Q4 2024 Alibaba Group Holding Ltd Earnings Call

May 14, 2024

Good day, ladies and gentlemen, thank you for standing by welcome to Alibaba Group's March quarter, 2020, full and full fiscal year 'twenty 'twenty four results conference call.

Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's March quarter 2024 and full fiscal year 2024 results. At this time, all participants are in listen-only mode.

Operator: Welcome to Alibaba Group's March quarter 2024 and full fiscal year 2024 results. At this time, all participants are on listen. After management's prepared remarks, there will be a Q&A. I would now like to turn the call over to Rob Lin, Head of Investor Relations at Alibaba. Please go ahead.

Speaker Change: At this time, all participants are in listen only mode.

Speaker Change: After managements prepared remarks, there will be a Q&A session.

Operator: Pedramak, there will be a Q&A. I'd now like to turn the call over to Rob Lin, Head of Investor Relations at Alibaba. Please go ahead. Thank you. And good day, everyone. Welcome to Alibaba Group's March quarter and full fiscal year 2024 results conference call. With us are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; and Toby Xu, Chief Financial Officer. We have also invited Jiang Fan, Co-Chairman and CEO of Alibaba International Digital Commerce Group, to join the call. This call is also being webcast from the IR section of our corporate website. A replay of this call will be available on our website later today. Now, let me quickly discuss the safe harbor.

Speaker Change: I would now like to turn the call over to Rob Lin head of Investor Relations of Alibaba Group.

Please go ahead.

Robert Lin: Thank you.

Robert Lin: Thank you. Good day, everyone. Welcome to Alibaba Group's March quarter and full fiscal year 2024 results conference call. With us are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; and Toby Xu, Chief Financial Officer. We have also invited Jiang Fan, Co-Chairman and CEO of Alibaba International Digital Commerce Group, to join the call. This call is also being webcast from the IR section of our corporate website. A replay of this call will be available on our website later today. Now, let me quickly discuss the safe harbor.

Robert Lin: Today's discussion may contain forward-looking statements, including without limitation statements about our new organization and governance structure, Alibaba's plan to convert to a primary listing in Hong Kong, Alibaba's strategies and business plans, as well as our belief, expectations, and guidance about our business prospects, such as the future growth of our business, revenue, and return on investment and shareholder purchases. Forward-looking statements involve inherent risks and uncertainty that may cause actual results to differ materially from our current expectations.

Robert Lin: And good day, everyone welcome to Alibaba group's March quarter, and full fiscal year 2024 results conference call with US are Joe Tsai Chairman Eddie.

Robert Lin: How do you Chief Executive Officer, Kofi Shea Chief Financial Officer, We have also invited Jonathan co Chairman and CEO of Alibaba International Digital Commerce Group, who joined the call. This call is also being webcast on the IR section of our corporate website. A replay of this call will be available on our website later today.

Robert Lin: For a detailed discussion of these risks and uncertainties, please refer to the latest annual report on Form 20-S and other documents filed with USSEC or announced on the website of the Hong Kong Stock Exchange. Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements, except as required under applicable law. Please note that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP diluted earnings per share or ADS, and free cash flow are expressed on a non-GAAP basis.

Robert Lin: Now, let me quickly cover the safe Harbor.

Robert Lin: Today's discussion may contain forward looking statements, including without limitation statements about <unk> organization and governance structure.

Robert Lin: <unk> plan to come back to primary listing Hong Kong, Alibaba strategies and business plans as well as our belief expectations and guidance and about our business prospects such as the future growth of our business revenue and return on investments and share repurchases.

Robert Lin: We're looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations for detailed discussion of this risk on certainties. Please refer to our latest annual report on the form 20-F, and other documents filed with the U S. SEC.

Robert Lin: For a detailed discussion of these risks and uncertainties, please refer to the latest annual report on Form 20-S and other documents filed with USSEC or announcement on the website of the Hong Kong Stock Exchange. Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements, except as required under applicable law. Please note that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP diluted earnings per share or ADS, and free cash flow are expressed on a non-GAAP basis.

Robert Lin: Now it's on the website of Hong Kong stock exchange and he looks forward looking statements that we make on this call are based on assumptions as of today and we do not undertake any obligation to update these statements except as required under applicable law.

Robert Lin: Please note that certain financial measures that we use on this call such as adjusted EBITDA adjusted EBITDA margin adjusted EBITA adjusted EBITA margin non-GAAP net income non-GAAP diluted earnings per share or a D. S and free cash flow are expressed on a non-GAAP basis, our GAAP results and reconciliation of GAAP to non-GAAP measures can be found on the earnings.

Robert Lin: Our GAAP results and reconciliation of GAAP to non-GAAP measures can be found in the earnings call and earnings press release. Unless otherwise stated, growth rates of all metrics stated during the call refer to year-over-year growth versus the same quarter last year. With that, I will turn it over to Eddie. Hello everyone.

Robert Lin: Call earnings press release, unless otherwise stated growth.

Robert Lin: Our GAAP results and reconciliation of GAAP to non-GAAP measures can be found in the earnings press release. Unless otherwise stated, growth rates of all measures stated during the call refer to year-over-year growth versus the same quarter last year. With that, I will turn it over to Eddie.

Robert Lin: Right.

Robert Lin: All metrics stated during the call refer to year over year growth versus same quarter last year.

Robert Lin: With that I will turn it over to Eddie.

Okay.

Eddie: I think it's like a hawk.

Yongming Wu: Following several quarters of adjustments and continued user experience enhancement, our core business has gradually returned to healthy growth. The Taobao Tmall Group achieved double-digit year-over-year growth in GMV this quarter. Alibaba International Digital Commerce revenue increased by 45%. Our core public cloud offerings recorded double-digit year-over-year growth in revenue. AI-related revenue increased triple-digit year-over-year. This quarter's results demonstrate that our strategies are working, and we are returning to growth. TTG continued to execute its user-first strategy by creating a system for brands, merchants, and industrial belts to operate efficiently and to meet the diverse needs of China's domestic consumers through a shopping experience that offers quality products at attractive prices supported by exemplary service.

Yongming Wu: Following several quarters of adjustments and continued user experience enhancement, our core business has gradually returned to healthy growth. The Taobao Tmall Group achieved double-digit year-over-year growth in GMV this quarter. Alibaba International Digital Commerce revenue increased by 45%. Our core public cloud offerings recorded double-digit year-over-year growth in revenue. Our AI-related revenue increased triple-digit year-over-year. This quarter's results demonstrate that our strategies are working, and we are returning to growth. TDG continued to execute its user-first strategy by creating a system for brands, merchants, and industrial belts to operate efficiently and to meet the diverse needs of China's domestic consumers through a shopping experience that offers quality products at attractive prices supported by exemplary service.

Eddie: Hello, everyone.

Eddie: Following several quarters of adjustments and continued user experience enhancement our core business has gradually returned to healthy growth.

Eddie: How 'bout Tmall group achieved double digit year over year growth in GMP This quarter Alibaba International digital commerce revenue increased by 45% or.

Eddie: Our core public cloud offerings recorded double digit year over year growth in revenue AI related revenue increased triple digits year over year. This quarter's results demonstrate that our strategies are working and we are returning to growth.

Eddie: TD cheap continued to execute its user first strategy by creating a system for brands merchants and industrial belts to operate efficiently.

And.

Eddie: To meet the diverse needs of China's domestic consumers to a shopping experience that offers quality products at attractive prices supported by exemplary service, our investments and driving price competitiveness and elevating the user experience have received positive consumer feedback we've seen tangible results and progress strong growth in quarterly buyers.

Yongming Wu: Our investments in driving price competitiveness and elevating the user experience have received positive consumer feedback. We've seen tangible results in progress, strong growth in quarterly buyers and purchase frequency that has driven robust double-digit growth in GMV, reflecting a continued improvement in consumption and user trust. At the same time, we continue to enhance member benefits and service experience with 88 VIP membership numbers growing by double-digits year-over-year to surpass 35 million. Last quarter, I shared TTG's three key investment areas aimed at enhancing overall capabilities. First, product supply; second, competitive pricing; and third, quality service.

Yongming Wu: Our investments in driving price competitiveness and elevating the user experience have received positive consumer feedback. We've seen tangible results in progress, strong growth in quarterly buyers and purchase frequency that has driven robust double-digit growth in GMV, reflecting a continued improvement in consumption and user trust. At the same time, we continue to enhance member benefits and service experience with 88 VIP membership numbers growing by double digits year-over-year to surpass 35 million. Last quarter, I shared TTG's three key investment areas aimed at enhancing overall capabilities. First, product supply; second, competitive pricing; and third, quality service.

Purchase frequency that has driven robust double digit growth in <unk>, reflecting a continued improvement in consumption and user trust at the same time, we continued to enhance member benefits and service experience with 88 VIP membership number is growing by double digits year over year to surpass 35 million last quarter I shared ctg's three key investment areas aimed to enhance.

Eddie: <unk> overall capabilities.

Eddie: First product supply second competitive pricing and third quality service.

Yongming Wu: We are committed to boosting consumption and purchase frequency through these measures, driving further growth. For fiscal year 2025, we expect TTC's GMV will gradually return to healthy growth as our platform's overall shopping experience continues to improve. At the same time, our schedule of launching monetization products will also proceed as planned.

Yongming Wu: We are committed to boosting consumption and purchase frequency through these measures, driving further growth. For fiscal year 2025, we expect TTG's GMV will gradually return to healthy growth as our platform's overall shopping experience continues to improve. At the same time, our schedule of launching monetization products will also proceed as planned.

Eddie: We're committed to boosting consumption and purchase frequency through these measures driving further growth.

Eddie: For fiscal year 2025, we expect Gtt's T. M people gradually returned to healthy growth as our platforms. Overall shopping experience continues to improve at the same time, our schedule of launching monetization products will also proceed as planned in the second half of the fiscal year, we will gradually introduce new monetize.

Yongming Wu: In the second half of the fiscal year, we will gradually introduce new monetization mechanisms aligned with new platform algorithms and product features that will further enhance CMR-centered revenue growth. As we continue to improve platform products and investment tactics under our user-first strategy, we're very confident we will win more consumer trust and maintain our market share leadership. This quarter, we completed adjustments to Alibaba Cloud's product strategy for the AI era, and the quality of our revenue continued to improve.

Eddie: Nation mechanisms aligned with new platform algorithms and product features that will further enhance <unk>.

Eddie: Ah centered revenue growth.

Eddie: As we continue to improve platform products had investment tactics under our user first strategy. We're very confident we will win more consumer trust and maintain our market share leadership.

Eddie: This quarter, we completed adjustments to Alibaba cloud product strategy for the AI era and the quality of our revenue continued to improve we are focused on creating competitive advantages and Alibaba cloud technology and scale and reduced pricing for public cloud products globally, driven by strong demand from various sectors, including found.

Yongming Wu: We focused on creating competitive advantages in Alibaba Cloud's technology and scale and reduced pricing for public cloud products globally. Driven by strong demand from various sectors, including foundational model companies, Internet companies, as well as customers from industries such as financial services and automotive, AI-related revenue accelerated and continued to record triple-digit growth year over year. We believe that this wave of generative AI-driven technological innovation is in the early stages of the industry cycle.

Eddie: <unk> model companies Internet companies as well as our customers some industries, such as financial services and automotive.

Eddie: AI related revenue accelerated and continued to record triple digit growth year over year.

Eddie: We believe that this wave of generative AI driven technological innovation is in the early stages of the industry cycle. Starting in 2024, we've seen a rapid increase in customer demand for AI. It is also stimulated growth in demand for traditional cloud computing needs, including general computing storage and big data. Therefore, we are actively investing in.

Yongming Wu: Starting in 2024, we've seen a rapid increase in customer demand for AI. It has also stimulated growth and demand for traditional cloud computing needs, including general computing storage and big data. Therefore, we are actively investing in our cloud computing product matrix, especially AI infrastructure, to capture these monumental opportunities. Currently, Alibaba Cloud has established strategic partnerships with the vast majority of leading foundational model companies in China. At the same time, Alibaba's proprietary foundational model, Tongyi, released a 110 billion parameter model in late April, which is on par with the top open source models globally.

Eddie: Our cloud computing product matrix, especially in AI infrastructure to capture the monumental opportunities currently Alibaba cloud has established strategic partnerships with the vast majority of leading foundational model companies in China at the same time at least Alibaba proprietary foundational model T E released a.

Eddie: 110 billion parameter model in late April which is on par with the top open source months globally.

Yongming Wu: Looking ahead, we will deeply integrate our Tongyi Lodge model with Alibaba Cloud's advanced AI infrastructure to realize synergies and optimization across software and hardware. We aim to create the premier AI development platform that combines outstanding AI capabilities with high-cost efficiency, redefining the industry benchmark for cost performance.

Yongming Wu: Looking ahead, we will deeply integrate our Tongyi-Large model with Alibaba Cloud's advanced AI infrastructure to realize synergies and optimization across software and hardware. We aim to create the premier AI development platform that combines outstanding AI capabilities with high-cost efficiency, redefining the industry benchmark for cost performance.

Eddie: Looking ahead, we will deeply integrate our 20 large model with Alibaba cloud advanced AI infrastructure to realize synergies and optimization across software and hardware. We aim to create the premier AI development platform that combines outstanding capabilities and high cost efficiency redefining the industry benchmark for cost performance.

Yongming Wu: Based on our leading product portfolio, substantial infrastructure investments, and proactive industry partner strategy, we are confident that Alibaba Cloud's revenue, excluding internal customers, will return to double-digit growth in the second half of the 2025 fiscal year. For our overseas e-commerce business, AIDC revenue grew 45% and order volume grew 20% year-over-year this quarter due to continued focus on expanding cross-border retail operations and enhancing the consumer experience. And Jiang Fan will share more details with you later. In March this year, we withdrew Tsai Niao's IPO application.

Eddie: Based on our leading product portfolio substantial infrastructure investments.

Eddie: And proactive industry partner strategy, we are confident that Alibaba cloud revenue, including or excluding internal customers will return to double digit growth in the second half of the 2025 fiscal year.

Eddie: For our overseas ecommerce ITC revenue grew 45% and order volume grew 20% year over year. This quarter due to continued focus on expanding cross border retail operations and enhancing the consumer experience.

Eddie: And chunk fan will share more details with you later in March this year, we withdrew its honeywell's IPO application.

Yongming Wu: Tsai Niao provides essential infrastructure to Alibaba's core e-commerce business, and we hope Tsai Niao will strengthen its synergies with our Chinese domestic and international e-commerce operations. Alibaba Group will continue to support the expansion of Tsai Niao's global logistics network. The past year has been a year of self-transformation for Alibaba. We're pleased that changes in our business and organization have yielded results. A journey of transformation will undoubtedly have challenges, but we are well prepared. In the new fiscal year, Alibaba Group will continue to focus on investing in and executing our user-first AI-driven strategy, and we are confident in the long-term healthy development of our company. Thank you. Uh, greetings?

Yongming Wu: Tainiao provides essential infrastructure to Alibaba's core e-commerce business, and we hope Tainiao will strengthen its synergies with our Chinese domestic and international e-commerce operations. Alibaba Group will continue to support the expansion of Tainiao's global logistics network. The past year has been a year of self-transformation for Alibaba. We are pleased that changes in our business and organization have yielded results. A journey of transformation will undoubtedly have challenges, but we are well prepared. In the new fiscal year, Alibaba Group will continue to focus on investing in and executing our user-first, AI-driven strategy, and we are confident in the long-term healthy development of our company. Thank you.

Eddie: Tony I'll provides essential infrastructure to Alibaba as core E Commerce business, and we hope to find out will strengthen its synergies with our Chinese domestic and international E Commerce operations.

Eddie: Alibaba group will continue to support the expansion of China's global Logistics network.

Eddie: Past year has been a yourself transformation for Alibaba, we're pleased that adjustments in our business and organization have yielded results a journey of transformation will undoubtedly have challenges, but we are well prepared in the new fiscal year Alibaba group will continue to focus on investing and executing our user first AI driven strategy and we are confident in the long term healthy development.

Speaker Change: Our company. Thank you.

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

Speaker Change: Greetings.

Jiang Fan: This is Jiang Fan, and it's a pleasure to be back to give you an update on AIDC's business. AIDC continued to achieve rapid growth this quarter, despite widespread and intense market competition in different countries across the world. Total orders were up by 20% year-on-year, with especially significant growth in our cross-border business.

Jiang Fan: This is John fan and it's a pleasure to be back to give you an update on aig's. He's business, yes, I do see continued to achieve rapid growth this quarter, despite widespread and intense market competition in different countries across the ITC total total orders were up by 20% year on year.

Jiang Fan: Especially significant growth in our cross border business next let me share with you on the progress we've made around the three major drivers that are our consistent focus first business model and supply chain service upgrades driven by AE choice Aliexpress continued to realized robust order growth.

Jiang Fan: Next, let me share with you the progress we've made around the three major drivers that are our consistent focus. First, the business model and supply chain service upgrade. Driven by AE choice, AliExpress continued to realize robust order growth. AE continued to advance in its transition from the original platform business model to a supply chain efficiency-driven platform POP semi-consignment plus full consignment hybrid business model. While maintaining a rich merchandise assortment, we significantly enhanced user experience. For example, by April 2024, AE choice orders accounted for around 70% of total orders on AliExpress.

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

Jiang Fan: <unk> continued to advance in its transition from the original platform business model.

Jiang Fan: Our supply chain efficiency, driven platform P. O P semi consignment plus full consignment hybrid business model, while maintaining rich merchandise assortment, we significantly enhanced user experience by April 2024 E choice orders accounted for around 70% of total orders on aliexpress at the same time.

Jiang Fan: At the same time, synergies between AliExpress and the cross-border logistics capabilities of Tideal have further strengthened AE's competitiveness with the 5-day and 10-day delivery completion rates both doubling year over year. AE will continue to make effective investments while paying attention to improving the efficiency of the choice model. We continue to bring more localized, high-quality user experiences to different consumers around the world. AI and intelligent technologies continue to enhance efficiency and user experience in cross-platform smart product assortment, optimized presentation of product details, multi-language search, targeted recommendations, and so on.

Jiang Fan: At the same time, synergies between AliExpress and the cross-border logistics capabilities of TINEO have further strengthened AE's competitiveness with the 5-day and 10-day delivery completion rates both doubling year over year. AE will continue to make effective investments while paying attention to improving the efficiency of the choice model. We continue to bring more localized, high-quality user experiences to different consumers around the world. AI and intelligent technologies continue to enhance efficiency and user experience in cross-platform smart product assortment, optimized presentation of product details, multi-language search, targeted recommendations, and so on.

Jiang Fan: Synergies between Aliexpress, and the cross border logistics capabilities of tiny I'll have further strengthened.

Jiang Fan: East competitiveness with the five and 10 day delivery completion rates, both doubling year over year and will continue to make effective investments while paying attention to improving the efficiency of the choice model second is product and technology innovation, we continue to bring more localized high quality user experiences to different consumers around the world AI and intelligence technologies continue.

Jiang Fan: In fact, it had sufficiency in user experience.

In cross platform smart product assortment optimize presentation of product. He tells Multi-language search targeted recommendations and additionally, more and more small and medium enterprises are starting to leverage AI to enhance their operating efficiency 17000 deaths.

Jiang Fan: Additionally, more and more small and medium enterprises are starting to leverage AI to enhance their operating efficiency. 17,000 SMEs have subscribed to the AI Business Helper launched on Alibaba.com, and millions of products have now been launched with AI, and searches for AI-optimized products have increased by 37%. Third, sustained growth in key markets. A continued investment in key markets for AliExpress has brought about growth in our user base as well as an enhanced user experience, supporting our sustained rapid growth and continued leading position locally. Trendyol is actively investing in cross-border business, achieving very rapid growth in the Gulf region.

Jiang Fan: Additionally, more and more small and medium enterprises are starting to leverage AI to enhance their operating efficiency. 17,000 SMEs have subscribed to the AI business helper launched on Alibaba.com, and millions of products have now been launched with AI, and searches for AI-optimized products have increased by 37%. Third, sustained growth in key markets. Our continued investment in key markets for AliExpress has brought about growth in our user base as well as an enhanced user experience, supporting our sustained rapid growth and continued leading position locally.

Jiang Fan: Have subscribed to the AI business help relaunched in Alibaba dot com and billions of products would not be launched with AI and searches for AI optimized products have increased by 37% third is sustained growth in key markets. Our continued investment in key markets for Aliexpress has brought about growth in our user base as well as enhanced user experience supporting our sustained rapid growth and continued leading position locally.

Jiang Fan: TrendyOwl is actively investing in cross-border business, achieving very rapid growth in the Gulf region. Its brand recognition has improved rapidly, driven by a significant expansion in its merchandise supply, and it has become one of the most downloaded e-commerce apps in the region.

