阿里巴巴 (BABA) 2023 Q4 法說會逐字稿

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

女士們、先生們，大家好。感謝您的支持。歡迎參加阿里巴巴集團2023年3月季及2023財年全年業績電話會議。 （操作員指令）

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

現在我想將電話轉給阿里巴巴集團投資者關係主管 Rob Lin。請繼續。

Thank you. (foreign language)

謝謝。 （外語）

(technical difficulty) Mr. Daniel Zhang, Chairman and CEO; Joe Tsai, Executive Vice Chairman; Toby Xu, Chief Financial Officer. We have also invited Trudy Dai, the CEO of Taobao and Tmall Group; and Jiang Fan, the CEO of Alibaba International Digital Commerce Group. This call is also being webcasted from the IR section of our corporate website. A replay of the call will be available later today.

(技術難題) 董事長兼執行長張勇先生；蔡崇信，執行副主席；徐東升，財務長。我們也邀請了淘寶及天貓集團執行長戴珺婷；以及阿里巴巴國際站執行長蔣凡。本次電話會議也將透過我們公司網站的 IR 部分進行網路直播。今天稍後將提供此通話的重播。

Now let me quickly go over 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 current expectations. For detailed discussion of these risks and uncertainties, please refer to our latest annual report on Form 20-F and our documents filed with the U.S. SEC or announced on the website of Hong Kong Stock Exchange.

現在讓我快速地回顧一下安全港。今天的討論可能包含前瞻性陳述。前瞻性陳述涉及固有風險和不確定性，可能導致實際結果與目前預期有重大差異。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表年度報告以及我們向美國證券交易委員會提交或在香港聯交所網站上公告的文件。

Any forward-looking statements that we make on this call are based on assumption 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今天的假設，我們不承擔更新這些陳述的任何義務，除非適用法律另有要求。

Please note that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margins, adjusted EBITA, adjusted EBITA margin, non-GAAP net income, non-GAAP diluted earnings per share or 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 the earnings press release. Unless otherwise stated, growth rate of all stated metrics during the call refer to year-over-year growth versus the same quarter last year.

請注意，我們在本次電話會議中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 每股或 ADS 攤薄收益和自由現金流均以非 GAAP 基礎表示。我們的 GAAP 結果以及 GAAP 與非 GAAP 指標的對帳可在收益新聞稿中找到。除非另有說明，電話會議中所述所有指標的成長率均為與去年同期相比的年增率。

With that, I will now turn to Daniel.

現在，我將話題轉到丹尼爾身上。

Thank you, Rob. Hello, everyone. Thank you for joining our earnings call today. We closed the March quarter and fiscal year 2023 in a changing and macro environment. As COVID-19 cases waned after the Chinese New Year, business and social activities gradually recovered in China. These changes had impacted some of our businesses in various degrees.

謝謝你，羅布。大家好。感謝您參加我們今天的財報電話會議。我們在不斷變化和宏觀的環境中結束了 3 月季度和 2023 財年。春節過後，隨著疫情情勢好轉，國內商業和社會活動逐漸恢復。這些變化不同程度地影響了我們的一些業務。

During the past quarter, our revenue reached RMB 208.2 billion, represents a year-over-year growth of 2%. Our adjusted EBITA was approximately RMB 25.3 billion, representing a year-over-year growth of 60% as a result of our continued efforts in enhancing operating efficiency and optimizing costs.

過去一個季度，我們的營收達到人民幣2,082億元，年增2%。我們的調整後EBITA約為人民幣253億元，年增60%，這得益於我們持續努力提高營運效率和優化成本。

Looking at the macro environment in China and globally, we see both challenges and opportunities amid uncertainties for an economic recovery. The international macro environment is highly uncertain. At the same time, we see market opportunities in China's consumption recovery post the pandemic and rapid development of -- in artificial intelligence. We will continue to execute our 3 core strategies in consumption, cloud computing and globalization in response to these opportunities.

綜觀中國和世界宏觀環境，經濟復甦既面臨挑戰，也面臨機遇，但不確定性依然存在。國際宏觀環境不確定性較大。同時，我們看到疫情後中國消費復甦和人工智慧快速發展的市場機會。面對這些機遇，我們將持續堅定地實施消費、雲端運算、全球化三大核心策略。

In the past few months, we have noticed a gradual recovery in China consumption, but consumer confidence and spending power still need further momentum. At the same time, competition among the multiple consumption platforms is still fierce and everyone is trying to capture incremental demand with more value-for-money products and services. We will focus on the following areas in such a competitive market. Number one, acquisition and retention of high-quality users; number two, maintaining our platform's differentiated consumer mindset; and number three, most importantly, creation of new demand through supply-side innovations.

過去幾個月，我們注意到中國消費正在逐步復甦，但消費者信心和消費能力仍需要進一步增強。同時，各消費平台之間的競爭也依然激烈，大家都在嘗試以更物有所值的產品和服務來抓住增量需求。在如此競爭激烈的市場中，我們將重點放在以下領域。第一，取得並留住優質用戶；第二，維持我們平台差異化的消費者心態；第三，最重要的是透過供給面創新創造新需求。

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

在國際商務方面，我們將著力打造核心能力，支撐集團國際商務業務的永續發展，發揮中國供應鏈的獨特優勢，服務全球消費者。

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

在雲端運算方面，產業數位化的進步以及人工智慧的出現對算力提出了更高的要求。這些基礎模型拓展了人工智慧在生活各個方面的應用。阿里雲將專注於抓住這些歷史機遇，最大程度地發揮其市場潛力。

In March, we announced a major organizational transformation, restructuring Alibaba Group into 6 business groups and other investments. As a result, we are transforming from operating multiple group business into a holding company that focus on capital management. Each business group will operate with a high degree of independence led by its own CEO, who assumes full responsibility for company's performance under the supervision by its own Board. Today in our press release, we also announced the list of the Board of Directors and CEOs of these 6 business groups, which was recommended by Alibaba Partnership and approved by our Board of Directors.

今年3月，我們宣布了重大組織變革，將阿里巴巴集團重組為6個業務集團以及其他投資。因此，我們正在從經營多項集團業務轉型為專注於資本管理的控股公司。每個業務集團將高度獨立地運作，由各自的執行長領導，並在各自董事會的監督下對公司的業績承擔全部責任。今天我們在記者會上也公佈了這6個事業群的董事會和CEO名單，這個名單是由阿里巴巴合夥人推薦的，經過我們董事會的批准。

We believe this transformation will empower all our business to become more agile, enhance decision-making, enable faster responses to market changes and promote innovation to capture opportunities, thereby unlocking shareholder value.

我們相信，這項轉型將使我們所有業務變得更加靈活，增強決策能力，能夠更快地回應市場變化，並促進創新以抓住機遇，從而釋放股東價值。

Starting from today, we will invite the business group CEOs to join the earnings calls in turn and share their business strategies and the thinking behind. At today's call, we have Trudy Dai and Jiang Fan, who will later discuss about the business performance and the strategies of Taobao-Tmall Commerce Group and International Digital Commerce Group, respectively. I will also share my thoughts on Cloud Intelligence Group's business review and outlook.

從今天開始，我們會輪流邀請各業務集團CEO參加財報電話會議，分享他們的業務策略和背後的思考。今天的電話會議，我們邀請到了戴萌和蔣凡，他們稍後將分別討論淘寶天貓商務事業部和國際數位商務事業部的業務表現和策略。我也會分享我對雲端智慧集團業務回顧和展望的看法。

As an important step in our organization-- reorganization, we are in the process of establishing a new governance framework under the “1+6+N” structure. Under the new governance framework, CEO of the business group takes overall responsibility for the operating results and compliance under the leadership of the business group's Board. A list of reserved matters will be specified to require approvals from Alibaba Group's Board of Directors. These reserved matters include annual business plan and budget, business group CEO appointment and evaluation, major capital transactions, business cooperation and data sharing mechanism within Alibaba Group, compliance oversight, et cetera.

作為組織變革的重要一步，我們正在建立「1+6+N」架構下的全新治理架構。在新的治理架構下，業務集團執行長在業務集團董事會的領導下，對經營績效和合規性負全面責任。將列出需要阿里巴巴集團董事會批准的保留事項清單。這些保留事項包括年度業務計畫及預算、事業群CEO任命及評估、重大資本交易、阿里巴巴集團內部業務合作及資料共享機制、合規監督等。

To ensure the implementation of risk management and compliance requirements under the new governance structure, we have obtained Board approval to establish a new Compliance and Risk Committee, which will be responsible for overseeing the group's compliance and risk management in areas other than financial reporting. In addition, in order to adapt to our new role as a holding company, we have also established also a Capital Management Committee under Alibaba Group's Board of Directors. With the goal of enhancing shareholder return of the group, the committee oversees major capital management matters across our business groups.

