阿里巴巴 (BABA) 2024 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's March Quarter 2024 and Full Fiscal Year 2024 Results Conference Call. (Operator Instructions) 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 2024 年 3 月季及 2024 財年完整業績電話會議。 （接線員指示）我現在想將電話轉接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 March Quarter and Full Fiscal Year 2024 Results Conference Call. With us are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer. We have also invited Jiang Fan, Co-Chairman and CEO of Alibaba International Digital Commerce Group, to join the call.

謝謝大家，祝大家有美好的一天。歡迎參加阿里巴巴集團 3 月份季度及 2024 財年全年業績電話會議。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。我們也邀請了阿里巴巴國際數位商務集團聯席董事長兼執行長蔣凡參加電話會議。

This call is also being webcasted on the IR section of our corporate website. A replay of this 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，我們的網站將提供此次電話會議的重播。

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, Alibaba's plan to convert to primary listing in Hong Kong, Alibaba's strategies and business plans as well as our beliefs, expectations and guidance and about our business prospects, such as the future growth of our business, revenue and return on investment and share repurchases.

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的新組織和治理結構、阿里巴巴在香港轉為第一上市的計劃、阿里巴巴的戰略和業務計劃以及我們的信念、期望和指導以及關於我們的業務前景，例如我們業務的未來成長、收入和投資回報以及股票回購。

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 the latest annual report on the Form 20-F and other documents filed with the U.S. SEC or announced on the website of Hong Kong Stock Exchange. Any forward-looking statements that we make on this call are based on 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，請參閱最新的 20-F 表格年報以及向美國 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 EBITA 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 on the earnings call -- earnings press release. Unless otherwise stated, growth rates of all metrics stated during the call refer to year-over-year growth versus same quarter last year.

請注意，我們在本次電話會議中使用的某些財務指標，例如調整後的EBITDA、調整後的EBITA 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和自由現金流量以非公認會計原則（Non-GAAP）為基礎表示。我們的 GAAP 結果以及 GAAP 與非 GAAP 指標的調整可以在收益電話會議—收益新聞稿中找到。除非另有說明，否則電話會議中所述的所有指標的成長率均指與去年同期相比的同比增長。

With that, I will turn it over to Eddie.

這樣，我就把它交給艾迪了。

[Interpreted] Hello, everyone. Following several quarters of adjustments and continued user experience enhancement, our core business has gradually returned to healthy growth. The Taobao and Tmall Group achieved double-digit year-over-year growth in GMV this quarter. Alibaba International Digital Commerce revenue increased by 45%. Our core public cloud offerings recorded double-digit year-over-year growth in revenue. AI-related revenue increased triple digit year-over-year. This quarter's results demonstrate that our strategies are working and we are returning to growth.

【解讀】大家好。經過幾季的調整和使用者體驗的持續提升，我們的核心業務逐漸恢復健康成長。淘寶和天貓集團本季GMV年實現兩位數成長。阿里巴巴國際數位商務收入成長45%。我們的核心公有雲產品營收較去年同期實現兩位數成長。人工智慧相關收入年增三位數。本季的業績表明我們的策略正在發揮作用，我們正在恢復成長。

TTG continued to execute its user-first strategy by creating a system for brands, merchants and industrial belts to operate efficiently and to meet the diverse needs of China's domestic consumers through a shopping experience that offers quality products at attractive prices supported by exemplary service. Our investments in driving price competitiveness and elevating the user experience have received positive consumer feedback. We've seen tangible results in progress, strong growth in quarterly buyers and purchase frequency, that has driven robust double-digit growth in GMV, reflecting a continued improvement in consumption and user trust.

TTG持續執行用戶至上的策略，為品牌、商家和產業帶創造一個高效運作的系統，透過提供優質產品、有吸引力的價格和模範服務的購物體驗來滿足中國國內消費者的多樣化需求。我們在提高價格競爭力和提升用戶體驗方面的投資得到了消費者的正面回饋。我們看到了切實的進展成果，季度買家數量和購買頻率的強勁增長，推動了 GMV 兩位數的強勁增長，反映出消費和用戶信任度的持續改善。

At the same time, we continue to enhance member benefits and service experience with 88VIP membership numbers growing by double digits year-over-year to surpass 35 million. Last quarter, I shared TTG's 3 key investment areas aimed at enhancing overall capabilities. First, product supply; second, competitive pricing; and third, quality service. We are committed to boosting consumption and purchase frequency through these measures, driving further growth.

同時，我們不斷提升會員權益與服務體驗，88VIP會員數較去年同期成長兩位數，突破3,500萬。上個季度，我分享了TTG旨在提升整體能力的3個重點投資領域。一、產品供應；第二，有競爭力的價格；三是優質服務。我們致力於透過這些措施促進消費和購買頻率，推動進一步成長。

For fiscal year 2025, we expect TTG GMV will gradually return to healthy growth as our platform's overall shopping experience continues to improve. At the same time, our schedule of launching monetization products will also proceed as planned. In the second half of the fiscal year, we will gradually introduce new monetization mechanisms aligned with new platform algorithms and product features that will further enhance CMR-centered revenue growth.

2025財年，隨著我們平台整體購物體驗的持續改善，我們預期TTG GMV將逐漸恢復健康成長。同時，我們推出變現產品的行程也將按計畫進行。在本財年下半年，我們將逐步引入與新平台演算法和產品功能相符的新貨幣化機制，這將進一步增強以CMR為中心的收入成長。

As we continue to improve platform products and investment tactics under our user-first strategy, we're very confident we will win more consumer trust and maintain our market share leadership. This quarter, we completed adjustments to Alibaba Cloud's product strategy for the AI era and the quality of our revenue continued to improve. We focused on creating competitive advantages in Alibaba Cloud's technology and scale and reduced pricing for public cloud products globally.

隨著我們在用戶至上的策略下不斷改進平台產品和投資策略，我們非常有信心贏得更多消費者的信任並保持我們的市場份額領先地位。本季度，我們完成了阿里雲面向AI時代的產品策略調整，營收品質持續提升。我們專注於打造阿里雲的技術和規模競爭優勢，並降低全球公有雲產品的價格。

Driven by strong demand from various sectors, including foundational model companies, Internet companies, as well as customers from industries, such as financial services and automotive, AI-related revenue accelerated and continued to record triple-digit growth year-over-year. We believe that this wave of generative AI-driven technological innovation is in the early stages of the industry cycle.

在基礎模型公司、網路公司以及金融服務、汽車等產業客戶的強勁需求推動下，人工智慧相關收入加速成長，並持續維持年比三位數成長。我們認為，這一波由人工智慧驅動的技術創新浪潮正處於產業週期的早期階段。

Starting in 2024, we've seen a rapid increase in customer demand for AI. It has also stimulated growth in demand for traditional cloud computing needs, including general computing storage and big data. Therefore, we are actively investing in our cloud computing product matrix, especially in AI infrastructure to capture the monumental opportunities.

從2024年開始，我們看到客戶對人工智慧的需求快速成長。它還刺激了傳統雲端運算需求的成長，包括通用運算儲存和大數據。因此，我們正在積極投資雲端運算產品矩陣，特別是人工智慧基礎設施，以抓住巨大的機會。

Currently, Alibaba Cloud has established strategic partnerships with the vast majority of leading foundational model companies in China. At the same time, Alibaba's proprietary foundational model, Tongyi, released a 110 billion parameter model in late April, which is on par with the top open source models globally.

目前，阿里雲已與國內絕大多數領先的基礎模型公司建立了策略合作夥伴關係。同時，阿里巴巴自研基礎模型統易於4月下旬發表了1,100億參數模型，與全球頂級開源模型不相上下。

Looking ahead, we will deeply integrate our Tongyi large model with Alibaba Cloud's advanced AI infrastructure to realize synergies and optimization across software and hardware. We aim to create the premier AI development platform that combines outstanding AI capabilities and high cost efficiency, redefining the industry benchmark for cost performance. Based on our leading product portfolio, substantial infrastructure investments and proactive industry partner strategy, we are confident that Alibaba Cloud's revenue including -- excluding internal customers, will return to double-digit growth in the second half of the 2025 fiscal year.

展望未來，我們將把統一大模型與阿里雲端先進的人工智慧基礎設施深度融合，實現軟硬體的協同優化。我們的目標是打造一流的人工智慧開發平台，集卓越的人工智慧能力和高性價比於一體，重新定義產業性價比標竿。基於我們領先的產品組合、大量的基礎設施投資和積極的行業合作夥伴策略，我們有信心阿里雲的收入（不包括內部客戶）將在2025財年下半年恢復兩位數成長。

For our overseas e-commerce, AIDC revenue grew 45% and order volume grew 20% year-over-year this quarter due to continued focus on expanding cross-border retail operations and enhancing the consumer experience and Jiang Fan will share more details with you later. In March this year, we withdrew Cainiao's IPO application. Cainiao provides essential infrastructure to Alibaba's core e-commerce business, and we hope Cainiao will strengthen its synergies with our Chinese domestic and international e-commerce operations. Alibaba Group will continue to support the expansion of Cainiao's global logistics network.

