阿里巴巴 (BABA) 2016 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Alibaba Group March quarter 2016 and full FY16 results conference call. (Operator Instructions).

女士們、先生們，感謝你們的支持。歡迎參加阿里巴巴集團2016年3月季及2016財年全年業績電話會議。（操作員指令）。

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

現在我想把電話轉給阿里巴巴集團投資人關係主管 Jane Penner。請繼續。

Good day, everyone, and welcome to Alibaba Group's March quarter 2016 and full FY16 earnings conference call. With us today are Joe Tsai, Executive Vice Chairman; Daniel Zhang, Chief Executive Officer; and Maggie Wu, Chief Financial Officer.

大家好，歡迎參加阿里巴巴集團2016年3月季及2016財年全年財報電話會議。今天與我們一起出席的有執行副董事長蔡崇信、執行長張勇和財務長吳衛。

Also, as you know, we distribute our earnings release through Alibaba Group's Investor Relations website located at www.alibabagroup.com. So please refer to our IR website for our earnings releases, as well as the supplementary slides that accompany the call.

此外，如您所知，我們透過阿里巴巴集團投資者關係網站（www.alibabagroup.com）發布我們的收益報告。因此，請參閱我們的 IR 網站，以了解我們的收益發布以及電話會議附帶的補充幻燈片。

You can also visit our corporate website for the latest Company news and updates. Please check it out. This call is also being webcast from the IR section of our corporate website. A replay of the call will be available on our website later today.

您也可以造訪我們的公司網站，以了解最新的公司新聞和更新。請檢查一下。本次電話會議也將透過我們公司網站的 IR 部分進行網路直播。今天晚些時候，我們的網站將提供此通話的重播。

Now let me quickly cover the Safe Harbor. Today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations.

現在讓我快速介紹一下安全港。今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性聲明。這些前瞻性陳述涉及固有風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。

Factors that could cause actual results to differ materially are set forth in today's press release. To also understand these risks and uncertainties, please refer to our latest Annual Report on Form 20-F and other documents filed with the US Securities and Exchange Commission.

今天的新聞稿中列出了可能導致實際結果大不相同的因素。要了解這些風險和不確定性，請參閱我們最新的 20-F 表年度報告以及向美國證券交易委員會提交的其他文件。

Any forward-looking statements that we make on this call are based on assumptions as of today and we do not undertake any obligation to update these statements, except as required under applicable law. Please note that certain financial measures that we use on this call, such as non-GAAP EBITDA, including non-GAAP EBITDA margins and non-GAAP net income, are expressed on a non-GAAP basis.

我們在本次電話會議上所做的任何前瞻性陳述均基於今天的假設，除非適用法律要求，否則我們不承擔更新這些陳述的任何義務。請注意，我們在本次電話會議中使用的某些財務指標，例如非 GAAP EBITDA（包括非 GAAP EBITDA 利潤率和非 GAAP 淨收入），都是以非 GAAP 為基礎表示的。

We have also adjusted our net cash provided by operating activities to remove purchases of property and equipment and intangible assets, excluding acquisition of land-use rights and construction in progress, and adjust for changes in loan receivables relating to micro loans of our SME loan business, which we refer to as free cash flow. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release.

我們也調整了經營活動提供的淨現金，以消除購買物業和設備以及無形資產（不包括收購土地使用權和在建工程），並調整與中小企業貸款業務的小額貸款相關的貸款應收款的變化，我們稱之為自由現金流。我們的 GAAP 結果以及 GAAP 與非 GAAP 指標的對帳可以在我們的收益新聞稿中找到。

With that, I will now turn the call over to Joe.

說完這些，我現在將電話轉給喬。

Thank you, Jane. Thank you all for joining us. Today, we recorded excellent results. Our revenues grew 39% year on year for the quarter. There are now 423 million shoppers who have bought something on our China retail platform in the past year, and 410 million mobile users who are active on our China retail mobile apps during the month of March.

謝謝你，簡。感謝大家的參與。今天，我們取得了優異的成績。本季我們的營收年增了 39%。過去一年，共有 4.23 億購物者在我們的中國零售平台上購物，3 月有 4.1 億行動用戶在我們的中國零售行動應用程式上活躍。

In these challenging times with the global economy, Alibaba is bucking the trend. Why? I want to offer a couple of perspectives; one macro, and the other one that is specific to Alibaba.

在全球經濟面臨挑戰的時期，阿里巴巴卻逆勢上揚。為什麼？我想提供幾個觀點：一個是宏觀的，另一個是針對阿里巴巴的。

First, take a look at the Chinese consumer. Chinese households today have aggregate net cash reserves of over $4.6 trillion. This accumulated wealth and liquidity is the result of real double-digit wage growth over the past decade. In contrast, in early 2008 on the eve of the global financial crisis, household debt in the United States was 98% of GDP and the average American family was in heavy debt.

首先，我們來看看中國消費者。目前中國家庭淨現金儲備總額超過4.6兆美元。這些財富和流動性的累積是過去十年實際兩位數薪資成長的結果。相較之下，2008年初全球金融危機前夕，美國家庭債務佔GDP的98%，一般美國家庭負債累累。

Chinese consumers have a healthy balance sheet and ability to spend. This will propel China's shift from an export and investment-led economy to a consumption-driven economy. Alibaba rides the secular tide as we enable more products and services, whether they are domestic or import, to reach the consumer.

中國消費者擁有健康的資產負債表和消費能力。這將推動中國經濟從出口和投資拉動型轉變為消費拉動型。阿里巴巴順應了長期趨勢，讓更多的產品和服務（無論是國產的還是進口的）能夠觸及消費者。

Another perspective comes from looking at Alibaba's businesses. We have a balanced portfolio of businesses in our ecosystem that are in various stages of growth, profit trajectory and cash generation. Depending on years in gestation, we group these businesses into what I call: first, core cash flow; second, emerging traction; and third, long-term strategic bets. So I'll go through each of them.

另一個視角來自於觀察阿里巴巴的業務。我們的生態系中擁有均衡的業務組合，這些業務處於不同的成長、利潤軌跡和現金產生階段。根據醞釀的年限，我們將這些業務分為以下幾類：第一，核心現金流；第二，新興牽引力；第三，長期策略賭注。因此我將逐一介紹它們。

First, core cash flow. Our core commerce business is strong and extremely cash generative. We achieved 41% year-on-year revenue growth in China retail marketplaces for the quarter, with high and sustainable operating margins. On the strength of our core business, we delivered $8 billion in free cash flow in FY16. This enables us to invest for the future.

第一，核心現金流。我們的核心商業業務強勁且現金流極強。本季度，我們在中國零售市場的營收年增 41%，並維持了高且可持續的營業利潤率。憑藉核心業務的強勁發展，我們在 2016 財年實現了 80 億美元的自由現金流。這使我們能夠為未來進行投資。

Second, emerging traction. We are excited that several of our businesses have emerged with high growth traction and expanding operating leverage. AliCloud is, today, one of the largest cloud computing businesses in the world. In the latest quarter, this business grew revenues 175% year on year, which is an acceleration of the 126% growth rate from the prior quarter.

第二，新興牽引力。我們很高興看到我們的多項業務呈現出高成長動能和不斷擴大的經營槓桿。如今，阿里雲是全球最大的雲端運算企業之一。最新一個季度，該業務營收年增175%，高於上一季126%的成長率。

Another emerging traction star is mobile Internet services, including mobile search and mobile media. In this quarter, we have provided a glimpse into the potential of the mobile lifestyle in China, in addition to mobile commerce, as revenues from mobile Internet services and mobile operating systems grew around 50% year on year.

另一個新興的牽引星是行動網路服務，包括行動搜尋和行動媒體。本季度，除了行動商務之外，我們還看到了中國行動生活方式的潛力，因為行動互聯網服務和行動作業系統的收入同比增長了約 50%。

Third, long-term strategic bets. Alibaba has an incredible track record of making long-term bets successful. Here, a bit of historical perspective is important; take Taobao marketplace as an example. We started Taobao in 2003 when online shopping in China was virtually non-existent. For five years we didn't generate any revenues; instead, we focused on acquiring users and building an ecommerce ecosystem.

第三，長期策略押注。阿里巴巴在長期投資方面有著令人難以置信的成功記錄。這裡，一點歷史視角很重要；以淘寶市場為例。我們在 2003 年創辦了淘寶，當時中國的網路購物幾乎還不存在。五年來，我們沒有創造任何收入；相反，我們專注於獲取用戶和建立電子商務生態系統。

Taobao didn't produce meaningful profits until 2010; that is seven years after its founding. History teaches us that it pays to be patient. We are used to investing in long-term initiatives with long-term gestation periods. New initiatives typically take five to seven years to grow into substantial profitability, and this growth usually takes on a step function trajectory rather than in a straight line. The ability to remain patient is a competitive advantage.

