《阿里巴巴集团控股有限公司2023财年半年度报告(英文版)(30页).pdf》由会员分享,可在线阅读,更多相关《阿里巴巴集团控股有限公司2023财年半年度报告(英文版)(30页).pdf(30页珍藏版)》请在三个皮匠报告上搜索。
1、Fiscal Year 2023 Interim Report1ALIBABA GROUP HOLDING LIMITED阿里巴巴集團控股有限公司INTERIM REPORTFOR THE SIX MONTHS ENDED SEPTEMBER 30,2022EXPLANATORY NOTESAlibaba Group Holding Limited(“Alibaba,”“we,”“our,”or“us”)prepared this interim report for the first six months of its fiscal year ending March 31,2023(th
2、e“Interim Report”)pursuant to Rule 13.48(1)of the Hong Kong Listing Rules.As an issuer listed on the Hong Kong Stock Exchange under Chapter 19C of the Hong Kong Listing Rules,we are exempted from the contents requirements in respect of interim reports under Appendix 16 of the Hong Kong Listing Rules
3、.For more information about our business and related risks,please refer to our annual report for the fiscal year ended March 31,2022(the“Annual Report”)published on the website of the Hong Kong Stock Exchange on July 26,2022.Please note that the information contained in the Annual Report is up to da
4、te as of the date of the Annual Report,and we do not undertake any obligation to update the Annual Report,except as required under applicable law.Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Annual Report.This Interim Report contains translations of c
5、ertain Renminbi(“RMB”)amounts into U.S.dollars(“US$”)and Hong Kong dollars(“HK$”)for the convenience of the reader.Unless otherwise stated,all translations of RMB into US$were made at RMB7.1135 to US$1.00,the exchange rate on September 30,2022 as set forth in the H.10 statistical release of the Fede
6、ral Reserve Board,and all translations of RMB into HK$were made at RMB0.90444 to HK$1.00,the middle rate on September 30,2022 as published by the Peoples Bank of China.The percentages stated in this Interim Report are calculated based on the RMB amounts and there may be minor differences due to roun
7、ding.2FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED SEPTEMBER 30,2022 Revenue was RMB412,731 million(US$58,021 million),an increase of 2%year-over-year.Income from operations was RMB50,080 million(US$7,040 million),an increase of 9%year-over-year.The year-over-year increase was primarily attributabl
8、e to the decrease in share-based compensation expense and the increase in adjusted EBITA.We exclude share-based compensation expense from our non-GAAP measurements.Adjusted EBITDA,a non-GAAP measurement,increased 1%year-over-year to RMB84,425 million(US$11,868 million).Adjusted EBITA,a non-GAAP meas
9、urement,increased 1%year-over-year to RMB70,583 million(US$9,922 million).The year-over-year increases in adjusted EBITDA and adjusted EBITA were primarily due to the narrowed adjusted EBITA loss of Local consumer services,partly offset by the decrease in China commerce adjusted EBITA.Net income att
10、ributable to ordinary shareholders was RMB2,178 million(US$306 million),and net loss was RMB2,169 million(US$305 million),compared to net income of RMB46,212 million in the same period of 2021,primarily attributable to an increase in net losses arising from the decrease in market prices of our equit
11、y investments in publicly-traded companies and a decrease in share of results of equity method investees.We excluded net gains or losses arising from the changes in fair value of our investments from our non-GAAP measurements.Non-GAAP net income was RMB64,072 million(US$9,007 million),a decrease of
12、11%year-over-year.Diluted earnings per ADS was RMB0.82(US$0.12)and diluted earnings per share was RMB0.10(US$0.01 or HK$0.11).Non-GAAP diluted earnings per ADS was RMB24.64(US$3.46)and non-GAAP diluted earnings per share was RMB3.08(US$0.43 or HK$3.41),both of which decreased by 11%year-over-year.Ne
13、t cash provided by operating activities was RMB80,981 million(US$11,384 million).Free cash flow was RMB57,882 million(US$8,137 million),an increase of 35%compared to RMB42,922 million in the same period of 2021,during which we made a partial payment in the amount of RMB9,114 million of the RMB18,228
14、 million anti-monopoly fine.The year-over-year increase also reflected dividend received from Ant Group of RMB3,945 million(US$555 million)in the six months ended September 30,2022.Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this Interim Report.3S
15、IX MONTHS ENDED SEPTEMBER SUMMARY FINANCIAL RESULTSSix months ended September 30,20212022RMBRMBUS$YoY%Change(in millions,except percentages and per share amounts)Revenue406,430412,73158,0212%Income from operations45,85350,0807,0409%(2)Operating margin11%12%Adjusted EBITDA(1)83,46884,42511,8681%(3)Ad
16、justed EBITDA margin(1)21%20%Adjusted EBITA(1)69,76470,5839,9221%(3)Adjusted EBITA margin(1)17%17%Net income(loss)46,212(4)(2,169)(4)(305)N/ANet income attributable to ordinary shareholders50,5082,178306(96)%(4)Non-GAAP net income(1)71,96564,0729,007(11)%(4)Diluted earnings per share(5)2.300.100.01(
17、96)%(4)(6)Diluted earnings per ADS(5)18.440.820.12(96)%(4)(6)Non-GAAP diluted earnings per share(1)(5)3.483.080.43(11)%(4)(6)Non-GAAP diluted earnings per ADS(1)(5)27.8424.643.46(11)%(4)(6)(1)See the sections entitled“Information by Segments,”“Non-GAAP Financial Measures”and“Reconciliations of Non-G
