阿里巴巴 (BABA) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's June Quarter 2023 Results Conference Call. (Operator Instructions) After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Rob Lin, Head of Investor Relations of Alibaba Group. Please go ahead.

美好的一天，女士們先生們。謝謝你的支持。歡迎參加阿里巴巴集團 2023 年 6 月季度業績電話會議。 （操作員說明）管理層準備好發言後，將進行問答環節。我現在想把電話轉給阿里巴巴集團投資者關係主管林羅布。請繼續。

Thank you, and good day, everyone. Welcome to Alibaba Group's June Quarter 2023 Results Conference Call. With us today are 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 during the call. This call is also being webcasted from the IR section of our corporate website. A replay of the call will be available on our website later today.

謝謝大家，祝大家有美好的一天。歡迎參加阿里巴巴集團 2023 年 6 月季度業績電話會議。今天與我們在一起的有董事長兼首席執行官張勇；蔡崇信，執行副主席；徐托比，首席財務官。我們在電話會議中還邀請了淘寶和天貓集團的首席執行官戴楚迪（Trudy Dai）。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，我們的網站上將提供電話會議的重播。

Let me quickly cover the safe harbor. Today's discussion may contain forward-looking statements. including without limitation statements about the outlook of our businesses and our organization. Forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussion of these risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the U.S. SEC were announced on the website of Hong Kong Stock Exchange.

讓我快速覆蓋安全港。今天的討論可能包含前瞻性陳述。包括但不限於有關我們業務和組織前景的陳述。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我們當前的預期存在重大差異。有關這些風險和不確定性的詳細討論，請參閱我們在香港聯交所網站公佈的最新 20-F 表格年度報告以及向美國 SEC 提交的其他文件。

Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements except as required under applicable law. Please note that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, 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.

我們在本次電話會議中做出的任何前瞻性陳述均基於截至目前的假設，除非適用法律要求，否則我們不承擔更新這些陳述的任何義務。請注意，我們在本次電話會議中使用的某些財務指標，例如調整後的EBITDA、調整後的EBITDA 利潤率、調整後的EBITA、調整後的EBITA 利潤率、非GAAP 淨利潤、非GAAP 稀釋每股收益或美國存託股以及自由現金流以非公認會計原則（Non-GAAP）為基礎表示。

Our GAAP results and reconciliations of GAAP to non-GAAP measure can be found in our earnings press release. Unless otherwise stated, growth rate of all stated metrics mentioned during this call refers to year-over-year growth versus the same quarter last year.

我們的 GAAP 結果以及 GAAP 與非 GAAP 指標的調節可以在我們的收益新聞稿中找到。除非另有說明，本次電話會議中提到的所有指定指標的增長率均指與去年同期相比的同比增長率。

With that, I will now turn to Daniel.

說到這裡，我現在轉向丹尼爾。

Thanks, Rob. Hello, everyone. Thank you for joining our earnings call today. We started the fiscal year with a robust quarter. The latest macro data indicates some uncertainties in the pace of post-COVID recovery. But as economic and consumer activities continue to resume, our business has demonstrated encouraging trends, economics resilience, confidence in the consumption recovery and the significant potential from an integrated development of the digital economy and the real economy.

謝謝，羅布。大家好。感謝您參加今天的財報電話會議。我們以強勁的季度開始了本財年。最新的宏觀數據表明，疫情后的複蘇步伐存在一些不確定性。但隨著經濟和消費活動不斷恢復，我們的業務呈現出令人鼓舞的態勢、經濟韌性、消費復甦信心以及數字經濟和實體經濟融合發展的巨大潛力。

The solid quarter also showed promising early results of our reorganization, which is beginning to unleash new energy across our businesses. Our revenue reached RMB 234 billion, grew at 14% year-over-year and the growth was achieved across our different business segments.

穩健的季度還顯示了我們重組的可喜的早期成果，重組開始為我們的業務釋放新的活力。我們的收入達到人民幣2,340億元，同比增長14%，增長是在各個業務板塊實現的。

Our adjusted EBITDA increased 32% year-over-year to RMB 45.4 billion, showing progress in our continued focus on operating efficiency and the quality of operation. Next, our (inaudible) results of each of our major businesses. First, let me invite Trudy to share the top and Tmall Group updates.

調整後 EBITDA 同比增長 32% 至人民幣 454 億元，表明我們在持續關注運營效率和運營質量方面取得了進展。接下來是我們每項主要業務的（聽不清）結果。首先請Trudy分享一下頂級和天貓集團的最新動態。

[Interpreted] Greetings, everybody. This is Trudy, and it's my pleasure to speak with you again. In the just concluded June quarter, under our putting users first strategy, the Taobao app's user base has been put on a rapid track of growth. From April of this fiscal year, the average number of DAUs each month has grown by 6% or higher year-over-year.

【翻譯】大家好。我是特魯迪，很高興再次與您交談。在剛剛結束的六月份季度，在我們以用戶為先的策略下，淘寶應用的用戶群進入了快速增長的軌道。從本財年4月份開始，每月平均DAU數量同比增長6%或更高。

Last month, July, growth was over 7%. Based on third-party data, our DAU leadership in the e-commerce space continues to widen. More and more users are choosing to use the Taobao app. At the same time, our building a prosperous ecosystem and realizing technology-driven innovation strategies are also starting to yield results.

上個月，即 7 月份，增長率超過 7%。根據第三方數據，我們在電子商務領域的 DAU 領先地位持續擴大。越來越多的用戶選擇使用淘寶應用程序。與此同時，我們構建繁榮生態、實施科技驅動創新戰略也開始初見成效。

Since we launched the value for money battle this fiscal year, we've seen a very clear trend of merchant growth on Taobao and Tmall. In the June quarter, we on-boarded a large number of new merchants, a significant portion of whom quickly started contributing to that value for money battle, winning over and converting users. So our value for money battle will continue and will be an area of major investment.

自從我們本財年發起性價比之戰以來，我們在淘寶和天貓上看到了非常明顯的商戶增長趨勢。在六月季度，我們加入了大量新商家，其中很大一部分很快開始為這場物有所值的戰鬥做出貢獻，贏得併轉化用戶。因此，我們的物有所值之戰將繼續下去，並將成為主要投資領域。

We need to give users the experience of good merchandise is not expensive on Taobao and Tmall, and we need to guide merchants to enhance value for money in order to achieve business scale growth and long-term stable returns. In fact, we saw initial evidence of this in the June quarter. Merchant confidence in doing business on our platform increased significantly and merchant spending also grew with an increase of over 20% in the daily average number of merchants paying for advertising. This all goes to show that more and more merchants are taking Taobao and Tmall as their first choice platform for stable operation of long-term business.

我們要給用戶在淘寶、天貓上提供好商品不貴的體驗，引導商家提升性價比，以實現業務規模增長和長期穩定回報。事實上，我們在六月季度看到了這方面的初步證據。商家對在我們平台上開展業務的信心顯著增強，商家支出也隨之增長，日均支付廣告費用的商家數量增加了 20% 以上。這一切都表明，越來越多的商家將淘寶、天貓作為長期穩定經營業務的首選平台。

As for realizing technology-driven innovation, we've already upgraded merchant tools with AI, enabling merchants to open stores, launch new products, operate their businesses and conduct marketing campaigns with much greater efficiency and helping to optimize store display and product descriptions, thereby significantly enhancing the shopping experience for users.

在實現科技驅動創新方面，我們已經通過人工智能對商家工具進行了升級，讓商家開店、上新、經營、營銷活動更加高效，幫助優化店鋪展示和產品描述，從而顯著提升用戶的購物體驗。

As a result of these strategies, the Taobao and Tmall Group recorded close to RMB 80 billion in CMR this quarter, a year-over-year increase of 10%. Within that, we saw very strong willingness to invest among merchants coming to Taobao and Tmall from other platforms. As for the platform itself, we continue to be committed to reducing costs and raising efficiency. We'll spend where it makes sense to, and we'll save where we can. As a result, despite our huge investments in users in the value for money battle and in AI, the Taobao and Tmall Group recorded a [9.1%] year-on-year increase in adjusted EBITDA in the June quarter, slightly lower than CMR growth.

得益於這些策略，淘寶和天貓集團本季度的 CMR 收入接近 800 億元人民幣，同比增長 10%。其中，我們看到來自其他平台的淘寶、天貓商家的投資意願非常強烈。對於平臺本身，我們繼續致力於降本增效。我們會在有意義的地方花錢，在能節省的地方節省開支。因此，儘管我們在物有所值戰和人工智能方面對用戶進行了大量投資，但淘寶和天貓集團在六月季度的調整後 EBITDA 同比增長[9.1%]，略低於 CMR 增長。

Also during the just concluded 618 Taobao and Tmall Shopping Festival, we achieved a 2-wheel drive effect of user scale and purchasing power. The data showed that within the 2 factors that drove GMV growth during 618, growth in number of paid orders and an average order size was remarkably similar. So that means that the contribution of each of those 2 factors was balanced.

