Sou Hu Cai Jing·2025-11-25 15:50Core Insights - Alibaba's financial performance for the quarter ending September 30, 2025, shows a revenue of RMB 247.795 billion (USD 34.808 billion), representing a year-on-year growth of 5%. Excluding disposed businesses, the revenue growth would be 15% [1][4] - The operating profit significantly declined by 85% to RMB 5.365 billion (USD 754 million), primarily due to a reduction in adjusted EBITA, which fell by 78% to RMB 9.073 billion (USD 1.274 billion) [1][5] - Net profit attributable to ordinary shareholders was RMB 20.990 billion (USD 2.948 billion), a decrease of 52% year-on-year, mainly due to the drop in operating profit [3][5] Financial Performance - Revenue for the six months ending September 30, 2025, was RMB 495.447 billion (USD 69.595 billion), with a year-on-year growth of 3%. On a comparable basis, the growth would be 12% [4][18] - Operating profit for the same period was RMB 40.353 billion (USD 5.668 billion), down 43% year-on-year, attributed to a decrease in adjusted EBITA [5][18] - The net profit for the six months was RMB 62.994 billion (USD 8.849 billion), a decline of 7% year-on-year [5][18] Cash Flow and Investments - Net cash flow from operating activities was RMB 100.99 billion (USD 14.19 billion), down 68% from RMB 314.38 billion in the previous year [3][6] - Free cash flow showed a net outflow of RMB 21.84 billion (USD 3.068 billion), compared to a net inflow of RMB 137.35 billion in the same period last year [3][6] - As of September 30, 2025, cash and other liquid investments totaled RMB 573.889 billion (USD 80.614 billion) [3][6] Business Segments - The revenue from the Instant Retail segment for the quarter was RMB 22.9 billion, reflecting a year-on-year increase of 60% [9][17] - The Cloud Intelligence Group reported revenue of RMB 39.824 billion (USD 5.594 billion), with a year-on-year growth of 34% [8][9] - The "All Other" business segment saw a revenue decline of 25%, primarily due to the disposal of certain businesses and a drop in revenue from Cainiao [10][20] Strategic Developments - Approximately 3,500 Tmall brands have integrated their offline stores into the Instant Retail business as of October 31, 2025 [7] - Alibaba is focusing on AI initiatives, with significant investments in user experience and technology, which have impacted profitability in the short term [17][20] - The CFO indicated that the third quarter represented a peak in investment for the flash purchase business, with expectations for reduced spending in the upcoming quarter [20]