18、AAP Measures to the Nearest Comparable U.S.GAAP Measures”for more information about the non-GAAP measures referred to within this Interim Report.(2)The year-over-year increase was primarily due to the decrease in share-based compensation expense and the increase in adjusted EBITA.(3)The year-over-ye
19、ar increases were primarily due to the narrowed adjusted EBITA loss of Local consumer services driven by Ele.mes improved unit economics per order,partly offset by the decrease in China commerce adjusted EBITA.The decrease in China commerce adjusted EBITA was primarily due to the decrease in custome
20、r management revenue,partly offset by Taobao Deals and Taocaicais reduced losses as a result of improved operating efficiency.(4)The year-over-year changes were primarily attributable to an increase in net losses arising from the decrease in market prices of our equity investments in publicly-traded
21、 companies and a decrease in share of results of equity method investee.We excluded net gains or losses arising from the changes in fair value of our investments from our non-GAAP measurements.(5)Each ADS represents eight ordinary shares.(6)The year-over-year percentages as stated are calculated bas
22、ed on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.4INFORMATION BY SEGMENTSThe table below sets forth selected financial information of our operating segments for the periods indicated:Six months ended Sept
23、ember 30,2022ChinacommerceInternationalcommerceLocalconsumerservicesCainiaoCloudDigitalmedia andentertainmentInnovationinitiativesand othersUnallocated(1)ConsolidatedRMBRMBRMBRMBRMBRMBRMBRMBRMBUS$(in millions,except percentages)Revenue277,36631,19823,70525,50938,44215,623888412,73158,021YoY%change(1
24、)%3%13%19%7%(3)%(38)%N/A2%Income(Loss)from operations82,318(3,794)(11,013)(1,472)(2,746)(1,912)(5,039)(6,262)50,0807,040Add:Share-based compensation expense4,0581,2271,6449053,4217937751,68914,5122,040Add:Amortization of intangible assets1,178402,83250763724221235,480770Add:Equity-settled donation e
25、xpense51151172Adjusted EBITA87,554(2,527)(6,537)(60)681(747)(3,842)(3,939)70,5839,922Adjusted EBITA YoY%change(2)(5)%28%42%87%(7)%45%(25)%(14)%1%Adjusted EBITA margin32%(8)%(28)%(0)%2%(5)%(433)%N/A17%Six months ended September 30,2021ChinacommerceInternationalcommerceLocalconsumerservicesCainiaoClou
26、dDigitalmedia andentertainmentInnovationinitiativesand othersUnallocated(1)ConsolidatedRMBRMBRMBRMBRMBRMBRMBRMBRMB(in millions,except percentages)Revenue280,14930,29420,90521,44736,05816,1541,423406,430Income(Loss)from operations85,279(5,030)(16,338)(1,852)(3,628)(2,710)(4,263)(5,605)45,853Add:Share
27、-based compensation expense5,2401,4641,8778424,3569491,1672,03717,932Add:Amortization of intangible assets1,657553,81155,979Adjusted EBITA92,176(3,511)(11,305)(461)736(1,350)(3,068)(3,453)69,764Adjusted EBITA margin33%(12)%(54)%(2)%2%(8)%(216)%N/A17%5Starting from the quarter ended Decemb
28、er 31,2021,our chief operating decision maker(“CODM”)started to review information under a new reporting structure,and segment reporting has been updated to conform to this change,which also provides greater transparency in our business progress and financial performance.Our updated segments compris
29、e:China commerce,which mainly includes our China commerce retail businesses such as Taobao,Tmall,Taobao Deals,Taocaicai,Freshippo,Tmall Supermarket,Sun Art,Tmall Global and Alibaba Health,as well as wholesale business including ;International commerce,which mainly includes our international commerce
30、 retail and wholesale businesses such as Lazada,AliExpress,Trendyol,Daraz and A;Local consumer services,which mainly includes location-based services,such as Ele.me,Taoxianda,Amap(previously reported under the Innovation initiatives and others segment)and Fliggy;Cainiao,which mainly includes our dom
31、estic and international one-stop-shop logistics services and supply chain management solutions;Cloud,which is comprised of Alibaba Cloud and DingTalk;Digital media and entertainment,which is comprised of Youku,Quark,Alibaba Pictures,and other content and distribution platforms,as well as our online
32、games business;and Innovation initiatives and others,which includes businesses such as DAMO Academy,Tmall Genie and others.Comparative figures were reclassified to conform to this presentation.(1)Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items th
33、at are not allocated to individual segments.The equity-settled donation expense was related to the allotment of shares to a charitable trust,which is presented as an unallocated item in the segment information because our management does not consider this as part of the segment operating performance
34、 measure.(2)For a more intuitive presentation,widening of loss in YoY%is shown in terms of negative growth rate,and narrowing of loss in YoY%is shown in terms of positive growth rate.6OPERATIONAL AND FINANCIAL RESULTSRevenueRevenue for the six months ended September 30,2022 was RMB412,731 million(US
35、$58,021 million),an increase of 2%compared to RMB406,430 million in the same period of 2021.The following table sets forth a breakdown of our revenue by segment for the periods indicated:Six months ended September 30,20212022RMB%of RevenueRMBUS$%of RevenueYoY%Change(in millions,except percentages)Ch
