阿里巴巴 (BABA) 2018 Q3 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's December Quarter 2017 Results Conference Call. (Operator Instructions)

女士們先生們，美好的一天。謝謝你的支持。歡迎來到阿里巴巴集團 2017 年 12 月季度業績電話會議。 （操作員說明）

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

我現在想把電話轉給阿里巴巴集團投資者關係主管 Rob Lin。請繼續。

Thank you. Good day, everyone, and welcome to Alibaba Group's December Quarter 2017 Results Conference Call. With us are Joe Tsai, Executive Vice Chairman; Daniel Zhang, CEO; Maggie Wu, CFO.

謝謝。大家好，歡迎來到阿里巴巴集團 2017 年 12 月季度業績電話會議。與我們一起的是執行副主席 Joe Tsai；張勇，首席執行官；首席財務官吳美琪。

This call is also being webcast from our IR section of corporate website. A replay of the call will be available on our website later today.

此電話會議也通過我們公司網站的 IR 部分進行網絡廣播。今天晚些時候，我們的網站將提供通話重播。

Now let me quickly cover the safe harbor. Today's discussion will contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission.

現在讓我快速覆蓋安全港。今天的討論將包含前瞻性陳述。這些前瞻性陳述涉及固有的風險和不確定性，可能導致實際結果與我們目前的預期存在重大差異。有關這些風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會提交的最新 20-F 表年度報告和其他文件。

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.

我們在本次電話會議上所做的任何前瞻性陳述均基於截至今天的假設，除適用法律要求外，我們不承擔更新這些陳述的任何義務。

Please note that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA margin, non-GAAP net income, non-GAAP diluted EPS and free cash flow are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release.

請注意，我們在本次電話會議上使用的某些財務指標，例如調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的 EBITA、調整後的 EBITA 利潤率、非 GAAP 淨收入、非 GAAP 稀釋後每股收益和自由現金流量均以非公認會計原則基礎。我們的 GAAP 結果和 GAAP 與非 GAAP 措施的調節可以在我們的收益新聞稿中找到。

With that, I would now turn the call to Joe.

有了這個，我現在會把電話轉給喬。

Thank you, Rob. Thank you all for joining us.

謝謝你，羅布。謝謝大家加入我們。

Alibaba had one of the best quarters in the company's history with 56% year-on-year revenue growth. We ended the quarter with 515 million annual active consumers on our China retail marketplaces. Compared to the 12-month period ended in the prior quarter, we added 27 million annual active consumers. This is the largest number of active consumer additions in the last 3 years.

阿里巴巴擁有公司歷史上最好的季度之一，收入同比增長 56%。本季度末，我們在中國零售市場的年度活躍消費者數量為 5.15 億。與上一季度結束的 12 個月相比，我們增加了 2700 萬年度活躍消費者。這是過去 3 年中新增活躍消費者數量最多的一次。

We have made tremendous progress in the execution of our New Retail strategy. As a result, revenues from New Retail initiatives are starting to make meaningful contributions to the growth of our China commerce revenue this quarter.

我們在執行新零售戰略方面取得了巨大進步。因此，新零售計劃的收入開始為本季度中國商業收入的增長做出有意義的貢獻。

I want to say a few words about New Retail. Since Jack Ma coined the term New Retail in 2016, the term has been widely adopted in China by traditional retailers and Internet companies alike. New Retail has become the most talked about concept in business. However, very few people appreciate what New Retail really means, much less what exactly is needed to accomplish true convergence of the online and offline consumer experience.

關於新零售我想說幾句。自馬雲在 2016 年創造新零售一詞以來，該詞已在中國被傳統零售商和互聯網公司廣泛採用。新零售已經成為商業界最受關注的概念。然而，很少有人了解新零售的真正含義，更不用說實現線上線下消費者體驗真正融合的真正含義。

In my view, Alibaba has 3 unique success factors that is enabling us to realize the New Retail vision. First, Alibaba's marketplace platforms handle billions of transactions each month in shopping, daily services and payments. These transactions provide us with the best insights into consumer behavior and shifting consumption trends. This puts us in the best position to enable our retail partners to grow their business.

在我看來，阿里巴巴有 3 個獨特的成功因素，使我們能夠實現新零售願景。首先，阿里巴巴的市場平台每月處理數十億筆購物、日常服務和支付交易。這些交易為我們提供了對消費者行為和不斷變化的消費趨勢的最佳洞察。這使我們處於最佳位置，使我們的零售合作夥伴能夠發展他們的業務。

Second, Alibaba is a deep technology company. We contribute expertise in cloud, artificial intelligence, mobile transactions and enterprise systems to help our retail partners improve their business through digitization and operating efficiency.

第二，阿里巴巴是一家深科技公司。我們貢獻雲、人工智能、移動交易和企業系統方面的專業知識，幫助我們的零售合作夥伴通過數字化和運營效率改善他們的業務。

Third, Alibaba has the most comprehensive ecosystem of commerce platforms, logistics and payment to support the digital transformation of the retail sector.

第三，阿里巴巴擁有最全面的商業平台、物流和支付生態系統，支持零售業數字化轉型。

Next, I want to talk about our transaction with Ant Financial. We are announcing today that pursuant to a strategic agreement with Ant Financial that was entered into in 2014, Alibaba has agreed to take a 33% equity stake in Ant Financial.

接下來，我想談談我們與螞蟻金服的交易。我們今天宣布，根據2014年與螞蟻金服簽訂的戰略協議，阿里巴巴同意入股螞蟻金服33%的股權。

Those of you who have followed us closely know that this is a significant step in our long-term strategic relationship with Ant Financial, giving Alibaba equity ownership in a company that is a key player in the Alibaba ecosystem.

那些密切關注我們的人都知道，這是我們與螞蟻金服的長期戰略關係邁出的重要一步，讓阿里巴巴擁有一家在阿里巴巴生態系統中發揮關鍵作用的公司的股權。

Ant Financial is not only an integral payment provider for transactions on our e-commerce marketplaces through China's #1 mobile payments platform Alipay, but it is also a provider of financial services such as loans, wealth management and insurance products to hundreds of millions of consumers and millions of small businesses on the Alibaba platform.

螞蟻金服不僅通過中國排名第一的移動支付平台支付寶成為我們電子商務市場交易的整體支付提供商，而且還是向數億消費者提供貸款、理財和保險產品等金融服務的提供商以及阿里巴巴平台上的數百萬小企業。

We believe deepening our relationship through an equity stake in Ant Financial will bring several key strategic benefits to us: number one, advancing our New Retail strategy with mobile payments; number two, increasing user acquisition and retention through collaboration with the Alipay Digital Wallet; number three, enhancing the execution of our international expansion; and number four, enabling Alibaba and our shareholders to participate in the future growth of the financial sector.

我們相信通過入股螞蟻金服來深化我們的關係將為我們帶來幾個關鍵的戰略利益：第一，通過移動支付推進我們的新零售戰略；第二，通過與支付寶數字錢包合作增加用戶獲取和保留；第三，加強我們國際擴張的執行力；第四，使阿里巴巴和我們的股東能夠參與金融業的未來發展。

While we have filed a 6-K to summarize the transaction, I want to highlight some of the salient features here. The first thing is that Alibaba is taking the 33% equity stake and terminating our profit share in Ant Financial. Equity ownership allows us to participate in the long-term value creation of Ant Financial as opposed to the quarter-to-quarter fluctuations of a profit share.

雖然我們已經提交了一份 6-K 來總結交易，但我想在這裡強調一些突出的特點。首先是阿里巴巴拿下螞蟻金服33%的股權，終止我們在螞蟻金服的利潤分成。股權使我們能夠參與螞蟻金服的長期價值創造，而不是利潤份額的季度波動。

Second, pursuant to the agreement between Alibaba and Ant Financial, Alibaba's subscription of new shares in Ant Financial does not require any cash outlay for Alibaba. Going forward, Alibaba is going to be protected from the diluted effects of future Ant fund raisings until an IPO of Ant Financial.

