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，美好的一天。謝謝你的支持。歡迎來到阿里巴巴集團 2023 年三月季度和 2023 財年全年業績電話會議。 （操作員說明）

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

我現在想把電話轉給阿里巴巴集團投資者關係主管 Rob Lin。請繼續。

Thank you. (foreign language)

謝謝。 （外語）

[Interpreted] Mr. Daniel Zhang, Chairman and CEO; Joe Tai, 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.

[解讀]董事長兼首席執行官張勇先生； Joe Tai，執行副主席； Toby Xu，首席財務官。我們還請來了淘寶和天貓集團CEO Trudy Dai；阿里巴巴國際數字商務集團首席執行官蔣凡。我們公司網站的 IR 部分也對此次電話會議進行了網絡直播。今天晚些時候將提供通話重播。

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. 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.

現在讓我快速越過安全港。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當前預期存在重大差異。有關這些風險和不確定性的詳細討論，請參閱我們最新的 20-F 表年度報告以及我們向美國證券交易委員會備案或在香港聯交所網站上公佈的文件。我們在此次電話會議上所做的任何前瞻性陳述均基於截至今日的假設，除適用法律要求外，我們不承擔更新這些陳述的任何義務。

Based on 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.

基於我們在本次電話會議上使用的某些財務指標，例如調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的 EBITA、調整後的 EBITA 利潤率、非 GAAP 淨收入、非 GAAP 稀釋每股收益或 ADS 和自由現金流量均表示為在非 GAAP 基礎上。我們的 GAAP 結果和 GAAP 與非 GAAP 措施的調節可以在收益新聞稿中找到。除非另有說明，電話會議期間所有規定指標的增長率均指與去年同期相比的同比增長。

With that, I will now turn to Daniel.

有了這個，我現在將轉向丹尼爾。

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. This change has 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。我們在不斷變化的宏觀環境中結束了 3 月季度和 2023 財年。隨著農曆新年後 COVID-19 病例的減少，中國的商業和社會活動逐漸恢復。這一變化對我們的一些業務產生了不同程度的影響。

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.

上一季度，我們的收入達到人民幣 2082 億元，同比增長 2%。由於我們不斷努力提高運營效率和優化成本，我們調整後的 EBITA 約為人民幣 253 億元，同比增長 60%。

Looking at the macro environment in China and globally, we see both challenges and opportunities amid uncertainties for 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.

縱觀國內外宏觀環境，經濟復甦充滿不確定性，挑戰與機遇並存。國際宏觀環境充滿不確定性。同時，我們看到了中國消費復甦後大流行和人工智能快速發展的市場機會。我們將繼續執行消費、雲計算和全球化三大核心戰略，以應對這些機遇。

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 (inaudible) 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逐步復甦，但消費者信心和消費能力仍需進一步動能。與此同時，多個消費平台之間的競爭依然激烈，各方都在試圖以更多性價比的產品和服務來捕捉增量需求。在這樣一個競爭激烈的市場中，我們將重點關注以下領域。第一，優質用戶的獲取和留存；第二，保持我們平台的（聽不清）消費者心態；第三，最重要的是通過供給側創新創造新的需求。

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.

國際商務方面，我們將著力打造支撐國際商務業務可持續發展的核心能力，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.

在雲計算領域，工業數字化進程和人工智能的出現對計算能力提出了更高的需求。而基礎模型則拓展了人工智能在生活方方面面的應用。阿里雲將專注於抓住這些歷史機遇，以最大限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 assume 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.

3 月，我們宣布了一項重大的組織變革，將阿里巴巴集團重組為 6 個事業群和其他投資。因此，我們正在從經營多個集團業務轉變為一家專注於資本管理的控股公司。每個業務集團都將在其首席執行官的領導下高度獨立地運作，首席執行官在其董事會的監督下對公司的業績承擔全部責任。今天在我們的新聞稿中，我們還公佈了這6個事業群的董事會和CEO名單，這些名單是由阿里巴巴合夥人推薦，並經我們董事會批准的。

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，這一轉型將使我們所有的業務變得更加敏捷，增強決策能力，更快地響應市場變化，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，我們將邀請事業群CEO輪流加入財報電話會議，分享他們的經營策略和背後的思考。在今天的電話會議上，我們有 Trudy Dai 和 Jiang Fan，他們稍後將分別討論淘寶-天貓商業集團和國際數字商業集團的業務表現和戰略。我也會分享我對雲智能集團業務回顧和展望的看法。

As an important step in our organization or 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 reserve matters will be specified to require approvals from Alibaba Group's Board of Directors. These result 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.

