoly is about monopoly behavior, not about the size of the companies.

[解讀]所以從我個人的角度來說，反壟斷是針對壟斷行為的，而不是針對企業規模的。

(foreign language)

（外語）

[Interpreted] So I think going forward, the Chinese Internet market will be more open and which I think will be beneficial for all the participants in the space. And for us, I think it will benefit us as well.

[翻譯] 所以我認為，未來中國互聯網市場將更加開放，這將有利於該領域的所有參與者。對我們來說，我認為這也將受益。

(foreign language)

（外語）

[Interpreted] On the other hand, as one of the major e-commerce platforms in China, we are 1 of the 34 platforms to be heavily regulated by the Chinese authorities. So that will -- so, for us, we'll bear some costs to comply with the regulation.

[翻譯] 另一方面，作為中國主要的電商平台之一，我們是34個受中國當局嚴格監管的平台之一。因此，為了遵守監管規定，我們需要承擔一些成本。

(foreign language)

（外語）

[Interpreted] For us, we're quite confident and optimistic about our outlook. We have been complying with the law and regulations during our whole history. So regarding the regulation, I think it will benefit the market and us as well.

[翻譯] 我們對未來充滿信心與樂觀。我們一直以來都遵守法律法規。因此，我認為這項監管措施對市場和我們都有好處。

(foreign language)

（外語）

[Interpreted] So for the Ruisha acquisition, I think we have -- I have elaborated a lot on this topic. So for the Ruisha acquisition, it's a very important strategic initiative for MOGU. It will diversify our revenue stream. So in the past, we're focused on the 2C market. Going forward, we'll add the 2B income and revenue stream. So that will -- that was about our revenue stream. And so it will help us sustain the healthy growth.

[翻譯] 關於收購瑞莎，我想我們已經就這個主題詳細闡述過了。收購瑞莎對蘑菇街來說是一項非常重要的策略舉措。它將使我們的收入來源更加多元化。過去，我們專注於2C市場。未來，我們將增加2B市場的收入和收益來源。這就是我們的收入來源，這將有助於我們保持健康成長。

(foreign language)

（外語）

[Interpreted] In the past 20 years, we can see that the 2C consumer brands have developed very rapidly in terms of scale and global development. Going forward, we want to help them go global, and we want to participate in this trend and to service our customers. And that's one of the...

[解讀] 過去20年，我們看到2C消費品牌在規模和全球化佈局方面發展非常迅速。展望未來，我們希望幫助他們走向全球化，並參與這一趨勢中，服務我們的客戶。這是…

(Operator Instructions) We have a question from Charlie Chen from China Renaissance.

（操作員指示）我們有一個來自華興資本的 Charlie Chen 的問題。

(foreign language)

（外語）

So my question is related to the LVB business GMV growth, which we see in this quarter, it's kind of slowing down from previous quarters. I'm just wondering what kind of strategy or considerations the management has been taking to improve the situation, whether it's related to increase the pool of KOLs or getting more brands onboard or increasing the pace of new user acquisitions, et cetera. So what kind of strategies or tactics the company is taking to try to improve the GMV growth going forward?

我的問題是關於直播業務的GMV成長，我們在本季看到，其成長速度比前幾季有所放緩。我想知道管理層採取了哪些策略或考慮來改善這種情況，是擴大KOL數量，還是吸引更多品牌入駐，還是加快新用戶獲取速度等等。那麼，公司正在採取哪些策略或策略來提高未來的GMV成長呢？

(foreign language)

（外語）

[Interpreted] Going forward, we will continue to leverage our competitive advantages. So for the strategic initiative, there are 3 main points: First, our operational captivities with the KOLs. Going forward, we'll continue to integrate more KOLs of different categories and also to support our top KOLs, and then we'll develop into more medium and long-tail KOLs. And second is the category expansion. We'll expand to new categories with higher gross profit margins. So we have -- we currently have a team that is working on expanding to new categories. And the third is on users. So our existing users are very loyal to our platforms, but we still think there is space to grow. So we'll try to attract new users that have never tried live broadcasting shopping before. And -- so for example, we'll work with other platforms to acquire users with a relative low cost. For example, we have been working with Tencent videos to promote our platform.

展望未來，我們將繼續發揮我們的競爭優勢。策略舉措主要有三點：首先，我們對KOL的營運控制。未來，我們將繼續整合更多不同品類的KOL，並支援我們的頂級KOL，然後我們將發展更多中長尾KOL。其次是品類擴充。我們將擴展到毛利率較高的新品類。我們目前有一個團隊正在致力於拓展新品類。第三是用戶。我們現有的用戶對我們的平台非常忠誠，但我們認為仍有成長空間。因此，我們將嘗試吸引以前從未嘗試過直播購物的新用戶。例如，我們將與其他平台合作，以相對較低的成本獲取用戶。例如，我們一直在與騰訊影片合作推廣我們的平台。

There are no further questions. I will hand it over back to Ms. Vivian Wang for closing remarks. Ma'am, please go ahead.

沒有其他問題了。我將把發言時間交還給王薇薇女士，請她做最後發言。女士，請發言。

Sure. Thank you, and thank you, everyone, for joining the call today. If you have any further questions or comments, please don't hesitate to reach out to any one of us here at MOGU. This concludes the call today.

當然。謝謝大家，也謝謝大家今天參加電話會議。如果您還有其他問題或意見，請隨時聯繫蘑菇街的任何員工。今天的電話會議到此結束。

And with that, this concludes today's conference call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。現在可以掛斷電話了。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]