為確保在新的治理架構下落實風險管理與合規要求，我們已獲得董事會批准成立新的合規與風險委員會，負責監督集團除財務報告以外領域的合規與風險管理。此外，為了適應控股公司的新角色，我們也在阿里巴巴集團董事會下設立了資本管理委員會。該委員會以提高集團股東回報為目標，負責監督我們各業務集團的主要資本管理事宜。

With the further progress of the restructuring plan, we have formulated different capital management plans based on the various stage of development, business needs, market environment and risks that each group -- each business group is facing. We are announcing several updates today. Firstly, we plan to fully spin off Cloud Intelligence Group and complete its public listing in the next 12 months as an independent company. Cloud Intelligence’s business model, customer profile and the stage of development are fundamentally different from the other consumer-focused business in Alibaba ecosystem. Full independence will allow Cloud Intelligence to further sharpen its business strategy and optimize its operations and organization.

隨著重組計畫的進一步推進，我們根據各集團不同的發展階段、業務需求、市場環境和麵臨的風險，制定了不同的資本管理計畫。今天我們宣布幾項更新。首先，我們計劃在未來12個月內全面分拆雲端智慧集團，並作為獨立公司完成上市。雲端智慧的商業模式、客戶特徵和發展階段與阿里巴巴生態中其他以消費者為中心的業務有著根本的不同。完全獨立將使雲端智慧進一步完善其業務策略並優化其營運和組織。

Secondly, Freshippo and Cainiao have, over the years, established differentiated customer value propositions, stable and well-defined business models and a clear path to profitability. We believe these 2 companies are ready to go public. Our Board has approved Freshippo's plan to kick off the IPO process and Cainiao to explore an IPO in the next 12 to 18 months.

其次，盒馬和菜鳥多年來建立了差異化的客戶價值主張、穩定明確的商業模式和清晰的獲利路徑。我們相信這兩家公司已經做好上市的準備。我們的董事會已批准盒馬啟動 IPO 流程的計劃以及菜鳥在未來 12 至 18 個月內探索 IPO 的計劃。

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

第三，阿里巴巴國際站將探討募集外部資本，支持全球市場的業務拓展。上述交易的成功實施受到市場環境、監管部門批准等多種因素的影響。

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

接下來我將交給托比來討論過去一個季度和整個財年的財務表現以及我們的資本配置策略。

Thank you, Daniel. As announced, our Alibaba Group have formed the Capital Management Committee to undertake a comprehensive capital management plan to enhance shareholder value. During the reorganization process, we will work closely with this newly formed committee to explore and execute all options that could unlock value for Alibaba Group. Under leadership of the Capital Management Committee, we are committed to improve shareholders' return and execute a robust capital allocation framework as a holding company that focus on 3 priorities.

謝謝你，丹尼爾。正如我們所宣布的那樣，阿里巴巴集團已經成立資本管理委員會，以實施全面的資本管理計劃，以提高股東價值。在重組過程中，我們將與新成立的委員會密切合作，探索和執行所有可以為阿里巴巴集團釋放價值的選項。在資本管理委員會的領導下，我們致力於提高股東回報，並作為一家控股公司執行強勁的資本配置框架，專注於三大重點。

First, the strength of our balance sheet and our cash position is a competitive advantage in an uncertain environment. While we maintain a prudent approach to our capital structure, we'll be focused on improving return on invested capital in managing the assets of the company. Second, we will design, review and implement EPS-accretive activities, including consistent share buybacks to reduce our outstanding share count, while maintaining discipline in managing our ESOP programs. Third, we will explore all options to enhance shareholders' return by achieving more transparency in the value of our assets and returning capital to shareholders, including subsidiary fundraising, IPOs and spin-offs.

首先，我們資產負債表和現金狀況的強勁是我們在一個不確定的環境中競爭的優勢。在我們對資本結構保持審慎態度的同時，我們將專注於提高公司資產管理的投資報酬率。其次，我們將設計、審查和實施每股盈餘增值活動，包括持續回購股票以減少我們的流通股數量，同時保持對員工持股計畫管理的紀律。第三，我們將探討一切提高股東回報的選項，包括透過提高資產價值的透明度和向股東返還資本，包括子公司融資、IPO和分拆。

Let me share with you in details the actions we will take, and we will be taking following today's announcement. Going forward, our main source of funds will be from Taobao and Tmall Business Group, which will continue to be our core holding and 100% owned. The Taobao and Tmall Business Group generates substantial annual free cash flow, which will be made available to the Alibaba Group. In fiscal year 2023, we generated USD 25 billion in free cash flow that was mainly contributed by this business, and we believe it will continue to generate strong free cash flow in the future.

讓我詳細地向你們分享我們將要採取的行動以及我們在今天的公告之後將採取的行動。未來我們的主要資金來源還是淘寶和天貓商業集團，淘寶和天貓商業集團仍是我們的核心控股，並且是我們的100%控股。淘寶和天貓商業集團每年產生大量自由現金流，這些自由現金流將提供給阿里巴巴集團。 2023財年，我們產生的250億美元自由現金流主要由該業務貢獻，我們相信未來它還將繼續產生強勁的自由現金流。

In the future, as a result of the reorganization, our additional source of funds will come from monetization of our consolidated businesses. As Daniel mentioned, our Board has approved the following transactions as initial phase of our capital management planning. First, for Alibaba International Digital Commerce Business Group, or AIDC, we are confident of its opportunities and growth prospect, and we plan to start its external financing process. The capital raise will assist the business group to expand into new geographic markets, invest in new technologies, grow its consumer and supplier base, strengthen its management team and develop and enhance its products and services to its customers globally.

未來，由於重組，我們的額外資金來源將來自於合併業務的貨幣化。正如丹尼爾所提到的，我們的董事會已批准以下交易作為我們資本管理規劃的初始階段。首先，對於阿里巴巴國際數位商務事業群（AIDC），我們對其機會和成長前景充滿信心，並計劃啟動其外部融資流程。此次融資將有助於該企業集團拓展新的地理市場、投資新技術、擴大消費者和供應商基礎、加強管理團隊，並為全球客戶開發和增強產品和服務。

Second, we are starting a process to explore an IPO of Cainiao Smart Logistics Group. The group provides supply chain, logistics and delivery services to customers and merchants that are customers of Taobao and Tmall Business Group and AIDC as well as third-party customers. Alibaba Group holds a 67% equity interest in the company. We target to complete IPO in the next 12 to 18 months.

第二，我們正在啟動菜鳥智慧物流集團上市的探索。集團為淘寶、天貓商業集團及漢能集團的客戶及商家以及第三方客戶提供供應鏈、物流及配送服務。阿里巴巴集團持有該公司67%的股權。我們的目標是在未來12到18個月內完成IPO。

Third, we are starting a process to execute an IPO of Freshippo, our new retail business, and we expect the IPO will be completed in the next 6 to 12 months.

第三，我們正在啟動盒馬新零售業務的IPO程序，預計未來6到12個月內完成。

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

重要的是，除淘寶和天貓商業集團外，這些業務和其他子公司都有一段有限的時間來評估阿里巴巴集團的資本，包括基於市場條款的股權注入和/或信貸融資。此後，每個企業都應該擁有自己獨立的融資能力，包括籌集私募股權、發行債務和/或上市。我們相信該等交易的成功完成將進一步優化我們的資本結構、加強我們的現金狀況，並可用於股東回報。

Second, we are committed to execute EPS-accretive activities that improve shareholders' return. During fiscal year 2023, we repurchased 129.9 million of our ADSs for approximately USD 10.9 billion in our share repurchase program, which represented approximately 44% of our free cash flow. From April 1 to May 17, we have repurchased another USD 2.3 billion in ADSs. Currently, we still have an unutilized amount of approximately USD 17.1 billion under the share repurchase program that we'll continue to execute.

其次，我們致力於執行每股收益增值活動，以提高股東回報。在 2023 財年，我們在股票回購計畫中回購了 1.299 億股 ADS，價值約 109 億美元，約占我們自由現金流的 44%。從4月1日至5月17日，我們又回購了23億美元的ADS。目前，我們的股票回購計畫下仍有約 171 億美元未使用，我們將繼續執行。

Under reorganization, each business group will have their own ESOP program that aligns the interest of their management and employees to their business performance and equity value creation. This, in turn, means less ESOP in issuance at HoldCo level in the future. Additionally, as long as the business groups remain majorly owned by Alibaba Group, the Capital Management Committee will review their proposed annual ESOP plans with the objective of balancing between the potential dilution to Alibaba Group's shareholders and providing an attractive level of incentives for business groups to attract and retain talents.

在重組下，每個業務集團將擁有自己的ESOP計劃，以將管理層和員工的利益與業務績效和股權價值創造相結合。這反過來意味著未來 HoldCo 層級發行的員工持股計畫 (ESOP) 將會減少。此外，只要業務集團的主要股權仍由阿里巴巴集團持有，資本管理委員會就會審查其擬議的年度員工持股計劃，以在阿里巴巴集團股東權益的潛在稀釋與為業務集團吸引和留住人才提供有吸引力的激勵措施之間取得平衡。

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

最後，正如所宣布的那樣，我們的董事會批准透過向股東分配股票紅利的方式全面分拆雲智慧集團。在分拆之前，我們計劃透過私募融資的方式，引進外部策略投資者加入雲端智慧集團。結合此次分拆，雲端智慧集團意圖成為獨立的上市公司。此次分拆將取決於某些資產、負債和合約的重組、員工股權激勵計畫的實施、市場條件以及相關司法管轄區的監管審查和批准。

We intend to structure the spin-off in the most tax-efficient way for our shareholders. Subject to the transaction, conditions and approvals described above, we target to complete the spin-off in the next 12 months. We believe the successful execution of this plan will further unlock value for Alibaba's shareholders in the future.

