BABA(09988)2023-12-22 11:00Financial Performance - Revenue for the six months ended September 30, 2023, was RMB 458.95 billion (USD 62.90 billion), representing an 11% year-over-year increase[3]. - Net profit attributable to ordinary shareholders was RMB 62.04 billion (USD 8.50 billion), compared to a net loss of RMB 2.17 billion in the same period of 2022, primarily due to a decrease in fair value losses on equity investments and increased operating profit[4]. - Operating profit for the same period was RMB 76.07 billion (USD 10.43 billion), reflecting a 52% year-over-year increase[17]. - Free cash flow increased by 46% year-over-year to RMB 84.31 billion (USD 11.56 billion), compared to RMB 57.88 billion in the same period of 2022[5]. - Adjusted EBITDA for the six months was RMB 101.29 billion (USD 13.88 billion), a 20% increase year-over-year[17]. - Diluted earnings per American depositary share were RMB 24.08 (USD 3.30), a significant increase from RMB 0.10 in the same period of 2022[18]. - Non-GAAP diluted earnings per share were RMB 4.13 (USD 0.57), reflecting a 34% year-over-year increase[18]. - The operating margin improved to 17% from 12% year-over-year, indicating enhanced operational efficiency[20]. - The company reported a significant increase in net cash flow from operating activities, amounting to RMB 94.54 billion (USD 12.99 billion)[5]. - The adjusted EBITA for the period was RMB 88.22 billion (USD 12.09 billion), representing a 25% year-over-year growth[17]. Revenue Breakdown - Revenue from China's retail business for the six months ended September 30, 2023, was RMB 202,388 million (USD 27,739 million), an increase of 8% compared to RMB 186,859 million in the same period of 2022[28]. - International wholesale business revenue for the same period was RMB 10,518 million (USD 1,442 million), up 5% from RMB 10,035 million in 2022, driven by growth in value-added services related to cross-border business[31]. - Cainiao Group's revenue increased by 29% year-over-year to RMB 45,987 million (USD 6,303 million) for the six months ended September 30, 2023, primarily due to growth in cross-border logistics fulfillment solutions and domestic consumer logistics services[32]. - Cloud Intelligence Group reported revenue of RMB 52,713 million (USD 7,225 million), a 3% increase from RMB 51,391 million in the same period of 2022, driven by the consolidation of Alibaba's businesses[34]. - For the six months ended September 30, 2023, the revenue from China's retail business was RMB 54,066 million (USD 7,410 million), an increase of 14% compared to RMB 47,557 million in the same period of 2022[50]. - The international retail business revenue for the six months ended September 30, 2023, was RMB 36,116 million (USD 4,950 million), representing a 66% increase from RMB 21,732 million in the same period of 2022[52]. - The local lifestyle group's revenue for the six months ended September 30, 2023, was RMB 30,014 million (USD 4,114 million), a 22% increase from RMB 24,512 million in the same period of 2022[53]. Cost and Expenses - The company's operating costs for the six months ended September 30, 2023, were RMB 282,011 million, representing 62% of total revenue, a decrease from 64% in the same period of 2022[39]. - Product development expenses for the six months ended September 30, 2023, were RMB 24,683 million (USD 3,383 million), accounting for 5% of revenue, down from 7% in the same period of 2022[40]. - The general and administrative expenses for the six months ended September 30, 2023, were RMB 16,705 million (USD 2,290 million), accounting for 4% of revenue, down from 5% in the same period of 2022[62]. - Sales and marketing expenses for the six months ended September 30, 2023, were RMB 52,532 million (USD 7,200 million), maintaining 11% of revenue, consistent with the same period in 2022[86]. Profitability Metrics - The adjusted EBITA for the six months ended September 30, 2023, was RMB 96,396 million (USD 13,212 million), a 6% increase from RMB 90,854 million in the same period of 2022[51]. - The adjusted EBITA for the local lifestyle group showed a loss of RMB 4,546 million (USD 623 million), an improvement from a loss of RMB 6,162 million in the same period of 2022[54]. - The adjusted EBITA for the entertainment group for the six months ended September 30, 2023, was a loss of RMB 138 million (USD 19 million), significantly improved from a loss of RMB 1,269 million in the same period of 2022[57]. - The adjusted EBITDA for the six months ended September 30, 2023, was RMB 101,289 million (USD 13,883 million), a 20% increase from RMB 84,425 million in the same period of 2022[67]. - The net profit for the six months ended September 30, 2023, was RMB 59,696 million (USD 8,182 million), a significant improvement from a net loss of RMB 2,169 million in the same period of 2022[99]. Cash Flow and Investments - The net cash flow from operating activities for the six months ended September 30, 2023, was RMB 94,537 million (USD 12,957 million), a 17% increase from RMB 80,981 million in the same period of 2022[79]. - Free cash flow for the six months ended September 30, 2023, was RMB 84,309 million (USD 11,556 million), a 46% increase from RMB 57,882 million in the same period of 2022[79]. - Cash flow used in investing activities for the six months ended September 30, 2023, was RMB 11,166 million (USD 1,530 million), primarily due to increases in other financial investments and capital expenditures[104]. - The net cash used in investing activities for the six months ended September 30, 2023, was RMB 11,166 million (USD 1,530 million), a decrease from RMB 35,755 million in the same period of 2022[117]. Shareholder Information - The company repurchased approximately 7% of its shares for employee incentive plans, maintaining a 33% equity stake in Ant Group[98]. - The total cash dividend for the fiscal year 2023 is approximately USD 2.5 billion, with a dividend of USD 0.125 per ordinary share or USD 1.00 per ADS[105]. - The diluted earnings per share for the six months ended September 30, 2023, was RMB 3.01 (USD 0.41), a growth of 2,849% from RMB 0.10 in the same period of 2022[77]. - The non-GAAP diluted earnings per ADS for the same period was RMB 33.00 (USD 4.52), up 34% from RMB 24.64 in the prior year[101]. Assets and Liabilities - The total liabilities as of September 30, 2023, amounted to RMB 641,544 million (USD 87,931 million), reflecting an increase from RMB 630,123 million[116]. - The total equity as of September 30, 2023, was RMB 1,159,718 million (USD 158,953 million), compared to RMB 1,113,063 million as of March 31, 2023[116]. - As of September 30, 2023, the total assets of Alibaba Group amounted to RMB 1,811,590 million, an increase from RMB 1,753,044 million as of March 31, 2023, representing a growth of approximately 3.34%[143]. - The total current liabilities slightly decreased to RMB 389,810 million from RMB 385,351 million, indicating a marginal increase of 1.2%[143]. - The total equity attributable to shareholders was RMB 982,140 million as of September 30, 2023, reflecting a decrease from RMB 1,113,063 million, indicating a decline of about 11.8%[152]. Strategic Focus and Future Outlook - The company is focusing on new product development and market expansion strategies to enhance its competitive edge in the industry[148]. - Future guidance indicates a continued emphasis on technological innovation and potential mergers and acquisitions to drive growth[148]. - The company is focusing on expanding its market presence and enhancing product development strategies[154]. - Future guidance indicates a cautious outlook due to market conditions and competitive pressures[154]. - The company acknowledges various risks, including geopolitical tensions and regulatory uncertainties, that could impact its performance[134].