Q3 2026 Alibaba Group Holding Ltd Earnings Call

March 19, 2026

Speaker #1: 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.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good day, everyone, and welcome to Alibaba Group's December quarter 2025 earnings conference call. Joining us today are Qiu Cai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer; and Jiang Fan, Chief Executive Officer of Alibaba E-commerce Business Group. I would like to remind you that this call is also being webcast on our corporate website.

Lydia Liu: Thank you. Good day, everyone, and welcome to Alibaba Group's December Quarter 2025 Earnings Conference Call. Joining us today are Joseph Tsai, Chairman, Eddie Wu, Chief Executive Officer, Toby Xu, Chief Financial Officer, Jiang Fan, Chief Executive Officer of Alibaba E-commerce Business Group. I would like to remind you that this call is also being webcast on our corporate website. A replay of the call will be available on our website later today. Now, I will quickly cover the safe harbor. Today's discussions may contain forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties. Actual results may differ materially. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures are expressed on a non-GAAP basis.

Lydia Liu: Thank you. Good day, everyone, and welcome to Alibaba Group's December Quarter 2025 Earnings Conference Call. Joining 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. I would like to remind you that this call is also being webcast on our corporate website. A replay of the call will be available on our website later today. Now, I will quickly cover the safe harbor.

Speaker #2: A replay of the call will be available on our website later today. Now, I will quickly cover the safe harbor. Today's discussions may contain forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties.

Lydia Liu: Today's discussions may contain forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties. Actual results may differ materially. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures is included in today's earnings press release and investor presentation. Our comments will be on year-over-year comparisons unless we state otherwise. Now I will turn the call over to Eddie.

Speaker #2: Actual results may differ materially. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures are expressed on a non-GAAP basis.

Speaker #2: Our GAAP results and reconciliations of GAAP to non-GAAP measures are included in today's earnings press release and investor presentation. Our comments will be on year-over-year comparisons, unless we state otherwise.

Lydia Liu: Our GAAP results and reconciliations of GAAP to non-GAAP measures is included in today's earnings press release and investor presentation. Our comments will be on year-over-year comparisons unless we state otherwise. Now I will turn the call over to Eddie.

Speaker #2: And now, I will turn the call over to Eddie.

Speaker #3: Well, thank you, and welcome to this quarter's earnings call. Over the past quarter, we maintained strong investment momentum in our two strategic priorities: AI plus cloud and consumption.

Eddie Wu: Thank you and welcome to this quarter's earnings call. Over the past quarter, we maintained strong investment momentum in our two strategic priorities, AI plus cloud and consumption. Cloud Intelligence Group revenue growth accelerated to 36%, while our quick commerce business continued to expand in scale with ongoing improvement in unit economics. With the dawn of the AI agent era, the addressable market for AI infrastructure providers like Alibaba is set to grow exponentially. AI models and their capabilities are rapidly being embedded into mainstream work environments across all industries, with token consumption surging across sectors. Cloud and software budgets for enterprise IT services have traditionally represented only around 5% of corporate revenue. As model-driven agents begin to handle mainstream work tasks across industries, our total addressable market will expand by several multiples.

Speaker #3: Cloud Intelligence Group revenue growth accelerated to 36%, while our quick commerce business continued to expand in scale with ongoing improvement in unit economics. With the dawn of the AI agent era, the addressable market for AI infrastructure providers like Alibaba is set to grow exponentially.

Speaker #3: AI models and their capabilities are rapidly being embedded into mainstream work environments across all industries. With token consumption surging across sectors, cloud and software budgets for enterprise IT services have traditionally represented only around 5% of corporate revenue. As model-driven agents begin to handle mainstream work tasks across industries, our total addressable market will expand by several multiples.

Speaker #3: From AI infrastructure to the application layer, Alibaba has built a complete, full-stack AI capability set to support the exponential growth in AI demand. Faced with an industry transformation and strategic opportunity of this magnitude, Alibaba Group is itself entering a new phase of entrepreneurial reinvention and critical investment oriented toward the future.