我們打算以對股東而言最具稅收效率的方式建構分拆。根據上述交易、條件及批准，我們的目標是在未來 12 個月內完成分拆。我們相信該計劃的成功實施將在未來進一步為阿里巴巴股東釋放價值。

Now let me provide a brief review of our financials during the March 2023 quarter. For the quarter ended March 31, 2023, total revenue was RMB 208.2 billion, an increase of 2% that was primarily driven by the revenue growth of International commerce segment by 29% to RMB 18.5 billion, Cainiao segment by 18% to RMB 13.6 billion and Local consumer services segment by 17% to RMB 12.5 billion.

現在，讓我簡單回顧一下我們 2023 年 3 月季度的財務狀況。截至2023年3月31日的季度，總收入為人民幣2082億元，增長2%，主要由於國際商業分部收入增長29%至人民幣185億元，菜鳥分部收入增長18%至人民幣136億元，本地生活服務分部收入增長17%至人民幣125億元。

Adjusted EBITA increased by RMB 9.5 billion to RMB 25.3 billion year-over-year in the quarter. The increase was primarily due to an increase in China commerce adjusted EBITA as well as narrowed adjusted EBITA losses of Local consumer services and Digital media and entertainment. Overall, adjusted EBITA margin improved by 4 percentage points year-over-year to 12%.

本季調整後EBITA較去年同期增加95億元，至253億元。成長主要由於中國商務調整後 EBITA 增加以及本地消費者服務和數位媒體及娛樂調整後 EBITA 損失縮小。整體而言，調整後的 EBITA 利潤率年增 4 個百分點，達到 12%。

Now let's look at cost trends as a percentage of revenue, excluding SBC. Cost of revenue ratio, excluding SBC, decreased 2 percentage points to 66% in the quarter ended March 31, primarily due to decrease in cost of revenue from direct sales. Product development expenses ratio decreased 1 percentage point during the quarter. Sales and marketing expenses ratio decreased 1 percentage point year-over-year to 12% in March quarter, reflecting our continued efforts in optimizing user acquisition and user retention spending across businesses.

現在讓我們來看看成本趨勢佔收入的百分比（不包括 SBC）。不包括 SBC 的營收成本比率在截至 3 月 31 日的季度中下降了 2 個百分點至 66%，這主要是由於直接銷售營收成本的下降。本季產品開發費用率下降了1個百分點。 3 月季度銷售和行銷費用率年減 1 個百分點至 12%，這反映了我們在優化各項業務的用戶獲取和用戶保留支出方面所做的持續努力。

General and administrative expenses ratio remained stable at 5% in March quarter.

3 月季度一般及行政開支比率維持穩定在 5%。

Our GAAP net income was RMB 22 billion, an increase of RMB 40.4 billion year-over-year, primarily due to net gains arising from increases in the market prices of our equity investments in publicly traded companies compared to net losses from these investments in the same quarter last year, partly offset by the decrease in share of profit of equity method investees, the increase in impairment of investments and the decrease in income from operations.

以美國通用會計準則計算，我們的淨利潤為人民幣 220 億元，比去年同期增加人民幣 404 億元，主要由於我們對上市公司的股權投資的市場價格上升而產生的淨收益，而去年同期這些投資則產生淨虧損，但被權益法核算的被投資公司利潤份額減少、投資減值以及利潤的減少部分增加利潤。

As of March 31, 2023, we continued to maintain a strong net cash position of RMB 399 billion or USD 58 billion. As mentioned, during fiscal year 2023, our strong net cash position was supported by healthy free cash flow generation of RMB 172 billion, USD 25 billion. In addition, we have been disciplined in investments. For the fiscal year ended March 31, 2023, our net cash used in investment and acquisition activities was RMB 840 million compared to RMB 37 billion in the same quarter last year.

截至2023年3月31日，我們持續維持強勁的淨現金狀況，達人民幣3,990億元或580億美元。如上所述，在 2023 財年，我們強勁的淨現金狀況得益於健康的自由現金流，即 1,720 億元人民幣（250 億美元）。此外，我們在投資方面也非常嚴謹。截至2023年3月31日的財年，我們用於投資和收購活動的淨現金為人民幣8.4億元，去年同期為人民幣370億元。

Now let's look at segment results. Revenue from our China commerce segment in March quarter was RMB 136 billion, a decrease of 3% year-over-year. For the quarter ended March 31, 2023, online physical goods GMV on Taobao and Tmall, excluding unpaid orders, declined mid-single digit year-over-year. Customer management revenue decreased by 5% year-over-year to RMB 60.3 billion. The gap between CMR and GMV on Taobao and Tmall has been narrowing. Direct sales and others revenue declined 1% to RMB 71.8 billion, mainly due to decrease in off-line store sales.

現在我們來看看細分結果。我們 3 月季度中國商業部門的營收為 1,360 億元，年減 3%。截至 2023 年 3 月 31 日的季度，淘寶和天貓的線上實體商品 GMV（不包括未付款訂單）同比下降了中個位數。客戶管理收入較去年同期下降5%至人民幣603億元。淘寶和天貓的CMR與GMV之間的差距正在不斷縮小。直銷及其他收入下降1%至人民幣718億元，主要由於線下門市銷售額下降。

China commerce segment adjusted EBITA increased by RMB 6.3 billion to RMB 38.5 billion in March quarter. Segment EBITA margin increased from 23% in March 2022 quarter to 28%. This reflected significant loss reductions from Taobao Deals and Taocaicai and Freshippo, partly offset by a decrease in profit from customer management revenues.

3月份季度中國商業部門調整後EBITA增加63億元人民幣，至385億元。分部 EBITA 利潤率從 2022 年 3 月季度的 23% 上升至 28%。這反映了淘寶特價版、淘菜和盒馬鮮生的虧損大幅減少，但部分被客戶管理收入利潤的減少所抵消。

Our International commerce segment revenue in March quarter was RMB 18.5 billion, an increase of 29% year-over-year. Revenue from International commerce retail business increased by 41% to RMB 14 billion. The increase was primarily driven by business growth acceleration of all our major businesses, including AliExpress, Lazada and Trendyol.

我們 3 月季度的國際商務部門營收為 185 億元，年增 29%。國際商業零售業務收入成長41%至人民幣140億元。成長主要得益於我們所有主要業務（包括 AliExpress、Lazada 和 Trendyol）的業務成長加速。

International commerce segment adjusted EBITA loss narrowed by RMB 233 million to RMB 2.3 billion in March quarter. The loss reduction year-over-year was primarily contributed by the reduced losses from Trendyol, partly offset by the increased losses from Lazada. The increased losses from Lazada was primarily due to a one-off early termination expense in connection with renegotiation new service contracts to reduce future operating costs. Excluding this one-off effect, the adjusted EBITA loss of International commerce segment will be less than RMB 1.5 billion.

3月季度國際商務部門調整後EBITA虧損收窄2.33億元至23億元。虧損年減主要由於 Trendyol 虧損減少，但 Lazada 虧損增加部分抵消了這種影響。 Lazada 虧損增加主要是因為為降低未來營運成本而重新談判新服務合約而產生的一次性提前終止費用。剔除此一次性影響，國際商務分部調整後EBITA虧損將少於人民幣15億元。

Our Local consumer service segment revenue in March quarter grew 17% to RMB 12.5 billion, primarily due to positive GMV growth of Ele.me, driven by order growth and higher average order value.

我們 3 月本地生活服務部門營收成長 17%，至人民幣 125 億元，主要由於餓了麼 GMV 成長，這得益於訂單成長和平均訂單價值上升。

Local consumer service adjusted EBITA loss reduced by RMB 1.4 billion year-over-year to RMB 4.2 billion. Most of the loss reduction was driven by Ele.me business, while other major business within the segment also recorded losses. Ele.me continued to improve its unit economics per order by increased average order value and reduced delivery cost per order. Its UE continued to improve year-over-year and remained positive this quarter.

本地消費服務調整後EBITA虧損年減14億元至42億元。虧損減少主要是因為餓了麼業務推動，而該部門內的其他主要業務也出現虧損。餓了麼透過提高平均訂單價值和降低每筆訂單的配送成本，繼續提高每筆訂單的單位經濟效益。其UE年比持續改善，本季仍保持正成長。

Revenue from Cainiao, after inter-segment elimination, grew 18% year-over-year to RMB 13.6 billion, primarily contributed by the increase in revenue per order from international fulfillment solution services as well as increasing demand for customer logistics. In March quarter, 72% of Cainiao's total revenue was generated from external customers. Cainiao recorded adjusted EBITA loss of RMB 319 million in March quarter. Loss reduced by RMB 593 million year-over-year.