海外電商方面，由於持續專注於拓展跨國零售業務、提升消費者體驗，本季AIDC營收年增45%，訂單量年增20%，蔣凡將與您分享更多詳情。今年3月，我們撤回了菜鳥的IPO申請。菜鳥為阿里巴巴的核心電子商務業務提供了重要的基礎設施，我們希望菜鳥能夠加強與我們中國國內和國際電子商務業務的協同效應。阿里巴巴集團將持續支持菜鳥全球物流網絡的拓展。

The past year has been a year of self-transformation for Alibaba. We're pleased that adjustments in our business and organization have yielded results. A journey of transformation will undoubtedly have challenges but we are well prepared. In the new fiscal year, Alibaba Group will continue to focus on investing and executing our user-first AI-driven strategy and we are confident in the long-term healthy development of our company. Thank you.

過去的一年對阿里巴巴來說是自我轉型的一年。我們很高興業務和組織的調整取得了成效。轉型之路無疑會充滿挑戰，但我們已經做好了充分準備。新財年，阿里巴巴集團將繼續專注於投資和執行用戶至上的人工智慧驅動策略，我們對公司的長期健康發展充滿信心。謝謝。

[Interpreted] Greetings. This is Jiang Fan and it's a pleasure to be back to give you an update on AIDC's business. AIDC continued to achieve rapid growth this quarter, despite widespread and intense market competition in different countries. Across AIDC total orders were up by 20% year-on-year, with especially significant growth in our cross-border business. Next, let me share with you on the progress we've made around the 3 major drivers that are our consistent focus.

[解釋] 你好。我是蔣凡，很高興能回來向您介紹 AIDC 的最新業務。儘管不同國家的市場競爭廣泛且激烈，但本季AIDC仍持續實現快速成長。 AIDC的訂單總額較去年同期成長20%，其中跨國業務成長尤為顯著。接下來，讓我與大家分享我們圍繞著我們一貫關注的三大驅動因素所取得的進展。

First, business model and supply chain service upgrade. Driven by AE choice, AliExpress continued to realize robust order growth. AE continued to advance in its transition from the original platform business model to a supply chain efficiency-driven platform POP, semi consignment plus full consignment hybrid business model. While maintaining rich merchandise assortment, we significantly enhanced user experience. By April 2024, AE Choice orders accounted for around 70% of total orders on AliExpress.

一是商業模式和供應鏈服務升級。在AE選擇的推動下，速賣通訂單持續實現強勁成長。 AE持續推動從原有平台業務模式轉型為供應鏈效率驅動的平台POP、半代銷+全代銷混合業務模式的。在維持豐富商品種類的同時，顯著提升使用者體驗。截至 2024 年 4 月，AE Choice 訂單佔全球速賣通訂單總數的 70% 左右。

At the same time, synergies between AliExpress and the cross-border logistics capabilities of Cainiao have further strengthened AE's competitiveness with the 5-day and 10-day delivery completion rates both doubling year-over-year and we'll continue to make effective investments while paying attention to improving the efficiency of the choice model.

同時，速賣通與菜鳥跨境物流能力的協同效應進一步增強了AE的競爭力，5天和10天配送完成率同比雙倍增長，我們將繼續進行有效投資同時注重提高選擇模型的效率。

Second is product and technology innovation. We continue to bring more localized high-quality user experiences to different consumers around the world. AI and intelligent technologies continue to enhance efficiency and user experience in cross platform, smart product assortment, optimized presentation of product details, multi-language search, targeted recommendations and so on. Additionally, more and more small and medium enterprises are starting to leverage AI to enhance their operating efficiency. 17,000 SMEs have subscribed to the AI business software launch on Alibaba.com and millions of products have now been launched with AI and searches for AI optimized products have increased by 37%.

二是產品和技術創新。我們持續為全球不同消費者帶來更在地化的優質使用者體驗。人工智慧和智慧技術在跨平台、智慧商品分類、商品詳情優化呈現、多語言搜尋、精準推薦等方面不斷提升效率和使用者體驗。此外，越來越多的中小企業開始利用人工智慧來提高營運效率。已有1.7萬家中小企業訂閱了阿里巴巴推出的人工智慧商業軟體，現已推出數百萬種人工智慧產品，人工智慧優化產品的搜尋量成長了37%。

Third is sustained growth in key markets. Our continued investment in key markets for AliExpress has brought about growth in our user base as well as enhanced user experience supporting our sustained rapid growth and continued leading position locally. Trendyol is actively investing in cross-border business, achieving very rapid growth in the Gulf region. Trendyol's brand recognition has improved rapidly, driven by significant expansion in its merchandise supply. And it has become one of the most downloaded e-commerce apps in the region. There remains huge potential for AIDC to grow user penetration in the majority of its markets.

三是重點市場持續成長。我們對全球速賣通關鍵市場的持續投資帶來了用戶群的成長以及用戶體驗的增強，支持了我們持續快速成長並繼續在當地保持領先地位。 Trendyol 積極投資跨國業務，在海灣地區實現了非常快速的成長。在商品供應大幅擴張的推動下，Trendyol 的品牌知名度迅速提高。它已成為該地區下載次數最多的電子商務應用程式之一。 AIDC 在提高大多數市場的用戶滲透率方面仍有巨大潛力。

We will achieve quality growth by providing better and more differentiated merchandise and services. At the same time, we'll focus on enhancing operating efficiency, both by narrowing losses in certain businesses and by making higher efficiency investments to continue to grow actively in markets around the world. Thank you.

我們將透過提供更好、更具差異化的商品和服務來實現有品質的成長。同時，我們將專注於提高營運效率，透過縮小某些業務的虧損以及進行更高效率的投資來繼續在全球市場上積極成長。謝謝。

Thank you, Jiang Fan. First, I will provide a recap of the key financial highlights for fiscal year 2024. Following the overview, I will provide a detailed review of the financials for the March quarter.

謝謝你，蔣凡。首先，我將回顧 2024 財年的主要財務亮點。

During this fiscal year 2024, our total consolidated revenue was RMB 941.2 billion, an increase of 8%. Consolidated adjusted EBITA increased by 12% to RMB 165 billion. Non-GAAP net income increased 11% to RMB 157.5 billion, while non-GAAP diluted earnings per ADS saw fast increase of 14%, strengthened by our ongoing share repurchase program. Excluding Sun Art, Freshippo and Intime businesses that have physical retail operations, group revenue would have grown at approximately 11%, and our group consolidated adjusted EBITA margin would have been approximately 3.6 percentage points higher at approximately 21%.

2024財年，我們的合併總收入為人民幣9,412億元，成長8%。綜合調整後 EBITA 成長 12%，達到 1,650 億元。非 GAAP 淨利潤成長 11%，達到 1,575 億元，而非 GAAP 攤薄後每股美國存託股收益快速成長 14%，這得益於我們正在進行的股票回購計畫。剔除擁有實體零售業務的高鑫零售、盒馬鮮生和銀泰百貨業務，集團營收將成長約 11%，集團綜合調整後 EBITA 利潤率將成長約 3.6 個百分點，達到約 21%。

During the fiscal year '24, under the leadership of the capital management committee and our Board of Directors, we have increased cash return to the shareholders. We repurchased a total of about 1.25 billion ordinary shares or equivalent to 156 million ADS, for a total consideration of USD 12.5 billion. After accounting for ESOP issuance, our outstanding shares decreased by 5.1% in fiscal year 2024.

24財年，在資本管理委員會和董事會的領導下，我們加大了對股東的現金回報。我們總共回購了約12.5億股普通股，相當於1.56億股美國存託股份，總代價125億美元。考慮到員工持股計畫的發行，我們的流通股在 2024 財年減少了 5.1%。

Regarding cash dividend, we declared an annual cash dividend of USD 1 per ADS, totaling about USD 2.5 billion for fiscal year 2023, which was paid out in January 2024. Furthermore, our Board of Directors has approved an annual cash dividend for fiscal year 2024 of USD 1 per ADS and a onetime extraordinary cash dividend as a distribution of proceeds from disposition of certain financial investments in the amount of USD 0.66 per ADS, with total cash dividend amounting to approximately USD 4 billion.

關於現金股息，我們宣布2023 財年每股美國存託憑證1 美元的年度現金股息，總額約為25 億美元，已於2024 年1 月支付。股息每份美國存託股 1 美元，以及每份美國存託股 0.66 美元的一次性特別現金股息，作為處置某些金融投資收益的分配，現金股息總額約為 40 億美元。

Through a combination of share repurchase and the cash dividends, we have returned and plan to return about USD 16.5 billion to shareholders for fiscal year 2024, up from USD 13.4 billion for fiscal year 2023. We are committed to returning value to our shareholders and we'll continue to execute our capital return programs.