Eddie Wu: From AI infrastructure to the application layer, Alibaba has built a complete full stack AI capability set to support the exponential growth in AI demand. Faced with an industry transformation and strategic opportunity of this magnitude, Alibaba Group is itself entering a new phase of entrepreneurial reinvention and critical investment oriented toward the future. Next, let me share Alibaba's AI strategic roadmap. We have complete full stack AI capabilities. Chips and cloud computing form the AI infrastructure layer, while the AI application layer is anchored by Alibaba Token Hub and comprises foundation models, MaaS on both enterprise and consumer applications. Together, these give us end-to-end coverage across the full stack, from AI infrastructure to applications. Given the enormous and sustained growth momentum of the AI market, combined with Alibaba's full stack positioning across the AI value chain, the business goal of Alibaba's AI strategy is very clear.

Speaker #3: Next, let me share Alibaba's AI strategic roadmap. We have complete full-stack AI capabilities. Chips and cloud computing form the AI infrastructure layer, while the AI application layer is anchored by Alibaba Token Hub and comprises foundation models, mass, and both enterprise and consumer applications.

Eddie Wu: Next, let me share Alibaba's AI strategic roadmap. We have complete full stack AI capabilities. Chips and cloud computing form the AI infrastructure layer, while the AI application layer is anchored by Alibaba Token Hub and comprises foundation models, MaaS on both enterprise and consumer applications. Together, these give us end-to-end coverage across the full stack, from AI infrastructure to applications. Given the enormous and sustained growth momentum of the AI market, combined with Alibaba's full stack positioning across the AI value chain, the business goal of Alibaba's AI strategy is very clear.

Speaker #3: Together, these give us end-to-end coverage across the full stack, from AI infrastructure to applications. Given the enormous and sustained growth momentum of the AI market, combined with Alibaba's full-stack positioning across the AI value chain, the business goal of Alibaba's AI strategy is very clear: Over the next five years, our goal is to surpass $100 billion in combined cloud and AI external revenue, including mass.

Eddie Wu: Over the next 5 years, our goal is to surpass $100 billion in combined cloud and AI external revenue, including MaaS. Regarding our infrastructure, driven by sustained strong AI demand, Cloud Intelligence Group's revenue from external customers accelerated to 35% this quarter, with AI-related product revenue delivering triple-digit year-over-year growth for the 10th consecutive quarter. Cloud Intelligence Group's market share has grown for 3 consecutive quarters, rising to 36%, with our lead continuing to widen. Alibaba Cloud's cumulative external revenue through February for FY26 officially surpassed CNY 100 billion. Over the past 3 months, token consumption on the Model Studio platform has grown by 6 times. We expect MaaS to become Cloud Intelligence Group's largest revenue product. T-Head's proprietary GPU chips have achieved scaled mass production.

Speaker #3: Regarding our infrastructure, driven by sustained strong AI demand, Cloud Intelligence Group's revenue from external customers accelerated to 35% this quarter, with AI-related product revenue delivering triple-digit year-over-year growth for the 10th consecutive quarter.

Speaker #3: Cloud Intelligence Group's market share has grown for three consecutive quarters, rising to 36%, with our lead continuing to widen. Alibaba Cloud's cumulative external revenue through February for fiscal year 2026 officially surpassed RMB 100 billion.

Speaker #3: Over the past three months, token consumption on the Model Studio platform has grown by six times. We expect MASS to become Cloud Intelligence Group's largest revenue product.

Speaker #3: THead's proprietary GPU chips have achieved scaled mass production as of February 2026. THead has cumulatively shipped 470,000 AI chips in real-world business deployments through Alibaba Cloud. More than 60% of THead chips serve external customers, and we've completed scaled adoption for external customer AI workloads.