同樣在剛剛結束的618淘寶天貓購物節期間，我們實現了用戶規模和購買力的雙輪驅動效應。數據顯示，在推動618期間GMV增長的兩個因素中，付費訂單數量和平均訂單規模的增長非常相似。這意味著這兩個因素的貢獻是平衡的。

On the one hand, the number of 88 VIP members and GMV both grew by double digits year-over-year. And on the other hand, as part of our value for money battle during this year's 618, we launched for the first time a Taobao Good Price Festival, marking the first time in the history of 618 that there was a dedicated promotion channel for Taobao merchants. This Taobao Good Price Festival proved effective in promoting value for money offerings and in attracting more users from lower-tier cities and young users to visit and also to make purchases.

一方面，88家VIP會員數量和GMV同比均實現兩位數增長。另一方面，作為今年618性價比之戰的一部分，我們首次推出了淘寶好價節，這也是618歷史上第一次為淘寶商家提供專門的促銷渠道。 。此次淘寶好價節有效提升了物超所值，吸引了更多低線城市用戶和年輕用戶前來參觀購買。

So if I were to sum up the June quarter in 1 sentence, I would say, our 3 strategies of putting users first, building a prosperous ecosystem and realizing technology-driven innovation are starting to yield results. Throughout the remainder of the fiscal year, we will continue to implement these 3 key strategies.

所以如果我用一句話來總結六月這個季度，我會說，我們的用戶至上、構建繁榮生態、實現技術驅動創新的三大戰略已經開始取得成效。在本財年剩餘時間內，我們將繼續實施這三項關鍵戰略。

Specifically, first, we will do our utmost to meet the needs of diverse groups of Chinese consumers and to satisfy their demands around shopping, around consumption, and also around daily life. To do that, we will continue to invest heavily in developing content around shopping, consumption and daily life. Second, we will also continue to invest heavily in the value for money battle in 2 different ways. On the one hand, we will continue in line with our mission to support small and medium merchants with targeted programs such as those for merchants in industrial clusters and for new SME merchants. And in parallel, we will build a more advanced open and inclusive merchant ecosystem and attract more merchants to engage in the value for money battle. So as to create a virtuous cycle on Taobao and Tmall of merchant ecosystem, revenue growth, stronger profitability, and that is precisely what our mission has always been.

具體來說，第一，我們會盡力滿足中國消費者多元化群體的需求，滿足他們購物、消費、日常生活的需求。為此，我們將繼續大力投資開發圍繞購物、消費和日常生活的內容。其次，我們還將繼續以兩種不同的方式大力投資性價比之戰。一方面，我們將繼續秉承支持中小商戶的使命，開展產業集群商戶、中小企業新商戶等針對性項目。同時，我們將打造更加先進、開放、包容的商戶生態，吸引更多商戶參與到性價比之戰中。從而打造淘寶、天貓商戶生態的良性循環，收入增長，盈利能力更強，這正是我們一直以來的使命。

Third, we'll continue to invest in AI. It is our conviction that technology creates commercial value. Taobao and Tmall have the largest collection of merchants and of merchandise on the Internet and are the most fertile soil anywhere on the Internet to explore AI applications. Hence, in this technological revolution, the Taobao app has the greatest potential to become a one-stop smart portal for life and consumption enabled by AI, satisfying the broadest variety of diverse needs across our huge base of 1 billion users.

第三，我們將繼續投資人工智能。我們堅信，科技創造商業價值。淘寶、天貓擁有互聯網上最多的商家和商品集合，是互聯網上探索人工智能應用最肥沃的土壤。因此，在這場技術革命中，淘寶最有潛力成為人工智能賦能的一站式生活消費智慧門戶，滿足10億龐大用戶群體最廣泛的多樣化需求。

At Alibaba, we often say Seeing is believing. I'm confident as CEO that over this 3-year management cycle, with the execution of these 3 key strategies, the Taobao and Tmall Group will create a virtuous investment cycle from investment in users and user growth leading to merchant growth, leading to transaction growth, further leading to revenue and profit growth and feeding back into further investment in users and user growth.

在阿里巴巴，我們常說眼見為實。作為CEO，我有信心在這三年的管理週期中，通過這三大戰略的執行，淘寶和天貓集團將形成一個從用戶投資、用戶增長到商戶增長、交易的良性投資循環。增長，進一步導致收入和利潤增長，並反饋到對用戶和用戶增長的進一步投資。

Along the way, even though, there will likely be occasional months with volatility or setbacks in our operations under the leadership of the Taobao and Tmall Group's Board of Directors and management team, we will remain firmly committed to our 3 key strategies to continuing to invest in users, providing strong support for merchants and upgrading our platform with technology for the long-term, and we're fully confident in the results we will achieve for the long-term. Thank you very much.

在此過程中，儘管在淘寶和天貓集團董事會和管理團隊的領導下，我們的運營可能偶爾會出現波動或挫折，但我們將堅定地致力於繼續投資的三大關鍵戰略為用戶提供強有力的支持，為商家提供長期的技術支持和平台升級，我們對長期取得的成果充滿信心。非常感謝。

Now I will share the updates on our other major businesses. Alibaba International Digital Commerce Group, AIDC, delivered 41% overall revenue growth this quarter, and its retail business achieved 60% revenue growth year-over-year. This was driven by solid order growth of our international retail (inaudible) places at around 25% year-over-year growth.

下面我就分享一下我們其他主要業務的最新情況。阿里巴巴國際數字商務集團（AIDC）本季度整體收入增長41%，零售業務收入同比增長60%。這是由我們的國際零售（聽不清）訂單穩健增長推動的，同比增長約 25%。

Advertising revenue growth because of the enhancement of our monetization and higher direct sales revenue contribution as AliExpress expands its new choice model. Lazada also delivered a record order growth based on its [differentiated] country strategy, accelerating progress in high-priority markets such as Philippines and Thailand.

廣告收入的增長是由於我們的貨幣化增強以及速賣通擴展其新選擇模式帶來的更高的直接銷售收入貢獻。 Lazada 還基於其[差異化]國家戰略實現了創紀錄的訂單增長，加速了菲律賓和泰國等高優先市場的進展。

In Turkey, Trendyol continued to maintain its growth momentum and market leadership. We are starting to see economics of scale in our international retail businesses as enhancing monetization and operating efficiency reduced adjusted EBITDA loss.

在土耳其，Trendyol 繼續保持增長勢頭和市場領導地位。我們開始看到國際零售業務的規模經濟效益，因為貨幣化和運營效率的提高減少了調整後的 EBITDA 損失。

AIDC's adjusted EBITDA loss decreased by [70%] year-over-year during the quarter. Looking ahead, we will continue to expand the choice model, leverage the capabilities of an integrated cross-border supply chain and enhanced consumer experience with higher certainty in logistics and service level. This plan is to expand the choice model from AliExpress to certain of our other retail platforms with upgrading our product and services, especially in providing a better localized experience.

AIDC 本季度調整後 EBITDA 虧損同比下降 [70%]。展望未來，我們將繼續拓展選擇模式，發揮跨境供應鏈一體化能力，以更高的物流和服務水平確定性提升消費者體驗。該計劃旨在通過升級我們的產品和服務，特別是提供更好的本地化體驗，將選擇模式從速賣通擴展到我們的某些其他零售平台。

During the quarter, revenue from local service group grew 30% year-over-year, driven by strong combined order growth across both Ele.me and Amap. Amap's daily active users and To-Destination services expanded due to the strong recovery in community and travel demand after the panic measures were lifted. With a long-term strategic focus on technology leadership, Amap released new product features such as [traffic light] comedown and a tunnel navigation during the quarter, which were well received by its users.

本季度，在餓了麼和高德地圖訂單綜合強勁增長的推動下，本地服務集團收入同比增長 30%。由於恐慌措施解除後社區和出行需求的強勁復甦，高德地圖的日活躍用戶和目的地服務有所擴大。高德地圖長期以技術領先為戰略重點，本季度發布了【紅綠燈】下降、隧道導航等新產品功能，受到用戶好評。

Its market share in map navigation services continue to expand. During the quarter, Ele.me focused on investing in its own service capability enhancement and a more inclusive partnership strategy, which helped sustain healthy order growth while maintaining positive unit economics.

地圖導航服務市場份額不斷擴大。本季度，餓了麼重點投資於自身服務能力的提升和更具包容性的合作夥伴戰略，這有助於維持健康的訂單增長，同時保持積極的單位經濟效益。

Taobao's revenue during the quarter grew 34% year-over-year, primarily driven by the volume increase of international fulfillment solutions services, meaning survey AliExpress and the Cainiao domestic consumer logistics services. Cainiao adjusted EBITDA of the quarter was RMB 877 million due to the continued focus on quality of operation and lower transportation costs as international air cargo price came down.

