阿里巴巴(09988) - 2026 Q1 - 季度业绩

Company Information and Announcement Overview Basic Announcement Information This announcement details the unaudited results of Alibaba Group Holding Limited for the quarter ended June 30, 2025 - Company Name: Alibaba Group Holding Limited[2] - Stock Codes: 9988 (HKD counter) and 89988 (RMB counter); NYSE code BABA[2] - Announcement Date: August 29, 2025[3] - Reporting Period: Unaudited results for the three months ended June 30, 2025 (quarter ended June 2025)[3] Board of Directors As of the announcement date, the Board of Directors is chaired by Mr Joseph C TSAI and includes several executive and independent directors - Chairman of the Board: Mr Joseph C TSAI[3] - Directors: Mr Eddie Yongming WU, Mr J Michael EVANS, Ms Maggie Wei WU[3] - Independent Directors: Mr Jerry YANG, Ms Wan Ling MARTELLO, Mr Weijian SHAN, Ms Irene Yun-Lien LEE, Mr Albert Kong Ping NG, Mr Kabir MISRA[3] CEO and CFO Statements The CEO and CFO highlighted strong growth driven by consumer and AI+Cloud strategies, with significant investments in instant retail and AI - CEO Eddie Yongming WU: The company achieved strong growth by focusing on its Consumer and AI+Cloud strategies, with significant investments in instant retail driving record-high monthly active consumers and daily orders, while Cloud Intelligence Group's revenue growth accelerated[5] - CFO Toby HONG: Core business revenue grew robustly, with customer management revenue up 10% and Cloud Intelligence Group up 26%, while AI-related product revenue saw triple-digit growth for the eighth consecutive quarter and AIDC's losses narrowed significantly[5] Quarterly Performance Summary Consolidated Financial Performance The Group's revenue grew 2% to RMB 247.652 billion, while net income surged 76% due to investment gains - Revenue Growth: Revenue was RMB 247.652 billion, a 2% year-over-year increase; on a comparable basis excluding disposed businesses, revenue grew 10%[6] - Operating Income Decline: Operating income was RMB 34.988 billion, a 3% decrease year-over-year, mainly due to a decrease in adjusted EBITA[6] - Net Income Surge: Net income attributable to ordinary shareholders was RMB 43.116 billion, and net income was RMB 42.382 billion, a 76% increase year-over-year, primarily driven by changes in the market prices of equity investments and a gain from the disposal of Trendyol's local services business[6] - Non-GAAP Net Income Decline: Non-GAAP net income was RMB 33.51 billion, a decrease of 18% year-over-year[6] - Negative Free Cash Flow: Free cash flow was a net outflow of RMB 18.815 billion, compared to a net inflow of RMB 17.372 billion in the same period last year, mainly due to increased spending on cloud infrastructure and investments in "Taobao Flash-Go"[7] Key Financial Metrics Key metrics show a 2% revenue increase to RMB 247.652 billion, a 3% operating income decrease, and a 76% net income surge driven by investment gains Key Financial Metrics | Metric | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | 243,236 | 247,652 | 34,571 | 2% | | Operating income | 35,989 | 34,988 | 4,884 | (3)% | | Operating margin | 15% | 14% | | | | Adjusted EBITDA | 51,161 | 45,735 | 6,384 | (11)% | | Adjusted EBITA | 45,035 | 38,844 | 5,422 | (14)% | | Net income | 24,022 | 42,382 | 5,916 | 76% | | Net income attributable to ordinary shareholders | 24,269 | 43,116 | 6,019 | 78% | | Non-GAAP net income | 40,691 | 33,510 | 4,678 | (18)% | | Diluted earnings per ADS | 9.89 | 17.98 | 2.51 | 82% | | Non-GAAP diluted earnings per ADS | 16.44 | 14.75 | 2.06 | (10)% | - Reason for Operating Income Decrease: Primarily due to a decrease in adjusted EBITA, partially offset by reduced amortization of intangible assets, lower share-based compensation expense, and a one-time provision in the prior year[16] - Reason for Adjusted EBITA Decrease: Mainly attributable to investments in "Taobao Flash-Go" as well as user experience, user acquisition, and technology, partially offset by double-digit revenue growth from Alibaba China Commerce Group and improved operating efficiency across several businesses[16] - Reason for Net Income Increase: Primarily due to changes in the market prices of equity investments and a gain from the disposal of Trendyol's local services