Jiang Fan: [noise] trendy all this actively investing in cross border business, achieving pretty rapid growth in the Gulf region. Trendy brand recognition has improved rapidly driven by significant expansion in its merchandise supply and it has become one of the most downloaded e-commerce apps in the region. There remains huge potential for you how do you see to grow user penetration in the majority.

Jiang Fan: Trendyol's brand recognition has improved rapidly, driven by a significant expansion in its merchandise supply, and it has become one of the most downloaded e-commerce apps in the region. However, there remains huge potential for AIDC to grow user penetration in the majority of its markets. We will achieve quality growth by providing better and more differentiated merchandise and services. At the same time, we'll focus on enhancing operating efficiency both by narrowing losses in certain businesses and by making higher efficiency investments to continue to grow actively in markets around the world. Thank you.

Jiang Fan: There remains huge potential for ARDC to grow user penetration in the majority of its markets. We will achieve quality growth by providing better and more differentiated merchandise and services. At the same time, we will focus on enhancing operating efficiency both by narrowing losses in certain businesses and by making higher efficiency investments to continue to grow actively in markets around the world. Thank you. Thank you, Jiang Fan.

Jiang Fan: If its markets, we will achieve quality growth by providing better and more differentiated merchandising services at the same time, we're focused on enhancing operating efficiency.

Jiang Fan: Both by narrowing losses in certain businesses and by making higher efficiency investments to contribute to continue to grow actively in markets around the world.

Jiang Fan: Yeah.

Hong Xu: First, I will provide a recap of the key financial highlights for fiscal year 2024. Following the overview, I will provide a detailed review of the financials for the March quarter. During this fiscal year 2024, our total consolidated revenue was RMB941.2 billion, an increase of 8%. Consolidated Adjusted EBITDA increased by 12% to RMB 165 billion.

Hong Xu: Thank you, Jiang Fan. First, I will provide a recap of the key financial highlights for fiscal year 2024. Following the overview, I will provide a detailed review of the financials for the March quarter. During this fiscal year 2024, our total consolidated revenue was RMB941.2 billion, an increase of 8%. Consolidated Adjusted EBITDA increased by 12% to RMB 165 billion. Nangab Net Income increased 11% to RMB 157.5 billion, while Nangab Diluted Earnings per ADS saw a fast increase of 14%, strengthened by our ongoing share repurchase program.

Jiang Fan: Thank you Chau Fi first.

Speaker Change: First I will provide a recap of the key financial highlights for fiscal year 'twenty 'twenty four.

Speaker Change: Following the overview I will provide a detailed review of the financials for the March quarter.

Speaker Change: During this fiscal year 'twenty 'twenty four our total consolidated revenue was RMB $941 2 billion an increase of 8%.

Speaker Change: Consolidated adjusted EBIDTA increased by 12% to RMB 165 billion.

Hong Xu: Nangab Net Income increased 11% to RMB 157.5 billion, while Nangab Diluted Earnings per ADS saw a fast increase of 14% strengthened by our ongoing share repurchase program. Excluding Sunnod, Fresh Apple, and in-time businesses that have physical retail operations, group revenue would have grown at approximately 11 percent, and our group consolidated adjusted beta margin would have been approximately 3.6 percentage points higher at approximately 21 percent. During the fiscal year 2024, under the leadership of the Capital Management Committee and our Board of Directors, we increased our cash return to the shareholders.

Speaker Change: non-GAAP net income increased 11% to RMB 157, 5 billion, while non-GAAP diluted earnings per eight yes, salt fast increase of 14% spend and by our ongoing share repurchase program.

Hong Xu: Excluding SunNod, FreshApple, and in-time businesses that have physical retail operations, group revenue would have grown by approximately 11%, and our group consolidated adjusted beta margin would have been approximately 3.6 percentage points higher at approximately 21%. During the fiscal year 2024, under the leadership of the Capital Management Committee and our Board of Directors, we increased cash returns to the shareholders; we repurchased a total of about 1.25 billion ordinary shares, or equivalent to 156 million ADS, for a total consideration of US dollar 12.5 billion. After accounting for the ESOP issuance, our outstanding shares decreased by 5.1% in fiscal year 2024.

Speaker Change: Excluding San not fresh at Pall and <unk> businesses that have physical retail operations group revenue would have grown approximately 11% and our group consolidated adjusted EBIDTA margin would have been approximately three six percentage points higher at approximately 21%.

Speaker Change: During the fiscal year 'twenty fall under the leadership of the capital Management Committee and our board of Directors. We have increased cash return to shareholders, we repurchased a total of about 1.25 billion ordinary shares.

Hong Xu: We repurchased a total of about 1.25 billion ordinary shares, or equivalent to 156 million ADS, for a total consideration of U.S. dollar 12.5 billion. After accounting for ESOP issuance, our outstanding shares decreased by 5.1% in fiscal year 2024.

Speaker Change: <unk> 266 million for a total consideration of USD 12 5 billion.

Speaker Change: After accounting for Aesop issuance, our outstanding shares decreased by 5.1% in fiscal year 'twenty plentiful.

Hong Xu: Regarding the cash dividend, we declared an annual cash dividend of U.S. dollar 1 per ADS totaling about US $ 2.5 billion for fiscal year 2023, which was paid out in January 2024. Furthermore, our Board of Directors has approved an annual cash dividend for fiscal year 2024 of US$1 per ADS, and a one-time extraordinary cash dividend, a distribution of proceeds from the disposition of certain financial investments in the amount of US$0.66 per ADS, with total cash dividends amounting to approximately US$4 billion.

Hong Xu: Regarding the cash dividend, we declared an annual cash dividend of U.S. dollar 1 per ADS totaling about US $ 2.5 billion for fiscal year 2023, which was paid out in January 2024. Furthermore, our Board of Directors has approved an annual cash dividend for fiscal year 2024 of US$1 per ADS and a one-time extraordinary cash dividend as a distribution of proceeds from the disposition of certain financial investments in the amount of US$0.66 per ADS, with total cash dividends amounting to approximately US$4 billion.

Speaker Change: Regarding cash dividend, we declared an end use cash dividend of U S. Dollar one her avs totaling about USD, two 5 billion for fiscal year 2023 which was paid out in January 2024.

Speaker Change: The mall our board of Directors has approved an annual cash dividend for fiscal year 'twenty 'twenty fall of U S. Dollar one or a D S and at one time extraordinary cash dividend is the distribution of proceeds from disposition of certain finance your investments in the amount of U S dollar <unk> T.

Speaker Change: He sends parade, yes, with total cash dividend.

Speaker Change: Mounting to approximate to the U S dollar 4 billion.

Hong Xu: Through a combination of share repurchase and cash dividends, we have returned and plan to return about US$16.5 billion to shareholders for fiscal year 2024, up from US$13.4 billion for fiscal year 2023. We are committed to returning value to our shareholders and will continue to execute our capital return program. Now, let me provide a review of our financial performance for the March 2024 quarter. Overall, we observed improving fundamentals across our major businesses, supported by enhanced investments aimed at steering growth. During the quarter, our total consolidated revenue was RMB 221.9 billion, an increase of 7%. However, consolidated adjusted beta decreased by 5% to RMB 24 billion.

Speaker Change: So a combination of share repurchase and the cash dividends, we have returned and plan to retire or all U S. Dollar 16.5 billion to shareholders for fiscal year 'twenty 'twenty fall off from U S. Dollar searching point 4 billion for fiscal year 2023 we have.

Speaker Change: Committed to returning value to our shareholders and we'll continue to execute our capital return programs.

Speaker Change: Now let me provide a review of our financial performance for the March 'twenty 'twenty four quarter.

Hong Xu: Our non-GAAP net income was RMB 24.4 billion, a decrease of 11%. However, the decline in our non-GAAP dilutive earnings per ADS was more moderate at 5% given our ongoing share repurchase program. Our net income was RMB0.9 billion, a decrease of RMB21.1 billion. This decline was primarily due to market changes of RMB19.9 billion from our equity investments in publicly traded companies, which shifted from a gain in the previous year to a loss this year.

Speaker Change: Overall, we upset to improving fundamentals across our major businesses.

Speaker Change: <unk> bye enhance the investments aim that hearing.

Speaker Change: Yes.

Speaker Change: During the quarter. Our total consolidated revenue was RMB $221 9 billion, an increase of 7% consolidated adjusted EBIDTA decreased by 5% to RMB 24 billion.

Speaker Change: non-GAAP net income was RMB $24 4 billion a decrease of 11%. However, the decline in non-GAAP diluted earnings paid yes was more mild moderate at 5% given how the ongoing share repurchase program.

Speaker Change: Our GAAP net income was RMB 0.9 billion a decrease of RMB 21.1 billion. This decline was primarily due to mark to market changes.

Speaker Change: RMB 19.9 billion from our equity investments in publicly traded companies with shifting from a gain in previous year to a loss this year.

Speaker Change: As of March 31st 'twenty 'twenty fall, we continue to maintain a strong net cash position of RMB $446 5 billion all U S dollar $61 8 billion.

Hong Xu: As of March 31, 2024, we continue to maintain a strong net cash position of RMB 446.5 billion, or US dollar 61.8 billion. Free cash flow this quarter was RMB 15.4 billion, a decrease of RMB 16.9 billion compared to the same quarter last year.

Speaker Change: Free cash flow. This quarter was RMB 15, 4 billion a decrease of RMB 16.9 billion compared to the same quarter last year. The decrease mainly reflected the increase of RMB seven 7 billion in capital expenditure.

Hong Xu: The decrease mainly reflected an increase of RMB 7.7 billion in capital expenditure, the majority of which reflected our investments in Alibaba Cloud infrastructure, as well as a special dividend of RMB 10.5 billion from Ant Group in the same quarter last year. Now, let's look at cost trends as a percentage of revenue excluding SBC during this quarter. The Cost of Revenue Ratio increased by 1 percentage point to 67%, the Product Development Expenses Ratio remained stable at 5%, the Sales and Marketing Expenses Ratio increased by 1 percentage point to 13%, and the GNA expenses ratio decreased by 1.24%.

Hong Xu: The decrease mainly reflected an increase of RMB 7.7 billion in capital expenditure, the majority of which reflected our investments in Alibaba Cloud infrastructure, as well as a special dividend of RMB 10.5 billion from Ant Group in the same quarter last year. Now, let's look at cost trends as a percentage of revenue excluding SBC during this quarter. The cost of revenue ratio increased by 1 percentage point to 67%, while the product development expenses ratio remained stable at 5%.

Speaker Change: Juruti off which reflected our investment in Alibaba cloud infrastructure as well as a special dividend of RMB 10, 5 billion from NN group in the same quarter last year.

Hong Xu: Sales and marketing expenses increased by 1 percentage point to 13%, while GNA expenses decreased by 1.24%. Now let's look at the segment results starting with Taobao and Tmall Group. Revenue from Taobao and Tmall Group was RMB 93.2 billion, an increase of 4%. During the quarter, our online GMV achieved double-digit growth, which is driven by rapid order growth supported by a strong increase in the number of purchases and the purchase frequency. Strong GMV growth supported a 5% increase in customer management revenue. Though the overall take rate declined slightly, the overall take rate was impacted by a combination of two factors.

Speaker Change: Now, let's look at cost trends as a percentage of revenue excluding SBC during this quarter.

Speaker Change: Cost of revenue ratio increased by one percentage point to 67% product development expenses ratio remained stable at 5%.

Speaker Change: Sales and marketing expenses ratio increased by one percentage point to 13%.

Speaker Change: G&A expense ratio decreased by one percentage point to 4%.

Speaker Change: Now, let's look at a second one result, starting with Taobao and Tmall group.

Hong Xu: Now let's look at the segment results starting with Taobao and Tmall Group. Revenue from Taiwan Tmall Group was RMB 93.2 billion, an increase of 4%. During the quarter, our online GNV achieved double-digit growth, which is driven by rapid order growth supported by a strong increase in the number of purchases and the purchase frequency. Strong GMV growth supported a 5% increase in customer management revenue. Though the overall take rate declined slightly, the overall take rate was impacted by a combination of two factors.

Speaker Change: Revenue from Taobao, and Tmall group was RMB $93 2 billion, an increase of 4% during the quarter. Our online DNV achieved a double digit growth, which is driven by rapid order growth supported by strong increase in number of purchases and the purchase frequency.

Speaker Change: <unk> growth supported a 5% increase in custom manual revenue, though overall take rate declined slightly the overall take rate was impacted by a combination of folks at two factors Firstly top on Tmall T. N V. Both increased strongly that decrease in take rate was due to <unk>.

Hong Xu: Firstly, Taobao and Tmall GMV both increased strongly. The decrease in take rate was due to Taobao's GMV growth outperforming that of Tmall. This trend continues to reflect increasing demand for price-competitive products offered on our platform. Second, take rate was also impacted by the introduction of new models that currently have low monetization rates.

Speaker Change: Rose outperforming that of Tmall. This trend continues to reflect increasing demand of price competitive products offered to our platform.

Speaker Change: Take rate was also impacted by the introduction of new models that currently have low monetization rates. We believe our overall take rate has room to improve as the percentage of paying merchants and now our SME merchants remains relatively low and we have yet to roll out the new advertising tools.

Hong Xu: We believe our overall take rate has room to improve, as the percentage of paying merchants among our SME merchants remains relatively low, and we have yet to roll out the new advertising tools. As we gradually roll out the new advertising tools that would further enhance merchants' ROI, we see upside from potential increases in merchant adoption, as well as higher incremental spending from paying merchants. Direct sales and other revenue decreased 2% to RMB24.7 billion.

Speaker Change: As we gradually roll out the new advertising to establish further enhancing merchants of all why we see upside from.

Potential increase in merchant adoption as well as higher incremental spending from paying merchants.

Speaker Change: Direct sales and other revenue decreased 2% to RMB 24 7 billion.

Hong Xu: China Commerce Wholesale Business revenue increased 20% to RMB5 billion, primarily due to an increase in revenue from value-added services provided to paying members. Taobao and Tmall Group's adjusted debt was RMB 38.5 billion compared to RMB 39 billion in the same quarter last year, primarily due to the increase in investment in user experience, which resulted in improved customer retention and higher purchase frequency, and technology infrastructure, partly offset by the increase in revenue from customer management services.

Speaker Change: China Commerce wholesale business revenue increased 20% to RMB 5 billion, primarily due to an increasing revenue from value added services provided to paying members.

Speaker Change: How about in Chemo group I'd, just say it taught was RMB 38.5 billion compared to RMB 39 billion in the same quarter last year, primarily due to the increasing investment in user experience, which resulted in improved customer retention and higher purchase frequency.

Hong Xu: Taobao and Tmall Group adjusted a bit higher adjusted for RMB 38.5 billion compared to RMB 39 billion in the same quarter last year, primarily due to the increase in investment in user experience, which resulted in improved customer retention and higher purchase frequency and technology infrastructure, partly offset by the increase in revenue from customer management services. Revenue from Cloud Intelligence Group was RMB 25.6 billion during the quarter, an increase of 3%. We are committed to our strategy of focusing on high-quality revenues from increasing public cloud adoption while reducing low-margin project-based contracts.

Technology infrastructure, partly offset by the increase in revenue from customer management service.

Yeah.

Revenue from cloud Intelligence group was RMB $25 6 billion during the quarter, an increase of 3%. We are committed to our strategy of focusing on high quality revenues from increasing public cloud adoption, while reducing low margin project based contracts.

Hong Xu: Revenue from Cloud Intelligence Group was RMB 25.6 billion during the quarter, an increase of 3%. We are committed to our strategy of focusing on high-quality revenues from increasing public cloud adoption while reducing low-margin project-based contracts. During the quarter, our core public cloud offerings, which include products such as Elastic Compute, Database, and AI products, recorded double-digit growth in revenue. Additionally, during this quarter, AI-related revenue experienced accelerated growth and continued to record triple-digit growth. We expect the strong revenue growth in public cloud and AI-related products will offset the impact of the roll-off of project-based revenue. Cloud-adjusted EBITDA increased by 45% to RMB 1.4 billion.

Hong Xu: During the quarter, our core public cloud offerings, which include products such as Elastic Compute, Database, and AI products, recorded double-digit growth in revenue. Additionally, during this quarter, AI-related revenue experienced accelerated growth and continued to record triple-digit growth. We expect the strong revenue growth in public cloud and AI-related products will offset the impact of the roll-off of project-based revenue. Cloud-adjusted EBITDA increased by 45% to RMB 1.4 billion.

Speaker Change: During the quarter I'll call public cloud offerings, which include products, such as elastic compute database and AI products recorded double digit growth in revenue.

Speaker Change: This quarter AI related revenue experienced a saturated growth and a continued to record triple digit growth.

Speaker Change: We expect the strong revenue growth in public cloud and AI related products will offset impact of the roll off of project based revenues.

Speaker Change: Adjusted EBIDTA increased by 45% to RMB, one 4 billion. The increase was primarily due to improving product mix through our focus on public cloud and operating efficiency.

Hong Xu: The increase was primarily due to improving product mix through our focus on public cloud and operating efficiency. Alibaba International Digital Commerce Group revenue was RMB 27.4 billion, an increase of 45%. Revenue from the international commerce retail business increased by 56% to RMB 22.3 billion.

Speaker Change: Alibaba International Digital Commerce group revenue was RMB 27, 4 billion, an increase of 45% revenue from international Commerce retail business increased by 56% to RMB 22, 3 billion. The increase in revenues was primarily due to the solid.

Hong Xu: The increase in revenue was primarily due to the solid combined order growth of AIDC's retail businesses, revenue contribution from AliExpress's Choice, as well as improvements in monetization. For example, revenue from our international commerce wholesale business increased by 11% to RMB 5.2 billion. The increase was primarily due to an increase in revenue generated by cross-border related value-added services. AIDC's adjusted EBITDA was a loss of RMB 4.1 billion compared to a loss of RMB 2.2 billion in the same quarter last year.

Hong Xu: The increase in revenue was primarily due to the solid combined order growth of AIDC's retail businesses, revenue contribution from AliExpress' Choice, as well as improvements in monetization. For example, revenue from our international commerce wholesale business increased by 11% to RMB 5.2 billion. The increase was primarily due to an increase in revenue generated by cross-border related value-added services. AIDC's adjusted EBITDA was a loss of RMB4.1 billion compared to a loss of RMB2.2 billion in the same quarter last year.

Speaker Change: Combine order growth of AI D six retail businesses.

Revenue contribution from Ali Express his choice as well as improvements in monetization.

Speaker Change: Revenue from our international Commerce wholesale business increased by 11% to RMB five 2 billion. The increase was primarily due to an increasing revenue generated by cross border related value added services.

Speaker Change: D C. 's adjusted EBIDTA was a loss of RMB, four 1 billion compared to a loss of RMB. Two 2 billion in the same quarter last year loss increased primarily because of increased investment of businesses, including Ali expressed choice and the trend is cross border business.

Hong Xu: Loss increased primarily because of increased investment in businesses including AliExpress Choice and TrendView's cross-border business, partly offset by improvements in monetization. Total revenue for Tsai Ing-wen grew 30% to RMB24.6 billion, primarily contributed by the increase in revenue from cross-border fulfillment services. Tainiu's Adjusted EBITDA was a loss of RMB 1.3 billion compared to a loss of RMB 319 million in the same quarter last year, primarily due to additional retention incentives granted to Tainiu employees recognized during the quarter in connection with the withdrawal of its IPO.

Hong Xu: Loss increased primarily because of increased investment in businesses including AliExpress Choice and TrendView's cross-border business, partly offset by improvements in monetization. Total revenue for Tsai Ing-wen grew 30% to RMB 24.6 billion, primarily contributed by the increase in revenue from cross-border fulfillment services. Tainiu's Adjusted APR was a loss of RMB 1.3 billion compared to a loss of RMB 319 million in the same quarter last year, primarily due to additional retention incentives granted to Tainiu employees recognized during the quarter in connection with the withdrawal of its IPO.

Speaker Change: Partly offset by improvements in monetization.

Speaker Change: Total revenue for Titan Europe grew 30% in time be $24 6 billion, primarily contributed by increasing revenue from cross border fulfillment services Tanya adjusted EBITA was a loss of RMB, one 3 billion compared to a loss of RMB 319 million.

In the same quarter last year, primarily due to additional retention incentives granted to tiny of employees.

Speaker Change: Recognize that during the quarter in connection with the withdrawal of its IPO.

Hong Xu: Local service group revenue in the March quarter grew 19% to RMB 14.6 billion, primarily due to the order growth of Erlema AMAP. Local service group adjusted EBITDA was a loss of RMB 3.2 billion this quarter, compared to a loss of RMB 4.1 billion in the same quarter last year, primarily due to the continued narrowing of losses from our to-home business driven by Erlema's improved unit economic Revenue from our DME Group was RMB 4.9 billion, a decrease of 1%. Adjusted EBITDA was a loss of RMB 884 million, compared to a loss of RMB 1.1 billion in the same quarter last year.

