Taobao and Tmall Group

- China commerce retail

- China commerce wholesale

Cloud Intelligence Group

Alibaba International Digital Commerce Group

- International commerce retail

- International commerce wholesale

Cainiao Smart Logistics Network Limited

Local Services Group

Digital Media and Entertainment Group

All Others

Total Revenue

9fbf225503492b6d6c3f3512cf0ff06e454090e27786181e475e6c56dcbc2e19

Alibaba Group Holding Limited is a holding company that provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers more efficiently. The company operates through various platforms offering digital retail marketplaces, cloud services, international commerce, logistics solutions, local services, and digital media and entertainment. Alibaba's diverse operations aim to empower small businesses through digital technology and facilitate commercial and social interactions globally  **[0000950170-24-063767_baba-20240331.htm:351]** **[0001104659-24-119899_tm2428512d1_ex99-2.htm:6]** **[0000950170-24-063767_baba-20240331.htm:218]** .

1. **Taobao and Tmall Group** - Operates digital retail marketplaces in China, including Taobao and Tmall, and offers consumer-to-consumer and direct sales through platforms like Xianyu, Tmall Supermarket, and Tmall Global  **[0000950170-24-063767_baba-20240331.htm:351]** .
2. **Cloud Intelligence Group** - Provides a comprehensive suite of cloud services, including infrastructure-as-a-service, platform-as-a-service, and model-as-a-service to customers worldwide  **[0000950170-24-063767_baba-20240331.htm:351]** .
3. **Alibaba International Digital Commerce Group** - Manages international commerce through platforms such as AliExpress, Trendyol, Lazada, Daraz, and Miravia, and conducts international wholesale business via Alibaba.com  **[0000950170-24-063767_baba-20240331.htm:351]** .
4. **Cainiao Smart Logistics Network Limited** - Offers global logistics solutions, including express delivery and supply chain services, charging merchants delivery and service fees  **[0000950170-24-063767_baba-20240331.htm:351]** **[0000950170-24-063767_baba-20240331.htm:221]** .
5. **Local Services Group** - Includes \"To-Home\" services like Ele.me, an on-demand delivery platform, and \"To-Destination\" services through Amap, a digital maps and navigation provider in China  **[0000950170-24-063767_baba-20240331.htm:351]** **[0000950170-24-063767_baba-20240331.htm:143]** .
6. **Digital Media and Entertainment Group** - Encompasses platforms like Youku, an online video platform, and Alibaba Pictures, focusing on content production, promotion, and distribution  **[0000950170-24-063767_baba-20240331.htm:351]** **[0000950170-24-063767_baba-20240331.htm:143]** .
7. **All Others** - Encompasses various other businesses such as Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (UCWeb and Quark), Fliggy, and DingTalk  **[0000950170-24-063767_baba-20240331.htm:351]** **[0000950170-24-063767_baba-20240331.htm:221]** .

414eb6b4888f0032ccc16adc143b4d8dc0c48dfeb5c1b0851ff4ca4daf37eaa9

1. Given that competitors are reducing their take rates to attract more merchants, how does Alibaba plan to balance increasing its take rate through software service fees and marketing tools like Transient with the potential risk of losing merchants to platforms offering lower costs?
2. With significant investments in AI infrastructure and cloud services increasing capital expenditures, how will Alibaba ensure a strong return on investment, especially considering the uncertainty around future AI demand and the competitive landscape?
3. Despite recent price reductions in cloud services to attract new users, how does Alibaba plan to sustain profitability in its cloud business, and what strategies are in place to mitigate margin pressures in the face of intensified competition?
4. You have high expectations for user growth after introducing interoperability with WeChat Pay on Taobao and Tmall. Can you share specific timelines or targets for this growth, and what strategies are in place to convert these new users into long-term active consumers?
5. The Singles Day promotions this year relied heavily on platform-funded discounts, which could impact short-term profitability. How does Alibaba justify this approach in terms of long-term financial performance, and what are the expected effects on margins if such strategies need to be sustained to remain competitive?