business, partially offset by the decrease in operating income[16] Business and Strategic Progress Strategic Adjustments and Segment Reporting Structure The Group integrated Taotian Group, Ele.me, and Fliggy into Alibaba China Commerce Group and simplified its reporting structure - Strategic Integration: Completed the strategic integration of Taotian Group, Ele.me, and Fliggy to form Alibaba China Commerce Group, aiming to advance the "user-first" strategy and enhance user experience[9] - Simplified Reporting Structure: Cainiao, Amap, and Digital Media and Entertainment Group (rebranded as Orca Entertainment) were reclassified into the "All Other" segment[9] - New Reporting Segments: Alibaba China Commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All Other[9] Alibaba China Commerce Group The group focused on instant retail with "Taobao Flash-Go," driving a 25% increase in Taobao app's monthly active consumers - Investment in Instant Retail: Launched "Taobao Flash-Go" service to strengthen the Taobao app's leadership in instant retail, driving a 25% year-over-year increase in the Taobao app's monthly active consumers[10] - Customer Management Revenue Growth: Increased by 10% year-over-year to RMB 89.252 billion, primarily driven by a higher take rate from new basic software service fees and increased penetration of "All-site Marketing"[10] - 88VIP Membership Growth: The number of 88VIP members continued to grow by double digits, exceeding 53 million, as the company enhances its value proposition and retention[11] Revenue Performance Total revenue for Alibaba China Commerce Group grew 10% year-over-year to RMB 140.072 billion, driven by strong growth across its segments Alibaba China Commerce Group: Segment Revenue | Business | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | Customer Management | 81,088 | 89,252 | 12,459 | 10% | | Direct Sales, Logistics and Others | 27,434 | 29,325 | 4,093 | 7% | | E-commerce Business Total | 108,522 | 118,577 | 16,552 | 9% | | Instant Retail | 13,196 | 14,784 | 2,064 | 12% | | China Wholesale Commerce | 5,952 | 6,711 | 937 | 13% | | Alibaba China Commerce Group Total | 127,670 | 140,072 | 19,553 | 10% | - Driver of Customer Management Revenue Growth: Primarily driven by an increase in take rate[23] - Driver of Instant Retail Revenue Growth: Mainly attributable to order volume growth from the "Taobao Flash-Go" service[24] Adjusted EBITA Adjusted EBITA decreased by 21% year-over-year to RMB 38.389 billion due to increased investments in "Taobao Flash-Go" and user experience - Adjusted EBITA Decrease: Adjusted EBITA was RMB 38.389 billion, a decrease of 21% year-over-year[26] - Reason for Decrease: Primarily due to increased investments in "Taobao Flash-Go" as well as user experience, user acquisition, and technology[26] Alibaba International Digital Commerce Group (“AIDC”) AIDC's revenue grew 19% to RMB 34.741 billion, with losses narrowing significantly as it approached break-even - Revenue Growth: Revenue increased by 19% year-over-year to RMB 34.741 billion, primarily driven by the strong performance of its cross-border businesses[12] - Significant Loss Reduction: Losses narrowed significantly year-over-year and quarter-over-quarter, approaching break-even[12] - Improved Operating Efficiency: The unit economics of AliExpress's Choice business continued to improve significantly, while Trendyol's international business also saw quarter-over-quarter improvement due to logistics optimization and investment efficiency[12] Revenue Performance AIDC's total revenue grew 19% year-over-year to RMB 34.741 billion, fueled by strong performance in both retail and wholesale commerce Alibaba International Digital Commerce Group: Segment Revenue | Business | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | International Retail Commerce | 23,691 | 28,395 | 3,964 | 20% | | International Wholesale Commerce | 5,602 | 6,346 | 886 | 13% | | Alibaba International Digital Commerce Group Total | 29,293 | 34,741 | 4,850 | 19% | - Driver of International Retail Commerce Growth: Primarily driven by revenue growth from AliExpress and Trendyol[27] - Driver of International Wholesale Commerce Growth: Mainly due to an increase in revenue from value-added services related to cross-border