Alibaba Group Holding Limited (BABA) 15 Nov 242025 Q2 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Alibaba Group's September Quarter 2024 Results Conference Call. [Operator Instructions]

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

welcome Group's and Results Quarter everyone, Call. Conference day, to September Alibaba XXXX Good Joe Eddie Tsai, Officer; are us With Chairman; Chief Toby Wu, Officer. Xu, Executive Chief

Digital and We will call This be the website copy being IR our of Jianfeng, website. also the also to later Co-Chairman available from of have Alibaba the on invited is International today. call section Commerce webcast call. A Group, join of CEO our replay

the safe harbor. Now let me quickly cover

everyone remind and that discussions As provided investigation cause our usual, forward-looking to we refer the are from risks would forward-looking today. statements. contain to actual materially to in that press the safe uncertainties, today's release statements contained differ like may could in harbor and those Please appear results statements subject to which that

note measures certain expressed a we non-GAAP this on financial on use call are basis. that Please that

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

With to Eddie. that, will I now turn

Greetings, and our call. earnings welcome quarterly to

GMV with strategy. impetus. Our maintained user on AI-driven guided to steady Purchase interoperability platform growth drive frequency by core first our initiatives adding continues growth our growth segments business new

steadily growth monthly consumers strong. grew revenue, products remained AI revenue Alibaba [indiscernible] and subsidiaries, on digital Tmall Taobao International reached Alibaba contributing Recently, commerce active share. with high. a new an all-time excluding increasing consolidated

efficiency improved performance businesses. the progressively Across further operational of enhanced and monetization segments, and capabilities, we loss-making

group, to first Tmall user stick strategy. we and Taobao For our

continued improvement to continued frequency experience. GMV in user overall purchase with growth quarter, this During drive

continued quarter by end. million reaching represented XX increase, customers, to loyal XX VIP members, Our at

Merchant this to X.X% an to of monetization contributing progress, continued rise adoption to quarter merchants. Alimama's margin of SME service fee revenue terms implemented industry T Shenzhen tool providing certain rebates marketing while In standard we software growth.

in will GMV growth confident and will which the believe high. monthly of We economic future. continue with growth a retention active their and growth that stimulus achieved and impact. Shopping a to Festival, record are We're consumers Tmall positive XX-XX bring of robust Global We consumption a growth during back number the successful Taobao in purchasers concluded achieving long-term more and the optimistic policies about in government's upside user macro subsequently and

improvement continue groups competition While mix categories, our we'll increased consolidated continue while growth cloud The platform. In strategy. revenue by double-digit e-commerce and this revenue. cloud remains revenue in advancing initiatives maintained from sustainable quarter, drive we for products our user the development revenue invest and consecutive quarter, these public new X% increasing and investment quarter. user optimize to AI Alibaba retention. a Implementation in core in Alibaba of public revenue, in growth cloud to was intense, steady from our improve growth AI-related its of integrated users the grew growth, will segment, triple-digit Cloud excluding product fifth particular, driven subsidiaries, cloud June plus share

beginning, competitive is HEI technologies just Alibaba Apsara products. transformation. believe quarter, the launched era and XXth AI this held suite of of During and stage and Cloud in We Conference early just the the a still we're

ultimately beyond world potential industries reshape digital mobile world. It's transform poised physical the screens. extends the AI's ahead, to and in Looking all

Cloud's penetration AI grows, believe invest that and and more for optimizing deliver development to Alibaba as will products foundational the industries. provider that will AI and cost-effective enable across supports operational As become AI-related industries. computing cloud products We infrastructure in we while infrastructure This technology in technologies service across efficiency. AI to cloud leading a China, and advanced will reliable continue us

shortly. achieved AIDC XX% detail will strong be growth maintaining quarter, momentum, e-commerce, and sharing Jianfeng more revenue international In this growth

and group Cainiao synergies. quarter, logistics synergies back-end and This further and businesses We'll its front to our strength highly capabilities in other network. promote invest digitalized global core significantly in continue advanced with