作為我們組織或重組的重要一步，我們正在建立1+6+N架構下的新治理框架。在新的治理框架下，事業群CEO在事業群董事會的領導下全面負責經營業績和合規性。將列明儲備事項清單，須經阿里巴巴集團董事會批准。這些成果事項包括年度經營計劃與預算、事業群CEO任命與考核、重大資本交易、阿里巴巴集團內部業務合作與數據共享機制、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 with under Alibaba Group's Board of Directors. With the goal of enhancing shareholder return of the group, the committee overseas major capital management matters across our business groups.

為確保新管治架構下風險管理及合規要求的落實，我們已獲董事會批准成立新的合規及風險委員會，負責監督集團在財務報告以外領域的合規及風險管理。此外，為了適應我們作為控股公司的新角色，我們還成立了資本管理委員會，隸屬於阿里巴巴集團董事會。委員會以提升集團股東回報為目標，在各業務集團進行海外重大資本管理事宜。

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 full listing our Cloud Intelligence Group and complete its public listing in the next 12 months as an independent company. Cloud Intelligence 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.

隨著重組方案的進一步推進，我們根據各集團——各事業群所處的不同發展階段、業務需求、市場環境和風險，制定了不同的資本管理方案。我們今天宣布了幾項更新。首先，我們計劃將我們的雲智能集團全面上市，並在未來 12 個月內作為一家獨立公司完成公開上市。雲智能的商業模式、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 Cloud Intelligence 能夠進一步完善其業務戰略並優化其運營和組織。

Secondly, Freshippo and Cainiao have, over the years, established (inaudible) 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，多年來，盒馬和菜鳥已經建立（聽不清）客戶價值主張、穩定和明確的商業模式以及清晰的盈利路徑。我們相信這兩家公司已準備好上市。我們的董事會已批准盒馬鮮生啟動 IPO 程序的計劃，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，阿里巴巴國際電商集團將探索籌集外部資金，支持全球市場的業務擴張。上述交易能否成功執行取決於市場環境、監管審批等多種因素。

Next, I will turn 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，我將請託比討論上一季度和整個財政年度的財務業績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。正如所宣布的那樣，我們的阿里巴巴集團已經成立了資本管理委員會，以實施全面的資本管理計劃，以提升股東價值。在重組過程中，我們將與這個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方案。在資本管理委員會的領導下，我們致力於提高股東回報，並作為一家專注於三個重點的控股公司執行穩健的資本配置框架。

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 constant 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，我們強大的資產負債表和現金狀況是不確定環境中的競爭優勢。在我們對資本結構保持審慎態度的同時，我們將專注於提高管理公司資產的投資資本回報率。其次，我們將設計、審查和實施增加 EPS 的活動，包括不斷的股票回購以減少我們的流通股數量，同時保持管理我們的 ESOP 計劃的紀律。第三，我們將探索通過提高資產價值透明度和向股東返還資本來提高股東回報的所有方案，包括子公司籌資、首次公開募股和分拆。

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 we will continue to generate strong free cash flow in the future.

讓我與您詳細分享我們將採取的行動，我們將在今天的公告之後採取這些行動。未來，我們的主要資金來源將來自淘寶和天貓事業群，繼續作為我們的核心控股，100%持股。淘寶和天貓業務集團每年產生可觀的自由現金流，這些現金流將提供給阿里巴巴集團。在 2023 財年，我們產生了 250 億美元的自由現金流，主要由這項業務貢獻，我們相信未來我們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合併業務的貨幣化。正如丹尼爾提到的，我們的董事會已批准以下交易作為我們資本管理計劃的初始階段。首先，對於阿里巴巴國際數字商務事業群（AIDC），我們對它的機會和增長前景充滿信心，我們計劃啟動它的外部融資程序。此次融資將幫助該業務集團拓展新的地域市場，投資新技術，擴大其消費者和供應商基礎，加強其管理團隊，並為全球客戶開發和增強其產品和服務。

Second, we are starting a process to explore an IPO of Cainiao Small Logistics Group. The group provides supply chain, logistics and delivery services to customers and merchants that are a customer 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.

二是啟動菜鳥小物流IPO探索進程。該集團為淘寶和天貓商業集團和 AIDC 的客戶以及第三方客戶的客戶和商家提供供應鏈、物流和交付服務。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 Freshippo, our new retail business, and we expect the IPO will be completed in the next 6 to 12 months.