business[28] Adjusted EBITA AIDC's adjusted EBITA loss narrowed by 98% to RMB 59 million, driven by significant operational efficiency improvements across its businesses - Adjusted EBITA Loss Narrowed: Loss of RMB 59 million, a 98% improvement year-over-year from a loss of RMB 3,706 million in 2024[29] - Reason for Improvement: Primarily due to significant improvements in AliExpress's operational efficiency, as well as efficiency gains in several businesses including Alibaba.com, Lazada, and Trendyol[29] Cloud Intelligence Group The group's revenue grew 26% to RMB 33.398 billion, driven by public cloud growth and strong adoption of AI products - Accelerated Revenue Growth: Revenue increased by 26% year-over-year to RMB 33.398 billion, with overall revenue (excluding inter-segment revenue) also accelerating to 26% growth[13] - AI-driven Growth: Growth was primarily driven by public cloud revenue, which included increased adoption of AI-related products[13] - Strong AI Revenue: Revenue from AI-related products achieved triple-digit year-over-year growth for the eighth consecutive quarter[13] Revenue Performance Cloud Intelligence Group's revenue grew 26% year-over-year to RMB 33.398 billion, fueled by public cloud and increased AI product adoption Cloud Intelligence Group: Segment Revenue | Business | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | Cloud Intelligence Group | 26,549 | 33,398 | 4,662 | 26% | - Growth Driver: Primarily driven by revenue growth from public cloud business, which included increased adoption of AI-related products[30] Adjusted EBITA Adjusted EBITA grew 26% year-over-year to RMB 2.954 billion, reflecting public cloud revenue growth and improved operational efficiency - Adjusted EBITA Growth: Adjusted EBITA was RMB 2.954 billion, a 26% increase year-over-year[31] - Growth Driver: Primarily due to revenue growth from public cloud business and improved operational efficiency[31] All Other The "All Other" segment revenue decreased 28% to RMB 58.599 billion, mainly due to the disposal of Sun Art and Intime - Revenue Decrease: Revenue decreased by 28% year-over-year to RMB 58.599 billion[32] - Reason for Decrease: Primarily due to a decrease in revenue from the disposal of Sun Art and Intime, as well as a decrease in revenue from Cainiao[32] - Partial Growth: Revenue from Freshippo, Alibaba Health, and Amap recorded growth[32] Revenue Performance The "All Other" segment revenue declined 28% year-over-year to RMB 58.599 billion, mainly due to business disposals and lower Cainiao revenue All Other: Segment Revenue | Business | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | All Other | 81,354 | 58,599 | 8,180 | (28)% | - Reason for Decrease: Primarily due to a decrease in revenue from the disposal of Sun Art and Intime, as well as a decrease in revenue from Cainiao[32] Adjusted EBITA The segment's adjusted EBITA loss widened by 31% to RMB 1.415 billion, primarily due to increased investments in technology businesses - Adjusted EBITA Loss Widened: Loss of RMB 1.415 billion, a 31% increase year-over-year from a loss of RMB 1,077 million in 2024[33] - Reason for Widened Loss: Primarily due to increased investments in technology businesses[33] Other Financial Results Costs and Expenses Total costs and expenses were RMB 212.813 billion, with a notable increase in sales and marketing expenses due to investments in "Taobao Flash-Go" - Cost of Revenue Ratio Decreased: Cost of revenue as a percentage of revenue decreased from 60.1% to 55.1%, mainly due to the disposal of Sun Art and Intime, the scale-down of low-margin direct sales businesses, and improved monetization and operating efficiency[35] - Sales and Marketing Expenses Surged: Sales and marketing expenses increased by 62.9% to RMB 53.178 billion, with the ratio to revenue rising from 13.4% to 21.5%, primarily due to investments in "Taobao Flash-Go" and user experience and acquisition for Alibaba China Commerce Group[36] - General and Administrative Expenses Decreased: General and administrative expenses decreased by 44.3% to RMB 7.398 billion, with the ratio to revenue falling from 5.5% to 3.0%, mainly due to a one-time provision for a shareholder class action lawsuit in the prior year[37] - Share-based Compensation Expense