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1、Fiscal Year 2024 Interim ReportNYSE:BABA HKEX:9988(HKD Counter)89988(RMB Counter)1ALIBABA GROUP HOLDING LIMITED阿里巴巴集團控股有限公司INTERIM REPORTFOR THE SIX MONTHS ENDED SEPTEMBER 30,2023EXPLANATORY NOTESAlibaba Group Holding Limited(“Alibaba,”“we,”“our,”or“us”)prepared this interim report for the first six

2、 months of its fiscal year ending March 31,2024(the“Interim Report”)pursuant to Rule 13.48(1)of the Hong Kong Listing Rules.As an issuer listed on the Hong Kong Stock Exchange under Chapter 19C of the Hong Kong Listing Rules,we are exempted from the contents requirements in respect of interim report

3、s under Appendix 16 of the Hong Kong Listing Rules.For more information about our business and related risks,please refer to our annual report for the fiscal year ended March 31,2023(the“Annual Report”)published on the website of the Hong Kong Stock Exchange on July 21,2023.Please note that the info

4、rmation contained in the Annual Report is up to date as of the date of the Annual Report,and we do not undertake any obligation to update the Annual Report,except as required under applicable law.Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Annual Rep

5、ort.This Interim Report contains translations of certain Renminbi(“RMB”)amounts into U.S.dollars(“US$”)and Hong Kong dollars(“HK$”)for the convenience of the reader.Unless otherwise stated,all translations of RMB into US$were made at RMB7.2960 to US$1.00,the exchange rate on September 29,2023 as set

6、 forth in the H.10 statistical release of the Federal Reserve Board,and all translations of RMB into HK$were made at RMB0.91763 to HK$1.00,the middle rate on September 28,2023 as published by the Peoples Bank of China.The percentages stated in this Interim Report are calculated based on the RMB amou

7、nts and there may be minor differences due to rounding.2FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED SEPTEMBER 30,2023 Revenue was RMB458,946 million(US$62,904 million),an increase of 11%year-over-year.Income from operations was RMB76,074 million(US$10,427 million),an increase of 52%year-over-year.

8、Excluding the reversal of share-based compensation expense of RMB6,901 million(US$946 million)as discussed in“Six Months Ended September Other Financial Results”below,income from operations would have increased by 38%year-over-year,primarily contributed by revenue growth and increase in operating ef

9、ficiency.Adjusted EBITDA,a non-GAAP measurement,increased 20%year-over-year to RMB101,289 million(US$13,883 million).Adjusted EBITA,a non-GAAP measurement,increased 25%year-over-year to RMB88,216 million(US$12,091 million).Net income attributable to ordinary shareholders was RMB62,038 million(US$8,5

10、03 million).Net income was RMB59,696 million(US$8,182 million),compared to net loss of RMB2,169 million in the same period of 2022,primarily attributable to a decrease in a net fair value loss of our equity investments in publicly-traded companies and an increase in income from operations.We exclude

11、d net gains or losses arising from the changes in fair value of our investments from our non-GAAP measurements.Non-GAAP net income was RMB85,110 million(US$11,665 million),an increase of 33%year-over-year.Diluted earnings per ADS was RMB24.08(US$3.30)and diluted earnings per share was RMB3.01(US$0.4

12、1 or HK$3.28).Non-GAAP diluted earnings per ADS was RMB33.00(US$4.52)and non-GAAP diluted earnings per share was RMB4.13(US$0.57 or HK$4.50),both of which increased by 34%year-over-year.Net cash provided by operating activities was RMB94,537 million(US$12,957 million).Free cash flow was RMB84,309 mi

13、llion(US$11,556 million),an increase of 46%compared to RMB57,882 million in the same period of 2022.The year-over-year increase reflected an increase in profitability and a decrease in capital expenditure.Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end o

14、f this Interim Report.3SIX MONTHS ENDED SEPTEMBER SUMMARY FINANCIAL RESULTSSix months ended September 30,20222023RMBRMBUS$YoY%Change(in millions,except percentages and per share amounts)Revenue412,731458,94662,90411%Income from operations50,08076,07410,42752%(2)Operating margin12%17%Adjusted EBITDA(

15、1)84,425101,28913,88320%(3)Adjusted EBITDA margin(1)20%22%Adjusted EBITA(1)70,58388,21612,09125%(3)Adjusted EBITA margin(1)17%19%Net(loss)income(2,169)(4)59,696(4)8,182N/ANet income attributable to ordinary shareholders2,17862,0388,5032748%(4)Non-GAAP net income(1)64,07285,11011,66533%(3)Diluted ear

16、nings per share(5)0.103.010.412849%(4)(6)Diluted earnings per ADS(5)0.8224.083.302849%(4)(6)Non-GAAP diluted earnings per share(1)(5)3.084.130.5734%(3)(6)Non-GAAP diluted earnings per ADS(1)(5)24.6433.004.5234%(3)(6)(1)See the sections entitled“Non-GAAP Financial Measures”and“Reconciliations of Non-

17、GAAP Measures to the Nearest Comparable U.S.GAAP Measures”for more information about the non-GAAP measures referred to within this Interim Report.(2)Excluding the reversal of share-based compensation expense of RMB6,901 million(US$946 million)as discussed in“Six Months Ended September Other Financia

18、l Results”below,our income from operations would have increased by 38%year-over-year,primarily contributed by revenue growth and increase in operating efficiency.Please refer to“Six Months Ended September Other Financial Results”section below for details.(3)The year-over-year increases were primaril

19、y contributed by revenue growth and improved operating efficiency.(4)The year-over-year change was primarily attributable to a decrease in net fair value loss of our equity investments in publicly-traded companies and an increase in income from operations.(5)Each ADS represents eight ordinary shares

20、.(6)The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.4SIX MONTHS ENDED SEPTEMBER SEGMENT RESULTSRevenue for the six months ended September 30,202

21、3 was RMB458,946 million(US$62,904 million),an increase of 11%year-over-year compared to RMB412,731 million in the same period of 2022.Starting from the quarter ended June 30,2023,we have implemented a new organizational structure which includes six major business groups and various other businesses

22、(the“Reorganization”).Our segment reporting has been updated to reflect our Reorganization and how our chief operating decision maker(“CODM”)review information under our new structure.The following table sets forth a breakdown of our revenue by segment for the periods indicated(1):Six months ended S

23、eptember 30,20222023RMBRMBUS$YoY%Change(in millions,except percentages)Taobao and Tmall Group:China commerce retail Customer management139,302148,32220,3296%Direct sales and others(2)47,55754,0667,41014%186,859202,38827,7398%China commerce wholesale9,39310,2191,4019%Total Taobao and Tmall Group196,2

24、52212,60729,1408%Alibaba International Digital Commerce Group:International commerce retail21,73236,1164,95066%International commerce wholesale10,03510,5181,4425%Total Alibaba International Digital Commerce Group31,76746,6346,39247%Local Services Group24,51230,0144,11422%Cainiao Smart Logistics Netw

