阿里巴巴 (BABA) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's September Quarter 2023 Results Conference Call. (Operator Instructions). I would now like to turn the conference 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 9 月季度業績電話會議。 （操作員說明）。現在我想把會議交給阿里巴巴集團投資人關係主管林羅布主持。請繼續。

Good day, everyone and welcome to Alibaba Group's September Quarter 2023 Results Conference Call. With us are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer; Trudy Dai, CEO of Taobao Tmall Group and Jiang Fan, the CEO of Alibaba International Digital Commerce.

大家好，歡迎參加阿里巴巴集團 2023 年 9 月季度業績電話會議。與我們在一起的還有董事長蔡崇信；吳艾迪，執行長；徐托比，財務長；淘寶天貓集團執行長戴楚迪和阿里巴巴國際電商執行長蔣凡。

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

本次電話會議也在我們公司網站的 IR 部分進行網路直播。今天晚些時候，我們的網站上將提供電話會議的重播。

Now let me quickly cover the safe harbor. Today's discussion may contain forward-looking statements, including without limitation statements about our new organization and governance structure, strategies and business plans, as well as our belief and expectations about our business prospects such as future growth of our business, revenue and return on investments.

現在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新的組織和治理結構、策略和業務計劃的陳述，以及我們對業務前景的信念和期望，例如我們業務的未來成長、收入和投資回報。

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 or announced on the website of the Hong Kong Stock Exchange. 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.

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目前的預期有重大差異。有關這些風險和不確定性的詳細討論，請參閱我們最新的 20-F 表格年度報告以及向美國 SEC 提交或在香港聯交所網站公佈的其他文件。我們在本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔更新這些陳述的任何義務，除非適用法律要求。

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. Our GAAP results and reconciliation of GAAP to non-GAAP measures can be found in our earnings press release.

請注意，我們在本次電話會議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 稀釋每股盈餘或美國存託股以及自由現金流以非公認會計準則為基礎。我們的 GAAP 結果以及 GAAP 與非 GAAP 指標的調整可以在我們的收益新聞稿中找到。

Unless otherwise stated, growth rates of all stated metrics mentioned during this call refer to year-over-year growth versus the same quarter last year. With that, I will now turn to Joe.

除非另有說明，本次電話會議中提到的所有規定指標的成長率均指與去年同期相比的年成長率。說到這裡，我現在轉向喬。

Thank you, Rob. Hello, ladies and gentlemen. Thank you for joining our earnings call for the September quarter. Although this is the first communication in my new role as Chairman of the company, I'm pleased to connect with some old friends in the investment community.

謝謝你，羅布。女士們、先生們，大家好。感謝您參加我們九月季度的財報電話會議。雖然這是我擔任公司董事長後的第一次交流，但我很高興能與投資界的一些老朋友建立聯繫。

This is not your normal earnings report for the quarter. This is the first time you will hear directly from our Group CEO, Eddie Wu, on his strategic thinking. He will lay out our plan for growing the business, as well as our strategic priorities for execution and investment.

這不是您本季的正常收益報告。這是您第一次直接聽到我們集團執行長吳艾迪講述他的戰略思想。他將制定我們的業務發展計劃，以及執行和投資的策略重點。

I'm pleased with this quarter's results, which show that our strategic focus on user-centric value proposition and technology innovation are driving improvements across our businesses. In addition, while global markets remain volatile, we are entering a phase of a more stable operating environment in China.

我對本季的業績感到滿意，這表明我們對以用戶為中心的價值主張和技術創新的策略重點正在推動我們整個業務的改進。此外，儘管全球市場依然波動，但我們在中國的經營環境正進入更穩定的階段。

In terms of asset reorganization to highlight the value of our businesses, here are a few updates. First, we announced in our earnings release that Alibaba will not pursue a full spin-off of Cloud Intelligence Group in light of uncertainties created by recent U.S. export restrictions on advanced computing chips. Instead, we will focus on developing a sustainable growth model based on emerging AI-driven demand for networked and highly scaled cloud computing services.

在資產重組方面，為了凸顯我們的業務價值，這裡有一些更新。首先，我們在財報中宣布，鑑於美國近期對先進運算晶片的出口限制帶來的不確定性，阿里巴巴不會尋求全面分拆雲端智慧集團。相反，我們將專注於開發基於人工智慧驅動的新興網路和高度規模雲端運算服務需求的可持續成長模式。

Second, in August, Cainiao Smart Logistics filed its prospectus and application for an IPO on the Hong Kong Stock Exchange. While the success of an IPO transaction is subject to market conditions and relevant approvals, we're confident of the business fundamentals of our logistics unit. Other areas of reorganization and focus are going well across our businesses as evidenced by strong revenue growth for AIDC and Cainiao and narrowing losses in local services and digital media entertainment.

其次，8月，菜鳥智能物流在港交所提交招股說明書及IPO申請。雖然首次公開募股交易的成功取決於市場狀況和相關批准，但我們對物流部門的業務基本面充滿信心。我們業務的其他重組和重點領域進展順利，AIDC 和菜鳥收入的強勁增長以及本地服務和數位媒體娛樂虧損的縮小就證明了這一點。

As I travel around to speak with investors, many have asked me about the relationship between the group company and our business units in a post reorganized world. I want to make 2 points here. First, Alibaba group will continue to support our operating business with the group's strong balance sheet. We ended the quarter with USD 63 billion in net cash and we generated USD 27 billion in free cash flow in the last 12 months. Alibaba has never been in a better financial position to invest for the growth of our businesses.

當我四處與投資者交談時，許多人問我在重組後的世界中集團公司與我們的業務部門之間的關係。我想在這裡提出2點。首先，阿里巴巴集團將繼續憑藉集團強勁的資產負債表支持我們的營運業務。本季結束時，我們的淨現金為 630 億美元，過去 12 個月的自由現金流為 270 億美元。阿里巴巴從未有過如此良好的財務狀況來投資我們的業務成長。

Second, while each business is expected to operate independently and interact with each other based on arm's length market principles, the group will use our resources to ensure long-term strategic synergies can be realized. We have businesses that are very symbiotic with each other and their relationships are highly strategic. For example, Cainiao supports the logistics needs of our e-commerce businesses and Alibaba Cloud provides superior technology capabilities to all of our own businesses.

其次，雖然各業務應獨立運作並根據公平市場原則互動，但集團將利用我們的資源確保實現長期策略協同效應。我們的企業彼此之間非常共生，而且它們的關係具有高度策略性。例如，菜鳥支援我們電商業務的物流需求，阿里雲為我們所有的自有業務提供卓越的技術能力。

Eddie and my job is to balance the short-term goals of each business unit against the opportunities for long-term value creation. Now let me say a few words about capital management. We're focused on unlocking value to improve shareholder returns. We are looking at 4 areas in capital management. #1, enhanced return on invested capital of our operating businesses. We have undertaken a review of our operating businesses and ways to enhance ROIC, return on invested capital.

艾迪和我的工作是平衡每個業務部門的短期目標與長期價值創造的機會。現在我就資本管理說幾句。我們專注於釋放價值以提高股東回報。我們正在研究資本管理的四個領域。 #1，提高我們營運業務的投資資本報酬率。我們對我們的營運業務以及提高 ROIC（投資資本回報率）的方法進行了審查。

In the fiscal year ended March '23, our ROIC was in the single digits. Obviously, there's room for improvement and we are targeting to lift our ROIC into the double digits. #2, invest our cash flow for future growth. The clarity of focus emerging from our reorganization has highlighted many strategic growth opportunities for investment. Given the strength of our balance sheet, Alibaba is well positioned to capture these opportunities. Later on, Eddie will discuss our growth strategy and priorities for investment.

在截至 2023 年 3 月的財年中，我們的投資報酬率為個位數。顯然，還有改進的空間，我們的目標是將投資報酬率提高到兩位數。 #2，將我們的現金流投資於未來的成長。我們的重組所帶來的重點的明確性凸顯了許多策略性投資成長機會。鑑於我們的資產負債表實力雄厚，阿里巴巴完全有能力把握這些機會。隨後，埃迪將討論我們的成長策略和投資重點。

#3, monetize the value of noncore assets. Our balance sheet carries USD 67 billion in equity, securities and other investments as well as investment in equity method investees. In addition, we have operating businesses that tie up capital but generate low growth. Not all of these investments are core to -- not all of these investments are core or strategic to our business. We are evaluating creative ways to monetize the value of these assets in order to return value to shareholders.

#3，將非核心資產的價值貨幣化。我們的資產負債表包含 670 億美元的股權、證券和其他投資以及對權益法投資對象的投資。此外，我們經營的業務佔用資金但成長緩慢。並非所有這些投資都是我們業務的核心或策略投資。我們正在評估將這些資產的價值貨幣化的創意方法，以便為股東回報價值。

#4, speaking of returning value to shareholders. This may take the form of our share repurchase program or cash distributions via dividends. We already have a share repurchase plan that still gives us USD 13 billion in dry powder as of today. In addition, as we have just announced, the company will pay an annual dividend. Our capital management activities are dynamic and remain a top priority for our management team and our Board of Directors.

#4，談到為股東回報價值。這可能採取我們的股票回購計劃或透過股利進行現金分配的形式。我們已經制定了股票回購計劃，截至目前仍為我們提供了 130 億美元的乾粉。此外，正如我們剛剛宣布的，公司將支付年度股息。我們的資本管理活動是動態的，並且仍然是我們管理團隊和董事會的首要任務。

Now I turn to Eddie for his remarks.

現在我請艾迪聽聽他的評論。

Investors, friends, welcome to everybody. Thanks for joining this quarter's earnings call. It's exciting for me to speak with you on today's earnings call as CEO of Alibaba Group for the first time. So in addition to updating you on the progress we've made in all of our businesses over the past quarter, I'd also like to share with you my thinking about Alibaba's future development strategy and business plans.

投資者朋友們，歡迎大家。感謝您參加本季的財報電話會議。我很高興第一次以阿里巴巴集團執行長的身份在今天的財報電話會議上與大家交談。所以除了向大家介紹上個季度我們各項業務的進展之外，我還想跟大家分享一下我對阿里巴巴未來發展策略和商業計劃的思考。

Through 24 years of development, Alibaba has grown into a group that spans e-commerce, cloud computing, local services, logistics, digital media and entertainment, new retail and many innovative new businesses. Today, the world is at the starting point of a new era. Rapid technological advances are profoundly reshaping all industries, all products and all of our daily life scenarios. Virtually, any prediction made to date is bound to underestimate the future. As the penetration rate of Internet users reaches a ceiling, the driver of growth in this sector will be technology, especially AI. Therefore, I've defined the following 3 directions as the key priorities for Alibaba's next decade: our technology-driven Internet platform businesses, AI-driven technology businesses and global commerce network.

經過24年的發展，阿里巴巴已成長為一家橫跨電子商務、雲端運算、本地服務、物流、數位媒體和娛樂、新零售以及眾多創新新業務的集團。今天，世界正站在新時代的起點上。快速的技術進步正在深刻重塑所有行業、所有產品以及我們所有的日常生活場景。事實上，迄今為止所做的任何預測都必然會低估未來。隨著網路用戶的滲透率達到天花板，該行業的成長動力將是技術，尤其是人工智慧。因此，我將阿里巴巴下一個十年的重點發展方向定義為以下三個方向：科技驅動的網路平台業務、人工智慧驅動的科技業務和全球商業網路。

In light of Alibaba's huge and complex set of businesses as well as rapidly evolving market and technology trends, we intend to transform Alibaba and embrace the future through the following 3 key initiatives: first, establishing a highly nimble and fast decision-making governance structure and corresponding incentive system. Today, Alibaba must contend with fast developing new technologies as well as new changes and expectations in the market. No matter how successful our business models have been in the past, we need to turn over a new page and start afresh. We need to reawaken our entrepreneurial mindset and improve our decision-making systems. To that end, we initiated corporate governance reforms this year and continue to move quickly ahead with developing fast and nimble decision-making systems. Going forward, we want each of Alibaba's different businesses to face the market more independently and autonomously.

