Q3 2021 Alibaba Group Holding Ltd Earnings Call (Chinese, English)
[music].
Good day, ladies and gentlemen.
Welcome to Alibaba groups the quota.
<unk> conference call and at the size of all participants.
Oh listen only mode. After the man.
She wants to pay the mics and you'll get the question answer session of them.
Like the tip of the call over to Rob Lin head of Investor Relations of other dogs I believe he saw the head.
Thank you.
Good day, everyone and welcome to Alibaba Group December quarter, 2020 results conference call.
With us are Daniel Zhang Chairman and CEO.
Joe Tsai Executive Vice Chairman Maggie.
<unk> CFO.
This call is also being webcast on our.
IR section of a couple of website a replay of the call will be available on our website as of today.
Now, let me quickly cover the safe Harbor.
Today's discussion may contain forward looking statements forward looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations.
For detailed discussions of these risks and uncertainties.
Please refer to our latest annual report on form 20-F, and other documents filed with the U S SEC or announced on the website of Hong Kong stock exchange and any forward looking statements that we make on this call.
Based on assumptions as of today, and we do not undertake any obligation to update these statements except under applicable law.
Please note that certain financial measures that we use on this call such as adjusted EBITDA.
The EBITDA margin adjusted EBITA adjusted EBIDTA margin marketplace based core commerce adjusted EBITA non-GAAP net income non-GAAP diluted earnings per share or <unk> and.
And free cash flow are expressed on the non-GAAP basis, our GAAP results and reconciliations of GAAP to non-GAAP measures can be found on our earnings press release.
Unless otherwise noted growth rate of all stated metrics mentioned during this call refer to year over year growth versus the same quarter last year.
In addition, during today's call management and will give their prepared remarks in English.
Third party translated and will provide simultaneous chess Chinese translation on another conference line.
Please refer to our press release for details during the <unk>.
Q&A session, we will take questions and both English and Chinese and the third party translate and I will provide consecutive translation. All translations are for convenience purposes, only and the case of any discrepancy managements day. The statement in the origin of the language will prevail.
With that I will now turn it over to Daniel.
Thanks, Rob.
Hello, everyone. Thank you for joining our earnings call today.
Alibaba group delivered another strong quarter on.
Our revenue increased 37% year over year to reach 221 billion RMB, while adjusted EBIDTA increased 21% year over year to reach $51 3 billion RMB.
And new active consumers and the <unk> of our China retail marketplaces continued to enjoy healthy growth.
With pulp out deals, surpassing 100 meeting mobile and the use for the first time.
We celebrated another milestone with Alibaba cloud.
Which achieved its first profitable quarter with positive adjusted EBIDTA.
These business trends are all quite encouraging and are supported by a China economy that has recovered rapidly from the pandemic.
Maggie will provide more details on our operating and financial performance and a few minutes.
I would like to address another subject the ever.
The one is equal and focused on.
Which of the potential impact of China's changing regulatory environment on <unk>.
And the platform companies.
I will share the latest updates on this topic.
This past quarter Alibaba experienced the suspicion of and groups IPO due to change in the Fintech regulatory environment as well as the initiation of and anti monopoly investigation by regulators in China.
Yes.
On December 24th 2020, Alibaba group received a notice of and investigation from the state of the administration for market regulation.
And.
Our net.
And that it has commenced and investigation pursuant to the PRC anti monopoly law.
The investigation is ongoing and we are fully cooperating with the EMR.
We have established a special task force with leaders from our relevant business units to conduct the internal reviews.
We will continue to actively communicate with the S. A M R on compliance with regulatory requirements.
We will further update the market where on the investigation is concluded.
[noise], we approach this anti monopoly investigation with takeoff of cooperative.
<unk> and open mindset.
As a China retail marketplace connecting hundreds of millions of consumers and the millions of merchants in transactions valued in trillions of RMB.
We have a deep appreciation of the significant social and public responsibilities of operating our platform.
Beyond complying with regulatory requirements.
We will continue to do our best to fulfill our responsibilities to society and the continued to causes such as consumer protection.
Digitization of retail and industrial upgrading.
Yeah.
Regarding and group.
As you know in early November.
And group announced the suspense us announced the suspension of its proposal the only listing.
And the initial public offering on the Shanghai Stock Exchange Star Board.
And the Hong Kong stock exchange.
Due to recent significant change in the Fintech regulatory environment in China.
And is in the process of developing its ratification plan.
Which will need to go through the relevant regulatory procedures.
Therefore, and groups business prospects and IPO plans are subject to substantial uncertainties.
Currently we are unable to make a complete and the fair.
Settlement of the impact that these change and uncertainty will have on Alibaba group.
We will update the market when.
And one and group has completed the relevant regulatory procedures for its rectification plan.
Yeah.
We received questions regarding weather and.
Any potential reduction in available consumer credit law.
And gross offers offerings, such as floppy would impact consumer spending on our China retail marketplaces.
I want to highlight that the.
The variability of crowded is not the major reason that motivates consumers to shop on our China retail marketplaces.
They are attracted by our comprehensive and of high quality product and sort of service offerings.
Our competitive pricing.
And our ability to satisfy and stimulate consumption needs.
Payments using partly on our China retail marketplaces, only represents a very small percentage of the total quite credit granted under the puppy.
And the vast majority of our consumers.
And have linked their payment accounts to of multiple funding sources, including credit cards.
And what day is only one of the funding channels.
Although the changing regulatory landscape applicable to fintech and the internet platform companies per.
Near term challenge to Alibaba.
We recall of this important opportunities for reassessing and improving our business projectors.
In this highly competitive market environment.
Will further challenge ourselves to constantly deliver and enhanced value creation for customers through innovation.
In multiple areas, such as China, Commerce retail local services cloud computing and international Commerce.
We see challenges in fierce competition, but also tremendous potential.
Looking forward, we will EBIT.
We will be even more committed to investing in these core areas in the.
Last thing for innovation for value creation, and the for long term growth.
Here I will elaborate a little bit more on.
Our thinking in four core areas.
First in China retail marketplaces.
We will continue our user acquisition efforts, especially in less developed areas.
We will build on top of ball Mills, 100 million mobile and the EU base and of further invest in expansion of the user base and the part of supplies targeting less debt.
The area of markets.
In addition in the community group purchase space.
We are developing a unique model based on consumer value proposition as opposed to subsidy utilization to ensure good consumer experience and the business sustainability.
Second our local service flagship Ulema will continue to strengthen its partnership with autoplay to expand and location based on demand delivery services to additional categories beyond the meals.
Such as groceries and the pharmaceuticals.
On demand delivery of non meal categories are growing rapidly on the <unk>.
Which shows the significant market potential.
The current regulatory trend towards more healthy competition will benefit all market participants.
As consumers and merchants look forth diversify supply.
We will leverage this opportunity to continue investing to strengthen our local service business.
Third in cloud computing, we are pleased to have delivered our first quarter of positive adjusted EBIDTA.
This is the result of years of investment in pursuit of long term value creation.
Alibaba cloud continues to grow at a rapid rate.
And with 50% revenue growth year over year in December quarter.
Reflecting the massive potential of China's cloud computing market.
We believe the market is still at the early stage.
The other intelligence applications and the demand for computing power will become universal.
Most of all industry sectors.
We will leverage Alibaba and unique advantage in technology and the data intelligence applications, while continuing to invest for growth.
Finally for globalization.
Southeast Asia, which of the which is a core market for our international Commerce business is witnessing.
Plus other is rapid growth in both user base and the transaction volume.
We have spent several years upgrading the other technology infrastructure business model and operating efficiency.
We believe we are now well positioned to capitalize on the southeast Asian market, which is experiencing accelerated growth.
Through further investment into long term opportunity with the goal of increasing our market share and the users' mind share.
Okay.
As part of its 40 involving into a digital economy.
Alibaba continues to be the best positioned in this in this historical transformation.
With our digital infrastructure and Commerce financial services logistics and cloud computing that we have been building over the last 20 years.
We've continued to be confident about our three growth engines.
Of domestic consumption and cutting edge technology and the globalization.