第三，我們正在啟動新零售業務盒馬鮮生的 IPO 流程，我們預計 IPO 將在未來 6 至 12 個月內完成。

Importantly, except for Taobao-Tmall Business Group, these businesses and other subsidiaries are given a limited time period to assess Alibaba Group's capital, including equity injections and our 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 debt and are 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，除了淘寶-天貓業務集團，這些業務和其他子公司被給予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我們的信貸額度貸款。之後，每個企業都應該有自己的獨立融資能力，可能包括籌集私募股權、發行債券和公開上市。我們相信這些交易的成功完成將進一步優化我們的資本結構並加強我們的現金狀況，然後可用於回報股東。

Second, we are committed to execute EPS-accretive activities that improve shareholders' return. During fiscal year 2023, we repurchased RMB 129.9 million of our ADS 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 ADS. 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，我們致力於開展提高股東回報的每股收益增長活動。在 2023 財年，我們在股票回購計劃中以約 109 億美元的價格回購了 1.299 億元人民幣的美國存託憑證，約占我們自由現金流的 44%。從 4 月 1 日到 5 月 17 日，我們又回購了 23 億美元的 ADS。目前，根據我們將繼續執行的股票回購計劃，我們仍有約 171 億美元的未使用金額。

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.

在重組過程中，每個業務集團都將擁有自己的 ESOP 計劃，使管理層和員工的利益與其業務績效和股權價值創造保持一致。反過來，這意味著未來在控股公司層面發行的 ESOP 會減少。此外，只要業務集團仍主要由阿里巴巴集團持有，資本管理委員會將審查其擬議的年度 ESOP 計劃，以平衡對阿里巴巴集團股東的潛在稀釋與為業務集團提供有吸引力的激勵水平之間的平衡吸引和留住人才。

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，我們的董事會批准通過向股東分配股票股息的方式完全剝離 Cloud Intelligence Group。在分拆之前，我們計劃通過私募的方式將外部戰略投資者納入雲智集團。就分拆而言，Cloud Intelligence Group 打算成為一家獨立的上市公司。分拆將取決於某些資產、負債和合同的重組、員工股權激勵計劃的實施、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.

我們打算以最節稅的方式為我們的股東安排分拆。根據上述交易、條件和批准，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執行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.

現在讓我簡要回顧一下我們在 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%，這主要是受國際商務板塊收入增長 29% 至人民幣 185 億元，菜鳥板塊收入增長 18% 至人民幣 136 億元所推動本地消費服務業務增長 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%.

本季度經調整 EBITA 同比增長 95 億元人民幣至 253 億元人民幣。這一增長主要是由於中國商業調整後的 EBITA 增加以及本地消費服務和數字媒體和娛樂的調整後 EBITA 虧損收窄。總體而言，調整後的 EBITA 利潤率同比提高 4 個百分點至 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.

現在讓我們看看成本趨勢佔收入的百分比，不包括 SBC。截至 3 月 31 日的季度，不包括 SBC 的收入成本比率下降 2 個百分點至 66%，這主要是由於直銷收入成本下降。本季度產品開發費用率下降1個百分點。銷售和營銷費用比率在 3 月季度同比下降 1 個百分點至 12%，反映出我們在優化各業務的用戶獲取和用戶保留支出方面的持續努力。

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

3 月季度的一般和行政費用比率穩定在 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.

我們的 GAAP 淨利潤為人民幣 220 億元，同比增加人民幣 404 億元，主要是由於我們在上市公司的股權投資的市場價格上漲產生的淨收益與這些投資在這些投資的淨虧損相比去年同期，部分被權益法投資對象的利潤份額減少、投資減值增加和經營收入減少所抵消。

As of March 31, 2023, we continue 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，我們繼續保持 3990 億元人民幣或 580 億美元的強勁淨現金頭寸。如前所述，在 2023 財年，我們強勁的淨現金狀況得到了 1720 億元人民幣、250 億美元的健康自由現金流的支持。此外，我們在投資方面一直受到紀律處分。截至 2023 年 3 月 31 日的財政年度，我們用於投資和收購活動的現金淨額為人民幣 8.4 億元，而去年同期為人民幣 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.

現在讓我們看看細分結果。 3 月當季，我們中國商務部門的收入為人民幣 1,360 億元，同比下降 3%。截至 2023 年 3 月 31 日的季度，淘寶和天貓上的在線實體商品 GMV（不包括未付款訂單）同比下降中個位數。客戶管理收入同比下降5%至人民幣603億元。淘寶和天貓的CMR和GMV差距一直在縮小。直銷及其他收入下降 1% 至人民幣 718 億元，主要是由於線下門店銷售額下降。

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.

中國商業板塊調整後的 EBITA 在 3 月季度增加了 63 億元人民幣，達到 385 億元人民幣。部門 EBITA 利潤率從 2022 年 3 月季度的 23% 增加到 28%。這反映了淘寶團購、淘菜菜和盒馬鮮生的虧損大幅減少，部分被客戶管理收入的利潤減少所抵消。

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.

3 月當季，我們的國際商務板塊收入為人民幣 185 億元，同比增長 29%。國際商業零售業務收入增長41%至人民幣140億元。這一增長主要是由我們所有主要業務的業務增長加速推動的，包括全球速賣通、Lazada 和 Trendyol。

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 negotiation, 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.

