BABA(US:BABA) Xin Lang Cai Jing·2025-08-30 11:22Core Viewpoint - Alibaba's Q1 financial report for the fiscal year 2026 shows a revenue of 247.65 billion yuan, a 2% year-on-year increase, but adjusted EBITA decreased by 14% to 38.84 billion yuan, indicating a shift towards high investment in core businesses like "AI + Cloud" and consumer spending [2][4] Group 1: Financial Performance - Alibaba's free cash flow turned into a net outflow of approximately 18.8 billion yuan, compared to a net inflow of about 17.4 billion yuan in the same period last year, attributed to increased cloud infrastructure spending and investments in Taobao Flash [2] - The adjusted EBITA for Alibaba's China e-commerce group was approximately 38.4 billion yuan, a year-on-year decline of 21%, while sales and marketing expenses rose to 53.18 billion yuan, accounting for 21.5% of revenue, an increase of about 20.4 billion yuan from the previous year [5][6] Group 2: Business Developments - Taobao Flash, Alibaba's instant retail service, achieved a monthly active user count of 300 million, with daily order peaks reaching 120 million and an average daily order volume of 80 million in August [4] - The integration of local life services into Taobao aims to enhance its competitive position against external traffic pressures, consolidating delivery and ride-hailing services [3] Group 3: Cloud Business - Alibaba Cloud's revenue grew by 26% to 33.4 billion yuan, with AI-related product revenue achieving triple-digit growth for the eighth consecutive quarter, and adjusted EBITA also increased by 26% [6][7] - Alibaba plans to maintain a three-year investment plan of 380 billion yuan in AI and cloud infrastructure, with Q1 capital expenditures reaching 38.6 billion yuan [8]