As these drivers are also consistent with the China's policy direction.
Economic development.
Thank you all now I would like to turn it over to Maggie who will walk you through the details of our financial results.
Thank you Daniel.
Thank you everyone for joining us today, let.
Let me start with financial highlights for the quarter.
And your active consumer China retail marketplace reached 779 million and mobile and they use reached 902 million share.
Those have shown net of S and over $20 million in the core cash time.
Total revenue was 200, and tiny 1 billion RMB up 37% year on year.
Starting from this quarter, we consolidated some of our wishes of newly acquired company and.
And if we take out the impact of <unk> consolidation the revenue.
<unk> was still show a strong balance of 27% year on year.
Okay.
So the strong revenue growth, mainly coming from the strong growth of our core commerce business as well as the strong revenue growth of our cloud computing business.
Adjusted EBITDA was $6 8 billion RMB up 22% year on year and the adjusted EBITA was 16 1 billion up 21% year on year.
Primarily driven by a healthy profit growth of our core Commerce segment, if taking out some art and.
And just the EBITA.
Would have been 21% yeah, yeah all of the year.
Our cloud computing business continued to deliver solid revenue growth of 50% and we're very pleased that debt. The adjusted EBITA for Ali cloud and turned positive for the first time.
We continue to maintain a strong cash position of <unk>.
70 billion U S dollar our non-GAAP free cash flow grew 23% year on year two of 96 billion RMB in this quarter.
Let's look at our cost trends and if I could quote share.
Excluding SBC total cost and expenses as the percentage of revenue increase the best Street <unk> percentage points.
Mostly due to our investment and strategic important areas, which I'll talk about and detailed later.
Yeah.
Now, let's look at the our long term investment approach.
And how it's dry on that.
At the house or Marty engine growth driver. So the small town and gin growth driver actually is very unique filed about the AP compared to our peer companies.
Uh huh.
We're the only one that has so many you know oh the building blocks for the core commerce, including all of these infrastructure.
Our ecosystem of has developed the many growth businesses because of our focus on innovation and our.
Steadfast of probably chassis and lessening our businesses for long term over the years are of businesses have become more diversified and more integrated as we provide more value added services to merchants and businesses the.
Value, we add is reflected not only in our Irish and that original taobao and Tmall business, but also in new retail China.
The international Commerce, local consumer service and cloud computing.
We categorized that these businesses into three development phases.
See traction and profitability as highlighted during the Investor day back in September of last year. So.
So for instance businesses such as Alibaba cloud has graduated to profitability stage after over 10 years and less investment and several developing business and within core commerce, such as China have granted it into the traction stage as they expand their addressable markets and the gain scale of <unk>.
Economy.
So the business and the profitability of stage has never stopped innovating either.
In the core Commerce, we further invested in local service, new retail logistics and globalization and even within our core core which is the most of the profitable China retail marketplaces. We have also incubated and the stepped up investment in new seats businesses.
Such as part of our deals and top of life.
Touching on the pallet.
Help us shorten the deal and top of grocery.
These businesses address new consumption demand and the behaviors and it will continue to expand our addressable markets in China.
Let's look at our core Commerce segment.
The core Commerce revenue grew 38% year on year to 196 billion.
Within the core Commerce revenue <unk> 20 per cent year on year to 102 billion RMB.
Customer management revenue growth is driven by the solid growth of our China retail marketplace Tmall online physical goods paid <unk> grew 19%, mainly driven by rapid growth of <unk>.
And the C G and home furnishing category as was accelerated the growth of consumer electronic categories.
Taobao online and physical goods paid <unk> was also strong which was driven by growth of <unk>.
And accessories and home furnishing and consumer electronic categories.
The success of the China retail marketplaces, and increasing number.
Value added services will provide the merchant.
Attracted increasing number of paying merchant and the higher average spending per merchant.
<unk> grew 20%. This is primarily due to the robust closing and revenue from new monetization of formats, such as recommendation fees and increase in the average unit price per click in search of monetization as well as the fast growth of thought.
Tmall online physical goods <unk>.
China retail other revenue grew 100% year on year due to impact of Saar of consolidation and strong growth of the Tmall supermarket.
And <unk>.
Taking out the impact from the consolidation of start channel reach on August revenue was still growing over 40%.
Tanya on logistics revenue grew 51% year on year, primarily driven by increase in volume of others from the hotels from our fast growing cross border and international Commerce retail businesses.
International Commerce retail price.
The 7%, primarily driven by robust growth of Lossada trend deal as well as Jimmy recovery of Aliexpress and <unk>.
Jack I recorded another quarter of triple digit order growth and ongoing market consolidation in the southeast China region.
[noise] local consumer service revenue grew 10% due to the increase in <unk> as well as more efficient use of our subsidies.
Core Commerce, adjusted EBITA reached 66 billion coring, and 15% year on year or a region of business in China retail marketplaces, including Taobao Tmall Alibaba. These businesses continue to maintain strong adjusted EBITDA growth and the stable margins during the.
The quarter and these trends were partially offset by increased investment in search of new businesses, such as top of our deal.
Life and Taobao groceries.
Investments in these new CS business will continue to enhance consumer experience and the engagement as was healthy increase.
Increasing alibaba ecosystem penetration into developing areas of China.
Yes.
Arthur development business, such as the local consumer service International Commerce retail, new retail and direct import.
It just takes continue to show solid progress and improving operating efficiencies.
The combined losses of these developing businesses narrowed by $1 6 billion RMB from 8.3 billion RMB to $6 7 billion.
And importantly, we're also pleased that tiny of has recorded positive operating cash flow after intercompany eliminations.
Next Alibaba cloud continued to empower the digital transformation of the enterprises by providing comprehensive technology solution and.
Services and the cloud for a wide range of industries in December quarter Cloud computing revenue grew 50% and this is primarily driven by robust growth and revenue from customers of the internet retail and the public sectors.
After our continuous investment per year, Alex clouds achieved positive EBITDA.
The EBITDA growth the positive EBITDA you on this.
So for the M E. We continued to improve the operating efficiencies through disciplined investment and content and production capability during the quarter adjusted EBIDTA loss for.
For the second and continue to narrow.
And they do to reduce the losses and <unk> and the increase the contribution from our online game business.
Let's take a look at the revenue and adjusted EBIDTA for the first nine months of 'twenty 'twenty. One. So this is important to note that our core Commerce segment has many businesses that target the same consumer base in China as such we take a holistic advice and.
The approach one of allocating resources and the capital across the segment by always seem really nicely and part of the incremental profit into new businesses.
Despite increase the investment in new businesses.
Core Commerce segment, excluding the impact from SAR and consolidation of Chi.
The robust revenue growth of 30%. This is up for the year to date and how's the adjusted EBITA growth of 19%.
Our investments and we'll continue to focus on increasing consumer base and improving user experience and the enhancing supply chain and lets just see infrastructures.
Selected financial metrics summary, so let's take a look at the <unk>.
Several items one of the interest investment income, which was 40 billion of RMB.
<unk> is the big year on year increase the increase is primarily due to our increase and the net gain from increases in market prices are public equity investments.
And share of results of the equity method Investees was the loss of $3 16, and RMB. It is the result of the impairment loss recorded which was partially offset by a $4 8 billion RMB and profit share of and Scoop September quarters financial results.
So we record these and <unk>.
Could you pick up of one quarter lag non-GAAP net income was 15 9 billion RMB and increase of 27% year on year.
Cash flow and the Capex for the quarter free cash flow was 96 billion, which increased 23% mainly due to our robust profitability growth and.
And as of December 31st 2020, cash cash equivalents and short term investments of 450.
The 56 billion RMB, approximately 70% of U S dollar.
On December 28 of <unk>.
Board of directors has authorized to upsize our share repurchase program from 6 billion U S. Dollar to 10 billion U S. Dollar we have come on the share repurchase program during the quarter and repurchased around 100, and a T 18 million of U S dollar of Etfs and index.
Quarter.
Let's.
Take a look at the.
You know have this outlook discussion 2020 was the unprecedented year a year has passed since the pandemic started and they continues to create uncertainties and the disruption to business globally.