鑑於阿里巴巴龐大而複雜的業務以及快速變化的市場和技術趨勢，我們打算透過以下三個關鍵舉措來改造阿里巴巴並擁抱未來：第一，建立高度靈活、快速的決策治理結構和相應的激勵制度。今天，阿里巴巴必須應對快速發展的新技術以及市場的新變化和期望。無論我們過去的商業模式多麼成功，我們都需要翻開新的一頁，重新開始。我們需要重新喚醒創業思維，並改善決策體系。為此，我們今年啟動了公司治理改革，並持續快速推動建立快速、靈活的決策體系。展望未來，我們希望阿里巴巴的各個業務能夠更獨立、自主地面對市場。

On that basis, we're exploring corresponding incentive systems that strike the right balance between independence and cooperation across the business groups so as to maximize synergy for development.

在此基礎上，我們正​​在探索相應的激勵制度，平衡各事業群的獨立性和合作性，並最大限度地發揮協同發展的作用。

Secondly, conducting a strategic review of existing businesses, focusing on the long term and maintaining high intensity investments in core businesses. After years of development, we are keenly aware that outstanding business models are extremely rare. And going forward, we will give each of the existing business a different level of priority based on market size, business model and product competitiveness and will distinguish between core and noncore businesses.

二是對現有業務進行策略性審視，著眼長遠，維持對核心業務的高強度投入。經過多年的發展，我們敏銳地意識到，優秀的商業模式極為罕見。未來，我們將根據市場規模、商業模式、產品競爭力，對現有的各項業務給予不同的優先級，區分核心業務和非核心業務。

Core businesses are where we will keep our long-term focus, intensively invest resources, pursue R&D, enhance user experience and make sure that our products and services are constantly evolving to meet our users' needs to keep them vital and competitive for the long term. As for the noncore businesses, we will realize the value of these assets by turning them profitable as soon as possible or through other means of capitalization.

核心業務是我們長期關注的焦點，集中投入資源，不斷研發，提升用戶體驗，確保我們的產品和服務不斷發展，滿足用戶的需求，保持用戶的長期活力和競爭力。 。對於非核心業務，我們將透過盡快實現盈利或透過其他資本化方式實現這些資產的價值。

Thirdly, firmly committing to investing strategically for the future. The Alibaba Group will strengthen its strategic incubation initiatives, the highest priority for major investments we placed on services and products that meet user demands and that are AI-driven. We will resolutely invest in revolutionary products for the future as well, taking a patient long-term approach, adopting a 3-year window for evaluation and proof of value. In this way, we'll nurture new businesses and new growth drivers for Alibaba into the future.

第三，堅定致力於未來戰略投資。阿里巴巴集團將加強策略性孵化計劃，這是我們對滿足用戶需求、人工智慧驅動的服務和產品進行重大投資的重中之重。我們也將堅決投資未來的革命性產品，採取耐心的長期策略，採用三年的評估和價值證明窗口。這樣，我們將為阿里巴巴培育未來的新業務、新增長點。

Next, I'll share our 3-year development strategies and goals for each of the business groups and companies and how they will capture market opportunities. We'll start with Taobao and Tmall Group. Taobao and Tmall Group is committed to 3 core strategies: to putting users first, building an ecosystem for brands and merchants that thrive on realizing AI technology-driven innovation. Despite competition in the market, this quarter, Taobao and Tmall Group maintained steady revenue growth and accelerated DAU growth. In the next 3-year strategic cycle, putting users first is the top priority for Taobao and Tmall Group and in particular, the focus will be on the following 3 areas.

接下來我會分享我們各個事業群和公司的三年發展策略和目標，以及他們將如何抓住市場機會。我們先從淘寶和天貓集團開始。淘寶和天貓集團致力於三大核心策略：使用者至上，為品牌和商家建立生態系統，實現人工智慧技術驅動的創新。儘管市場競爭激烈，本季淘寶、天貓集團仍維持穩定的營收成長，DAU加速成長。在未來三年的策略週期中，使用者至上是淘寶和天貓集團的首要任務，特別是以下三個領域。

First, it's what we call universal Taobao. Taobao is universal or omnipotent, in that it has a vast assortment of goods and services, it can supply. We must resolutely be an integrated platform that meets the needs of all tiers of consumption demand, serving the largest consumer base in order to increase consumer purchase frequency. This represents an important choice for Taobao and Tmall to maintain growth in today's competitive landscape.

首先，就是我們所說的萬能淘寶。淘寶是萬能的或萬能的，因為它可以提供種類繁多的商品和服務。我們要堅決做一個滿足各層次消費需求的綜合平台，服務最大的消費群體，以提高消費者的購買頻率。這是淘寶和天貓在當今競爭格局中保持成長的重要選擇。

The second is consumer tiers and price competitiveness. China has a consumer market with multi-tiered value propositions. We have the most diverse consumer base and also have China's manufacturing advantage. That means in any category, there's a sufficiently rich assortment of supply with different value propositions to meet the needs of different consumers. Accordingly, we have to execute a multi-tier market strategy within one app. Taobao is a super app that integrates all 3 mainstream sales formats: live streaming content-driven sales, brand marketing-driven sales and everyday low-price product sales, making it the most comprehensive platform.

二是消費層次和價格競爭力。中國擁有一個具有多層次價值主張的消費市場。我們擁有最多元化的消費群體，也擁有中國製造的優勢。這意味著在任何品類中，都有足夠豐富的供應品種和不同的價值主張來滿足不同消費者的需求。因此，我們必須在一個應用程式內執行多層市場策略。淘寶是超級應用，集直播內容驅動銷售、品牌行銷驅動銷售、日常低價產品銷售三大主流銷售業態為一體，是最全面的平台。

The Taobao app can accommodate different product tiers from branded goods to white label goods and the whole range of value propositions they represent. We intend to make Taobao a universal consumer app that connects to an all-inclusive and highly diversified marketplace, leveraging AI and next-generation operating models. At the same time, we must execute a price competitiveness strategy. Price competitiveness is the strongest force at work for both branded goods and non-branded goods. We will continue to leverage our platform model to optimize product efficiency, enhanced supply chain efficiency and adopt price competitiveness as a core strategy across all product tiers.

淘寶應用程式可以容納從品牌商品到白標商品的不同產品層以及它們所代表的整個價值主張。我們打算利用人工智慧和下一代營運模式，將淘寶打造成一個通用的消費者應用程序，連接到包容性和高度多元化的市場。同時，我們必須執行價格競爭策略。對於品牌商品和非品牌商品來說，價格競爭力是最強大的力量。我們將繼續利用我們的平台模式來優化產品效率，提高供應鏈效率，並將價格競爭力作為所有產品層的核心策略。

In terms of user value, Taobao will remain committed to its positioning as an Internet consumption platform. It is not a retail company. In line with our identity as an Internet consumption platform, we will prioritize our strategy of putting users first, with improving platform stickiness and customer retention as our core goals. From the operational perspective, we will adopt user purchase frequency as the highest priority KPI for platform operations above GMV, as purchase frequency is the most direct measure of users' recognition of an Internet consumption platform.

在使用者價值方面，淘寶將持續堅持網路消費平台的定位。它不是一家零售公司。根據我們網路消費平台的定位，我們將堅持用戶至上的策略，以提高平台黏著度和客戶保留為核心目標。從營運角度來看，我們將用戶購買頻次作為高於GMV的平台營運最優先的KPI，因為購買頻次是衡量用戶對網路消費平台認可度的最直接衡量標準。

Taobao's diverse monetization products can support our strategic shift to putting users first. We're convinced that only with more users can we generate more market opportunities for merchants. These investments will create a virtuous win-win cycle for users, merchants and platform.

淘寶豐富的變現產品可以支持我們轉向用戶至上的策略。我們堅信，只有更多的用戶，才能為商家創造更多的市場機會。這些投資將為使用者、商家和平台創造一個良性的雙贏循環。

Next, I will describe our strategy for the Cloud Intelligence Group. Given the uncertainties in the current environment, following evaluation, we have decided not to pursue a full spin-off of Cloud Intelligence Group. Alibaba Group will continue to invest strategically in Cloud Intelligence Group in the long term. At the same time, Cloud Intelligence Group will continue to maintain its independent operation to be managed by its CEO and overseen by its Board.

接下來我會介紹一下我們雲端智能事業群的策略。鑑於當前環境的不確定性，經過評估，我們決定不尋求全面分拆雲端智慧集團。阿里巴巴集團將持續對雲端智慧集團進行長期策略投資。同時，雲智集團將繼續保持獨立運營，由執行長管理並由董事會監督。

This quarter, we saw the AI boom bring about continued growth in demand for computing power and large model services. Cloud computing is the infrastructure of the digital economy. It's a business model that achieves network effects with computing resources and a service model that features both network effects and scale effects. With the advent of the AI era, typified by large models and the demand for AI transformation and innovation across all industries, IT investment will grow exponentially and demand for cloud computing will expand exponentially as well, creating a huge incremental opportunity. The Cloud Intelligence Group will resolutely implement a strategy of driving growth with AI and of prioritizing public cloud. It will scale up its technology investments in AI-related software and hardware.

本季度，我們看到人工智慧的蓬勃發展帶來了算力和大模型服務需求的持續成長。雲端運算是數位經濟的基礎設施。它是一種利用運算資源實現網路效應的商業模式，也是一種兼具網路效應和規模效應的服務模式。隨著以大模型為代表的人工智慧時代的到來，以及各行業對人工智慧轉型創新的需求，IT投資將呈指數級增長，對雲端運算的需求也將呈指數級增長，創造巨大的增量機會。雲端智慧集團將堅決實施人工智慧驅動、公有雲優先的策略。它將擴大對人工智慧相關軟硬體的技術投資。

Regarding driving growth with AI, we see a fundamental paradigm shift underway in computing worldwide. We stand at the inflection point in this shift from traditional computing to AI computing. In the future, incremental demand for cloud computing will be driven by demand for AI and most AI computing will run on the cloud. Going forward, we will do 2 things. First, we will build the most open cloud in the AI era, providing stable and efficient AI infrastructure for all industries and enabling all sectors to go intelligent.

關於利用人工智慧推動成長，我們看到全球運算領域正在發生根本性的典範轉移。我們正處於從傳統運算轉變為人工智慧運算的轉折點。未來，雲端運算的增量需求將由人工智慧的需求驅動，大部分人工智慧運算將在雲端運行。展望未來，我們將做兩件事。首先，我們將打造人工智慧時代最開放的雲，為各行各業提供穩定、高效的人工智慧基礎設施，讓能各行各業走向智慧化。

Second, we will build an open and prosperous AI ecosystem. At the recently concluded Apsara Conference, we announced a comprehensive upgrade of our AI infrastructure, the artificial intelligence platform PAI and our large model Tongyi Qianwen 2.0, which has hundreds of billions of parameters as well as 8 vertical models, also a one-stop model application development platform, Alibaba Cloud Bailian. In this AI era, we now have in place a full stack cloud computing system for AI development and are ready to better support demand for AI-driven computing power.

二是建構開放繁榮的人工智慧生態系統。在剛結束的飛天大會上，我們宣布了人工智慧基礎設施的全面升級，人工智慧平台PAI和千億參數、8個垂直模型、一站式模型的大模型統一錢文2.0應用開發平台，阿里雲白鏈。在人工智慧時代，我們已經具備了人工智慧開發的全端雲端運算體系，可以更好地支撐人工智慧驅動的算力需求。

This quarter, we began proactively managing the quality of our cloud revenue and achieved enhanced profitability. Alibaba Cloud has advantage in terms of pricing power, high renewal rates and highly scalable cloud computing infrastructure and in application service products. Going forward, we'll be selective about all of our products and business models. We will reduce project-based revenue exposure, invest more in core products for public cloud and continue to enhance the cloud businesses' revenue quality. By prioritizing public cloud, we will continue to reap scale effects and technological dividends. Going forward, we're extremely optimistic about the long-term development prospects of AI plus cloud computing in combination.

本季度，我們開始主動管理雲端收入的質量，並實現了獲利能力的提高。阿里雲在定價能力、高續費率和高度可擴展的雲端運算基礎設施和應用服務產品方面具有優勢。展望未來，我們將對所有產品和商業模式進行選擇性。減少專案收入暴露，加大公有雲核心產品投入，持續提升雲端業務收入品質。透過優先發展公有雲，我們將持續獲得規模經濟和技術紅利。展望未來，我們對人工智慧+雲端運算結合的長期發展前景極為樂觀。

Next, let's turn to Alibaba International Digital Commerce. We're convinced that there's huge growth potential in international markets in the coming years. Our core strategies include: first, building a world-leading digitalized supply chain network. Alibaba already boasts the richest supply assortment in the world, plus an initially completed cross-border plus local global logistics network. Over the next few years, we'll accelerate our efforts to build a world-leading digitalized supply chain network, leveraging multiple world-leading merchandise centers plus our high-efficiency logistics network covering major international markets.