2f6663d288c0496a14977037df77895a6b7630cb905d9887acacb7004693a006

| Name             | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|------------------|--------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joseph C. Tsai   | Chairman; Chairman, Cainiao Smart Logistics Network Limited              | 1999             | Joseph C. Tsai joined Alibaba Group in **1999** as a founding team member. He was the CFO until **2013**, executive vice chairman until September **2023**, and is currently the chairman. He is also chairman of Cainiao Smart Logistics Network Limited and a board member of Taobao and Tmall Group, Alibaba International Digital Commerce Group, and Ant Group  **[0000950170-24-063767_baba-20240331.htm:263]** **[0001104659-24-037487_tm249431d1_sc13da.htm:4]** **[0000950170-24-063767_baba-20240331.htm:262]** . |
| Eddie Yongming Wu| Director and CEO; Chairman and CEO, Taobao and Tmall Group; Chairman and CEO, Cloud Intelligence Group | September 2023   | Eddie Yongming Wu is a co-founder of Alibaba Group and has served as the CEO and Director since September **2023**. He is also the Chairman and CEO of Taobao and Tmall Group since May **2023** and the Chairman and CEO of Cloud Intelligence Group since September **2023**. He joined Alibaba at its inception in **1999**  **[0000950170-24-063767_baba-20240331.htm:263]** **[0000950170-24-063767_baba-20240331.htm:262]** . |
| J. Michael Evans | Director and President; Co-Chairman, Alibaba International Digital Commerce Group | August 2015      | J. Michael Evans has been the Director and President of Alibaba Group since **August 2015** and a director since **September 2014**. He is also the Co-Chairman of Alibaba International Digital Commerce Group. Previously, he was Vice Chairman of The Goldman Sachs Group, Inc.  **[0000950170-24-063767_baba-20240331.htm:264]** **[0000950170-24-063767_baba-20240331.htm:262]** **[0001104659-24-037487_tm249431d1_sc13da.htm:4]** .                                                                                   |
| Toby Hong Xu     | Chief Financial Officer                                                 | April 2022       | Toby Hong Xu has been the CFO of Alibaba Group since **April 2022**. He joined Alibaba in **July 2018** and served as deputy CFO from **July 2019 to March 2022**. Before Alibaba, he was a partner at PricewaterhouseCoopers for 11 years  **[0000950170-24-063767_baba-20240331.htm:267]** .                                                                                                                               |
| Jane Fang Jiang  | Chief People Officer                                                    | April 2023       | Jane Fang Jiang has served as the Chief People Officer of Alibaba Group since **April 2023**. She is a founding member of the Alibaba Partnership and has held various senior management roles since joining Alibaba in **1999**  **[0000950170-24-063767_baba-20240331.htm:267]** **[0000950170-24-063767_baba-20240331.htm:272]** .                                                                                                                                        |
| Sara Siying Yu   | General Counsel                                                         | April 2020       | Sara Siying Yu has been the General Counsel of Alibaba Group since **April 2020**. She joined the company in **April 2005** and was one of the first partners of the Alibaba Partnership  **[0000950170-24-063767_baba-20240331.htm:267]** .                                                                                                                                                                               |
| Fan Jiang        | Co-Chairman and CEO, Alibaba International Digital Commerce Group       | August 2013      | Fan Jiang is the Co-Chairman and CEO of Alibaba International Digital Commerce Group. He joined Alibaba in **August 2013** and has held various leadership roles, including president of Taobao, Tmall, and Alimama  **[0000950170-24-063767_baba-20240331.htm:268]** **[0000950170-24-063767_baba-20240331.htm:272]** .                                                                                                                                                  |
| Lin Wan          | CEO, Cainiao Smart Logistics Network Limited                            | 2014             | Lin Wan is the CEO of Cainiao Smart Logistics Network Limited. He joined Alibaba in **2014** and has been instrumental in advancing Cainiao's global logistics capabilities  **[0000950170-24-063767_baba-20240331.htm:268]** **[0000950170-24-063767_baba-20240331.htm:272]** .                                                                                                                                                                                           |
| Luyuan Fan       | Chairman and CEO, Digital Media and Entertainment Group                 | November 2018    | Luyuan Fan is the Chairman and CEO of the Digital Media and Entertainment Group at Alibaba Group. He has been a member of the Alibaba Partnership and served as president of the Digital Media and Entertainment Group since **November 2018**  **[0000950170-24-063767_baba-20240331.htm:268]** **[0000950170-24-063767_baba-20240331.htm:272]** .                                                                                                                       |

