2025-11-25 10:45Financial Performance - Revenue for the quarter ended September 30, 2025, was RMB 247.795 billion (USD 34.808 billion), representing a year-over-year increase of 5%. On a comparable basis, revenue growth would be 15% excluding disposed businesses[5]. - Operating profit for the quarter was RMB 5.365 billion (USD 0.754 billion), a decrease of 85% year-over-year, primarily due to a reduction in adjusted EBITA, which fell 78% to RMB 9.073 billion (USD 1.274 billion)[5]. - Net profit attributable to ordinary shareholders was RMB 20.990 billion (USD 2.948 billion), a 53% decline year-over-year, mainly due to the decrease in operating profit[5]. - The diluted earnings per American depositary share were RMB 8.75 (USD 1.23), with a non-GAAP diluted earnings per share of RMB 4.36 (USD 0.61), both reflecting a 71% year-over-year decline[5]. - Free cash flow was a net outflow of RMB 21.840 billion (USD 3.068 billion), compared to a net inflow of RMB 13.735 billion in the same period last year, primarily due to increased investments in instant retail and cloud infrastructure[5]. - Operating profit for the six months ended September 30, 2025, was RMB 40,353 million (USD 5,668 million), accounting for 8% of revenue, a 43% decrease from RMB 71,235 million (15%) in the same period of 2024[88]. - Net profit for the six months ended September 30, 2025, was RMB 62,994 million (USD 8,849 million), a decrease from RMB 67,569 million in the same period of 2024, primarily due to reduced operating profit[97]. Revenue Breakdown - Revenue was RMB 495.447 billion (USD 69.595 billion), a year-on-year increase of 3%. On a comparable basis, revenue growth would be 12% excluding disposed businesses[10]. - Customer management revenue increased by 10% year-on-year, indicating strong growth in core business areas[5]. - Instant retail revenue surged by 60% to RMB 22,906 million (USD 3,217 million) compared to RMB 14,321 million in 2024, driven by the launch of "Taobao Flash Sale" in April 2025[26]. - The international retail business generated revenue of RMB 28,068 million (USD 3,943 million), a 10% increase from RMB 25,618 million in 2024[29]. - The cloud intelligence group reported a 30% revenue increase to RMB 73,222 million[64]. - Revenue from Alibaba's China e-commerce group increased by 12% year-over-year to RMB 272,650 million, excluding disposed businesses[63]. Cost and Expenses - Operating costs for the three months ended September 30, 2025, were RMB 150,781 million (USD 21,180 million), accounting for 60.8% of revenue, compared to 60.9% in the same period of 2024[37]. - Product development expenses for the three months ended September 30, 2025, were RMB 17,095 million (USD 2,401 million), representing 6.9% of revenue, up from 6.0% in the same period of 2024, due to increased investment in technology development[38]. - Sales and marketing expenses for the three months ended September 30, 2025, were RMB 66,496 million (USD 9,341 million), accounting for 26.8% of revenue, significantly up from 13.7% in the same period of 2024, driven by investments in user experience for Alibaba's China e-commerce group[38]. - General and administrative expenses for the three months ended September 30, 2025, were RMB 7,380 million (USD 1,037 million), accounting for 3.0% of revenue, down from 4.1% in the same period of 2024, due to improved cost control measures[39]. Cash Flow and Investments - Free cash flow for the six months ended September 30, 2025, was a net outflow of RMB 40,655 million (USD 5,711 million), contrasting with an inflow of RMB 31,107 million in 2024, mainly due to increased spending on cloud infrastructure and instant retail[102]. - The net cash used in investing activities for the three months ended September 30, 2025, was RMB 69,652 million (USD 9,784 million), reflecting an increase in short-term investments and capital expenditures[58]. - Cash and cash equivalents, short-term investments, and other financial investments totaled RMB 573,889 million (USD 80,614 million) as of September 30, 2025, down from RMB 597,132 million[101]. Strategic Initiatives - The company is focusing on building an AI technology and infrastructure platform, with AI-related product revenue growing for the ninth consecutive quarter at triple-digit rates[5]. - Instant retail strategy has significantly expanded business scale and improved user experience, with approximately 3,500 Tmall brands integrating their offline stores into the instant retail business by October 31, 2025[9]. - Capital expenditures in AI and cloud infrastructure over the past four quarters amounted to approximately RMB 120 billion[5]. Shareholder Returns - The company repurchased 17 million shares for a total of USD 253 million, with an authorized buyback amount of USD 19.1 billion remaining[15]. - The company repurchased a total of 72,733,488 ordinary shares on the New York Stock Exchange for a total consideration of USD 1.046 billion during the six months ending September 30, 2025[149]. Market Position - Alibaba Cloud holds a 35.8% market share in China's AI cloud market, indicating strong leadership in the sector[14]. - The company completed the sale of 85% equity in Trendyol GO for approximately USD 700 million (RMB 5 billion) in May 2025[139]. Employee Metrics - The total number of employees as of September 30, 2025, was 126,661, up from 123,711 as of June 30, 2025[60].