Q2 2025 Alibaba Group Holding Ltd Earnings Call

Good day, ladies and gentlemen, thank you for standing by and welcome to Alibaba group's timber 20, Twentyfold results conference call.

At this time all participants on this call in the night.

Speaker Change: After management's prepared remarks, there'll be a Q&A session I would now like to turn the call over.

Speaker Change: Lithium you head of Investor Relations of Alibaba Group. Please go ahead.

Good day, everyone and welcome to Alibaba Group's September quarter, 2024 results conference call with US and she was high Chairman Eddie Hu, Chief Executive Officer, Toby Shea Chief Financial Officer. We have also advise you that Johnson co chairman and CEO.

Speaker Change: Alibaba International with digital Commerce groups, who joined the call. This call is also being webcast from the IR section of our corporate website.

Replay of the call will be available on our website. Later today now let me quickly cover the safe Harbor as usual, we would like to remind everyone that today's discussions may contain forward looking statements.

Speaker Change: Are subject to risks and uncertainties, which could cause actual results to differ materially from those contained in the forward looking statements.

Speaker Change: Please refer to the safe Harbor statements that appear in our press release and Investor presentation provide each day.

Speaker Change: Please note that certain financial measures that we use on this call I expressed on a non-GAAP basis.

Speaker Change: Our GAAP results at constellation of GAAP to non-GAAP measures can be found in our earnings press release.

Eddie: Unless otherwise stated growth rate of all state either metrics my shouldn't you on this call refers to year over year growth versus the same quarter last year with that I will now turn to Eddie.

Okay.

Eddie: Yeah.

Eddie: Hi, Danielle.

Eddie: Greetings and welcome to our quarterly earnings call.

Speaker Change: This quarter, our core business segments maintained steady growth guided by our user first AI driven strategy.

Speaker Change: Purchase frequency continued to drive GMB growth on our platform.

Speaker Change: With interoperability initiatives.

Speaker Change: Adding new growth impetus.

Speaker Change: Yeah.

Speaker Change: Recently.

Yeah.

Speaker Change: Monthly active consumers on Taobao and Tmall reached a new all time high Alibaba International Digital Commerce revenue growth remained strong cloud revenue, excluding Alibaba consolidated subsidiaries grew steadily with AI products contributing an increasing share.

Speaker Change: Across segments, we progressively enhanced operational efficiency and monetization capabilities and further improve the performance of lossmaking businesses.

Speaker Change: For example in T Ball group, we stick to our user first strategy. During this quarter purchase frequency continued to drive GMP growth with continued improvement in overall user experience.

Speaker Change: Our loyal customers represented by Ath VIP members continued to increase.

Speaker Change: Reaching 46 million by quarter Ed.

Speaker Change: In terms of monetization progress, we implemented an industry standard 0.6% software service fee this quarter, while providing certain rebates to SME merchants.

Speaker Change: Merchant adoption of Alibaba, Shenzhen tweet marketing tool continues to rise contributing to marketing revenue growth.

Speaker Change: Yeah.

Speaker Change: We concluded a successful double 11 global shopping festival.

Speaker Change: During which taobao and Tmall.

Speaker Change: Achieved robust growth in GMP with the number of monthly active consumers back to growth and achieving a record high.

Speaker Change: We believe that the growth of purchasers will continue and user growth and retention will subsequently bring more consumption upside in the future.

Speaker Change: We're optimistic about the government's macro stimulus policies and are confident in their positive long term economic impact.

While E Commerce competition remains intense we will continue to invest in core user groups and product categories increased investment in new users and improve user retention implementation of these initiatives will drive sustainable growth of our platform.

In our cloud segment, we continue to optimize revenue mix, while advancing our integrated cloud plus AI development strategy Alibaba cloud revenue, excluding Alibaba consolidated subsidiaries grew 7% this quarter of steady improvement from the June quarter. The revenue growth was driven by double digit public cloud growth and in particular revenue from AI related products.

Speaker Change: Maintained triple digit growth for the fifth consecutive quarter, increasing its share in public cloud revenue.

During this quarter Alibaba cloud held the 16th sub Sahara Conference and launched a suite of competitive technologies and products. We believe the AI era is just beginning and we're just still in the early stage of Hei transformation looking ahead aie's potential extends beyond mobile screens, it's poised to reshape the digital world and ultimate.

Speaker Change: <unk> transformed all industries in the physical world.

Speaker Change: As a leading cloud service provider for AI in China, We will continue to invest in advanced technology and infrastructure, while optimizing operational efficiency.

Speaker Change: This will enable us to deliver more reliable and cost effective AI technologies and products across industries, we believe that as AI penetration grows Alibaba clouds cloud computing and AI related products will become the foundational infrastructure that supports development across industries.

Speaker Change: In international ecommerce, a I D C achieved 29% revenue growth this quarter, maintaining strong growth momentum and junk fan will be sharing more details shortly.

This quarter, it's tiny off further strengthen synergies with other businesses in our group and significantly advanced its highly Digitalized Global logistics network, we will continue to invest in core capabilities and promote front end back end synergies. This quarter. We also narrowed losses in both local services and digital media entertainment, demonstrating steady and progressive improvement in operational.

Speaker Change: Efficiency.

Speaker Change: Despite intensifying ecommerce competition in recent months Taobao and Tmall achieve breakthroughs in core user retention and in new user growth our cloud business maintained rapid growth in AI related products.

Speaker Change: Other businesses continued to improve their operating efficiency as planned while achieving business grows we will continue investing in core businesses and improve quality of operations and we are fully confident in the future.

I will now hand over to John.

John: Hi, everybody.

John: Over this past quarter, a idc's overall revenue grew by 29% year over year, primarily driven by cross border business in terms of our three areas of consistent focus first AE choice orders maintained strong year over year growth, it's relatively high share of total orders further solidified the certainty and consistency of use.

Experienced average delivery time continue to shorten during this quarter, we focused on optimizing the mix and operational efficiency of our marketplace and consignment models, improving user experience and product selection with steady improvement in E. Choices unit economics. We also launched the aliexpress direct model leveraging merchants local inventories in overseas markets to expand products.

John: Section and optimize fulfillment experience.

John: Second we continue to explore the application of AI across our business has launched an updated multiple AI tools, we released our AI powered <unk> search engine in November.

This new product re imagines international procurement through conversational search, making global sourcing easier for Smes, while improving overall platform transaction efficiency third we continued deepening our presence in key markets trendy also international business maintained strong momentum in multiple adjacent markets with improving product selection and user experience, we will leverage the traditional.

John: Season in November and December to increase investments and expand user base and an effective and efficient manner in key markets, while balancing and enhancing user acquisition and operating efficiency.

John: We will remain focused on enhancing operational efficiency, while strategically investing in key markets to pursue our strategic goal of profitability at scale. Thank you.

Speaker Change: Thank you Jonathan.

Speaker Change: The financing at the financial performance of the past quarter further confirms that our execution of the growth strategy in our core businesses remains on track.

On Taobao and Tmall business, we've made steady progress in our monetization strategy this quarter with a salary to see him off growth contributing to a solid trend in our domestic E. Commerce business, we implemented that the software service fee based on percentage of complete a G N. The starting from.

