2023-08-10 10:36Financial Performance - Operating profit for the quarter ended June 30, 2023, was RMB 42.49 billion (USD 5.86 billion), a year-on-year increase of 70%[3] - Net cash flow from operating activities was RMB 45.31 billion (USD 6.25 billion), up 34% from RMB 33.87 billion in the same period of 2022[4] - Free cash flow for the quarter was RMB 39.09 billion (USD 5.39 billion), representing a 76% increase compared to RMB 22.17 billion in the same period of 2022[4] - For the three months ended June 30, 2023, the revenue was RMB 234,156 million (USD 32,292 million), representing a 14% increase compared to RMB 205,555 million in the same period of 2022[51] - Adjusted EBITDA for the same period was RMB 52,052 million (USD 7,178 million), a 27% increase from RMB 41,114 million in 2022[40] - Net profit for the three months ended June 30, 2023, was RMB 33,000 million (USD 4,551 million), up 63% from RMB 20,298 million in the same period of 2022[44] - The operating profit margin improved to 18% for the three months ended June 30, 2023, compared to 12% in the same period of 2022[51] - The net profit attributable to ordinary shareholders for the three months ended June 30, 2023, was RMB 34,332 million (USD 4,735 million), a 51% increase compared to RMB 22,739 million in the same period of 2022[72] - Non-GAAP net profit for the three months ended June 30, 2023, was RMB 44,922 million (USD 6,195 million), an increase of 48% compared to RMB 30,252 million in the same period of 2022[90] Revenue Breakdown - The total revenue of the Cloud Intelligence Group for the quarter was RMB 25.12 billion (USD 3.47 billion), a year-on-year growth of 4%[13] - The international retail business revenue for the quarter was RMB 17.14 billion (USD 2.36 billion), a 60% increase from RMB 10.74 billion in the same period of 2022[25] - The revenue for the entertainment group was RMB 5.38 billion (USD 742 million), reflecting growth in online entertainment and a strong recovery in offline entertainment[15] - Revenue for the cloud intelligence group for the three months ended June 30, 2023, was RMB 25,123 million (USD 3,465 million), a 4% increase from RMB 24,127 million in the same period of 2022[62] - For the three months ended June 30, 2023, revenue from the Chinese retail business was RMB 109,828 million (USD 15,146 million), an increase of 13% compared to RMB 97,423 million in the same period of 2022[177] - For the same period, Cainiao Group's revenue was RMB 23,164 million (USD 3,194 million), a growth of 34% from RMB 17,292 million year-over-year, driven by increases in international logistics and domestic consumer logistics services[183] Cost and Expenses - The total cost and expenses for the three months ended June 30, 2023, were RMB 191,666 million (USD 26,432 million), representing 82% of revenue, a decrease from 88% in the same period of 2022[34] - The product development expenses for the three months ended June 30, 2023, were RMB 10,465 million (USD 1,443 million), accounting for 4% of revenue, down from 7% in the same period of 2022[35] - Total operating costs for the three months ended June 30, 2023, were RMB 142,347 million (USD 19,631 million), accounting for 61% of revenue, down from 63% in the same period of 2022[189] Shareholder Information - The diluted earnings per American Depositary Share (ADS) for the three months ended June 30, 2023, was USD 0.23, reflecting a 56% increase compared to the same period of 2022[51] - The diluted earnings per share for the three months ended June 30, 2023, was RMB 1.66 (USD 0.23), compared to RMB 1.06 in the same period of 2022[73] - The diluted earnings per American Depositary Share for the three months ended June 30, 2023, was RMB 13.30 (USD 1.83), compared to RMB 8.51 in the same period of 2022[199] - Non-GAAP diluted EPS for the quarter was RMB 17.37 (USD 2.40), reflecting a year-over-year increase of 48%[135] Cash Flow and Liquidity - Operating cash flow for the three months ended June 30, 2023, was RMB 45,306 million (USD 6,248 million), up 34% from RMB 33,869 million in the same period of 2022[93] - The cash flow used in financing activities for the three months ended June 30, 2023, was RMB 24,636 million (USD 3,397 million), primarily reflecting cash outflows for share repurchases of RMB 22,151 million (USD 3,055 million)[76] - The company views free cash flow as a liquidity indicator, highlighting the cash available for strategic investments and acquisitions[83] - The company reported a free cash flow of RMB 39,089 million (USD 5,391 million) for the three months ended June 30, 2023, contributing to the increase in cash and cash equivalents[200] Organizational and Strategic Initiatives - The company has implemented a new organizational and governance structure to enhance operational efficiency and strategic planning[102] - The company plans to continue expanding its international and cross-border operations while managing a complex organizational structure[102] - The company emphasizes the importance of maintaining its ecosystem and trust status amid competitive and regulatory challenges[102] - The company aims to build future business facilities and envisions a platform where customers can meet, work, and live[99] Market and Product Developments - Alibaba Cloud's revenue growth was primarily driven by storage, networking, and AI-related products, with significant contributions from the financial services, education, power, and automotive sectors[144] - The company launched new features for its generative AI model and upgraded its audio transcription platform, enhancing its AI capabilities[145] - DingTalk integrated the capabilities of "Tongyi Qianwen" and opened testing to enterprise customers, enhancing AI capabilities for clients and ecosystem partners[168] - Youku's total subscription revenue grew 5% year-over-year, driven by an increase in average revenue per user and high-quality original content[169] Employee and Operational Metrics - The total number of employees as of June 30, 2023, was 228,675, down from 235,216 as of March 31, 2023[77] - The company reported a significant increase in cash and cash equivalents, totaling RMB 267,094 million as of June 30, 2023, compared to RMB 215,919 million at the end of the previous period[124]