透過股票回購和現金分紅相結合的方式，我們已經併計劃在 2024 財年向股東回報約 165 億美元，高於 2023 財年的 134 億美元。我們的資本回報計劃。

Now let me provide a review of our financial performance for the March 2024 quarter. Overall, we observed improving fundamentals across our major businesses, supported by enhanced investments, aimed at fueling growth. During the quarter, our total consolidated revenue was RMB 221.9 billion, an increase of 7%. Consolidated adjusted EBITA decreased by 5% to RMB 24 billion. Our non-GAAP net income was RMB 24.4 billion, a decrease of 11%. However, the decline in our non-GAAP diluted earnings per ADS was moderate at 5%, given our ongoing share repurchase program.

現在讓我回顧一下我們 2024 年 3 月季度的財務表現。總體而言，我們觀察到，在旨在推動成長的增加投資的支持下，我們主要業務的基本面有所改善。本季度，我們的綜合收入總額為人民幣 2,219 億元，成長 7%。綜合調整後 EBITA 下降 5%，至 240 億元。我們的非公認會計準則淨利潤為人民幣 244 億元，下降 11%。然而，考慮到我們正在進行的股票回購計劃，我們的非 GAAP 攤薄每股美國存託股收益略有下降，為 5%。

Our GAAP net income was RMB 0.9 billion, a decrease of RMB 21.1 billion. This decline was primarily due to mark-to-market changes of RMB 19.9 billion from our equity investments in publicly traded companies, which shifted from a gain in previous year to a loss this year. As of March 31, 2024, we continue to maintain a strong net cash position of RMB 446.5 billion or USD 61.8 billion. Free cash flow this quarter was RMB 15.4 billion, a decrease of RMB 16.9 billion compared to the same quarter last year. The decrease mainly reflected the increase of RMB 7.7 billion in capital expenditure, the majority of which reflected our investments in Alibaba Cloud infrastructure as well as a special dividend of RMB 10.5 billion from Ant Group in the same quarter last year.

我們的 GAAP 淨利潤為 9 億元，減少 211 億元。下降的主因是我們對上市公司的股權投資以市價計價變動人民幣199億元，由去年的獲利轉為虧損。截至 2024 年 3 月 31 日，我們繼續保持強勁的淨現金頭寸，達 4,465 億元人民幣（618 億美元）。本季自由現金流為154億元人民幣，較去年同期減少169億元。下降主要反映了資本支出增加了77億元人民幣，其中大部分反映了我們對阿里雲端基礎設施的投資以及去年同季度螞蟻集團派發的105億元特別股息。

Now let's look at cost trends as a percentage of revenue, excluding SBC during this quarter. Cost of revenue ratio increased by 1 percentage point to 67%. Product development expenses ratio remained stable at 5%. Sales and marketing expenses ratio increased by 1 percentage point to 13%, G&A expenses ratio decreased by 1 percentage point to 4%.

現在讓我們看看本季的成本佔收入的百分比趨勢（不包括 SBC）。收入成本率上升1個百分點至67%。產品開發費用率穩定在5%。銷售及行銷費用率上升1個百分點至13%，一般及行政費用率下降1個百分點至4%。

Now let's look at the segment results, starting with Taobao and Tmall Group. Revenue from Taobao and Tmall Group was RMB 93.2 billion, an increase of 4%. During the quarter, our online GMV achieved a double-digit growth, which is driven by rapid order growth supported by strong increase in number of purchases and the purchase frequency.

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。淘寶及天貓集團營收為人民幣932億元，成長4%。本季度，我們的線上 GMV 實現了兩位數的成長，這得益於訂單的快速成長以及購買數量和購買頻率的強勁成長。

Strong GMV growth supported a 5% increase in customer management revenue, though overall take rate declined slightly, the overall take rate was impacted by a combination of 2 factors. Firstly, Taobao and Tmall GMV both increased strongly. The decrease in take rate was due to Taobao's GMV growth, outperforming that of Tmall. This trend continues to reflect increasing demand of price-competitive products offered on our platform.

強勁的 GMV 成長支撐了客戶管理收入成長 5%，儘管整體採用率略有下降，但整體採用率受到兩個因素的綜合影響。首先，淘寶、天貓GMV雙雙強勁成長。成交率下降是由於淘寶的GMV成長超過了天貓。這一趨勢繼續反映出我們平台上提供的具有價格競爭力的產品的需求不斷增長。

Second, take rate was also impacted by the introduction of new models that currently have low monetization rates. We believe our overall take rate has room to improve as the percentage of paying merchants among our SME merchants remains relatively low and we have yet to roll out the new advertising tools. As we gradually roll out the new advertising tools that would further enhancing merchants ROI, we see upside from potential increase in merchant adoption as well as higher incremental spending from paying merchants.

其次，目前貨幣化率較低的新模式的引進也影響了採用率。我們相信我們的整體採用率還有進步的空間，因為我們的中小企業商家中付費商家的比例仍然相對較低，而且我們尚未推出新的廣告工具。隨著我們逐步推出新的廣告工具，進一步提高商家的投資報酬率，我們看到了商家採用率的潛在成長以及付費商家的增量支出的增加帶來的好處。

Direct sales and others revenue decreased 2% to RMB 24.7 billion. China commerce wholesale business revenue increased 20% to RMB 5 billion, primarily due to an increase in revenue from value-added services provided to paying members. Taobao and Tmall Group adjusted EBITDA was RMB 38.5 billion compared to RMB 39 billion in the same quarter last year, primarily due to the increase in investment in user experience which resulted in improved customer retention and higher purchase frequency and technology infrastructure, partly offset by the increase in revenue from customer management service.

直接銷售及其他收入下降2%至人民幣247億元。中國商業批發業務收入成長20%至人民幣50億元，主要因為向付費會員提供的增值服務收入增加。淘寶和天貓集團調整後的EBITDA 為人民幣385 億元，而去年同期為人民幣390 億元，主要是由於對用戶體驗的投資增加，導致客戶保留率提高、購買頻率和技術基礎設施提高，但部分被客戶管理服務收入增加。

Revenue from Cloud Intelligence Group was RMB 25.6 billion during the quarter, an increase of 3%. We are committed to our strategy of focusing on high-quality revenues from increasing public cloud adoption while reducing low-margin, project-based contracts. During the quarter, our core public cloud offerings, which include products such as elastic compute, database and AI products recorded double-digit growth in revenue. During this quarter, AI-related revenue experienced accelerated growth and continue to record triple-digit growth.

雲端智能集團本季營收為人民幣256億元，成長3%。我們致力於實施這樣的策略：透過增加公有雲的採用來專注於高品質收入，同時減少低利潤、基於專案的合約。本季度，我們的核心公有雲產品，包括彈性運算、資料庫和人工智慧產品等產品，營收實現了兩位數成長。本季度，人工智慧相關收入加速成長，持續維持三位數成長。

We expect the strong revenue growth in public cloud and AI-related products will offset impact of the roll-off of project-based revenues. Cloud's adjusted EBITA increased by 45% to RMB 1.4 billion. The increase was primarily due to improving product mix through our focus on public cloud and operating efficiency.

我們預計公有雲和人工智慧相關產品的強勁收入成長將抵消基於專案的收入下滑的影響。 Cloud的調整後EBITA成長45%，達到人民幣14億元。這一增長主要是由於我們透過專注於公有雲和營運效率來改善產品組合。

Alibaba International Digital Commerce Group revenue was RMB 27.4 billion, an increase of 45%. Revenue from international commerce retail business increased by 56% to RMB 22.3 billion. The increase in revenue was primarily due to the solid combined order growth of AIDC's retail businesses, revenue contribution from AliExpress' Choice, as well as improvements in monetization.

阿里巴巴國際數位商務集團營收為人民幣274億元，成長45%。國際商業零售業務收入成長56%至人民幣223億元。營收的成長主要得益於AIDC零售業務的合併訂單穩健成長、速賣通精選的營收貢獻以及貨幣化的改善。

Revenue from our international commerce wholesale business increased by 11% to RMB 5.2 billion. The increase was primarily due to an increase in revenue generated by cross-border related value-added services. AIDC's adjusted EBITA was a loss of RMB 4.1 billion compared to a loss of RMB 2.2 billion in the same quarter last year. Loss increased primarily because of increased investment of businesses, including AliExpress Choice and Trendyol's cross-border business, partly offset by improvements in monetization.

國際商業批發業務收入成長11%至人民幣52億元。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EBITA虧損41億元人民幣，去年同期虧損22億元。虧損增加主要是因為業務投資增加，包括 AliExpress Choice 和 Trendyol 的跨境業務，但部分被貨幣化的改善所抵消。

Total revenue for Cainiao grew 30% to RMB 24.6 billion, primarily contributed by the increase in revenue from cross-border fulfillment services. Cainiao adjusted EBITA was a loss of RMB 1.3 billion compared to a loss of RMB 319 million in the same quarter last year, primarily due to additional retention incentives granted to Cainiao employees recognized during the quarter in connection with the withdraw of its IPO.