接下來我們來看看阿里巴巴國際電商。我們相信，未來幾年國際市場將有巨大的成長潛力。我們的核心策略包括：第一，打造全球領先的數位化供應鏈網路。阿里巴巴已經擁有全球最豐富的貨源品種，以及初步建成的跨境+本地的全球物流網絡。未來幾年，我們將利用多個全球領先的商品中心以及覆蓋主要國際市場的高效物流網絡，加速打造全球領先的數位化供應鏈網絡。

Second is building world-leading AI plus overseas digital retail technologies. Within Alibaba International Digital Commerce, we will build unified core technology capabilities for AI plus digital retail to drive efficiency enhancements and user experience innovations across platforms and regional markets. For example, by leveraging AI and other technologies to solve for translation across languages and transnational customer service, we can empower large numbers of merchants to truly make the leap from local to global. That represents a huge market opportunity and dividend.

二是打造全球領先的人工智慧+海外數位零售技術。在阿里巴巴國際電商內部，我們將建構統一的人工智慧+數位零售核心技術能力，推動跨平台、跨區域市場的效率提升與使用者體驗創新。例如，透過利用人工智慧等技術解決跨語言翻譯和跨國客戶服務，我們可以賦能大量商家真正實現從本地到全球的跨越。這代表著巨大的市場機會和紅利。

Thirdly, achieving breakthroughs in key emerging regional markets in the next few years. At present, Alibaba International Digital Commerce has relatively high penetration of users in just a few regional markets such as Southeast Asia and Turkey. There's huge potential to grow user penetration in the majority of international markets. Leveraging our existing resources and footprint, we will scale up our investment in selected high potential regional markets and capitalize on highly certain growth opportunities.

第三，未來幾年在重點新興區域市場實現突破。目前，阿里巴巴國際電商僅在東南亞、土耳其等少數區域市場擁有較高的用戶滲透率。大多數國際市場的用戶滲透率都有巨大的成長潛力。利用我們現有的資源和足跡，我們將擴大對選定的高潛力區域市場的投資，並利用高度確定的成長機會。

Next, let's turn to our Cainiao strategy. Cainiao continues to focus on building out its global smart logistics network and on reinforcing its end-to-end capabilities in cross-border logistics solutions. Revenue maintained relatively rapid growth this quarter. Over the next 3 years, Cainiao's core strategies will be: first, to accelerate construction of its global smart logistics network, scale up its investments in technology, grasp the historic opportunity of cross-border e-commerce growth and achieve rapid growth in its international business by offering innovative products for cross-border e-commerce platforms and merchants; and secondly, to continue to differentiate itself in China and maintain healthy business growth. Cainiao will continue to empower the industry with technology capabilities, helping brands and manufacturers to achieve higher levels of logistics, digitalization and intelligence, providing brands and consumers with high-quality, multiplatform, all-channel supply chain and logistics solutions.

接下來我們來談談菜鳥的策略。菜鳥持續專注打造全球智慧物流網絡，強化端到端跨境物流解決方案能力。本季營收保持較快成長。未來三年，菜鳥的核心策略是：一是加速全球智慧物流網絡建設，加大技術投入，抓住跨境電商發展的歷史機遇，實現國際化快速成長。為跨境電商平台和商家提供創新產品；其次，繼續在中國實現差異化，維持業務健康成長。菜鳥將持續以科技能力賦能產業，幫助品牌和製造商實現更高水準的物流化、數位化、智慧化，為品牌和消費者提供高品質、多平台、全通路的供應鏈和物流解決方案。

Next, let me share with you our strategy for the Local Services Group. This quarter, the Local Services Group achieved 16% year-on-year revenue growth, further improvement in business scale and efficiency and both quarter-on-quarter and year-on-year growth in AACs. Over the next 3 years, location-based technology services will continue to evolve and develop rapidly across a wide range of sectors, benefiting all different kinds of businesses, not just those in the sectors everyone is paying attention to today, like to-home food delivery, restaurant dining and mobility and not only in 2C businesses. We expect to see a relatively fast growth in demand for location-based technology services from 2B businesses.

接下來我來跟大家分享我們本地服務集團的策略。本季度，本地服務集團營收年增16%，業務規模與效率進一步提升，AAC季比與年比雙雙成長。未來3年，基於位置的技術服務將在廣泛的行業中繼續發展和快速發展，使所有不同類型的企業受益，而不僅僅是當今每個人都關注的行業，例如家庭食品配送、餐廳用餐和出行，而不僅僅是2C 業務。我們預計 2B 業務對基於位置的技術服務的需求將出現較快成長。

Accordingly, the group will continue to invest resolutely in location-based technology services in both of its core local service businesses. Amap will primarily develop mobility and to-destination technology services and Ele.me will primarily develop on-demand to-home technology services. At the same time, the local services businesses will take advantage of opportunities to innovate their applications and enhance their capabilities, leveraging AI. The standard of success will be advancing together with the ecosystem.

因此，集團將繼續堅定地投資於其兩項核心本地服務業務中的基於位置的技術服務。高德地圖將主要發展出行和到站技術服務，餓了麼將主要發展按需到家技術服務。同時，本地服務企業將利用人工智慧的機會創新應用並增強能力。成功的標準將與生態系統一起進步。

Next is digital media entertainment. DME achieved healthy growth in its revenues this quarter with enhanced synergies across its different businesses on the back of a strong recovery in the off-line cultural consumption market. DME recorded strong GMV growth this quarter. We have continued year-on-year improvement in profitability. On Youku, the total number of interactions during paid online broadcasting of live performance has set a new record. And 2 films coproduced by Alibaba Pictures occupied the top 2 slots for box office releases during the summer season.

接下來是數位媒體娛樂。線下文化消費市場強勁復甦，各業務綜效增強，本季DME營收實現健康成長。 DME 本季 GMV 錄得強勁成長。我們的獲利能力持續較去年同期改善。優酷網上付費直播現場互動總互動量再創新高。阿里影業聯合出品的兩部影片佔據暑期檔票房前兩名。

Over the next 3 years, DME's core strategies will include the following: one, leveraging AI and other technology innovations, DME will achieve standardized process-based digitalized film and drama show production capabilities within 3 years. We will cultivate next-generation content creators and promote the upgrading of the entertainment industry. We will launch innovative new consumer applications that will expand the boundaries of the business. Secondly, Youku will remain committed to its top quality content strategy while increasing the ratio of self-produced content and build stronger mindshare with its users with stable output of exclusive content.

未來3年，DME的核心策略包括：一、借助人工智慧等技術創新，3年內實現標準化流程化數位影視劇製作能力。培養下一代內容創作者，推動文娛產業升級。我們將推出創新的新消費者應用程序，從而擴大業務範圍。其次，優酷將繼續堅持精品內容策略，同時提高自產內容的比例，透過穩定的獨家內容輸出，與用戶建立更強的情感分享。

Alibaba Pictures will maintain its advantages in off-line scenario coverage and market share and will continue to produce top quality films, performances and other self-produced content. As a leading media and entertainment company, Alibaba's DME Group strives to achieve overall stable profitability as soon as possible.

阿里影業將維持離線場景覆蓋和市場佔有率優勢，持續打造精品電影、演出等自製內容。身為領先的媒體娛樂公司，阿里巴巴旗下DME集團力求盡快實現整體穩定獲利。

Next is overall strategies for strategic level innovation businesses. As announced, the group will continue to invest in and incubate strategic level innovative businesses for the future. We have clear-cut selection criteria, a sufficiently large addressable market, unique positioning in the market in alignment with user demand trends and the group's strategy of driving growth with AI.

其次是戰略級創新業務的整體策略。正如所宣布的，集團未來將繼續投資和孵化戰略級創新業務。我們有明確的選擇標準、足夠大的潛在市場、符合用戶需求趨勢的獨特市場定位以及集團以人工智慧驅動成長的策略。

Today, let me introduce you to our first batch of these strategic level innovation businesses. They are 1688, Cainiao, DingTalk and Quark. 1688 is Alibaba's oldest business, serving mainstream manufacturers in China, has a solid foundation and huge potential to reinvent itself for this new era. It can leverage China-manufactured products, the most competitive anyway, to expand from B2B into SME and consumer procurement. It also has the service capabilities to support cross-border transactions. Xianyu or Idle Fish is the most popular secondhand goods trading platform among Chinese young consumers. But we see Idle Fish as being much more than that in the future. It can become a lifestyle platform for consumers' hobbies and interests.

今天，我就來跟大家介紹我們首批策略級創新業務。他們是1688、菜鳥、釘釘和夸克。 1688是阿里巴巴歷史最悠久的業務，服務中國主流製造商，擁有堅實的基礎和巨大的潛力，可以在新時代重塑自我。它可以利用最具競爭力的中國製造產品，從B2B擴展到中小企業和消費者採購。它還具備支援跨境交易的服務能力。閒魚是最受中國年輕消費者歡迎的二手貨交易平台。但我們認為 Idle Fish 的未來遠不止於此。它可以成為消費者愛好和興趣的生活方式平台。

As for DingTalk, with the advent of the AI era, there's now unprecedented scope for imagination about its future. It's the most effective enterprise productivity tool in China. And in the future, we believe that every individual and every company will have a personalized smart assistant powered by AI. DingTalk has the potential to become the best AI smart assistant platform for users.

對釘釘來說，隨著人工智慧時代的到來，其未來的想像空間前所未有。它是中國最有效的企業生產力工具。未來，我們相信每個人、每家公司都將擁有一個由人工智慧驅動的個人化智慧助理。釘釘有潛力成為使用者最好的AI智慧助理平台。

Quark is a search and knowledge product that's very popular with users. In the large model here, we believe that Quark has tremendous opportunity to create a revolutionary search product for students and young people. The strategic level innovation businesses that I've listed out above, well, in organizational terms, operate as independent subsidiaries and will not be constrained to their previous positioning within the group, enabling to face the larger market with their own strategies. The group will make continued investments in them over a 3- to 5-year period.

Quark是一款非常受用戶歡迎的搜尋和知識產品。在這個大模型中，我們相信夸克有巨大的機會為學生和年輕人創造革命性的搜尋產品。我上面列出的策略層面的創新業務，那麼從組織上來說，是作為獨立的子公司來運作，不會局限於先前在集團內部的定位，能夠以自己的策略去面對更大的市場。該集團將在3至5年內持續對其進行投資。

In this exciting AI era, Alibaba will resolutely devote itself to driving the technology revolution and product innovation and will continue to incubate innovative businesses and technology products. And will meet new expectations and new demands of this growing market for products and services.

在這個令人興奮的人工智慧時代，阿里巴巴將堅定地致力於推動技術革命和產品創新，持續孵化創新業務和技術產品。並將滿足這個不斷成長的市場對產品和服務的新期望和新需求。

Competition in the Internet and technology sector is a never-ending game. No product ever enjoys a long-term moat. Any successful technology company must have the capacity to transition across technology cycles. For 24 years, Alibaba has firmly grasped development opportunities in the PC era and in the mobile era. Along the way, we've had successes as well as failures. We gained experience and learned lessons. Today, Alibaba has grown into a diversified business group with annual revenues of USD 125 billion and free cash flow of USD 27 billion. We're privileged to serve and support transactions and fulfillment for tens of millions of SMEs. We own the third largest cloud computing platform globally and the deep convergence of AI plus cloud computing will be an important impetus for our future development.

網路和科技領域的競爭是一場永無止境的遊戲。沒有任何產品擁有長期的護城河。任何成功的科技公司都必須具備跨技術週期轉型的能力。 24年來，阿里巴巴牢牢抓住了PC時代和行動時代的發展機會。一路走來，我們有過成功，也有失敗。我們獲得了經驗，也吸取了教訓。如今，阿里巴巴已成長為多元化的業務集團，年收入達1,250億美元，自由現金流達270億美元。我們很榮幸能夠為數千萬中小企業提供交易和履行服務和支援。我們擁有全球第三大雲端運算平台，人工智慧與雲端運算的深度融合將是我們未來發展的重要動力。

Today, we stand at the beginning of a new era of technology centered on AI. The next decade will bring dramatic changes worldwide, creating immense uncertainties and opportunities in parallel. Alibaba is embarking on a new entrepreneurial journey and is fully prepared to devote its all to driving technological transformation. We possess sufficiently advanced resources, strong cash flow, agile governance mechanisms and a strong talent pipeline. We're confident that we can both unleash new momentum in our existing businesses and create fresh new growth opportunities.

