阿里巴巴 (BABA) 2022 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's March Quarter 2022 and Full Fiscal Year 2022 Results Conference Call. (Operator Instructions)

女士們、先生們，大家好！感謝您的耐心等待。歡迎參加阿里巴巴集團2022年3月季及2022財年全年業績電話會議。 （操作員指示）

I would now like to turn the call over to Rob Lin, 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者關係負責人Rob Lin。請您發言。

Good day, everyone, and welcome to Alibaba Group's March Quarter 2022 and Full Year -- Full Fiscal Year 2022 Results Conference Call. With us today are: Daniel Zhang, Chairman and CEO; Joe Tsai, Executive Vice Chairman; Toby Xu, Chief Financial Officer. This call is also being webcasted from the IR section of our corporate website. A replay of the call will be available on our website later today.

大家好，歡迎參加阿里巴巴集團2022年3月季及全年業績電話會議。今天出席會議的嘉賓有：董事長兼執行長張勇，執行副董事長蔡崇信，財務長徐直軍。本次電話會議也將透過我們公司網站的投資者關係板塊進行網路直播。會議重播將於今天晚些時候在我們的網站上發布。

Now let me quickly cover the safe harbor. Today's discussion may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For a detailed discussion of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the U.S. SEC or announced on the website of the Hong Kong Stock Exchange. Any forward-looking statement 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.

現在，請容許我快速介紹一下安全港條款。今天的討論可能包含前瞻性陳述。前瞻性陳述包含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。有關這些風險和不確定性的詳細討論，請參閱我們最新的20-F表格年度報告以及向美國證券交易委員會提交或在香港交易所網站上公佈的其他文件。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 are using on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA margin, non-GAAP net income, non-GAAP diluted earnings per share, ADS and free cash flow, are expressed on a non-GAAP basis. Our GAAP results and reconciliation of GAAP to non-GAAP measures can be found in our earnings press release. Unless otherwise stated, growth rate of all stated metrics mentioned during this call refer to year-over-year growth versus the same quarter last year.

請注意，本次電話會議中使用的某些財務指標，例如調整後息稅折舊攤銷前利潤 (EBITDA)、調整後息稅折舊攤銷前利潤率 (EBITDA margin)、調整後息稅攤銷前利潤 (EBITA)、調整後息稅攤銷前利潤率 (EBITA margin)、非公認會計準則和自由現金流，均以非公認會計準則 (GAAP) 為基礎。我們公認的會計準則 (GAAP) 績效以及 GAAP 與非公認會計準則 (GAAP) 指標的對帳表可在我們的績效新聞稿中找到。除非另有說明，本次電話會議中提及的所有指標的成長率均指與去年同期相比的同比增長。

In addition, during today's call, management will give their prepared remarks in English. A third-party translator will provide simultaneous Chinese translation on another conference line. Please refer to our press release for details. During the Q&A session, you will -- we will take questions in both English and Chinese. And the third-party translator will provide consecutive translation. All translations are for convenience purpose only. In the case of any discrepancy, management's statement in the original language will prevail.

此外，在今天的電話會議上，管理階層將以英文發表準備好的發言。第三方翻譯將透過另一條電話會議線路提供中文同聲傳譯。詳情請參閱我們的新聞稿。在問答環節，我們將用英文和中文回答您的問題。第三方翻譯將提供交替傳譯。所有翻譯僅供參考。如有任何差異，以管理階層原文聲明為準。

With that, I will now turn to Daniel.

現在，我要向丹尼爾提問。

Thank you, Rob. Hello, everyone. Thank you for joining our earnings call today. We completed a solid fiscal year amidst the macroeconomic challenges in China due to the resurgence of COVID and tremendous uncertainties in the global geopolitical landscape.

謝謝Rob。大家好。感謝大家今天參加我們的財報電話會議。儘管新冠疫情捲土重來為中國帶來了宏觀經濟挑戰，全球地緣政治格局也充滿不確定性，但我們仍然完成了穩健的財年。

During the fiscal year, we achieved the target of 1 billion AACs in China with annual net increase of 113 million. Globally, we reached 1.31 billion AACs with annual net increase of 177 million. And we achieved a total GMV of RMB 8.3 trillion with close to RMB 8 trillion in China and RMB 341 billion outside of China. Our cloud computing business completed its first profitable fiscal year while maintaining market leadership in China.

本財年，我們在中國實現了10億台AAC的目標，年度淨增加1.13億台。全球範圍內，我們的AAC銷量達到13.1億台，年度淨增加1.77億台。我們的GMV（交易總額）達到人民幣8.3兆元，其中中國市場近8兆元，中國以外地區3,410億元。我們的雲端運算業務在中國市場保持領先地位，並完成了首個獲利財年。

Now I would like to share a bit more about the latest situation in China with the recent resurgence of COVID. As you all know, Omicron started to spread in China in March and has impacted several major consumption and manufacturing centers: such as Pearl River Delta, including Shenzhen; the Yangtze River Delta, including Shanghai and Beijing. During the second half of April, over 80 cities in China reported confirmed COVID cases. And most are national economic centers. Such widespread impact has brought significant uncertainties to the China economy. We saw the national retail sales reporting negative year-over-year growth in March and April. And online sales of physical goods also reported a historical decline year-over-year.

現在，我想再分享一下中國疫情近期捲土重來的最新情況。眾所周知，Omicron病毒自3月開始在中國蔓延，並已影響幾個主要的消費和製造業中心：例如包括深圳在內的珠三角地區，以及包括上海和北京在內的長三角地區。 4月下半月，中國已有超過80個城市報告了確診病例，其中大多數是全國經濟中心。如此廣泛的影響為中國經濟帶來了巨大的不確定性。我們看到，3月和4月，全國社會消費品零售總額較去年同期出現負成長，實體商品線上銷售額也出現了歷史性的年減。

The resurgence of COVID has also impacted our business to varying degrees. Overall speaking, we saw a low single-digit decline in revenue growth in April compared to the same period last year. Online physical goods GMV of our China retail marketplaces, excluding unpaid orders, saw a year-over-year decline in the low-teens percentage in April. To give you a sense of the scope of impact, based on our consumer address, cities with new COVID cases in April represented more than half of our China retail marketplaces' GMV. These cities also included major merchant hubs, such as Shanghai, Shenzhen and their nearby cities, where supply chain and logistic disruptions have resulted in widespread impacts.

新冠疫情的捲土重來也不同程度地影響了我們的業務。整體而言，4月我們的營收增幅與去年同期相比出現了低個位數的下降。我們中國零售平台的線上實體商品交易總額（不包括未支付訂單）在4月年減了10%左右。為了讓您了解影響範圍，根據我們的消費者地址，4月新增新冠病例的城市占我們中國零售平台交易總額的一半以上。這些城市也包括主要的商家中心，例如上海、深圳及其周邊城市，這些城市的供應鏈和物流中斷已造成廣泛影響。

During the same period, while our user traffic and engagement have remained resilient, patterns of consumption across categories on our platforms have shifted. Fashions and electronics consumption decreased. Demand for essential supplies, such as food and FMCG products, increased significantly with more consumers stockpiling at home. Emerging categories, such as health care, activewear and outdoor products, also grew rapidly. We have seen a major recovery in local logistic capacity compared to April. We believe operating stability and sustainability during this period is the primary concern of all businesses. Ensuring stability of supply chain and logistics amidst the uncertainties is the best way to improve consumption sentiment and foster a more positive environment for business operations.

同期，雖然我們的用戶流量和參與度保持韌性，但我們平台上各品類的消費模式發生了變化。時尚和電子產品的消費有所下降。隨著更多消費者居家囤貨，食品和快速消費品等必需品的需求大幅增加。醫療保健、運動服和戶外用品等新興品類也實現了快速成長。與4月相比，本地物流能力已大幅回升。我們認為，在此期間，營運的穩定性和永續性是所有企業的首要關注點。在充滿不確定性的市場環境下，確保供應鏈和物流的穩定是提振消費情緒、創造更積極企業營運環境的最佳途徑。

We are also facing uncertainties in the macro environment outside of China. During the quarter, Lazada order growth slowed down to 32% year-over-year as offline consumption gradually recovered post pandemic in Southeast Asia with Malaysia, Vietnam and Thailand achieving higher than regional average order growth rates. Trendyol continued its market leadership in Turkey with quarterly order volume growing by 48% year-over-year. The order volume of AliExpress decreased year-over-year this quarter mainly due to the impact of European Union's policy change in VAT exemption, recovery of local supply chain and offline consumption post pandemic as well as international logistics disruptions due to the regional conflict.

我們也面臨中國以外宏觀環境的不確定性。本季度，Lazada 訂單量年增率放緩至 32%，東南亞疫情後線下消費逐漸復甦，其中馬來西亞、越南和泰國的訂單量增速高於區域平均。 Trendyol 持續維持土耳其市場領先地位，季度訂單量較去年同期成長 48%。全球速賣通 (AliExpress) 本季訂單量較去年同期下降，主要原因是歐盟增值稅豁免政策變化、疫情後本地供應鏈和線下消費復甦以及地區衝突導致的國際物流中斷。

Despite geopolitical conflicts and uncertainties, we will continue efforts to develop our globalization strategy in consumption. We will serve international consumers through a combination of cross-border and local commerce models and proactively invest in our global logistics networks as part of our overseas digital commerce infrastructure buildup. Facing the challenges of geopolitical and macroeconomic uncertainties, many companies started to focus on high-quality growth with cost control and loss-cutting.