第二，根據阿里巴巴與螞蟻金服的協議，阿里巴巴認購螞蟻金服新股不需要阿里巴巴支付任何現金。展望未來，在螞蟻金服首次公開募股之前，阿里巴巴將免受未來螞蟻金服融資的稀釋影響。

Third, Alibaba will have significant governance rights in Ant Financial through board representation so that the 2 companies' interests can be further aligned.

第三，阿里巴巴將通過董事會代表在螞蟻金服擁有重要的治理權，從而使兩家公司的利益進一步一致。

And now I would turn it over to Daniel for his comments about the quarter.

現在我將把它交給丹尼爾，聽取他對本季度的評論。

Thanks, Joe. Hello, everyone, and thank you for joining our earnings call today.

謝謝，喬。大家好，感謝您今天參加我們的財報電話會議。

We delivered another outstanding quarter and our business is performing stronger than ever. This is the seventh consecutive quarter that our revenue has grown by more than 50%. It is the direct result of our long-term forward-looking approach of investing in new user acquisition, new technology and creation of New Retail experiences.

我們又交付了一個出色的季度，我們的業務表現比以往任何時候都強勁。這是我們的收入連續第七個季度增長超過 50%。這是我們投資於新用戶獲取、新技術和創造新零售體驗的長期前瞻性方法的直接結果。

The data we are able to generate from user activity at scale is used to refuel and improve consumer experience and business operation across our ecosystems. We will continue to invest for the future, not only to grow existing business, but also to nurture new business innovations.

我們能夠從大規模用戶活動中生成的數據用於補充和改善我們生態系統中的消費者體驗和業務運營。我們將繼續為未來投資，不僅要發展現有業務，還要培育新的業務創新。

Taobao continued to thrive as the top online consumer leader and the retail destination for Chinese millennials. Growth of our monthly mobile app users accelerated this quarter. 580 million users now visit our China retail marketplaces via our mobile app monthly, an increase of 31 million users over the previous quarter. Our unique blend of highly relevant, personalized content with a community-driven experience continues to attract new users while keeping existing users deeply engaged on a daily basis.

淘寶繼續蓬勃發展，成為中國千禧一代的頂級在線消費領導者和零售目的地。本季度我們每月移動應用程序用戶的增長速度加快。現在每月有 5.8 億用戶通過我們的移動應用程序訪問我們的中國零售市場，比上一季度增加了 3100 萬用戶。我們將高度相關、個性化的內容與社區驅動的體驗獨特地結合在一起，繼續吸引新用戶，同時讓現有用戶每天都深入參與。

Tmall continued to expand its market leadership in B2C and enjoy robust growth across all major categories. Physical goods GMV grew 43% year-over-year. We are especially pleased with the accelerated growth in the mobile phone category, more than 75% year-over-year achieved through securing exclusive access to the industry's top premium smartphone launch. Market leadership and share gain will continue to be our priority, and we will continue to reinvest into the Tmall business.

天貓繼續擴大其在 B2C 領域的市場領導地位，並在所有主要品類中實現強勁增長。實物商品 GMV 同比增長 43%。我們對手機類別的加速增長感到特別高興，通過確保獨家獲得業界頂級高端智能手機的發布，實現了超過 75% 的同比增長。市場領導地位和份額增長將繼續是我們的首要任務，我們將繼續對天貓業務進行再投資。

We celebrated our ninth 11.11 Global Shopping Festival this past quarter, and once again it showcased the extraordinary competitive advantage of our platform model. Our commerce technology infrastructure continued to set new benchmarks in real-time processing power. More than 160 merchants had sales exceeding RMB 100 million. Of those, 17 had more than RMB 500 million in sales, 4 -- 6 had more than RMB 1 billion in sales and 2 had more than RMB 2 billion in sales.

我們在上個季度慶祝了第九屆 11.11 全球購物節，它再次展示了我們平台模式的非凡競爭優勢。我們的商業技術基礎設施繼續在實時處理能力方面樹立新的基準。銷售額過億元的商戶有160多家。其中，銷售額超過5億元的有17家，超過10億元的有4—6家，超過20億元的有2家。

Brands and retail partners leverage our digital technology and omnichannel integration to transform more than 1 million physical locations all over China to offer New Retail shopping experiences. Our globalization strategy continued to demonstrate excellent momentum. Our international commerce retail business grew 93% in revenue year-over-year.

品牌和零售合作夥伴利用我們的數字技術和全渠道整合改造中國超過 100 萬個實體店，以提供新零售購物體驗。我們的全球化戰略繼續展現出良好的勢頭。我們的國際商業零售業務收入同比增長 93%。

Lazada continued to leverage product selection and technology infrastructure from our China retail marketplaces to upgrade its service and experiences for South Asia consumers. Our eWTP hub in Malaysia, the first outside of China, went into operation in November 2017.

Lazada 繼續利用我們中國零售市場的產品選擇和技術基礎設施來提升其對南亞消費者的服務和體驗。我們在馬來西亞的 eWTP 中心是中國以外的第一個中心，於 2017 年 11 月投入運營。

The One Belt, One Road initiative is an important tailwind for our crossborder import business, which will help address the massive demand for imported products in ongoing consumption upgrades taking place in China.

“一帶一路”倡議是我們跨境進口業務的重要推動力，這將有助於解決中國正在進行的消費升級對進口產品的大量需求。

Our cloud computing business continued to fly high. Revenue grew 104% year-over-year as Alibaba Cloud continues to be the market leader in China. We continued to expand products and features, including proprietary AI technologies being deployed to address real-world challenges. Our scientists recently received industry recognition for breakthrough in areas such as natural language processing and computer vision technology.

我們的雲計算業務繼續高歌猛進。隨著阿里雲繼續成為中國市場的領導者，收入同比增長 104%。我們繼續擴展產品和功能，包括部署專有人工智能技術來應對現實世界的挑戰。我們的科學家最近因在自然語言處理和計算機視覺技術等領域取得突破而獲得行業認可。

Our digital media and entertainment business continued to make progress. Our success in development of original content has contributed to more than 100% year-over-year subscriber growth. We are proud that our original Chinese drama developed by Youku named Day and Night was acquired by Netflix for global distribution, which was a validation of the creative capability of our digital video business.

我們的數字媒體和娛樂業務繼續取得進展。我們在原創內容開發方面的成功促成了超過 100% 的訂戶同比增長。我們感到自豪的是，我們由優酷開發的原創中國劇《日與夜》被 Netflix 收購用於全球發行，這是對我們數字視頻業務創意能力的驗證。

Lastly, I want to provide an update on New Retail. Exactly 1 year ago, I shared with you our outlook on the opportunities for a radical transformation in the retail landscape and a plan to reengineer the fundamentals of retail operations to offer consumers new value propositions. Since then, we have demonstrated what New Retail looks like through innovations such as Hema and inspired a global wave of experimentation in New Retail.

最後，我想提供有關新零售的最新信息。整整 1 年前，我與大家分享了我們對零售格局徹底轉型機遇的展望，以及重新設計零售運營基礎以向消費者提供新價值主張的計劃。從那時起，我們通過盒馬鮮生等創新展示了新零售的面貌，並在全球掀起了新零售的實驗浪潮。

We believe the future of new -- we believe the future of retail is much more than just connecting online and offline. Our New Retail strategy is a compromise of creating new and transforming old. We will continue to innovate New Retail formats like Hema with the goal of addressing consumers' evolving demand in the digital age with better products and services, giving them compelling reasons to visit both physical and virtual stores.

我們相信新的未來——我們相信零售業的未來不僅僅是連接線上和線下。我們的新零售戰略是創造新和改造舊的折衷方案。我們將繼續創新像盒馬鮮生這樣的新零售業態，目標是通過更好的產品和服務滿足消費者在數字時代不斷變化的需求，讓他們有充分的理由光顧實體店和虛擬店。

These new formats will continue to experiment with the new proprietary technology to improve consumer experiences. Lack of real-time consumer insights is one of the key issues of China traditional retail today. We are enabling traditional retailer partners to find new life by digitalizing their consumers and increasing their attachment area online and offline, thereby improving sales productivity.