Eddie Wu: As of February 2026, T-Head had cumulatively shipped 470,000 AI chips. In real-world business deployments through Alibaba Cloud, more than 60% of T-Head chips serve external customers, and we've completed scaled adoption for external customer AI workloads. T-Head now supports the AI workloads of over 400 enterprise customers across industries, including internet, financial services, and autonomous driving. We're confident that T-Head's compute supply capacity will continue to expand, contributing high-quality compute to our cloud infrastructure and MaaS platform, strengthening the overall competitiveness of our cloud services. Regarding our application layer, centered on the core mission of creating, delivering, and applying tokens, we established the new Alibaba Token Hub business group, ATH. It comprises Tongyi Lab, the MaaS business line, the Qwen business unit, the Wukong business unit, and the AI Innovation business unit.

Speaker #3: THead now supports the AI workloads of over 400 enterprise customers across industries, including internet financial services and autonomous driving. We're confident that THead's compute supply capacity will continue to expand, contributing high-quality compute to our cloud infrastructure and mass platform, strengthening the overall competitiveness of our cloud services.

Eddie Wu: We're confident that T-Head's compute supply capacity will continue to expand, contributing high-quality compute to our cloud infrastructure and MaaS platform, strengthening the overall competitiveness of our cloud services. Regarding our application layer, centered on the core mission of creating, delivering, and applying tokens, we established the new Alibaba Token Hub business group, ATH. It comprises Tongyi Lab, the MaaS business line, the Qwen business unit, the Wukong business unit, and the AI Innovation business unit.

Speaker #3: Regarding our application layer, centered on the core mission of creating, delivering, and applying tokens, we established the new Alibaba Token Hub Business Group, ATH. It comprises Tony Laboratory, the Mass business line, the QN business unit, the Wukong business unit, and the AI Innovation business unit.

Speaker #3: It is the organizational foundation for executing Alibaba's AI strategy and the hub for efficient coordination across our AI businesses. During Chinese New Year, we launched our latest-generation large model, QN 3.5 Plus, which delivered outstanding performance across comprehensive benchmarks in reasoning, coding, and agentic capabilities.

Eddie Wu: It is the organizational foundation for executing Alibaba's AI strategy and the hub for efficient coordination across our AI businesses. During Chinese New Year, we launched our latest generation large model, Qwen 3.5-Plus, which delivered outstanding performance across comprehensive benchmarks in reasoning, coding, and agentic capabilities. Qwen 3.5-Plus demonstrated significant improvements in inference efficiency through foundational architectural innovation. Building on Qwen 3.5, we will soon release the next generation of models optimized for coding and agentic use cases. On the consumer application side, powered by the strength of our models, Qwen's consumer-facing monthly active users have surpassed 300 million.

Speaker #3: QN 3.5 Plus demonstrated significant improvements in inference efficiency through foundational architectural innovation. Building on QN 3.5, we will soon release the next generation of models optimized for coding and agentic use cases.

Speaker #3: On the consumer application side, powered by the strength of our models, QN's consumer-facing monthly active users have surpassed 300 million. During Chinese New Year, we deepened integration across Alibaba's ecosystem, connecting the QN app with Taobao Instant Commerce, Alipay, Fliggy, Damai, and AMAP, giving it unique capabilities relevant to everyday life and becoming China's first all-in-one personal AI assistant for life, work, and learning.

Eddie Wu: During Chinese New Year, we deepened integration across Alibaba's ecosystem, connecting Qwen App with Taobao Instant Commerce, Alipay, Fliggy, Damai, and Amap, giving it unique capabilities relevant to everyday life and becoming China's first all-in-one personal AI assistant for life, work, and learning. We've also recently launched Wukong, our enterprise AI agent platform. Wukong is the world's first AI-native enterprise-grade agent platform, enabling AI-powered upgrades to enterprise workflows, while remaining compatible with each organization's data permissions and management processes. It serves as the unified interface for Alibaba's AI capabilities in enterprise work environments, and the B2B capabilities of businesses across Alibaba's full ecosystem will be progressively integrated to support Wukong in becoming the best AI work assistant. On Alibaba's other strategic priority, the consumption segment, we continued to advance our strategic initiatives.