Decreased: Total share-based compensation expense decreased by 14% to RMB 3.545 billion, mainly due to an increased grant proportion of long-term cash incentives, which reduced the number of equity awards granted by Alibaba Group[38] Cost of Revenue Cost of revenue was RMB 136.429 billion, representing 55.1% of revenue, a 5.0 percentage point decrease year-over-year - Cost of Revenue: RMB 136,429 million (US$19,045 million)[35] - Percentage of Revenue: 55.1% (compared to 60.1% in the same quarter of 2024)[35] - Reason for Decrease: Disposal of Sun Art and Intime, scale-down of low-margin direct sales businesses, and improved monetization and operating efficiency[35] Product Development Expenses Product development expenses were RMB 15.001 billion, representing 6.1% of revenue, a 0.6 percentage point increase year-over-year - Product Development Expenses: RMB 15,001 million (US$2,094 million)[36] - Percentage of Revenue: 6.1% (compared to 5.5% in the same quarter of 2024)[36] Sales and Marketing Expenses Sales and marketing expenses were RMB 53.178 billion, representing 21.5% of revenue, an 8.1 percentage point increase year-over-year - Sales and Marketing Expenses: RMB 53,178 million (US$7,423 million)[36] - Percentage of Revenue: 21.5% (compared to 13.4% in the same quarter of 2024)[36] - Reason for Increase: Primarily due to increased investments in "Taobao Flash-Go" and user experience and acquisition for Alibaba China Commerce Group[36] General and Administrative Expenses General and administrative expenses were RMB 7.398 billion, representing 3.0% of revenue, a 2.5 percentage point decrease year-over-year - General and Administrative Expenses: RMB 7,398 million (US$1,033 million)[37] - Percentage of Revenue: 3.0% (compared to 5.5% in the same quarter of 2024)[37] - Reason for Decrease: Primarily due to a one-time provision for a shareholder class action lawsuit in the prior year[37] Share-based Compensation Expense Total share-based compensation expense decreased by 14% to RMB 3.545 billion due to a higher grant proportion of long-term cash incentives - Total Share-based Compensation Expense: RMB 3,545 million (US$495 million), a 14% decrease year-over-year[37] - Reason for Decrease: A higher grant proportion of long-term cash incentives, which reduced the number of equity awards granted by Alibaba Group[38] Share-based Compensation Expense by Type | Incentive Type | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | Alibaba Group's equity awards | 3,091 | 2,321 | 324 | (25)% | | Others (Subsidiaries and Ant Group) | 1,040 | 1,224 | 171 | 18% | | Total | 4,131 | 3,545 | 495 | (14)% | Amortization and Impairment of Intangible Assets Amortization and impairment of intangible assets decreased by 55% to RMB 807 million as certain intangible assets were fully amortized - Amortization and Impairment of Intangible Assets: RMB 807 million (US$113 million), a 55% decrease year-over-year[39] - Reason for Decrease: Primarily due to certain intangible assets being fully amortized[39] Operating Income and Adjusted EBITA/EBITDA Operating income decreased 3% to RMB 34.988 billion, with adjusted EBITA down 14%, mainly due to increased investments - Operating Income: RMB 34,988 million (US$4,884 million), a 3% decrease year-over-year[40] - Operating Margin: 14% (compared to 15% in the same quarter of 2024)[40] - Adjusted EBITDA: RMB 45,735 million (US$6,384 million), an 11% decrease year-over-year[41] - Adjusted EBITA: RMB 38,844 million (US$5,422 million), a 14% decrease year-over-year[41] - Reason for Decrease: Primarily attributable to investments in "Taobao Flash-Go" and user experience, user acquisition, and technology, partially offset by double-digit revenue growth from Alibaba China Commerce Group and improved operating efficiency across several businesses[41] Interest and Investment Income, Net Net interest and investment income was RMB 17.376 billion, a significant improvement from a net loss of RMB 1.478 billion last year - Interest and Investment Income, Net: RMB 17,376 million (US$2,426 million), compared to a net loss of RMB 1,478 million in the same quarter of 2024[43] - Reason for Significant Improvement: Primarily due to changes in the market prices of equity investments and a gain from the