儘管地緣政治衝突和不確定性依然存在，我們仍將繼續致力於消費全球化策略。我們將透過跨國和本地商務模式結合的方式服務國際消費者，並積極投資全球物流網絡，以建立海外數位商務基礎設施。面對地緣政治和宏觀經濟不確定性的挑戰，許多公司開始專注於高品質成長，控製成本、削減虧損。

For Alibaba, high-quality growth has been a principle for years. Especially during the pandemic, we see the benefits of a solid foundation that we have built over time carrying out this principle: number one, the high-quality consumer that we serve; number two, the high-quality infrastructure we are building for digital commerce; and number three, the high-quality technology innovations that drive the vast potential of our cloud computing business. I will elaborate more in the following sections.

對阿里巴巴而言，高品質成長多年來始終是我們的原則。尤其是在疫情期間，我們更加看到了長期實踐這項原則所建立的堅實基礎所帶來的益處：第一，我們服務的是高品質的消費者；第二，我們正在為數位商務建立高品質的基礎設施；第三，驅動我們雲端運算業務巨大潛力的高品質技術創新。我將在以下章節中進一步闡述。

First of all, the high-quality consumer base. We serve the largest and highest-quality consumer base in China by Taobao and Tmall. Among our 1 billion AACs in China, 124 million consumers spend more than RMB 10,000 annually on Taobao and Tmall. And 98% of those consumers continue to stay active in the following years. Looking ahead, we will continue to strengthen our comprehensive consumer application portfolio with clearly differentiated user value propositions and address the diversified needs of different consumer segments in accordance with their consumption power and mindset, especially those of our core customers.

首先，我們擁有高品質的消費者群。淘寶和天貓服務於中國規模最大、品質最高的消費者群體。在我們在中國的10億AAC（消費者帳戶）中，有1.24億消費者每年在淘寶和天貓上的消費超過1萬元。其中98%的消費者在未來幾年仍將保持活躍。展望未來，我們將繼續強化我們全面的消費者應用組合，提供差異化的用戶價值主張，並根據不同消費群體，尤其是核心用戶的消費能力和消費觀念，滿足他們的多樣化需求。

What does it mean? In prepurchase stage, it means establish a clear consumer mindset, stimulating consumer interest through increasing user engagement and time spent on consumption-related contents and influencing consumer decision. In post-purchase stage, it means an enhanced fulfillment and customer service experience. I believe this is the winning formula for earning consumer mind share and wallet share in a highly competitive landscape.

這是什麼意思？在購買前階段，它意味著建立清晰的消費者心態，透過提升用戶參與度和在消費相關內容上花費的時間，激發消費者興趣，從而影響消費者決策。在購買後階段，它意味著提升履行體驗和客戶服務體驗。我相信，這是在競爭激烈的市場中贏得消費者心智份額和錢包份額的致勝法寶。

Secondly, the high-quality infrastructure for digital commerce. Over the years, Alibaba has established a comprehensive infrastructure for digital commerce based on a hybrid model, combining intercity and intracity fulfillment. Through digital user outreach, effective organization of product and services supply as well as fulfillment service capabilities covering cities and communities, our infrastructure has become an important way for consumers to obtain daily necessities during the pandemic. In particular, over the last few years, we have created our location-based commerce business by building core capabilities in supply chain and fulfillment and online-offline integrated distribution networks on top of a pre-existing marketplace model.

其次，優質的數位商務基礎設施。多年來，阿里巴巴基於混合模式，結合城際和同城配送，建構了全面的數位商務基礎設施。透過數位化用戶觸達、高效組織產品和服務供應，以及覆蓋城市和社區的配送服務能力，我們的基礎設施已成為疫情期間消費者獲取生活必需品的重要途徑。尤其值得一提的是，過去幾年，我們在原有市場模式的基礎上，建構了供應鏈和配送核心能力以及線上線下一體化的分銷網絡，打造了基於位置的商務業務。

Based on our data in March and April, an average order value of customers in our location-based commerce business has increased significantly as consumers in COVID-affected areas rushed to stock up. As a result, while our order volumes were negatively impacted by the fulfillment capacity constraint during the pandemic, GMV of these location-based commerce business have shown robust year-on-year growth.

根據我們3月和4月的數據，由於新冠疫情期間消費者紛紛囤貨，我們基於位置的商務業務的客戶平均訂單金額大幅提升。因此，儘管疫情期間我們的訂單量受到配送能力限制的負面影響，但這些基於位置的商務業務的商品交易總額 (GMV) 仍實現了強勁的同比增長。

Taking Shanghai as an example, while Ele.me's food delivery business has been significantly impacted, deliveries of retail categories have grown rapidly. In particular, demand for groceries and pharmaceuticals are extremely strong with year-on-year growth above 100%. As Ele.me continued to enhance its operations and reduce unit cost -- unit logistic cost, its unit economics also improved significantly to almost breakeven during the quarter.

以上海為例，雖然餓了麼的外送業務受到了顯著衝擊，但零售品類的配送業務卻成長迅速。尤其是食品雜貨和藥品的需求極為強勁，較去年同期成長超過100%。隨著餓了麼持續優化營運並降低單位成本——單位物流成本，其單位經濟效益也顯著提升，本季幾乎達到損益兩平。

Our infrastructure is playing an important role during the panic. For example, our different businesses, including Freshippo, Taoxianda, Tmall Supermarket, Ele.me, et cetera, are providing essential supplies in cities impacted by COVID in China. Through these efforts, we hope to integrate business capabilities with social responsibility, leveraging the power of digital commerce and technology in the fight against COVID and providing essential supply support for local communities.

在疫情恐慌期間，我們的基礎設施發揮重要作用。例如，我們旗下的盒馬鮮生、淘鮮達、天貓超市、餓了麼等不同業務，正在為中國受疫情影響的城市提供必需品。我們希望透過這些努力，將業務能力與社會責任結合，在抗擊疫情中發揮數位商務和技術的力量，並為當地社區提供必需品供應支援。

Let me name a few examples. Sun Art, Freshippo and other business units supported the supply and delivery of essentials to the residents by dispatching thousands of couriers and frontline workers from various regions in China to Shanghai. Ele.me delivered more than 2.5 million pharmaceutical medicine orders to homes in Shanghai in April 2022. It also launched emergency delivery services for vulnerable groups in the city and addressed nearly 70,000 emergency requests during the month. Cainiao logistics built an emergency logistics system that encompassed disaster preparedness management, emergency transportation, transit and distribution to deal with contingencies.

我舉幾個例子。高鑫零售、盒馬鮮生等業務部門從全國各地調派數千名快遞員和第一線工作人員到上海，支援居民生活物資的供應和配送。餓了麼在2022年4月為上海市民送去了超過250萬份藥品訂單，並啟動了針對上海市弱勢群體的緊急配送服務，當月處理了近7萬個緊急需求。菜鳥物流建構了涵蓋災備管理、緊急運輸、中轉配送等環節的緊急物流體系，以因應突發事件。

Amap, our map navigation tool, launched the map of PCR testing sites, which covered more than 350 cities in China by mid-May. Users can easily search for locations and opening hours of nearby test sites. Taobao and Tmall have launched a series of targeted relief measures that would help merchants in Shanghai and those participating in our June 18 Shopping Festival after cash flow -- to ease their cash flow pressure, reduce operating costs and speed up the consumption -- resumption of work and production to the largest extent possible.

我們的地圖導航工具高德地圖推出了PCR檢測點地圖，截至5月中旬，該地圖已覆蓋中國350多個城市。使用者可以輕鬆搜尋附近偵測點的位置和開放時間。淘寶和天貓推出了一系列有針對性的紓困措施，旨在幫助上海及參與「6·18」購物節的商家最大程度地緩解現金流壓力，降低營運成本，加快消費，最大程度地復工復產。

Thirdly, the high-quality technology innovations that drive the vast potential of our cloud computing business. Alibaba Cloud's competitive advantage is its world-class perpetual technology and products that support the highly demanding and complex business across Alibaba Group while serving customers across a wide range -- a wide variety of verticals globally. In fiscal year 2022, Alibaba Cloud continues to be the leader in terms of market share in China and achieved a full year profitability for the first time. Its GAAP revenue reached RMB 74.6 billion during the year with 23% year-on-year growth.

第三，高品質的技術創新驅動著我們雲端運算業務的巨大潛力。阿里雲的競爭優勢在於其世界一流的、持續發展的技術和產品，這些技術和產品不僅支持阿里巴巴集團高要求且複雜的業務，還服務於全球廣泛垂直行業的客戶。在2022財年，阿里雲持續保持中國市場份額的領先地位，並首次實現全年獲利。全年GAAP收入達人民幣746億元，較去年成長23%。

Before intersegment elimination, cloud revenue for the fiscal year has exceeded RMB 100 billion. During the past quarter, Alibaba Cloud's revenue increased by 12% year-on-year. The growth deceleration was a result of several factors, including the decline in corporate activities and a delay in project delivery due to the impact of COVID restrictions, slowdown in the growth of Internet industry customers and the gradual termination of contracts by a top customer for our public cloud services outside of China. We believe these impacts are temporary.

扣除分部間抵銷因素前，本財年雲端業務收入已超過1,000億元。上一季度，阿里雲端營收年增12%。成長放緩受多種因素影響，包括受新冠疫情限制措施影響，企業活動減少、專案交付延遲、網路產業客戶成長放緩，以及頂級客戶逐步終止我們在中國境外的公有雲服務合約。我們認為這些影響是暫時的。

While China's Internet industry customers show a deceleration in cloud service demand as the entire sector faced a challenge of growth ceiling in user traffic and time spent, digitization of other industries is just starting, and we see plenty of opportunities. Cloud computing and data intelligence services are fundamental to every business in every sector undergoing digital transformation. According to the industry estimates, China's cloud market size will reach RMB 1 trillion by 2025. Alibaba Cloud will continue to elevate its core technology and products to maintain its leadership in its highly potential market.

