Q1 2026 Alibaba Group Holding Ltd Earnings Call

Call participants are on listen only mode. After management's prepared remarks, there will be a Q&A session.

I would now like to turn the call over until either you head of Investor Relations of Alibaba Group. Please go ahead.

Yeah.

Good day, everyone welcome to Alibaba group's June call here to sell it in 25 earnings conference call with US today, I chose high Chairman and Chief Executive Officer, Toby Shea Chief Financial Officer, Joe Payne, Chief Executive Officer of Alibaba ecommerce business group. This call is.

Speaker #2: Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's June quarter 2025 results conference call. At this time, all participants are in listen-only mode.

Lydia Lu: Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's June quarter 2025 results conference call. At this time, all participants are on listen-only mode. After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Lydia Lu, Head of Investor Relations of Alibaba Group. Please go ahead.

Speaker #2: After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Lydia Liu, Head of Investor Relations of Alibaba Group.

Also being webcast from the IR section of our coffee website, a replay of the call will be available on our website. Later today now I will quickly cover the safe Harbor today's discussion may contain forward looking statements, particularly statements about our business and financial results that are subject to risks.

Speaker #2: Please go ahead.

Speaker #3: Good day, everyone. Welcome to Alibaba Group's June quarter 2025 earnings conference call. With us today are Ju Tai, Chairman; Eddie Wu, Chief Executive Officer; Tobi Xu, Chief Financial Officer; and Jiang Fan, Chief Executive Officer of Alibaba E-commerce Business Group.

Rob Lin: Good day, everyone. Welcome to Alibaba Group's June Quarter 2025 earnings conference call. With us today are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer; Jiang Fan, Chief Executive Officer of Alibaba E-Commerce Business Group. This call is also being webcast from the IR section of our corporate website. A replay of the call will be available on our website later today. I will quickly cover the safe harbor. Today's discussions may contain forward-looking statements, particularly statements about our business and financial results that are subject to risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures that we use on this call are expressed on a non-GAAP basis.

And uncertainties, which could cause actual results to differ materially from those contained in the forward looking statements.

Please refer to the stay safe Harbor statements that appear in our press release and Investor presentation provided today. Please note that certain financial measures that we use on this call are expressed on a non-GAAP basis, our GAAP results and Recalculations of GAAP to non-GAAP measures can be found in our earnings press release.

Speaker #3: This call is also being webcast from the IR section of our corporate website. It will play off the call and will be available on our website later today.

Speaker #3: Now, I will quickly cover the stakeholders. Today's discussions may contain forward-looking statements, particularly statements about our business and the financial results that are subject to risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements.

And now I would turn the call over to Eddie.

We're now going towards them.

Okay.

Hello, everybody and welcome to this quarter's earnings call.

Speaker #3: Please refer to the stakeholder statements that appear in our press release and investor presentation provided today. Please note that certain financial measures that we use on this call are expressed on a nine-gap basis.

This quarter, we delivered solid growth.

Excluding revenue from <unk> and in time, our total revenue on a like for like basis grew 10% year over year.

Revenue growth of our core businesses remained strong customer management revenue from our China E Commerce business rose, 10% year over year Cloud intelligence group revenue growth accelerated to 26% year over year with AI related product revenue, maintaining triple digit growth for the eighth consecutive quarter revenue from <unk> grew by 19% year over year.

Speaker #3: Our gap results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. And now I will turn the call over to Eddie.

Rob Lin: Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. Now I will turn the call over to Eddie.

Speaker #4: ????????????Hello, everybody, and welcome to this quarter's earnings call. This quarter, we delivered solid growth. Excluding revenue from SunArt and Intime, our total revenue on a like-for-like basis grew 10% year-over-year.

Jiang Fan: 晚上好, 各位投资人朋友。 Hello, everybody, and welcome to this quarter's earnings call. This quarter, we delivered solid growth. Excluding revenue from Sun Art and Intime, our total revenue on a like-for-like basis grew 10% year-over-year. Revenue growth of our core businesses remains strong. Customer management revenue from our China e-commerce business rose 10% year-over-year. Alibaba Cloud Intelligence Group revenue growth accelerated to 26% year-over-year, with AI-related product revenue maintaining triple-digit growth for the eighth consecutive quarter. Revenue from AI DC grew by 19% year-over-year. In AI plus cloud, the accelerated development of AI applications and increasing AI product adoption by customers drove a 26% year-over-year revenue increase from external customers. During the quarter, AI-related revenue accounted for over 20% of revenue from external customers as AI demand continued to grow rapidly. We're also seeing AI applications driving great growth momentum of traditional products, including compute and storage.

And AI plus cloud the accelerated development of AI applications at increasingly high product adoption by customers drove a 26% year over year revenue increase from external customers during.

Speaker #4: Revenue growth of our core businesses remained strong. Customer management revenue from our China e-commerce business rose 10% year-over-year. Cloud Intelligence Group revenue growth accelerated to 26% year-over-year, with AI-related product revenue maintaining triple-digit growth for the eighth consecutive quarter. Revenue from AI/DC grew by 19% year-over-year.

During the quarter <unk> related revenue accounted for over 20% of revenue from external customers.

Demand continued to grow rapidly.

We're also seeing AI applications, driving great growth momentum of traditional products, including compute and storage.

SAP and Alibaba entered a strategic partnership focused on cloud and AI.

Speaker #4: In AI and Cloud, the accelerated development of AI applications and the increasing adoption of AI products by customers drove a 26% year-over-year revenue increase from external customers. During the quarter, AI-related revenue accounted for over 20% of revenue from external customers.

Sap's global cloud computing partner.

Alibaba cloud will support SAP customers to run and manage their core software systems on Alibaba platform leveraging our Q1 models SAP will also provide AI transformation services for its enterprise customers.

Speaker #4: As AI demand continued to grow rapidly, we're also seeing AI applications driving significant growth momentum in traditional products, including compute and storage. SAP and Alibaba entered a strategic partnership focused on cloud and AI.

This partnership signifies the recognition of our cloud infrastructure and AI capabilities by the global leading enterprises in the SAP ecosystem. We've continued to advance the capabilities of our AI Foundation model. Since July Alibaba has released upgraded Q3, including a non thinking model reasoning model <unk> model.

Jiang Fan: SAP and Alibaba entered a strategic partnership focused on cloud and AI. As SAP's global cloud computing partner, Alibaba Cloud will support SAP customers to run and manage their core software systems on Alibaba's platform. Leveraging our Qwen models, SAP will also provide AI transformation services for its enterprise customers. This partnership signifies the recognition of our cloud infrastructure and AI capabilities by the global leading enterprises in the SAP ecosystem. We've continued to advance the capabilities of our AI foundation model. Since July, Alibaba has released upgraded Qwen-3, including a non-thinking model, reasoning model, and AI coding model, which are recognized as global top performers in their respective categories. Notably, our Qwen-3 coder model has rapidly increased Qwen's user adoption in overseas markets. We also open-sourced several models, such as the video generation model Qwen 2.2 and the text-to-image model Qwen Image.

Speaker #4: As SAP's global cloud computing partner, Alibaba Cloud will support SAP customers in running and managing their core software systems on Alibaba's platform. Leveraging our Q1 models, SAP will also provide AI transformation services for its enterprise customers.

Which are recognized as global top performers in their respective categories.

Notably our <unk> model has rapidly increased Q1's Youtube user adoption in overseas markets.

Speaker #4: This partnership signifies the recognition of our cloud infrastructure and AI capabilities by the global leading enterprises in the SAP ecosystem. We've continued to advance the capabilities of our AI foundation models since July. Alibaba has released upgraded Q3, including a non-syncing model, reasoning model, and AI coding model, which are recognized as global top performers in their respective categories.

Also open sourced several models such as the video generation model, one to two and the text to image model Q and image by continuously upgrading our open source models, we're empowering our customers to develop their own AI applications.

Alibaba is one <unk> our native applications continue to advance <unk> has undertaken a comprehensive AI transformation with the launch of <unk> 2025, the world's first AI native location based applications. The upgrade brings spatial intelligence into dynamic real world scenarios, and <unk> is well positioned to become a new gateway for future.

Speaker #4: Notably, our Q3 coder model has rapidly increased Q1's user adoption in overseas markets. We also open-sourced several models, such as the video generation model, WAN 2.2, and the text-to-image model, QN Image.

<unk> services thing talk has also completed its latest upgrades of creating the world's first agent driven work feeds to explore next generation workplace application paradigms.

Speaker #4: By continuously upgrading our open-source models, we're empowering our customers to develop their own AI applications. Meanwhile, Alibaba's own AI-native applications continue to advance. AMAP has undertaken a comprehensive AI transformation with the launch of AMAP 2025.

Jiang Fan: By continuously upgrading our open-source models, we're empowering our customers to develop their own AI applications. Meanwhile, Alibaba's own AI-native applications continue to advance. Amap has undertaken a comprehensive AI transformation with the launch of Amap 2025, the world's first AI-native location-based application. The upgrade brings spatial intelligence into dynamic real-world scenarios, and Amap is well-positioned to become a new gateway for future lifestyle services. DingTalk has also completed its latest AI upgrade, creating the world's first agent-driven work feeds to explore next-generation workplace application paradigms. On our Taobao platform, we see immense AI-powered opportunities emerging, such as AI search and AI advertising platform. In consumption, we undertook a strategic combination of Taobao and Tmall Group, Ele.me, and Freshippo into Alibaba China E-Commerce Group. This organizational change creates a comprehensive consumption platform and upgrades our consumer experience.

On our taobao platform with <unk> AI powered opportunities emerging such as AI search.

Advertising platform.

And consumption.

We undertook a strategic combination of taobao and Tmall group Wilma in fleet into Alibaba, China E Commerce group.

Speaker #4: The world's first AI-native location-based application. The upgrade brings spatial intelligence into dynamic real-world scenarios, and AMAP is well-positioned to become a new gateway for future lifestyle services.

This organizational change creates a comprehensive consumption platform and upgrades our consumer experience, we have consolidated supply chain user basis membership benefits across our businesses and launched a tiered loyalty program that connects <unk> and AML.

Speaker #4: ThinkTalk has also completed its latest AI upgrade, creating the world's first agent-driven work feeds to explore next-generation workplace application paradigms. On our Taobao platform, we see immense AI-powered opportunities emerging, such as AI search and the AI advertising platform.

The newly integrated benefits enhance our members' experience across a full spectrum of consumption scenarios.

Speaker #4: In consumption, we undertook a strategic combination of Taobao and Tmall Group, Illama, and Flicky into the Alibaba China e-commerce group. This organizational change creates a comprehensive consumption platform and upgrades our consumer experience.

<unk> made our investments in quick commerce have rapidly surpassed key milestones and created synergies in August <unk>.

Monthly active consumers on our quick commerce business are approaching $300 million contributing to a 25% increase in monthly active consumers on the taobao app.

Speaker #4: We have consolidated supply chains, user bases, and membership benefits across our businesses and launched a tiered loyalty program that connects Illama, Flicky, and AMAP.

Jiang Fan: We have consolidated supply chains, user bases, and membership benefits across our businesses and launched a tiered loyalty program that connects Ele.me, Freshippo, and Amap. The newly integrated benefits enhance our members' experience across a full spectrum of consumption scenarios. Since May, our investments in QuickCommerce have rapidly surpassed key milestones and created synergies. In August, monthly active consumers on our QuickCommerce business are approaching 300 million, contributing to a 25% increase in monthly active consumers on the Taobao app. Daily order volume of our China E-Commerce Group continued to achieve new records. Looking ahead, Alibaba Group has two historic opportunities: to build a technology platform centered on AI plus cloud and to create a comprehensive shopping and daily life services consumption platform. We will invest at scale to capture the opportunities. This also marks a new entrepreneurial chapter for the company after 26 years.

Daily order volume of our China E. Commerce group continued to achieve New records. Looking ahead Alibaba group has two historic opportunities to build the technology platform centered on AI, plus cloud and to create a comprehensive shopping and daily life services consumption platform, we will invest upscale to capture the opportunities. This also marks a new entrepreneurial.

Speaker #4: The newly integrated benefits enhance our members' experience across a full spectrum of consumption scenarios. Since May, our investments in quick commerce have rapidly surpassed key milestones and created synergies.

Speaker #4: In August, monthly active consumers on our quick commerce business are approaching 300 million, contributing to a 25% increase in monthly active consumers on the Taobao app.

Chapter for the company after 26 years in line with this in February we announced an investment of 380 billion RMB over the next three years to build our cloud and AI infrastructure.

Speaker #4: Daily order volume of our China e-commerce group continued to achieve new records. Looking ahead, Alibaba Group has two historic opportunities: to build a technology platform centered on AI + Cloud and to create a comprehensive shopping and daily life services consumption platform.

In July we announced plans to invest 50 billion RMB and consumption.

The transformative impact of AI on all industries combined with a deep integration of AI and cloud will present, the most significant opportunity in the technology sector over the next decade for Alibaba, we have the world's fourth largest in Asia, leading cloud infrastructure, along with full stock technology capability spanning AI computing power AI cloud platforms AI models.

Speaker #4: We will invest at scale to capture the opportunities. This also marks a new entrepreneurial chapter for the company after 26 years. In line with this, in February, we announced an investment of $380 billion RMB over the next three years to build our cloud and AI infrastructure.

Jiang Fan: In line with this, in February, we announced an investment of ¥380 billion over the next three years to build our cloud and AI infrastructure. In July, we announced plans to invest ¥50 billion in consumption. The transformative impact of AI on all industries, combined with the deep integration of AI and cloud, will present the most significant opportunity in the technology sector over the next decade. For Alibaba, we have the world's fourth largest and Asia's leading cloud infrastructure, along with full-stack technology capabilities spanning AI computing power, AI cloud platforms, AI models, an open-source ecosystem, and AI applications. This quarter, our CapEx investment in AI and cloud infrastructure reached ¥38.6 billion. Over the past four quarters, we have cumulatively invested over ¥100 billion in AI infrastructure and AI product R&D. Our investments in AI have begun to yield tangible results.

And open source ecosystem and AI applications this quarter, our capex investment in AI and cloud infrastructure reached $38 6 billion RMB over the past four quarters, we have cumulatively invested over 100 billion RMB NII infrastructure and AI product R&D, our investments in AI have begun to yield tangible results. This is evidenced by Alibaba.

Speaker #4: In July, we announced plans to invest ¥50 billion in consumption. The transformative impact of AI on all industries, combined with a deep integration of AI and cloud, will present the most significant opportunity in the technology sector over the next decade.

Speaker #4: For Alibaba, we have the world’s fourth-largest and Asia’s leading cloud infrastructure, along with full-stack technology capabilities spanning AI computing power, AI cloud platforms, AI models, an open-source ecosystem, and AI applications.

I believe our clouds return to rapid growth driven by <unk>, and our AI enhanced experiences across consumer and enterprise facing scenarios. So we're seeing an increasingly clear path for AI to drive Alibaba is robust growth.

We're also well positioned in China, the world's largest e-commerce market in the most promising service consumption market.

Speaker #4: This quarter, our CapEx investment in AI and cloud infrastructure reached ¥38.6 billion over the past four quarters. We have cumulatively invested over ¥100 billion in AI infrastructure and AI product R&D.

China is a well developed e-commerce infrastructure high population density and strong demand for our service consumption, providing a solid foundation for the integration of our quick commerce business and the Taobao App. We believe this convergence will fulfill consumer needs for one stock consumption experience and meet merchants' desire to serve consumers across multiple scenarios. It will end.

Speaker #4: Our investments in AI have begun to yield tangible results. This is evidenced by Alibaba Cloud's return to rapid growth, driven by AI demand, and our AI-enhanced experiences across consumer and enterprise-facing scenarios.

Jiang Fan: This is evidenced by Alibaba Cloud's return to rapid growth, driven by AI demand and our AI-enhanced experiences across consumer and enterprise-facing scenarios. We're seeing an increasingly clear path for AI to drive Alibaba Group's robust growth. We're also well-positioned in China, the world's largest e-commerce market and the most promising service consumption market. China has a well-developed e-commerce infrastructure, high population density, and strong demand for service consumption, providing a solid foundation for the integration of our QuickCommerce business and the Taobao app. We believe this convergence will fulfill consumer needs for a one-stop consumption experience and meet merchants' desire to serve consumers across multiple scenarios. It will enhance commerce efficiency and pave the way for an all-in-one AI assistant for consumption. Alibaba Group's strategic positioning in QuickCommerce has ambitions beyond competing in a single category.

Speaker #4: So, we're seeing an increasingly clear path for AI to drive Alibaba's robust growth. We're also well-positioned in China, the world's largest e-commerce market, and the most promising service consumption market.

<unk> commerce efficiency and pave the way for an all in one AI assistant for consumption.

Alibaba strategic positioning and quick commerce has ambitions beyond competing in a single category, we aimed to meet the one stop consumption needs of our 1 billion consumers and shape business models of a comprehensive consumption platform in the AI era and consumption. Our long term goal is to create a comprehensive consumption platform.

Speaker #4: China has a well-developed e-commerce infrastructure, high population density, and strong demand for service consumption, providing a solid foundation for the integration of our quick commerce business and the Taobao app.

Speaker #4: We believe this convergence will fulfill consumer needs for a one-stop consumption experience and meet merchants' desire to serve consumers across multiple scenarios. It will enhance commerce efficiency and pave the way for an all-in-one AI assistant for consumption.

Catering to our 1 billion consumers full spectrum of shopping in daily life needs. We aim to offer the best experience to the largest consumer base with the highest purchase frequency ultimately leading in the RMB 30 trillion addressable market over the next three years Alibaba will embark on a new journey with an entrepreneurial mindset to drive robust business growth through sustained investments centered on.

Speaker #4: Alibaba's strategic positioning in quick commerce has ambitions beyond competing in a single category. We aim to meet the one-stop consumption needs of our 1 billion consumers and shape business models of a comprehensive consumption platform in the AI era.

Jiang Fan: We aim to meet the one-stop consumption needs of our 1 billion consumers and shape business models of a comprehensive consumption platform in the AI era. In consumption, our long-term goal is to create a comprehensive consumption platform catering to our 1 billion consumers' full spectrum of shopping and daily life needs. We aim to offer the best experience to the largest consumer base with the highest purchase frequency, ultimately leading in an RMB 30 trillion addressable market. Over the next three years, Alibaba Group will embark on a new journey with an entrepreneurial mindset to drive robust business growth through sustained investments centered on the strategic areas of consumption and AI plus cloud. We're confident that these investments in the core business will sharpen our competitive edge and fuel long-term growth. Thank you.

The strategic areas of consumption and AI plus cloud, we're confident that these investments in the core business will sharpen our competitive edge and fuel long term growth. Thank you.

Speaker #4: In consumption, our long-term goal is to create a comprehensive consumption platform catering to our 1 billion consumers' full spectrum of shopping and daily life needs.

Yeah.

Thank you Eddie.

As Eddie said, we are in backing on a new chapter of end to Bruno ship by investing in two strategic pillars of consumption in the AI plus cloud.

Speaker #4: We aim to offer the best experience to the largest consumer base with the highest purchase frequency, ultimately leading in an RMB $30 trillion addressable market.

Speaker #4: Over the next three years, Alibaba will embark on a new journey with an entrepreneurial mindset to drive robust business growth through sustained investments, centered on the strategic areas of consumption and AI + Cloud.

These represent the two biggest long term opportunities we are systematically proceeding.

To reflect this sharpened focus we have also adjusted our financial reporting accordingly.

Speaker #4: We're confident that these investments in the core business will sharpen our competitive edge and fuel long-term growth. Thank you.

Starting from this quarter, we understood and it took a strategic combination of Taobao and Tmall group.