淘寶直到2010年才開始實現可觀的獲利，此時距離其成立已經七年了。歷史告訴我們，耐心是有回報的。我們習慣投資長期醞釀期的長期計畫。新措施通常需要五到七年的時間才能實現實質獲利，而這種成長通常呈現階梯式軌跡，而不是直線式。保持耐心的能力是一種競爭優勢。

Going forward, we're prepared to continue investing in high potential businesses that are highly strategic to Alibaba, from digital entertainment, to local services, to international expansion. These businesses contribute to losses in our current income statement; however, we invest in them so that they can graduate to emerging traction and then on to core cash flow businesses in the future.

展望未來，我們準備繼續投資對阿里巴巴具有高度戰略意義的高潛力業務，從數位娛樂到本地服務，再到國際擴張。這些業務導致我們當前損益表中出現損失；然而，我們對它們進行投資，以便它們能夠逐漸發展成為新興業務，並在未來成為核心現金流業務。

Now I would like to turn to Daniel who will discuss recent exciting developments and offer a strategic view of the future.

現在我想請丹尼爾討論最近令人興奮的發展並提供未來的戰略觀點。

Thanks, Joe. Hello, everyone, and thank you for joining our earnings call today. I'm pleased to report that we ended the fiscal year on a very strong note. We had a strong execution in our three key strategies of globalization, rural development, and big data cloud computing. We reached two important milestones this fiscal year.

謝謝，喬。大家好，感謝您參加今天的財報電話會議。我很高興地報告，我們以非常強勁的成績結束了本財政年度。我們全球化、鄉村振興、大數據雲端運算三大策略執行有力。本財年我們達到了兩個重要的里程碑。

First, our annual GMV surpassed RMB3 trillion and we became the world's largest retail commerce company. Second, our annual revenue surpassed RMB100 billion. The continued strength of our business is reflected in the growth of our annual active buyers, which has reached 423 million.

第一，我們的全年GMV突破3兆元，成為全球最大的零售商業公司。第二，全年營業收入突破1000億元。我們業務的持續強勁表現體現在我們年度活躍買家數量的成長上，目前已達到 4.23 億。

The total revenue growth rate this quarter is the highest over the past four quarters, and the revenue growth rate of China retail marketplaces is the highest in the past six quarters. We are on a path to realizing our vision of exceeding $1 trillion in GMV by FY20 and we want to serve 2 billion consumers.

本季總收入增速為近四個季度以來最高，中國零售市場收入增速為近六個季度以來最高。我們正在努力實現到 20 財年 GMV 超過 1 兆美元的願景，並希望為 20 億消費者提供服務。

Today, we are laying down solid foundations by transforming our ecommerce business and investing in driving businesses such as cloud computing and media and digital entertainment platforms to achieve our ambitious vision.

今天，我們正在透過轉型電子商務業務並投資雲端運算、媒體和數位娛樂平台等驅動業務來奠定堅實的基礎，以實現我們雄心勃勃的願景。

Over the past year, our retail commerce business has executed a significant and successful transformation from PC to mobile-first. At the time of our IPO, mobile contributed less than 40% of our GMV, less than 20% of our China retail commerce revenue, and we had only 188 million mobile monthly active users.

在過去的一年裡，我們的零售商務業務實現了從 PC 優先到行動優先的重大且成功的轉型。在我們首次公開募股時，行動端貢獻了我們不到40%的GMV，不到我們中國零售商務收入的20%，我們的每月行動活躍用戶只有1.88億。

Today, 73% of our GMV comes from mobile and our mobile MAU has reached 410 million. We have completely reinvented the user experience and services to capitalize on the unique relationship that consumers have with their mobile phone in daily life. Today, our merchants and consumers engage seamlessly across a multiscreen social commerce platform, driven firmly by user interaction and big data.

如今，我們 73% 的 GMV 來自行動端，行動端 MAU 已達 4.1 億。我們徹底重塑了使用者體驗和服務，以充分利用消費者在日常生活中與手機的獨特關係。如今，我們的商家和消費者可以在多螢幕社交商務平台上無縫互動，這主要由用戶互動和大數據驅動。

Taobao has long evolved beyond just for shopping. Consumers come to Taobao for discovery and entertainment and to socialize in virtual communities with each other with shared interests or lifestyles during their shopping journey.

淘寶早已不再僅僅提供購物服務。消費者來到淘寶是為了探索和娛樂，並在購物過程中在虛擬社區中與具有共同興趣或生活方式的人進行社交。

Internet celebrities, merchants, trendsetters are among the growing active population contributing rich and relevant content in the form of photos, videos, live streaming, recommendations, reviews and lifestyle guides which encourage conversations between users through sharing, comments, and liking features.

網路名人、商家、潮流引領者等日益增長的活躍人群以照片、影片、直播、推薦、評論和生活指南的形式貢獻豐富且相關的內容，並透過分享、評論和點讚功能鼓勵用戶之間的對話。

Tmall is now positioned more clearly than ever as the engine of digital transformation of the retail landscape in China. Brands and retailers continue to turn to Tmall as a trusted partner and destination for consumer engagement, customer relationship management and brand building.

天貓現在的定位比以往任何時候都更加明確，即中國零售業數位轉型的引擎。品牌和零售商繼續將天貓視為值得信賴的合作夥伴和消費者參與、客戶關係管理和品牌建立的目的地。

We remain focused on category expansion and sharpening brand mix for consumers. We continue to grow core ecommerce business by increasing our consumer base and broadening our product assortment, namely through spreading our two wings of globalization and rural development.

我們將繼續致力於擴大產品類別並優化品牌組合以迎合消費者需求。我們透過擴大消費者基礎和拓寬產品種類，即透過拓展全球化和農村發展這兩個翅膀，繼續發展核心電子商務業務。

Tmall global GMV has increased 180% year over year. We continue to work closely with business partners to help sell their quality products to China.

天貓全球GMV較去年同期成長180%。我們繼續與商業夥伴密切合作，幫助他們將優質產品銷往中國。

Our acquisition of a controlling stake in Lazada, a leading online retail market operator in Southeast Asia, will allow access to 560 million consumers in one of the most promising markets for ecommerce.

我們收購了東南亞領先的線上零售市場營運商 Lazada 的控股權，這將使我們能夠在這個最具前景的電子商務市場之一接觸到 5.6 億消費者。

Our rural development continued to be [pleasant]. Rural Taobao service stations have extended to over 14,000 rural locations. We capitalized on the most important family holiday of the Chinese calendar to help spotlight rural products and encourage rural consumption and held the first Alibaba Chinese New Year shopping festival. More than 70% of orders were completed via mobile and more than 2.1 billion items were sold during the five-day campaign.

我們的農村發展持續呈現「喜人」勢頭。農村淘寶服務站已覆蓋農村1.4萬多點。我們抓住農曆新年這個重要的家庭節日，大力推廣鄉村產品，促進農村消費，舉辦了第一屆阿里巴巴新春購物節。超過 70% 的訂單是透過行動裝置完成的，在為期五天的活動中售出了超過 21 億件商品。

Revenue for the core ecommerce business rose extremely well in March quarter, with a 39% overall growth rate and a 41% year-on-year growth rate for China commerce retail revenue. The robust growth in China retail commerce revenue was driven by online marketing service revenue, particularly on mobile.

核心電商業務收入在3月季度成長極為強勁，整體成長率為39%，中國商業零售收入較去年同期成長41%。中國零售商業收入的強勁成長是由網路行銷服務收入（尤其是行動端）推動的。

Online marketing revenue was driven by both the increased traffic and improving CPC on our marketplaces, trends that we believe will continue. Why do we believe this? Traffic is increasing because our desktop visitors remain very robust, while mobile MAU and traffic continue to grow, driven primarily by our mobile Taobao app.

網路行銷收入是由我們市場上流量的增加和每次點擊費用的提高所推動的，我們相信這種趨勢將會持續下去。我們為什麼相信這一點？流量不斷增加是因為我們的桌面訪問量仍然非常強勁，而行動月活躍用戶和流量則持續成長，這主要得益於我們的行動淘寶應用程式。

We are confident about pricing because merchants and brands are willing to bid more and more on our P4P Alibaba platform. In addition to increasing their online sales, it is also helping them acquire new customers, drive repeat purchase and build loyalty, ultimately benefiting their overall business, online and offline.

我們對定價很有信心，因為商家和品牌願意在我們的 P4P 阿里巴巴平台上出價越來越高。除了增加他們的線上銷售之外，它還可以幫助他們獲得新客戶、推動重複購買並建立忠誠度，最終使他們的線上和線下整體業務受益。

Our cloud computing business remains on its path of rapid growth with more than 500,000 paying customers and a revenue growth of 175% year over year. We unveiled [DT plus], a platform that is a one-stop shop for big data-related solutions such as computing engines, data analysis, [machine learning] and data application. We are benchmarking against international players.

我們的雲端運算業務持續保持快速成長，付費客戶超過 50 萬名，營收年增 175%。我們推出了【DT+】平台，提供運算引擎、資料分析、【機器學習】、資料應用等大數據相關解決方案的一站式服務。我們正在與國際同業進行對標。

Lastly, our media and digital entertainment ecosystem is coming together nicely. We closed our acquisition of Youku Tudou in April which will anchor our video content and distribution reach. Our mobile browser, UCWeb, is now a powerful media distribution channel with its mobile search, mobile app delivery and UC Headlines news feed services.

