Alibaba Group Holding Limited (BABA) 18 May 232023 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's March Quarter 2023 and Full Fiscal Year 2023 Results Conference Call. [Operator Instructions]

I would now like to turn the call over to Robert Lin, Head of Investor Relations of Alibaba Group. ahead. go Please

International and Language] Executive [Foreign we Chairman of today. CEO; IR of is call and the Commerce Group. of also Jiang will Thank of the our Chairman; Mr, Toby Tai, Taobao CEO the Vice corporate Trudy Officer; be Fan, also Alibaba Group; This Xu, webcasted Joe and invited you. Dai, later being Zhang, the Digital CEO Tmall replay available Chief from have section call website. Financial A

me quickly contain let cover Now Today's the discussion forward-looking safe may harbor. statements.

uncertainties Forward-looking may statements involve inherent risks from actual and materially to current expectations. that differ results cause

the statements, Any Exchange. do to make undertake call are risks of latest detailed forward-looking on other Form on Hong on of these applicable we refer with this announced these please we and as Kong annual statements SEC the of obligation on not and and based U.S. Stock For the law. were website report today, except our to any XX-F required discussion filed as uncertainties, under documents assumptions that update

Please EBITDA, note adjusted flow EBITDA measures that earnings diluted adjusted on we or income, expressed and per are EBITDA, a net margin, non-GAAP adjusted EBITDA non-GAAP margin, on as such share certain this call, cash basis. use ADS financial adjusted that free non-GAAP

of stated, to same rate measures found refer in be versus growth the to stated the the can Our release. year. results quarter non-GAAP of press Unless reconciliation growth GAAP otherwise GAAP and metrics year-over-year earnings last call all during

now With Daniel. will that, I turn to

year call a quarter today. Thank changing you everyone. March joining XXXX We fiscal macro environment. in the closed in a Rob. earnings our and and you, Hello, Thank for

change after the impacted and New various has in COVID-XX some This China. the social cases degrees. business our of activities in gradually recovered businesses As Year, weighed Chinese

reached RMB represent our quarter, a XXX.X growth of During X%. the billion, past revenue year-over-year

as XX% billion, our efforts representing a and RMB in continued of a efficiency adjusted enhancing year-over-year growth was XX.X approximately operating result EBITDA Our of costs. optimizing

we opportunities economic China highly in and development macro see intelligence. Looking at same and environment globally, of macro China's uncertainties recovery environment for and in the At post-pandemic opportunities consumption both we see rapid challenges time, uncertain. the market recovery. in The is artificial international amid

continue and core our will in We to three in strategies cloud execute these to consumption, opportunities. computing response globalization

need months, we recovery few past competition same in confidence noticed incremental consumer time, the products still fierce, At consumption the more gradual everyone is the to but among for In is still trying with capture China and platforms a further have and and spending money the services. consumption, momentum. power multiple value demand

the competitive on areas market. in focus following will such We a

two, Number creation innovations. demand most and number new one, our number platform's retention users; of acquisition maintaining and importantly, mindset; three, of consumer side supply through deprecated high-quality

will we chain core business, commerce, leveraging support our building as supply of serve international focus China's on the international commerce capabilities as advantage of In to unique consumers. development the global to sustainable well

the AI emergence historical in foundation Alibaba of higher computing its market all to aspects models focus created a for progress cloud opportunities In and maximize potential. digitization expanded these computing, demand seeding in the power, will of industrial application on have AI's and Cloud have life.

restructuring major Alibaba and six announced March, In we a transformation, other groups organizational investments. Group business into

company company responsibility independence under holding who will of degree operating for with a business management. transforming assume from we As operate a multiple own by that its Each business capital focused supervision are group by its performance on the full group own board. result, into led a CEO, high

decision-making, six and and business enhance the all empower We more shareholder promote agile, Directors. to Alibaba was change innovation this to of market transformation our approved CEOs will these press unlocking opportunities, responses announced of value. our also in Board partnership capture believe business Board of by recommended thereby release, we Directors enable Today, our which list faster groups, the become of by and to