Speaker #5: Thank you, Eddie. As Eddie said, we are embarking on a new chapter of entrepreneurship by investing in two strategic pillars of consumption in the AI + Cloud.

Toby Xu: Thank you, Eddie. As Eddie said, we are embarking on a new chapter of entrepreneurship by investing in two strategic pillars of consumption in the AI plus cloud. These represent the two biggest long-term opportunities we are systematically pursuing. To reflect this sharpened focus, we have also adjusted our financial reporting accordingly. Starting from this quarter, we undertook a strategic combination of Taobao and Tmall Group, Ele.me, and Freshippo into Alibaba China E-Commerce Group, transforming our value proposition into a comprehensive consumption platform. This is not simply an organizational change; it's a major strategic investment aimed at redefining the consumer experience and unlocking long-term value across our ecosystem. This quarter marked meaningful progress on this front as we deepen investment in QuickCommerce, an increasingly essential use case for capturing new demand and shaping future consumer experience.

And <unk> into Alibaba in China E Commerce group.

Since forming our value proposition into a comprehensive consumption platform.

Speaker #5: These represent the two biggest long-term opportunities we are systematically pursuing. To reflect this sharpened focus, we have also adjusted our financial reporting accordingly. Starting from this quarter, we undertook a strategic combination of Taobao and Tmall Group, Illama, and Flicky into the Alibaba China e-commerce group.

This is not simply an organizational change it's a major strategic investment aimed at redefining the consumer experience and unlock long term value across our ecosystem.

This quarter marked a meaningful progress on this front as we deepen investment in quick commerce.

And increasingly essential use case for capturing new demand and shaping future consumer experience.

Speaker #5: Transforming our value proposition into a comprehensive consumption platform. This is not simply an organizational change; it's a major strategic investment aimed at redefining the consumer experience and unlocking long-term value across our ecosystem.

Our quick commerce business achieved key milestones, while contributing to the 25% year over year growth in the Taobao <unk> monthly active consumers in the first three weeks of August.

Speaker #5: This quarter marked meaningful progress on this front, as we deepened investment in quick commerce—an increasingly essential use case for capturing new demand and shaping future consumer experience.

In tandem we are building the AI plus cloud infrastructure to support the next wave of technological transformation.

Positioning Alibaba as a key enabler of enterprise AI adoption across industries.

Speaker #5: Our quick commerce business achieved key milestones while contributing to the 25% year-over-year growth in the Taobao APP monthly active consumers in the first three weeks of August.

Toby Xu: Our QuickCommerce business achieved key milestones while contributing to the 25% year-over-year growth in the Taobao app monthly active consumers in the first three weeks of August. In tandem, we are building the AI plus cloud infrastructure to support the next wave of technological transformation, positioning Alibaba Group as a key enabler of enterprise AI adoption across industries. Our cloud business delivered accelerated growth as segment revenue and revenue from external customers both grew 26%, driven by surging AI demand and increased customer adoption of public cloud services to support AI workloads. At the same time, we remain focused on improving operating efficiency and profitability. In the quarter, Alibaba Cloud Intelligence Group delivered solid progress, approaching break-even while sustaining strong growth momentum. Now, let's look at the financial results on a consolidated basis. Total revenue was RMB 247.7 billion.

Our cloud business delivered a celebrated growth as segment revenue and revenue from external customers. Both grew 26% driven by surging AI demand and increased customer adoption of public cloud services to support AI workloads.

Speaker #5: In tandem, we are building the AI + Cloud infrastructure to support the next wave of technological transformation, positioning Alibaba as a key enabler of enterprise AI adoption across industries.

At the same time, we remain focused on improving operating efficiency and profitability.

In the quarter Aib's delivered solid progress approaching breakeven, while sustaining strong growth momentum.

Speaker #5: Our cloud business delivered accelerated growth, with segment revenue and revenue from external customers both growing 26%. This growth was driven by surging AI demand and increased customer adoption of public cloud services to support AI workloads.

Now, let's look at the financial results on a consolidated basis.

Total revenue was RMB 247, 7 billion, excluding revenue from <unk> and in time revenue on a like for like basis would have grown by 10% year over year.

Speaker #5: At the same time, we remain focused on improving operating efficiency and profitability. In the quarter, AI/DC delivered solid progress approaching break-even while sustaining strong growth momentum.

Adjusted EBIDTA decreased 14%.

Primarily due to our strategic focus on scaling quick commerce to capture new consumption patterns and drive future monetization opportunities.

Speaker #5: Now, let's look at the financial results on a consolidated basis. Total revenue was RMB 247.7 billion. Excluding revenue from SunArt and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year.

Clearly offset by margin improvements across several businesses, including <unk> and other units that made continued progress in operating efficiency.

Toby Xu: Excluding revenue from Sun Art and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year. The adjusted EBITDA decreased 14%, primarily due to our strategic focus on scaling QuickCommerce to capture new consumption patterns and drive future monetization opportunities, partly offset by margin improvements across several businesses, including Alibaba Cloud Intelligence Group and other units that made continued progress in operating efficiency. Our GAAP net income increased 76%, primarily due to the mark-to-market changes from our equity investments and the gain arising from the disposal of local consumer service business of Chengduo. Operating cash flow was RMB 20.7 billion. Free cash flow was an outflow of RMB 18.8 billion. This was mainly attributed to our accelerated pace on expanding AI plus cloud infrastructure as CapEx ramped up to approximately RMB 39 billion and the investment in Taobao Instant Commerce.

Our GAAP net income increased 76%, primarily due to the mark to market changes from our equity investments and the gain arising from the disposal of local consumer service business of 10 deal.

Speaker #5: The adjusted EBITDA decreased 14%, primarily due to our strategic focus on scaling quick commerce to capture new consumption patterns and drive future monetization opportunities.

Operating cash flow was RMB 27 billion free cash flow was an outflow of <unk> 18, 8 billion. This was mainly attributed to our accelerated pace on expanding AI plus power infrastructure as capex ramp it up to approximate.

Speaker #5: Partly offset by margin improvements across several businesses, including AI/DC and other units that made continued progress in operating efficiency. Our gap net income increased 76%, primarily due to the mark-to-market changes from our equity investments and the gain arising from the disposal of the local consumer service business in Chengdu.

Italy, RMB 39 billion and the investment in Taobao instant commerce.

Backed by nearly U S dollar $50 billion in net cash.

Speaker #5: Operating cash flow was RMB 20.7 billion; free cash flow was an outflow of RMB 18.8 billion. This was mainly attributed to our accelerated pace in expanding AI + Cloud infrastructure, as CapEx ramped up to approximately RMB 39 billion.

Our healthy and low leveraged balance sheet and our strong access to capital markets, we have ample flexibility to support long term strategic investments, while maintaining financial resilience.

This quarter, we bought back approximately 7 million ABS is for a total of U S dollar $815 million and our share repurchase program.

Speaker #5: And the investment in Taobao Instant Commerce. Backed by nearly $50 billion in net cash, a healthy and low-leveraged balance sheet, and our strong access to capital markets, we have ample flexibility to support long-term strategic investments while maintaining financial resilience.

Toby Xu: Backed by nearly $50 billion in net cash, a healthy and low-leveraged balance sheet, and our strong access to capital markets, we have ample flexibility to support long-term strategic investments while maintaining financial resilience. This quarter, we bought back approximately 7 million ADS for a total of $815 million in our share repurchase program. We remain committed to shareholders' return through a mix of share buybacks, dividends, and investment for growth, and we will continue to adjust the pace and form of returns based on market conditions and strategic priorities. Now, let's look at the segment results, starting with Alibaba China E-Commerce Group. Revenue from Alibaba China E-Commerce Group was RMB 140.1 billion, an increase of 10%. Customer management revenue of our e-commerce business increased by 10%, primarily driven by the improvement of take rate.

We remain committed to shareholder return through a mix of share buybacks dividends and investment for growth and we will continue to adjust to the pace and form of returns based on market conditions and strategic priorities.

Speaker #5: This quarter, we brought back approximately $7 million ADSs for a total of $815 million in our share repurchase program. We remain committed to shareholders' returns through a mix of share buybacks, dividends, and investment for growth.

Now, let's look at our segment results, starting with Alibaba in China E Commerce group.

Revenue from Alibaba, China E. Commerce group was RMB 141 billion, an increase of 10%.

Custom manual revenue of our e-commerce business increased by 10%, primarily driven by the improvement of tapering.

Speaker #5: And we will continue to adjust the pace and form of returns based on market conditions and strategic priorities. Now, let's look at the segment results, starting with the Alibaba China e-commerce group.

We had a successful June 18th shopping festival, which delivered strong consumer growth on the Taobao ABP.

As we implemented the user friendly promotion Mccann isms and increase the support for merchants that provide high quality products and customer services.

Speaker #5: Revenue from Alibaba's China e-commerce group was RMB 140.1 billion, an increase of 10%. Customer management revenue from our e-commerce business also increased by 10%, primarily driven by the improvement of the take rate.

The number of 80, a VIP members our high spending consumers group continued to increase by double digits year over year, surpassing $53 million.

Speaker #5: We had a successful June 18th shopping festival, which delivered strong consumer growth on the Taobao app. As we incremented the user-friendly promotion mechanisms and increased the support for merchants that provide high-quality products and customer services.

Toby Xu: We had a successful June 18th shopping festival, which delivered strong consumer growth on the Taobao app. As we implemented user-friendly promotion mechanisms and increased the support for merchants that provide high-quality products and customer services, the number of 88VIP members, our highest spending consumers group, continued to increase by double digits year over year, surpassing 53 million. Revenue from our QuickCommerce business increased 12%, mainly due to order growth as a result of the rollout of Taobao Instant Commerce at the end of April. Since its launch, we have seen encouraging business progress, reflecting strong user adoption and growing order momentum. In the meantime, we have expanded our product offerings and front warehouse coverage for non-food categories as part of our efforts to improve user experience and enhance operating efficiency.

Revenue from our quick Commerce business increased 12%, mainly due to order growth as a result of rollout of Taobao instant commerce at the end of April.

Since its launch we have seen encouraging business progress, reflecting strong user adoption and a growing order momentum in.

Speaker #5: The number of ADA VIP members in our high-spending consumers group continued to increase by double digits year-over-year, surpassing $53 million. Revenue from our quick commerce business increased 12%, mainly due to order growth as a result of the rollout of Taobao Instant Commerce at the end of April.

In the meantime, we have expanded our product offerings and from warehouse coverage for non food categories as part of our efforts to improve user experience and enhance operating efficiency.

We executed our plan to generate synergies between quick commerce, and the rest of Alibaba ecosystem by leveraging supply chains users and membership benefits across our businesses.

Speaker #5: Since its launch, we have seen encouraging business progress reflecting strong user adoption and growing order momentum. In the meantime, we have expanded our product offerings and firm warehouse coverage for non-food categories as part of our efforts to improve user experience and enhance operating efficiency.

In August <unk>.

<unk> launched a tier.

Royalty program that connects Alibaba group's China E Commerce quick commerce and travel platforms.

The adjusted EBITA from Alibaba, China E Commerce group decreased by 21%.

Speaker #5: We executed our plan to generate synergies between quick commerce and the rest of Alibaba's ecosystem by leveraging supply chains, users, and membership benefits across our businesses.

Toby Xu: We executed our plan to generate synergies between QuickCommerce and the rest of Alibaba's ecosystem by leveraging supply chains, users, and membership benefits across our businesses. In August, Taobao app launched a tiered loyalty program that connects Alibaba Group's China e-commerce, QuickCommerce, and travel platforms. The adjusted EBITDA from Alibaba China E-Commerce Group decreased by 21%. Excluding the investments in our QuickCommerce business, our Alibaba China E-Commerce Group EBITDA has grown year over year. Revenue from Alibaba International Digital Commerce Group grew 19%, primarily driven by strong performance in cross-border businesses. Alibaba International Digital Commerce Group's adjusted EBITDA loss narrowed significantly, approaching break-even. As we continue to improve our operating efficiency, the user experience of Choice and the international business of Trendyol improved significantly on a sequential basis. Looking ahead, we are committed to enhancing operating and investment efficiency. As a result, our profitability will continue to improve.

Excluding the investments in our quick commerce business.

Our Alibaba, China E Commerce group EBITA, we will have.

<unk> grown year over year.

Speaker #5: In August, the Taobao APP launched a tiered loyalty program that connects Alibaba Group's China e-commerce, quick commerce, and travel platforms. The adjusted EBITDA from Alibaba's China e-commerce group decreased by 21%, excluding the investments in our quick commerce business.

Revenue from AI D. C grew 19%, primarily driven by strong performance in cross border businesses.

Aibt's adjusted EBITA loss narrowed significantly approaching breakeven.

As we continue to improve our operating efficiency the <unk> of choice and the trend deals international business improved significantly on a sequential basis.

Speaker #5: Our Alibaba China e-commerce group EBITDA has grown year-over-year. Revenue from AI/DC grew 19%, primarily driven by strong performance in cross-border businesses. AI/DC's adjusted EBITDA loss narrowed significantly, approaching break-even.

Looking ahead, we are committed to enhancing operating and investment efficiency.

As a result, our profitability, we will continue to improve.

Cloud segment revenue grew by 26%, primarily driven by public power revenue growth.

Speaker #5: As we continue to improve our operating efficiency, the UE of choice and Chengdu's international business improved significantly on a sequential basis. Looking ahead, we are committed to enhancing operating and investment efficiency.

AI revenue continued its triple digit growth as AI demand continues to grow rapidly. We are also seeing increasing demand of compute storage and other public cloud services to support AI adoption.

Speaker #5: As a result, our profitability will continue to improve. Cloud segment revenue grew by 26%, primarily driven by public cloud revenue growth. AI revenue continued its triple-digit growth as demand for AI continues to grow rapidly.

Adjusted EBITA margin remained relatively stable year over year at eight 8%.

Toby Xu: Cloud segment revenue grew by 26%, primarily driven by public cloud revenue growth. AI revenue continued its triple-digit growth. As AI demand continues to grow rapidly, we are also seeing increasing demand for compute, storage, and other public cloud services to support AI adoption. The adjusted EBITDA margin remained relatively stable year over year at 8.8%. We will continue to invest in customer growth and technological innovation, including AI products and services, to increase cloud adoption for AI and maintain our market leadership. As previously mentioned, we have updated our segment reporting to better reflect our focus. We simplified the financial reporting structure by reclassifying Cainiao, Amap, and Youku into all others. All other segment revenue decreased by 28%, primarily due to the disposal of Sun Art and Intime.

We will continue to invest in term.

Growth in the technological innovation, including AI products and our services to include due to increased cloud adoption for AI and maintain our market leadership.

Speaker #5: We are also seeing increasing demand for compute, storage, and other public cloud services to support AI adoption. The adjusted EBITDA margin remained relatively stable year-over-year at 8.8%.

As previously mentioned, we have updated our segment reporting to better reflect our focus we simplified our financial reporting structure by reclassifying, China, a map and Hu Jean <unk> into all others.

Speaker #5: We will continue to invest in customer growth and technological innovation, including AI products and services, to increase cloud adoption for AI and to maintain our market leadership.

Or as a segment revenue decreased by 28%, primarily due to the disposal of sunlight and in time.

All others adjusted EBITA was a loss of RMB, one 4 billion, primarily due to the increased investment in technology businesses, partly offset by the improved results of businesses, including fresh at bolt.

Speaker #5: As previously mentioned, we have updated our segment reporting to better reflect our focus. We simplified the financial reporting structure by reclassifying China AMAP and Hu Jing DME into "All Others."

The all other segment comprises a set of innovative initiatives, including several strategic AI, driven technology infrastructure and the businesses.

Speaker #5: All other segment revenue decreased by 28%, primarily due to the disposal of SunArt and Intime. All others adjusted EBITDA was a loss of RMB 1.4 billion, primarily due to the increased investment in technology businesses.

While we continue to drive efficiency improvements across business lines. We are also investing in AI opportunities to maintain our competitive edge and to drive future growth.

Toby Xu: All others' adjusted EBITDA was a loss of RMB 1.4 billion, primarily due to the increased investment in technology businesses, partly offset by the improved results of businesses, including Freshippo. The all other segment comprises a set of innovative initiatives, including several strategic AI-driven technology infrastructure and businesses. While we continue to drive efficiency improvements across business lines, we are also investing in AI opportunities to maintain our competitive edge and to drive future growth. In closing, this quarter marked meaningful progress in our strategic investment on two pillars that will power Alibaba Group's next phase of growth: our comprehensive consumption platform and AI plus cloud infrastructure. In commerce, the integration of multiple businesses under Alibaba China E-Commerce Group is driving stronger synergy across supply chains, user networks, and membership programs, enabling us to better serve evolving consumer needs and capture long-term growth potentials.

Speaker #5: Partly offset by the improved results of businesses including Freshiple, the "All Other" segment comprises a set of innovative initiatives, including several strategic AI-driven technology infrastructure and businesses.

In closing this quarter mark to meaningful progress in our strategic investment on two pillars that will power Alibaba <unk> next phase of growth.

Our comprehensive consumption platform and AI plus cloud infrastructure.

Speaker #5: While we continue to drive efficiency improvements across business lines, we are also investing in AI opportunities to maintain our competitive edge and to drive future growth.

In commerce, the integration of multiple businesses in the Alibaba, China E. Commerce group is driving stronger synergy across supply chains user networks, and our membership programs, enabling us to better serve evolving consumer needs and capture long term.

Speaker #5: In closing, this quarter marked meaningful progress in our strategic investment in two pillars that will power Alibaba's next phase of growth: our comprehensive consumption platform and AI+Cloud infrastructure.

<unk> growth potential.

In cloud revenue growth accelerated on the back of robust AI driven demand as.

As we expand infrastructure.

Speaker #5: In commerce, the integration of multiple businesses under Alibaba China e-commerce group is driving stronger synergy across supply chains, user networks, and membership programs, enabling us to better serve evolving consumer needs and capture long-term growth potential.

<unk>, we are helping more customers deploy and scale their AI workloads.

We're investing with clarity and the conviction on the two historical opportunities ahead.

And domestic consumption, our commitment of RMB 380 billion.

Speaker #5: In cloud, revenue growth accelerated on the back of robust AI-driven demand. As we expand infrastructure capacity, we are helping more customers deploy and scale their AI workloads.

Technology investment reflects our long term ambition to build the infrastructure essential for AI proliferation, while our focused expansion in quick commerce is designed to unlock new demand and long term consumption potential in China.

Toby Xu: In cloud, revenue growth accelerated on the back of robust AI-driven demand. As we expand infrastructure capacity, we are helping more customers deploy and scale their AI workloads. We are investing with clarity and conviction on the two historical opportunities ahead: AI and domestic consumption. Our commitment of RMB 380 billion technology investment reflects our long-term ambition to build infrastructure essential for AI proliferation, while our focused expansion in QuickCommerce is designed to unlock new demand and long-term consumption potential in China. With strong balance sheet, operating cash flow, and business momentum, we are well-positioned to support these investments, drive sustainable growth, and strengthen core capabilities that will define Alibaba Group's future. Thank you. That's the end of our prepared remarks. We can open up for Q&A.

Speaker #5: We are investing with clarity in our conviction on the two historical opportunities ahead: AI and domestic consumption. Our commitment of RMB 380 billion in technology investment reflects our long-term ambition to build the infrastructure essential for AI proliferation, while our focus on expansion in quick commerce is designed to unlock new demand and long-term consumption potential in China.

With strong balance sheet operating cash flow and our business momentum, we are well positioned to support these investments drive sustainable growth and strengthen core capabilities that would define alibaba <unk> future.