Given the Chinese government has taken effect and measures to limit the spread of virus earlier, China's economy, So of Quaker recovery, which in turn supported the solid growth of Macquarie.
That's our business.
Looking ahead.
We will continue to invest and user growth user engagement digital transformation of the businesses and our people.
In fiscal 'twenty, one we have started to increase spending and new business initiatives.
And in fiscal 'twenty two.
We plan to step up our reinvestment of the incremental profits generated in into our seats businesses and the strategic growth areas in order to create long term value to our customers employees and shareholders.
That concludes our prepared remarks, let's open the floor for questions.
Thank you.
Alright, everyone for today's call you're welcome to ask questions and Chinese and English of third party of translator will provide consecutive interpretation for the Q&A session and <unk>.
And we'll address your question on the language you asked.
Please note that the translation of and this will come in and convenience purpose only in the case of any discrepancy or management statement and the origin of the origin of the language will prevail.
And can you walk away when Ming Yao.
And so on quoting once you win on loyalty.
T cell phone control and you're going to go.
So the thing.
Oh, My God anytime we're on.
The Q C. One day.
And the win T and Moody's soon from the integral each year.
E T woman quite anytime soon and so.
A lot of ups and true wagering.
So operator, please connect speaker and SRA conference right now.
And then please start the Q&A session on point, and we're ready and thank you.
Thank you.
And gentlemen, there how big the mix.
A question and answer session and for your questions. Please press star and the number one and what we need to be announced and Japan.
And so the request.
This is Keith and.
And to give more people the opportunity to ask questions. Please pieces of no more than one question at the time.
Once again two questions the first part and the number one.
Daniel.
And this question comes from the line of Eddie Leung from.
Bank of America and Maggie.
Please go ahead.
And that Yahoo.
And so and Nico Guan Jia.
And then and some job and ease of wind to a woman comes in and one sounds household Oh yeah.
On school I was one of them and then you said the inventories all tons and the ETF.
So on ships.
Hi.
I'm sure the tools yet.
Oh come on and the money itself, but the lesion.
Yeah.
Yeah.
So that's the whole life, so if I'm on.
And when you win and the many of male condoms Oh.
And which one of the sounds of each one of them.
And the.
Some of the young and he thought that now.
And those who union.
And from then song Lin.
The more sort of come home media.
And Youll see some thoughts in true.
I'll call them doing songs a bolt.
The Oh, you bought you went through the winter.
Thank you and good evening My question to you has to do with your relationship with with merchants, we know that the online.
And increasing number of different channels available to merchants, including your traditional competitors and also on new and emerging competitors and.
And with the popularity of mini programs on the rise.
At the same time, we note the.
Increasing.
The scrutiny of.
Anti monopoly.
Practices by the regulatory authorities in China, So I'm I'm wondering if in the context, you're seeing any changes in terms of merchant retention rates and also from an operational perspective is there anything you can do to improve given the merchants now have more available different channels.
[noise], Oh shit and they've got went up without take of wounds healed the.
You know, Chris the Kington sales as we go put them on.
And of course hunting, the total and Paul to sort of take a potentially and total yogurt humping auto Creed from those who you should see the tools tens of some of the choice to go you would see on yield.
So you don't want and glial team, we'll take the deal sort of hard though to go through first of all time, so what else are the chisel.
Think of it until you cause of choice, yet and so on chooses to what you all do is off to the C zone.
Particularly the hotel and does it cause C on the phones.
Yes. Thank you this is Daniel and I will take that question and.
Indeed, it's true that today.
And it is an increasing diversity in terms of a.
A variety of internet user products available and all of them can be utilized as an opportunity.
<unk> engage and <unk> and E Commerce, if you have the users and.
And you're able to hold onto those users.
And you couple that user base with the online payment capabilities and third party delivery capabilities.
And anybody essentially current engage and E commerce, it's a way of taking advantage of the user traffic.
On the phone Jon This is all of the icon Lu Chen the shins on.
Talking part of toll articulate the lungs on the Tinging of eating some of what your thoughts on that.
To go of chicken.
The Jin Guan side, all the women of hundreds of people from the southern job, you'll you shared the the two George and then of course, what as you unpack that sort of just on Jesus until his own job tamayo and of the treat all of the whole of P. A phone call.
Some of the trade off with the designs on the trees all types of CIT Hopkins hygiene on particularly as you can see equal Dolce gusto nickel kind all the shifts.
And the most of that took the charger a woman the users.
So it's one of all of this of anyway, what most of you could one jewelry the shelf either to the east youre pushing through a shelf with the routines of that somebody European part of your cheek them of food for the European true the bulk of your ball. It's on the shelf of T. N suite to go well and this is also the soil the phones. Other gene while you were talking of gene the Clinton and gene.
And so it was on the gene that was and so yes, the the woman the chip and system.
Our president of the reality for most of our merchants are if at all is that there are multiple different platforms out there that they can choose to work with and that is the reality.
Although we do have very few exclusive flagship store on arrangements with a small number of merchants.
And with respect to those merchants of the factors that are their goods are also available through other channels through their own channels with distributors.
Our other channels and that.
It is a fact that the plane for everybody to see.
Our advantage is that we are extremely focused on consumption and we are the number one platform when it comes to our consumer mind share for consumption.
And we're providing a very high quality consumer experience.
So that is why for all merchants, although they do have the choice of multiple platforms and are present on multiple platforms. We are probably from most of them. The most important platform.
So on top of the job of two large Alan will conduct some of those who called the ultra and New York, all or nearly all of the transitory of hall at Tusa of pushing really shots on how's the old Houston on the way to go on.
The tends to solve with other Virginia up and the three continents and upon some of you gotta of its only on our Alibaba. The links hoping she is this the Tom on the to go to those shifts on changing the bulk of what she is unchanged and watching and that's from Sandy.
And then were women and people won't use.
And the current order take of the country I'll check on the to go Suzhou Junior and the two Hersh I'll do the Ts and the condensate are of position or putting them and so you're switching caught on to sanctions on.
Sure. So the Schindler take a simple ones on your hawthorne's of Piedmont, and so on you'll see the check on the issue is pushing the issue to the ease of camping drilling the sounds of Yugo. She was the uptake of campaigns as the woman is hunting dogs on the sounds of the Ito in cell phones, that's the woman's own T cells and so she won't condos on charter woman looking.
Oh I'll take on and go to the suddenly the changing the things on Herschelle do the teaser of bulk of it or you won't be the tip of the important. So it's one of the huge on Gucci to cause some jobs all of it seemingly woman. She go on sale and the ones on the tissue social conscience tissue. So you sound judgment on a woman so the I'll take the thousands of accounts one of the team that was in the tissue.
[noise] looking at merchants be it in terms of our retention rates and terms of activity, where they're focused on the platform. We see no decline and to the contrary, we tend to see increases and.
And that is because E commerce is becoming a more and more important a.
Retail format for merchants and general.
And Alibaba provides a wide range of services, including sophisticated management tool for merchants to manage their online business as well as their online.
And offline a comp.
And the businesses.
The contribute to enhanced overall efficiency for our merchant operations. So this is a fundamentally different from a one off.
Campaign, driven approach that you would see.
For example, with live streaming or short form videos.
The drives a single campaign.
We're focused and contrast to that on providing the whole suite of tools and services to drive our overall merchant performance, helping them increase their sales and me.
Maintain healthy profitability and that is the reason why we are of the AR the premium platform the emerge.
And so choose to work with.
Many of them to Daniela and a.
A lot of Pennsylvania.
Okay.
The next question from the queue.
Our next question is from the line of like the we do all day.
Your line is open. Please go ahead.
Glenn and so on you all kinds of data.
Two minutes or would you be quite willing to essentially and Georgia of course.
And then just who the time long you know kind.
Tom will go into debt.
Well, I've seen and seafood and what you've done.
You didn't give me on kind of your cash.
On a constant and sometimes Michelle.
And so would you say chief of which I'm sure you and platform.
And you see signs on me and the total Oh go on and telling them to hit on one excuse me.