最後，我們的媒體和數位娛樂生態系統正在順利融合。我們在四月完成了對酷馬鈴薯的收購，這將鞏固我們的視訊內容和分銷範圍。我們的行動瀏覽器 UCWeb 憑藉其行動搜尋、行動應用程式交付和 UC Headlines 新聞推送服務，現已成為強大的媒體分發管道。

In combination with our OTT set-top box, we now have robust multiscreen digital content distribution. More importantly, when combined with our retail commerce platform, we now offer unprecedented capability for multiscreen cross-platform integrated digital marketing.

結合我們的 OTT 機上盒，我們現在擁有強大的多螢幕數位內容分發。更重要的是，當與我們的零售商務平台結合時，我們現在可以提供前所未有的多螢幕跨平台整合數位行銷能力。

Data integration across our network of media assets and partners allow brands and marketers to convert our numerous traffic during marketing campaigns into identifiable users that can be tracked across our network of media assets and partners. Merchants will be able to more effectively engage and manage their customers and convert into sales on our retail commerce platforms.

透過我們媒體資產和合作夥伴網路的數據集成，品牌和行銷人員可以將行銷活動期間的大量流量轉化為可識別的用戶，並可在我們的媒體資產和合作夥伴網路中進行追蹤。商家將能夠更有效地吸引和管理他們的客戶，並在我們的零售商務平台上轉換為銷售。

Now I turn the call over to Maggie who will walk you through the details of our financial results.

現在我將電話轉給 Maggie，她將向您介紹我們的財務結果的詳細資訊。

Thank you, Daniel. Hello, everyone. We had a very strong quarter. Revenues grew 39% year on year to RMB24.2 billion, with China retail marketplace revenue growing 41% year on year. Activity on the platform is robust with 423 million annual active buyers and 410 million mobile MAUs. We have completed a successful mobile transition, with mobile revenue as a percentage of total China commerce retail revenue reaching 71%.

謝謝你，丹尼爾。大家好。我們本季表現非常強勁。營收年增39%至人民幣242億元，其中中國零售市場營收年增41%。該平台活動活躍，每年有 4.23 億活躍買家和 4.1 億行動月活躍用戶。我們已成功完成行動轉型，行動收入佔中國商業零售總收入的比例達71%。

Here are some financial highlights. Our March quarter year-on-year revenue growth rate of 39% was the highest of any growth rate in the past four quarters. It was driven primarily by the robust growth in our online marketing services revenue and exceptional growth of our cloud computing businesses, which grew 175% year on year.

以下是一些財務亮點。我們三月季度的年收入成長率為 39%，是過去四個季度中最高的成長率。這主要得益於我們的線上行銷服務收入的強勁成長以及雲端運算業務的出色成長，雲端運算業務年增了 175%。

We believe this growth in our China retail marketplace clearly demonstrates a recognition of the broader value proposition we provide to our merchants and brands. For full FY16, revenue grew 33% to over RMB100 billion.

我們相信，中國零售市場的成長清楚地表明了我們為商家和品牌提供的更廣泛的價值主張的認可。2016財年全年營收成長33%，超過1,000億元。

Our ability to monetize the users on our platforms continues to improve. Revenue per annual active buyer has been increasing for several quarters, reaching RMB189 in March quarter. On the mobile front, mobile revenue per mobile user has also been increasing for several quarters, reaching RMB123 in March quarter. We believe the monetization improvements this quarter are driven, and will continue to be driven, by two trends in our business.

我們平台用戶獲利能力不斷提升。年度活躍買家人均收入已連續幾季成長，3 月季度達到 189 元人民幣。在行動方面，每個行動用戶的行動收入也連續幾季成長，3月季度達到人民幣123元。我們相信本季貨幣化的改善是由我們業務中的兩個趨勢所推動的，並將繼續受到這兩個趨勢的推動。

First, the increased engagement of users on our commerce and media platform, as we launched social and community new products on Taobao marketplace. Second, the broad value proposition created by this engagement that we offer to merchants and brands. This includes not just sales generation, but also marketing brand engagement, customer acquisition and retention, and the future opportunity for upsell.

首先，隨著我們在淘寶市場上推出社交和社群新產品，我們的商業和媒體平台的用戶參與度有所提高。其次，我們透過這種合作為商家和品牌創造了廣泛的價值主張。這不僅包括銷售生成，還包括行銷品牌參與、客戶獲取和保留以及未來的追加銷售機會。

So let's take a look at the quarterly revenue breakdown. Cloud computing and Internet infrastructure revenue grew 175% year over year. The growth was primarily due to an increase in the number of paying customers, which have more than doubled since a year ago quarter to more than 500,000. And also, to an increase in their usage of more complex offerings, such as our constant delivery network and data-based services.

那麼就讓我們來看看季度營收明細。雲端運算和網路基礎設施收入較去年同期成長175%。這一成長主要歸功於付費客戶數量的增加，自去年同期以來，付費客戶數量增加了一倍多，達到 50 多萬人。此外，他們對更複雜產品的使用也增加了，例如我們的持續交付網路和基於數據的服務。

Other revenue increased 14% year over year. The growth was primarily driven by increasing revenue from mobile Internet services provided by UCWeb and AutoNavi. Excluding revenue related to the SME loan business, from both this quarter and the March quarter 2015, other revenue would have increased 51% to RMB1.5 billion this quarter. [Please recall] that a year ago quarter included interest income from the SME loan business that we disposed to Ant Financial in February 2015.

其他收入較去年同期成長14%。這一增長主要得益於UCWeb和高德提供的行動互聯網服務收入的增加。除去中小企業貸款業務相關收入，本季及2015年3月季度，其他收入均成長51%，達15億元。[請記住] 去年同期的業績包括我們於 2015 年 2 月出售給螞蟻金服的中小企業貸款業務的利息收入。

Quarterly March returns, you can see that our non-GAAP EBITDA margin was 48%, slightly lower than 49% in the March quarter of last year. Full year FY16 non-GAAP EBITDA margin was 52% versus 53% in full year FY15.

從三月的季度回報來看，您可以看到我們的非 GAAP EBITDA 利潤率為 48%，略低於去年三月季度的 49%。2016 財年全年非 GAAP EBITDA 利潤率為 52%，而 2015 財年全年為 53%。

We did see operating leverage from our core business, offset by strategic investments. Our core marketplace business continues to be very healthy, with EBITDA margin at around [60%], reflecting operating leverage.

我們確實看到了核心業務的經營槓桿，但卻被策略投資所抵消。我們的核心市場業務持續保持健康，EBITDA 利潤率約為 [60%]，反映了經營槓桿。

We will continue to develop and consolidate new businesses; for example, we will be consolidating Youku, Lazada in the coming quarter. They have information publicly disclosed, which you can tell they're still in a loss making, but they are strategically important to us. Going forward, we will be giving you further transparency on our core marketplace performance, as well as our new business performance.

我們將繼續發展和鞏固新業務；例如，我們將在下一季整合優酷、Lazada。他們有公開披露的信息，你可以看出他們仍然處於虧損狀態，但他們對我們具有戰略重要性。展望未來，我們將為您提供有關我們核心市場表現以及新業務表現的進一步透明度。

Cost of revenue, excluding stock-based compensation, was RMB8.5 billion. As a percentage of revenue it increased year over year, primarily due to an increase in costs associated with our new business initiatives, mainly our mobile operating system, entertainment and our OTT service.

不包括股票薪酬的營收成本為人民幣85億元。作為收入的百分比，其同比增長主要是由於與我們的新業務計劃相關的成本增加，主要是我們的行動作業系統、娛樂和我們的 OTT 服務。

In addition, logistic costs relating to fulfilled services provided our affiliate, Cainiao Network, increased. On a full-year basis, we paid Cainiao Network around RMB2.4 billion relating to logistic services, of which RMB689 million occurred during the March quarter.

此外，與我們的關聯公司菜鳥網路提供的履行服務相關的物流成本也有所增加。全年我們向菜鳥網路支付的物流服務費用約為人民幣24億元，其中3月份季度支付了人民幣6.89億元。

Product development expenses, excluding stock-based compensation, was RMB2 billion which, as a percentage of revenue was flat year over year. Sales and marketing expenses, excluding SBC, was RMB2.3 billion, decreasing slightly as a percentage of revenue due to operating leverage. G&A was RMB1 billion, also a slight decrease as a percentage of revenue due to operating leverage.

產品開發費用（不含股權激勵費用）為 20 億元，佔營收的百分比與去年同期持平。不包括SBC的銷售和行銷費用為人民幣23億元，由於經營槓桿的影響，佔收入的百分比略有下降。一般及行政開支為人民幣 10 億元，由於經營槓桿的影響，佔收入的百分比也略有下降。

The non-GAAP net income in the quarter was RMB7.6 billion, a decrease of 1% compared to RMB7.7 billion in March quarter 2015. Net income was negatively impacted, primarily because of a foreign exchange loss of approximately RMB500 million, related to our hedging of US dollar obligation in connection with our M&A activities.