36、ina commerce:China commerce retail Customer management151,52837%138,76019,50734%(8)%Direct sales and others(1)120,52330%129,43918,19631%7%272,05167%268,19937,70365%(1)%China commerce wholesale8,0982%9,1671,2892%13%Total China commerce280,14969%277,36638,99267%(1)%International commerce:International
37、 commerce retail21,1755%21,2622,9895%0%International commerce wholesale9,1192%9,9361,3973%9%Total International commerce30,2947%31,1984,3868%3%Local consumer services20,9055%23,7053,3326%13%Cainiao logistics services21,4475%25,5093,5866%19%Cloud36,0589%38,4425,4049%7%Digital media and entertainment1
38、6,1544%15,6232,1964%(3)%Innovation initiatives and others1,4231%8881250%(38)%Total406,430100%412,73158,021100%2%(1)Direct sales and others revenue under China commerce retail primarily represents our direct sales businesses,comprising mainly Sun Art,Tmall Supermarket and Freshippo,where revenue and
39、the cost of inventory are recorded on a gross basis.7China Commerce(i)Segment revenue China Commerce Retail BusinessRevenue from our China commerce retail business for the six months ended September 30,2022 was RMB268,199 million(US$37,703 million),a decrease of 1%compared to RMB272,051 million for
40、the same period of 2021.Customer management revenue declined 8%year-over-year,primarily due to mid-single-digit decline of online physical goods GMV generated on Taobao and Tmall,excluding unpaid orders year-over-year,and increased order cancellation due to the impacts from COVID-19 resurgence and r
41、estrictions that resulted in supply chain and logistics disruptions,as well as on-going competition.Direct sales and others revenue under China commerce retail business for the six months ended September 30,2022 was RMB129,439 million(US$18,196 million),achieving year-over-year growth of 7%compared
42、to RMB120,523 million for the same period of 2021.The increase was primarily due to the revenue growth contributed by our Freshippo and Alibaba Healths direct sales businesses.China Commerce Wholesale BusinessRevenue from our China commerce wholesale business for the six months ended September 30,20
43、22 was RMB9,167 million(US$1,289 million),an increase of 13%compared to RMB8,098 million for the same period of 2021.The increase was primarily due to an increase in revenue from value-added services to wholesale buyers and paying members.(ii)Segment adjusted EBITAChina commerce adjusted EBITA decre
44、ased by 5%to RMB87,554 million(US$12,308 million)for the six months ended September 30,2022,compared to RMB92,176 million for the same period of 2021,primarily due to the decrease in customer management revenue,partly offset by Taobao Deals and Taocaicais reduced losses as a result of improved opera
45、ting efficiency,which also led to the decrease in adjusted EBITA margin from 33%for the six months ended September 30,2021 to 32%for the six months ended September 30,2022.During the six months ended September 30,2022,Taobao Deals significantly narrowed losses year-over-year,driven by optimized spen
46、ding in user acquisition.Taocaicai significantly narrowed losses year-over-year,driven by optimized pricing strategy,enhanced sourcing capability and lowered operation and fulfillment costs.8International Commerce(i)Segment revenue International Commerce Retail BusinessRevenue from our International
47、 commerce retail business for the six months ended September 30,2022 was RMB21,262 million(US$2,989 million),remained stable year-over-year compared to RMB21,175 million for the same period of 2021.Revenue contributed by Trendyol increased as a result of the strong order growth from its e-commerce b
48、usiness and optimization of subsidies offered that were contra revenue of Trendyol,and revenue contributed by Lazada increased mainly due to active increase in monetization initiatives that resulted in higher monetization rate.These increases were partly offset by the decrease in revenue contributed
49、 by AliExpress due to declining orders as a result of change in the European Unions VAT rules,depreciation of Euro against U.S.dollar,as well as ongoing supply chain and logistics disruptions due to the Russia-Ukraine conflict.International Commerce Wholesale BusinessRevenue from our International c
50、ommerce wholesale business for the six months ended September 30,2022 was RMB9,936 million(US$1,397 million),an increase of 9%compared to RMB9,119 million for the same period of 2021.The increase was primarily due to an increase in revenue generated by cross-border related value-added services.(ii)S
51、egment adjusted EBITAInternational commerce adjusted EBITA was a loss of RMB2,527 million(US$355 million)for the six months ended September 30,2022,compared to a loss of RMB3,511 million in the same period of 2021.The decrease in loss year-over-year was primarily due to the reduced losses from Lazad
52、a.Reduced losses from Lazada was a result of continued improvement in monetization rate by offering more value-added services as well as enhancing operating efficiency.Local Consumer Services(i)Segment revenueRevenue from Local consumer services,which includes“To-Home”and“To-Destination”businesses s
53、uch as Ele.me,Amap and Fliggy,was RMB23,705 million(US$3,332 million)for the six months ended September 30,2022,an increase of 13%compared to RMB20,905 million for the same period of 2021,primarily due to higher average order value and more efficient use of subsidies that were contra revenue of Ele.