淘寶本季度的收入同比增長 34%，主要受到國際配送解決方案服務量增長的推動，這意味著速賣通和菜鳥國內消費物流服務的調查。由於持續關注運營質量以及國際航空貨運價格下降導致運輸成本降低，菜鳥本季度調整後 EBITDA 為人民幣 8.77 億元。

Looking ahead, Cainiao will continue to invest build logistic network for cross-border and domestic parcels and leveraging Alibaba's multiple digital commerce use cases to expect its network effect. Cainiao will also share part of its savings from this operating efficiency improvement and the transportation cost reduction with its customers through price strategy adjustments and pursue higher economics of scale on a larger revenue base.

展望未來，菜鳥將繼續投資建設跨境及國內包裹物流網絡，並利用阿里巴巴的多個數字商務用例來期待其網絡效應。菜鳥還將通過價格策略調整，與客戶分享運營效率提升和運輸成本降低帶來的部分節省，在更大的收入基礎上追求更高的規模經濟。

During the quarter, Alibaba Cloud revenue grew 4% year-over-year. The growth rate was negatively impacted by the normalization of CDN demand as usage of video streaming, remote working and remote learning came down when offline activities resumed after pandemic measures were lifted. The growth rate was also partially impacted by revenue decline from a top customer.

本季度，阿里雲收入同比增長4%。隨著疫情措施解除後線下活動恢復，視頻流、遠程工作和遠程學習的使用量下降，CDN 需求正常化對增長率產生了負面影響。增長率也部分受到頂級客戶收入下降的影響。

In the past quarter, we have received strong demand for model training and related AI services on cloud infrastructure, which were only partially fulfilled due to the near-term supply chain constraints globally. We believe the growth opportunity driven by AI services have just begun. We believe that technology evolution both by AI is not a short-term opportunity but the beginning of a new era as one of the world's leading cloud service provider.

在過去的季度中，我們收到了對雲基礎設施上的模型訓練和相關人工智能服務的強勁需求，但由於近期全球供應鏈的限制，這些需求僅部分滿足。我們相信人工智能服務驅動的增長機會才剛剛開始。我們相信，人工智能的技術演進不是一個短期機遇，而是作為世界領先的雲服務提供商之一的新時代的開始。

We will continue to invest in forming a full spec product and technology leadership across us, (inaudible) layer. This is key for us in capturing AI opportunity and set 18 advantage for AliCloud versus other players in China which mainly focused on one of the layers. We will leverage and expand this advantage when serving the needs of our customers including training and service needs for large language start-ups as well as industry demand for customized models and vertical models.

我們將繼續投資，在我們（聽不清）層形成完整規格的產品和技術領先地位。這對於我們抓住人工智能機會至關重要，並為阿里雲相對於中國其他主要專注於其中某一層的其他參與者設定了 18 個優勢。我們將利用並擴大這一優勢，滿足客戶的需求，包括大型語言初創企業的培訓和服務需求，以及行業對定制模型和垂直模型的需求。

We believe the high performance and the low-cost computing power required for model training and services will open up brand-new opportunities for cloud computing services. Over the long-term, Alibaba Cloud will benefit from application of AI in all industries.

我們相信模型訓練和服務所需的高性能和低成本的計算能力將為雲計算服務帶來全新的機遇。從長遠來看，阿里雲將受益於人工智能在各行業的應用。

In the (inaudible) layer, we have built model scope a leading open source online community in China for models and the related tools and services, which is very popular among developers. The community hosted over 1,000 AI models, including Meta's recently released Llama 2 and our own open source model, the parameter version of [Tongyi Qianwen].

在（聽不清）層，我們建立了模型範圍，一個中國領先的模型開源在線社區以及相關工具和服務，深受開發者歡迎。社區託管了 1000 多個 AI 模型，包括 Meta 最近發布的 Llama 2 和我們自己的開源模型【統一前文】的參數版本。

We believe the aggregation and engagement of a model ecosystem will significantly help developers optimize their model and use services on Alibaba Cloud. Since April, we released our own large language model, Tongyi Qianwen order to test transcription platform, [Tongyi Tingwu] and test image model in Tongyi Wanxiang, which together have accumulated millions of users.

我們相信模型生態系統的聚合和參與將極大地幫助開發者優化他們的模型並使用阿里雲上的服務。 4月份以來，我們在統一萬向發布了自己的大型語言模型統一千文訂單測試轉錄平台【統一聽屋】和測試圖像模型，已經積累了數百萬用戶。

In this quarter, Alibaba Cloud's adjusted EBITDA reached RMB 387 million, representing year-over-year growth of 106%. This is mainly due to the reduced co-location and bandwidth costs of DingTalk as a result of normalized usage after the pandemic as well as enhanced product mix and efficiency improvement, for example, server utilization in our cloud business. We will continue to focus on quality of operation. And as we continue to scale up, we will work to achieve economies of scale that will deliver long-term operating benefits and contribute to our profitability.

本季度，阿里雲調整後EBITDA達到3.87億元人民幣，同比增長106%。這主要是由於疫情后使用常態化，釘釘的主機託管和帶寬成本降低，以及產品組合的增強和效率的提高，例如雲業務的服務器利用率。我們將繼續關注運營質量。隨著我們不斷擴大規模，我們將努力實現規模經濟，從而帶來長期運營效益並提高我們的盈利能力。

Our digital media entertainment business group delivered 36% revenue growth year-over-year and the first ever quarter of profitability. This was a result of the following factors. Number one, increased growth in subscription revenue. Number two, higher revenue contribution from Damai and the (inaudible), which both benefited from the recovery of off-line shows and cinemas after the pandemic.

我們的數字媒體娛樂業務部門收入同比增長 36%，並首次實現盈利。這是由於以下因素造成的。第一，訂閱收入的增長。第二，大麥和（聽不清）的收入貢獻增加，這兩者都受益於疫情后線下演出和電影院的複蘇。

Number three, Alibaba Pictures launched of several blockbusters and the robust China box-office demand during the quarter. Going forward, we will continue to improve our content production capabilities and enhance DME's business operating results through high-quality content creation and distribution.

第三，阿里影業推出多部大片，本季度中國票房需求強勁。未來，我們將繼續提升內容製作能力，通過高質量的內容創作和發行，提升DME的經營業績。

In July, we published our fiscal year 2023 ESG report. Over the past year, we have made progress across the 7 strategic dimensions of social responsibilities, especially in restoring our green climate. We achieved solid emission reduction under Scope 1, 2 and 3. We drove a emission reduction across our business ecosystem which was roughly equivalent to the total annual greenhouse gas emissions of 1 million average household in China.

7 月，我們發布了 2023 財年 ESG 報告。過去一年，我們在社會責任七大戰略層面取得了進展，特別是在恢復綠色氣候方面。我們在範圍一、二、三方面實現了紮實的減排。我們推動了整個業務生態系統的減排量，大致相當於中國100萬個普通家庭每年的溫室氣體排放總量。

Leveraging our unique position, connecting consumers and merchants our product innovation, carbon 88 [ledger] platform enables our customers and merchants to join the carbon saving efforts across our ecosystem. Following the announcement of our [1+6+N] reorganization in March, the 6 business groups have started operating in a new way under the leadership of their respective Boards. The past quarter's solid performance was also a reflection of early results of this change and further enhance our confidence towards the future.

利用我們獨特的地位，將我們的產品創新與消費者和商家聯繫起來，carbon 88 [分類賬] 平台使我們的客戶和商家能夠加入我們整個生態系統的碳節約工作。繼3月份宣布[1+6+N]重組後，六大事業群在各自董事會的領導下開始了新的運作。過去一個季度的穩健表現也反映了這一變革的早期成果，並進一步增強了我們對未來的信心。

As part of the new governance framework, we are also further strengthened the company's capital management. Moving ahead with our various programs to improve shareholder return under the leadership of the newly established capital management committee. The capital market projects we announced last quarter are all underway, and we have also been continuing sharing -- continuing share repurchase activities in the market. We will update you -- we will keep you updated on the progress in the future.

作為新治理框架的一部分，我們還進一步加強了公司的資本管理。在新成立的資本管理委員會的領導下，紮實推進各項提高股東回報的工作。我們上季度宣布的資本市場項目都在進行中，我們也一直在繼續分享——繼續在市場上進行股票回購活動。我們將向您通報最新進展——我們將隨時向您通報未來的進展情況。

Lastly, this will be the 36th earnings call I have participated since our IPO in 2014 and the final one as Chairman and CEO of Alibaba Group. This truly has been a privilege of a lifetime to lead the company by CEO on our 3 strategies of consumption, cloud computing and globalization since 2015 and be a part of Alibaba's high growth period.

最後，這將是我自 2014 年 IPO 以來參加的第 36 次財報電話會議，也是我作為阿里巴巴集團董事長兼首席執行官的最後一次。自2015年以來，CEO帶領公司實施消費、雲計算和全球化三大戰略，並成為阿里巴巴高速增長時期的一部分，這確實是我一生的榮幸。

As Chairman, it was an extraordinarily experience to take on the challenges brought on by the pandemic and unprecedented change in the macro environment over the past 4 years. This has been an incredible -- invaluable life experience. I sincerely thank our shareholders and analysts for your trust and support over the years. This quarter is combination of my 8 year leadership of Alibaba and the start of my new journey. I hope you continue to support Joe and Eddy and the new management team. As Cloud Intelligence Group moved towards becoming a public company, I look forward to reengaging with everyone in my new role in the journey ahead.