本季非美國通用會計準則淨利為人民幣76億元，較2015年3月當季的人民幣77億元下降1%。淨收入受到負面影響，主要是因為我們在併購活動中對沖美元債務所產生的外匯損失約為人民幣 5 億元。

Additionally, this quarter we had a loss share from Ant Financial instead of a profit share. This is due to the net loss sustained by Ant during the quarter as a result of its proactive marketing and promotional activities to driver user growth and engagement, especially during the Chinese New Year holiday. Ant continues to invest to enhance their market leadership, which we believe is a very positive thing, given the enormous opportunity ahead of it.

此外，本季我們從螞蟻金服獲得的是虧損份額，而不是利潤份額。這是由於螞蟻集團在本季度採取了積極的營銷和促銷活動來推動用戶增長和參與度，尤其是在農曆新年假期期間，導致其在本季度遭受了淨虧損。螞蟻集團繼續投資以增強其市場領導地位，我們認為，考慮到未來的巨大機遇，這是一件非常積極的事情。

Despite the quarterly loss at Ant Financial, we believe we will derive long-term value from our economic interest and our right, subject to regulatory approval, to convert into 33% equity in Ant Financial, which recently completed a $4.5 billion round of financing from third parties at a post-money valuation of $60 billion.

儘管螞蟻金服出現季度虧損，但我們相信，我們的經濟利益和在獲得監管部門批准後轉換為螞蟻金服 33% 股權的權利將為我們帶來長期價值。螞蟻金服最近完成了一輪 45 億美元的第三方融資，投後估值為 600 億美元。

You see in our results announcement that we have provided additional disclosure on share of results from our equity investees. We believe this is a useful disclosure for investors to understand the performance of our major investee companies.

您可以在我們的業績公告中看到，我們對股權投資對象的績效份額提供了額外的揭露。我們相信，這對於投資者了解我們主要投資公司的業績是一個有用的披露。

Our share of Koubei's loss reflects Koubei's high investment and promotional spending during the start-up stage in December quarter, which will pick up on a quarter lag basis. We expect such share of loss to decrease in the future.

我們所承擔的口碑虧損反映了口碑在12月季度啟動階段的高額投資和促銷支出，這些支出將在一個季度的滯後基礎上回升。我們預計未來該份額的損失將會減少。

Cainiao's business continues to grow as well. Its recent fundraising validates its business progress and future potential. We expect Cainiao to continue invest in this business.

菜鳥的業務也在持續成長。其最近的融資證實了其業務進展和未來潛力。我們預計菜鳥將繼續投資該業務。

Regarding free cash flow, CapEx and cash, we continue to generate significant free cash flow. Our cash flow allows us strategic and operational flexibility to invest in technology and acquire the resources to accomplish our strategic objectives.

關於自由現金流、資本支出和現金，我們繼續產生大量自由現金流。我們的現金流使我們能夠在策略和營運上靈活地投資技術並獲取資源來實現我們的策略目標。

In March quarter, we generated RMB4.4 billion in free cash flow and, in FY16, we generated RMB51 billion, or about $8 billion free cash flow. Total cash CapEx expenditure in the March quarter was RMB683 million, a slight decrease from RMB700 million during the same quarter last year.

在三月季度，我們產生了 44 億元人民幣的自由現金流，而在 2016 財年，我們產生了 510 億元人民幣，約 80 億美元的自由現金流。3月季度現金資本支出總額為人民幣6.83億元，較去年同期的人民幣7億元略有下降。

As of March 2016, our cash, cash equivalents and short-term investments were RMB112 billion, a slight decrease from RMB118 billion at the end of December quarter, due to the net cash used for investment, acquisitions activities and share repurchase. We had a RMB112 billion cash balance is as of March 31 this year.

截至2016年3月，我們的現金、現金等價物及短期投資為人民幣1,120億元，較去年12月季末的人民幣1,180億元略有下降，原因是用於投資、收購活動及股票回購的淨現金。截至今年3月31日，我們的現金餘額為1,120億元。

Strategic investment portfolio; as a final note, we update our slide with regard to our major investee companies for investors to better understand their respective values.

策略投資組合；最後，我們更新了有關主要投資公司的幻燈片，以便投資者更了解它們各自的價值。

Looking ahead, our ecosystem keeps expanding and our business becomes big and more complex. In the new fiscal year, we plan to provide a greater degree of disclosure and insight into our business. This will include a few areas.

展望未來，我們的生態系統不斷擴大，我們的業務變得更大、更複雜。在新的財政年度，我們計劃對我們的業務提供更大程度的披露和洞察。這將包括幾個領域。

First, we will provide annual revenue guidance. We believe annual revenue guidance will take some of the guesswork and uncertainty out of the investors' effort to model our growth trajectory.

首先，我們將提供年度收入指導。我們相信，年度收入指導將消除投資者在模擬我們的成長軌跡時產生的一些猜測和不確定性。

Second, we continue to invest for the long term, with the priority on achieving our longer term strategic goals. These new businesses may have different cost structure and margins, especially when they are in developing stages. In order to help investors better understand our core business results, as well as the development of our new business, when we report the first quarter of FY17, we plan to provide more clarity on financial performance of our core business versus new businesses.

第二，我們持續進行長期投資，優先實現我們的長期策略目標。這些新業務可能具有不同的成本結構和利潤率，尤其是在發展階段。為了幫助投資者更了解我們的核心業務表現以及新業務的發展，在報告2017財年第一季時，我們計劃更清楚地說明核心業務與新業務的財務表現。

Third, Cainiao Network has been developing rapidly and we've already provided more disclosure today in this area to help investors better understand Cainiao's business; specifically, how it is doing financially and how its performance impacts Alibaba's financial statements. We plan to share more about the business in the future.

第三，菜鳥網絡發展迅速，我們今天已經在這方面做了更多的披露，幫助投資者更好地了解菜鳥的業務，特別是它的財務狀況以及它的業績對阿里巴巴財務報表的影響。我們計劃在未來分享更多有關該業務的資訊。

Additional information about these three areas will be shared at our Investor Day, which will be held in Hangzhou next June. For those not attending in person, the presentation materials will be available on our IR website.

我們將在明年六月於杭州舉行的投資者日上分享更多關於這三個領域的資訊。對於無法親自出席的人員，演示材料將在我們的 IR 網站上提供。

That concludes our prepared remarks. Operator, we're ready to begin the Q&A session. Thank you.

我們的準備好的演講到此結束。接線員，我們準備開始問答環節。謝謝。

(Operator Instructions). Erica Poon Werkun, UBS.

（操作員指令）。瑞銀的 Erica Poon Werkun。

I have two questions. My first question is about your value adding to merchants. I think you've been talking about how Alibaba's role with merchants has been evolving from one of a sales channel to become more of a holistic marketing channel. Could you share with us how many and what type of your merchants are working with Alibaba on these marketing initiatives?

我有兩個問題。我的第一個問題是關於您為商家增加的價值。我想您一直在談論阿里巴巴對於商家的角色如何從一個銷售管道演變為一個更全面的行銷管道。您能否與我們分享一下有多少商家以及哪些類型的商家正在與阿里巴巴合作進行這些行銷活動？

And my second question is, in the earlier remarks, Joe talked about bringing key initiatives from investment phase to cash generation. I just wonder if you can share with us where you are in the investment cycles for the strategic initiatives like cloud computing, digital entertainment and local services, and wondering if you can frame the size of investments for these initiatives into FY17. Thank you.

我的第二個問題是，在先前的評論中，喬談到了將關鍵舉措從投資階段轉移到現金產生階段。我只是想知道您是否可以與我們分享您在雲端運算、數位娛樂和本地服務等戰略計劃的投資週期中所處的位置，並想知道您是否可以將這些計劃的投資規模納入 2017 財年。謝謝。

Thanks, Erica. This is Daniel. I would like to answer the first question. As you know that actually today, on our China retail platform, in both Taobao and Tmall together, we have hundreds of millions of active sellers on our platform. And all these sellers are our active marketers and they spend marketing dollars on our P4P, on our display ads and also in our affiliate network.

謝謝，艾麗卡。這是丹尼爾。我想回答第一個問題。如你所知，實際上今天在我們的中國零售平台上，淘寶和天貓加起來，我們的平台上有數億活躍賣家。所有這些賣家都是我們的活躍行銷人員，他們在我們的 P4P、展示廣告和聯盟上花費行銷費用。

Today, their evaluation of the effectiveness of the marketing dollar spending is not only to look at the immediate sales and immediate ROI on our marketplace, but for a lot of the retailers and the brands they have the offline business, they will also look at the effectiveness of this marketing spending in terms of the acquisition of the new customers, in terms of managing the existing customers and retained customers.

如今，他們對行銷支出有效性的評估不僅要看我們市場上的即時銷售額和即時投資回報率，而且對於許多擁有線下業務的零售商和品牌來說，他們還會從獲取新客戶、管理現有客戶和留住客戶的角度來考慮行銷支出的有效性。

So actually, as I said in my script, this will ultimately benefit their entire business, both on and offline. So actually, today, this is our solid marketer base and we expect that they will continue to do so in our enhanced ecosystem, not only in our marketplace today, but also [in shape] media and entertainment ecosystem.

