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1、Alibaba Group Holding LimitedFiscal Year 2023 Annual ReportAlibaba Group Holding Limited NYSE:BABAHKEX:9988(HKD Counter)89988(RMB Counter)Alibaba Group Holding LimitedFiscal Year Annual Report202300E_ALBB006_Cover_AW.indd 1,300E_ALBB006_Cover_AW.indd 1,328/8/2023 下午3:5428/8/2023 下午3:54E Alibaba 0000
2、 1 1 1 0 0 1 1 0 0 0000 0110 1 110 Q10 10 0000 01 0 0111.00 110 0110 1010 01 01 1 110 V IC 01 11 100 01 1 0 101 011 1 0 7 00 1 1 0110010101.0 0007 1 1101 01 11 100 001 -1010 438474(Alibaba AR_Eng)(210 x285)01.Contents 10/08/2023 M05 IFC438474(Alibaba AR_Eng)(210 x285)01.Contents 10/08/2023 M05 P.101
3、0001Drive Progress through Transformation for Our FutureContents2 Our Mission3 Our Vision5 Our Values6 Our Vibrant Culture and People8 Key Events in Fiscal Year 202310 Letter from our Chairman and CEO15 Business Overview95 Management
4、Discussion and Analysis149 Directors,Senior Management and Employees169 Major Shareholders and Related Party Transactions185 Other Information for Shareholders199 Exemptions and Waivers201 Risk Factors265 Definitions273 Financial Statements364 Further Information DAMO ALIBABA DAMD ACADEMY?APP Lazada
5、?Allbaba Pictures?TMALL MART?trendyol v?Ding Talk?TMALL GENIE SUN ART Retail Group Limited FRESHIPPO Daraz Fuggy Damai Alibaba Health?Quark?1688 EL?8UC A 22Alibaba Group Holding LimitedBusiness OverviewOur StrategiesIn an increasingly complex world,digital adoption and transformation of our customer
6、s are accelerating across different industries.On the consumer retail side,online shopping is no longer simply a purchase behavior for more consumers but has also become a necessary rather than an optional channel of sales to brick-and mortar retailers.For enterprises and organizations,digital trans
7、formation is accelerating as technology changes the way people live and work.Recently,generative AI,an innovative technology product enabled by large language models,or LLMs,excited the world with possibilities of elevating productivity and efficiency to a new level,and further accelerating the digi
8、tal transformation of enterprises and organizations.We believe such transformation presents tremendous opportunities and requires us to be more focused,innovative and agile in establishing our strategic capabilities and priorities.To this aim,we are proactively transforming our organization through
9、a new organizational and governance structure to strengthen the competitiveness of our businesses through greater independence and further unlock value for our shareholders.We believe our new structure will empower all of our businesses to become more agile and nimble in decision making,responding t
10、o market changes and promoting innovations.With our environmental,social and governance responsibilities as the foundation of our long-term strategy,we strive to strengthen our leadership and build core capabilities in three strategic areas:consumption,cloud,and globalization.ConsumptionConsumption
11、continues to present significant opportunities in China and globally.In China,while we believe that our annual active consumer base already captures the vast majority of Internet users with meaningful consumption power,there remains significant opportunities for us in wallet share expansion.We aim t
12、o capture these opportunities by providing differentiated value services to our customers with different consuming power,needs and mindset.We offer a multi-dimensional matrix of consumer apps with clearly differentiated value propositions that aim to meet the various consumer demands across metropol
13、itan and less-developed regions,differing time sensitivities,and different income levels and consumption models.We will continue to enhance and enrich our portfolio of consumer apps,and enable new consumption models and formats to better serve the evolving needs of consumers.We are also further stre
14、ngthening our supply chain capabilities,including through direct sales model and integrated online and offline solutions,to strengthen the competitiveness of our products and services and enhance our penetration in categories that are essential to our consumers daily lives.In addition,to enhance the
15、 positioning of our Taobao app,Chinas largest digital retail platform,from a transaction-focused marketplace to a consumer destination for discovery and shopping,we continue to focus on creating personalized,immersive and interactive experience through relevant and highly engaging consumption-relate
16、d content and our apps rich interfaces and features.We are also actively exploring new consumption models,formats and technologies to create better shopping experience for our users.Over the years,we have established a comprehensive infrastructure for digital commerce with diversified fulfillment mo
17、dels.Through Cainiao,we aim to establish a hybrid delivery network covering intracity,intercity and supply chain services.We are building instant delivery and same-city express delivery capabilities in key cities in China to fulfill a reliable neighborhood shopping experience.We are also investing t
18、o establish a nationwide express delivery network with cold-chain,bulky and large appliance delivery capabilities to provide merchants with comprehensive delivery options in key categories such as fresh produce,FMCG and electronics.We will continue to invest in these capabilities to enhance our core
19、 competitiveness and value creation to our merchants and consumers,achieving sustainable and high-quality growth.We will discuss the consumption opportunity outside of China under the globalization strategy.23Fiscal Year 2023 Annual ReportBusiness OverviewCloudWe believe that digitalization presents
20、 the biggest opportunity of our time,and cloud computing plays a fundamental role in the digital transformation across various industries.Cloud is rapidly replacing traditional IT infrastructure with much higher efficiency at lower cost.It enables traditionally unstructured,undiscovered and underuti
21、lized data to be captured,activated and harnessed as a new source of intelligence to help businesses make decisions,improve operating efficiency and grow.With the onset of generative AI,digital transformation of enterprises and organizations will further accelerate to achieve higher level of operati
22、ng efficiency and business growth.In order to capture the tremendous opportunities of enterprise digitalization,we will continue to strengthen our market leadership as a global cloud service provider,and focus on high-quality growth through improving operating efficiency,enhancing core products and
23、technologies,investing in innovative technology and products to empower next-generation entrepreneurs and advancing our Cloud-DingTalk integration strategy.We strive to empower our customers and ecosystem partners with powerful digital infrastructure to support the growth of their businesses.We will
24、 continue to work with industry partners to develop vertical-specific solutions to facilitate digital transformation of various industries.Our strategic initiative to integrate DingTalk with Alibaba Cloud has enabled enterprise customers to digitalize their organization and business collaboration th
25、rough DingTalks open platform,with data generated and accumulated to cloud.We will continue to expand the user base of DingTalks core applications and strengthen its open-platform ecosystem of industry solutions to enable further digitalization of business operations within and across organizations.
26、We will also cultivate new business opportunities in industrial digitalization and next-generation Internet through investments in cloud-based industry solutions and frontier technologies.GlobalizationDespite the uncertainties and complexities in the global macro environment,we remain firmly committ
27、ed to our globalization strategy.We will take full advantage of the vast opportunities in the global market to serve customers in and outside of China.Our globalization strategy has two components:globalization of consumption and globalization of cloud.Both of these can only be sustained with the su
28、pport of local ecosystems of consumption and technology.We strive to make diversified offerings available to our users worldwide by empowering our local merchants and partners,supported by our supply chain advantages in China and cross-border capabilities.Stemming from Southeast Asia,we strive to se
29、rve consumers and merchants around the world through both localized and cross-border offerings.We will continue to develop our local and cross-border retail commerce in key strategic markets,such as Southeast Asia and Europe,while exploring business model innovations.To support the globalization ini
30、tiatives of our commerce businesses,we plan to continue developing critical international infrastructure and capabilities,including logistics and payment,in order to drive differentiated and superior experience for our users in key strategic markets.In addition,as the largest IaaS service provider i
31、n Asia Pacific,we continue to expand our international cloud infrastructure and strengthen local cloud service capabilities,especially in Southeast Asia.We have set up data centers in 28 regions globally,including Singapore,Indonesia,Malaysia,the Philippines and Thailand,among others.We aim to empow
32、er local customers with our strong cloud capabilities,customized vertical-specific solutions and localized services to better serve industrial digitalization demands globally.We also strive to work with our local partners to build up ecosystems of cloud computing,further driving the digital transfor
33、mation across various industries.Environmental,Social and Governance ResponsibilitiesESG,as the foundation of our long-term strategy,not only provides a framework for solving a series of global challenges,but also serves as the bridge to carry Alibaba to 102 years.We believe we can only create and s
34、ustain a profitable and prosperous business by bringing positive change to the society.We are committed to assuming greater responsibility while pursuing business excellence as the operator of a platform economy.See“Environmental,Social and Governance(ESG).”124 million+AACs spent overRMB10,000(1)24A
35、libaba Group Holding LimitedBusiness OverviewOur BusinessesChina CommerceChina Commerce RetailWe operate the largest retail commerce business in the world in terms of GMV in the twelve months ended March 31,2023,according to Analysys.Our retail commerce businesses in China,primarily consisting of Ta
36、obao,Tmall and our various direct sales businesses which offer upgraded consumer experiences with integrated online and offline capabilities,have become an important part of the everyday lives of consumers in China.Empowered by our commerce technologies and services,we appeal to a massive base of co
37、nsumers by connecting them with diversified and comprehensive offerings in highly engaging and social formats.Consumers.We serve a large and diversified consumer base in China,across both large cities and less-developed areas.We believe our platforms continue to appeal to consumers at various income
38、 levels and address their evolving consumption needs.For example,Taobao Deals offers consumers value-for-money products and Taocaicai provides consumers with next-day pick-up services for a wide range of groceries and fresh goods at neighborhood pick-up points.In addition,our ability to offer and de
39、liver value has driven increased consumer engagement over time.Generally,the longer consumers have been with us,the more orders they tend to place across a more diverse range of product categories.Consumers on Taobao and Tmall continue to exhibit high retention.In fiscal year 2023,there were more th
40、an 124 million annual active consumers who each spent more than RMB10,000 on purchasing physical goods on Taobao and Tmall.For fiscal year 2023,the retention rate of annual active consumers who each spent over RMB10,000 on purchasing physical goods on Taobao and Tmall in the prior fiscal year stayed
41、 at a similar level compared to that of fiscal year 2022.Products and Services.We believe our ecosystem offers the most comprehensive range of products and services among global commerce platforms to meet the diverse demands of our massive and diversified consumer base across different segments.We h