25、ork Limited35,57445,9876,30329%Cloud Intelligence Group51,39152,7137,2253%Digital Media and Entertainment Group9,19411,1601,53021%All others(3)93,47893,85012,8620%Total segment revenue442,168492,96567,56611%Unallocated40952672Inter-segment elimination(29,846)(34,545)(4,734)Consolidated revenue412,73

26、1458,94662,90411%(1)During the six months ended September 30,2023,our segment reporting has been updated to reflect our Reorganization and the reclassification of the revenue of our DingTalk business,which was previously reported under Cloud Intelligence Group to All others,the purpose of which was

27、to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness.Our CODM started to review information under a new reporting structure,and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance.Comparative

28、 figures were reclassified to conform to this presentation.5(2)Direct sales and others revenue under Taobao and Tmall Group primarily represents our direct sales businesses,including Tmall Supermarket,Tmall Global and other direct sales businesses,where revenue and cost of inventory are recorded on

29、a gross basis.(3)All others include Sun Art,Freshippo,Alibaba Health,Lingxi Games,Intime,Intelligent Information Platform(which mainly consists of UCWeb and Quark businesses),Fliggy,DingTalk(previously reported under Cloud Intelligence Group segment)and other businesses.The majority of revenue withi

30、n All others consist of direct sales revenue,which is recorded on a gross basis.The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated(1):Six months ended September 30,20222023RMBRMBUS$YoY%Change(4)(in millions,except percentages)Taobao and Tmall Group9

31、0,85496,39613,2126%Alibaba International Digital Commerce Group(2,128)(804)(110)62%Local Services Group(6,162)(4,546)(623)26%Cainiao Smart Logistics Network Limited(60)1,783244N/ACloud Intelligence Group1,8452,32531926%Digital Media and Entertainment Group(1,269)(138)(19)89%All others(2)(5,835)(3,17

32、0)(435)46%Total segment adjusted EBITA77,24591,84612,58819%Unallocated(3)(5,606)(2,482)(340)Inter-segment elimination(1,056)(1,148)(157)Consolidated adjusted EBITA70,58388,21612,09125%Less:Share-based compensation expense(14,512)(5,201)(713)Less:Amortization of intangible assets(5,480)(4,910)(673)Le

33、ss:Impairment of goodwill(2,031)(278)Less:Equity-settled donation expense(511)Income from operations50,08076,07410,42752%(1)During the six months ended September 30,2023,our segment reporting has been updated to reflect our Reorganization and the reclassification of the result of our DingTalk busine

34、ss,which was previously reported under Cloud Intelligence Group to All others,the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness.Our CODM started to review information under a new reporting structure,and segment reporting has been upd

35、ated to conform to this change as well as the way we manage and monitor segment performance.Comparative figures were reclassified to conform to this presentation.(2)All others include Sun Art,Freshippo,Alibaba Health,Lingxi Games,Intime,Intelligent Information Platform(which mainly consists of UCWeb

36、 and Quark businesses),Fliggy,DingTalk(previously reported under Cloud Intelligence Group segment)and other businesses.(3)Unallocated primarily relate to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.(4)For a more intuitive

37、presentation,widening of loss in YoY%is shown in terms of negative growth rate,and narrowing of loss in YoY%is shown in terms of positive growth rate.6Taobao and Tmall Group(i)Segment revenue China Commerce Retail BusinessRevenue from our China commerce retail business for the six months ended Septe

38、mber 30,2023 was RMB202,388 million(US$27,739 million),an increase of 8%compared to RMB186,859 million for the same period of 2022.Customer management revenue increased 6%year-over-year,primarily due to the increase in merchants willingness to invest in advertising and the slight increase in online

39、GMV generated on Taobao and Tmall,excluding unpaid order.Direct sales and others revenue under China commerce retail business for the six months ended September 30,2023 was RMB54,066 million(US$7,410 million),achieving year-over-year growth of 14%compared to RMB47,557 million for the same period of

40、2022.The increase was primarily due to strong sales in consumer electronics and appliances category.China Commerce Wholesale BusinessRevenue from our China commerce wholesale business for the six months ended September 30,2023 was RMB10,219 million(US$1,401 million),an increase of 9%compared to RMB9

41、,393 million for the same period of 2022.The increase was primarily due to an increase in revenue from value-added services provided to paying members.(ii)Segment adjusted EBITATaobao and Tmall Group adjusted EBITA for the six months ended September 30,2023 was RMB96,396 million(US$13,212 million),a

42、n increase of 6%compared to RMB90,854 million for the same period of 2022.The increase was primarily due to narrowing losses in certain businesses and increase in revenue from customer management service,partly offset by the increase in investment in user acquisition and retention,as well as in cont

43、ent of Taobao app.Alibaba International Digital Commerce Group(i)Segment revenue International Commerce Retail BusinessRevenue from our International commerce retail business for the six months ended September 30,2023 was RMB36,116 million(US$4,950 million),an increase of 66%compared to RMB21,732 mi

44、llion for the same period of 2022.The increase in revenue was primarily due to strong combined order growth of AIDCs retail businesses driven by the solid performance of all major retail platforms,the revenue contribution from AliExpress Choice,a new model launched in early 2023,and improvements in

45、monetization.Certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi,AIDCs revenue is affected by exchange rate fluctuations.7 International Commerce Wholesale BusinessRevenue from our International commerce wholesale business for the six

46、 months ended September 30,2023 was RMB10,518 million(US$1,442 million),an increase of 5%compared to RMB10,035 million for the same period of 2022.The increase was primarily due to an increase in revenue generated by cross-border related value-added services.(ii)Segment adjusted EBITAAlibaba Interna

47、tional Digital Commerce Group adjusted EBITA was a loss of RMB804 million(US$110 million)for the six months ended September 30,2023,compared to a loss of RMB2,128 million for the same period of 2022.Losses significantly narrowed year-over-year primarily because of improved margins of Trendyol and La

48、zada,partly offset by the increase in investment in new business,such as Miravia,and AliExpress Choice.Trendyol continued to be profitable during the period,mainly due to improvements in monetization and operating efficiency.Lazada reduced loss mainly due to improvement in monetization.Local Service

49、s Group(i)Segment revenueRevenue from Local Services Group was RMB30,014 million(US$4,114 million)for the six months ended September 30,2023,an increase of 22%compared to RMB24,512 million for the same period of 2022,primarily due to the strong growth in both Ele.me and Amap businesses.(ii)Segment a

50、djusted EBITALocal Services Group adjusted EBITA was a loss of RMB4,546 million(US$623 million)for the six months ended September 30,2023,compared to a loss of RMB6,162 million for the same period of 2022,primarily due to the continued narrowing of loss from our“To-Home”business driven by Ele.mes in

51、creasing scale and improved unit economics per order.Cainiao Smart Logistics Network Limited(i)Segment revenueRevenue from Cainiao Smart Logistics Network Limited was RMB45,987 million(US$6,303 million)for the six months ended September 30,2023,an increase of 29%compared to RMB35,574 million for the