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board responsible and To ensure new compliance and which areas the other compliance committee, approval in for management than risk we financial to be risk governance overseeing new will Group's the compliance structure, implementation have under of requirements management and reporting. establish risk the obtained a

our of adapt under also company, capital have addition, In committee a to in management holding Board we new Group's established order as Alibaba Directors. role a to

goal enhancing business shareholder capital group, With major of across oversees our return the matters of the the committee groups. management

facing. development, plans plan, market the management environment progress that we various capital is of of further risks business With the each business and group stage on needs, based have restructuring formulated different the

several We updates are announcing today.

its XX and listing strategy cloud will months sharpen to organization. the profile independence business different Firstly, Alibaba group the of company. development we stage further and operations are business to allow from intelligence Intelligence intelligence as fundamentally next model, its Cloud in cloud our consumer-focused plan fully spend its optimize and in an business Full the other complete ecosystem. and independent public customer

stable Secondly, profitability. Freshippo – a companies and well-defined have value these public. We models go years, ready believe customer to and propositions, business [ph] the path and Cainiao are two over established clear to differentiated

has in Cainiao Freshippo’s explore plan Board off next IPO XX to the the IPO to an kick months. to and the Our process approved XX

such Thirdly, is Alibaba regulatory International transactions explore support external capital market Digital to approvals to expansion global raising the the the and various execution Commerce so of The Group environment, in will successful above business factors, on. as subject market.

turn our the over to will fiscal strategy. and of the the performance quarter financial allocation I past Next, year, entire to Toby well as capital discuss as

Thank you, Daniel.

formed Alibaba have committee to Group’s undertake shareholder our the plan capital Board enhance management management comprehensive a announced, value. capital As to

explore process, During for and this all we could closely unlock formed value committee execute newly with the Group. reorganization to options Alibaba that will work

Under execute leadership three and of focused holding a a capital as shareholders' the priorities. on return capital we allocation management company framework committee, committed to robust are improve that

a in of the uncertain First, our strength environment. position balance competitive sheet cash advantage our an is and

a to be on invested our maintain we focused will assets approach managing the prudent we capital capital company. on of the structure, While in improving return

accretive managing outstanding share share discipline review design, we would buybacks our implement while in Second, EPS to count, maintaining our activities, constant program. reduce including ESOP and

to shareholders' value achieving in and Third, transparency shareholders, options subsidiary, return enhance to more we spin-offs. assets IPOs the our will including explore of returning and by all fundraising, capital the

take and announcement. you will following taking with we share me in details the actions - we be will Let today's

fiscal Group forward, business will XXX% Taobao Group. which strong generates Taobao Tmall Group, Tmall continue from cash this free to we which The and US$XX by substantial it our future. cash of core and main Alibaba flow and was made source in billion free In Going to will flow, available business, generated our funds owned. year flow mainly in Business generate the annual cash to be believe XXXX, we be that contributed be continue will will and the free holding

reorganization, In of as additional source of monetization of the businesses. a future, the come from result our will consolidated funds our

initial our Daniel following has as capital planning. the of management As our Board phase mentioned, transactions approved

markets, we its external to AIDC, capital process. growth Alibaba Group, assist International plan management Business base, Digital and of its to its start business services products for invest customers are and its enhance group in consumer and expand its First, new its develop globally. raise supplier confident and into financing new Commerce and prospect, opportunities geographic to or the and will strengthen we The team technologies, grow

holds well process third-party XX explore complete IPO as and delivery of next a to customer Business Smart The of Alibaba group the Group XX% in and Group an customers. target Taobao starting are are to Group. chain, AIDC company. equity Tmall months. XX to We we supply the Cainiao merchants customers IPO that interest Logistics a in as and services and Second, logistics provides to