42、ave developed a digital commerce infrastructure that offers an upgraded consumer experience by seamlessly integrating online and offline capabilities for our marketplaces and direct sales businesses.Note:(1)In fiscal year 2023,there were more than 124 million annual active consumers who each spent m
43、ore than RMB10,000 on purchasing physical goods on Taobao and Tmall.0100 .1 0 1 1 0 101 1 25Fiscal Year 2023 Annual ReportBusiness OverviewConsumers can enjoy a broad variety of quality products at different price levels with a wide selection of delivery options that satisfy their varying needs.The
44、core capabilities that form the critical foundation of our digital commerce infrastructure include the following:Product and supply chain capabilities.We believe our ecosystem provides the most comprehensive product and service offerings.Our platforms,through collaboration with our merchants and eco
45、system partners,offer products ranging from branded products and imported goods to products sourced directly from manufacturers and farms and to other long-tail products.For example,consumers may look for branded products,including luxury brands,trendy fashion brands and new brands,on Tmall,and impo
46、rted products from around the world on Tmall Global.Taobao Deals enables manufacturers and merchants to sell directly to consumers to meet their needs for value-for-money products.In fiscal year 2023,paid GMV of manufacturer-to-consumer products grew more than 40%.Taocaicai satisfies consumers needs
47、 for quality and affordable groceries and fresh goods with its next-day pick-up services.Xianyu,our consumer-to-consumer community and marketplace in China,enables consumers to find a wide variety of idle goods,recycled goods,consignment,items for rent,and other long-tail products.In addition,we con
48、tinue to expand our proprietary supply chain through our direct sales businesses to further enhance our product supply and service capabilities.For example,we leverage Sun Arts,Freshippos and their retail partners supply chain networks to provide greater selection of fresh goods and FMCG.We also con
49、tinue to go upstream to source agricultural products directly to enhance our product selection as well as provide more local and seasonal specialties to our consumers.These extensive supply chain networks and our in-house sourcing capabilities enable us to further penetrate into various verticals.Xi
50、anyu enables consumers in China to find a wide variety of idle goods,recycled goods,consignment,items for rent,and other long-tail products.?Q 0=?2?#Ill iPhone 12 Pro .?4899 L?618?GO?26Alibaba Group Holding LimitedBusiness Overview Fulfillment and delivery expertise.We have developed logistics exper
51、tise and capabilities that allow us to offer a full range of high-frequency fulfillment services to satisfy consumer demand.Our comprehensive delivery options include on-demand delivery,half-day delivery,same-or-next-day delivery and next-day pick-up services,which capture the varying needs of consu
52、mers living in large cities and less-developed areas.For example,Freshippos proprietary fulfillment system enables 30-minute store-to-door delivery for consumers living within a three-kilometer radius of a Freshippo Supermarket store;we provide groceries and fresh goods to consumers with Taocaicais
53、next-day pick-up services;and Tmall Supermarket offers daily necessities,FMCG and general merchandise through Taobao app with same-or-next-day delivery services.Engagement.The massive amount of user and merchant activities taking place every day on our China commerce platforms generate significant c
54、onsumer insights.By leveraging proprietary AI and data technologies,we are able to aggregate and build on deep consumer insights to provide more accurate search results and relevant recommendation feeds that enhance the shopping experience for our consumers.Our various commerce platforms also enable
55、 merchants to engage with consumers through a variety of formats,including livestreaming,short-form videos,interactive games and microblogs.We continue to introduce interactive features and innovative formats to facilitate user engagement with brands,merchants and content creators.Along with these f
56、eatures and formats,our relevant and engaging entertainment content plays an important role in consumers product discovery process and shopping journey by providing an immersive and personalized shopping experience,and driving user stickiness and retention on our various platforms.Chao Xiong,a Taoba
57、o store owner born after 1995 who studied fashion design,believes that driving trends with tradition can go a long way.Therefore,she taught herself the traditional soling technique of handmade cloth shoes and started her own business.She was inspired by lion dance teams that did performance tours in
58、 the villages every Chinese New Year,so she came up with the idea of sewing dancing lion patterns on the shoes as her signature product.Chao Xiong joined the Taobao craftsmanship initiative with fellow detailed-focused craftspeople,and together,they spearhead a fashionable trend of“recreating tradit
59、ion,”which reinterprets traditional culture through creativity and focus among young entrepreneurs.Generation Z Taobao entrepreneur reinterprets the traditional culture of handmade cloth shoes with new ideas#Creating Possibilities#InnovationChinas largest digital retail platform(1)“I joined the Taob
60、ao craftsmanship initiative and recreated our tradition with my peers.I believe driving trends with tradition can go a long way.”Chao XiongOwner,Guguangaoya Cloth ShoesNote:(1)In terms of GMV for the twelve months ended March 31,2023,according to Analysys.27Fiscal Year 2023 Annual Report110 1 010000
61、 .1 .0110 10 0 0 0 01?Taobao Symrise AG,a German fragrance company with over 220 years of history,collaborated with Tmall Innovation Centre(TMIC)s industrial innovation lab named TLAB to explore the market potential of unisex fragrances through market analysis,brand positioning,trend insights,raw in
62、gredients R&D,and new product launch and incubation.They jointly launched Symrises first unisex fragrance brand,UNTAGGED,a free,label-free,and gender-neutral concept designed to appeal to its targeted audience.The company not only pioneered a brand new fragrance trend in the China market,it also has
63、 successfully built a brand that offers a unique value proposition.German fragrance company leverages TMICs consumer insights to launch its first unisex fragrance brand#Creating Possibilities#Quality Life“Leveraging TMICs unique insights,together with our professionalism and years of experience in f
64、ragrance development,we create a new fragrance-based trend that explores a new direction in fragrance product development.”Jeff YaoNortheast Asia Vice President,Symrise AGThe worlds largest third-party online and mobile commerce platform for brands and retailers(1)Note:(1)In terms of GMV for the twe
65、lve months ended March 31,2023,according to Analysys.28Alibaba Group Holding LimitedUnTAGGED 0110 1:1 01000 OxO 1 .011 TMALL?29Fiscal Year 2023 Annual ReportBusiness OverviewTaobaoTaobao means“search for treasure”in Chinese.Taobao serves as the starting point and destination portal for many users sh
66、opping journey.Consumers from both large cities and less-developed areas come to Taobao to enjoy an engaging and personalized shopping experience,optimized by our data analytics and technology.Through highly relevant content,engaging and interactive formats and real-time updates from merchants,consu
67、mers can learn about products and new trends.They can also interact with each other and their favorite merchants and KOLs through a broad range of interactive features such as livestreaming and short-form videos.Taobao is Chinas largest digital retail platform,in terms of GMV for the twelve months e
68、nded March 31,2023,according to Analysys.Taobao provides a top-level traffic funnel that directs users to the various marketplaces,channels and features within our ecosystem.For example,a search result on Taobao displays listings not only from Taobao merchants but also from Tmall merchants and brand
69、s,thereby generating traffic for Tmall.Through Taobao,consumers can also find long-tail products on Xianyu,our consumer-to-consumer community and marketplace in China,as well as other products and consumer services,which may also be accessed through their respective independent mobile apps.Merchants
70、 on Taobao are primarily individuals and small businesses.Merchants can create storefronts and listings on Taobao free of charge.The escrow payment services provided by Alipay are free of charge to consumers and merchants unless payment is funded through a credit product such as a credit card,in whi
71、ch case Alipay charges a fee to the merchant based on the related bank fees charged to Alipay.Taobao merchants can purchase P4P,in-feed marketing and display marketing services to direct traffic to their storefronts.In addition,merchants can acquire additional traffic from third-party marketing affi
72、liates.Taobao merchants can also pay for advanced storefront software that helps upgrade,decorate and manage their online storefronts.TmallTmall caters to consumers ever-growing demand for high-quality products and premium shopping experience.A large number of international and Chinese brands and re
73、tailers have established storefronts on Tmall.We have positioned Tmall as a trusted platform for consumers in China and overseas to buy both homegrown and international-branded products as well as products not available in traditional retail outlets.As the brands and offerings on Tmall continue to g
74、row and diversify,we continue to improve our ability to accurately target and meet different consumer demands.In the twelve months ended March 31,2023,Tmall is the largest third-party online and mobile commerce platform for brands and retailers in the world in terms of GMV,according to Analysys.Tmal
75、l is the partner of choice for brands.Brands and retailers operate their own storefronts on Tmall with unique brand identities and look and feel,accompanied by full control over their own branding and merchandising.Because of the presence of a large number of brands and the stringent standards requi
76、red for merchants,brands and retailers to join and operate on Tmall,a presence on Tmall has become a validation of quality,allowing merchants,brands and retailers to take advantage of our significant traffic to extend and build brand awareness and customer engagement.Major international brands that
77、have physical operations in China are well represented on Tmall.Brands and retailers turn to Tmall not only for its broad user base,but also for its consumer insights and technology.Tmall has driven the digitalization and transformation of brands and retailers by enabling them to digitalize their op
78、erations,engage,acquire and retain consumers,increase brand recognition,innovate product offerings,manage supply chains and enhance operating efficiency.In particular,Tmall offers a variety of one-stop brand marketing and promotional products to help brands and retailers quickly acquire new users,en
79、hance brand awareness and launch new products.We also continue to position Tmall as the premier shopping destination for everyday items,highlighting value and convenience.Consumer electronics,apparel and accessories,and FMCG are among Tmalls most popular product categories.We have 30Alibaba Group Ho
80、lding LimitedBusiness Overviewalso strengthened consumer recognition of Tmalls value proposition in consumer electronics and home appliances through promotional events and strategic partnerships.Like merchants on Taobao,brands and merchants on Tmall have access to P4P,in-feed marketing and display m
81、arketing services as well as storefront software,which they can use to fully engineer,customize,and even code the software behind their storefronts.Taobao DealsTaobao Deals offers value-for-money products by enabling merchants and manufacturers to sell directly to consumers,including those in less-d