扣除分部間抵銷後，菜鳥業務收入年增18%至人民幣136億元，主要由於國際履行解決方案服務每筆訂單收入的增加以及客戶物流需求的增加。 3月季度，菜鳥總收入的72%來自外部客戶。菜鳥3月季度調整後EBITA虧損3.19億元。虧損較上年減少5.93億元。

Revenue from our Cloud segment, after inter-segment elimination, was RMB 18.6 billion in March quarter, a decline of 2%. The year-over-year decrease in revenue of our Cloud segment reflected delays in delivery of hybrid cloud projects given COVID-19 resurgence in January and normalization of CDM demand compared to same period last year. Adjusted EBITA of Cloud segment was a profit of RMB 385 million in March quarter, increased by RMB 109 million year-over-year.

經分部間抵銷後，我們雲端業務部門的營收在 3 月季度為 186 億元，下降 2%。我們雲端運算部門的營收年減反映了由於 1 月 COVID-19 疫情復發以及與去年同期相比 CDM 需求正常化導致混合雲專案交付延遲。雲端業務部門3月季度調整後EBITA獲利3.85億元，較去年同期增加1.09億元。

Revenue from our Digital media and entertainment segment in March quarter was RMB 8.3 billion, an increase of 3%. Adjusted EBITA was a loss of RMB 1.1 billion, reduced by RMB 864 million year-over-year, primarily due to the narrowing of losses from Youku, driven by disciplined investment in content and production capability.

3月季度，我們數位媒體和娛樂部門的營收為人民幣83億元，成長3%。調整後EBITA虧損為人民幣11億元，較上年減少人民幣8.64億元，主要由於優良的虧損收窄，這得益於對內容和製作能力的嚴格投資。

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

現在請Trudy為您講述淘寶和天貓商業集團。

[Interpreted] Thank you, Toby. This is Trudy, and it's a great pleasure for me to have the opportunity to speak with you all today. In this new year, we've all seen positive momentum in China's economy with 4.5% year-on-year growth recorded in first quarter GDP and a moderate recovery in consumption. From our perspective, what we saw following the recurrence in COVID in January and the spring festival travel season, following that, was that from February through to April, we achieved year-on-year positive growth in users and GMV on the Taobao app and EBITA has been good as well.

[翻譯] 謝謝你，托比。我是特魯迪，我很高興今天有機會與大家交談。新的一年，中國經濟持續呈現向好態勢，第一季國內生產毛額年增4.5%，消費溫和回升。從我們的角度來看，隨著1月份新冠肺炎疫情的復發和隨後的春節旅遊旺季，從2月到4月，淘寶應用程式的用戶和GMV同比均實現了正增長，EBITA也表現良好。

Apart from those macro factors, an important part of that has been the payoff from our efforts around cost optimization and efficiency improvement as well as the 5 battles that we're fighting. Also, we see many positive factors going forward, although in the e-commerce sector, the demographic dividend is waning and this intensified competition, nonetheless, many new opportunities are being created by growing consumer demand for more diversified offerings and also by technological advances.

除了這些宏觀因素之外，其中一個重要部分是我們在成本優化和效率提高以及我們正在進行的五場戰鬥方面所做的努力所取得的回報。此外，我們看到未來的許多積極因素，儘管在電子商務領域，人口紅利正在減弱，競爭加劇，但消費者對更多樣化產品的需求不斷增長以及技術進步也創造了許多新的機會。

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

因此，在新的財年，我們調整了策略，制定了新的發展計劃，並正在實施中。我相信，這些措施將使我們能夠借助經濟復甦和消費，抓住市場發展和技術進步創造的機遇，進一步鞏固我們在消費者和商家中的領先市場地位，並取得令人興奮的新突破和用戶體驗。

First, based on our trialing of new interactive formats and content over the past 2 years, we're even more certain that beyond shopping, consumers want to find a broader range of more diverse content on Taobao, including shopping-related encyclopedic knowledge, lifestyle recommendations and even interactive entertainment. And this is corroborated by the hundreds of millions of long-tail keyword searches made by users every day.

首先，基於我們過去兩年對新互動形式和內容的不斷嘗試，我們更加確定，除了購物之外，消費者還希望在淘寶上找到更加廣泛、更加多樣化的內容，包括與購物相關的百科知識、生活方式推薦，甚至互動娛樂。用戶每天進行的數億次長尾關鍵字搜尋也證實了這一點。

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

所以未來幾年，淘寶會進行大規模、持續的投入，滿足用戶生活各個層面的多元需求。這將包括進一步豐富和多樣化商品組合、創造更豐富和更具差異化的內容以及引入新的互動娛樂場景的投資。在加速成長用戶規模和用戶使用時長、鞏固中國最廣泛使用網路交易平台地位的同時，淘寶將逐步升級為一站式消費及生活平台。

Second, we will build a prosperous ecosystem by making the supply side more open and inclusive and also with organizational upgrades that we've made. For example, we've established an SME development center that's devoted to supporting start-ups and small and medium-sized merchants, and helping them contribute more diversified supplies on the platform. Our grocery store business development center works to enable users to buy fresh foods on Taobao faster and with greater savings. And our live streaming and content teams will provide strong support to content creators. Additionally, we will be leveraging technological advancements to make operating costs lower for merchants.

第二，透過供給面更加開放、包容，以及組織升級，建構繁榮的生態。例如我們成立了中小企業發展中心，致力於扶持新創企業和中小商戶，幫助他們在平台上提供更多元的供給。我們的雜貨店業務發展中心致力於讓使用者在淘寶上更快、更節省地購買新鮮食品。我們的直播和內容團隊將為內容創作者提供強而有力的支持。此外，我們將利用技術進步來降低商家的營運成本。

Third, leveraging advances in AI and other technologies. The Taobao app will be upgraded to meet a much broader range of user needs. So going forward, we'll be more focused on investing in technology for Taobao, building on the whole group's technology and data capabilities. We will upgrade existing merchant tools and create new tools for merchants as well as new lifestyle scenarios for users offering in the next-generation paradigm end-user experience. So in summary, our strategy is putting users first, building a prosperous ecosystem and realizing technology-driven innovation. And our core goal is for Taobao to continue to be the #1 consumption platform serving the largest number of users, while upgrading the platform to serve a broader range of needs.

第三，利用人工智慧等技術的進步。淘寶APP將進行全面升級，滿足更廣泛的使用者需求。所以未來我們會更重視對淘寶的技術投入，建構整個集團的技術和數據能力。我們將升級現有的商家工具，並為商家創建新的工具，並為用戶提供新的生活方式場景，提供下一代範式最終用戶體驗。所以總結一下，我們的策略就是使用者至上，建構繁榮的生態，實現科技驅動的創新。我們的核心目標是讓淘寶繼續成為服務最多用戶的第一個消費平台，同時升級平台以滿足更廣泛的需求。

Undoubtedly, that means that over the coming 1 to 2 years, we'll be reducing merchants operating costs and increasing our investments in users, merchants technology, providing good merchandise, good content and a good experience as well as good service to our users. I trust that with our strong momentum of growth as well as the network and scale effects that we bring, coupled with our new approaches, we'll certainly maximize value for merchants. That means that we'll continue to lead in terms of merchant scale as the #1 place to do business.

毫無疑問，這意味著在未來1到2年內，我們將降低商家的營運成本，增加對用戶、商家技術的投資，為我們的用戶提供好的商品、好的內容、好的體驗以及好的服務。我相信，憑藉我們強勁的成長動能以及我們帶來的網路和規模效應，再加上我們的新方法，我們一定能夠為商家實現價值最大化。這意味著我們將繼續在商家規模上保持領先地位，成為第一的經商地點。

On that basis, we clearly foresee platform ROI growth in the mid- to long term. And of this, I'm fully confident. So over a 3-year horizon, I will be making resolute, sustained and major investments to realize the above 3 strategies and achieve sustained growth in users.

在此基礎上，我們清楚地預見了中長期平台投資報酬率的成長。對此，我充滿信心。因此，在未來3年內，我將堅定、持續、大力投入，實現上述3大策略，實現用戶的持續成長。

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

非常感謝。現在我將發言權交給蔣凡。

[Interpreted] Thank you very much. This is Jiang Fan, and it's a great pleasure to be able to speak with you during this earnings call. As part of the recent restructuring, we've established the Alibaba International Digital Commerce, or AIDC Group, which includes various business models and operates in different countries. In the B2C retail sector, we have a portfolio of digital retail platforms with a local commerce model, including Trendyol, Daraz and Lazada. Additionally, we operate several cross-border B2C platforms, including AliExpress and Tmall-Taobao World. We also have Alibaba.com, which is a global B2B trade platform serving the wholesale sector.