今天，我們正處於以人工智慧為中心的新科技時代的開端。未來十年將為全球帶來巨大的變化，同時創造巨大的不確定性和機會。阿里巴巴正在開啟新的創業旅程，並已做好充分準備，全力推動科技變革。我們擁有足夠先進的資源、強勁的現金流、靈活的治理機制和強大的人才管道。我們相信，我們能夠釋放現有業務的新動力，並創造新的成長機會。

Thank you. And next, I'll hand the mic to Trudy.

謝謝。接下來，我會將麥克風交給 Trudy。

Hi, everyone. This is Trudy and I'm delighted to speak with you all again. Eddie has shared with you his thinking on Taobao and Tmall Group's 3 key strategies. He further reiterated that putting users first is the top priority and further set out 3 points of focus. Here, I will present to you on our operations in the September quarter and give an overview of the just completed Tmall 11.11 Global Shopping Festival.

大家好。我是特魯迪，我很高興再次與大家交談。 Eddie與大家分享了他對淘寶和天貓集團三大策略的思考。他進一步重申用戶至上是重中之重，並進一步提出了3點重點。在這裡，我向大家介紹我們9月季度的營運情況，以及剛結束的天貓11.11全球購物節的概況。

As a result of our ongoing efforts to attract new merchants, enhance price competitiveness and enrich content offerings, in the September quarter, we continued to achieve rapid growth in DAUs. Even more importantly, we also saw that organic users grew at the same time. More users proactively coming to the Taobao app means that user mindshare is strengthening as the Taobao app becomes more attractive. And in this process, we specifically saw several very clear changes.

由於我們不斷努力吸引新商家、增強價格競爭力和豐富內容產品，在九月季度，我們繼續實現了 DAU 的快速成長。更重要的是，我們也看到自然用戶同時成長。更多用戶主動使用淘寶應用程式意味著隨著淘寶應用程式變得更具吸引力，用戶的關注度正在增強。而在這個過程中，我們具體看到了幾個非常明顯的改變。

First, Taobao and Tmall's rich assortment of supply constitutes a huge advantage. With a constant inflow of new merchants, new merchandise and new content, Taobao has become more vital than ever as a universal app. We continue to invest in building our merchant ecosystem, adhering to the principles of driving with digital technology, openness and inclusivity. The number of merchants increased by over 1 million in the September quarter compared to the June quarter.

首先，淘寶、天貓豐富的貨源構成了巨大的優勢。隨著新商家、新商品、新內容的不斷湧入，淘寶作為一個通用應用程式變得比以往任何時候都更加重要。我們持續投資建構商戶生態系統，秉持數位科技驅動、開放包容的原則。與6月季度相比，9月季度商家數量增加了超過100萬家。

At the same time, Taobao's live streaming ecosystem maintained its growth momentum. On the one hand, top-tier live streamers and agencies from other platforms continue to join the Taobao platform such as Easy Buy and the wine and spirits influencer, Li Xuanzhuo and they're developing very well on Taobao Live.

同時，淘寶直播生態保持成長動能。一方面，其他平台的第一線主播和經紀公司不斷加入淘寶平台，如易買、酒類網紅李選卓等，在淘寶直播上發展勢頭良好。

On the other hand, merchant-operated live stream also has strong growth momentum. With more and more Tmall brand merchants taking part, the live streaming participation rate and total live streaming time are growing and the share of GMV from merchant-operated live streaming is also increasing. More and more merchants are realizing that self-operated live streaming is much, much more than just a sales tool. It's an important and sustainable approach for brand building and user engagement on the Taobao app.

另一方面，商家直播也有強勁的成長動能。隨著越來越多的天貓品牌商家參​​與，直播參與率和直播總時長不斷成長，商家自營直播的GMV佔比也不斷增加。越來越多的商家意識到自營直播不僅僅是一種銷售工具。這是淘寶應用品牌建立和用戶參與的重要且永續的方法。

Second, in line with our value positioning as an Internet consumption platform, we've now put in place a complete matrix of sales models, brand marketing-driven sales, everyday low-priced product sales and live streaming content driven sales. These 3 sales models are independent and complementary. In combination, they provide one-stop comprehensive value to Taobao app users. Leveraging our universal supply, this sales matrix provides the consumer finds goods option, allowing users with specific purchase intent to find exactly what they want through fast, accurate search. It also allows users with no specific purchase intent to have fun browsing, enabling goods to find consumers. And even users who don't want to buy anything right away, can enjoy learning encyclopedic knowledge from relevant lifestyle and consumption content, i.e., sowing seeds.

其次，根據我們作為網路消費平台的價值定位，我們現在已經形成了完整的銷售模式矩陣，品牌行銷帶動銷售，日常低價產品銷售和直播內容帶動銷售。這3種銷售模式既獨立又互補。它們結合起來，為淘寶應用用戶提供一站式綜合價值。利用我們的普遍供應，這個銷售矩陣為消費者提供了尋找商品的選擇，讓有特定購買意願的用戶透過快速、準確的搜尋找到他們想要的東西。它還可以讓沒有特定購買意願的用戶享受瀏覽的樂趣，讓商品找到消費者。即使用戶不想立即購買任何東西，也可以從相關的生活方式和消費內容中學習百科知識，即播種。

As we said, there's no question that the Taobao app has everything you could want or need. The only question is, can you think of everything you need? Or going forward, even if you can't think of what you need, no matter, the Taobao app will help you do the thinking. All you need to do is come to the Taobao app and you will have a great experience. Different users can get exactly what they want and need and have a fun time. And besides live streaming, which I just discussed, the total time spent on short videos posted on (inaudible) more than quadrupled in the September quarter. Overall total time spent by users on the Taobao app is also growing.

正如我們所說，毫無疑問，淘寶應用程式擁有您想要或需要的一切。唯一的問題是，你能想到你需要的一切嗎？或者往前走，即使你想不出你需要什麼，沒關係，淘寶app會幫你思考。您只需登陸淘寶APP，即可獲得精彩的體驗。不同的使用者可以準確地得到他們想要和需要的東西，並享受愉快的時光。除了我剛才討論的直播之外，在（聽不清楚）上發布的短視頻上花費的總時間在 9 月份的季度增加了四倍多。用戶在淘寶應用程式上花費的總時間也在成長。

And finally, in light of the clear trend of stratification in China's consumer market, we've engaged in a comprehensive exercise to build price competitiveness. We divide merchandise into 3 different tiers with different value propositions and manage price competitiveness by product category and by sales format. In this way, we're comprehensively strengthening the price competitiveness of merchandising. This clearly defined rigorous management matrix is generating business scale growth and operational certainty from merchants who have supply chain advantages and product competitiveness.

最後，針對中國消費市場明顯的分層趨勢，我們全面進行價格競爭力建設。我們將商品分為 3 個具有不同價值主張的不同層級，並以產品類別和銷售形式管理價格競爭力。這樣，我們就全面增強了商品的價格競爭力。這種清晰嚴謹的管理矩陣，正在為擁有供應鏈優勢和產品競爭力的商家帶來業務規模成長和營運確定性。

This supply, together with branded merchandise, creates a good price advantage on the Taobao platform, resulting in more transacting buyers and orders in the September quarter. For example, the number of 88 VIP members surpassed 30 million in the September quarter with continued growth in their GMV. And at the same time, in respect of users with low purchasing power, the scale of active consumers and conversion rate have increased significantly.

這種供應與品牌商品一起，在淘寶平台上創造了良好的價格優勢，從而在九月季度帶來了更多的交易買家和訂單。例如，9月季度88 VIP會員數量超過3000萬，GMV持續成長。同時，在低購買力用戶方面，活躍消費者規模與轉換率大幅提升。

In order for us to build a funner, more price competitive and universal Taobao app, a crucial underlying driver is technology. In the September quarter, we continued to roll out our comprehensive AI upgrade across the entire Taobao platform. Here I'd like to upgrade -- here I'd like to highlight a major upgrade to Alimama's Wanxiangtai product. The Wanxiangtai Unbounded version we released in August, it enables merchants to allocate their advertising budgets across all available properties within the Alibaba ecosystem using a single interface and leverages AI to provide data analytics and insights, to intelligently locate targeted users and to create AI-generated advertising content.

為了讓我們打造一個更有趣、更具價格競爭力、更通用的淘寶應用，一個關鍵的底層驅動力是技術。在九月這個季度，我們繼續在整個淘寶平台上推出全面的人工智慧升級。這裡我想升級一下——這裡我想強調一下阿里媽媽萬象泰產品的重大升級。我們在8月發布的萬象泰無界版本，讓商家能夠透過單一介面在阿里巴巴生態系統內的所有可用資產上分配廣告預算，並利用人工智慧提供數據分析和洞察，智慧定位目標用戶並創建人工智慧產生的廣告廣告內容。

So the upgrade enables merchants to optimize their advertising spending and to significantly enhance campaign efficiency, conversion rates and ROI. So the Wanxiangtai upgrade has resulted in growth in the number of advertisers.

因此，此次升級使商家能夠優化其廣告支出，並顯著提高廣告活動效率、轉換率和投資回報率。所以萬向泰的升級帶來了廣告主數量的成長。

Next, I'd like to spend a little time talking about this year's 11.11. During 11.11 this year, we achieved comprehensive growth in the number of merchants, transacting buyers, orders and GMV. Even more importantly, though, this year's 11.11 was a test of our strategy this year. So let me share with you here the progress on several of our key initiatives as seen during this year's 11.11. So starting with price competitiveness.

接下來我想花一點時間談談今年的11.11。今年11.11期間，我們實現了商家數、交易買家數、訂單數、GMV的全面成長。但更重要的是，今年的 11.11 是對我們今年策略的考驗。因此，讓我在此與大家分享今年 11.11 期間我們的幾項關鍵舉措的進展。所以從價格競爭力開始。

First, price competitiveness increased significantly with direct price reductions and everyday low prices beyond basket-based discounts for multiple purchases. Price competitiveness is what putting users first and creating value for users is really all about. In the past, we organized merchants to provide good prices to consumers through basket-based discounts that satisfied some consumers but others found it too complicated. Building on all the efforts we've made over the last half year to build price competitiveness.

首先，價格競爭力顯著增強，直接降價和每日低價，超出了基於籃子的多次購買折扣。價格競爭力才是用戶至上、為用戶創造價值的根本所在。過去，我們組織商家透過一攬子折扣的方式向消費者提供優惠價格，一部分消費者滿意，但也有一部分消費者覺得太複雜。基於我們過去半年為建立價格競爭力所做的所有努力。

During this year's 11.11 we successfully organized direct price reduction and everyday low price offerings in addition to those basket size-based discounts. This comprehensively strengthened price competitiveness on Taobao and Tmall. As a result, we achieved satisfactory results in terms of new user acquisition, existing user retention, overall purchase conversion rates and repurchase rates. For example, the number of 88 VIP members further grew and reached 32 million. And our enhanced price competitiveness gives us stronger confidence in everyday sales outside of large campaigns.

今年11.11期間，除了基於籃子大小的折扣外，我們還成功舉辦了直接降價和每日低價活動。這全面增強了淘寶、天貓的價格競爭力。結果，我們在新用戶獲取、現有用戶保留、整體購買轉換率和重購率方面取得了令人滿意的成績。例如，88 VIP會員數量進一步成長，達到3,200萬人。我們增強的價格競爭力使我們對大型活動以外的日常銷售更有信心。

Secondly, our product granularity based matrix of sales models began to pay off. As I mentioned, one of our milestones in the September quarter was getting this matrix in place. 11.11 was the first real-world test of our ability to deploy all of brand marketing, everyday low price and live streaming in a coordinated way during a large-scale campaign with granularity at the level of store and of product.

其次，我們基於產品粒度的銷售模型矩陣開始獲得回報。正如我所提到的，我們在九月季度的里程碑之一就是建立了這個矩陣。 11.11 是我們在商店和產品層面的大規模活動中以協調的方式部署所有品牌行銷、每日低價和直播的能力的第一次現實世界測試。

By launching products with us here, large brands are taking excellent advantage of Tmall's Hey Box to intensively launch new products, can lead new consumption trends in China. In terms of everyday low price, we achieved explosive growth with both of the Taobao Good Price Festival and CNY 10 billion subsidy programs. In terms of the live streaming content driven sales model, merchant-operated live streaming made huge breakthroughs with merchant-operated live streaming accounting for close to 70% of all the dozens of live streaming rooms that generated over CNY 1 billion in sales. As a result of this test, we are more confident that the Taobao app is the best one-stop platform for merchants to manage diversified users and merchandise across all phases of product life cycles and to achieve long-term certainty for their business. And we're all the more clear about how to best serve these merchants.