Hong Xu: Local service group revenue in the March quarter grew 19% to RMB14.6 billion, primarily due to the order growth of Erlema-AMAP. Local service group adjusted EBITDA was a loss of RMB3.2 billion this quarter, compared to a loss of RMB4.1 billion in the same quarter last year, primarily due to the continued narrowing of losses from our to-home business, driven by Erlema's improved unit economic Revenue from our DME Group was RMB 4.9 billion, a decrease of 1%. Adjusted EBITDA was a loss of RMB 884 million, compared to a loss of RMB 1.1 billion in the same quarter last year.

Speaker Change: Local service group revenue in the March quarter grew 19% to RMB 14, 6 billion, primarily due to the order growth of eight a map.

Speaker Change: Service group adjusted EBITA was a loss of RMB three 2 billion this quarter.

Speaker Change: Pat to a loss of RMB four 1 billion in the same quarter last year, primarily due to the continued narrowing of loss from our two home business driven by earlier unless improved the unit economics and increasing business scale.

Speaker Change: Revenue from our <unk> group was RMB four 9 billion a decrease of 1% adjusted EBITA was a loss of RMB 884 million compared to a loss of RMB. One 1 billion in the same quarter last year loss reduced primarily due to the reduced loss of Youku.

Hong Xu: The loss decreased primarily due to the reduced loss of Youku. However, revenue from all other segments decreased 3% to RMB 51.5 billion, mainly due to the decrease in revenue from SunNot and Alibaba Health, partly offset by the increase in revenue from FreshApple. The decrease in revenue from SunNot was mainly driven by the scale down of the supply chain business and the decrease in bucket size. I just said Bitao from all other segments was a loss of $2.8 billion compared to a loss of RMB 1.9 billion in the same quarter last year, primarily due to the increased losses from FreshPool and the decrease in profitability of Lingxi Games.

Hong Xu: The loss decreased primarily due to the reduced loss of Youku. However, revenue from all other segments decreased 3% to RMB 51.5 billion, mainly due to the decrease in revenue from SunNot and Alibaba Health, partly offset by the increase in revenue from FreshApple. The decrease in revenue from SunNot was mainly driven by the scale down of the supply chain business and the decrease in bucket size. I just said Bitao from all other segments was a loss of $2.8 billion compared to a loss of RMB 1.9 billion in the same quarter last year, primarily due to the increased losses from Freshpool and the decrease in profitability of Lingxi Games.

Speaker Change: Revenue from all other segment decreased 3% to RMB 51, 5 billion, mainly due to the decrease in revenue from Sun, not and Ali Baba House, partly offset by the increase in revenue from fresh it Paul that decrease in revenue from Sun nuts was mainly driven by the scale down of supply chain business.

Speaker Change: And decreasing pocket size.

Speaker Change: I'm just a bit tough from all other Sacramento was a loss of 2.8 billion compared to a loss of RMB. One 9 billion in the same quarter last year, primarily due to the increase of losses from fresh Apple and the decreasing profitability offerings she games.

Speaker Change: Lastly, we have been preparing for our primary listing in Hong Kong and currently expect to complete this by the end of August of 'twenty 'twenty four we will make further announcements on the primary conversion date in due course.

Hong Xu: Lastly, we have been preparing for our primary listing in Hong Kong and currently expect to complete this by the end of August 2024. We will make a further announcement on the primary conversion date in due course. In closing, our robust balance sheet positions us well to strategically reinvest our cash flows to foster growth and strengthen leadership in core businesses, thereby improving future returns on invested capital. As Ellie and Jiang Fan mentioned, we anticipated that near-term investment will yield improved user experience in our domestic e-commerce platform that supports strong GME growth in FY25 and enhance monetization in the second half of FY25.

Hong Xu: Lastly, we have been preparing for our primary listing in Hong Kong and currently expect to complete this by the end of August 2024. We will make a further announcement on the primary conversion date in due course. In closing, our robust balance sheet positions us well to strategically reinvest our cash flows to foster growth and strengthen leadership in core businesses, thereby improving future returns on invested capital. As Eddie and Jiang Fan mentioned, we anticipated that near-term investment will yield, firstly, an improved user experience on our domestic e-commerce platform that supports strong GMV growth in FY25 and enhance monetization in the second half of FY25.

Speaker Change: In closing, our robust balance sheet positions us well to strategically reinvest our cash flows to foster growth and strength and leadership in core businesses, thereby improving future returns.

Speaker Change: Is that sort of capital.

As Eddie and channels I mentioned, we anticipated that's near term investment will yield improved firstly improved user experience in our domestic E. Commerce platform that supports strong do you have any problems in FY 'twenty five and enhance the monetization in the second half.

Hong Xu: Secondly, a return to double-digit revenue growth in the second half of FY25 for Alibaba Cloudbase. And thirdly, continuous rapid growth momentum while improving unit economics from AIDC. We are seeing positive initial results, making us even more confident in achieving strong and sustainable growth in our core businesses. Thank you, and that's the end of our prepared remarks, where we can open up for Q&A. Hi everyone.

Hong Xu: Secondly, a return to double-digit revenue growth in the second half of FY25 for Alibaba Cloud. And thirdly, continuous rapid growth momentum while improving unit economics from AIDC. We are seeing positive initial results, making us even more confident in achieving strong and sustainable growth in our core businesses. Thank you, and that's the end of our prepared remarks, where we can open up for Q&A. Hi everyone.

Speaker Change: FY 'twenty five secondly, a return to double digit revenue growth in the second half of 'twenty.

Fiscal year 'twenty, five for Alibaba cloud business, and thirdly continuous rapid growth momentum, while improving unit economics from a D. C. We're seeing positive initial results, making us even more confident in achieving strong and sustainable growth in our core businesses.

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

Operator: For today's call, you are welcome to ask questions in Chinese or English. A third-party translator will provide consecutive interpretation for the Q&A session. Please note that the translation is for convenience purposes only.

Speaker Change: Hi, everyone for today's call you're welcome to ask questions in Chinese or English.

Speaker Change: Your party translator will provide consecutive interpretation for the Q&A session.

Speaker Change: Please know that the translation is for convenience purpose only in the case of any discrepancy I imagine a statement in there or there's no language will prevail.

Speaker Change: If you are unable to hear the Chinese translation bilingual a transcript of this call will be available on our website within one week after the meeting.

Operator: In the case of any discrepancy, our manager's statement in the original language will prevail. If you are unable to hear the Chinese translation, a bilingual transcript of this call will be available on our website within one week after the meeting. ,, , , Operator, please connect the speakers and SI conference lines now and start the Q&A session when ready. Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be called. If you wish to cancel your request, please press star 2.

Operator: In the case of any discrepancy, our manager's statement in the original language will prevail. If you are unable to hear the Chinese translation, a bilingual transcript of this call will be available on our website within one week after the meeting. ,, , , Operator, please connect the speakers and SIA conference lines now and start the Q&A session when ready. Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be called.

Speaker Change: Got you all it shouldn't hinder you know halfway between your own where you don't sell them one quote Union T. One or more T cell phone, considering you're going to you're going to see that Joe Joe T, saying signed at Moody's says I'm going to agile D. J, who you are doing like E. G will Mcguire tagging, yes, you, yeah, so sort of the tension right.

Speaker Change: Earning well thought cleaned out the only thing and city on work, where you're the strongest chivu, Jonathan J E. T S who hold the Ito and they tell me they want once that's out Pico.

Operator: If you're on a speakerphone, please pick up the handset to ask your question. To give more people the opportunity to ask questions, please keep yourself to no more than one question at a time. Your first question comes from... Fong with DBS. Please go ahead. Hi, good evening, management. Thanks for taking my question. I have a question regarding CMR versus GMV growth.

Speaker Change: Operator, please connected speakers and SRA conference lines, now and start the Q&A session when ready thank you.

Speaker Change: Thank you.

Speaker Change: To ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two.

Operator: If you wish to cancel your request, please press star- If you're on a speakerphone, please pick up the handset to ask... To give more people the opportunity to ask questions, please keep yourself to no more than one question at a time.

If you're on a speakerphone please pick up the handset to ask you a question.

Speaker Change: To give more people the opportunity to ask questions. Please keep yourself to no more than one question at a time.

Kenneth Fong: Your first question. Fong with DBS, please go ahead. Hi, good evening, management. Thanks for taking my question. I have a question regarding CMR versus GMV growth.

Speaker Change: Your first question comes from Kenneth Fong with UBS. Please go ahead.

Kenneth Fong: Hi, Good evening management, Thanks for taking my question.

Kenneth Fong: Our strategy of focusing on user experience and price competitiveness has delivered solid results, delivering double-digit GMV growth despite the intense competition. However, as Toby earlier highlighted, because of the makeshift and early monetization, we see CMR underperforming GMV at only 5% growth. With our new ad product, site-wide marketing, Quanzhang Tuiguang, to be launched, how should we think about the pace for this gap to narrow over time? And then, down to EBITDA, for the incremental growth in the CMR, should we expect this to be reinvested back into the business, or should we actually expect a margin expansion as the CMR growth gradually reaccelerates? Thank you. Good evening, Mr. Guan.

Kenneth Fong: Our strategy of focusing on user experience and price competitiveness has yielded solid results, delivering double-digit GMV growth despite the intense competition. However, as Toby earlier highlighted, because of the makeshift and early monetization, we see CMR underperforming GMV at only 5% growth. With our new ad product, site-wide marketing, Quanzhang Tui Guang, to be launched, how should we think about the pace for this gap to narrow over time? And then, down to EBITDA, for the incremental growth in the CMR, should we expect this to be reinvested back into the business, or should we actually expect a margin expansion as the CMR growth gradually re-accelerates? Thank you. Good evening, Mr. Guan.

Kenneth Fong: I have a question regarding the C. M offers this is Jimmy group.

Kenneth Fong: Our strategy for focusing on user experience and price competitiveness have solid result, delivering a double digit G. M equals despite the intense competition as tobi earlier high like because of the mixture for an early and monetization, we see CMO underperforming G M B at least 5% rule.

Kenneth Fong: With our new product set by.

Kenneth Fong: Marketing change into block <unk>.

Kenneth Fong: To be launch how should we think about the pace for this gap to narrow over time, and then down to EBITA for the incremental growth in the CMO should we expect this to be invest back to the business or we should actually expect your margin gradual expansion at the CMO ROFO Quechee D. We celebrate.

Speaker Change: Thank you.

Speaker Change: Oh.

Kenneth Fong: Thank you for answering my question. My question is about the growth relationship between CMR and GMV. The company is focused on improving user experience and pricing, bringing solid results. After the launch, how should we understand the difference between the two?

Kenneth Fong: Thank you for accepting my question. My question is about the growth relationship between CMR and GMV. The company is focused on improving the user experience and pricing, bringing a solid market effect. Is it true that after CMR increases, the government will invest more in the business? Or will the company's EBITDA increase? explanation and then, you know, Eddie can add.

Speaker Change: Oh gosh, yeah tissue with a T. One.

Speaker Change: Sure Glenn and you see them, Mark Hood, GMP and young children, so drug classes.

Speaker Change: Just as a function of tranche will you one shot you know who to yet put.

Speaker Change: Chaco Tyler Joshua I'll take a shot.

Speaker Change: I see.

Speaker Change: She did it seem drunk.

Speaker Change: Yes, sure Shannon wished with champion.

Speaker Change: Oh, Hi, Tobey I'd say financial chunk.

Speaker Change: Paula you told me switch on Iranian oil Mccandless TMR.

Speaker Change: Youre on hazard Du champions at some time to go back from jewelry.

Speaker Change: That's sort of Cheshire Lino mentioned between <unk> Chan Chung show theater tickets each of the tweets where your home you can go through her lead ship, Chile onshore the Chow AR services saw your whole Chico's CMO, she called hot too good.

Kenneth Fong: Is it that after CMR is increased, the government will invest more in the business? Or is it that the company's EBITDA will increase? explanation, and then, you know, Eddie can add.

Speaker Change: Some food Emporium Queens tied towards these Utica you.

Speaker Change: Arthur I'm sure to sequence the EBITA, we see article.

Speaker Change: Yeah.

Speaker Change: Kind of thanks for the question I think I would just start Ah Ah Ah provide my explanation than you know Eddie can add I think you know as as you can see in this quarter. That's G. N V had double digit growth.

Hong Xu: I think, you know, as you can see, in this quarter, the GMV had double-digit growth. And as I said, actually, this growth is both quite strongly in Taobao and Tmall merchants. So the first thing is, I think the execution of our strategy has seen the result. Basically, we are back to growth. That's a very important message.

Yongming Wu: I think, you know, as you can see, in this quarter, the GNV had double-digit growth. And as I said, actually, this growth is both quite strongly in Taobao and Tmall merchants. So the first thing is, I think the execution of our strategy has seen the result. Basically, we are back to growth. That's a very important message.

Eddie: And as I said actually this growth phase both are quite strongly in and taobao and Tmall merchants. So so the first thing is I think our the execution of our strategy. We have to see the result, basically where we are back in growth that's very important message and secondly, as we were saying we are in <unk>.

Hong Xu: Secondly, as we were saying, we are introducing and enhancing our monetization product, and we'll be introducing the new, gradually rolling out the monetization product, which will help improve the ROI and eventually enhance the penetration into the merchants, particularly the SME merchants, as well as increase their up, you know, their spending in the monetization product. However, it would take some time since we are rolling out gradually. So we will be able to see the growth throughout the year, particularly in the second half of the year, where you will see the sort of like that result, you know, coming out during the second quarter of the year. Maybe Eddie will want to add something later.

Yongming Wu: Secondly, as we were saying, we are introducing and enhancing our monetization product, and we'll be introducing the new, gradually rolling out the monetization product, which will help improve the ROI and eventually enhance the penetration into the merchants, particularly the SME merchants, as well as increase their up, you know, their spending in the monetization product. However, it would take some time since we are rolling out gradually. So we will be able to see growth throughout the year, particularly in the second half of the year, where you will see the sort of like that result, you know, coming out during the second quarter of the year. As you can see, this season, TMP has achieved double-digit growth.

Eddie: Seeing enhancing our monetization product and it will be introducing the new grads.

Eddie: Gradually roll out in that that the monetization product, which were in health to enhancing the R Y and eventually enhancing our penetration into the merchant, particularly this SME merchants as well as increase they are up they are spending in that in that monetization path. However.

Eddie: Would take some time since we are rolling out gradually so we will be able to see that growth throughout the year, particularly in the second half of the year that you would see that sort of like in that that the result.

Eddie: Alex do you in the second quarter of the year.

Alex: Uh huh.

Toby: Toby question.

Toby: She saw home and kind of editorial downhill.

Hong Xu: As you can see, this season, TMP has achieved double-digit growth. This growth is especially obvious in the Taobao Tianmao market. Therefore, we can see that our company's implementation strategy is working. This is the first part.

Alex: Yeah, Yeah kind up in Seattle.

Alex: Yeah, you should should hold down we should trigger.

Alex: So the most out of the top at Chipmos, Shanghai actual incentives because sometimes you would see should mean Shandong in snow Mckee candle well my conclusion should a challenge USA.

Yongming Wu: This growth is especially obvious in the middle of the Taobao Tianmao market. So we can see that our company's implementation strategy is working. This is the first part.

Alex: Sure.

Yongming Wu: The second part is that we will gradually launch these commercialized products. This can increase the return on investment and the penetration rate among our merchants, especially small and medium-sized enterprises. Their expenses in the field of variable products will gradually increase, but this may take some time.

Alex: Sure Decouple from Thiago Bluefin Dahaneh too I mean, just we'd chubu like Twitch, who tcs showing them how to champion the junket tikal towards what we've all your car T. Gulfport monetized chunks, yet shown the trigger shouldn't hold you, which you should drink.

Hong Xu: The second part is that we will gradually launch commercialized products. This can increase the return on investment and the penetration rate in the business community, especially small and medium-sized enterprises. Their expenses in the field of portable products will gradually increase, but this may take some time.

Alex: Drink Seltzer come inside chicken <expletive> champion for me on the couch.

Alex: He got that should you kind of wish you are using to shoot him I thought with all of them are question Chubu like Twitch Foodies, a chunk treating them as <unk> shutdown you're under contract.

Hong Xu: We will gradually launch these products. You will see the effect in the second half of the year. Now, I will hand over to Ellie to introduce the progress of our commercialized products. Before that, I would like to explain our investment. We invested in Taotian Group to improve the consumer experience.

Yongming Wu: We will gradually launch these products. I believe you will see the effect in the second half of the year. I will hand over to Ellie to introduce the progress of our commercialized products. Before that, I would like to address our investment. We have invested in improving the consumer experience at Taotian Group. This investment has already achieved initial results.

Speaker Change: Oh, Okay that befall as Eddie it I'll give you more color on this instead of like the rollout of the monetization part of how would you. Just also explain on the investment we're making fun how 'bout tmall as we say we see the early success of executing on our strategy by enlarge.

Speaker Change: First thing in the customer experience various things focusing on consumer first so we see the result, and we are willing to invest.

Eddie: So that's the first thing Firstly secondly is in terms of investment we're making on the other hand, we are doing it in a very disciplined the way we do closely monitor the I Oh I E.

Eddie: For the one for the investment we can make with definitely wuest will seed a good ally format. So it's a very disciplined way. So we will continue to make the investment how much in terms of how much we're going to invest the way depending on that space. We're ramping up you know the consumer experience as well as you know was a surprise so.

Eddie: We have the resource and we are committed to make the investments.

Eddie: Yeah.

Eddie: How are you or are we talking of edits and you put a.

Eddie: Children, Shanghai Champions tend to Oh sure Jim Goss of nitrogen was helpful to show me, so I'm going to talk to.

Eddie: So since I told you in Utah.

Eddie: See you guys shot software to a T a.

Hong Xu: This investment has already achieved initial results. Because we see the results, we are willing to make further investments. Secondly, any investment we make will have a high degree of discipline. Any investment we make must have a return on investment. So we will continue to make such investments in this way. How much investment? This depends on our further deployment to improve the customer experience and the speed of product enrichment. Thank you.

Eddie: Chi from food using should shoot on the trooper to go choice Oh I'm in the condo choice out. So we will continue each year. It's what do you want to talk to the majority of women sweater you Hunter told to you didn't wait.

Yongming Wu: Because we see the results, we are willing to make further investments. Secondly, any investment we make will have a high degree of discipline. Finally, any investment we make must have a return on investment.

Eddie: Got it so you do see them and so they're gonna towards who I'm sure you all kind of on your talks with we bought so we won't see shoot them to tell them to fall should see she likes what are you on the tour to imitate Santos at Giga Your Cat woman just.

Yongming Wu: So we will continue to make such investments in this way. And how much to invest depends on our further deployment of customer experience and product richness. Thank you.

Eddie: T call to.

Eddie: Coty, Yeah could you get chunky from food to the Sudan.

Eddie: Sue can you put a push.

Eddie: Oh.

Yongming Wu: I would like to add to what everyone is concerned about, which is the progress of the full-fledged promotion and our plan. In general, in order to attract more small and medium-sized advertisers, it is more simple to invest to gain their business growth. The full-fledged promotion is a relatively important product for us now. In general, we are now in a... Based on the data provided by the client, we can improve the overall ROI of the client.

Yongming Wu: I would like to add to what everyone is concerned about, which is the progress of the full-fledged promotion and our plan. In general, in order to attract more small and medium-sized advertisers, it is more simple to invest to gain their business growth. The full-fledged promotion is a relatively important product for us now. In general, we are now in a... Based on the data provided by more customers, we can improve the overall ROI of our customers. So we think it will still take some time, but this is a process that can be achieved with certainty.

Eddie: And I sit here or whatever it was only gonna finally, just a.

Eddie: Why isn't that sends out and tell you the tiger team townhome in the Chihuahua someone's yet I thought jeez. So she hadn't couldn't couldn't do it at the only cell phone gone to look in country and then that your telephone.

Eddie: Although it had a hotel type of thing and sends out agenda Untasteful machine that you're going to be totally out of time here not don't you shouldn't elements and so you'd say you're good.

Eddie: You go because you can show a great more cocoa Nader you got to listen to your door no. One wants that says it's supposed to do you're going to meet with you. So that she can do that for the time.

Eddie: It doesn't tell you the Cushing Cushing does futility at that bottom Cook with telephone the alloy that you're also a shot you hold the same units into two elements I tell them no sorry, if I'm watching you say young guns Hunter said yesterday, so I shouldn't say it wasn't done washing each he said he couldn't do the cook with telephone switches. It's useful so she she's a woman does tend to get cookie.

Eddie: Allied that you've got about something that you guys showed me don't you take us through the elements you don't know how to play a show you're going to sit here doesn't take us. So you got chicken anything can you sustain that you quote.

Yongming Wu: We think it will take some time, but this is a process that can be achieved with certainty. That is to say, the total number of customers in the full-fledged promotion from the test period to the official period.