[翻譯] 非常感謝。我是蔣凡，很高興能夠在本次財報電話會議上與您交談。作為最近重組的一部分，我們成立了阿里巴巴國際數位商務集團（AIDC集團），該集團包括多種商業模式並在不同國家開展業務。在B2C零售領域，我們擁有一系列採用在地商業模式的數位零售平台，包括Trendyol、Daraz和Lazada。此外，我們也經營多個跨國B2C平台，包括AliExpress和天貓淘寶世界。我們還有阿里巴巴，這是一個服務批發業的全球B2B貿易平台。

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

過去一個季度，國際商務領域表現出快速的成長動能。 AliExpress 正式推出了一項名為 Choice 的新服務。它是基於 AliExpress 模型實現。為消費者提供物超所值的產品選擇及更優質的服務，進一步提升消費者體驗。 AliExpress整體保持快速成長。

Following the earthquake in Turkey in early February 2023, Trendyol and Alibaba Group actively provided relief support. Although our business in Turkey was affected in the short term, it quickly recovered and achieved strong growth, with the number of orders increasing by over 27% year-over-year.

2023年2月初土耳其發生地震後，Trendyol與阿里巴巴集團積極提供救災支援。我們在土耳其的業務雖然短期受到了影響，但很快恢復並實現強勁增長，訂單數量同比增長超過27%。

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

在東南亞，Lazada貨幣化率持續提升，在業務規模成長與營運效率提升之間取得了良好的平衡。總體而言，在經歷了充滿挑戰的一年後，我們的國際商務業務已經復甦並重回成長軌道。

Looking ahead, we'll continue to invest in the cross-border plus Local commerce model in our B2C retail sector. There's still significant potential to grow our cross-border business. With the launch of the Choice service, AliExpress' user experience has significantly improved as we expect that the business will continue to grow rapidly. In the Local commerce business, we'll continue to invest in the Southeast Asian market while actively seeking opportunities in other new regional markets.

展望未來，我們將持續投資B2C零售領域的跨國加本地商業模式。我們的跨境業務仍具有巨大的成長潛力。隨著 Choice 服務的推出，AliExpress 的用戶體驗得到了顯著改善，我們預計業務將繼續快速成長。在本地商業業務方面，我們將繼續投資東南亞市場，同時積極尋找其他新區域市場的機會。

In the B2B wholesale sector, we've made many upgrades to our existing models, expanding from transaction services to other value-added services such as finance, logistics and digital SaaS services. We believe this will enable our wholesale business to maintain healthy growth in the coming several years. Additionally, we will also actively expand our B2B business model into other markets.

在B2B批發領域，我們對現有的模式進行了許多升級，從交易服務擴展到金融、物流和數位SaaS服務等其他加值服務。我們相信這將使我們的批發業務在未來幾年保持健康成長。此外，我們也將積極將我們的B2B業務模式擴展到其他市場。

Next, I will hand over to Daniel to present to you on the Cloud business. Thank you very much.

接下來，我將交給 Daniel 來為大家介紹雲端業務。非常感謝。

Some updates about our cloud computing business. In the last -- in the past quarter, our Cloud revenue decreased by 2% year-over-year. This is partially due to our proactive move to adjust our revenue structure and focus on high-quality growth, and also a result of external change in market environment as customer composition. The external factors include the impact from a top customer phasing out using our cloud service and switching to self-build infrastructure for its international business.

有關我們的雲端運算業務的一些更新。上個季度，我們的雲端營收年減了 2%。這一方面是由於我們主動調整收入結構、注重高品質成長，另一方面也是客戶結構等外部市場環境變化的結果。外部因素包括一家頂級客戶逐步停止使用我們的雲端服務並轉向自建基礎設施來開展其國際業務的影響。

Post revenue contribution to Alibaba Cloud decreased 41% year-over-year. In addition, the resurgence of pandemic in China in January also impacted public cloud consumption and the delayed delivery of certain hybrid cloud projects during the quarter. As the pandemic eased off and remote working and school activities decreased in February and March, demands for services such as CDN also decreased quite significantly.

阿里雲郵政收入貢獻年減41%。此外，1月中國疫情復發也影響了本季公有雲消費和部分混合雲專案的延遲交付。隨著2月和3月疫情的緩解，遠距辦公和學校活動的減少，對CDN等服務的需求也明顯下降。

If we zoom out from the short-term fluctuations in Cloud revenues and look back at AliCloud's development over the past 14 years and cloud's vast future with the rapid development of AI, we see massive market potential and remain confident at cloud's future. We got to where we are today because AliCloud seized 2 historical opportunities. Number one, rapid development of China's mobile Internet; and number two, digital transformation of traditional industries.

如果我們拋開雲端運算短期收入波動的眼光，回顧阿里雲14年的發展歷程，以及在人工智慧快速發展背景下雲端運算的廣闊前景，我們看到巨大的市場潛力，對雲端運算的未來充滿信心。我們能有今天的成就，是因為阿里雲抓住了兩個歷史機會。第一，中國行動互聯網快速發展；第二，傳統產業的數位轉型。

With its industry-leading technology and products, AliCloud established its market leadership in China and globally by supporting the growth of many digital native enterprises and the digitization of many industry customers. Today, the age of AI brings 2 new historic opportunities to AliCloud. Firstly, the emergence and the broader application of artificial intelligence, large models and various vertical models have raised the new requirements for computing power. This is a huge first move advantage for AliCloud as we have established sizable path and a path to provide a stable, secure, high-performance and cost-efficient computing services.

阿里雲憑藉著業界領先的技術和產品，支撐了許多數位原生企業的成長和眾多產業客戶的數位轉型，確立了在中國和全球的市場領導地位。如今，人工智慧時代為阿里雲帶來了兩個新的歷史機會。首先，人工智慧、大模型以及各類垂直模型的出現和廣泛應用對算力提出了新的要求。這對阿里雲來說是一個巨大的先發優勢，我們已經建立了一條可觀的道路，可以提供穩定、安全、高效能和高性價比的運算服務。

We hope that AliCloud services can not only support our self-developed foundation model, but also support the training and services of other large models and vertical models in the market. Today, we are the leading provider of large-scale, high-performance computing services based on public cloud. Leveraging this technology advantage, we are working with enterprise customers and entrepreneurs to support their demand for model training and services.

我們希望阿里雲的服務不僅能支援我們自研的基礎模型，也能支援市場上其他大模型、垂直模式的訓練和服務。今天，我們是基於公有雲的大規模、高效能運算服務的領先供應商。利用這項技術優勢，我們正在與企業客戶和企業家合作，以支持他們對模型訓練和服務的需求。

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

第二個機會在於在 IaaS 和 PaaS 的基礎上建構模型即服務（MaaS）。我們希望把我們專有的基礎模型提供給大眾，同時支援我們的客戶、合作夥伴和開發者基於我們的基礎模型生產他們需要的垂直模型和服務。

In April, we released a large language pre-training model, Tongyi Qianwen. Currently, more than 200,000 customers have applied for trial access, and we have started to work with several industry partners to develop vertical models based on Tongyi Qianwen. We also plan to launch cloud products and enterprise solutions based on Tongyi model. At the same time, the emergence of large models also brings new opportunities to integrate AI with the various businesses within Alibaba Group.

四月份，我們發布了大型語言預訓練模型—統一千文。目前，已經有超過20萬客戶申請試用，我們也開始聯合多個產業夥伴開發基於統一錢文的垂直模型。我們也計劃推出基於統一模式的雲端產品和企業解決方案。同時，大模型的出現也為AI和阿里巴巴集團內部各項業務的整合帶來新的機會。

Starting from DingTalk, we believe that all of our customer-facing -- our consumer-facing business can be reinvested with a large model to offer a new AI-based service experiences for our users. Qianwen, a large language model, is just one member in the family of our Tongyi series for pre-training models. We plan to release some of the other large models in the Tongyi series in the near future.

從釘釘開始，我們相信我們所有面向​​客戶、面向消費者的業務都可以用一個大模型進行再投資，為我們的用戶提供基於人工智慧的全新服務體驗。大型語言模型千文只是我們統一系列預訓練模型家族的一員。我們計劃在不久的將來推出統一系列的其他一些大型車型。

As a cloud computing product company, AliCloud is committed to investing in core technology development in cloud computing, big data and AI to make computing more inclusive and AI more accessible. Recently, we have introduced a series of new product and pricing policies. We believe these measures can further expand the customer base and the cloud consumption of our public cloud services and drive the usage of high-performance computing power required for AI model training and related services. This will provide a healthier and more sustainable growth driver for AliCloud's long-term development.

身為雲端運算產品公司，阿里雲致力於在雲端運算、大數據、人工智慧等領域投入核心技術研發，讓運算更普惠、讓人工智慧更觸手可及。最近，我們推出了一系列新的產品和價格政策。我們相信這些措施可進一步擴大我們公有雲端服務的客戶基礎和雲端消費，並推動人工智慧模型訓練和相關服務所需的高效能運算能力的使用。這將為阿里雲的長期發展提供更健康、更永續的成長動力。

Before ending our sharing today, I would like to say a few more words. Looking back at the recent events in the past few months, Alibaba, like the world we are in, is at the beginning of a new era of transformation. The world is standing at a new starting point in the age of AI. The breaking throughs of -- in artificial intelligence will reshape every aspect of our society, how we work and how we live, creating opportunities for disruptive innovations while bringing new problems for mankind to solve together.