Speaker #3: We've also recently launched Wukong, our enterprise AI agent platform. Wukong is the world's first AI-native, enterprise-grade agent platform, enabling AI-powered upgrades to enterprise workflows, while remaining compatible with each organization's data permissions and management processes.

Speaker #3: It serves as the unified interface for Alibaba's AI capabilities in enterprise work environments, and the B2B capabilities of businesses across Alibaba's full ecosystem will be progressively integrated to support Wukong and become the best AI work assistant.

Eddie Wu: It serves as the unified interface for Alibaba's AI capabilities in enterprise work environments, and the B2B capabilities of businesses across Alibaba's full ecosystem will be progressively integrated to support Wukong in becoming the best AI work assistant. On Alibaba's other strategic priority, the consumption segment, we continued to advance our strategic initiatives.

Speaker #3: On Alibaba's other strategic priority, the consumption segment, we continued to advance our strategic initiatives. This quarter, our quick commerce business further expanded in scale with continued share growth.

Eddie Wu: This quarter, our quick commerce business further expanded in scale with continued share growth, high customer retention, and sequential improvement in both unit economics and average order value. At the same time, quick commerce and e-commerce demonstrated clear synergies, driving Taobao app monthly active consumers to double-digit year-over-year growth. That concludes my remarks. I'll now hand over to Toby to share the financial update. Thank you.

Speaker #3: High customer retention and sequential improvement in both unit economics and average order value at the same time, quick commerce and e-commerce demonstrated clear synergies driving Taobao app monthly active consumers to double-digit year-over-year growth.

Speaker #3: That concludes my remarks. I'll now hand over to Toby to share the financial update. Thank you.

Speaker #1: Thank you, Eddie. Our strategic priorities are clear. We remain focused on AI plus cloud and consumption businesses. We are seeing great momentum with gains in technology, customer adoption, market share, and user engagement.

Toby Xu: Thank you, Eddie. Our strategic priorities are clear. We remain focused on AI plus cloud and consumption businesses. We are seeing great momentum with gains in technology, customer adoption, market share, and user engagement. On AI plus cloud, we have the full stack AI capabilities with all three core elements, model, cloud infrastructure, and chips, and leadership in each with Qwen, Alibaba Cloud, and T-Head. We also operate the most comprehensive consumer ecosystem in China that can monetize through AI. The launch of Qwen App was a major milestone, and it can bring our consumer applications together. On consumption, our quick commerce business continued to gain GMV market share in December quarter, while unit economics and AOV also continued to improve. Now let's look at the financial results. On a consolidated basis, total revenue was RMB 284.8 billion.

Speaker #1: On AI plus cloud, we have the full-stack AI capabilities with all three core elements: model, cloud infrastructure, and chips, and leadership in each with Queen, Alibaba Cloud, and T-Head.

Speaker #1: We also operate the most comprehensive consumer ecosystem in China, with thinking monetized through AI. The launch of Queen APP was a major milestone, and it can bring our consumer applications together.

Speaker #1: On consumption, our quick commerce business continued to gain GMV market share in the December quarter, while unit economics and AOV also continued to improve. Now let's look at the financial results.

Speaker #1: Our consolidated-basis total revenue was RMB 284.8 billion. Excluding revenue from Sun Art and Intime, revenue on a like-for-like basis would have grown by 9%.