52、 same period of 2022,primarily contributed by the increase in revenue from cross-border fulfillment solutions and domestic consumer logistics services.(ii)Segment adjusted EBITACainiao Smart Logistics Network Limited adjusted EBITA was a profit of RMB1,783 million(US$244 million)for the six months e

53、nded September 30,2023,compared to a loss of RMB60 million for the same period of 2022.Profitability turned positive year-over-year primarily because of improved operating results from cross-border fulfillment solutions,domestic logistics services,as well as technology and other services.8Cloud Inte

54、lligence Group(i)Segment revenueRevenue from Cloud Intelligence Group was RMB52,713 million(US$7,225 million)for the six months ended September 30,2023,an increase of 3%compared to RMB51,391 million for the same period of 2022.Year-over-year revenue growth was mainly driven by Alibaba-consolidated b

55、usinesses.Revenue excluding Alibaba-consolidated businesses slightly increased year-over-year,primarily due to the increase in revenue from our public cloud products and services,which was partly offset by the decrease in revenue from project-based contracts that are of low margins,as a result of ou

56、r continued effort to improve revenue quality.(ii)Segment adjusted EBITACloud Intelligence Group adjusted EBITA for the six months ended September 30,2023 was RMB2,325 million(US$319 million),an increase of 26%compared to RMB1,845 million for the same period of 2022,primarily due to improving produc

57、t mix and operating efficiency.Digital Media and Entertainment Group(i)Segment revenueRevenue from Digital Media and Entertainment Group for the six months ended September 30,2023 was RMB11,160 million(US$1,530 million),an increase of 21%compared to RMB9,194 million for the same period of 2022,prima

58、rily driven by the strong revenue growth of offline entertainment businesses of Damai and Alibaba Pictures.(ii)Segment adjusted EBITADigital Media and Entertainment Group adjusted EBITA for the six months ended September 30,2023 was a loss of RMB138 million(US$19 million),compared to a loss of RMB1,

59、269 million for the same period of 2022.The improved adjusted EBITA was mainly due to the increase in profitability of Damai and Alibaba Pictures.All Others(i)Segment revenueRevenue from All others segment for the six months ended September 30,2023 was RMB93,850 million(US$12,862 million),remained s

60、table compared to RMB93,478 million for the same period of 2022.The year-over-year revenue growth was contributed by Alibaba Health,Freshippo,Fliggy,Intelligent Information Platform,partly offset by the decrease in revenue from Sun Art due to decrease in ticket size resulting from the decrease in co

61、nsumer stockpiling behavior compared to the same period of last year.(ii)Segment adjusted EBITAAdjusted EBITA from All others segment for the six months ended September 30,2023 was a loss of RMB3,170 million(US$435 million),compared to a loss of RMB5,835 million for the same period of 2022,primarily

62、 due to improved operating results from Freshippo,DingTalk,Lingxi Games and Fliggy.9SIX MONTHS ENDED SEPTEMBER OTHER FINANCIAL RESULTSCosts and ExpensesThe following tables set forth a breakdown of our costs and expenses,share-based compensation expense,and costs and expenses excluding share-based c

63、ompensation expense by function for the periods indicated.Six months ended September 30,%ofRevenueYoY change20222023RMB%ofRevenueRMBUS$%ofRevenue(in millions,except percentages)Costs and expenses:Cost of revenue260,86764%282,01138,65362%(2)%Product development expenses29,3437%24,6833,3835%(2)%Sales

64、and marketing expenses47,93711%52,5327,20011%0%General and administrative expenses19,0245%16,7052,2904%(1)%Amortization of intangible assets5,4801%4,9106731%0%Impairment of goodwill2,0312780%0%Total costs and expenses362,65188%382,87252,47783%(5)%Share-based compensation expense:Cost of revenue2,815

65、1%9371280%(1)%Product development expenses6,8212%2,7643791%(1)%Sales and marketing expenses1,7710%725990%0%General and administrative expenses3,1051%7751070%(1)%Total share-based compensation expense14,5124%5,2017131%(3)%Costs and expenses excluding share-based compensation expense:Cost of revenue25

66、8,05263%281,07438,52562%(1)%Product development expenses22,5225%21,9193,0044%(1)%Sales and marketing expenses46,16611%51,8077,10111%0%General and administrative expenses15,9194%15,9302,1834%0%Amortization of intangible assets5,4801%4,9106731%0%Impairment of goodwill2,0312780%0%Total costs and expens

67、es excluding share-based compensation expense348,13984%377,67151,76482%(2)%10Cost of revenue Cost of revenue for the six months ended September 30,2023 was RMB282,011 million(US$38,653 million),or 62%of revenue,compared to RMB260,867 million,or 64%of revenue,for the same period of 2022.Without the e

68、ffect of share-based compensation expense,cost of revenue as a percentage of revenue would have decreased from 63%for the six months ended September 30,2022 to 62%for the six months ended September 30,2023.Product development expenses Product development expenses for the six months ended September 3

69、0,2023 were RMB24,683 million(US$3,383 million),or 5%of revenue,compared to RMB29,343 million,or 7%of revenue,for the same period of 2022.Without the effect of share-based compensation expense,product development expenses as a percentage of revenue would have decreased from 5%for the six months ende

70、d September 30,2022 to 4%for the six months ended September 30,2023.Sales and marketing expenses Sales and marketing expenses for the six months ended September 30,2023 were RMB52,532 million(US$7,200 million),or 11%of revenue,compared to RMB47,937 million,or 11%of revenue,for the same period of 202

71、2.Without the effect of share-based compensation expense,sales and marketing expenses as a percentage of revenue would have remained stable at 11%for the six months ended September 30,2023 compared to the same period of 2022.General and administrative expenses General and administrative expenses for

72、 the six months ended September 30,2023 were RMB16,705 million(US$2,290 million),or 4%of revenue,compared to RMB19,024 million,or 5%of revenue,for the same period of 2022.Without the effect of share-based compensation expense,general and administrative expenses as a percentage of revenue would have

73、remained stable at 4%for the six months ended September 30,2023 compared to the same period of 2022.Share-based compensation expense Total share-based compensation expense included in the cost and expense items above for the six months ended September 30,2023 was RMB5,201 million(US$713 million),com

74、pared to RMB14,512 million for the same period of 2022.The following table sets forth our analysis of share-based compensation expense for the periods indicated by type of share-based awards:Six months ended September 30,20222023RMB%ofRevenueRMBUS$%ofRevenueYoY%Change(in millions,except percentages)

75、By type of awards:Alibaba Group share-based awards(1)12,0873%9,1071,2482%(25)%Ant Group share-based awards(2)1880%(6,749)(925)(2)%N/AOthers(3)2,2371%2,8433901%27%Total share-based compensation expense14,5124%5,2017131%(64)%(1)This represents Alibaba Group share-based awards granted to our employees.