Yongming Wu: After the official launch of the full-time promotion, we may also feel that it takes some time to increase the number of customers and increase the match between customers in different industries and traffic in different user groups. So I think after the official launch, we will gradually see an increase in revenue from the full-time promotion, but at that stage, we estimate that it will be around 12 months. From the test period to the official period, after the official period, if we start to do the full volume, we need a lot of, a long time, calculation adjustments, as well as customer and traffic matching, as well as customer penetration rate improvement.

Eddie: The whole woman tests.

Eddie: Trade switch runs out until it's a whole woman coming yes, Judah share you seem to suggest you shoot sunjata cool user and Jackup was epitopes hung in EMEA, but hollander hung yeh you'd have with home to your own call lunch in downtown Raleigh, Orlando took a P. P. So he says you know what you don't want me that's institutes was a hole.

Eddie: Oh in Kuwait, Swoopo saudade touch under onto someone would've been done that's a Nick you don't won't Gucci yesterday. So I'll go through it or you just don't want you to change that.

Eddie: So it's a cheap so since you know since it's your census used to hold it at home and that person Georgetown now well, Michelle and draw the contactless agenda. So it's hard to tell J E T Cook with the Coco Hollywood down to Pee paid you Cook with US and told me that Houston.

Yongming Wu: After the official period, if we start to do the full-fledged promotion, we need a lot of time to adjust the algorithm, as well as to match the customer and traffic and to increase the customer penetration rate. Yes, but I would like to emphasize that this process is actually a process of determination. It's just that we do need to understand the business model and the algorithmic model of the product. [inaudible] Thank you.

Speaker Change: They don't want to answer that.

Yongming Wu: Yes, but I want to emphasize that in this process, it is actually a deterministic process. It's just that we do need to operate the business model and the algorithm model of this product. [inaudible] Thank you.

Speaker Change: Yeah actually I'd say, it's like of course in Danone. She does seeger CIT anything that you're a quarter since I saw you and Jon dig selling them more so because it goes hunting to send home watching kisses schelzig out.

Speaker Change: Can you tell us how many you said yeah okay.

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

Yongming Wu: So, moving ahead with omni-platform marketing and whole-platform charging is an important direction that we're moving in as we're making it easier for SMEs to advertise. Of course, it's important to ensure that money that merchants are spending on advertising achieves solid ROI, so to that extent, we're currently adjusting and tweaking the algorithms, training the models, doing testing, and using the data from the testing to further improve the service and enhance ROI So all of this will, of course, take some time, but it is certain that we are moving in that direction and will eventually get there and further optimize it for different customers and for different sectors as a means of enhancing our revenues. So I expect that this process will take something like 12 months because it does take time to tweak the algorithms, get those data in place, and ensure everything is optimal.

Speaker Change:

Speaker Change: Thank you yes.

So moving.

Speaker Change: Moving ahead, with our omni platform marketing and our whole platform charging.

Speaker Change: Is an important direction that we're moving in.

Speaker Change: We're making it easier for our SME is to advertise.

Speaker Change:

Speaker Change: Of course, it is important to ensure that the money that merchants are spending on advertising achieved solid ROI. So to that extent. We are currently adjusting and tweaking the algorithms training. The models are doing testing and using the data from the testing to further improve the service and and Haps ROI.

Speaker Change: So all of this will of course take some time.

Speaker Change: But it is certain that we are moving in that direction and we'll.

Speaker Change: Eventually get there and further optimize it for different customers and for different sectors as a means of.

Speaker Change: Enhancing our our revenues so I expect that this process will take.

Yongming Wu: So I expect that this process will take something like 12 months because it does take time to tweak the algorithms, get those data in place, and ensure everything is optimal, but what I can tell you is that's certainly the direction that we're moving in, and we continue to fine-tune it. Next question. Thank you. Your next question comes from Gary Yu with Morgan Stanley. Please go ahead.

Speaker Change: Something like 12 months, because it does take time to tweak the algorithms to get those data in place.

Speaker Change: Sure everything is optimal.

Gary Yu: But what I can tell you is that's certainly the direction that we're moving in, and we continue to fine-tune it. Okay, next question. Thank you. Your next question comes from Gary Yu with Morgan Stanley. Please go ahead.

Speaker Change: What I can tell you is that certainly the direction that we're moving in and we continue to fine tune.

Speaker Change: Okay next question.

Speaker Change: Thank you. Your next question comes from Gary Yu with Morgan Stanley. Please go ahead.

Gary Yu: Hi, Thank you management for the opportunity My question is regarding the Ali cloud business.

Gary Yu: Hi. Thank you, management, for the opportunity. My question is regarding the iCloud business. I'm encouraged to hear from management that we expect it to resume bubble digital in the second half of the year. Could management please share some of the composition of the revenue growth driver behind it? You know, how much of the improvement in growth is coming from AI-related products? How much is it coming from the public cloud?

Gary Yu: Hi. Thank you, management, for the opportunity. My question is regarding the iCloud business. It's encouraging to hear from management that we're expected to resume bubble digital in the second half of the year. Could management please share some of the composition of the revenue growth driver behind it? You know, how much of the improvement in growth is coming from AI-related products? How much is it coming from the public cloud?

Gary Yu: Encourage to hear from management, and we expect it to resume double digit growth in the second half of the year.

Gary Yu: Could management, please share some of the composition of our.

Gary Yu: The revenue growth driver behind you now.

Gary Yu: How much of the improvement in growth is coming from AI related products, how much is coming from.

Gary Yu: And how much of that is coming from low-margin private cloud projects becoming a smaller part of the business? And then also related to that, once we are, you know, back up to the double-digit growth level, how should we look at the kind of medium-term margin for cloud businesses going forward? Thank you. Thank you, Director Cheng.

Gary Yu: Cloud and how much you said, it's coming from a low.

Gary Yu: In a low margin private cloud projects are becoming a smaller part of the business and then also related to that is once we are back up to the double digit growth level. How should we look at the kind of medium term margin for cloud business going forward. Thank you.

Speaker Change: Okay sure quantifying weather winter you should worry.

Gary Yu: My question is about cloud business. I just heard that in the second half of the year, the number of users will increase to double-digits. We feel that this is very encouraging news. So I want to know the revenue process of cloud business at that time. What will it be like?

Gary Yu: And how much of that is coming from low-margin private cloud projects becoming a smaller part of the business? And then also related to that, once we are back up to the double-digit growth level, how should we look at the kind of medium-term margin for cloud businesses going forward? Thank you. Thank you, Director Cheng.

Speaker Change: You know where to find me under.

Gary Yu: How many products are from AI-related products? How many will come from the public cloud? How many will come from the private cloud? Of course, the share of this business is gradually decreasing.

Gary Yu: My question is about cloud business. I just heard that in the second half of the year, we can see a double-digit increase. We feel that this is very encouraging news. So I want to know the revenue process for cloud business at that time. What will it be like?

Speaker Change: Gunther <unk> talk to us.

Speaker Change: By the end of <unk>, we'd all young we should hit sometime Oh, My God indulge.

Speaker Change: And it seemed that you guys saw the.

Speaker Change: The most shocking CIT I'll toss you the whole year with it you got Shaw coach Taco quick for me onto social B <unk> C U E.

Yongming Wu: How many products are related to AI? And how many will come from the public cloud? Of course, the share of the business is gradually decreasing. After the double-digit increase, what will be the long-term profit margin of the cloud business? In terms of our current revenue growth, the overall revenue growth of our cloud business mainly comes from the driving of new AI products. So at this stage, we will actually see a lot of new volume coming from our AI-related products.

Speaker Change: Shanghai, the chunky or issue less or you can call me at wash off issue right. So you have to see.

Speaker Change: You want me to deal with.

Speaker Change: If you wish it finished two tenths I just shot up.

Yongming Wu: Then, after the increase to two-digits, what will be the long-term profit margin of the cloud business? From the current revenue growth, the overall revenue growth of the cloud business mainly comes from the drive of new AI products. So at this stage, we will actually see a lot of new volume from our AI-related products. But because of the investment in AI-related products, it will also bring other traditional cloud computing products to the public cloud.

Speaker Change: I'll hold off on a say a week with all young we shoot sung Jong chew a hole or two junior with a zero new chunks tune chunks at a zero new Targa Wishy washy.

Speaker Change: Oh excuse me on what I have to go into just the two of them as Jan said, Oh, I'm I shouldn't that as soon as someone with that kind of doesn't want machines at a donkey the uinta.

Speaker Change: Yeah, well the so it turns out well I see AI and AR, sometimes even though I think it's you don't so you said that you thought one long way she's a woman who kind of almost no. Other single so now, let's see well actually I'm glad that's hunting. That's so anyway I can go on attempting to total towards the highway de La <unk> Chica cohorts.

Yongming Wu: But because of the investment in AI-related products, it will also bring customers other traditional cloud computing products on Alibaba Cloud. So we think these two parts will promote each other. In addition, what do you think of the reduction in the revenue of some projects in the Exclusive Cloud? We think that this part should be..., which can offset some of the project-based income that we have already reduced. At the same time, we think that the project-based income from last year to this year will not be affected by this year's project-based income.

Speaker Change: Louise.

Speaker Change: I mean, it sounds she thought that Chantal agencies, all the time, she won't lend you to say.

Speaker Change: Doyle, who San switching.

Yongming Wu: So we think these two parts will promote each other. In addition, how do you see the reduction in the income of some projects in the private-sector cloud? We think this part should be... which can offset some of the project-based income that we have already reduced. At the same time, we think that the project-based income from last year to this year will not be affected by these low-interest projects.

Speaker Change: So anyway, it prevents some of kind of that so anyway.

Speaker Change: Okay.

Speaker Change: Shovel into the soda the chance, though when we're doing the same thing you guys are saying.

Speaker Change: So I'm going to tell him you know with us always sort of turns out selling tickets you do it you can touch on lots of a home and so you can see the securities what it turns out I thought you show you see old machines as At&t's, yes, Sean what's the base of the solo Cessna email, so we need to.

Speaker Change: Well the way. She is are you, saying wait I guess, you could see a dual well metaxalone gains like hey, I see them.

Speaker Change: Shang Glenda solar with that either couldn't thought it sends out Tulsa.

Speaker Change: Sheldon Eugene said, yes, how does this year on the Tmall you noticed you tell them to solo closer to hear the email neither channel with a sort of a woman she had a tongo what's on juniors.

Yongming Wu: In about one to two quarters, the impact on our business will disappear. In the future, our main growth will come from long-term business value, high-profile products like our public cloud and AI-related products. Thank you. This is Eddie. I'll take that.

Yongming Wu: In about one to two quarters, the impact on our business will disappear. In the future, our main growth will come from long-term business values, high-performance products like our public cloud and AI-related products. Thank you. This is Eddie. I'll take that.

Talking to each other that you totally unless you do it Tonight.

Speaker Change: Oh, yeah within jewelry show us the way that you know there's not a woman does so we are the tens and <unk> zero and then you see it be Italia attempts at a you know what yes, you got them all leader Telemundo Colombian attempting.

Speaker Change: Attempting dishes soda without I know that it turns out.

Speaker Change: Yeah.

Speaker Change: Thank you this is Eddie and I'll I'll take that.

Yongming Wu: If you look at the overall revenue growth of the cloud business today, most of that is already being driven, I would say, by AI and AI-related new products. So going forward, a lot of the incremental growth we can expect to see in the cloud business will be related to investment that customers are making in AI. But there's a complementary effect because the more that customers invest in and make use of AI, the more demand they will also have for other of our various cloud offerings. So the two things go hand-in-hand. At the same time, we continue to decrease the share of project-based revenue in cloud's overall revenues.

Speaker Change: If you look at the.

Speaker Change: The overall revenue growth of the cloud business today, most of that is already being driven I would say by AI and AI related new products.

Speaker Change: Going forward a lot of the incremental growth, we can expect to see in the cloud business will be related to.

Speaker Change: Two investment our customers are making in AI, but also there's a complementary effect because the more the customers invest in and make use of AI. The more demand. They will also have for other of our various cloud offerings are the two things are.

Speaker Change: Go ahead and hand.

Speaker Change: At the same time, we continue to decrease the share of project based revenue in clouds. Overall revenues are in fact, the other parts of the cloud business already achieved double digit growth in.

Yongming Wu: In fact, the other parts of the cloud business already achieved double-digit growth in this quarter, but that continues to be offset by the ongoing, although diminishing, but still ongoing, impact of that low-margin project-based business. But as we continue to phase out that low-margin project-based business, we expect revenues to grow faster, primarily driven, again, by public cloud and by AI-enabled offerings, and we expect that we should see a complete disappearance of that drag within, say, one or two quarters into the new year.

Yongming Wu: In fact, the other parts of the cloud business already achieved double-digit growth in this quarter, but that continues to be offset by the ongoing, although diminishing, but still ongoing, impact of that low-margin project-based business. But as we continue to phase out that low-margin project-based business, we expect revenues to grow faster, primarily driven, again, by public cloud and by AI-enabled offerings, and we expect that we should see the complete disappearance of that drag within, say, one or two quarters into the new year.

Speaker Change: In this quarter, but that continues to be offset by the ongoing although diminishing but still ongoing impact of the low margin project based.

Speaker Change: Business, but as we continue to to phase out the low margin project based business, we expect revenues to us.

Speaker Change: Grow faster, primarily driven again by public cloud and by our AI enabled offerings and we expect that we should see that.

Speaker Change: A complete disappearance of that drag within say, one or two quarters into the new year.

Speaker Change: Oh, what's up with only kept going and she thought then they go criteria or minimum we lie.

Yongming Wu: I'd like to add to what you said about the future. After the two-digit growth brought by the main growth factors of the public cloud, we have a problem with the medium-to-long-term profit margin in the cloud business. In our public cloud products, most of the products maintain a reasonable and healthy profitability rate. But for AI-related products, we think this is at a very early stage of a 10-year IT cycle. We will maintain a relatively... We have a relatively healthy profit margin, but we will continue to invest more in the early stages of AI, but overall, all products in the public cloud will have a relatively healthy profit margin.

Yongming Wu: , After the two-digit growth brought by the main growth factor of public cloud products, we have a problem with the medium-to-long-term profit margin of cloud business. In our public cloud products, most of the products maintain a reasonable and healthy profit rate. But in AI-related products, we think this is a very early stage of a 10-year IT cycle. We will maintain a relatively... We have a relatively healthy profit margin, but we may continue to invest more in the early stages of AI, but in general, all products in the public cloud are likely to have a relatively healthy profit margin.

Speaker Change: Well wait for the <unk>.

Speaker Change: And you can go into a time King wait Toyota sends out he can sort that out in a way of sort of things onto the whole women's day, yeah. What's under your car sometimes you live in New Zealand, what made you decide to take a hit on that so we see a woman.

Speaker Change: Sorry, well medical ammonium time can you tell powerful are attempting dose about seeger bitch, all clearly it shouldn't come to you guys. You don't need does that AI is Shanghai knows is yes, I mean so.

Speaker Change: When would you see it go Seeger sounion thought so let's see the senior and thought that your I T till she doesn't hit until it teaches us almost way well be Josh you got you.

Speaker Change: Yeah in Canada, you've got you know it doesn't come in and say Hey, I just thought I'd say to you that in one way. So that's all good and tons shipped a total that's sort of don't care that so called going into soil types. You can talk all you don't see yoga Vidal quickly you know you could be touching on a little every day.

Yongming Wu: ?? On the second part of your question, which had to do with the kinds of profit margins we expect to achieve in the medium to long term, once we get to that place where public cloud primarily is driving our growth and we're back to double-digit growth, I would say that, for the most part, our public cloud offerings have very healthy profit margins. When it comes to AI, of course, we're looking at a 10-year IT new technology cycle; we're in the very early stage of that cycle, so we're talking about healthy margins, but with ongoing longer-term investment. But overall, the profit margins from the AI products will be healthy. Next question, please. Thank you. Your next question comes from Alex Yao with J.P. Morgan. Please go ahead.

Yongming Wu: ?? On the second part of your question, which had to do with the kinds of profit margins we expect to achieve in the medium to long term, once we get to that place where public cloud primarily is driving our growth and we're back to double-digit growth, I would say that, for the most part, our public cloud offerings have very healthy profit margins. When it comes to AI, of course, we're looking at a 10-year IT new technology cycle; we're in the very early stage of that cycle, so we're talking about healthy margins, but with ongoing longer-term investment. But overall, the profit margins from the AI products will be healthy. Next question, please. Your next question comes from Alex Yao with JP Morgan. Please go ahead.

Speaker Change: And I think the turnkey.

On the second part of your question, which had to do with.

Speaker Change: The kinds of <unk>.

Speaker Change: Profit margins, we expect to achieve in the medium to long term.

Speaker Change: Once we get to that place where a public cloud primarily is driving our growth and were back to double digit growth.

Speaker Change: I would say that for the most part our public cloud offerings have very healthy profit margins.

Speaker Change: When it comes to AI of course, we're looking at a 10 year.

Speaker Change: It is new technology cycle, we're in the very early stage of that cycle. So we're talking about a healthy margins, but with ongoing lager.

Speaker Change: Longer term investment, but overall, the our profit margins from the air products will be healthy.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Next question please.

Speaker Change: Thank you your next.

Speaker Change: Question comes from Alex Yao with JP Morgan. Please go ahead.

Alex C. Yao: Good evening, management team. And thank you for taking my question. So for the domestic e-commerce business, it's great to see the GME growth rate. Let's recover back to double-digits in this quarter.

Alex C. Yao: Good evening management team and thank you for taking my question. So for the domestic E Commerce business, it's great to see the <unk> growth rates.

Alex C. Yao: Can you show us to understand what is driving the GMV growth rates to narrow the pace versus the e-commerce market? Or put it in another way, what did you do in the past quarter that leads to a slowdown of market share loss? And a broader question is, what does it take to be competitive in the current China e-commerce market, given the rise of alternative e-commerce competitors in the market? Thank you. ???????????,??????????????, ????????????????GNV????????????, ???????????????????GNV?????, ?????????????????????, ??????????,???????????????????????????????, ???????????????????????????????????

Alex C. Yao: Recover back to double digit in this corner cancel pause to understand what is driving the growth rates to narrow.

Alex C. Yao: Can you help us to understand what is driving the GMV growth rates to narrow the pace versus the e-commerce market? Or put it another way, what did you do in the past quarter that led to a slowdown of market share loss? And a broader question is, what does it take to be competitive in the current Chinese e-commerce market, given the rise of alternative e-commerce competitors in the market? Thank you for accepting my question.

Speaker Change: The pace versus the e-commerce market.

Speaker Change: We'll put it in another way what did you do this in the past quarter.

Speaker Change: As to a slowdown of market share loss.

Speaker Change: And the broader question is what does it take to be competitive in the current China E Commerce market given the rise of upon a to e-commerce competitors in the market. Thank you.

Speaker Change: Okay Sciclone has hung official water tea with the winter <unk> Shang.

Alex C. Yao: My question is about domestic e-commerce. We are very happy to see that this quarter, the domestic e-commerce GMB increase has returned to the level of two-digits. I would like to know what kind of driving factor is behind the increase in GMB or to reduce the gap between the increase of GMB on other e-commerce platforms.

Speaker Change: Quite well now having causing the kind of in situ on a Canadian <unk> songs, who should we we.

Speaker Change: We issued a sweeping.

Speaker Change: What's how should I be horses that shoot on <unk>, So I'd shoot Andhra G M B things with us.

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Speaker Change: Could you swish on you have to have something.

Speaker Change: Jumping type things with your agenda to charge you.

Alex C. Yao: Or to ask it another way, what did we do in the past quarter to slow down the loss of market share? And what do we need to do in the new e-commerce environment to compete better with other new platforms? I would like to answer that question.

Speaker Change: Sure when you got functional I went to ship what should you could see the woman.

Speaker Change: Show me under shooting my young a chigger should have fun to go song Shan Shan.

Speaker Change: Yeah, Matt you almost like Schindler Ghansham fronting Jamba shiatsu Shopbot Tenneco harder you seen sing does she thought of Kentucky, but it seem to them.

Speaker Change: [noise], Oh tier one tier one I wonder if you guys have I just don't see it I thought you had a woman she has seen the other day.

Yongming Wu: I would like to answer this question. In general, I think our core focus is on improving the overall user experience of e-commerce shopping. The e-commerce shopping experience is basically good products, good prices, and good services. But to be more specific, we think that there are different modes of product sharing in China. We need to use different products in different modes to improve the price of the product and the conversion efficiency of the product.

Yongming Wu: In general, I think the most important thing is to improve the overall user experience of e-commerce shopping. The e-commerce shopping experience is basically good products, good prices, and good services. But to a more detailed level, we think there are different modes of product supply in China. Therefore, we have to use different products to improve the price of products in different modes and the conversion efficiency of the whole product. As I mentioned just now, if we divide it into brands, channels, industrial units, and factories, or the white-collar market, basically, we have to use different product models or different operating models. We believe that by using different product combinations to improve product efficiency and service experience, we should ultimately bring an improvement in customer purchase quality and more customers to come back to Taobao. Or more new customers will come back to Taobao because of our Thank you.