Toby Xu: Excluding revenue from Sun Art and Intime, revenue on a like-for-like basis would have grown by 9%. Total adjusted EBITDA decreased by 57%, primarily due to our strategic investments in technology-related innovation initiatives in the consumption front, including quick commerce business, partly offset by the improved operating results in cloud business and enhanced operating efficiencies across various businesses. Our GAAP net income was RMB 15.6 billion, a decrease of 66%. Operating cash flow was an inflow of RMB 36 billion. Free cash flow was RMB 11.3 billion, a decrease of RMB 27.7 billion from the same quarter last year. We are reinvesting our cash flow to be a leader in AI and quick commerce. As of 31 December 2025, we have $42.5 billion in net cash.

Speaker #1: Total adjusted EBITDA decreased by 57%, primarily due to our strategic investments in technology-related innovation initiatives and consumption front, including the quick commerce business. This was partly offset by the improved operating results in the cloud business and enhanced operating efficiencies across various businesses.

Speaker #1: Our GAAP net income was RMB 15.6 billion, a decrease of 66%. Operating cash flow was an inflow of RMB 36 billion. Free cash flow was RMB 11.3 billion, a decrease of RMB 27.7 billion from the same quarter last year.

Speaker #1: We are reinvesting our cash flow to be a leader in AI and quick commerce. As of December 31, 2025, we held $42.5 billion in net cash.

Speaker #1: Excluding that with maturities beyond five years, our net position stands beyond US$60 billion. This balance sheet strength gives us confidence to reinvest for long-term growth.

Toby Xu: Excluding debt with maturities beyond five years, our net position stands beyond $60 billion. This balance sheet strength gives us confidence to reinvest for long-term growth. Now let's look at our consumption businesses. Revenue from China e-commerce group was CNY 159.3 billion, an increase of 6%. Customer management revenue increased by 1%. The slowdown in revenue growth was primarily due to weaker transaction activities and phase out of the impact of software service fee implementation. The Taobao app achieved a double-digit increase in MAC during the quarter, driven by the growing mindshare and increasing scale of our quick commerce business. Revenue from our quick commerce business increased 56% to CNY 20.8 billion.

Speaker #1: Now let's look at our consumption businesses. Revenue from China e-commerce group was RMB 159.3 billion, an increase of 6%. Customer management revenue increased by 1%.

Speaker #1: The slowdown in revenue growth was primarily due to weaker transaction activities and the phase-out of the impact of software service fee implementation. The Taobao app achieved a double-digit increase in MAC during the quarter, driven by the growing mind share and increasing scale of our quick commerce business.

Speaker #1: Revenue from our quick commerce business increased 56% to RMB 20.8 billion. During the quarter, we executed our plan to further grow the scale of our quick commerce business, improve user experience, improve UE, and increase AOV month-over-month during the quarter.

Toby Xu: During the quarter, we executed our plan to further grow the scale of our quick commerce business, improve user experience, improve UE, and increase AOV month-over-month during the quarter. Alibaba China E-commerce Group adjusted EBITDA was RMB 34.6 billion, a decrease of 43% primarily due to the investment in quick commerce, user experiences, and technology. Going forward, this adjusted EBITDA will continue to fluctuate quarter-over-quarter due to intense competition and significant investment in user experience. Revenue from AIDC grew 4% this quarter. AIDC's adjusted EBITDA loss narrowed significantly year-over-year, driven by a combination of logistics optimization and investment efficiency enhancement. The UE of the AliExpress Choice business also improved on a sequential basis. Next, let's look at the business updates and results of Cloud Intelligence Group. Our cloud business delivered another quarter of accelerating growth.

Speaker #1: Alibaba China e-commerce group adjusted EBITDA was RMB 34.6 billion. It decreased by 43%, primarily due to the investment in quick commerce, user experiences, and technology.

Speaker #1: Going forward, this adjusted EBITDA will continue to fluctuate quarter over quarter due to intense competition and significant investment in user experience. Revenue from AIDC grew 4% this quarter.