8238b23c14c8214d1cd6ba27babebd39bc7903e564a4fba960c337e2cd9ec316

- **Alibaba reported a significant 56% decline in free cash flow** in the quarter, mainly due to increased expenditure on AI infrastructure investments and working capital changes related to the planned reduction of direct sales businesses.  **[BABA_3399098_14]**
- **Capital expenditures more than doubled year-over-year in Q1**, driven by investments in AI, with management expecting a similar level of investment in the coming quarters. This increased CapEx could impact profitability in the near term.  **[BABA_3399098_16]**
- **There is a widening gap between GMV growth and customer management revenue (CMR) growth**, with CMR increasing only 1% despite high single-digit GMV growth. This indicates a **decline in take rate** and potential challenges in monetizing the core e-commerce business.  **[BABA_3399098_13]** **[BABA_3399098_8]**

f038c0b97c07150516f74bed0eed6c2cbf592fbb292e8b11d59678dc0869efea

- **Widening losses in the International Digital Commerce (AIDC) segment due to increased investments.** AIDC reported a loss of **around RMB 3 billion** in the quarter, attributed to rapid growth in the AliExpress Choice model, increased marketing spending, and investments in key markets like the Middle East. The company plans to continue investing heavily in this segment, potentially leading to further losses.  **[BABA_3372161_12]** **[BABA_3372161_14]**
- **Delays in potential IPOs of key business units like Freshippo and Cainiao due to challenging market conditions.** Management indicated they are not in a hurry to proceed with these IPOs, which could delay unlocking value from these businesses and impact investor sentiment.  **[BABA_3372161_7]**
- **Declining take rate in the Taobao Tmall Group (TTG), leading to potential pressure on profitability.** The overall take rate dropped slightly due to a mix shift towards price-competitive products, as consumers showed increased appetite for such products. Management acknowledged the drop but indicated they are not too concerned.  **[BABA_3372161_6]**

daced55561fbdc7bcdb96e1a76d5d43455f54d537649c3eadeb0916391946f95

- **Accelerating Growth in Cloud Business Driven by AI Demand:** Alibaba's Cloud Intelligence Group reported **7% revenue growth** in the quarter, with **triple-digit year-over-year growth** in AI-related product revenue for the fifth consecutive quarter.  **[BABA_3409099_10]**  The company is investing aggressively in AI infrastructure to capture the **explosive growth in demand for AI-driven cloud services**, positioning itself as a leading cloud service provider for AI in China.  **[BABA_3409099_14]**
- **Stabilization and Potential Increase in Take Rate for Core E-commerce Business:** Taobao and Tmall Group's take rate has **stabilized**, supported by the implementation of a **0.6% software service fee** and increased merchant adoption of AI-powered marketing tools like **Shenzhen T**.  **[BABA_3409099_12]**  There is significant potential headroom for increasing the take rate further, which could contribute positively to revenue growth.  **[BABA_3409099_7]**
- **Strong Performance in Key Shopping Events and Positive Macroeconomic Outlook:** Alibaba achieved robust GMV growth during the **11-11 Global Shopping Festival**, exceeding both merchants' and the company's expectations.  **[BABA_3409099_6]**  The company is optimistic about the government's macro stimulus policies, expecting them to have a **positive long-term economic impact**, driving consumption and benefiting Alibaba's core businesses.  **[BABA_3409099_6]**

cb0e992b0574bc1d0f1ae676b1419a09323ca11a37763fe33a554271b0cf05fe

- **Strong AI-driven growth in Alibaba Cloud:** Alibaba Cloud is experiencing strong and sustained demand for AI products and solutions, expecting revenue from external customers to return to **double-digit growth in the second half of the fiscal year**, with more than half of the expected growth driven by **AI products**. The company is investing heavily in AI infrastructure with high ROI as servers are fully utilized immediately.  **[BABA_3399098_10]** ,  **[BABA_3399098_16]**
- **Rapid growth and profitability in international commerce:** Alibaba International Digital Commerce Group (AIDC) maintained rapid growth with overall revenue increasing **32% year-over-year**, primarily driven by cross-border business. **Lazada achieved monthly EBITDA profitability for the first time in July**, reinforcing confidence to enhance efficiency and profitability while preserving market share.  **[BABA_3399098_9]**
- **Improved monetization in core e-commerce platforms:** Taobao and Tmall achieved **high single-digit GMV growth**, and management expects customer management revenue growth to gradually align with GMV growth as they implement new monetization tools like **Quanzhantui** and **technology service fees**, which will help stabilize and improve take rates over the next few quarters.  **[BABA_3399098_13]** ,  **[BABA_3399098_8]**

75171518be3d03d4030a70beabe2c6617849b6124742972c41cfcc4175ef07bc

1. **Take Rate Outlook**  
   **Q:** What's your view on future take rates; potential increases?  
   **A:** Our take rate is now stable, with significant potential to increase compared to the market average. While there's room to grow, we'll take a balanced approach to ensure merchants' operational health, providing relief and optimizing policies to support them.  **[BABA_3409099_7]** **[BABA_3409099_11]** 