由於整個產業面臨用戶流量和使用時長成長瓶頸的挑戰，中國互聯網產業客戶對雲端服務的需求有所放緩，而其他產業的數位轉型才剛起步，我們看到了巨大的機會。雲端運算和數據智能服務是各行各業數位轉型中企業的基礎。根據業內人士估計，2025年，中國雲端市場規模將達到1兆元。阿里雲將持續提升核心技術和產品，以維持其在極具潛力市場的領先地位。

The cumulative results of Alibaba's strong management and operations over the years has produced a high-quality customer base, a sophisticated digital commerce infrastructure and world-class technology innovation. We also have a multi-engine growth strategy, robust financial conditions and a profitable business and a strong cash flow. These provide important assurance in the face of a macro uncertainty and more importantly, a source of confidence as we continue to pursue healthy and sustainable development for the future. In the new fiscal year, we will focus even more on cost control and continue to improve our operating efficiency. This includes streamlining unprofitable businesses, improving cash cycles and enhancing investment efficiency in personnel, fixed assets and other areas to maintain financial flexibility amidst uncertainties.

阿里巴巴多年來強大的管理和營運累積了豐富的成果，打造了高品質的客戶基礎、先進的數位商務基礎設施和世界一流的技術創新。此外，我們還擁有多引擎成長策略、穩健的財務狀況、獲利的業務和強勁的現金流。這些在宏觀不確定性面前提供了重要的保障，更重要的是，也為我們繼續追求未來健康永續發展提供了信心。在新的財年，我們將更重視成本控制，持續提升營運效率。這包括精簡不獲利的業務，改善現金週期，並提高在人員、固定資產和其他領域的投資效率，以在不確定的環境中保持財務靈活性。

Recently, the Chinese government has released important policy signals on its commitment to stabilize the economy and the job market in response to COVID impacts. They have also issued clear statements on promoting the development of Internet platform economy through a healthy regulatory environment. Yesterday, the State Council held a national meeting to mobilize the implementation of several economic policies. As one of the representative companies of China Internet platform economy, Alibaba is committed to supporting China's development through the combination of technology innovation and commercial innovation.

近期，中國政府釋放了一系列重要政策訊號，顯示將致力於穩定經濟和就業市場，以應對新冠疫情的影響。此外，中國政府也明確表示將透過創造健康的監管環境，促進網路平台經濟發展。昨天，國務院召開全國會議，部署落實多項經濟政策。身為中國網路平台經濟的代表企業之一，阿里巴巴致力於透過技術創新與商業創新結合，支持中國發展。

We aim to serve Chinese consumers' pursuit for better life as well as the digital transformation needs of different industries. We also will be on the front lines in the fight against COVID and ensuring the availability of food and other essential supplies to communities in need. We look forward to the introduction and implementation of policies that will enable the Internet platform companies to contribute more towards stabilizing the market, creating jobs and furthering high-quality development of China economy.

我們致力於服務中國消費者對美好生活的追求，以及各行各業的數位轉型需求。我們也將奮戰在對抗新冠疫情的最前線，確保有需要的社區獲得食物和其他必需品。我們期待相關政策的推出和實施，使網路平台公司能夠為穩定市場、創造就業和推動中國經濟高品質發展做出更多貢獻。

The history of economic development has always been filled with twists and turns. In the long run, we strongly believe in the resilience and the potential of the China economy. We will strengthen our fundamentals during this unique period, focus on innovation and customer value creation and continue investing and planning for Alibaba's long-term growth.

經濟發展的歷史從來都是曲折的。長遠來看，我們堅信中國經濟的韌性和潛力。我們將在這個特殊時期鞏固基本面，專注於創新和客戶價值創造，並持續為阿里巴巴的長期成長進行投資和規劃。

Thank you, everyone, for your time. I will now turn the mic over to Toby, who will walk you through the details of our financial results.

謝謝大家抽出時間。現在，我將麥克風交給Toby，他將向大家詳細介紹我們的財務表現。

Thank you, Daniel. Hello, everyone. Let me walk you through the details of our financial results.

謝謝丹尼爾。大家好。我先來詳細了解我們的財務表現。

For the quarter ended March 31, 2022, total revenue was RMB 204 billion, an increase of 9%, that was primarily driven by the revenue growth of China commerce segment by 8% to RMB 140 billion; local consumer services segment by 29% to RMB 10 billion; and cloud segment by 12% to RMB 19 billion.

截至2022年3月31日的季度，總收入為人民幣2040億元，增長9%，主要由於中國商業部門收入增長8%至人民幣1400億元；本地生活服務部門收入增長29%至人民幣100億元；雲部門收入增長12%至人民幣190億元。

Income from operations for the quarter was RMB 16.7 billion compared to a loss from operations of RMB 7.7 billion in the same quarter of last year. The year-over-year change of RMB 24.4 billion was primarily due to RMB 18 billion anti-monopoly fine levied in the March 2021 quarter and a mark-to-market adjustment of SBC expenses of RMB 13 billion in the March 2022 quarter. Excluding these impacts, income from operations would have decreased by RMB 7 billion, primarily due to changes in adjusted EBITA.

本季營業利潤為 167 億元，而去年同期營業虧損為 77 億元。年減人民幣 244 億元，主要由於 2021 年 3 月當季徵收的 180 億元反壟斷罰款，以及 2022 年 3 月當季按市價計價的 SBC 費用調整了人民幣 130 億元。剔除這些影響，營業利潤將減少人民幣 70 億元，主要由於調整後 EBITA 的變化。

Adjusted EBITA decreased by RMB 6.8 billion to RMB 15.8 billion year-over-year in the quarter. The decrease was primarily due to RMB 7.4 billion decrease in China commerce segment EBITA that mainly reflected investments in Taocaicai and Taobao Deals, impacts from COVID as well as losses incurred by Sun Art. However, it's important to note that the combined losses of Taobao Deals and Taocaicai declined quarter-over-quarter as we focused on driving high-quality growth for our China commerce segment.

本季調整後息稅折舊攤提前利潤 (EBITA) 年減 68 億元，至 158 億元。主要原因是中國電商業務 EBITA 減少人民幣 74 億元，這主要反映了對淘菜菜和淘寶特賣的投資、新冠疫情的影響以及高鑫零售的虧損。然而，值得注意的是，由於我們專注於推動中國電商業務的高品質成長，淘寶特賣和淘菜菜的合併虧損季減。

Importantly, during the March 2022 quarter, we are also making progress in improving operating efficiency and instilled cost discipline through the company. This has resulted in narrowing losses year-over-year of RMB 1.2 billion for local consumer services; narrowing losses of RMB 732 million for DME segment; and improving profitability of RMB 618 million for cloud segment.

值得一提的是，在2022年3月當季，我們在提升營運效率和強化公司成本控制方面也取得了進展。這導致本地生活服務部門的虧損年減了12億元；DME部門的虧損縮減了7.32億元；雲端服務部門的獲利能力提升了6.18億元。

Cost of revenue ratio excluding SBC increased to 68% in the quarter ended March 31, 2022. The increase was primarily due to: firstly, higher proportion of direct sales businesses, such as Freshippo and Tmall Supermarket, that increased the cost of inventory as a percentage of revenue; and secondly, growth of Taocaicai and Cainiao businesses that led to an increase in logistics costs as a revenue of -- as a percentage of revenue.

截至 2022 年 3 月 31 日的季度，不包括 SBC 在內的收入成本率上升至 68%。此成長主要由於：首先，盒馬鮮生和天貓超市等直營業務佔比上升，導致庫存成本佔收入的百分比上升；其次，淘菜菜和菜鳥業務的成長導致物流成本佔收入的百分比上升。

Excluding SBC, product development expenses as a percentage of revenue slightly increased to 6% in the quarter ended March 31, 2022, reflecting our continued investments in talent to drive technology and product innovation. Sales and marketing expenses excluding SBC as a percentage of revenue remained stable at 13% in the March quarter compared to the same quarter of last year. Excluding SBC and the impact from anti-monopoly fine, general and administrative expenses as a percentage of revenue will be flattish in the quarter.

不計SBC，截至2022年3月31日的季度，產品開發費用佔收入的百分比小幅上升至6%，這反映了我們持續投入人才，以推動技術和產品創新。不計SBC，本季銷售及行銷費用佔收入的百分比與去年同期相比保持穩定，為13%。不計SBC及反壟斷罰款的影響，本季一般及行政費用佔收入的百分比將持平。

Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB 21.5 billion, a decline of RMB 6.9 billion primarily due to decrease in adjusted EBITA. GAAP net losses attributable to ordinary shares was RMB 16.2 billion. The difference between GAAP net losses and non-GAAP net income was primarily due to increase in the market prices -- a decrease in the market prices of our equity investments in publicly traded companies.

本季非公認會計準則下歸屬於普通股股東的淨利潤為人民幣215億元，較去年同期下降人民幣69億元，主要原因是調整後息稅折舊攤提前利潤（EBITA）下降。公認會計準則下歸屬於普通股股東的淨虧損為人民幣162億元。公認會計準則下淨虧損與非公認會計準則下淨利的差異主要由於市價上漲－我們對上市公司的股權投資市場價格下跌。

As of March 31, 2022, we continue to maintain a strong net cash position of RMB 343 billion or USD 54 billion. Our strong net cash position is supported by robust cash flow generation. In fiscal year 2022, net cash flow from operation and free cash flow were RMB 142.8 billion and RMB 98.9 billion, respectively. Majority of the difference is operating CapEx spending at RMB 42 billion, reflecting our investment in cloud business and logistics fulfillment infrastructure. Free cash flow in March quarter 2022 was an outflow of RMB 15 billion mainly due to the payment of final settlement -- installment in the amount of RMB 9.1 billion of RMB 18.2 billion, the anti-monopoly fine and a decrease in profit.