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

Hi, everyone for today's call Youre welcome to ask questions in Chinese or English third party translator will provide consecutive interpretation for the Q&A session. Please note that the translation is for convenience purpose only in the case of any discrepancy our management statement arrange in the language.

Speaker #5: With a strong balance sheet, operating cash flow, and positive business momentum, we are well-positioned to support these investments. We will drive sustainable growth and strengthen core capabilities that will define Alibaba's future.

It will prevail. 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 end of the meeting.

Speaker #5: Thank you. That's the end of our prepared remarks. We can open up for Q&A.

Speaker #3: Hi, hi everyone. 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 section.

Rob Lin: Hi everyone. 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. In the case of any discrepancy, our management statement in the original language will prevail. 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 end of the meeting. 大家好, 今天的电话会欢迎您用中文或英文提问。我们会有第三方工作人员提供实时的交替传译。翻译目的是方便大家理解。如有任何疑义, 请以我们管理层原始语言所做的陈述为准。如无法听到中文翻译, 本次电话会议的双语记录将在会议结束后一周内在我们的网站上提供。 Operator, please start Q&A session. Thank you.

Uh-huh Syngenta deal Huh, LN young children, where England he ran <unk>.

<unk> <unk> <unk>.

Speaker #3: Please note that the translation is for convenience purposes only. In the case of any discrepancy, our management statement in the original language will prevail.

E <unk> with Macquarie.

Yes, those are the changed relation with that.

Joe One thing density and hopefully the Xiaomi channel it sounds like <unk> cel women don't change on people.

Speaker #3: 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 end of the meeting.

Operator, please start Q&A session. Thank you.

Thank you if you wish to ask a question. Please press Star then one on your phone and wait for your name to be announced.

Speaker #3: 大家好, 今天的电话会, 欢迎您用中文或英文提问。我们会有第三方工作人员提供实时的交替传译。翻译目的是方便大家理解。如有任何疑义, 请以我们管理层原始语言所做的陈述为准。如无法听到中文翻译, 本次电话会议的双语记录将在会议结束后一周内在我们的网站上提供。 Operator, please start Q&A session. Thank you.

If you wish to cancel your request please press star two.

And to give more people the opportunity to ask questions. Please keep yourself to no more than one question at a time.

Thank you. Your first question comes from Alicia Yap at Citigroup. Please go ahead.

Hi, Thank you good evening management, Thanks for taking my questions and congrats on your solid cloud revenue growth.

Speaker #2: Thank you. If you wish to ask a question, please press star, then one on your phone, and wait for your name to be announced.

Lydia Lu: Thank you. If you wish to ask a question, please press *1 on your phone and wait for your name to be announced. If you wish to cancel your request, please press *2. To give more people the opportunity to ask questions, please keep yourself to no more than one question at a time. Thank you. Your first question comes from Alicia Yap at Citigroup. Please go ahead.

Question related to your recent step up investment in the quick Commerce and also therefore delivery basis. So can management share with US what is your vision for the quick commerce growth opportunity in China and what is your investment plan for the quick commerce, how long well the heavy investment.

Speaker #2: If you wish to cancel your request, please press *2. And to give more people the opportunity to ask questions, please keep yourself to no more than one question at a time.

Speaker #2: Thank you. Your first question comes from Alicia Yap at Citigroup. Please go ahead.

And how will the investment bring the long term value for overall Taobao, China E Commerce platform.

Speaker #6: Hi, thank you. Good evening, management. Thanks for taking my questions. Congrats on your solid cloud revenue growth. I have a question related to your recent step-up investment in the quick commerce and also the food delivery business.

Operator: Hi, thank you. Good evening, management. Thanks for taking my questions. Congrats on your solid cloud revenue growth. I have a question related to your recent step-up investment in the QuickCommerce and also the food delivery business. Can management share with us what is your vision for the QuickCommerce growth opportunity in China, and what is your investment plan for the QuickCommerce? How long will the heavy investment last, and how will the investment bring the long-term value for overall Taobao and your China e-commerce platform? Can management share a bit of the latest progress of the QuickCommerce business? What are the synergies you have realized so far, and how should we expect the investment to impact our GMV and also the CMR growth in the coming quarters? Thank you.

Management shed a bit of the latest progress of the cycle with just a quick how much business. What other synergies you have realized so far and how should we expect that investment to impact.

Speaker #6: So can management share with us what is your vision for the quick commerce growth opportunity in China and what is your investment plan for the quick commerce?

Our T&D and also the form Oswald in the coming quarters. Thank you.

Speaker #6: How long will the heavy investment last, and how will the investment bring long-term value for overall Taobao and your China e-commerce platform? Can management share a bit of the latest progress of SunGo, which is the quick commerce business? What are the synergies you have realized so far, and how should we expect the investment to impact our GMV and also the CMR growth in the coming quarters?

Got it somewhere.

Again here petition with the <unk>.

Yes, two honeymoons shoot order Eugene showroom format <unk> shown in the tundra, notwithstanding qdoba Tina <unk> tissue ensure on tomo shut in country format suites.

Shanghai <unk> chromosome finish on <unk> too so June quarter to the tissue links show.

Speaker #6: Thank you.

John Hewitt.

Sure <unk>.

Speaker #2: 管理层晚上好, 感谢接受我的提问。也祝贺你们取得的云收入方面很强劲的增长。那我想提的问题是关于其实零售Taobao SunGo这方面最近投资加大。那么是不是可以请管理层分享一下对于在中国的这个其实零售增长机会, 因为有什么愿景, 对其实零售有什么投资计划? 当前这种大额的投入会维持多久? 那么这样的投资会不会带来长期的价值? 迄今为止, 你们已经实现了什么样的协同效应? 而我们应该怎么去考虑呢? 这个投资对GMV的影响, 接下来几个季度对GMV的影响, 以及对CMR增长的影响。谢谢。

Jiang Fan: 管理层晚上好，感谢接受我的提问。也祝贺你们取得的云收入方面很强劲的增长。我想提的问题是关于即时零售，淘宝闪购这方面最近投资加大。是不是可以请管理层分享一下对于在中国的这个即时零售增长机会，你们有什么愿景，对即时零售有什么某一计划，当前这种大额的投入会维持多久？这样的投资会不会带来长期的价值？迄今为止你们已经实现了什么样的协同效应，而我们应该怎么去考虑这个投资对GMV的影响，接下来几个季度对GMV的影响以及对CMR增长的影响。谢谢。

Tissue <unk>.

T y.

Don shown to June.

The total room, which is towards the agenda.

Tyler chunks either challenge.

She's enrich pneumonia using schundler xiaomi on those shares when were showing.

Are women.

So much you can do now to you.

<unk>.

As you can see between <unk> Chongqing Hangzhou Suzhou.

Okay.

What should we see I think what we saw in fashion, which on these two guys in Xinjiang.

Unfortunately, the franchise implementation <unk> initiated sheet propulsion familiar line.

They want them.

<unk>.

Quarter, which anshul external in California, which is on the triangle.

She doesn't.

One was that in <unk>.

<unk>, Shanghai, Guangzhou and the agreement Sean <unk>.

On Chicago I apologize.

We're managing that well.

Speaker #5: ????????????????? SunGo ???????????????????????? SunGo ??????????Taobao SunGo ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 1.2 ??????????????????????????????????SunGo ???????????????????????????? 200%?????????????????????????????????????? Taobao SunGo??????????????????????????Taobao SunGo ??????????????????????????????????????????????????????????? SunGo ????????????????????????????????????????????

Joe Tsai: 感谢你的问题。我首先回顾一下我们在淘宝闪购业务上的一些阶段性进展，同时我也会分享一下我们对淘宝闪购业务后面的一些预期。淘宝闪购上线四个月以来，首先我认为我们在用户、商户运营、物流建设、市场营销方面都取得了成功，特别是七月份开始，我们在订单规模、用户、商户供给、运力规模上都远超预期。只看外卖到家的订单份额，我们已经领先行业。我想跟大家分享几个具体的数字。第一，我们的日均订单分值达到1.2亿单，那八月份我们的周日均订单也达到了8000万单。第二，从用户侧来看，淘宝闪购整体的月度交易用户买家达到了3亿，那么对比四月之前增长了200%。从商户供给来看，过去一段时间随着业务规模的快速增长，大量新用户、新商户加入淘宝闪购，尤其是优质供给达到了行业领先水平。在运力规模方面，淘宝闪购日均活跃骑手数已经达到200万的规模，比四月份增长3倍，这也意味着我们创造了超过100万个新的就业。在上个季度我也讲过，我们淘宝闪购第一阶段的目标首先是用户规模跟心智，经过过去几个月的发展，我们第一阶段的目标已经超预期实现。

With someone they often don't sugarcoat it.

But the woman.

And nothing should I thought are you done nonpartisan Wattenberg children Juneteenth I don't know about you haven't done.

And so I almost want icon Shanghai water into the U S, which I'll use my job, but I'll say that much.

<unk> Chen from talking about venture down button.

So in Shanghai in July, which you then estrogen so the yield will be more of a crestwood syndrome by their own machinery syndrome that would publish angle you wish issue Ultraclean chip I don't know how you think Jefferies.

So if kumar from yen Hello shouldn't go.

Youre doing for you should look for in dialogue about Mt.

<unk> someday.

General and controlling dollars troubled languish in the Juliet.

And then as I assume that you do what does your encore.

Triangle features on the mobile channel, even cocoa Malaysia.

Jim will go through to figure out the project when the digital on the mobile <unk>.

Yes.

Thanks for your question.

Let me begin by reviewing some of the progress we've made so far in our instant commerce business and then share our expectations for instance, commerce going forward.

Since we launched turbo instant commerce four months ago.

We believe that we have been highly successful in engaging users and merchants building logistics capabilities and marketing.

From July onwards in particular, the growth of order volume user scale merchant supplies and delivery delivery capacity of all exceeded expectations.

Speaker #2: Thanks for your question. Let me begin by reviewing some of the progress we've made so far in our instant commerce business and then share our expectations for instant commerce going forward.

Jiang Fan: Thanks for your question. Let me begin by reviewing some of the progress we've made so far in our Instant Commerce business and then share our expectations for Instant Commerce going forward. Since we launched Taobao Instant Commerce four months ago, we believe that we've been highly successful in engaging users and merchants, building logistics capabilities, and marketing. From July onwards, in particular, the growth of order volume, user scale, merchant supplies, and delivery capacity have all exceeded expectations. In fact, if you just look at the food delivery to home category, we are now already the market leader in terms of orders. Let me share some figures. First, our peak daily order volume reached 120 million, and weekly average daily orders reached 80 million in August. Second, user scale, QuickCommerce monthly active consumers, MAC, reached 300 million in August, representing 200% growth compared to before April. Third, merchant supply.

In fact, if you just look at the food delivery to home category.

Speaker #2: Since we launched Taobao Instant Commerce four months ago, we believe that we've been highly successful in engaging users and merchants, building logistics capabilities, and marketing.

We are now already the market leader in terms of orders.

Let me share some figures.

First our peak daily order volume reached $120 million.

Speaker #2: From July onwards, in particular, the growth of order volume, user scale, merchant supplies, and delivery capacity have all exceeded expectations. In fact, if you just look at the food delivery-to-home category, we are now already the market leader.

And weekly average daily orders reached $80 million in August.

Second user scale.

Commerce monthly active consumers MHC reached $300 million in August representing 200% growth compared to before April.

Third merchant supply the rapid growth in business scale has also attracted new merchants to join turbo instant Commerce hi.

Speaker #2: In terms of orders, let me share some figures. First, our peak daily order volume reached 120 million, and the weekly average daily orders reached 80 million in August.

High quality merchant supplier in particular has reached industry leading levels.

Fourth fulfillment capacity.

Daily active riders have exceeded $2 million that is a three times increase from April and that also means that we've created over a million new jobs.

Speaker #2: Second, user scale: quick commerce monthly active consumers (MAC) reached 300 million in August, representing 200% growth compared to before April. Third, merchant supply: the rapid growth in business scale has also attracted new merchants to join Taobao Instant Commerce.

As I stated last quarter. The first stage goals for our quick commerce business were to scale up user growth and to build consumer mind share with these developments over the past few months, we have already achieved our first stage goals beyond our own expectations.

Jiang Fan: The rapid growth in business scale has also attracted new merchants to join Taobao Instant Commerce. High-quality merchant supply, in particular, has reached industry-leading levels. Fourth, fulfillment capacity. Daily active riders have exceeded two million. That is a three-times increase from April, and that also means that we've created over a million new jobs. As I stated last quarter, the first stage goals for our QuickCommerce business were to scale up user growth and build consumer mindshare. With these developments over the past few months, we have already achieved our first stage goals beyond our own expectations.

Speaker #2: High-quality merchant supply, in particular, has reached industry-leading levels. Fourth, fulfillment capacity. Daily active riders have exceeded 2 million, which is a threefold increase from April, and that also means that we've created over 1 million new jobs.

Just don't know what that Josh on gold potential here with a lot of.

So essentially almost <unk>.

Triangle wish Andrew I don't know short haul ginty Guglielmo Guglielmo.

Speaker #2: As I stated last quarter, the first stage goals for our quick commerce business were to scale up user growth and build consumer mindshare. With these developments over the past few months, we have already achieved our first stage goals, beyond our own expectations.

Sean triangular bone pulp are private deals and all of that production triangle to legal consulting and the challenging.

Nicola Shaw <unk>, William <unk>, who are essential to Houston.

And so for you at the end of the quarter Nuomi a candle.

Triangle.

So im sure <unk> drudge enzyme.

Speaker #5: ???????? SunGo ?????????????????Taobao SunGo ??????????????????SunGo ??????????? 20%?SunGo ???????????????????????????????????????????????? SunGo ???????????????????????????????? CMR ??????????????????????????????????????????????????????????????????????????????????????

Joe Tsai: 接下来我再讲一下闪购对电商业务的拉动。首先从用户视角，淘宝闪购显著带动了手淘整体用户规模跟活跃度，闪购拉动淘宝八月DAU增长20%。闪购作为一个更高频的场景，带动了手淘大盘活跃用户活跃天数的提升。在用户活跃提升的过程中，我们也看到闪购带动电商收益的明显趋势，主要体现在第一，因为流量上涨带来了广告跟CMR的提升，第二，因为用户活跃度提升以及新用户拉新跟流失用户的召回，我们可以减少市场费用的投入。我们认为这个趋势会在后续的持续经营中会扩大，相信中长期会更显著带动电商侧的收益。

The email Shandong that I look Mark Baldwin Sam other tissue.

They are in line with what you're saying that you're seeing woloszyn going to shrink for the choppy Whoopi Egencia auction I'll field that total well I'm trying to get to the chooser with a whole shoe the <unk> quarter.

Im showing in conjunction with <unk>.

To answer the show.

Next let me talk about the synergies between quick commerce, and our E Commerce business.

First quick Commerce is significant driver of overall user scale and engagement in August quick commerce drove 20% growth in the turbo apps do you use.

The high frequency pattern of quick Commerce has also contributed to a significant increase in average purchase days per user.

With the increase in user engagement, we are seeing a clear trend of quick commerce driving incremental income for our E Commerce business specifically.

Speaker #2: Next, let me talk about the synergies between quick commerce and our e-commerce business. First, quick commerce is a significant driver of overall user scale and engagement.

Jiang Fan: Next, let me talk about the synergies between QuickCommerce and our e-commerce business. First, QuickCommerce is a significant driver of overall user scale and engagement. In August, QuickCommerce drove 20% growth in the Taobao app's DAUs. The high-frequency pattern of QuickCommerce has also contributed to a significant increase in average purchase days per user. With the increase in user engagement, we are seeing a clear trend of QuickCommerce driving incremental income for our e-commerce business. Specifically, first, the growth in traffic drives advertising and CMR growth. Second, as a result of heightened user engagement, incremental new user acquisition, and customer re-engagement, we can reduce sales and marketing expenses. We expect this trend to continue and to expand in our ongoing operations, and are confident that it will drive significant incremental income on the e-commerce side.

First the growth in traffic drives advertising and CFR growth.

Speaker #2: In August, quick commerce drove a 20% growth in the Taobao app's DAUs. The high-frequency pattern of quick commerce has also contributed to a significant increase in average purchase days per user.

Second as a result of heightened user engagement incremental new user acquisition and customer Reengagement, we can reduce sales and marketing expenses.

We expect this trend to continue and to expand in our ongoing operations and are confident that it will drive significant incremental income on the ecommerce side.

Speaker #2: With the increase in user engagement, we are seeing a clear trend of quick commerce driving incremental income for our e-commerce business. Specifically, first, the growth in traffic drives advertising and CMR growth.

Unfortunately, I wish I could to your question the Shanghai the teen shortly you'll hear from you.

Bob.

Speaker #2: Second, as a result of heightened user engagement, incremental new user acquisition, and customer re-engagement, we can reduce sales and marketing expenses. We expect this trend to continue and expand in our ongoing operations, and we are confident that it will drive significant incremental income on the e-commerce side.

Thanks, Sri and planting and shoulder or can we opened <unk>. What I showed you on the call chew them that in Dunkin' will ship home home to a cemetery.

Sure when we go through the function of Dubai, and Josh are such that.

And you've got $2 <unk> panel shoulder.

I'm with you on that kind of triangle region Butler <unk>.

Jim will mostly request with tissue machine shortly.

Most of them are Haynesville Youll show, you'll what you show your phone your turnaround Nordea switch outrage.

Speaker #5: 接下来我想就大家特别关心的SunGo的经营效率和优异方面分享我们的看法。首先关于经营效率, 我认为不能抛开规模谈效率。那么过去我们的订单规模是同行的三分之一。在很多省市, 我们过去的份额甚至低于20%。在这样一个巨大的市场份额差距下, 谈论效率没有意义。目前来看, SunGo已经达到了规模领先, 我们会快速提升我们的经营效率。同行在外卖行业做得非常优秀, 尤其是效率方面。我们正在努力缩小这一差距。效率方面, 我们的提升空间是巨大的。分短期跟长期看, 短期内我们的损益收敛主要来自于几个方面, 包括。第一, 用户结构的优化。过去四个多月, 我们投入大量市场费, 带来了大量的新用户, 但新用户在获取阶段需要更高的投入。我们的新用户流程非常好, 随着老客的比例快速提升, 平台优异会随着用户结构而优化。第二, 订单结构的优化。我们在下一阶段会持续推高推动高价值订单的比例, 消费者的高价值的正餐订单以及零售订单的比例都在提升。随着平台整体AOV的提升, 也会带来整体优异的优化。第三, 履约效率跟成本的优化。前期我们订单激增, 订单规模激增四倍的过程中, 我们的首要任务是保证用户体验。因为短期运力不足, 七八月份我们对运力做了额外的大规模投资。随着后续一旦平台的订单规模稳定之后, 我们的物流成本会显著下降, 带动平台优异进一步优化。

Joe Tsai: 接下来我想就大家特别关心的闪购的经营效率和优异方面分享我们的看法。首先关于经营效率，我认为不能抛开规模谈效率。那么过去我们的订单规模是同行的三分之一，在很多省市我们过去的份额甚至低于20%。在这样一个巨大的市场份额差距下，谈论效率没有意义。目前来看，闪购已经达到了规模领先，我们会快速提升我们的经营效率。同行在外卖行业做得非常优秀，尤其是效率方面，我们正在努力缩小这一差距。在效率方面，我们的提升空间是巨大的，分短期跟长期看，短期内我们的损益收敛主要来自于几个方面，包括第一，用户结构的优化。过去四个多月我们投入大量市场费，带来了大量的新用户，但新用户在获取阶段需要更高的投入。我们的新用户留存非常好，随着老客的比例快速提升，平台优异会随着用户结构而优化。第二，订单结构的优化，我们在下一阶段会持续推动高价值订单的比例，消费者的高价值的正餐订单以及零售订单的比例都在提升。随着平台整体AOV的提升，也会带来整体优异的优化。第三，履约效率跟成本的优化。前期我们订单激增，订单规模激增四倍的过程中，我们的首要任务是保证用户体验。因为短期运力不足，七八月份我们对运力做了额外的大规模投资。随着后续一旦平台的订单规模稳定之后，我们的物流成本会显著下降，带动平台优异进一步优化。

I was hoping you find me a woman, but you know financial to the other frontline chicken Chauncey come.