September 1st Chen's empty, our AI powered platform wide marketing tool so an increase in merchant adoption from the prior quarter.

Merchants benefit through improved marketing efficiency, which we expect will lead to increased spending on our platform. We adopted a more open approach for payment and logistic services on our platforms to make shopping our platforms more convenient to a larger base of consumers.

Speaker Change: And improve merchants operating efficiency, we expect this will translate into use it growth in more transactions in the future.

For our cloud business momentum remained strong as revenue growth a Saturday rated from the prior quarter to 7%. This growth is driven by the increasing demand for AI, which triggers more demand for our public cloud products.

Speaker Change: Revenue from our public cloud products grew at double digits, while a I related product revenue achieved triple digits year over year growth for the fifth consecutive quarter.

Speaker Change: This quarter, a I D. C maintained its rapid growth with strong momentum from cross border business expansion, especially through our choice business.

Both on express and 10 deal continued investing to grow users in Europe and the Gulf region.

Speaker Change: Beyond E Commerce in cloud, we are improving the operating efficiency of our other businesses, we used to go of sustainable business growth and returning to profitability.

Speaker Change: Some of the businesses are achieving profitability, even sooner while the majority will achieve breakeven within one to two years and gradually begin to contribute profitability at scale.

Speaker Change: For the September quarter, we repurchased shares for a total of a U S. Dollar full point 1 billion com.

Combined with the U S dollar 5.8 billion repurchased during the June quarter, we spend a total of approximately U S. Dollar 10 billion and achieved a full point for a net reduction in share count for the first half of the fiscal year.

Even after factoring in Aesop issuances.

Speaker Change: We have been able to achieve this significant level of AR creation, just six months into fiscal 'twenty 25, compared to a 5.1% net reduction in share counts for the entire fiscal year 'twenty 'twenty four.

Speaker Change: As of September 30th 'twenty 'twenty, four we still have U S. Dollar 22 billion in authorization for further share repurchase program.

Speaker Change: Going forward the pace of our share buybacks will be a function of she applies our as our strategy is to optimize she account reduction against this cash cost often aggressive share repurchase program.

Beyond the hour Schieber Apologists program, we also practically manage dilution from all Aesop program by replacing a portion of the Aesop with long term cash incentives starting this fiscal year. This shift allows us to limit share dilution in the future.

Speaker Change: As well as better utilizing our cash generated from domestic businesses.

In August we completed our primary listing in Hong Kong, followed by inclusion in the southbound stock connect in September by September 30, 20, plentiful net inflows into our Hong Kong listed she is reached Hong Kong dollars 46 billion.

Speaker Change: We are presenting approximately 515 million Hong Kong shares, which is equivalent to U S. A.

Speaker Change: 64 million a D. S S ingest 12 trading days.

Speaker Change: This accounts for approximately 3% of our outstanding shares. We are pleased that the south bound stock connect has enabled the broad access and engagement for investors from mainland China.

Speaker Change: On a consolidated basis total consolidated revenue was RMB $236 5 billion, an increase of 5%.

Speaker Change: Consolidated adjusted EBIDTA decreased 5% to RMB 40.6 billion, primarily attributable to the increase in investments in our e-commerce businesses.

Speaker Change: Excluding the effect of long term cash incentive plan, our adjusted EBIDTA growth would have been a decrease of 4% on a like for like basis compared to same quarter last year.

Speaker Change: Our non-GAAP net income was 36.5 billion a decrease of 9% our getting at but GAAP net income was RMB 43.5 billion, an increase of 63% primarily attributable to the market to market changes from our equity.

Speaker Change: <unk>.

Speaker Change: Decrease in investment in Hammond and the increase in income from operations.

Speaker Change: As of September 30, 'twenty 'twenty four we continued to maintain a strong net cash position of RMB 352.1 billion all U S dollar 50.2 billion.

Speaker Change: Free cash flow. This quarter was RMB 13.7 billion, a decrease of 70% compared to RMB 45.2 billion in the same quarter last year.

Speaker Change: This was mainly attributed to our investments in Alibaba cloud infrastructure.

In addition, theres a refund to Tmall merchants. After we can so that the annual service fee and some other working capital changes relate to factors, including scale down of certain direct sales businesses.

Given the sustained and strong demand for AI, we will continue to invest in AI infrastructure as we anticipate future demand for AI driven cloud services.

Speaker Change: Now, let's look at our segment results, starting with Taobao and Tmall group.

Revenue for Taobao, and Tmall was RMB 99 billion, an increase of 1%.

Speaker Change: Revenue from our China Commerce retail business was RMB 93 billion compared to RMB $92 6 billion in the same quarter last year customer many more revenue increased by 2% primarily due to online DMV growth, while takeaway remains stable year over year.

Speaker Change: We have made steady progress in our monetization strategy this quarter with a salary to the CMO growth driven by the implementation of the software service fee uncompleted G. In the in a wider adoption of churn Dante.

Speaker Change: Direct sales and other revenue decreased by 5% to RMB $22 6 billion, primarily attributable to the decrease in sales of appliances.

Speaker Change: China Commerce wholesale business revenue increased 18% to RMB 6 billion, primarily due to the increase in revenue from value added services provided to paying members.

Speaker Change: Taobao and Tmall group adjusted EBIDTA decreased by 5% to RMB 44.6 billion, primarily due to the increase in investment in user experience, partly offset by increasing revenue from customer man you must service.

Speaker Change: Revenue from Tao Intelligence Group was RMB 29, 6 billion in this quarter, an increase of 7% overall revenue excluding Alibaba consolidated subsidiaries increased by 7%, mainly driven by double digit public cloud revenue growth, including AI related.

Perfect.

Speaker Change: AI related product revenue grew at triple digits year over year for the fifth consecutive quarter.

Cloud just a petard increased by 89% to RMB, two 7 billion, while our adjusted EBITA margin increase of four percentage points to 9% year over year, primarily due to shifts in product mix towards high margin prep public.

Speaker Change: Cloud products, including AI related products and improving operating efficiency.

Harley offset by increasing investments in customer growth and technology, we will continue to invest in anticipation of customer growth and in technology, particularly in AI related cloud infrastructure to capture the increasing trend of cloud adoption.

Speaker Change: For AI and maintain our market leadership.

Speaker Change: Revenue from AI D. C grew 29% this quarter. The strong performance continued to be driven by growth of cross border businesses in particular, a odd express choice business.

Revenue from International Commerce retail business increased by 35% to RMB $25 6 billion, primarily driven by the increase in revenue contributed by Ani Express is choice and trend deal.

Speaker Change: Revenue from our international Commerce wholesale business increased by 9% to RMB six 1 billion, primarily due to the increase in revenue generated by cross border related value added services.

Speaker Change: A I D. Six adjusted EBITA was a loss of RMB, two 9 billion compared to a loss of RMB 384 million in the same quarter last year.

Speaker Change: Primarily due to the increase in investments in odd Express and Trendiest cross border businesses, partly offset by Levada significant reduction in operating loss from improvements in its monetization and operating efficiency.

Speaker Change: It sounds I mentioned going forward, a I D. C will continue to invest in key growth markets. We have identified four strategic expansion, while enhancing operational efficiency in markets, we see line of sight to profitability.