82、eveloped areas and large cities.Taobao Deals has enriched product supply capabilities to optimize logistics costs and improve delivery experience for consumers,and enhanced digital consumption experience for price sensitive consumers.During fiscal year 2023,Taobao Deals continued to enrich product s
83、upply and the paid GMV of products sold directly from manufacturers to consumers on Taobao Deals grew over 40%year-over-year.TaocaicaiTaocaicai is our community marketplace that offers consumers next-day pick-up services for daily consumer groceries and fresh goods at neighborhood pick-up points.Lev
84、eraging the strong product and supply chain capabilities of Sun Art,Taobao Deals and Lingshoutong,Taocaicai provides consumers with a broad selection of quality groceries and fresh produce at competitive prices.In fiscal year 2023,Taocaicai has rapidly established solid market presence in regions th
85、at have large population with meaningful consumption power,generating strong GMV growth.At the same time,Taocaicais unit economics per order has continued to improve,benefitting from higher regional order density,and improving gross margin from enhanced supply chain capabilities.Tmall SupermarketTma
86、ll Supermarket offers daily necessities,FMCG and general merchandise through Taobao app with same-or-next-day delivery services.By leveraging our technology capabilities and consumer insights,Tmall Supermarket facilitates the digital transformation of its offline partners,enhancing their supply chai
87、n management capabilities.Taobao Maker Festival champions creativity and entrepreneurship by giving visitors a fun and interactive way to explore products from Taobaos innovative storefronts.?1.2022 ATTTT WARNING WARNING +1 2022 Spanish anti-aging brand explores Chinese consumer market through Tmall
88、 Global180 The Concept,a Spanish beauty and wellness brand focusing on nutrition and anti-aging,has transformed its brand by leveraging Tmall Globals new brand incubation program.It became more attuned to the preferences of the new generation of Chinese consumers and its products have been well rece
89、ived.Tmall Global provided marketing,new trend incubation,and cross-border supply chain support that helped the company overcome development challenges as a new brand entering China as part of Tmall Globals new brands,new categories,and new products incubation initiative.This enabled the brand to ac
90、hieve efficient and high-quality development by fulfilling the needs of Chinese consumers.“180 The Concept values the feedback from our Chinese customers,and we hope to use this insight as the basis for future product development to meet the demand of more consumers.”Gema Cabanero,Founder,180 The Co
91、nceptA leading import e-commerce platform in China#Creating Possibilities#Quality Life 31Fiscal Year 2023 Annual Report0010 0 1 TMALL GLOBAL?32Alibaba Group Holding LimitedBusiness OverviewTmall GlobalTmall Global addresses increasing demand of consumers in China for international products and brand
92、s.Tmall Global serves as the premier platform through which overseas brands and retailers reach consumers in China,build brand awareness and gain valuable consumer insights to form their overall China strategies,without the need for physical operations in China.We believe Tmall Global is a leading i
93、mport e-commerce platform in China.Digital Healthcare and Pharmaceutical E-commerceAlibaba Health is our flagship vehicle that offers one-stop solutions to consumers through integrating online and offline resources of the pharmaceutical and healthcare industries.We prioritize the needs of the custom
94、ers through leveraging the strength of the existing pharmaceutical e-commerce business along with exploring innovative business models of Internet healthcare services.FreshippoFreshippo,our new retail platform for groceries and fresh goods,seamlessly integrates the online and offline retail experien
95、ces,providing consumers with a new shopping experience.Consumers visit over 300 Freshippo Supermarket stores for the touch and feel of quality fresh goods,join tasting events for new products,and shop for private label or exclusive products that are not available elsewhere or simply spend time with
96、family.Many of Freshippos consumers also place orders online and have fresh goods delivered to door as quickly as within 30 minutes.In fiscal year 2023,online transactions contributed more than 65%of Freshippos GMV.The creation of a new shopping experience is attributable to Freshippos significant r
97、etail expertise,including supply chain management,proprietary technology,and robust multi-layer and multi-temperature logistics and fulfillment infrastructure,all specifically designed for Freshippos offerings.Freshippo demonstrates scalability and sustainability with Freshippos overall GMV reaching
98、 over RMB55 billion(US$8.0 billion)in fiscal year 2023.More than 90%of self-operated Freshippo Supermarket stores that have been operating more than one year achieved positive cashflow during the same period.Sun ArtSun Art,a leading retailer in China with multi-formats and omni-channels,continues to
99、 focus on target customers,and create diversified shopping scenarios,and endeavor to improve online and offline shopping experience.Sun Art continues to meet consumers needs for offline shopping and home delivery service,thereby creating opportunities for revenue growth,through store remodeling and
100、digitalization and building commodity power and fresh produce supply chain capability.33Fiscal Year 2023 Annual ReportBusiness OverviewConsumers visit Freshippos offline stores to touch and feel quality fresh goods,to join tasting events for new products,to shop for private label or exclusive produc
101、ts that are not available elsewhere or to spend time with family.Notes:(1)In fiscal year 2023,online transactions contributed more than 65%of Freshippos GMV.(2)In fiscal year 2023,more than 90%of self-operated Freshippo Supermarket stores operating more than one year achieved positive cashflow.of se
102、lf-operated Freshippo Supermarket stores achieved positive cashflow(2)90%Over 65%of GMV contributed by online transactions(1)More than?X 1 0 10 0 0 010000 1 0110 1.1 Alibaba and the second-generation of yellow peach farmers who studied aboard bring new business opportunities to the village by enhanc
103、ing production digitally and selling directly on FreshippoTong Niu is a young man who returned to China after studying abroad.His father develops peach orchards in Baiya Village,Fuping County,Baoding,Hebei Province.Tong Niu,who had no experience with planting,learned the process along with three cla
104、ssmates who had also returned from Australia to help his father.Tong Niu subsequently worked with Alibabas rural commissioners and Freshippos Fuping yellow peach project manager to digitally transform yellow peach cultivation in his village by introducing automatic irrigation systems and drones to w
105、ater and fertilize the peaches,and sensors to monitor the orchards in real-time.The quality of yellow peach has been standardized by applying these new technologies.The yellow peaches are now sold in Freshippo across major cities and this new source of economic activity has helped improve the villag
106、ers living quality.A new retail platform for groceries and fresh goods“By partnering with Alibabas rural commissioners and Freshippos Fuping yellow peach project manager,we are working to standardize the production of yellow peaches in the village and increase our income through technical plantation
107、.”Tong Niu,A second-generation farmer at a peach orchard in Fuping#Creating Possibilities#Digital Transformation34Alibaba Group Holding Limited10:43:07 -FOcca .0.Ti/a 2mg/kg 30.Tt:2mg/kg .Bmg/kg 13%RH 23.7?21.8%RH?:04 27.4?2022-07:15:00-00000 14%RH 24.1?22.2%RH 10000 0110 0 0 0 0 0?FRESHIPPO 35Fisca
108、l Year 2023 Annual ReportBusiness OverviewBranding and Monetization PlatformsAlimama,our proprietary monetization platformAlimama is our monetization platform.Using our proprietary technology,this platform matches the marketing demands of merchants,brands and retailers on all of the platforms in our
109、 ecosystem with the media resources on our own platforms and third-party properties,and enables us to monetize our China commerce,International commerce,Local consumer services,Cainiao,Digital media and entertainment and other businesses in our ecosystem.The platform supports P4P marketing services
110、based on keyword search rankings,in-feed marketing targeting different groups of consumers,or display marketing at fixed positions that are bid on through auctions,as well as cost per thousand impression(CPM)-based,time-based marketing formats,or individual campaigns at fixed cost,through the displa
111、y of photos,graphics,videos and livestreaming.The ranking of P4P search results on our marketplaces is based upon proprietary algorithms that take into account the bid price of keywords,the popularity and quality of an item,service or merchant,as well as customer feedback rankings of the merchant or
112、 service provider.Our in-feed and display marketing services take these factors into consideration,along with other consumer insights generated across our ecosystem,to further deliver an engaging and relevant content discovery process and shopping experience to our consumers through livestreaming,sh
113、ort-form videos,interactive games and other formats.The relevance and comprehensiveness of insights based on commercial activity and user activity in our ecosystem as well as our AI capabilities provide a unique advantage for Alimama to deliver the most relevant information to users through highly e
114、ngaging content and effective format,which in turn enables merchants to improve their efficiency.Alimama also has an affiliate marketing program that places marketing displays on third-party apps and websites,thereby enabling marketers,if they so choose,to extend their marketing and promotional reac
115、h to properties and users beyond our own platforms.Our affiliate marketing program not only provides additional traffic to our marketplaces,but also generates revenue to us.Alimama operates Taobao Ad Network and Exchange,or TANX,one of the largest real-time online bidding marketing exchanges in Chin
116、a.TANX helps publishers monetize their media inventories both on mobile apps and web properties.TANX automates the buying and selling of tens of billions of marketing impressions on a daily basis.Participants on TANX include publishers,marketers and demand-side platforms operated by agencies.Marketi
117、ng Partner of Choice for BrandsDrawing on our proprietary technology,capabilities and consumer insights,we have developed an approach that digitalizes consumer-brand relationships and enables brands to build robust relationships with consumers throughout their lifecycles in our ecosystem.We aim to h
118、elp brands reach consumers by leveraging our platforms as well as other major third-party Internet media in China.We intend to become the key partner for brand building by creating an open,inclusive and transparent platform where brands and marketing agencies can design,execute,track and optimize th
119、eir brand building activities using our consumer insights and tools.Leading Commerce Technologies and Integrated Merchant Services PlatformWe provide merchants,brands and retailers with a comprehensive suite of commerce technologies,consumer insights and innovative online and offline services throug
120、h a unified and intuitive platform,to better engage with their customers,build mindshare and optimize their operating efficiency.By leveraging the power of our ecosystem,merchants,brands and retailers on Taobao and Tmall can acquire,retain and further deepen their engagement with consumers in an eff
121、icient and effective manner,build brand awareness and deliver seamless consumer experience with our logistics and fulfillment capabilities.This enhances merchants,brands and retailers loyalty to our platforms.Our commerce technologies and merchant services include the following key components:36Alib
122、aba Group Holding LimitedBusiness OverviewEffective Consumer Engagement PlatformOur merchants,brands and retailers can leverage our proprietary technology,consumer insights,and cloud services to optimize their marketing strategies.We equip brands on our secure cloud-based platform with integrated on