菜鳥總收入成長30%至246億元人民幣，主要得益於跨國配送服務收入的成長。菜鳥調整後的 EBITA 為虧損 13 億元人民幣，而去年同期為虧損 3.19 億元人民幣，主要是由於本季度因撤回 IPO 而向菜鳥員工發放的額外保留激勵。

Local service group revenue in March quarter grew 19% to RMB 14.6 billion, primarily due to the order growth of Ele.me and Amap. Local service group adjusted EBITA was a loss of RMB 3.2 billion this quarter compared to a loss of RMB 4.1 billion in the same quarter last year, primarily due to the continued narrowing of loss from our 2 home business driven by Ele.me's improved unit economics and the increasing business scale.

3月季度本地服務集團營收成長19%至146億元人民幣，主要得益於餓了麼和高德地圖的訂單成長。本季本地服務集團調整後的 EBITA 虧損 32 億元人民幣，而去年同期虧損 41 億元人民幣，主要是由於餓了麼單位經濟效益的改善帶動我們的 2 到家業務虧損持續收窄。不斷擴大。

Revenue from our DME group was RMB 4.9 billion, a decrease of 1%. Adjusted EBITA was a loss of RMB 884 million compared to a loss of RMB 1.1 billion in the same quarter last year. Loss reduced primarily due to the reduced loss of Youku. Revenue from all other segment decreased 3% to RMB 51.5 billion, mainly due to the decrease in revenue from Sun Art and Alibaba Health, partly offset by the increase in revenue from Freshippo. The decrease in revenue from Sun Art was mainly driven by the scale down of supply chain business and decreasing bucket size. Adjusted EBITA from all other segment was a loss of $2.8 billion compared to a loss of RMB 1.9 billion in the same quarter last year, primarily due to the increased losses from Freshippo and the decrease in profitability of Lingxi Games.

DME集團收入為人民幣49億元，下降1%。調整後 EBITA 虧損 8.84 億元人民幣，去年同期虧損 11 億元。虧損減少主要是由於優酷網虧損減少。所有其他部門的收入下降3%至人民幣515億元，主要是由於高鑫零售和阿里健康的收入減少，但部分被盒馬收入的增加所抵消。高鑫零售收入下降主要是由於供應鏈業務規模縮小以及桶尺寸縮小所致。所有其他部門調整後的 EBITA 為虧損 28 億美元，而去年同期為虧損 19 億元人民幣，主要是由於盒馬鮮生虧損增加以及靈犀遊戲獲利能力下降。

Lastly, we have been preparing for our primary listing in Hong Kong and currently expect to complete this by the end of August 2024. We will make a further announcement on the primary conversion date in due course.

最後，我們一直在為香港的首次上市做準備，目前預計於 2024 年 8 月底完成。

In closing, our robust balance sheet positions us well to strategically reinvest our cash flows to foster growth and strengthen leadership in core businesses thereby improving future returns on invested capital. As Eddie and Jiang Fan mentioned, we anticipated that near-term investment will yield improved -- firstly, improved user experience in our domestic e-commerce platform that supports strong GMV growth in FY '25 and enhance the monetization in the second half of FY '25.

最後，我們穩健的資產負債表使我們能夠對現金流進行策略性再投資，以促進成長並加強核心業務的領導地位，從而提高未來的投資資本回報率。正如 Eddie 和 Jiang Fan 所提到的，我們預計近期投資將帶來改善——首先，改善我們國內電子商務平台的用戶體驗，支持 25 財年 GMV 的強勁增長，並增強 25 財年下半年的貨幣化'25。

Secondly, a return to double-digit revenue growth in the second half of fiscal year '25 for Alibaba Cloud business. And thirdly, continuous rapid growth momentum, while improving unit economics from AIDC. We are seeing positive initial results, making us even more confident in achieving strong and sustainable growth in our core businesses.

其次，阿里雲業務在25財年下半年恢復兩位數營收成長。第三，持續快速成長勢頭，同時AIDC提高單位經濟效益。我們看到了積極的初步成果，這使我們對實現核心業務的強勁和可持續成長更加充滿信心。

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

謝謝。我們準備好的發言就到此結束，我們可以開始問答環節了。

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.

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。

If you are unable to hear the Chinese translation, bilingual transcript of this call will be available on our website within 1 week after the meeting. (foreign language) Operator please the speakers and SI conference lines now and start the Q&A session when ready. Thank you.

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。 （外語）操作員現在請發言者和 SI 會議線路，並在準備好後開始問答環節。謝謝。

(Operator Instructions) Your first question comes from Kenneth Fong with UBS.

（操作員說明）您的第一個問題來自 UBS 的 Kenneth Fong。

I have a question regarding the CMR versus the GMV growth. Our strategy for focusing on user experience and price competitiveness have given solid results, deliver a double-digit GMV growth despite the intense competition. As Toby earlier highlight, because of the mix shift and early (inaudible) monetization, we see CMR underperforming GMV at only 5% growth. With our new ad product, site-wide marketing, (inaudible) to be launched, how should we think about the pace for this gap to narrow over time? And then down to EBITA for the incremental growth in the CMR, should we expect this to be reinvest back to the business? Or we should actually expect a margin gradual expansion as the CMR growth gradually reaccelerate?

我有一個關於 CMR 與 GMV 增長的問題。我們專注於使用者體驗和價格競爭力的策略取得了良好的成果，儘管競爭激烈，但仍實現了兩位數的 GMV 成長。正如 Toby 先前所強調的那樣，由於組合轉變和早期（聽不清楚）貨幣化，我們認為 CMR 的表現落後於 GMV，僅成長 5%。隨著我們新的廣告產品、全站行銷（聽不清楚）的推出，我們應該如何考慮隨著時間的推移縮小這一差距的速度？然後再考慮 CMR 增量成長的 EBITA，我們是否應該期望將其重新投資回業務？或者，隨著 CMR 成長逐漸重新加速，我們實際上應該預期利潤率會逐漸擴大？

[Interpreted] Kenneth, thanks for the question. I think I would just start providing my explanation and then Eddie can add. I think as you can see in this quarter, the GMV had a double-digit growth. And as I said, actually, this growth is both quite strongly in Taobao and Tmall merchants. So the first thing is, I think our -- the execution of our strategy, we have seen the results. Basically, we are back in growth. That's a very important message.

[翻譯]肯尼斯，謝謝你的提問。我想我應該開始提供我的解釋，然後艾迪可以補充。我認為正如你所看到的，本季 GMV 出現了兩位數的成長。正如我所說，實際上，這種成長在淘寶和天貓商家中都相當強勁。所以第一件事是，我認為我們的策略的執行，我們已經看到了結果。基本上，我們已經恢復成長。這是一個非常重要的訊息。

And secondly, as we were saying, we are introducing or enhancing our monetization product and we'll be introducing the new -- gradually roll out the monetization product which will then help to enhancing the ROI and eventually enhancing the penetration into the merchants, particularly the SME merchants as well as increase their op -- their spending in the monetization product. However, it would take some time since we are rolling out gradually.

其次，正如我們所說，我們正在引入或增強我們的貨幣化產品，我們將逐步推出新的貨幣化產品，這將有助於提高投資回報率並最終增強對商家的滲透，特別是中小企業商家也增加了他們在貨幣化產品上的支出。然而，由於我們正在逐步推出，因此還需要一些時間。

So we will be able to see the growth throughout the year, particularly in the second half of the year, that you will see the sort of like the result coming out during the second quarter of the year.

因此，我們將能夠看到全年的成長，特別是下半年，你會看到類似今年第二季的結果。

[Interpreted] Okay. Before Eddie give you more color on this sort of like the rollout of monetization product, how would you -- just also explain on the investment we are making. For Taobao and Tmall, as we're saying, we see the early success of executing of our strategy by investing in the customer experience various things, focusing on consumer first.

[解釋]好的。在埃迪為您提供有關貨幣化產品推出等更多信息之前，您會如何 - 請解釋一下我們正在進行的投資。對於淘寶和天貓，正如我們所說，我們透過投資於客戶體驗的各種事情，專注於消費者至上，看到了執行我們策略的早期成功。

So we see the result and we are willing to invest. So that's the first thing, firstly. Secondly is, in terms of investment we are making. On the other hand, we are doing it in a very disciplined way. We do closely monitor the ROI. For the investment we can make, definitely, we will see the good ROI from it. So it's in a very disciplined way. So we will continue make the investment. How much -- in terms of how much we're going to invest really depending on the space we're ramping up the consumer experience as well as the supplies. So we have the resource, and we are committed to make the investments.

