2025-12-04 00:19Financial Performance - Revenue for the six months ended September 30, 2025, was RMB 495,447 million (USD 69,595 million), representing a 3% increase compared to RMB 479,739 million in the same period of 2024[7] - Adjusted EBITDA for the same period was RMB 62,991 million (USD 8,848 million), reflecting a 36% decrease year-over-year[7] - Operating profit decreased to RMB 40,353 million (USD 5,668 million), a decline of 43% compared to the previous year[7] - Net profit attributable to ordinary shareholders was RMB 64,106 million (USD 9,005 million), down 6% year-over-year[7] - The adjusted EBITDA margin decreased from 21% to 13%[7] - The diluted earnings per share decreased to RMB 3.34 (USD 0.47), a decline of 5% compared to the previous year[7] - The company reported a significant decrease in adjusted EBITA, which contributed to the overall decline in operating profit[7] - The adjusted EBITA for the six months ended September 30, 2025, was RMB 47,917 million (USD 6,731 million), a decrease of 44% compared to RMB 85,596 million in the same period of 2024, mainly due to investments in instant retail, user experience, and technology[34] - The total comprehensive income for the six months ended September 30, 2025, was RMB 57,874 million, down from RMB 64,280 million in 2024, a decrease of approximately 9.5%[146] Revenue Breakdown - Alibaba's e-commerce business revenue for the six months ended September 30, 2025, was RMB 221,510 million (USD 31,116 million), an increase of 9% compared to RMB 202,988 million in the same period of 2024[12] - Customer management revenue grew by 10%, primarily due to an increase in the take rate[13] - Instant retail revenue reached RMB 37,690 million (USD 5,294 million), a significant increase of 37% compared to RMB 27,517 million in the same period of 2024, driven by the launch of "Taobao Flash Sale"[15] - The revenue from the cloud intelligence group was RMB 73,222 million (USD 10,285 million), representing a 30% increase from RMB 56,159 million in the same period of 2024, mainly due to growth in public cloud services[22] - International retail business revenue increased by 15% to RMB 56,463 million (USD 7,931 million) compared to RMB 49,309 million in the same period of 2024, driven by growth from AliExpress and other international operations[19] - The international wholesale business revenue grew by 12% to RMB 13,077 million (USD 1,837 million) from RMB 11,656 million in the same period of 2024, mainly due to increased revenue from value-added services related to cross-border business[20] Expenses and Costs - Operating costs for the six months ended September 30, 2025, were RMB 287,210 million (USD 40,344 million), accounting for 58.0% of revenue, down from 60.5% in the same period of 2024, primarily due to the disposal of low-margin direct operations and improved operational efficiency[27] - Product development expenses for the six months ended September 30, 2025, were RMB 32,096 million (USD 4,509 million), representing 6.5% of revenue, an increase from 5.7% in the same period of 2024, attributed to increased investment in technology development[27] - Sales and marketing expenses for the six months ended September 30, 2025, were RMB 119,674 million (USD 16,811 million), accounting for 24.2% of revenue, up from 13.6% in the same period of 2024, mainly due to investments in user experience for Alibaba's China e-commerce group[28] - General and administrative expenses for the six months ended September 30, 2025, were RMB 14,778 million (USD 2,076 million), representing 3.0% of revenue, down from 4.8% in the same period of 2024, primarily due to improved cost control measures[28] Cash Flow and Investments - Net cash flow from operating activities for the six months ended September 30, 2025, was RMB 30,771 million (USD 4,322 million), a 53% decrease from RMB 65,074 million in 2024[47] - Free cash flow for the six months ended September 30, 2025, was an outflow of RMB 40,655 million (USD 5,711 million), compared to an inflow of RMB 31,107 million in 2024[47] - The net cash flow used in investing activities for the six months ended September 30, 2025, was RMB 51,324 million (USD 7,209 million), primarily reflecting capital expenditures of RMB 70,177 million (USD 9,858 million) and an increase in short-term investments and other financial investments of RMB 11,119 million (USD 1,562 million), partially offset by net cash inflows from investment and acquisition activities of RMB 29,710 million (USD 4,173 million)[48] - The company believes its current cash levels and operating cash flow are sufficient to meet anticipated cash needs over the next 12 months[64] Debt and Financing - The company issued zero-coupon convertible bonds totaling approximately HKD 12 billion due in 2032 in July 2025[64] - In September 2025, the company issued zero-coupon unsecured senior notes totaling approximately $3.2 billion due in 2032[64] - The syndicated loan size was reduced from $4 billion to $3.17 billion after repaying $830 million in January 2025[65] - The interest rate for the revised loan agreement was lowered to SOFR plus 66 basis points, effective November 28, 2025[65] - The maturity date for the revolving credit facility was extended to September 30, 2028, with an option to further extend to September 30, 2030[65] Corporate Governance - The board of directors includes independent members with extensive experience in finance and corporate governance, such as Wu Gangping, who has served as the chairman of the audit committee since December 2022[94] - The audit committee is currently composed of Wu Gangping, Wan Ling Martello, and Shan Weijian, with Wu serving as the chairman[98] - The compensation committee is led by Yang Zhiyuan and includes Wu Gangping and Kabir Misra[99] - The nomination and corporate governance committee is chaired by Li Yunlian, with Yang Zhiyuan as a member[100] - The compliance and risk committee is chaired by Li Yunlian and includes Wu Gangping, Kabir Misra, and J. Michael Evans[102] Shareholder Information - The total number of shares outstanding is 19,088,280,284 as of September 30, 2025[110] - The CEO holds a total of 275,744,064 shares, representing 1.44% of the total shares outstanding as of September 30, 2025[106] - The company has granted unvested restricted stock units corresponding to 76,667 shares to the CEO[109] - The company repurchased a total of 73,300,000 shares on the NYSE during the reporting period, with a total cost of $1 billion[126] - The company did not recommend the distribution of an interim dividend for the reporting period[133] Strategic Initiatives - The company is focusing on sustainability initiatives, with plans to invest $JJ million in green technologies by 2025[10] - Alibaba is investing heavily in new technologies, with a budget of $DD billion allocated for R&D in AI and cloud computing[4] - The company plans to expand its market presence in Southeast Asia, targeting a growth rate of EE% in that region over the next year[5] - The launch of a new e-commerce platform is expected to contribute an additional $GG billion in revenue by the end of 2024[7]