透過在這裡推出產品，大品牌利用天貓小黑盒的絕佳優勢，集中推出新品，可以引領中國新的消費趨勢。天天低價方面，借助淘寶好價節和百億補貼，實現爆炸性成長。在直播內容驅動的銷售模式上，商家直播取得了巨大突破，在數十個銷售額超過10億元的直播間中，商家直播佔比接近70%。透過這次測試，我們更加確信淘寶APP是商家在產品生命週期各個階段管理多元化用戶和商品、實現業務長期確定性的最佳一站式平台。我們更清楚如何最好地為這些商家提供服務。

Third, we've begun to explore new operating models for new supply. What makes Taobao universal is the rich and diverse merchant ecosystem on the Taobao platform. They are the foundation of rich supply on Taobao. Over the past few months, we've made some adjustments to optimize the supply mix on the platform. Building on our base of Tmall branded merchants, we've further grown the number of channel merchants and white label factory sellers. But not all merchants are good at online operations and there's no reason for us to force them all to become good at everything. Some white label merchants, for example, excel at lean manufacturing and can produce large volumes of high-quality goods at low cost.

三是開始探索新供給新營運模式。淘寶之所以普及，是因為淘寶平台上豐富多元的商家生態系統。它們是淘寶豐富貨源的基礎。在過去的幾個月裡，我們做了一些調整來優化平台上的供應結構。在天貓品牌商家基礎上，我們進一步增加了通路商戶和白標工廠賣家的數量。但並不是所有商家都擅長線上運營，我們沒有理由強迫他們都擅長所有事情。例如，一些白標商家擅長精實製造，能夠以低成本生產大量高品質的商品。

So during 11.11, we tested semi consignment and full consignment models targeting them. This allows the white label manufacturers to do what they do best. They're responsible for producing good merchandise and we are responsible for helping them sell it. This pilot initiative is just getting started and we will look forward to updating you further on future earnings calls. For Taobao and Tmall each year's 11.11 is a large-scale test of the strategies and tactics we've been deploying since the beginning of the year.

所以在11.11期間，我們針對他們測試了半寄售和全寄售模式。這使得白標製造商能夠做他們最擅長的事情。他們負責生產優質商品，我們負責幫助他們銷售。這項試點計畫才剛開始，我們期待在未來的財報電話會議上進一步向您通報最新情況。對於淘寶和天貓來說，每年的11.11都是對我們年初以來部署的戰略和戰術的大規模考驗。

This year, the business results we achieved, the competencies we honed and all of the feedback we received from users and merchants validated the correctness of our 3 key strategies of putting users first, building a prosperous ecosystem and driving growth with technology. Chinese e-commerce market will be a highly competitive landscape for the long term. The road ahead will be long and difficult. I will remain firmly committed to and will not change our strategies, our focus and our investment plans, guided by the principle of putting users first. As long as we resolutely stay the course of investing and upgrading, we can certainly create a universal Taobao app that is both more fun and more price competitive. Over this 3-year business cycle, our rich and diversified monetization products will enable us to create a virtuous cycle for users, merchants and the platform. Thank you.

今年，我們取得的業績、磨練的能力以及來自用戶和商家的反饋都驗證了我們「用戶至上」、「共建繁榮生態」、「科技驅動」三大策略的正確性。長期來看，中國電子商務市場將是一個競爭激烈的格局。前面的路將是漫長而艱難的。我將堅定不移地堅持用戶至上的策略、重點和投資計劃，不會改變。只要我們堅定不移地投入和升級，一定能打造出一款更好玩、更具價格競爭力的通用淘寶應用。在這三年的商業週期中，我們豐富、多元化的變現產品將使我們能夠創造使用者、商家和平台的良性循環。謝謝。

And next, I'll be handing over to Jiang Fan.

接下來就交給蔣凡了。

Well, hi, everyone. I'm delighted to speak with you all during this earnings call. AIDC continued to maintain rapid growth this quarter amidst an uncertain international market environment. This progress was a result of our sustained expansion in the different markets we serve as well as our product and technology innovations, business model transformation and efficiency improvement in our supply chain services, all of which realized greater value for our customers.

嗯，大家好。我很高興在這次財報電話會議上與大家交談。在國際市場環境不確定的情況下，本季AIDC持續保持快速成長。這項進步得益於我們在所服務的不同市場的持續拓展，以及我們在供應鏈服務方面的產品和技術創新、商業模式轉型和效率提升，所有這些都為客戶實現了更大的價值。

Next, let me provide more details. Starting with the business model transformation and supply chain services upgrade. So as you all know, over the past few months, AliExpress rolled out a brand-new service model called AE Choice. So put simply, we've upgraded from a pure platform cross-border model to a business model that offers more supply chain services. On the one hand, the platform has dramatically reduced the complexity of doing business for merchants, allowing more diverse merchandise to enter the platform. On the other hand, with the platform taking responsibility for end-to-end consumer services, delivery time has improved dramatically, greatly improving consumers' experience.

接下來，讓我提供更多細節。從商業模式轉型和供應鏈服務升級著手。大家知道，在過去的幾個月裡，速賣通推出了一個全新的服務模式，叫做AE Choice。簡單來說，我們從單純的平台跨境模式升級為提供更多供應鏈服務的商業模式。一方面，平台大幅降低了商家做生意的複雜度，讓更多元的商品進入平台。另一方面，隨著平台承擔起端到端的消費者服務，配送時效大幅提升，大大提升了消費者的體驗。

AE Choice has already achieved rapid order growth over the past few months as a result of this business model transformation and supply chain services upgrade. In collaboration with Cainiao, we began piloting our global 5-day delivery service in Spain and other countries. And we believe that continually enhancing services to customers is the basis for long-term development of the platform.

透過業務模式轉型和供應鏈服務升級，AE Choice在過去幾個月已經實現了訂單的快速成長。我們與菜鳥合作，開始在西班牙等國家試行全球五日達服務。我們相信，不斷加強對客戶的服務是平台長期發展的基礎。

Second, product technology innovation, AIDC serves consumers in different countries and regions. So we need to continually optimize user experience to meet local consumer needs. We're committed to driving ongoing improvement in platform commerce efficiency and to upgrading customer experience through product and technology innovation.

二是產品技術創新，AIDC服務不同國家和地區的消費者。所以我們需要不斷優化使用者體驗，滿足當地消費者的需求。我們致力於推動平台商務效率的持續提高，並透過產品和技術創新提升客戶體驗。

Over the past quarter, we continued to see the value generated by these investments. For example, we are actively leveraging AI to enhance merchant operating efficiency. This quarter, alibaba.com launched new AI-based digital products for foreign trade. These AI products are tightly integrated throughout the entire foreign trade value chain features, include smart launch and management of merchandise, market analysis, customer interaction, real-time translation for video chats, covering many important links in the foreign trade business. Leveraging digital technology, merchants can export their goods to global markets more efficiently and achieve higher operating efficiency with certainty.

在過去的季度中，我們繼續看到這些投資所產生的價值。例如，我們積極利用人工智慧來提高商家營運效率。本季度，阿里巴巴推出了新的基於人工智慧的外貿數位產品。這些人工智慧產品緊密結合了整個外貿價值鏈的功能，包括商品智慧投放和管理、市場分析、客戶互動、視訊聊天即時翻譯等，涵蓋了外貿業務的許多重要環節。借助數位技術，商家可以更有效率地將貨物出口到全球市場，並確定實現更高的營運效率。

Third, our progress in different regional markets around the world. Last quarter, we achieved quite good growth in different regional markets in Turkey. Trendyol maintained rapid growth and profitability at scale while also expanding into neighboring markets. In Southeast Asia, Lazada's overall financial situation has also improved significantly. And going forward, we'll continue to focus on enhancing platform operation efficiency and on sharpening our differentiated competitive advantage so as to achieve long-term sustainable development.

第三，我們在全球不同區域市場的進展。上季我們在土耳其不同區域市場都取得了相當不錯的成長。 Trendyol 保持了快速成長和規模獲利能力，同時也擴展到鄰近市場。在東南亞，Lazada的整體財務狀況也顯著改善。未來，我們將持續專注於提昇平台營運效率，強化差異化競爭優勢，實現長期永續發展。

In Germany, we announced the acquisition of a leading local B2B platform Visable. Post-acquisition, alibaba.com will operate 2 brands in Europe and will do business on multiple B2B trade platforms, furthering alibaba.com's international expansion.

在德國，我們宣布收購當地領先的 B2B 平台 Visable。收購後，阿里巴巴將在歐洲營運2個品牌，並在多個B2B貿易平台上開展業務，進一步推動阿里巴巴的國際擴張。

Looking ahead, we see some high confidence market opportunities including further expansion of AE Choice and opportunities in some emerging markets. Over the next few quarters, our short-term business focus will be on rapidly expanding our business scale and market share. We will actively invest in these areas to achieve growth. The mission of AIDC is to help global SMEs engage in digital trade. During this year's 11.11, we supported merchants in multiple countries as they directly provided services to consumers in over 100 countries and helped them achieve rapid business growth.

展望未來，我們看到了一些高信心的市場機會，包括 AE Choice 的進一步擴張以及一些新興市場的機會。未來幾個季度，我們的短期業務重點將是快速擴大業務規模和市場份額。我們將積極投資這些領域以實現成長。 AIDC的使命是幫助全球中小企業參與數位貿易。今年11.11期間，我們支持多個國家的商家直接為100多個國家的消費者提供服務，幫助他們實現了業務的快速成長。

Taking AliExpress as an example, with the growth of AE Choice, the volume of merchandise placed by merchants in warehouses grew by several fold compared to last year. And the Choice warehouses grew by several fold compared to last year. And a large number of SME merchants achieved fast sales growth during 11.11. Going forward, we'll continue to create long-term value for global merchants and consumers through product and technology innovation and consumer service upgrades and will continue to enable merchants to achieve sustained business growth on the platform. Thank you.

以速賣通為例，隨著AE Choice的成長，商家入倉的商品數量較去年成長數倍。 Choice 倉庫與去年相比成長了數倍。而一大批中小企業商家在11.11期間實現了銷售的快速成長。未來，我們將持續透過產品技術創新、消費者服務升級，為全球商家和消費者創造長期價值，並持續協助商家在平台上實現業務持續成長。謝謝。

Thank you, Jiang Fan. We achieved healthy financial performance in the past quarter, driven by steady business momentum and improving operating efficiency in several major businesses. Total consolidated revenue was RMB 224.8 billion, an increase of 9%. Consolidated adjusted EBITDA increased 18% to RMB 42.8 billion. Non-GAAP diluted earnings per share was RMB 1.95, an increase of 21%.

謝謝你，蔣凡。由於穩定的業務動能和幾項主要業務營運效率的提高，我們在過去一個季度實現了健康的財務表現。合併總收入為人民幣2,248億元，成長9%。綜合調整後 EBITDA 成長 18%，達到 428 億元。非美國通用會計準則攤薄每股收益為人民幣1.95元，成長21%。

Since July 1 to November 15, we repurchased approximately USD 3 billion worth of our shares, which accounted for 1.3% of total shares outstanding. This is supported by our continuous generation of strong free cash flow. During the quarter, free cash flow was RMB 45.2 billion or USD 6.2 billion, an increase of 27%. Over the last several months, the capital management committee -- and took a review on ways to improve our ROIC and potential use of cash. Our priority in cash deployment in the following order: firstly, in innovation for growth; secondly, reduce total shares outstanding to achieve accretive earnings per share through stock repurchases; and three, reward long-term investors via an annual dividend. Thus, cash will be returned to shareholders through a combination of share repurchase and dividends.