123、line and offline capabilities and solutions,and provide them with access to sophisticated analytics services.These services help merchants,brands and retailers gain insights into each stage of the consumer journey and enable them to provide personalized and seamless online and offline shopping exper
124、ience that fulfills consumers evolving consumption needs.Cloud-based Smart Operation DashboardWe provide a cloud-based integrated smart operation dashboard that enables merchants,brands and retailers to digitalize their daily operations.Through our online dashboard,our merchants,brands and retailers
125、 can easily manage their storefronts and product listings,source products,process orders and payments,fulfill orders and provide customer services.Leveraging the capabilities of our third-party service providers,we also provide our merchants,brands and retailers with access to various types of busin
126、ess software,content creators,credit financing,IT services and market data analytics.In addition,our merchants,brands and retailers can access our smart operation dashboard through mobile devices to manage their business on the go.Enabled by our analytics capabilities and consumer insights,our smart
127、 operation dashboard also provides merchants with recommendations on the most effective approaches to improve their respective performance and to deliver differentiated services to their customers.China Commerce W,Chinas largest integrated domestic wholesale marketplace in 2022 by net revenue,accord
128、ing to Analysys,provides sourcing and online transaction services by connecting manufacturers and wholesale sellers to wholesale buyers in China.These manufacturers,wholesale sellers and wholesale buyers typically trade in apparel,accessories,packaging materials,office supplies,home decoration and f
129、urnishing materials,electronics and computers,among others.Sellers may purchase a China TrustPass membership for an annual subscription fee to list items on ,reach customers,provide quotations and transact on the marketplace without any additional charges.As of March 31,2023, had over 960,000 paying
130、 members.Paying members may also pay for value-added services,such as premium data analytics and upgraded storefront management tools,as well as customer management services,such as P4P marketing services from the website and app.In the twelve months ended March 31,2023,value-added services contribu
131、ted the majority of s total revenue.Thai university student leverages Lazada platform to create her own e-commerce fashion business from scratch The early stages of running a new business are always challenging due to a lack of funds and business experience.As a university student,Natnicha Rojchanas
132、om,a female entrepreneur in Thailand,started her own e-commerce business selling jeans on Lazada.Without any prior retail sales experience,she launched a store on the Lazada platform.She tried to identify local market demands by focusing on pre-orders and products that customers preferred the most.S
133、he also leveraged Lazada Sponsored Solutions to attract more traffic to her store and increase the volume of completed transactions.In addition,she participated in various sales campaigns on Lazada to create awareness and raise her brands profile among potential customers.Today,she is a success stor
134、y and continues growing her business.A leading and fast-growing e-commerce platform in Southeast Asia“Back then,I was just a university student without a job looking for a stable income.Lazadas e-commerce selling experience is such a breeze as it frees up more time for me to focus on making successf
135、ul sales.”Natnicha Rojchanasom,Owner,NIPPERISDABEST#Innovation#Creating Possibilities37Fiscal Year 2023 Annual ReportNIPPERISDABEST 11010000 1 0 1110 Lazada 38Alibaba Group Holding LimitedBusiness OverviewLazada is a leading and fast-growing e-commerce platform in Southeast Asia,providing consumers
136、with access to a broad range of offerings from local SMEs,and regional and global brands.International CommerceInternational Commerce RetailIn the twelve months ended March 31,2023,Lazada,AliExpress,Trendyol and Daraz together achieved positive order growth despite challenging macro environment,driv
137、en by a broader range of local and global product offerings and enhanced consumer experience.LazadaLazada,a leading and fast-growing e-commerce platform in Southeast Asia,serves one of the largest user bases among the global e-commerce platforms,by providing consumers with access to a broad range of
138、 offerings from local SMEs,and regional and global brands.Additionally,Lazada operates one of the leading e-commerce logistics network in Southeast Asia,serving its consumers and merchants with reliable,quality and convenient logistics services that are critical to online shopping experience in Sout
139、heast Asia.During fiscal year 2023,Lazada maintained positive year-over-year order growth despite a challenging economic environment.Lazada also continues to improve monetization rate by offering more value-added services,resulting in narrowing losses per order year-over-year.AliExpressAliExpress is
140、 a global marketplace targeting consumers around the world and enabling them to buy directly from manufacturers and distributors in China and around the world.Consumers can access the marketplace through AliExpress mobile app or websites.In addition to the global English-language version,AliExpress
141、platform is also available in 17 other languages,including Portuguese,Spanish and French.AliExpress continues to expand its regional merchant networks and supply chains to make available more localized products and better services for consumers in their respective regions.During fiscal year 2023,ove
142、r 30%of orders were delivered within 15 days globally.Since its launch,Choice covered 215 countries and regions during the fiscal year.Choice offers consumers a curation of great-value products across an extensive range of categories.Consumers in selected countries can enjoy free shipping,free retur
143、ns and quality delivery guarantees.By leveraging chartered flights and adopting overseas warehouses,AliExpress is able to offer these value-added services with shortened delivery time in key strategic countries.Furthermore,AliExpress continues to invest in new markets such as South Korea.In fiscal y
144、ear 2023,AliExpress recorded over 30%order growth in South Korea.Lavada 24 9450 Lazada Lazo 39Fiscal Year 2023 Annual ReportBusiness Overview生气惊讶对不起忧伤黑线无语再见礼盒疑问委屈TrendyolTrendyol,which we believe is by far the leading e-commerce platform in Trkiye in terms of both GMV and order volume in 2022,serves
145、 consumers with a broad selection of products and services through its e-commerce business as well as local consumer services for food and groceries.Consumers also enjoy the quality and convenient delivery services provided by Trendyols fulfillment and logistics networks,namely Trendyol Express for
146、e-commerce business and Trendyol GO for local consumer services.Beyond Trkiye,Trendyol has expanded internationally by leveraging its product sourcing capabilities and supply chain advantages in Trkiye,enabling Turkish merchants to serve global consumers with a wide selection of products through 80
147、third-party e-commerce platforms across six continents.During fiscal year 2023,Trendyol continued to grow rapidly,with approximately 47%order growth and more than 110%GMV growth in local currency year-over-year.Notes:(1)Since its launch,Choice covered 215 countries and regions during fiscal year 202
148、3.(2)During fiscal year 2023,Trendyol recorded approximately 47%order growth and more than 110%GMV growth in local currency year-over-year.GMV growth and110%+order growth(2)47%Trendyol continued to grow rapidly215countries and regions(1)Choice coveredInternational Commerce WholesaleA is Chinas large
149、st integrated international online wholesale marketplace in terms of revenue in 2022,according to Analysys.It connects Chinese and overseas suppliers to overseas wholesale buyers,who are typically trade agents,wholesalers,retailers,manufacturers and SMEs engaged in the import and export business,and
150、 provides them with sourcing,online transaction,digital marketing,digital supply chain fulfillment and financial services.Sellers on A may purchase an annual Gold Supplier membership to reach customers,provide quotations and transact on the marketplace.As of March 31,2023,A had over 220,000 paying m
151、embers from China and around the world.Sellers may also purchase additional value-added services to manage product listings and facilitate transaction processes,such as upgraded storefront management tools,customer relationship management SaaS services,P4P marketing services,trade assurance and fulf
152、illment services,mainly including logistics and custom clearance services.In the twelve months ended March 31,2023,value-added services contributed the majority of As total revenue.Additionally,over 47 million buyers from over 190 countries sourced business opportunities or completed transactions on
153、 A in the twelve months ended March 31,2023.10010010 00 000010 AliExpress helps Chinese coffee machine brands expand into overseas market with its platform capabilities and market insightsHiBREW,a coffee machine brand in Shunde Foshan,used to focus on several developed markets overseas.Si
154、nce engaging AliExpress in July 2019,it has expanded into new markets,including the Middle East.Given that the coffee machine is a product with relatively heavy weight,HiBREW relies on AliExpress platform capability to calculate shipping capacity precisely and improve cost efficiency through contain
155、er consolidation and warehouse sharing.Afterward,it took the platforms recommendation to deploy overseas warehouses in the Middle East to reduce logistics storage costs and shorten the delivery time.Through AliExpress,brands can directly reach consumers and better master their marketing channels and
156、 R&D direction,which helps small and medium-sized cross-border merchants like HiBERW seize more market opportunities.#Creating Possibilities#New Consumption Trend“AliExpress provided lots of support,helping us evaluate our product advantage and the market landscape and identify supporting policies,w
157、hich eventually encouraged us to deploy overseas warehousing and enter new markets.”Kenny Zeng,Founder,HiBREW好的你好A global marketplace40Alibaba Group Holding Limited.HIBRE 1101800 1110 AliExpress “By leveraging A,we turned challenge into opportunity and accelerated our digitalization progress.We capt
158、ured online global buyers surging demand for vitamins and other food supplements.”Maria Francesca Aceti,CEO,Deltha PharmaThe largest integrated international online wholesale marketplace in China(1)Italian female entrepreneur revives her business during the pandemic through ADeltha Pharma was founde
159、d in 2009 in Rome and became a popular Italian food supplement manufacturer.Despite the ups and downs in business,Maria Francesca Aceti,CEO of Deltha Pharma,decided to join A in 2019.Undoubtedly,the pandemic brought many challenges to Italian companies,and some were severely affected when offline sa
160、les were disrupted.However,Deltha Pharma turned this challenge into opportunity by incorporating digitalization into its business model through A.During the pandemic,there was a surge in demand for vitamins and health supplement products.Through A,the brand was able to sell these products worldwide.
161、It is now partnering with a local university to develop innovative supplements and continue growing its businesses.Note:(1)In terms of revenue in 2022,according to Analysys.#Creating Possibilities#New Consumption Trend41Fiscal Year 2023 Annual ReportALL NATURAL|ALL ITALIAN 010000 00 11 0 9 0 0 0 0 0
162、 1101000 EL?A 42Alibaba Group Holding LimitedBusiness OverviewLocal Consumer ServicesWe use mobile and online technology to enhance the efficiency,effectiveness and convenience of consumer services for both service providers and their customers in two distinct scenarios:“To-Home”and“To-Destination.”