Well industry Soliant, John Iclusig from here.

You want to check with you what coaches for the full year women total Todd I also don't see and thought I looked at on a single pad.

Sheila it's a fortunate you had one sharpen.

<unk> got a total well, Michigan wholesome food alcohol, so with a low code a PV of Crestwood fusion <unk>.

Quickly on <unk>.

So until two months ago that Johan ones I saw that you had one which was really a twinkle toes non core charges in the underbelly shortage or the courtyard drew the transcending by engineering shortened unappealing to the adhesion so European <unk> adhesion with allergen to Yo Yo Yo.

And the rationale you mentioned them in the autumn.

<unk> performance in children.

So you can flip to <unk>, you're going to still be the fortune one.

When the soil removal sure Biogen.

Yeah.

Thank you.

Portal Shabaab elephant woman.

Talking about total.

So as a whole <unk> had the <unk> movement Nino warmed, the audio chamber presented with shouts out <unk>.

Okay.

Next let me share my views on the operating efficiency and unit economics of quick Commerce, because I know these are aspects too, which you pay special attention.

When talking about operating efficiency, you cannot disregard scale.

In the past our scale was just one third of our peers and in many cities and provinces our market share was even lower than 20%.

With such a huge gap in market share, it's meaningless to talk about efficiency.

Speaker #2: Next, let me share my views on the operating efficiency and unit economics (UE) of quick commerce, because I know these are aspects to which you pay special attention.

Jiang Fan: Next, let me share my views on the operating efficiency and unit economics, UE, of QuickCommerce because I know these are aspects to which you pay special attention. First, when talking about operating efficiency, you cannot disregard scale. In the past, our scale was just one-third of our peers, and in many cities and provinces, our market share was even lower than 20%. With such a huge gap in market share, it's meaningless to talk about efficiency. Now, however, our QuickCommerce business is leading in scale, and we can quickly improve our operating efficiency. Our peers have achieved excellent performance in the food delivery industry, especially in terms of efficiency, and we are now actively working to narrow that gap. Our scope to improve efficiency is substantial. Let's look at it in the short term and then in the long term.

Now however, our quick commerce business is leading in scale and we can quickly improve our operating efficiency.

Our peers have achieved excellent performance in the food delivery industry, especially in terms of efficiency and we are now actively working to narrow that gap.

Speaker #2: First, when talking about operating efficiency, you cannot disregard scale. In the past, our scale was just one-third of our peers. And in many cities and provinces, our market share was even lower than 20%.

Our scope to improve efficiency is substantial.

Let's look at it in the short term and then in the long term in the short term our losses will narrow primarily driven by the following.

Speaker #2: With such a huge gap in market share, it's meaningless to talk about efficiency. Now, however, our quick commerce business is leading in scale, and we can quickly improve our operating efficiency.

Number one is optimization of customer mix.

We have scaled up marketing expenses for user growth nationwide over the past four months and acquired a large number of new customers.

Speaker #2: Our peers have achieved excellent performance in the food delivery industry, especially in terms of efficiency, and we are now actively working to narrow that gap.

New user acquisition requires substantial upfront investment, but we excel user retention and as the proportion of repeat customers increases you will improve.

Speaker #2: Our scope to improve efficiency is substantial. Let's look at it in the short term and then in the long term. In the short term, our losses will narrow, primarily driven by the following.

Number two is optimization of order mix.

Jiang Fan: In the short term, our losses will narrow, primarily driven by the following. Number one is optimization of customer mix. We have scaled up marketing expenses for user growth nationwide over the past four months and acquired a large number of new customers. New user acquisition requires substantial upfront investment, but we excel at user retention, and as the proportion of repeat customers increases, UE will improve. Number two is optimization of order mix. In the next stage, we aim to increase the proportion of high-value orders, including high-value meal orders, and increase the proportion of non-food category orders. UE will therefore improve as a result of higher average order value, AOV. The third is optimization of fulfillment efficiency and costs. In the initial phase, as order volume ramped up by four times, the number one priority for us as a platform was to ensure the user experience.

And the next stage, we aim to increase the proportion of high value orders, including high value meal orders and increase the proportion of non food category orders UAE will therefore improve as a result of higher average order value.

Speaker #2: Number one is optimization of customer mix. We have scaled up marketing expenses for user growth nationwide over the past four months and acquired a large number of new customers.

Speaker #2: New user acquisition requires substantial upfront investment. But we excel at user retention, and as the proportion of repeat customers increases, user engagement will improve. Number two is the optimization of order mix.

And the third is optimization of fulfillment efficiency and costs and.

In the initial phase as order volume ramped up by four times the number one priority for us as a platform was to ensure the user experience.

Speaker #2: In the next stage, we aim to increase the proportion of high-value orders, including high-value meal orders, and increase the proportion of non-food category orders.

In July and August therefore, we made an additional large investment to address the severe short term lack of delivery capacity going forward as order scale stabilizes, our logistics costs will decline significantly contributing to further improvement.

Speaker #2: UE will therefore improve as a result of higher average order value (AOV). The third focus is the optimization of fulfillment efficiency and costs. In the initial phase, as order volume ramped up by four times, the number one priority for us as a platform was to ensure the user experience.

So edwin certain core audio competition without Houston.

Sure.

Fortinet check with you what you would see that voucher shelving, Joe Shan Yoplait whole, reaching Russia.

Speaker #2: In July and August, therefore, we made an additional large investment to address the severe short-term lack of delivery capacity. Going forward, as order scale stabilizes, our logistics costs will decline significantly, contributing to further UE improvement.

Jiang Fan: In July and August, we made an additional large investment to address the severe short-term lack of delivery capacity. Going forward, as order scale stabilizes, our logistics costs will decline significantly, contributing to further UE improvement.

Thank you, Chris one pays for Daniel.

But in terms of countries of women and then meet with the change will be in that one the audio tremblant to <unk> Chen Johann volatility in Colombia.

Meanwhile, woman below its initial pilot unions in our Shanghai, Yes, we've got another chunk ones yet.

We most of our trading showed the <unk> <unk> from Russia, when Neil wishing chunky as I showed you from yet another higher than <unk>.

Speaker #5: 所以短期通过物流跟补贴效率的提升, 还有用户订单结构的优化, 我们预计在保持消费者当前优惠投入的情况下, 优异亏损可以缩减一半。长期看, 随着我们订单密度的显著变大, 我们的物流成本对于对比四月之前依然有很大的提升空间。另外, 我们的精细化运营性价商户也存在很大的改善空间。我认为规模是决定效率的第一因素。在新的规模跟市场份额下, 我们有信心长期在效率方面达到行业领先水平。与此同时, 我们不会单独看外卖的盈利情况, 考虑到电商的综合收益, 我们认为可以在长期保持价格竞争力的前提下, SunGo对平台整体产生正向经济收益。

Joe Tsai: QuickCommerce can generate positive economic returns for the platform as a whole.

I mean, usually when the plant will come primarily union Xinhua, Colorado to answer on the <unk> well.

So I'm wondering where you create that juncture voucher targets in terms of the <unk> Shanghai <unk> Chongqing Tianjin Chongqing since you show.

So in the short term, we expect that while continuing to maintain investment in consumer benefit.

Through logistics and subsidy efficiency improvements and order structure optimization.

<unk> losses can be reduced by half.

In the long term as order density increases there is considerable scope to optimize our logistics costs compared to four months ago.

In addition, there is also considerable scope to improve our targeted engagement of offline merchants.

Speaker #2: So, in the short term, we expect that while continuing to maintain investment in consumer benefit through logistics and subsidy efficiency improvements, as well as order structure optimization, our UE losses can be reduced by half.

Jiang Fan: In the short term, we expect that while continuing to maintain investment in consumer benefit through logistics and subsidy efficiency improvements and order structure optimization, our UE losses can be reduced by half. In the long term, as order density increases, there is considerable scope to optimize our logistics costs compared to four months ago. In addition, there is also considerable scope to improve our targeted engagement of offline merchants. In my view, scale is the primary factor in achieving efficiency. With our newly achieved scale and market share, we are confident that we can achieve industry-leading efficiency in the long term. At the same time, we will not look at the standalone profitability of QuickCommerce delivery. If combined with the incremental benefits to our e-commerce business, we believe QuickCommerce will bring sustained positive economic value to the overall platform while maintaining price competitiveness.

In my view scale as the primary factor in achieving efficiency.

With our newly achieved scale and market share. We are confident that we can achieve industry leading efficiency in the long term.

Speaker #2: In the long term, as order density increases, there is considerable scope to optimize our logistics costs compared to four months ago. In addition, there is also considerable scope to improve our targeted engagement of offline merchants.

Sure.

At the same time, we will not look at the stand alone profitability of quick commerce delivery.

If combined with the incremental benefits to our E. Commerce business. We believe quick commerce will bring sustained positive economic value to the overall platform, while maintaining price competitiveness.

Speaker #2: In my view, scale is the primary factor in achieving efficiency. With our newly achieved scale and market share, we are confident that we can achieve industry-leading efficiency in the long term.

Well with that challenge Shockley face Haynesville teammate of agile, so we sell them off as Hain <unk> and <unk>.

Speaker #2: At the same time, we will not look at the standalone profitability of quick commerce delivery. If combined with the incremental benefits to our e-commerce business, we believe quick commerce will bring sustained positive economic value to the overall platform while maintaining price competitiveness.

Thanks.

Jim contravention with Youre able to ensure you anytime chia, whom.

Hollywood Casino Moshe shop, if all man woman, Utah challenged out there shopping and Chikungunya foundation and publisher of country, particularly with.

<unk> Hong Kong, just classify that well I'm not sure on the airplane travel one job.

And then John truckload some value.

Speaker #5: ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????360%??????25%?????????????????????????????????????????????? Taobao SunGo ??????????????????70%?????????????????? B2C ????????? SunGo ???????????????????????????????

Joe Tsai: 然后我再讲一下关于非餐饮零售品类的发展。首先我们把非餐饮的品类在即时零售业态分为两部分，第一部分是进场原生模式，另外一部分是远进场结合。进场原生模式下，一方面我们依托强大的商品供给跟供应链，发展闪电仓模式。过去几个月，闪电仓供给快速发展，我们的闪电仓已超过50,000家，订单同比增长超过360%。其中闪电仓25%的供给来自于阿里生态的供应链。第二是依托于Freshippo大力发展生鲜品类的前置仓履约能力，Freshippo在接入Taobao闪购后，线上订单整体突破2,000,000，同比增长7%。在远近场结合方面，

Children with Shanghai pump average onshore with occupancy absolutely Allison has accordingly.

So you talked you Homer <unk>, Shenzhen, Tianjin <unk> and the home outside general publish angle hole <unk> portfolio.

Thingyan backed nutrition.

<unk> and <unk>.

A much harsher.

John Chime in it's home people will say you and Tom will shouldn't you have 18, tangshan <unk> tissue samples and trial, so I'd looked into any of the torture.

Yeah. Good question, the peso Michelle Qi yet.

Next let me talk about development of the non food category.

And quick Commerce, we divide non food deliveries into two parts one is the.

The original.

Hyper local quick Commerce E Commerce model and the other is e-commerce.

Eddie Wu: achieve a faster delivery experience.

<unk> model, a quick commerce plus ecommerce.

On the hyper local side, we have leveraged our abundant supplies and strong supply chain to develop a lightening warehouse model over the past few months supply in these warehouses has rapidly expanded we now have over 50000 lightning warehouses with order growth of over <unk>.

Speaker #2: Next, let me talk about the development of the non-food category. In quick commerce, we divide non-food deliveries into two parts. One is the original hyperlocal quick commerce e-commerce model, and the other is e-commerce.

Lydia Lu: Next, let me talk about development of the non-food category. In QuickCommerce, we divide non-food deliveries into two parts. One is the original hyperlocal QuickCommerce e-commerce model, and the other is e-commerce, a hybrid model of QuickCommerce plus e-commerce. On the hyperlocal side, we have leveraged our abundant supplies and strong supply chain to develop a lightning warehouse model. Over the past few months, supply in these warehouses has rapidly expanded. We now have over 50,000 lightning warehouses with order growth of over 360% year on year. 25% of the supply in these lightning warehouses comes from supply chains within the Alibaba ecosystem. Secondly, we have fulfillment capacity from front warehouses that have been developed by Freshippo for its fresh groceries category. Following Freshippo's supply connection into Taobao Instant Commerce, order volume has already exceeded 2 million, up by 70% year on year.

360% year on year.

25% of the supply in these lightning warehouses comes from supply chain within the Alibaba ecosystem.

Secondly, we have fulfillment capacity from front warehouses that have been developed by <unk> for its fresh groceries category.

Following fresh ship supply connection into turbo instant Commerce order volume has already exceeded $2 million up by 70%.

Year on year.

In terms of the hybrid model Tmall supermarket is upgrading from a traditional BTC fulfillment model to a quick commerce model. This maintains its price competitiveness, while achieving much faster shipping speeds.

On social media.

<unk> ROE, Tim multi impatient gentlemen, John with how about Shankle Shazam, Tim Archer Pasha <unk> with.

<unk>.

And then how about triangle, Tim Morgan triangle that you're hopefully 18 national balancing Ashish.

Lydia Lu: In terms of the hybrid model, Tmall Supermarket is upgrading from a traditional B2C fulfillment model to a QuickCommerce model. This maintains its price competitiveness while achieving much faster shipping speeds.

Syndrome, Okay shelves that are changing the culture.

Hi will.

I think last time you.

Shanghai organ tissue initial <unk>.

Youre buying either Schindler interim yelp tungsten EMEA astonishing by marathon, yet so he's out without both looking at now.

Eddie Wu: 同时我们也会积极地引入天猫品牌线下门店加入淘宝闪购，实现天猫品牌线上线下一体化经营。我们预计未来会有百万家品牌线下门店注入淘宝闪购，天猫跟淘宝闪购的结合会给品牌商带来新的生意增长，也给消费者带来全新的购物体验。综合来看，我们预计在未来三年内，闪购跟即时零售为平台带来一万亿的新增成交。同时我们也相信，外卖行业从一家独大到多平台参与，让商家跟消费者都有了更多的选择权，长期对行业一定是有利的。在这个过程中，平台真金白银的投入创造了超过百万的就业，推动行业变革的同时也促进消费和经济。谢谢。

Josh another shelf Angela welcome to the <unk>.

Chunk sheet behind eating sure youll either.

<unk> seen heightened in bringing the total tons on October one the Joliet terminal, how youre thinking about switching.

Switching to <unk> just yet.

We are also actively onboarding tmall brands offline stores into turbo instant commerce, enabling unified online offline <unk> operations for Tmall brands.

We expect up to 1 million branded offline stores, two joined Hubbell instant commerce overtime.

The integration of Tmall and Taobao instant Commerce will open up new growth drivers for brands and offer consumers a new shopping experience.

Overall, we expect Taobao <unk> Congress on quick commerce to add one trillion RMB in annualized incremental GM fee to the platform within the next three years.

Lydia Lu: We are also actively onboarding Tmall brands' offline stores into Taobao Instant Commerce, enabling unified online/offline O2O operations for Tmall brands. We expect up to 1 million branded offline stores to join Taobao Instant Commerce over time. The integration of Tmall and Taobao Instant Commerce will open up new growth drivers for brands and offer consumers a new shopping experience. Overall, we expect Taobao Instant Commerce and QuickCommerce to add ¥1 trillion in annualized incremental GMV to the platform within the next three years. We also believe the food delivery market's shift from a single dominant player to multi-platform competition gives merchants and consumers more choice, which benefits the industry long term. Throughout this transition, we as a platform are committing real financial resources and investing to create over 1 million direct jobs, drive industry transformation, and stimulate consumption and the broader economy. Thank you.

We also believe the food delivery markets shift from a single dominant player to multi platform competition gives merchants and consumers more choice, which benefits the industry long term.

Throughout this transition we as a platform are committing real financial resources and investing to create over 1 million direct jobs drive industry transformation and stimulate consumption and the broader economy. Thank you.

Next question please.

Thank you. Your next question comes from.

From Thomas Chong of Jefferies.

Please go ahead.

Hi, Good evening, Thanks management for taking my question and congratulation on a very solid.

So.

My question Alibaba cloud.

Our cloud business is doing well and accelerated to 26% year on yet this quarter.

First question is how should we think about.

Rob Lin: Next question, please.

Yes.

Jiang Fan: Thank you. Your next question comes from Thomas Chung at Jefferies.

Should we expect acceleration.

For coming quarters as well as our.

Our expectation for FY 'twenty six.

Toby Xu: Hi, and good evening. Thanks, management, for taking my question and congratulations on a very solid last 12 weeks out. My question is about Alibaba Cloud. We have seen our cloud business is doing very well and accelerating to 26% year on year this quarter. My first question is, how should we think about this acceleration? Should we expect acceleration continues for coming quarters as well as our expectation for FY 2026? Because when I look into our acceleration and look into overseas peers, how should we think about the pace of monetization versus the U.S.? We also see our cloud margin reaching 8.8%. How should we think about the margin outlook into the future? Given our acceleration is very impressive, can we talk about how different industry sectors actually perform in this quarter?

And then looked into our acceleration and look into overseas.

How should we think about the pace of monetization versus.

Yes.

And we also see our cloud margin.

Excellent.

How should we think about the margin.

Outlook into the future and that's fun given hour.

Our acceleration.

All right.

Impressive.

Can we talk about.

Different industries.

Actually performed in this quarter I remember last quarter you talked about.

Multiple factors, including traditional sectors also embraced our call but.

Obviously seeing something different.

I think a lot more progress.

Well this quarter and on that.

Capex, how should we think about our outlook.

We have seen our capex.

PS, uh, how should we think about, um, the pace of monetization, uh, versus, um, uh, the U.S., and, uh, on the other hand, we also see our Cloud margin, uh, between 8.8%. Uh, how should we think about the margin, uh, outlook, uh, into the future and, um, on that front? Um, given our acceleration, uh, is, uh, very, um,

It's why we like the way this quarter. Thank you.

Our guys.

Calling some potential with <unk> in situ chew two of the charge to the west.

Toby Xu: I remember last quarter we talked about multiple sectors, including traditional sectors, also embraced the cloud opportunities. Are we actually seeing something different or making a lot more progress for this quarter? On that, CapEx, how should we think about our CapEx outlook given we have seen our CapEx is very light during this quarter? Thank you.

Qdoba anti nausea early green tree farm yet.

On the Kantar.

<unk>.

Gotcha.

At the moment.

Impressive. Um, can we talk about how, uh, different industries are actually, um, performing in this quarter? I remember last quarter we talked about, um, multiple sectors, including traditional sectors. Also, employees, the opportunities, obviously seeing something different, um, or, um, making a lot more progress.

<unk> <unk> to <unk> should that all <unk>.

<unk> not what <unk> shown the alteon <unk> Todd Tidwell some soup.

Joshua.

For this quarter, um, on that, um, cut tax. Uh, how should we think about our tax outlook given? Uh, we have seen our cut tax. Uh, this, uh, is very nice, the, uh, doing this for... Thank you.

<unk> you could see too.

Good chunk of time yet.

Tissue box should show some soup.