Thank you just a very quick question as to whether you could give us any guidance on capital expenditure trends and the next few years. We know that there are a number of important new technologies, where youre, making progress coming out of them wore academy with the cloud we can expect per.
Perhaps with the expenditures and infrastructure cloud infrastructure R&D as well as in the computing power. If you could just please give us some guidance on where you see capital expenditure heading and the next few years and thank you.
Our share of Garanti then.
And that that kind of woman and I think our capex the true.
And then Manny.
<unk> jumped on just the trigger true channel will mentioned good day.
Sure you could see too.
Sean Teeter tapas issue without Bogger billing and M D.
And that's really been forecourt. So there are two of the bill and tissues of operating Capex of sugar, it's usually of I actually I'm glad the decision Glenda capacity true.
Thank you for your question well on the Covid issue of Capex.
If you look back to the presentation of I just delivered you'll see that we gave the figure there for the December quarter for the quarter as a whole it was $5 8 billion.
On RMP and included within that figure was $4 9 billion.
<unk> four operating Capex of that covers it.
Okay.
And so that you did share of potential new work on the show each of our tickets that'd be high.
Single digits.
That is the mid single digits, you get G gens and not chico's shaping the Chi should go on and the golf course eat the just yet oney the concert Liby peoples on head saw a woman and say since he does he go the life I can see zone three to get tissue. The total the inside of the total of bulk with Mou in.
Eating should wait Jack out of that say once you're on the.
Capex. The total now we're really situated the high should had said you guys shoulder of the zombies on Dol question at you also don't yeah.
So in absolute terms THAAD as a relatively small figure and indeed as a proportion of our revenues and it would still be a <unk>.
Single digit percentage and the mid single digits.
Impairing the out against our international peers are it's not very high going forward, our plans for the future will be to strengthen and increase our investment and technology and R&D and and.
And the Dar more academy.
And so we hope to see going forward capex, increasing both on an absolute value as well as as a percentage of revenue.
Yes.
Oh, excuse me and might be.
Next question please.
Yeah.
Thank you next.
Next question is from the line of Alex Yao of Jpmorgan. Your line is open. Please go ahead.
The cornerstone myself and since then.
And I think just over the one T com.
<unk> kind of that Daniel Furtado take the tinsel Quentin the other sort of whole Nino T. The weighted Iowa, Mcquaid and Duncan toward the shopping so and then no wish on wings.
And we'll manage for the other that they've been doing the shopping so yeah, we've been on the.
And Sean you want.
And it should be on Pla.
Russia and Poland.
Two of them and do the from college, and not causing them to the Jason English on the HUD debt at a time and wish him and the San Francisco.
Good evening and thank you management for taking my question. My question has to do with the Daniels opening statement and which he talked about.
The evolving policy environment and.
Alibaba is commitment to take on more social responsibility.
And so specifically my question is.
And taking on more social responsibility and how will that translate and operational terms and to changes on the operation side and if you could perhaps help us think through a bit how all of those kinds of operational changes may have an impact on the company's financials. Thank you.
Well I shouldn't say wouldn't you ought to go and just doesn't think of hard it wasn't cheap on the ollie's play on the Eagle.
June July Zhang tiers of woman the.
And so possibly sort of in downturns of the woman does he the sales.
So you'll see us the call HUS agenda to the homes of the improvement our newco true and when you sort of towards the sushi and the woman Shaanxi and take up the will alert you on to the <unk> to the thoughts on guns and the civil which you can do the false as the court ruled on the Hood of specie tied to the Chongqing and thoughtfully to the plant on.
The art, so I'd say, that's one Jim and wish on the RV lifestyle and moving on to auto switching Super single sort of legal and it goes some of your of the pinch hygiene Chi the telling me the put them outside of sort of what's there and so.
And so on one of ours.
And the angle of tie it to the Changzhou Juliet and good of food and cigarettes from shall cheer up for to go to the public sometimes total tone about true cold phone call compensations and Don the and the other guy it's all of our synergy Don.
Zone, and Golar Farquhar Wong the soil. So he took on two of Malaysia onto the assembly of tourism I think was the outcome.
And you from kind of you called and wage and switching shelf on the puck and one day you go on and does it go to some of the syntax syncope and hedging due to the sudden tied the two the final rule, so go to Shanghai and culture.
Thank you for your question and I do think that is a very good question as a plot form economy. Alibaba has always taken very seriously, it's a social responsibility and cause.
And I made this very.
Very much part of the mainstream of our efforts to develop a as the platform and in years past we have indeed.
Done.
A lot of work on this front going forward as a platform of economy.
The ever more deeper integrated with the overall economic and social development of of the country. We do plan to take on and get more social responsibility.
The something very important for Alibaba.
In particular is mainstreaming that responsibility and making it part and parcel of everything we do be it helping to create jobs to stimulate employment and helping our Smes on every front.
From a product distribution and.
All the way through our manufacturing.
Manufacturing on the manufacturing side, we cannot play a role and also helping them to export their products. There are many things that Alibaba can do and I think the the key point here is the social responsibility for Alibaba is not something separate from our operations and our business rather it is the the mainstream of everything we're doing.
Around operations and business of platforms.
Platforms.
So I just want to withdraw the luggage on take Oh, two goes to and Duncan on the silver doesn't usually yeah. So youll truly take Philippine type of angles and kind of final yes, ungula of some kind of final until you sometime couldn't go to sort of what sort of the 30 P M, which of the woman so all of that but sometimes from the titles. The gels you called it 20, I just want to and go up and tied to some type of the.
George what I call it our market share Townsville Wei, who the tissue town and so we couldn't George Holmes tissue.
So taking on more of social responsibility and the sense is.
Is conducive to driving prosperity of the platform and more prosperity on the platform again and enables us to take on more social responsibility are the tour of mutually reinforcing.
So we we don't look at it in terms of the economic value of that can be generated.
And I are social initiatives, rather we see this in terms of a holistic ecosystem value. That's how we've always approached it and we will continue to approach it and that same way.
Okay.
Thank you next question.
Thank you our.
The next question is from the line of Alicia Yap of Citigroup. Your line is open. Please go ahead.
Hi, Thank you good evening management, Thanks for taking my questions and congrats on the solid results.
And my question is related to the reinvestment.
And strengthen the overall marketplace business so on.
And then this will be on for some time and we will continue to elaborate on the marketplace. EBIDTA and then you said anyway management could help us rank in terms of the the investment Ctrip and also the the resorts that we will put into accordingly for example, how about deals on top of <unk>.
<unk> the short videos and also the taobao grocery.
How do we use value week on some of these reinvestment and half of cheese.
And B cells, and then that you are you will scale back on so any color in terms of.
Ranking the.
Boardrooms and also the status of some of the seat investments currently thank you.
Oh I forgot the second.
On its own because we weren't sure yeah true and immune shoot if you don't know how of the yes.
And with them and the wind Kenosha and sugar B Rune fact holds true.
And what you should sort of the chicken and showing you should talk to each of you were forming the tide holds true.
What leads you sure you mean, the Yo Yo Das where and so sure sure.
Three Chinese switch on the EBITA to the Congo.
And county, and the minimum of women's where you should pursue the.
The ratio of two point up on quite a few were from a talk about two of jump on a pop out true board top on my tie to sort of put on the you switch for the Chongqing Shijiazhuang and arguments I told for the lead to from B of a chunk of issue a sound Yao.
All of the titled to the to go create bought him and we should see Yep Yep.
Oh thanks.
Let me answer this question of first of all I think as we always said that we are we always invest for future and therefore, our investment and.
And in the CS business in new business in core Commerce actually with we think of the these are new businesses, but we build this new opportunities of from the in part I mean.
And of course system point of view, so we think of two to enhance our leadership position Oh.
And KOL commerce, we need the different applications.
Applications different services to meet the different to meet the customers.
The demand from different perspective, so like today as we as you know that we our towboat deal enjoyed very rapid growth and this quarter, we reported on our Mou for the hobo deal surpassed.
100 million.
Oh, well the very happy to see the initial results, but we strongly believe that the the investment and Pablo deal is a very important measure for us to target the low.