163、In fiscal year 2023,Local consumer services recorded healthy order volume growth year-over-year.To-HomeOur“To-Home”business enables consumers to easily access merchants services at home through Ele.me,a leading local services and on-demand delivery platform in China.Ele.me enables consumers to use E
164、le.me,Alipay,Taobao mobile apps to order meals,food,groceries,FMCG,flowers and pharmaceutical products online.In addition,Fengniao Logistics,Ele.mes on-demand delivery network,provides last-mile logistics services,including delivery of food,groceries,FMCG and pharmaceutical products for Freshippo,Su
165、n Art,as well as Alibaba Health.Our strategy for Ele.me is to leverage our China commerce platforms and our data technology to expand our offerings from shopping to services,further tapping into new addressable markets for consumption in China.In fiscal year 2023,Ele.me recorded healthy GMV growth y
166、ear-over-year and maintained positive and improving unit economics per order,contributed by the combination of increased average order size and reduced delivery cost per order.To-DestinationOur“To-Destination”businesses,including Amap,Fliggy and Koubei,provide consumers with convenient access to qua
167、lity services at their destinations.In fiscal year 2023,the order volume of“To-Destination”businesses grew rapidly year-over-year.Fliggy integrated popular elements that appeal to the younger generation,such as music,food,outdoor activities into travel offerings.This has created an enriching and int
168、eresting new travel experience,helping destinations attract visitors and enhance branding effects.Amap is a leading provider of mobile digital map,navigation and real-time traffic information in China.Amap empowers major mobile apps across different industry verticals,including local services,ride-h
169、ailing and social networking,which end users can access directly through Amaps leading open platform.In addition,Amap provides digital map data,navigation software and real-time traffic information to international and domestic automobile manufacturers as well as aftermarket consumers in China.Amap
170、also empowers major platforms and infrastructural service providers,including our China commerce platforms,Cainiao and Alipay.On October 1,2022,the first day of the week-long National Day holiday in China,Amap achieved a record high of over 220 million daily active users.In March 2023,the number of
171、average daily active users of Amap reached a new record high of 150 million,driven by increasing intra-city commute and inter-city travel demand.Fliggy,a leading online travel platform in China,provides comprehensive reservation and fulfillment services for domestic and international airline and tra
172、in tickets,accommodation,car rental,package tours,and local attraction tickets and other services.Fliggy leverages its digital technology and products to enable its partners to enhance the efficiency of providing travel services,develop new product offerings,improve member engagement,and conduct dat
173、a-driven marketing campaigns,providing consumers with a diverse range of high-quality travel options.Koubei,our restaurant and local services guide platform for in-store consumption,provides targeted,data-driven marketing tools and integrated digital operational and store management services for res
174、taurants and local services providers.Amap engineers develop wheelchair navigation to improve accessibilityTo alleviate the inconvenience of travel experienced by the disabled population and vulnerable groups,Amap developed a wheelchair-accessible navigation feature with the support of the Zhejiang
175、Provincial Disabled Persons Federation.It has been launched in cities such as Beijing,Shanghai,Hangzhou,Chengdu,and Shenzhen.The public service project of“Wheelchair Navigation”was initiated by Alibaba staff volunteers,while engineers from Amap quickly joined to support and launched the project thre
176、e months later.“Wheelchair Navigation”was developed to meet special travel needs based on the digitalization of accessible facilities.Together with corresponding route planning and navigation strategies,it helps ease the anxiety of wheelchair users and foster the development of an accessible environ
177、ment.#Technological Innovation#Social Responsibility“There is a higher risk in traveling alone as a wheelchair user,but I dont want to inconvenience others,so Im always uneasy whenever I leave home.The“wheelchair navigation”feature introduced by Amap helps to identify the best routes for me so I am
178、more at ease when I travel,helping me to regain my confidence.”Cheng Ruan,Bronze Medallist,National Games for Persons with DisabilitiesA leading provider of mobile digital map,navigation and real-time traffic information in China43Fiscal Year 2023 Annual Report1001 1 10 1 0001110?44Alibaba Group Hol
179、ding LimitedBusiness OverviewCainiaoWe are committed to further strengthening the capabilities of our global logistics network.Our vision for our logistics services is to fulfill consumer orders within 24 hours in China and within 72 hours anywhere else in the world.To realize this vision,Cainiao co
180、ntinues to build and operate a global fulfillment network together with its logistics partners.It offers domestic and international one-stop-shop logistics services and supply chain management solutions,addressing various logistics needs of merchants and consumers at scale.Consumer LogisticsCainiao
181、uses data insights and technology to digitalize the entire logistics process and enhance the capabilities of its logistics partners,thereby improving consumer experience and efficiency across the logistics value chain.As an important complement to the last-mile delivery network of Cainiaos express d
182、elivery partners,Cainiao has also incubated and developed Cainiao Post,a neighborhood logistics solution with a combination of neighborhood,campus and rural village stations and residential self-pickup lockers.We continue to build neighborhood logistics solutions to cover both urban and rural areas,
183、allowing consumers to pick up their packages from their nearest stations or residential self-pickup lockers easily.We also continue to expand Cainiao Posts network by offering a variety of value-added services to improve consumer experience.As of March 31,2023,excluding those in rural areas and univ
184、ersities,over 74%of Cainiao Posts offered door-step parcel delivery service to consumers.Consumers can also enjoy parcel pick-up at doorstep and time-guaranteed delivery service through Cainiao.Technology-driven integrated supply chain and fulfillment solutions for merchantsThe vast geographical are
185、a of China and wide distribution of consumers and merchants in China require a large and distributed logistics infrastructure.Cainiao has established a scalable fulfillment network that consists of fulfillment hubs at key strategic locations and package sorting and distribution centers,which are own
186、ed,leased or partnered with logistics partners.The fulfillment network is connected by Cainiaos proprietary logistics data platform.Cainiao has built a full-fledged fulfillment network at provincial,city,and county levels,which offers customized fulfillment solutions to different types of merchants
187、on our platforms.For medium-sized and large brands and merchants,we provide digitalized and integrated supply chain management solutions and logistics services,allowing them to place inventory across multiple locations in advance based on sales forecasts to optimize supply chain efficiency and ensur
188、e timely delivery to consumers.In fiscal year 2023,we further tailored our supply chain and fulfillment solutions to cater for key categories such as FMCG and home furnishing.For small-sized merchants in industrial belts,we provide highly competitive and cost-efficient fulfillment services.Cainiao h
189、as developed a strong and expanding network of assets and partners to support merchants on our cross-border and international commerce retail businesses,mainly AliExpress,Tmall Global and Lazada.Cainiao is positioned to provide diversified services with unique customer value propositions.For example
190、,from a China import standpoint,Cainiao is focused on developing cross-border fulfillment solutions for Tmall Global,utilizing a combination of bonded warehouses in China and direct shipment from markets outside Chinese mainland.In terms of China export,Cainiao serves businesses on AliExpress platfo
191、rm by providing them with attractive value-for-money,convenient and direct logistics channels to deliver packages to consumers worldwide.As of March 31,2023,Cainiao directly operated 15 overseas sorting centers.Despite challenging macro environment and supply chain disruption,Cainiao managed to achi
192、eve daily average cross-border and international package volume of over 4 million in the fiscal year ended March 31,2023.45Fiscal Year 2023 Annual ReportBusiness OverviewNotes:(1)Cainiao managed to achieve daily average cross-border and international package volume of over 4 million for the fiscal y
193、ear ended March 31,2023.(2)As of March 31,2023,Cainiao directly operated 15 overseas sorting centers.4 million+Daily average cross-border and international package volume(1)15overseas sorting centers(2)Cainiao leverages Liege eWTP Hub in Belgium as a hub to serve more cross-border cargo routes and h
194、elp their partners improve air cargo capacity.6 .001 0 1.00 0 0 O Mobile phone brand leverages Cainiao Global Express to enhance overseas competitivenessAGM,a Chinese mobile phone brand specializing in designing,developing,and producing outdoor products increased its consumer reach across more marke
195、ts through Cainiaos diverse logistics services,including first-mile logistics,cross-border delivery,premium warehouses,and overseas warehousing.Cainiao Global Express provides AGM with stable delivery and affordable logistics services to enhance the Chinese brands competitiveness in the cross-border
196、 market.For example,by leveraging on self-built express delivery network in Spain,it can better safeguard customers high-valued products while premium warehouses in China can shorten the delivery chain and improve logistics timeliness,which help merchants and our platforms better serve overseas cons
197、umers.“Cainiao Global Express logistics solutions are affordable with stable delivery.Among those,cross-border direct shipping and overseas last mile delivery solve the logistics needs of merchants across product categories,and improve our purchase conversion rate on the AliExpress Choice channel.”J
198、orge Sun,Head of AliExpress e-commerce,AGM Outdoor Mobile#Logistics Capability#Digital TransformationA smart logistics network46Alibaba Group Holding Limited5G MONSTER 01 000 1 011 0 0 0 0 11010 C4I NIAO?Genting SkyWorlds Theme Park introduces Alibaba Clouds AI solution to improve the guest experien
199、ce and reduce queuing timesMalaysias Genting SkyWorlds Theme Park partnered with Alibaba Cloud to launch an AI-powered Virtual Queue solution that utilizes the latest cloud-based technology to deliver seamless and engaging visitor experiences.Alibaba Clouds virtual queue reservation leverages advanc
200、ed AI algorithms to analyze real-time intelligence from the waiting time and capacity of the facilities,allowing operations teams to have better crowd control and capacity optimization.With the solution designed by Alibaba Cloud,Genting SkyWorlds can reduce visitor waiting time flexibly and securely
201、,which handles a higher volume of visitors.#Digital Transformation#Creating Possibilities The digital technology and intelligence backbone business“This advanced Virtual Queue technology has been integrated into Genting SkyWorlds mobile app so that visitors can avoid the long queue and plan their it
202、inerary as they wish.”Aaron Soo,Senior Vice President,Attractions&Tenancy,Genting Malaysia Berhad47Fiscal Year 2023 Annual ReportTEAM MEMBER SKY FORLDS 1 .01 -10 0 0 0 110 10 -)Alibaba Cloud 48Alibaba Group Holding LimitedBusiness OverviewCloudOur Cloud segment is comprised of Alibaba Cloud and Ding
203、Talk.Alibaba CloudAlibaba Group is the worlds third largest and Asia Pacifics largest Infrastructure-as-a-service provider by revenue in 2022 in U.S.dollars,according to Gartners April 2023 report(Source:Gartner,“Market Share:IT Services,Worldwide,2022”,Neha Sethi et al.,14 April 2023,Sorted by Infr
204、astructure-as-a-Service,Vendor Revenue Basis)(Asia Pacific refers to Mature Asia/Pacific,Greater China,Emerging Asia/Pacific and Japan,and market share refers to that of infrastructure-as-a-service).Alibaba Group is also Chinas largest provider of public cloud services by revenue in 2022,including P
205、aaS and IaaS services,according to IDC(Source:IDC Quarterly Public Cloud Services Tracker,2022H2&2022Q4).Chinas cloud computing industry is still at a nascent stage of development.In 2022,the revenue of Chinas public cloud service market,including IaaS,PaaS and SaaS markets,only accounted for 0.2%of