這些新格式將繼續試驗新的專有技術，以改善消費者體驗。缺乏實時的消費者洞察是當今中國傳統零售業的關鍵問題之一。我們正在幫助傳統零售商合作夥伴通過數字化他們的消費者並增加他們線上和線下的依戀區域來尋找新的生活，從而提高銷售效率。

We're also leveraging our data technology to empower retailers to radically improve operating efficiency and allow them react on a real-time basis based on consumer demand. We are committed to design more New Retail formats and our mission is to enable our retail partners to transform through digitalization.

我們還利用我們的數據技術使零售商能夠從根本上提高運營效率，並允許他們根據消費者需求實時做出反應。我們致力於設計更多的新零售業態，我們的使命是讓我們的零售合作夥伴通過數字化轉型。

Our investment in Sun Art is a comprehensive strategic partnership that will leverage our mutual strengths to fundamentally change the economics of traditional retail. We have introduced top selling products on Tmall to over 160 Art, Tmall market locations across China and will soon share our proprietary New Retail technology developed by Hema to upgrade Sun Art's existing retail formats and operations. Additional synergies are being realized that will grow our mutual businesses.

我們對高鑫零售的投資是一項全面的戰略合作夥伴關係，它將利用我們的共同優勢從根本上改變傳統零售業的經濟模式。我們已將天貓上最暢銷的產品引入中國 160 多個藝術、天貓市場地點，並將很快分享我們由盒馬開發的專有新零售技術，以升級高鑫零售現有的零售業態和運營。正在實現額外的協同效應，這將發展我們的共同業務。

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，她將向您詳細介紹我們的財務業績。

Thank you, Daniel. Hello, everyone.

謝謝你，丹尼爾。大家好。

We delivered another strong quarter. Here are some financial highlights. In the December 2017 quarter, major operating and financial metrics continued to record very strong performances. Total revenue grew 56% year-over-year to RMB 83 billion.

我們交付了另一個強勁的季度。以下是一些財務亮點。在 2017 年 12 月季度，主要運營和財務指標繼續保持非常強勁的表現。總收入同比增長 56% 至人民幣 830 億元。

Revenue from core commerce grew 57% year-over-year to RMB 73 billion. Mobile MAUs reached 580 million, an increase of 31 million over September quarter. Annual active consumers reached 515 million, an increase of 27 million from 12-month period ended September 2017. Revenue from cloud computing increased 104% year-over-year to RMB 3.6 billion.

核心商業收入同比增長 57% 至人民幣 730 億元。移動 MAU 達到 5.8 億，比 9 月季度增加 3100 萬。年度活躍消費者達到 5.15 億，比截至 2017 年 9 月的 12 個月增加了 2700 萬。雲計算收入同比增長 104% 至人民幣 36 億元。

Our non-GAAP free cash flow was RMB 46 billion, which is USD 7.1 billion for the quarter compared to RMB 34 billion in the same quarter of last year.

我們的非美國通用會計準則自由現金流為 460 億元人民幣，本季度為 71 億美元，而去年同期為 340 億元人民幣。

For the quarterly revenue, the 56% year-over-year growth was led by robust growth in our China commerce retail business, international commerce retail business, Alibaba Cloud as well as the consolidation of Cainiao Network. So if excluding Cainiao, total revenue growth would have been 49% year-over-year.

就季度收入而言，56% 的同比增長主要得益於中國商業零售業務、國際商業零售業務、阿里雲的強勁增長以及菜鳥網絡的整合。因此，如果不包括菜鳥，總收入同比增長 49%。

Quarterly costs trends. Cost of revenue excluding share-based compensation was RMB 33.8 billion. Excluding the effect of SBC expense, cost of revenue as a percentage of revenue increased from 35% in the quarter ended December 2016 to 40% this quarter.

季度成本趨勢。扣除股權激勵後的收入成本為人民幣 338 億元。排除 SBC 費用的影響，收入成本佔收入的百分比從截至 2016 年 12 月的季度的 35% 增加到本季度的 40%。

I would like to provide color on changes to our gross margins due to the business mix shift. First, the consolidation of Cainiao affects our overall gross margin because logistics is a lower-margin business compared to our original core business.

由於業務組合的轉變，我想提供我們毛利率變化的顏色。首先，菜鳥的整合影響了我們的整體毛利率，因為與我們原來的核心業務相比，物流是一個利潤率較低的業務。

Second, the significant growth of our New Retail businesses, in particular Intime Department stores and Hema Fresh Grocery Stores means that New Retail revenues were including -- on a gross basis, include the cost of inventory and, therefore, would have the effect of lowering our overall gross margin.

其次，我們新零售業務的顯著增長，特別是銀泰百貨和盒馬鮮生意味著新零售收入包括——按總額計算，包括庫存成本，因此，將產生降低我們的整體毛利率。

Third, content development and acquisition costs of our digital media entertainment segment is accounted for as a cost of revenue.

第三，我們數字媒體娛樂部門的內容開發和收購成本計入收入成本。

While these business mix shift factors structurally change our gross margin, the new lines of business in logistics, New Retail and digital entertainment are highly strategic to our future growth and value creation. In addition, these new businesses do not change the highly profitable and cash flow generative characteristics of our core commerce market sales business and our ability to reinvest core commerce profits for further market share gains.

雖然這些業務組合轉變因素從結構上改變了我們的毛利率，但物流、新零售和數字娛樂方面的新業務線對我們未來的增長和價值創造具有高度戰略意義。此外，這些新業務不會改變我們核心商業市場銷售業務的高利潤和現金流生成特徵，以及我們將核心商業利潤再投資以進一步擴大市場份額的能力。

Sales and marketing expenses excluding SBC were RMB 8.1 billion in the quarter. Without the effect of SBC expense, sales and marketing expenses as a percentage of revenue was 10% for the quarter, which is consistent with the prior quarter. As a percentage of revenue without the effect of SBC, all other major operating expenses remained stable year-over-year.

本季度不包括 SBC 的銷售和營銷費用為人民幣 81 億元。沒有 SBC 費用的影響，本季度銷售和營銷費用佔收入的百分比為 10%，與上一季度一致。在沒有 SBC 影響的情況下，所有其他主要運營費用佔收入的百分比保持穩定。

Let's look at other income and losses. Other net loss in the quarter ended December 2017 was RMB 348 million compared to other net income of RMB 3 billion in the same quarter of 2016. The reversal from net income to net losses versus last quarter was primarily due to higher foreign exchange loss and the decrease in profit sharing from Ant Financial.

讓我們看看其他收入和損失。截至 2017 年 12 月的季度，其他淨虧損為人民幣 3.48 億元，而 2016 年同期的其他淨收入為人民幣 30 億元。與上一季度相比，淨收入轉為淨虧損主要是由於匯兌損失增加以及來自螞蟻金服的利潤分成減少。

During the quarter, Ant Financial successfully executed an aggressive user growth plan that resulted in substantial new user additions and increased user engagement. As a result of the user growth initiatives in December 2017, Alipay Wallet's daily active users more than doubled on a year-over-year basis.

在本季度，螞蟻金服成功執行了一項積極的用戶增長計劃，帶來了大量的新用戶增加和用戶參與度的提高。由於 2017 年 12 月的用戶增長計劃，支付寶錢包的日活躍用戶同比增長了一倍以上。

We expect that Ant Financial will continue to invest to expand its market leadership in digital payment, develop new technologies for inclusive financial services and accelerate its globalization strategy.

我們預計螞蟻金服將繼續投資以擴大其在數字支付領域的市場領導地位，開發普惠金融服務的新技術並加快其全球化戰略。

Non-GAAP net income in the quarter was RMB 27 billion, an increase of 20% year-on-year. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in our press release.

本季度非美國通用會計準則淨利潤為人民幣 270 億元，同比增長 20%。可以在我們的新聞稿中找到非 GAAP 措施與可比較的 GAAP 措施的調節。

Free cash flow and cash. We continue to generate significant free cash flow. In December quarter, we generated RMB 46 billion in free cash flow. Our cash flow allows us the strategic and operational flexibility to invest in technology and acquire the resources to accomplish our strategic objectives.