2. **Impact of New Service Fee**  
   **Q:** Will the new 0.6% service fee boost CMR growth?  
   **A:** The **0.6% software service fee**, now charged for a full quarter, contributes positively to take rate.  **[BABA_3409099_7]** **[BABA_3409099_12]**  However, new low-monetization models offset this effect. We expect overall take rate to remain stable, with CMR growth balancing these factors.  **[BABA_3409099_7]** **[BABA_3409099_12]** 

3. **Investment Strategy and EBITDA Impact**  
   **Q:** How will investments affect Taobao and Tmall Group's EBITDA?  
   **A:** We're investing in strengthening capabilities, user experience, and merchant support, including AI technologies.  **[BABA_3409099_8]** **[BABA_3409099_12]**  As we're in an investment phase, **EBITDA may fluctuate** in upcoming quarters, but we're focused on long-term growth.  **[BABA_3409099_8]** 

4. **Cloud Business Profitability**  
   **Q:** What's the outlook for cloud profitability amid price cuts?  
   **A:** Despite recent price reductions, our cloud revenue is accelerating with increased profitability.  **[BABA_3409099_10]**  We view price cuts as investments to attract users, leading to greater adoption of our full cloud stack and improved scale benefits.  **[BABA_3409099_10]** 

5. **AI Investments and CapEx**  
   **Q:** How do you view ROI on AI-related CapEx spending?  
   **A:** We're aggressively investing in AI infrastructure due to explosive demand in both the short and long term.  **[BABA_3409099_12]** **[BABA_3409099_14]**  We see this as a **historic opportunity** with high certainty of continued growth in AI inferencing needs.  **[BABA_3409099_12]** **[BABA_3409099_14]** 

6. **Competitive Impact on Merchants**  
   **Q:** Will lower competitor fees draw merchants away?  
   **A:** We prioritize merchant rights and offer the best operational environment.  **[BABA_3409099_11]**  While competitors may reduce fees, we provide value through balanced take rates and support, minimizing the risk of losing merchants.  **[BABA_3409099_11]** 

7. **Shareholder Returns and Buybacks**  
   **Q:** Do you plan to increase share buybacks using swap programs?  
   **A:** We executed **$10 billion** in buybacks, primarily on the U.S. line, and are exploring various financing options to continue returning value to shareholders, including potential programs like those from the PBOC.  **[BABA_3409099_13]** 

8. **User Growth via WeChat Pay**  
   **Q:** How will interoperability with WeChat Pay affect user growth?  
   **A:** Allowing WeChat Pay on Taobao and Tmall opens significant potential for user acquisition.  **[BABA_3409099_8]** **[BABA_3409099_9]**  We expect noticeable increases in monthly active consumers over time, driving incremental GMV growth.  **[BABA_3409099_8]** 

9. **Macroeconomic Outlook**  
   **Q:** What's your view on consumption trends into 2025?  
   **A:** Recent monetary and fiscal stimulus measures, including trade-in programs and subsidies, are starting to stimulate sales growth.  **[BABA_3409099_6]** **[BABA_3409099_11]**  We expect these policies to have a positive impact on overall consumption moving forward.  **[BABA_3409099_6]** **[BABA_3409099_11]** 

10. **Impact of Subsidies on Sales**  
    **Q:** How significant are trade-in subsidies to GMV growth?  
    **A:** Trade-in subsidies launched since September have substantially accelerated growth in categories like electronics and appliances.  **[BABA_3409099_11]**  Different regions may extend subsidies to more categories, contributing significantly to sales.  **[BABA_3409099_11]** 

11. **Live Streaming E-commerce Strategy**  
    **Q:** How does slowing live streaming growth affect your strategy?  
    **A:** While some platforms see slowing growth, we've experienced strong increases in live streaming, especially during **11-11**. We're leveraging our strong brand partnerships to enhance live streaming commerce effectively.  **[BABA_3409099_9]** 

12. **Cloud AI Demand Breakdown**  
    **Q:** Is AI revenue from model training or inferencing?  
    **A:** Currently, demand is strong for both model training and inferencing.  **[BABA_3409099_14]**  Over time, we expect **inferencing** to account for a larger share of growth, with AI applications expanding across industries.  **[BABA_3409099_14]** 