作為董事長，四年來應對疫情和宏觀環境前所未有的變化帶來的挑戰是一次非凡的經歷。這是一次令人難以置信的、無價的人生經歷。我衷心感謝我們的股東和分析師多年來的信任和支持。這個季度是我領導阿里巴巴八年的結合，也是我新征程的開始。我希望您繼續支持喬和艾迪以及新的管理團隊。隨著雲智集團邁向成為一家上市公司，我期待著在未來的旅程中以我的新角色與大家重新互動。

Thank you, everyone. Now I will pass to Toby to go through the financial updates.

謝謝大家。現在我將請託比了解最新的財務情況。

Thank you, Daniel. Due to the strong business momentum and our focus operating efficiency across businesses, we achieved a robust financial performance in the past quarter.

謝謝你，丹尼爾。由於強勁的業務勢頭和我們對各業務運營效率的關注，我們在過去一個季度實現了強勁的財務業績。

Total consolidated revenue was RMB 234.2 billion, an increase of 14%. Consolidated adjusted EBITDA increased by RMB 11 billion or 32% to RMB 45.4 billion in the quarter due to improvements across all business segments. Non-GAAP diluted earnings per share was RMB 2.17, an increase of 48%. Additionally, during the quarter, we repurchased USD 3.1 billion worth of our shares, which accounted for 1.4% of total shares outstanding. This is supported by our continuous generation of strong free cash flow.

合併總收入為人民幣2,342億元，增長14%。由於所有業務部門的改善，本季度合併調整後 EBITDA 增加了 110 億元人民幣，即 32%，達到 454 億元人民幣。非美國通用會計準則攤薄每股收益為人民幣2.17元，增長48%。此外，本季度我們回購了價值31億美元的股票，佔已發行股票總數的1.4%。這是我們不斷產生的強勁自由現金流的支持。

During the quarter, free cash flow was RMB 39.1 billion or USD 5.4 billion, an increase of 76% year-over-year. Our strong free cash flow and balance sheet continue to put us in excellent position to strengthen our competitiveness and capture new opportunities.

本季度自由現金流為 391 億元人民幣（54 億美元），同比增長 76%。我們強勁的自由現金流和資產負債表繼續使我們處於增強競爭力和抓住新機遇的有利位置。

Now let's look at the cost trends as a percentage of revenue, excluding SBC. Cost of revenue ratio, excluding SBC, decreased 1 percentage point to 61% during this quarter. Product development expense ratio decreased 1 percentage point to 4% during this quarter. Sales and marketing expense ratio remained stable at 12% in this quarter, and general and administrative expenses ratio remained stable at 4% in this quarter.

現在讓我們看看成本佔收入的百分比趨勢（不包括 SBC）。本季度收入成本率（不包括 SBC）下降 1 個百分點至 61%。本季度產品開發費用率下降 1 個百分點至 4%。本季度銷售及營銷費用率穩定在12%，本季度一般及管理費用率穩定在4%。

Our net income was RMB 33 billion, an increase of RMB 12.7 billion compared to the same quarter last year. The increase was primarily attributable to the increase in income from operations and the increase in share of results of equity method investees partly offset the net losses arising from the decrease in market prices of our equity investments in publicly traded companies compared to net gains from these investments in the same quarter last year.

我們的淨利潤為人民幣330億元，比去年同期增加人民幣127億元。增加的主要原因是營業收入的增加以及權益法投資對象業績份額的增加部分抵消了我們對上市公司股權投資的市場價格相對於這些投資的淨收益下降而產生的淨損失去年同一季度。

As of June 30, 2023, we continue to maintain a strong net cash position of RMB 419.2 billion or USD 57.8 billion. Free cash flow this quarter was RMB 39.1 billion, an increase of 76%. The increase reflected an improvement on profitability and a decrease in capital expenditure.

截至 2023 年 6 月 30 日，我們繼續保持強勁的淨現金頭寸，達 4,192 億元人民幣（578 億美元）。本季度自由現金流為人民幣391億元，增長76%。這一增長反映了盈利能力的提高和資本支出的減少。

Now let's look at the segment results. Starting this quarter, we have implemented a new organizational and governance structure, under which we now have 6 major business groups and various other businesses. Accordingly, our segment reporting has been updated to reflect our reorganization under our updated segment reporting segment revenue and adjusted EBITDA are presented before consolidation adjustments. We have also provided revenue and adjusted EBITDA trend of each business groups for the last 5 consecutive quarters in the appendix of the earnings presentation for easy reference. Now let's look at the Taobao and Tmall Group.

現在讓我們看看分段結果。從本季度開始，我們實施了新的組織和治理架構，目前擁有6大業務集團和各種其他業務。因此，我們的分部報告已更新，以反映我們根據更新的分部報告進行的重組，分部收入和調整後的 EBITDA 在合併調整之前列報。我們還在財報附錄中提供了各業務集團最近連續5個季度的營收及調整後EBITDA趨勢，以供參考。現在我們看看淘寶和天貓集團。

The user first strategy of Taobao Tmall Group is yielding positive user growth momentum and improving user retention on Taobao app, which we have supported strong revenue growth and successful June 18 shopping festival during the quarter. Revenue for Taobao and Tmall Group was RMB 115 billion, an increase of 12%. Customer management revenue increased by 10% to RMB 79.7 billion, primarily due to increase in number of paying merchants, increasing merchants' willingness to invest in advertising on our platform and increase in online physical GMV, excluding unpaid orders.

淘寶天貓集團的用戶至上戰略正在產生積極的用戶增長勢頭並提高淘寶應用程序的用戶保留率，這支持了我們在本季度的強勁收入增長和 6 月 18 日購物節的成功。淘寶和天貓集團收入為人民幣1150億元，增長12%。客戶管理收入增長10%至人民幣797億元，主要由於付費商戶數量增加、商戶在平台上投資廣告的意願增加以及線上實體GMV（不包括未支付訂單）的增加。

Direct sales and others revenue increased 21% to RMB 30.2 billion, primarily due to strong sales driven by the consumer electronics category. Taobao and Tmall Group adjusted EBITDA increased by 9% to RMB 49.3 billion. The increase was primarily due to the increase in profit from customer management service and the narrowing losses in certain businesses which was partially offset by Taobao Tmall Group's investments in growing Taobao app users that has resulted in increasing DAU of 6.5%.

直接銷售及其他收入增長 21% 至人民幣 302 億元，主要由於消費電子產品類別的強勁銷售推動。淘寶和天貓集團調整後的 EBITDA 增長 9%，達到人民幣 493 億元。這一增長主要是由於客戶管理服務利潤的增加以及某些業務虧損的收窄，但淘寶天貓集團對不斷增長的淘寶應用用戶的投資導致日活躍用戶增加了6.5%，部分抵消了這一增長。

Alibaba International Digital Commerce Group revenue was RMB 22.1 billion, an increase of 41%. Revenue from international commerce retail business increased by 60% to RMB 17.1 billion. The increase was primarily due to solid performance of all major retail platforms and improvements in monetization Revenue from our international commerce wholesale business remained stable at RMB 5 billion compared to the same quarter last year.

阿里巴巴國際數字商務集團營收為人民幣221億元，增長41%。國際商業零售業務收入增長60%至人民幣171億元。這一增長主要得益於所有主要零售平台的穩健表現以及貨幣化的改善。與去年同期相比，我們的國際商業批發業務收入穩定在人民幣 50 億元。

AIDC's adjusted EBITDA loss narrowed by RMB 960 million to a loss of RMB 420 million in June quarter. Loss is significantly narrowed year-over-year primarily because of improved margins of Trendyol and Lazada, partly offset by the increase in investments in new businesses such as Miravia and AliExpress’ Choice.

AIDC 6 月份季度調整後 EBITDA 虧損收窄 9.6 億元人民幣，至虧損 4.2 億元人民幣。虧損同比大幅收窄，主要是因為 Trendyol 和 Lazada 的利潤率有所提高，但部分被 Miravia 和 AliExpress Choice 等新業務投資的增加所抵消。

Trendyol continued to deliver strong order growth in both of its e-commerce and the local consumer service businesses through robust revenue growth and continuing improvement in operating efficiency. For the first time, Trendyol achieved positive operating results during the quarter. The reduced loss from Lazada is primarily due to improvement in monetization. Local services group revenue in June quarter grew 30% to RMB 14.5 billion, primarily due to robust GMV growth of Ele.me and the rapid order growth of Amap.