自由現金流和現金。我們繼續產生可觀的自由現金流。在 12 月季度，我們產生了 460 億元人民幣的自由現金流。我們的現金流使我們能夠在戰略和運營方面靈活地投資於技術並獲取資源以實現我們的戰略目標。

As of December 31, 2017, our cash, cash equivalents and short-term investments were RMB 220 billion. The increase in cash, cash equivalents and short-term investments during the quarter was primarily due to proceeds from our issuance of USD 7 billion senior unsecured notes and USD 7 billion free cash flow generated from operations, partially offset by cash used in investing activities, including investments in Sun Art Retail and a repayment of a senior unsecured note deal in the year.

截至2017年12月31日，我們的現金、現金等價物和短期投資為人民幣2,200億元。本季度現金、現金等價物和短期投資的增加主要是由於我們發行 70 億美元高級無擔保票據的收益和運營產生的 70 億美元自由現金流，部分被投資活動中使用的現金所抵消，包括對 Sun Art Retail 的投資和年內對高級無抵押票據交易的償還。

Capital expenditure in the December quarter were RMB 10 billion, in which about RMB 1.4 billion relates to the acquisition of land use rights and construction in progress. The rest are investments in IT services sector.

12月當季資本支出為100億元人民幣，其中約14億元人民幣涉及土地使用權收購和在建工程。其餘為IT服務領域的投資。

Segment reporting. Let us take a look at the core commerce. Core commerce segment had another strong quarter with revenue growth of 57% year-on-year. China commerce retail business, which represents 82% of the segment revenue, grew 47% year-on-year. This is the first quarter in which we are including revenues from logistics as we begin to consolidate Cainiao. Excluding Cainiao, core commerce revenue growth would have been 49% year-over-year.

分部報告。讓我們來看看核心商業。核心商業部門又迎來一個強勁的季度，收入同比增長 57%。中國商業零售業務佔分部收入的 82%，同比增長 47%。這是我們開始整合菜鳥的第一個季度，其中包括物流收入。不包括菜鳥，核心商業收入同比增長 49%。

China commerce retail, a robust revenue growth of 47%. This includes the growth of our New Retail initiatives, which added meaningful revenues compared to immaterial amounts in prior periods. The New Retail initiatives include Intime Department Store, import consumption and the fresh food grocery Hema. And these new businesses which are highly strategic for our future growth and value creation will become more meaningful over time.

中國商業零售收入強勁增長47%。這包括我們新零售計劃的增長，與前期的無形收入相比，這些計劃增加了可觀的收入。新零售舉措包括銀泰百貨、進口消費和生鮮雜貨盒馬鮮生。隨著時間的推移，這些對我們未來的增長和價值創造具有高度戰略意義的新業務將變得更加有意義。

Revenue from our retail marketplaces continued to see strong growth. Customer management revenue grew by 39% year-over-year, driven largely by increases in average unit price per click and to a lesser extent the volume of clicks. Increasing price per click reflects our ability to deliver highly relevant ads to consumers through personalization technology, which drove -- increased the conversions.

我們零售市場的收入繼續強勁增長。客戶管理收入同比增長 39%，這主要是由於平均每次點擊單價的增長，以及較小程度上的點擊量增長。每次點擊價格的上漲反映了我們通過個性化技術向消費者提供高度相關的廣告的能力，這推動了 - 增加了轉化率。

Thus, merchants put a higher value to clicks that can reach relevant users and drive higher conversions. We are seeing higher average spending on our customer management services by increasing number of merchants.

因此，商家會為能夠吸引相關用戶並帶來更高轉化率的點擊賦予更高的價值。隨著商戶數量的增加，我們看到客戶管理服務的平均支出有所增加。

The 39% growth rate of customer management revenue in December quarter reflects a more normalized growth trend due to an anniversary effect of our personalization algorithm launched in September 2016, as discussed in our previous call.

正如我們在之前的電話會議中所討論的那樣，由於 2016 年 9 月推出的個性化算法的周年效應，12 月季度客戶管理收入的 39% 增長率反映了更加正常化的增長趨勢。

We continue to focus on sustainable revenue growth for our China commerce retail business by giving attention, user experience and merchant ROI. Therefore, we will continue to be measured in our approach to monetization. For example, we would prefer to increase as inventory rather than increase as load and to monetize through technology improvements rather than price increases.

我們通過關注、用戶體驗和商戶投資回報率，繼續專注於中國商業零售業務的可持續收入增長。因此，我們將繼續衡量我們的貨幣化方法。例如，我們更願意增加庫存而不是增加負載，並通過技術改進而不是價格上漲來貨幣化。

China commerce retail commission revenue, representing 27% of China commerce retail revenue in the quarter, grew by 34% year-over-year, primarily due to a strong GMV growth in the physical goods GMV on Tmall. So we are growing 43% year-over-year in the physical goods GMV.

中國商業零售佣金收入佔本季度中國商業零售收入的 27%，同比增長 34%，這主要是由於天貓實體商品 GMV 的強勁增長。因此，我們的實物商品 GMV 同比增長 43%。

The commission revenue growth rate was lower than physical goods GMV growth. This is because of discounts and rebates we provided to merchants during promotions. So other revenue within this China commerce retail was RMB 5.1 billion compared to RMB 813 million in the same quarter last year, primarily driven by our New Retail businesses, including Intime, import consumption and Hema.

佣金收入增速低於實物商品GMV增速。這是因為我們在促銷期間向商家提供的折扣和回扣。因此，中國商業零售的其他收入為人民幣 51 億元，而去年同期為人民幣 8.13 億元，這主要是由我們的新零售業務推動的，包括銀泰、進口消費和盒馬鮮生。

As you may have noticed, other revenue now represents 7% of segment revenue and grew 525% year-over-year. We expect these New Retail businesses will become a more meaningful part of our growth and value creation in the future.

您可能已經註意到，其他收入現在佔分部收入的 7%，同比增長 525%。我們預計這些新零售業務將成為我們未來增長和價值創造中更有意義的部分。

Our core commerce marketplace adjusted EBITA margin was 53% in the quarter as compared to 64% in the same quarter of 2016. Excluding the consolidation of Cainiao, core marketplace adjusted EBITA margin would be approximately 57% for the quarter.

本季度我們的核心商業市場調整後 EBITA 利潤率為 53%，而 2016 年同期為 64%。如果不包括菜鳥的合併，本季度核心市場調整後的 EBITA 利潤率約為 57%。

In a discussion of our cost trends, I have discussed chiefly impact of our New Retail businesses, which we believe will accrue longer-term strategic value to Alibaba. In addition, we are reinvesting margin from our China retail commerce business towards international markets such as Southeast Asia and new user acquisitions.

在討論我們的成本趨勢時，我主要討論了我們新零售業務的影響，我們認為這將為阿里巴巴帶來更長期的戰略價值。此外，我們正在將中國零售商業業務的利潤再投資於東南亞等國際市場和新用戶獲取。

Cloud revenue growing 104% year-over-year, primarily driven by increase in number of paying customers and the improving revenue mix of higher value-added services. Adjusted EBITA margin of the cloud computing segment was negative percent. This remained stable versus the same period last year. Our cloud computing business' top priority remains expanding our market leadership and up-selling of higher value-added services.

雲收入同比增長 104%，主要受付費客戶數量增加和高附加值服務收入組合改善的推動。雲計算部門的調整後 EBITA 利潤率為負百分比。這與去年同期相比保持穩定。我們的雲計算業務的首要任務仍然是擴大我們的市場領導地位和銷售更高附加值的服務。

Our digital media and entertainment segment's revenue in December quarter was RMB 5.4 billion, an increase of 33% year-on-year. Both UCWeb and Youku contributed to this growth. We are particularly encouraged by the traction of Youku, especially the robust addition of subscribers due to original content.

我們的數字媒體和娛樂部門在 12 月當季的收入為人民幣 54 億元，同比增長 33%。 UCWeb 和優酷都為這一增長做出了貢獻。我們尤其對優酷的吸引力感到鼓舞，尤其是原創內容帶來的強勁訂閱者增長。

Daily average subscribers maintained strong momentum, with more than 100% year-on-year growth. As a result of the increased subscription revenue, Youku's total revenue growth rate for the quarter accelerated from prior quarter. Adjusted EBITA margin of the digital media entertainment segment was negative 41% this quarter comparing to negative 60% in same period last year.