losses in Taobao and Despite Tmall and entertainment, and in also services e-commerce and core we recent quarter, both digital new growth. intensifying This breakthroughs local and progressive narrowed competition user achieved in improvement months, media user demonstrating retention in operational efficiency. steady

now improve business maintained core quality investing cloud products. Other growth, businesses continued to rapid the confident are in AI-related of Our hand growth in and planned fully business we'll we operating Jianfeng. continue I improve and while efficiency as future. operations, to in our achieving will over businesses

focus. our Over consistent primarily quarter, this XX% by overall AIDC's areas in grew past everybody. year-over-year, X of revenue by Hi, business terms of driven cross-border

First, total growth. the certainty user share our shorten. time experience. to continue and of consistency solidify year-over-year orders delivery maintained AE It's of relatively strong choice orders, further average

we efficiency quarter, in marketplace focused product and economics. operational and selection experience improving optimizing improvement this the models, consignment mix our steady of AE unit on user and During Choice's with

and launched fulfillment optimize Direct the merchants Express expand We to Ali markets inventories also experience. model, in leveraging local selection product overseas

across reimagines sourcing explore AI businesses, multiple through overall improving platform while conversational Second, BXB AI SMEs of easier our procurement We November. in for international making our updated new to continue This and search, application product we engine tools. the transaction AI-powered released efficiency. launched search global

multiple Thank key at while manner on operating user will markets and an in focused of to and the AIDC in deepening pursue markets product November selection you. investments we season and we effective experience remain increase enhancing traditional continue investing in expand to efficiency user strategic user key Third, acquisition December leverage markets peak operational business efficiency. will in International markets. and maintained in with balancing key presence strong our in enhancing strategically and while profitability and base scale. efficient Trendyol's adjacent our momentum improving goal

of The quarter the that remains past further you, Thank performance growth the track. confirms Jianfeng. execution businesses our financial in strategy core our of on

in to on e-commerce of On a accelerated with contributing in solid the business, our Taobao growth, completed implemented made software GMV service based September fee progress monetization from business. trend this and our percentage X. strategy steady Tmall CMR we've a quarter domestic We starting

on for saw merchant the quarter. in platform-wide increased our will payment a platform. more benefit of platforms and shopping convenient our base and efficiency efficiency. AI-powered larger adopted prior make from open which platforms We on adoption more increase improved expect lead improve services to our our Merchants spending we consumers through merchants' an marketing marketing to to logistics a Transient, tool, approach operating

We expect this in user more and growth transactions the will translate into future.

This For revenue more which for products. business, is prior as cloud demand demand quarter by remained our triggers for increasing to the our cloud strong accelerated AI, momentum growth growth the driven from public X%.

revenue while quarter. Revenue from our public product AI-related achieved year-over-year growth for cloud at double fifth digits, consecutive triple-digit grew products the

with region. momentum from rapid expansion, business growth Express investing This Both cross-border Europe and Ali users our continued choice especially grow through and quarter, its strong Gulf to AIDC the in business. maintained Trendyol

cloud, are to our efficiency Beyond the we of e-commerce business businesses improving operating with profitability. other goal of the and and returning growth sustainable

breakeven are profitability X to will the while X at achieve within businesses achieving and the sooner years gradually begin majority even of Some to contribute profitability scale.

factoring quarter, a USD September of and repurchased X.X% the this Combined repurchased the billion. entire XX net X.X level first count in a the half fiscal reduction of for X.X achieve with of issuance, creation in year billion a for significant ESOP quarter, count of USD X we been able achieved to for USD billion reduction share year, just after into total in fiscal XXXX, X.X% share to during fiscal even a we total net approximately the XXXX. have months shares we June For spent the compared the