76、(2)This represents Ant Group share-based awards granted to our employees,which is subject to mark-to-market accounting treatment.(3)This represents share-based awards of our subsidiaries.11Share-based compensation expense related to Alibaba Group share-based awards decreased in the six months ended

77、September 30,2023 compared to the same period of 2022.This decrease was primarily due to the general decrease in the average fair market value of the awards granted.Share-based compensation expense related to Ant Group reflected a reversal of share-based compensation expense of RMB6,901 million(US$9

78、46 million)recorded in the six months ended September 30,2023.This is the result of a mark-to-market adjustment during the period relating to Ant Group share-based awards granted to our employees because of a decrease in the value of Ant Group.We expect that our share-based compensation expense will

79、 continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.Amortization of intangible assets Amortization of intangible assets for the six months ended September 30,2023 was RMB4,910 million(US$673 million),a decrease of 10%from R

80、MB5,480 million for the same period of 2022.Impairment of goodwill Impairment of goodwill of RMB2,031 million(US$278 million)was recorded in the six months ended September 30,2023 because the carrying value of a reporting unit within All others segment exceeded its fair value.Income from operations

81、and operating marginIncome from operations for the six months ended September 30,2023 was RMB76,074 million(US$10,427 million),or 17%of revenue,an increase of 52%compared to RMB50,080 million,or 12%of revenue,for the same period of 2022,primarily contributed by revenue growth,increase in operating e

82、fficiency and the reversal of share-based compensation expense of RMB6,901 million(US$946 million)related to the mark-to-market adjustment during the period relating to Ant Group share-based awards granted to our employees.We excluded share-based compensation expense from our non-GAAP measurements.E

83、xcluding the reversal of share-based compensation expense,our income from operations would have increased by 38%year-over-year,from RMB50,080 million in the six months ended September 30,2022 to RMB69,173 million(US$9,481 million)in the six months ended September 30,2023.Adjusted EBITDA and Adjusted

84、 EBITAAdjusted EBITDA increased 20%year-over-year to RMB101,289 million(US$13,883 million)for the six months ended September 30,2023,compared to RMB84,425 million for the same period of 2022.Adjusted EBITA increased 25%year-over-year to RMB88,216 million(US$12,091 million)for the six months ended Se

85、ptember 30,2023,compared to RMB70,583 million for the same period of 2022.The year-over-year increase in adjusted EBITA was primarily contributed by revenue growth and improved operating efficiency.A reconciliation of net income(loss)to adjusted EBITDA and adjusted EBITA is included at the end of th

86、is Interim Report.12Adjusted EBITA by segmentAdjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled“Six Months Ended September Segment Results”above.Interest and investment income,netInterest and investment income,net f

87、or the six months ended September 30,2023 was a loss of RMB762 million(US$104 million),compared to a loss of RMB37,083 million for the same period of 2022,primarily due to the decrease in net fair value loss of our equity investments in publicly-traded companies during the six months ended September

88、 30,2023,compared to the same period of 2022.The fair value of these investments is determined based on the available market price on each measurement date.The extent of the overall decrease in market prices of our equity investments in publicly-traded companies during the six months ended September

89、 30,2023,is less than that of 2022.The above-mentioned gains and losses were excluded from our non-GAAP net income.Other income,netOther income,net for the six months ended September 30,2023 was RMB2,755 million(US$377 million),compared to RMB3,053 million for the same period of 2022.Income tax expe

90、nsesIncome tax expenses for the six months ended September 30,2023 were RMB11,819 million(US$1,620 million),compared to RMB7,971 million for the same period of 2022.Excluding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment of investments,as well as th

91、e deferred tax effects on basis differences arising from our equity method investees,our effective tax rate would have been 18%for the six months ended September 30,2023.13Share of results of equity method investeesShare of results of equity method investees for the six months ended September 30,202

92、3 was a loss of RMB2,914 million(US$399 million),compared to a loss of RMB7,616 million for the same period of 2022.The following table sets forth a breakdown of share of results of equity method investees for the periods indicated.Six months ended September 30,20222023RMBRMBUS$(in millions)Share of

93、 profit(loss)of equity method investees Ant Group6,1095,210714 Others(4,491)(1,648)(226)Impairment loss(7,189)(4,481)(614)Others(1)(2,045)(1,995)(273)Total(7,616)(2,914)(399)(1)“Others”mainly include basis differences arising from equity method investees,share-based compensation expense related to s

94、hare-based awards granted to employees of our equity method investees,as well as gain or loss arising from the deemed disposal of the equity method investees.We record our share of results of all equity method investees one quarter in arrears.The year-over-year decrease in share of profit of Ant Gro

95、up which reflected the share of a RMB7.07 billion fine on Ant Group imposed by PRC regulators announced in July 2023.The decrease in share of net losses of other equity method investees was mainly due to the overall improvement in financial performance of certain of our equity method investees.Durin

96、g the six months ended September 30,2023,Ant Group repurchased approximately 7%equity interest from its existing shareholders and the shares repurchased were allocated to the employee incentive plans of Ant Group.The number of shares held by us in Ant Group remains unchanged from legal perspective,o

97、ur equity interest in Ant Group on a fully diluted basis remains unchanged at 33%.For U.S.GAAP accounting purposes,we will take into consideration a proportionate share of equity interest held by the employee incentive plans of Ant Group to account for our share of results from our investment in Ant

98、 Group,subject to dilution as the equity interest under the employee incentive plans of Ant Group is transferred out.Net income(loss)and Non-GAAP net incomeOur net income for the six months ended September 30,2023 was RMB59,696 million(US$8,182 million),compared to net loss of RMB2,169 million for t

99、he same period of 2022,which was primarily attributable to a decrease in net fair value loss of our equity investments in publicly-traded companies and an increase in income from operations.14Excluding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment o

100、f investments and certain other items,non-GAAP net income for the six months ended September 30,2023 was RMB85,110 million(US$11,665 million),an increase of 33%compared to RMB64,072 million for the same period of 2022.A reconciliation of net income(loss)to non-GAAP net income is included at the end

101、of this Interim Report.Net income attributable to ordinary shareholdersNet income attributable to ordinary shareholders for the six months ended September 30,2023 was RMB62,038 million(US$8,503 million),an increase of 2748%compared to RMB2,178 million for the same period of 2022,which was primarily

102、attributable to a decrease in net fair value loss of our equity investments in publicly-traded companies and an increase in income from operations.Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/shareDiluted earnings per ADS for the six months ended September 30,2023 was RMB24.0

103、8(US$3.30)compared to RMB0.82 during the same period in 2022.Excluding share-based compensation expense,revaluation and disposal gains/losses of investments,impairment of investments and certain other items,non-GAAP diluted earnings per ADS for the six months ended September 30,2023 was RMB33.00(US$

104、4.52),an increase of 34%compared to RMB24.64 for the same period of 2022.Diluted earnings per share for the six months ended September 30,2023 was RMB3.01(US$0.41 or HK$3.28),an increase of 2849%compared to RMB0.10 for the same period of 2022.Excluding share-based compensation expense,revaluation an

105、d disposal gains/losses of investments,impairment of investments and certain other items,non-GAAP diluted earnings per share for the six months ended September 30,2023 was RMB4.13(US$0.57 or HK$4.50),an increase of 34%,compared to RMB3.08 for the same period of 2022.A reconciliation of diluted earni