通過強勁的收入增長和運營效率的持續提高，Trendyol 的電子商務和本地生活服務業務的訂單繼續強勁增長。 Trendyol 在本季度首次取得了積極的運營業績。 Lazada 虧損減少主要是由於變現能力的改善。本地服務集團6月份季度收入增長30%至人民幣145億元，主要得益於餓了麼GMV的強勁增長和高德地圖訂單的快速增長。

Local service Group adjusted EBITDA was a loss of RMB 2 billion this quarter compared to a loss of RMB 2.8 billion in the same quarter last year, reflecting the continued narrowing of losses driven by Ele.me's order growth and the positive unit economics per order as well as rapid order growth of Amap driven by market demand.

本季度本地服務集團調整後 EBITDA 虧損 20 億元人民幣，而去年同期為虧損 28 億元人民幣，反映出餓了麼訂單增長帶動虧損持續收窄，以及單位訂單經濟效益為正值。以及市場需求帶動的高德訂單快速增長。

Total revenue from Cainiao grew 34% to RMB 23.2 billion, primarily contributed by the increase in revenue from international fulfillment solution services and domestic consumer logistics services. Cainiao adjusted EBITDA was a profit of RMB 877 million compared to a loss of RMB 185 million in the same quarter last year.

菜鳥總收入增長34%至232億元人民幣，主要得益於國際履約解決方案服務和國內消費物流服務收入的增長。菜鳥調整後 EBITDA 實現盈利 8.77 億元人民幣，而去年同期則虧損 1.85 億元人民幣。

Profitability turned positive year-over-year primarily because of improved operating results from international fulfillment solution services and domestic consumer logistics services.

盈利能力同比轉正主要是由於國際履行解決方案服務和國內消費物流服務的經營業績改善。

Revenue from Cloud Intelligence Group was RMB 25.1 billion in June quarter, an increase of 4%. The revenue growth was mainly driven by Alibaba consolidated businesses and the customers within financial services, education, electric power and automobile industries partly offset by our proactive efforts to manage revenue from project-based cloud services.

雲智能集團6月份季度收入為人民幣251億元，增長4%。收入增長主要由阿里巴巴綜合業務以及金融服務、教育、電力和汽車行業客戶推動，部分被我們積極管理基於項目的雲服務收入的努力所抵消。

Cloud adjusted EBITDA was increased by 106% to RMB 387 million, primarily due to reduced co-location and bandwidth cost of DingTalk as a result of normalization of usage as compared to the same quarter last year.

雲調整後的 EBITDA 增長 106% 至人民幣 3.87 億元，主要由於使用正常化導致釘釘主機代管和帶寬成本較去年同期下降。

Revenue from our DME Group was RMB 5.4 billion, an increase of 36% on primarily driven by growth of online entertainment business as well as a strong recovery of off-line entertainment business. Adjusted EBITDA recorded a profit of RMB 63 million compared to a loss of RMB 907 million. The improved adjusted EBITDA was mainly due to the increase in revenue from Alibaba Pictures in Damai.

DME集團收入為人民幣54億元，增長36%，主要得益於在線娛樂業務的增長以及線下娛樂業務的強勁復甦。調整後 EBITDA 錄得利潤 6,300 萬元人民幣，而虧損為 9.07 億元人民幣。調整後EBITDA的改善主要是由於阿里影業在大麥的收入增加。

Revenue from all other segments increased slightly by 1% to RMB 45.5 billion, primarily due to the revenue growth contributed by Alibaba Health, Fliggy, Freshippo and Intelligent Information Platform, partly offset by the decrease in revenue from Sun Art due to decrease in ticket size resulted from the decrease in customer stockpiling behavior compared to the same quarter last year.

所有其他分部收入小幅增長 1%至人民幣 455 億元，主要由於阿里健康、飛豬、盒馬鮮生和智能信息平台貢獻的收入增長，部分被高鑫零售因客票規模減少帶來的收入減少所抵消與去年同期相比，客戶囤貨行為有所減少。

Adjusted EBITDA from all other segment was a loss of RMB 1.2 billion compared to a loss of RMB 2.3 billion in the same quarter last year, primarily due to improved operating results from Freshippo, Lingxi Games and Fliggy.

所有其他部門調整後的 EBITDA 為虧損人民幣 12 億元，而去年同期為虧損人民幣 23 億元，主要是由於盒馬、靈犀遊戲和飛豬的經營業績改善。

Thank you. And that's the end of our prepared remarks. We can open up for Q&A.

謝謝。我們準備好的發言就到此結束。我們可以開放問答。

On 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 transcript of this call will be available on our website within 1 week after the meeting.

在今天的電話會議上，歡迎您用中文或英文提問。第三方翻譯將為問答環節提供交替傳譯。請注意，翻譯僅供方便之用。如有任何差異，以我們的原始語言管理聲明為準。如果您無法聽到中文翻譯，會議後 1 週內將在我們的網站上提供本次電話會議的雙語文字記錄。

Operator, please connect the speaker in SI conference line now. Please start the Q&A session already. Thank you.

操作員，請立即連接 SI 會議線路中的揚聲器。請開始問答環節。謝謝。

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

（操作員說明）您的第一個問題來自高盛的 Ronald Keung。

Can you share -- can management share just how have broader consumption trends been tracking after a pretty strong June 18 shopping festival. And following on that within the Taobao Tmall Group, besides the DAU, DAC metrics that are KPIs, how are we thinking about the balance between Taobao Tmalls, for example, other metric, which is market share, versus our Taobao Tmall Group, the absolute profit level if we think of it on a 3-year horizon.

您能否分享一下——管理層能否分享一下，在 6 月 18 日的購物節之後，更廣泛的消費趨勢是如何跟踪的？接下來在淘寶天貓集團內部，除了DAU、DAC這些KPI指標之外，我們如何考慮淘寶天貓之間的平衡，例如其他指標，即市場份額，與我們淘寶天貓集團，絕對值之間的平衡如果我們從三年的角度來考慮的話，就是利潤水平。

[Interpreted] Thanks for those questions. Let me start with your first question about consumption trends. Indeed, as we've seen there is a gradual recovery underway in the Chinese economy and the Chinese government indeed has made many efforts to stimulate economic growth and drive consumption.

[解釋]謝謝你提出這些問題。讓我首先回答你關於消費趨勢的第一個問題。事實上，正如我們所看到的，中國經濟正在逐步復甦，中國政府也確實為刺激經濟增長、拉動消費做出了很多努力。

When it comes to the other KPIs, you asked about market share and profitability, I think that, that comes down to the 3 key strategies we're pursuing around growing user scale, building a prosperous ecosystem and realizing technology-driven innovation. We're looking at creating a virtuous investment cycle by investing in users and user growth, leading to merchant growth, driving higher revenues and then being able to further reinvest in growing users and user scale. So that's the positive cycle we'll be creating.

至於其他KPI，你問到市場份額和盈利能力，我認為這歸結為我們圍繞擴大用戶規模、構建繁榮生態系統和實現技術驅動創新所追求的三個關鍵戰略。我們正在尋求通過投資用戶和用戶增長來創建良性投資循環，從而帶動商家增長，推動更高的收入，然後能夠進一步對不斷增長的用戶和用戶規模進行再投資。這就是我們將要創造的良性循環。

Looking into the future, there certainly will be uncertainties ahead of us on this road. But I think faced with all these uncertainties and potential volatility, the greatest certainty we have is the need to continue to grow our user scale and our merchant scale. And we are very optimistic that as long as we can maintain our leadership in terms of user and merchant scale that the mid- to long-term view of profitability and market share will be excellent.

展望未來，這條道路上肯定還存在著不確定性。但我認為面對所有這些不確定性和潛在的波動，我們最大的確定性是需要繼續擴大我們的用戶規模和商戶規模。我們非常樂觀地認為，只要我們能夠在用戶和商戶規模方面保持領先地位，中長期的盈利能力和市場份額將會非常出色。

Your next question comes from Alicia Yap with Citigroup.

您的下一個問題來自花旗集團的 Alicia Yap。

[Interpreted] Congratulations to you and all the best on your new journey. So looking at the excellent growth numbers you've reported in DAUs and also in 88VIP members, double-digit growth there. And if management could give us a little more detailed information on what lies behind those numbers, for example, in terms of new users, where are they coming from? How are they being acquired? Are they mostly coming from lower-tier cities? And how do those new users compare with existing users in terms of their willingness to spend and their spending power.

[解讀]祝賀您，祝您新的旅程一切順利。因此，看看您報告的 DAU 和 88VIP 會員的出色增長數字，兩位數的增長。如果管理層可以向我們提供更多關於這些數字背後的信息，例如新用戶的詳細信息，他們來自哪裡？它們是如何被收購的？他們大多來自二三線城市嗎？這些新用戶與現有用戶的消費意願和消費能力相比如何。

And when we look at the 88VIP members and the growth there, what's primarily driving that? And are we looking more at a higher frequency of purchase that they're making? Or is it more purchases they're making big ticket items in some categories?