The the customers are in low tier cities or even in the rural areas and and the leverage our hour.
Supply power of from like the other other business and Alibaba or like a 168.
So on and so forth and we have very effective supply and the other.
And the value for money supply to meet the demands of the of the of the customers with low purchasing power.
And the in terms of our investment in pulp of life. It has been for a while and today. If you look at the top of our life business, it's very costly.
It's it's it's already of the very sizable and every day, we have oh.
Tens of thousands of live streaming on our platform on which not only initiate by the kols, but also by many storefronts owners. So.
So I think of we are we were highly integrate the life streaming together with our retail platforms and the epic livestream and become a very effective marketing tool awful of it will still from and also create the new business opportunities for K O L. So in this regard we will continue to invest in and the live streaming but we don't.
And once again, we don't view of life live streaming is up and it does.
As a as a separate business at the instead of actually live streaming is a is a very important new retail format and the in the in the commerce platform. So I will stop here for the translation first.
[noise] fit on that yeah.
Okay.
And the woman Idiots young on the.
Alibaba.
And I'm sure we weigh a lot of chunk of sheet and that's what holds true.
From a short of all the senior showing up on quite a few should chung. So yeah, we're not a teacher a share on Schwartz with Cindy.
Sure.
And then on songs from her she's going to go from one do you could charge with that kind of dishes and the few weight.
And the four Wheeler Bulge woman shown yearly and you the to go out and make sure that the weight on the shear putting the tweets fusin the food line months.
Sundar food home the shoots show them the console using share Shawcor cobalt will jump on us from Joshua on quite a bit and C. Do you think of shorts to Paula E.
And you.
Number one the.
It's the the ought to go the fish on the dosing.
On the Chinchillas runway to go to hop on two of job on the three to five Jack how should your feet on the told me all of the truth for a schulman and welcome all of the truth you talk on how the food do you sense each on the ship broker and non phone teach you the a.
T shirts, and shoes punishing me of Cree.
Woman side of champion Gucci Grunting for me on the to go home with the lithium ballpark about downtown to show the Alibaba and <unk>.
That's the goal.
Those things out of P. The champion Formula Yoga fit on SCHUNK out of it you know and you go.
And I couldn't see the the only he eats and the nine months Tisha shortly a PNT the T shirts, and shoes com and the shield.
The most short though to the towboat, Shreveport, Oh, and yes, you're totally right on the jumbo sounds like Green one of you should have shown on the top of a meet him. The total tier one girl and she on the and took a true bought ERP and touch on a Tuesday, and Archie you said sure of what a true luxury of the Kols the to the Triple July tissue on the auto show.
Uh Huh city, it's one of the to go true bought in the room.
Uh huh.
Uh huh.
Two of the from which you would talk to them and soon.
So on Peter the mutual pin part of it how should it go to a joke and say you should see me too.
Talk to each one of them.
And so bush of compare the year, where the from kind of 10 to 20, sorry, Tushar English bushel of assuming shots on goal.
You guys seem to think of ship.
Well in terms of the top of groceries.
As I said in my script, we are developing a very unique model are based on the customer value proposition as opposed to subsidization to ensure the Goodyear the experience and the business sustainability I think of a very important thing is the we tried to try to fill a our own model.
And as opposed to as opposed to the the what you'll see in the market of just per money Oh satisfies the customers for scale I don't think of this is a sustainable model instead of we have a such of Oh, the a tremendous user base.
And already are in cobalt and so that's why we position well where are we in cobalt mobile app, we have our top of grocery as a major customer interface. All four of these new business and so far we based on our initial test.
We saw very good result, and this on top of our grocery all of this is not only help.
Help us to have.
Have a more supplies to the local customers, especially in the low tier cities, but also help us to recruit and many new customers.
A lot of the assistance of these on the community leaders. So we will continue to invest in this business, but we will try to leverage all the resources, we have in Alibaba and the inks on in some new retail business are in our he must of the companies and the in our eating and hours of both of them.
Multiple supply channels so of from from financial perspective, I think of we don't manage all of our core commerce been in spite of Utah, We think of the growth of the user base and growth of the consumption in multiple categories across countries is the.
The key so.
Our strategy the very clear and the we are very confident to invest them more of it in this area. Thank you.
[noise].
And the top on my chart.
Two of sure what's the kind of father Chancing. The two two of the Washington on sides.
Our financial and we're using cash on quote on Michelle Qi charge and the true trunk or we should call out here are two of them that shoot on how the patch on the women's Shanghai Auto show and downhaul.
Yeah with the Cushing.
So most of the newly thoughts on Tuesday, the telling you guys seen the moisture and the theme.
As shown on women's I should touch on Condor Condor on time, and putting the short shaft and food here.
Oh of Cook <unk>.
On the social and the magic of beating the shit.
Sure. The you know we're more share.
And the Samsung.
Well sure.
The Codell true.
On the two the yoda to the towboat and and once I talk about E. P. P. Liam yeah sounds of.
From Charlie you go top on my My touch you know and you got a fit hung Chung Yada you guys seem to take on rule the dose of the Richard on the true Pud of tuition and go.
So should shoot a lot of hunger.
All of the two good chunky and the.
Hope all of my time, Todd could you know.
Sure the shelf, a Toyota who should be shouldn't each and we should take the sulfate true cookie.
Go on.
For me on the quota of come on board.
But the the T shirts and typing the question on the coupons on the SGR on conversion and the trigger you on.
Sure.
On core to the Ah <unk>, which you try and go after the media how does it seem to you.
And the Sundar and I saw on all of them quick chicken meal on T O who would be on the hot Ali good won't put him on the two and.
Well the most of them the ceiling short of two and show them of beat holds yeah. The T shirts and Hush on the door go put on the Queen the chicken Oh shoot.
Like Tweedle took a fragile.
And the limits of.
Of course in Shanghai, and you're not on that.
I think Ronny, it's one of the to push the didn't our EBITA and granted it sounds on woman and particularly fragile and telling you you know sort of the stay at home and she she art show me what you can see on the highway tissue shot on two for me on the tourism.
Just to add one more point on public grocery and today, we're still in the in the pilot test of what the how about grocery.
And some of the cities and so today only a small portion of total users can access and the service, but overtime, we will relative service out across the country and the bar of the the the collaboration with multiple Uh Huh.
Supply is of course Alibaba of business. Thank you.
The interest of sort of how long of my time on its own.
And for median tissue on the it sounds out of the someone of her she will show you took a huge and.
She had one sort of true.
Poof and Changsha.
The fruition of Crazy.
Uh huh.
Our improved from the Union sure Craig of your four I'm wondering if you're on a Swedish agenda to where you are moving.
And true quarter from Guy the family life, We've got a chunk of picture of it.
And I can touch on the tour group with one of the trigger are coming true clinical nine social and that's what.
Yeah.
Thank you Daniel.
Next question.
Thank you. Our next question is from the line of Thomas Chong of Jefferies. Your line is open. Please go ahead.
Hi, Thanks management for taking my questions and congratulations on the positive EBITDA for the cloud business.
Most of all our how we should think about the competitive landscape on.
On the cloud business in the coming years.
Well as all of our strategy in the us and the sauce Tsai and.
And how we should think about the Ma.
Margin trend.
Well thank you.
[noise] harping on kind of circling on its own.
The true honeymoon to the Alex I mean, you are.
EBITA shoes shorts, who try and show them.
Well the ones, you know to sugar and Eugene here, which of your format and so I'm sure, though on the income Zucker of CCAR Jewish LNG team yet.
The tone do you could think Joe and could you Oh.
And Ali we're always going to of your quite a chunk of it sounds from for you could you from two of IR of SaaS and Paas and she could we do my Chung.
Thank you, yes, Oh clock and there is a very promising business, while we do believe.
And in the future all of the industrial sectors, they need of cloud services on.
Today, the market and also if.
And has in the market. We also see of very fierce competition, but obviously, we are Alibaba has a very big advantage in terms of in many of us cause of <unk>.
Curious on firstly is that by leveraging our of our huge skill on E commerce of financial services and the logistics.