54、me,as well as strong growth of Amap orders.9(ii)Segment adjusted EBITALocal consumer services adjusted EBITA was a loss of RMB6,537 million(US$919 million)for the six months ended September 30,2022,compared to a loss of RMB11,305 million in the same period of 2021,primarily due to the continued narr
55、owing of losses from our“To-Home”and“To-Destination”businesses.Narrowing of loss from our“To-Home”business was driven by Ele.mes improved unit economics per order,which was due to increased average order value year-over-year,reduced delivery cost per order and optimized user acquisition spending.Nar
56、rowing of loss from our“To-Destination”business was driven by the strong order growth of Amap business,as well as optimized spending in user acquisition.Cainiao(i)Segment revenueRevenue from Cainiao Networks logistics services,which represents revenue from its domestic and international one-stop-sho
57、p logistics services and supply chain management solutions,after elimination of inter-company transactions,was RMB25,509 million(US$3,586 million)for the six months ended September 30,2022,an increase of 19%compared to RMB21,447 million for the same period of 2021,primarily contributed by the increa
58、se in revenue from domestic consumer logistics services as a result of service model upgrade since late 2021 where Cainiao takes on more responsibilities throughout the logistics process to better serve customers and enhance customer experience,and partly offset by the decrease in revenue from inter
59、national logistics services.The decrease in revenue from international logistics services was primarily due to the decrease in international orders from AliExpress,partly offset by the increase in international fulfillment solution services.Total revenue generated by Cainiao,before inter-segment eli
60、mination,which includes revenue from services provided to other Alibaba businesses,was RMB35,574 million(US$5,001 million),an increase of 16%compared to RMB30,757 million in the same period of 2021.This increase also reflected the growth of fulfillment solutions and value-added services provided to
61、our China commerce retail businesses,such as Tmall,Taobao and Taobao Deals.(ii)Segment adjusted EBITACainiao adjusted EBITA was a loss of RMB60 million(US$8 million)for the six months ended September 30,2022,compared to a loss of RMB461 million in the same period of 2021.Cloud(i)Segment revenueReven
62、ue from our Cloud segment,which comprises Alibaba Cloud and DingTalk,after inter-segment elimination,was RMB38,442 million(US$5,404 million)for the six months ended September 30,2022,an increase of 7%compared to RMB36,058 million for the same period of 2021.Year-over-year revenue growth of our Cloud
63、 segment reflected the strong revenue growth from non-Internet industries driven by financial services,public services and telecommunication industries,partly offset by a decline in revenue from customers in 10the Internet industry mainly driven by declining revenue from the top Internet customer th
64、at has gradually stopped using our overseas cloud services for its international business due to non-product related requirements and online education customers,as well as softening demand from other customers in Chinas Internet industry.Total revenue from our Cloud segment,before inter-segment elim
65、ination,which includes revenue from services provided to other Alibaba businesses,was RMB50,698 million(US$7,127 million),an increase of 5%compared to RMB48,448 million in the same period of 2021.(ii)Segment adjusted EBITACloud adjusted EBITA was RMB681 million(US$96 million)for the six months ended
66、 September 30,2022,compared to RMB736 million for the same period of 2021.Digital Media and Entertainment(i)Segment revenueRevenue from our Digital media and entertainment segment for the six months ended September 30,2022 was RMB15,623 million(US$2,196 million),a decrease of 3%compared to RMB16,154
67、 million for the same period of 2021,primarily due to the decrease in online games business revenue.(ii)Segment adjusted EBITAAdjusted EBITA for the six months ended September 30,2022 was a loss of RMB747 million(US$105 million),compared to a loss of RMB1,350 million for the same period of 2021,prim
68、arily due to narrowing loss of Youku.Innovation initiatives and others(i)Segment revenueRevenue from Innovation initiatives and others for the six months ended September 30,2022 was RMB888 million(US$125 million),a decrease of 38%compared to RMB1,423 million for the same period of 2021.(ii)Segment a
69、djusted EBITAAdjusted EBITA for the six months ended September 30,2022 was a loss of RMB3,842 million(US$540 million),compared to a loss of RMB3,068 million for the same period of 2021,primarily due to our investments in technology and innovation.11Costs and ExpensesThe following tables set forth a
70、breakdown of our costs and expenses,share-based compensation expense and costs and expenses excluding share-based compensation expense by function for the periods indicated.Six months ended September 30,%of Revenue YoY change20212022RMB%of RevenueRMBUS$%of Revenue(in millions,except percentages)Cost
71、s and expenses:Cost of revenue253,84763%260,86736,67264%1%Product development expenses28,8167%29,3434,1257%0%Sales and marketing expenses55,89314%47,9376,74011%(3)%General and administrative expenses16,0424%19,0242,6745%1%Amortization of intangible assets5,9791%5,4807701%0%Total costs and expenses36
72、0,57789%362,65150,98188%(1)%Share-based compensation expense:Cost of revenue4,1101%2,8153961%0%Product development expenses8,2462%6,8219592%0%Sales and marketing expenses2,0501%1,7712490%(1)%General and administrative expenses3,5261%3,1054361%0%Total share-based compensation expense17,9325%14,5122,0
73、404%(1)%Costs and expenses excluding share-based compensation expense:Cost of revenue249,73762%258,05236,27663%1%Product development expenses20,5705%22,5223,1665%0%Sales and marketing expenses53,84313%46,1666,49111%(2)%General and administrative expenses12,5163%15,9192,2384%1%Amortization of intangi
74、ble assets5,9791%5,4807701%0%Total costs and expenses excluding share-based compensation expense342,64584%348,13948,94184%0%12Cost of revenue Cost of revenue for the six months ended September 30,2022 was RMB260,867 million(US$36,672 million),or 64%of revenue,compared to RMB253,847 million,or 63%of
75、revenue,for the same period of 2021.Without the effect of share-based compensation expense,cost of revenue as a percentage of revenue would have increased from 62%for the six months ended September 30,2021 to 63%for the six months ended September 30,2022.Product development expenses Product developm
76、ent expenses for the six months ended September 30,2022 were RMB29,343 million(US$4,125 million),or 7%of revenue,compared to RMB28,816 million,or 7%of revenue,for the same period of 2021.Without the effect of share-based compensation expense,product development expenses as a percentage of revenue wo