因此實際上，正如我在腳本中所說的那樣，這最終將使他們的整個業務（包括線上和線下）受益。因此，實際上，今天，這是我們堅實的行銷人員基礎，我們預計他們將在我們增強的生態系統中繼續這樣做，不僅在我們今天的市場中，而且在媒體和娛樂生態系統中。

Okay. Hey, Erica. Thanks for your second question; both myself and Maggie will cover that. You mentioned the different businesses in different investment phases and you wanted to understand the sizing of investments. I think you mentioned cloud computing. I'll cover that and then I'll let Maggie talk about the digital entertainment.

好的。嘿，艾麗卡。感謝您的第二個問題；我和 Maggie 都會回答這個問題。您提到了不同投資階段的不同業務，並且您想了解投資規模。我認為您提到了雲端運算。我會講到這個，然後讓瑪姬談談數位娛樂。

As you could see, the cloud computing business grew 175% revenues year on year. In absolute dollar terms, it's also coming into a significant dollar level. So we're very, very excited about this business. As I said in my prepared remarks, we are now already one of the largest cloud computing businesses in the world, so we're benchmarking not just in China, but also against the world.

可以看到，雲端運算業務營收年增了175%。從絕對美元價值來看，它也正在進入一個相當重要的美元水平。所以我們對這項業務感到非常非常興奮。正如我在準備好的發言中所說，我們現在已經是世界上最大的雲端運算企業之一，因此我們不僅在國內樹立標桿，也在世界範圍內樹立標竿。

And the business, as you know, can gain tremendous scale. When it reaches tremendous scale, it has a tremendous amount of operating leverage. So we are looking, over the course of this year, that this business will not require a lot of additional investment into the business as it's generating cash flow. That is how we look at the cloud computing business; high growth, and also coming into a high trajectory in terms of operating leverage.

而且正如你所知，這項業務可以實現巨大的規模。當其達到巨大規模時，它就會擁有巨大的經營槓桿。因此，我們預計，今年該業務將不需要大量額外投資，因為它正在產生現金流。這就是我們對雲端運算業務的看法：高成長，在營運槓桿方面也進入高軌跡。

I'll turn the mic over to Maggie to talk about digital entertainment.

我將把麥克風交給 Maggie 來談論數位娛樂。

Right. So digital entertainment is a relatively new area that we invested. When you look at it, the major asset there right now is Youku. We also have [music and sports] that are relatively small. So we just closed the Youku transaction in April; it's very recent.

正確的。因此，數位娛樂是我們投資的一個相對較新的領域。如果你看一下，你會發現那裡目前的主要資產是酷。我們也有相對較小的[音樂和體育]。我們剛剛在四月完成了優酷的交易；這是最近的事。

And then, if you look at the market consensus for Youku before our acquisition, Youku was also a public company, you will notice that there are going to a couple of percentage point of margin dilution to ours. But the thing is, like Joe said in his remarks, when you look at all of our past business, we have this history of investing in long-term initiatives with patience.

然後，如果你看看我們收購之前的酷市場共識，酷也是一家上市公司，你會注意到我們的利潤率將會被稀釋幾個百分點。但事實是，正如喬在演講中所說的那樣，當你回顧我們過去的所有業務時，你會發現我們一直耐心地投資於長期計劃。

So new initiatives, very interestingly, typically it takes like five to seven years to grow into substantial profitability, so we're going to, in near term, continue to invest in this digital entertainment area. This is just the beginning of the business.

非常有趣的是，新措施通常需要五到七年的時間才能實現實質獲利，因此，我們將在短期內繼續投資於數位娛樂領域。這只是業務的開始。

Sean Zhang, 86Research.

Sean Zhang，86 研究。

Congratulations on a strong quarter. We recently noticed you are rolling out product-level and store-level [initiative], 1,000 people saw the interface initiative. Wondering what the timetable for a full launch, and so far, in your testing phase, what kind of result you have seen? Maybe management can share with us some color there.

恭喜本季業績強勁。我們最近注意到您正在推出產品級和商店級[倡議]，有 1,000 人看到了介面倡議。想知道全面發布的時間表是什麼，到目前為止，在測試階段，您看到了什麼樣的結果？也許管理層可以與我們分享一些顏色。

And also, we noticed some increased effort to support Tmall trends, such as the search portal on Taobao app is changed to highlight Tmall and personalization. Wondering what [stock profit share] will be the trend for Tmall generally, going forward. Thank you.

此外，我們還注意到，為了支援天貓趨勢，我們做出了一些努力，例如淘寶應用程式上的搜尋入口網站已更改為突出天貓和個人化。想知道未來天貓的整體趨勢會是怎樣。謝謝。

This is Daniel. For the first question, yes, as a platform, actually our value add to our merchant is that to enable them to operate their storefront effectively. So today, what we are doing is to use the big data we have to help the merchant to tailor-make their storefront to the right audience and in the right location.

這是丹尼爾。對於第一個問題，是的，作為一個平台，我們實際上為商家增加的價值是使他們能夠有效地經營他們的店面。所以今天，我們所做的就是利用我們擁有的大數據來幫助商家根據正確的受眾和正確的位置定制店面。

So, so far, we are still actually in the beta test and we work closely with a couple of partners, a couple of sellers to do that. So far, the result is very encouraging. Because of the targeting, because of the data-driven service, actually the effectiveness of the ROI of the traffic, ROI of the traffic actually improved very tremendously.

所以，到目前為止，我們實際上仍處於 Beta 測試階段，並且我們與一些合作夥伴、一些賣家密切合作完成這項工作。到目前為止，結果非常令人鼓舞。由於目標明確，由於數據驅動服務，流量投資回報率 (ROI) 的有效性實際上得到了極大的提高。

We will continue to monitor the progress and, hopefully, we will pretty soon roll out this service to all our users and to all our merchants on our platform. We expect the merchants can utilize this big data weapon to maximize their return of the traffic they get in the storefront.

我們將繼續監控進展情況，並希望很快向我們平台上的所有用戶和所有商家推出這項服務。我們期望商家能夠利用這項大數據武器，最大限度地提高店面流量的回報。

And for the second question, actually we always manage our business as a whole, and Taobao and Tmall have separate brands. But actually, in Taobao mobile app, people can find items both from Taobao and from Tmall. And we did not give any preference in mobile Taobao app especially to promote Tmall products.

第二個問題，其實我們一直都是整體管理的，淘寶和天貓都有各自的品牌。但實際上，在淘寶手機應用程式中，人們可以找到來自淘寶和天貓的商品。而且我們在手機淘寶app上沒有特別優惠，特別沒有推廣天貓產品。

Actually, what we changed is that basically for the convenience of the users, because a lot of people want to select the item from Tmall directly. So we give them a shop tag people can easily scan and get the results directly from Tmall. So that's all we want to do and the purpose of this again is to improve the user experience. Thank you.

實際上，我們做出的改變基本上是為了方便用戶，因為很多人想直接從天貓選擇商品。因此，我們為他們提供了一個商店標籤，人們可以輕鬆掃描並直接從天貓獲得結果。這就是我們想要做的一切，目的是為了改善使用者體驗。謝謝。

Robert Lin, Morgan Stanley.

摩根士丹利的羅伯特·林。

Congratulations on the very strong results. I have two questions here; I guess one is under international. We announced the acquisition of Lazada, and we also noticed that the international retail has accelerated after our restructuring of the AliExpress platform. Can you provide some insight on how we plan to integrate the two platforms more in the medium term? Are we separate operated and potentially cross-sell with our merchants?

恭喜您取得如此優異的成績。我這裡有兩個問題；我想其中一個與國際有關。我們宣布收購Lazada，同時我們也注意到在我們對速賣通平台進行重組之後，國際零售已經加速發展。您能否就我們計劃如何在中期內進一步整合這兩個平台提供一些見解？我們是否獨立經營並可能與商家進行交叉銷售？

And I guess in terms of the timing, Joe you pointed out that these are long-term bets and there's three of them. Would you say international is one of those that will likely be profitable quicker than the others within those three that you mentioned?

我想就時機而言，喬，你指出這些都是長期賭注，而且有三個。您是否認為國際業務是比您提到的三個業務中其他業務更快獲利的業務之一？

I guess the second question more on Cainiao logistics. We do appreciate the improved disclosure. In the cost of sales line we talked about 3% revenue, RMB689 million, for the logistic fulfillment for the merchants. Can you provide additional insight on what that is and how should we think about that cost, going forward?

我想第二個問題更多是關於菜鳥物流的。我們非常欣賞改進的披露。在銷售成本中，我們談到了3%的收入，即6.89億元人民幣，用於商家的物流配送。您能否提供更多見解，說明這是什麼以及我們今後應該如何考慮這項成本？

Thanks. This is Daniel again. I would like to answer the first question about the international expansion. Yes, Lazada is a very important acquisition. As people know, Lazada now has a very good brand recognition in South Asia countries, and especially in five or six countries they are all in the leading position. And this market actually we have over 500 million consumers, so that's why we think this is a good vehicle for us to expand to this area.

