BABA(US:BABA) Sou Hu Cai Jing·2025-12-04 13:36Core Insights - Alibaba Group disclosed a significant asset transaction in its mid-term report for the fiscal year 2026, completing the sale of 85% equity in the Turkish food delivery platform Trendyol GO for $700 million, resulting in approximately 6 billion RMB in gains, which will be reinvested into AI and cloud computing core businesses [2][3] Group 1: Transaction Details - The agreement for the sale was signed in May 2025, and the transaction was completed in September 2025 [2] - Trendyol GO, a key player in Turkey's instant retail market, processed over 200 million orders last year, with a transaction volume of $2 billion, marking a 50% year-on-year growth [2] - Alibaba retains a 15% stake in Trendyol GO, allowing for future collaboration while realizing the value of a core asset [2] Group 2: Strategic Focus - This transaction aligns with Alibaba's "focus on core" strategy, emphasizing AI-driven and cloud-first initiatives [3] - The company has initiated a 380 billion RMB investment in AI infrastructure, aiming to increase the energy efficiency of Alibaba Cloud's global data centers by tenfold by 2032 [3] - Alibaba has been regularly divesting non-core assets, including traditional retail businesses and stakes in various companies, to streamline its asset structure [3] Group 3: Performance and Market Position - Alibaba Cloud reported a 34% year-on-year revenue growth in the latest quarter, with AI-related product revenues experiencing triple-digit growth for nine consecutive quarters, indicating the effectiveness of the strategic focus [3] - Analysts suggest that the local lifestyle segment represented by Trendyol GO has low relevance to Alibaba's core AI and cloud direction, making the divestment a strategic move to enhance resource allocation in key areas [3]