77、uld have remained stable at 5%for the six months ended September 30,2022 and for the same period of 2021.Sales and marketing expenses Sales and marketing expenses for the six months ended September 30,2022 were RMB47,937 million(US$6,740 million),or 11%of revenue,compared to RMB55,893 million,or 14%
78、of revenue,for the same period of 2021.Without the effect of share-based compensation expense,sales and marketing expenses as a percentage of revenue would have decreased from 13%for the six months ended September 30,2021 to 11%for the six months ended September 30,2022.General and administrative ex
79、penses General and administrative expenses for the six months ended September 30,2022 were RMB19,024 million(US$2,674 million),or 5%of revenue,compared to RMB16,042 million,or 4%of revenue,for the same period of 2021.Without the effect of share-based compensation expense,general and administrative e
80、xpenses as a percentage of revenue would have increased from 3%for the six months ended September 30,2021 to 4%for the six months ended September 30,2022.Share-based compensation expense Total share-based compensation expense included in the cost and expense items above for the six months ended Sept
81、ember 30,2022 was RMB14,512 million(US$2,040 million),compared to RMB17,932 million for the same period of 2021.Share-based compensation expense as a percentage of revenue decreased from 5%for the six months ended September 30,2021 to 4%for the six months ended September 30,2022.13The following tabl
82、e sets forth our analysis of share-based compensation expense for the periods indicated by type of share-based awards:Six months ended September 30,20212022RMB%of RevenueRMBUS$%of RevenueYoY%Change(in millions,except percentages)By type of awards:Alibaba Group share-based awards(1)15,1054%12,0871,69
83、93%(20)%Ant Group share-based awards(2)7580%188260%(75)%Others(3)2,0691%2,2373151%8%Total share-based compensation expense17,9325%14,5122,0404%(19)%(1)This represents Alibaba Group share-based awards granted to our employees.(2)This represents Ant Group share-based awards granted to our employees,wh
84、ich is subject to mark-to-market accounting treatment.(3)This represents share-based awards of our subsidiaries.Share-based compensation expense related to Alibaba Group share-based awards decreased in the six months ended September 30,2022 compared to the same period of 2021.This decrease is primar
85、ily due to the general decrease in the average fair market value of the awards granted.We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.Amortization of intangible a
86、ssets Amortization of intangible assets for the six months ended September 30,2022 was RMB5,480 million(US$770 million),a decrease of 8%from RMB5,979 million for the same period of 2021.Income from operations and operating marginIncome from operations for the six months ended September 30,2022 was R
87、MB50,080 million(US$7,040 million),or 12%of revenue,an increase of 9%compared to RMB45,853 million,or 11%of revenue,for the same period of 2021,primarily due to the decrease in share-based compensation expense and the increase in adjusted EBITA.14Adjusted EBITDA and Adjusted EBITAAdjusted EBITDA inc
88、reased 1%year-over-year to RMB84,425 million(US$11,868 million)for the six months ended September 30,2022,compared to RMB83,468 million for the same period of 2021.Adjusted EBITA increased 1%year-over-year to RMB70,583 million(US$9,922 million)for the six months ended September 30,2022,compared to R
89、MB69,764 million for the same period of 2021.The year-over-year increase in adjusted EBITA was primarily due to the narrowed adjusted EBITA loss of Local consumer services driven by Ele.mes improved unit economics per order,partly offset by the decrease in China commerce adjusted EBITA.The decrease
90、in China commerce adjusted EBITA was primarily due to the decrease in customer management revenue,partly offset by Taobao Deals and Taocaicais reduced losses as a result of improved operating efficiency.A reconciliation of net income(loss)to adjusted EBITDA and adjusted EBITA is included at the end
91、of this Interim Report.Adjusted EBITA and Adjusted EBITA margin by segmentsAdjusted EBITA and adjusted EBITA margin by segments as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitles“Information by Segments”above.Interest and investment income,n
92、etInterest and investment income,net for the six months ended September 30,2022 was a loss of RMB37,083 million(US$5,213 million),compared to a gain of RMB2,645 million for the same period of 2021,primarily due to the increase in net losses arising from the decrease in market prices of our equity in
93、vestments in publicly-traded companies for the six months ended September 30,2022.The above-mentioned investment related gains/losses were excluded from our non-GAAP net income.Other income,netOther income,net for the six months ended September 30,2022 was RMB3,053 million(US$429 million),compared t
94、o RMB3,820 million for the same period of 2021,primarily due to the net exchange loss for the six months ended September 30,2022,compared to the net exchange gain for the same period of 2021.Income tax expensesIncome tax expenses for the six months ended September 30,2022 were RMB7,971 million(US$1,
95、120 million),compared to RMB15,183 million for the same period of 2021.Excluding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment of investments,as well as deferred tax effects on basis differences arising from our equity method investees,our effective
96、 tax rate would have been 19%for the six months ended September 30,2022.15Share of results of equity method investeesShare of results of equity method investees for the six months ended September 30,2022 was a loss of RMB7,616 million(US$1,071 million),compared to a profit of RMB11,611 million for t
97、he same period of 2021.Share of results of equity method investees for the six months ended September 30,2022 and the comparative period consisted of the following:Six months ended September 30,20212022RMBRMBUS$(in millions)Share of profit(loss)of equity method investees Ant Group10,9986,109859 Othe
98、rs2,516(4,491)(631)Impairment loss(7,189)(1,011)Others(1)(1,903)(2,045)(288)Total11,611(7,616)(1,071)(1)“Others”mainly include amortization of intangible assets of equity method investees,share-based compensation expense related to share-based awards granted to employees of our equity method investe
99、es,as well as gain or loss arising from the dilution of our investments in equity method investees.We record our share of results of all equity method investees one quarter in arrears.The year-over-year decrease in share of profit of Ant Group was due to the decrease in Ant Groups operating profit a
100、nd the net decrease in fair values of investments held by Ant Group.In addition,we recorded an impairment loss of RMB7,189 million(US$1,011 million)in the six months ended September 30,2022 with respect to certain equity method investees as a result of severe and prolonged decline in fair values of