We are able to build a very scalable cloud infrastructure.
Which support our our own business first and today and we roll all of these impromptu sort of the third party clients. So in this case in terms of the integral scalability and the we are in the in a very superior position.
Yeah.
[noise] uh-huh fitting us yet the.
You can see Swan should future channel either you go.
Well the room and a good home cool, yeah, Joe and cleaner to shield.
And she's swept the on the food and with Orange and I sure don't want me of current thoughts when failure of excuse me and the St Joe kind.
And I'm sure the hunt of Shanghai on Alibaba outside of Chico and put them on the form yet.
You're on your chewed out of Houston.
The Eagle shoot out of the usual wishes for you and then so since one sorry.
The other two car T and shown a team of food.
We'll go with the Ping time on the show shouldn't wait months would send us your thoughts on the go to quadrant of the two don't dream.
The central months of attrition to shield of woman satellite and tissue.
Samsung the cool sort of them and theater, you wish of tissue quote out of it.
The second and the vintage we have is the is the data intelligence capabilities and applications.
We have to serve our.
And actually in China today, when you talk with many clients who want to use cloud actually they are the purpose is not about only moving to the cloud instead of what they want is by moving to the cloud they are able to better usage of to better use of the data so the data and Intel.
And the capability and applications are the key in this regard we are obviously.
And once again, you know very superior position.
We are we have a lot of expertise.
Parents is in in terms of the data usage and data intelligence.
The woman Tioga are true.
Chewed out of your wishes to show them of P. T computer on how the shoot you turn on the chicken the only.
Life of women of cool and wet shoots of drink wash of there on pork, who I was showing on the so chongqing and Don touched on and push of wheel of Shanghai and shouldn't Arsenal.
Congrats young and the go Gung Ho of the Lille score.
Even though the shoot you.
So you don't want to shoot you true to form in the non meat.
Sure Quanta and Swat side on the hunt.
And here on a Saturday of your for me and Allianz.
Two of the phone for the senior tranche on let me assure the true fit on yogurt to you on that seem to and which.
The other.
Third vintage we have is about the technology for years, we invest the AR in the.
And the cutting out the technology for cloud of.
Very aggressively on.
Our normal economy by hour or hour a recruitment of the of the FERC of first class engineers and scientists. So today, we are in terms of the some of the key of our product features and in cloud such as debt others such as a.
Storage such as the.
The the.
And then.
And all of our services so on and so first of we are.
Our products services and our quality of the product services on a very.
Better than our competitors. So I think up of weekend of very good feedback from our customers. So I think the technologies.
It's still of the key.
Yeah.
And the design good your shown on slide you tissue form and it could be from yet.
The annualized on the ship each and.
Finishing two of Dod leader towards the towards the Youre not sweet Shenzhen thrilling Schinder to go green tissue of the type of.
Ballpark two of them and that the more you at Borgwarner Tango one.
Tom will endure the quantum of sure Chris.
Chris you have jumped on the matter.
On the Guangcheng to the champions singing from Ya Aqua should you cool twin true 20, and Tien-fu. She kind of took a chunk and food don't come and go for a minute woman of the Trulia tusa the genuine links <unk> women to take of it seem to want me of should boot on to go where the.
Kudos to the halting your teeth, you don't think of fun quick sort of the trigger could see xiaomi on the links Shan Shan.
Sure you got feet on the pulling out of yours.
In summary, we invest a lot and technologies in the area of us and Pos.
Until the source of we work very actively with our partners.
And in different industries try to create a source of course system called the source of core system. So this is our general strategies for cloud and the we are very confident about the about the future of the of this business.
And so I'm sure yet on the sure boots on the towards the U S who pass on.
And the massage format, while Michelle you put on the horn here, it's all about.
Thanks Linda.
A lot of to go catch on comes on the Monoline of thoughts.
Thoughts on Eugene we teach without you on your car Shanghai.
A number of is shown on the show them and say you can choose on for me and some T. The chicken challenge on the Fitch on kind of.
And she's trying to realize hydro and autonomy.
Thank you.
And a quick question.
Thank you. Our next question is from the line of Jerry Liu of UBS. Your line is open.
Joseph on anything they've got different whether it's the.
Oh, well the one he says wait all contact points and keep all of the take the some instead of estrogen and so I'll take the eating the take up the whole room.
How do you think the touch up on support and.
One of them and teach us Ms. Joan and I was thinking of when she said room kind of E EBIT.
EBIT or EBITDA and true.
So if you suddenly changes going on in central there'll be other.
And that's true in.
The new well Oakland County, Michigan.
Say the things from the English total yogurt and do you know.
One of them I see.
And she and I see you on what the ECA and even for me and the guys on hobby.
And all of my tenure of clean heap, and we see I'd say the question.
And you will see.
Thank you.
My question has to do with the the investments that you've talked about that you intend to be making and and the next period to come including around top of deals our live streaming and so on and so forth and.
The impact of that that would be expected to have on EBITA or EBITDA growth because if you look at EBITA EBITA growth over the past few years are the the pace of growth has really remained quite stable are.
Going forward, we expect to see the growth rate moderate.
As a result of those investments or would that possibly be offset.
By improvements in the profitability of other other new businesses like cloud all of them out or China. Thank you.
The Oh, yes, I do.
Yeah.
On the fashion to be able to use and the Shanghai and Suzhou.
The Mets just isn't the Alibaba share you guys Howard Ching Kwan, Jonathan on the shows that that's the way right.
And so any of that you're the lesions and dealt with them yeah on margin and I'm not sure.
Well and then yeah, yeah and Zika.
I can share you meet that yeah, the Chile.
And shifting all of that you know on the model you just you see on each issue that comes out of the range is that sometimes you know Oh I can't yet yeah fish on fancy and kind of time.
And then two how come from doesn't teach you Joe on cash anyway LNG.
Especially in the accounts you won't make and so how did you take on the chip.
Yeah sure on May 7th.
Well on the eating out of shutting the C O G I leave and sometimes on the way high share your thought that the.
The realized she gets her.
And one that just because of that she and when he and she says on you.
So on to you it would you at the Ash and mailers and the.
And there'll be other Shanda Joshi eating and show them exactly what tell me, you and I'm going to each of sit down and so what what's.
And what's impacting the thought the taking share and Josh I got the whole well gosh the RMT.
Thanks, very much and indeed, it's very interesting that whenever we talk about Alibaba as our financial performance and future outlook.
And we always get questions about our of profitability and our margins and whether we expect to be able to sustain them at the same levels that they have been on.
And we're very grateful for that.
And it's.
It's very much of a function of the fact that we have created high expectations by always being able to create profit and maintain healthy margin levels and we know that the others are in the same market or are getting different kinds of questions and the expectations are of different and of course, we are in the same market.
With all the other companies and it.
It is a valid question as to whether we would prioritize and put in first place our profit.
Profit growth going forward or whether instead, we would prioritize investing and our future growth and and new businesses and the Alibaba to answer to that.
<unk> is a is very clear it's not a question that we even need to think about it we are always investing in future growth.
On the Oh on the kind of just your Alex and Tennessee, Mojave and sure that of course, you don't take a shot of really yeah. She will then turn the call.
And I see shutdown and Cook wonder on that.
How quickly each of them, but yeah, that's out and I want my Chung.
He changed the bad she's by E. G. The should not just the EBITA of the coaching and.
If you take the shortage issues that you want and that's usually equals and say I talked to the dishwasher.
You'll see on the leaving.
And one of the home of Chicago was just kind of anything of that.
So you want the who attended the Santos and of course actually Tony Cao on digital leaving some of them she wishes on shiga.
And he and churches of beach out junior and they think of tangible and intangible yet you know the only somehow.
Thank you Michelle jogging, she's the semi E no local and the kind of fear and change or what kind of share count have you found that well and that you've got looting Ah just you have to go and check.
Total it Jonathan.
But would you go down on and take three.
And you're talking to the July cut the potential cut out on the K a chunk of the.
No I thought you know with you of what the Wow.
And well known weight.