自7月1日至11月15日，我們回購了價值約30億美元的股票，佔流通股總數的1.3%。這是我們不斷產生的強勁自由現金流的支持。本季自由現金流為 452 億元人民幣（62 億美元），成長 27%。在過去的幾個月裡，資本管理委員會對提高我們的投資報酬率和潛在現金使用的方法進行了審查。我們現金配置的優先順序是：一是創新促進成長；其次，減少流通股總數，透過股票回購實現每股盈餘的增值；第三，透過年度股利獎勵長期投資者。因此，現金將透過股票回購和股利的結合方式返還給股東。

Accordingly, in addition to our USD 40 billion share repurchase program, we are pleased to announce that our Board of Directors has approved an annual dividend for fiscal year 2023 in the amount of USD 0.125 per ordinary share or USD 1 per ADS. The aggregate amount of the dividend will be approximately USD 2.5 billion.

因此，除了我們 400 億美元的股票回購計畫之外，我們很高興地宣布，我們的董事會已批准 2023 財年的年度股息，每股普通股 0.125 美元或每份美國存託股 1 美元。股息總額約25億美元。

Now let's look at cost trends as a percentage of revenue, excluding SBC. Cost of revenue ratio decreased 1 percentage point to 62% during this quarter. Product development expenses ratio remained stable at 5% during the quarter. Sales and marketing expense ratio remained stable at 11% in this quarter. General and administrative expenses ratio decreased 1 percentage point to 3% 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）。本季營收成本比率下降 1 個百分點至 62%。本季產品開發費用率穩定在5%。本季銷售和行銷費用率穩定在11%。本季管理費用率下降1個百分點至3%。

Our net income was RMB 26.7 billion, an increase of RMB 49.2 billion compared to a net loss of RMB 22.5 billion the same quarter last year. The increase was primarily due to a net gain from the increase in fair value of our equity investments versus a net loss in the same quarter last year and an increase in adjusted EBITDA. Our non-GAAP net income, which excluded net gains or losses from investment fair value changes and other items was RMB 40.2 billion, an increase of RMB 6.4 billion.

我們的淨利潤為267億元人民幣，比去年同期淨虧損225億元增加了492億元。這一增長主要是由於我們股權投資公允價值增加帶來的淨收益（對比去年同期的淨虧損）以及調整後 EBITDA 的增加。我們的非公認會計準則淨利潤（不包括投資公允價值變動和其他項目的淨損益）為人民幣 402 億元，增加 64 億元。

As of September 30, 2023, we continue to maintain a strong net cash position of RMB 457.8 billion or USD 62.7 billion. Free cash flow of this quarter was RMB 45.2 billion, an increase of 27%. The increase was primarily due to an increase in profitability and a decrease in capital expenditure, partly offset by net changes in working capital.

截至 2023 年 9 月 30 日，我們繼續保持強勁的淨現金頭寸，達 4,578 億元人民幣（627 億美元）。本季自由現金流為人民幣452億元，成長27%。這一增長主要是由於盈利能力的提高和資本支出的減少，部分被營運資本淨變化所抵消。

Now let's look at the segment results, starting with Taobao and Tmall Group. Revenue for Taobao and Tmall Group was RMB 97.7 billion, an increase of 4%. Customer management revenue increased by 3% to RMB 68.7 billion, primarily due to the increase in merchants' willingness to invest in advertising, partly offset by the modest decline in Taobao and Tmall online paid GMV. Execution of our strategies, especially that of price competitiveness strategy has resulted in increase in order volume and more consumers.

現在讓我們來看看細分市場的結果，首先是淘寶和天貓集團。淘寶和天貓集團營收為人民幣977億元，成長4%。客戶管理收入成長3%至人民幣687億元，主要由於商家投資廣告的意願增加，但部分被淘寶和天貓在線上支付GMV的小幅下降所抵消。我們的策略，特別是價格競爭策略的執行導致了訂單量的增加和更多的消費者。

Direct sales and others revenue increased 6% to RMB 23.9 billion, primarily due to strong sales driven by the consumer electronics and appliances. China commerce wholesale business revenue increased 18% to RMB 5.1 billion primarily due to an increase in revenue from value-added services provided to paying members.

直接銷售及其他收入成長 6% 至人民幣 239 億元，主要由於消費性電子產品和電器的強勁銷售推動。中國商業批發業務收入成長18%至人民幣51億元，主要因為向付費會員提供的增值服務收入增加。

Taobao and Tmall Group adjusted EBITDA increased by 3% to RMB 47.1 billion. The increase was primarily due to narrowing losses in certain businesses and increase in profit from customer management services, partly offset by the increase in investment in user acquisition and retention as well as the increase in investment in content.

淘寶和天貓集團調整後的 EBITDA 成長 3%，達到 471 億元。這一成長主要是由於部分業務虧損收窄以及客戶管理服務利潤增加，但部分被用戶獲取和留存投資的增加以及內容投資的增加所抵消。

Alibaba International Digital Commerce Group revenue was RMB 24.5 billion, an increase of 53%. Revenue from international commerce retail business increased by 73% to RMB 19 billion. The increase in revenue was primarily due to strong combined order growth of AIDC's retail businesses driven by the solid performance of all major retail platforms, the revenue contribution from AliExpress's Choice and the improvements in monetization.

阿里巴巴國際數位商務集團營收為人民幣245億元，成長53%。國際商業零售業務收入成長73%至人民幣190億元。收入的成長主要是由於所有主要零售平台的穩健業績、速賣通精選的收入貢獻以及貨幣化的改善推動了AIDC零售業務的強勁綜合訂單增長。

Revenue from our international commerce wholesale group businesses increased by 9% to RMB 5.5 billion. The increase was primarily due to an increase in revenue generated by cross-border related value-added services. AIDC's adjusted EBITDA was a loss of RMB 384 million. Losses significantly narrowed primarily because of improved margins of Lazada and Trendyol, partly offset by the increase in investment in new business, such as (inaudible) and AliExpress Choice.

國際商業批發集團業務收入成長9%至人民幣55億元。這一增長主要是由於跨境相關增值服務產生的收入增加。 AIDC調整後的EBITDA為虧損3.84億元。虧損大幅收窄，主要是因為 Lazada 和 Trendyol 的利潤率提高，但部分被新業務投資的增加所抵消，例如（聽不清楚）和 AliExpress Choice。

Total revenue from Cainiao grew 25% to RMB 22.8 billion primarily contributed by the increase in revenue from cross-border fulfillment solutions. During this quarter, Cainiao rolled out its premium 5-day delivery service for consumers in 8 countries and regions. Importantly, the service enhanced AliExpress Choice's overall shopping experience and order volume for Choice ramped up rapidly during the quarter. Cainiao adjusted EBITDA was a profit of RMB 906 million compared to RMB 125 million in the same quarter last year. The increase was primarily because of improved operating results from cross-border fulfillment solutions, technology and other services as well as domestic logistics services.

菜鳥總收入成長25%至人民幣228億元，主要得益於跨國履行解決方案收入的成長。本季度，菜鳥為8個國家和地區的消費者推出優質五日達服務。重要的是，該服務增強了速賣通精選的整體購物體驗，並且該季度訂單量迅速增加。菜鳥調整後 EBITDA 為 9.06 億元，去年同期為 1.25 億元。這一成長主要是由於跨境履行解決方案、技術和其他服務以及國內物流服務的經營績效改善。

Local service group revenue in September quarter grew 16% to RMB 15.6 billion, primarily due to strong growth in both Ele.me and Amap businesses. During the quarter, Ele.me's orders volume grew year-over-year and quarter-over-quarter driven by increasing number of transacting users and higher purchase frequency per user. During this quarter, order growth of Amap increased rapidly due to its strengthening position as a comprehensive to-destination service platform as well as strong travel demand during the summer season.

9月當季本地服務集團營收成長16%至156億元人民幣，主要得益於餓了麼和高德地圖業務的強勁成長。本季度，由於交易用戶數量的增加和每用戶購買頻率的提高，餓了麼的訂單量同比和環比增長。本季度，由於高德綜合目的地服務平台地位的增強以及夏季旺盛的出行需求，高德地圖訂單增長迅速。

During an 8-day holiday period from September 29 to October 6, the combined Mid-Autumn Festival and National Day holiday, Amap recorded an all-time high of over 280 million peak DAU as the Chinese economy experienced a strong recovery in travel demand.

9月29日至10月6日的8天中秋國慶假期期間，隨著中國經濟出行需求的強勁復甦，高德地圖日活躍用戶高峰突破2.8億，創歷史新高。

Local services group adjusted EBITDA was a loss of RMB 2.6 billion this quarter compared to a loss of RMB 3.3 billion in the same quarter last year, primarily due to the continued narrowing of losses from our to-home business driven by Ele.me's improved unit economics per order and increasing scale.

本季本地服務集團調整後 EBITDA 虧損 26 億元人民幣，而去年同期虧損 33 億元人民幣，主要是由於餓了麼業務的改善帶動到家業務虧損持續收窄。每個訂單的經濟性和規模的擴大。

Revenue from Cloud Intelligence Group was RMB 27.6 billion in this quarter, an increase of 2% year-over-year revenue growth was mainly driven by Alibaba consolidated businesses. Revenue excluding Alibaba consolidated businesses slightly decreased, primarily due to our continued effort to improve revenue quality by reducing the revenue from project-based contracts that are of low margins, which was mostly offset by an increase in revenue from our public cloud products and services.

本季雲端智慧集團營收為人民幣276億元，較去年成長2%，營收成長主要由阿里巴巴合併業務推動。不包括阿里巴巴合併業務的收入略有下降，主要是由於我們繼續努力透過減少低利潤的基於專案的合約收入來提高收入質量，這大部分被我們的公有雲產品和服務收入的成長所抵消。

Going forward, we will continue to enhance the quality of our revenue by reducing certain low-margin project-based contracts. During this quarter, our public cloud revenue represented over 70% of our external cloud revenue and grew healthily year-over-year, reflecting the stickiness in demand from customers across major industries. Part of the public cloud revenue growth was driven by the strong demand for model training and related services on cloud infrastructure. Looking forward, revenue from model training and related services may be constrained in the foreseeable future given the expanded export control rules imposed by the U.S. to further restrict the export to China of advanced computing chips and semiconductor manufacturing equipment.

展望未來，我們將透過減少某些低利潤項目合約來繼續提高收入品質。本季度，我們的公有雲收入佔外部雲端收入的70%以上，且較去年同期健康成長，反映出各主要產業客戶的需求黏著度。公有雲收入成長的部分原因是雲端基礎架構上模型訓練和相關服務的強勁需求。展望未來，鑑於美國擴大出口管制規則以進一步限制先進運算晶片和半導體製造設備向中國出口，模型訓練及相關服務的收入在可預見的將來可能會受到限制。

We believe the long-term growth opportunities driven by AI services have just begun. AI will enable the rapid innovation of all industries and the demand for AI-driven cloud computing services will continue to grow significantly in our view. We will continue to explore our native solutions to fulfill the needs of our customers.

我們相信人工智慧服務驅動的長期成長機會才剛開始。我們認為，人工智慧將賦能各產業快速創新，人工智慧驅動的雲端運算服務需求將持續大幅成長。我們將繼續探索我們的本地解決方案來滿足客戶的需求。

Cloud's adjusted EBITDA was increased by 44% to RMB 1.4 billion, primarily due to increase in revenue from public cloud products and services as well as improving operating efficiency. Businesses within the DME segment continued to achieve synergies. On September 19, Alibaba Pictures announced its acquisition of Damai, aiming to leverage Damai's leading position in the off-line performance market to expand influence in the off-line entertainment industry. During the quarter, Damai maintained its industry-leading position with triple-digit GMV growth and improving profitability.

雲端運算調整後EBITDA成長44%至人民幣14億元，主要由於公有雲產品和服務收入的增加以及營運效率的提高。 DME板塊內的業務持續實現協同效應。 9月19日，阿里影業宣布收購大麥，旨在藉助大麥在線下演出市場的領先地位，擴大線下娛樂產業的影響力。本季，大麥持續維持業界領先地位，GMV 成長達三位數，獲利能力不斷提升。

Revenue from our DME group was RMB 5.8 billion, an increase of 11%, primarily driven by the strong revenue growth of off-line entertainment business of Damai and Alibaba Pictures, as well as the increase in Youku subscription revenue partly offset by the decrease in Youku's advertising revenue. Adjusted EBITDA was a loss of RMB 201 million compared to a loss of RMB 362 million. The improved adjusted EBITDA was mainly due to the increase in profitability of Damai and Alibaba Pictures.