disposal of Trendyol's local services business[43] Income Tax Expenses Income tax expenses for the quarter were RMB 8.865 billion, a decrease from RMB 10.063 billion in the prior year - Income Tax Expenses: RMB 8,865 million (US$1,237 million), compared to RMB 10,063 million in the same quarter of 2024[46] Share of Results of Equity Method Investees Share of results of equity method investees was RMB 1.013 billion, a 33% decrease year-over-year, mainly due to lower profit contribution from Ant Group - Share of Results of Equity Method Investees: RMB 1,013 million (US$141 million), a 33% decrease year-over-year[47] Share of Results of Equity Method Investees | Item | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Ant Group | 3,917 | 1,547 | 216 | | Others | (588) | 455 | 63 | | Impairment losses | (2,157) | – | – | | Others(1) | 333 | (989) | (138) | | Total | 1,505 | 1,013 | 141 | - Reason for Ant Group's Decreased Profit Contribution: Primarily due to its investments in new growth initiatives and technology, as well as a decrease in the fair value of certain investments[48] Net Income and Non-GAAP Net Income Net income surged 76% to RMB 42.382 billion, driven by investment gains, while non-GAAP net income decreased 18% to RMB 33.510 billion - Net Income: RMB 42,382 million (US$5,916 million), a 76% increase year-over-year[49] - Reason for Net Income Increase: Primarily due to changes in the market prices of equity investments and a gain from the disposal of Trendyol's local services business, partially offset by the decrease in operating income[49] - Non-GAAP Net Income: RMB 33,510 million (US$4,678 million), an 18% decrease year-over-year[49] Diluted EPS/ADS Diluted earnings per ADS surged 82% to RMB 17.98, while non-GAAP diluted earnings per ADS decreased 10% to RMB 14.75 - Diluted Earnings per ADS: RMB 17.98 (US$2.51), an 82% increase year-over-year[51] - Non-GAAP Diluted Earnings per ADS: RMB 14.75 (US$2.06), a 10% decrease year-over-year[51] - Diluted Earnings per Share: RMB 2.25 (US$0.31 or HK$2.47), an 82% increase year-over-year[51] - Non-GAAP Diluted Earnings per Share: RMB 1.84 (US$0.26 or HK$2.02), a 10% decrease year-over-year[51] Cash Flow and Liquidity Cash and Liquid Investments As of June 30, 2025, total cash and other liquid investments stood at RMB 585.663 billion, a decrease of RMB 11.469 billion from March 31 - Total Cash and Other Liquid Investments: RMB 585,663 million (US$81,755 million)[53] - Quarterly Decrease: A decrease of RMB 11,469 million[53] - Reason for Decrease: Net cash outflow from free cash flow of RMB 18,815 million, cash outflow for investment and acquisition activities of RMB 8,429 million, and cash used in share repurchases of RMB 5,840 million[53] Operating Cash Flow and Free Cash Flow Net cash from operating activities was RMB 20.672 billion, while free cash flow was a net outflow of RMB 18.815 billion - Net Cash Provided by Operating Activities: RMB 20,672 million (US$2,886 million), a 39% decrease year-over-year[54] - Free Cash Flow: A net outflow of RMB 18,815 million (US$2,626 million), compared to a net inflow of RMB 17,372 million in the same quarter of 2024[54] - Reason for Free Cash Flow Decrease: Primarily attributable to increased investments in cloud business infrastructure and "Taobao Flash-Go"[54] Investing Cash Flow Net cash provided by investing activities was RMB 18.328 billion, mainly reflecting a decrease in short-term investments and proceeds from disposals - Net Cash Provided by Investing Activities: RMB 18,328 million (US$2,558 million)[55] - Major Cash Inflows: A decrease in short-term investments of RMB 35,652 million, cash proceeds from disposal of investments of RMB 17,457 million, and a decrease in other treasury investments of RMB 12,364 million[55] - Major Cash Outflows: Capital expenditures of RMB 38,676 million and cash outflow for investment and acquisition activities of RMB 8,429 million[55] Financing Cash Flow Net cash used in financing activities was RMB 2.731 billion, primarily reflecting cash used in share repurchases - Net Cash Used in Financing Activities: RMB 2,731 million (US$381 million)[56] - Major Cash Outflow: Cash used in share repurchases of RMB 5,840 million[56] - Major Cash Inflow: Net proceeds from bank