當我們觀察 88VIP 會員及其增長時，主要推動因素是什麼？我們是否更多地關注他們更高的購買頻率？或者是他們在某些類別中購買了更多大件商品？

And then looking at these trends, do you think they'll continue on into July? And then finally, I'm just wondering, given the weakness that remains in the economy, how accurate do you think our forecasts are of trends going forward and our ability to realize our objectives.

然後看看這些趨勢，您認為它們會持續到七月嗎？最後，我只是想知道，考慮到經濟仍然疲軟，您認為我們對未來趨勢以及我們實現目標的能力的預測有多準確。

[Interpreted] I'll start with your first question on the increase in DAUs and where new users are coming from. And I would firstly say that our value for money battle we've been investing in developing value for money offerings has very much been paying off.

[解讀]我先回答你的第一個問題，即DAU的增長以及新用戶來自哪裡。我首先要說的是，我們一直在開發物有所值產品方面進行的物有所值之戰已經取得了很大的回報。

At the last earnings call, we discussed our 3 key strategies. So there are several reasons underlying the good performance that you've seen in the June quarter, and I will set out a few of them for you below.

在上次財報電話會議上，我們討論了 3 個關鍵策略。因此，您在六月季度看到的良好業績有幾個原因，我將在下面為您列出其中的一些原因。

First is improvement in the macroeconomic environment and recommencement of consumption, coupled with higher penetration of online purchasing within retail.

首先是宏觀經濟環境的改善和消費的重啟，加上網上購物在零售業的滲透率提高。

Secondly, we're starting to see payoff from our investments in this value for money battle, bringing to the market an increasing assortment of good items at good prices, developing that supply and attracting users with this proposition. And we are indeed seeing among paying users an increasing proportion of new users coming from lower-tier cities or being young people or being older consumers.

其次，我們開始看到我們在這場物有所值之戰中的投資的回報，以優惠的價格向市場提供越來越多的優質商品，開發供應並以此主張吸引用戶。我們確實看到，在付費用戶中，來自低線城市、年輕人或老年消費者的新用戶比例不斷增加。

Looking at the numbers from this year's 6.18 Shopping Festival, we see several trends there that will also help to answer your question about the 88 VIP members and the proportion of sales to those members.

從今年6.18購物節的數據來看，我們看到了幾個趨勢，這也有助於回答您關於88位VIP會員以及這些會員的銷售額比例的問題。

Again, we've seen a strong interest on the part of users in value for money offerings. And in the 6.18 Shopping Festival, we've certainly seen a lot of new young consumers coming to take part.

我們再次看到用戶對物有所值的產品表現出濃厚的興趣。而在6.18購物節中，我們當然也看到了很多新的年輕消費者前來參加。

Another driver of sales this year has been the launch of new products with 3 million new brands being launched by products on Tmall at this year's 6.18, driving significant sales in consumer electronics, appliances, apparel and other categories.

今年的另一個銷售拉動是新品的推出，今年6.18天貓上的產品推出了300萬個新品牌，帶動了消費電子、家電、服裝等品類的大幅銷售。

So coming back to the 88VIP members, what we see certainly is they're attracted by those new products that are being launched as well as by the broadened assortment of quality offerings.

回到 88VIP 會員，我們看到的當然是他們被正在推出的新產品以及種類繁多的優質產品所吸引。

Your next question comes from Gary Yu with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Gary Yu。

I have 1 question related to cloud and a follow-up on AI. Just wanted to check when do we expect to see cloud revenue grow to kind of further accelerate to a higher level given there appears to be some reluctancy for corporate spend on IT spending? And a related question on AI is given the fast adoption of AI offerings that we have launched recently, how should we look at the timeline and roadmap from a regulatory and also monetization standpoint?

我有 1 個與雲相關的問題和一個有關人工智能的後續問題。只是想檢查一下，鑑於企業在 IT 支出上的支出似乎有些不情願，我們預計何時會看到雲收入增長進一步加速到更高水平？關於人工智能的一個相關問題是，考慮到我們最近推出的人工智能產品的快速採用，我們應該如何從監管和貨幣化的角度看待時間表和路線圖？

[Interpreted] I think if you look at the cloud landscape in China, I think the total cloud infra as a percentage of the IT infra still in a lower -- actually, in a relatively low percentage as compared to the U.S. peers. So we still -- we see still the huge potential first in this cloud infra penetration.

[解讀]我認為，如果你看看中國的雲格局，我認為總體雲基礎設施佔 IT 基礎設施的比例仍然較低——實際上，與美國同行相比，比例相對較低。因此，我們仍然首先看到雲基礎設施滲透率的巨大潛力。

Secondly, I think with this AI revolution, I think that this brings incremental opportunities. And because today, all the companies want to use our AI capabilities to upgrade their services and in their own application. So -- but they need a high computing -- high-performance computing power to support this operation, not only in today's training, but also in the influence services to be provided. So I think these 2 are, we believe, the primary growth engine for the long-term.

其次，我認為隨著這場人工智能革命，我認為這會帶來增量機會。因為今天，所有公司都希望使用我們的人工智能功能來升級他們的服務和自己的應用程序。所以——但他們需要高計算——高性能的計算能力來支持這個操作，不僅在今天的訓練中，而且在要提供的影響力服務中。所以我認為，我們相信，這兩個是長期的主要增長引擎。

If you look at our own performance, I think right now, we are taking some time to digest some impact from the, first, from the decline of the demand post-pandemic, as we said in our script, for example, for many services relating to remote work, remote education as well as the online streaming, the demand, obviously, is lower post-pandemic, which I think is a very important factor to drive our growth rate.

如果你看看我們自己的表現，我認為現在我們正在花一些時間來消化一些影響，首先是大流行後需求下降的影響，正如我們在腳本中所說，例如，對於許多服務與遠程工作、遠程教育以及在線流媒體相關的需求顯然在疫情后有所下降，我認為這是推動我們增長率的一個非常重要的因素。

And also, we also have some impact from the decline in demand from one top customers -- one of the top customers. So I think we need to still need some time to digest this. Also, we're also making some proactive measures to make sure we focus on public cloud growth and focus on high-quality cloud service growth. So I think with this, the right sales structure and the customer profile, we are better positioned, we'll be in a better position to have a long-term sustainable growth.

此外，我們還受到一位頂級客戶（頂級客戶之一）需求下降的影響。所以我認為我們還需要一些時間來消化這個問題。此外，我們還採取了一些積極主動的措施，確保我們專注於公有云的增長，專注於高質量的雲服務增長。因此，我認為有了正確的銷售結構和客戶檔案，我們就能處於更好的位置，我們將能夠更好地實現長期可持續增長。

Yes. For the second question, how to monetize this AI opportunity. I think the answer is very straightforward. It's like as a cloud service provider, our best monetization model is to have all the AI companies, all the models using Alibaba cloud infra, our high-performance, low-cost computing power to do their AI.

是的。對於第二個問題，如何將這個人工智能機會貨幣化。我認為答案非常簡單。就像作為一個雲服務提供商，我們最好的變現模式就是讓所有的AI公司，所有的模型都使用阿里雲的基礎設施，我們高性能、低成本的算力來做他們的AI。

So I think while we do our foundational model in Ali Cloud and deploy this -- and deploy on our cloud infra is to not only just run our own model is to help our cloud industry partners are to use this foundational model to do their fine tune, to build their own model in their vertical industries and in their own customized applications.

所以我認為，當我們在阿里雲中做我們的基礎模型並部署它時- 部署在我們的雲基礎設施上不僅是為了運行我們自己的模型，也是為了幫助我們的雲行業合作夥伴使用這個基礎模型進行微調，在自己的垂直行業和自己的定制應用中建立自己的模型。

So I think this is -- I think for us, I think this is a huge opportunity. And I think we would do everything we can to make sure we provide best-in-class services to help these new generations of innovation to be occurred on our cloud infra. Thank you.

所以我認為這對我們來說是一個巨大的機會。我認為我們將盡一切努力確保我們提供一流的服務，以幫助這些新一代的創新在我們的雲基礎設施上發生。謝謝。

Just to add one more point, which is when we talk about this ecosystem, and we strongly believe in this AI new era, there is a new ecosystem is generating -- is incubating. So that's why we do a lot to grow our model, our community model scope to make sure all the relevant models, all the good models in the market, not only from Alibaba, (inaudible) from ecosystem to make all the models available for the developers, for the industry partners, and we provide tools, applications to help them to use these models and a lot of open source models, as I said in my script.

再補充一點，就是當我們談論這個生態系統時，我們堅信在這個人工智能新時代，有一個新的生態系統正在生成——正在孵化。因此，這就是為什麼我們做了很多工作來發展我們的模型，我們的社區模型範圍，以確保所有相關模型，市場上所有好的模型，不僅來自阿里巴巴，（聽不清）來自生態系統，以使所有模型都可用於開發人員，為行業合作夥伴，我們提供工具、應用程序來幫助他們使用這些模型和很多開源模型，正如我在腳本中所說。

And from our side, we are also we'll continue our efforts to upgrade our model and also continue our open source strategy for the models. And the more people use models, then the more people will use computing power. That's the short answer.