the be Freshippo, for IPO the Third, starting business next we XX execute we will retail an months. a in and X IPO expect to process to new are our completed

our and capability these that position, our facilities transactions be except completion further Importantly, given then terms, raising our We Alibaba each injections their after including of be believe for return. businesses and equity capital for successful include private own are lending a limited and other should capital, which assess business Group, time are period have and that Group's to on credit market subsidiaries Taobao Tmall based Business these the can issuing optimize and debt may stand-alone financing will becoming used cash listed. shareholders' equity, publicly structure - strengthen are

activities that improve execute return. to committed are we accretive shareholders' Second, EPS

of our repurchase approximately During our ADS cash fiscal share repurchased our which flow. year million US$XX.X free for approximately program, XXXX, RMBXXX.X in represented XX% of we billion

have in billion that we each and Xst US$XX.X ESOP less an and group turn, their employees to program May execute. in to level management reorganization, business own issuance future. April From Under continue the equity ESOP their XXth, have at the billion share in to still their US$X.X interest value ADSs. will means of holdco another aligns repurchase Currently, creation. unutilized program in business that of the approximately amount performance we'll have This, under repurchased we

Alibaba between providing attractive as shareholders the groups remain talents. the of potential the review Group, for long their attract as Management with business Group's plans balancing dilution the level of to and ESOP groups annual will business majority to Committee Capital by objective proposed retain owned Additionally, incentives and an Alibaba

through distribution employee subject our restructuring private in shareholders. of publicly assets, the conditions, and structure will intends become an The listed Group approvals regulatory spin-off Intelligence investors company. connection to of to to the market well most way via stock the we Group as and Directors to to for a jurisdictions. strategic of spin-off relevant include our liabilities as of contracts, We approved Board with Prior intend Cloud independent Lastly, announced, be to Intelligence in in the spin-off full Cloud in Intelligence reviews the financing plans, tax-efficient implementation equity incentive certain shareholders. as Cloud dividend our spin-off plan external spin-off, Group

and to Alibaba's conditions the transaction, the described future. approvals months. to believe target in plan will the We successful shareholders above, in XX spin-off value the this the Subject next further of we complete for execution unlock

let our me XXXX provide review during of financials the a quarter. Now brief March

For the Consumer Services revenue increase by the that XX% was segment by March XX.X revenue XX% RMB RMB to ended RMB growth XX% RMB of Cainiao segment XX, XXXX, to total billion. of XX.X XX.X by was segment billion to XXX.X X% billion, Commerce billion, driven by Local an primarily quarter International and

entertainment. in margin EBITDA EBITA and Adjusted increase of XX%. adjusted narrowed services X commerce RMB XX.X year-over-year percentage local an adjusted consumer billion and China points as by was RMB increase year-over-year the EBITA losses to in well primarily Overall, by due to quarter. increased EBITDA improved The to digital X.X media adjusted as billion

at primarily in as in XX% XX, to of trends due of revenue a decreased direct excluding SBC. excluding ended revenue, percentage sales. decrease Cost cost X Now percentage cost March the SBC of from let's revenue quarter to points look ratio,

Product our March and reflecting development in March user percentage stable percentage administrative expenses in in user continued quarter. ratio ratio the at point decreased point during across General year-over-year optimizing decreased efforts businesses. marketing expenses X% expenses acquisition to and X quarter. XX% X and Sales spending retention remained quarter, ratio

the investments gains a arising traded was of XX.X income equity [ph] decrease XX net increase in quarter operations. the primarily losses year, equity same investments RMB increases due investees, increase an prices from in in of to the partly publicly and net in share GAAP compared offset our of impairment market to last from method of income net year-over-year, these RMB decrease in in of companies billion, Our from by profit the investments the billion

continue to we billion position XX As XX, of cash RMB XXXX, net March a US$ billion. XXX strong or maintain of

billion, As US$ generation during net XXXX, mentioned, strong XXX supported year free was cash XX fiscal by our position RMB billion. cash of healthy flow

for the RMB used quarter investments activities to have was and in year. the XXX disciplined year same our In investment compared been billion million fiscal XXXX, cash ended addition, net we RMB in XX acquisition last March XX, in

