Core Viewpoint - Alibaba is undergoing a significant transformation by divesting non-core assets and focusing on its core businesses of e-commerce and AI + cloud, marking a strategic shift from its previous expansive approach [1][10]. Group 1: Asset Divestiture - Alibaba has sold over 300 billion yuan worth of assets since the beginning of 2025, indicating a systematic approach to streamline its operations [9]. - Recent transactions include the sale of 85% of Trendyol GO for approximately 7 million USD (about 50 million yuan) and the complete divestiture of its stake in Gao Xin Retail for about 131 million HKD [2][7]. - The company has also reduced its holdings in various publicly listed companies, including a 2% stake in YTO Express, generating nearly 20 million yuan in cash [8][10]. Group 2: Strategic Focus - The new leadership under Chairman Cai Chongxin and CEO Wu Yongming has established a strategic focus on "user-first" and "AI-driven" initiatives, leading to a reorganization of the company into six major business groups [11]. - The divestiture of non-core assets is aimed at reallocating resources to high-growth areas such as AI and cloud services, which are expected to drive future revenue [12][24]. - Alibaba plans to invest 380 billion yuan over the next three years in building AI and cloud infrastructure, reflecting its commitment to becoming a technology-driven enterprise [12][15]. Group 3: Market Positioning - The shift in strategy is a response to the increasingly competitive landscape in the e-commerce sector, where growth is slowing and companies must focus on efficiency and profitability [23][24]. - Alibaba's recent performance shows a 5% year-on-year revenue growth to 2,477.95 billion yuan, but net profit has halved, indicating the need for a strategic pivot [9]. - The company is also focusing on instant retail, with significant growth reported in its Taobao Flash Purchase service, which saw a 200% increase in monthly active buyers since its upgrade [15][18].

Core 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]

Group 1 - Alibaba disclosed in its mid-term report for the fiscal year 2026 that it sold 85% of Trendyol GO to Uber for approximately $700 million, generating a profit of about 6 billion RMB, which has been included in the investment net income for the first half of 2025 [1][3] - Trendyol GO, a rapid delivery service under Turkey's e-commerce giant Trendyol, completed over 200 million orders in 2024 with a transaction volume of $2 billion, making it a key player in Turkey's instant retail market [3] - The sale of Trendyol GO is part of a broader strategy, as Alibaba has also fully exited from offline retail formats by selling its stakes in Intime Retail and Sun Art Retail [3] Group 2 - Alibaba has established "AI-driven, cloud-first" as its core strategy, with CEO Wu Yongming indicating that the company is in a critical investment phase for building AI technology infrastructure and a consumer platform [3] - For the second quarter of fiscal year 2026, Alibaba reported revenue of 247.795 billion RMB, a year-on-year increase of 5%, while net profit decreased by 53% to 20.612 billion RMB [3] - The revenue from Alibaba's instant retail business reached 22.906 billion RMB, a 60% increase compared to 14.321 billion RMB in the same period last year [3] Group 3 - According to analysis from China Merchants Securities, Alibaba's e-commerce business is expected to maintain competitive strength, with growth potential in its food delivery services and long-term growth in cloud and AI businesses, projecting Non-GAAP net profits of 106.9 billion RMB, 166.6 billion RMB, and 201.8 billion RMB for FY2026-2028 [4]

Core Viewpoint - Alibaba has sold 85% of its stake in Trendyol GO to Uber for approximately $700 million, generating a profit of about 6 billion yuan, which has been included in the investment net income for the first half of FY2025 [1][4]. Group 1: Financial Performance - For the second quarter of FY2026, Alibaba reported revenue of 247.795 billion yuan, a year-on-year increase of 5% [4]. - The net profit for the same period was 20.612 billion yuan, reflecting a 53% decline compared to the previous year [4]. - Revenue from Alibaba's instant retail business reached 22.906 billion yuan, a significant increase of 60% from 14.321 billion yuan in the same quarter last year [4]. Group 2: Strategic Direction - Alibaba has established "AI-driven, cloud-first" as its core strategy, with CEO Wu Yongming indicating a critical investment phase in building AI technology infrastructure and a consumer platform combining life services and e-commerce [4]. - The company does not rule out additional investments beyond the previously committed 380 billion yuan for AI and cloud initiatives over the next three years [4]. Group 3: Market Position and Future Outlook - Trendyol GO, a key player in Turkey's instant retail market, completed over 200 million orders in 2024, with a transaction volume of $2 billion [4]. - Alibaba's recent divestments from physical retail, including the full sale of Intime Retail and Hema, indicate a strategic shift away from offline retail formats [4]. - Analysts from招商证券 express optimism about Alibaba's e-commerce competitiveness, growth potential in the food delivery sector, and long-term growth prospects in cloud and AI businesses, projecting Non-GAAP net profits of 106.9 billion yuan, 166.6 billion yuan, and 201.8 billion yuan for FY2026-2028 [5].

Group 1 - Alibaba Group completed the sale of 85% stake in Trendyol GO, a subsidiary of Turkish e-commerce platform Trendyol, to Uber for approximately $700 million, equivalent to about 5 billion RMB [1] - The transaction was finalized within a six-month period ending September 30, 2025 [1] - The sale resulted in significant accounting gains for Alibaba, with interest income and net investment income amounting to approximately 6 billion RMB [3] Group 2 - The accounting gains included not only the cash received but also the net asset book value of Trendyol GO [3] - A fair value re-evaluation of the remaining 15% stake in Trendyol GO was also included in the accounting gains [3]

Group 1 - Uber will acquire an 85% stake in Turkish food delivery platform Trendyol GO for approximately $700 million in cash, pending regulatory approval, with the deal expected to close in the second half of the year [1] - The acquisition is anticipated to enhance Uber's growth and reflects the company's long-term commitment to Türkiye, as stated by Uber CEO Dara Khosrowshahi [2] - Trendyol GO, founded in 2010 and operated by the Turkish e-commerce platform Trendyol, which is majority-owned by Alibaba, serves around 90,000 restaurants and employs 19,000 couriers across Türkiye [2] Group 2 - In 2024, Trendyol GO is projected to deliver over 200 million orders and generate $2 billion in gross bookings, marking a 50% increase year over year [3] - Uber is expected to report first-quarter earnings with an earnings per share of 51 cents on revenue of $11.6 billion [3]