Core Viewpoint - Meituan Shanguo has established the first quality fruit cutting brand alliance in the instant retail industry, aiming to enhance interaction between quality brands and consumers while improving service standards and product quality in the fruit cutting sector [1] Group 1: Alliance Formation - The alliance includes over ten quality fruit cutting brands such as Qieguo NOW, Xian Guo Party, and others [1] - The initiative is part of a broader strategy to elevate industry standards and optimize the ecosystem within the fruit cutting market [1] Group 2: Service Upgrades - The alliance has launched the "Anxin Fruit Cut" service plan, which includes several service upgrades [1] - Key initiatives include the "Mingchu Liangzao" action, "Bad Must Compensate" service, and enhancements to the purchasing experience for specific fruit products [1]

Financial Data and Key Metrics Changes - Total revenue, excluding SunART and InTime, grew by 10% year over year, with adjusted EBITA increasing by 36% year over year [4][17] - Non-GAAP net income was RMB 29.8 billion, an increase of 22%, while GAAP net income was RMB 12 billion, reflecting a significant increase due to market changes from equity investments [18] - Operating cash flow increased by 18% to RMB 27.5 billion, but free cash flow decreased by 76% due to increased cloud infrastructure expenditure [18][19] Business Line Data and Key Metrics Changes - Alibaba Cloud's revenue growth accelerated to 18% this quarter, with AI-related product revenue maintaining triple-digit year-over-year growth for the seventh consecutive quarter [5][22] - Revenue from Taobao and Tmall Group was RMB 101.4 billion, an increase of 9%, with customer management revenue rising by 12% [19][20] - AIDC achieved year-over-year revenue growth of 22%, driven by strong performance in cross-border businesses [10][21] Market Data and Key Metrics Changes - The adoption of AI products is rapidly extending from large enterprises to small and medium-sized businesses, with significant growth in traditional industries such as manufacturing and animal farming [8][9] - The Digital Media and Entertainment group achieved profitability on an adjusted EBITDA basis this quarter, indicating a positive trend in this segment [11][26] Company Strategy and Development Direction - The company is focusing on AI and cloud as key growth drivers, with a well-defined growth portfolio centered on these areas [4][6] - Investments in AI infrastructure and advanced technologies are being increased to strengthen Alibaba's global leadership in technology [5][6] - The company aims to enhance user experience and improve monetization efficiency through strategic initiatives like Chunjang Tui [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained demand for cloud and AI services, despite uncertainties in the global supply chain [6][10] - The company is committed to investing in technology and product development to capture the surge in AI demand [24][27] - Management highlighted the importance of stabilizing market share while enhancing monetization rates through innovative products and services [51][52] Other Important Information - The Board approved an annual dividend of USD 1.05 per ADS, representing a 5% increase year over year, along with a special dividend of USD 0.95 per ADS [15][16] - The company is actively optimizing its business portfolio by exiting non-core assets to focus on core businesses [14][17] Q&A Session Questions and Answers Question: Changes in cloud monetization and customer uptake - Management noted that cloud revenue grew by 18% year over year, driven by AI demand, with new companies from various sectors adopting AI services [37][38] Question: AI applications in e-commerce - Management emphasized the potential of AI to enhance user experience and operational efficiency, with ongoing efforts to innovate in this area [41][44] Question: Monetization strategies for Taobao and Tmall - Management stated that the primary objective is to stabilize market share while enhancing monetization rates through new products and services [51][52] Question: Impact of investments on EBITDA - Management acknowledged that ongoing investments in user experience and new business formats would impact EBITDA, but are necessary for long-term growth [90][91] Question: Instant commerce investment plans - Management highlighted the strategic importance of instant commerce and the potential for high user engagement and market growth [68][72]

Financial Data and Key Metrics Changes - Total revenue, excluding SunART and InTime, grew by 10% year over year, with adjusted EBITA increasing by 36% year over year [4][18] - Non-GAAP net income was RMB 29.8 billion, an increase of 22%, while GAAP net income was RMB 12 billion, reflecting a significant increase due to market changes from equity investments [19] - Operating cash flow increased by 18% to RMB 27.5 billion, while free cash flow decreased by 76% due to increased cloud infrastructure expenditure [19][20] Business Line Data and Key Metrics Changes - Alibaba Cloud's revenue growth accelerated to 18% this quarter, with AI-related product revenue maintaining triple-digit growth for the seventh consecutive quarter [5][14] - Revenue from Taobao and Tmall Group increased by 9%, with customer management revenue rising by 12% year over year [20][21] - AIDC achieved year-over-year revenue growth of 22%, driven by strong performance in cross-border businesses [11][22] Market Data and Key Metrics Changes - The adoption of AI products is rapidly extending from large enterprises to small and medium-sized businesses, with significant growth in traditional industries such as manufacturing and animal farming [8][14] - The Digital Media and Entertainment group achieved profitability on an adjusted EBITDA basis this quarter, indicating a positive trend in this segment [12][28] Company Strategy and Development Direction - The company is focusing on a user-first AI-driven strategy, with investments in AI infrastructure and advanced technologies to strengthen its global leadership [4][5] - The company aims to enhance its core businesses of e-commerce and AI plus Cloud while exploring new growth opportunities powered by technology [12][29] - The company is optimizing its business portfolio by exiting non-core assets to sharpen focus on core businesses and invest in key growth areas [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained demand for cloud and AI services, despite uncertainties in the global AI supply chain [6][20] - The company anticipates that AI will remain a key driver of accelerated revenue growth for Alibaba Cloud in the coming years [6][29] - Management highlighted the importance of enhancing user experience and improving operational efficiency across all segments to establish a clear path to profitability [15][29] Other Important Information - The Board of Directors approved an annual dividend of USD 1.05 per ADS, representing a 5% increase year over year, along with a special dividend of USD 0.95 per ADS [16][17] - The company returned a total of USD 16.5 billion to shareholders through dividends and share repurchases for the fiscal year [17] Q&A Session Summary Question: Changes in cloud monetization and customer uptake - Management noted that cloud revenue grew by 18% year over year, driven by AI demand, with many new companies adopting AI services across various sectors [35][38] Question: AI applications in e-commerce - Management highlighted the potential of AI to enhance user experience and operational efficiency, with ongoing efforts to leverage AI for better search recommendations and advertising [41][42] Question: Monetization strategies for Taobao and Tmall - Management emphasized the goal of stabilizing market share while enhancing monetization rates through new products and initiatives, including the software service fee and QZT [48][52] Question: Impact of investments on EBITDA - Management acknowledged that ongoing investments in user experience and new business formats like Instant Commerce would impact EBITDA but are necessary for long-term growth [91][92]