在結束今天的分享之前，我還想再說幾句話。回顧過去幾個月發生的事情，阿里巴巴就像我們身處的世界一樣，正處於一個新的轉型時代的開始。世界正站在人工智慧時代的新起點。人工智慧的突破將重塑我們社會的各個層面、我們的工作方式、我們的生活方式，創造顛覆性創新的機會，同時也帶來需要人類共同解決的新問題。

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

對於阿里巴巴自身的轉型，我們預期集團重組和資本管理工作的進展將進一步釋放阿里巴巴自身的生產力，並促進更多創新，例如專注於為客戶創造價值的新產品和服務以及新體驗。透過這些努力，我們希望為員工和股東帶來更大、更長期的回報。

Thank you.

謝謝。

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

謝謝你，丹尼爾。大家好。對於今天的電話會議，歡迎您用中文或英文提問。第三方翻譯將為問答環節提供連續翻譯。請注意，翻譯只是為了方便目的。如果有任何差異，以我們原始的管理聲明為準。如果您無法聽到中文翻譯，本次通話的雙語記錄將於會議結束後一周內在我們的網站上提供。

(foreign language) Operator, please connect the speaker and the SI conference line now. Please start our Q&A session when ready. Thank you.

(外語) 接線員，請立即連接揚聲器和 SI 會議線路。準備好後請開始我們的問答環節。謝謝。

(Operator Instructions) Your first question comes from Ronald Keung from Goldman Sachs.

（操作員指示）您的第一個問題來自高盛的 Ronald Keung。

[Interpreted] Thank you management for those excellent earlier presentations. Both Trudy and Daniel spoke about the reorganization of the group following which the Taobao and Tmall Group will no longer have the profits diverted to supporting the other spun-off subsidiaries of the group. So I'm wondering going forward what that will look like with Taocaicai and Taobao Deals narrowing their losses, improving profitability. Will that then be reinvested into CMR? What will be the major goal going forward? Will it be the maximization of GMV? Or will it be a more balanced strategy going forward? How will you maintain leadership going forward? Is the key focus on GMV?

[口譯] 感謝管理階層之前的精彩演講。 Trudy 和 Daniel 都談到了集團的重組，重組後淘寶和天貓集團將不再將利潤轉移到支持集團下屬的其他子公司。因此，我很好奇，隨著淘菜菜和淘寶特價版縮小虧損、提高獲利能力，未來情況會是如何。這些錢會被重新投資到 CMR 嗎？未來的主要目標是什麼？會是GMV的最大化嗎？或者這會是一個更平衡的未來策略？未來您將如何維持領導地位？重點是 GMV 嗎？

[Interpreted] Thank you. At Alibaba, we always believe that we should start with the end goal in mind, and therefore, in making any investments, we always look at what the end objective is in planning that out. Today's environment globally is still highly uncertain. At the same time, there's the rapid development of science and technology. So that needs to be factored into our long-term plan. So in the next, say, 3 to 5 years, on Taobao, we'll have a very clear focus on putting users first on building up a prosperous ecosystem and driving technology -- or technology-driven innovation and pursuing our transformation from transaction to consumption and on to life.

[翻譯] 謝謝。在阿里巴巴，我們始終相信我們應該從最終目標出發，因此，在進行任何投資時，我們總是考慮規劃的最終目標是什麼。當今全球環境仍然高度不確定。同時，科學技術也飛速發展。所以我們長期計劃中需要考慮到這一點。所以在未來的3到5年裡，淘寶會有一個非常明確的重點，那就是把用戶放在第一位，建立繁榮的生態系統，推動技術——或者說技術驅動的創新，實現從交易到消費再到生活的轉變。

Of course, pursuing all of this in a very competitive environment, but using all of this to meet broader and more diverse user demand and to optimize user experience and also to increase user time spent.

當然，追求這一切是在競爭非常激烈的環境中，但利用這一切來滿足更廣泛、更多樣化的用戶需求，優化用戶體驗，並增加用戶使用時間。

So as I said earlier, we will be investing in increasing user growth and in building a prosperous ecosystem.

正如我之前所說，我們將投資於增加用戶成長和建立繁榮的生態系統。

So in the context of my philosophy, I see take rate more as an indicator of platform health and an indicator of the confidence and the recognition that merchants have in the platform, merchants including those selling goods as well as those generating content.

所以從我的理念來講，我認為佣金率更多的是平台健康狀況的一個指標，也是商家對平台的信心和認可度的一個指標，商家包括銷售商品的商家，也包括生成內容的商家。

As for CMR, this is driven by an interaction of the scale of the platform user activities, including merchants and their confidence in the platform. And we'll continue to grow the scale of the business, driving it, as I said, with technological innovation and progress.

至於CMR，這是由平台用戶活動規模的互動所驅動的，包括商家和他們對平台的信心。正如我所說，我們將繼續擴大業務規模，並透過技術創新和進步來推動業務規模的擴大。

The next question comes from Gary Yu from Morgan Stanley.

下一個問題來自摩根士丹利的 Gary Yu。

(foreign language) (technical difficulty)

（外語）（技術難度）

We can't really hear your question very well. (foreign language)

我們確實聽不清楚你的問題。 （外語）

The next question is from Alicia Yap from Citi.

下一個問題來自花旗銀行的 Alicia Yap。

[Interpreted] My question has to do with the Cloud business. I'd like to ask, first of all, how have the results been and what the customer feedback have you had with your price reduction strategy. Also in the longer term, I'm wondering if you expect that Alibaba Cloud will be able to continue to maintain its #1 market share in the IaaS space in China, or if we can expect to see some changes with perhaps more players entering the IaaS market in China. And more generally, do you think Alibaba Cloud can continue to be the largest player in each of the IaaS, PaaS, SaaS and AI spaces going forward? And finally, what do you think in the long term will the level of profitability of Cloud be? Where will that stabilize?

[翻譯]我的問題與雲端業務有關。首先我想問一下，你們的降價策略效果如何，顧客的回饋如何？另外，從長遠來看，我想知道您是否預計阿里雲能夠繼續保持其在中國 IaaS 領域第一的市場份額，或者我們是否可以看到一些變化，或許會有更多參與者進入中國 IaaS 市場。更廣泛地說，您認為阿里雲未來能否繼續成為 IaaS、PaaS、SaaS 和 AI 領域最大的參與者？最後，您認為從長遠來看，雲端的獲利水準會是多少？那會穩定在哪裡呢？

[Interpreted] Thank you, Alicia. This is Daniel. I'll take that question. Well, yes, certainly, our price strategy in Cloud has attracted a lot of interest and attention, and it's been very well received by the market. I think a major objective behind that strategy has been our desire to make computing power more accessible, including to small- and medium-sized companies as well as to developers. So it's all about making computing power more accessible. So by increasing our coverage of service provision to these SMEs, by making this infrastructure available to more developers and to university students, we're also developing a source of future demand as they grow. So it's not just about providing service to the large industry players, but also to those smaller start-ups and indeed to students.

[翻譯] 謝謝你，艾莉西亞。這是丹尼爾。我來回答這個問題。是的，當然，我們在雲端運算方面的價格策略已經引起了很多興趣和關注，並且受到了市場的高度好評。我認為該策略背後的一個主要目標是我們希望讓更多人能夠獲得運算能力，包括中小型公司和開發人員。所以這一切都是為了讓運算能力更容易取得。因此，透過擴大我們對這些中小企業的服務覆蓋範圍，透過向更多的開發商和大學生提供這種基礎設施，我們也在隨著他們的成長開發未來的需求來源。因此，它不僅為大型行業參與者提供服務，還為那些小型新創公司以及學生提供服務。

The second thing I would add in relation to our price policy is that Alibaba is clearly the leader and the trailblazer in China when it comes to public cloud, and this is a business where we can achieve strong economies of scale. So as the leader in the market, it’s possible for us to leverage that economy of scale to pass on the dividend of our technological advantage to our customers. So that’s basically the business strategy, passing on those economies of scale to create real value for our customers.

關於我們的價格政策我想補充的第二件事是，阿里巴巴無疑是中國公有雲領域的領導者和開拓者，在這個業務上我們可以實現強大的規模經濟。因此，作為市場領導者，我們可以利用規模經濟將我們的技術優勢紅利傳遞給我們的客戶。所以這基本上就是我們的經營策略，透過規模經濟為我們的客戶創造真正的價值。

On your second question, certainly, Alibaba Cloud is in the leading position in China with respect to IaaS and IaaS plus PaaS. And we have seen various reports presenting different numbers, and there are indeed some different players entering the market. But Alibaba Cloud is very focused on public cloud. The proportion the public cloud takes up within our revenues is significantly higher than that for our various other competitors. And we’ve made a lot of efforts to grow high-quality revenue from our core products in IaaS and SaaS and, again, leveraging the economies of scale that we have achieved to pass on those dividends to benefit our customers.