13. **Merchant Supply Strategy**  
    **Q:** Will you focus more on brands or white-label goods?  
    **A:** We'll cater to consumer preferences by providing both branded and white-label goods.  **[BABA_3409099_9]**  With new payment options attracting diverse users, we'll ensure appropriate supply across categories to meet demand.  **[BABA_3409099_9]** 

14. **AI Agents and Workflow Automation**  
    **Q:** How do you see AI agents and workflow automation developing?  
    **A:** AI technologies are advancing similarly in China as in the U.S., with companies developing AI agents to automate workflows.  **[BABA_3409099_14]**  Investments in **GPUs** are foundational to drive massive AI model adoption.  **[BABA_3409099_14]** 

f6b9d27546af3ef520e3d8d2b38d5fe8cdfddaaaf74d6fadad766398c5e26c80

- **Increasing investments in user experience and AI infrastructure may pressure EBITDA margins for Taobao and Tmall Group.** The company is in an investment phase, focusing on enhancing user experience, supply diversity, and AI technologies, which is expected to cause EBITDA to fluctuate over the next few quarters.  **[BABA_3409099_8]**
- **Competitive pressures are causing concerns over take rates and merchant retention.** Competitors are reducing rates and operating burdens for merchants, potentially attracting them away from Alibaba. While Alibaba sees room to increase take rates, it aims to balance this with merchant satisfaction, which may limit revenue growth.  **[BABA_3409099_11]**
- **Price reductions in cloud services to attract users may impact future profitability.** Alibaba has reduced prices for its cloud services, such as the Kuvan API, to attract more users, which could affect the profitability of its cloud business despite increasing demand for AI services.  **[BABA_3409099_10]**

50f5e1c34787c12f3392ec392963882fc74826bd87dcca95b8606e49f5949d32

- **Customer Management Revenue (CMR) growth is lagging behind Gross Merchandise Volume (GMV) growth, with CMR increasing only **5%** despite **double-digit** GMV growth, and management expects the gap to persist for several quarters as new monetization products are rolled out slowly.**  **[BABA_3388850_10]** **[BABA_3388850_8]**
- **Alibaba's international e-commerce business (AIDC) is experiencing increased losses, with adjusted EBITA loss widening to **RMB 4.1 billion** from **RMB 2.2 billion** in the same quarter last year, due to significant investments in new business models like AE Choice, which will take several quarters to improve unit economics.**  **[BABA_3388850_10]** **[BABA_3388850_3]**
- **The cloud business is undergoing a transition, with revenue growth impacted by phasing out low-margin project-based businesses, and while management expects double-digit growth driven by public cloud and AI offerings, profit margins from AI products require ongoing long-term investment, indicating potential pressure on near-term profitability.**  **[BABA_3388850_9]**

22b2758545c1925ca0b0bbc2390003c672a39b6c9d85b10e36ac077eb36020b2

- **Alibaba's core e-commerce platforms, Taobao and Tmall, have achieved double-digit GMV growth**, driven by successful investments in enhancing user experience, merchandise competitiveness, and price competitiveness, indicating a regain in market share in China's competitive e-commerce market.  **[BABA_3388850_8]** **[BABA_3388850_11]**
- **Alibaba Cloud is expected to return to double-digit revenue growth in the second half of the fiscal year**, propelled by strong demand for AI-related products and services, with management noting that **AI-related revenue accelerated and continued to record triple-digit growth year-over-year**.  **[BABA_3388850_9]** **[BABA_3388850_12]**
- **Alibaba's development of its proprietary AI large language model, Tongyi, and its tight integration with Alibaba Cloud positions the company uniquely to capitalize on AI opportunities**, as no other company combines cloud and AI as major businesses simultaneously, creating a significant opportunity to attract developers and drive future growth.  **[BABA_3388850_12]**

e1918fa5800df8a571718e3a2955f751d440b09182b7cb277f5fea49f59d45a2

- **Alibaba sees significant potential for growth in Southeast Asia and plans to continue investing appropriately to deepen market penetration.**  **[BABA_3372161_15]**
- **The company is effectively balancing efficiency against growth, aiming to narrow losses while maintaining growth in key markets like Indonesia.**  **[BABA_3372161_15]**
- **Alibaba's compliance with regulatory requirements has limited the impact of government restrictions on its operations in Indonesia.**  **[BABA_3372161_15]**

e49fd803205494c1c18ef718051dd6bdaa33a6c152f86b5e4cafb80e19e07200

Alibaba Group Holding Ltd (BABA)

Financials