Speaker Change: She sent some cheetah he won't call the South Dakota Yeah.

Speaker Change: So nicole with yellow wife, what's different.

How something hijackers off what does the treaty that was Gonna citizen man. She said the woman Jay does have its own called I think a sunk in countries that youll put them in touch with all the more so when we put all the time change you're dealing with on the more solar Chagall tempting to tactically each isn't going to something so I'm going to tell hi, Shelly that's constantly working to get all that.

Yongming Wu: As I mentioned earlier, if we divide it into brands, channels, industrial units, factories, or white-collar markets, basically, we need to use different products in different ways to improve the price of the product and the conversion efficiency of the product.

Speaker Change: When she says Doc I saw that as all my local somebody it seems high. So she was also tell you that won't have a law that you put up I pass this on to hot zones of SUNS on Quincy woman Doyle, you don't put on the temptation would've put him on the team at Wassa. She teson dig a send up little nickel and seen them into some kind of chocolate or you do something that's a wash alley.

Yongming Wu: At the same time, we invest in customer experience, including our logistics and customer service. We believe that by using different product combinations to improve product efficiency and service experience, we should be able to improve the overall quality of our customers' purchases and attract more customers. Or, more new customers will come back to Taobao because of our products and services., Thank you.

Speaker Change: Postal woman told you you Cook with T N Buckhorn, WTO beholden Linda Cook.

Speaker Change: So you don't go to that I or materially towards hey on the Sunday puts on local and see what's on the time into what you send to the shelter, which is unfortunate yet so it's only going to go with that I don't want you to cook with a couple without wanting to be end up gold actually instead of teasing you can draw the Coca Cola.

Speaker Change: Welcome to the shingle anyway woman, that's something Lee can live well enough what a great deal of pub all right. That's.

Speaker Change: It hasn't gone back.

Speaker Change: Yeah.

Yongming Wu: Well, overall, I think it's really about enhancing the user's shopping experience. And as I've said, that really consists of getting three things right. First, you need good merchandise. Secondly, you need that at a good price. And thirdly, supporting that with excellent service. Now, if we break that down further, when it comes to goods, the assortment of goods, there are actually different models that we can apply to different products to better support them. So basically, we can think about goods from brands, goods from channel merchants, and goods from industry chains or manufacturers of white label goods.

Speaker Change: Thank you well overall I think it's really about enhancing the users shopping experience.

Speaker Change: And as I've said that really consists of getting three things first is having good merchandise secondly, having that at a good price and thirdly supporting that with excellent service.

Speaker Change: No if we break that down further when it comes to our goods to the assortment of goods. They are actually different models that we can apply.

Speaker Change: With different products to better support them. So basically we can think about.

Speaker Change: Goods from brands goods from channel merchants and goods from our industry belts or manufacturers of white label goods.

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

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

Speaker Change: And we can.

Speaker Change: Provide different products and take differentiated approaches.

Speaker Change: To ensure that those three different kinds of players are getting their goods to consumers in a way that is.

Speaker Change: Cost competitive they're offering a good price and achieve higher conversion efficiency for their merchandise all of that can be further supported with strong logistics and good customer service. So we can take a different approach.

With respect to those three different kinds of supply always with the aim of increasing customer purchase frequency and attracting new customers as well to achieve that advantage or typically when we would have liked.

Speaker Change: So shouldn't that its only the things that was the time it seems like that.

Speaker Change: So I don't see anything that's out there you cannot that's what you're talking about I thought and then you always here. So what are the elements that you mean the.

Yongming Wu: We believe that in the market for e-commerce, in addition to improving the efficiency of our products, which is the conversion rate of our products to consumers, we also need to pay more attention to the price and the quality of our products. On the other hand, we believe that for the richness of the marketplace, Taobao is also a very important partner. China E-commerce is a very important support.

Yongming Wu: We believe that in order to improve the efficiency of our products, we need to improve the conversion rate of our products to consumers, and we also need to improve the cost-effectiveness of our products. On the other hand, we believe that for the richness of the marketplace, it is also very important for Taobao. China E-commerce is a very important support for us; the so-called all-round Taobao is a very unique value for us among competitors in the current Chinese e-commerce market, so we need to maintain a rich foundation in the entire Taobao market, and we need to be able to provide some high-efficiency services to some of the core users.

Speaker Change: So I'll deal with the industry and Oh, well, that's your that's I guess Eagle Ford out there. It sounds like this is how the satellites all elements. So now she's a woman the time came Charlie's always had any shortages attempting some kinder do.

Speaker Change: Cause yourself, either the tickets out how do they also couldn't do or the chocolate Eastern center attempting to how something like a fool than any life on me I wouldn't want you to tell you. It's in good market place. So that you got from fishing and I saw you talked about you. So if you don't totally out there you go.

Speaker Change: So what I'm talking about ecosystem. So it wasn't under top al do you want but that's what I see so shouldn't that someone's looking at her susana letting them do so without knowing what am I going to get onto a touch out see what let's say I'll say, while it sits and guts hardball on the phone foreseen that you said was how tied to each year.

Yongming Wu: The so-called all-round Taobao is a very unique value for us among competitors in the Chinese e-commerce market. So we need to maintain a rich foundation in the entire Taobao market, and we need to be able to provide some high-efficiency services to some core users. Secondly, I can add to that, as we know, there's been very intense competition in China's domestic e-commerce market. And we've made some very clear strategic choices on Taobao as to how to address this competition and win going forward.

Speaker Change: Don't tell me, it's all of those yet.

Yongming Wu: We want to build a unique competitive advantage in the Chinese e-commerce market through the continuous improvement of these two dimensions. Secondly, I can add to that. As we know, there's been very intense competition in China's domestic e-commerce market. And we've made some very clear strategic choices on Taobao as to how to address this competition and win going forward. A big part of this is ensuring high product efficiency, referring to conversion, and also providing optimized services as well. Of course, another very important part of the equation for Taobao is what I've referred to as omnipotent Taobao or universal Taobao. Taobao has everything that anybody could want, the richest possible assortment.

Speaker Change: And being a woman she got Hugo Calder.

Speaker Change: All the sudden people sheltering at home.

Speaker Change: No way toward that especially the T cell that Kandi will then say it's all about density. So it was just something that you go through with trilogy Ngos.

Speaker Change: Secondly, I can add to that that as we know there has been very intense competition in chinas domestic <unk>.

Speaker Change: E Commerce market.

Speaker Change: We've made some very clear strategic choices on taobao as to how to address this competition and win going forward.

Speaker Change: A big part of this is ensuring high product efficiency, referring to conversion.

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

Speaker Change: And also to providing optimized services as well of course, another important part of the a very important part of the equation for Taobao is what I've referred to as our omnipotent taobao or universal Togo tub or has everything that anybody could want the richest possible assortment.

Speaker Change: So while maintaining that are rich in diversified assortment also focusing on achieving better efficiency with respect to Ah Ah ha high volume.

Ellie Jiang: So while maintaining that rich and diversified assortment, we are also focusing on achieving better efficiency with respect to high volume selling goods to maintain that unique competitive advantage. Next question. Thank you. Your next question comes from Ellie Jiang with Macquarie. Please go ahead.

Yongming Wu: So while maintaining that rich and diversified assortment, we are also focusing on achieving better efficiency with respect to high volume selling goods to maintain that unique competitive advantage. Next question. Thank you. Your next question comes from Ellie Jiang with Macquarie. Please go ahead.

Speaker Change: Selling goods to maintain that unique competitive advantage.

Speaker Change: Next question.

Speaker Change: Thank you. Your next question comes from Ellie Jang with Macquarie. Please go ahead.

Ellie Jiang: Thank you Giovanni.

Ellie Jiang: I have a follow-up question about what we just talked about. [inaudible] For us, how do we evaluate... Thank you.

Ellie Jiang: Oh.

Ellie Jiang: Sure.

Ellie Jiang: Yeah.

Speaker Change: Uh huh.

Speaker Change: Yes.

Speaker Change: Michelle.

Speaker Change: Okay.

Speaker Change: No.

Speaker Change: Sure Michael.

Speaker Change: Yeah.

Speaker Change: Hey, guys.

Speaker Change: Yeah.

Speaker Change: Thank you D G E G.

Speaker Change: Oh, taking even question Joel.

Speaker Change: J P.

Speaker Change: Uh huh.

Speaker Change: Huh.

Speaker Change: Sure.

Speaker Change: Hum.

Speaker Change: Yes.

Speaker Change: Keith I'll, let you.

Speaker Change: Hi, Joe.

Speaker Change:

Speaker Change: Gotcha.

Speaker Change: Yeah.

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

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

Speaker Change: Thank you I have a follow up question.

Speaker Change: <unk>.

Whole platform of charges on the new marketing tools that you've mentioned that will be launched we understand that there are some similar products that have been launched or are being launched on the market by competitors I'm wondering how we would evaluate our products versus the competitors how differentiated our products and what are some of the factors that determine.

Speaker Change: Conversion rates are for these kinds of products.

Speaker Change: Products, if you could share some of the underlying logic. Thank you.

Ellie Jiang: I would like to clarify your question. Do you mean to ask about the difference between marketing products and other platforms? Just to clarify the question, are you asking about our marketing products and how they are differentiated versus other platforms? Is that the question?

Ellie Jiang: I'd like to clarify your question. Do you mean to ask about the difference between marketing products and other platforms? Just to clarify the question, are you asking about our marketing products and how they are differentiated versus other platforms? Is that the question?

Speaker Change: And you don't want to do to win in China is hunting hooks, you're talking about is how are you doing something to use them.

Speaker Change: Just to clarify the question are you asking about our marketing products and how they are differentiated versus other platforms.

Speaker Change: <unk>.

Speaker Change: Okay.

Ellie Jiang: , So basically, focusing on the omni-platform marketing solutions, ROI. I think the user's design process or algorithmic model may not be comparable, but businesses will basically decide to put the money there through an investment ROI. But for us now, the overall ROI of our Taobao business or the overall value of Taobao. Compared with most e-commerce platforms, we are in the highest category. Right, understood. You know, I think different platforms are going to be very different if you look at the way they achieve monetization and their monetization products because the platforms are fundamentally different in terms of their traffic, the business model, and the different groups of users on the platform. So I don't think there's any direct comparability.

Ellie Jiang: Basically, focusing on the omni-platform marketing solutions, ROI. I think the user's design process or algorithmic model may not be comparable, but the business will basically decide to put the money there through an investment ROI. But for us now, the overall ROI of our Taobao business or the overall value of Taobao, Most e-commerce platforms, we are the highest class. Right, understood. You know, I think different platforms are going to be very different if you look at the way they achieve monetization and their monetization products, because the platforms are fundamentally different in terms of their traffic, the business model, and the different groups of users on the platform. So I don't think there's any direct comparability.

Speaker Change: Okay.

Speaker Change: So basically focusing on the omni platform marketing solutions, John John <unk> or different makeup sheen tied up gas yet.

Speaker Change: Sorry, a lot of time doing it with how did those wishing you weren't totally out Sunday ticket pin taito sooner.

Speaker Change: He took the phenotype of the teens, he's a cause hiccups United engine quota and sheets, all she's always searching out so its an email with you there could be seen in the number of channel that lets say its own sunjata hinder. So you don't you cannot seek a stay of tickled pink tied the towards the DIY.

Speaker Change: So you see what would you say you don't have the search is a little off was so sudden from Washington adult but how are you.

Speaker Change: Could be galaxy does it sound job keeping at Homeaway told while you go towards a dollar like that junior in Kansas.

Speaker Change: Telephone done that might be out there.

Speaker Change: Did you want the C&I Mentawai, that's N T. The sounds out of Tokyo.

Speaker Change: I am hesitant to do so.

Speaker Change: Thoughtful and getting something that an enormous sure so to your call that you like right.

Speaker Change: Right understood you know I think <expletive>.

Speaker Change: Different platforms are going to be very different if you look at the way to achieve monetization and their monetization products because the platforms are finally different fundamentally different in terms of their traffic that business model and the different groups of users on the platform. So I don't think there's any direct comparability I think certainly what <unk>.

Ellie Jiang: I think certainly what merchants are looking at at the end of the day is the ROI that they achieve on their investments in marketing. So I don't think we can directly compare user design and algorithms and things of that nature, but you can certainly look at the ROI on marketing investment, and I can tell you that on Taobao today, merchants are probably achieving probably the highest ROI they can get on any platform for their marketing investment. Next question. The next question comes from Alicia Yap with Citigroup; please go ahead. Hi,

Speaker Change: Merchant are looking out at the end of the day is the ROI that they achieve on their investments in marketing. So I don't think we can directly compare user design and algorithms and things of that nature, but you can certainly look at the ROI on marketing investment and I can tell you that.

Speaker Change: On top of today merchants are achieving probably the highest ROI. They can get on any platform for their marketing investments.

Speaker Change: Next question.

Speaker Change: Yeah.

Speaker Change: Thank you.

Ellie Jiang: I think certainly what merchants are looking at, at the end of the day, is the ROI that they achieve on their investments in marketing. So I don't think we can directly compare user design and algorithms and things of that nature, but you can certainly look at the ROI on marketing investment, and I can tell you that on Taobao today, merchants are probably achieving probably the highest ROI they can get on any platform for their marketing investment. Next question. The next question comes from Alicia Yap with Citigroup; please go ahead. Hi, good evening, management. Thanks for taking my questions.

Speaker Change: Next question comes from Alicia Yap with Citigroup. Please go ahead.

Speaker Change: Okay.

Alicia Yap: Good evening, management. Thanks for taking my questions. Congratulations on a solid quarter. I have a follow-up on the overall CMR growth. You know, obviously, the 5% growth is very good, and the double-digit GMB growth is good. Any obstacle that we foresee that could prevent GMB and CMR from further improving from here? I'd just like to know how the overall consumer consumption trend is. It seems that we are gaining momentum that allows us to enjoy faster growth, despite a potentially more muted macro outlook. Any color you can share with us on the latest trend that you're seeing for April and May on GMB growth would be helpful.

Alicia Yap: Hi, Good evening management, Thanks for taking my questions Congrats on the solid quarter.

Alicia Yap: Congratulations on a solid quarter. I have a follow-up on the overall CMR growth. You know, obviously, the 5% growth is very good, and the double-digit GMB growth is good. Any obstacle that we foresee that could prevent GMB and CMR from further improving from here? I'd just like to know how the overall consumer consumption trend is. It seems that we are gaining momentum that allows us to enjoy faster growth, despite a potentially more muted macro outlook. Any color you can share with us on the latest trend that you are seeing for April and May on GMB growth would be helpful.

Alicia Yap: I have a follow up on the overall CMO roles.

Alicia Yap: Obviously, the 5% growth was very good and the double digit GMB growth is good.

Alicia Yap: The good that we foresee that could prevent <unk> to further improve from here I'm just wondering how is the overall consumer consumption trends it.

Speaker Change: It seems that we are gaining momentum that allows us to enjoy faster growth despite potentially more muted macro outlook.

Speaker Change: Color you can share with us with the latest trends that you're seeing for.

Speaker Change: For April and May on the GMB growth would be helpful. Thank you.

Speaker Change: Gotcha cornerstone for sure that he want to.

Speaker Change: True Hook also chewed off Josh you see do you see what's Oh shoot you an E.

Alicia Yap: Thank you. I have a follow-up question about CMR. We saw a 5% increase, which is very good. We also saw a 2-digit increase in GMB, which is also very good. What I want to know is how the latest consumption trend is.

Alicia Yap: Thank you. I have a follow-up question about CMR. When we see a 5% increase, it is very good. When we see a 2% increase in GMV, it is also very good. So what I want to know is how the latest consumption trend is. It seems that the company now has a certain development trend. Even though there is such an external environment, we can still continue to improve GMV and CMR. So I want to know, for example, what was the latest trend in April and May for CMR and GMV? Alicia, thanks for the question.

Sunshine: <unk>, Oh, my kind of buy furniture with a phone to Underfeed hohhot <unk> rolled out and we showed at Sunshine heart.

Speaker Change: So the answer there should we seem to go sulfate should.

Alicia Yap: It seems that the company is now in a certain development trend. Even though there is such an external environment, we can still continue to improve GMB and CMR. So I want to know, for example, what the latest trend for CMR and GMB was in April and May. Alicia, thanks for the question.

Josh: So who can also sounds like you think the fattest shuttle should seem quite.

Mahesh: Sure you can wipe of quantity, what mahesh tissue like she got GMP horse Jamar.

Speaker Change: Shanghai Chewed up you were so severe.

Mahesh Jamar: We've seen the tissue hook towards <unk>.

Hong Xu: I'll take on this question. I think, you know, as we explained, we see the results of our investments, you know, the GMB growth. And then, you know, I think that the growth trend is sustainable, as we can observe. So, you know, we're still observing good, healthy growth in April and May.

Yongming Wu: I'll take on this question. I think, you know, as we explained, we see the results of our investments, you know, the GMB growth. And then, you know, I think that the growth trend is sustainable, as we can observe. So, you know, we're still observing good, healthy growth in April and May. And in terms of CMR, as we were explaining, because of the growth of the GMB towards, you know, Taobao merchants and also some of their new sort of models, you know, business products, which have relatively low monetization at this stage.

Mahesh Jamar:

Alex C. Yao: Alex Yes, I think thanks for the question I'll take on this question.

S: Thank you know S. We explained you know we see the results from our investments you know the GMB growth.

Speaker Change: And then you know.

Alex: So I think that the growth trend is sustainable over the weekend upsell. So you know where where skus observing a good healthy growth in April may time, and in terms of Cmos as we were explaining because they see G M equal because of the mix shift in that GSV to US you know taobao.

Hong Xu: And in terms of CMR, as we were explaining, because of the growth of the GMB towards, you know, Taobao merchants and also some of their new sort of models, you know, business products, which have relatively low monetization at this stage, there's a big room for them to increase the monetization rate. And with the introduction of our monetization product, you know, we will be seeing the growth of CMR catch up with GMB gradually.

Alex: Merchant and also.

Speaker Change: Some of that new set of models.

Speaker Change: In this product, which has relatively low monetization at this stage. So it is that theres, a big hatch for them for to increase the monetization rate and with the introduction of a roll out of our monetization product, we will be seeing the growth.

Yongming Wu: So, there's a lot of room for us to increase the monetization rate. And with the introduction of our monetization product, you know, we will be seeing the growth of CMR catch up with GMB sort of gradually. So, it will lag behind for a few quarters, but it will eventually catch up.

The growth of CMI at catch up with G. M. B. So gradually so it would lack behind a few quarters, but it will eventually catch up so that's sort of our belief in terms out there.

Hong Xu: So, it will lag behind for a few quarters, but it will eventually catch up. So, that's sort of our belief in terms of the effect of the investment, the effectiveness of the investment. And also, you know, both on the GMB side and as well as on the revenue side. Let me explain it this way.

Yongming Wu: So, that's sort of our belief in terms of the effect of the investment, the effectiveness of the investment. And also, you know, both on the GMB side and as well as on the revenue side. Let me explain it this way.

Speaker Change: The effect of the investment effectiveness after investments and also you know both on the G&A side and as well as on the revenue side.

Speaker Change: Yeah.

Tobey: Oh gosh, that's even more sure Tobey.

Tobey: Jokes, yes to show a mccann, though on this one until they're told through such Hashana Changsha cheeky just to kind of <unk> too soon about that heiko.

Yongming Wu: We can see that the investment we have made is now working. Specifically, we can see that the GDP is increasing. We think that the current trend of growth is sustainable. And if you ask about April and May, we can also see a good and healthy development.

Hong Xu: We can see that the investment we have made is now working. Specifically, we can see that the GDP is increasing. We think that the current trend of growth is sustainable. And if you ask about April and May, we can also see a good and healthy development.

Shanda: When we were doing with Shanda tickets, sometimes it's you should pass your coach shooter Archie on your Windows.

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Shanda: Shoot.

Hong Xu: Part of the reason is the shift of the structure we talked about before. This is due to more Taobao merchants and more new commercial products. These products may have a relatively low conversion rate at present.

Yongming Wu: Part of the reason is the shift of the structure we talked about before. This is due to more Taobao merchants and more new commercial products. These products may have a relatively low conversion rate at present.

Shanda: The proof in your opinion on what you said.

Sundar: The other two good share go to try and answer sure sounds come toward the top or the Shanghai, Ohio, Florida, Sundar showing you how the champion.

Unknown Executive: Champion mood Shan.

Speaker Change: Kenosha to go get some new beyond Ddos.

Yongming Wu: Therefore, we still have a lot of room in the future to further improve our commercialization level. So we think that in the next few quarters, we will gradually launch these commercialized products. At that time, the growth of CMR will gradually catch up with GDP. Later, this situation may continue for several quarters, but in the end, it will catch up with GDP. The two are quite similar.