關於你的第二個問題，當然，阿里雲在IaaS以及IaaS+PaaS方面在中國處於領先地位。而且我們看到各種報告呈現了不同的數字，而且確實有一些不同的參與者進入市場。但阿里雲非常專注於公有雲。公有雲在我們的收入中所佔的比例明顯高於我們的其他競爭對手。我們付出了很多努力，從 IaaS 和 SaaS 的核心產品中增加高品質收入，並再次利用我們已實現的規模經濟將這些紅利轉嫁給我們的客戶。

Finally, when it comes to AI, and this is something I've spoken about before, the development of AI technology presents a huge new opportunity for the Cloud business because artificial intelligence applications will result in an exponential increase in demand for computing power. And this kind of computing power needs to be provided as a kind of public service or infrastructure. So this is a huge opportunity for us going forward.

最後，說到人工智慧，這是我之前談到的，人工智慧技術的發展為雲端業務帶來了巨大的新機遇，因為人工智慧應用將導致對運算能力的需求呈指數級增長。而這種運算能力需要作為一種公共服務或基礎設施來提供。所以這對我們未來發展來說是一個巨大的機會。

Of course, with the development of AI models, including foundational models but also industry models, there'll be many opportunities to develop and launch new products for different use cases in different industries. So the development of AI really represents 2 opportunities: one, that growing demand for computing power; and second, the opportunity to develop these new products.

當然，隨著人工智慧模型的發展，包括基礎模型和行業模型，將有很多機會為不同行業的不同用例開發和推出新產品。因此人工智慧的發展其實代表著兩個機會：一是對運算能力的需求不斷增長；第二，開發這些新產品的機會。

Finally, as to profitability, again, I think we are still in the early days of the development of cloud, especially as -- due to the proportion of overall IT expenditure here. So in terms of where we're at today, certainly, there does remain a considerable gap in our level of profitability as compared against other leading cloud vendors internationally. But I see that gap really as our opportunity as we continue to grow and scale and achieve more economies of scale. And in particular, as we develop our core technologies, we see a definite opportunity and are confident in our ability to increase the level of profitability.

最後，關於獲利能力，我再次認為我們仍處於雲端運算發展的早期階段，尤其是考慮到這裡整體 IT 支出的比例。因此，就我們目前的狀況而言，與國際上其他領先的雲端供應商相比，我們的獲利水準確實仍然存在相當大的差距。但我認為，隨著我們繼續發展、擴大規模並實現更多的規模經濟，這一差距實際上也是我們的機會。特別是在我們開發核心技術的過程中，我們看到了明確的機會，並且對我們提高獲利水準的能力充滿信心。

The next question is from Alex Yao from JPMorgan.

下一個問題來自摩根大通的 Alex Yao。

[Interpreted] So the -- by way of intro to my question, I noticed when you spoke about the spin-off of the Cloud business in the release earlier, the wording was it will be a full spin-off by way of dividend distribution. I'm just wondering what that means in practice. Does it mean that all of the equity that the group owns in the Cloud business will be returned to existing shareholders by way of a dividend?

[口譯] 所以——作為我問題的介紹，我注意到當您在之前的發布中談到雲端業務的分拆時，措辭是它將通過股息分配的方式進行全面分拆。我只是想知道這在實踐中意味著什麼。是否意味著集團所持有的雲端業務股權將全部以股利的方式回饋給現有股東？

And secondly, various other assets under the group will be spun off and IPO-ed. I'm wondering in the mid- to long term, what are the factors you'll be considering. How will you make those decisions as to which assets you'll continue to retain majority control over? With over 50% of the equity, which assets you'll hold on to, say, 30% to 50% of the equity? And which other assets you might reduce your holding to 10% or even to 0? So what are the factors that will inform that decision process?

其次，集團旗下的其他各項資產也將剝離並上市。我想知道從中長期來看，您會考慮哪些因素。您將如何決定繼續對哪些資產保留多數控制權？如果您擁有超過50％的股權，那麼您會持有哪些資產，例如30％到50％的股權？您還可以將哪些其他資產的持有量減少到 10％ 甚至 0？那麼，哪些因素會影響這個決策過程呢？

[Interpreted] Thank you, Alex. This is Toby. I'll take the first part of that question. So yes, essentially, your understanding is correct. We're talking about a full spin-off. As was mentioned in Daniel's script and also in my script, we've established at the Board level, a new body, the Capital Management Committee, whose primary purpose is to look for ways to enhance shareholder returns. So this is a decision that has been proposed by that Capital Management Committee and approved by the Board. And as Daniel said, the reason for starting with cloud is because the Cloud business is relatively independent and different in terms of its characteristics versus those of the consumer-facing businesses. So that's the reason why the decision was made to do a full spin-off.

[翻譯] 謝謝你，亞歷克斯。這是托比。我來回答這個問題的第一部分。所以是的，從本質上講，你的理解是正確的。我們正在討論完整的衍生產品。正如丹尼爾和我的腳本中所提到的，我們在董事會層級建立了一個新機構，即資本管理委員會，其主要目的是尋找提高股東回報的方法。因此，這是資本管理委員會提出並經董事會批准的決定。而正如 Daniel 所說，之所以從雲端開始，是因為雲端業務相對獨立，並且與面向消費者的業務在特徵上有所不同。這就是決定進行全面衍生的原因。

And I'll hand over to Daniel for the other part of your question.

我將把問題的另一部分交給丹尼爾。

[Interpreted] Yes. This is Daniel. I'll just add a couple of thoughts on that. First question first. So the idea behind doing a full spin-off is certainly -- partly due to that consideration that we talked about of there being very different business characteristics around the Cloud business versus Alibaba's other consumer-facing businesses. But another part of that consideration is to take this opportunity to make adjustments to the shareholder structure, to bring on board strategic investors who can help grow the business in the market. That was also an important consideration.

[翻譯] 是的。這是丹尼爾。我只想補充幾點關於這一點的想法。先問第一個問題。因此，進行全面分拆的想法肯定部分是出於我們談到的考慮，即雲端運算業務與阿里巴巴其他面向消費者的業務具有非常不同的業務特徵。但考慮的另一部分是藉此機會調整股東結構，引入能夠幫助公司在市場上成長的策略投資者。這也是一個重要的考慮因素。

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

當然，在分拆的具體實施上，我們已經並將繼續充分考慮如何保證和實現現有股東的利益最大化，包括考慮稅務問題。

And then, Alex, on the second part of your question as to which of the assets or which of the businesses will continue to be a majority controlling shareholder, which will be reducing our shareholding and perhaps ultimately disposing of those businesses, I think the clearest answer to your question is that it comes down to our 3 core strategies, namely, consumption, cloud and globalization. And when we talk about globalization that is our digital commerce, logistics and of cloud. And I think that really is the clearest possible expression of which of the businesses we consider to be strategic.

然後，亞歷克斯，關於你問題的第二部分，即哪些資產或哪些業務將繼續成為多數控股股東，這將減少我們的持股，並可能最終處置這些業務，我認為對你的問題最明確的答案是，它歸結為我們的三大核心戰略，即消費，雲和全球化。當我們談論全球化時，指的是數位商務、物流和雲端運算。我認為這確實最清楚地表達了我們認為哪些業務具有戰略意義。

Now when it comes to engaging in financing and capital markets, there are different approaches that could be taken. In some companies, we can retain a majority controlling interest; in others, we can reduce our shareholding. I think the decision really comes down to what is best for that particular business in terms of its ability to grow and succeed as a business. Those businesses that can do better on an individual or stand-alone basis should be encouraged to independently face the market. And we would love nothing more than to see one of these little Alibaba's spinning off from Alibaba becoming another big Alibaba as big as the group company is right now.

現在談到參與融資和資本市場，可以採取不同的方法。在一些公司，我們可以保留多數控制權；在其他方面，我們可以減少持股。我認為，這項決定實際上取決於什麼對於該特定企業而言是最有利的，即其能否成長並取得成功。應該鼓勵那些個體或獨立發展能力較強的企業獨立面對市場。我們最希望看到的是，從阿里巴巴分離出來的小阿里巴巴，能夠發展成為與現在的集團公司一樣大的大阿里巴巴。

So I think what you have to look at in respect of each business is whether it has a very clearly defined target market, whether it has clearly defined customers, whether it has a robust business model and does it have core competence that's strong enough. And in the case of a business that has those 4 things, and cloud certainly does, I think it can succeed independently in the market. So going forward, we would be happy to see and indeed would expect to see Alibaba Cloud as an independent company growing to be as big as and perhaps even bigger than the Alibaba Group is today.

因此，我認為，對於每項業務，你必須專注於它是否有一個非常明確的目標市場，是否有明確界定的客戶，是否有強大的商業模式，以及是否擁有足夠強大的核心競爭力。如果一家企業具備這四大要素，而雲端運算肯定具備這些要素，我認為它可以在市場上獨立取得成功。因此，展望未來，我們很高興看到，也確實期望看到阿里雲作為一家獨立的公司成長為與阿里巴巴集團一樣大，甚至比阿里巴巴集團更大。

I think that the major difference going forward following the restructuring we announced in March is that we'll be going from being a very diversified group to having individual companies that are each more focused on their own business, a strong focus on their own strategy and on developing their own core competencies. This will be good for their customers, for their employees and, ultimately, will maximize shareholder value.