Speaker Change: Revenue from China grew 8% to RMB 24.6 billion, primarily driven by an increase in revenue from cross border fulfillment solutions, we will continue to invest in China's car capabilities to ensure its delivers unique value to our e-commerce businesses to this Dan Tanya will.

Speaker Change: Prioritizing investing in building its core capabilities to ensure the synergies with our e-commerce businesses.

Speaker Change: China's adjusted EBIDTA decreased by 94% to RMB 55 million compared to RMB 986 million in the same quarter last year, primarily due to the increase the investment in cross border fulfillment solutions.

Speaker Change: Revenue from local service group grew by 14% driven by the order growth of both a math and Ela MA as well as revenue growth from marketing services.

While losses narrowed significantly primarily driven by improving operating efficiency and increasing in scale.

Speaker Change: Revenue of digital media and Entertainment group was RMB five 7 billion.

Speaker Change: While losses narrowed youll cool Progressiveness <unk> reduced its operating loss due to increased advertising revenue as well as improve the content investment efficiency.

Speaker Change: Revenue from all other segment increased by 9%, mainly due to the increase in revenue from retail businesses, including fresh a poll and Alibaba House.

Speaker Change: While adjusted EBITA was a loss of RMB, one 6 billion.

Speaker Change: In closing, we are making solid progress in strengthening the competitiveness of our core businesses of domestic E Commerce and cloud computing, both of which have proven to show sustainable profitability.

We have the confidence to invest in our AI D C business, because we see high growth potential and we continue to find ways to make our lossmaking segments more efficient put them on a clear path to profitability.

Speaker Change: Thank you that's the end of our prepared remarks, we can open up for Q&A.

Speaker Change: Hi, everyone for todays call you are welcome to ask questions in Chinese or English or third party translator will provide consecutive interpretation for the Q&A session. Please note that the translation for convenience purpose only in a case of any discrepancy are management's DMA in arranging the language it will prevail.

Speaker Change: If you are unable to hear the Chinese translation bilingual transcripts of this call will be available on our website within one week. After the meeting at Aha Syngenta deal hopefully LN young so well call you mentioned that well hopefully you'll do some phone calls or the anti bush issue. The Cherokee trainee same moody's shifts ambient.

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Speaker Change: As the CEO of Mcgladrey, telling you actually yes, so it's all of the essential wasteland.

Speaker Change: <unk> Qingdao joins I, then city of Holly the Shine team, who jumped out where your DSO, how each oney, so wonder launch I sound people.

Speaker Change: Operator, please start the Q&A session. Thank you.

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

Speaker Change: Again that is star one to register for a question.

Speaker Change: Your first question today comes from Alicia Yap at Citigroup. Please go ahead.

Alicia Yap: Oh. Thank you so basically management. Thanks for taking my questions. My questions is related to this yes.

Alicia Yap: <unk> promotions and the macro outlook. So I think most people would agree single stage consolidating share in Sao tome and its a lot maybe better than expected and it seems like this year most of that discount voucher offline tour concealer I'll come from platforms, rather than a shared between the platform and some change.

Speaker Change: So I'm just wondering if management can provide some feedback from merchants and brands to be adding guest satisfactions on this thing that stays promotion and also how should we think about the financial impact at home as related to the higher coupon discount together with higher returns.

Speaker Change: Sure.

Speaker Change: Setting potentially longer term positive impact if at all from a more viable and sustainable operation and Ireland format change that might translate to higher at budget spatter under at tools that will benefit longer term CLR trend and then if there's any preliminary deal I don't know.

Speaker Change: <unk> sure how you think about the macro outlook and overall improvement in consumption trends as we head into 2025. Thank you.

Speaker Change:

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Speaker Change: Yeah.

Speaker Change: Thank you this is Eddie and I'll be happy to take that question.

Speaker Change: In terms of our the way we approached double 11, this year for Taobao and Tmall, we got off to an early start getting going with the campaign back in October So the campaign round over a longer cycle of course other platforms also got off to a.

Speaker Change: An earlier start.

Overall, we achieved a relatively robust GMB growth during the campaign period.

Speaker Change: Yes.

Speaker Change: I would say that the results that merchants achieve based on what we discussed with them going into the campaign in terms of their expectations and then the feedback we got from them. After the campaign is that results exceeded their expectations I would say that overall results exceeded.

Speaker Change: Our expectations are as.

Speaker Change: As to your question on coupons I think the setup is basically similar across all of the different platforms. You have two different categories of coupons platform coupons on the one hand and category coupons on the other so when it comes to platform coupons on Taobao and Tmall. These are basically coupons that we the platform of issuing.

Speaker Change: Two are 88 VIP members.

When it comes to the category coupons are jointly issued by the platform.

And our merchants.

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Speaker Change: And I'd, just like to add to that last point, namely that when we use the platform provide those.

Speaker Change: Our platform coupons to our members that has a very positive impact in the longer term for brands in terms of helping them to grow their business.

Speaker Change: It shapes positive future expectations and with that level of confidence that their business will be growing.

Speaker Change: We can expect them to spend more on advertising and marketing, thereby contributing to CMO revenue growth.

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Speaker Change: And then turning to your third question on the macro situation in.

Indeed from the end of September onwards.

Speaker Change: Various different monetary and fiscal stimulus measures have been announced.

Speaker Change: At the national level and in many different localities also trade in programs are being run for upgrading electronic goods.

Speaker Change: As well as subsidies for our home appliance and automobile purchases saw these programs definitely are stimulating growth in sales in the irrelevant or categories and I think the stimulus measures are really just just getting started and overtime will have a positive impact.

Speaker Change: On driving consumption overall.

I think these policies in particular will also help reduce merchants destocking cycles.

Speaker Change: Have a medium to long term effect in terms of driving the consumption of branded goods.

Speaker Change: Yeah.

Speaker Change: Our next question operator.

Speaker Change: Thank you. Your next question comes from Ronald Keung from Goldman Sachs. Please go ahead.

Speaker Change: Yeah, Joe It is Toby Lydia and Soundwaves element too good take rate, Joe Allman, Chennai, Twilla jugal <unk> option.

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Speaker Change: Yeah.

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Speaker Change: Thank you for taking my question management. My question has to do with take rate.

Speaker Change: In your announcement for the September quarter, you indicated that take rate has stabilized I'm wondering if you could talk about the progress of the rollout and adoption of Shenzhen toy.

Speaker Change: And also what this means does it mean that the gap between <unk> growth and take rate is now.

Speaker Change: Disappeared.

Speaker Change: Okay.

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Toby Lydia: Thank you. This is Toby I'll take that question. Indeed, as you can see in the results.

Toby Lydia: From this quarter our take rate is now relatively stable I think there are several factors.

That have created that result, working in tandem.

Toby Lydia: These include progress on monetization, including the 0.6% software service fee that we've now started charging of course, we've only been doing that for one month.

Toby Lydia: As well as the deepening penetration of Sunshine tweet. So these two factors are both positive for take rate, but at the same time. We also have a new business models that are still in the growth stage with relatively low monetization and its going to take time to continue to grow those products and increase the monetization rate. So the results youre seeing there.