Now quarter our from let's XXX March year-over-year. look RMB billion, Revenue decrease in segment was at of commerce China results. X% segment a

For XXXX, goods physical the XX, ended Taobao year-over-year. declined March and GMV mid-single-digit excluding unpaid online Tmall, quarter on orders,

X% by others XX.X been decreased a The gap between due GMV and and revenue off-line RMB billion, management Tmall mainly revenue to year-over-year on XX.X Customer to X% to RMB CMR Taobao sales narrowing. Direct store sales. declined has decrease in and billion.

China profit XX.X Segment Taocaicai from loss March EBITDA XX%. adjusted This a reflected Freshippo, billion X.X in EBITDA management margin RMB from revenues. Commerce customer billion segment in XX% and to significant RMB increased Taobao offset increased partly decrease by from quarter. and in deals XXXX by March reductions the to quarter

in of XX% revenue acceleration RMB from business increased businesses, Commerce billion. XX RMB our of Revenue to March was primarily all International Trendyol. growth, year-over-year. was driven by AliExpress, Commerce segment an Our Lazada XX% quarter XX.X by major increase The and increase business billion, retail International including

losses Commerce losses from by March The service renegotiation, quarter. future expense The narrowed loss loss early XXX reduction losses partly the increased connection by new offset RMB due adjusted operating reduced costs. contracts International reduce by million primarily increased in a to to was Trendyol, billion from with termination to EBITDA contributed primarily X.X the RMB in Lazada. Lazada from year-over-year was one-off segment

international adjusted than be Excluding this EBITDA one-off will less billion. of segment X.X the RMB loss effect, commerce

segment Service grew due billion, of order quarter and growth growth value. Ele.me primarily positive driven higher to March revenue by Consumer XX% GMV in XX.X Local RMB order Our to average

X.X other recorded within to Local also loss segment EBITDA RMB of year-over-year reduction consumer business reduced the loss while Most major service business, RMB adjusted billion by driven by billion. was X.X losses. the Ele.me

remained value average to delivery quarter. improve continued economics order increased per its order. to positive reduce unit and year-over-year improve per Ele.me order the cost by and continued UE Its this

order of-intersegment Cainiao increase logistics. customer XX.X to from quarter, well the for total increasing March year-over-year In by elimination international XX% generated solution demand of RMB fulfillment from revenue from grew Cainiao's per primarily revenue XX% Revenue contributed external as was billion, services, as in customers.

intersegment billion loss EBITDA a by quarter, was elimination Revenue of segment in in projects demand period given March million RMB segment XXX quarter, decrease reduced Cainiao in delays recorded adjusted cloud delivery last RMB from year-over-year. in year. year-over-year XXX RMB XX.X resurgence March million of loss in our revenue The cloud cloud decline X%. and hybrid of of of January COVID-XX our reflected after normalization same CDN compared to

an Adjusted EBITDA increased million quarter RMB digital media in X%. March our RMB was in XXX a X.X of of March cloud Revenue segment segment million quarter entertainment from XXX RMB profit of was year-over-year. billion, increase by and

of EBITDA million capability. Adjusted a from was the production investment XXX to X.X in losses RMB content due loss driven reduced narrowing by of billion, Youku by disciplined RMB primarily and year-over-year,

and will Trudy, to pass who me Tmall speak Group. let Now Business about Taobao

me you, New today. great is with seen GDP in in recovery with all have consumption. it's for year-on-year This Trudy, Year, In and to in moderate the China's pleasure to momentum you all this a first recorded X.X% Tobey. we've speak growth opportunity Thank economy a quarter and positive