Operator: 好, 感谢管理层, 教授。我的问题也祝贺你们本季度取得的扎实的业绩。我想提的问题呢, 是关于阿里云这一方面。我们看到云业务现在表现很好, 那么本季度增速是达到同比的26%。那我第一个问题是想了解我们应该如何思考它的这种增速的加速, 接下来几个季度或者说整个2026财年会不会继续保持这样的增速。考虑到这种增速并对比海外, 比如说我们跟美国相比, 我们应该如何思考呢? 我们的变现率的一个速度。另一方面, 我看到我们云的利润率现在是达到8.8%。未来的利润率的展望我们应该怎么去思考? 因为一方面我们的增速非常的快, 然后能不能谈一下本季度不同的行业它们的具体表现如何? 我记得上季度我们谈到了多个不同的行业, 包括传统的行业, 还有新兴的一些机会, 是不是某些行业本季度我们取得的进步较快。另外关于资本开支, 我们应该有什么样的展望呢? 就是这些问题, 谢谢。

No.

Call new door to door sung <unk>.

<unk> be high why.

We wish or Mccann make or shouldnt be 4 million gold Roukos Sukarno enrollment.

Shen <unk>.

<unk>.

Maybe if I may what kind or measuring the be renewed.

How can I see a charge? Uh,

Sure.

Datong <unk> <unk>.

<unk> zero Newdow, John won't when will you guys. So much.

For.

Sure.

The formula enrollment at songs through feature on the.

So you don't acquire.

Nominal Chinese outbound situ not home yet Tom <unk> will see the Shaanxi to maintain dollars talk of between the Hong here Aqua transform the whole year.

uh, uh,

<unk> this year.

<unk>.

Moshe honea potency to shoot of the tumor.

Okay.

Moving.

On the <unk>.

You should be on the chart walnuts.

It's a <unk> decision.

Sure Jonathan.

<unk> has the order.

Oh, what ICF way not just to Diego in Zimbabwe, We will know whether you'd see that's all Michelle <unk>.

Cocoa woman already in the cohort.

<unk> also looked at Harman.

So it hasn't been that good CNA board.

AI Temenos, all Macondo year phase I mean should it gets used.

So under the chooses alkali of women <unk> Dwyer to hesitate allows them now to reality in the lung. The fund me. It wasn't kind of 800. This year tightening weight you can we assume that the AI, the Washington, or new Elia Chubb, so anytime that Teva endorsing the angle.

uh,

uh,

Number. Uh,

Eddie Wu: 好, 谢谢你的问题。这个问题总结起来还是蛮多的。我来先回答第一个问题吧, 关于我们的增速的预期。从我们现在看到客户, 我们的阿里云的客户在使用AI产品, 或者在他们的企业内部在开发AI产品的时候, 我们看到一些非常明确的趋势, 就是从这个趋势上看来, 我们觉得在需求端其实还是非常旺盛。主要体现在两个方面, 我们看到非常多的企业, 因为现在的AI模型的能力越来越强, 所以他们在开发很多新的应用, 或者创造很多新的user case。另一方面, 我们也看到了现在很多传统的一些应用的功能在快速地用大模型的能力去替代原来传统计算的, 用大模型的能力来替代原来传统CPU计算的这样一些功能。我们在看到这样的趋势面前, 看到客户的需求还是比较旺盛的。另一方面, 我们也看到我们一直在提到训练和推理方面的需求增长。我们在最近几个季度看到了, 除了在训练, 除了在推理方面的需求快速增长之外, 我们看到在训练方面也有一些新的行业观察。我们除了在行业当中一些基础大模型的公司还在持续迭代升级训练它的模型之外, 也看到了很多新的机会, 比如像我们的车厂, 比如像我们的教育类企业, 或者一些多媒体的应用类公司, 他们现在都有一些训练, 他们用自己的专有数据去训练专有模型的需求。而这些需求对于AI, 对于我们的AI整体基础设施的使用量其实会是一个比较好的推进作用。另一方面, 我们也看到在训练上面一些新的另外一个机会, 就是很多企业在基于我们通义的开源模型之上, 其实也有非常强的后训练需求, 比如我们刚才提到的这些教育公司, 或者一些医疗和医疗行业相关的, 以及很多做开发工具的平台公司。我们发现这里有一些非常好的机会, 他们很多的专属模型会用自己的数据和自己的场景去做我们在通义模型之上的后训练。在这个基础上, 他会天然地使用我们的阿里云的云计算平台, 同时我们会在这个基础上逐渐去开发一些针对我们开源模型的后训练的商业化服务。这也是我们开源模型看到的一些新的商业化机会。我们预期在这样的一些再结合我们整个看到推理需求的快速增长, 预期在未来这几个季度阿里云的总体增速还是会处于一个持续向上的过程当中。

Also on the <unk> the case.

If on me I won't touch on the <unk> is.

Is your annual Laguna, so clients with their own <unk>.

Tom was an annualized <unk> ship owner, so enrollments I cannot say on the <unk> channel and what cannot cope with the CTO how has it been Allison no leeway, if an mi enrollment <unk> will need to.

<unk> will meet.

<unk> then it gets sent up no women that <unk> candela taller die extremely solid at <unk> pharma industry. Total question depends on July <unk> seen this year have you had a one time.

Well known <unk> since it other.

Cynthia issuing and had a margin <unk> under agenda <unk>.

Fuel source element setup.

So I shall Walden.

Joe you did this year so this year.

Thomas T. The England later closer to machines at <unk> here, <unk> <unk> <unk> <unk> D. A.

Hi.

Do you want me to AI and other entities with a pseudo <unk>. She is a place that you go Peter holiday.

For.

<unk> the only way to fund me it won't be a condo.

Session is on Asia in the Meanwhile, it's your wages can do this year that you have and then Tony the Tiger emotions without <unk> fit on China, you've got whole wishing issue tool.

So <unk> you're going through.

Sure.

What is your email <unk> wonder each year in order to <unk> it.

<unk> not just <unk> how holidays this year.

In order to hear Tom <unk>, who most of you know <unk> sheets, all women die of Tony emotions is on the <unk> now.

Do you do?

This was on top of general industrial one modality in the niches on Pinta Thomasville I'm always I think it's useful to again <unk> here <unk> washing the hosting the endo cellular for CSO among <unk> sorry about your wait.

So you will see that sound Asia third GSO element and <unk>, which are the place where those end up when we see that <unk>, although in the <unk> Hydro fleets, where you got situations on league of course in Venezuela.

Okay. Thank you very much for those.

<unk> added, noting them down I saw quite a few questions, but let me start with the first one.

Regarding.

The outlook for our growth rate.

So.

We certainly see.

A very clear trend among our customers.

In terms of utilizing AI products.

And they are developing AI products.

so,

This represents a very strong demand.

Lydia Lu: Okay, thank you very much for those questions. In noting them down, I saw there were quite a few questions, but let me start with the first one regarding the outlook for our growth rate. We certainly see a very clear trend among our customers in terms of utilizing AI products. They're developing AI products, and this represents a very strong demand. First of all, as AI model capabilities continue to strengthen, more and more new AI applications are being developed and applied into more and more new use cases. At the same time, many vendors that had original use cases where they were running workloads on traditional CPUs are now beginning to leverage large models and using AI to run those original functions. For all these reasons, demand is very strong and continues to grow robustly.

First of all as AI model capabilities continue to strengthen more and more new AI applications are being developed and applied into more and more new.

Okay, thank you very much for those, uh, questions. Uh, and noting them down. I saw there were quite a few questions, but let let me start with the first 1, uh, regarding uh, uh, the outlook for our growth rate.

New use cases.

At the same time, many vendors that had the original use cases, where they were running workloads on traditional Cpus are now beginning to leverage large models.

Uh, so, uh, we certainly see, uh, a very clear trend among our, uh, customers, uh, in terms of, uh, utilizing AI products.

<unk>.

Using AI to run those original functions. So for all these reasons demand is very strong and continues to grow.

Uh, and they're developing AI products, and this represents a very strong demand.

Robustly.

Ah.

In recent quarters, we've seen fast growth in inference workloads.

As well as <unk>.

Continued growth in.

Training and.

In.

Inferencing.

Over the past few quarters.

Apart from that rocket growth in that Inferencing, we've also observed some new industry trends on.

Uh, first of all, as AI model capabilities continue to uh, strengthen, uh, more and more new, uh, AI applications are being developed and applied into more and more, uh, new, uh, use cases. Uh, at the same time, many, uh, vendors that had original use cases, uh, where they were, uh, running workloads on traditional CPUs, are now beginning to leverage large models. Uh, and.

On the training side.

Apart from the large fundamental models that continue to be upgraded.

In the market.

Uh, using, uh, AI to, uh, run those original functions. So, for all these reasons, demand is very strong and continues to grow, uh, robustly.

There is also a lot of.

Lydia Lu: In recent quarters, we've seen fast growth in inference workloads, as well as continued growth in training and in inferencing. Over the past few quarters, apart from that rapid growth in inferencing, we've also observed some new industry trends on the training side. Apart from the large fundamental models that continue to be upgraded in the market, there's also a lot of training that is taking place and creating new opportunities. For example, automobile vendors, companies in the education sector, or companies in the multimedia application space, they all have training requirements. They're leveraging their own proprietary data to train proprietary models to meet their demands. That in turn is driving higher utilization of our overall AI infrastructure. This is a very strong boost to our infrastructure use.

uh,

<unk>.

That is taking place and creating new opportunities.

For example.

In recent quarters, we've seen fast growth in inference workloads, as well as...

Automobile vendors.

continued growth in, uh,

For example companies in the education sector.

Or are companies in the multimedia application space.

All have training requirements. They are leveraging their own proprietary data to train proprietary models to meet their demands.

Training and in uh, uh inferencing. Uh, well, the past few quarters. Uh, apart from that rapid growth in that inferencing. Uh, We've also observed some new uh, industry Trends, uh, on the training side. Uh,

And that in turn is driving higher utilization of our overall AI infrastructure.

<unk>.

So this is.

A very strong boost to our infrastructure.

Uh, uh, apart from the large fundamental models. Uh, that continue to be upgraded. Uh, uh uh, in the market, uh, there's also a lot of, uh, training

At the same time, we also see.

New opportunities around training.

Training.

Whereby companies are leveraging our open source model and they have a model of training.

In doing so.

For example.

We mentioned education companies as well as companies in the healthcare.

Sector.

Uh, that is taking place and creating new opportunities. Uh, for example, uh, uh, automobile vendors, uh, for example, uh, companies in the education sector, uh, or companies in the multimedia application space, uh, they all have, uh, training, uh, requirements that they're leveraging their own proprietary data to train proprietary, uh, models to meet their demands.

Companies that are creating development.

Tools platform companies.

So we see a lot of excellent opportunities.

With these proprietary models, where they're leveraging their own.

Lydia Lu: At the same time, we also see new opportunities around training, whereby companies are leveraging our open source models, and they have a lot of training demands in doing so. For example, we mentioned education companies, as well as companies in the healthcare sector, and companies that are creating development tools, platform companies. We see a lot of excellent opportunities with these proprietary models where they're leveraging their own data and their own to meet their own use cases by performing post-training or fine-tuning of our Qwen models. On that basis, they're making use of our Alibaba Cloud computing platform. At the same time, on that basis, we can also begin gradually to develop commercialized services, post-training services for our open source models.

Data and their own <unk>.

Meet their own use cases by performing post trading or fine tuning of our our Q1 models.

Uh, and that in turn is driving higher utilization of our, uh, overall, uh, AI infrastructure. Uh, so this is a very strong boost to our infrastructure, uh, use. Uh, at the same time, we also see.

And on that basis, Theyre, making use of our Alibaba cloud computing platform.

Sure.

And at the same time on that basis. We can also begin gradually to develop commercialized.

Uh, new opportunities, uh, around, uh, training. Uh, whereby companies are leveraging our, uh, open-source uh, models. And they have a lot of, uh, training, uh, demands in doing so. Uh, for example.

Uh, we mentioned, uh, education companies, as well as, uh, companies in the healthcare. Uh.

Services post training services.

For our open source models.

Okay.

Nissan.

<unk> on the Cellulite you, it's always view on the pneumonia is just the one generic P codes.

<unk> no.

Peter.

<unk> has its own them and then you've got Pandora, So let's see.

Uh, tools platform companies. Uh, so we see a lot of excellent opportunities, uh, with these proprietary models, where they're leveraging their own, uh, data and their own, uh, to meet their own, uh, use cases by uh, performing post-training or fine-tuning of our Q1 models.

You mentioned that kind of that you're going to deploy.

This is due to its ongoing and just sits on the Honda will materially.

Uh, and on that basis, they're making use of our Alibaba Cloud computing platform.

Yo Yo AI.

<unk> Honda negotiated with Pimco will materialize.

You don't do <unk> on that you don't do.

Yoga hundreds Hugo.

Aig's, where does it go towards here <unk> share the cheese was out with dual <unk>.

And at the same time, on that basis. Uh, we can also begin, uh, gradually to, uh, develop commercialized, uh, Services post Training Services, uh, for our uh, open source models.

Eddie Wu: to acquire more users and more user application scenarios, rather than focusing on improving our current gross margin.

Our agenda <unk> finally, excuse was had been sort of Samsung users I may yourselves. Thanks, Anton means until debating jindo meters homes out.

Honeymoons at Shandong, <unk> surgical and nonsurgical champions that switches that means LNG, but you're also full assortments I assume the ait's was that AI, certainly infer AI emotionally <unk> Ingenuously Sweet woman.

Woman to a high water hygiene.

The caveats intact into <unk>, so one minute mobile so thats always hotel <unk> <unk> Johan AI strategy since you called the Halloween. This is helpful. So is that Diego cellular mobility in Malaysia.

Well Michelle <unk>.

The what.

So what you can do what you can do it or you won't cuda hunting.

Once a woman <unk> in Mali.

Your other question had to do with gross margin.

And benchmarking against what we see overseas.

So perhaps I can share with you my judgment.

Overall as to the Chinese cloud market and.

What I see.

so,

As the trend is for there to be a higher level of market concentration.

In China as compared to.

Two what we see in overseas markets because developers here.

We require.

Full stock comprehensive capabilities.

For what Theyre, developing and we have that full stock with complete capabilities.

Lydia Lu: Your other question had to do with gross margin and benchmarking against what we see overseas. Perhaps I can share with you my judgment overall as to the Chinese cloud market. What I see as the trend is for there to be a higher level of market concentration in China as compared to what we see in overseas markets because developers here require full-stack comprehensive capabilities for what they're developing. We have that full stack with complete capabilities across traditional cloud computing, compute storage, AI compute, or AI models. We have a very developer-friendly open ecosystem as well. Our goal is to maintain a growth rate above the average rate of market growth to, at the same time, increase our market share.

Across traditional cloud.

Cloud computing compute storage AI.

Our AI models and of course, we have a very developer friendly open ecosystem.

Well.

So our goal is to maintain.

Your other question had to do with uh gross margin uh and uh benchmarking against what we see overseas. Uh so perhaps I can share with you my judgment uh uh overall as to the Chinese uh Cloud market and uh what what I

Growth rate above the average rate of market growth too at the same time.

Increase our market share.

In terms of our strategic objectives. The priority is on growing the number of users expanding into new use cases.

Not in the short term on increasing gross margin.

Okay got you women say.

If I may on the Capex. So as you know one will hesitate GNC Alasania intelligence engine Bubba E. C. On the agency doesn't make it's you talk <unk> kind of way.

<unk>.

Can you change the AIC mechanical meaning hudsons are available on <unk> homepage with Honda.

Data has also gone down to two <unk>.

Lydia Lu: In terms of our strategic objectives, the priority is on growing the number of users, expanding into new use cases, and not in the short term on increasing gross margin.

Linda with old phones, pseudo gigabits will be challenging we underperformed.

You're going to hire to Qingdao went onto your oil either some bypass <unk> heidrick way.

See, uh, as as the trend is for there to be a higher level of Market concentration, uh, in China as compared, uh, to what we see in overseas markets. Because developers here, uh, require uh, full stock, uh, comprehensive capabilities, uh, for, uh, what they're developing. And we have that full stock with complete capabilities, uh, across uh, traditional, uh, cloud computing, compute storage AI, uh, compute, our AI models. Uh, and of course, we have a very developer friendly open ecosystem, uh, as well. Uh, so, our, our goal is to maintain, uh, growth rate above the average rate of market growth to, uh, at the same time, increase our, our market share and in terms of our strategic objectives, the priority is on growing uh the number of users expanding into new use cases and not in the short term on increasing.

Gross margin.

Eddie Wu: 关于我们在AI方面的CapEx支出, 我觉得我们还是会坚持原来三年投资¥3800亿这样的一个计划, 但是每个季度可能根据供应链的不同, 可能会有一些波动。同时呢, 根据全球的AI芯片的供应和政策的变化, 我们其实也有后备不同的和别的合作伙伴共同去做供应链的不同方式的一个储备。我们相信面对不同的一个行业情况, 我们对于未来的¥3800亿的资本支出还是会按照预期的情况去完成。¥3800亿的。

And the <unk> loans.

Okay.

Q1 two.

This engine.

So turning now to the question about our Capex capital expenditures on AI.

AI found me in the C.

We will continue to implement our three year plan to invest 380 billion.

In cloud and AI.

Can you change your AI?

However.

Based on the supply chain situation in different quarters, there may be quarter to quarter fluctuation.

At the same time based on changes in.

Policies around AI chips and supplier.

We have.

Backup plans in place to work with various different partners.

Lydia Lu: Turning now to the question about our CapEx, capital expenditures on AI. We will continue to implement our three-year plan to invest ¥380 billion in cloud and AI. However, based on the supply chain situation in different quarters, there may be a quarter-to-quarter fluctuation. At the same time, based on changes in policies around AI chips and supply, we have backup plans in place to work with various different partners and to be able to respond to different situations in respect of supply chains. I'm confident that no matter what changes may crop up in the industry, we will continue as planned and as expected to move forward with that planned CapEx investment of ¥380 billion.

And to be able to respond to different situations and respective supply chains.

So.

I am confident that.

No matter what changes.

Crop up in the industry.

We will continue as planned and is expected to move forward with that plant.

Capex investment of 381 billion.

Okay.

Yeah.

Next question please.

Thank you. Your next question comes from Kenneth Fong at <unk>.

Managers on, uh, AI. Uh, we will continue to, uh, implement our 3-year plan to invest $380 billion, uh, in cloud and AI. Uh, however, uh, based on the supply chain situation in different quarters, uh, there may be a quarter-to-quarter fluctuation. Uh, at the same time, uh, based on changes in, uh, uh, policies around AI chips and, uh, supply. Uh.

Please go ahead.

Okay.

Hi, Good evening management and thank for taking my question.

Given the cross selling that we have seen.

<unk> already achieved in our food delivery products do we plan to ramp up to in store part of local service.

Uh, we have uh uh backup plans in place to work with various different uh Partners uh and to be able to respond to different uh, situations in respect of Supply chains.

Doug.

Because we noticed that.

Colby <unk>.

Our coupon has been stepping up promotions in certain regions. So how should we think about it.

So the investment we're expanding this ed.

Uh, so, uh, I'm confident that, uh, no matter what changes may crop up in the industry, uh, we will, uh, continue as planned and as expected to move forward with that plan, uh, capex investment of $380 billion.

Part of the business in the coming months on top of the food delivery. Thank you.

Rob Lin: Next question, please.

Next question, please.

Jiang Fan: Thank you. Your next question comes from Kenneth Fong at UBS. Please go ahead.

Our clients and what Shanghai, cashing, social and achievement.

Thank you. Your next question comes from Kenneth Fong at UBS.