Quarter.

Toby Lydia: In terms of a relatively stable take rate is the result of those factors in tandem there's an offset.

It works there in the longer term, we will continue to charge that 0.6% software service fee will of course continue to deepen the penetration and adoption of Shenzhen tree and at the same time, we'll continue to work on growing those are products that still have relatively low monetization. So you can expect to see.

Toby Lydia: That kind of offsetting effect going forward.

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Speaker Change: Looking into the future as regards our take rate.

Speaker Change: I think it's fair to say as compared against the market average.

There is still significant potential headroom for us to increase the take rate, but at the same time, we're obviously going to be looking very closely at the merchants.

Speaker Change: Ensuring the health of merchant operations is critical to us. So we will be taking a balanced approach in making those considerations.

Speaker Change: Next question please.

Thank you. Your next question comes from Thomas Chong of Jefferies.

Speaker Change: Please go ahead.

Hi, Good evening, Thanks management for taking my question. My question is also on <unk> side.

Speaker Change: Can management comment about our investment strategy in coming quarters, and how should we think about.

Speaker Change: The trend for PPG.

Speaker Change: Given that on the one hand.

Speaker Change: Having the service fee change that its way, but I'll be also investment in the U S. S. UBS. So I just wanted to see about these pulled back test needs to TPG.

Speaker Change: And my second question is also on the PTT side I'll tell you more about the synergies.

Racing payments can management share Apollo.

The potential.

Speaker Change: Recent payment in a growing our user base as well as the incremental <unk> that <unk>.

Speaker Change: Ambition.

Speaker Change: Yes. Thank you.

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Speaker Change: This is used without knowing who your board OMA that's a.

Speaker Change: So once you've got quiet well machine that's high sits for you.

Speaker Change: Total silver.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Thank you well for Taobao, and Tmall and present, our strategy is to be investing in.

Speaker Change: Strengthening our abilities, our competence is investing in the user experience and also investing on the merchant side that involves several different kinds of investments investing in developing more extensive more diversified supply.

Investing in developing price competitive supplier and also investing in new products and our promising new new brands.

Speaker Change: In terms of investing in user experience that includes making investments in improving after sale service also improving the logistics experience.

Speaker Change: As well as investing in improving the front end user interface. Additionally, we're also investing in technology.

Speaker Change: Very rapid growth in our AI related products uptake, so investing not only those products, but also in the computing power that's needed to run these AI products.

Speaker Change: So these are long term investments that we're making to enhance user experience and to enhance supplier on the merchant side. So that's that ties in nicely to your second question.

Speaker Change: About.

Interoperability with Wechat pay.

Speaker Change: And the ability that gives us to develop new users I would say we have quite high expectations.

Speaker Change: For the ability that gives us to acquire new users and again, we're investing for the medium to long term in driving that user growth and retention. So this is Sam.

Speaker Change: Large investment direction.

Speaker Change: For us.

So overall I would say the taobao and Tmall is currently very much in the investment stage, we're making investments of course, we're paying a lot of attention to ensuring the efficiency of those investments and we're also.

Speaker Change: Working on increasing CMO as well in order to be able to better make those investments. So to answer. Your original question I think given that you can expect to see EBITA.

Fluctuate over the next few quarters to come because overall, we are in an investment phase.

Speaker Change: Oh boy in Haynesville that they all go into intelligent GSI evaluation to further Giga ticketing Hall was it a women say.

Speaker Change: So I'd say, let's go towards the home and the churn that you won't cool chiller Tenaille, who suddenly on Colombia has agenda that will ensure that the Eaton Goodell woman. The you have to tell you you won't put it turns out you got be jealous yen zada shinzo that he sent Antigua shale you got some towns Sheila told all of you won't go young Hudson's on that they could search on paper. So he is.

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Speaker Change: So he won't call them go lives in that one scene has onto hope she paywall machines at Samsung you got your N V. The Hugoton Hugoton L. Three.

Speaker Change: Can you talk us as Doug has said the Anglican long day.

Speaker Change: In terms of.

Speaker Change: The cooperation that we've engaged in to allow for interoperability with wechat being accepted on Taobao and Tmall.

Speaker Change: We see a very large potential there for user growth.

Speaker Change: Going forward in particular, we expect to see.

Speaker Change: A large noticeable increase in monthly active consumers.

Speaker Change: Six but it will.

Speaker Change: Take time to fully realize this potential and this is again.

Speaker Change: Complementary with <unk>.

Speaker Change: The measures, we're taking to drive user growth that I just.

Speaker Change: Shared with you, but the goal is to get them on the platform and to get them to stay on the platform and over time continue to drive incremental GMP growth.

Speaker Change: Next question please.

Thank you. Your next question comes from Alex Yao of JP Morgan.

Speaker Change: Go ahead.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: Just hold on here.

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Speaker Change: They are going to earn cheap and xiaomi.

Speaker Change: Number one do you get your share.

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Speaker Change: Paging Xiaomi Ann.

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And Josh I mean, I'm angry women.

Speaker Change: Franco from Yan do car.

Speaker Change: You'll continue to hear where does that correlate to the topics in general my quiver.

Speaker Change: Controllable that retrenching G shaping passion, Jonathan Jacob you were sure.

Speaker Change: Chances are you're in.

Speaker Change: So you are gender each year.

Speaker Change: So yes, they are a good juncture.

Speaker Change: He sits at CIT, how youre Shanxi or changing your <expletive> Bureau for by Pie.

Speaker Change: No children Godfather Jake.

Speaker Change: Thanks, Shannon chime yellow machinery of the Shanghai, Jake travelers should come beyond this year.

Speaker Change: Oh, thank you.

Speaker Change: So Eddie spent quite some time sharing with us is thinking around the opportunity and the strategy on the consumer side I'd just like to shift the conversation if I may to be.

Speaker Change: Supply chain side.

Speaker Change: And.

Speaker Change: We note that there's been a relatively sharp decline in the growth rate of live streaming E. Commerce recently I'm wondering.

You know what what that means for your strategy will you be focusing more aggressively on our brands.

Speaker Change: Sure.

Speaker Change: And.

Speaker Change: Universally you know what opportunities do you see what strategies will you be deploying around white label goods.

Goods and agricultural projects.

Speaker Change: Digger.

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Speaker Change: Uh huh.

Speaker Change: So the book is hunker, and daughter user content teaching Pita Big-hearted yoga, no woman and wait until they see some Europeans as the robot is a.

Speaker Change: Well, then how about how about him out be judge Honda on iOS user you can patch your Indian way toward at the Pea Conte you Amanda.

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Speaker Change: And then go get that dialogue.

Speaker Change: Kantar shutdown the bushes Watson telephone you got till hanging it turns out now.

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Speaker Change: We've caught up.

Speaker Change: Okay.

Speaker Change: Thanks, well I think if you're going to talk about live streaming E. Commerce, you really need to drill down and look at different platforms different platforms have different strategies for our live streaming e-commerce different levels of penetration of life.

Speaker Change: Streaming are in fact, if you look at Taobao and Tmall.

Speaker Change: There's been a very strong increase in live streaming on our platforms, especially during the double 11 period.