日均訂閱用戶保持強勁勢頭，同比增長超過100%。由於訂閱收入增加，優酷本季度總收入增速較上一季度有所加快。本季度數字媒體娛樂業務的調整後 EBITA 利潤率為負 41%，而去年同期為負 60%。

The narrowing of negative margins primarily due to revenue growth from UCWeb, which is the higher margin business, partially offset by increase in listening content by Youku. With the strong growth of the subscription business in online video, we see potential synergies between our digital media entertainment business and the core commerce business, both of which tap into the large consumer user base of our ecosystem.

負利潤率的收窄主要是由於 UCWeb 的收入增長，這是較高利潤率的業務，部分被優酷收聽內容的增加所抵消。隨著在線視頻訂閱業務的強勁增長，我們看到了我們的數字媒體娛樂業務與核心商業業務之間的潛在協同效應，這兩者都利用了我們生態系統的龐大消費者用戶群。

Revenue from innovation initiatives and other segments was RMB 722 million in the December quarter. Starting June quarter 2017, we reclassified the revenue from our fresh food store Hema. We talked about this last quarter. Previously reported under this innovation initiatives segment, now we move it to China core commerce retail business, because Hema has already gone beyond the incubation stage. So adjusted EBITA margin of this segment was negative 130%, primarily due to investments in new business initiatives.

去年第四季度來自創新計劃和其他部門的收入為人民幣 7.22 億元。從 2017 年 6 月季度開始，我們對生鮮食品店盒馬鮮生的收入進行了重新分類。我們在上個季度談到了這個。以前在這個創新舉措板塊下報導，現在我們把它轉移到中國核心商業零售業務，因為盒馬已經過了孵化階段。因此，該部門調整後的 EBITA 利潤率為負 130%，這主要是由於對新業務計劃的投資。

Looking ahead, given a fair degree of visibility until end of March 2018, we are releasing our year-over-year revenue guidance to a range of 55% to 56% for fiscal 2018. As Daniel mentioned earlier, our vision for New Retail to digitize the entire value chain of the retail industry, which would then enable a seamless convergence of consumer experience between online and offline.

展望未來，考慮到 2018 年 3 月底之前的可見度，我們將發布 2018 財年的同比收入指引，範圍為 55% 至 56%。正如 Daniel 之前提到的，我們對新零售的願景是將零售業的整個價值鏈數字化，從而實現線上線下消費者體驗的無縫融合。

Over the next several years, you will see an unfolding of how we execute the New Retail strategy as it becomes an integral part of Alibaba ecosystem -- Alibaba economy.

在接下來的幾年裡，隨著新零售戰略成為阿里巴巴生態系統——阿里巴巴經濟的一個組成部分，你將看到我們如何執行新零售戰略。

The way we look at New Retail's financial impact to Alibaba are as follows: First, the market has huge potential. Digitalization of offline retail, using our data technology to enable a convergence of online and offline commerce is a huge opportunity that expands our addressable market. Total China retail is RMB 33 trillion economy, while merely 20% of it is online. Our New Retail strategy will enable us to tap into the 80% of the retail consumption that remains offline in China. We believe we have the technology advantage and proprietary knowhow to execute the New Retail strategy at large scale.

我們從以下幾個方面來看待新零售對阿里巴巴的財務影響： 第一，市場潛力巨大。線下零售數字化，利用我們的數據技術實現線上和線下商務的融合，是擴大我們潛在市場的巨大機遇。中國零售總額為 33 萬億元人民幣，而其中只有 20% 是在線的。我們的新零售戰略將使我們能夠利用中國 80% 的線下零售消費。我們相信我們擁有大規模執行新零售戰略的技術優勢和專有知識。

Second, New Retail may have a different cost structure, but has similar high capital return characteristics as pure Internet businesses.

其次，新零售可能具有不同的成本結構，但具有與純互聯網業務相似的高資本回報特徵。

As already discussed, the structural changes to margin as a result of the business mix shift to New Retail. This is not a concern to us at all because we believe we can maintain the same capital efficiency over time and generate similar returns on invested capital as our Internet-based marketplace business.

正如已經討論過的，由於業務組合轉向新零售，利潤率發生了結構性變化。這對我們來說根本不是問題，因為我們相信隨著時間的推移，我們可以保持與基於互聯網的市場業務相同的資本效率，並產生類似的投資資本回報。

Finally, technology will drive sustainable and scalable long-term profit growth in New Retail.

最後，技術將推動新零售的可持續和可擴展的長期利潤增長。

With our strategy of partnering with retailers, we will build an ecosystem where our technology and knowhow will reach businesses far beyond our own. The value created from improvement in the operating efficiency and the financial performance of our retail partners will generate additional monetization opportunities through capital-light fee-based models such as commissions and management fees.

通過我們與零售商合作的戰略，我們將建立一個生態系統，我們的技術和專有技術將遠遠超出我們自己的範圍。我們的零售合作夥伴的運營效率和財務業績的改善所創造的價值將通過佣金和管理費等輕資本收費模式產生額外的貨幣化機會。

Alibaba is best positioned to transform China's traditional retail landscape given our large mobile consumer scale and insights, advanced cloud and AI infrastructure and the best-in-class knowhow in digital commerce.

鑑於我們龐大的移動消費者規模和洞察力、先進的雲和人工智能基礎設施以及數字商務領域的一流專業知識，阿里巴巴最有能力改變中國的傳統零售格局。

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

我們準備好的發言到此結束。接線員，我們準備開始問答環節。謝謝。

(Operator Instructions) Your first question comes from the line of Eddie Leung of Merrill Lynch.

（操作員說明）您的第一個問題來自美林證券的 Eddie Leung。

I have a question about Ant Financial. At the operating level, how will this deal change the cooperation? Is there anything you can achieve now that you couldn't in the past? And then just quickly perhaps also some color on the retention rate of your users. There has been very fast growth in users in the past year or 2. Just curious how has been the retention rate given these fast growth period?

我有一個關於螞蟻金服的問題。在運營層面，這筆交易將如何改變合作？有什麼你現在可以實現而過去無法實現的嗎？然後很快也許還有一些關於用戶保留率的顏色。在過去的一兩年裡，用戶增長非常快。只是好奇在這些快速增長時期，留存率如何？

I'll take your question about Ant Financial. We are -- with our equity stake in Ant Financial, this will align our interests further in a number of areas. For example, Ant Financial, as you know, is a #1 payments company in China, and in the execution of our New Retail strategy a very important component of working with physical retailers is that they are enabled with mobile payment, so that a customer can go to the store and wipe a mobile phone and pay. So there is a lot of cooperation there that we can have with them. Another example is to be able to interact with -- between, for example, our e-commerce apps like Taobao app and also the Alipay Wallet so that we can have -- establish a presence, for example, an e-commerce presence within the Alipay Wallet. This actually helps us to increase user acquisition in terms of new users because there are users that are using the Alipay app that are not buying on our Taobao platform. And another example of cooperation is in international expansion, where -- in new markets, e-commerce presence -- we need to have a payment solution and payment growth, payment expansion into new markets will be looking for new use cases. So these are just a few example of cooperation. With an equity stake, I think there is going to be tighter cooperation between the 2. Your second question about user retention, I think we have been able to retain users very well. I assume that's a question addressing Alipay. As you know, in the fourth quarter the growth of daily active users of Alipay have gone up, more than doubling of our daily active users. And going substantially into January -- we just past January. In the last month, the level of daily active users and engagement have remained, so we do not see any drop off. So the retention is very good.