Hong Xu: Therefore, we still have a lot of room in the future to further improve our commercialization level. So we think that in the next few quarters, we will gradually launch these commercialized products. At that time, the growth of CMR will gradually catch up with GDP. Later, this situation may continue for several quarters, but in the end, it will catch up with GDP. The two are quite similar.

Speaker Change: Instead Opana ER.

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Unknown Executive: So we will move your way social edge, you could see to now create Youtube Twitch, who teaches Shanghai the champion.

Speaker Change: Industrial on a CMI that some chunk pathway troop when a young told Ghansham G M B like shipping.

Speaker Change: Hold on to good seeing Hong Kong Queen tissue, you answered she could see do I should switch I don't know if we're going to shop.

Shandong: Shifting to wind down to assure Shandong so it offshore and we're gonna be prolonged should T. N V I felt quite close to that issue.

Yongming Wu: So we think that not only GDP but also other income of the company will increase. Next question. Oh, sorry. Rob, hey, Alicia, this is Joe Tsai.

Hong Xu: So we think that not only GNP but also other income of the company will increase. Alicia, this is Jiong Tsai. I'd also like to sort of supplement what Eddie and Toby said. I think implicit in your question is, you're looking at our March quarter GMV growth in double digits. And compared to last year, it was an easy comp because last year was partially coming out of the COVID lockdown.

Speaker Change: But we also what comes out.

Robert Lin: Next question sorry, Rob.

Joseph C. Tsai: Alicia This is Joe tie also acts as a sort of supplement.

Joseph C. Tsai: I'd also like to sort of supplement what Eddie and Toby said. I think implicit in your question is that you're looking at our March quarter GMV growth in double digits. And compared to last year, it was an easy comp because last year was partially coming out of the lockup from the COVID lockdown.

Joseph C. Tsai: But Eddie and.

Joseph C. Tsai: Toby said Ah I think implicit in your question is Youre looking at our March quarter, Jimmy growth in double digits.

Toby: And compared to last year. It was an easy comp because last year was partially coming out of the lockout lockup.

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

Joseph C. Tsai: From the Covid Lockdown.

Joseph C. Tsai: And so.

Toby: So the implicit question is are we going to see from macro standpoint, what do we see from our platform that could reflect a sort of broader consumption trends.

Speaker Change: What I would like to say is as we look at the Chinese consumers.

Joseph C. Tsai: The number one.

Speaker Change: Right now household cash is at its highest point.

Speaker Change: We're looking at something like 19 trillion dollars of household passed savings.

Speaker Change: That's.

Speaker Change: And it in you know in the system. So.

Joseph C. Tsai: So the Chinese consumer has the ability to spend, right? I think all we're looking at is, what's their confidence level of spending on a going forward basis? First of all, I think we've all seen some of the growth in the services sector during the May 1st holidays. And within our platform, we've seen some green shoots.

Chinese consumer: So the Chinese consumer has the ability to spend right.

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

Speaker Change: I think all we're looking at is what's your confidence our confidence level of spending on a going forward basis.

Speaker Change: First of all I think we've all seen some of the growth in the services sector. During the may 1st holidays.

Speaker Change: And.

Speaker Change: Within our platform.

Speaker Change: Seen some green shoots of some discretionary items like apparel.

Joseph C. Tsai: Some discretionary items like apparel and electronics are also growing, you know, looking pretty, the growth is pretty good. So what that tells us is consumers are starting to reflect that willingness to spend. We have no doubt that they have the ability, but the willingness reflects the confidence in what they have about the future. So we're seeing some, you know, positive signals, but it is probably still too early to tell because the macro environment is still broadly affected by the property sector downturn. On that front, you know, we've been very encouraged that local governments have now been relaxing property purchase restrictions.

Unknown Executive: <unk> electronics.

Speaker Change: Also are actually growing.

Speaker Change: Looking pretty.

Speaker Change: The growth is pretty good.

Speaker Change: So what that tells us as consumers are starting to you know.

Joseph C. Tsai: So what that tells us is consumers are starting to, you know, reflect that willingness to spend. We have no doubt that they have the ability, but the willingness reflects the confidence in what they have about the future. So we're seeing some, you know, positive signals, but it is probably still too early to tell because the macro environment is still broadly affected by the property sector downturn. On that front, we've been very encouraged that local governments are now relaxing the property purchase restrictions. So we're going to wait and see, you know, the confidence level. We've seen some early signs of growth. I'm Joseph Tsai.

Speaker Change: Like that willingness to spend we have no doubt that they have the ability, but the willingness rift.

Speaker Change: It reflects the confidence and what they have about the future. So we're seeing some.

Speaker Change: Positive signals.

Speaker Change: But it is probably still too early to tell because the macro environment is still broadly affected by the property sector downturn.

Speaker Change: On that front.

Local governments: We've been very encouraged that the local governments now have been relaxing the property purchase restrictions, so we're going to wait and see but so far.

Joseph C. Tsai: So we're going to wait and see. But so far, you know the confidence level, we've seen some early signs of growth. I'm Joseph Tsai.

Speaker Change: You know confidence level, we've seen some early signs of growth.

Local governments: How should Joe Towell shrunk.

Joseph C. Tsai: I'd like to add to what Eddie and Toby just said. I think the question you raised has a hidden question behind it. Because you see, in the third quarter, our GDP growth reached double-digits. Of course, if you compare it to the same period last year, it's easier to achieve. You might think so because last year was just ending the lockdown measures during the pandemic.

Joseph C. Tsai: I'd like to add to what Eddie and Toby just said. I think the question you raised hides a problem behind it. Because you see, in the third quarter, our GDP growth reached two-digits. Of course, if you compare it to the same situation last year, it's easier to achieve, right? You might think so, because last year was just at the end of the lockdown measures during the pandemic.

Local governments: <unk> contact Eddie Tobey I'm going to switch out and that we're gonna. Many T does it go in tier two b, who how do you. How do you go into your English or kind of same offense, you do them and so <unk> T M. B sung Jong Todd all along we're sure.

Local governments: Dara.

Speaker Change: <unk> B to H Union.

Eddie Tobey: C D you could call a tissue resolved.

Eddie Tobey: Send them uneconomic shut down Shawnee Ritchie natural gagan tissue tissue.

Eddie Tobey: Eating Xian Zhengzhou under Tcf, one quick question.

Joseph C. Tsai: So you might want to raise a hidden question. What about the macro environment? What kind of macro trends are we seeing? I can put it this way. At present, the level of cash reserves for Chinese consumers' families is very high.

Macondo: So you can only enhance Shaanxi do you go from <unk> to show one financing through Macondo somebody on the homeland attached.

Joseph C. Tsai: So you might want to raise a question. What about the macro environment? What kind of macro trend do we see? I can say this.

Shaanxi: Okay sure so should function.

Joseph C. Tsai: At present, the level of cash reserve for Chinese consumers' families is very high. In the whole system, the cash reserve for this kind of family may reach $1.9 trillion. So there is no doubt that Chinese consumers have the ability to consume. The question is whether they have the confidence to do so. During the fifth quarter, we also saw some growth in the service industry. On our online platform, we also saw that some non-high-end products, including clothing and electronics, also performed well.

Hong Xu: Sulfate youre chatting Shin seem to be the streets, you can shoot a feat Hong Garda auctions on June two.

Joseph C. Tsai: In the entire system, the cash reserve for this kind of family is probably up to $1.9 trillion. So Chinese consumers definitely have the ability to spend money. There's no doubt about that.

Shenzhen: Attaching the Shenzhen true.

Todd: Todd I'll shoot.

Shenzhen: Shoot you an email.

Todd: So how are you guys treating so you're talking about the sofa age one attack eating Sophie the non lead chico's. So how will you wonder when do you should have your meal sulfate C C.

Joseph C. Tsai: The question is, do they have the confidence to spend money? During the fifth quarter, we also saw some growth in the service industry. On our online platform, we also saw that some non-high-end products, including clothing and electronics, also performed well. So we can say that consumers are beginning to improve their level of spending. Now, we are encouraged to see that many local governments are broadening their purchasing policies, etc. So, we should say that the initial signs show that the confidence of consumers is increasing, but it still needs time to further observe. I'd like to add something.

Todd: No.

Todd: EMEA should kind of weird.

Todd: He think the tickets I'm sure several of them in the Central Pintano want me you should count on a you said a figure long shoot opinion, they farquhar foudroyant booklet tends to champion shield.

Todd: So we will increase sure.

Joseph C. Tsai: So we can say that consumers are starting to improve their level of consumption, but it still takes some time to see how this trend will continue for a long time. At least, the ability of consumers is not a problem.

Todd: Sulfate to on a cash too.

Speaker Change: T go to doing software the stripping.

Todd: Session of Hudson Shaw industries yen to country that you should have chunks you should so much you.

Hudson Shaw: Yum China.

Todd: Sure.

Sophie Chico: Long beach, or how we went to our silver shield Sophie the ear.

Joseph C. Tsai: Whether they have the will to consume depends on their confidence in the future. So I'm afraid it's too early to give a conclusion now, because the overall economy is suffering from a decline in the real estate market.

Hudson Shaw: How do we allowed to you could.

Hudson Shaw: It sounds like you'll get triggered tingling Hudson compression, we should cortisol you made some teething things you know Tayo yugo.

Sophie: In suits your foundry should talk to either you go sour taller now it sounds like Oh, My God, Oh, God I should handle her brother.

Joseph C. Tsai: Now we are encouraged to see that many local governments are broadening the policy of limited purchases. So we should say that the initial signs show that the confidence of consumers is increasing. But it still takes time to observe.

Hudson Shaw: Functional food.

Hudson Shaw: <unk> phone front are you sure sure Golda chunks.

Speaker Change #103: So it will mean got Shaw Macondo trooper to go see some shellfish or the <unk>.

Speaker Change: Or is that somebody I'm not sure how she all students should keep a bunch of them.

Speaker Change: Oh, I think that's right.

Yongming Wu: I think the previous questions are similar. I was joking with Joe that investors seem to be more eager to make money than we are. I'd like to make it clearer. In Taobao, we believe that the growth of TMV, the frequency of users' consumption, and the efficiency of our products are the main goals for this year. The main goal is to get a better result, and Alibaba and how to improve CMR in the future is a process of water-to-dust collection. And I want to say that we know that Taobao has been our main revenue platform from the beginning to now. In fact, I was the first to participate.

Yongming Wu: I think the previous questions are similar. I was joking with Joe that investors seem to be more eager to make money than we are. I'd like to make it clearer. In Taobao, we believe that the growth of GMV, the frequency of users' consumption, and the efficiency of our products are the main goals for this year. The main goal is to get a better result, and Alibaba and how to improve CMR in the future is a process of water-to-layer process. And I would like to say that we know that Taobao has been Alibaba's main revenue platform since the beginning of zero. In fact, I was one of the first participants.

Speaker Change #100: It was only.

Tito: 10 minutes ago, when Tito, you'll just sort of what comes after that you'll have that Colin just walk away towards them and pay off you won't know how you see that trend.

Tito: Yeah.

Speaker Change #101: So you want to say Gee I was telling me and what else what are the contingency you Daniel Shaw.

Speaker Change #101: Sure.

Speaker Change #101: Yeah. That's a that's all I'll say on the pin Tai Young woman told to some kinda teens only something does shelter your EG cookbook food hinder.

Speaker Change #101: You'll recall the shelf 80 entities in daylight.

Daniel Shaw: C N V that sends out you won't tell them dividends shelf either pin citizens out so I'm continuing to so you all know.

Daniel Shaw: Don't think that's the way I remember, what you got going harder.

Daniel Shaw: Got you got you got tens on it you can go home yet little catch it you since you know what cities and CMO. So you go. So he thought she was in the quarter I'll tell you what I'll consider EMEA and U S. So you saw you saw.

Speaker Change #106: Well months without tobol totally in cats are touching that almost out elements. So we are sold out already my much in that you're saying you source the sweetheart, she's telling you the <unk>.

Linda Cook: And you got a chance to nicotine taxi woman, what's usually the top all tolling Dol tone, Linda solar with all you don't see that by your soda with US you've got some good honeymoon Muslim got opinion out there.

Linda: So you say, there's a whole myriad team.

Linda: Before you bought agenda. She told all of them in Oklahoma, All the time that your T cell like you said a woman that's CMO or do you need to see your chicken Sundar you'd go quarter Civil War machines at five stars that concept to go of course have some jobs that you can call shall phase of the timken call deal will materialize.

Yongming Wu: However, we are now controlling this process to make the business experience better and the consumer experience better. For us, the first task is to improve the experience of our consumers and to improve the experience of our consumers to bring about growth in GMV. So I would like to add my opinion on this. Yeah, this is Eddie.

Yongming Wu: However, we are now controlling this process to make the business experience better and the consumer experience better. For us, the first task this year is to improve the experience of our consumers and improve the experience of our consumers to bring about growth in GMV. So I would like to add my opinion on this. Yeah, this is Eddie.

She: I don't know how since that woman.

Unknown Executive: Shelf dates or the XI and XI, saying to yourself, either the tncs Intel atom.

Unknown Executive: I think it sends out so you did them in wash out templates only shot or does it come from.

Linda: Yes. This is Eddie I, just like to chip in.

Yongming Wu: I'd just like to chip in to be even clearer on this point, because I detect a common pattern across the past several questions. And I was just actually joking with Joe about this, because it seems like investors are even more anxious than we are to make money. So, you know, I'd like to be really clear about what our primary objective is this year, and that is for Taobao to invest in merchandise assortment and competitiveness and enhanced user experience to drive GMV growth as well as purchase frequency. That's our number one objective this year.

Joe: To be even clear on this point because I detect a common pattern across the past several questions and I was just actually joking with Joe about this because it seems like investors are even more anxious than we are to make money.

Eddie I: So you know I'd like to be really clear about what our primary objective is this year and that is.

Yongming Wu: And only after being able to achieve that objective successfully can we really increase CMR. And, in fact, increasing CNR will just be a natural result of those efforts. And, you know, talking about advertising and commercialization, you know, I was personally part of the whole growth story of Taobao from zero in revenues to 1 billion and 10 billion, you know, and beyond. So, I can tell you that we have the capabilities to put in place those kinds of advertising products that will drive CMR growth.

Speaker Change #110: On top off certainly to invest in our merchandize.

Joe: Merchandise assortment and competitiveness and enhanced user experience to drive GMP growth as well as purchase frequency right. That's our number one objective this year.

Speaker Change #112: And only after being able to achieve that objective successfully can we really increased CMI and in fact, increasing CNR will just be a natural result.

Speaker Change #112: Off of those efforts.

Speaker Change #115: And you know talking about advertising and commercialization I was personally part of the whole growth story of top off from zero when revenues in the development of Alibaba from zero through $100 million to a $1 billion 10 billion.

Speaker Change #116: And beyond so I can tell you that we are we have the capabilities to.

Jack Ma: To put in place for those kinds of advertising products that will drive <unk> growth.

Speaker Change #117: Certain that we can do that but we're controlling the pace at which we move forward to ensure a really good experience for our merchants.

Yongming Wu: We're certain that we can do that, but we're controlling the pace at which we move forward to ensure a really good experience for our merchants and for our consumers. So, this year, we're really focused on enhancing the consumer experience and growing GMV, and we'll move forward on that basis. Next question. Thank you. Your next question comes from Ronald Keung with Golden Sack.

Speaker Change #120: And for our consumers. So this year, we're really focused on enhancing consumer experience and growing GMP and will move forward on that basis.

Speaker Change #117: Thank you.

Speaker Change #119: Next question.

Speaker Change #121: Your next question comes from.

Speaker Change #121: With Goldman Sachs. Please go ahead.

Goldman Sachs: Thank you. Thank you agility there'll be until then.

Ronald Keung: Please go ahead. Thank you. Thank you, Joe, Eddie, Toby, and Yong Zhang. So, I guess no one has asked about ARDC so far. I haven't really discussed it in detail. So, I want to ask about the—because this quarter, it was mostly an increase in ARDC losses to the group earnings. Otherwise, Taobao Tmall has been relatively stable.

Ronald Keung: Please go ahead. I guess no one has asked about the ARDC so far. I haven't really discussed this in depth, so I want to ask about this, because this quarter it was mostly an increase in ARDC losses to the group earnings. Otherwise, the Taobao team has been relatively stable. So I want to hear how we see the investment scale evolve for international e-commerce. We've also seen some of our peers shifting from fully untrusted to semi-untrusted, which is they kind of leave merchants to do their local warehousing. How do we see our loss or investment evolve with these trends? Thank you.

Goldman Sachs: So I guess no one asked about the D.

Speaker Change #125: Do you see so far.

Goldman Sachs: I haven't really deeply discuss I wanted to ask about the because this quarter. Yeah. It was mostly the increase in D C losses too.

Speaker Change #122: The group earnings otherwise the Taobao Tmall has been relatively stable. So I want to hear what how do we see the investment scale evolve for international E. Commerce. We've also seen some of our peers shifting from really interested to semi interested which is they kind of leave merchants to do the local warehousing.

Ronald Keung: So, I want to hear how we see the investment scale evolve for international e-commerce. We've also seen some of our peers shifting from fully entrusted to semi-entrusted; they kind of leave merchants to do their local warehousing. How do we see our losses or investment evolve with these trends? Thank you.

Speaker Change #128: How do we see a loss or investment involved with these trends. Thank you.

Ronald Keung: I'd like to ask a question about AIDC. I haven't asked about AIDC before. In this quarter, we can see that the loss of AIDC is still increasing.

Speaker Change #122: Well, that's you're going to see the one teacher shadow meal windows.

Speaker Change #122: C G quiet.

Speaker Change #124: The G T two English or one woman kind of Cedar.

Speaker Change #122: Chris one I should say.

Chris: Quarter Archie.

Ronald Keung: Taobao Tianmao is relatively stable. I'd like to know the scale of AIDC's investment. In addition, we know that AIDC is now in a semi-discharge mode, where businesses are responsible for their own storage services. Can you tell us more about this? First of all, I'd like to answer the question about the loss in the last quarter.

Ronald Keung: Taobao Tianmao is relatively stable. I'd like to know the scale of AIDC's investment. In addition, we know that AIDC is now fully-ordered. It is now semi-ordered, and businesses are responsible for their own storage services. Can you tell us about this? First of all, I'd like to answer the question about the loss in the last quarter.

Chris: How about 10 months ago.

Joe: Should be Joe one thing that's how it should all he itc's <unk> attitude towards the Queen want somebody yeah, you're holding my when my Nellix, yet so that should chunhua tissue trends show to Gabon talk one more ship to shield chunks out since your foods that since you Didnt trigger Torchwood are food shiga tissue.

Speaker Change #126: No no no cash out yourself.

Speaker Change #133: Oh, that's what should happen.

Speaker Change #126: I'll start on the question that you'd look Chris one other thing you talked about your dolcetto trial. Shortly I don't go to a game, where you thought you wanted to check.

Jiang Fan: I think there were two main reasons why we invested a lot in our business in the last quarter. The first reason is that, in the last quarter, we still had a relatively close investment in the new market, especially in the Middle East. Because in March of the last quarter, it was also a big selling point for Muslim Ramadan in the Middle East.

Jiang Fan: I think there are two main reasons why we invested a lot in our business in the last quarter. The first reason is that we had a relatively close investment in the star market in the last quarter, especially in the Middle East, because in March last quarter, there was a big selling point for Muslim Ramadan in the Middle East. So we started to expand our business on the seabed in the Middle East. So it was a relatively large investment. This is one aspect.

Chris: Yeah, we're currently not doing Joe Shan Shan.

Speaker Change #127: Let's see the woman sizes changing changing sure try anyways if at all.

Speaker Change #131: Total without your tissue side.

Chris: Charlotte Cheetos, Samsung is certainly challenging.

Speaker Change #132: You can almost anything that you could comment on that.

Juliette: Bother you go shall show the Juliette No woman Belichick of Sean handle the challenge.

Jiang Fan: So we invested a lot in our new business in the Hawaiian region. This is one aspect of it. The second reason is that we just talked about it.

Juliette Belichick: The Shanghai should that Havent, if you'd put out here.

Jacob: You'll be out talking about the total Tricia you from you that they are supposed to come out with matching dollars each hoist that Jacob.

Jiang Fan: The second reason is that, as we just mentioned, the business model of AE Choice is now climbing. In the process of switching, the profitability of this business model still needs time to catch up. So there is a gap between the profitability of the platform model and the profitability of our previous platform model. However, we are now rapidly optimizing our efficiency.

Jiang Fan: The business model of AE Choice is now climbing. In the process of switching the business model, profitability itself still needs time to catch up. It is a gap with the profitability of the platform model in the past. We are now also rapidly optimizing our efficiency.

Jacob: Shyam motion at the time, it's just that Pasha I'm not sure the Cheyenne more should the fed or the children enjoying population Jacob.

Jacob: No not really I show you could sure Gander, you could not have come on like.