Speaker Change: So again I think different platforms have different penetration levels of live streaming e-commerce at different stages of development.

Speaker Change: In this regard.

Speaker Change: This year, we've seen a marriage if you like of high quality supply with live streaming E Commerce, you could call it.

Speaker Change: Call It quality street rate.

Speaker Change: You like.

On Taobao and Tmall, we have very strong brands with a flagship brands stores and they've created excellent synergy with our with live streaming to tremendous excellent effect during double 11.

Speaker Change: So you asked about investing.

Speaker Change: In the context of brand merchants I mean of course, everyone invests in order to see growth and this year in general I think you see our growth rates across different e-commerce platforms converging.

Speaker Change: And if anything that really plays to our advantage of taobao and tmall because the brands need to be looking at which platform can truly bring them more sales rather than simply just displaying their products.

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Speaker Change: Tenant gawking harder Chico shelf into the T. S E T D sounds yada yoga yoga can hot yoga you can.

Speaker Change: Thank you as you enter.

Speaker Change: As for your question about White label goods and agricultural produce you know this is a.

A topic that we're also discussing internally.

Speaker Change: Sometimes with different views, but you know each platform has its own characteristics and its a platform you do need to focus on your core group of consumers and their consumption preferences.

Speaker Change: Our needs. So so for us when it comes to our 88 VIP members. These are people, whose preference is for branded goods, but they do also have demand for our white label as.

Speaker Change: As well.

Speaker Change: With the introduction of new payment options and.

Speaker Change: The acquisition of new users.

Speaker Change: Following that that May also result in new demand.

Speaker Change: For white goods. So I do think you need to look at.

Speaker Change: Your users preferences their preferences in different categories and ensure that you can.

Speaker Change: Provide the appropriate supply for those categories to meet those different preferences as a platform it needs to be somewhat customized.

Speaker Change: Okay.

Next question please.

Speaker Change: Thank you. The next question comes from Kenneth.

Speaker Change: Yes.

Go ahead.

Speaker Change: Hey, Oh, here's the quantitative data over to you and what do you when do you see when you you know what kind of uptick are you and so if you guys don't statue now home. It here so of course up on their way to one another double digit that turns out.

Speaker Change: Yeah, She's actually shows that Guy Sean says it well.

Most of your colleagues, particularly won't be the licensing partner Yoshi civil Mannkind out in terms of women that are.

Speaker Change: It doesn't go now whole.

Speaker Change: Yeah, I took a little good yeah catch on at Lehigh volume and you've got the masako, particularly the Yehuda.

Speaker Change: Okay.

Speaker Change: Thanks for taking my question management. My question is on the cloud side.

Speaker Change: We note in the results that our revenue.

Speaker Change: Growth is accelerating and you stated that you expect to achieve.

Speaker Change: Double digit growth.

And profit ability is increasing as well I'm wondering what your view is future profitability of cloud, especially given the recent price decreases and cloud.

Speaker Change: Oh <expletive> and you have to go into here.

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Speaker Change: Yellow means or the other.

Speaker Change: And that will either in there you got a leader Nuno and teachers are filling in Fenton will mail colleague AI into the P&L not whereas the AI the Guangzhou Hospital AI they'll necessarily that it has on me elements Sunday as all them away kind of Constancia. So your woman cant element that woman does tell me more.

Speaker Change: Pushing the API took on some end of the year, especially the challenger you, who kind of woman that had a 24 hour suddenly for Sanmina zoysia can can do internally now what you're the AI the year or was this all AI hardware to address future atrophied anthology technically newer more highest away. So this year the towards annual footage outdoors Archie.

Speaker Change: Shana Douglas and she tore tissue attempt in the yoga yoga danger, I'd say, well I'm always conduct yoga. She was a woman in Congress or the API took on this I mean this is John yeah, well, mostly kind of endorsing a young who you can wait to hear John Dallas Zone or Linda Mushy.

Speaker Change: Fillmore or minimum washiness, a whole pathway fit onto another woman.

Speaker Change: Anyway.

Speaker Change: But how do you impose with element Pinta Islamiyah now post with Ellen Peanuts on Minnesota, Keno Hill Yonder, while lingering that she'd hard time be Bureau show them that you saw.

Speaker Change: Trends for the whole just with your quote in the Tempe, So you'd see that Sunday, Russell and U K Baum and Dr. Tony Malkin, the API <unk>.

Speaker Change: I took into John Judge, what's the Lithia ways. So you go you won't cool.

Speaker Change: Within that whether we own cohorts you there you go.

Speaker Change: You guys all Dunbar doesn't mean, we won't meal Shenzhen is it tempting for tissue cohort coincident that there you'll notice the attention that the U S. L a woman that routine.

Speaker Change: Ended opinion Hassan municipal at Holly. So you don't have the total towards it so in total I think it's happening.

Speaker Change: Thank you.

Speaker Change: Well cloud is a business where.

Speaker Change: Technology advantage matters and scale effect also matters and we have both of those things, which is why as we've been able to grow the volume we've been.

Speaker Change: Improving profitability as well.

Speaker Change: We do take a long term view when it comes to.

Speaker Change: Looking at.

Speaker Change: Developing profitability in this sector.

Speaker Change: Both in terms of our software.

Speaker Change: This again to compute pricing.

Speaker Change: I think you're referring to the recent reduction in token price for Q1.

Speaker Change: P I.

Speaker Change: And that's because we prioritized growing the user base.

Speaker Change: There.

Speaker Change: But by lowering the API token price, we will attract lots of new users to come in you.

Speaker Change: Use the models to deploy their applications on our cloud and that will result in an increase.

Speaker Change: In their use of our compute power storage database and.

Are there other products. So you can really think of the reduction in token price as an investment in user acquisition and user growth because we have a full.

Speaker Change: Technology stack and as long as people come to.

Two the platform they will inevitably end up making use of multiple different cloud products.

Speaker Change: Okay.

Speaker Change: Next question please.

Speaker Change: Thank you. The next question comes from Sheila <unk> from Nomura.

Speaker Change: Please go ahead.

Speaker Change: Hey, Oh, my God, how anytime soon.

Speaker Change: That's all of it.

Speaker Change: Oh, what any O to O N V D. When he had a lot of here.

Speaker Change: John.

Speaker Change: Yes.

Speaker Change: Tortured Shanghai Bell Creek.

Speaker Change: The take rate.

Speaker Change: Or why it turned out.

That cash at that point, he made John they could take rate Hydro Columbia, and Charleston, didactic. One thing you always have an L. E. K restaurant yard that we cannot counter to that union that they go through that her come back now on uncoated mechanical or E mail.

Speaker Change: Hum.

Speaker Change: So we don't guarantee a lot stronger.

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Speaker Change:

Speaker Change: It's in Gabon that they can't find a T M D E.

Speaker Change: Oh, Oh, yeah, well they can't be Tayo, daughter, now a guy at $10 a share.

Speaker Change: Inkjet a D C Atlanta, Georgia.

Speaker Change: So we haven't had said that you still hanging interest look like yeah. So eat healthy that timeshare well I cannot really all ladies Mcdonald here so it sounds cool.