國際商務板塊調整後的 EBITA 虧損在 3 月季度收窄了 2.33 億元人民幣，至 23 億元人民幣。虧損同比減少主要是由於 Trendyol 的虧損減少，部分被 Lazada 的虧損增加所抵消。 Lazada 的虧損增加主要是由於與談判、新服務合同相關的一次性提前終止費用，以降低未來運營成本。剔除這一一次性影響，經調整的國際商務板塊EBITA虧損將低於15億元人民幣。

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.

我們的本地消費服務部門在 3 月當季的收入增長了 17% 至人民幣 125 億元，這主要是由於訂單增長和更高的平均訂單價值推動了餓了麼的 GMV 正增長。

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虧損同比減少14億元人民幣至42億元人民幣。大部分虧損減少是由餓了麼業務拉動的，而該板塊的其他主要業務也錄得虧損。餓了麼通過提高平均訂單價值和降低每筆訂單的交付成本，繼續提高每筆訂單的單位經濟效益。其 UE 同比繼續改善，本季度保持積極。

Revenue from Cainiao, after intersegment 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.

經部門間抵消後，菜鳥的收入同比增長 18% 至人民幣 136 億元，這主要是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。菜鳥在 3 月季度錄得調整後 EBITA 虧損人民幣 3.19 億元。虧損同比減少5.93億元。

Revenue from our Cloud segment, after intersegment 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.

經部門間抵消後，我們雲部門的收入在 3 月當季為人民幣 186 億元，下降 2%。鑑於 1 月份 COVID-19 捲土重來以及與去年同期相比 CDM 需求正常化，我們雲部門收入的同比下降反映了混合雲項目的交付延遲。雲業務調整後的 EBITA 在 3 月當季實現利潤人民幣 3.85 億元，同比增加人民幣 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，我們的數字媒體和娛樂業務收入為人民幣 83 億元，增長 3%。調整後 EBITA 為虧損人民幣 11 億元，同比減少人民幣 8.64 億元，這主要是由於優酷在內容和生產能力方面的嚴格投資推動虧損收窄。

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

現在請讓 Trudy 來談談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 Trudy，我很高興今天有機會與大家交談。新的一年，我們都看到了中國經濟的積極勢頭，一季度國內生產總值同比增長4.5%，消費溫和回升。從我們的角度來看，在 1 月份 COVID 復發和春運之後，我們看到的是，從 2 月到 4 月，我們在淘寶應用上的用戶和 GMV 實現了同比正增長， EBITA 也很好。

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圍繞成本優化和效率提高所做的努力以及我們正在進行的 5 場戰鬥的回報。此外，我們看到許多積極因素在向前發展，儘管在電子商務領域，人口紅利正在減弱，競爭加劇，但是，消費者對更多樣化產品的需求不斷增長以及技術進步正在創造許多新機會。

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，相應地，在這個新的財政年度，我們調整了我們的戰略並製定了我們目前正在實施的新發展計劃。我相信這些舉措將使我們能夠利用複蘇和消費，抓住市場發展和技術進步帶來的機遇，進一步鞏固我們在消費者和商家中的領先地位，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，根據我們過去2年對新的交互形式和內容的嘗試，我們更加確定，消費者除了購物之外，還希望在淘寶上找到範圍更廣、內容更豐富的內容，包括與購物相關的百科知識、生活方式等。建議甚至互動娛樂。而用戶每天進行的數以億計的長尾關鍵詞搜索也證實了這一點。

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.

因此，未來幾年，淘寶將持續進行大規模的投資，以滿足用戶在生活方方面面的多樣化需求。這將包括投資以進一步豐富和多樣化商品分類，創造更豐富和更具差異化的內容，並引入新的互動娛樂場景。在用戶規模和用戶使用時間加速增長，鞏固其作為中國使用最廣泛的在線市場的地位的同時，淘寶將逐步升級為一站式消費和生活方式平台。

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，我們將通過更加開放和包容的供給側以及我們所做的組織升級來構建繁榮的生態系統。比如，我們成立了中小企業發展中心，專門扶持初創企業和中小商戶，幫助他們在平台上貢獻更多元的物資。我們的雜貨店業務發展中心致力於讓用戶能夠更快、更省錢地在淘寶上購買生鮮食品。我們的直播和內容團隊將為內容創作者提供強有力的支持。此外，我們將利用技術進步來降低商家的運營成本。

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，利用人工智能和其他技術的進步。淘寶應用將升級以滿足更廣泛的用戶需求。所以展望未來，我們將更加專注於淘寶的技術投資，建立整個集團的技術和數據能力。我們將升級現有的商家工具，為商家創造新的工具，為用戶提供新的生活方式場景，提供下一代範式終端用戶體驗。所以綜上所述，我們的戰略是用戶至上，構建繁榮的生態系統，實現技術驅動的創新。我們的核心目標是讓淘寶繼續成為服務最多用戶的第一消費平台，同時升級平台以服務更廣泛的需求。