我來回答你關於螞蟻金服的問題。我們 - 憑藉我們在螞蟻金服的股權，這將進一步調整我們在許多領域的利益。例如，如您所知，螞蟻金服是中國排名第一的支付公司，在執行我們的新零售戰略時，與實體零售商合作的一個非常重要的組成部分是它們支持移動支付，因此客戶可以去店裡擦個手機然後付錢。因此，我們可以與他們進行很多合作。另一個例子是能夠與我們的電子商務應用程序（例如淘寶應用程序）和支付寶錢包進行交互，這樣我們就可以建立一個存在，例如，電子商務存在於支付寶錢包。這實際上幫助我們在新用戶方面增加了用戶獲取，因為有些用戶正在使用支付寶應用程序而不是在我們的淘寶平台上購買。另一個合作的例子是國際擴張，在新市場，電子商務的存在中，我們需要有一個支付解決方案和支付增長，支付擴展到新市場將尋找新的用例。所以這些只是合作的幾個例子。有了股權，我認為兩者之間的合作會更緊密。你的第二個關於用戶保留的問題，我認為我們已經能夠很好地保留用戶。我認為這是針對支付寶的問題。如您所知，第四季度支付寶日活躍用戶的增長有所上升，是我們日活躍用戶的兩倍多。基本上進入一月份——我們剛剛過了一月份。在上個月，每日活躍用戶和參與度水平保持不變，因此我們沒有看到任何下降。所以留存率非常好。

Your next question comes from the line of Alicia Yap of Citigroup.

你的下一個問題來自花旗集團的Alicia Yap。

My question is related -- can you share with us if there is any plans or any ongoing technology advancement or improvement of the Taobao app that you are working on and any chance for potential -- increasing the monetization on some of our pages, for example, by adding the inventory or potentially adjusting the app loads on the search result?

我的問題是相關的——如果您正在開發的淘寶應用程序有任何計劃或任何持續的技術進步或改進，以及任何潛在的機會，您能否與我們分享——增加我們某些頁面的貨幣化，例如，通過添加庫存或可能調整搜索結果中的應用加載？

Taobao app is now -- actually is positioned as a shopping -- as a consumer community and a company-driven platform and we apply our most recent and new technologies like the personalized technologies, algorithms and the real-time timing and behavior-driven algorithm on Taobao. So that's why today people will see a very personalized experience, have a very personalized experience on the mobile Taobao. And going forward, we will continue to do so and apply our new technology in Taobao. And with the expansion of our categories and services and expansion of our user base, we will have more and more consumer data and behavior, which will also enhance our understanding of peoples' demand. What we want to do is to make our algorithm more intelligent, which is not only to meet the existing demand of the customers, but also help to create a new demand of the customers. So that's all about how to make the technology marry with the commerce. And in terms of the monetization, actually we are -- we have a very clear strategy in monetization. We always believe that the most important thing is to enhance the user experience and make people spend more time and more people to come to our website. Actually, today as a shopping -- as a commerce mobile app, actually all the contents really could be monetized and today we only monetize a very low percentage of the inventory -- of the pages on our mobile app. And all the contents and the recommendations and the search results actually is relevant to consumer -- I mean, what consumer need and what the customers want promoted. So we have a very clear schedule to monetize our pages, but we still want to make sure we have a very native experience for our customers.

淘寶應用現在——實際上被定位為購物——作為一個消費者社區和一個公司驅動的平台，我們應用我們最新的新技術，如個性化技術、算法和實時計時和行為驅動算法在淘寶上。所以這就是為什麼今天人們會在手機淘寶上看到非常個性化的體驗，擁有非常個性化的體驗。展望未來，我們將繼續這樣做，並將我們的新技術應用於淘寶。而且隨著我們品類和服務的擴展，我們用戶群的擴大，我們會有越來越多的消費者數據和行為，這也會增強我們對人們需求的理解。我們要做的是讓我們的算法更加智能，這不僅是為了滿足客戶現有的需求，同時也有助於創造客戶的新需求。所以這就是如何使技術與商業結合的全部內容。就貨幣化而言，實際上我們 - 我們有一個非常明確的貨幣化戰略。我們始終認為，最重要的是提升用戶體驗，讓人們花更多的時間和更多的人來我們的網站。事實上，今天作為一個購物——作為一個商業移動應用程序，實際上所有的內容都可以貨幣化，而今天我們只從我們移動應用程序頁面的非常低的庫存百分比中貨幣化。所有的內容、推薦和搜索結果實際上都與消費者相關——我的意思是，消費者需要什麼以及客戶想要推廣什麼。所以我們有一個非常明確的時間表來通過我們的頁面獲利，但我們仍然希望確保我們為客戶提供非常原生的體驗。

Your next question comes from the line of Alex Yao of JP Morgan.

你的下一個問題來自摩根大通的Alex Yao。

I have a follow-up question on Ant Financial. Can you elaborate a bit more on the sharp decline in Ant Financial's profitability in this quarter? For example, is it because the competition in domestic offline payment market is intensifying or is it because you are spending to expand overseas market share and usage? If the competitors in these markets react with even more aggressive marketing strategy, how do you think about the competition strategy and the financial outlook for this as in 2018? And then related to that, will the new investment strategy in Ant Financial apply to the New Retail strategy as well?

我有一個關於螞蟻金服的後續問題。您能否詳細介紹一下本季度螞蟻金服盈利能力的大幅下滑？比如，是因為國內線下支付市場的競爭越來越激烈，還是你在花錢擴大海外的市場份額和使用量？如果這些市場的競爭對手採取更激進的營銷策略，您如何看待 2018 年的競爭策略和財務前景？那麼與此相關的是，螞蟻金服的新投資策略是否也適用於新零售戰略？

I'll address that. Ant Financial is a profitable business. They are profitable in all 3 major lines of business, and that is credit products like consumer credit and SME loans and then the third is wealth management in terms of distributing other people's -- wealth management products on the platform. So it's profitable in all 3 of those business lines. What it means is that it has the luxury of reinvesting profits and cash flow into very strict areas of growth. And during the fourth quarter, what we've seen is that Ant Financial embarked on a very aggressive new user acquisition strategy and they have been very successful. They were able to grow new users by more than doubling the active users on the platform, on the Alipay Wallet platform. And we have also communicated in our earnings release that we expect Ant Financial to continue this fairly aggressive plan, to continue to gain more new users and take market share. So it's clear that -- I think if you look at third-party researched data, Ant Financial has claimed market share away from competition over the last quarter. As far as your question about how we think about the growth of our own e-commerce business, maybe Daniel can address that question.

我會解決這個問題。螞蟻金服是一項盈利的業務。他們三大業務都是盈利的，就是消費信貸和中小企業貸款等信貸產品，然後是財富管理，即在平台上分銷他人的財富管理產品。因此，它在所有這 3 條業務線中都是有利可圖的。這意味著它可以將利潤和現金流再投資到非常嚴格的增長領域。在第四季度，我們看到螞蟻金服採取了非常積極的新用戶獲取策略，而且他們非常成功。他們能夠通過在支付寶錢包平台上將平台上的活躍用戶增加一倍以上來增加新用戶。我們還在財報中表示，我們預計螞蟻金服將繼續這一相當激進的計劃，繼續獲得更多新用戶並佔據市場份額。所以很明顯——我認為如果你看一下第三方研究數據，螞蟻金服在上個季度聲稱市場份額遠離競爭對手。至於你問我們如何看待我們自己的電子商務業務的增長，也許丹尼爾可以回答這個問題。

Actually, we do see a lot of synergies between AGH and Ant Financial. And today -- and because of the very active new user acquisition strategy, we see a lot of new customers going to Alibaba ecosystem by firstly doing a mobile payment. And we are actually -- work closely with Ant Financial to transform these new users to be buyers on our ecosystem. But having said that, actually we see broader opportunities in New Retail landscape. And for people -- for the retail partners, what they want is a all-in-one solutions to help them to improve the user's experience and improve the operating efficiency in their existing retail formats. So payment obviously is one of the advantages and people want to -- because of digital payment and the retailers can digitalize the -- to have the data of the payers. And from AGH perspective, we will go even further to help the merchants -- to help the retailers to digitalize their entire product assortment and the entire footprints in the physical store, which will bring even more data. So together actually we can help -- Ant Financial and AGH can help the retailers to transform to a totally digital operation, which will bring a lot of value for their operation in the future.