borrowings of RMB 3,287 million[56] Share Repurchases and Employee Information Share Repurchases The company repurchased 56 million ordinary shares for US$815 million, with US$19.3 billion remaining under its repurchase authorization - Repurchases this Quarter: Repurchased 56.0 million ordinary shares (equivalent to 7.0 million ADSs) for US$815 million[14] - Repurchase Authorization: As of June 30, 2025, US$19.3 billion remained under the share repurchase authorization, which is effective through March 2027[14] Employees As of June 30, 2025, the total number of employees was 123,711, a slight decrease from the previous quarter - Total Employees: 123,711 (as of June 30, 2025)[57] - Quarter-over-Quarter Change: A decrease from 124,320 as of March 31, 2025[57] Notes to Financial Statements Unaudited Consolidated Income Statements The consolidated income statement shows a 2% revenue increase to RMB 247.652 billion and a 76% surge in net income to RMB 42.382 billion Unaudited Consolidated Income Statements | Metric | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Revenue | 243,236 | 247,652 | 34,571 | | Cost of revenue | (146,106) | (136,429) | (19,045) | | Operating income | 35,989 | 34,988 | 4,884 | | Net income | 24,022 | 42,382 | 5,916 | | Net income attributable to ordinary shareholders | 24,269 | 43,116 | 6,019 | | Diluted earnings per ADS | 9.89 | 17.98 | 2.51 | - Revenue Growth: RMB 247,652 million, a 2% increase year-over-year[69] - Net Income Growth: RMB 42,382 million, a 76% increase year-over-year[69] Unaudited Consolidated Balance Sheets As of June 30, 2025, total assets were RMB 1,847.085 billion, with total liabilities at RMB 753.766 billion Unaudited Consolidated Balance Sheets | Metric | March 31, 2025 (RMB Million) | June 30, 2025 (RMB Million) | June 30, 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Total assets | 1,804,227 | 1,847,085 | 257,843 | | Cash and cash equivalents | 145,487 | 183,120 | 25,563 | | Short-term investments | 228,826 | 191,737 | 26,766 | | Total liabilities | 714,121 | 753,766 | 105,222 | | Total shareholders' equity | 1,009,858 | 1,013,672 | 141,503 | - Total Assets: RMB 1,847,085 million[70] - Cash and Cash Equivalents: RMB 183,120 million[70] Unaudited Condensed Consolidated Statements of Cash Flows For the quarter, net cash from operating activities was RMB 20.672 billion, while net cash from investing activities was RMB 18.328 billion Unaudited Condensed Consolidated Statements of Cash Flows | Metric | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 33,636 | 20,672 | 2,886 | | Net cash provided by (used in) investing activities | (35,829) | 18,328 | 2,558 | | Net cash used in financing activities | (19,582) | (2,731) | (381) | | Cash, cash equivalents, restricted cash and escrow receivables at end of period | 265,308 | 224,579 | 31,350 | - Operating Cash Flow: RMB 20,672 million[72] - Investing Cash Flow: RMB 18,328 million[72] Reconciliations of Non-GAAP Financial Measures Reconciliations of Net Income to Adjusted EBITA and Adjusted EBITDA Net income of RMB 42.382 billion reconciles to an adjusted EBITA of RMB 38.844 billion and an adjusted EBITDA of RMB 45.735 billion Reconciliation of Net Income to Adjusted EBITA and Adjusted EBITDA | Item | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Net income | 24,022 | 42,382 | 5,916 | | Operating income | 35,989 | 34,988 | 4,884 | | Share-based compensation expense | 4,109 | 3,194 | 446 | | Amortization and impairment of intangible assets and others | 1,792 | 662 | 92 | | Provision for shareholder class action lawsuit | 3,145 | – | – | | Adjusted EBITA | 45,035 | 38,844 | 5,422 | | Depreciation and impairment of property and equipment, etc | 6,126 | 6,891 | 962 | | Adjusted EBITDA | 51,161 | 45,735 | 6,384 | Reconciliations of Net Income to Non-GAAP Net Income Net income of RMB 42.382 billion reconciles to a non-GAAP net income of RMB 33.510 billion after adjustments Reconciliation of Net Income to Non-GAAP Net Income | Item | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Net income | 24,022 | 42,382 | 5,916 | | Share-based compensation expense | 4,109 | 3,194 | 446 | | Amortization and impairment of intangible assets | 1,792 | 807 | 113 | | Provision for shareholder class action lawsuit | 3,145 | – | – | | (Gains) losses on deemed disposals/disposals/revaluation of investments | 4,581 | (13,128) | (1,832) | | Impairment of investments and others | 4,311 | 1,013 | 141 | | Income tax effects | (1,269) | (758) | (106) | | Non-GAAP net income | 40,691 | 33,510 | 4,678 | Reconciliations of Diluted EPS/ADS to Non-GAAP Diluted EPS/ADS Diluted earnings per ADS of RMB 17.98 reconciles to a non-GAAP diluted earnings per ADS of RMB 14.75 Reconciliation of Diluted EPS/ADS to Non-GAAP Diluted EPS/ADS | Item | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Net income attributable to ordinary shareholders – diluted | 24,220 | 43,025 | 6,006 | | Non-GAAP adjustments to net income attributable to ordinary shareholders | 16,045 | (7,734) | (1,080) | | Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted EPS/ADS | 40,265 | 35,291 | 4,926 | | Diluted earnings per share | 1.24 | 2.25 | 0.31 | | Non-GAAP diluted earnings per share | 2.05 | 1.84 | 0.26 | | Diluted earnings per ADS | 9.89 | 17.98 | 2.51 | | Non-GAAP diluted earnings per ADS | 16.44 | 14.75 | 2.06 | Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow Net cash from operating activities of RMB 20.672 billion reconciles to a free cash flow outflow of RMB 18.815 billion Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | Item | 2024 (RMB Million) | 2025 (RMB Million) | 2025 (USD Million) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 33,636 | 20,672 | 2,886 | | Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to corporate campuses) | (11,939) | (38,629) | (5,392) | | Less: Changes in the buyer protection fund deposits | (4,325) | (858) | (120) | | Free cash flow | 17,372 | (18,815) | (2,626) | Other Information Webcast and Conference Call Information Management held a conference call on August 29, 2025, to discuss the financial results, with a webcast available on the company's website - Conference Date: August 29, 2025[58] - Access: Registration links for English and Chinese sessions were provided, with a live webcast and archive available on the investor relations website[58][59] About Alibaba Group Alibaba Group is a global technology company focused on e-commerce and cloud computing, providing digital infrastructure and services to businesses - Core Businesses: Focused on e-commerce and cloud computing[60] - Services Provided: Offers digital infrastructure, logistics, efficiency tools, and marketing for merchants, brands, and retailers; provides leading cloud infrastructure, services, and collaboration tools for enterprises[60] Investor Relations Contact Contact information is provided for the investor relations director and media contacts - Investor Relations Contact: Lydia Liu (Director of Investor Relations)[61] - Media Contacts: Cathy Yan, Ivy Ke[61] Exchange Rate Information This announcement uses an exchange rate of RMB 7.1636 to US$1.00 and RMB 0.91195 to HK$1.00 as of June 30, 2025 - RMB to USD Exchange Rate: RMB 7.1636 to US$1.00 (as of June 30, 2025)[61] - RMB to HKD Exchange Rate: RMB 0.91195 to HK$1.00 (as of June 30, 2025)[61] Safe Harbor Statements This announcement contains forward-looking statements that involve inherent risks and uncertainties, and actual results may differ materially - Legal Basis: Made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995[62] - Risk Factors: Competition, investment risks, strategic transaction risks, economic fluctuations, geopolitical tensions, and adjustments to shareholder return plans[62] - Update Obligation: The company does not undertake any obligation to update any forward-looking statement, except as required under applicable law[62] Non-GAAP Financial Measures The Group uses non-GAAP measures such as adjusted EBITDA and free cash flow to supplement its GAAP financial statements - Non-GAAP Measures Used: Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted EPS/ADS, and free cash flow[63] - Purpose: To identify underlying business trends, provide useful information on operating performance and liquidity, and enhance the overall understanding of past performance and future prospects[64] - Important Note: These measures should not be considered in isolation or as a substitute for GAAP measures and may not be comparable to similar measures used by other companies[65]