所以我們看到了結果並且願意投資。首先，這是第一件事。其次是我們正在進行的投資。另一方面，我們正在以非常有紀律的方式來做這件事。我們確實密切監控投資報酬率。對於我們可以進行的投資，我們肯定會從中看到良好的投資報酬率。所以這是一種非常有紀律的方式。所以我們會繼續進行投資。多少－我們要投資多少，其實取決於我們提升消費者體驗和供應的空間。因此，我們擁有資源，並致力於進行投資。

[Interpreted] Thank you. Yes. So moving ahead with the Omni platform, marketing and whole platform charging is an important direction that we're moving in as we're making it easier for SMEs to advertise. Of course, it's important to ensure that money that merchants are spending on advertising achieve solid ROI. So to that extent, we're currently adjusting and tweaking the algorithms, training the models, doing testing and using the data from the testing to further improve the service and enhance ROI. So all of this will, of course, take some time but it is certain that we are moving in that direction and we'll eventually get there and further optimize it for different customers and for different sectors as a means of enhancing our revenue.

[已翻譯] 謝謝。是的。因此，推動 Omni 平台、行銷和全平台收費是我們前進的一個重要方向，因為我們讓中小企業更容易做廣告。當然，重要的是要確保商家在廣告上花費的資金能夠實現穩定的投資報酬率。因此，從這個意義上說，我們目前正在調整和調整演算法、訓練模型、進行測試並使用測試中的數據來進一步改進服務並提高投資回報率。當然，這一切都需要一些時間，但可以肯定的是，我們正在朝著這個方向前進，我們最終將實現這一目標，並為不同的客戶和不同的行業進一步優化它，作為增加我們收入的一種手段。

So I expect that this process will take something like 12 months because it does take time to tweak the algorithms, get those data in place and ensure everything is optimal. But what I can tell you is that's certainly the direction that we're moving in and we continue to fine-tune.

因此，我預計這個過程將需要大約 12 個月的時間，因為調整演算法、獲取這些數據並確保一切都處於最佳狀態確實需要時間。但我可以告訴你的是，這肯定是我們正在前進的方向，我們會繼續微調。

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。

My question is regarding the Ali Cloud business. It's encouraged to hear from management that we expected to resume double-digit growth in the second half of the year. Could management please share some of the composition of the revenue growth driver behind, how much of the improvement in growth is coming from AI-related products? How much is it coming from the cloud? And how much is it -- it's coming from low-margin private cloud projects becoming a smaller part of the business?

我的問題是關於阿里雲業務的。管理階層表示我們預計下半年將恢復兩位數成長，這讓我們深受鼓舞。請管理階層分享背後收入成長動力的組成，成長的改善有多少來自於人工智慧相關產品？有多少來自雲端？它來自低利潤私有雲項目，並逐漸成為業務的一小部分，有多少？

And then also related to that is once we are back up to the double-digit growth level, how should we look at the kind of medium-term margin for cloud business going forward?

與此相關的是，一旦我們回到兩位數的成長水平，我們應該如何看待未來雲端業務的中期利潤率？

[Interpreted] Thank you. This is Eddie and I'll take that. If you look at the overall revenue growth of the cloud business today, most of that is already being driven, I would say, by AI and AI-related new products. So going forward, a lot of the incremental growth we can expect to see in the cloud business will be related to investment that customers are making in AI but also there's a complementary effect because the more the customers invest in and make use of AI, the more demand they will also have for other of our various cloud offerings. So the 2 things go hand in hand.

[已翻譯] 謝謝。這是艾迪，我會接受的。如果你看看今天雲端業務的整體收入成長，我想說，其中大部分已經是由人工智慧和人工智慧相關的新產品推動的。因此，展望未來，我們預計在雲端業務中看到的許多增量成長將與客戶對人工智慧的投資有關，但也存在互補效應，因為客戶投資和使用人工智慧越多，他們也會對我們的其他各種雲端產品提出更多需求。所以這兩件事是齊頭並進的。

At the same time, we continue to decrease the share of project-based revenue in cloud's overall revenues. In fact, the other parts of the cloud business already achieved double-digit growth in this quarter but that continues to be offset by the ongoing -- although diminishing but still ongoing impact of that low-margin project-based business. But as we continue to phase out that low-margin project-based business, we expect revenues to grow faster, primarily driven again by public cloud and by AI-enabled offerings. And we expect that we should see that, a complete disappearance of that drag within, say, 1 or 2 quarters into the new year.

同時，我們繼續降低基於專案的收入在雲端整體收入中的份額。事實上，雲端業務的其他部分在本季度已經實現了兩位數的成長，但這繼續被低利潤項目業務的持續影響所抵消，儘管這種影響正在減弱，但仍然持續存在。但隨著我們繼續逐步淘汰基於專案的低利潤業務，我們預計收入將成長更快，這主要是由公有雲和人工智慧產品再次推動的。我們預計，這種拖累會在新的一年的一兩個季度內完全消失。

On the second part of your question, which had to do with the kinds of profit margins we expect to achieve in the medium to long term, once we get to that place where public cloud primarily is driving our growth and we're back to double-digit growth, I would say that for the most part, our public cloud offerings have very healthy profit margins.

關於你問題的第二部分，這與我們期望在中長期內實現的利潤率有關，一旦我們到達公有雲主要推動我們成長的地方，我們就會回到原來的兩倍-數字成長，我想說的是，在很大程度上，我們的公有雲產品具有非常健康的利潤率。

When it comes to AI, of course, we're looking at a 10-year IT new technology cycle. We're in the very early stage of that cycle. So we're talking about healthy margins but with ongoing longer-term investment. But overall, the profit margins from the AI products will be healthy.

當然，當談到人工智慧時，我們關注的是 10 年的 IT 新技術週期。我們正處於該週期的早期階段。因此，我們談論的是健康的利潤率，但需要持續的長期投資。但整體而言，人工智慧產品的利潤率將是可觀的。

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。

So for the domestic e-commerce business, it's great to see the GMV growth rate has recovered back to double digit in this quarter. Can you help us to understand what is driving the GMV growth rates to narrow the pace versus the e-commerce market? Or put it in another way, what did you do in the past quarter that leads to a slowdown of market share loss? And a broader question is what does it take to be competitive in the current China e-commerce market given the rise of alternative e-commerce competitors in the market.

所以對於國內電商業務來說，很高興看到本季GMV成長率恢復到兩位數。您能否幫助我們了解是什麼推動 GMV 成長率縮小與電子商務市場的差距？或者換句話說，上個季度你做了什麼導致市佔率流失速度放緩的情況？更廣泛的問題是，鑑於市場上另類電子商務競爭對手的崛起，如何在當前的中國電子商務市場上保持競爭力。

[Interpreted] Thank you. Well, overall, I think it's really about enhancing the user's shopping experience. And as I said, that really consists of getting 3 things, right? First is having good merchandise; secondly, having that at a good price; and thirdly, supporting that with excellent service. Now if we break that down further when it comes to goods -- the assortment of goods, there are actually different models that we can apply with different products to better support them. So basically, we can think about goods from brands, goods from channel merchants and goods from industry belts or manufacturers of white label goods.

[已翻譯] 謝謝。嗯，總的來說，我認為這確實是為了增強用戶的購物體驗。正如我所說，這實際上包括獲得三件事，對吧？首先要有好的商品；其次，價格合理；第三，以優質的服務來支持這一點。現在，如果我們在商品方面進一步細分——商品種類，實際上我們可以將不同的模型應用於不同的產品，以更好地支持它們。所以基本上，我們可以考慮來自品牌的商品、來自通路商的商品以及來自產業帶或白標商品製造商的商品。

And we can provide different products and take differentiated approaches to ensure that those 3 different kinds of players are getting their goods to consumers in a way that is cost-competitive. They're offering a good price and achieve high conversion efficiency for the merchandise. All of that can be further supported with strong logistics and good customer service. So we can take a different approach with respect to those 3 different kinds of supply, always with the aim of increasing customer purchase frequency and attracting new customers as well to achieve that advantage.

我們可以提供不同的產品並採取差異化的方法，以確保這 3 種不同類型的參與者以具有成本競爭力的方式將其商品提供給消費者。他們提供優惠的價格並實現商品的高轉換效率。所有這一切都可以透過強大的物流和良好的客戶服務得到進一步支援。因此，我們可以針對這 3 種不同的供應採取不同的方法，始終以增加客戶購買頻率並吸引新客戶來實現這一優勢為目標。

[Interpreted] Secondly, I can add to that, that as we know, there's been very intense competition in China's domestic e-commerce market. And we've made some very clear strategic choices on Taobao as to how to address this competition and win going forward.

[解讀]第二，我可以補充一點，據我們所知，中國國內電子商務市場的競爭非常激烈。我們在淘寶上就如何應對這場競爭並贏得未來做出了一些非常明確的策略選擇。

A big part of this is ensuring high product efficiency, referring to conversion and also to providing optimized services as well. Of course, another important part of the -- very important part of the equation for Taobao is what I've referred to as omnipotent Taobao or universal Taobao. Taobao has everything that anybody could want, the richest possible assortment.