<unk> why might that require <unk> or what you think Shen Lebda Tidwell, Shanghai, social was a chunk or not.

Please go.

Toby Xu: Hi. Good evening, management, and thanks for taking my question. Given the cross-selling that we have seen already achieved in our food delivery part, do we plan to ramp up the in-store part of local service, i.e., Taobao and Yongming Wu? We noticed that our Macau Bay in-store coupon has been stepping up promotion in certain regions. How should we think about any further investment or expand in this in-store part of business in the coming months on top of the food delivery? Thank you.

<unk> heard Sharon's up until <unk> of June the <unk>.

Hello again.

Nero thought again sulfate and narrow EMEA <unk> ulema co pay.

Sulfate shut.

We saw a few of our terminals should shoot sorry, Josh.

No.

Souccar tissue.

In <unk>.

<unk> Chica sooner.

<unk> told you look with the shifts in the quadrant acquisition.

Hi, uh, good evening management. And thanks for taking my question. Um, given the cross-selling that we have seen already achieved in our food delivery part. Uh, do we plan to Ram up the install part of local service? I, uh, um, because we noticed that, um, Elma Covey in store, coupon have been stepping up for promotion in certain regions. So, how should we think about, uh, any further investment or expand in this, uh, in store part of business in the coming months on top of the food delivery. Uh, thank you.

Yeah.

Operator: 好, 管理层晚上好, 感谢教授的提问。那么鉴于我们在外卖板块所看到的就已经实现了的这种交叉销售的成果, 我们会不会计划加大本地生活服务中的到店内容, 到店消费的内容? 我们也注意到阿里巴巴口碑这个消费券的促销计划在某些区域在加强。然后我们应该如何思考, 就是到店业务接下来几个月的新的投资或者是新的扩张? 谢谢。

With regard to <unk>.

So it's not always uncertain agile consulting of enrollment the Shanghai area with the Johnny <unk> shot and going out with a pillow.

<unk> sure if you're on top of it we will.

Now, let me turn it down.

Either John or you go to <unk>.

Let me kind of what materials with higher youll be shipped out in sushi, all core audience Angola.

uh,

Sure. So in one way, it's four months horseshoe the charter with Chicago.

You'll see a circle Michelle I'll, let gianluca just go woman to apologize here with John that you guys shipping well many of which are called <unk>.

So it's really want me, it's Asia to ensure it turns out it's always you had Switzerland puzzle.

Yes. Thank you let me take this question.

Sage.

Eddie Wu: We are also conducting some tests and explorations in certain cities.

So the first thing I would say is that this is.

It's very much connected to the scale that we have achieved in quick commerce that I just shared with you.

We have.

Massive scale now of users on our quick Commerce channel every day.

Basically we're talking about $150 million.

Active users on a daily basis.

Within those users there are some who go to the store themselves to self pickup.

And that also includes <unk>.

Group purchase using coupons.

So from the perspective of satisfying the needs of our users and in particular, those who go offline in store.

uh,

Lydia Lu: Yes, thank you. Let me take this question. The first thing I would say is that this is very much connected to the scale that we have achieved in QuickCommerce that I just shared with you. We have a massive scale now of users on our QuickCommerce channel every day. Basically, we're talking about 150 million active users on a daily basis. Within those users, there are some who go to the store themselves to do self-pickup, and that also includes group purchase using coupons. From the perspective of satisfying the needs of our users, and in particular those who go offline in-store, there's a lot of synergy there. We will also consider providing more diverse services to these users. In fact, we're already doing some testing and piloting in certain selected cities.

Yes, thank you.

There's a lot of synergy there and so we will also consider providing more diverse services to these users and in fact, we're already doing some testing and piloting in certain selected cities.

Take this question.

Next question please.

Thank you. Your next question comes from Joyce Ju at Bank of America. Please go ahead.

Just like when you talk here with Jordan.

<unk>.

Uh, so, uh, the first thing I would say is that this, uh, is very much uh, connected to the scale that we, uh, have achieved in quick commerce, that I just shared with you. Uh, we have a massive scale now of, uh, users on our, uh, quick commerce channel. Uh, every day, uh, basically, we're talking about 150 million, uh, active users on a, on a daily basis. And, uh, within those users, uh, there are some who go to the store themselves. Uh,

Well, yes, Nicolas juncture tolerability.

Sure John.

With that Alicia.

To do self pickup, uh, and that that also includes uh uh, group purchase uh, using coupons. Uh,

Well do that with an hour. Thank you Kelly at this time.

Does that help.

And then my final shift our Hollywood God Hollywood that yet.

Paul Thanks for that.

Sure.

<unk> without going through a couple of questions I will say that real.

Yes.

So, uh, from the perspective of satisfying, the needs of our, our users, uh, and in particular, those who go, uh, offline in store, uh, there there's a lot of synergy there. And so we will also, uh, consider providing, uh, more diverse Services, uh, to these users. Uh, and, and in fact, we're already doing some testing and piloting in certain selected cities.

A question from.

Thank you <unk>, let's take.

Rob Lin: Next question, please.

Kickoff question, Okay go steal Ahmad.

Next question, please.

Oliver can you talk about challenging.

Jiang Fan: Thank you. Your next question comes from Joyce Zhu at Bank of America. Please go ahead.

And anthem.

Thank you Anthony.

Your next question comes from Joyce Stew at Bank of America. Please go ahead.

Joe Tsai: 谢谢管理层给我这个提问的机会。我的第一个问题是关于刚刚管理层提到的关于那个三年坚持投入这个AI和内需这两个重大的历史机遇的。第一，因为我们知道在AI方面我们有一个3800亿的这个三年的投资计划。那么在内需方面我们是怎么考虑这个投入的节奏的？它涵盖的部分除了刚刚我们提到的就是即时零售啊，外卖啊，还会包含哪一些比如说在供应链啊，或者是消费者侧的投入，然后它的节奏会是怎么样的？然后我的第二个问题是关于我们这个核心的这个CMR增长的，我们这个季度还是保持了非常强劲的10%的这个年对年增长。但是到了今年九月份以后呢，我们去年那个基础服务费增加的带来的这个基数的问题可能就会逐渐的开始变得困难一点。就想问一下我们接下去是怎么理解这个Quanzhantui渗透所驱动的，比如说未来几个季度的这个CMR的持续的这个take rate的增长，以及就是我们看到外卖或者即时零售所带动的流量或者是这个消费频次的增长，会不会就是帮助到我们的这个GMV加速，然后同时也就是帮助我们的CMR就是进一步的有所这个增速的加持。谢谢。

Go ahead Keith.

Q4 <unk>.

Sure.

Just a final one.

I thought you said 70 Charles on inflation.

So it hit all of that being offshore.

What does it take.

Matt.

Okay. Good.

Take rate I think Joe you still show one.

Well, thank you Charlotte.

Yeah sure.

Sure Jay This I'll say, Paul that Telecom, where boy I wonder with Janney.

Josh.

Yes, just a powerful one.

Yes, Matt you're shameful for Douglas logic, that's understood.

That's accurate.

Thank you management for taking my question My first question.

Has to do with the <unk>.

Base of investments going forward, you mentioned your commitment to the three year.

Plan.

To invest $380 billion in cloud.

For.

And AI.

Im wondering if you could also tell us about your investment plans going forward on the commerce side on the consumption side, what will the pace of those investments.

It looked like in a part from investing in quick commerce. What other investments are you contemplating for example in supply chains.

And users and what will the pace of those investments look like.

And then secondly, I'd like to ask about <unk>.

So we saw strong growth in the <unk>.

Lydia Lu: Thank you, management, for taking my question. My first question has to do with the pace of investments going forward. You mentioned your commitment to the three-year plan to invest ¥380 billion in cloud and AI. I'm wondering if you could also tell us about your investment plans going forward on the commerce side, on the consumption side. What will the pace of those investments look like? Apart from investing in QuickCommerce, what other investments are you contemplating, for example, in supply chains or in users? What will the pace of those investments look like? Secondly, I'd like to ask about CMR. We saw strong growth in CMR this quarter, up 10% year on year. We know that heading into September, the positive impact of the software service fee that you started implementing last year will diminish. Looking forward, how much positive impact will Quanzhantui penetration have on CMR growth?

<unk> this quarter up 10%.

Year on year, but we know that heading into September the positive impact of.

Uh, thank you, management, for taking my question. My first question.

The software service fee that you started implementing last year will diminish.

So looking forward how much positive impact will QC penetration have on <unk> growth.

And beyond that.

Incremental traffic and GMP being.

Being driven by e-commerce.

How much positive impact will that have on CFR. Thank you.

Uh, has has to do with the, uh, the pace of Investments going forward. You, you mentioned, uh, your commitment to the, uh, 3 year, uh, plan, uh, to invest 380 billion in Cloud. Uh, and AI. Uh, I'm wondering if you could also tell us about your investment plans going forward on the, uh, Commerce side on the consumption. Uh, side, what will the pace of those Investments? Uh, look like in apart from investing in quick Commerce, uh, what other Investments are you contemplating? For example, in, uh,

Sandy <unk> Tia Association Jacob Glenn you want to use the shelf is a challenge to get.

To me on the Eagle East Gee that channel, you've got total Ikea tissue.

Honestly in that cash toll road <unk> total points that owning informed me of high <unk> Jaitley Congo put on a yield city ballclub usual type how about chemo, you'll know what would you say your own dental Endo total you'll have that going in <unk>, how about chemo Waldman Satcom Atlanta, those should theater Queen is helping each or total.

Now <unk> challenged by either Yucatan that hold the highest candela you could show them that the challenge John Good songs engine tons vehicles that should kington shelf Ada challenge that the <unk> JV that you launch out while the same time the challenge go by either the total actual.

Lydia Lu: Beyond that, the incremental traffic and GMV being driven by QuickCommerce, how much positive impact will that have on CMR? Thank you.

Supply chains, uh, or in in users and what will the pace of those Investments? Uh, look like, uh, and then, secondly, uh, I'd like to ask about, uh, CMR. So we, we saw a strong growth in the CMR this quarter up 10%, uh, year on year, but we know that, uh, heading into September the positive impact of the, uh, software service fee that you started implementing last year will, uh, diminish. Uh, so looking forward, uh, how much, uh, positive impact will qzt penetration have on CMR growth, uh, uh, and beyond that, uh, the uh, incremental, uh, traffic and gmv, uh, being driven by quick Commerce, uh, how much

Positive impact will that have on CMR? Thank you.

Total the chart blackjack formal quicken GTT to sit hunting Guang kwanza hull and the total that you had so.

Eddie Wu: 好, 谢谢你的问题。我来回答这个问题。首先, 这个关于我们对于在消费的这样一个这么样的一个历史机遇的这样一个投入来讲, 其实我们不是刚刚现在开始投入。在这个方面我们一直在保持投入, 不管是在供应链方面还是在用户方面。这里通过我们不同的业务, 这里包括比如说在淘宝、天猫, 原来我们就在用户端做很多投入, 比如说在供应链端, 我们不光是在淘宝、天猫, 我们在Freshippo等等都是对在供应链上面的一些投入。那近来我们提到这样一个¥50 billion的一个大的投入, 还是看到了一个重大的这样一个整个从远进场结合到近场消费的这样一个大的历史机遇的情况下, 我们增加的这样一个¥50 billion的一个投入。而从投入的角度来讲, 我们会根据具体的市场情况控制好我们投入的节奏, 同时根据整个的市场的发展来确定我们投资投入的最终的一个一个大的一个这个额度。这样的一些投入最终使我们过去的投入加上这次的投入, 最终使我们拥有了很强的在消费市场的这样一个能力, 也让我们能在这次做这样一个整合, 能合在一起抓住这样一个历史机遇。所以这是在消费端的一个投入的我们整体的考虑。

Tom I'm sure can sheet in good shape on the Fontana that trading women towards the total of the three John that he got <unk> J.

Jacob.

They hit a routine silwan unfortunate hold which answers to the toll road you don't show on the Union unchallenged that shelf is <unk> download the <unk> Georgetown and good chunk.

It is also selling but ESG. So it just shelf at Thunder, you've got told elements antipsychotic.

Okay.

Yeah.

Thank you.

Let me take this question.

<unk>.

So given the historic opportunity too.

To invest in the consumer market today, we're certainly grasping that but our investments in the consumption market are not just starting now.

<unk> always been making <unk>.

Investments.

In.

The user side certainly.

Taobao and Tmall group.

<unk> been investing in users on the supply chain side.

Not just the taobao and Tmall group, but also a fresher for one other of our businesses we're investing in.

In the supply chain as well so when we talk about this a large investment that we're now making and the consumption market of 50 billion.

Lydia Lu: Thank you. Let me take this question. Given the historic opportunity to invest in the consumer market today, we're certainly grasping that, but our investments in the consumption market are not just starting now. We've always been making investments in the user side. Certainly, the Taobao and Tmall Group had been investing in users on the supply chain side, not just the Taobao and Tmall Group, but also Freshippo and other of our businesses were investing in the supply chains as well. When we talk about this large investment that we're now making in the consumption market of $50 billion for developing QuickCommerce, this is incremental. This is a new investment on top of those investments that we were making. We will pace the investment cadence and rhythm in line with the market circumstances and market developments to ensure that it makes sense.

Uh, thank you.

Developing quick commerce this is incremental.

This new investment on top of those investments that we're making.

Uh, let me take this question. Uh,

We will pace the investment cadence and rhythm in line with the.

The market circumstances and market developments.

Developments.

To ensure that it.

Then it makes sense.

Yes.

Yes.

Thiago in tissue claim you take CMI, which are integral to Pangaea I should take that take greater Jake <unk> not tickets at all.

Jake <unk>.

<unk> achieved through the <unk> or hiseq anyway that takeaway some in the seven other guys.

And I think the takeaway the guys Sean tissue TGI Laminating Vega, Joe should take women Dejager channel Jacob.

<unk>, Yeah sure Jacob good woman the AI powered as Janet Chen Tomatoes half our time in machine totally the T cell <unk> <unk> two we can doubt beach are harder.

<unk> do you take a take rate to ensure <unk> foam in the WOMAC handle hung Chung in Dutch a couple bunch that you won't cool <unk> pilot hung how they ensure satish if I may a year Witten Cathay woman say Jake of takeaways I mean, the bulk of the CMS Xiaomi and a positive.

Investments, uh, in uh, the user side. Certainly, uh, the Thabo on T-Mobile group, uh, had been investing in users, uh, on the supply chain side, uh, not just the Tabo and T-Mobile group, but also, uh, fresh. And when other of our businesses were investing, uh, in uh, the supply chains, uh, as well. So, when we talk about this, uh, large investment that we're, we're now making in the consumption Market of 50 billion. Uh, uh, uh, for, uh, developing quick Commerce. This is uh, incremental. Uh, this is, uh, a new investment on top of those Investments that we were making, uh, we will Pace the investment, uh, Cadence and rhythm in line with uh, the market circumstances and Market, uh developments. Uh,

To ensure that it, uh, uh,

That it, that it makes sense.

Eddie Wu: CMR will continue to maintain a relatively high growth rate similar to the past two quarters.

And Charles Li So more challenging on icon when the E C J.

<unk>, John <unk>, CMI highest shortly pouch Jacob <unk> laser.

<unk> Young's charcoal suit that you got on that.

Thank you. So your second question had to do with.

Um, the AI power.

<unk> and I think the key point there was the impact.

Take rate.

So in.

In this quarter.

The past.

We said.

<unk> growth was positive.

And robust and this was mainly because of a law.

Large increase in take rate.

And there were a few basically two major reasons for that one was 0.6% software service fee.

The other is.

<unk>.

Which is itself powered by AI continuing to achieve deeper penetration.

And positive.

And I think that in the coming quarters, we can expect to see also positive impacts.

Lydia Lu: Thank you. Your second question had to do with CMR, and I think that the key point there was the impact of take rate. In this quarter, as we said, CMR growth was positive and robust, and this was mainly because of a large increase in take rate. There were basically two major reasons for that. One was the 0.6% software service fee, and the other is Quanzhantui, which is itself powered by AI, continuing to achieve deeper penetration. I think that in the coming quarters, we can expect to see also positive impacts on CMR from these aspects. At the same time, there will be positive impact on CMR from QuickCommerce as well, where we're driving user growth as well as higher user frequency, which will result in higher take rate.

On CMS.

From.

From these aspects.

At the same time there'll be positive impact on <unk> from quick commerce as well.

We're driving user growth as well as higher user frequency, which will result in higher take rate.

So.

Uh, thank you. So, your, uh, second question had to do with, uh, CMR. And I think the, the, the key point there was the impact, uh, of, uh, take rate. Uh, so in, uh, in this quarter, uh, as we said, uh, CMR, uh, growth was, uh, positive, uh, and robust. And this was mainly because of, uh, a large increase in take rate.

We would expect that in the coming.

A couple of quarters, you can expect to see relatively.

Rapid growth in CMI as you are now seeing.

Yeah.

Okay.

Next question please.

Thank you. The next question comes from you on that.

Please go ahead.

Plenty of telecom.

This order.

What's your plan for both of them with enrollments in China.

<unk> block chairman and CEO of <unk>.

Palin Samsung's Hall, transforming shameless initiative that <unk> that showed that no other one key issue.

Adrian which also makes sure that one has shot <unk> so much on the total.

Lydia Lu: We would expect that in the coming couple of quarters, you can expect to see relatively rapid growth in CMR as you are now seeing.

Panel four franchise elements tanking.

Xiaomi.

Yeah.

Uh, and there were a few, basically two major reasons for that. One was the 0.6% software service fee, uh, and the other is, uh, QZT, uh, which is itself powered by AI, uh, continuing to achieve deeper, uh, penetration. Uh, and I think that in the coming quarters, we can expect to see also, uh, positive impacts, uh, on CMR, uh, from, uh, these aspects. Uh, at the same time, uh, there will be a positive impact on CMR from Quick Commerce as well, uh, where we're driving user growth, as well as higher, uh, user frequency, which will result in a higher, uh, take rate. Uh, so, uh, we would expect that in the coming, uh, couple of quarters, you can expect to see relatively, uh, rapid, uh, growth in CMR, as you.

are now seeing,

Thanks, Good evening management.

So we've been following very closely the developments of your models and looking at Q1 three blue.

Rob Lin: Next question, please.

Question please.

Jiang Fan: Thank you. The next question comes from Yuan Liang from Citi. Please go ahead.

Block.

What we see is that it marks a transition from an era, where the focus is on training.

Thank you. The next question comes from Yuan from Settings. Please go ahead.

Eddie Wu: 管理层晚上好，感谢杰洛的提问。我们一直关注公司模型的一个进展，在Qwen-3的这个blog上，我们其实有看到Qwen-3正从专注于训练模型的时代过渡到以训练Agent为中心的一个时代。那我的问题是，以训练为Agent为中心的一个时代，我们还需要增加哪些能力和资源上的投入，以及管理层能否分享一下我们在Agent产品以及应用产品上的一些进展？谢谢。

One where.

It's all about agents and agent centered era.

So.

My question is.

What additional capabilities and resources or investments do we need.

In this transition period and can you tell us a bit about some of your latest developments around agent products and agent applications.

For.

Yeah.

Lydia Lu: Thanks. Good evening, management. We've been following very closely the developments of your models and looking at the Qwen-3 block. What we see is that it marks a transition from an era where the focus is on training to one where it's all about agents, an agent-centered era. My question is, what additional capabilities and resources or investments do we need in this transition period? Can you tell us a bit about some of your latest developments around agent products and agent applications?

Paul <unk>.

Well, Michelle just to conduct and good Tom Washington, Jean <unk>, and I would say it's for the agenda.

And then the chatterbox Doheny agenda adjourn ticket.

Some good <unk>.