Baytown, Jack or T T. The Chi Jack that total.
Yeah.
If you look at where Alibaba is today in terms of profitability looking at the last 12 months or actually the the figure I can give you is from the last nine months of the past three quarters adjusted EBITA was $147 8 billion.
And that's that's very strong but that figure already includes various reinvestments of of profit. The that we've made are so so I think we're in a good place and have the ability to continue to to invest you can also look at our our profit increment say over the last two years.
Period, if you compare the first nine months of this year to the first nine months of the year before last you.
You're talking about a fairly substantial figure of 30.
Billion. So this is our development strategy, we continue to invest.
And the future and as we see that strategy paying off and as the new businesses grow.
We will expect to continue to scale up our investments.
And he says and that kind of Washington, Shandy and hurt you guys.
And it does seem junk of teaching.
And that whole woman and Turkey.
Yeah routines and mindshare.
And what kind of hang it on lots of what the true.
And visits.
And by any man and.
Well and then yes L. A way that I talked to the edge of you've made for sure.
One of my Canyon and push it back marching well I mean, it's one of the mail that much interest and interest and from the shipyard in the sense of the Xiaomi and Oh, what do you leave and the turns out and what you don't want the high single figure of how the T. True I just wanted to see that take of tapping. The you talked about him on the China retail marketplace of yellow.
I should say it turns out that income that you couldn't do it turns out.
So looking at the potential of the huge potential that exists and the market today's situation of competition and their own progress on and where we're at.
As I said in my prepared remarks earlier, our approach will be to continue to invest the scale up our investment we will never prioritize.
Margin that will never be and number one for us and it never has been in the past and when it comes to the profit growth I think we have a very strong foundation in place.
And particular with Taobao, and Tmall and the China retail marketplace for building on a very strong foundation of profitability.
And let's take the next question.
Okay.
The next question is from the line of abuse of Squatty of fluid Securities. Your line is open. Please go ahead.
Great. Thank you very much for taking the question just a very quick one I was wondering if you could if you guys can discuss the impact of the re and position of restrictive measures due to COVID-19, so far what you've seen in January and just the sustainable sustainability of.
The recovery short term before and and the as we go into the fourth quarter. Thank you.
And then got hit with Hugo on quiet of you can win T.
And the tissue switch of.
Drunk on choosing quiff wishes, she should essentially push a goodly portion of the from sports Force.
And you've been kind of digging shoveling periods that you of them two years ago from of young so all of the timber dog food, she too and even way to a full suite of true hold here of who utilize somebody on the income.
Okay.
Thank you.
Oh for the impact of the Covid.
And China in some cities of.
Government take a new approaches to two two locked on some of the areas in the cities and the encourage people to stay at the home cities.
Instead of going back to the hometown for the Chinese new year. So we are closely monitored the progress of these new measures and so far I think the I think of we haven't seen and very material changed of the of the consumption of the business, but August day because.
And for January is very if you look at the Apple to Apple to last year, because last year of Changyou.
Chinese new year is in late January while this year is in the middle of February So we have some uh huh.
Have some of ton GAAP op between two Chinese new year's.
Uh huh.
And the initial win win the Cingal and <unk>.
And so I drink or function of yourself.
You said some of them sooner to the junk food and the attune foods country. Since the you should push and viewers for the two most here to the shop Chu for the sure Moshe Cianci roots and seem to know chubu the to go.
And so a portion of your quickly touch on on Oh, Cianciulli of course, senior and we hope we lost share.
And number two you tissue of Shin Kwan of woman, sorry, T shirts media.
And each of the grown through the middle of associate, which you guys flow of meal Kanthal.
We'll see what it should do them in the year.
From a chunk out of you and Michelle what it should kind of touching on it.
And the ear ghansham, the either a Hudson a pretty young children and the twins here and I should say EBIT and the opinions of the twins here and I should say are you of tuition of of two two.
Yeah and continue on the degree of twins yesterday of a shoot and childhood.
As a result of the of some lockdowns in and in some of the cities.
From the logistics perspective, we see some some some challenge because of all of these locked down but.
But I think up because the lot of.
And for the last mile.
Delivery force because of the thing are the city of policy I'll.
And we expand this loss of the capacity will be enough for the last mile and while the transportation might be a challenge because of some lockdowns and thank you.
And what's the most hits from should show the Chi on the go live from Sports force to attrition on kind of week, a William and Tyler you should hold true.
The Dutch and Oh, you Chigger Chung from Cooley awesome, and thoughts on tranche of cornea and poorly and large yacht and that's usually more to wonder what assure the three who are you complete. It you go you can be.
And got short woman chooses should create T. She also Paul Chung.
And to go and we'll Youre short are you shifting of Ascension.
Thank you.
The next question please.
Thank you. Our next question is from the line of Rod changed me of media.
And the whole Securities. Your line is open please.
Please go ahead.
Yeah, Thanks for taking my questions on.
Can you talk about maybe investment and some of the new innovations that you see in the marketplace like smart transportation and autonomous driving it seems like government is making a concerted effort and.
In terms of building up on smart transportation nationally and talk about maybe.
And how you're participating that built out and how you're positioned to win the market. Thanks.
So tissue of the T. One a wash on Cima tiny town and you should Chong scene for me and the three of towards the George.
George you should children and children, who are true.
So the Josh the true to form in a woman should all the twingo of junk food and a chunk of the sugar could we found out and took a chunk of Sundar Jonna Chen and showing from the to go and see to assure shouldn't and number two and Alibaba who are tying the alltel.
So I told you found quite of Bushnell.
Uh huh.
For this oh for the smart transportation and autonomous driving I think are we.
We do it from different angles for small transportation.
Of the RT cloud business actually we are closely work with some partners and create the smart transportation solutions.
Based on the cloud infrastructure and I think of this the vertical solution will be widely.
And used in the in many.
Areas of too Crazy I mean, Oh smart.
The transportation capabilities.
Well for alternate of autonomous driving are actually all of our tomo in all the time of economy. We have a dedicated team working on this for years and so far are what we focus is about the to apply this autonomous driving in the into the largest the area and we've already are.
Deploy Ah Ah Ah.
Many on the autonomous cars and in school campuses in and in some of your residential areas.
On the last mile delivery and the from the service station to the buyers of home all students.
Uh huh.
The only trees so.
No.
And so I think I think of this will have a today I think and this is still under early stage, but I would say autonomous driving and we will have the wider range of the applications. So we will closely monitor the progress and the once again and we will invest flow.
The technologies to make sure we are in the leading position in this area. Thank you.
None of the short auction on the telephone could.
The charts sure Oh I'm sure from put them on the chart with like 102 onshore and let you know and so it won't require should Vishal I leave you and Oh.
Each of the.
Side swap on a.
Well I'm not sure to see all the children childhood or to the.
Judge of falling on eating should the.
Bush with the put one of the share of choice you'll put on the teach you on the sanctions whaler I don't want of highway from core from the true Oh shoot.
A number.
And it's a food challenge she true telephone minutes, you should done more of you on the 20th annualized each of the yards the trauma and you could try and do it no woman and you got true shortly and tissue rukwa bacik of tissue and a union on you.
And.
And the woman eating on.
You should think of the show you on a.
Do you mean shot shoot.
Joe on the tissue like the one shown to cook more at one of the peso on your thoughts on each on a door John Quinn of should the social and Sue sure.
The suite of Honda on me you think starts war going on one of the songs and weigh a lot of true and tissue and Ohio, where you can call and fund the union chanting or media weights you should meet your Guangzhou tie the two of Wheeler I found out and focused on star on the point on one.
Moving tissue chart out women of tweets of the Attune foods.
Okay. Thank you operator last question.
Thank you I guess question is from the line of IBD Wong of HSBC. Your line is open.
Hi, This is your Guangzhou and Joseph <unk>.
Now what I want teenagers is a watch and jewelry is that just the woman tonnes out of them.
All of them and some holiday.
And isn't that kind of doctors you go and then they go and Joe Joseph of marketing, Ohio Joseph.
And I would say, it's just all healy of woman kind of digital seems a lot you and Oh I need to speak of a true.