其中很大一部分是確保高產品效率，即轉換以及提供最佳化的服務。當然，淘寶方程式中非常重要的另一個重要部分是我所說的萬能淘寶或萬用淘寶。淘寶有任何人想要的一切，種類最豐富。

So while maintaining that rich and diversified assortment, also focusing on achieving better efficiency with respect to high volume selling goods to maintain that unique competitive advantage.

因此，在保持豐富多樣的品種的同時，也專注於在大批量銷售商品方面實現更高的效率，以保持獨特的競爭優勢。

Your next question comes from Ellie Jiang with Macquarie.

您的下一個問題來自麥格理的 Ellie Jiang。

[Interpreted] I have a follow-up question about the whole platform charges and the new marketing tools that you've mentioned that will be launched. We understand that there are some similar products that have been launched or are being launched on the market by competitors. I'm wondering how we would evaluate our products versus the competitors. How differentiated are our products? And what are some of the factors that determine conversion rates for these kinds of products? If you could share some of the underlying logic.

[解讀]我有一個後續問題，關於整個平台的收費以及您提到的即將推出的新行銷工具。我們了解到，競爭對手已經在市場上推出或正在推出一些類似的產品。我想知道我們將如何評估我們的產品與競爭對手的產品。我們的產品有何差異化？決定此類產品轉換率的因素有哪些？如果您可以分享一些底層邏輯。

[Interpreted] Just to clarify the question, are you asking about our marketing products and how they are differentiated versus other platforms? Is that the question?

[解讀]為了澄清這個問題，您是在問我們的行銷產品以及它們與其他平台的差異化嗎？這是問題嗎？

[Interpreted] So basically focusing on the omni platform marketing solutions, (inaudible).

[解讀] 所以基本上專注於全平台行銷解決方案（聽不清楚）。

[Interpreted] Right. Understood. I think different platforms are going to be very different if you look at the way they achieve monetization and their monetization products because the platforms are fundamentally different in terms of the traffic, the business model and the different groups of users on the platform. So I don't think there's any direct comparability.

【解釋】對。明白了。我認為，如果你看看不同的平台實現變現的方式和變現產品的話，它們會有很大的不同，因為這些平台在流量、商業模式和平台上不同的用戶群方面都有根本的不同。所以我認為沒有任何直接的可比性。

I think certainly what merchants are looking at the end of the day is the ROI that they achieve on their investments in marketing. So I don't think we can directly compare user design and algorithms and things of that nature. But you can certainly look at the ROI on marketing investment. And I can tell you that on Taobao today, merchants are achieving probably the highest ROI they can get on any platform for their marketing investments.

我認為商家最終關注的是他們在行銷投資上實現的投資報酬率。所以我認為我們不能直接比較使用者設計和演算法以及類似性質的東西。但你當然可以看看行銷投資的投資報酬率。我可以告訴你，今天在淘寶上，商家的行銷投資可能在任何平台上獲得最高的投資報酬率。

The next question comes from Alicia Yap with Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

Congrats on the solid quarter. I have a follow-up on the overall CMR growth. Obviously, the 5% growth is very good and the double-digit GMV growth is good. Any obstacle that we foresee that could prevent GMV and CMR to further improve from here?

恭喜季度業績穩定。我對總體 CMR 增長進行了跟踪。顯然，5%的成長非常好，兩位數的GMV成長也不錯。我們預見到有什麼障礙會阻止 GMV 和 CMR 進一步提高嗎？

I'm just wondering how is the overall consumer consumption trend. It seems that we are gaining momentum that allows us to enjoy faster growth despite potentially more muted macro outlook. Any color you can share with us with the latest trend that you are seeing for April and May on the GMV growth would be helpful.

我只是想知道消費者的整體消費趨勢如何？儘管宏觀前景可能更為黯淡，但我們似乎正在獲得動力，使我們能夠享受更快的成長。您可以與我們分享您所看到的 4 月和 5 月 GMV 增長的最新趨勢的任何顏色都會有所幫助。

[Interpreted] Alicia, thanks for the question. I'll take on this question. I think as we explained, we see the results from our investments, GMV growth and then I think that the growth trend is sustainable what we can observe.

[翻譯]艾莉西亞，謝謝你的提問。我來回答這個問題。我認為正如我們所解釋的，我們看到了投資的結果、GMV 的成長，然後我認為我們可以觀察到的成長趨勢是可持續的。

So we're still observing a good healthy growth in April, May time. And in terms of CMR, as we were explaining, because the GMV growth -- because of mix shift in the GMV towards Taobao merchants and also some of our new sort of models, business products, which has relatively low monetization at this stage, so there is a big headroom for us to increase the monetization rate.

因此，我們仍然觀察到四月、五月的良好健康成長。就 CMR 而言，正如我們所解釋的，因為 GMV 的成長——因為 GMV 向淘寶商家的混合轉移，以及我們一些新的模式、商業產品，它們在現階段的貨幣化程度相對較低，所以我們的變現率還有很大的提升空間。

And with the introduction or rollout of our monetization products, we will be seeing the growth of CMR to catch up with GMV sort of gradually. So it will lag behind a few quarters but it will eventually catch up. So that's sort of our belief in terms of the effects of the investment -- effectiveness of the investments and also both on the G&A side and as well as on the revenue side.

隨著我們貨幣化產品的推出或推出，我們將看到 CMR 的成長將逐漸趕上 GMV。因此它會落後幾個季度，但最終會趕上。這就是我們對投資效果的信念——投資的有效性以及一般管理費用和收入方面。

[Interpreted] Alicia, this is Joe Tsai. Also I could sort of supplement what Eddie and Toby said. I think implicit in your question is, you're looking at our March quarter GMV growth in double digits. And compared to last year, it was an easy comp because last year was partially coming out of the lockout -- lockup of -- from the COVID lockdown.

[翻譯]艾莉西亞，我是蔡崇信。我也可以補充艾迪和托比所說的內容。我認為你的問題隱含的是，你看到我們三月季度的 GMV 成長達到兩位數。與去年相比，這是一個簡單的比較，因為去年部分地擺脫了新冠封鎖的封鎖。

And -- so the implicit question is, are we going to see -- from a macro standpoint, what do we see from our platform that could reflect sort of broader consumption trends? What I would like to say is, as we look at the Chinese consumers, the #1 -- right now, household cash is at its highest point. We're looking at something like $19 trillion of household cash savings that's in the system.

而且 - 所以隱含的問題是，我們是否會看到 - 從宏觀角度來看，我們從我們的平台看到什麼可以反映更廣泛的消費趨勢？我想說的是，當我們觀察中國消費者時，第一名——目前，家庭現金正處於最高點。我們正在研究系統中約 19 兆美元的家庭現金儲蓄。

So the Chinese consumer has the ability to spend, right? I think all we're looking at is, what's your confidence level of spending on a going-forward basis? First of all, I think we've all seen some of the growth in the services sector during the May 1 holidays. And within our platform, we've seen some green shoots, some discretionary items, like apparel and electronics are also -- are actually growing, looking pretty -- the growth is pretty good.

那麼中國消費者有能力消費，對嗎？我認為我們所關注的是，您對未來支出的信心程度是多少？首先，我認為我們都看到了 5 月 1 日假期期間服務業的一些成長。在我們的平台內，我們看到了一些萌芽，一些非必需品，例如服裝和電子產品，實際上也在增長，看起來很漂亮，增長相當不錯。

So what that tells us is consumers are starting to reflect that willingness to spend. We have no doubt that they have the ability but the willingness reflects the confidence in what they have about the future. So we're seeing some positive signals but it is probably still too early to tell because the macro environment is still broadly affected by the property sector downturn.

這告訴我們，消費者開始體現出這種消費意願。我們毫不懷疑他們有能力，但這種意願反映了他們對未來的信心。因此，我們看到了一些正面訊號，但現在下結論可能還為時過早，因為宏觀環境仍然廣泛受到房地產行業低迷的影響。

On that front, we've been very encouraged that the local governments now have been relaxing the property purchase restrictions. So we're going to wait and see. But so far, confidence level, we've seen some early signs of growth.

在這方面，我們對地方政府現在放寬購屋限制感到非常鼓舞。所以我們將拭目以待。但到目前為止，就信心水平而言，我們已經看到了一些成長的早期跡象。

[Interpreted] Yes. This is Eddie. I'd just like to chip in to be even clearer on this point because I detect a common pattern across the past several questions. And I was just actually joking with Joe about this because it seems like investors are even more anxious than we are to make money.

[解釋] 是的。這是艾迪。我想在這一點上說得更清楚，因為我在過去的幾個問題中發現了一個共同的模式。我其實只是跟喬開玩笑，因為投資人似乎比我們更渴望賺錢。

So I'd like to be really clear about what our primary objective is this year and that is on Taobao, certainly to invest in merchandise assortment and competitiveness and enhance user experience to drive GMV growth as well as purchase frequency, right? That's our #1 objective this year. And only after being able to achieve that objective successfully, can we really increase CMR. And in fact, increasing CMR will just be a natural result of those efforts.