As of program. USD XX for further repurchase still September share XXXX, XX, we have authorization billion in

count will be share buybacks forward, cost pace strategy the against share reduction our program. of as price a aggressive optimize our share of to an Going repurchase of cash share this function is

program portion our ESOP with well this Beyond of we in future fiscal long-term our generated share proactively allows This dilution to manage by businesses. a replacing cash limit also incentives the purchase as better utilizing from the from as year. domestic our cash shift program, share us dilution ESOP starting

is In of listed August, Hong outstanding billion, reached by inflows shares This Connect Kong equivalent just approximately the inclusion September. days. Stock our which to our By trading HKD XX approximately Kong Hong September million our completed XX followed accounts Southbound listing for ADSs million Hong X% XXXX, XX representing in shares. shares XXX primary in XX, into in net we in Kong,

e-commerce that XXX.X the RMB billion, RMB businesses. enabled from access On broader the engagement of China. for are revenue and investments increase consolidated XX.X [indiscernible] pleased to Mainland investors in Consolidated has was the X% total an primarily Stock adjusted to Connect increase in our attributable a We decreased X%. consolidated basis, EBITDA billion,

plan, Excluding basis like-for-like a to decreased the incentive growth same last year. of X% of have quarter would long-term our adjusted cash effect on compared EBITDA

XX.X billion, a decrease net X%. income RMB non-GAAP Our was of

decrease XX%, in impairment RMB Our XX.X GAAP from billion, changes mark-to-market attributable primarily the investments, was of from increasing to operations. and our net increase equity income an investment income

XX.X in a XXXX, this we September net attributed of year. Free of mainly XXX.X This strong cloud cash our or XX.X RMB maintain of position As same USD RMB was Alibaba XX.X to cash RMB XX% quarter billion billion. decrease was billion, a XX, the in compared quarter flow last to continue billion infrastructure. to investments

other refund there's changes factors to canceled and sales direct addition, working In the including down merchants to a related capital businesses. scale Tmall certain after of service fee annual some we

cloud AI, sustained for we the services. as continue infrastructure AI-driven anticipate we to future for demand AI Given in and will invest strong demand

and Tmall starting Group. Now let's look at results, the Taobao segment with

increase an business X%. same Taobao stable while RMB Revenue from billion of management retail take commerce the RMB in our Tmall last due primarily XX GMV X%, XX.X Revenue billion billion, increased year. Customer was revenue RMB rate growth, and by remains China online to XX year-over-year. compared to for was quarter

accelerated to We by service a monetization decrease and with fee have software strategy Direct completed sales by adoption our of X% the Transat. of of in progress to and sales revenue on driven steady appliances. GMV quarter the growth the made RMB billion, other attributable primarily wider decreased XX.X implementation this in CMR

Tmall revenue in to wholesale management business revenue to experience revenue investment by RMB partly due commerce paying increase X EBITDA customer by to decreased the XX% increased in increase offset X% in XX.X adjusted to primarily from and members. billion, RMB user billion, the from services increase value-added the Taobao in provided due to Group primarily China service.

AI-related double-digit Intelligence increase AI-related the for grew revenue, Alibaba fifth including excluding increased consolidated from Group quarter. Overall revenue products, by at cloud product RMB of mainly revenue driven an XX.X consecutive quarter, in triple subsidiaries, X%. X%, by Revenue growth, year-over-year digits this Cloud was public billion

RMB margin by public and to increased technology. to X and points Cloud EBITDA X.X adjusted high-margin our operating product billion, EBITDA due shift offset the towards products increasing products primarily investments cloud percentage in including AI-related growth X% year-over-year, while customer efficiency, partly improving mix by adjusted increased XX% to in a

of trend cloud cross-border continue in to for Revenue maintain businesses, AI-related customer will leadership. in infrastructure of performance growth grew AI Express capture particular, quarter. Choice invest and We adoption particularly market AIDC driven anticipation by strong to technology, in from in Ali XX% cloud continued increasing of our this business. and The to be growth