106、ngs per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this Interim Report.Each ADS represents eight ordinary shares.Cash and cash equivalents,short-term investments and other treasury investmentsAs of September 30,2023,cash and cash equivalents,short-term investments

107、 and other treasury investments included in equity securities and other investments on the consolidated balance sheets,were RMB624,501 million(US$85,595 million),compared to RMB560,314 million as of March 31,2023.Other treasury investments mainly comprise of investments in fixed deposits and certifi

108、cates of deposits with original maturities over one year for treasury purposes.The increase in cash and cash equivalents,short-term investments and other treasury investments during the six months ended September 30,2023 was primarily due to free cash flow generated from operations of RMB84,309 mill

109、ion(US$11,556 million),effect of exchange rate changes of RMB14,247 million(US$1,953 million)mainly due to the appreciation of the U.S.dollar against Renminbi,and net cash provided by investment and acquisition activities of RMB4,789 million(US$656 million),partly offset by cash used in repurchase o

110、f ordinary shares of RMB34,025 million(US$4,664 million)and repayment of unsecured senior notes of US$700 million.15Net cash provided by operating activities and free cash flowFor the six months ended September 30,2023,net cash provided by operating activities was RMB94,537 million(US$12,957 million

111、),an increase of 17%compared to RMB80,981 million for the same period of 2022.Free cash flow,a non-GAAP measurement of liquidity for the six months ended September 30,2023,was RMB84,309 million(US$11,556 million),an increase of 46%compared to RMB57,882 million for the same period of 2022.The year-ov

112、er-year increase was primarily due to an increase in profitability and a decrease in capital expenditure.A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this Interim Report.Net cash used in investing activitiesFor the six months ended Septemb

113、er 30,2023,net cash used in investing activities of RMB11,166 million(US$1,530 million)primarily reflected(i)an increase in other treasury investments by RMB41,939 million(US$5,748 million),(ii)capital expenditure of RMB12,077 million(US$1,655 million)and(iii)cash outflow of RMB5,483 million(US$752

114、million)for investment and acquisition activities.These cash outflows were partially offset by a decrease in short-term investments by RMB37,530 million(US$5,144 million)and cash inflow of RMB10,272 million(US$1,408 million)from disposal of investments.Net cash used in financing activitiesFor the si

115、x months ended September 30,2023,net cash used in financing activities of RMB37,018 million(US$5,074 million)primarily reflected cash used in repurchase of ordinary shares of RMB34,025 million(US$4,664 million)and repayment of unsecured senior notes of US$700 million.EmployeesAs of September 30,2023

116、,we had a total of 224,955 employees,compared to 235,216 as of March 31,2023.Cash dividendAs we announced on November 16,2023,an annual cash dividend for fiscal year 2023 has been approved by our board of directors in the amount of US$0.125 per ordinary share or US$1.00 per ADS,payable in U.S.dollar

117、s,to holders of ordinary shares and holders of ADSs,as of the close of business on December 21,2023,Hong Kong Time and New York Time,respectively.The aggregate amount of the dividend will be approximately US$2.5 billion.16SAFE HARBOR STATEMENTSThis Interim Report contains forward-looking statements.

118、These statements are made under the“safe harbor”provisions of the U.S.Private Securities Litigation Reform Act of 1995.These forward-looking statements can be identified by terminology such as“may,”“will,”“expect,”“anticipate,”“future,”“aim,”“estimate,”“intend,”“seek,”“plan,”“believe,”“potential,”“c

119、ontinue,”“ongoing,”“target,”“guidance,”“is/are likely to”and similar statements.In addition,statements that are not historical facts,including statements about Alibaba Groups new organizational and governance structure,Alibabas strategies and business plans,Alibabas beliefs,expectations and guidance

120、 regarding the growth of its business,revenue and return on investments,the business outlook and quotations from management in this Interim Report,as well as Alibabas strategic and operational plans,are or contain forward-looking statements.Alibaba may also make forward-looking statements in its per

121、iodic reports to the U.S.Securities and Exchange Commission(the“SEC”),in announcements made on the website of The Stock Exchange of Hong Kong Limited(the“Hong Kong Stock Exchange”),in press releases and other written materials and in oral statements made by its officers,directors or employees to thi

122、rd parties.Forward-looking statements involve inherent risks and uncertainties.A number of factors could cause actual results to differ materially from those contained in any forward-looking statement.These factors include but are not limited to the following:Alibabas corporate structure,including t

123、he VIE structure it uses to operate certain businesses in the PRC;the implementation of Alibaba Groups new organizational and governance structure and the execution of spin-off or capital raising plans of its subsidiaries;Alibabas ability to maintain the trusted status of its ecosystem;Alibabas abil

124、ity to compete,innovate and maintain or grow its revenue or business,including expanding its international and cross-border businesses and operations and managing a large and complex organization;risks associated with sustained investments in Alibabas businesses;fluctuations in general economic and

125、business conditions in China and globally;uncertainties arising from competition among countries and geopolitical tensions,including protectionist or national security policies and export control,economic or trade sanctions;risks associated with Alibabas acquisitions,investments and alliances;uncert

126、ainties and risks associated with a broad range of complex laws and regulations(including in the areas of data security and privacy protection,anti-monopoly and anti-unfair competition,content regulation,consumer protection and regulation of Internet platforms)in the PRC and globally;cybersecurity r

127、isks;impact of the COVID-19 pandemic;and assumptions underlying or related to any of the foregoing.Further information regarding these and other risks is included in Alibabas filings with the SEC and announcements on the website of the Hong Kong Stock Exchange.All information provided in this Interi

128、m Report is as of the date of this Interim Report and are based on assumptions that we believe to be reasonable as of this date,and Alibaba does not undertake any obligation to update any forward-looking statement,except as required under applicable law.NON-GAAP FINANCIAL MEASURESTo supplement our c

129、onsolidated financial statements,which are prepared and presented in accordance with GAAP,we use the following non-GAAP financial measures:for our consolidated results,adjusted EBITDA(including adjusted EBITDA margin),adjusted EBITA(including adjusted EBITA margin),non-GAAP net income,non-GAAP dilut

130、ed earnings per share/ADS and free cash flow.For more information on these non-GAAP financial measures,please refer to the table captioned“Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S.GAAP Measures”in this Interim Report.17We believe that adjusted EBITDA,adjusted EBITA,non-GAAP

131、 net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations,net income and diluted earnings per share/ADS.We believe that these non-GAAP

132、 measures provide useful information about our core operating results,enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.We present three d

133、ifferent income measures,namely adjusted EBITDA,adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.We consider free cash flow to be a liquidity measure that provides useful information to management and invest

134、ors about the amount of cash generated by our business that can be used for strategic corporate transactions,including investing in our new business initiatives,making strategic investments and acquisitions and strengthening our balance sheet.Adjusted EBITDA,adjusted EBITA,non-GAAP net income,non-GA

135、AP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations,net income,diluted earnings per share/ADS,cash flows or any other measure of performance or as an indicator of our operating performance.These non-GAAP