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，我們將降低商家運營成本，並增加我們對用戶、商家技術的投資，為我們的用戶提供好的商品、好的內容和好的體驗以及好的服務。我相信，憑藉我們強勁的增長勢頭以及我們帶來的網絡和規模效應，再加上我們的新方法，我們一定會為商家實現價值最大化。這意味著我們將繼續在商戶規模方面處於領先地位，成為排名第一的經商場所。

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的平台投資回報率增長。對此，我充滿信心。因此，在 3 年的時間裡，我將進行堅定、持續和重大的投資，以實現上述 3 個戰略並實現用戶的持續增長。

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

非常感謝。而在這一點上，我會交給蔣凡。

[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 Group. 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字商務，或 AIDC 集團，其中包括各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本地商業模式的數字零售平台，包括 Trendyol、Daraz 和 Lazada。此外，我們還運營多個跨境 B2C 平台，包括全球速賣通和天貓淘寶集團。我們還有 Alibaba.com，這是一個服務於批發行業的全球 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.

上個季度，國際商務板塊呈現快速增長勢頭。全球速賣通正式推出一項名為 Choice 的新服務。它基於全球速賣通模型實現。它為消費者提供物有所值的產品選擇和更好的服務，進一步提升消費體驗。全球速賣通整體保持較快增長。

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月上旬土耳其發生地震後，Trendyol和阿里巴巴集團積極提供救災支持。我們在土耳其的業務雖然短期受到影響，但很快恢復並實現了強勁增長，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的貨幣化率持續提升，在業務規模增長和運營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之後，我們的國際商務業務已經復蘇並重回增長軌道。

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，我們將繼續投資 B2C 零售領域的跨境加本地商業模式。我們的跨境業務仍有很大的發展潛力。隨著 Choice 服務的推出，全球速賣通的用戶體驗得到了顯著改善，我們預計該業務將繼續快速增長。在本地商業業務方面，我們將繼續投資東南亞市場，同時積極尋求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，我們對現有模式做了很多升級，從交易服務擴展到其他增值服務，如金融、物流和數字SaaS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增長。此外，我們還將積極將 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 為大家介紹Cloud business。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.

關於我們的雲計算業務的一些更新。在上個季度，我們的雲收入同比下降了 2%。這部分是由於我們積極調整收入結構並著眼於高質量增長，也是市場環境外部客戶結構變化的結果。外部因素包括頂級客戶逐步停止使用我們的雲服務並轉向其國際業務自建基礎設施的影響。

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.

對阿里雲的後期收入貢獻同比下降41%。此外，1 月份中國疫情捲土重來也影響了公有云消費和部分混合雲項目在本季度的延遲交付。隨著2、3月份疫情的緩解，遠程工作和學習活動的減少，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 sees 2 historical opportunities. Number one, rapid development of China's mobile Internet; and number two, digital transformation of traditional industries.

拋開雲收入的短期波動，回顧阿里雲過去14年的發展歷程，以及隨著人工智能的快速發展，雲的廣闊前景，我們看到了巨大的市場潛力，對雲的未來充滿信心。我們走到今天，是因為阿里雲看到了兩個歷史機遇。第一，中國移動互聯網發展迅速；第二，傳統產業的數字化轉型。

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.

阿里雲憑藉行業領先的技術和產品，支撐了眾多數字原生企業的成長和眾多行業客戶的數字化轉型，確立了在中國乃至全球的市場領導地位。今天，人工智能時代給阿里雲帶來了2個新的歷史機遇。首先，人工智能、大模型和各種垂直模型的出現和廣泛應用對計算能力提出了新的要求。這對阿里雲來說是一個巨大的先發優勢，因為我們已經建立了相當大的路徑，並建立了提供穩定、安全、高性能和高性價比計算服務的路徑。

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.

我們希望阿里雲服務不僅可以支持我們自研的基礎模型，還可以支持市場上其他大模型和垂直模型的訓練和服務。今天，我們是領先的基於公有云的大規模、高性能計算服務提供商。利用這一技術優勢，我們正在與企業客戶和企業家合作，支持他們對模型培訓和服務的需求。

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.

第二個機會在於在我們的 IaaS 和 PaaS 基礎之上構建模型即服務或 MaaS。我們希望將我們專有的基礎模型提供給大眾，同時支持我們的客戶、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 pretrained 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 business within Alibaba Group.

