Mogujie.Com'S Market Value Shrank By 1 Billion US Dollars In June.

Since landing at the NYSE IPO in the end of 2018 and becoming the "first technology of fashion technology", mogujie.com (NYSE: MOGU) can be regarded as the worst share in the stock market.

Data show that, according to the highest price of $21.39 / share in December 28th last year, mogujie.com's share price has plummeted by 77%, taking just 6 months, from the market value of 1 billion 500 million dollars to the current market value of 500 million US dollars.

Changjiang Commercial Daily reporter noted that mogujie.com recently disclosed the first annual performance report after the listing.

In the 2019 fiscal year, the company's operating income increased 10.39% to 1 billion 74 million 300 thousand yuan over the same period, and the adjusted net loss was 239 million 700 thousand yuan, narrowing to 42.96% in the 2018 fiscal year (adjusted net loss 420 million 200 thousand yuan).

Among them, it is worth mentioning that the GMV of live broadcasting grew by 138.1% compared to the same period last year, and maintained the three digit growth rate.

Although it seems that mogujie.com's losses have narrowed down and its trading scale has increased slightly over the same period, mogujie.com's long-term growth is still in a state of deficit.

In June 6th, according to the company's current loss and future development plan, the Yangtze daily news reporter sent an interview to mogujie.com, but before the deadline, the other side did not reply.

Share price plummeted 77%

After the release of the earnings report, mogujie.com's shares fell by 5.4%. As of June 7th, the market value was only $500 million, less than 1/10 of vip.com's, and mogujie.com's share price had slumped 77%, according to the highest price of 21.39 dollars / share in December 28th last year.

In fact, mogujie.com has not made profits in recent years. Data show that in the 2017 fiscal year (as of March 31, 2017) and the 2018 fiscal year (April 1, 2017 -2018 March 31st), the net adjusted losses of mogujie.com were about 480 million yuan and 420 million yuan respectively.

In this way, together with the loss of 239 million 700 thousand yuan in the 2019 fiscal year, mogujie.com lost nearly 1 billion 140 million yuan in the past three years.

Similarly, the cash flow situation is not optimistic.

From the beginning of fiscal 2017 to the 2019 fiscal year, the net outflow of mogujie.com's cash flow has reached 1 billion 621 million yuan.

In addition, in fiscal year 2019, cash and its cash equivalents were 1 billion 278 million yuan, up 4% from the same period last year.

In addition, during the Spring Festival of 1-3 this year, mogujie.com increased its investment in advertising and marketing, and its sales and marketing expenses reached 178 million, an increase of 49.5% over the same period last year.

However, its total revenue in the first three months of this year was only 218 million, a 367 million decline in the previous quarter, a sharp decline of 40.6%.

Live broadcasting business grows into driving force

Statistics show that mogujie.com, founded in 2011, has just started locating in a high-tech and fashionable Internet Co.

In the 12 months ended March 31, 2019, mogujie.com platform GMV was 17 billion 408 million yuan, an increase of 18.7% over the same period last year.

Among them, the GMV of live broadcasting business grew by 138.1% over the same period last year, keeping the three digit growth rate. Due to the efficient conversion of live broadcasting to commodity sales on the platform, only 1 billion 400 million yuan of GMV was contributed in the first half of 2019 fiscal year.

"In the past quarter, we have enriched content to enhance users' participation in the live broadcast business, promoted the upgrading of the repeat purchase rate, and continued to expand, optimize and enhance the supply chain of the fashion ecosystem."

Mogujie.com founder, chairman of the board, CEO June said in the earnings report.

However, despite the double growth of GMV and revenue, the important problem before mogujie.com's listing is that the growth of monthly buyers is almost stagnant and remains unresolved.

Mogujie.com's earnings report also mentioned that despite the bright growth of the two growth drivers and the live broadcast business, the monthly live subscribers of the live broadcast business in the financial year increased significantly to 42.1%, while the small program contributed 31.1% to the GMV in the first half of the fiscal year. However, the monthly activity of the whole platform in the fiscal year has not changed, and it is still 32 million 800 thousand.

In fact, this kind of "stagnation" is very dangerous for an electronic business platform, especially for a long time in the loss of electronic business platform.

From the perspective of market development, the live broadcast of e-commerce will undoubtedly bring more opportunities to the e-commerce platform including mogujie.com, but the homogenization competition of this business is also intensifying.

"Today's live broadcast will be the" standard "of all electric providers. The trend of this industry will become more prominent in 2019. How to achieve differentiation is also an urgent task.

Cao Lei, director of e-commerce research center, said in an interview with the Yangtze Daily reporter.

Trying to focus on the content community

"In fact, it is hard to say whether mogujie.com can continue to rely on the direct seeding business of e-commerce to boost revenue and build core competitiveness."

Insiders told the Changjiang Daily reporter.

At present, the short video platform such as jitter, quick hand, little red book is also expanding the business of electric business, and the performance from jumei.com and mogujie.com in recent years is not difficult to see that this vertical field may not only shuffle the cards in the future.

For example, jumei.com, for example, has evaporated more than 9 ($290 million) at the highest value of the company's $5 billion 780 million market value (the latest market value of $290 million), which is no longer "endorsed" by Chen ou, the youngest Chinese enterprise with the CEO title.

For e-commerce platform, how to achieve business pformation of users is very important. Content realisation has also become an important way for e-commerce giants to obtain traffic.

In addition to giving the power to live broadcast business, mogujie.com also has many actions in the content community.

Prior to mogujie.com's internal letter, the work in the first half of this year will focus on the establishment of the Darren community, the release of community evaluation criteria based on grass planting power, and the development of a simple and easy-to-use productivity tool for the development of Studio.

Although there is room for development in content realisation, mogujie.com will also face the strong opponent of Xiao Hong in this field.

The little red book, which started in the community, has now fully touched users' consumption experience and all aspects of life. Relatively speaking, mogujie.com's commercial realisation still has great challenges.

Cao Lei believes that "mogujie.com wants to better achieve sustainable development needs to make efforts from the following aspects: first, we should pay attention to whether we have a good active user structure; secondly, we should consider whether we have enough traffic entry and capital support; finally, whether we can build a competitive" closed loop "or even an ecological circle based on our core strengths.