136、financial measures presented here do not have standardized meanings prescribed by U.S.GAAP and may not be comparable to similarly titled measures presented by other companies.Other companies may calculate similarly titled measures differently,limiting their usefulness as comparative measures to our

137、data.Adjusted EBITDA represents net income before(i)interest and investment income,net,interest expense,other income,net,income tax expenses and share of results of equity method investees,(ii)certain non-cash expenses,consisting of share-based compensation expense,amortization of intangible assets,

138、depreciation and impairment of property and equipment,and operating lease cost relating to land use rights,impairment of goodwill,as well as equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented.Adjusted EBITA represents

139、 net income before(i)interest and investment income,net,interest expense,other income,net,income tax expenses and share of results of equity method investees,(ii)certain non-cash expenses,consisting of share-based compensation expense,amortization of intangible assets,impairment of goodwill and equi

140、ty-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented.Non-GAAP net income represents net income before share-based compensation expense,amortization of intangible assets,impairment of goodwill and investments,gain or loss on

141、 deemed disposals/disposals/revaluation of investments,equity-settled donation expense and others,as adjusted for the tax effects.Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary sh

142、ares for computing non-GAAP diluted earnings per share on a diluted basis.Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.18Free cash flow represents net cash provided by operating activities as presented in our con

143、solidated cash flow statement less purchases of property and equipment(excluding acquisition of land use rights and construction in progress relating to office campuses)and intangible assets(excluding those acquired through acquisitions),as well as adjustments to exclude from net cash provided by op

144、erating activities the buyer protection fund deposits from merchants on our marketplaces.We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations.We exclude“acquisition of land use rights a

145、nd construction in progress relating to office campuses”because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations.We also exclude buyer protection fund deposits from merchants on our marketplaces be

146、cause these deposits are restricted for the purpose of compensating buyers for claims against merchants.The table captioned“Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S.GAAP Measures”in this Interim Report have more details on the non-GAAP financial measures that are most direc

147、tly comparable to GAAP financial measures and the related reconciliations between these financial measures.19ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED INCOME STATEMENTSSix months ended September 30,20222023RMBRMBUS$(in millions,except per share data)Revenue412,731458,94662,904Cost of reven

148、ue(260,867)(282,011)(38,653)Product development expenses(29,343)(24,683)(3,383)Sales and marketing expenses(47,937)(52,532)(7,200)General and administrative expenses(19,024)(16,705)(2,290)Amortization of intangible assets(5,480)(4,910)(673)Impairment of goodwill(2,031)(278)Income from operations50,0

149、8076,07410,427Interest and investment income,net(37,083)(762)(104)Interest expense(2,632)(3,638)(499)Other income,net3,0532,755377Income before income tax and share of results of equity method investees13,41874,42910,201Income tax expenses(7,971)(11,819)(1,620)Share of results of equity method inves

150、tees(7,616)(2,914)(399)Net(loss)income(2,169)59,6968,182Net loss attributable to noncontrolling interests4,3952,393328Net income attributable to Alibaba Group Holding Limited2,22662,0898,510Accretion of mezzanine equity(48)(51)(7)Net income attributable to ordinary shareholders2,17862,0388,503Earnin

151、gs per share attributable to ordinary shareholders(1)Basic0.103.040.42Diluted0.103.010.41Earnings per ADS attributable to ordinary shareholders(1)Basic0.8224.313.33Diluted0.8224.083.30Weighted average number of shares used in calculating earnings per ordinary share(million shares)(1)Basic21,23120,41

152、4Diluted21,32920,567(1)Each ADS represents eight ordinary shares.20ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETSAs of March 31,As of September 30,20232023RMBRMBUS$(in millions)AssetsCurrent assets:Cash and cash equivalents193,086243,71633,404 Short-term investments326,492296,793

153、40,679 Restricted cash and escrow receivables36,42437,2795,110 Equity securities and other investments4,89233,8514,640 Prepayments,receivables and other assets137,072146,31720,054Total current assets697,966757,956103,887Equity securities and other investments245,737247,82033,966Prepayments,receivabl

154、es and other assets110,926109,78415,047Investments in equity method investees207,380208,28928,548Property and equipment,net176,031179,43624,594Intangible assets,net46,91341,5925,701Goodwill268,091266,71336,556Total assets1,753,0441,811,590248,299Liabilities,Mezzanine Equity and Shareholders EquityCu

155、rrent liabilities:Current bank borrowings7,4668,1871,122 Current unsecured senior notes4,800 Income tax payable12,5438,5071,166 Accrued expenses,accounts payable and other liabilities275,950286,60439,283 Merchant deposits13,29712,6031,727 Deferred revenue and customer advances71,29573,90910,130Total

156、 current liabilities385,351389,81053,42821ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETS(CONTINUED)As of March 31,As of September 30,20232023RMBRMBUS$(in millions)Deferred revenue3,5603,771517Deferred tax liabilities61,74557,6927,907Non-current bank borrowings52,02355,1167,554Non

157、-current unsecured senior notes97,065103,44114,178Other liabilities30,37931,7144,347Total liabilities630,123641,54487,931Commitments and contingenciesMezzanine equity9,85810,3281,415Shareholders equity:Ordinary shares11 Additional paid-in capital416,880407,74855,887 Treasury shares at cost(28,763)(2

158、8,555)(3,914)Subscription receivables(49)Statutory reserves12,97714,4161,976 Accumulated other comprehensive (loss)income(10,417)5,809796 Retained earnings599,028635,66387,125Total shareholders equity989,6571,035,082141,870Noncontrolling interests123,406124,63617,083Total equity1,113,0631,159,718158

159、,953Total liabilities,mezzanine equity and equity1,753,0441,811,590248,29922ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSSix months ended September 30,20222023RMBRMBUS$(in millions)Net cash provided by operating activities80,98194,53712,957Net cash used in in

160、vesting activities(35,755)(11,166)(1,530)Net cash used in financing activities(32,492)(37,018)(5,074)Effect of exchange rate changes on cash and cash equivalents,restricted cash and escrow receivables6,7635,132704Increase in cash and cash equivalents,restricted cash and escrow receivables19,49751,48

161、57,057Cash and cash equivalents,restricted cash and escrow receivables at beginning of period227,353229,51031,457Cash and cash equivalents,restricted cash and escrow receivables at end of period246,850280,99538,51423ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COM

162、PARABLE U.S.GAAP MEASURESThe table below sets forth a reconciliation of our net(loss)income to adjusted EBITA and adjusted EBITDA for the periods indicated:Six months ended September 30,20222023RMBRMBUS$(in millions)Net(loss)income(2,169)59,6968,182Adjustments to reconcile net(loss)income to adjuste

163、d EBITA and adjusted EBITDA:Interest and investment income,net37,083762104 Interest expense2,6323,638499 Other income,net(3,053)(2,755)(377)Income tax expenses7,97111,8191,620 Share of results of equity method investees7,6162,914399Income from operations50,08076,07410,427Share-based compensation exp