謝謝。我又是丹尼爾。我想回答第一個關於國際擴張的問題。是的，Lazada 是一次非常重要的收購。眾所周知，Lazada目前在南亞國家擁有非常好的品牌知名度，特別是在五、六個國家都處於領先地位。這個市場實際上有超過 5 億消費者，因此我們認為這是我們向該領域擴張的良好工具。

Yes, in our portfolio we also have our self-operated, [self-billed] AliExpress business, and we are happy to see that there is good synergies between AliExpress and Lazada. And in terms of the countries' coverage, actually AliExpress is now very strong in Russia, very strong in some European countries, and in the US, while Lazada is very strong in Southeast Asia. So this gives us a wider coverage and this is good for us to achieve our 2 billion consumer vision.

是的，我們的投資組合中也有自營、自銷的 AliExpress 業務，我們很高興看到 AliExpress 和 Lazada 之間有良好的協同效應。從國家覆蓋範圍來看，實際上 AliExpress 現在在俄羅斯、一些歐洲國家和美國都非常強大，而 Lazada 在東南亞非常強大。因此，這給了我們更廣泛的覆蓋範圍，這有利於我們實現 20 億消費者的願景。

In terms of synergies we can generate from these two businesses, it's obvious. What we want to do is that first to leverage the merchant base we have, not only in AliExpress but also in our China retail platform, to help more Chinese merchants on-boarding Lazada and help them to get access to the consumers in Southeast Asia. We are happy to see that, after our acquisition, a lot of clients call me and ask these questions to show their interest. And we expect that we will pick up this process as a very important component of the integration.

就我們可以從這兩項業務中產生的協同效應而言，這是顯而易見的。我們要做的是，首先利用我們現有的商家基礎，不僅在 AliExpress，而且在我們的中國零售平台上，幫助更多的中國商家加入 Lazada，並幫助他們接觸東南亞的消費者。我們很高興地看到，在我們收購之後，許多客戶打電話給我並詢問這些問題以表示他們的興趣。我們期望將這一過程作為整合的一個非常重要的組成部分。

In terms of profitability I would say, as we always do, we will invest in this international business, and what we will care about is the market share in the local country and the customer engagement and retention. And we believe that customers with us, then merchants will be with us and we will generate value. As long as we can provide value to the merchants to get access to the customers to serve the customers, then we can generate enough economics from this international business. Thank you.

就獲利能力而言，我想說，正如我們一貫的做法，我們將投資於這項國際業務，我們關心的是當地國家的市場份額以及客戶參與度和保留率。我們相信，客戶與我們同在，商家也會與我們同在，我們將創造價值。只要我們能夠為商家提供價值，讓他們接觸客戶、服務客戶，我們就可以從這項國際業務中獲得足夠的經濟效益。謝謝。

Robert, this is Maggie. Regarding to your question about the logistics cost we paid to Cainiao, when you look at the total cost for the full year, RMB2.37 billion, which was about 2% of our revenue paid to Cainiao, that's mainly associated with time logistics fulfillment services Cainiao provided to AGH, to the Ali Group, for certain businesses we conducted in the Group, businesses such as Tmall supermarkets and rural. If you look forward, these are areas still in early stage. So we're going to keep expanding and then Cainiao's also going to continue to provide these services. So if you look at the total logistic cost we're going to pay in the future, it will grow.

羅伯特，這是瑪吉。關於你提到的我們支付給菜鳥的物流成本，全年總成本為23.7億元人民幣，約占我們支付給菜鳥的收入的2%，這主要與菜鳥向AGH、阿里集團提供的定時物流履行服務有關，這些服務用於我們在集團內開展的某些業務，例如天貓超市和農村業務。如果你展望未來，這些領域仍處於早期階段。因此，我們將繼續擴張，菜鳥也將繼續提供這些服務。因此，如果你看看我們未來要支付的總物流成本，它就會成長。

Eddie Leung, Merrill Lynch.

美林證券的 Eddie Leung。

Two questions. The first one is about product categories. Would you mind sharing more color with us on the recent performance of some of your key product categories, because we have read articles and sometimes even press releases about the performance of some categories in certain regions? So I'm wondering if you could summarize some of the trends and share with us. That's the first question.

兩個問題。第一個是關於產品類別。您是否介意與我們分享一些主要產品類別的近期表現詳情，因為我們讀過一些關於某些地區某些產品類別表現的文章，有時甚至是新聞稿？所以我想知道您是否可以總結一些趨勢並與我們分享。這是第一個問題。

And then secondly, also a follow-up question on Cainiao. Besides what Maggie mentioned about, for example, the geographical coverage and rural areas, so just wondering where we would see Cainiao going beyond China, because we have been seeing more activities on AliExpress, as well as some of these new regions that [see their income as basis]. Thanks.

其次，還有一個關於菜鳥的後續問題。除了 Maggie 提到的地理覆蓋範圍和農村地區之外，我只是想知道菜鳥在中國以外的哪些地區開展業務，因為我們已經看到 AliExpress 上開展了更多活動，以及一些 [以收入為基礎] 的新地區。謝謝。

Thanks, Eddie. This is Daniel. For the product categories' development, let me try to give you some color on this. First, what we can see that the main categories, such as apparel and consumer electronics, still show very strong growth. And especially Q1 for apparel and the winter time this year quite unusual; it's not that cold in December and in January, but it's quite cold in February and March. This drives the sales of apparel to a certain extent, but not dramatically. The reason is because most of the sellers their stock is not enough in late Q1 to support the sales of the winter products.

謝謝，埃迪。這是丹尼爾。對於產品類別的發展，讓我試著給你一些說明。首先，我們可以看到，服裝、消費性電子產品等主要類別仍然表現出非常強勁的成長動能。尤其是第一季的服裝，今年的冬季相當不尋常；12 月和 1 月不是那麼冷，但 2 月和 3 月卻相當冷。這在一定程度上推動了服裝的銷售，但幅度並不大。原因是大多數賣家在第一季末的庫存不足以支撐冬季產品的銷售。

And for consumer electronics, actually we are doing very well in consumer electronics, especially in the large ticket items, and supported by our Cainiao affiliated network. For cellphones in March, I would say the entire market, the big picture is not that good because the supply chain for the entire business had a [big headache] in Q1. So what we can expect that in Q2 the business will warm up. But having said that, the entire market almost fully penetrated by smartphones, and the total shipment for this year, for the entire cellphone business, cellphone industry, won't show a dramatic growth. But I expect that ecommerce will continue to take share from the entire business.

至於消費性電子產品，實際上我們在消費性電子產品方面做得很好，特別是在大宗商品方面，並且得到了菜鳥附屬網絡的支持。對於三月的手機市場，我想說整個市場，整體情況都不太好，因為整個產業的供應鏈在第一季都遇到了很大的麻煩。因此我們可以預期第二季業務將會回暖。但話說回來，整個市場基本上已經被智慧型手機滲透了，今年整個手機業務、手機產業的出貨量不會大幅的成長。但我預期電子商務將繼續佔據整個業務的份額。

And the last one is the fast growing categories. What we can see today, especially in Q1, also driven by the Chinese New Year consumption, what we can see is food, and especially fresh food, and FMCG products and healthcare, show very good growth. And I think in terms of penetration, online penetration by category, food, especially fresh food, still with a lower penetration, and we can expect the rapid growth in the coming quarters and coming years.

最後一個是快速成長的類別。我們今天看到，特別是在第一季度，受中國春節消費的推動，食品，特別是生鮮食品、快速消費品和醫療保健都呈現出非常好的成長。我認為，就滲透率而言，按類別劃分的線上滲透率，食品，尤其是新鮮食品，滲透率仍然較低，我們可以預期未來幾季和未來幾年將快速成長。

Right, Eddie, regarding the Cainiao question, I want to make it clear that Cainiao is not a traditional logistic service provider. So by the time we set it up, we invested -- we have right now 47% shareholding in Cainiao, it tend to be a logistic data company, an information company. So when you look at, nowadays we have around 35 million packages being delivered, Cainiao has been only less than three years old. Before Cainiao was there, packages had been handled but never been handled at this efficiency as we have seen today.

是的，Eddie，關於菜鳥的問題，我想澄清一下，菜鳥不是傳統的物流服務提供者。因此，當我們成立菜鳥網絡時，我們就進行了投資——我們現在擁有菜鳥網絡 47% 的股份，它是一家物流數據公司，一家資訊公司。所以，現在我們大約有 3500 萬個包裹需要遞送，而菜鳥成立才不到三年。在菜鳥之前，雖然也有處理包裹，但從來沒有像今天這樣有效率。

And what Cainiao has been focused on is to line up and set up this information hub, the information center, and utilizing the data it has to improve the efficiency in the whole logistic chain, rather than just providing fulfillment and delivery services.