from optimization fighting. EBITDA five payoff efforts that been macro factors, well. to the as through our from and that, around January good festival we the has well Taobao of GMV spring from as following saw our an and efficiency we're year-on-year positive was that in as and users and achieved the season, April, February recurrence From the part that important in battles app following cost travel growth the in perspective, COVID been on what Apart we improvement, those has

factors see many we Also, forward. positive going

the the new demand advances. e-commerce many offerings Although consumer by diversified demographic also being opportunities in waning more in intensified created are technological dividend sector, is this competition. for growing Nonetheless, by and

market currently development to both So which and to with the plans, and to market we've capitalize technological our adjusted enable accordingly, out new to new advances created on make implementing. our position that new this us exciting leading confident merchants user further consumption consumers developments recovery seize in fiscal these consolidate I'm initiatives experience. and the mapped we're strategy by breakthroughs and will opportunities and year, and

Taobao, interactive shopping, the First, content we're new and of beyond based X certain consumers more our want even over made long-tail on entertainment. of diverse broader years, find formats hundreds trialing day. that content keyword users a past knowledge, more including to range this and on of shopping-related of the recommendations lifestyle encyclopedic is corroborated every searches interactive by by millions even And

user China's diverse progressively of sustained content to years, its to and and scenarios, to diversify coming platform. online the differentiated interactive will spend consolidating introduce user lifestyle investments a create most users merchandise consumption needs will and further and into and more be investments making be entertainment and aspects include marketplace, time used This upgraded over growth in to and around few So richer while satisfy Taobao accelerating all enrich life. new large as will one-stop Taobao scale position widely assortment

build open more will an helping to we've example, them supporting merchants supply by development and and and inclusive prosperous we've on center organizational side we making medium-sized and the diversified SME and more contribute that's Second, small for suppliers start-ups also devoted upgrades established a that made, with platform. the ecosystem

provide center development enable and faster And works savings. strong content to to support creators. buy fresh and greater business live streaming foods will our store grocery Our with content Taobao to users on teams

costs advancements leveraging be lower technological operating will to make we Additionally, for merchants.

The upgraded other will user app a be needs. of range broader in AI technologies. leveraging Taobao advances to much meet Third, and

building and tools Taobao, and tools new the well for investing experience. for will focused upgrade on scenarios lifestyle new forward, technology going users more as the merchants, create capabilities, end-user we ushering as group's in technology merchant for next-generation paradigm data So we'll be existing on in whole

So is continue And the to range upgrading Taobao platform prosperous platform be strategy co-goal building of to users and in number serving innovation. summary, our broader for of first, one while ecosystem to a number users technology-driven is a consumption putting serve our the realizing largest the needs.

that means service operating trust with technology, in a Undoubtedly, good as our merchants good and good investments the users, and as value merchandise, to will experience, network content our merchants costs maximize over one X that and good merchants. be we'll growth our in merchant coupled I that to of do to users. scale certainly years, well increasing means new our coming providing as place as to that for X we'll that That bring, number the as momentum the with strong well we of approaches terms lead effects continue business. scale reducing

basis, ROI foresee that and On we confident. mid- platform term long the clearly I'm in this, to fully growth of

users. So sustained and and the growth sustained will over horizon, X making be X-year resolute major to a in investments I strategies realize above achieve

much. very I'll at point, this Fan. over you to And Thank hand Jiang

able earnings Thank and is with you great call. Fan it's you speak This pleasure Jiang during very much. a to this to be

we've in Commerce operates business of the Alibaba includes countries. different AIDC models restructuring, and the established Digital various recent which part or Group, As International

In the BXC Daraz, retail sector, with and digital commerce including platforms a we Trendyol, have a portfolio model, retail of local Lazada.