<unk> kind of laid off highway light I think up on Tinder needle electrodes, Dan Orlando this year, which very often.

Speaker Change: I'll say the name more wage J E T.

Speaker Change: Is it.

Speaker Change: Thanks management for taking my questions I have a few questions. My first has to do with the take rate I noted earlier in the call management indicated that you see that there is still significant room to increase take rate, but at the same time youll be keeping our.

Speaker Change: A close eye on merchants.

Speaker Change: The cost to merchants the burden for merchants and operating on the platform.

Speaker Change: Recently, we've seen competitors.

Speaker Change: Reduce their rates reduce the operating burden for merchants on the platform do you think that will prove attractive to merchants and is there any risk of Alibaba, losing merchants as a result of that.

Speaker Change: Secondly regarding the trade in subsidy programs that have been launched I'm wondering how big.

An impact they're having how large a boost or are you seeing in <unk> in the relevant categories like electronics, and consumer electronics and home appliances, and then building on that.

Speaker Change: Would it be fair to say that these kinds of subsidy programs that started in September are just the beginning of more subsidies to come down the road. If so do you how large were those future subsidy programs b.

What categories will be applied to and how big a difference do you think he'll make.

Speaker Change: Yeah.

Speaker Change: How are they saying you know India Nikko as Toby will ashamed way down in the Eagle and Tito when do you don't heard Eddie quickly at ICR.

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Speaker Change: So on page 10, Marshawn Judge Charlotte Chamberlain CMO, John Jardine Yen Fe, That's Tuesday, why a woman viewers watching now Ms. Shang Shannon It sounds clear hallbauer, Jay on the Champaign Boff with giant deal of Shanghai Tembere don't ship will mean is that each year the usual a challenging cutting too quietly youll bottom vania shake out at all.

<unk> had a hoodie chain.

Speaker Change: Thanks. This is Toby I'll take the first question and Eddie will take the second one.

Speaker Change: You know for Taobao and Tmall, we have consistently attached tremendous importance to the rights and interests of our merchants I think not only in terms of take rate, but in terms of our overall.

Speaker Change: Level of merchant friendliness, we're certainly the best of all the different platforms that are out there.

Speaker Change: So certainly yes, there is room to increase take rate, but we need to take a balanced approach balancing platform health balancing.

Speaker Change: The health of merchant operations and balancing that.

Our take rate.

Also you know we've.

Speaker Change: Given a lot of relief in concessions to small and medium sized merchants.

Speaker Change: Including giving them rebates.

Following our rollout of the software usage fee we've canceled.

Speaker Change: Annual fee for Tmall merchants.

We have optimized our policies, including return only policies for.

Speaker Change: For our merchants. So these are all different ways in which we try really hard to safeguard the rights of merchants and the merchants friendly.

Speaker Change: Sue them into city answer of course, you did say you catch it in bulk of Wheeler, which situated all your own could attend town, but yeah, Bill Quigley unchanged E.

Speaker Change: <unk> done them for me in thinking Peru, Nathaniel I still it is a hit onshore totally tieszen young who tell him King hydrocarbon gourmet E N G junk bound to Shanghai, He's uncommon tell them, taking hydrogen Jiangsu Zhejiang pounds with Hamlin Talon Pinecone audition will shadow TJ told that you saw you know a week in Shanghai.

Speaker Change: At the same time as we've done in the past going forward, we will continue to invest in.

Speaker Change: In initiatives, such as membership program benefits as well as in price competitive products and technologies with the aim of enhancing.

Speaker Change: User experience and again all of that investment ultimately will translate into more transactions on the platform to the benefit of our merchants.

Speaker Change: Okay.

Speaker Change: How do you sort of deal with you.

Speaker Change: Finishing up with his whole searches are conducted idea just don't hear that show to you Amanda.

Do you or Linda <expletive> decicco here, the digger tissue hung Edson Zhao Gong Zhu Hao, the Hebei Shandong dialed in kind of the thought to Johan here. It sounds you. The other thing you like I said that social media in Houston.

Speaker Change:

Speaker Change: Oh and you saw the <expletive>, you'll find Nunavut, yes.

Speaker Change: <unk> hits it how to hips in late November kind of didn't make good deed should up what he had since I've been with her yeah. That's all mccandless, yet usages for solar tardy in July dermatology, or and what kind of ICF torso Shaddai, Dan Zhao John Judge you, but wasn't so much as a handoff keytruda really shared some data this year.

Speaker Change: C shaping Pio, who the authority shipping later this year, Egypt with his first day.

Speaker Change: That's in yeah.

Speaker Change: On your other question about the impact of these.

Trade in subsidies over the past few months, yes, definitely the contribution has been large and since these trading subsidy policies were launched back in September we've seen a significant growth acceleration in those categories.

Speaker Change: As for our other.

Speaker Change: Other categories different regions have different policies.

Speaker Change: So apart from the larger appliances. Some may also offer trade in subsidies for small appliances or even for home decoration of home furnishing and other.

Speaker Change: Digital.

Speaker Change: Categories.

Speaker Change: So it does depend on the region and the different policies, but in these categories you are seeing a significant impact.

Speaker Change: Next question please.

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

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: Okay, well you got to you if all went well now go empty Diego adhesives, we all need it how can you what are you going to follow up.

Speaker Change: Anyway women's yoga fantastic, so Nathan failure would undergo tissue with it now sounds like you do kashi or.

So what are some of the <unk> concept.

Speaker Change: CA na rougle warm or something that you do or you didn't take ratio bounce <unk> P. One safety no hot notch services or do you I saw that you do cases halt woman the CMO John John.

Speaker Change: Yes.

Speaker Change: P. G M D them done quite to just take rate with and then to see the stable take rate Hydro one wildland Samuel you've got some down, particularly with Eagle empty now.

Now if you ever want to use it while you sleep.

Speaker Change: <unk> HIFU that firewall conduct woman the capex to do yet.

Speaker Change: Talk to you because I thought a pretty fun gaucher glad you out of here in the center.

Speaker Change: Sounds kind of funny demo countries, yet how would you do it yourself way anyway.

Speaker Change: Okay.

Speaker Change: I will now.

So neither he says Oh, yeah, Oh, yeah.

Speaker Change: I would guide towards roughly ballpark, what my sheets of mature countries.

Speaker Change: Yeah.

Speaker Change: Thanks management for taking my questions I have a couple of questions. The first is a follow up on taobao.

Speaker Change: Tmall, where you started charging the 0.6% software service fee from September onwards, So next quarter that will be making a contribution for the full quarter for the first time. So since you said that take rate is stable now I'm wondering if that would mean that in the next quarter.

Speaker Change: CMI could actually drove faster than G. M. P is growing in other words could take rate, perhaps not just be stable, but actually be growing in the next quarter. Second question has to do with the Capex and I guess a lot of the Capex spending is around cloud, especially around supporting.

I needs.

Speaker Change: How do you think about the ROI of that.

Speaker Change: Capex.

Gary G: Sure Hey, Gary G.

Gary G: This is Toby I'll wish him great anti diesel in Tia Honeywell Eddie quickly at Yahoo, <unk> that any country that Eagle and T. J code and she said, yes, Sheila C. D sound legit that do them in the take rates you positively the English they'll onto Glen Genesis Jake.