從我們的角度來看，我們也將繼續努力升級我們的模型，並繼續我們的模型開源策略。使用模型的人越多，使用計算能力的人就越多。這就是簡短的答案。

Your next question comes from Jiong Shao with Barclays.

你的下一個問題來自巴克萊銀行的邵炯。

[Interpreted] I have a follow-up question for Daniel regarding AI. We know that Alibaba has launched its [Tongyi] model and has recently opened up 2 additional models and you're also hosting a model from Meta. I'm wondering if we think about the future landscape in China, say, 3 to 5 years down the road, what that landscape will look like, how many foundational models will have proven successful, what will the mix look like as between proprietary versus open source models at that time? And what will be the factors that will contribute to the success or failure of these different competitors in that period.

[解釋] 我有一個關於人工智能的後續問題要問 Daniel。我們知道阿里巴巴已經推出了[統一]模型，並且最近又開放了 2 個模型，您還託管了 Meta 的一個模型。我想知道我們是否考慮過中國的未來格局，比如說，3到5年後，這個格局會是什麼樣子，有多少基礎模型將被證明是成功的，專有模型與專有模型之間的混合會是什麼樣子？當時的開源模型？以及哪些因素將導致這些不同的競爭對手在此期間的成功或失敗。

Well, that's an excellent set of questions, and it's difficult to answer as they are excellent. We're standing at the advent of a new era, an unprecedented new era where things are moving so fast that most people look at things in intervals of 1 month and track changes month by month. So it's extremely difficult to talk about what the future will be like 3 to 5 years out.

嗯，這是一組非常好的問題，但很難回答，因為它們非常出色。我們正站在一個新時代的來臨，一個前所未有的新時代，事物發展如此之快，以至於大多數人以一個月的間隔觀察事物並逐月跟踪變化。因此，談論 3 到 5 年後的未來會是什麼樣子是極其困難的。

Perhaps I can share with you my own observation and thinking about some of those larger issues. Certainly, there are quite a lot of companies in China already today that are working on large language models. I think there are basically 2 development pathways available to these companies, broadly speaking. One is the one that Alibaba has chosen because we are a cloud provider. So we developed these large language models. And as we evolve them, we continue to open them up, make them available, even go open source with them to get more people to use them.

也許我可以與你們分享我自己對一些更大問題的觀察和思考。當然，目前中國已經有很多公司正在研究大型語言模型。我認為，從廣義上講，這些公司基本上有兩種發展途徑。阿里巴巴選擇了一種，因為我們是雲提供商。所以我們開發了這些大型語言模型。隨著我們不斷發展它們，我們將繼續開放它們，使它們可用，甚至將它們開源以讓更多的人使用它們。

So we're providing foundational models are intended to be a universal application to benefit the broadest swath of the community, making them available to developers to develop applications, building on them. But at the same time, there will also be some players in this market who although they're starting out, developing foundational models, we'll very quickly start to focus on a few particular domains where they have expertise.

因此，我們提供的基礎模型旨在成為一種通用應用程序，以使社區最廣泛的群體受益，使開發人員可以在這些模型的基礎上開發應用程序。但與此同時，這個市場上也會有一些參與者，儘管他們剛剛開始開發基礎模型，但我們很快就會開始關注他們擁有專業知識的一些特定領域。

Of course, these will be domains where to succeed, they'll need to have a lot of high-quality data as well as deep insight into that data. But some companies will start by developing those foundational models, but quickly move into developing specific applications. So that's foreseeable.

當然，這些都是要取得成功的領域，他們需要擁有大量高質量的數據以及對這些數據的深入洞察。但一些公司會從開發這些基礎模型開始，但很快就會轉向開發特定的應用程序。所以這是可以預見的。

Of course, those in that second category, I spoke about, might say today that they're working on big models or large language models. But in point of fact, they'll end up working on vertical models. But it's difficult to know today and to distinguish between the 2. But another important point I would add on is that AI is not valuable, just by virtue of being AI. In fact, it has tremendous potential to revolutionize all the existing applications and services that are out there across industries and sectors, including both 2c and 2b.

當然，我談到的第二類人今天可能會說他們正在研究大型模型或大型語言模型。但事實上，他們最終將致力於垂直模型。但今天很難知道並區分這兩者。但我要補充的另一個重要觀點是，人工智能並不僅僅因為是人工智能而有價值。事實上，它具有徹底改變跨行業和部門（包括 2c 和 2b）的所有現有應用程序和服務的巨大潛力。

So if you look at all the different applications and services that exist today on the Internet, all of them can be rethought and revitalized and upgraded with AI. So we say this within Alibaba. Everything we're doing, all the services we have can be rethought and redone leveraging AI. And I think the same could be said for all players across all different industries and sectors.

因此，如果你看看當今互聯網上存在的所有不同的應用程序和服務，所有這些都可以通過人工智能進行重新思考、振興和升級。所以我們在阿里巴巴內部就這麼說。我們所做的一切、我們擁有的所有服務都可以利用人工智能重新思考和重做。我認為對於所有不同行業和部門的所有參與者來說都是如此。

Your next question comes from Thomas Chong with Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

I have a question regarding the international business. Given that the strong performance that we are seeing across different countries. Just wanted to get the thoughts from management regarding the competitive landscape in different regions and our growth strategies. And then a follow-up question on that one is really about the logistics side. Given the strong performance of China, how should we think about the synergies between China and our international business to enhance the user experience.

我有一個關於國際業務的問題。鑑於我們在不同國家看到的強勁表現。只是想了解管理層對不同地區的競爭格局和我們的增長戰略的想法。接下來的一個問題實際上是關於物流方面的。鑑於中國的強勁表現，我們應該如何思考中國與我們國際業務之間的協同效應，以提升用戶體驗。

[Interpreted] Yes. Actually, we reported a very good quarter for our AIDC, our overseas digital commerce business. And we are happy to see that our strategies after a couple of quarters, our efforts as we see a strong sign of success. And we strongly believe this is a sustainable trend. And as you asked, I think we are trying to find our unique position in the global market.

[解釋] 是的。事實上，我們的海外數字商務業務 AIDC 的季度業績非常好。我們很高興看到我們的戰略在幾個季度後得到了落實，我們的努力也看到了成功的強烈跡象。我們堅信這是一個可持續的趨勢。正如你所問的，我認為我們正在努力尋找我們在全球市場上的獨特地位。

And when we talk of global market, we have very clear target by market, by region, not only by region, also by country because consumption is highly relevant to a culture and highly relevant to the local retail landscape. So we need to find our uniqueness -- unique strength to create the real value to the customers in the destination country.

當我們談論全球市場時，我們按市場、按地區、不僅按地區、按國家都有非常明確的目標，因為消費與文化高度相關，與當地零售格局高度相關。因此，我們需要找到我們的獨特性——獨特的優勢，為目的地國家的客戶創造真正的價值。

Our unique advantage, of course, one of the unique advantage is the supply from China. I think a choice model just to unlock the advantage by a consolidated integrated supply chain from end to end. So going forward, we'll continue to scale up this model and together with the growth of the platform model and in different markets. And we have [differentiated] market strategy in some businesses.

我們獨特的優勢，當然，獨特的優勢之一就是來自中國的供應。我認為選擇模型只是為了通過端到端的整合集成供應鏈來釋放優勢。因此，展望未來，我們將繼續擴大這一模式，並隨著平台模式和不同市場的增長。我們在一些業務上有[差異化]市場策略。

We are -- we focus on cross-border. This is -- could be a main cause for some businesses. But for some other markets, we focus on local to local as a main course, plus cross-border from China as a dessert. And also today make cross-border from China, maybe tomorrow, cross-border from other countries.

我們——我們專注於跨境。這可能是某些企業的主要原因。但對於其他一些市場，我們專注於本地到本地作為主菜，加上來自中國的跨境作為甜點。今天也可以從中國跨境，明天也許可以從其他國家跨境。

And also, we are trying to leverage our strong coverage in China with our B2B business because we have a very successful B2B business, which basically have a very strong connection with our -- with many Chinese exporters. They are all SMEs. Some of them sell industrial products, but we have many of our exporters sell consumer products. So this could be a huge, I mean, flying wheel to connect the integrated supply chain from B2B to B2C.

此外，我們正在努力利用我們在中國的強大覆蓋範圍和 B2B 業務，因為我們擁有非常成功的 B2B 業務，基本上與我們的許多中國出口商有著非常密切的聯繫。他們都是中小企業。其中一些出口商銷售工業產品，但我們有許多出口商銷售消費品。因此，我的意思是，這可能是一個巨大的飛輪，用於連接從 B2B 到 B2C 的集成供應鏈。

So for your second -- for your question about Cainiao and AIDC, I think this quarter is a very good example -- show a very good example of how the synergies we can create between the -- among the different business groups in Alibaba. So I think the strong growth of AIDC is one of the main reasons is our improved logistics and service experience together with a strong performance of our logistic network.