我認為，繼三月我們宣布的重組之後，未來最大的變化是，我們將從一個高度多元化的集團變成擁有各個公司，每個公司都更加專注於自己的業務，高度重視自己的策略並發展自己的核心競爭力。這對他們的客戶、員工都有好處，並最終實現股東價值最大化。

The next question comes from Gary Yu from Morgan Stanley.

下一個問題來自摩根士丹利的 Gary Yu。

[Interpreted] So the question I was hoping to ask earlier, I think, has been partially asked already. So by way of follow-up, cloud will be completely spun off fully, spun off by way of a dividend distribution. Could you tell us further about how that will work in terms of cloud and pursuing an IPO? And will that result in liquidity for the Alibaba Group?

[口譯] 所以我認為我之前想問的問題已經部分被問過了。因此，作為後續行動，雲端將被完全剝離，透過股息分配的方式剝離。您能否進一步告訴我們，在雲端運算和 IPO 方面，這將如何運作？這是否會為阿里巴巴集團帶來流動性？

And then a couple of questions on capital management. I assume that this dividend payout approach is basically out of tax considerations. We believe that -- pardon me, buybacks will be more favorable than dividends from the tax perspective. And then there is a third question about Freshippo, the interpreter did not hear very clearly.

然後是幾個關於資本管理的問題。我認為這種股息支付方式基本上是出於稅務考量。我們認為——請原諒，從稅收角度來看，回購比股利更有利。然後第三個問題，關於盒馬，翻譯沒有聽清楚。

[Interpreted] Okay. Thank you very much. Those questions got into a considerable level of detail that I don't know I can answer here. Following our announcement of the restructuring back in March, we've certainly been working on the overall planning and mapping out the details of these transactions. And certainly, in respect of the spin-off of the Cloud business, looking at ways to accomplish that transaction in a way that will maximize the benefit to the shareholders and ensure a very good shareholder return. But I don't know that at this point, I can share with you the specific details of how all of this will take place.

[翻譯] 好的。非常感謝。這些問題相當詳細，我不知道我是否能在這裡回答。自從我們在三月宣布重組以來，我們一直在進行總體規劃並製定這些交易的細節。當然，就雲端業務的剝離而言，我們正在研究如何以能夠最大限度地為股東帶來利益並確保股東獲得豐厚回報的方式完成交易。但目前我還不知道我是否可以與你們分享這一切將如何發生的具體細節。

Your second question had to do with the relative merits of buybacks versus dividends. So in the case of the Cloud business, we've opted to go with the dividend approach. But if you ask more generally what's better, buybacks versus dividend distributions, I think there'll be different opinions, different voices out there in the market. What I can tell you is we have this Capital Management Committee that will, I'm sure, give full consideration to all of these different factors and make a solid decision at the end of the day as to what makes the most sense and is in the best interest of shareholders and stakeholders to ensure a good return to our shareholders.

您的第二個問題與回購與股利的相對優點有關。因此，就雲端業務而言，我們選擇採用股利方式。但如果你更籠統地問回購和股利分配哪個比較好，我認為市場上會有不同的意見、不同的聲音。我可以告訴你們的是，我們有一個資本管理委員會，我相信，它會充分考慮所有這些不同因素，並最終做出堅定的決定，確定什麼是最合理的，什麼是最符合股東和利益相關者利益的決定，以確保為股東帶來良好的回報。

Your third question had to do with Freshippo and the IPO plan for Freshippo. I can't really share with you much more than what we announced earlier today that we aim to complete that process within, say, 6 to 12 months. We're working out the details of these capital raising funds right now. But at this point in time, we're not in a position to share any further details.

您的第三個問題與盒馬鮮生以及盒馬鮮生的 IPO 計劃有關。除了我們今天早些時候宣布的我們計劃在 6 到 12 個月內完成這一進程之外，我無法與你們分享更多。我們現在正在製定這些籌集資金的具體細節。但目前我們還不能透露更多細節。

[Interpreted] This is Daniel. Just to add a further point as we go through these capital raising processes as the group holding company exits certain of these businesses, it will be recovering investments and gaining liquidity. But we need to ensure that we work through these processes in a way that makes the best sense for each of the businesses concerned that it instills confidence in the market and that there is sufficient liquidity. Thank you.

[譯] 我是丹尼爾。再補充一點，隨著我們經歷這些融資過程，當集團控股公司退出某些業務時，它將恢復投資並獲得流動性。但我們需要確保以對每個相關企業最合理的方式來完成這些流程，以增強市場信心並確保充足的流動性。謝謝。

The next question is from Jerry Liu from UBS.

下一個問題來自瑞銀的 Jerry Liu。

[Interpreted] I have a few questions relating to e-commerce. So starting with Taobao and Tmall, we understand that there's been a return to positive growth in the business in the past few months. I'm wondering if you can tell us more about that, return to positive growth, the positive growth trend in GMV. Also, we understand that this year, there's been very fierce competition in the e-commerce space. But at the same time, the China commerce segment profitability is improving. Can you talk to us about that? And do you expect to see further improvement in profitability this year?

[翻譯]我有幾個有關電子商務的問題。從淘寶和天貓開始，我們了解到過去幾個月業務已經恢復正成長。我想知道您是否可以告訴我們更多有關恢復正成長、GMV 正成長趨勢的資訊。此外，我們知道今年電子商務領域的競爭非常激烈。但與此同時，中國商業部門的獲利能力正在提高。你能跟我們談談這個嗎？您預計今年的獲利能力會進一步提高嗎？

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

然後，在阿里巴巴國際數位商務（AIDC）方面，這項業務目前仍處於虧損狀態，未來需要進一步投資。我想知道您是否可以向我們介紹您在那裡的計劃。您是否主要希望透過這些投資來推動成長，還是更多地尋求成長與獲利之間的平衡。

[Interpreted] Thank you. So this is Trudy. Regarding your question on Taobao and Tmall, yes, definitely, we have been seeing some pretty good numbers, good results in March and April, especially, in terms of growth in users and growth in orders. And I think there are several reasons for that. First, of course, is the overall recovery of moderate or a slow recovery. But in quarter 1, that's been unfolding.

[翻譯] 謝謝。這就是特魯迪。關於你提到的淘寶和天貓的問題，是的，當然，我們看到了相當不錯的數據，3月和4月的業績表現不錯，特別是用戶增長和訂單增長方面。我認為這有幾個原因。第一當然是整體的溫和復甦或緩慢復甦。但在第一季度，這一情況已經開始顯現。

And secondly, I think it's the long-term effects of our efforts around cost optimization and efficiency enhancement that are starting to pay off.

其次，我認為我們在優化成本和提高效率方面所做的努力已經開始產生長期效益。

And then thirdly, as I shared with you earlier, our core strategies for this year and going forward are putting users first, building a prosperous ecosystem and driving a technology-driven business. So these investments that we're making now in users, merchants and technology are really just getting started.

第三，正如我之前與大家分享的，我們今年及未來的核心策略是用戶至上、建立繁榮的生態系統和推動技術驅動的業務。因此，我們現在對用戶、商家和技術的投資實際上才剛開始。

So as I shared earlier, I am planning the business over a 3-year horizon and implementing a 3-year plan. In the context of that 3-year plan, the most important thing this year, the priority is investing in users, merchants and technology and we're certain that those investments in users and merchants this year will pay off in terms of growth and scale. Thank you.

因此，正如我之前所分享的，我正在製定 3 年期的業務規劃並實施 3 年計畫。在該三年計畫的背景下，今年最重要的事情是優先投資用戶、商家和技術，我們確信今年對用戶和商家的投資將在成長和規模方面獲得回報。謝謝。

[Interpreted] So thank you. This is Jiang Fan on Alibaba International Digital Commerce. As I said in my earlier remarks, this business comprises a lot of different business models across a lot of different regions. So some of those components of the business are profitable and doing well profit-wise, others are still in the early investment phase. But in general terms, we see a great potential in international markets for the business, both on the retail side and on the B2B or wholesale side. So in markets where we see strong potential, we will be investing to develop the business. While at the same time, in respect of our existing or the more established businesses, we will be looking at ways to further enhance operating efficiencies. So we're looking at each market differently and taking a dynamic approach.

[翻譯] 所以謝謝你。我是阿里巴巴國際站的蔣凡。正如我之前所說，這項業務包含許多不同地區的許多不同商業模式。因此，其中一些業務部分是盈利的，而且利潤表現良好，而其他業務部分仍處於早期投資階段。但總體而言，我們看到國際市場對該業務有著巨大的潛力，無論是在零售方面，還是在 B2B 或批發方面。因此，在我們看到巨大潛力的市場，我們將進行投資以發展業務。同時，針對我們現有或較成熟的業務，我們將尋找進一步提高營運效率的方法。因此，我們以不同的方式看待每個市場並採取動態的方法。

Well, thank you, everyone, for joining today's call. If you have further questions, feel free to reach out to me and my IR team. We look forward to having you again next quarter. Thank you.

好吧，感謝大家參加今天的電話會議。如果您還有其他問題，請隨時聯絡我和我的 IR 團隊。我們期待下個季度再次見到您。謝謝。

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝。今天的會議就到此結束了。感謝您的參與。您現在可以斷開連線。

[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。