BABA(US:BABA) Sou Hu Cai Jing·2025-08-29 10:45Core Viewpoint - Alibaba Group reported a robust revenue growth of 10% year-on-year, excluding the impact of divested businesses, with a net profit increase of 76%, surpassing market expectations [1]. Financial Performance - For the quarter ended June 30, 2025, revenue reached RMB 247.65 billion (approximately USD 34.57 billion), reflecting a 2% year-on-year increase. On a same-store basis, revenue growth would be 10% [3]. - Operating income was RMB 34.99 billion (USD 4.88 billion), a decrease of 3% year-on-year, primarily due to a reduction in adjusted EBITA [2][3]. - Net income surged to RMB 42.38 billion (USD 6.01 billion), marking a 76% increase year-on-year, with diluted earnings per share rising by 82% to RMB 2.25 [2][3]. Segment Performance - Alibaba Cloud revenue grew by 26% year-on-year, achieving a three-year high, with AI-related product revenue experiencing triple-digit growth for eight consecutive quarters [3][4]. - The instant retail business showed significant progress, contributing to a 25% year-on-year increase in monthly active consumers on the Taobao app [3]. Cash Flow and Investments - Net cash flow from operating activities was RMB 20.67 billion (USD 2.89 billion), down 39% from RMB 33.64 billion in the same period last year [4]. - Free cash flow recorded a net outflow of RMB 18.81 billion (USD 2.63 billion), compared to a net inflow of RMB 17.37 billion in the previous year, primarily due to increased cloud infrastructure spending and investments in instant retail [4]. Strategic Focus - The CEO emphasized a focus on consumer and AI + cloud strategies, highlighting strong growth and significant investments in instant retail, which have yielded positive results [4][5]. - The CFO noted that core business revenue growth was strong, with customer management revenue increasing by 10% and the cloud intelligence group revenue up by 26% [5].