Revenue increased from Ali billion, cross-border primarily in RMB the Express Choice due XX.X business increased primarily increase to business X.X to value-added international commerce Revenue in revenue by XX% revenue by contributed by international and increase wholesale RMB related by our generated services. Trendyol. commerce by driven to from retail billion, X% the

reduction a from the AIDC's significant a XXX Trendyol's Ali in partly its due X.X billion to monetization cross-border quarter to businesses, of offset primarily and investments in million adjusted last operating loss loss and same year, in in in EBITDA the RMB of was Express improvements RMB efficiency. by loss Lazada's operating increase compared

mentioned, continue X% Revenue in to fulfillment from profitability. markets the we identified from while will solutions. invest going primarily in expansion key increase outside forward, revenue see grew in driven have to cross-border operational enhancing markets growth lying to AIDC strategic RMB billion, XX.X we efficiency China Jianfeng As for by

our delivers to to We core it will to in invest continue e-commerce businesses. ensure capabilities China's unique value

investment in compared To China to investing RMB businesses. RMB year, adjusted prioritizing million in solutions. quarter cross-border EBITDA core will in XX e-commerce building with capabilities ensure primarily same the due XXX increased this to decreased the fulfillment its million China's synergies to last our to the end, by

the both of and growth from growth Revenue XX%, marketing from as Urlama grew local revenue driven group order by service services. by well AMAP as

increasing and While losses operating scale. narrowed primarily significantly, efficiency driven by improving in

due Media mainly operating reduced as Revenue Group from the revenue content Freshippo Entertainment improved RMB Revenue progressively revenue from loss investment X.X to increased well X%, advertising efficiency. Digital other increase businesses, and while segments increased by retail losses including Alibaba all Yoho was of and its Health. as narrowed. to billion, in due

While adjusted loss a RMB billion. EBITDA was of X.X

computing, core our profitability. progress competitiveness in of In of closing, both domestic in cloud we e-commerce sustainable are strengthening making to show businesses which the of proven solid have

our potential find on to invest we see more and ways growth profitability. We we have to efficient, the confidence segments because to business a path put make high continue them AIDC to our clear in loss-making

remarks, the Thank up end open At you. of Q&A. for we our prepared can

call, ask the Q&A for statement everyone, session. questions In case the will convenience discrepancy, third-party welcome translation Chinese our you consecutive in purposes will provide Hi, language or translator management A for any today's is that prevail. are the in for Please of to only. note their English. interpretation

If unable to week be our will translation, please session. Chinese start of call you on are after meeting. Operator, the transcripts the bilingual Thank hear X Q&A website you. available within this

Yap today Your comes Alicia from question [Operator Instructions] Citigroup. first at

promotions outlook. question and the single macro My is year's to related stage this

voucher and okay this than share from discount So somewhat better I performance to and most consumer year, rather expected. merchants. single-day maybe like most between platforms seems than is year people the would think offer the come of platforms It agree this

So improvement and just outlook higher CMR tools the impact coupon that from on discount preliminary provide if And on consumption that single-stage term and potential to about there's can the think the from with overall merchants into environment longer-term positive as this impact, we also ad we near to can and should lots a from brands their management the spend you return year, sustainable might longer-term vibrant if metros together offsetting related view wondering feedback more the satisfaction macro financial the management about trend head for in budget benefit promotion? higher ad trend. will how some think rate if any, XXXX. translate as then higher share And any the how operation regarding that

Eddie, [Interpreted] to is happy and This I'll take be that question.

the back Tmall, off approached of we campaign this in terms getting XX-XX got October. going for the we Taobao an year early start In way with to and

campaign ran So cycle. longer the a over

a with to earlier based I achieved on relatively feedback Overall, overall, period. got growth them start. course, expectations. we then an the achieved we Of GMV results that the expectations. their the other platforms results campaign going exceeded would from campaign their our them merchants after that of in is say got also that during campaign off terms we and what robust the the exceeded would results into discussed expectations, that I say

coupons, on the of the setup As is similar basically all to your question think I across different platforms.