True.
And I'll, just say, yes based on Hong Kong and depends on just the standard.
Well it sounds from what you said you shouldn't judge is the thing you should at midnight the image.
A J the bouygues.
And so.
And you'll know you share zirconium cross selling.
Metric delay and wellness.
On the Samsung you got to kind of an idea of where you can kind of do you see.
She is on the shelf and.
Not to giggle, and Tino, yet businesses and Joseph.
And maybe Tony.
You should think of and <unk>.
You should the fed not smarter you can take the dynamic.
He's the only mentioned.
The dialogue with all the improvement.
Yeah.
Thank you management.
My question is about the new businesses, you're investing and.
And I'm wondering if you could tell us which of those you see as having the largest addressable markets and the greatest amount of of synergy.
Because we know that and new retail and and cloud Alibaba was the first company to get into those spaces had been very successful and now you're the largest.
And those spaces so.
Looking at the new businesses, how do you see the synergy of the addressable market are there any cross selling metrics that you could share with us.
To exemplify the kind of synergy that exists and then the other question perhaps for Maggie is around the new initiatives you told US earlier the losses are narrowing if you could give us a little more color on on which ones of narrowing and are the expectations. There. Thank you.
Oh, well I with Asia champion and pool from the wound he watches Oh boy it seem to you because of all of them are.
Putting the let's say take of Hawaii share.
On the U T is of pushing sorry of cold Commerce G&A on the call.
Commerce and the other would be at all on that.
And the other thing you will me, it's I think the sale of flash in the U T. The.
So it will take up to some degree of course and I don't use the wellness based on your on that.
And so you could do.
The year wheel you Hitachi the you've got chance of of commitment the moment condos Huntington to go well and you lose who on the auto the shall I take the put you up on your heart of bulk of them that support the accounts usually at the switching all of you launched the agenda take the chance of political the cheese with whole really whole class of true Shannon and shell number to tell on the year one more way.
Did you mean true Cook with the charter Hall early on the hold on to the efficiency that you all the way of tissue. The true total style of media weight on Polish society, So awfully totally share of consult sheet of you touched on it.
And he thought I tie it blends the KOL Commerce has decided she thought of the settlements are women.
But on the couple of charts of the issue and the U S.
The woman a teach out of on shelf.
Thank you this is Daniel and I'll take the first part of the question Indeed.
Indeed, we're constantly working to incubate new businesses, including and core commerce, we've talked quite a bit about that today, but also in other areas.
And our approach in terms of the incubation process is always to be patient and to make it a long term commitment.
So some of these were already starting to see a become a well to gain traction.
And become quite successful already including top on deals and including a top of alive live streaming and.
And and all of these cases these are businesses that have been through a period of incubation and investment.
And it's taken patients to get to where they are.
And any business that we incubate we're constantly looking for ways to create a new differentiated value a good user experience and to and drive efficiency and we are indeed investing and some even earlier stage.
<unk> as well both in the core commerce and and other segments are seeking.
All of instances to differentiate.
On a solution or a service to satisfy customer demand.
But the new work with actually a nickel and then yeah. It's usually the well known question shows that the yellow I.
And so Josh and is not here and she should come on and that's something that just the Oh.
Christian you thought the Yale.
The two battery and charger.
And in cash without hurting the shell well on the Tommy Sanjay the senior and enjoyed.
And since you hear some of the shot of getting the tinge of call. It just yet.
She is your question or changing the actual Jack.
Our accounts you're not.
So actually the tenure of attorney of share.
Chris the downhole without that he cannot do the teacher's time debt to gauge and dollar tapping Jose.
In total we shall now.
What's on the Lehman piece, I'll stop and take a and B.
A lot of the convention finish on what day.
Uh Huh E G Tonya chin at least on the foundation.
And she just Joshua try of course.
Sure.
And if you want opinion on me and do the legacy issues that the tolerant Joseph Shaw well Nashville.
And actually out on share and they look quota and Youll see a woman on the Tulsa.
And as I told you.
So at the Juicy sure Youll chance of other things that won't be out you got a kind of change with the team on a shot.
And I'm sure my function of towards the shop.
And so what the take up on shell and Naples, and the with hands on Tuesday, The army chiller, what kind of shocking to negotiate a tiny of them or not.
And not yesterday, and the Union and Chartwell and <unk>.
And if you do the G. The earning call of Xiaomi and one of them, we can digest it and the team with a total.
Okay. Thank you everyone or.
And yet.
Yeah.
Part of your question and that's about a which of the <unk>.
Businesses are seeing losses narrow and.
The most of the and my answer to your question in a nutshell would simply be the Oh all of the businesses that have been lossmaking, we're seeing losses narrowing across the board so with respect to all of them on digital and media.
Media and entertainment, new retail Masada, even the smaller businesses like our cross border.
And of course, the the larger businesses like cloud and tiny on where losses have been relatively large and the past as you see now the solidly on track towards a healthy profitability.
The biggest change are.
Looking at where things are now would be with local services. So certainly a gorilla MA and also a tiny on.
And this is also a question that we ask ourselves on the on a daily basis and have had a lot of internal discussion around E and our law.
Making businesses should our primary goal will be trying to further narrow the losses or should it be trying to further drive.
Business growth and growth and you know our answer to that.
The has been that we're reinvesting selectively and following a lot of study and discussion.
And investing to grow the business.
Now the next quarter will be the final one of.
Of the financial year and <unk>.
Pro Preet time for us to.
Look forward to and offer overall guidance for the next year and so we expect to be doing that with you. The next time, we see you.
Yeah.
Okay.
Okay.
Thank you Brittany, sorry for interruption before.
And thank you everyone for joining us today.
If you have any questions.
Please do reach out to our IR team and all of the material should be available on the IR website. Thank you again.
Yeah.
Thank you.
And then that's it.
And thank you for participating.
All of the thing.
[music].
Yeah.
[music].
And.
Yeah.
Yeah.
Okay.
Uh huh.
[music].
Yes.
Yes.
[music].
Okay.
Yeah.
Okay.
[music].
Yeah.
[music].
Yeah.
[music].
Yes.
[music].
Okay.
Yes.
[music].
Yes.
Yes.
Yes.
[music].
Yeah.
[music].
Okay.
[music].
Okay.
Okay.
And.
[music].
Yes.
Yes.
[music].
Okay.
[music].
Okay.
[music].
And.
Sure.
Yeah.
Okay.
Okay.
[music].
And.
Yeah.
Yeah.
[music].
Yes.
Yeah.
Yeah.
[music].
Okay.
Okay.
Okay.
Okay.
[music].
Yes.
And.
Okay.
And.
Right.
Yes.
Okay.
Okay.
And.
Okay.
And.
Okay.
And.
[music].
And.
Yes.
And.
And.
Yes.
Okay.
Okay.
[music].
Okay.
Yes.
[music].
Hum.
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
Yes.
[music].
Okay.
[music].
Okay.
Yeah.
Okay.
Okay.
Yes.
Yeah.
Okay.
Yeah.
Yes.
And.
[music].
And.
Okay.
Yes.
And.
And.
And.
Okay.
Yes.
Okay.
Okay.
And then.
Yes.
Okay.
And then.
Yes.
[music].
And.
[music].
Yes.
Yeah.
Okay.
Yes.
Yes.
Okay.
And.
Yes.
[music].
And.
Yes.
Okay.
Okay.
And.
Okay.
[music].
Okay.
And.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
And.
Yes.
Okay.
Okay.
Yes.
Yes.
Okay.
And.
Yes.
And <unk>.
Okay.
And.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
[music].
Yes.
[music].
Okay.
Yes.
Okay.
And.
Okay.
Yes.
Okay.
Right.
Okay.
Okay.
Okay.
And.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
And.
Yes.
And.
Okay.
And.
And.
And.
Okay.
Okay.
Okay.
And.
Okay.
And.
And.
Yes.
And then.
And.
And.
Okay.
Okay.
Yes.
Okay.
Okay.
Yeah.
Okay.
Yes.
Okay.
Okay.
[music].
And then.
Yes.
And.