101、certain equity method investees against their respective carrying value.16Net income(loss)and Non-GAAP net incomeOur net loss for the six months ended September 30,2022 was RMB2,169 million(US$305 million),compared to net income of RMB46,212 million for the same period of 2021.The decrease was prima
102、rily attributable to the increase in net losses arising from the decrease in market prices of our equity investments in publicly-traded companies and a decrease in share of results of equity method investees.Excluding share-based compensation expense,revaluation and disposal gains/losses of investme
103、nts,impairment of investments and certain other items,non-GAAP net income for the six months ended September 30,2022 was RMB64,072 million(US$9,007 million),a decrease of 11%compared to RMB71,965 million for the same period of 2021.A reconciliation of net income(loss)to non-GAAP net income is includ
104、ed at the end of this Interim Report.Net income attributable to ordinary shareholdersNet income attributable to ordinary shareholders for the six months ended September 30,2022 was RMB2,178 million(US$306 million),a decrease of 96%compared to RMB50,508 million for the same period of 2021,which was p
105、rimarily attributable to the increase in net losses arising from the decrease in market prices of our equity investments in publicly-traded companies and a decrease in share of results of equity method investees.Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/shareDiluted earnin
106、gs per ADS for the six months ended September 30,2022 was RMB0.82(US$0.12)on a weighted average of 21,329 million diluted shares outstanding during the period,a decrease of 96%compared to RMB18.44 on a weighted average of 21,916 million diluted shares outstanding during the same period in 2021.Exclu
107、ding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment of investments and certain other items,non-GAAP diluted earnings per ADS for the six months ended September 30,2022 was RMB24.64(US$3.46),a decrease of 11%compared to RMB27.84 for the same period of
108、 2021.Diluted earnings per share for the six months ended September 30,2022 was RMB0.10(US$0.01 or HK$0.11),a decrease of 96%compared to RMB2.30 for the same period of 2021.Excluding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment of investments and c
109、ertain other items,non-GAAP diluted earnings per share for the six months ended September 30,2022 was RMB3.08(US$0.43 or HK$3.41),a decrease of 11%,compared to RMB3.48 for the same period of 2021.A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is include
110、d at the end of this Interim Report.Each ADS represents eight ordinary shares.17Cash and cash equivalents,short-term investments and other treasury investmentsAs of September 30,2022,cash and cash equivalents,short-term investments and other treasury investments included in equity securities and oth
111、er investments on the consolidated balance sheets,were RMB484,877 million(US$68,163 million),compared to RMB446,412 million as of March 31,2022.Other treasury investments consist of fixed deposits with original maturities over one year.The increase in cash and cash equivalents,short-term investments
112、 and other treasury investments during the six months ended September 30,2022 was primarily due to free cash flow generated from operations of RMB57,882 million(US$8,137 million)and effect of exchange rate changes of RMB19,588 million(US$2,754 million)mainly due to the appreciation of the U.S.dollar
113、 against Renminbi,partly offset by cash used in repurchase of ordinary shares of RMB37,680 million(US$5,297 million)and net cash used in investment and acquisition activities of RMB4,208 million(US$592 million).Net cash from operating activities and free cash flowNet cash provided by operating activ
114、ities for the six months ended September 30,2022 was RMB80,981 million(US$11,384 million),an increase of 17%compared to RMB69,433 million for the same period of 2021.Free cash flow,a non-GAAP measurement of liquidity,for the six months ended September 30,2022 increased by 35%to RMB57,882 million(US$
115、8,137 million),from RMB42,922 million for the same period of 2021,during which we made a partial payment in the amount of RMB9,114 million of the RMB18,228 million anti-monopoly fine.The year-over-year increase also reflected dividend received from Ant Group of RMB3,945 million(US$555 million)in the
116、 six months ended September 30,2022.A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this Interim Report.Net cash used in investing activitiesFor the six months ended September 30,2022,net cash used in investing activities of RMB35,755 million
117、(US$5,026 million)primarily reflected(i)capital expenditures of RMB23,955 million(US$3,368 million),(ii)cash outflow of RMB10,586 million(US$1,488 million)for investment and acquisition activities,as well as(iii)an increase in other treasury investments by RMB8,000 million(US$1,125 million).These ca
118、sh outflows were partly offset by cash inflow of RMB6,378 million(US$896 million)from disposal of investments.Net cash used in financing activitiesFor the six months ended September 30,2022,net cash used in financing activities of RMB32,492 million(US$4,568 million)primarily reflected cash used in r
119、epurchase of ordinary shares of RMB37,680 million(US$5,297 million).EmployeesAs of September 30,2022,we had a total of 243,903 employees,compared to 254,941 as of March 31,2022.18SAFE HARBOR STATEMENTSThis Interim Report contains forward-looking statements.These statements are made under the“safe ha
120、rbor”provisions of the U.S.Private Securities Litigation Reform Act of 1995.These forward-looking statements can be identified by terminology such as“may,”“will,”“expect,”“anticipate,”“future,”“aim,”“estimate,”“intend,”“seek,”“plan,”“believe,”“potential,”“continue,”“ongoing,”“target,”“guidance,”“is/
121、are likely to”and similar statements.In addition,statements that are not historical facts,including statements about Alibabas business outlook,strategies and business plans,Alibabas beliefs,expectations and guidance regarding the growth of its business and its revenue,as well as Alibabas strategic a
122、nd operational plans,are or contain forward-looking statements.Alibaba may also make forward-looking statements in its periodic reports to the U.S.Securities and Exchange Commission(the“SEC”),in announcements made on the website of the Hong Kong Stock Exchange,in press releases and other written mat
123、erials and in oral statements made by its officers,directors or employees to third parties.Forward-looking statements involve inherent risks and uncertainties.A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not l
124、imited to the following:Alibabas ability to maintain the trusted status of its ecosystem;risks associated with sustained investments in Alibabas business,strategic acquisitions and investments;Alibabas ability to maintain or grow its revenue or business;Alibabas ability to continue to compete effect