206、 Chinas GDP in 2022,significantly lower than that of the U.S.,indicating tremendous room for growth.The industry has experienced significant growth in recent years with increasing adoption of both basic infrastructural services and value-added services by enterprises.The technologies that power Alib
207、aba Cloud grew out of our own need to operate at a massive scale and to address the complexity of our China businesses,including related commerce,payments and logistics elements.Leveraging our full-stack cloud capabilities and proprietary products portfolio,Alibaba Cloud offers a comprehensive suite
208、 of cloud services based on a three-tier architecture of infrastructure-as-a-service(IaaS),platform-as-a-service(PaaS)and model-as-a-service(MaaS)to customers worldwide.These services not only enable our customers to build a flexible,scalable,affordable and secure technology infrastructure,but also
209、equip them with leading data capabilities that efficiently handle complex management,analytics and machine learning tasks,thereby generating significant business insights and enabling intelligent business decisions and operations.We leverage these capabilities and technologies to support our ecosyst
210、em and provide our customers across various verticals with industry-specific solutions,including those for commerce,financial services,and industrial applications.In addition,as part of our globalization strategy,Alibaba Cloud continued to expand our international cloud computing infrastructure to b
211、etter serve our customers needs in overseas markets.As of March 31,2023,Alibaba Cloud offered computing services in 28 regions globally.In April 2023,Alibaba Cloud unveiled its latest large language model,Tongyi Qianwen.?Integrating Alibabas Offerings with Tongyi Qianwen?E N AO Come MAI?49Fiscal Yea
212、r 2023 Annual ReportBusiness OverviewLeveraging Alibaba Clouds large scale and strong foundation in IaaS and PaaS,our MaaS platform provides enterprises with high-performance and low-cost computing resources and machine learning platform services for large-scale model training and inference.Our serv
213、ices not only support our self-developed foundation model,but also support the training and services of other large models and vertical models in the market.In April 2023,Alibaba Cloud unveiled our latest LLM,Tongyi Qianwen.The new LLM will be integrated into all business applications across Alibaba
214、s ecosystem in the near future to further enhance user experience.To enable enterprise customers to reap the benefits of AI-driven innovation,Alibaba Cloud will offer clients access to Tongyi Qianwen on the cloud and enable them to develop customized large language models for their business scenario
215、s.In addition,we offer solutions of DingTalk,an intelligent collaboration workplace and application development platform,to customers of Alibaba Cloud.This platform offers enterprises enhanced work collaboration capabilities and provides them with easy access to Alibaba Clouds capabilities and infra
216、structure to further facilitate their digital transformation.Alibaba Clouds unique advantages lie in our proprietary technology and continued commitment to invest in research and development in new product offerings and industry-specific solutions for our customers and partners.Alibaba Cloud continu
217、es to attract customers that are reputable and have the potential to adopt cloud services at a meaningful scale.In fiscal year 2023,Alibaba Cloud served 55%of A-share listed companies in China.As digital transformation accelerates,our customers,especially those from traditional verticals,have increa
218、sed their usage of our services.We believe our cloud services have become a critical foundation that many of our customers increasingly depend on in their daily operations.Notes:(1)Alibaba Group is Chinas largest provider of public cloud services by revenue in 2022,including PaaS and IaaS services,a
219、ccording to IDC(Source:IDC Quarterly Public Cloud Services Tracker,2022H2&2022Q4).(2)As of March 31,2023,Alibaba Cloud offers computing services in 28 regions globally.Offering computing services inglobally(2)28 regionsChinaslargestprovider of public cloud services(1)11 010 0 1.00 71 0100 6 0101 156
220、 50Alibaba Group Holding LimitedBusiness OverviewDingTalkDingTalk is our intelligent collaboration workplace and application development platform that offers new ways of working,sharing and collaboration for modern enterprises and organizations.Millions of enterprises and users use DingTalk to stay
221、connected and work remotely.In March 2023,DingTalk paying daily active users reached 23 million.According to QuestMobile,DingTalk is the largest business efficiency mobile app in China by monthly active users in March 2023.Our strategic initiative to integrate DingTalk with Alibaba Cloud aims to emp
222、ower DingTalk with our cloud capabilities and big data analytics to facilitate the digital transformation of enterprises and organizations.DingTalk provides a comprehensive suite of solutions for enterprise collaboration,including real-time communication,organizational management and various network
223、 collaboration tools such as data storage,calendars,workflow management and shared documents.Enterprises can also enjoy convenient access to a broad range of applications,including those offered by third-party service providers,that are seamlessly integrated with DingTalks platform.In addition,DingT
224、alk has launched a low-code development infrastructure that enables enterprises to develop customized solutions in a more convenient and cost-efficient manner.During the 2023 DingTalk Spring Summit in April,DingTalk unveiled its product integration of launched intelligent capabilities based on Aliba
225、bas Tongyi Qianwen large language model,which help customers and ecosystem partners unlock the potential of AI capabilities.Large-scale enterprises with complex needs can also directly leverage DingTalks open platform to develop fully customized digital solutions.We believe DingTalk has become not o
226、nly a tool to help enterprises run their business digitally and efficiently,but also a platform empowered by Alibaba Clouds capabilities that enables enterprises to achieve fully customized digital transformation.Digital Media and EntertainmentOur digital media and entertainment businesses leverage
227、our deep consumer insights to serve the broader interests of consumers through our key distribution platforms,including Youku,and our other diverse content platforms,including Alibaba Pictures,that provide online videos,films,live events,newsfeeds and literature,among others.Key Distribution Platfor
228、mYoukuYouku is a leading online long-form video platform in China.It enables users to search,view and share high-quality video content quickly and easily across multiple devices.Our Youku brand is among the most-recognized online video brands in China.Insights we gain from our ecosystem and our prop
229、rietary technology enable Youku to deliver relevant digital media and entertainment content to its users.In fiscal year 2023,total users viewing time on our Youku mobile app increased by 13%year over year.In addition,Youkus total subscription revenue grew over 15%from the prior fiscal year,primarily
230、 driven by increasing average revenue per user,as well as benefiting from our original and exclusive content.We also operate a number of other AI-driven platforms that effectively deliver relevant and engaging content to our large and growing user base.QuarkQuark provides young users with a one-stop
231、 platform for information search,storage and consumption.It offers tools and services,such as smart search,Quark cloud drive,AI camera,Quark learning and Quark documents,to help users better acquire and utilize a variety of digital content and information for learning and work purposes.Key Content P
232、latformsWe offer a diverse range of digital media and entertainment content using a sustainable production and acquisition approach.First,we provide self-51Fiscal Year 2023 Annual ReportBusiness Overviewproduced content.Second,we jointly produce content with studios,some of which is distributed excl
233、usively on our platforms.Third,we acquire rights to display content on our digital media and entertainment platforms pursuant to licensing agreements with rights holders.Last,we offer an open platform on which user-generated content and professional-generated content are produced and distributed.Our
234、 digital media and entertainment offerings include online videos,films,live events,newsfeeds and literature.Alibaba Pictures,driven by high-quality content and technology,is an integrated platform that provides content production,promotion and distribution,intellectual property-related licensing and
235、 commercial management,cinema ticketing management and Internet data services for the entertainment industry.During the twelve months ended March 31,2023,Alibaba Pictures participated in the production and distribution of a total of 26 films,12 of which ranked among the top 20 films released during
236、the same period in terms of box office,including The Wandering Earth 2(流浪地球2),Moon Man(獨行月球)and Lighting Up the Stars(人生大事),demonstrating our consistent standards for selecting high-quality films.In addition,Alibaba Pictures continues to diversify its businesses to capture opportunities across the e
237、ntertainment value chain,including ticketing,digital services and platforms.Through Damai,a leading online ticketing platform for live events in China,we provide users with ticketing services for popular concerts,plays and sporting events.Lingxi Games is a leading digital interactive entertainment s
238、ervice provider in China,specializing in the development,operation and licensed publishing of mobile games and providing a professional distribution and service platform for both players and developers.Lingxi Games operates a number of high-quality mobile games,such as Three Kingdoms Tactics(三國志戰略版)
239、and Three Kingdoms Fantasy Land(三國志幻想大陸).In fiscal year 2023,Lingxi Games is the 4th largest mobile gaming company in Chinese mainland(iOS App Store)among global companies in terms of grossing,according to Data.ai.In addition to operating our flagship titles,Lingxi Games continues to develop new hig
240、h-quality and diversified content to serve players from both Chinese mainland and overseas markets,such as the recently launched Three Kingdoms Tactics:Go(三國志戰棋版)and Ashes of the Kingdom(代號鳶),which are greatly received in the player community.Innovation Initiatives and OthersDAMO AcademyIn October 2
241、017,we established DAMO Academy,a global research program in cutting-edge technologies that aim to integrate and speed up knowledge exchange between science and industry.DAMO Academy encourages a collaborative environment that facilitates the application of scientific discoveries to real-life circum
242、stances.Tmall GenieTmall Genie provides a selection of IoT-enabled smart home appliances,including smart speakers,lights and remote controls.Specifically,Tmall Genie smart speaker,a leading smart speaker in China in terms of sales units,provides an interactive interface for our customers to easily a
243、ccess services offered by our ecosystem participants.Customer Services and ProtectionAs our ecosystem caters to a wide range of consumers in China,we view protection of consumers interest as our top priority as we believe every consumer has the right to be protected from false and misleading claims
244、and harmful products.To this aim,we require merchants to sign merchant service agreements with us,pay fund deposit and authorize us to directly deduct fund deposit in the event of confirmed consumer claims.Additionally,we are committed to protecting intellectual property rights and eliminating count
245、erfeit merchandise and fictitious activities.We combat the issue of intellectual property rights infringement by collaborating with rights holders,trade associations and governments around the world.This is consistent with our ESG strategies of“Enabling a Sustainable Digital Life”and“Fueling Small B
246、usinesses”.Alibabas DAMO Academy uses AI technology to help screen for Alzheimers disease and early-stage of esophageal cancer“Prevention is more effective than treatment”is a fundamental principle in addressing Alzheimers and cancer.Alibabas DAMO Academy and Alzheimers Disease Chinese(ADC)collabora
247、ted to provide artificial intelligence(AI)-powered screenings for older people through a mobile app that offers customized analysis and suggestions based on screening results.It also recommends specialists located nearby for follow-up consultations so that older people in rural areas and underprivil
248、eged populations with insufficient medical resources can also access professional services.In addition,the medical AI team of DAMO Academy has partnered with several hospitals and medical institutions in Chinese mainland to integrate AI and non-contrast CT scanning to identify early-stage esophageal