實際上，我們確實看到了 AGH 和螞蟻金服之間的很多協同效應。而今天——由於非常積極的新用戶獲取策略，我們看到很多新客戶首先通過移動支付進入阿里巴巴生態系統。實際上，我們與螞蟻金服密切合作，將這些新用戶轉變為我們生態系統的買家。但話雖如此，實際上我們在新零售領域看到了更廣闊的機會。對於人們 - 對於零售合作夥伴，他們想要的是一個一體化的解決方案，以幫助他們改善用戶體驗並提高現有零售業態的運營效率。因此，支付顯然是優勢之一，人們希望——因為數字支付和零售商可以數字化——來獲得付款人的數據。從 AGH 的角度來看，我們將進一步幫助商家——幫助零售商將他們的整個產品分類和實體店的整個足跡數字化，這將帶來更多的數據。因此，實際上我們可以一起提供幫助——螞蟻金服和 AGH 可以幫助零售商轉型為完全數字化運營，這將為他們未來的運營帶來很多價值。

The next question comes from the line of Piyush Mubayi of Goldman Sachs.

下一個問題來自高盛的 Piyush Mubayi。

My first question is does the Ant stake mean that the Honk Kong IPO foreign ownership part is open? Also, theoretically, would you invest more into Ant to own more of it? And a second question, if I might slip in 1, customer management revenue growth drivers have reversed this quarter from volume of clicks to price by click on higher conversion. Could you give us a sense of how much further the price by click improvement could be in the next couple of quarters, if possible?

我的第一個問題是螞蟻股權是否意味著香港IPO外資持股部分開放？另外，從理論上講，您會向螞蟻投資更多以擁有更多嗎？第二個問題，如果我可以插入 1，本季度客戶管理收入增長驅動因素已經從點擊量轉變為點擊更高轉化率的價格。如果可能的話，您能否告訴我們在接下來的幾個季度中通過點擊改進的價格可以進一步提高多少？

So Ant hasn't talked about any IPO plan yet. So that's -- Hong Kong, Asia we don't know yet. And whether we are further investing in Ant? So 33% is the equity swap arrangement that's stated in the 2014 agreement, so that's pretty much the shareholding we could get from Ant based on this arrangement. And in terms of customer management revenue, well, we were talking about the PBC growth is stronger and to a lesser extent we see the number of clicks growth. And the reason is that basically the technology -- one thing is that the technology improvement brings better conversion. Merchants are willing to pay for higher clicks because they are calculating their ROI. And it must be, whatever they paid, it got a reasonable return before they are making that decision to invest. And how much further this you can grow is I think -- first of all, you've seen this growth for customer management revenue, right, 39% year-over-year. Compared to the previous quarter, it shows a -- appears to be a slower growth. We talked about the anniversary. But there is another reason that we proactively give return to merchants. We leverage our technology enhancement. And there are a couple of projects maybe we can talk more about later in our meeting. But this -- so voluntarily give returns to merchants, which has impacted a little bit on our monetization to the revenue. And going forward, I think it's -- when you look at the technology reserves, we do have many technology initiatives in our pipeline and these are the potential assets for our future monetization and we will launch these whenever its ready in the due course. So we are quite confident about the longer term growth for our ecosystems since the data technology do bring value to merchants.

所以螞蟻還沒有談及任何 IPO 計劃。那就是——香港，我們還不知道的亞洲。我們是否進一步投資螞蟻金服？所以 33% 是 2014 年協議中規定的股權互換安排，所以這幾乎是我們可以根據這種安排從螞蟻集團獲得的股權。就客戶管理收入而言，我們談論的是 PBC 的增長更為強勁，而在較小程度上我們看到了點擊次數的增長。原因基本上是技術——一件事是技術改進帶來了更好的轉換。商家願意為更高的點擊付費，因為他們正在計算他們的投資回報率。而且，無論他們付出什麼，都必須在他們做出投資決定之前獲得合理的回報。我認為你可以進一步增長多少——首先，你已經看到客戶管理收入的增長，對，同比增長 39%。與上一季度相比，它顯示出——似乎增長放緩。我們談到了周年紀念日。但是我們主動回饋商家還有一個原因。我們利用我們的技術改進。還有幾個項目，也許我們可以在稍後的會議中詳細討論。但是這個——如此自願地給商家回報，這對我們的收入貨幣化產生了一點影響。展望未來，我認為它是 - 當您查看技術儲備時，我們確實有許多技術計劃正在籌備中，這些是我們未來貨幣化的潛在資產，我們將在適當的時候推出它們。因此，我們對我們生態系統的長期增長充滿信心，因為數據技術確實為商家帶來了價值。

Your next question comes from the line of Youssef Squali of SunTrust Robinson Humphrey.

你的下一個問題來自 SunTrust Robinson Humphrey 的 Youssef Squali。

Maggie, just a quick question for you. I may have missed this, but ex-Cainiao and ex-New Retail what was the organic growth in core commerce? And I guess related to that, as we look out to fiscal '19 in terms both of revenue growth and the margin, can you just help us think through -- or how do you guys think through the framework of organic growth and margin? I think in 2017, we've seen about 400 basis point compression. In 2016 -- '18, we saw -- or we're likely to see about 600 basis point compression in margin. Just how do we think through it for '19?

瑪姬，問你一個簡短的問題。我可能錯過了這一點，但是前菜鳥和前新零售核心商業的有機增長是什麼？我想與此相關的是，當我們在收入增長和利潤率方面展望 19 財年時，您能否幫助我們思考一下 - 或者你們如何思考有機增長和利潤率的框架？我認為在 2017 年，我們看到了大約 400 個基點的壓縮。在 2016 年 - '18，我們看到 - 或者我們可能會看到利潤率壓縮約 600 個基點。我們如何看待'19？

First of all, if you still remember, like 8 months ago when we had our Investor Day, where I gave the revenue guidance for fiscal 2018, the market consensus for our revenue growth was somewhere around 37%, 38% year-over-year and that we guided 45% to 49% year-over-year growth. And now we adjusted that growth level to 55% to 56%. That's pretty much like 18 percentage point higher than our recent market expectations. Okay, Cainiao, right? Cainiao -- you've seen that -- if we're talking about this quarter, Cainiao added like 4 percentage point to the revenue growth. So even if you take it out from the 55% to 56%, we are still growing 50% plus. And New Retail is an integral part of our core commerce. We disclosed the number of the -- revenue amount, and the percent of revenue you can derive if you take it out. But it doesn't really make sense taking it out. This business is going towards the New Retail, so this is going to be a very critical part of our core commerce. It is the core commerce. And margin -- yes, I talked about the structural changes to margin as a result of the business make shift to New Retail. So basically, New Retail may have a different cost structure, which could show a lower margin going forward. But this is not a concern to us, because remember first of all a lower margin does not necessarily equal to lower profit, because we're making the pie much bigger. So 60% of an apple compared to 40% of a watermelon, which one do you want? And the second point is that lower margin not necessarily equals to a lower cash flow. For example, inventory can be a positive contribution to cash flow due to negative working capital nature of the retail, and the risk of inventory can be reduced with consumer insights and data technology.

首先，如果你還記得，就像 8 個月前我們舉辦投資者日時，我給出了 2018 財年的收入指導，市場對我們收入增長的共識是大約 37%，同比增長 38%我們指導了 45% 到 49% 的同比增長。現在我們將增長水平調整為 55% 至 56%。這幾乎比我們最近的市場預期高出 18 個百分點。好吧，菜鳥，對吧？菜鳥 - 你已經看到了 - 如果我們談論本季度，菜鳥為收入增長增加了 4 個百分點。所以即使你把它從 55% 減到 56%，我們仍然在增長 50% 以上。新零售是我們核心商業不可或缺的一部分。我們披露了收入金額的數量，以及如果你把它拿出來你可以獲得的收入百分比。但是把它拿出來真的沒有意義。這個業務是往新零售方向發展的，所以這將是我們核心商業中非常關鍵的一部分。它是核心商業。利潤率——是的，我談到了由於業務轉向新零售而導致的利潤率結構性變化。所以基本上，新零售可能會有不同的成本結構，這可能會顯示出較低的利潤率。但這對我們來說不是問題，因為首先要記住較低的利潤率並不一定等於較低的利潤，因為我們正在把蛋糕做得更大。那麼 60% 的蘋果和 40% 的西瓜，你想要哪個？第二點是較低的利潤率不一定等於較低的現金流量。例如，由於零售業的負營運資本性質，庫存可以對現金流做出積極貢獻，並且可以通過消費者洞察和數據技術降低庫存風險。

The next question comes from the line of Grace Chen of Morgan Stanley.