coupons, coupons of on coupons categories category one different other. and on X have the You the platform hand

members. comes are last comes that expectations. has them that namely the provide impact to when their grow in brands positive positive that add a the Tmall, coupons future members, like It platform merchants. And by jointly platform coupons, on of our to for So platform to we and it longer to coupons helping business. are point, issuing in issued as to very platform category and a term are to the our those Taobao platform shapes terms when these we it when I'd AVP basically the just coupons the to And these that

that level be growth. the of spend contributing can more to confidence, business we CMR expect and thereby to will with growing, marketing, advertising revenue them And on that

subsidies run turning many question at to also for on the programs in have of level situation. and various trade-in goods monetary then and the the as third are electronic macro being fiscal onwards, for automobile Indeed, And well from appliance different announced and end stimulus different September as been measures purchases. localities, national your upgrading home

just over growth overall. driving definitely relevant are getting stimulus these impact time, started And think positive in categories. a So measures will sales in programs are the consumption and on I these have stimulating really

a goods. particular, policies destocking of merchants' driving medium- will reduce long-term terms and to cycles of have in think I consumption the these effect branded also help in

The operator. next question,

Keung Your question from comes next Sachs. from Ronald Goldman

adoption [Interpreted] And mean indicated rate. CMR gap Does My the progress between your could if you has you the and question disappeared? In for about wondering take means? has of this announcement and to growth rate take rollout it stabilized. the has do rate [indiscernible]. now quarter, the what talk I'm with take of also that September

results Indeed, as in this relatively [Interpreted] see This quarter, is Toby. now stable. the question. can you take our rate that take I'll is from

tandem. I think service several monetization, we've now on that progress that include have in including charging. fee that created These factors are software the there result X.X% working started

X the we've doing as well only Of course, deepening been that of as month, Shenzhen. for penetration

So these are factors take X both rate. positive for

the take it's are at relatively same to low monetization going to also and business in those rate. increase But grow time, new with and have the we the growth continue to that time stage models monetization, products still

result tandem. stable this rate there. seeing you're in work the of offset relatively terms take of in at an quarter those result the is So factors There's a

the term, In the to still the that those We'll, And continue of software adoption continue time, charge we'll longer of monetization. work at have same continue growing X.X% to course, Shenzhen. and to fee. that we'll low relatively penetration service deepen on products

to expect can kind see going forward. effect of you So offsetting that

as into to I as fair at very looking take the But regards think merchants, critical to it's the market at us. the be increase of say significant obviously to health the compared to that the the still us operations take is merchant for rate, going headroom there's rate. closely time, average same potential against ensuring Looking we're future

be balanced considerations. will in approach those making a taking we So

Next question, please.

question Your Thomas comes next from with Chong Jefferies.

that, user on we are also management And quarters? fee, think side. we on having TPG about one service the a we our investment for should PTG in the the trend strategies With but about My also investment question experience. is how hand, coming Can comment in EBITDA. transport,

So to need how TPG to X want see factors these I just outlook? EBITDA

side. also question second on my TPG the And is

we're the in synergies base user the as with the the payment well in payment. potential raising incremental GMV coming years? as share about raising about ambition our the more that it's think management growing I Can

of Taobao for strategy investing in investing be Tmall, several and Well, user competences, in involves our and kinds investing abilities, diversified investing in the product investing also extensive, supply, different investments, new investing on strengthening and present, in new more competitive at That and brands. side. also supply developing in you. developing Thank more is merchant our the price our [Interpreted] promising to experience

also improving that In experience after-sales improving making investments user interface. investing improving in of experience, as logistics user in in service, the as investing the front-end well terms includes

but not run so products, only investing AI-related in power we're also growth that's products, to Additionally, computing there's rapid needed our very those in these AI products. in investing in the technology, uptake, also

long-term we're side. that enhance the supply merchant So user investments and these to making are experience enhance to on

