2023-02-23 11:50Financial Performance - For the quarter ended December 31, 2022, Alibaba Group reported revenue of RMB 247.76 billion (USD 35.92 billion), representing a year-over-year increase of 2%[4]. - Operating profit for the same quarter was RMB 35.03 billion (USD 5.08 billion), a significant year-over-year increase of 396% or RMB 27.96 billion, primarily due to a decrease in goodwill impairment related to the digital media and entertainment segment[5]. - Net profit attributable to ordinary shareholders was RMB 46.81 billion (USD 6.79 billion), reflecting a year-over-year increase of 138% or RMB 26.52 billion[6]. - The adjusted EBITA for the quarter increased by 16% year-over-year to RMB 52.05 billion (USD 7.54 billion)[5]. - The net cash flow from operating activities was RMB 87.37 billion (USD 12.67 billion), a 9% increase compared to RMB 80.37 billion in the same period last year[6]. - The company reported a diluted earnings per share of RMB 2.24 for the three months ended December 31, 2022, down from RMB 1.27 in the same period of 2021[120]. - Net profit for the three months ended December 31, 2022, was RMB 45,746 million (USD 6,633 million), a 138% increase from RMB 19,224 million in the same period of 2021[87]. - Non-GAAP net profit for the same period was RMB 49,932 million (USD 7,239 million), a 12% increase from RMB 44,624 million year-over-year[87]. Revenue Breakdown - The revenue from the China business segment was RMB 169,986 million, with a year-over-year growth of 2%[36]. - The international business segment reported revenue of RMB 19,465 million, reflecting a year-over-year increase of 74%[36]. - Revenue from the Chinese retail business for the three months ended December 31, 2022, was RMB 165,765 million (USD 24,034 million), a decrease of 1% from RMB 167,670 million in the same period of 2021[43]. - Direct sales and other revenue in the Chinese retail business increased by 10% to RMB 74,421 million (USD 10,790 million) for the three months ended December 31, 2022, compared to RMB 67,581 million in the same period of 2021[45]. - The local life services segment reported revenue of RMB 12,466 million (USD 1,909 million), accounting for 5% of total revenue, with a 6% year-over-year increase[42]. - Cainiao's revenue was RMB 13,078 million (USD 2,400 million), representing a 27% year-over-year increase[42]. - Cloud business revenue was RMB 19,539 million (USD 2,925 million), reflecting a 3% year-over-year increase[42]. - Digital media and entertainment revenue decreased by 6% to RMB 8,113 million (USD 1,100 million)[42]. Cost and Expenses - Operating costs amounted to RMB 150,005 million (USD 21,749 million), accounting for 61% of revenue, consistent with the same period in 2021[66]. - Research and development expenses for the same period were RMB 13,521 million (USD 1,960 million), maintaining a 6% revenue share, unchanged from 2021[67]. - Sales and marketing expenses were RMB 30,628 million (USD 4,441 million), representing 12% of revenue, down from 15% in the same period of 2021[68]. - General and administrative expenses totaled RMB 10,327 million (USD 1,497 million), accounting for 4% of revenue, stable compared to 2021[68]. - The total costs and expenses amounted to RMB 212,725 million, representing 86% of revenue, a decrease of 11% year-over-year[66]. Cash Flow and Investments - Free cash flow for the three months ended December 31, 2022, was RMB 81,514 million (USD 11,818 million), a 15% increase from RMB 71,022 million in the same period of 2021[93]. - Net cash used in investing activities for the same period was RMB 72,943 million (USD 10,576 million), reflecting increases in short-term investments and capital expenditures[94]. - Net cash used in financing activities was RMB 23,808 million (USD 3,452 million), primarily due to share repurchase expenditures of RMB 24,455 million (USD 3,546 million)[96]. - Cash and cash equivalents, short-term investments, and other financial investments amounted to RMB 539,216 million (USD 78,179 million) as of December 31, 2022, up from RMB 446,412 million on March 31, 2022[92]. Share Repurchase and Equity - The company repurchased 45.4 million American depositary shares worth approximately USD 3.3 billion under its share repurchase program[4]. - As of December 31, 2022, Alibaba repurchased approximately USD 3.3 billion worth of shares, totaling 45.4 million American Depositary Shares (equivalent to 363.3 million ordinary shares)[28]. Future Outlook - Alibaba Group expects consumer confidence and economic activity to continue to recover in the future, focusing on delivering growth for customers and sustainable long-term value for shareholders[4]. - The company plans to continue focusing on market expansion and new product development to drive future growth[30]. - The company aims to build future business infrastructure and envisions a long-term presence as a good company for 102 years[101]. Employee and Operational Metrics - The total number of employees as of December 31, 2022, was 239,740, down from 243,903 as of September 30, 2022[97]. - The effective tax rate for the three months ended December 31, 2022, was 13%, excluding the impact of equity incentive expenses and other adjustments[78]. Recognition and Achievements - Alibaba's cloud business received recognition as a leader among 11 public cloud service providers in China by Forrester in Q4 2022[17]. - During the Double 11 Global Shopping Festival, Cainiao achieved a peak daily order volume exceeding 18 million for home delivery services[15].