所以我想先明確我們今年的首要目標是什麼，那就是在淘寶，當然是在商品種類和競爭力上進行投資，並增強用戶體驗，以推動GMV增長以及購買頻率，對吧？這是我們今年的第一個目標。只有成功達成這個目標之後，我們才能真正提升CMR。事實上，提高 CMR 將是這些努力的自然結果。

And talking about advertising and commercialization, I was personally part of the whole growth story of Taobao from 0 in revenues and the development of Alimama from 0 to 100 million to 1 billion and 10 billion and beyond. So I can tell you that we have the capabilities to put in place those kinds of advertising products that will drive CMR growth.

說到廣告和商業化，我個人參與了淘寶從0收入到阿里媽媽從0到1億到10億、100億甚至更多的整個成長故事。所以我可以告訴你，我們有能力推出能夠推動 CMR 成長的廣告產品。

We're certain that we can do that but we're controlling the pace which we move forward to ensure a really good experience for our merchants and for our consumer. So this year, we're really focused on enhancing consumer experience and growing GMV and we'll move forward on that basis.

我們確信我們可以做到這一點，但我們正在控制前進的步伐，以確保為我們的商家和消費者提供真正良好的體驗。因此，今年，我們真正專注於增強消費者體驗和提高 GMV，並在此基礎上繼續前進。

Your next question comes from Ronald Keung with Goldman Sachs.

你的下一個問題來自高盛的羅納德薑（Ronald Keung）。

So I guess no one asked about the AIDC so far, haven't really deeply discussed. So I want to ask about the -- because this quarter, it was mostly the increase in AIDC losses to the group earnings. Otherwise, the Taobao has been relatively stable.

所以我猜到目前為止還沒有人問過 AIDC，也沒有真正深入討論過。所以我想問一下 - 因為本季度，主要是 AIDC 損失對集團收益的增加。除此之外，淘寶一直比較穩定。

So I want to hear what -- how do we see the investment scale evolve for international e-commerce? We've also seen some of our peers shifting from fully interested to semi interested, which is they're going to leave merchants to do their local warehousing. How do we see a loss or investment involved with these trends?

所以我想聽聽看——我們如何看待國際電子商務的投資規模的演變？我們也看到一些同行從完全感興趣轉變為半感興趣，即他們將離開商家進行本地倉儲。我們如何看待這些趨勢帶來的損失或投資？

[Interpreted] Thank you. Well, I think there are really 2 principal reasons for the losses in this quarter or for the heightened spending in this quarter. First was that in certain emerging markets and especially in the Middle East, this was a time of year that represents peak sales with Ramadan in the Middle Eastern countries. So Trendyol was taking advantage of that with advertising spending promotions, reaching out to consumers.

[已翻譯] 謝謝。嗯，我認為本季虧損或本季支出增加確實有兩個主要原因。首先，在某些新興市場，尤其是中東，這是一年中中東國家齋戒月銷售高峰的時期。因此，Trendyol 利用這一點進行廣告支出促銷，接觸消費者。

And then the second reason has to do with AE Choice, as AE Choice occupies an increasing proportion of overall orders of the overall business. And as we're switching over to this new business model, it's going to take a little time for the profit margins and AE Choice to catch up. So there is a margin gap there to be filled. We are working rapidly to optimize efficiency of the AE Choice model.

第二個原因就和AE Choice有關，因為AE Choice在整個業務的整體訂單中所佔的比例越來越大。當我們轉向這種新的商業模式時，利潤率和 AE Choice 需要一些時間才能趕上。因此，存在需要填補的利潤缺口。我們正在迅速努力優化 AE Choice 模型的效率。

And I think you'll see within several quarters very clear enhancement in the unit economics of the AE Choice model.

我認為您將在幾個季度內看到 AE Choice 模型的單位經濟效益明顯增強。

So as the new model stabilizes, we'll continue to pay attention, of course, to achieving growth but balancing that also with more efficiency.

因此，隨著新模式的穩定，我們當然會繼續專注於實現成長，但同時也要以更高的效率來平衡成長。

And on your second question, which had to do with semi-consignment versus full consignment model, so that's not really about cross-border per se. It's about where merchants preplace their merchandise in a local warehouse for local shipping. Our take on that is that some categories are just better suited to a cross-border business model because of characteristics of the merchandise and other reasons, other -- for other categories, that kind of local shipment model can work better.

關於你的第二個問題，這與半寄售與完全寄售模式有關，所以這實際上與跨境本身無關。這是關於商家將商品存放在當地倉庫中以便當地運輸的地方。我們的看法是，由於商品的特性和其他原因，某些類別更適合跨國商業模式，而對於其他類別，這種本地運輸模式可以更好地發揮作用。

So we've done a lot of this in the past as well, preplacing merchandise into overseas warehouses to be shipped locally. And we're working on developing more local sellers in places like the Middle East, South Korea and Europe. But we think at the end of the day, for some categories, local merchants can be more competitive. But in other categories, the cross-border model will work better. It really comes down to competitiveness and consumer preference. So we continue to track how consumers receive these different approaches and plan accordingly.

所以我們過去也做了很多這樣的事情，將商品預先放入海外倉庫，然後在當地發貨。我們正在努力在中東、韓國和歐洲等地發展更多本地賣家。但我們認為最終，對於某些類別，本地商家可能更具競爭力。但在其他品類上，跨界模式會發揮更好的作用。這實際上取決於競爭力和消費者偏好。因此，我們繼續追蹤消費者如何接受這些不同的方法並做出相應的計劃。

Your next question comes from Yang Bai with CICC.

你的下一個問題來自中金公司楊白。

[Interpreted] My question has to do with the company's plans to deliver returns to shareholders. And we see those plans now resulting in something like the equivalent of an 8% dividend yield. But I have some concerns about the share repurchase plan going forward because it seems to be related to the currently rather low stock price. But in the longer term, how will this play out? And how can you guarantee your ability to continue to make those kinds of returns to shareholders?

[解釋]我的問題與公司向股東提供回報的計劃有關。我們看到這些計劃現在帶來了相當於 8% 的股息殖利率。但我對未來的股票回購計畫有些擔憂，因為它似乎與目前相當低的股價有關。但從長遠來看，這將如何發展？你如何保證你有能力繼續為股東帶來這樣的回報？

[Interpreted] Well, thank you for that question. Our shareholder return plan isn't something that we just started to implement over the past 1 to 2 years. It's a long-term plan. It started several years back. And the current plan we have in place has been approved by the Board to run all the way through to March of 2027. If you look at the amount of share repurchases that we did in the last year, it was around USD 13 billion. The more recent year, USD 16.5 billion approximately and that leaves us with around USD 30 billion to continue to deploy. So this is a long-term plan that we're committed to.

[解釋] 好的，謝謝你的提問。我們的股東回報計畫並不是我們過去一兩年才開始實施的。這是一個長期計劃。事情始於幾年前。我們目前製定的計畫已獲得董事會批准，將持續到 2027 年 3 月。最近一年，大約為 165 億美元，這使得我們還有大約 300 億美元可以繼續部署。所以這是我們致力於的長期計劃。

For us, as management of the company, thinking about how we'll continue to deliver those returns to shareholders in the future, we have to look on the one hand at the company's cash flows. And on the other hand, the investment needs of the company related to our core business but also in new emerging areas that are important, like AI, for example, and also AIDC right now.

對於我們作為公司管理層來說，考慮未來如何繼續為股東帶來這些回報，我們一方面必須關注公司的現金流。另一方面，公司的投資需求與我們的核心業務相關，但也涉及重要的新興領域，例如人工智慧，以及現在的 AIDC。

But going forward, we will be committed to continue to make those kinds of returns to shareholders on that basis. And we take an integrated view. In other words, the share buyback program and dividend distributions together comprise our shareholder return program. We look at the 2 together.

但展望未來，我們將致力於在此基礎上繼續為股東帶來這樣的回報。我們採取綜合的觀點。換句話說，股票回購計畫和股利分配共同構成了我們的股東報酬計畫。我們一起看看2。

Your next question comes from Joyce Ju with Bank of America.

您的下一個問題來自美國銀行的 Joyce Ju。

[Interpreted] My question is also about AIDC, in particular. We understand that the AE Choice model now represents around 70% of total orders on AliExpress. Perhaps you could give us a little more color on how that model is growing? How you see it growing in the next couple of quarters or even in the next few years on a longer-term basis in terms of which regions, which categories? What kind of users represent the most stable sources of growth? Or where there's the most potential for further growth? And I'm also like wanting to understand more about your collaboration with Cainiao in terms of making further investments together on cross-border.