125、ively and maintain and improve the network effects of its ecosystem;company culture;Alibabas ability to continue to innovate;risks and challenges associated with operating a complex and large-scale company;risks associated with our acquisitions,investments and alliances;risks associated with expandi
126、ng our international and cross-border businesses and operations;uncertainties arising from competition among countries and geopolitical tensions,including protectionist or national security policies;changes in laws,regulations and regulatory environment that affect Alibabas business operations(inclu
127、ding in the areas of anti-monopoly and unfair competition);risks associated with the performance and regulatory environment of our business partners,including but not limited to Ant Group;privacy and data protection regulations and concerns;security breaches;fluctuations in general economic and busi
128、ness conditions in China and globally;impacts of the COVID-19 pandemic and assumptions underlying or related to any of the foregoing.Further information regarding these and other risks is included in Alibabas filings with the SEC and announcements on the website of the Hong Kong Stock Exchange.All i
129、nformation provided in this Interim Report is as of the date of this Interim Report and are based on assumptions that we believe to be reasonable as of this date,and Alibaba does not undertake any obligation to update any forward-looking statement,except as required under applicable law.NON-GAAP FIN
130、ANCIAL MEASURESTo supplement our consolidated financial statements,which are prepared and presented in accordance with GAAP,we use the following non-GAAP financial measures:for our consolidated results,adjusted EBITDA(including adjusted EBITDA margin),adjusted EBITA(including adjusted EBITA margin),
131、non-GAAP net income,non-GAAP diluted earnings per share/ADS and free cash flow.For more information on these non-GAAP financial measures,please refer to the section entitled“Information by Segments”and the table captioned“Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S.GAAP Measur
132、es”in this Interim Report.19We believe that adjusted EBITDA,adjusted EBITA,non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from oper
133、ations,net income and diluted earnings per share/ADS.We believe that these non-GAAP measures provide useful information about our core operating results,enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by
134、 our management in its financial and operational decision-making.We present three different income measures,namely adjusted EBITDA,adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.We consider free cash flow
135、to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions,including investing in our new business initiatives,making strategic investments and acquisitions and streng
136、thening our balance sheet.Adjusted EBITDA,adjusted EBITA,non-GAAP net income,non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations,net income,diluted earnings per share/ADS,cash flows or any other mea
137、sure of performance or as an indicator of our operating performance.These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S.GAAP and may not be comparable to similarly titled measures presented by other companies.Other companies may calculate similarly ti
138、tled measures differently,limiting their usefulness as comparative measures to our data.Adjusted EBITDA represents net income before(i)interest and investment income,net,interest expense,other income,net,income tax expenses and share of results of equity method investees,(ii)certain non-cash expense
139、s,consisting of share-based compensation expense,amortization of intangible assets and,depreciation and impairment of property and equipment,operating lease cost relating to land use rights,as well as equity-settled donation expense,which we do not believe are reflective of our core operating perfor
140、mance during the periods presented.Adjusted EBITA represents net income before(i)interest and investment income,net,interest expense,other income,net,income tax expenses and share of results of equity method investees,(ii)certain non-cash expenses,consisting of share-based compensation expense and a
141、mortization of intangible assets,as well as equity-settled donation expense,which we do not believe are reflective of our core operating performance during the periods presented.20Non-GAAP net income represents net income before share-based compensation expense,amortization of intangible assets,impa
142、irment of investments,gain or loss on deemed disposals/disposals/revaluation of investments,equity-settled donation expense and others,as adjusted for the tax effects.Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted aver
143、age number of shares for computing non-GAAP diluted earnings per share,on a diluted basis.Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.Free cash flow represents net cash provided by operating activities as presen
144、ted in our consolidated cash flow statement less purchases of property and equipment(excluding acquisition of land use rights and construction in progress relating to office campuses)and intangible assets(excluding those acquired through acquisitions),as well as adjustments to exclude from net cash
145、provided by operating activities the consumer protection fund deposits from merchants on our marketplaces.We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations.We exclude“acquisition of
146、land use rights and construction in progress relating to office campuses”because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations.We also exclude consumer protection fund deposits from merchants on
147、 our marketplaces because these deposits are restricted for the purpose of compensating consumers for claims against merchants.The section entitled“Information by Segments”and the table captioned“Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S.GAAP Measures”in this Interim Report
148、have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures.21ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED INCOME STATEMENTSSix months ended September 30,20212022RMBRMBUS$(in
149、 millions,except per share data)Revenue406,430412,73158,021Cost of revenue(253,847)(260,867)(36,672)Product development expenses(28,816)(29,343)(4,125)Sales and marketing expenses(55,893)(47,937)(6,740)General and administrative expenses(16,042)(19,024)(2,674)Amortization of intangible assets(5,979)
150、(5,480)(770)Income from operations45,85350,0807,040Interest and investment income,net2,645(37,083)(5,213)Interest expense(2,534)(2,632)(370)Other income,net3,8203,053429Income before income tax and share of results of equity method investees49,78413,4181,886Income tax expenses(15,183)(7,971)(1,120)S
151、hare of results of equity method investees11,611(7,616)(1,071)Net income(loss)46,212(2,169)(305)Net loss attributable to noncontrolling interests4,3444,395618Net income attributable to Alibaba Group Holding Limited50,5562,226313Accretion of mezzanine equity(48)(48)(7)Net income attributable to ordin