Tushar: I'm quite sure that jumped P&I more sure that's out in the Eagle elite now Tushar.

Shan: You know what somebody because God I'm selling you know a woman Shan day, you get that quite sort of true you'll call them in the shoulder.

Jiang Fan: And we can see that in the next few quarters, we will also see a rapid optimization of the entire AE Choice, the entire UE. So I think that with the gradual stability of our new model, we will also pay more attention to the efficiency of this business model. Of course, we will pay attention to this efficiency while pursuing growth. Thank you. Well, I think there are really two principal reasons for the losses in this quarter or for the heightened spending in this quarter. First, in certain emerging markets and especially in the Middle East, this was a time of year that represents peak sales during Ramadan in Middle Eastern countries.

Speaker Change #137: You want me I'll take handouts.

Speaker Change #144: Shall I touch on the you could choose one email want me halfway kind all women chunk, let's say a choice jungle, you'll either you go question you could you walk to Australia what are they.

Jiang Fan: In the next few quarters, we will also see a rapid optimization of AE Choice. So I think with the gradual stability of our new model, we will also pay more attention to the efficiency of the business model. Of course, we will pay attention to such efficiency while pursuing growth. Thank you. Well, I think there are really two principal reasons for the losses in this quarter or for the heightened spending in this quarter. First, in certain emerging markets and especially in the Middle East, this was a time of year that represents peak sales during Ramadan in Middle Eastern countries.

John: So as a woman John that you could see the more sugar agenda.

Speaker Change #134: Now with me equate trio can bother you couldn't.

John: Couldn't go to Quentin who will take a shy at more should the yugo surely not controversial that the trigger was sent on the pump.

John: Oh sure one more quick one George on the shoulder.

John: Yeah.

Unknown Executive: Thank you well I think there are really two principal reasons for the losses in this quarter or for the heightened spending in this quarter.

Jiang Fan: So Trendy All was taking advantage of that with advertising spending promotions reaching out to consumers. And then the second reason has to do with AE Choice. As AE Choice occupies an increasing proportion of overall orders of the overall business, and as we are switching over to this new business model, it is going to take a little time for the profit margins in AE Choice to catch up. So there is a margin gap there to be filled.

Unknown Executive: First was that in certain emerging markets.

Unknown Executive: Especially in the Middle East. This was a time of year that represents peak sales thought with Ramadan in the middle Eastern countries. So trendy always taking advantage of that.

Unknown Executive: With advertising spending promotions, reaching out to consumers.

Unknown Executive: And then the second reason has to do with each choice as E choice.

Speaker Change #139: Occupies an increasing proportion of overall orders of the overall business and as we're switching over to this new business model.

Trendy: Take a little time for the profit margins and a choice too.

OxiAE Choice: To catch up so there is a margin gap there to be filled we are working rapidly to optimize the efficiency of the AE choice model and I think you'll see within several quarters very clear enhancement and the unit economics Oxiae choice.

Jiang Fan: We are working rapidly to optimize efficiency of the AE Choice model and I think you will see within several quarters very clear enhancement in the unit economics of the AE Choice model. So as the new model stabilizes, we will continue to pay attention of course to achieving growth but balancing that also with more efficiency. ?????????,???????????????,??????????????????????????,???????????????????????????, Kexin Pingliu.

Jiang Fan: We are working rapidly to optimize the efficiency of the AE Choice model, and I think you will see very clear enhancement in the unit economics of the AE Choice model within several quarters. So as the new model stabilizes, we will continue to pay attention, of course, to achieving growth but balancing that also with more efficiency. ,,,, [inaudible] From the perspective of experience and consumer demand, including from the perspective of our entire business efficiency, we choose a local or cross-border business model in different categories and in different markets.

OxiAE Choice: Our model so that as the new model stabilizes.

Speaker Change #145: We will continue to pay attention of course to achieving growth with balancing that also with more efficiency.

Speaker Change #145: Finally in the dog when she took her crying utricle upon top line the gentle quantify what's that what's argument that <unk> been doing actually causing until you go more sugar Haynesville Eli.

Jimmy: Indeed to Shanghai or pay it all but neither Jimmy you can almost use gender John John that you got.

Speaker Change #143: I wish I was sort of.

Speaker Change #147: Are you shipping late Hudson I'm Gonna sure John the clotting social images.

Speaker Change #146: How the champion cushy.

Speaker Change #143: Cushing.

John: Pushing <unk> Shukla Japanese cutting them well.

Speaker Change #148: Like you are shifting the economic.

John: Surely it up in default Buffalo, the well will sure I'm not certainly manage a woman of color.

John: Sure.

Yale PA: Shanghai outside what's your Yale PA boiler challenge because shopping pay what I'll have I do.

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John: On the P&L towards that true.

John: Chaucer true.

Chaucer: What does it show up in the theater, Shanghai, not well yeah. That's all women say beautiful drummed only off all core and shell at Homeaway I, although the history at home.

Speaker Change #150: Well me is that just you know toward happening neither my job.

John: No matter, what Michel was saying, you'll you'll be shipping late.

Michel: The Shanghai she wanted a false claim what Union theater.

Michel: They can assure causing the most shipping.

Speaker Change #153: I only know what my original shelf edge or the.

Jiang Fan: [inaudible] From the perspective of experience and consumer demand, including from the perspective of our entire business efficiency, we choose a local or cross-border business model in different categories and in different markets. Ron, your second question, which had to do with the semi-consignment versus full consignment model, you know, so that's not really about cross-border per se; it's about, you know, where merchants pre-place their Our take on that is that some categories are just better suited to a cross-border business model because of the characteristics of the merchandise and other reasons.

Michel: She and I wish I had a chart dot com bubble at home a chunk of change on the general concept baton apparently that persona.

Michel: True sense of the streak.

Michel: April with the highest rate that you're quoting rates, what you're showing it in Washington.

Jiang Fan: Ron, your second question had to do with the semi-consignment versus full consignment model, you know, so that's not really about cross-border per se; it's about, you know, where merchants pre-place their merchandise in a local warehouse for local shipping.

Michel: On your second question, which had to do with.

Michel: Semi consignment versus four consignment model.

Michel: Uh huh.

Speaker Change #154: So that's not really about cross border per se, it's about where merchants.

Speaker Change #157: Pre place their merchandise in a local warehouse.

Merchant: For our local shipping.

Merchant: Our our take on that is that some categories are just better suited to our cross border business model because of the characteristics of the merchandize and.

Jiang Fan: Our take on that is that some categories are just better suited to a cross-border business model because of the characteristics of the merchandise and other reasons. For other categories, that kind of local shipment model could work better. So we have done a lot of this in the past as well, you know, pre-placing merchandise into overseas warehouses to be shipped locally, and we are working on developing more local sellers in places like the Middle East, South Korea, and Europe.

Merchant: And other reasons.

Speaker Change #163: For other categories.

Jiang Fan: For other categories, that kind of local shipment model could work better. So we have done a lot of this in the past as well, you know, pre-placing merchandise into overseas warehouses to be shipped locally, and we are working on developing more local sellers in places like the Middle East, South Korea, and Europe. But, you know, we think at the end of the day, for some categories, local merchants can be more competitive, but in other categories, the cross-border model will work better.

Speaker Change #159: That kind of local shipment model can work better.

Speaker Change #165: So we've done a lot of this in the past as well you know pre placing merchandise into overseas warehouses to be shipped locally.

Speaker Change #158: And we're working on developing more local sellers are in places like the Middle East are South Korea and Europe.

Speaker Change #158:

Jiang Fan: But you know, we think at the end of the day, for some categories, local merchants can be more competitive, but in other categories, the cross-border model will work better. It really comes down to competitiveness and consumer preference, so we continue to track how consumers respond to these different approaches and, you know, plan accordingly. Next question. Thank you. Your next question comes from Yang Bai with CICC. Please go ahead.

Speaker Change #167: But we think at the end of the day.

Speaker Change #168: For some categories local.

Speaker Change #158: Our merchants can be more competitive but in other categories.

Speaker Change #158: The cross border model will work better it really comes down to competitiveness and consumer preference. So we continue to track how are consumers receive.

Jiang Fan: It really comes down to competitiveness and consumer preference, so we continue to track how consumers respond to these different approaches and, you know, plan accordingly. Thank you. Next question. Thank you. Your next question comes from Yang Bai with CICC. Please go ahead.

Speaker Change #158: These different approaches and plan accordingly.

Speaker Change #158: Thank you next question.

Speaker Change #158: Thank you. Your next question comes from Yang with CIC. Please go ahead.

Speaker Change #158: Hum.

Yang: Thank you Ronnie.

Hong Xu: My question is that we can see that the company has a very generous plan to pay back the shareholders. According to our calculation, the share price is close to 8%. However, I am also a little worried.

Jon: Lindsay as Jon and I appreciate it.

Hong Xu: I have a question. We see that the company has a very generous shareholder return plan. According to our calculations, the share price is close to 8%. However, I am also a little worried.

Yang:

Yang: Okay. Thank you.

Yang: This evil.

Lindsay Smith: So as I know that you're taking.

Yang: Huh.

Yang: Hum.

Hong Xu: On the one hand, the current return plan seems to have a certain connection with the company's current low valuation. On the other hand, it seems to be a plan that needs to be announced every year and can be adjusted at any time in the future. But at the same time, we see that some overseas technology giants seem to be able to repay shareholders with a relatively large continued strength, regardless of the company's valuation. So my question is how to understand our shareholder return plan from a longer perspective. Thank you. Thank you.

Hong Xu: On the one hand, the current return plan seems to have a certain connection with the company's current low valuation. On the other hand, it seems to be a plan that needs to be announced every year and can be adjusted at any time in the future. But at the same time, we can see that some overseas technology giants seem to be able to pay back the shareholders with a relatively large continuation no matter what the company's valuation is after satisfying the normal strategic development of the company. So my question is how to understand our shareholder return plan from a longer perspective. Thank you.

Keith: Keith I'm in I'm sure sure sure Okay.

Kevin: Kevin I think I'll quibble with your partner.

Kevin I: Uh huh.

D C: Could you tell D.

D C: Glen.

D. Glen: Beyond that you issued.

D. Glen: Yeah.

Chi: Again Chi shampoo.

D. Glen: Your line is basically Chi Tung.

D. Glen: Thank you so much.

Speaker Change #178: How about you said could you do it all.

Speaker Change #178: Tom I think we've done that by then.

Speaker Change #178:

Tom: When it comes to the Jean Coutu Tuesday.

Sean: Thanks, Sean.

Sean: So it should be on top of it you don't need to go to see where the link you Sir.

D. Glen: Uh huh.

D. Glen: Okay.

Judy: So Judy.

D. Glen: Okay.

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

Judy: Thank you my question has to do with.

Judy: The company's plans to deliver returns to shareholders and we see those plans now resulting in something like the equivalent of an 8%.

Judy: Dividend yield.

Judy: But I have some concerns about the share repurchase plan going forward because it seems to be related to the currently rather low stock price, but in the longer term.

Speaker Change #177: How how will this play out and how can you guarantee your ability to continue to make those kinds of returns to our shareholders.

Speaker Change #177: Yes.

Judy: Uh huh.

Judy: Well, what I've laid out the wind here, which has so sure when particular, who don't worry about your hard work when you call them coaching and no quake auto home Busch's recent teaching the Ilan unit cases, so I mean, you can sort of annoying you actually a woman moved tenancy. The coupon you should try to change don't show quite pizza and that you can launch out each year that aren't in our opinion they signed me with it.

Hong Xu: First of all, if you look at our shareholder return plan over the past few years, we didn't start in the last year or two. We've been doing it for many years. And our current plan is also to be approved by the Board of Directors until March 2027. If you look at the numbers over the past two years, in the second and third years, we made about $130 billion in shareholder returns. In 2014, we made $16.5 billion in shareholder returns. At present, we can use the amount we can use to buy back the stock in the future. We still have nearly $3.2 billion.

Hong Xu: And our current plan is also under the previous board approval until March 2027. If you look at the numbers of the past two years, in 2023, we made a shareholder return of more than $130 billion. In 2014, we made a shareholder return of $16.5 billion. In the current account, the amount we can use to buy back the stock in the future, we still have nearly $3.2 billion.

Joe: Oh sure Joe look I need you can't coach down initially.

Tanya: Hi, Tanya on chop towards toilet, Jacob ebay, essentially making the prudent way by adding senior and one of the toilet Baidu Shaw imaging that don't quite ball time will change one way like cool young Utah at group Health, where he called the jingle in Ohio Ching Ching somehow he belonged by Joseph <unk>, what kind of woman Kate you feel so you tell me.

Hong Xu: We can continue to use it. So from the perspective of this shareholder return plan, this is not just a very short-term plan. This is already a long-term plan.

Hong Xu: We can continue to use it. So, from the perspective of this shareholder return plan, this is not just a very short-term plan. This is already a long-term plan, and it's already being implemented and will continue to be implemented. Well, thank you for that question. You know, our shareholder return plan isn't something that we just started to implement over the past one to two years. It's a long-term plan. It started several years ago, and the current plan we have in place has been approved by the board to run all the way through March of 2027.

Tanya Jacob: Oh don't worry about that she wanted a charter lifestyle chip which is C.

Jacob: But in Chile that you want to go see Jim Scheel, Hitachi that you're watching your gene therapy Jacob <unk>.

Hong Xu: And it's already being implemented, and it will continue to be implemented. Well, thank you for that question.

Tanya: King.

Hong Xu: You know, our shareholder return plan isn't something that we just started to implement over the past one to two years. It's a long-term plan. It started several years ago, and the current plan we have in place has been approved by the board to run all the way through to March of 2027. If you look at the amount of share repurchases that we did in the last year, it was around 13 billion U.S. dollars. The more recent year, 16.5 billion U.S. dollars, approximately, and that leaves us with around 30 billion U.S. dollars to continue to deploy.

Jacob: Well, thank you for that question.

Tanya: Our shareholder return plan isn't something that we just started to.

Unknown Executive: Implement over the past one to two years, it's a long term plan that started several years back and the current plan. We have in place has been approved by the board to run all the way through to March of two.

Hong Xu: If you look at the amount of share repurchases that we did in the last year, it was around 13 billion U.S. dollars. The more recent year, 16.5 billion U.S. dollars, approximately, and that leaves us with around 30 billion U.S. dollars to continue to deploy.

Speaker Change #181: <unk> 2027, if you look at the amount of share repurchases.

Speaker Change #179: We did in the last year. It was around 13 billion U S dollars.

Speaker Change #182: The more recent your 16 and a half billion dollars approximately and that leaves us.

Speaker Change #182: With around $30 billion U S dollars.

Hong Xu: So this is a long-term plan that we're committed to. All of these will need to be considered. On this basis, when we have resources, we will also be willing to do our shareholder return. Of course, when we are doing our shareholder return, we see the return and encouragement as two ways to look at a shareholder return in a unified way. We all see it as a shareholder return.

Hong Xu: So this is a long-term plan that we're committed to. All of these will need to be considered. On this basis, when we have resources, we will also be willing to do our shareholder return. Of course, when we do our shareholder return, we see the return and encouragement as a unified way to look at a shareholder return. We all see it as a shareholder return.

Don: To continue to deploy it. So this is a long term plan that we're committed to Don I want you to mutually advantageous Chung won.

Don: Wadlington tight con way like we don't worry about the channel and you could see I just don't see a woman continue all can we lie woman city that you guys had the Tianjin <unk> I'm sure my alcoholic woman Sad woman, Doug Cheatham C, which you can hear we lean in Peru that she all Josh I'll say, he's singling you cannot be wishful thinking no tell them.

Speaker Change #193: A I saw a woman to aib's either Eagle clotting pardon me. So you don't really see I'll call. It now so I think the Teatro shall not woman Youll Youll see a woman yeah. We got you told them that we don't play ball, but that's the way bought a shovel on the shipper Jake Jake Oh equal gun Lee. So what you could tell me like how he got kudos.

Jake: We bought the downtown Faneuil Hall.

Paul: Hey, Paul.

Paul: Ah.

Hong Xu: For us, as management of the company, thinking about how we'll continue to deliver those returns to shareholders in the future, we have to look, on the one hand, at the company's cash flows, and, on the other hand, at the investment needs of the company related to our core business, but also in new emerging areas that are important, like AI, for example, and also AIDC right now. But going forward, we will be committed to continue to make those kinds of returns to shareholders on that basis, and we take an integrated view. In other words, the share buyback program and dividend distributions together comprise our shareholder return program. We will look at the two together.

Paul: For us.

Paul: As management of the company thinks.

Paul: Thinking about how we'll continue to deliver those returns to shareholders in the future.

Paul: We have to look on the one hand at the Companys cash flows and on the other hand.

Paul: The investment needs of the company.

Management: Related to our core business, but also in new emerging areas.

Management: That are important like.

Company Representative: AI for example, and also our D C.

Speaker Change #185: Right now.

Speaker Change #185: Going forward.

Speaker Change #188: We will be committed to continue to make those kinds of returns to shareholders on that basis, and we take an integrated view in other words.

Speaker Change #197: The share buyback program and dividend distributions together comprise our shareholder return program, we look at the two together.

Speaker Change #188: Thank you next question.

Hong Xu: Thank you. Next question. Thank you. Your next question comes from Joyce Ju with Bank of America. Please go ahead.

Hong Xu: Thank you. Next question. Thank you. Your next question comes from Joyce Stu with Bank of America. Please go ahead.

Speaker Change #188: Thank you. Your next question comes from Joyce Ju with Bank of America. Please go ahead.

Speaker Change #188: Oh great.

Lixin Ju: Good evening, and thank you for accepting my questions, and is it possible to share more data with us, for example, in which market do we see which tastes, which type of users, we see the most hope for are our future long-term stable return users, or is it that we see where there is more to do, including the group also has a group called Cai Niang, which will make further investments in the cross-border business. Can you share a little Thank you.

Joyce Stu: Good evening. Thank you for accepting my question. And is it possible to share more data with us? For example, in which market do we see which tastes and which types of users? We see the most hope for are our future long-term stable return users, or we see where there is more that can be done. Including the group, there are also a few dishes. Will you make further investment in the fast hardware store?

Joyce Ju: You bet.

Speaker Change #188: Yeah.

Speaker Change #188: Oh yeah.

Joyce Ju: On the silicon side.

Speaker Change #190: Any place that somehow.

John: Hi, John.

Joyce Ju: How do you express he should look like.

Joyce Ju: Thank you.

Joyce Ju: Well it does.

Speaker Change #201: You bet.

Joyce Ju: Yeah.

Speaker Change #203: Hey, how are you.

Speaker Change #203: Tom I think you got to Oh I'm sorry.

Unknown Executive: Hi, there.

Speaker Change #188: Oh.

Speaker Change #188: Goldman Dawson and making the.

Goldman Dawson: And on the ships.

Speaker Change #188: Nathan.

Nathan: And now I'll.

Nathan: Sure.

Nathan: Okay.

Speaker Change #192: Oh yeah.

Nathan: With that thank you.

Nathan: Yes.

Joyce Stu: Can you share a little more specifically about which types of investment in which countries? Maybe we will focus on development and consideration. Thank you.

Nathan: Oh no.

Nathan: Hum.

Speaker Change #188: Yeah.

Speaker Change #188: Please go ahead.

Speaker Change #188: Yes.

Speaker Change #188: Yeah.

Lixin Ju: My question is also about AIDC in particular. We understand that the AE choice model now represents around 70% of total orders on AliExpress. Perhaps you could give us a little more color on how that model is growing, how you see it growing in the next couple of quarters or even in the next few years on a longer-term basis in terms of which regions, which categories, and what kind of users represent the most stable sources of growth or where there's the most potential for further growth.

Joyce Stu: My question is also about AIDC in particular. We understand that the AE choice model now represents around 70% of total orders on AliExpress. Perhaps you could give us a little more color on how that model is growing, how you see it growing in the next couple of quarters or even in the next few years on a longer-term basis in terms of which regions, which categories, and what kind of users represent the most stable sources of growth or where there's the most potential for further growth.

Speaker Change #195: Thank you. My question is also about AI D C in particular.

Speaker Change #195: We understand that the AE choice model now represents around 70% of total orders.

Speaker Change #188: Ali Express, perhaps you could give us a little more color on how that model is growing how you see it growing in the next couple of quarters or even in the next.

Speaker Change #188: Few years on a longer term basis in terms of which regions, which categories. What kind of users are represent the most stable sources of growth or whether it's the most potential.

Lixin Ju: And I'm also wanting to understand more about your collaboration with Tsainiao in terms of making further investments together in cross-border. Yes, I'd like to talk about the main categories of our current Aechoice model, some small and medium-sized aircraft. This kind of category is more suitable for cross-border operations.

Speaker Change #188: For further growth.

Speaker Change #188: Im also.

Ali Express: Like wanting to understand more about your collaboration with China in terms of making further investments together on cross border.

Speaker Change #188: Yeah.