DME集團營收為人民幣58億元，成長11%，主要是由於大麥和阿里影業的線下娛樂業務收入強勁增長，以及優酷訂閱收入的增長被部分收入下降所抵消。優酷的廣告收入。調整後 EBITDA 虧損 2.01 億元人民幣，而虧損則為 3.62 億元。調整後EBITDA的改善主要是由於大麥和阿里影業的獲利能力增加。

Lastly, I'd like to note that starting from this quarter, we reclassified the revenue of our DingTalk business, which was previously reported under Cloud Intelligence Group to All Others. The purpose of which was to provide DingTalk with greater autonomy and to promote innovation and enhance competitiveness. Within All Other segment, DingTalk and Intelligent Information Platform, are among our first batch of strategic level innovation businesses that we are incubating as future growth drivers. DingTalk's paying enterprise customers have reached over 100,000. And during the quarter ended September 30, 2023, number of paying enterprise customers grew around 40%. DingTalk continues to upgrade its products and services to serve more enterprises and organizations. It has recently launched 7 product lines that had been fully integrated with our proprietary Tongyi large models, which will continue to drive growth in enterprise customers' adoption.

最後，我想指出的是，從本季度開始，我們對釘釘業務的收入進行了重新分類，此前該業務在雲端智慧集團下向所有其他部門報告。其目的是賦予釘釘更大的自主權，促進創新、增強競爭力。在所有其他業務中，釘釘和智慧資訊平台是我們培育的第一批策略級創新業務，作為未來的成長動力。釘釘付費企業客戶已突破10萬家。截至 2023 年 9 月 30 日的季度，付費企業客戶數量增加了 40% 左右。釘釘不斷升級產品和服務，服務更多企業和組織。它最近推出了7條產品線，與我們專有的統一大型號完全集成，這將繼續推動企業客戶採用的成長。

Our Intelligent Information Platform includes Quark, UCWeb and other businesses. Quark provides young users with a one-stop platform for information search, storage and consumption. During the month ended September 30, 2023, Quark continued to grow strongly with DAU up over 35%.

我們的智慧資訊平台包括Quark、UCWeb等業務。夸克為年輕用戶提供資訊搜尋、儲存和消費的一站式平台。截至 2023 年 9 月 30 日的一個月內，夸克持續強勁成長，每日活躍用戶成長超過 35%。

Revenue from All Others segment remained stable at RMB 48.1 billion, primarily due to the revenue growth contributed by Freshippo, Fliggy, Alibaba Health and Intelligent Information platform, partly offset by decrease in revenue from Sun Art. Adjusted EBITDA from All Others segment was a loss of RMB 1.4 billion compared to a loss of RMB 2.9 billion in the same quarter last year, primarily due to improved operating results from Freshippo, DingTalk and Fliggy. Thank you.

其他業務收入維持穩定在人民幣481億元，主要由於盒馬、飛豬、阿里健康和智慧資訊平台貢獻的收入成長，部分被高鑫零售的收入下降所抵銷。所有其他業務部門調整後 EBITDA 虧損 14 億元人民幣，而去年同期為虧損 29 億元人民幣，主要是由於盒馬、釘釘和飛豬的經營業績改善。謝謝。

That's the end of our prepared remarks. We can open up for Q&A.

我們準備好的發言就到此結束。我們可以開放問答。

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 the website within 1 week after the meeting. (foreign language).

大家好。今天的電話會議，歡迎您用中文或英文提問。第三方翻譯將為問答環節提供交替傳譯。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 週內將在網站上提供本次電話會議的雙語文字記錄。 （外語）。

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

操作員，請立即連接揚聲器和 SI 會議線。準備好後請開始問答環節。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。

(technical difficulty) new leadership team and also (inaudible) a key priority (inaudible). I think I'll kick-off with the cloud, kind of distribution (inaudible) the longer proceedings, as some investors were initially hoping for an extra return from the cloud distribution. Just how should we think about the ongoing reorganization and the (inaudible). And how should we think about shareholder return on a kind of next few year basis? How do we think besides the newly announced regular dividend? And do we consider any further upsizing of the buyback or even a special dividend considering our [USD 63 billion] of net cash. And given that it's 2 months into your role, is that, as you see the -- you'd like to keep prices and priorities that you have from here both for the next (inaudible) ahead.

（技術困難）新的領導團隊以及（聽不清楚）一個關鍵優先事項（聽不清楚）。我想我將從雲端開始，這種分配（聽不清楚）的過程較長，因為一些投資者最初希望從雲端分配中獲得額外的回報。我們應該如何考慮正在進行的重組和（聽不清楚）。我們該如何考慮未來幾年的股東回報？除了新宣布的定期股息之外，我們如何看待？考慮到我們的 [630 億美元] 淨現金，我們是否會考慮進一步擴大回購規模，甚至發放特別股利。考慮到您上任已經兩個月了，正如您所看到的那樣，您希望在下一個（聽不清楚）未來保留您現在的價格和優先事項。

[Interpreted] Ronald, it's a very good question. This is Joe Tsai. So if -- there are multiple ways to provide value to shareholders. And we have previously announced a multitude of approaches from full spin-off of the cloud business to share repurchase. And we've already explained the strategic thinking and the rationale for not doing the spin-off. Now there are alternative ways to provide enhanced returns to shareholders. And right now, our thinking is that we're very excited about our multiple businesses from Taobao and Tmall Group to cloud that we should get into a phase of investing for growth.

[解釋]羅納德，這是一個非常好的問題。這是蔡喬伊。因此，如果—有多種方法可以為股東提供價值。我們之前已經宣布了從全面剝離雲端業務到股票回購等多種方法。我們已經解釋了戰略思維和不進行分拆的理由。現在有其他方法可以為股東提供更高的回報。目前，我們的想法是，我們對從淘寶、天貓集團到雲端的多項業務感到非常興奮，我們應該進入投資成長階段。

And Eddie has laid out a very clear strategy and multiple priorities for our investments. So I think that gives you a pretty good direction of the uses of our cash as well as a thinking about how we can highlight the value of our businesses rather than through full spin-offs but investing and creating a sustainable growth model in these kind of businesses. So I think you should think about our core businesses coming to a phase where there is a reset for sure. But I think going forward, we feel very optimistic and we feel very confident about the fundamentals and all the tools and ability that we have built up, capabilities that we have built up over the years to continue to invest and show value to our investors that way.

艾迪為我們的投資制定了非常明確的策略和多個優先事項。因此，我認為這為您提供了我們現金使用的一個很好的方向，並思考我們如何突出我們業務的價值，而不是透過完全分拆，而是在這些領域進行投資和創建可持續成長模式。企業。所以我認為你應該考慮我們的核心業務肯定會進入一個重置的階段。但我認為展望未來，我們感到非常樂觀，我們對基本面以及我們已經建立的所有工具和能力非常有信心，我們多年來建立的繼續投資並向投資者展示價值的能力方式。

As far as the stock repurchase is concerned, we're under -- still executing our overall $4 billion share repurchase plan that was approved by the Board. And as I said, as of today, we have $13 billion of dry powder left and we will continue to execute that buyback. We're not going to consider a onetime cash dividend. We think, as we laid out the priority for cash use is to invest for future growth. And then executing our current share repurchase plan and #3, as Toby has said, we have announced a dividend. So those are the plans for the uses of our cash.

就股票回購而言，我們正在執行董事會批准的 40 億美元的股票回購計畫。正如我所說，截至今天，我們還剩下 130 億美元的乾粉，我們將繼續執行回購。我們不會考慮一次性現金股利。我們認為，正如我們所指出的，現金使用的首要任務是投資於未來的成長。然後執行我們目前的股票回購計劃和#3，正如托比所說，我們已經宣布了股息。這些是我們現金的使用計劃。

Your next question comes from Alicia Yap with Citi Group.

您的下一個問題來自花旗集團的 Alicia Yap。

[Interpreted] My questions, firstly, relate to investment plans for Taobao and Tmall Group because recently, you have been increasing your investments. And I'm wondering if management could share with us in what areas you think those investments have yielded results that have exceeded your expectations? And in what areas you think there's still room to do better? And is the purpose of these investments more to regain market share? Or is it more about ensuring sustainable growth of GMV and of CMR? And then finally, we noted that in this year's 11.11, there was more collaboration with WeChat. And I'm wondering if you could talk to us about that experience and how the conversion rate was of users coming from WeChat as compared to other channels.

【解讀】我的問題，第一是關於淘寶、天貓集團的投資計劃，因為最近你們一直在加大投資。我想知道管理層是否可以與我們分享您認為這些投資在哪些領域產生的結果超出了您的預期？您認為哪些領域還有進步的空間？而這些投資的目的更多的是為了奪回市佔率嗎？或者更多的是為了確保GMV和CMR的可持續成長？最後，我們注意到今年的11.11，與微信的合作更多了。我想知道您是否可以和我們談談這種體驗以及來自微信的用戶與其他管道相比的轉換率如何。

[Interpreted] Yes. This is Trudy. Well, as Eddie has explained at Taobao and Tmall Group, we have 3 key strategic priorities, namely, putting users first, building an ecosystem for brands and merchants that thrive on realizing AI and technology-driven innovation. So those are the strategies and of course, all of the investments that we're making and we'll make will be intended to serve those strategies. So in terms of investing in users, we've made investments in building, of course, price competitiveness across the platform on increasing repurchase rate as well as on acquiring new users. And we've seen important payoffs on the Taobao app on all the KPIs we've discussed, including time spent, as well as number of active purchasers.

[解釋] 是的。這是特魯迪。正如Eddie在淘寶和天貓集團所解釋的那樣，我們有3個關鍵戰略重點，即用戶至上，為品牌和商家建立一個生態系統，實現人工智慧和技術驅動的創新。這些就是策略，當然，我們正在和將要進行的所有投資都將旨在服務這些戰略。因此，在用戶投資方面，我們在提高複購率以及獲取新用戶方面進行了投資，以建立整個平台的價格競爭力。我們已經在淘寶應用程式上看到了我們討論過的所有 KPI 的重要回報，包括花費的時間以及活躍購買者的數量。

In terms of our investments in enriching content, on Taobao, again, we're certainly seeing good payoffs from those investments. As we mentioned earlier, a very important one as we're seeing an increase in organic users, users who proactively open up their app and come to us. We've seen an increase in user time spent. And if you look at (inaudible) as well, again, we've achieved good growth in terms of number of users and their time spent there. So all of that really gives us all the more confidence that we need to continue with these investments, in enriching the content environment.

就我們在淘寶豐富內容方面的投資而言，我們確實看到了這些投資的良好回報。正如我們之前提到的，這是一個非常重要的問題，因為我們看到有機用戶的增加，這些用戶主動打開他們的應用程式並來到我們這裡。我們發現用戶花費的時間增加。如果您再看一下（聽不清楚），我們在用戶數量及其花費的時間方面取得了良好的成長。因此，所有這些確實讓我們更有信心，我們需要繼續進行這些投資，以豐富內容環境。

Also, as Eddie said, AI is the defining technology of our time and a very, very important driver going forward of growth in commerce. So we will, of course, continue to invest in AI, leveraging AI capabilities to enable merchants to grow sustainably and help them develop their businesses in the long term on the platform.

此外，正如艾迪所說，人工智慧是我們這個時代的決定性技術，也是推動商業成長的非常非常重要的驅動力。所以我們當然會繼續投資人工智慧，利用人工智慧的能力讓商家可以永續發展，幫助他們在平台上長期發展業務。

As another part of our effort to become a very strong content platform, we're also leveraging AI generated content using AIGC to lower the barrier to entry and make it easier to produce compelling content. I believe that AI will be able to unlock and create fresh new experiences and a lot of fun for consumers. It will be compelling for consumers. And an example of that is the new consumer-facing product called (inaudible).

作為我們努力成為一個非常強大的內容平台的另一部分，我們也利用 AIGC 來利用人工智慧生成的內容，以降低進入門檻，並更容易製作引人注目的內容。我相信人工智慧將能夠為消費者解鎖和創造全新的體驗和樂趣。這對消費者來說將具有吸引力。一個例子是名為（聽不清楚）的新的面向消費者的產品。

Finally, you asked about collaboration with WeChat. This is a very initial stage and its influence has been very limited. Our collaboration with WeChat has been focused on a few limited areas, one of which is traffic. In terms of co-construction of systems, we also worked on enhancing recommendation capacity. And in terms of policies, we also provided [CNY 100 million] in subsidies, as well as bilateral policy support.