Toby Xu: Revenue from AIDC grew 4% this quarter. AIDC's adjusted EBITDA loss narrowed significantly year-over-year, driven by a combination of logistics optimization and investment efficiency enhancement. The UE of the AliExpress Choice business also improved on a sequential basis. Next, let's look at the business updates and results of Cloud Intelligence Group. Our cloud business delivered another quarter of accelerating growth.

Speaker #1: AIDC's adjusted EBITDA loss narrowed significantly year over year, driven by a combination of logistic optimization and investment efficiency enhancement. The UE of the AliExpress Choice business also improved on a sequential basis.

Speaker #1: Next, let's look at the business updates and results of Cloud Intelligence Group. Our cloud business delivered another quarter of accelerating growth. Revenue from external customers grew 35%, up from 29% last quarter.

Toby Xu: Revenue from external customers grew 35%, up from 29% last quarter. AI-related products continue to lead this momentum. We delivered our 10th consecutive quarter of triple-digit growth in AI revenue. Its share of external cloud revenue continued to increase. This is a clear reflection of the scale and acceleration in our AI business. The adjusted EBITDA margin remained relatively stable at 9%. We will continue to invest in customer growth and technology innovation to increase adoption of AI cloud infrastructure and strengthen our market leadership. All other segment revenue decreased by 25% to RMB 67.3 billion, mainly due to the disposal of Sun Art and Intime businesses, as well as a decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Alibaba Health.

Speaker #1: AI-related products continue to lead this momentum. We delivered our 10th consecutive quarter of triple-digit growth in AI revenue. Its share of external cloud revenue continued to increase.

Speaker #1: This is a clear reflection of the scale and acceleration in our AI business. The adjusted EBITDA margin remained relatively stable at 9%. We will continue to invest in customer growth and technology innovation to increase adoption of AI cloud infrastructure and strengthen our market leadership.

Speaker #1: All other segment revenue decreased by 25% to RMB 67.3 billion, mainly due to the disposal of Senna and Intime businesses, as well as the decrease in revenue from China, partly offset by the increase in revenue from Fresh Apple and Alibaba Health.

Speaker #1: All other adjusted EBITDA was a loss of $9.8 billion, primarily due to the increase in investment in technology businesses, including Queen models, and the consumer-facing Queen.

Toby Xu: All others adjusted EBITDA was a loss of CNY 9.8 billion, primarily due to the increased investment in technology businesses including Qwen models and the consumer-facing Qwen, partly offset by the improved results of Cainiao, Hema, and other businesses. Qwen model has become one of the most widely adopted open source model families globally, surpassing 1 billion cumulative downloads on Hugging Face by the end of this January. The consumer-facing Qwen has surpassed 300 million MAU across platforms, which reinforces user engagement and expands long-term monetization potential. We have been increasing investments on these technology fronts, including the Spring Festival campaign. Building on the strong momentum and results achieved, as Eddie mentioned earlier, we will continue to invest substantially in Qwen models and Qwen App.

Speaker #1: Partly offset by the improved results of China Huijing DME and other businesses. Queen Model has become one of the most widely adopted open-source model families globally, surpassing $1 billion cumulative downloads on Hugging Face by the end of this January.

Speaker #1: And the consumer-facing Queen has surpassed 300 million MAUs cross-platform, which reinforces user engagement and expands long-term monetization potential. We have been increasing investments on these technology fronts, including the Spring Festival campaign.

Toby Xu: We have been increasing investments on these technology fronts, including the Spring Festival campaign. Building on the strong momentum and results achieved, as Eddie mentioned earlier, we will continue to invest substantially in Qwen models and Qwen App. Our unallocated adjusted EBITDA was a loss of RMB 2.7 billion compared to a loss of RMB 0.2 billion in the same quarter last year, which reflected costs associated with talent retention incentive from the one-off replacement awards plan of Alimama. Thank you. We will now open for Q&A.