Joyce Stu: And I'm also wanting to understand more about your collaboration with Tsainiao in terms of making further investments together on cross-border. Yes, I'd like to talk about the main categories of our current AE Choice model are some small and medium-sized aircraft. This kind of category is more suitable for cross-border operations. You can see that this kind of cross-border operation has some obvious advantages in these categories. It is more suitable to cross-border logistics in this way through aviation. I think this is what we have been focusing on in the past. [inaudible] and some local vendors.

Speaker Change #188: John.

Speaker Change #198: You mean woman the check to the tender age wise the moisture that other people may actually.

John: Actually as you change out yet because if they don't.

John: I'm not sure that's what's underneath your question to me.

Jiang Fan: We can also see that this kind of cross-border operation has some obvious advantages in these categories. It is more suitable for cross-border logistics in such an aviation way. I think this is what Aechoice has been doing for a long time.

Speaker Change #202: I mean, if you kind of took a pause in the mean schulke.

Speaker Change #205: Such a conditional surely she mentioned.

Speaker Change #213: You should've not happy I'll sure I'll, let you go.

Hong Xu: Hong Kong on the Eagle clutching order or the German legal function.

Speaker Change #214: I would say that trigger sure womens.

Speaker Change #204: Yeah, Yeah sure yeah.

Speaker Change #200: You'll you'll ship towards championship lately.

Jiang Fan: We are also developing new products based on the different modes of such supply chains. For example, in the Korean market, we are also trying to sell large-scale products by sea shipping and other local vendors. As a platform, we will start with our best products. We are also building a supply chain for more products. We also have a unique difference.

Speaker Change #200: A whole of me is that true Toyota and sure contributing electronic when again the more sure yeah that put us in the lead.

Shawn: Not beautiful woman couldn't say Shawn I don't know how strong you should not want me its a tranche at home or hiring the phone shortage major Trump Dot championship.

Shawn: But.

Speaker Change #211: Normally a bulk order ship and indeed, telling my daughter pencil to knock on I don't know what children.

Jarrod: Well, it's really the P&I shall Jarrod told me he also differently.

Speaker Change #207: It's nowhere near that.

Jarrod: A co Gen Michel can boringly the challenge.

Speaker Change #200: Yeah.

Speaker Change #200: Emily Lee there, what's your though woman-hater, what's what are the you've got pricing tool as well.

Jiang Fan: We have many local platforms, such as Lazada in Southeast Asia, and Turkey in the Middle East, and other similar platforms. Now, the whole of AEchoice will work with these platforms. Its products can be sold directly to these markets through such a platform. In such a market, we don't need to make a big investment to establish our C-brand.

Emily Lee: Once you're stretching your Io and bought the hydro.

Emily Lee: When I add another half a turn at all going to watch it.

Emily Lee: Triangular Ohio issue relates to Galaxy two.

Emily Lee: And I will Miss you and your choice Yeah contraception halfway its way the auto not how the shrunk in K 12, with China, you got a pinhead churches Shaw.

Speaker Change #209: Sure sure no I think it was just to touch on I guess, just how about me trying to it's really doesn't bother totally journey one of the state.

Speaker Change #209: People have not taken what meeting so dumping.

Jiang Fan: It can be established with our existing C-brand. So, what I want to say is that for different markets, based on our existing resources and the current situation in this market, we should consider which categories we should invest in. Thank you.

Speaker Change #221: Careful but I'll touch on here for sure.

Speaker Change #209: Well me up here quite a sort of true Shan Shan political shopping relation that you could.

Shan Dai: You saw that turned on a woman can trend over the last two what you'll show you're shifting like half for sure.

Speaker Change #223: What's your thought.

Shan Dai: I'll tell you within the Yo Yo sure now what woman pay Triple Hoffmann in township.

Shan Dai:

Shan Dai: And I want them to go public with that partnership.

Shan Dai: Sure.

Shan Dai: So it was sort of Sherwood mentioned, we've put on the well known countrywoman Shea with the CVA due to the sharp downturn, the Timolol woman chip chip to call. It a woman she apparently they don't need the total.

Shan Dai: Okay.

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

Shan Dai: Thank you well.

Shan Dai: Each choice is a business model that is best suited of course for light and small.

Sherwood: Packages light and small goods has a strong advantage in that space are goods that can be are shipped.

Shan Dai: Cost effectively.

Joseph C. Tsai: In the past that is really where Alibaba express has had an advantage in those kinds of categories.

Speaker Change #219: We are also working on growing different kinds of supply chain models.

Joseph C. Tsai: For different markets for example for South Korea, working on developing Additionally, ocean freight.

Joseph C. Tsai: For larger and heavier.

Joseph C. Tsai: Kinds of goods, so and piloting also the deployment of.

Jiang Fan: So, our general strategy in any market is to start with those categories where we have that advantage, the light and small packages, and then to build up a supply chain to support other kinds of demands that make sense for that particular market. Another important thing is that we have these local platforms in different regions, for example, Lazada in Southeast Asia, and Trendyall in the Middle East, and AE Choice is currently integrating with those different platforms to allow for direct sales into those markets, meaning that AE Choice does not need to make any big investments in branding and marketing to reach consumers in those markets.

Speaker Change #215: Local warehouses as well.

Speaker Change #234: So you know our general strategy in any market to start with those categories, where we have that advantage.

Speaker Change #217: In small packages.

Speaker Change #236: And then to build up our supply chain to support other kinds of demand if it makes sense for that particular market. Another.

Speaker Change #218: Important thing is that we have these local platforms in different regions for example, Masada and southeast Asia Trendy all are in.

Speaker Change #232: In the Middle East and a choice is currently integrating with those different platforms to allow for a direct sales into those markets, meaning that.

Speaker Change #220: The choice it doesn't need to make any big investments in branding and marketing.

Speaker Change #220: Two consumer offering in those in those market, so thats, allowing us.

Jiang Fan: So, that is allowing us to move ahead very rapidly into those different markets. Of course, different categories make better sense in different markets. In the case of Turkey, for example, they have an advantage when it comes to apparel, but we can achieve an advantage there in other categories where they do not have that kind of local supply.

Speaker Change #220: To move ahead very rapidly into those different markets of course, you know different categories make better sense in different markets in.

Speaker Change #237: In the case of Turkey. For example, they have an advantage when it comes to apparel, but we can.

Speaker Change #222: Achieving advantage there in other categories, where they don't have that kind of.

Speaker Change #226: Local suppliers so in each market of course, we look at our own resources, what we can bring if we look at the situation in that market and then decide which categories, we're going to bring to that market and how.

Jiang Fan: So, in each market, of course, we look at our own resources and what we can bring. We look at the situation in that market and then decide which categories we are going to bring to that market and how. Thank you.

Moderator: Thank you, let's invite the last question.

Moderator: Thank you. Your next question comes from James Lee with me. Please.

James Lee: Your next question comes from James Lee, who says, Great. Thanks for taking my question. And so we'll take your questions about AI and the cloud. And can you maybe talk about your development, your own large language model, and help us understand where your focus is? Is it scale?

James Lee: Please go ahead.

James Lee: Great. Thanks for taking my question.

James Lee: Quick question about AI and cloud.

James Lee: Maybe talk about your development Youre on barge language model and help us understand where your focus is.

James Lee: Is it going to scale to be the largest one, you know, based on the number of parameters? Or are you focused on different modalities of data, you know, voice, text, image, or video? And should we think about the end goal for your large language model, to create maybe applications such as AI agents, shopping agents for your consumers, and business agents for your merchants? Thanks so much.

James Lee: Well as it scales to Peel off this one you know based on the number of parameters or are you focused on different mortality data.

James Lee: Boy.

Speaker Change #227: And should we think about the end goal you'll watch language models create maybe athletes.

Speaker Change #227: <unk>.

Speaker Change #229: Shopping agents consumers and business agent for your merchants. Thanks, so much.

Speaker Change #227: Uh huh.

Speaker Change #227: I think it's okay.

James Lee: I think my question is about AI and voice. I'd like to know if you are mainly looking for scale, such as how many parameters, or if you are looking for multi-modal coverage, such as voice, text, video, etc. Is your ultimate goal to create AI agents? This is an assistant.

Speaker Change #228: What are you going with yes, you're going to go.

Speaker Change #228: Hum.

Speaker Change #243: To your question. So it's just showing how it should all nymann true treats.

Greenwald: Greenwald Youre short tons should at Wassa.

Greenwald Youre: As you saw it treats you would do a more tied a fluke I just showed you in one through shipping.

Speaker Change #228: The all in your blood sugar fat.

Joyce Stu: Tom Watson. So we've shown that you can move your shoes Xiang Toronto is yet to go.

Tom Watson: Hey, either single agent.

James Lee: For example, it can help your consumer to make a purchase or help the seller to be a salesperson. I would like to clarify that the first question you want to ask is about our big model. Could I just ask you please to clarify the thrust of your first question, are you asking about the main objectives for our ongoing development of large models? Yes, the development of a large language model, is it on the scale to have one of the largest ones in China based on the parameters? Is that the focus or the modality of the data, you know, voice, text, and image as the focus?

Speaker Change #231: So Tucson.

Tom Watson: You were supposed to be borrowing either sulphate ore shoots way daigo put a shoebox Shaanxi, Anna Chew toys social gotcha.

Tom Watson: Okay.

Tom Watson: Oh the <unk>.

Speaker Change #233: Can you say I Wonder do you go in to the Guangzhou and Mcdonalds in the.

Speaker Change #242: Southern phone Tao has to have some.

Speaker Change #233: Could I just ask you. Please to clarify the thrust of your first question are you asking about the main objectives for our ongoing development of large models.

Speaker Change: Yes. It development lots of Atlanta was model is it to scale to have one of the largest went in China based on the more parameters is that the focus or the mortality of the data you know voice image assay focus cause different company that throughout internationally they have different focus.

James Lee: Because different companies internationally, they have different focus in terms of growing that large language model. Yes, I mean, the development of a large language model, the focus or the ultimate goal is to have the most parameters or to have the most modality, including voice, text, video, etc. I think it's like this, now all... [inaudible], AGI, But they are basically the same, i.e., the so-called AGI, the universal AI. In fact, every company will have its own direction of choice in the path of this goal. So I think the ultimate goal is probably the same for everyone.

Speaker Change #238: At March language model.

Speaker Change #238: Twitter Windows shouldn't you and Tom Watson <unk> tissue whaler chunk, yet Oh, what does she joins he moved at all.

Speaker Change #238: Tweets.

Speaker Change #235: Sweet toward a tangible I should treat you with us.

Tom Watson: We told them what tied to you go full guy for quite a few hidden one for shipping.

Speaker Change #240: Well it does it does seem that.

Speaker Change #240: Soil.

Speaker Change: Just as a woman the <expletive>.

Speaker Change: Well no hidden agenda.

Speaker Change: I think that's all the time looking they're going to trade off of Bogalusa.

Ronald Keung: Each of the functional.

Speaker Change: Cheaper. So you took the soy the hei Toyota going gone sooner than.

Speaker Change #239: So what else to tell chicken won't be able to go low teens, so he's not all of them.

Speaker Change #239: Of course, the Doi always yet since you since you to finally get a chance to see what you don't see it won't be all kind of thought there I don't see too. So it's all in gas a day.

Yongming Wu: In the end, it should be... sound, text, image, and video will eventually be integrated into one system and become an ultimate model. But on this road that our Chinese and American companies are taking, there are fast and slow, there are choices, there are breakthroughs through some vertical directions. So this is, we are fast and slow on the path, and the overall direction should be consistent.

Speaker Change: Singing one button push out her shipping so you don't do a ton of color. Your gut telling you taught you see local Daiichi <unk> told you. The someone's either you could time watching that as a woman the vocal at some levels of alcohol mix, but most of that though does.

Speaker Change: Hello, Chao your cable not Yo Yo Yo Shanteau Youll see at toy Fair trades. They finally kind of a twofold. So he will take us a woman that I really can't tell you why you're not sent you to finish out this out and guide you'll see someone with you in the soil.

Yongming Wu: In the end, I think the sound, text, image, and video are all integrated into one big model. This is a long-term development direction. Well, I think all of the companies in the large model space, anybody who's developing foundational models, shares the same goal, and that is working towards AGI, or Artificial General Intelligence. But different companies will take different routes to get there, and along the way, they can make different choices and may choose to develop certain kinds of vertical applications, leveraging their models along the way.

Speaker Change: Singing one, but we have a shipping Dolby no Jose you got Tom Wahine meant to see you go towards either you go you can find them.

Speaker Change: Right, well I think all of the companies.

Speaker Change #244: In the large model space anybody who's developing foundational models shares the same goal and that is working towards hei artificial general intelligence, but different companies will take different routes to get there and along the way.

Joyce Stu: Can make different choices and may choose to develop certain kinds of vertical applications leveraging their model on the way, but at the end of the day I think for all players. The ultimate goal is to achieve hei cut.

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

Hong Xu: Covering everything from voice.

Speaker Change: Voice and audio through to image video.

Speaker Change: Text and encompassing all of that so a different different pathways to getting there perhaps different kinds of vertical models, along the way, but the objective I think is a common objective.

Speaker Change: So if we'd all Alibaba wore me out.

Speaker Change: Total with them about it so you're at G. Yeah, Angel sewn kits user agi, well just work high five because I thought I'm looking to find something to them well that was what you said your son good.

Yongming Wu: AGI AGI or the direction of AGI or the development of large models for us is actually three,, Three important goals. The first goal is to provide a very high-performance, high-performance AI model for Chinese developers or Chinese companies. I think on this path, maybe globally... Basically, Alibaba is doing its main business at the same time as its AGI. Alibaba is a company that focuses on big models. We think we have a great opportunity here.

Speaker Change: Send that's only on the mobile you can move out but it isn't just that.

Speaker Change: But it didn't say D a.

I'm looking to T V in South Orange County.

Speaker Change: Ida telling you you can pencil do yoga mobile when you did the Alibaba that's what she said Yale you could face on somebody out there she has she.

Speaker Change: She was a woman told me that I'm wishing you a minority of the saia Melissa it's at 10, a M pay that isn't a woman's yahweh ballroom in them.

Speaker Change: Tell me the time wishing you already.

Speaker Change: The change in the AI, it's useless, just thinking about India. She Antonio lightweight don't go with the Quepasa, what's it's all good.

Speaker Change: I'm glad it's yet Hugo you go feed how do you fit on challenging job you've hit on Calder AI that you are looking to default.

Speaker Change: I take a look at things out.

Speaker Change: Could that change your.

Speaker Change: Chip I was hoping you just Charlie Honeywell bought well unless it told US is that what you got but you.

Speaker Change: You enjoy its way towards the ball.

Speaker Change: Normally she enjoyed so where are you with the east coast. So when would you does that they'd be in you know you got faith and thought that you could sit on.

Speaker Change: Thought that you could see wait but how do you send your women's has a tool and tool minatom washing the Tony the fact that NIM go away Alibaba cheese.

Speaker Change: The AI and the fact that she's going to go up.

Speaker Change: Do you go when you get used to them working with Susan do you want take excuse me I'm looking at this and then go low Alibaba, the Chita, you, which I'm thinking a clock.

Joyce Stu: <unk> then go the only way you can call the yugo.

Speaker Change: You've got a either you've got decent kind of hot tap and go tons all problems with Honda in your Chin I'm going to cheat.

Speaker Change: You'll find all AI into to go so you can find out.

Joyce Stu: Yeah.

Yongming Wu: The third point is that through the development of big models, we can provide a great opportunity for the development of AI in other businesses at Alibaba, and Alibaba's other businesses, such as Ding Ding, Quark, and Taobao, can have a better AI infrastructure development platform to create and help their applications switch to AI. For Alibaba, I think there are really three major objectives underlying our ongoing large investments in research and development around AI and large models. The first is the pursuit of AGI, as I just explained, per se, developing our own foundational models for AI, moving towards AGI.

Joyce Stu: Four.

Joyce Stu: Alibaba.

Joyce Stu: I think there are really three major objectives.

Joyce Stu: Underlying our ongoing large investments in research and development around AI and large models.

Speaker Change: The first is the pursuit of hei as I, just explained per se developing our own foundational models for AI moving towards Hei.

Yongming Wu: The second objective is, internally within Alibaba, integrating our cloud offering with Tony, our large language model, integrating them tightly so that we can provide our customers with extremely well-integrated software and hardware offerings, bringing together our cloud capabilities and our AI capabilities and enabling them to benefit from very highly effective and cost-efficient AI functionality. And I think if you look around the world, I don't think there's really any other company anywhere, like Alibaba, that has the cloud as one of its major businesses and AI as one of its major businesses simultaneously, so we see that as a huge opportunity.

Speaker Change: Second objective.

Speaker Change: Is internally within Alibaba integrating cloud, our cloud offering with Ah Tony our large language model integrating them tightly so that we can provide to our customers.

Joyce Stu: Extremely well integrated software and hardware offerings.

Speaker Change: Bringing together, our cloud capabilities, and our AI capabilities and enabling them to benefit from very high.

Speaker Change: Highly effective and cost efficient AI functionality.

Speaker Change: And I think if you if you look around the world I don't think there's really any other company anywhere like Alibaba has cloud as one of its major businesses and AI.

Joyce Stu: One of its major businesses simultaneously, so we see that as a huge opportunity.

Joyce Stu: And then the third objective really is leveraging.

Yongming Wu: And then the third objective is really leveraging the development of Tony to enable other businesses within the Alibaba group to better develop their own applications and their own businesses. So thinking of applications like Dingding but also Quark and even Taobao, they can: The open source model that we agreed on should be the top open source model in the Chinese world and the widest open source model used by developers in the Chinese world.

Speaker Change: The development of Tony to enable other businesses within the Alibaba group.

Joyce Stu: To.

Speaker Change: Better develop their own applications and their own business, so thinking of applications like thinking, but also cork and even Togo they can benefit.

Speaker Change: From leveraging our large model 20 to further improve their own applications. Okay.

Speaker Change: What's it telling you that you can lead to doctors acquainted with YOD, Yeah, and she was a woman to tell me that I'm wishing you all even though your tickets you could.

Speaker Change: Well, Tony the KBR more things you can guess, it's Tim that's all in the city of treating agenda Cary I'm wishing you says hey, I don't want to just say Oh I've got to see them take one more thing on kind of thoughts that that's how the that's how the kind of I'll call. It and done those C O Mackay I'm looking to sell them dump on how that sort of in your shelf.

Yongming Wu: When developers use our open source model in their development process, when their applications need to be deployed online, they will choose Alibaba's services very naturally. For a simple example, we can see the relationship between the whole unified model and Alien's ecology and Alien's business model. Just to further expand on that second point I just made about the tight integration between our Tongyi model and our cloud offerings, you know, our open source model that we've made available is undoubtedly the number one top open source model anywhere in the Chinese-speaking world, and it's also certainly the most widely adopted.

Joyce Stu: She'll pause without Samsung as a whole would probably say to answer on the shale how do you mean, the full Nevada unions.

Speaker Change: Tell me the K I'm looking to you unless you can get too hot too Hot I saw let's say so let's see so it took us. So you got you got you.

Speaker Change: Got you and then Elisa can you kind of elements I'm going to tell me I'm looking your audio Linda Syntaxes yachting and its hanging more so that you go there you go question.

Speaker Change: Just to further expand on that second point I, just made about the tight integration between our <unk> model and our cloud offerings.

Tsainiao: Our open source model that we've made available is undoubtedly the number one pop open source model anywhere in the Chinese speaking world.

Joyce Stu: And it's also certainly the most widely adopted.

Yongming Wu: So when you have developers using our open source model in their own development environment to develop something, when it comes time to deploy that, it's a very natural choice for them to choose Alibaba Cloud because of the very high level of cost efficiency, but also because that's the most familiar environment to them.

Speaker Change: So when you have developers using our open source model in their own development environment to.

Speaker Change: To develop something when it comes time to deploy that it's a very natural choice for them to choose Alibaba cloud because of the very high level of cost efficiency, but also because that's the most familiar.

Joyce Stu: Environment to them. So that's just a very simple example.

Yongming Wu: So that's just a very simple example showing how we can leverage that tight integration between Tongyi, our platform, and the cloud and indeed other aspects of Alibaba's business and business models. Okay, that concludes our earnings call today, and thank you, everyone, for your participation. We will...order. That does conclude our conference for today. Pei Ding, Yimei Niu. Thank you for watching! and many more. I'll see you in the next video, and many more. We'll see you next time. (inaudible)

Speaker Change: <unk>, how we can leverage the tight integration between our <unk>, our model and cloud and indeed other.

Joyce Stu: Aspects of Alibaba as a business and business model.

Speaker Change: Okay that concludes our earnings call today, and thank you everyone for your participation.

Joyce Stu: Florida.

Joyce Stu: Yeah.

Speaker Change: That does conclude our conference for today. Thank you for participating you may now disconnect.

Joyce Stu: Okay.

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Joyce Stu: Okay.

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