BABA(US:BABA) Xin Lang Cai Jing·2025-11-27 22:16Core Viewpoint - Alibaba is experiencing a "restart year" in 2023, as indicated by its mid-term financial results for the fiscal year 2026, which show mixed performance but also signs of resilience and potential growth in its core e-commerce and AI sectors [1][3]. Financial Performance - Alibaba reported revenue of 247.795 billion RMB for the fiscal year 2026, reflecting a 5% year-on-year increase [2]. - Operating profit decreased significantly by 85% to 5.365 billion RMB, while net profit attributable to ordinary shareholders fell by 52% to 20.990 billion RMB [2]. - The adjusted EBITDA also saw a decline of 64%, indicating challenges in profitability despite revenue growth [2]. E-commerce Business - The Chinese e-commerce segment generated 132.578 billion RMB in revenue, marking a 16% increase year-on-year, showcasing a stable recovery in this core area [4][5]. - Instant retail, particularly through Taobao Flash Sale, has shown remarkable growth, with revenue increasing by 60% [5][6]. - The integration of offline stores into the instant retail model has improved unit economics and user engagement, leading to a return of double-digit user growth on the Taobao app [6][8]. AI Development - Alibaba's cloud intelligence group reported revenue of 398.24 billion RMB, with a year-on-year growth rate of 34%, driven by increased adoption of AI-related products [9][11]. - The launch of the "Qianwen" AI application has gained significant traction, achieving over 10 million downloads within a week and becoming one of the fastest-growing AI applications globally [11][13]. - This strategic shift towards consumer-facing AI marks a departure from Alibaba's previous focus on B2B AI services, positioning the company to leverage its AI capabilities across various consumer applications [14][17]. Industry Trends - The e-commerce sector is undergoing a transformation with the integration of AI, as seen during the recent Double 11 shopping festival, where AI tools significantly enhanced user experience and sales efficiency [18][20]. - However, the rapid adoption of AI has also led to challenges, including issues with product authenticity and the emergence of gray market practices, prompting platforms to implement stricter regulations [28][29]. Conclusion - Alibaba is in a critical phase of transformation, aiming to evolve from a traditional e-commerce company into a comprehensive AI-driven entity, with ongoing challenges and opportunities in both its financial performance and market positioning [29].