BABA(HK:09988) Sou Hu Cai Jing·2025-11-26 14:05Core Insights - Alibaba reported a revenue of 247.795 billion RMB for Q2 of FY2026, marking a 5% year-on-year increase, with a 15% increase when excluding disposed businesses [1] - The company is heavily investing in AI and instant retail, leading to a significant drop in net profit by 53% to 20.612 billion RMB and a 68% decrease in net cash flow from operating activities [4][6] - Alibaba's cloud revenue grew by 34% year-on-year, driven by increased adoption of AI-related products [3] Revenue and Growth - Alibaba's customer management revenue increased by 10% to 78.927 billion RMB, primarily due to improved take rates and the introduction of new software service fees [2] - Instant retail revenue reached 22.906 billion RMB, a 60% increase compared to the same period last year, largely attributed to the launch of "Taobao Flash Purchase" [2] - The cloud intelligence group's revenue was 39.824 billion RMB, reflecting a 34% year-on-year growth, driven by public cloud business [3] Investment and Profitability - The company invested approximately 120 billion RMB in AI and cloud infrastructure over the past four quarters, indicating a focus on long-term growth despite short-term profit fluctuations [1][6] - Adjusted EBITA decreased by 78% due to investments in instant retail and user experience [1] - Free cash flow showed a net outflow of 21.840 billion RMB, compared to a net inflow of 13.735 billion RMB in the previous year [4] Strategic Focus - Alibaba's CEO emphasized the importance of building AI technology and infrastructure, aiming to create a large consumer platform that integrates life services and e-commerce [6][11] - The company plans to maintain high levels of investment in AI infrastructure, with a potential increase beyond the previously announced 380 billion RMB over three years [6] - The dual focus on AI to B and AI to C strategies aims to enhance core business synergies and drive sustainable growth [7][10] Future Outlook - Experts suggest that while AI presents significant potential, current monetization remains limited, with many applications still in the user acquisition phase [10] - Alibaba's integration of AI into its ecosystem is expected to enhance operational efficiency and customer engagement [8][10] - The company is positioning itself to capture market share in the large consumer sector by integrating various business units and enhancing collaboration [11]