下一個問題來自摩根士丹利的Grace Chen。

My first question is about the potential of personalization in Alibaba's platform. I understand that the most recent key algorithm upgrade was in September 2016. So this leads to a tough comp of the customer management revenue in the December quarter. But personalization should be in the beginning, so we're wondering how big the tally remains coming from further algorithm upgrade in the future. And my second question is about the changing dynamics in e-commerce competitive landscape. As we see fast growth in those emerging smaller social commerce players, what's your view of this recent phenomena and have you seen any impact to your ecosystem now or potentially in the future?

我的第一個問題是關於阿里巴巴平台個性化的潛力。據我了解，最近一次關鍵算法升級是在 2016 年 9 月。因此，這導致 12 月季度的客戶管理收入難以計算。但個性化應該在一開始，所以我們想知道未來進一步的算法升級還有多少。我的第二個問題是關於電子商務競爭格局不斷變化的動態。正如我們看到這些新興的小型社交商務參與者的快速增長，您對最近的現像有何看法？您是否看到現在或將來對您的生態系統有任何影響？

So this personalization, algorithm how much reserve we have and how much technology can help in the monetization in the revenue? So what I can share about is that we do have a lot of things going on with this technology improvements and upgrading, the AI, the neural network, et cetera. So later on when we're starting the new fiscal year, we're also going to talking about revenue guidance. So by that time, you will have a sense of that.

那麼這種個性化、算法我們有多少儲備以及多少技術可以幫助收入貨幣化？所以我可以分享的是，我們確實在技術改進和升級、人工智能、神經網絡等方面有很多進展。因此，稍後當我們開始新的財政年度時，我們還將討論收入指導。所以到那個時候，你就會有那種感覺。

Yes, just quickly -- I just want to add to, Grace, your question about personalization and technology. The question is, do we still have tricks in the bag when it comes to technology to improve personalization? The answer is absolutely yes. But the one point that is not to be missed is -- Daniel earlier referred to this point, is the fact that because we have a very robust user growth, a higher engagement by these users, we are now creating additional inventory. So when you start thinking about whether change in algorithm would drive more revenue growth, I think -- don't forget to look at additional expansion in terms of ads inventory that we haven't even monetized. So there's really no need to increase ad load, but think about increasing ad inventory. So I think that's a point that I had missed.

是的，很快——Grace，我只想補充你關於個性化和技術的問題。問題是，在提高個性化的技術方面，我們還有什麼訣竅嗎？答案是肯定的。但不容錯過的一點是——丹尼爾早些時候提到了這一點，事實上，由於我們的用戶增長非常強勁，這些用戶的參與度更高，我們現在正在創建額外的庫存。因此，當你開始考慮算法的變化是否會推動更多的收入增長時，我認為——不要忘記看看我們甚至還沒有貨幣化的廣告庫存方面的額外擴張。所以真的沒有必要增加廣告負載，而是考慮增加廣告庫存。所以我認為這是我錯過的一點。

Well, in terms of the new opportunities in social commerce and other initiatives, I will say actually what we have done in the past 18 years is always to make innovations in new initiatives and to apply the new technologies into the real commerce world to enable our merchants and the retail partners to be a digital operation. And today I will say with the development of the mobile Internet and all the people are living on Internet and more and more players are trying to take this opportunity to try e-commerce from different angle. And we're happy to see that because this will make us move faster and make us continue our innovation. And we're happy to see a growing plan in terms of customer acquisition, in terms of the customer retention and in terms of the growth of our merchants. And as I've said in my script, last year's November 11 is a very typical example in how many merchants sales exceeded RMB 100 million in 1 day, which is actually -- which is a very solid evidence of the prospectus of our ecosystem. And we will continue to invest and innovate in our ecosystem to make our platform valuable for both merchants and consumers as well as third-party service providers.

那麼關於社交商務和其他舉措的新機會，我會說實際上我們在過去 18 年所做的一直是在新舉措中進行創新，並將新技術應用到真實的商業世界中，使我們能夠商家和零售合作夥伴進行數字化運營。而今天我要說的是，隨著移動互聯網的發展，全民都生活在互聯網上，越來越多的玩家正試圖藉此機會從不同的角度嘗試電子商務。我們很高興看到這一點，因為這會讓我們行動得更快，讓我們繼續創新。我們很高興看到在客戶獲取、客戶保留和商家增長方面不斷增長的計劃。正如我在我的腳本中所說，去年的 11 月 11 日是一個非常典型的例子，有多少商戶在一天內銷售額超過 1 億元人民幣，這實際上是 - 這是我們生態系統招股說明書的非常有力的證據。我們將繼續投資和創新我們的生態系統，使我們的平台對商家和消費者以及第三方服務提供商都有價值。

The next question is from Gregory Zhao of Barclays.

下一個問題來自巴克萊銀行的 Gregory Zhao。

So I have 2 questions. The first one is that recently Alibaba appointed 2 very young new presidents to Taobao and the Tmall platforms. So both guys with pretty strong Big Data management and marketing experience. Can you share some colors and the reasons of the new appointment and what kind of changes this will bring to Alibaba? And a quick follow-up question. As the Chinese New Year holiday will come a little bit later this year, so would you please share some colors like the potential impact to the coming quarter?

所以我有兩個問題。第一個是最近阿里巴巴任命了兩位非常年輕的新總裁到淘寶和天貓平台。所以這兩個人都擁有非常豐富的大數據管理和營銷經驗。您能否分享一些顏色和新任命的原因以及這將給阿里巴巴帶來什麼樣的變化？以及一個快速的後續問題。由於今年農曆新年假期會稍晚一些，您能否分享一些顏色，例如對下一季度的潛在影響？

Actually, we are very happy to have young people joining our -- join our Senior Executive team and we think young -- because our -- if you look at our customer base, they are getting younger, younger and we do need people who understand the young customers and to serve them. So that's why we are so happy to have both [Zhao Fa] and [Zai Ching] to join our Senior Executive team. And both of them have been working with us for quite a few years and have -- also demonstrated very proven results in each of their previous jobs. And today with that -- actually, with their on-boarding on the new role, I am confident that they will take both Taobao and Tmall to the next step and to the next journey. And in terms of the Chinese New Year, actually this year, Chinese New Year will be on February 16. And as usual, we are preparing for the Chinese New Year, and these days, we have a good Chinese New Year festival and in Chinese (foreign language) on our platform. And we also see a very good result in this new (foreign language) and that we're trying to serve our people not only, I mean, before the Chinese New Year but also in the Chinese New Year. And that we will also have a good -- a marketing campaign during the Chinese New Year.

實際上，我們很高興有年輕人加入我們——加入我們的高級管理團隊，我們認為年輕——因為我們——如果你看看我們的客戶群，他們會變得越來越年輕，我們確實需要了解的人年輕顧客並為他們服務。所以這就是為什麼我們很高興 [趙發] 和 [再清] 都加入我們的高級管理團隊。他們兩人都已與我們合作多年，並且在他們之前的每一份工作中都展示了非常可靠的成果。而今天 - 實際上，隨著他們對新角色的入職，我相信他們將把淘寶和天貓帶到下一步和下一個旅程。而在農曆新年方面，實際上今年，農曆新年將在 2 月 16 日。和往常一樣，我們正在為農曆新年做準備，這幾天，我們有一個很好的農曆新年節日和中文（外語）在我們的平台上。我們也看到這種新的（外語）取得了很好的成績，我們不僅在農曆新年前而且在農曆新年期間努力為我們的人民服務。而且我們還將在農曆新年期間開展一項很好的營銷活動。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.

謝謝。女士們，先生們，我們今天的會議到此結束。感謝您的參與。你們都可以斷開連接。