152、ary shareholders50,5082,178306Earnings per share attributable to ordinary shareholders(1)Basic2.330.100.01Diluted2.300.100.01Earnings per ADS attributable to ordinary shareholders(1)Basic18.660.820.12Diluted18.440.820.12Weighted average number of shares used in calculating earnings per ordinary shar
153、e(million shares)(1)Basic21,65821,231Diluted21,91621,329(1)Each ADS represents eight ordinary shares.22ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETSAs of March 31,As of September 30,20222022RMBRMBUS$(in millions)AssetsCurrent assets:Cash and cash equivalents189,898206,71129,059
154、Short-term investments256,514270,16637,979 Restricted cash and escrow receivables37,45540,1395,643 Equity securities and other investments8,67310,2331,439 Prepayments,receivables and other assets145,995150,46021,151Total current assets638,535677,70995,271Equity securities and other investments223,61
155、1198,19727,862Prepayments,receivables and other assets113,147111,65815,697Investment in equity method investees219,642219,96430,922Property and equipment,net171,806179,56725,243Intangible assets,net59,23154,4317,652Goodwill269,581271,01838,099Total assets1,695,5531,712,544240,746Liabilities,mezzanin
156、e equity and shareholders equityCurrent liabilities:Current bank borrowings8,8416,619930 Current unsecured senior notes4,983701 Income tax payable21,75316,7582,356 Accrued expenses,accounts payable and other liabilities271,460271,86338,218 Merchant deposits14,74713,5301,902 Deferred revenue and cust
157、omer advances66,98369,1089,715Total current liabilities383,784382,86153,82223ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETS(CONTINUED)As of March 31,As of September 30,20222022RMBRMBUS$(in millions)Deferred revenue3,4903,490490Deferred tax liabilities61,70662,3298,762Non-current
158、bank borrowings38,24449,0466,895Non-current unsecured senior notes94,259100,79214,169Other liabilities31,87731,5544,436Total liabilities613,360630,07288,574Commitments and contingenciesMezzanine equity9,6559,7201,367Shareholders equity:Ordinary shares11 Additional paid-in capital410,506411,04557,784
159、 Treasury shares,at cost(2,221)(14,828)(2,085)Subscription receivables(46)(51)(7)Statutory reserves9,83910,7601,513 Accumulated other comprehensive loss(33,157)(5,312)(747)Retained earnings563,557546,32276,801Total shareholders equity948,479947,937133,259Noncontrolling interests124,059124,81517,546T
160、otal equity1,072,5381,072,752150,805Total liabilities,mezzanine equity and equity1,695,5531,712,544240,74624ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSSix months ended September 30,20212022RMBRMBUS$(in millions)Net cash provided by operating activities69,43
161、380,98111,384Net cash used in investing activities(77,548)(35,755)(5,026)Net cash used in financing activities(35,138)(32,492)(4,568)Effect of exchange rate changes on cash and cash equivalents,restricted cash and escrow receivables(1,997)6,763951(Decrease)Increase in cash and cash equivalents,restr
162、icted cash and escrow receivables(45,250)19,4972,741Cash and cash equivalents,restricted cash and escrow receivables at beginning of period356,469227,35331,961Cash and cash equivalents,restricted cash and escrow receivables at end of period311,219246,85034,70225ALIBABA GROUP HOLDING LIMITEDRECONCILI
163、ATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURESThe table below sets forth a reconciliation of our net income(loss)to adjusted EBITA and adjusted EBITDA for the periods indicated:Six months ended September 30,20212022RMBRMBUS$(in millions)Net income(loss)46,212(2,169)(305)Adju
164、stments to reconcile net income(loss)to adjusted EBITA and adjusted EBITDA:Interest and investment income,net(2,645)37,0835,213 Interest expense2,5342,632370 Other income,net(3,820)(3,053)(429)Income tax expenses15,1837,9711,120 Share of results of equity method investees(11,611)7,6161,071Income fro
165、m operations45,85350,0807,040Share-based compensation expense17,93214,5122,040Amortization of intangible assets5,9795,480770Equity-settled donation expense51172Adjusted EBITA69,76470,5839,922Depreciation and impairment of property and equipment,and operating lease cost relating to land use rights13,
166、70413,8421,946Adjusted EBITDA83,46884,42511,86826ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of our net income(loss)to non-GAAP net income for the periods indicated:Six months ende
167、d September 30,20212022RMBRMBUS$(in millions)Net income(loss)46,212(2,169)(305)Adjustments to reconcile net income(loss)to non-GAAP net income:Share-based compensation expense17,93214,5122,040 Amortization of intangible assets5,9795,480770 Impairment of investments3,51713,1341,846 Loss on deemed dis
168、posals/disposals/revaluation of investments and others64936,8485,180 Equity-settled donation expense51172 Tax effects(1)(2,324)(4,244)(596)Non-GAAP net income71,96564,0729,007(1)Tax effects primarily comprises tax effects relating to share-based compensation expense,amortization of intangible assets
169、 and certain gains and losses from investments,and others.27ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share
170、/ADS for the periods indicated:Six months ended September 30,20212022RMBRMBUS$(in millions,except per share data)Net income attributable to ordinary shareholders basic50,5082,178306Dilution effect on earnings arising from option plans operated by equity method investees and subsidiaries(3)(1)Net inc
171、ome attributable to ordinary shareholders diluted50,5052,177306Non-GAAP adjustments to net income attributable to ordinary shareholders(1)25,75363,5258,930Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS76,25865,7029,236Weighted average
172、number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS(million shares)(4)21,91621,329Diluted earnings per share(2)(4)2.300.100.01Non-GAAP diluted earnings per share(3)(4)3.483.080.43Diluted earnings per ADS(2)(4)18.440.820.12Non-GAAP diluted earnings per ADS(3)(4)2
173、7.8424.643.46(1)See the table above for the reconciliation of net income(loss)to non-GAAP net income for more information of these non-GAAP adjustments.(2)Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of shares,on
174、a diluted basis.Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.(3)Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of shar
175、es for computing non-GAAP diluted earnings per share,on a diluted basis.Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.(4)Each ADS represents eight ordinary shares.28ALIBABA GROUP HOLDING LIMITEDRECONCILIA
176、TIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:Six months ended September 30,20212022RMBRMBUS$(in millions)Net cash provided by opera
177、ting activities69,43380,98111,384Less:Purchase of property and equipment(excluding land use rights and construction in progress relating to office campuses)(23,574)(22,067)(3,102)Less:Purchase of intangible assets(excluding those acquired through acquisitions)(15)(22)(3)Less:Changes in the consumer protection fund deposits(2,922)(1,010)(142)Free cash flow42,92257,8828,137