最後，您詢問了與微信的合作。這是一個非常初級的階段，其影響非常有限。我們與微信的合作主要集中在幾個有限的領域，其中之一就是流量。在系統共建方面，我們也致力於提升推薦能力。在政策方面，我們也提供了[億元]補貼，以及雙邊政策支持。

Of course, Taobao is an open platform and we stand ready to work with all the partners and potential partners to provide the best services to our merchants.

當然，淘寶是一個開放的平台，我們隨時準備好與所有的合作夥伴和潛在的合作夥伴一起為我們的商家提供最好的服務。

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 a question regarding the opening remarks from Joe, about the target to increase return on invested capital to double digit. Can management share more about what kind of targets or how achievable this target in the next couple of years, specifically regarding the noncore business turning profitable? Any specific business unit that we think we can turn profitable within a certain period of time?

我對喬的開場白有一個疑問，就是將投資資本報酬率提高到兩位數的目標。管理階層能否多分享未來幾年的目標類型或如何實現該目標，特別是關於非核心業務扭虧為盈的情況？我們認為有哪些特定業務部門可以在一段時間內獲利？

(inaudible) [Interpreted] Okay. Gary, I will take this question. Yes, as Joe mentioned, actually, we are looking very closely to our ROIC. And we do set a target that we want to increase the ROIC to double digit in the next few years. There's a few ways we will take to achieve that target.

（聽不清楚）[已翻譯]好的。加里，我來回答這個問題。是的，正如喬所提到的，實際上，我們正​​在非常密切地關注我們的投資回報率。我們確實設定了一個目標，希望在未來幾年將投資報酬率提高到兩位數。我們將採取幾種方法來實現這一目標。

In all our businesses, if you like, actually, as Eddie mentioned, we do have core and noncore business. In addition, we will also have many of the investments sitting in our equity sort of like investments or even investing [associates]. So for all those investments, we are also a resource that been used to -- as part of the resource that we can utilize to enhance our ROIC.

在我們所有的業務中，如果你願意的話，實際上，正如艾迪所提到的，我們確實有核心和非核心業務。此外，我們的股權中還將有許多投資，類似投資甚至投資[聯營公司]。因此，對於所有這些投資，我們也是一種資源，可以用來提高我們的投資報酬率。

With respect to the core businesses, as Eddie explained, actually we will need to invest in innovation and growth. So for all these core businesses, the growth and the future profitability will help certainly generate more earnings, which will contribute to increase of ROIC.

至於核心業務，正如埃迪所解釋的那樣，實際上我們需要投資於創新和成長。因此，對於所有這些核心業務來說，成長和未來的獲利能力肯定會有助於產生更多的收益，這將有助於投資報酬率的增加。

And with respect to the noncore business and also the investments in our balance sheet that are no longer strategic or core to us, I think, on one hand, as Eddie mentioned, we would need those business to become profitable as early as possible. And also for some of the investments, we were also looking to the opportunity to monetize, which will give us cash and eventually, we can utilize the cash to give the return to the shareholders. So that will also help to increase our ROIC.

至於非核心業務以及我們資產負債表中不再具有策略性或核心性的投資，我認為，一方面，正如埃迪所提到的，我們需要這些業務儘早實現盈利。對於某些投資，我們也在尋找貨幣化的機會，這將為我們帶來現金，最終我們可以利用這些現金為股東帶來回報。這也將有助於提高我們的投資報酬率。

Your next question comes from Alex Yao with JPMorgan.

您的下一個問題來自摩根大通的 Alex Yao。

I have a question regarding the core business group. So as you guys discussed in the prepared remarks, you won't -- you decided not to proceed with a full spinoff of the cloud business. Is the withdraw of the spin-off and the IPO a temporary decision or a permanent decision? If market condition change or the financial (inaudible) change, would you reconsider this decision?

我有一個關於核心業務組的問題。因此，正如你們在準備好的發言中所討論的那樣，你們不會——你們決定不繼續完全剝離雲端業務。撤回分拆IPO是暫時決定還是永久決定？如果市場狀況發生變化或財務（聽不清楚）發生變化，您會重新考慮這個決定嗎？

And then related to the operation, I think you guys discussed to develop a sustainable growth model for the cloud business. Given of AI chip restriction from the U.S., can you talk about your thoughts on how this sustainable growth model will be?

然後與營運相關，我想你們討論了為雲端業務開發一個可持續成長的模型。鑑於美國對AI晶片的限制，您能談談您對這種可持續成長模式的看法嗎？

[Interpreted] Okay. Alex, this is a 2-part question. So I'll answer the first part and Eddie will answer the second part. About the -- our announcement to not proceed with the full spinoff. For us, this is -- when we announced the full spin-off, we were looking at a way to sort of a financial engineering way to show the value of the business. And that was when the business was operating in circumstances that we thought were predictable with our ability to project the business and communicate to investors and provide a level of transparency to investors who will independently hold the shares of Cloud Intelligence Group. But the circumstances have changed. And right now, rather than focus on financial engineering, we rather focus on figuring out how to grow the cloud business.

[解釋]好的。亞歷克斯，這是一個由兩部分組成的問題。所以我將回答第一部分，艾迪將回答第二部分。關於－我們宣布不再進行完整的分拆。對我們來說，當我們宣布全面分拆時，我們正在尋找一種金融工程方式來展示業務價值。當時，我們認為業務營運環境是可以預測的，我們有能力規劃業務、與投資者溝通，並為將獨立持有雲端智慧集團股份的投資者提供一定程度的透明度。但情況已經改變了。現在，我們不是專注於金融工程，而是專注於弄清楚如何發展雲端業務。

A big part of that is for us to -- for the group to provide cash to make investments because the -- in the AI-driven world to develop a full-blown business based on a very networked and highly scaled infrastructure, it requires investment. So we would rather show investors through the -- our operations of the cloud business rather than spinning it off. And hopefully, we can enhance value to shareholders as we deliver future growth revenues and profits in the future.

其中很大一部分是讓我們集團提供現金進行投資，因為在人工智慧驅動的世界中，要開發基於高度網路化和高度規模化基礎設施的成熟業務，需要投資。因此，我們寧願向投資者展示我們的雲端業務運營，而不是將其剝離。希望我們能夠在未來實現營收和利潤成長的同時，為股東提高價值。

As far as the sustainable business model, I'll let Eddie to answer that question.

至於永續的商業模式，我會讓艾迪來回答這個問題。

[Interpreted] Well, the question you've asked really is a critical one. There have been many changes in the situation in the market. But I'll come at this in 2 parts. In terms of business model, the CPU-centered traditional cloud computing business is one where we built up a strong portfolio over the last 14 years. In this part of the business going forward, as we said, we're going to place our focus on public cloud because we think public cloud is where we can achieve very strong network effects and scale effects and thereby provide very good value for money to our customers.

[解讀]嗯，你問的問題確實很關鍵。市場情勢發生了很多變化。但我將分成兩部分來討論這個問題。從業務模式來看，以CPU為核心的傳統雲端運算業務是我們在過去14年建立的強大業務組合。在未來的這部分業務中，正如我們所說，我們將把重點放在公有雲上，因為我們認為公有雲是我們可以實現非常強大的網路效應和規模效應的地方，從而為我們提供非常好的性價比。我們的顧客。

The second part of the business going forward into the future is GPU-based AI computing. And obviously, there have been some major changes in the external environment, policy wise and otherwise that will bring about important changes in the China market. I think going forward, what we can certainly expect to see in the China market is that there will be multiple different chips being used, multiple different providers, meeting demand for AI computing power in the China market. And I think cloud in China is going to play an ever more important role in supporting the development of AI in this market because cloud can allow developers to achieve much higher efficiency and not have to worry about complex issues around AI chip design.

未來的第二個業務是基於GPU的AI計算。顯然，外部環境、政策等方面發生了一些重大變化，這將為中國市場帶來重要變化。我認為展望未來，我們當然可以期望在中國市場看到的是，將會有多種不同的晶片、多個不同的供應商被使用，以滿足中國市場對人工智慧算力的需求。我認為中國的雲端將在支援這個市場的人工智慧發展方面發揮越來越重要的作用，因為雲端可以讓開發人員實現更高的效率，而不必擔心人工智慧晶片設計的複雜問題。

So I think that we have a complete set of offerings in place that's really well designed to support development because we've always been supporting 1 cloud with multiple chips and we have these different layers, Platform-as-a-Service, Model-as-a-Service, Infrastructure-as-a-Service. We're able to support heterogeneous architecture at all of these different levels. And I think that with that in place, we're well prepared to provide great value to the Chinese market.

因此，我認為我們擁有一整套經過精心設計的產品來支援開發，因為我們一直支援具有多個晶片的單一雲，並且我們擁有這些不同的層：平台即服務、模型即-a-服務，基礎設施即服務。我們能夠支援所有這些不同層級的異質架構。我認為，有了這些，我們就做好了為中國市場提供巨大價值的準備。

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。

You highlighted Choice as one of the growth driver, has been one of the fastest growing segment. I was wondering, could you expand a bit on which countries and regions Choice has entered? And you talked about revenue contribution earlier. I was wondering, is there any magnitude that you can share, sort of a time line to get to unit economics breakeven? And related to that, for your AIDC business, you have a mix of sort of local e-commerce in Turkey and Southeast Asia and you have a cross-border AliExpress Choice. Longer term, what's the focus? Or do you expect sort of a 50-50 or healthy balance between the 2?

您強調選擇是成長動力之一，也是成長最快的細分市場之一。我想知道您能否詳細介紹Choice進入了哪些國家和地區？您之前談到了收入貢獻。我想知道，您是否可以分享一下達到單位經濟效益損益平衡的時間範圍？與此相關的是，對於您的 AIDC 業務，您可以混合土耳其和東南亞的本地電子商務，並且可以選擇跨境速賣通。長遠來看，重點是什麼？或者您期望兩者之間達到 50-50 或健康的平衡？

[Interpreted] Thanks for the question. Well, first of all, I should point out that Choice is actually based on AE. So it's not something new that's come out of nowhere. It's layered on top of a pre-existing business, AE and AE is in over 100 different countries. So what we've really done with Choice is, we've gone from a pure platform model to a platform plus a Choice model, a fully entrusted model. And what we found is that the user experience with Choice is significantly better than with the pure platform model. So at this point, Choice is a major driver of growth in our business.

[解釋]謝謝你的提問。嗯，首先我要指出的是，Choice其實是基於AE的。所以這並不是憑空出現的新事物。它建立在現有業務 AE 之上，並且 AE 遍布 100 多個不同的國家。所以我們在Choice上真正做的就是，我們從一個純粹的平台模型變成了一個平台加Choice模型，一個完全委託的模型。我們發現，Choice 的使用者體驗明顯優於純平台模型。因此，在這一點上，選擇是我們業務成長的主要推動力。

So Choice has been launched for about 1 year now and it's certainly growing very fast and accounts for an increasingly higher proportion of orders. So I would say that in a few more quarters from now, Choice will account for more than 50% of revenue from AliExpress. Pardon me, number of orders, not revenue.

So Choice推出至今已有一年左右的時間，其成長速度無疑非常快，訂單佔比也越來越高。所以我想說，在接下來的幾個季度裡，Choice 將佔全球速賣通收入的 50% 以上。請原諒我，是訂單數量，不是收入。

So Choice is still a business that's in the investment stage. Its profit is negative for the time being. But with further growth, its unit economics will certainly be improving. For now, we're placing -- the #1 priority for Choice is achieving growth but unit economics and profitability will certainly optimize going forward.

所以Choice仍然是一個處於投資階段的企業。其利潤暫時為負值。但隨著進一步成長，其單位經濟效益肯定會改善。目前，我們認為 Choice 的第一要務是實現成長，但單位經濟效益和獲利能力肯定會在未來不斷優化。

So as regards the local e-commerce model versus the cross-border model, in some countries, the local model works better, in other countries the cross-border model works better. I wouldn't say that we have any fixed percentage in mind in terms of how to allocate the business. It really comes down to how do you provide the best user experience and best meet user demand in those different countries and markets.

所以就本地電商模式與跨境模式而言，在某些國家，本地模式效果更好，在其他國家，跨境模式效果更好。我不會說我們在如何分配業務方面有任何固定的百分比。這實際上取決於如何提供最佳的用戶體驗並最好地滿足不同國家和市場的用戶需求。

Thank you. That concludes our earnings call for today. We will see you next quarter. Thank you.

謝謝。我們今天的財報電話會議到此結束。我們下個季度再見。謝謝。

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。您現在可以斷開連線。

[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。]