249、 cancer symptoms.To address the challenges of identifying early-stage tumors,the research team focused on improving the segmentation algorithm model,which helps AI learn and analyze global characteristics and local details of the esophagus so that patients can be screened for early-stage esophageal
250、cancer through a general physical examination using non-contrast CT.#Technological Innovation#Social ResponsibilityA global research program in cutting-edge technologies“Our mobile app allows older people to screen for Alzheimers disease anywhere and anytime.By reducing barriers to screening access
251、and demands on time,it is helping with prevention through early detection.”Yongan Sun,Executive Vice Chairman and Secretary General of the Alzheimers Disease Chinese(ADC)52Alibaba Group Holding Limited.70 10 1 0 10000 10 011 0 1 1 0 0 00 010 7 DAMO ALIBABA DAMO ACADEMY 53Fiscal Year 2023 Annual Repo
252、rtBusiness OverviewSales and MarketingOur sales and marketing efforts radiate from the cornerstone of our ecosystem,Taobao and Tmall,which constitute the worlds largest digital retail business in terms of GMV for the twelve months ended March 31,2023,according to Analysys.We have wide consumer recog
253、nition of our brands and enjoy significant organic traffic through word-of-mouth.We believe the reputation and ubiquitous awareness of our brands and platforms in China and,increasingly,abroad provide us with the best and most cost-efficient marketing channel.In addition,we also use other marketing
254、initiatives to promote our platforms.During the most recent fiscal year,we increased our marketing efforts,such as a highly coordinated marketing and promotional campaign for the 11.11 Global Shopping Festival and dedicated marketing efforts to promote Taobao Deals,in order to expand our user base a
255、cross developed and less-developed areas.We expect to continue to leverage our resources in future marketing activities.We also expect to enhance our monetization capability through leveraging our data technologies to develop and offer more personalized and innovative services,so as to improve custo
256、mer experience and wallet share.Furthermore,our major business segments and other elements in our ecosystem provide synergetic advantages and create cross-promotional opportunities.For example,the large number of consumers on our marketplaces attracts a large number of merchants who become customers
257、 of our online marketing services,while an increasing number of KOLs,video bloggers and content creators are actively producing content to engage with consumers and fans on our platforms,thereby driving revenue for merchants,brands and retailers.Our TechnologyTechnology is key to our success in achi
258、eving efficiency,improving user experience,and enabling innovation.Our world-class proprietary technology supports peak order volumes of up to hundreds of thousands per second,delivers tens of billions of online marketing impressions per day,and enables millions of merchants,brands and other busines
259、ses to conduct their operations efficiently and effectively.The uniqueness of our technology lies in the unparalleled large-scale application environment due to the scale of our businesses as well as our diverse range of product and service offerings.By continuously applying our technology across ou
260、r businesses,we generate knowledge and innovations that drive improvements and further technological development.Members of our research and development team play key roles in various international standardization organizations in areas such as security and IoT,and actively participate in internatio
261、nal open source foundations focusing on areas such as software engineering,cloud-native applications and databases.In October 2017,we established DAMO Academy,a global research program in cutting-edge technology that aims to integrate and speed up knowledge exchange between science and industry.DAMO
262、 Academy encourages a collaborative environment that facilitates the application of scientific discoveries to real-life circumstances.Key components of our technology include those described below:Technology InfrastructureOur data centers utilize leading technologies in distributed structure,innovat
263、ive cooling techniques,distributed power technology and intelligent monitoring,and we believe our data centers are among the most efficient in the world as indicated by their better power utilization rates.We operate data centers in multiple countries around the world.The multi-region availability o
264、f our transaction system data centers provides scalability and stable redundancy.54Alibaba Group Holding LimitedBusiness OverviewCloud Operating SystemApsara(our proprietary general-purpose distributed computing operating system),ShenlongCompute(our hardware virtualization architecture),and Pangu(ou
265、r distributed cloud storage system),together,provide Alibaba Clouds customers and our core businesses with enhanced computing power and storage capabilities to support their and our business growth in the new technology era.DatabaseWe have developed a next-generation cloud-native database,PolarDB,wh
266、ich enables our customers to meet their requirements for on-demand storage,transaction processing and computation,elasticity and scalability.PolarDB significantly increases the throughput and performance of transaction and query processing as compared to other open-source relational database managem
267、ent systems.We have also developed a cloud-native distributed analytics database,AnalyticDB,which supports real-time interactive and complex analytics over massive data.Additionally,we have developed Lindorm,a cloud-native multi-model database,to support efficient storage and fusion analyses of mult
268、i-model data.Big Data Analytics PlatformWe have developed a large-scale distributed data analytics platform that can efficiently handle the complex computing tasks of hundreds of petabytes of data per day,allowing us to build AI-powered solutions and providing deep data insights capabilities to our
269、businesses and our cloud customers.Our comprehensive big data analytics platform includes:MaxCompute,a data storage and computing platform;Blink,a real-time data computing platform;Hologres,an interactive analysis engine;Dataworks,a one-stop development platform;and OneData,a data integration and ma
270、nagement system.Artificial IntelligenceOur proprietary,distributed deep learning platform,PAI,has access to insights across diverse businesses involving a rich variety of consumer experiences as well as real-time feedback from clients of Alibaba Cloud.As a result,we believe we are in a unique positi
271、on to develop large-scale commercial use of AI.We have applied various AI technologies across our ecosystem to enhance consumer experience and business operational efficiency.These enhancements include personalized search results and shopping experiences as well as various interactive content format
272、s enabled by deep learning and data analytics adopted in search functions,as well as intelligent customer service,leveraging speech recognition,image and video analysis technologies.In addition,our AI capabilities enable us to introduce innovative products,such as our AI-enabled Tmall Genie smart sp
273、eaker.Our proprietary LLM,Tongyi Qianwen,will serve as an enabler for business integrations and applications across our ecosystem,enhance user experience and accelerate digitalization brought by the AI-driven innovation.Internet of ThingsWe are engaged in the development of an IoT infrastructure,enc
274、ompassing a wide range of IoT technologies and products that can be fully integrated with our cloud solutions,such as IoT platform technologies,IoT wireless technologies,edge AI computing,microchip design and development frameworks,operating systems and on-device AI technologies for digital retail,i
275、ndustrial manufacturing,smart city,digital agriculture and other applications.SecurityWe have established a comprehensive situational awareness and security system that spans across our entire infrastructure and business systems,covering our hardware,systems,network,apps,data services and end users.
276、Our back-end security system handles billions of instances of malicious attacks each day to provide effective security for our ecosystem.55Fiscal Year 2023 Annual ReportBusiness OverviewEnvironmental,Social and Governance(ESG)Our ESG StrategyESG is part of the foundation of our business strategy and
277、 long-term development.We are dedicated to addressing societys pressing issues by integrating ESG objectives into our business strategy.Our ESG strategy has seven dimensions,corresponding to all of the 17 Sustainable Development Goals(SDGs)issued by the United Nations and closely tied to Chinas mode
278、rnization goals.We have devised our ESG strategy to be pragmatic,long-term and action-oriented,regimented by a transparent and rigorous indicator system.We focus our efforts on the seven areas below:Advancing Towards the Goal of Carbon NeutralityWe target to reach carbon neutrality in our own operat
279、ions,including Scope 1 and Scope 2 emissions,by 2030.To further implement green initiatives across our value chain(Scope 3 emissions),we are deploying tools to help our value chain partners reduce their greenhouse gas emissions and overall carbon intensity by at least 50%from the base year of 2020 b
280、y 2030.We have made solid progress towards reducing greenhouse gas emissions.The net emissions of our own operations(Scope 1 and 2)are 4.681 million MtCO2e in the fiscal year ended March 31,2023,a 12.9%year-over-year decrease.We have reduced emissions by 1.419 million MtCO2e in the fiscal year ended
281、 March 31,2023,compared to 0.620 million MtCO2e in the prior fiscal year.We have also reduced our value chain carbon intensity(Scope 3)to 8.7 MtCO2e per million RMB in the fiscal year ended March 31,2023,from 9.2 MtCO2e per million RMB in the fiscal year ended March 31,2022,through initiatives such
282、as promoting digital efficiency and energy transformation in logistics services,promoting energy efficiency and transformation in data centers,and encouraging our employees towards low-carbon business travels.As for promoting carbon reduction in our platform ecosystem(Scope 3+),in which we strive to
283、wards a cumulative ecosystem-wide reduction of greenhouse gas emissions by 1.5 billion tons by 2035,we have made progress in a number of areas.First,together with authoritative institutions,we have published the framework for Scope 3+carbon reduction methodology.Second,we have developed and iterated
284、 a number of carbon reduction scenarios in scientific and diversified measures.In the fiscal year ended March 31,2023,we contributed to a measured reduction of 22.907 million MtCO2e across the ecosystem.Third,we are leveraging Alibabas reach to involve more stakeholders.We launched our“Carbon88 Ledg
285、er Platform,”which promotes greener lifestyles by rewarding consumers for adopting eco-friendly behaviors,covering some of Alibabas most-used apps,and“Low-carbon Friendly Products Program,”which focuses on the product lifecycle,covering key process and measurements in product decarbonization.These s
286、ystems have amplified our decarbonization efforts through 187 million consumers,409 brands,and 1.91 million products.Supporting Our PeopleIt is our employees that make our business and culture thrive.None of our goals can be accomplished without our people.It is critical for us to ensure that all of
287、 our employees can enjoy an equal and inclusive working environment of dignity and diversity.This also means supporting our employees to fulfil their potentials by providing them with on-the-job trainings and opportunities for career advancement.In addition,we provide abundant channels for our emplo
288、yees at all levels to give feedback to our management team.We have a holistic personnel review system in place to help employees identify where they are today,and a wide array of talent development programs to help them get to where they want to be in the future.We have also placed a great focus on
289、campus design and culture,healthy lifestyle and employees access to healthcare advice.In fiscal year 2023,Alibaba ranked Top 5 among Chinese enterprises in“Forbes 2022 Global Best Employer.”Enabling a Sustainable Digital LifeSustainable consumption is crucial to our sustainable development goals and
290、 we run our business to provide consumers with diverse,inclusive,trustworthy,and responsible consumption.Highlights of our progress during the current fiscal year are as follows.Inclusive consumption.We pay special attention to being accessible and senior-friendly.We understand the difficulties of t