[解釋]我的問題也特別是關於AIDC。據我們了解，AE Choice 模式目前約佔 AliExpress 總訂單的 70% 左右。也許您可以給我們更多關於該模型如何發展的資訊？您如何看待未來幾季甚至未來幾年在哪些地區、哪些類別的長期成長？什麼樣的使用者才是最穩定的成長來源？或是哪裡最有進一步成長的潛力？我也想多了解你們與菜鳥在跨境投資方面的合作。

[Interpreted] Well, AE Choice is a business model that is best suited, of course, for light and small packages, light and small goods. It has a strong advantage in that space. Goods that can be air shipped cost effectively. And in the past, that is really where Alibaba Express has had an advantage in those kinds of categories. We are also working on growing different kinds of supply chain models for different markets, for example, for South Korea, working on developing additionally ocean freight for larger and heavier kinds of goods, so -- and piloting also the deployment of local warehouses as well.

【解讀】嗯，AE Choice當然是最適合輕小包裝、輕小商品的商業模式。它在該領域具有強大的優勢。可以有效地空運貨物。過去，這確實是阿里巴巴快遞在此類類別中具有優勢的地方。我們也致力於針對不同市場（例如韓國）開發不同類型的供應鏈模式，致力於為更大、更重的貨物開發額外的海運服務，並試行部署本地倉庫。

So our general strategy in any market is to start with those categories where we have that advantage, the light and small packages and then to build up supply chain to support other kinds of demand that makes sense for that particular market. Another important thing that we have these local platforms in different regions, for example, Lazada in Southeast Asia, Trendyol in the Middle East. And AE Choice is currently integrating with those different platforms to allow for direct sales into those markets, meaning that AE Choice doesn't need to make any big investments in branding and marketing to consumer offering in those markets. So that's allowing us to move ahead very rapidly into those different markets.

因此，我們在任何市場的整體策略都是從我們有優勢的類別開始，即輕型和小型包裝，然後建立供應鏈以支援對該特定市場有意義的其他類型的需求。另外一個重要的事情是我們在不同地區都有這些本地平台，例如東南亞的Lazada，中東的Trendyol。 AE Choice 目前正在與這些不同的平台集成，以允許直接銷售到這些市場，這意味著 AE Choice 不需要在向這些市場的消費者提供的品牌和行銷方面進行任何重大投資。因此，這使我們能夠非常迅速地進入這些不同的市場。

Of course, different categories make better sense in different markets. In the case of Turkey, for example, they have an advantage when it comes to apparel but we can achieve an advantage there in other categories where they don't have that kind of local supply. So in each market, of course, we look at our own resources, what we can bring. We look at the situation in that market and then decide which categories we're going to bring to that market and how.

當然，不同的類別在不同的市場更有意義。例如，就土耳其而言，他們在服裝方面具有優勢，但我們可以在他們沒有此類本地供應的其他類別中取得優勢。因此，當然，在每個市場，我們都會考慮自己的資源，我們可以帶來什麼。我們會研究該市場的情況，然後決定將哪些品類引入該市場以及如何引入。

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 probably a few questions about AI and cloud. And can you maybe talk about your development, your own large language model? And help us understand where your focus is? Is it scale? Is it building scale to be the largest one based on the number of parameters? Or are you focused on different modalities of data, voice, text, image or video? And should we think about the end goal for your large language model to create maybe applications, such as AI agents, shopping agents for your consumers and business agents for your merchants?

可能還有一些關於人工智慧和雲端的問題。您能談談您的開發，您自己的大型語言模型嗎？並幫助我們了解您的重點在哪裡？是規模嗎？是否根據參數數量來建立最大的規模？或者您是否專注於不同形式的數據、語音、文字、圖像或視訊？我們是否應該考慮大型語言模型的最終目標，以創建應用程序，例如人工智慧代理、消費者的購物代理和商家的業務代理？

[Interpreted] Could I just ask you please to clarify the thrust of your first question? Are you asking about the main objectives for our ongoing development of large models?

[解釋]我可以請您澄清一下您第一個問題的主旨嗎？您是否想了解我們持續開發大型模型的主要目標？

Yes. Development of large language model. Is it to scale, to have one of the largest one in China based on a number of parameters? Is that focus on the modality of the data, voice, text, image as the focus? Because different companies throughout internationally, they have different focus in terms of growing that large language model.

是的。大語言模型的發展。是按照規模來衡量，根據一些參數，擁有中國最大的工廠之一嗎？是不是以數據、語音、文字、圖像的形態為重點？由於國際上不同的公司，他們在發展大型語言模型方面有不同的重點。

[Interpreted] Right. Well, I think all of the companies in the large model space, anybody who's developing foundational models shares the same goal and that is working towards AGI, artificial general intelligence. But different companies will take different routes to get there and along the way, can make different choices and may choose to develop certain kinds of vertical applications, leveraging their model along the way.

【解釋】對。嗯，我認為大型模型領域的所有公司，任何開發基礎模型的公司都有一個共同的目標，那就是致力於 AGI（通用人工智慧）。但不同的公司會採取不同的路線到達那裡並一路走來，可以做出不同的選擇，並且可能會選擇開發某些類型的垂直應用程序，並沿途利用他們的模型。

But at the end of the day, I think for all players, the ultimate goal is to achieve AGI, covering everything from voice and audio through to image, video and text and encompassing all of that. So different pathways to getting there, perhaps different kinds of vertical models along the way but the objective, I think, is a common objective.

但歸根結底，我認為對於所有玩家來說，最終目標是實現 AGI，涵蓋從語音和音訊到圖像、視訊和文字的所有內容。因此，實現這一目標的途徑不同，可能一路上有不同類型的垂直模型，但我認為，目標是一個共同的目標。

For Alibaba, I think there are really 3 major objectives underlying our ongoing large investments in research and development around AI and large models. The first is the pursuit of AGI, as I just explained, per se, developing our own foundational models for AI, moving towards AGI. The second objective is internally within Alibaba integrating cloud -- our cloud offering with Tongyi, our large language model. Integrating them tightly so that we can provide to our customers extremely well integrated software and hardware offerings, bringing together our cloud capabilities and our AI capabilities and enabling them to benefit from very high -- highly effective and cost-efficient AI functionality.

對於阿里巴巴來說，我認為我們持續大量投資人工智慧和大型模型的研發實際上有 3 個主要目標。首先是對 AGI 的追求，正如我剛才所解釋的，開發我們自己的 AI 基礎模型，朝向 AGI 邁進。第二個目標是在阿里巴巴內部整合雲端——我們的雲端產品與我們的大語言模式統一。將它們緊密整合，以便我們能夠為客戶提供極其整合的軟體和硬體產品，將我們的雲端能力和人工智慧能力結合在一起，使他們能夠從非常高效且具有成本效益的人工智慧功能中受益。

And I think if you look around the world, I don't think there's really any other company anywhere, like Alibaba that has cloud as one of its major businesses and AI as one of its major businesses simultaneously. So we see that as a huge opportunity. And then the third objective really is leveraging the development of Tongyi to enable other businesses within the Alibaba Group to better develop their own applications and their own business. So thinking of applications like (inaudible) and even Taobao, they can benefit from leveraging our large model, Tongyi, to further improve their own applications.

我認為，如果你環顧世界，我認為沒有其他公司像阿里巴巴一樣，同時將雲端作為其主要業務之一，並將人工智慧作為其主要業務之一。所以我們認為這是一個巨大的機會。第三個目標其實是利用統一的發展，讓阿里巴巴集團內的其他業務能夠更好地開發自己的應用程式和自己的業務。因此，考慮像（聽不清楚）甚至淘寶這樣的應用程序，他們可以從利用我們的大型模型「統一」中受益，以進一步改進自己的應用程式。

Just to further expand on that second point I just made about the tight integration between our Tongyi model and our cloud offerings. Our open-source model that we've made available is undoubtedly the #1 top open-source model anywhere in the Chinese speaking world. And it's also certainly the most widely adopted. So when you have developers using our open-source model in their own development environment to develop something, when it comes time to deploy that, it's a very natural choice for them to choose Alibaba Cloud because of the very high level of cost efficiency but also because that's the most familiar environment to them. So that's just a very simple example showing how we can leverage that tight integration between Tongyi, our model and cloud and indeed, other aspects of Alibaba's business and business models.

為了進一步擴展我剛才提到的關於統一模型和雲端產品之間緊密整合的第二點。我們提供的開源模型無疑是中文世界中排名第一的頂級開源模型。而且它肯定也是最廣泛採用的。因此，當開發人員在自己的開發環境中使用我們的開源模型來開發某些東西時，當需要部署它時，他們選擇阿里雲是一個非常自然的選擇，因為成本效率非常高，而且還因為那是他們最熟悉的環境。這只是一個非常簡單的例子，展示了我們如何利用統一、我們的模型和雲端以及阿里巴巴業務和商業模式的其他方面之間的緊密整合。

Okay. That concludes our earnings call today. And thank you, everyone, for your participation this quarter.

好的。我們今天的財報電話會議到此結束。感謝大家本季的參與。

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。