No woman day agenda item will change as a woman she under <unk> and that you could choose will Michelle I'm, Washington goes.

Similarly easier contango Xiaomi headwinds Hong Kong.

Contango is highly helens Hong Kong tenants <unk>.

Eagle Ford either you go a little slower.

Vince Honda <unk> handle most of all Americans element to go more into the high shelf shoes yogurt with a local issue.

Training, uh, to 1, uh, where, uh, it's all about agents and an agent-centered era. Uh, so my, my, my, my question is, uh, what additional capabilities and resources or investments do we need, uh, in this, uh, transition period? And can you tell us a bit about some of your latest developments around, uh, agent?

So youll put on local Chilean shooting I'm glad zero goodwill pathology and they push it all now.

Products and agent applications.

Eddie Wu: 好, 我来回答一下您这个问题。我们现在确实看到整个的大模型的这个演进, 确实从原来最初的只是简单的chat box到现在演进到agentic整个的这个这样一个演进。那我们在agentic这个时代的模型, 其实我们现在看到几个非常明显的一个趋势, 就是我们需要让模型能够深入的理解更长的上下文窗口。这更长的上下文窗口才能去解决整个一个更复杂的一个任务, 或者说一个更长的一个思考链路。同时我们也看到我们这个模型其实还需要去使用各种不同的工具, 使用不同的工具链去能够接入各种不同的企业内部系统。这也是各个模型需要去学习的能力。另一方面, 由于AI agent的这个爆发, 我们其实也看到我们在agent的使用, 或者说agent的这个背后的这个基础设施, 其实也是对云计算厂商一个新的机会。比如说我们看到很多agent他需要去解决一个任务的时候, 他需要跑好多的虚拟机, 或者说开很多个浏览器, 或者说同时去开很多的手机虚拟机的窗口。其实Alibaba Cloud也有一个新的产品, 我们叫Agent Bay, 就专门是能够为agent提供底层的一个沙盒环境。我觉得这里面对整个的模型进入到这样一个agent驱动的这个时代, 我觉得对于云计算厂商, 对于Alibaba来说其实是一个非常好的机会, 因为我们Alibaba Cloud上面承载着非常多的不同不同行业的这些企业。同时我们有非常好的适合agent运行的整个的沙盒环境。同时我们的模型也在越来越迭代进化, 适应这个agent使用的这样的一个模型。

So the cause of most interest you shifted in the Li <unk> Fung at Uli.

AI agent the ball firewall materially Johan Dahl women.

Aging this agent.

<unk> <unk> <unk> in the.

The chat box.

Sheena, Chile usual kind of them, though aging touch gel Chi Chi.

<unk>, you're going to order, so tushar <unk>, whether it's <unk>.

Lola and see what's the <unk> edition Yeti This Hong Kong, let's just on EMEA you guys seen the time kinswoman job.

<unk> paid two done this go away agent <unk> LNG <unk> in EMEA.

Some good motion Gina Gina.

Gina without telling you the agent that you don't need to go to the diet or do the do it yourself Horizonte Ali <unk>.

So you can figure out how that's your way you.

Women already in some units and there is a phase <unk> with a little higher that the hits yet Tulsa.

Fit out how those agents are you mentioned some good asarco Bungie Tulsa alone I'm washing exactly like it did I had seen while seeing the agent to see OLED alia of emotion.

Agent.

Thank you let me take that question. So indeed, we do see.

The overall evolution path.

When it comes to models going from simple chatbot toward.

Agents and there are several trends that we can see in the era of agents. One certainly is that models.

Require larger context windows.

To be able to undertake more complex tasks with longer change of thought.

They need to be able to.

Utilized more.

Multiple different tools, where chains of tools.

And the agents need to be able to access different systems.

All on different internal systems within the.

Enterprise. So these developments also create new opportunities for us as an infrastructure.

Lydia Lu: Thank you. Let me take that question. Indeed, we do see the overall evolution path when it comes to models going from simple chatbots toward agents. There are several trends that we can see in the era of agents. One certainly is that models require larger context windows to be able to undertake more complex tasks with longer chains of thought. They need to be able to utilize multiple different tools or chains of tools. The agents need to be able to access different systems, call on different internal systems within the enterprise. These developments also create new opportunities for us as an infrastructure provider. Many of these agents will need virtual servers, or they'll need to have many browser windows open simultaneously, or they'll need many mobile virtual machines and sandbox environments. For a cloud vendor like Alibaba Cloud, these are all very positive developments.

Provider many of these agents.

Uh, thank you. Let me take that question.

We'll need virtual servers or they'll need to have mini browser windows open simultaneously or they'll need many mobile virtual.

Our machines.

Sandbox environments.

So for a cloud vendor like Alibaba cloud user all very positive developments, we're supporting.

So indeed, uh, we do see uh, uh, the overall Evolution path, uh, when it comes to models going from simple, chat, Bots toward, uh, agents. And, uh, there there are several trends that we can see in the uh, era of Agents 1. Uh, certainly is that uh models uh,

Numerous clients in numerous different sectors and we can provide all of these.

With a new product called the agent base.

<unk>.

It provides a sandbox environment specifically for.

Agents.

So this is very much an agent driven era in.

Require larger context Windows uh, to be able to undertake more complex tasks with longer. Uh, chains of thought. Uh, they need to be able to uh utilize uh, multiple different tools or chains, uh, of tools.

AI and cloud development and for US This is an excellent.

<unk>.

Okay.

With only one again it was a woman I typically wouldn't use on this call that will mature.

<unk> been working with Hanmi inches or hydro <unk> will mature the neutrogena without tiger.

Aging that she'd only the AI today motion accordingly, so youll see it on some of the other swing on in EMEA.

Well actually with our proven that Sanjay <unk>.

So Samsung clothing, the motion geographic and order the NGF it under the <unk> the <unk> freight onto the CNA that here was a shelf later this year.

Lydia Lu: We're supporting numerous clients in numerous different sectors, and we can provide all of these with a new product called Agent Bay, which provides a sandbox environment specifically for agents. This is very much an agent-driven era in AI and cloud development, and for us, this is an excellent opportunity.

Uh, and the agents need to be able to access different systems. Uh, you call on different internal systems within, uh, the enterprises. So these developments also create new opportunities for us as an infrastructure, uh, provider. Many of these agents, uh, will need, uh, virtual servers, or they'll need to have many browser windows open, uh, simultaneously, or they'll need, uh, many mobile virtual, uh, machines and, uh, sandbox environments. Uh, so for a cloud vendor like Alibaba Cloud, these are all very positive developments.

If you can figure out a little leeway if I'm in our hydro anti dandruff.

Aging is heavy and sour Marcio faith, and Odessa Ali G 100, and guitar Center this year.

<unk> has been built on the C&I. The fifth <unk> has shares year curve with undertone Noble mission day, Allegheny sort of that you're going to choose for the Sally who is with us in July.

We're supporting, uh, numerous clients in numerous different, uh, sectors. And we can provide, uh, all of these, uh, with uh, a new product called Agent Bay, uh, which is, uh, uh, it provides a Sandbox environment specifically for, uh, uh agents. Uh, so this is very much, an agent driven, uh, era in uh, uh, Ai and Cloud development. And for us, this is an excellent uh, opportunity.

Eddie Wu: OK, 我再补充两点, 就是我们在这个问题上的一个思考。那我们觉得第一个在于模型上面, 其实我还想再补充一点, 我们觉得尤其进入到这个Agent驱动的这个AI时代, 模型的coding能力是一个非常重要的重要的能力, 因为我们觉得未来绝大部分的场景其实可以用一个擅长coding的模型, 结合非常多的连接, 非常多的工具, 连接非常多的这个企业系统, 其实可以解决非常多的企业内的这些任务, 或者消费者端的一些更复杂的任务。另一方面呢, 我还想提一点, 就是在于Agent产品上, 我们还是有非常多的和阿里集团的整个大生态结合的一些产品, 比如说我们现在的非常多的企业电商企业, 他需要一些客服端的产品。我们现在阿里云除了在提供基础的算力和基础设施之外, 其实我们也在协同像淘宝、像钉钉、像高德、像我们的支付宝这样去提供更多的能够在业务层面去自动化解决任务的一些工具。通过这些工具使得我们这些企业开发的这些AI agent能够更好地解决, 能够更好地解决他企业内的这些任务。

Houston only as I shared on Shan Shan Shan.

<unk> salamander <unk> daughter nimble.

Okay. Uh, what's that?

Nonetheless, the year with EMEA Qi <unk> this year.

If you can answer that one.

What is your commentary, it's pseudo woman's each year kind of added here aging nangaku harder geagea.

And then Google how did you do it at CNA the CLO.

Let me add to that by sharing some more of our thinking about <unk>.

<unk> models.

As they relate to our agent driven AI.

Agent.

I think the coding capabilities will become very important.

Because models with strong quoting capabilities.

Can be connected to lots of different.

Tools.

And lots of different enterprise internal <unk>.

Systems.

And they're in that we won't be able to solve for many tasks within the enterprise or even to solve for some more sophisticated tasks.

On the consumer side.

Another point I should add with respect to agent at Gentex products is that we have.

Quite a few products that can tie into that that are excellent within the alibaba ecosystem.

Lydia Lu: Let me add to that by sharing some more of our thinking about models as they relate to agent-driven AI. I think that coding capabilities will become very important because models with strong coding capabilities can be connected to lots of different tools and lots of different enterprise internal systems. In that way, they'll be able to solve for many tasks within the enterprise or even to solve for some more sophisticated tasks on the consumer side. Another point I should add with respect to agentic products is that we have quite a few products that can tie into that, that are excellent within the Alibaba ecosystem. For example, a lot of enterprises, especially e-commerce enterprises, need a client service product within Alibaba Cloud.

For example.

A lot of enterprises, especially E Commerce enterprises.

Uh, let me add to that by sharing. Uh uh some more of our thinking about uh models uh as they relate to, uh, agent driven AI.

Need.

Client service product.

Within the Alibaba cloud apart from providing a compute infrastructure.

We're also able to synergize with <unk>.

<unk> with Ding talk with a map.

And even with our hourly pay.

In order to be able to provide more kinds of automated solutions.

Business level.

Through through these tools.

These enterprises can develop AI agents.

That are better able to solve for these various tasks within the enterprise.

Next question please.

Thank you. Your next question comes from Alex.

Please go ahead go ahead.

Sure.

In addition, our the Tijuana.

Uh, I I think that coding capabilities will become, uh, very important, uh, because, uh, models with strong coding capabilities, uh, can be connected to, uh, lots of different, uh, tools, uh, uh, and lots of different, uh, Enterprise internal, uh, systems. Uh, and there in that way, they'll be able to, uh, solve for, uh, many tasks within the Enterprise, uh, or even to solve for some more sophisticated tasks, uh, on the consumer side, uh, another point I should add with respect to, uh, agent agentic, uh, products is that, uh, we have, uh, uh, quite a few, uh, products that can tie into that with their excellent within the Alibaba ecosystem. Uh, for example, uh, uh, a lot of Enterprises especially e-commerce Enterprises, uh, need uh, uh,

<unk> no.

Client Service. Uh,

Lydia Lu: Apart from providing compute and infrastructure, we're also able to synergize with Taobao, with DingTalk, with Amap, and even with Alipay in order to be able to provide more kinds of automated solutions at the business level. Through these tools, these enterprises can develop AI agents that are better able to solve for these various tasks within the enterprise.

<unk> see a portion of a woman deeds.

Launching Colgate chart, Youll barnyard volatile marschalk, launching a whole tissue extra holiday Allison yeah.

<unk> <unk>.

Sure.

Thomson energy Chamberlain chop elements on why manage a high end <unk> phone.

There's a whole another San Anton Chekhov on that kind of Walmart U K, China and your torches as your meal Shake shack.

Product, uh, within Alibaba Cloud, apart from providing, uh, compute and infrastructure, we're also able to synergize with uh, Taba, with uh, DingTalk, with Amap, uh, and uh, even with Alipay, uh, in order to be able to provide more kinds of automated uh, solutions at the uh, business uh, level. Uh, so through these tools, uh,

<unk> deep Sea collection of Audi Shannon, our lunar module high Xibalba Gourmet trial.

These enterprises can develop AI agents that are better able to solve for these various tasks within the enterprise.

Deep sea to pay with a <unk>.

Rob Lin: Next question, please.

<unk> topical and xiaomi on the Tri along and number one do you see international activity, That's Honeywell mentioned jingle handle.

Question please.

Jiang Fan: Thank you. Your next question comes from Alex Yau at Jefferies. Please go ahead.

So Paul J, J, England targeting <unk> <unk>.

Thank you. Your next question comes from, please go ahead. Go ahead.

Operator: 好的, 谢谢管理层接受我的提问。我想再问一个关于这个外卖和闪购的问题。其实这次也不是我们第一次主动进攻这个市场。在2018年我们把Ele.me收购进来以后, 其实在之后的两三年还是花了很多的精力和资源去尝试进一步加大我们在外卖这个行业里面的市场份额。后来两三年从结果上来看, 我们这个战略意图其实是没有实现。我也曾经去问过DeepSeek为什么阿里下面的Ele.me就还是打不过美团。DeepSeek给我的回答是富养的儿子打不过穷养的创业狼。不管DeepSeek他说的对不对, 肯定我们是经过很多的复盘思考。在这一轮的大举进攻外卖的动作下面, 我们会采用一些什么不同的战略或者是思路来进一步最大化我们的投资回报率, 包括提升我们实现战略意图落地的一些新的思考, 能不能跟我们做一些分享。谢谢。

J&J.

Tangela Xiaomi, Illinois.

I know you shared some young ECS put home there Jade.

Chinese holders lorelai.

<unk> for the tradeoff on women that towards the whole body bulk haulage at the T cell woman Shimon woman Charlie <unk>.

Jon This is gene.

Nonetheless, Goldman until you finish up.

Thanks management and good evening I have a question coming back to quick commerce or instant commerce, because it's not the first time that Alibaba has.

To enter this market.

Bakken from the acquisition of <unk> back in 2018.

Lots of time energy resources were spent on trying to grow.

Our market share in that space, but it seems that over a period of two to three years to original strategic intent really.

It wasn't realized so.

I asked deep seek why it is that.

<unk> under Alibaba still couldn't beat May try and it would be bigger than <unk> and deep Sea told me was that the son of the rich merchant.

Can't beat the entrepreneurial Wolf, who was raised by a poor family.

For.

Lydia Lu: Thanks, management, and good evening. I have a question coming back to QuickCommerce or Instant Commerce because, you know, it's not the first time that Alibaba has tried to enter this market. Back in from the acquisition of Ele.me back in 2018, lots of time, energy, resources were spent on trying to grow our market share in that space. It seems that over a period of two to three years, that original strategic intent really wasn't realized. I asked DeepSeek why it is that Ele.me under Alibaba still couldn't beat Meituan and be bigger than Meituan. What DeepSeek told me was that the son of the rich merchant can't beat the entrepreneurial wolf who was raised by a poor family. It doesn't matter whether DeepSeek is right or wrong, but I'm sure that we've done a lot of reflection and thinking going into this new round in the battle.

So anyway, it doesn't matter, whether deep seek is right or wrong, but.

I'm sure that we've done a lot of reflection and thinking.

Going into this new round in the bottle.

So I'm sure that you will be taking some different strategies or approaches to maximize though.

<unk> success, but if you could tell us.

Simply what what's different this time and what are the different tactics that we're taking.

So we are joining you today is that things are deeply.

Deep sea container locations with ICR.

Sure sure.

Sure sure tissue.

So women's shoes Juul sugar proposal shows a little more linear now with Joseph Ellen and John Hello, just one of them wants a union hydrocodone chimbote, although the team will be in boots, and that should hopefully that xiaomi emission often let utica will not hold oil.

Theyre going to China, your once you're going woman the Georgia.

The only on Colombia on the Eagle postal Youre one ship.

I'm wondering in yellow eliminates ACH and go to Joseph just from the lead generation on the actual figures.

Quick Commerce, uh, or instant Commerce because, you know, it's not the first time that Alibaba has, uh, tried to enter this Market, uh, back in from the acquisition of ulma back in 2018. Uh, lots of time energy resources were spent on trying to grow, uh, uh, our market share in that space. But it seems that, uh, over a period of 2, to 3 years, that original strategic intent really, uh, wasn't, uh, realized. So, I, I, I asked I asked, deep seek, why? It is that, uh, uh, Hilma under Alibaba, still couldn't beat matron and be bigger than matron. And what deep seek told me was that the son of the rich Merchants, uh, can't, uh, beat via entrepreneurial wolf who was raised by a poor family.

So, uh, anyway, it doesn't matter whether Deep Seek is right or wrong. Uh,

The children, although EMEA Paabo triangle <unk>.

That's more quite a yugo.

Jim John or me up without credential toning hasher.

Lydia Lu: I'm sure that you will be taking some different strategies or approaches to maximize success. If you could tell us, you know, simply what's different this time and what are the different tactics that we're taking?

So I wish again, so are you done consistently argued that handle fade our holiday <unk>.

So here, what's your the J J Shadows local children are born yet what are the trends that you go.

Eddie Wu: I think these are all capabilities that Alibaba Group has accumulated over so many years.

But, uh, I'm sure that we've done a lot of, uh, reflection and thinking, uh, going into this new, uh, round in the battle. Uh, so I'm sure that you will be taking some different strategies or approaches, uh, to maximize, uh, success. But if you could tell us, you know, simply what what's different this time and what are the different, uh, tactics that we're taking?

Yeah.

Children.

Thanks, well I guess, you could ask deep sika again.

But.

I'll take a stab at answering that.

It's true that we are.

<unk> invested reacquired <unk> has been investing in it.

For many years, but I think I would begin by saying that <unk> actually made a lot of progress over over these years and that may not be reflected in market share because market share is is related to our investment as well as our strategy is.

Well as <unk>.

Traffic.

But.

I would say that.

Over these years.

Has.

<unk> made tremendous improvement in terms of infrastructure.

Development and capabilities development and if.

That werent. The case, then it simply wouldn't have been possible for tomo instant Congress to have achieved such rapid development in such a short.

Lydia Lu: Thanks. I guess you could ask DeepSeek again, but I'll take a stab at answering that. It's true that we invested, we acquired Ele.me and have been investing in it for many years. I think I would begin by saying that Ele.me has actually made a lot of progress over these years, and that may not be reflected in market share because market share is related to our investment as well as our strategy, as well as traffic. I would say that over these years, Ele.me has made tremendous improvement in terms of infrastructure development and capabilities development. If that weren't the case, then it simply wouldn't have been possible for Taobao Instant Commerce to have achieved such rapid development in such a short period of time.

Period of time, we couldnt start from zero and build this business from scratch in just.

Thanks. Well, I guess you could, uh, ask DeepSeeker again. Uh,

Two to four months.

Be able to service a 120 million orders.

And not just 120 million orders, but to do so with an excellent user experience I think that all of that credit goes to <unk> and the experience and capabilities that we built up following that acquisition.

But, uh, I, I'll, I'll take a stab at answering that. Uh, it's, it's true that we, uh, uh, invested. We acquired ma had been investing in it, uh, for many years. Uh, but I think I, I would begin by saying that Ma has actually made, uh, a lot of progress over over these years. And that may not be reflected in in market share, uh, because market share is, uh, is

Related to our investment, as well as our strategy, uh, as well as, um, uh, traffic. Uh,

Until the <unk> took over towards the Shanghai auto.

Oh, Yeah sure.

So what were the fifth one.

And Joe with agile central distributor Qinghai, Sheila will not hold those actuarial shoulder to religious Angela.

Sure.

Quarterly profit on the Roto <unk> total charges of <unk>, <unk> and charge offs and trigger Ono Morgan how about the John that <unk> okay.