AliExpress operate Taobao cross-border platforms, BXC we several world. and Additionally, Tmall, including

platform which serving BXB is We a have also trade alibaba.com, wholesale the global sector.

and International the overall consumers AliExpress better further with has has - called on shown the It based product consumer services, value experience. Commerce Choice. a quarter, It's model. segment the fulfilled service momentum. by rapid growth. enhancing rapid for choices growth AliExpress money, officially provides maintained past AliExpress launched new This

actively by with in support, short Trendyol early Turkey Alibaba it was over Following the recovered achieved in number orders a February affected quickly in relief although strong of increasing Turkey business year-over-year. in Group our XX% XXXX, and growth the term, earthquake provided and

a a rate and and Lazada's Asia, to good growth on achieving back scale balance international challenging commerce continues between year, after efficiency Southeast improvement. our operational recovered In growth a improve, monetization business has track. business is Overall,

invest grow BXC to our in model cross-border, potential plus the ahead, cross-border still commerce in significant Looking continue business. local retail to our There's sector. we'll

grow we business, as launch rapidly. has in will service, regional while markets. the Choice that we'll invest significantly the continue Asian opportunities improved Southeast user the market in commerce to 's the other experience expect local new With business of actively In the continue AliExpress seeking to

to we've the We finance, logistics wholesale In sector, healthy maintain the business services BXB will our this coming from believe other value-added expanding models, to existing and upgrades transaction services in as growth our made services. wholesale enable several such digital many years. to SaaS

we will business expand model also markets. Additionally, our BXB actively into other

Daniel Cloud to over you hand to will business. I on next, to present And the

you Thank much. very

and Some updates a year-over-year. on structure revenue quarter, This our Computing adjust to in by is and last the past X% proactive In composition. increased the about of Cloud revenue focus in growth customer external our also partially business. to our our and high-quality move due - Cloud market change result environment

Cloud a Alibaba The contribution external customer to and infrastructure switching our Cloud the business. top factors its to include revenue self-build international year-over-year. impact from using for service Both decreased XX%

quarter. resurgence pandemic the cloud delivery the China addition, hybrid the projects and in impacted In January during certain consumption public of delayed of also cloud in -

the working As services demand and in March, as also decreased such eased February CDN activities decreased and pandemic significantly. quite off school for remote and

of at Clouds we sees Cloud's to zoom market Cloud at short-term are from Cloud revenues Cloud the the If with because and the potential years Ali back and future AI, massive fluctuations and future. rapid we development vast we got Ali XX today where two We past look see opportunities. confident the over remain development in out historical

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model opportunity customers, hope developers lies our of in to second building on parts. proprietary as model foundation service they to partners supporting general our our mass a need us public The the and or our and top services on in to model. offer We while and foundation foundation produce vertical models based

Tongyi In develop we a XXX,XXX to work access, April, model, Currently, have industry large have Tongyi models with released than to pre-train started for customers on Qianwen. several language Qianwen. applied we based more vertical and partners trial

to model. based solutions also cloud Tongyi products on enterprise We plan and launch

same business large facing the our our Alibaba all new opportunities At from customer to of offer DingTalk, experiences be brings that various our emergence believe for also of with a the AI-based we - the time, integrate users. with new model consumer-facing Group. models can AI large service business to within reinvested Starting a

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ending words. sharing I a today, Before like few more to say our would

is Looking the back starting world at past new the in the Alibaba, in the of recent few we of beginning at standing at like are era of point is new transformation. age AI. a events a the world in months, The

aspect for will of how and society, solve artificial mankind live, - work through The disruptive our new every bringing intelligence we we innovations to breaking for in creating of problems together. opportunities how while reshape

we unlock you. bring experiences our to on services For and these Through capital shareholders. and creating as such Thank efforts, innovation, for Alibaba's further to greater own we hope improve transformation, focused own and Alibaba's reorganization and new and employees productivity efforts value the progress long-term to to expect new and foster management our products returns customers. more