4 月，我們發布了大型語言預訓練模型同義千文。目前，已有超過20萬客戶申請試用，我們已經開始與多家行業合作夥伴合作開發基於統一千文的垂直模型。我們還計劃推出基於統一模式的雲產品和企業解決方案。同時，大模型的出現也帶來了AI與阿里巴巴集團各業務融合的新機遇。

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 pretrain 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——我們面向消費者的業務都可以用一個大模型進行再投資，為我們的用戶提供一個新的基於人工智能的服務體驗。大型語言模型 Qianwen 只是我們用於預訓練模型的同義系列家族中的一員。我們計劃在不久的將來發布同逸系列的其他一些大型機型。

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.

作為一家云計算產品公司，阿里雲致力於在雲計算、大數據、人工智能等領域投入核心技術研發，讓計算更普惠，讓人工智能更觸手可及。最近，我們推出了一系列新產品和價格政策。我們相信這些措施可以進一步擴大我們公共雲服務的客戶群和雲消費，並推動人工智能模型訓練和相關服務所需的高性能計算能力的使用。這將為阿里雲的長期發展提供更健康、更可持續的增長動力。

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，我想多說幾句。回顧過去幾個月發生的事情，阿里巴巴和我們所處的世界一樣，正處於一個新時代變革的開端。世界正站在人工智能時代的新起點。人工智能的突破將重塑我們社會的方方面面，包括我們的工作方式和生活方式，為顛覆性創新創造機會，同時為人類帶來需要共同解決的新問題。

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，我們預計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。通過這些努力，我們希望為我們的員工和股東帶來更大、更長遠的回報。

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。今天的電話，歡迎您用中文或英文提問。第三方翻譯人員將為問答環節提供交傳。請注意，翻譯僅供參考。如有任何差異，以我們的管理聲明原文為準。如果您無法聽到中文翻譯，本次通話的雙語文字記錄將在會議結束後 1 週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，請現在連接揚聲器和 SI 會議線路。請在準備好後開始我們的問答環節。謝謝。

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

（操作員說明）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?

[已翻譯] 感謝管理層早期的精彩演講。 Trudy 和 Daniel 都談到了集團的重組，之後淘寶和天貓集團的利潤將不再用於支持集團的其他分拆子公司。所以我想知道隨著淘菜菜和淘寶團購縮小虧損、提高盈利能力，未來會是什麼樣子。然後將其再投資於 CMR 嗎？未來的主要目標是什麼？會不會是GMV的最大化？或者它會是一個更平衡的策略嗎？您將如何保持領導地位？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，我們始終認為我們應該從最終目標開始，因此在進行任何投資時，我們始終會在規劃時考慮最終目標是什麼。當今全球環境仍存在高度不確定性。與此同時，科學技術也在飛速發展。因此，這需要納入我們的長期計劃。所以在未來，比如 3 到 5 年，在淘寶上，我們將非常明確地把重點放在用戶至上，建立繁榮的生態系統和驅動技術——或者技術驅動的創新，並追求我們從交易到交易的轉變。消費和生活。

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，在競爭非常激烈的環境中追求這一切，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，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.

因此，正如我之前所說，我們將投資於增加用戶增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.

所以在我的哲學背景下，我更多地把rate看作是平台健康的指標，也是商家對平台的信心和認可度的指標，商家包括銷售商品的商家和生產內容的商家。

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相互作用驅動的，包括商家及其對平台的信心。正如我所說，我們將繼續擴大業務規模，推動技術創新和進步。

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。

This is a follow-up on Taobao, your capital management. (foreign language)

這是淘寶上的後續，你的資金管理。 （外語）

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

我們真的不能很好地聽到你的問題。 （外語）

The next question is from Alicia Yap from Citi.

下一個問題來自花旗的 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?

[已解釋] 我的問題與雲業務有關。首先，我想問一下，結果如何，客戶對你們的降價策略有何反饋。同樣從長遠來看，我想知道您是否預計阿里雲將能夠繼續保持其在中國 IaaS 領域的第一市場份額，或者我們是否可以期待看到一些變化，也許更多的玩家進入中國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 領域中最大的參與者？最後，您認為 Cloud 的長期盈利水平如何？哪裡會穩定？

[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，艾麗西亞。這是丹尼爾。我會回答這個問題。嗯，是的，當然，我們在雲中的價格策略引起了很多興趣和關注，並且受到了市場的好評。我認為該戰略背後的一個主要目標是我們希望讓計算能力更容易獲得，包括中小型公司和開發人員。所以這一切都是為了讓計算能力更容易獲得。因此，通過增加我們為這些中小企業提供服務的覆蓋面，通過讓更多的開發人員和大學生可以使用這種基礎設施，我們也在開發未來需求的來源，因為他們會成長。因此，它不僅要為大型行業參與者提供服務，還要為那些較小的初創企業甚至學生提供服務。