截至2022年3月31日，我們持續維持強勁的淨現金狀況，淨現金額達人民幣3,430億元（約540億美元）。強勁的淨現金狀況得益於強勁的現金流生成能力。 2022財年，淨經營現金流及自由現金流分別為人民幣1,428億元及人民幣989億元。差異主要來自420億元的營運資本支出，反映了我們對雲端業務和物流履行基礎設施的投資。 2022年3月當季自由現金流流出人民幣150億元，主要原因是支付了最終結算款（分期付款金額為人民幣91億元，佔182億元中的1%）、反壟斷罰款以及利潤減少。

Importantly, we have continued to enhance returns to shareholders through share repurchases, given our strong balance sheet and free cash flow generation capability. In fiscal year '22, we repurchased approximately 60 million of our ADSs for approximately USD 9.6 billion under our share repurchase program. On March '22, our company's Board has authorized an increase of our share repurchase program from USD 15 billion to USD 25 billion. Since April 1 to May 25, we have repurchased another USD 3.4 billion in ADSs. As of May 25, we still have an unused amount of USD 12 billion under the share repurchase program.

重要的是，鑑於我們強勁的資產負債表和自由現金流產生能力，我們持續透過股票回購提升股東回報。在22財年，我們根據股票回購計畫回購了約6,000萬股美國存託憑證，回購金額約96億美元。 2022年3月，公司董事會批准將股票回購計畫的規模從150億美元增加到250億美元。自4月1日至5月25日，我們又回購了34億美元的美國存託憑證。截至5月25日，我們根據股票回購計畫仍有120億美元未使用。

Before I start with our segment results, I'd like to highlight something in the December 2021 quarter financial results. In the December quarter, the net income attributable to ordinary shareholders was understated by RMB 7.3 billion. This was caused by a goodwill impairment charge that should have been partially attributed to noncontrolling interest but was fully recorded in net income attributable to ordinary shareholders. This does not impact our non-GAAP measures and does not impact revenue, income from operations or total net income for the December quarter. The attribution has been rectified and properly reflected in the full year consolidated financial information for fiscal year 2022. This attribution has no impact on the consolidated financial information for the March 2022 quarter.

在開始介紹各部門業績之前，我想先強調一下2021年12月季度財務業績中的一些問題。 12月季度，歸屬於普通股股東的淨利少報了73億元。這是由於一項商譽減損支出造成的，該支出本應部分計入非控制權益，但卻全部計入了歸屬於普通股股東的淨利潤。這不會影響我們的非公認會計準則指標，也不會影響12月季度的收入、營業利潤或總淨利。此歸因已修正，並已正確反映在2022財年全年合併財務資訊。此歸因對2022年3月季度的合併財務資訊沒有影響。

Now let's look at our segment results. Revenue from our China commerce segment in March quarter was RMB 140 billion, an increase of 8% year-over-year. Customer management revenue remained stable year-over-year at RMB 63 billion despite a low single-digit decline in Taobao and Tmall online physical goods GMV, excluding unpaid orders. For the March quarter, the combined GMV growth of January and February was flat but was offset by a decline in GMV in March, driven by COVID-19 impacts.

現在來看看我們各部門的業績。 3月季度，我們中國商務部門的營收為人民幣1,400億元，較去年同期成長8%。儘管淘寶和天貓線上實體商品GMV（不包括未支付訂單）出現低個位數下降，但客戶管理收入仍同比保持穩定，達到人民幣630億元。 3月季度，1月和2月的GMV合併成長持平，但3月受新冠疫情影響，GMV出現下降，抵銷了這一成長。

If we further break down customer management revenue growth into advertising and commission revenue, total advertising revenue delivered a positive growth during the quarter. Commission revenue recorded a high single-digit decline due to GMV decline and higher order cancellation and delays as a result of logistics bottleneck from COVID-19 resurgence in March. Direct sales and others revenue in March quarter was RMB 73 billion, an increase of 14% year-over-year, primarily driven by robust revenue growth of Freshippo and Tmall Supermarket.

如果我們將客戶管理收入的成長進一步細分為廣告收入和佣金收入，則本季廣告總收入實現了正成長。佣金收入錄得高個位數下降，原因是商品交易總額（GMV）下降，以及3月新冠疫情復發導致的物流瓶頸導致訂單取消和延誤增加。 3月份季度直銷及其他收入為人民幣730億元，較去年同期成長14%，主要得益於盒馬和天貓超市營收的強勁成長。

China commerce segment adjusted EBITA decreased by RMB 7.4 billion year-over-year to RMB 32.1 billion in the March quarter. The decline reflected investments in Taocaicai, Taobao Deals as well as over RMB 1 billion losses incurred by Sun Art primarily due to one-off asset impairments and special provisions. We are making progress in our commitment to improve efficiency and narrow losses for Taobao Deals and Taocaicai that have been successful in acquiring new consumers in less developed areas.

中國商業部門調整後息稅折舊攤提前利潤 (EBITA) 較去年同期下降 74 億元，至 321 億元。這一下降反映了對淘菜菜和淘寶特價版的投資，以及高鑫零售因一次性資產減值和特殊撥備而產生的超過人民幣 10 億元的虧損。我們正在努力提升淘寶特價版和淘菜菜的效率，並縮減虧損，這兩家公司已成功在欠發達地區吸引新消費者。

During the quarter, Taobao Deals had over 300 million annual active consumers. More than 20% of these AAC of Taobao Deals were consumers that did not shop on Taobao or Tmall in fiscal year 2022. And Taocaicai had over 90 million AACs, of which more than 50% were first-time fresh produce buyers on our various platforms. At the same time, the combined losses of Taobao Deals and Taocaicai declined quarter-over-quarter. We expect the combined Taobao Deals and Taocaicai losses to continue to narrow as we focus on driving high-quality growth for our China commerce segment.

本季，淘寶特賣有超過3億年活躍消費者。其中，超過20%的淘寶特賣年活躍消費者是2022財年未在淘寶或天貓購物的消費者。淘菜菜擁有超過9,000萬年活躍消費者，其中超過50%是首次在我們各個平台上購買生鮮農產品的消費者。同時，淘寶特賣和淘菜菜的合併虧損季減。隨著我們專注於推動中國商業板塊的高品質成長，我們預計淘寶特賣和淘菜菜的合併虧損將繼續收窄。

On to our major direct sales businesses. Except for Sun Art, as mentioned, losses narrowed year-over-year for Freshippo, Tmall Global and Tmall Supermarket. We have continued to expand our direct sales business to enrich product supply for our marketplaces, strengthen supply chain capabilities for various verticals and offer comprehensive high-frequency fulfillment services that seamlessly integrate with physical stores and pickup stations. These businesses delivered solid top line growth during the quarter. And we expect them to contribute more to the overall segment revenue mix, which will continue to affect the China commerce EBITA margin.

談談我們主要的直銷業務。除高鑫零售外，如前所述，盒馬鮮生、天貓國際和天貓超市的虧損均較去年同期收窄。我們持續拓展直銷業務，以豐富我們平台的商品供應，增強各垂直行業的供應鏈能力，並提供與實體店和自提站無縫整合的全面高頻次履約服務。這些業務在本季度實現了穩健的收入成長。我們預計它們將為整體分部收入結構貢獻更多，這將繼續影響中國商業的EBITA利潤率。

Our international commerce segment; revenue in March quarter was RMB 14.3 billion, an increase of 7% year-over-year. The increase was primarily driven by Lazada and Alibaba.com, our international wholesale business. Lazada delivered solid order growth of 32%, while Alibaba.com grew transaction value completed on its platform by 22%. The slower year-over-year growth rate as compared to previous quarters was mainly due to, firstly, revenue decline of Trendyol that was negatively impacted by the ongoing depreciation of Turkish lira against RMB; and secondly, orders declined for AliExpress, which was mainly driven by the ongoing impact from VAT rules as well as supply chain and logistics disruptions for parcels entering the Eurozone due to Russia and the Ukraine conflict and then slowing China export growth and supply chain disruptions from COVID-19 impacts.

我們的國際商務部門；3 月季度營收為 143 億元，年增 7%。這一成長主要得益於我們的國際批發業務 Lazada 和阿里巴巴國際站。 Lazada 的訂單量穩定成長 32%，而阿里巴巴國際站平台交易額成長了 22%。與前幾個季度相比，同比增長率有所放緩，主要原因是：首先，受土耳其里拉兌人民幣持續貶值的負面影響，Trendyol 的收入出現下滑；其次，全球速賣通的訂單量下降，主要原因是增值稅規則的持續影響以及俄羅斯和烏克蘭衝突導致進入歐元區的包裹供應鏈和疫情中斷，以及中國出口增長放緩和新冠。

International commerce segment adjusted EBITA losses was a loss of RMB 2.6 billion in March quarter. Losses slightly increased year-over-year, mainly driven by Trendyol's investments in new businesses such as international businesses and local consumer services in Turkey, partly offset by continued profit growth of Alibaba.com, narrowed losses of AliExpress and narrowed losses of Lazada through optimization of OpEx and logistics costs.