因此，對於你的第二個問題——關於菜鳥和AIDC的問題，我認為本季度是一個很好的例子——展示了我們如何在阿里巴巴不同業務部門之間創造協同效應。所以我認為AIDC強勁增長的主要原因之一是我們改善的物流和服務體驗以及我們物流網絡的強勁表現。

So for example, right now, we are providing a 5-day global delivery, which means a global delivery within 5 days. If you can give the customers thousand miles away, tens of sound miles away from China, a high certainty of the logistic experience. This could be the best user acquisition tool and user acquisition model.

那麼比如說現在我們提供的是5天全球送達，也就是說5天內全球送達。如果你能給距離中國千里之外、幾十里之外的客戶一種高確定性的物流體驗。這可能是最好的用戶獲取工具和用戶獲取模型。

So if we can -- if we combine these 2 together and see a very strong synergies and we'll continue to do that, and on one hand is to enhance the assortment strategies to make sure we have the right supply. Second, to enhance the logistics and service standard and capability and to make sure customers can have the good experience. If they have a good experience in their first few try, they will be with us. I think they have -- because with a good experience, right, the price point from China supply has a unique strength in the world.

因此，如果我們可以——如果我們將這兩者結合在一起並看到非常強大的協同效應，我們將繼續這樣做，一方面是加強分類策略，以確保我們擁有正確的供應。二是提升物流服務水平和能力，確保客戶獲得良好體驗。如果他們在最初的幾次嘗試中獲得了良好的體驗，他們就會和我們一起。我認為他們有——因為有了良好的經驗，對吧，中國供應的價格點在世界上具有獨特的優勢。

Your next question comes from James Lee with Mizuho.

你的下一個問題來自瑞穗銀行的詹姆斯·李。

And just 1 follow-up question on cloud computing specifically. And Daniel, can you comment about, obviously, comment about technology, that's super helpful. Can you talk about maybe from a marketing perspective, what verticals are important for you to pursue in the near-term to drive the growth of the business and why?

還有 1 個專門針對雲計算的後續問題。丹尼爾，你能評論一下，顯然，評論一下技術，這非常有幫助。您能否從營銷的角度談談，您在短期內追求哪些垂直行業對於推動業務增長很重要？為什麼？

[Interpreted] Yes. Actually, cloud is relevant to all the industries. If you ask me on which industries we prioritize, I would say, actually, first of all, I think the Internet companies, I think because all the Internet companies are digital native companies and they're supposed to be -- grow their business on cloud.

[解釋] 是的。事實上，雲與所有行業都有關係。如果你問我我們優先考慮哪些行業，我會說，實際上，首先，我認為互聯網公司，我認為因為所有互聯網公司都是數字原生公司，他們應該 - 發展他們的業務雲。

And so from this part, I think if you look at the history of Alibaba Cloud, we will grow together with the Internet company especially the mobile Internet companies in China together. So I think in this part, I think we still have a big space to penetrate to help all the internet companies.

所以從這一部分來看，我覺得如果你看一下阿里雲的歷史，我們會和互聯網公司特別是中國的移動互聯網公司一起成長。所以我認為在這一部分，我認為我們還有很大的滲透空間來幫助所有的互聯網公司。

Today, not all of them are purely digital native, data-driven. And even though everybody has a mobile app and have a web page. But I think the level of digitalization and the complexity of their digitalization is quite different. So I think in this regard, we can still work closely with them, starting with the penetration of the cloud infra and also with more penetration with the past products.

如今，並非所有這些都是純粹的數字原生、數據驅動的。即使每個人都有移動應用程序和網頁。但我認為他們的數字化水平和數字化的複雜程度是有很大不同的。所以我覺得在這方面我們還是可以和他們緊密合作，從雲基礎設施的滲透入手，也可以對過去的產品進行更多的滲透。

I think [part] service and AI service today. So I think Internet, obviously, is a very important sector and also financial services because financial services is a very big industry. And there are many companies, many type of subsectors in this industry. So I think we also spend a lot of our resources on these.

我認為今天的[部分]服務和人工智能服務。所以我認為互聯網顯然是一個非常重要的行業，也是金融服務業，因為金融服務業是一個非常大的行業。而且這個行業有很多公司，很多類型的子行業。所以我認為我們在這些方面也花費了很多資源。

And also, we are also develop our services -- and product services to serve the industries like automobile. Because if you look at the EV companies and all the EV companies, no matter they're new EV or a new EV (inaudible) or the existing ones, I think pretty soon, all of them, they are purely digital-driven companies. They're a data-driven company.

此外，我們還在開發我們的服務和產品服務，以服務於汽車等行業。因為如果你看看電動汽車公司和所有電動汽車公司，無論它們是新的電動汽車或新的電動汽車（聽不清）還是現有的公司，我認為很快，它們全部都是純粹的數字驅動公司。他們是一家數據驅動的公司。

So I think we will -- generally speaking, I'll just give you a few examples. But generally speaking, we will focus on the industries with higher level of digitization, and we will prioritize the industry digital native. Or they have a very successful digital transformation or the onboard from day 1 they are digital native. So this is our focus and strategy. Thank you.

所以我認為我們會——一般來說，我只會給你們舉幾個例子。但總體來說，我們會重點關注數字化程度較高的行業，優先考慮行業數字原生代。或者他們進行了非常成功的數字化轉型，或者從第一天起他們就成為了數字原生代。所以這是我們的重點和策略。謝謝。

Your next question comes from Jialong Shi with Nomura.

你的下一個問題來自野村證券的史家龍。

[Interpreted] My question has to do with e-commerce. And I'm wondering if you could talk to us about where you see things heading for the September quarter for both Tmall and Taobao in terms of DAUs and revenues. And then coming back to the June quarter, we saw a decline in margin year-on-year. So if you could please talk to us about margin in the June quarter as well as on Tmall supermarket and on Tmall and Taobao.

[解讀]我的問題與電子商務有關。我想知道您是否可以與我們談談您對天貓和淘寶九月份季度的每日活躍用戶數和收入的看法。然後回到六月季度，我們看到利潤率同比下降。因此，如果您可以的話，請與我們談談六月季度以及天貓超市、天貓和淘寶的保證金。

[Interpreted] Thank you. So on Tmall Supermarket, this is a 1P business that we're operating ourselves and profit continues to improve. This year, we've invested very heavily in improving user experience on Tmall supermarket as part of that rolling out half day delivery service in 20 cities across China. And in those cities with half-day delivery, we're seeing very, very significant improvements in growth in user scale orders and user satisfaction.

[已翻譯] 謝謝。所以在天貓超市，這是我們自己經營的1P業務，利潤不斷提高。今年，我們投入了大量資金來改善天貓超市的用戶體驗，作為在中國 20 個城市推出半日達服務的一部分。在那些實行半日達的城市，我們看到用戶訂單規模和用戶滿意度的增長有非常非常顯著的改善。

E-commerce in general as a kind of commerce or business is affected by a variety of different factors, of course, including the macroeconomic environment and competition.

電子商務一般作為一種商業或業務受到多種不同因素的影響，當然也包括宏觀經濟環境和競爭。

So rather than focusing on short-term competitive dynamics and growth numbers, we're much more preoccupied with ensuring the long-term development of the company of the business and then constantly surpassing ourselves.

因此，我們不關注短期的競爭動態和增長數字，而是更關注確保公司業務的長期發展，然後不斷超越自己。

And as I said earlier, given the uncertainties and volatility that may lie ahead on the path to the future, it's all the more important to be investing today and building our own capabilities. That's why in the next 3-year period, we'll continue to invest resolutely in growing user scale and optimizing user experience in helping merchants grow their businesses and in improving our services that we provide to merchants.

正如我之前所說，考慮到未來道路上可能存在的不確定性和波動性，今天的投資和建設我們自己的能力就顯得尤為重要。這就是為什麼在接下來的三年裡，我們將繼續堅定地投資於擴大用戶規模和優化用戶體驗，幫助商家發展業務並改善我們為商家提供的服務。

We have over 2 decades of strong experience and insight in the e-commerce space. And based on that, I have extremely strong confidence in our ability to continue to maintain our dual leadership position, leadership in terms of user scale and merchant scale going forward.

我們在電子商務領域擁有超過 20 年的豐富經驗和洞察力。基於此，我對我們未來繼續保持用戶規模和商戶規模雙重領先地位的能力充滿信心。

The investments that we're making today will certainly pay off in the future in terms of driving revenue and profit growth.

我們今天所做的投資肯定會在未來帶來回報，推動收入和利潤增長。

Thank you, everyone. And that's the end of our earnings call today. If you have any further questions, feel free to reach out to me and my team, and thank you. We'll see you next quarter.

謝謝大家。我們今天的財報電話會議到此結束。如果您還有任何疑問，請隨時聯繫我和我的團隊，謝謝。我們下季度見。

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

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 on the live call.]

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]