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，我要補充的第二件事是，在公共雲方面，阿里巴巴顯然是中國的領導者和開拓者，這是我們可以實現強大規模經濟的業務。因此，作為市場的領導者，我們有可能利用規模經濟將我們的技術優勢紅利傳遞給我們的客戶。所以這基本上就是商業戰略，通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和IaaS+PaaS方面在國內處於領先地位。而且我們看到各種報導呈現出不同的數字，確實有一些不同的玩家進入市場。但阿里云非常專注於公有云。公有云在我們收入中所佔的比例明顯高於我們的各種其他競爭對手。我們付出了很多努力來增加 IaaS 和 SaaS 核心產品的高質量收入，並再次利用我們已經實現的規模經濟來傳遞這些紅利，使我們的客戶受益。

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AI，這個我之前也講過，AI技術的發展給雲業務帶來了巨大的新機遇，因為人工智能的應用會帶來對算力需求的指數級增長。而這種計算能力需要作為一種公共服務或基礎設施來提供。所以這對我們前進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，隨著人工智能模型的發展，包括基礎模型和行業模型，將有很多機會針對不同行業的不同用例開發和推出新產品。所以AI的發展其實代表了2個機會：一是對算力的需求越來越大；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，關於盈利能力，我認為我們仍處於雲開發的早期階段，尤其是——由於這裡佔整體 IT 支出的比例。因此，就我們今天所處的位置而言，與國際上其他領先的雲供應商相比，我們的盈利水平確實存在相當大的差距。但我認為，隨著我們繼續發展壯大並實現更大的規模經濟，這種差距確實是我們的機會。特別是，隨著我們開發核心技術，我們看到了明確的機會，並對我們提高盈利水平的能力充滿信心。

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?

[解釋] 所以 - 通過介紹我的問題，我注意到當你在之前的發布中談到雲業務的分拆時，措辭是它將通過股息分配的方式完全分拆.我只是想知道這在實踐中意味著什麼。是否意味著集團在雲業務中擁有的全部股權將以分紅的方式返還給現有股東？

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，集團下的各種其他資產將被分拆上市。我想知道從中長期來看，您會考慮哪些因素。您將如何決定您將繼續保留對哪些資產的多數控制權？擁有超過50%的股權，你將持有哪些資產，比如30%到50%的股權？還有哪些其他資產你可能會減持至 10% 甚至為 0？那麼影響決策過程的因素有哪些？

[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.

[解釋] 謝謝你，亞歷克斯。這是托比。我將回答這個問題的第一部分。所以是的，從本質上講，您的理解是正確的。我們正在談論一個完整的分拆。正如丹尼爾的腳本和我的腳本中提到的，我們在董事會層面建立了一個新機構，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，這是該資本管理委員會提出並經董事會批准的決定。正如丹尼爾所說，從雲開始的原因是因為雲業務相對獨立，並且在其特徵方面與面向消費者的業務不同。這就是為什麼決定進行全面分拆的原因。

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

關於你問題的另一部分，我將交給 Daniel。

(inaudible) 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.

（聽不清）是的。這是丹尼爾。我將對此添加一些想法。先說第一個問題。因此，完全分拆背後的想法肯定是 - 部分原因是我們談到雲業務與阿里巴巴其他面向消費者的業務有非常不同的業務特徵。但另一部分考慮是藉此機會調整股東結構，引入有助於在市場上發展業務的戰略投資者。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，我們已經並將充分考慮在如何進行分拆方面如何保證和最大化現有股東的利益，包括考慮稅收問題。

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，關於你的問題的第二部分，關於哪些資產或哪些業務將繼續成為大股東，這將減少我們的股權，並可能最終處置這些業務，我認為最清楚的是回答你的問題，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，那就是我們的數字商務、物流和雲。我認為這確實是我們認為哪些業務具有戰略意義的最清晰的表達方式。

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.

現在涉及到融資和資本市場，可以採取不同的方式。在某些公司中，我們可以保留多數控制權；在其他方面，我們可以減少我們的股份。我認為這個決定實際上歸結為就特定企業的成長和成功能力而言，什麼是最適合該企業的。鼓勵那些單打獨鬥做得更好的企業獨立面對市場。我們最希望看到這些小阿里巴巴中的一個從阿里巴巴分拆出來，成為另一個像集團公司現在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.

所以我覺得每個企業要看的是它有沒有非常明確的目標市場，有沒有明確的客戶，有沒有穩健的商業模式，有沒有足夠強大的核心競爭力。對於擁有這 4 樣東西的企業，雲肯定有，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，也確實期待看到阿里云作為一家獨立的公司成長為與今天的阿里巴巴集團一樣大，甚至可能更大。

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，在我們 3 月份宣布的重組之後，未來的主要區別在於，我們將從一個非常多元化的集團轉變為擁有獨立的公司，每個公司都更加專注於自己的業務，專注於自己的戰略和關於發展自己的核心競爭力。這對他們的客戶和員工都有好處，最終將使股東價值最大化。

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?