164、ense14,5125,201713Amortization of intangible assets5,4804,910673Impairment of goodwill2,031278Equity-settled donation expense511Adjusted EBITA70,58388,21612,091Depreciation and impairment of property and equipment,and operating lease cost relating to land use rights13,84213,0731,792Adjusted EBITDA84

165、,425101,28913,88324ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of our net(loss)income to non-GAAP net income for the periods indicated:Six months ended September 30,20222023RMBRMBU

166、S$(in millions)Net(loss)income(2,169)59,6968,182Adjustments to reconcile net(loss)income to non-GAAP net income:Share-based compensation expense14,5125,201713 Amortization of intangible assets5,4804,910673 Impairment of goodwill and investments13,13411,8731,627 Loss on deemed disposals/disposals/rev

167、aluation of investments and others36,8487,3071,001 Equity-settled donation expense511 Tax effects(1)(4,244)(3,877)(531)Non-GAAP net income64,07285,11011,665(1)Tax effects primarily comprise tax effects relating to share-based compensation expense,amortization of intangible assets and certain gains a

168、nd losses from investments,and others.25ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods

169、 indicated:Six months ended September 30,20222023RMBRMBUS$(in millions,except per share data)Net income attributable to ordinary shareholders basic2,17862,0388,503Dilution effect on earnings arising from share-based awards operated by equity method investees and subsidiaries(1)(134)(18)Net income at

170、tributable to ordinary shareholders diluted2,17761,9048,485Non-GAAP adjustments to net income attributable to ordinary shareholders(1)63,52522,9493,145Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS65,70284,85311,630Weighted average num

171、ber of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS(million shares)(2)21,32920,567Diluted earnings per share(2)(3)0.103.010.41Non-GAAP diluted earnings per share(2)(4)3.084.130.57Diluted earnings per ADS(2)(3)0.8224.083.30Non-GAAP diluted earnings per ADS(2)(4)24.6

172、433.004.52(1)See the table above for the reconciliation of net(loss)income to non-GAAP net income for more information of these non-GAAP adjustments.(2)Each ADS represents eight ordinary shares.(3)Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by

173、 the weighted average number of outstanding ordinary shares,on a diluted basis.Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.(4)Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable

174、to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share,on a diluted basis.Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.26

175、ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.GAAP MEASURES(CONTINUED)The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:Six months ended September 30,20222023RMBRMBUS$

176、(in millions)Net cash provided by operating activities80,98194,53712,957Less:Purchase of property and equipment(excluding land use rights and construction in progress relating to office campuses)(22,067)(10,119)(1,386)Less:Purchase of intangible assets(excluding those acquired through acquisitions)(

177、22)Less:Changes in the buyer protection fund deposits(1,010)(109)(15)Free cash flow57,88284,30911,55627ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDSThe consolidated financial statements are prepared in accordance with U.S.GAAP,which dif

178、fer in certain respects from International Financial Reporting Standards(“IFRS”).The effects of material differences in the financial position and financial performance of the Company as of and for the six months ended September 30,2023 between U.S.GAAP and IFRS(“Reconciliation between U.S.GAAP and

179、IFRS”)are as follows.PricewaterhouseCoopers,the auditor of the Company in Hong Kong,has performed a limited assurance engagement on the Reconciliation between U.S.GAAP and IFRS in accordance with International Standard on Assurance Engagements 3000(Revised)“Assurance Engagements Other than Audits or

180、 Reviews of Historical Financial Information”issued by the International Auditing and Assurance Standards Board.28ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDS(CONTINUED)Reconciliation of Consolidated Balance Sheets(Extract)As of March

181、31,2023Amounts as reported under U.S.GAAPConsolidationand businesscombinationsEquitysecuritieswithoutreadilydeterminablefair valueEquitymethodinvestmentsShare-basedawardsOperatingleasesRedeemablenoncontrollinginterests HyperinflationAmountsunder IFRS(i)(ii)(iii)(iv)(v)(vi)(vii)(in millions of RMB)Eq

182、uity securities and other investments245,7373,6095,537254,883Prepayments,receivables and other assets110,926(310)(482)(1,819)(1,758)712107,269Investments in equity method investees207,380(241)(2,303)204,836Property and equipment,net176,031353176,384Intangible assets,net46,913(2,541)43244,804Goodwill

183、268,091(47,033)2,400223,458Total assets1,753,044(50,125)3,6092,752(1,819)(1,758)3,8971,709,600Deferred tax liabilities61,745(920)4508461,359Other liabilities30,379(2)10,62741,004Total liabilities630,123(920)45084(2)10,627640,362Mezzanine equity9,858(9,858)Total shareholders equity989,657(9,198)2,860

184、2,668(1,819)(1,756)(1,832)1,560982,140Noncontrolling interests123,406(40,007)2991,0632,33787,098Total equity1,113,063(49,205)3,1592,668(1,819)(1,756)(769)3,8971,069,238Total liabilities,mezzanine equity and equity1,753,044(50,125)3,6092,752(1,819)(1,758)3,8971,709,60029ALIBABA GROUP HOLDING LIMITEDR

185、ECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDS(CONTINUED)Reconciliation of Consolidated Balance Sheets(Extract)(Continued)As of September 30,2023Amounts as reported under U.S.GAAPConsolidationand businesscombinationsEquitysecuritieswithoutreadilydeterminablefair valu

186、eEquitymethodinvestmentsShare-basedawardsOperatingleasesRedeemablenoncontrollinginterests HyperinflationAmountsunder IFRS(i)(ii)(iii)(iv)(v)(vi)(vii)(in millions of RMB)Equity securities and other investments247,8202,8985,804256,522Prepayments,receivables and other assets109,784(258)(111)(992)(1,767

187、)223106,879Investments in equity method investees208,289(241)(3,029)205,019Property and equipment,net179,436(43)179,393Intangible assets,net41,592(2,353)36339,602Goodwill266,713(45,024)2,035223,724Total assets1,811,590(47,876)2,8982,664(992)(1,767)2,5781,769,095Deferred tax liabilities57,692(810)413

188、4451333457,907Other liabilities31,714(1)11,36143,074 Total liabilities641,544(810)413445133(1)11,36134653,119 Mezzanine equity10,328(10,328)Total shareholders equity1,035,082(8,695)2,1862,219(1,125)(1,766)(2,035)1,1731,027,039Noncontrolling interests124,636(38,371)2991,0021,37188,937 Total equity1,1

189、59,718(47,066)2,4852,219(1,125)(1,766)(1,033)2,5441,115,976 Total liabilities,mezzanine equity and equity1,811,590(47,876)2,8982,664(992)(1,767)2,5781,769,09530ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDS(CONTINUED)Reconciliation of Co

190、nsolidated Income Statements(Extract)Six months ended September 30,2022Amounts as reported under U.S.GAAPConsolidationand businesscombinationsEquitysecuritieswithoutreadilydeterminablefair valueEquitymethodinvestmentsShare-basedawardsOperatingleasesRedeemablenoncontrollinginterests HyperinflationAmo

191、untsunder IFRS(i)(ii)(iii)(iv)(v)(vi)(vii)(in millions of RMB)Revenue412,73199412,830Cost of revenue(260,867)(28)462(178)(260,611)Product development expenses(29,343)(5)14(29,334)Sales and marketing expenses(47,937)(23)1(115)(48,074)General and administrative expenses(19,024)(1)391(18,985)Amortizati