So that new with long ties new about the say that medium And users. And the WeChat ability year us investing I we're we us to to to in that interoperability expectations question for acquire nicely and to would your in have quite high second ability gives develop retention. growth for user the term again, that Pay. gives driving

for direction is this large investment So us. a

overall, that stage. Tmall investment I is would investments. the So We're say and in much currently making Taobao very

course, investments, make those in on able as of we're Of we're to and to of well lot ensuring working be attention increasing investments. to also better those the paying a efficiency order CMR

investment to think next So that few fluctuate an over come because we answer to your EBITDA are original expect in question, the phase. can I overall, see you given quarters to

engaged for we've with forward. to user expect will user it WeChat that potential a there complementary fully large just interoperability the In measures realize And the being to that you. terms potential. growth taking to allow on In this of for we're growth is active MACs, see time I again noticeable drive Tmall, particular, take this we going increase with consumers, to very we shared in Taobao with large a and see accepted cooperation in monthly but

them get to the on get to to But them stay the time, growth. GMV platform and to on drive platform the incremental over goal continue is

please. question, Next

next comes of Alex question JPMorgan. Your from Yao

So spent to the the just side. time some side. may, thinking supply and [Interpreted] us on shift I conversation, the his consumer Eddie the like quite the chain opportunity sharing with around if strategy I

you of been you conversely, deploying focusing be produce? growth for that strategy, agricultural note more see, rate on e-commerce that what opportunities will will there's be in streaming what we live decline we label white your what wondering I'm do relatively and And aggressively a around brands sharp recently. goods the strategies means and

e-commerce, about streaming. going levels different you're really [Interpreted] different for strategies platforms, think Well, I and and penetration to talk at to live different e-commerce, different need down of have stream live live drill of platforms look if you streaming

In at period. very look especially a Tmall, streaming and our in fact, Taba XX-XX if been strong on you live there's platforms, increase the during

So again, regard. of of different have at penetration streaming this live I think e-commerce stages development different platforms in levels different

with This seen like, if streaming marriage, e-commerce. supply we've live high-quality you a of year,

quality strong very live could You you like. brands they've created streaming XX-XX. brands Taobao if synergy effect excellent during tremendous flagship stream, Tmall, call and and stores, have it On with to we excellent with

in our about in asked course, the think e-commerce of in order rates at I if need you that and -- their bring see sales this growth you merchants. just brand I plays looking everyone simply rather across growth displaying than them to be and different context to at to invests really general, products. So anything, plus And more investing can truly the mean, conversion. year, platform Tmall of because see advantage which Taobao brands

topic each need and of and platform, sometimes characteristics needs. This to question we're group and views. But internally produce. your and as consumers As core preferences their focus differing also do that label and white for platform discussing goods with on your you its is own about agricultural consumption a a has

to demand people they these comes is do members, well. for our goods, VIP but as So it white label for us, for preference when have whose branded are also

With the new following result for options that, acquisition the demand also new payment users white and new of in that goods. may introduction of

your look meet to and platform. needs need as ensure somewhat preferences be appropriate provide users' their do in a at It different those categories those categories the to can preferences I customized. you So that to for different preferences, you think supply

question, Next please.

The next question comes UBS. at from Fong Kenneth

is stated and the and in is double-digit our as that to view price revenue your achieve well. on is We in the cloud accelerating, the question especially of increasing you wondering you cloud. profitability recent of what results profitability growth My is that cloud, future given side. I'm [Interpreted] expect note decreases

cloud business Thank been things, as have is advantage which profitability also And improving well. matters. of where to grow and been a scale both we've able you. Well, technology the is as matters effect why [Interpreted] we volume, those we've

when take pricing a in long-term do view developing of it to pricing. this at comes in We looking profitability both and compute software, terms sector,

reduction applications power, think you're API. users base the use user new the and price our recent and I growing products. And we compute referring other token come Kuvan because their to prioritized attract our to storage, token that's API lots their the in price, will that models the database in of for there. an and deploy use will to But increase of on by cloud, lowering result in we

could will of the to platform, of as people stack. acquisition long we technology and you cloud think end investment in have price come in So as use really user the as token user making multiple they an reduction inevitably And full a different because up growth products.