國際商務部門調整後EBITA虧損在3月季為26億元。虧損同比略有增加，主要由於Trendyol對國際業務和土耳其本地消費者服務等新業務的投資，部分被阿里巴巴國際站利潤的持續增長、全球速賣通虧損的收窄以及Lazada通過優化運營支出和物流成本而收窄的虧損所抵消。

Revenue from local consumer services was RMB 10.4 billion in March quarter, an increase of 29% year-over-year, driven by more efficient use of subsidies and higher average order value driving resilient GMV growth for Ele.me. Local consumer service adjusted EBITA losses reduced by RMB 1.2 billion year-over-year to RMB 5.5 billion primarily due to the narrowed losses of our To Home business, driven by optimized user acquisition and reduced delivery costs.

3月份季度，本地生活服務收入為人民幣104億元，年增29%，這得益於更有效率的補貼使用和更高的平均訂單價值，從而推動了餓了麼GMV的強勁增長。本地生活服務調整後EBITA虧損年減12億元，至人民幣55億元，主要由於到家業務虧損收窄，這得益於用戶獲取優化和配送成本降低。

Revenue from Cainiao after intersegment elimination was RMB 11.6 billion in March quarter, an increase of 16% year-over-year, primarily contributed by the increase in revenue from consumer logistics services as a result of service upgrade for enhancing consumer experience, partly offset by the decrease in international orders that was mainly impacted by the supply chain and logistics disruptions for parcels entering the Eurozone due to Russia and Ukraine conflict.

菜鳥網絡3月份季度扣除分部間抵銷後的營收為人民幣116億元，年增16%，主要由於為提升消費者體驗而進行服務升級，帶動消費者物流服務收入增加，但部分被國際訂單減少所抵消，國際訂單減少主要受到俄羅斯和烏克蘭衝突導致進入歐元區的包裹供應鏈和物流中斷的影響。

During the fiscal year 2022, 69% of Cainiao's total revenue was generated from external customers. Cainiao adjusted EBITA loss was RMB 912 million. Loss widened by RMB 327 million year-over-year, primarily due to increase in operating cost from expansion of our global smart logistics infrastructure as well as the impacts from COVID-19 resurgence in China and Russia and Ukraine conflict. Going forward, we will continue our efforts in building comprehensive logistics and fulfillment infrastructure in China and internationally, laying the foundation for sustainable long-term growth for our digital commerce businesses.

2022財年，菜鳥總營收的69%來自外部客戶。菜鳥調整後息稅折舊攤銷前利潤（EBITA）虧損為人民幣9.12億元，年比擴大人民幣3.27億元，主要由於我們全球智慧物流基礎設施擴張帶來的營運成本增加，以及新冠疫情在中國的反覆爆發以及俄烏衝突的影響。未來，我們將繼續致力於在中國及全球範圍內建立全面的物流和履約基礎設施，為我們數位商務業務的長期永續成長奠定基礎。

Revenue from our cloud segment after intersegment elimination was RMB 19 billion in March quarter, an increase of 12% year-over-year. Revenue growth was slower in March quarter compared to prior quarters, reflecting slowing economic activities, softening demand from customers in China Internet industry and delays in completing hybrid cloud projects due to COVID-19 impacts. Excluding revenue generated from a top customer in the Internet industry that gradually phased out using our cloud services for its international business, our cloud segment revenue after intersegment elimination would have grown 15% year-over-year during March quarter and 29% for fiscal year 2022.

扣除分部間業務後，我們雲端業務3月季度的營收為人民幣190億元，較去年同期成長12%。 3月季度的營收成長速度較前幾個季度有所放緩，這反映了經濟活動放緩、中國互聯網行業客戶需求疲軟以及新冠疫情導致的混合雲項目完成延遲。若不計互聯網行業頂級客戶（該客戶已逐步停止在其國際業務中使用我們的雲端服務）產生的收入，我們雲端業務3月季度（扣除分部間業務後）的收入將同比增長15%，2022財年將同比增長29%。

Excluding this customer, our customer base and industry coverage continues to diversify. The next top 10 nonaffiliated customers contribute to less than 10% of AliCloud's revenue in fiscal year 2022. Importantly, revenue contribution from non-Internet industries continues to increase as well. During the March quarter, revenue growth was strong in telecommunications, financial services and retail industries but declined in selected Internet verticals, including online education and entertainment.

除此客戶外，我們的客戶群和行業覆蓋範圍持續多元化。接下來的前十大非關聯客戶在2022財年對阿里雲端營收的貢獻不足10%。重要的是，非網路產業的收入貢獻也在持續成長。 3月份季度，電信、金融服務和零售業的收入成長強勁，但線上教育和娛樂等部分網路垂直產業的收入有所下降。

Adjusted EBITA of cloud segment, which comprises of Alibaba Cloud and DingTalk, was a profit of RMB 278 million in March quarter, which improved by RMB 618 million year-over-year. This is primarily attributable to ongoing improvement in cloud profitability, partly offset by increasing losses from DingTalk. In the new fiscal year, our cloud segment will focus on high-quality revenue growth, invest in talents and R&D and improve operating efficiency and expand internationally. Revenue from our digital media and entertainment segment in March quarter was RMB 8 billion, a decrease of 1% year-over-year. Adjusted EBITA was a loss of RMB 2 billion, narrowed by RMB 0.7 billion year-over-year.

阿里雲（包括阿里雲和釘釘）雲業務部門調整後息稅折舊攤銷前利潤（EBITA）在本季為人民幣2.78億元，年增人民幣6.18億元。這主要得益於雲端業務獲利能力的持續提升，但部分被釘釘業務虧損的擴張所抵銷。在新的財年，我們的雲端業務部門將專注於高品質的營收成長，加大人才和研發投入，提升營運效率，並拓展國際業務。本季，我們數位媒體和娛樂業務部門的營收為人民幣80億元，較去年同期下降1%。調整後息稅折舊攤提前利潤為人民幣20億元，較去年減少人民幣7億元。

Let me close with a short recap of last fiscal year and then our outlook. In fiscal year '22, we have faced with increasing challenges from many fronts. These have been brought about by slowing macro activities, increased competition and COVID resurgence domestically as well as changes in geopolitical conditions internationally. But they also bring into focus the fact that there's much we can do to create value for our customers and key stakeholders. During this past year, we have made a number of achievements that position us well for the future.

最後，請容許我簡單回顧上一財年，並展望未來。在22財年，我們面臨著來自多方面的日益嚴峻的挑戰。這些挑戰源自於宏觀經濟活動放緩、競爭加劇、國內新冠疫情捲土重來以及國際地緣政治情勢的變化。但這些挑戰也凸顯出，我們能夠為客戶和關鍵利害關係人創造價值，潛力巨大。在過去的一年裡，我們取得了一系列成就，為未來發展奠定了良好的基礎。

First, we have reached a historical milestone of over 1 billion annual active consumers for all our consumer-facing businesses in China. This was made possible through the strong execution and growth of businesses such as Taobao Deals and Taocaicai. Our unique value proposition of having both e-commerce and location-based commerce businesses at scale positions us well to serve these 1 billion consumers in China.

首先，我們在中國所有面向消費者的業務年度活躍用戶已超過10億，這是一個歷史性的里程碑。這得益於淘寶特價版和淘菜菜等業務的強勁執行力和成長。我們獨特的價值主張——同時擁有規模化的電商和基於位置的商務業務——使我們能夠更好地服務這10億中國消費者。

Second, we are seeing increasing benefit from our development of an integrated intercity and intracity logistics network that allow us to offer multiple delivery and fulfillment options to our consumers. This network also allow us to further increase penetration in categories such as grocery, FMCG and consumer electronics in the future. Lastly, in fiscal '22, we had spent over RMB 120 billion in technology-related costs and expenses that continue to strengthen our leading position in China's cloud market, support to the sophisticated technological demands of our consumer-facing businesses and advance our research and development in the next-generation technologies.

其次，我們正從城際和城內一體化物流網絡的建設中獲益良多，該網絡使我們能夠為消費者提供多種配送和履單選擇。未來，該網路也將協助我們進一步提昇在食品雜貨、快速消費品和消費性電子產品等品類的滲透率。最後，在22財年，我們在技術相關成本和費用上投入了超過人民幣1200億元，這將繼續鞏固我們在中國雲端市場的領先地位，滿足我們面向消費者業務的複雜技術需求，並推進我們對下一代技術的研發。

Now in terms of guidance. Since mid-March 2022, we have seen significant impacts to our domestic businesses from COVID-19 restrictions in China, particularly in Shanghai. Considering the risks and uncertainties arising from COVID-19, which we are not able to control and are difficult for us to predict, we believe it's prudent at this time not to give financial guidance that is typically provided at the start of the fiscal year.

現在談談業績指引。自2022年3月中旬以來，中國（尤其是上海）的新冠疫情限制措施對我們國內業務產生了重大影響。考慮到新冠疫情帶來的風險和不確定性，我們無法控制且難以預測，因此我們認為，目前不提供通常在財年伊始提供的財務指引是審慎之舉。

Looking forward in fiscal year '23, emphasizing what Daniel has mentioned, we will focus and execute several key operation principles and financial objectives, including, first, generate sustainable and high-quality revenue that reflects our ongoing commitment to developing high-quality consumers, high-quality digital commerce infrastructure and high-quality technology innovations. We believe these efforts will continue to build a strong and durable relationship with our consumers and customers.