[已解釋] 所以我想我之前希望提出的問題已經部分提出了。因此，通過後續行動，雲將完全剝離，通過股息分配的方式剝離。您能否進一步告訴我們這將如何在雲和進行 IPO 方面發揮作用？這會為阿里巴巴集團帶來流動性嗎？

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 that the interpreter did not hear very clearly.

然後是關於資本管理的幾個問題。我認為這種派息方式基本上是出於稅收考慮。我們相信——對不起，從稅收的角度來看，回購將比股息更有利。還有第三個關於盒馬鮮生的問題，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.

[解釋] 好的。非常感謝。這些問題非常詳細，我不知道我能否在這裡回答。在我們於 3 月份宣布重組後，我們當然一直在進行總體規劃並製定這些交易的細節。當然，就雲業務的分拆而言，我們正在尋找以最大化股東利益並確保良好股東回報的方式完成該交易的方法。但我不知道在這一點上，我可以與你分享所有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.

你的第二個問題與回購與股息的相對優點有關。因此，就雲業務而言，我們選擇了分紅方式。但如果你更籠統地問什麼更好，回購與股息分配，我認為市場上會有不同的意見和不同的聲音。我可以告訴你的是，我們有這個資本管理委員會，我敢肯定，它會充分考慮所有這些不同的因素，並在一天結束時就什麼最有意義和最有效做出可靠的決定股東和利益相關者的最佳利益，以確保為我們的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 plans right now. But at this point in time, we're not in a position to share any further details.

你的第三個問題與盒馬和盒馬的IPO計劃有關。除了我們今天早些時候宣布的我們的目標是在 6 到 12 個月內完成該過程之外，我真的無法與您分享更多信息。我們現在正在製定這些融資計劃的細節。但目前，我們無法分享任何進一步的細節。

[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.

[翻譯] 這是丹尼爾。隨著集團控股公司退出其中某些業務，我們將通過這些融資流程進一步補充一點，它將收回投資並獲得流動性。但我們需要確保我們以一種對每個相關企業都最有意義的方式來完成這些流程，從而增強對市場的信心，並確保有足夠的流動性。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?

[已翻譯] 我有幾個關於電子商務的問題。所以從淘寶和天貓開始，我們了解到過去幾個月業務已經恢復正增長。我想知道你是否可以告訴我們更多關於 GMV 恢復正增長的正增長趨勢。此外，據我們了解，今年電子商務領域的競爭非常激烈。但與此同時，中國商業板塊的盈利能力正在改善。你能和我們談談嗎？您是否預計今年的盈利能力會進一步改善？

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字商務，AIDC，前面，這是一個目前仍在虧損的業務，需要進一步投資。我想知道你是否可以告訴我們一些你在那裡的計劃。無論您是主要著眼於通過這些投資推動增長，還是更多地尋求平衡增長與盈利能力。

[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。關於你關於淘寶和天貓的問題，是的，當然，我們在 3 月和 4 月看到了一些相當不錯的數字，很好的結果，尤其是在用戶增長和訂單增長方面。我認為這有幾個原因。首先，當然是整體溫和或緩慢的複蘇。但在第一季度，這種情況一直在發生。

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，我認為這是我們在成本優化和效率提升方面所做努力的長期影響開始產生回報。

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那樣，我們今年和未來的核心戰略是用戶至上，建立繁榮的生態系統，推動技術驅動的業務。因此，我們現在在用戶、商家和技術方面進行的這些投資才剛剛開始。

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，正如我之前分享的那樣，我正在規劃 3 年的業務並實施 3 年計劃。在這個 3 年計劃的背景下，今年最重要的事情是對用戶、商家和技術的投資，我們確信今年對用戶和商家的投資將在增長和規模方面得到回報.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.

[解釋] 所以謝謝你。我是阿里巴巴國際電商的蔣凡。正如我在之前的發言中所說，這項業務包括許多不同地區的許多不同的商業模式。因此，這些業務的某些組成部分是有利可圖的，並且在盈利方面表現良好，其他部分仍處於早期投資階段。但總的來說，我們看到了該業務在國際市場的巨大潛力，無論是在零售方面還是在 B2B 或批發方面。因此，在我們認為潛力巨大的市場，我們將投資發展業務。與此同時，就我們現有或更成熟的業務而言，我們將尋找進一步提高運營效率的方法。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.

嗯，謝謝大家參加今天的電話會議。如果您還有其他問題，請隨時與我和我的 IR 團隊聯繫。我們期待下個季度再次與您見面。謝謝。

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

謝謝。我們今天的會議到此結束。感謝您的參與。您現在可以斷開連接。

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

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出]。