而菜鳥一直致力於建構這個資訊樞紐、資訊中心，利用它所擁有的數據來提高整個物流鏈的效率，而不僅僅是提供配送服務。

Having said that, then look at the cost we pay to Cainiao, these are services provided Cainiao and its aligned to our, like the Tmall supermarket and rural businesses. This is the testing field for Cainiao to further setup its information hub, and also to have this testing field for the data usage to improve the efficiency for us and also for the partners in the logistic area.

話雖如此，再看看我們支付給菜鳥的成本，這些都是菜鳥提供的服務，與我們保持一致，例如天貓超市和農村業務。這是菜鳥進一步建立資訊中心的試驗場，也是我們利用數據提高我們和物流領域合作夥伴的效率的試驗場。

Vivian Hao, JPMorgan.

摩根大通的 Vivian Hao。

I have two questions here. My first one is regarding the related impact from recent tax policy change and also more strict custom checks on [CyCo] for both Taobao and Tmall platforms. Can we get a rough sense of CyCo percentage of our total GMV?

我這裡有兩個問題。我的第一個問題是關於最近的稅收政策變化以及淘寶和天貓平台對[CyCo]更嚴格的海關檢查的相關影響。我們能否大致了解 CyCo 占我們總 GMV 的百分比？

My second question is regarding the outperformance of cloud computing. Is it possible if we can get a penetration or adoption rate of all AliCloud services and not merchants? Also, what should we expect as the margin profile, going forward, given the business scale's up quite impressively? Thank you.

我的第二個問題是關於雲端運算的優異表現。我們是否可以獲得所有阿里雲服務（而不是商家）的滲透率或採用率？此外，鑑於業務規模的大幅成長，我們對未來的利潤率狀況應該有何預期？謝謝。

Thanks, Vivien. For the first question, actually, on our Taobao and Tmall business, we have two main businesses relating to the cross-border imports. The first one actually is Tmall global, which is not CyCo, which is a B2C model, and we have a lot of foreign partners, foreign brands and retailers on our Tmall global platform to do the cross-border sales. And the recent change in government policy do have some impact on Tmall global business and also, I think, the entire import industry also have some impact.

謝謝，薇薇安。第一個問題，實際上我們在淘寶和天貓業務中，有兩項主要業務與跨國進口有關。第一個其實是天貓國際，它不是CyCo，它是B2C模式，我們在天貓國際平台上有許多外國合作夥伴、外國品牌和零售商來進行跨國銷售。而最近政府政策的變化確實對天貓國際業務產生了一定的影響，而且我認為整個進口產業也受到了一定的影響。

But having said that, actually, we are happy to see the government regulate this cross-border import because we did observe that there are a lot of [trade] activities in the bonded warehouse solution structure. So the change in government policy actually can eliminate all these activities and actually, we believe that Alibaba can benefit from this and to do whatever business model under the regulation.

但話雖如此，實際上，我們很高興看到政府對跨境進口進行監管，因為我們確實觀察到保稅倉庫解決方案結構中有很多[貿易]活動。因此，政府政策的變化實際上可以消除所有這些活動，實際上，我們相信阿里巴巴可以從中受益，並在監管下進行任何商業模式。

Actually today, bonded warehouse and change of the tax rate, and the [CIQ] requirement, etc., do have an impact. But actually, government will encourage, for example, the general trade model, and this is all cross-border general trade, bonded warehouse solutions, actually we're basically pursuing all the models available in the market.

其實今天保稅倉庫、稅率的變動、CIQ的要求等等，都是有影響的。但實際上，政府會鼓勵，例如一般貿易模式，這都是跨境一般貿易、保稅倉庫解決方案，實際上我們基本上追求市場上所有可用的模式。

We believe that the consumption is always there and people want to buy high-quality products from overseas market. So the demand is so solid and we believe that business will continue to grow. And we're also happy to see that, following the policy change, the government is actively monitor the market reaction. Actually, our team is now working very closely with the government and the regulators to share our [observations] and give them our feedback.

我們相信消費永遠存在，人們希望從海外市場購買高品質的產品。因此需求非常強勁，我們相信業務將繼續成長。我們也很高興地看到，隨著政策的變化，政府正在積極監測市場反應。實際上，我們的團隊現在正與政府和監管機構密切合作，分享我們的觀察並向他們提供回饋。

And for the other part of the cross border, actually, as you said, is CyCo and in our Taobao marketplace we have a global buy business, potential growth in Chinese. Actually, this is a personal CyCo, individual CyCo. Actually, this business have been there for many years and we see very active trading in this global buyer. And we also see a very magic phenomenon, which is a lot of social network and opinion leaders arises in this global buy business.

至於跨境的另一部分，實際上，正如您所說，是 CyCo，在我們的淘寶市場，我們有全球購買業務，在中國有潛在的成長。實際上，這是一個個人 CyCo，個體 CyCo。實際上，這項業務已經存在很多年了，我們看到這個全球買家的交易非常活躍。我們也看到一個非常神奇的現象，那就是在這個全球購買業務中出現了大量的社交網路和意見領袖。

And I think this is a very unique strength for Taobao to do this cross-border social commerce because, for most of Chinese citizens, they are not aware of a lot of international products. Actually, they need opinion leader, they need talent to share their experience and share their experience of a product and a service to them then they will follow and to consume. So this is the magic of Taobao and we will continue to do this to enable our consumers to find, to enjoy the fun of cross border, enjoy the fun of CyCo in our global marketplace. Thanks.

我認為這是淘寶進行跨國社交商務的一個非常獨特的優勢，因為對大多數中國公民來說，他們並不了解很多國際產品。實際上，他們需要意見領袖，他們需要人才來分享他們的經驗，並與他們分享對產品和服務的體驗，然後他們才會追隨和消費。這就是淘寶的魔力，我們將繼續這樣做，讓我們的消費者能夠發現、享受跨國的樂趣，並享受我們全球市場上 CyCo 的樂趣。謝謝。

Vivian, regarding the cloud question, you've seen that our cloud business grow very rapidly. If you look at the top line it is growing at three digits and we expect that the growth is going to continue. And I should say that AliCloud is getting very close to the break-even point, so if we want to turn this business into profit, then we can do it very soon.

薇薇安，關於雲端問題，您已經看到我們的雲端業務成長非常迅速。如果你看一下營業收入，它正在以三位數的速度成長，我們預計這種成長將會持續下去。而且我應該說阿里雲已經非常接近盈虧平衡點了，所以如果我們想讓這項業務獲利，那麼我們很快就能做到。

And I think that the growth is mainly coming from, number one, the increased number of paying customers. We reported we have over 500,000 paying customers at the end of March, compared to 240,000 we reported a year ago, so very rapid growth. And these customers are across all size and across different industries.

我認為成長主要來自於付費客戶數量的增加。根據我們報告，截至三月底，我們的付費客戶數已超過 50 萬，而去年同期為 24 萬，因此成長速度非常快。這些客戶規模各異，遍佈不同產業。

Another growth driver is the continued expanding the variable products and services, and also continued enhancement of the technology and the quality of these products, so we are very optimistic to the cloud business. We have seen that other players are reporting at the beginning break even and then 16% and 18% of the margin, and then continue expanding. We don't see any big difference from the AliCloud and other players, like [AWS].

另一個成長動力是不斷擴大可變產品和服務，以及不斷提高這些產品的技術和質量，因此我們對雲端業務非常樂觀。我們看到其他參與者一開始都報告盈虧平衡，然後利潤率達到16%和18%，然後繼續擴大。我們沒有看到阿里雲和其他參與者（如 [AWS]）有什麼大的差異。

Just to sum up what Maggie said, I think, Vivian, you also asked about the adoption rate of cloud computing from our merchant base. The cloud computing business is a business that its customer base is very wide, well beyond just the ecommerce merchants that are doing business on our platform.

總結一下 Maggie 所說的內容，Vivian，我想您也詢問了我們的商家群體對雲端運算的採用率。雲端運算業務的客戶群非常廣泛，遠遠超出了在我們平台上開展業務的電子商務商家。

We see a lot of potential in different segments, in corporates, in SMEs and also in government segments, and then in vertical segments like financial services, healthcare, game developers, so it runs the gamut. So you should think about the customer base of cloud computing as well beyond our existing customer base.

我們在不同的領域都看到了巨大的潛力，包括企業、中小企業、政府部門，以及金融服務、醫療保健、遊戲開發商等垂直領域，所以它涵蓋了各個方面。因此，除了我們現有的客戶群之外，您還應該考慮雲端運算的客戶群。

Now, our merchant base right now, a lot of them are using the service effectively for free because they're using the service in one-time situations. For example, on November 11 when there's a surge in volume and traffic in their business, they will come on to our [Juhuasuan] platform to enjoy the cloud computing service for free. And so in terms of adoption, a lot of them are already on our cloud computing platform, but in terms of paying potential, I think there's a lot of room to grow.

現在，我們的商家群體中有很多都在免費有效地使用這項服務，因為他們只是在一次性的情況下使用這項服務。例如雙十一，他們的業務量、流量都會暴增，他們就會來我們聚划算平台免費享受雲端運算服務。因此，就採用而言，許多公司已經使用我們的雲端運算平台，但就支付潛力而言，我認為還有很大的成長空間。

Vivian, I'm Daniel. I just want to add one more comment on the first question. Yes, actually the government policy change actually do have some impact on our cross-border import, but I have to say that today, in terms of scale, this business is in a low base and this won't have any material impact on our entire retail business.