展望2023財年，正如丹尼爾所提到的，我們將重點關注並執行幾項關鍵的營運原則和財務目標，包括：首先，創造可持續的高品質收入，這體現了我們持續致力於發展高品質消費者、高品質數位商務基礎設施和高品質技術創新的承諾。我們相信，這些努力將繼續幫助我們與消費者和客戶建立牢固而持久的關係。

Second, we will focus on optimizing our overall cost structure. We will control costs and improve returns for our major businesses that are already at significant scale compared to peers. For growth businesses, we will also optimize in spending and, at the same time, identify increasing monetization opportunities that yield sustainable, high-quality revenue. The incremental revenue generated will be invested back to the respective businesses and create value for their customers, thereby creating a virtuous growth loop to achieve long-term profitability. At a high level, we will seek to improve gross margin of our direct sales businesses, optimize logistics and fulfillment costs for consumer-facing businesses and control our overall sales and marketing spend.

第二，我們將專注於優化整體成本結構。我們將控製成本，提升規模已遠超同業的主要業務的回報。對於成長型業務，我們還將優化支出，同時尋找能夠帶來可持續高品質收入的獲利機會。新增收入將用於投資各業務，為其客戶創造價值，進而形成良性成長循環，實現長期獲利。整體而言，我們將努力提高直銷業務的毛利率，優化面向消費者業務的物流和履約成本，並控制整體銷售和行銷支出。

Third, continue to build an energy-efficient cloud infrastructure and a global warehouse and a logistics network that enhance our competitiveness in China and international markets. At the same time, we expect ongoing improvement in efficiency. And utilization of these infrastructures can benefit both our customers and our own self-operated businesses.

第三，繼續建構節能高效的雲端基礎設施、全球倉儲及物流網絡，以增強我們在中國和國際市場的競爭力。同時，我們期望持續提升效率。這些基礎設施的利用將使我們的客戶和我們自身的自營業務均受益。

Lastly, we seek to maintain strong operating cash flow generation and a strong net cash position that gives us the financial flexibility to invest in businesses and capabilities that expand the pie and benefit all of our key stakeholders. We have a lot of work ahead of us. But by being steadfast and executing the key strategic and financial objectives that we have set out, we believe Alibaba will emerge stronger in the future.

最後，我們力求維持強勁的營運現金流產生能力和強勁的淨現金狀況，從而賦予我們財務靈活性，投資於能夠擴大市場份額並惠及所有關鍵利益相關者的業務和能力。我們還有很多工作要做。但我們相信，只要我們堅定不移地執行我們設定的關鍵策略和財務目標，阿里巴巴未來將會更加強大。

Thank you. Now let's turn to Q&A.

謝謝。現在我們進入問答環節。

Hi, everyone. For today's call, you are welcome to ask questions in Chinese or English. A third-party translator will provide consecutive interpretation of the Q&A session. And our management will address your questions in the language you asked. Please note that the translation is for convenience only. In the case of any discrepancy, our management's statement in the original language will prevail. If you are unable to hear the Chinese translation, bilingual transcript of this call will be available on our website within 1 week after the meeting. (foreign language)

大家好。今天的電話會議，歡迎您使用中文或英文提問。第三方翻譯將為問答環節提供交替傳譯。我們的管理階層將使用您所選的語言解答您的問題。請注意，翻譯僅供參考。如有任何歧義，請以管理原文的發言為準。如果您無法收聽中文翻譯，本次電話會議的雙語文字記錄將在會議結束後一週內發佈在我們的網站上。 （外語）

Operator, please connect speaker and SI conference lines now and start the Q&A session. Thank you.

接線員，請立即連接揚聲器和 SI 會議線路，並開始問答環節。謝謝。

(Operator Instructions) Our first question comes from the line of Ronald Keung with Goldman Sachs.

（操作員指示）我們的第一個問題來自高盛的 Ronald Keung。

[Interpreted] Congratulations on the resilience that we see in the results that you've just released. We did see that CMR revenues were flat, but there was nonetheless low single-digit growth in GMV. And Daniel also spoke about how advertising was performing well. Certainly from April onwards, with the impact of COVID, there's been an impact there, including on CMR revenue. But I'm wondering what we're seeing in May in terms of the performance of the parcel network and if things are picking up and what we're seeing currently in terms of GMV and orders in May.

[翻譯] 恭喜您剛發布的業績展現出的韌性。我們確實看到，CMR（客戶直銷）收入持平，但GMV（商品交易總額）仍然維持了低個位數成長。 Daniel也談到了廣告業務表現良好。當然，從4月開始，受新冠疫情的影響，廣告業務也受到了影響，包括CMR收入。但我想知道5月份包裹網路的表現如何，情況是否正在好轉，以及5月GMV和訂單量目前如何。

[Interpreted] Well, thanks for your question. In Daniel's speech earlier, he did give you a presentation on the situation in April. Overall, as Daniel said, GMV was down by around 10%. Typically, CMR does tend to move in line with GMV, but there can be a lag. And it's the case that many merchants may need to invest in order to grow their revenues.

[口譯] 好的，感謝您的提問。 Daniel 先前的演講確實介紹了 4 月的情況。正如 Daniel 所說，總體而言，GMV 下降了約 10%。通常情況下，CMR 的走勢會與 GMV 同步，但可能會出現延遲。因此，許多商家可能需要投資才能增加收入。

Talking about the situation in May, the situation in May over the past couple of weeks, with the resumption of express deliveries and with the beginning of the normalization of the situation in Shanghai, certainly, we see things improving. But it will take time for all of the outstanding parcels to be delivered and also for merchants to make their preparations for the upcoming 6/18. In fact, preparations will be beginning tonight. But we certainly are seeing signs of improvement going into the month of May.

說到5月的情況，過去幾週，隨著快遞的恢復以及上海疫情開始恢復正常，我們當然看到情況有所改善。但所有未送達的包裹都需要時間才能送達，商家也需要為即將到來的618做好準備。事實上，準備工作今晚就開始了。但進入5月份，我們確實看到了好轉的跡象。

Our next question comes from the line of Eddie Leung with Bank of America.

我們的下一個問題來自美國銀行的 Eddie Leung。

I think Daniel started to mention about some of the longer-term initiatives because of the COVID lockdowns. So just looking ahead, assuming a reopening, do you see any long-term structural change in your operation, customer demand and product mix after these lockdowns? And what type of investment you need to make to handle the potential changes?

我想丹尼爾剛才提到了一些因為新冠疫情封鎖而採取的長期措施。那麼，展望未來，假設公司重新開業，封鎖結束後，您認為您的營運、客戶需求和產品組合會有什麼長期的結構性變化嗎？為了因應這些潛在的變化，您需要進行哪些類型的投資？

(foreign language)

（外語）

Thank you for the question. I think during this widespread COVID, I mean, in March and April, we do see a shift of the consumption pattern. And I think after this wave, I think what we see that actually consumers in China, they will tend to have some stocks at their home to prepare for the uncertain situation, so how to grow, for example, that supply by bulk and how to give an on-demand but not necessarily speedy delivery, but it's an on-demand and on-time delivery, I think, is very important.

謝謝你的提問。我認為在疫情蔓延期間，也就是三、四月份，我們確實看到了消費模式的轉變。而且我認為在這波疫情過後，我們看到中國消費者實際上會傾向於在家中儲備一些庫存，以應對不確定的情況。因此，我認為如何增加供應，例如如何批量供應，以及如何提供按需配送（不一定是快速配送，但必須是按需和準時配送）非常重要。

And for us, I think we are -- actually, we are actually -- we believe we are in a very -- we are in a good position, which we have both our nationwide platform as well as the leverage by the delivery networks with major delivery partners. But at the same time, we have our intracity and instant delivery forces on the ground in all of these major cities. So how to leverage this infrastructure and enhance these capabilities and capacities is our priority in the future for -- to support the various needs of the products.

對我們來說，我認為我們處於非常有利的地位，我們既擁有覆蓋全國的平台，又能與主要配送合作夥伴共同建立配送網路。同時，我們在所有主要城市都擁有本地配送和即時配送隊伍。因此，如何利用這些基礎設施並增強這些能力和產能是我們未來的首要任務，以滿足各種產品的需求。

So product-wise, I think it's more diversified to the bulk sales for the -- for preparation for the future and maybe for the small package just for the instant delivery and for the instant needs. So it's all about the -- you need diversified retail formats as well as the delivery and the fulfillment network to support both of these. Thank you. (foreign language)

所以從產品角度來看，我認為應該更加多樣化，既可以批量銷售，為未來做準備，也可以小包裝，以滿足即時配送和即時需求。所以，關鍵在於──你需要多樣化的零售模式，以及配送和配送網路來支援這兩種模式。謝謝。 （外語）

And our next question comes from the line of Thomas Chong with Jefferies.

我們的下一個問題來自 Jefferies 的 Thomas Chong。

[Interpreted] My question has to do with consumer spending. I'm wondering what changes you've seen in consumer spending within different segments of consumers, high-income, middle-income and low-income consumers. Are low-income consumers perhaps tending to be more cautious during this recent period?

[口譯] 我的問題是關於消費者支出的。我想知道您觀察到不同消費者群體（高收入、中等收入和低收入消費者）的消費支出發生了哪些變化。低收入消費者在最近一段時間是否趨於更加謹慎？

Also, I'd like to know what KPIs you've set for this year's 6/18 and how you see recovery in the second half of the year. Do you think that once logistics capabilities have recovered, that will set the stage for recovery? Or will we have to wait a bit longer perhaps to see consumer sentiment also recover?

另外，我想知道您為今年的6月18日設定了哪些關鍵績效指標 (KPI)，以及您如何看待下半年的復甦。您認為一旦物流能力恢復，就能為復甦奠定基礎嗎？還是說，我們可能需要再等一段時間才能看到消費者信心的復甦？

[Interpreted] Thank you. Well, on Alibaba's retail platforms, we have a consumer base of 1 billion consumers who are highly diverse, spanning all those different tiers of spending. And so yes, we certainly do see different patterns there. But what I can tell you is during a special period of time, you really see a divergence between spending on essentials versus nonessentials. In all those different tiers of consumers, demand for essentials has gone up and there's been less price sensitivity. Whereas with respect to nonessential purchases, there has been more price sensitivity.