192、on of intangible assets(5,480)2363(5,241)Income from operations50,080236(57)502(176)50,585Interest and investment income,net(37,083)397(159)37492(36,316)Interest expense(2,632)(744)(381)(3,757)Other income,net3,053(40)3,013Income tax expenses(7,971)(12)2(561)(45)45(63)(8,605)Share of results of equi

193、ty method investees(7,616)3,697(1)(3,920)Net(loss)income(2,169)2243992,977(103)(197)(344)2131,000Net loss attributable to noncontrolling interests4,395(110)(130)(3)57094,731Accretion of mezzanine equity(48)48 Net income attributable to ordinary shareholders2,1781142692,977(106)(197)2742225,73131ALIB

194、ABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDS(CONTINUED)Reconciliation of Consolidated Income Statements(Extract)(Continued)Six months ended September 30,2023Amountsas reportedunder U.S.GAAPConsolidationand businesscombinationsEquitysecurit

195、ieswithoutreadilydeterminablefair valueEquitymethodinvestmentsShare-basedawardsOperatingleasesRedeemablenoncontrollinginterests HyperinflationAmountsunder IFRS(i)(ii)(iii)(iv)(v)(vi)(vii)(in millions of RMB)Revenue458,946444459,390Cost of revenue(282,011)(1,335)716(587)(283,217)Product development e

196、xpenses(24,683)(2,558)(57)(27,298)Sales and marketing expenses(52,532)(767)1(220)(53,518)General and administrative expenses(16,705)(2,227)66(54)(18,920)Amortization of intangible assets(4,910)18814(4,708)Impairment of goodwill(2,031)2,031Income from operations76,0742,219(6,887)783(460)71,729Interes

197、t and investment income,net(762)(712)(83)23659(875)Interest expense(3,638)(819)(385)(20)(4,862)Other income,net2,755(31)2,724Income tax expenses(11,819)(58)37(68)63526(322)(11,569)Share of results of equity method investees(2,914)(52)(76)(3,042)Net income59,6962,161(675)(203)(6,328)(10)(362)(174)54,

198、105Net loss attributable to noncontrolling interests2,393(671)309176422,249Accretion of mezzanine equity(51)51Net income attributable to ordinary shareholders62,0381,490(675)(203)(6,019)(10)(135)(132)56,35432ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL RE

199、PORTING STANDARDS(CONTINUED)(i)Consolidation and business combinationsThe Company consolidates an entity when the Company obtains control over the entity and deconsolidates the entity upon the loss of control.Under U.S.GAAP,control generally exists when the Company obtains a controlling financial in

200、terest over an entity,whereby the usual condition is ownership of over 50%of the voting shares.Under IFRS,de facto control exists when the Company has the practical ability to direct the relevant activities of the entity,even if the Company owns less than 50%of the voting shares.The Company recogniz

201、es noncontrolling interests to reflect the portion of equity of a subsidiary that is not attributable to the Company.Under U.S.GAAP,noncontrolling interests are measured at fair value and full goodwill in relation to the acquiree is recognized in a business combination.Under IFRS,the Company can ele

202、ct,on a transaction-by-transaction basis,to measure noncontrolling interests at the noncontrolling interests proportionate share of the acquirees net identifiable assets and partial goodwill is recognized to reflect the controlling interests only.The Company recognizes an impairment loss when the Co

203、mpany determines that the carrying value of goodwill is not recoverable.Under U.S.GAAP,the impairment loss is measured by comparing the carrying value of the reporting unit,including goodwill,with its fair value.Under IFRS,the carrying value is compared with the recoverable amount,which is the highe

204、r of fair value less costs of disposal and value in use.(ii)Equity securities without readily determinable fair valueUnder U.S.GAAP,the Company can elect,on an instrument-by-instrument basis,to apply the measurement alternative to record the investments in equity securities without readily determina

205、ble fair values at cost,less impairment,with subsequent adjustments for observable price changes recognized in the consolidated income statements.Under IFRS,these investments are measured at fair value with changes in fair value recognized in the consolidated income statements.(iii)Equity method inv

206、estmentsThe Company generally applies the equity method to account for equity investments over which it has significant influence.Under U.S.GAAP,significant influence is presumed to exist for an investment in limited partnership or unincorporated entity,unless the investment is so minor that the Com

207、pany has virtually no influence over the entitys operating and financial policies.Under IFRS,significant influence is presumed to exist for an investment of over 20%of the voting rights of an entity.The Company records its share of the post-acquisition results of its equity method investees and adju

208、sts for the basis differences that exist between the carrying values of the equity method investments and the Companys proportionate share of the carrying value of the investees net assets.Adjustments are made to the financial statements of the equity method investees prepared under U.S.GAAP in orde

209、r to conform to the Companys accounting policies under IFRS and to reflect the basis differences of the equity method investments under IFRS,if different from those under U.S.GAAP.33ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS BETWEEN U.S.GAAP AND INTERNATIONAL FINANCIAL REPORTING STANDARDS(CONTINUE

210、D)(iv)Share-based awardsThe employees of the Company hold share-based awards relating to an equity method investee of the Company that were granted and will be settled by related parties or economic interest holders of the Company.Under U.S.GAAP,the cost related to these awards is recognized over th

211、e requisite service period,with subsequent changes in fair value of these awards recognized in the consolidated income statements.Under IFRS,these awards are not considered as share based payments of the Company and the cost relating to these awards is not recognized.The Company accounts for income

212、tax effects of share-based awards that ordinarily give rise to tax deduction.Under U.S.GAAP,deferred taxes for these awards are measured based on share-based compensation expenses recognized in the consolidated financial statements.Under IFRS,deferred taxes for these awards are measured based on fut

213、ure tax deduction estimated at the end of each reporting period.(v)Operating leasesUnder U.S.GAAP,the amortization of right-of-use assets and the interest expense related to lease liabilities are recorded together as lease expense and recognized in the consolidated income statements on a straight-li

214、ne basis.Under IFRS,the right-of-use assets are amortized on a straight-line basis while the interest expense related to lease liabilities are recognized in the consolidated income statements using effective interest method.(vi)Redeemable noncontrolling interestsEquity interests issued by certain su

215、bsidiaries of the Company are redeemable.Under U.S.GAAP,redeemable equity interests are classified as mezzanine equity if the redemption is outside the Companys control and as noncontrolling interests if equity interests issued by finite-lived subsidiaries are mandatorily redeemable only upon liquid

216、ation.Under IFRS,these redeemable equity interests are generally classified as financial liabilities.(vii)HyperinflationUnder U.S.GAAP,when the Company determines that a subsidiary is operating in a highly inflationary economy,the financial statements of this subsidiary are remeasured prospectively as if its functional currency was the functional currency of its immediate parent company.Under IFRS,the financial statements of the subsidiary operating in a highly inflationary economy are restated in terms of the measuring unit current at the end of the reporting period.