Gary G: A chengdu.

Gary G: Ranjan food they can transcend Peterson told the teacher and to show a guy here shortly here when they're tied to the hitching the moisture not.

Gary G: Not sad truth, Allison's MPL quite wuchang letting them go to Shanghai quality high Beta D. C E D to Hudson's amp, each al-qaeda being laid down pallets and down quite a popcorn nobody to negotiate a deal with something good Jay to take rate. So it's a real eager for the shelf be challenges young ensue.

Gary G: One more quick one Magellan keep that Jake Tal tend the tendency that take rate that's unusual mcquay balance one that takeaway teaching none say sung cat one day.

Gary G: That was untapped and dotcom holiday you've got E Union, one gene can see John de Jager, Peter King Hunger games Alpine Kingma seaside city in the outlier Carnival when mcquay chicken keep wanting to take a take rate the 20 that you're facing.

Gary G: Now Ted he tongue young we take articulate how these all into consideration.

Gary G: Italian gets you more.

Gary G: Thanks. This is Toby I'll take the first question and then hand over to Eddie for the second I think I already spoke to this earlier when I flagged the.

Gary G: Two factors that are positive for.

Gary G: Take rate, namely the 0.6% software service fee.

Gary G: And further penetration of the auction channel toy.

Speaker Change: Marketing tool.

In offset to that we have these new models that we're investing in that are growing fast, but with the low monetization.

Speaker Change: So those new models with low monetization, if you like or diluting our offsetting the higher take rate from the first.

Speaker Change: Two factors so.

Speaker Change: <unk> and TMO were looking at this in the round in overall terms.

Speaker Change: And also looking at merchants, ensuring that we're providing them with a good operating environment with a stable business environment.

Speaker Change: And ensuring that overall everything is healthy, but there is that offsetting and counterbalancing effect that we are looking at in the round.

Speaker Change: And then chances from Georgetown teenage alkali charwoman, Wichita, Omaha, Yoshimoto, J gushes household without doing the Hiseq Ashanti Jacob.

Speaker Change: P J D D shoot way, so you're warmer ico concha.

Speaker Change: Yeah.

Speaker Change #100: Oh God you <expletive> capacity.

Speaker Change: Pardon me.

Speaker Change: Wallach with Tomita.

Well good.

Speaker Change #101: Woman the talent the <expletive> debentures without matrices that are there in the Capex, which is the AI. The AI. The qis processes are now Tigger says Gee woman Davies, Shin said to unleash or the <unk>.

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So this year the Bolivar Cook.

Speaker Change #101: Cook with our Suzhou, which as of yet so you eat England, how the months when agenda. So you wouldn't say.

Speaker Change #101: The AI. The total Hanmi has this Sunday allows the beta two gene Nalline, why ATM or Judah, while non kind of has a.

I'll call it out and got a either Steve or centers. The AI the digger farzana on the agenda Kenosha Ananda agenda that useful hernia, Tennessee releases in the thesis in the G block in the us and you that.

Speaker Change #102: You got you could see us with it.

You can see with the Cushing box zones are the telcos are like kind of woman Candlewood Joshi enzyme Washington Times, you know me I am sure. She other TD of who you are where the agenda does your machine and go that go hungry in Angola lessor Kendall.

Speaker Change #102: Hungry and E. On those are two Buda tanker to just show how should fit on trilogy, Thomasville ammonia candela shell over AI and <unk>.

Speaker Change #102: Although EDA schinder or wound down demolition day. So it is C O T. So only the <expletive> Sui land down to the Gulf T&D.

Speaker Change #102: Beyond that the accused was army wont conduct hernia D. Clearly show that the Sally has your phase <unk>, so down to the shipyard that user and so a lot narrower mcquay.

Speaker Change #102: So you can see on the teaser that you Pawan will wait say AI to suddenly Ts was this as Artur teach hundreds of your total.

Speaker Change #102: So its own killer assortment of Utah, and secrets hunted a huge hurdle torture that faith Hello, Glenn.

Speaker Change #102: So I'd say its element a donkey the AI the capex as I told you with TG total de Jager complaining.

Speaker Change #102: Yeah, you're right a lot of the Capex investments that we're making are in cloud, especially around AI intra.

Speaker Change #102: Infrastructure and that's a function of our our knowledge our understanding of the short term demand as well as our judgment of the long term.

Matt: Matt in terms of that short term demand.

Speaker Change #104: There is ongoing explosive growth in demand for AI for the compute power that drives AI for the API services to access.

Speaker Change #104: The models and it's.

Speaker Change #104: Not even possible now to fully in.

Speaker Change #104: And the fact that we meet all of that demand. So that's why we're making aggressive investments for the short term, but in the longer term.

Speaker Change #104: We view.

Speaker Change #104: This opportunity around Gen AI as a historic opportunity, it's the kind of opportunity.

Speaker Change #104: Probably comes along only once every 20 years say in terms of the ability to.

Speaker Change #104: Leapfrog technologically.

<unk>.

Speaker Change #104: That's why we think there is a high level of certainty around that demand going forward for.

Speaker Change #104: Inferencing, especially if you look at opening eyes newest model or one with its C O T chain of thought.

Speaker Change #104: That implies exponential growth in demand for inferencing.

Speaker Change #104: So that explains why we're investing aggressively in AI related infrastructure for the short term and in the long term because we're very optimistic.

That Tibet.

Speaker Change #105: Next question please.

Speaker Change #105: Thank you your next question.

Speaker Change #105: Michelle Cheng with Barclays.

Speaker Change #105: Please go ahead.

Thank you very much for taking my question.

Speaker Change #105: My question there on shareholder return.

Speaker Change #105: I mean, it's great you guys bought back $10 billion in the last six months.

Speaker Change #105: Firstly I was just wondering do you differentiate between a D R and you'll Hong Kong ticker and 90 988, when you buy back shares and my question is.

Speaker Change #105: Is around.

<unk>.

Speaker Change #105: <unk> recently launched.

Speaker Change #105: Some swap.

Speaker Change #105: Programs to.

Speaker Change #105: Land companies to buy back shares.

Speaker Change #106: Now you are in the South bound stock connect I was wondering does that program.

Speaker Change #106: Sort of available to you.

Speaker Change #107: Thank you.

Speaker Change #107: Haga initial with the tier one win Tina Schiel Gwen.

Speaker Change #107: Bacci you form your own dollar.

Speaker Change #108: Couldn't you Mohan bonds like what should the yoga, you're a downhole tool quake on you by Ila Ah ha.

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Speaker Change #110: Somewhere hotdog industrial Goofy CIT Shan Shan.

Speaker Change #111: Yeah that its shadow life, where you're going to see the goofy sounds like Allina should seen Rollouts yoga.

Speaker Change #112: Non sounder too Gung Ho <unk>, Leon challenge that they're going to buy charter from legal.

Toby Lydia: Okay. Thank you for your question. This is Toby I would take on this question.

Toby Lydia: Firstly actually if you look at our distribution of the liquidity of our shares.

Toby Lydia: On the U S lying in Hong Kong.