[翻譯] 謝謝。阿里巴巴的零售平台擁有10億消費者，他們高度多元化，涵蓋了各個不同的消費層級。所以，是的，我們確實看到了不同的模式。但我可以告訴你的是，在特殊時期，你確實會看到必需品和非必需品支出之間的差異。在所有這些不同層級的消費者中，對必需品的需求都在上升，價格敏感度也降低了。而對於非必需品購買，價格敏感度則有所提高。

And this is also very relevant to the other part of your question about the trend for the coming half of the year. Because in my view, for recovery and growth of consumption to occur, two things need to happen. First, as I mentioned in my script, merchants, in order to be able to operate, need to have sustainable and robust supply chain and logistics in place. And at the same time, consumption demand needs to return.

這也與您問題中關於下半年趨勢的另一部分非常相關。因為在我看來，消費要復甦成長，需要兩件事。首先，正如我在演講中提到的，商家要繼續經營，就需要擁有可持續且穩健的供應鏈和物流。同時，消費需求也需要回升。

And in order for consumer demand to recover, it's very important that there would be strong expectations for the future. Because only when people have strong expectations for the future and, in particular, in their ongoing ability to grow their disposable income will they be able to grow their consumption, so going beyond essentials but getting back also to increase spending on the nonessentials, which should be very important for also growing the economy in terms of stimulating GDP growth.

為了恢復消費需求，對未來抱持強勁的預期至關重要。因為只有當人們對未來抱持強勁的預期，尤其是擁有持續成長可支配收入的能力時，他們才能增加消費，從而不僅要滿足基本生活必需品的需求，還要增加非必需品的支出，這對於刺激GDP成長，促進經濟成長也至關重要。

[Interpreted] The expectations there?

[翻譯] 那裡的期望是什麼？

[Interpreted] Yes. And the other part of the question was about this year's 6/18, which is just getting started. This is an important midyear event. And coming out of this recent challenging period, merchants are indeed excited. They're looking at it as a good opportunity to recover those losses and achieve good sales. So for us, we're making active preparations to do that. And we're seeing a lot of enthusiasm and a strong trend this year compared against last year in terms of merchant enrollment, in terms of the product offerings.

[翻譯] 是的。問題的另一部分是關於今年的618，它才剛開始。這是一個重要的年中活動。走出這段充滿挑戰的時期後，商家確實很興奮。他們把它看作是一個彌補損失、實現良好銷售的好機會。所以對我們來說，我們正在為此積極準備。我們看到，今年的商家註冊和產品供應與去年相比，熱情高漲，趨勢強勁。

So this is coming up into the holiday season. There's a lot of consumer enthusiasm. And as a platform, we intend to be strongly supportive. As was mentioned, for 6/18, we've already put in place many policies to support and help our merchants as well as to ensure that logistics are functioning effectively to help those merchants be able to achieve good sales. So these really are joint objectives for our merchants and for us as a platform. And of course, we do very much hope to see pandemic control measures continue to be effective, which will put in place the necessary conditions to make this a success.

眼下正值節慶季，消費者熱情高漲。作為平台，我們打算大力支持。如前文所述，針對618活動，我們已經制定了多項政策來支持和幫助我們的商家，並確保物流高效運轉，以幫助這些商家實現良好的銷售業績。因此，這些實際上是我們商家和我們平台的共同目標。當然，我們非常希望看到疫情防治措施持續有效，這將為這項活動的成功創造必要條件。

Our next question comes from the line of Jerry Liu with UBS.

我們的下一個問題來自瑞銀的 Jerry Liu。

[Interpreted] My question has to do with cost optimization, cost control, which you mentioned will be implemented across a lot of businesses. Should we understand that as part of this cost optimization strategy that in the coming fiscal year, the objective is to achieve faster profit growth than revenue growth? And we've certainly seen a significant improvement in [UE] and Ele.me and elsewhere. But what will be the major focuses and priorities for cost optimization in the coming fiscal year?

[翻譯] 我的問題是關於成本優化和成本控制，您提到這些將在許多業務中實施。我們是否應該理解，作為成本優化策略的一部分，在下一個財年，目標是實現利潤成長快於收入成長？我們確實看到[優易]、餓了麼和其他業務取得了顯著的改善。那麼，下一個財年成本優化的主要重點和優先事項是什麼？

[Interpreted] Thank you. This is Toby. I'll take that question. I think for the group as a whole, it's very clear that our strategy in the next few quarters or year as a whole is going to focus on cost optimization and cost control. And that will involve a couple of things. First of all, for the parts of the business that aren't generating long-term value, we'll find ways to make them more efficient or scale them down with consolidation.

[翻譯] 謝謝。我是托比。我來回答這個問題。我認為，就整個集團而言，很明顯，我們未來幾季或一年的整體策略將專注於成本優化和成本控制。這將涉及幾件事。首先，對於那些無法創造長期價值的業務部分，我們會想辦法提高效率，或透過整合來縮減規模。

Secondly, we do have a lot of different businesses that are different in nature. And therefore, we'll be taking different approaches and putting in place different requirements to achieving better cost efficiency. But to give you an example around our direct sales businesses, and here, it's very clear, on the one hand, in terms of gross margin, we're looking to drive higher efficiency. And at the same time, we'll also be looking to achieve more cost control, better efficiency in logistics. And it will be the combination of those two things that will drive cost optimization.

其次，我們確實有許多性質各異的業務。因此，我們將採取不同的方法，並設定不同的要求，以實現更高的成本效率。以我們的直銷業務為例，很明顯，一方面，在毛利率方面，我們希望提高效率。同時，我們也希望能更好地控製成本，提高物流效率。這兩方面的結合將推動成本優化。

And more broadly at the group-wide level, another example would be marketing costs. And here, we will be taking a more disciplined approach with specific measures. And in many cases, spending will be cut back. So we don't have a specific figure to share with you on the other part of your question that's about a ratio. But as I mentioned in my script, as CFO for the group, a big priority for us is driving higher operational efficiency, lowering cost, achieving higher efficiency in order to ensure that we have a strong balance sheet and strong cash flow generation capability.

更廣泛地講，在集團層面，另一個例子是行銷成本。在這方面，我們將採取更嚴謹的方法，並採取具體措施。在很多情況下，我們會削減支出。所以，關於您問題的另一部分，也就是關於比率的問題，我們目前沒有具體的數字可以分享。但正如我在演講稿中提到的，作為集團首席財務官，我們的首要任務是提高營運效率，降低成本，實現更高的效率，以確保我們擁有強勁的資產負債表和強大的現金流生成能力。

And our next question comes from the line of Alex Yao with JPMorgan.

我們的下一個問題來自摩根大通的 Alex Yao。

[Interpreted] Daniel, in your script, I believe you talked about incentives or stimuli that may be forthcoming from the government to help support the business of Internet platforms and drive consumer spending. I'm wondering if you could tell us what kinds of businesses do you think will benefit from these kinds of incentives and what kind of stimulus we can expect to see and how Alibaba can position itself to capture the benefit of this policy.

[口譯] 丹尼爾，在您的演講稿中，我相信您談到了政府可能推出的激勵措施或刺激措施，以幫助支持互聯網平台業務並推動消費支出。您能否告訴我們，您認為哪些類型的企業將受益於這些激勵措施？我們預期會看到哪些類型的刺激措施？阿里巴巴如何定位自己才能從這項政策中獲益？

[Interpreted] Thank you. Well, we've seen that the government has been coming out with various policies lately, aimed at stabilizing the economy, stabilizing employment, ensuring the provision of essentials to people, including yesterday, a very important national meeting convened by the State Council to implement measures in six different areas, several of which are highly relevant to the business of Alibaba, including stimulating consumption, ensuring the provision of essentials and achieving supply chain recovery. So that's all highly relevant to us.

[翻譯] 謝謝。我們看到政府最近推出了各種政策，旨在穩定經濟、穩定就業、保障群眾基本生活。包括昨天國務院召開的一次非常重要的全國性會議，部署落實六個方面的措施，其中一些措施與阿里巴巴的業務高度相關，包括刺激消費、保障基本生活保障和恢復供應鏈。所以這些都與我們息息相關。

As a responsible representative of the platform economy and also as a constituent of China's real economy, Alibaba is, of course, keen to make our due contribution to driving progress in all of these areas. And a very important part of this, of course, is SMEs. These small businesses, because of their scale, have been the most vulnerable to the impacts of the pandemic. And we very much want to help them recover. Only when SMEs have recovered can more market-based jobs and employment be generated.

作為平台經濟負責任的代表，同時也是中國實體經濟的組成部分，阿里巴巴當然渴望為推動所有這些領域的進步做出應有的貢獻。其中非常重要的一部分當然是中小企業。這些小企業由於規模龐大，最容易受到疫情的影響。我們非常希望幫助它們復甦。只有中小企業復甦，才能創造更多市場化就業機會。

For Alibaba, this is where we can have a very unique role to play, leveraging on our resources as a responsible company in society and as the operator of a digital economy. And we see this as a basic responsibility. We've been doing everything in our power to provide support and assistance to merchants. And as mentioned, with the upcoming 6/18 festival, we have 20 initiatives in 5 major categories. And recently, during the very difficult period in Shanghai, we had 20 special measures to support merchants during that period. We hope very much to be able to support merchants in these ways to facilitate their recovery and success.