Next question, please.

The Jialong next Nomura. from comes from Shi question

merchants, there [Interpreted] call, a is same the on eye for will to I increase earlier is significant the I merchants burden with you that? to to And merchants rate, time, still close attractive see but their indicated noted platform. operating questions. few rate. Recently, platform. has do that have rates, first merchants? think we've the cost to merchants, that operating you that merchants any keeping prove there Do risk burden a take be their seen take the on My on in that room you'll management competitors of result a as for at the the of losing Alibaba reduce reduce and

how I'm say they're And having? GMV to you in building How seeing more come trade-in be kinds categories home just so, road. an impact of these how -- think that wondering difference big relevant a the those the consumer that future be, what electronics, to are to? If make? and been subsidy programs big down the programs be like that, Secondly, then subsidy that beginning the you electronics would will do launched regarding do large subsidies large in programs appliances. subsidy were started they'll applied September have it are boost how you a in categories of fair And

will This the and is I'll first Thanks. take Eddie the take one. [Interpreted] question, Toby. second

For consistently the attached importance of we have Taobao interests tremendous and merchants. Tmall, and to rights

but in the friendliness, terms in best think of level all are certainly we merchant overall our different not I of there. are rate, that take of platforms only terms the of out

So to balancing the there operations take merchant we've need certainly, a lot balanced but balancing yes, rate. that we given take increase balancing rate, health and room Also, health, is to of platform merchants, approach, of take relief giving the and Tmall optimized of fee medium-sized policies, software rollout annual rebates return-only the concessions We've for to the small- our them following for and merchants, fee. including including usage canceled policies merchants. a

rights done the in the different as and try hard safeguard merchant. At aim same of we've of as into merchants. invest products more experience will in price program merchants past, competitive forward, going really on we to we ways the to and the to all continue in membership platform the as these such benefits of are initiatives which So translate will investment the the our benefit and all seeing of well as enhancing with ultimately user that time, transactions technologies

[Interpreted] subsidies in definitely, September, these acceleration the since On months, your trade-in other launched back those we've categories. question trade-in the impact few a And past growth over about large. significant the policies subsidy has been in these seen contribution were of yes,

have regions different different categories, policies. other for As

appliances trade-in also appliances, from some home part subsidies may the for categories. large home small for So or decoration, furnishing even offer and digital other

in impact. the and depend seeing these the on are significant categories, different it So does policies you a region

please. question, Next

at Yu Morgan comes question Gary next from The Stanley.

questions. [Interpreted] I have of a couple

The where onwards. started charging you a service fee first Tmall, and the follow-up from X.X% software is on September Taobao

first making the So be for will time. quarter, contribution for full next quarter that a the

do I'm not to said is rate you with AI growing if How be could actually take about words, sorting CapEx? perhaps that question since a next especially the And of other you than growing. is do CapEx just in CapEx. wondering but stable be So GMV take that in that lot now, stable, the mean that is CMR would could of faster grow rate In think quarter, needs. cloud, around around guess I ROI the quarter? Second has spending the next actually

over This then Eddie Thanks. the Toby. I'll the question take [Interpreted] second. and for is hand to first

rate, spoke are offset that further that this [indiscernible] think investing have factors tool. of fee service are I but When to take X.X% penetration we already an the with in that I to the we're positive marketing low that, growing X and software But earlier. the flagged monetization. models I for these fast, namely new

higher new if are those low rate monetization, you So or the like, X factors. from the first take offsetting diluting models with

and this were the ensuring that healthy, environment merchants, round we looking we're in providing at at looking terms are an ensuring that offsetting a with Taobao looking with that but there good and and a in is overall environment So business stable is also counterbalancing operating effect and Tmall at them overall, route. Yes. the in everything

long-term cloud, our investments demand. understanding function and well around making of AI in the short-term that's as judgment of our A right. You're the the of CapEx our of especially that as infrastructure, we're a lot are knowledge, demand

meet of the for ongoing of growth access the the AI terms possible demand. that it's even that that API explosive demand now we for the power and compute In demand, And all fact that to to drives short-term in services fully AI there's for models. not

term. investments we're the why short that's aggressive So for making

look of probably we ability it's years, demand we a of for the that newest you term, And say, think in AI this kind opportunity high exponential to longer why especially chain once along technologically. XX around as the level at in only every of its view that the in terms that's forward opportunity, OpenAI's comes leapfrog opportunity historic for Gen thought, going XX, inferencing, implies around with growth model, of there's if COT demand certainty that inferencing. a But

