3 6 Ke·2025-11-27 09:57Core Insights - Alibaba's determination to invest heavily in core areas remains unshaken despite short-term performance fluctuations and a downgrade in profitability [1][5] Financial Performance - For Q2 of FY2026, Alibaba reported a significant decline in operating profit, down 85% year-on-year to 5.365 billion RMB, and adjusted EBITA decreased by 78% to 9.073 billion RMB [1] - The company's net cash flow from operating activities was 10.099 billion RMB, a 68% decrease compared to 31.438 billion RMB in the same period of 2024 [3][4] - Free cash flow turned negative at 21.84 billion RMB, contrasting with a positive inflow of 13.735 billion RMB in the same quarter of 2024, primarily due to increased investments in instant retail and cloud infrastructure [3][4] Investment Strategy - Alibaba's capital expenditure for the quarter was 31.5 billion RMB, with approximately 120 billion RMB allocated to AI and cloud infrastructure over the past four quarters [3][4] - The company previously announced a plan to invest 380 billion RMB in AI and related cloud computing sectors over the next three years, with indications that this amount may be insufficient [2][7][8] AI and Cloud Growth - Alibaba Cloud achieved a record revenue growth of 34% year-on-year, reaching 39.824 billion RMB, with AI-related product revenues showing triple-digit growth for nine consecutive quarters [6] - CEO Wu Yongming highlighted strong demand for Alibaba Cloud's AI servers, noting that the current supply is lagging behind customer orders, suggesting a potential increase in future investments [1][8] Product Development and Market Positioning - Alibaba is focusing on the consumer market for AI development, launching a personal AI assistant named "Qianwen" and a general AI assistant "Lingguang" from Ant Group [9][10] - The company aims to create a seamless ecosystem where Qianwen can integrate various services, such as ticket booking and restaurant reviews, enhancing user experience [18][24]