Lydia Lu: You know, we couldn't start from zero and build this business from scratch and in just two to four months be able to service 120 million orders, and not just 120 million orders, but to do so with an excellent user experience. I think that all of that credit goes to Ele.me and the experience and capabilities that we built up following that acquisition.

Click on our menu with how about John I don't know in general should be helpful, where they own the whole well Neil Koehler.

She is the challenge that yugo.

Sure.

So im sure Youll Orlando Jimmy.

You can leave the challenge of audio that John you could ship.

Number one with agricultural Shaw on for John <unk>.

The audio assortment to the pulse of the John Lewicki, EVP and Butcher content will come by Magic.

<unk> Sachin Shah.

Glen Glen Sichuan should answer the challenge for the show.

Eddie Wu: 对, 然后这个业务因为他需要有足够多的商户, 有足够多的运力, 然后也需要有足够多的C端的用户, 只有在这三者都具备的情况下, 我们的投资才是有效率的。对, 如果这三者其中有一端或者两端都非常的弱的话, 那我们的这个投入效率会非常低。那么今天恰巧阿里巴巴跟淘宝的这样的一个整合, 我们可以看到我们有淘宝这样海量的用户, 并且都是非常活跃的用户, 然后我们有阿里巴巴基础的这样的一个商户, 同时也有我们的一个整个运力的就是物流的这样的一个体系。那么我们在这个基础上做这样的一个投资。对, 然后第二就是说我们这个投资的这样的一个逻辑并不是只单独看外卖这个业务, 而是看一个在整个电商短期、中期、长期的这样的一个综合的收益。我们的这样的一个思考逻辑也是跟以前是有差异的。对, 当然能把这个业务要把它做好, 我们还是有非常多的工作要去努力的。

But, uh, I I would say that, uh, over these years, uh, ulma has uh, uh, made tremendous Improvement in terms of uh infrastructure, uh, development and capabilities, uh, development. And if that weren't the case, then it simply wouldn't have been possible for Tabo instant Commerce to have achieved such rapid development in such a short, uh, period of time. You know, we couldn't start from zero and build this business from scratch and in just, uh, 2 to 4 months, uh, be able to, uh, service, 120 million, uh, orders, uh, and not just, uh, 120 million orders, but to do so, with an excellent user, uh, experience, uh, I I think that all of that credit goes to, uh, ulma and the, uh, the experience and capabilities that we built up following that acquisition

Number of women Logility Yugo psychology issue.

Shipping is essentially a title.

No.

Harlem Ohashi with eloquently all true.

Okay.

To get this business right you need to have enough merchants you need to have enough fulfillment capacity, our delivery capacity and you need to have enough.

Consumers users on the consumer end.

And if you are locking in any one of those things then your investment efficiency is going to be.

<unk>.

So in terms of where we are today following the integration of <unk> into the Taobao App.

We have a fab.

Fast number of users on tomo and these are highly active users. We also have.

The merchant base that has been built up.

Yes.

And at the same time, we also have the fulfillment capacity the logistic system that we have built up so that's the foundation on which we're making this investment.

Lydia Lu: To get this business right, you need to have enough merchants, you need to have enough fulfillment capacity or delivery capacity, and you need to have enough consumers, users on the consumer end. If you're lacking in any one of those things, then your investment efficiency is going to be poor. In terms of where we are today following the integration of Ele.me into the Taobao app, we have a vast number of users on Taobao, and these are highly active users. We also have the merchant base that has been built up on Ele.me, and at the same time, we also have the fulfillment capacity, the logistics system that we have built up. That's the foundation on which we're making this investment.

uh,

And then the second thing I would say.

It relates to our investment logic the way we think about this because we are not simply looking at the a quick commerce business on a standalone basis, we're really looking at.

What it can do the overall incremental positive benefit it can provide for our overall e-commerce business in the short term in the medium term and in the long term so the logic and the way we're thinking about this is different.

To get this business, right? Uh, you need to have uh enough Merchants. You need to have uh enough uh, fulfillment capacity, or delivery capacity, and you need to have enough uh uh consumers, uh, users on the consumer end. Uh, and if you're lacking in any 1 of those things, then your investment efficiency is uh, going to be, uh, poor.

From the past.

And of course for us to get this business right and succeed in all of those goals are still a lot of work that we need to do.

Operator, let's take the last question.

Thank you. Your next question comes from Gary Yu at Morgan Stanley. Please go ahead.

Lydia Lu: The second thing I would say relates to our investment logic, the way we think about this, because we're not simply looking at the QuickCommerce business on a standalone basis. We're really looking at what it can do, the overall incremental positive benefit it can provide for our overall e-commerce business in the short term, in the medium term, and in the long term. The logic and the way we're thinking about this is different from the past. Of course, for us to get this business right and succeed in all those goals, there is still a lot of work that we need to do.

Hi, Thank you management for the opportunity I have a question regarding return on invested capital.

Given that we are now spending close to $50 billion.

A couple of months on quick commerce.

How should we look at the rate of return of invested capital from these investment because I would imagine at the same amount were to be spent on something on AI maybe with.

A much bigger tam than lets Baker.

Ah.

Faster growth in cloud.

We may be able to see a much better return on investment. So how should we think about how we allocate capital Intel away between.

Retail and AI investment going forward. Thank you.

What it what it can do, the overall incremental, uh, positive benefit. It can provide for our overall e-commerce business in the, the short term in the medium term and, uh, in the long term. So the, the logic and the way we're thinking about, this is a different, uh, from the past uh, uh, and uh, of, of course, for us to get this business, uh, right and succeed in all those goals, there's still a lot of work that we need to do.

Rob Lin: Officer, let's take the last question.

Oh, Peter, let's take the last question.

Jiang Fan: Thank you. Your next question comes from Gary Yu at Morgan Stanley. Please go ahead.

Thank you.

Sure Glenn it's on gigawatt two under <unk>.

Sure <unk>.

Toby Xu: Hi, thank you, management, for the opportunity. I have a question regarding return on invested capital. Given that we are now spending close to $50 billion in probably a couple of months on QuickCommerce, how should we look at the rate of return of invested capital from these investments? I would imagine if the same amount were to be spent on something on AI, maybe with much bigger TAM and much bigger, faster growth in cloud, we may be able to see a much better return on investment. How should we think about how we allocate capital internally between retail and AI investment going forward? Thank you.

Volume.

Kind of I know, what I mean, so should she could go to <unk>.

So tissue being short form you targeted toward rule in Woodbine.

Bye now.

Some are contact to shift towards <unk>.

Hi. Uh, thank you, management, for the opportunity. Uh, I have a question regarding Return on Invested Capital. Um, given that we are now spending, you know, close to $50 billion in, uh, you know, probably a couple of months on quick commerce.

Yes.

<unk> grew about 10 young appreciate Sharon.

Todd site, we were showing AIG form yet.

Too soon to Concord, Archie I'm, not too sure cyber switch on Cui more too.

So we had a Tam Colombia kantar so its a need we will add talent when they are <unk> linked Shaw, who AI onto <unk> people meter towards food <unk> pharma in Yokohama.

How should we look at the, you know, rate of return of investor capital from these investment? Because I would imagine if the same amount were, to be spent on something on AI, maybe with, you know, much bigger time and much bigger, um, uh, uh, uh, you know, faster growth in Cloud. Uh, we may be able to see a much better return on investment. So, how should we think about how we allocate Capital internally between, you know, um, uh, retail and and and AI investment? Uh going forward, thank you.

Gary what equity that <unk>.

Operator: 好, 感谢管理层给我提问的机会。我的问题是关于投入资本的回报率。看来我们几个月的时间在即时零售方面大概投入接近¥50 billion。那我们应该怎么看待这些投资的回报率? 因为我想如果把同样的这些钱我们投在比如说在AI这一方面, 因为云这个增速更快, 而且这个潜在的市场规模, 这个所谓的TAM可能也更大。在内部来讲, 我们如何在零售和AI这两者之间分配我们的投资, 这一方面有什么想法?

Sure sure Jake.

<unk> Eddy to bandwidth bandwidth Doty dollar while Michelle can Jake.

<unk> Liang could Lisa Shim, Jay that is equally.

To ensure the AI, Dr. Joshua Wolfgang <unk> shelf HIV the EBIT.

The shelf, Italy achieved way Youll seeing Wei Cheng Cheng Cheng Cheng our diesel initial Italian she said that out of the jangly steel. So you don't see the charter lifestyle <unk> doshi could challenge facing the Walnut PCR chip power to that.

Now.

Huge historic opportunities today. The first of these is AI, which we've been discussing but the second is consumption and the opportunity is.

Eddie Wu: 好的，Gary，我来回答这个问题。谢谢这个问题。我想首先我们都提到了，我们现在看到了两个历史性的最大的机会。第一个就像你说的AI，第二个就是我们刚才不断在提到的在消费这里的一个机会。而在消费这里的一个机会又是因为从原厂到进场到即时零售这样一个大趋势带来的历史机会。从这个角度来讲，这两面的投资对我们来讲都是一个战略性的我们必须要去把握住的机会。

um,

To transform consumption from.

That journey from e-commerce to local hyper local e-commerce to instant.

Commerce, and we absolutely need to firmly grasp both of those opportunities that are both crucial.

So you said to Liang good lead the tow rule icon Donna intake jenglish inventory that that's all I can see the chart, we actually switching that to Maui Cabana total well.

<unk> <unk> data <unk>, Doug Warman potash, it's home not only that you are too high shear zone <unk> flashes home ascending to beta chart through high school and the the changing of the outdoor high Assortments that chetan. Good at this and for that the John Good No neither chart to solar on the yield.

Lydia Lu: Thank you. As Eddie and I have both mentioned already on the call, we are faced with two huge historic opportunities today. The first of these is AI, which we've been discussing. The second is consumption, and the opportunity is to transform consumption from on that journey from e-commerce to local hyperlocal e-commerce to instant commerce. We absolutely need to firmly grasp both of those opportunities. They're both crucial.

Google that CN effectively on Gulf, Amit dosing Xing, you added a bunch up all her today, you've got total now do them and I can see one gen that took a toll rule the functional cell.

I'm not sure in Hong Kong, you got blank Chicken challenge <unk>.

Not you'll E J <unk> challenges that aging ammunition, Canada English Italian you've got total Tyler woman <unk> got some good things so that the patient continuity of Taylor wants to take a key <unk>, Chile Diane <unk>.

Eddie Wu: 对于在这两个领域的投入来看，当然这个金额是十分巨大的，从我们自己的角度也是历史性的这么样一个大的投入。但是就像我刚才在我准备的这个里面讲到的，我们不管是从能力的角度还是从资源的角度，资源的角度不管是从我们现金储备的角度还是我们的现金流的角度，还是我们的整个的资产负债表的整个的能力的角度，都让我们有足够的资源在这两个方面都进行用个Eddie的话叫饱和式的一个投入。那对我们来讲最关键的这个投入的方向是怎么去平衡好一个短期跟长期的回报的关系。那用一个这个AI方面的投入来讲，我觉得大家已经很明显的看得到，因为这样一个投入带来了我们的云的一个整个增速的不断的提升。刚才Eddie也提了，不光是这个季度，我们预计在未来的几个季度也进一步会提升。这里当然回来从整个的EBITDA margin的角度，在因为的整个的一个增量的投入，我们目前的first priority还是这个投入。所以对于利润率的角度，可能我们看的会相对少一些，但不代表我们不关注利润率。这在AI方面，对于闪购方面的投入，正如刚才蒋凡讲的，在现在的投入的角度，虽然我们从最终的在这个即时零售上我们还没有赚钱，但是我们已经明显看得到跟淘天的整体的结合，因为带来的流量，因为带来的整体的频次的提升，以及这些流量跟频次的提升能带来淘宝这样一个平台的广告等等的提升，包括从原厂向经常转移的提升，这些都是在未来会产生很好的收益的这样一个投入。在这里我想我们有足够的资源，我们更关键的要聚焦的是，更关键要注意的是，我们不能只是考虑短期的一个回报，而放弃一个长期的回报。我们需要很好的平衡好这一点。

Uh, thank you. Well, as Eddie and I, uh, have both mentioned, uh, already on the call. We are faced with 2, uh, huge historic opportunities today. The first of these is is AI which we've been discussing, but the second is uh, consumption and the opportunity is uh to transform consumption from uh on that Journey from e-commerce to local hyperlocal e-commerce to instant uh Commerce and uh we absolutely need to firmly grasp, both of those opportunities. They're both crucial.

John Good EBITDA margin the chart too so that you can way that's a good that's only on the total woman.

The mortgage and the first priority I should take a toll relate the really that you are to kind of warm and Shanghai Tang and Paypal.

Why don't we would even be so he said that <unk> see.

Some golf I mean, the total general Downs head count and calendar. So I shouldn't that have told us that you ought to see a woman's home seats on that I would take that Jacob Keasling, George Holm Hamiel, John Chen <unk> in Canada than Powergen, the chunky that GSO English dilator, lilia, even with delight that John Kita pins that keisha.

The.

He's the Hilli <unk>, Jacob <unk>, <unk> hydro Guangzhou dumped on the T cell <unk>.

So he should that way with tension hung how the show you that we are in the total.

<unk> was down <unk> <unk>, when we can blend when Jim <unk> GTR. The ship you couldn't when channeled to either shift while <unk> <unk> plant in Chile, the way our balance sheet, a chance to play ball Michele how the peanuts.

So in terms of our investment in both of those areas of course, we're talking about very substantial very large investments.

And from our own point of view these are historic.

Eric investments.

That we're making.

As I said in my prepared remarks.

Be it from the perspective of our capabilities or our resources.

First priority.

I want to talk about resources that could include our cash reserves as well as our cash flows.

As well as our resources across our entire balance sheet we.

We have sufficient resources to be able to make these very substantial investments.

As Eddie said investments at scale.

Both of these are huge opportunities.

So the key for us.

Really is how to balance short term versus long term.

Returns.

Where the priority should lie.

And.

We can look at that in the context of our AI investments that we've been making and I think you will also have seen very clearly already that these investments have already driven.

Lydia Lu: In terms of our investment in both of those areas, of course we're talking about very substantial, very large investments. From our own point of view, these are historic investments that we're making. As I said in my prepared remarks, be it from the perspective of our capabilities or our resources, and when I talk about resources, that can include our cash reserves as well as our cash flows, as well as resources across our entire balance sheet, we have sufficient resources to be able to make these very substantial investments. As Eddie said, investments at scale in both of these huge opportunities. The key for us really is how to balance short-term versus long-term returns and where the priority should lie. We can look at that in the context of our AI investments that we've been making.

The increase in the growth rate of our cloud business.

As was just said earlier.

That's not just for this quarter, but we expect the following few quarters to also.

The increase in the growth rate.

In cloud.

So.

Course, we will.

Also look at the business from the point of view of.

EBITA.

Margin.

But our first priority at this point is on making these investments.

Not making.

Profits from the profit rate.

The higher of those two priority. So it doesn't mean that we're not looking at and we don't care about profit rates of course.

So in terms of AI.

AI investments and the investments in our quick commerce as junk fan.

So, in terms of our investment in both of those areas, of course, we're talking about a very substantial, very large Investments. Uh and from our own point of view, these are uh, historic Investments, uh, that we're making. Uh, as I said, in my prepared remarks, uh, be it from the perspective of our capabilities or our, uh, resources. Uh, I want to talk about resources that could include our cash reserves as well as our cash flows, uh, as well as resources as a cross, our entire balance sheet. Uh, we have sufficient resources to be able to make these very substantial Investments, uh, as, as Eddie said, Investments at scale, uh, in both of these, uh, huge opportunities. Uh, so the, the key for us, uh, really is how to, uh, balance the short-term, uh, versus long-term, uh, returns, uh, and where the priority should lie. Uh, and uh,

Said.

Sure.

We're not yet making any money from those investments in the instant Congress, but we can already see very clearly that with the integration of instant commerce into the taobao App, that's driving increased traffic it's driving increased.

Lydia Lu: I think you will also have seen very clearly already that these investments have already driven an increase in the growth rate of our cloud business. As was just said earlier, that's not just for this quarter, but we expect the following few quarters to also see an increase in the growth rate in cloud. We will also look at the business from the point of view of EBITDA margin, but our first priority at this point is on making these investments and not making profits, the profit rate the higher of those two priorities. That doesn't mean that we're not looking at and we don't care about profit rates, of course.

Cincy.

And as a result of that.

Yes.

Thats also driving increased advertising as well on the platform.

So with the progression from e-commerce to <unk>.

Instant commerce.

All of these investments are going to drive.

Good returns going forward.

And.

I am confident that we have sufficient resources.

Uh, we, we can look at that in the context of our AI Investments that we've, uh, been making. Uh, and I think you will also have seen very clearly already that, uh, these Investments have already, uh, driven, uh, uh, increase in the, uh, growth rate of our Cloud business. Uh, as was just said, uh, earlier. Uh, that's not just for this quarter, but we expect the following few quarters to also see, uh, increase in the growth rate, uh, in, uh, Cloud. Uh, so, uh, of course we will. Uh, also, uh, look at the business from the point of view of of, uh, Evita uh, margin. Uh, but our first priority at this point is on, uh, making these uh, Investments. Uh,

uh, and not making, uh,

To be able to.

To this end to remain focused on what is truly a.

Critical I think it's important to note that we should not simply focus on short term returns and by doing so news out on.

Uh, profits, uh, from the profit rate, uh, the higher of those two priorities. So, it doesn't mean that we're not looking at and we don't care about, uh, the profit rates, of course.

Lydia Lu: In terms of AI investments and the investments in QuickCommerce, as Jiang Fan just said, we're not yet making any money from those investments in instant commerce, but we can already see very clearly that with the integration of instant commerce into the Taobao app, that's driving increased traffic, it's driving increased frequency, and as a result of that, that's also driving increased advertising as well on the platform. With the progression from e-commerce to instant commerce, all of these investments are going to drive good returns going forward. I'm confident that we have sufficient resources to be able to do this and to remain focused on what is truly critical. I think it's important to note that we should not simply focus on short-term returns and by doing so lose out on the opportunity to make those long-term returns. This does require the proper balance.

uh,

The opportunity to make those out long term returns. So this does require the.

So, in terms of AI investments and the investments in quick commerce, as Tang Fan just said.

uh,

Proper balance.

Thank you everyone for joining us today, we appreciate your time and we look forward to speaking with you again soon.

Yeah.

Thank you that concludes our conference for today you may now disconnect your lines.

Uh, we're we're not yet, uh, making any money from those investments in instant Congress, but we can already see, uh, very clearly that with the, uh, uh, integration of instant Commerce into, uh, the taba app that's, uh, driving increased, uh, traffic. It's driving increased, uh, frequency, uh, and, uh, as a result of that, uh, that's also driving increased, uh, advertising as well on the, uh, platform. Uh, so with the progression from, uh, e-commerce to, uh, instant Commerce, uh, all of these Investments are going to, uh, Drive, uh, good returns going forward. Uh, and, uh, I'm confident that we have sufficient, uh, resources, uh, to be able to, uh, uh, do this and to remain focused on what is truly, uh, critical. Uh, I think it's important to note that we, uh,

Should not simply focus on short-term returns and, by doing so, lose out on the opportunity to make those long-term returns. So, this does require the proper balance.

Rob Lin: Thank you, everyone, for joining us today. We appreciate your time, and we look forward to speaking with you again soon.

Thank you all for joining us today. We appreciate your time, and we look forward to speaking with you again soon.

Jiang Fan: Thank you. That concludes our conference for today. Thank you, management.

Toby Xu: Thank you.

Jiang Fan: Thank you.

Thank you. That concludes our conference for today. Thank you.