So That term we're the infrastructure explains for and very we're in because long optimistic aggressively the times. AI-related that term about in why short investing

question, Next please.

from [indiscernible]. question comes Your next

it's around great. question My mean is shareholder return. I

billion back You guys bought months. $XX X the last in

PBOC to in the neck. does shares? and you? reason you to was shares. just XX launched, stock And was ADR programs to sales program the swap But you your buy back between available land Hong is now are my question of XX I Kong wondering, I Firstly, around that be some companies you differentiate sort do bound when wondering, back their buy to Ticker

this This I'll your question. question. take you is Thank Okay. on Toby. [Interpreted] for

Firstly, actually, of look you line. our distribution Kong liquidity majority. U.S. to the the the shares Hong at the of on if Currently U.S. line, lines

buyback, buyback on line. of executing the were mainly on But is we the very recently, U.S. the execution currently, both lines. buyback our So

our So to answer X such that's exploring just opportunity. buyback. actually, the question. actually And can leverage you been further we The to financing question, of various that. opportunities we haven't mentioned, first second able we course, fund explore to your are But apparently,

for is currently more What buyback. like Asia the we understand

other explore do we However, ways.

we If you in use shares. the in buying X.X of NCD raised and of $X like reflect whole back back USD amount billion, May, we June quarter, our billion

shareholders. more we to on will various and the to explore going buyback value our forward, do ways to the So create continue basically financing also

to have cash just a we do R&D very And add Okay. rich point. onshore. X on Actually,

So is if RMB, we are if like. the you CNY, actually, lending

CNY we abundant We cash are that not onshore. actually have --

it's I or attractive us, in to of some more if the CNS is think probably like So lending [indiscernible].

to question. will the Due take now last we limit, time

at from James Lee Mizuho. last comes Your question

I X questions AI. guess on follow-up

model Is talking cloud. the coming the how AI from you on Because click the also And AI on you that revenue U.S., about do double U.S. in see and agents inferencing? or over maybe and AI China in in training First in and automation workflow, demand can for the addition, people mostly developing are of time? adoption.

at cloud initially, from then training of the power over more a models. time, the Well, is lot needed for Gen the to demand for look that's [Interpreted] I of computing and if more created being But that demand Right. drive is inferencing. you

foundational the looking see of expect especially model companies And for training, into number that being smaller actually are future, we doing could a models. there to just large

industries. You done lot autonomous vehicles, different can expect example, to a also training but other specialized see like, being for for of also verticals

very the you of applied present retraining very demand training examples including strong the And different will for industries, AI of growth being term, think demand. And in a growth Part own agents. time, models. share these all way their inferencing. But of us, of both automating in the to lot account including that inferencing mentioned, different this all the longer developing as companies a across we is and there's industries. AI future, model things in I at kinds of So lot that workflows, about positive in is different see indeed around in happening And Alibaba. think a larger within we are support of in internally

similar the be lot as And on development a CPUs United architected to the think a GPU. used run will technologies process of as are States. in here that compute well done So on in these be of I to

driving major this adoption a is is as So it's AI AI applied you different the is massive mentioned, the of foundation And their developing in agents. of AI trend. really industries being GPU, The which models. all

is I a major think this trend.

Thank you, everyone, for joining.

quarter. see will you We next

presentation concludes the for That today.

disconnect marked spoken lines. [Portions call.] present [Interpreted] live this You may transcript are were interpreter an your now by on of that the