Thank and everyone. hi, you, Daniel,

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but industries. in for to foundational different AI be Of the models, also develop use of opportunities industry course, and there models, launch including new many development different will models, with products cases

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to business that that different versus other full of partly consideration Alibaba's around being due there a very business cloud the about So doing idea characteristics is certainly talked spin-off businesses. consumer-facing we behind the

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of give we've to and given consideration to maximize that interest in the issues. consideration to and the Of course, including how spin-off, tax to guarantee will full how existing giving of proceed with terms shareholders

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your will assets which a be of Alex, perhaps shareholding continue And our which businesses to and ultimately of controlling businesses. on of those of second disposing to the then question majority the on reducing as the part shareholder, which be will

globalization. of to your clearest about commerce, question which logistics is talk clearest possible think to I the answer And we digital of think comes expression I cloud. businesses when cloud core that strategies, our and that and we is down globalization it consumption, namely three that be our the strategic. consider the of really to is And

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companies majority retain Some controlling a we can interest shareholding. in others could reduce our we

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can those the it in business the succeed in and independently And of case cloud certainly that does, four I think market. things has a

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question. Next

next Yu Morgan ahead. go Please Stanley. Gary question Thank comes The from from you.

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way terms will Group? spun Could then by way dividend will spun work result cloud that further of be pursuing that liquidity Alibaba about follow-up, So - a off cloud distribution. by off in will And completely fully us for IPO? in how an you the of tell of

assume tax couple dividend a questions considerations. of on capital that then out of I payout And approach basically is management. this

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Your second with relative the buybacks do merits question dividends. had to of versus

buybacks dividend the of case different the opted with there'll to voices the think what's go ask dividend in business, I you more opinions, out market. distributions, the different in better if So cloud there we've be versus generally, But approach.

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you. Thank

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to relating few a e-commerce. you. Language] [Foreign questions have I Thank

I'm So more trend if growth, been to in return that can past wondering positive few positive Taobao and in in Tmall. the GMP? positive us return with tell a starting understand about there's growth the We business months. a to growth you that

profitability year, China in been to same the time, in space. year? But the to we improving. segment is expect that improvement do Also, profitability this the Can talk see understand there's Commerce And in that? this fierce you you very further about at competition e-commerce us

still loss-making there. forward. on driving International business your wondering could growth AIDC front, time if be at with plans then about those I'm this is balance investments at a looking a this And Digital us going more or Alibaba tell primarily that's you'll looking further And the you whether you'll profitability. require bit Commerce will investment with and be growth to

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for March have good numbers, that. been think users there in and in pretty April, in We terms in of I seeing and good reasons results And growth are orders. several some especially growth

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with as I core shared building and year for are a business. first, ecosystem and this going technology-driven earlier, driving putting forward thirdly, prosperous users our strategies then And you a

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implementing merchants over as terms is most technology, plan. am a In the pay of users the year, and context and off year X-year business X-year horizon the of shared planning important certain the in that those and that a we're this growth users, I investing earlier, priority in So will plan, I scale. in investments X-year merchants this and and thing

Language] [Foreign

on Digital Commerce. International is Fan So Jiang thank This you. Alibaba

a comprises this across said earlier models in lot business remarks, different business lot different my a I of As regions. of

investment of business early those others So are and well components doing the some the are in profit-wise, phase. of still profitable

business, we on international and in side BXB potential terms, side. great in retail see general markets the on wholesale for But the the both or

at be So be the business, we at operating businesses, investing we will develop where respect to the in more same the in enhance our of looking existing potential, efficiencies. strong while markets will or we further time see established to ways

at looking market and taking we're So dynamic approach. each a differently

joining call. for Well, today's thank you, everyone,

questions, to me reach free team. further and IR next you. again have We to to you quarter. you Thank having forward look If my out feel

participating. Thank for for Thank our you. you That today. does conclude conference

now disconnect. may You