薇薇安，我是丹尼爾。我只想對第一個問題補充一點評論。是的，實際上政府的政策變化確實對我們的跨境進口產生了一些影響，但我不得不說，今天，從規模上講，這項業務的基數較低，這不會對我們的整個零售業務產生任何實質影響。

And for our C2C global buy, actually this policy change does not have any impact. Thanks.

而對於我們C2C全球購來說，其實這個政策的改變是沒有什麼影響的。謝謝。

Carlos Kirjner, Bernstein.

卡洛斯·柯基納，伯恩斯坦。

I have two questions. One about the Ant losses and one about customer loyalty. Can you talk a little bit about the losses at Ant Financial? Shouldn't that business be at a large enough scale to acquire customers, grow and also make money at this point?

我有兩個問題。一個是關於螞蟻的損失，另一個是關於客戶忠誠度。可以談談螞蟻金服的虧損狀況嗎？此時，該業務的規模不應該足夠大才能獲得客戶、發展壯大並賺錢嗎？

I know you said in the press release, and Maggie reinforced the view, that you're confident that Ant will be valuable, so set aside the private valuation round, can you add some color on any operational business metrics that help us understand why you think there's going to be a lot of value from their business?

我知道您在新聞稿中說過，而且 Maggie 也強調了這一觀點，您相信螞蟻金服將會很有價值，所以拋開私人估值輪次，您能否對任何運營業務指標進行一些說明，以幫助我們理解為什麼您認為他們的業務將有很大的價值？

Secondly, on a separate topic, do you believe there will ever be room for some type of loyalty program like Amazon does with Prime on your platform? Is that type of program just not practical in a marketplace construct?

其次，談一個單獨的話題，您是否認為您的平台上會有類似亞馬遜 Prime 那樣的忠誠度計劃的空間？這種類型的程序在市場建構上是否不實用？

And if you don't have something like Prime and you think of a [Cainiao beauty] fulfillment centers, do you think it will be able to attract sellers to fulfillment centers and scale them and make money with that business? Thank you.

如果您沒有 Prime 之類的服務，而只想到菜鳥美妝配送中心，您認為它能夠吸引賣家到配送中心，擴大規模，並透過這項業務賺錢嗎？謝謝。

Right, Carlos. It's Maggie. The Ant question, if you look at in this quarter, we shared some losses from Ant; actually in previous quarter, we have always shared profit from them. That quarterly loss was mainly the result of its marketing promotion activities to drive their user growth and engagement, especially during this Chinese New Year holiday.

對的，卡洛斯。是瑪吉。關於螞蟻的問題，如果你看一下這個季度，我們發現螞蟻集團出現了一些虧損；實際上，在上一季度，我們一直從他們那裡獲得利潤。該季度虧損主要是由於其為推動用戶成長和參與度而開展的營銷推廣活動，尤其是在農曆新年假期期間。

We are very happy to see that Ant has been progressing very nicely, and their customer base and their various business expansions are very healthy. This also can be evidenced by their recent round of finance which indicates the published -- I mean the valuation is already over $60 billion.

我們很高興看到螞蟻金服的進展非常順利，他們的客戶群和各項業務擴展都非常健康。這也可以從他們最近一輪的融資中得到證明，這表明估值已經超過 600 億美元。

So we think that overall, actually, if you look at the whole year FY16 for Ant, they are a profit-making business. We believe that this is still going to be the case. So there is some seasonality. There is also the strategic investment decisions to make for the next round of growth.

因此，我們認為，總體而言，實際上，如果你看一下螞蟻集團 2016 財年全年業績，你會發現他們是一家盈利的企業。我們相信這種情況仍將持續下去。因此存在一些季節性。還需要為下一輪成長做出策略性投資決策。

We're going to do a deep dive on Ant Financial on our Investor Day in June.

我們將在六月的投資者日對螞蟻金服進行深入探討。

For the question of customer loyalty programs, yes, customer loyalty is so important in our retail business. Today, we have over 400 million active buyers on our retail platforms, and one of the key operating targets is to maximize the customer spending across categories.

對於客戶忠誠度計畫的問題，是的，客戶忠誠度在我們的零售業務中非常重要。如今，我們的零售平台擁有超過4億活躍買家，而關鍵營運目標之一就是最大化客戶跨類別的支出。

And especially today, right after our acquisition of digital entertainment business, Youku, and also our investment in [AutoNavi] and how to cross-sell our physical products with the digital entertainment products and local service, actually, this could create a good opportunity for us to enhance users' [business] and also, to do the cross sales. So we are very actively working on this, but we won't just replicate the loyalty program for any other companies, because actually, we are such a unique landscape and our user base is huge now.

尤其是今天，在我們收購數位娛樂業務優酷，以及我們對高德軟體的投資之後，如何將我們的實體產品與數位娛樂產品和本地服務進行交叉銷售，實際上，這可以為我們創造一個很好的機會來提升用戶的業務，同時也可以進行交叉銷售。因此，我們正在積極地致力於此，但我們不會為其他公司複製忠誠度計劃，因為實際上，我們是一個獨特的領域，而且我們現在的用戶群非常龐大。

Also, we have a platform and we have very unique strengths which not only us who can do these cross sales and to enhance customer loyalty, we have so many merchants, so many brands with us, each of them have the strong desire to have their own customer loyalty program, have their own cross-sell tool and services to enhance their users' business. So we will try to maximize these synergies as a platform to improve the users' business and the loyalty for the entire platform. Thank you.

此外，我們擁有一個平台，我們擁有非常獨特的優勢，不僅我們可以進行這些交叉銷售並提高客戶忠誠度，我們還擁有如此多的商家，如此多的品牌，他們每個人都強烈希望擁有自己的客戶忠誠度計劃，擁有自己的交叉銷售工具和服務，以增強用戶的業務。因此，我們將努力最大限度地發揮平台的協同效應，以提高用戶的業務和整個平台的忠誠度。謝謝。

Robert Peck, SunTrust.

羅伯特·佩克（Robert Peck），SunTrust。

Two questions, please. The first is on Ant Financial. Maggie, you talked about a 33% equity ownership; could you just walk us through that process and how you go from the economic relationship to the equity ownership and how we should track that?

請問兩個問題。第一個是關於螞蟻金服。瑪吉，您談到了 33% 的股權；您能否向我們介紹一下這個過程以及如何從經濟關係轉向股權所有權，以及我們應該如何追蹤這一點？

And then number two, Joe, if you wouldn't mind just touching base on your thoughts on the Yahoo! process and the 384 million shares they own and your view on those shares? Thanks so much.

第二，喬，如果你不介意的話，我想談談你對雅虎的看法！流程和他們所持有的 3.84 億股股票以及您對這些股票的看法？非常感謝。

Okay. Yes, thank you, Rob. I'll address both questions. On the process of Alibaba Group to further participate in the actual equity ownership of Ant Financial is a process of regulatory approval. So in order for us to hold a direct stake, we have to get specific approval from the regulators, from the financial regulators in China. And that is because ownership in financial institutions by foreign companies is very limited and there are no precedents for an entity like Ant Financial.

好的。是的，謝謝你，羅布。我將回答這兩個問題。關於阿里巴巴集團進一步入股螞蟻金服的實際股權持有過程，有一個監管批准的過程。因此，為了直接持有股份，我們必須獲得監管機構，即中國金融監管機構的具體批准。這是因為外國公司在金融機構的所有權非常有限，而且像螞蟻金服這樣的實體還沒有先例。

And so the regulators are going to be looking at this as a case of first impression, but we're having a very constructive dialog with them about this. So that's the process. In the absence of a conversion into direct equity, Alibaba Group will continue to share 37.5% of the profits of Ant Financial, so that's an either/or situation.

因此，監管機構將將此作為初步案例來看待，但我們正在就此與他們進行非常建設性的對話。這就是整個過程。在沒有轉為直接股權的情況下，阿里巴巴集團仍將分享螞蟻金服37.5%的利潤，因此這是一個非此即彼的情況。

Your second question relates to the Yahoo! Process, which is something that is a little bit unknown to us because they're running their own process of selling the core business; we're not in that process. We expect that, if they sell the core business, then they will continue to be a company that will continue to be a 15% shareholder in our Company, so nothing will change.

您的第二個問題與雅虎有關！流程，這對我們來說有點陌生，因為他們正在運行自己的出售核心業務的流程；我們不參與該流程。我們預計，如果他們出售核心業務，那麼他們將繼續作為一家公司，並繼續持有我們公司 15% 的股份，因此一切都不會改變。

Thanks so much, Joe. Congratulations.

非常感謝，喬。恭喜。

With that, we conclude the call, operator.

接線員，我們就此結束通話。

This concludes our presentation. Thank you for your participation, you may all disconnect.

我們的演講到此結束。謝謝大家的參與，大家可以斷開連結了。