Toby Lydia: Currently U S lines do you. The majority. So currently the buyback we were executing buyback in on both lines by their recently our execution of the buybacks mainly on the U S line. So that said to answer your first question and the second question. You know we are exploring various financing up to.

Toby Lydia: Netease to fund our buyback.

Toby Lydia: At the one you just mentioned I actually we haven't been actually able to leverage that and of course, you know apparently we can further further explore such opportunity what we can stand currently it's more like a four the Asia buyback.

Toby Lydia: Though we do explore other ways. If you recollect back in May we raised and C. B of like a $5 billion and we use that whole amount in June quarter buying back five 8 billion U S dollars of our shares so going forward, we will continue to explore various ways on our financing.

Toby Lydia: And also you know do the buyback and basically you know at to.

Toby Lydia: Create more value to our shareholders.

Toby Lydia: Oh, It was sure Toby wann equator, who quarter like how you're kind of woman tissue.

Toby Lydia: Sure John Choi Center should make more sense Sangamo Shin young children don't see lights.

Speaker Change #113: That's what we beat on it.

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Speaker Change #114: We all have Showtime may quarter, Ut Austin shock.

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Speaker Change #114: Okay.

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Speaker Change #115: Using the Bayou May unconfirmed Eagle Creek water, she ollie's army upgrades easy tons once he's had a twitching.

Speaker Change #116: Okay, and just to add on one point actually.

Speaker Change #116: You know, we do have very rich RMB cash.

Speaker Change #116: Cash onshore so if the lending is RMB actually we are seeing why if you like we are actually not that.

Speaker Change #116: And you know we have abandoned tassie NOI onshore so in to US I think probably small.

Speaker Change #116: David some of the lending see a slight lag in CNS or U S. Dollar.

Speaker Change #116: With a boot from Ya Chu tissue shorts issue on our gooseneck.

Speaker Change #116: She may or you mean, Pete to Shenzen has should be jaw shoulder sweep.

Speaker Change #116: <unk>, you mean beat the tickets as in Ohio, when we come out to tie your pneumonia.

Speaker Change #116: Remember that distinction.

Speaker Change #116: <unk> Leandro mean people familiar with conoco with Ctrip on car.

Speaker Change #116: Yes.

Speaker Change #117: Due to the time limit we will now take the last question.

Speaker Change #118: Thank you your last question.

Okay.

Speaker Change #118: Please go ahead.

Speaker Change #118: Great. Thanks for taking my question.

Uh huh.

Speaker Change #118: And I.

Speaker Change #118: I guess two follow up questions on <unk>.

Speaker Change #118: Our personal cloud and maybe double click on the demand for AI adoption is the AI revenue, mostly coming from model training or inference thing because in the U S. And also in addition in the U S people are talking about AI agent and automation of workflow and how do you see that developing in China.

Speaker Change #118: Overtime.

Speaker Change #119: There were some who shoots out he wouldn't AIG from you that you wear sensor.

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Speaker Change #119: Morphing the Chilean.

Speaker Change #120: Hi, Shuang Twilley, Oh Gee events in our Honduran total return.

Speaker Change #120: Daily Rheology go create tissue tweet on Shanghai equals a futile to Hugo.

Speaker Change #120: Okay.

Speaker Change #120: Yes.

Or what else.

Speaker Change #120: They're going to Uh huh.

Speaker Change #120: Well go to T C border citizens, the AI and a woman to you in the future like consciousness.

Speaker Change #120: Since you're still more in the Chilean to you Don.

Speaker Change #120: Oh, the other woman conduct in the treated as she showed a J.

Speaker Change #120: So you're suddenly the huge I would say, it's the shoe that so here the thunder.

Speaker Change #120: Yeah, so on mechanical chingola Saturday, so away lights, a washing machine is I mean, that's eager to hear conciliate. So agenda, so that arcidiacono Yoshida today, you'll see that and then gets used without machines out.

Speaker Change #121: Oh no.

Speaker Change #121: Why you go with me you cannot you go that she names under yoga choose the doses that go hunker chooses to use or source yeah.

Speaker Change #121: So <expletive>, sending it to the Intesa hung yeah, there's sort of a sense of how the genome and yet you did though that youll goods as rates have hung in ASEAN motion junior in the future. So it's only it is the woman the condo say motion shingly as usual, but Swedish Ugo Doyle.

Peter Hutton, though does the whaler the sandoz it goes to send you the szeto patent B cell. That's all machine washing the sentence you the AI the tedious utilities antiquated. Thank you Hugo can adopt PD data when you conduct units in them.

Right well if you look at the demand that's being created for.

Speaker Change #121: For cloud from churn AI initially.

Speaker Change #121: Initially a lot of that demand is for the training of models, but then over time.

Speaker Change #121: More and more computing power is needed to drive the inferencing.

Speaker Change #121: And you know looking into the future, we could expect to see there or just being.

Speaker Change #122: A smaller number of companies that are actually.

Speaker Change #122: During model training, especially for large traditional models.

Speaker Change #122: You can also expect to see a lot of training being done for different verticals like for example, autonomous vehicles, but also other specialized industries. So at.

Speaker Change #122: At the present time, there is a very.

Speaker Change #122: <unk> growth in demand.

To support both model training and inferencing, but in the longer term in the future. We think that our inferencing will account for the larger share of growth in demand.

Speaker Change #122: Okay.

Speaker Change #122: And you can sort of <expletive> almost unintelligible for some good.

Speaker Change #122: So AI at Echo hungry and he launches this is des.

Speaker Change #122: Little Nicole Zaragoza, Pathan, Dutch yet whether that baton neuro agenda unknown until you go to the Italian fashion, the AI aging of how those all go to low AI lets us all under control also all core total AI, let's answer with high you can't you on Shada suddenly whether this emotion and what it is this your thumb yet today.

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Speaker Change #122: So your womens zone killer column cannot eager to hear his all Muslim make what are the southern quotes and she says Gee, it's a lesser children's anteater Valeant E G in Dallas or Italian Dagga law, you'll see if he'll tour that the Higgins sideshow, though that Youll see feel that's one go figure Silliman candidly your guitar that she said do you feel that.

Speaker Change #122: Sango, the digger cheese, which is a just a cool AI washing the Italian the Eagle.

Speaker Change #122: Yeah.

And as you mentioned, our AI is being applied in all kinds of different industries different companies developing their own AI agents.

Speaker Change #122: That is indeed about automating workflows, including retraining models.

Speaker Change #122: And I think these things are happening in a very positive way across a lot of different industries and we see a lot of examples of this all around us including internally within Alibaba. So I think these technologies are in a similar process of development here as well as in the United States.

Speaker Change #122: And a lot of that.

Speaker Change #122: Compute that used to be done on Cpus is being re architected to run on a GPU. So it's a major trend the foundation of all of this really is the <unk>.

The GPU, which is driving the massive adoption of AI models.

Speaker Change #123: And as you mentioned I was being applied in different industries did.

Speaker Change #123: Developing there are different AI agents I think this is a major trend.

Okay.

Speaker Change #124: Thank you everyone for joining we'll see you next quarter.

Speaker Change #123: Yeah.

Speaker Change #125: Thank you that concludes the presentation for today you may now disconnect your lines.