Mogu Inc – ADR (NYSE: MOGU) has announced that Hangzhou Juangua Network Co., Ltd., a composite associated unit of the company, has arrived into conclusive arrangements with Hangzhou Ruisha Technology Co., Ltd. to increase and acquire directing equity interests in Hangzhou Ruisha.
The deal is subject to certain closing conditions
Under the conclusive contracts, Hangzhou Juangua will buy equity securities from the current stockholders of Hangzhou Ruisha and contribute for added equity interests in Hangzhou Ruisha, at an amassed consideration of RMB50 million in cash. As a result, MOGU will constructively possess 59.62% equity interests in Hangzhou Ruisha after the dealings. The dealings are subject to routine concluding conditions.
Hangzhou Ruisha is dedicated to supporting brands with one-stop and tailored amenities for full-domain processes, counting a widespread diversity of operational amenities, data podiums, and other software facilities, as well as value-added amenities such as traffic assignment.
Qi Chen, MOGU’s chairman and chief executive officer, observed, “Hangzhou Ruisha’s resolutions are progressively pursued after by makes which would like to clinch online evolution in spite of partial procedural and functioning involvements. This speculation is an imperative step in MOGU’s progress towards a more widespread environment for live video transmission e-commerce.”
Mogu Inc Over-all incomes reduced by 23.6% to RMB90.9 million from RMB119.0 million through the same period last year
Mogu Inc’s total incomes in the fourth quarter of 2021 have reduced by 23.6% to RMB90.9 million from RMB119.0 million through the same period last year. In addition, its agreement proceeds dropped by 1.7% to RMB65.2 million from RMB66.3 million in the same period last year, chiefly due to the rearranging of the company’s trade towards an LVB-focused ideal.
The marketing amenities incomes declined by 34.5% to RMB11.9 million from RMB18.2 million in the same period last year. The reduction was chiefly due to the streamlining of the company’s trade towards an LVB-focused model.
Other incomes reduced by 60.2% to RMB13.7 million from RMB34.4 million in the same period last year, chiefly due to a decline in virtual direct transactions. The cost of income declined by 35.4% to RMB37.9 million from RMB58.6 million in the same period last year, chiefly due to a cut in the charges related to lesser virtual direct transactions.
Sales and promotion expenditures diminished by 44.5% to RMB43.4 million from RMB78.2 million in the same period last year, chiefly due to an enhanced outlay on labeling and user attainment actions.