MOGU Overview

Auditor Transition: MOGU Inc. has dismissed PricewaterhouseCoopers Zhong Tian LLP as its auditor and appointed Marcum Asia CPAs LLP as the new auditor, effective November 13, 2025, with the transition approved by the Audit Committee.

Former Auditor's Reports: The reports from the former auditor for the fiscal years ending March 31, 2025, and March 31, 2024, contained no adverse opinions, and there were no disagreements or reportable events, aside from noted material weaknesses in internal controls.

Material Weaknesses: The material weaknesses identified include insufficient financial reporting personnel knowledgeable in U.S. GAAP, inadequate controls over account reconciliations, and lack of periodic reviews of high-risk activities in the accounting system.

Forward-Looking Statements: The announcement includes forward-looking statements regarding MOGU's expectations and plans, which are subject to risks and uncertainties, as outlined in their filings with the U.S. Securities and Exchange Commission.

U.S. Stock Market Performance: U.S. stocks saw gains, with the Dow up 1.32%, Nasdaq rising 0.72%, and S&P 500 increasing by 0.80%. Consumer discretionary shares led the rise, while communication services stocks experienced a slight decline.

Kroger's Earnings Report: Kroger reported better-than-expected second-quarter earnings, with adjusted EPS of $1.04, surpassing estimates. The company also raised its FY25 adjusted EPS outlook and projected a sales increase.

Notable Stock Movements: MOGU Inc. shares surged 110% after a digital currency allocation announcement, while Opendoor Technologies and Vince Holding Corp. also saw significant gains. Conversely, Robin Energy Ltd. and Avidity Biosciences experienced sharp declines.

Global Market Trends: European shares rose, with the eurozone's STOXX 600 up 0.47%, while Asian markets closed mostly higher. Economic indicators showed a 2.9% rise in the Consumer Price Index and an increase in initial jobless claims.

MOGU's Investment in Digital Currencies: MOGU Inc. plans to invest up to $20 million in digital currencies like Bitcoin, Ethereum, and Solana to diversify its treasury assets, with the board approving this initiative on September 9.

Financial Performance and Stock Surge: The company reported a 3% year-over-year revenue increase to RMB79.4 million, but faced a nearly 29% decline in gross merchandise value (GMV) related to live video broadcasts. Despite these challenges, MOGU's shares surged over 120% to $5.51.