對阿里巴巴來說，我們可以發揮非常獨特的作用，充分利用我們作為負責任的社會企業和數位經濟運營商的資源。我們視此為基本責任。我們一直在竭盡全力為商家提供支援和協助。如前文所述，為了迎接即將到來的「6·18」購物節，我們推出了五大類20項措施。最近，在上海疫情非常嚴峻的時期，我們推出了20項特別措施來支持商家。我們非常希望能夠透過這些方式支持商家，幫助他們復甦並取得成功。

Your next question comes from the line of Jiong Shao with Barclays.

您的下一個問題來自巴克萊銀行的邵炯。

You mentioned you just paid the fine for the anti-monopoly sort of new regulation last year. Last year was a year there were a lot of government regulations that were introduced to the Internet industry. Lately, as you know, some of the senior leaders from the government have made some comments about any further regulation. I was just wondering, could you share with us your latest thoughts about government regulation for the industry for this year? (foreign language)

您提到去年您剛剛為反壟斷新規繳了罰款。去年是政府推出大量網路產業監管法規的一年。最近，正如您所知，一些政府高層領導對進一步的監管措施發表了一些評論。您能否與我們分享您對今年政府產業監管的最新想法？ （外語）

Sorry, Rob, I was not very clear, my bad. My point was that, for example, one of the Vice Premier, Liu He, said about actually some of the regulations last year, many investors were very discouraged by it. Probably government went a bit overboard. I think Liu He mentioned that perhaps Chinese government should wrap up the regulation or any new regulation and move on and let the industry grow as it should. Sorry if I wasn't clear before. (foreign language)

抱歉，Rob，我之前說得不太清楚，是我的錯。我的意思是，比如說，劉鶴副總理談到去年的一些監管規定，許多投資者對此感到非常失望。政府可能有點過了。我記得劉鶴提到，中國政府或許應該結束監管或任何新的監管，繼續推進，讓這個產業正常發展。如果我之前沒說清楚，請見諒。 （外語）

Well, I think we all know that recently, Chinese government and the Chinese leaders, they shared a very clear message to the market that they want the platform economy play an important role in the economic development and encourage the healthy development of platform economy. And I think this is the -- the message is clear. And as part of this platform economy in China, Alibaba is committed to fulfill our responsibilities in terms of helping the development, achieve a better life for the consumers, to help the merchants as well, especially in the technology innovation, I think, in the core areas.

我想大家都知道，最近中國政府和中國領導人向市場傳遞了一個非常明確的訊息，他們希望平台經濟在經濟發展中發揮重要作用，並鼓勵平台經濟健康發展。我認為這是——訊息很明確。作為中國平台經濟的一部分，阿里巴巴致力於履行我們的責任，促進平台經濟的發展，為消費者創造更美好的生活，同時也幫助商家，尤其是在核心領域的技術創新。

So I think this is what we committed. And we will do -- work hard to make substantial progress in all of these aspects. But at the same time, we are closely watching the policy development and to make sure we are fully compliant with all the regulatory requirements. Thank you. (foreign language)

所以我認為這就是我們所承諾的。我們將努力在所有這些方面取得實質進展。但同時，我們也密切關注政策發展，確保我們完全遵守所有監管要求。謝謝。 （外語）

And our next question comes from the line of Alicia Yap with Citigroup.

我們的下一個問題來自花旗集團的 Alicia Yap。

[Interpreted] My question has to do with the cloud segment and the short-term and long-term prospects for the cloud business. Starting with the short term, I'd like to know, apart from the recent impact of the pandemic and the slowdown of the Internet sector as a whole, what other factors are there that may be impacting the cloud business?

[口譯] 我的問題是關於雲端業務以及雲端業務的短期和長期前景。首先從短期來看，除了近期疫情的影響和整個網路產業的成長放緩之外，還有哪些因素可能會影響雲端業務？

And then in the longer term, when the Chinese economy has returned to normalcy, what's your view about how the cloud business will develop? What kind of growth do you expect Alibaba Cloud to achieve? And then finally, recently, we've heard some news about some restructuring and some personnel changes in the cloud space. Could you tell us, please, about the impact that those are likely to have in the short and longer term?

從長遠來看，當中國經濟恢復正常後，您如何看待雲端業務的發展？您預計阿里雲將實現什麼樣的成長？最後，最近我們聽到了一些關於雲端領域重組和人事變動的消息。您能否談談這些調整在短期和長期可能產生的影響？

[Interpreted] Thank you. Well, talking about the performance of the cloud business in the short term, I've already spoken about the factors that led to the slowdown in revenue growth in Alibaba Cloud recently, so I won't repeat here what I already said earlier. But I think when it comes to economic development and the important role that the cloud can play there, the key thing is that all industries are digitalizing and need to digitalize the cloud and big data are an important kind of infrastructure driving that upgrading of industry.

[翻譯] 謝謝。關於雲端業務的短期表現，我已經談到了導致阿里雲近期營收成長放緩的因素，這裡就不再重複了。但我認為，說到經濟發展以及雲端在經濟發展中發揮的重要作用，關鍵在於所有產業都在數位化，都需要數位化，而大數據是推動產業升級的重要基礎設施。

And therefore, all industries present important opportunities for us at Alibaba to serve. And that really represents a huge market opportunity. In fact, as I mentioned in my script earlier, the forecast is for the cloud market in China to reach RMB 1 trillion by 2025. So that potentially means that over the next few years, we have the potential to grow at 2x or 3x kind of multiple. So it's going to be a very big and exciting opportunity.

因此，所有行業都為阿里巴巴提供了重要的服務機會。這確實代表著巨大的市場機會。事實上，正如我之前在演講中提到的，預計到2025年，中國的雲端市場規模將達到1兆元。這意味著，在未來幾年，我們有可能實現2倍甚至3倍的成長。所以，這將是一個巨大而令人興奮的機會。

Secondly, in order to be able to fully capitalize on that opportunity, you need to take an industry-specific approach. Because when we talk about cloud, there are many different definitions out there. The only part of that definition that everybody will agree on is the IaaS layer, which seeks to replace traditional IT infrastructure. But to me, the more important opportunity is beyond that. It's when you start bringing in the big data, AI as well as the ability to digitalize the overall operations of different enterprises and enable all of that through the cloud.

其次，為了充分利用這項機遇，你需要採取針對特定產業的方法。因為當我們談論雲端時，市面上有許多不同的定義。這個定義中唯一大家都認同的部分是IaaS層，它旨在取代傳統的IT基礎設施。但對我來說，更重要的機會遠不止於此。當你開始引入大數據、人工智慧，以及將不同企業的整體營運數位化，並透過雲端來實現所有這些能力時，機會就更大了。

And to do that, this requires an industry or vertical-specific approach with products that are custom-tailored for different applications in different vertical segments. And I think this is very important for the cloud business. And it's imperative that Alibaba be working with these different industries, different verticals, especially the major ones, in depth with SaaS and with our ecosystem partners in order to be able to deliver that value capitalize on all of those opportunities going forward.

要做到這一點，就需要採取針對特定產業或垂直領域的策略，為不同垂直領域的不同應用量身訂做產品。我認為這對雲端業務至關重要。阿里巴巴必須與這些不同的產業、不同的垂直領域，尤其是那些主要的產業，在SaaS領域和我們的生態系統合作夥伴方面進行深入合作，以便能夠在未來利用所有這些機會，創造價值。

Thirdly, apart from that vertical-oriented approach, it's also incumbent upon us, given our market leadership position, to continue to innovate also in the IaaS layer and also the core PaaS layer so that we can continue to reap the dividends of technological innovation through economies of scale. In particular, the IaaS layer is all about economies of scale. So if we can continue to improve the technology and lower the cost, there's a huge advantage that can be effectively reaped there.

第三，除了垂直導向的方法之外，鑑於我們的市場領導地位，我們也有責任在IaaS層和核心PaaS層繼續創新，以便我們能夠透過規模經濟繼續獲得技術創新的紅利。特別是IaaS層，規模經濟至關重要。因此，如果我們能夠持續改進技術並降低成本，就能在這一領域有效獲得巨大的優勢。

And then finally, to address your question about the team upgrade that has been implemented, as you saw last year, in the previous fiscal year, the revenues of Alibaba Cloud, if you include services provided within the group to Alibaba, has already exceeded RMB 100 billion. So it's a very complex system. So looking for ways to make the operations of the cloud business more efficient, and very much in line with what Toby was earlier, looking for ways to drive more cost efficiency and achieve more cost optimization as well as to position ourselves to better provide the next generation of enterprise services to get us from the scale we're at today of RMB 100 billion to a future of RMB 300 billion or even RMB 500 billion, that was the thinking underlying the way we've gone about reorganizing the team.

最後，關於你提到的團隊升級，正如你去年看到的，在上一財年，阿里雲的收入（如果算上集團內部為阿里巴巴提供的服務）已經超過了1000億元人民幣。這是一個非常複雜的系統。因此，我們正在努力提高雲端業務的營運效率，這與Toby先前的想法非常一致，即提高成本效率，實現成本優化，並更好地定位自己，提供下一代企業服務，使我們的規模從現在的1000億元人民幣擴大到未來的3000億元人民幣甚至5000億元人民幣，這就是我們重組團隊的基本思路。

Okay. Thank you, everyone, for participating today. If you have any questions, please reach out to the IR team and myself. And thank you, and we'll see you next quarter. Thank you.

好的。感謝大家今天的參與。如有任何疑問，請聯絡投資者關係團隊和我本人。謝謝大家，我們下個季度再見。謝謝大家。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and you may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與，現在可以掛斷電話了。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]