MOGU Inc. (MOGU) is up 13.13% in the pre-market trading session at the price of $1.12 after the announcement of the $10 million share repurchase program and first-quarter fiscal year 2022 financial results. MOGU is the main KOL-driven online fashion and lifestyle destination in China.

Announcement of $10 Million Share Repurchase Program

On 27th August 2021, MOGU declared that its board of directors had approved a new share repurchase program. Under the terms, the company is authorized to repurchase up to $10 million of its shares. The program will be effective till 26th August 2022. The company anticipates funding the repurchases with its existing cash balance.

Under the terms, MOGU’s proposed repurchases may be made on the open market at prevailing market prices, in privately negotiated transactions, in block trades, and through other legal means. It will depend on market conditions and will be according to rules and regulations. The company’s board of directors will review the share repurchase program from time to time. They have the right to authorize adjustment of its terms and size.

MOGU Reported First Quarter Fiscal Year 2022 Financial Results

On 27th August 2021, MOGU published its unaudited financial results for the first quarter of the fiscal year 2022, which ended 30th June 2021. MOFU reported a decrease of 30.6% to RMB92.0 million (US$14.2 million) in the total revenues. Total revenues reported during the same period of the fiscal year 2021 were MB132.5 million.

MOGU reported an operating loss of RMB98.0 million (US$15.2 million) for the first quarter of fiscal 2022. The operating loss reported for the same quarter of the fiscal year 2021 was RMB94.9 million. Basic and diluted loss per ADS were RMB1.00 (US$0.15) and RMB1.00 (US$0.15), for the first quarter of fiscal 2022. Basic and diluted losses were RMB0.81 and RMB0.81 for the same period of the fiscal year 2021.

CEO of MOGU, Mr. Chen Qi, remarked that they continue to make progress on the strategic transformation of Mogu’s Live Video Broadcasting business. The GMV from their Live eCommerce business continues to grow. It is rising by 14.7% YoY and accounting for 90.8% of their total GMV during the quarter. As they look forward, they will be establishing new partnerships with more suppliers that meet the needs of this new consumption trend. Meanwhile, they will focus on empowering more KOLs on their platform through their short video format, he added. By providing more fashionable and high-quality product offerings and services to their users, they will maintain a high user retention rate and ARPU. Likewise, they will further formulate and employ the service capabilities for commercial partners that they have built over the years to create a more abundant live video broadcasting eCommerce ecosystem, he concluded.