291、he disabled community in using digital technology and help provide them with equal access to digital technologies.We also provide well-56Alibaba Group Holding LimitedBusiness Overviewdesigned,convenient and efficient digital services to senior consumers.In the fiscal year ended March 31,2023,Taobao
292、and Tmall Apps served over 320,000 visually impaired users,while as of March 31,2023,“Wheelchair Navigation,”developed by Amap,was available in six cities,providing accessible navigation over 0.9 million times.Trustworthy consumption.Consumer privacy protection and data security are the bedrock for
293、consumers.We have integrated the three principles of“minimizing data collection”,“ensuring user awareness and choices,”and“enhancing user data protection”into our products and services,promoting the use of privacy technology and secure computing to protect consumer privacy and data security.Fueling
294、Small BusinessesIn their digital transformation,micro,small,and medium-sized enterprises,or MSMEs,are facing challenges in accessing technology,market opportunities,and business competitiveness.As a leading technology platform in China,we strive to integrate our digital technology into the real econ
295、omy to create more jobs,provide more growth opportunities to MSMEs and achieve sustainable development.According to the latest estimate by a research team from Renmin University of China,our entire ecosystem facilitated,directly or indirectly,a total of over 70 million jobs in calendar year 2022.Pro
296、pelling Rural Development through DigitalizationWe persistently work to help bridge the urban-rural gap,facilitate rural revitalization and support rural economy.In fiscal year 2023,sales of 832 counties previously categorized as impoverished nationwide exceeded RMB130 billion on our platforms,and t
297、otal sales of 160 national key counties for rural revitalization exceeded RMB4.3 billion.Our team of rural commissioners was awarded as Outstanding Team of“Sannong”(Sannong in Chinese is an acronym for Agriculture,Rural areas,and Farmers)in 2022 by the General Office of the Ministry of Agriculture a
298、nd Rural Affairs and the Policy and Regulations Department of the National Rural Revitalization Administration.Facilitating Participatory PhilanthropyWe have connected with a wide range of philanthropic ecosystem and leveraged the power of technology to address social challenges.Starting with our em
299、ployees,we involved stakeholders across our ecosystem to engage in philanthropy via flexible forms and mechanisms,aiming to promote greater social involvement.In the fiscal year ended March 31,2023,total volunteer service hours of employees reached 250,144 hours.Building Corporate and Social TrustAs
300、 digital technology unprecedentedly transforms ways of social production and our lifestyles,we are even more convinced that trust is a prerequisite for our social responsibility and a cornerstone for our business development.With this conviction,we have been focusing on building corporate and social
301、 trust in two areas privacy protection and data security,and science and technology ethics.We believe these priorities are in line with our strategic positioning,corporate governance mechanism and technological capabilities,as we aim to become a pioneer in the technology industry to lead the charge
302、of building a corporate and social place of trust.ESG Governance StructureAlibabas over 20 years of business success has been predicated on a thoughtful system of governance to oversee our wide array of brands,platforms and services.We recognize that no ESG strategy can reach its full potential with
303、out a dedicated structure of governance.Accordingly,we have embedded ESG oversight into a three-layer structure at the board,senior management,and group and business unit levels.Our board has established a sustainability committee composed of three directors(Jerry Yang,Joe Tsai,and Maggie Wu)to supe
304、rvise and lead ESG efforts across Alibaba.Their responsibilities include identifying and evaluating ESG opportunities and risks,ensuring robust oversight and internal management of ESG strategies and reviewing ESG-related disclosures.Under the sustainability committee,we have established a sustainab
305、ility steering committee,or the SSC,which is tasked with leading,implementing and monitoring Alibabas ESG goals,strategies and initiatives,including building a group-wide ESG management system.Moreover,we have established an ESG strategy and operations department that coordinates directly with the d
306、esignated ESG teams of business units and departments.They are the driving force to implement the strategies and projects set by the SSC and to establish and maintain monitoring systems to measure our progress.Under our new organizational structure announced in March 2023,we will keep the three-laye
307、r corporate governance structure.The Reorganization will not change our ESG strategic positioning or commitments.57Fiscal Year 2023 Annual ReportBusiness OverviewCompetitionWe face competition principally from established Chinese Internet companies and their respective affiliates,global and regional
308、 e-commerce players,cloud computing service providers,logistics service providers and digital media and entertainment providers.Although foreign e-commerce companies currently have a limited presence in China,we face significant competition from them in the area of cross-border commerce.These compet
309、itors generate significant traffic and have established strong brand recognition,robust technological capabilities and significant financial resources.The areas in which we compete primarily include:Consumers.We compete to attract,engage and retain consumers based on the variety,quality and value of
310、 products and services listed on our platforms,the engagement of digital media and entertainment content available on our platforms,the overall user experience of our products and services,and the effectiveness of our consumer protection measures.Merchants,Brands,Retailers and other Businesses.We co
311、mpete to attract and retain merchants,brands and retailers based on the size and the engagement of consumers on our platforms and the effectiveness of our products and services to help them build brand awareness and engagement,acquire and retain customers,complete transactions,expand service capabil
312、ities,protect intellectual property rights and enhance operating efficiency.In addition,we compete to attract and retain businesses of different sizes across various industries based on the effectiveness of our cloud service offerings to help them enhance operating efficiency and realize their digit
313、alization transformation ambitions.Marketers.We compete to attract and retain marketers,publishers and demand-side platforms operated by agencies based on the reach and engagement of our properties,the depth of our consumer insights and the effectiveness of our branding and marketing solutions.Talen
314、t.We compete for motivated and capable talent,including engineers and product developers to build compelling apps,tools,and functions and to provide services for all participants in our ecosystem.As we acquire new businesses and expand into new industries and sectors,we face competition from major p
315、layers in these industries and sectors.In addition,as we expand our businesses and operations into an increasing number of international markets,such as Southeast Asia and Europe,we increasingly face competition from domestic and international players operating in these markets.See“Risk Factors Risk
316、s Related to Our Business and Industry If we are unable to compete effectively,our business,financial condition and results of operations would be materially and adversely affected.”SeasonalityOur overall operating results fluctuate from quarter to quarter as a result of a variety of factors,includi
317、ng seasonal factors and economic cycles that influence consumer spending as well as promotions.Historically,we have experienced the highest levels of revenues in the fourth calendar quarter of each year due to a number of factors,including merchants allocating a significant portion of their online m
318、arketing budgets to the fourth calendar quarter,promotions,and the impact of seasonal buying patterns in respect of certain merchandise categories such as apparel.We also have experienced lower levels of revenues in the first calendar quarter of each year due to a lower level of operating activities
319、 by merchants early in the calendar year and during the Chinese New Year holiday,during which time consumers generally spend less and businesses in China are generally closed.Moreover,as our fixed costs and expenses,such as payroll and benefits,bandwidth and location fees,grow at a relatively stable
320、 rate compared to our revenue growth,we expect to enjoy increased operating leverage in seasonally strong quarters,but will face significant margin pressure in seasonally weak quarters.Our international commerce businesses are also subject to seasonal fluctuations depending on the markets we operate
321、 in.Except for our China and international commerce businesses,operating results of our other businesses have not demonstrated clear seasonal patterns,which we believe may partially reduce the seasonality impact of our China and international commerce businesses as we continue to grow these other bu
322、sinesses.58Alibaba Group Holding LimitedBusiness OverviewPermissions and Approvals Required to be Obtained from PRC Authorities for our Business OperationsIn the opinion of Fangda Partners,our PRC legal counsel,our consolidated subsidiaries and the VIEs in China have obtained all major licenses,perm
323、issions and approvals from the competent PRC authorities that are necessary to the operations of our China commerce and cloud businesses,which accounted for a significant majority of our revenue in fiscal year 2023.In addition,we have implemented policies and control procedures to obtain and maintai
324、n the necessary licenses,permission and approvals to conduct our businesses.On the basis of the legal opinion issued by our PRC legal counsel and our internal policies and procedures,we believe that our consolidated subsidiaries and the VIEs in China have received the requisite licenses,permissions
325、and approvals from the PRC authorities as are necessary for our business operations in China.Such licenses,permits,registrations and filings include,among others,Value-added Telecommunication License,License for Online Transmission of Audio-Visual Programs,Network Cultural Business License,Online Pu
326、blishing Service License and License for Surveying and Mapping.If we,our consolidated subsidiaries or the VIEs in China(i)do not maintain such permissions or approvals,(ii)inadvertently conclude that such permissions or approvals are not required,or(iii)applicable laws,regulations,or interpretations
327、 change,and we or the VIEs are required to obtain such permissions or approvals in the future,we may be unable to obtain such necessary approvals,permits,registrations or filings in a timely manner,or at all,and such approvals,permits,registrations or filings may be rescinded even if obtained.Any su
328、ch circumstance may subject us to fines and other regulatory,civil or criminal liabilities,and we may be ordered by the competent PRC authorities to suspend relevant operations,which could materially and adversely affect our business,financial condition,results of operations and prospects.Please see
329、“Risk Factors Risks Related to Our Business and Industry We are subject to a broad range of laws and regulations,and future laws and regulations may impose additional requirements and other obligations that could materially and adversely affect our business,financial condition and results of operati
330、ons,as well as the trading prices of our ADSs,Shares and/or other securities.”Furthermore,if the PRC government determines that the contractual arrangements constituting part of the VIE structure adopted by us do not comply with PRC regulations,or if these regulations change or are interpreted diffe
331、rently in the future,our securities may decline in value or become worthless if the determinations,changes,or interpretations result in our inability to assert contractual control over the assets of our consolidated subsidiaries and the VIEs in China that conduct a significant portion of our busines
332、s operations.In addition,there are substantial uncertainties as to whether the VIE structure adopted by us may be deemed as a method of foreign investment in the future.If the VIE structure adopted by us were to be deemed as a method of foreign investment under any future laws,regulations and rules,
333、and if any of our business operations were to fall under the“Negative List”for foreign investment,we would need to take further actions in order to comply with these laws,regulations and rules,which may materially and adversely affect our current corporate structure,business,financial condition and results of operations.See“Risk Factors Risks Related to Our Corporate Structure Substantial uncertai