Speaker #1: Building on the strong momentum and results achieved, as Eddie mentioned earlier, we will continue to invest substantially in Queen models and the Queen APP. Our unallocated adjusted EBITDA was a loss of RMB 2.7 billion, compared to a loss of RMB 0.2 billion in the same quarter last year, which reflected costs associated with tail-end retention incentives from the one-off replacement awards plan of Olama.

Toby Xu: Our unallocated adjusted EBITDA was a loss of RMB 2.7 billion compared to a loss of RMB 0.2 billion in the same quarter last year, which reflected costs associated with talent retention incentive from the one-off replacement awards plan of Alimama. Thank you. We will now open for Q&A.

Speaker #1: Thank you, and we will now open for Q&A.

Speaker #2: Hi everyone. You're welcome to ask questions in Chinese or English. If a third-party translator provides consecutive interpretation, in the case of any discrepancy, our management statement in the original language will prevail.

Lydia Liu: Hi, everyone. You're welcome to ask questions in Chinese or English. A third party translator will provide consecutive interpretation. 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.

Speaker #2: If you are not able 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 #2: 大家好，欢迎您用中文或英文提问。我们有第三方工作人员提供实时交际传译。如有任何疑义，请以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的一周内在我们的网站上提供。Operator, please go ahead with the first question. Thank you.

Speaker #3: Thank you. If you would like to ask a question, you can press star, then one on your phone, and wait for your name to be announced.

Eddie Wu: Operator, please go ahead with the first question. Thank you.

Operator: Thank you. If you would like to ask a question, you can press star then one on your phone and wait for your name to be announced. If you are on a speakerphone, please pick up your handset to ask your question. To give more people the opportunity to ask questions, please keep yourself to no more than one question at a time. First question today comes from Robin Zhu at Bernstein. Please go ahead.

Eddie Wu: Operator, please go ahead with the first question. Thank you.

Speaker #3: If you are on a speakerphone, please pick up your handset to ask your question. To give more people the opportunity to ask questions, please keep yourself to no more than one question at a time.

Speaker #3: First question today comes from Robin Xu at Bernstein. Please go ahead.

Speaker #4: Thank you. Thanks, management, for taking my question. Could you give us some specific examples of how Token Hub will change how the different cloud and AI businesses work together going forward?

Robin Zhu: Thank you. Thanks management for taking my question. Could you give us some specific examples of how Token Hub will change how the different cloud and AI businesses work together going forward, from an organizational standpoint? You know, strategically, what changes or goals are you hoping to achieve with this new structure that, you know, improves on the previous arrangement going forward? You know, if management could share a hierarchy of priorities in cloud and AI, is it market share and revenue growth such as the target you just announced, versus having, you know, the best first-party model capabilities versus consumer-side traction with customers using agentic AI or anything else? Thank you.

Speaker #4: From an organizational standpoint, and strategically, what changes or goals are you hoping to achieve with this new structure that improves on the previous arrangement going forward?

Speaker #4: And then, if management could share a hierarchy of priorities in cloud and AI—is it market share and revenue growth, such as the target you just announced?

Speaker #4: Versus having the best first-party model capabilities, versus consumer-side traction with customers using agentic AI or anything else? Thank you.

Speaker #3: 好，感谢管理层接受我的提问。首先，是不是可以请你们介绍一下现在有了 Token Hub 之后，从组织设计的角度来讲，不同的云和 AI 相关的业务协作方式会产生什么样的新的变化？另外，从战略的角度来讲，有了这样一个新的结构之后，会带来什么样的改变，或者有助于实现什么样的新的目标，是不是更加优于之前的安排？另外，想请教管理层是不是可以给我们阐述一下你们在云和 AI 方面的优先级，比如说第一大优先级是市场份额和收入增长呢？如你们刚才所宣布的这个目标，还是说第一大优先级是要拥有最好的模型能力，还是说要发展更多的消费者端的使用，或者是 AI 智能体等等。能不能就排一个优先的顺序？谢谢。

[Analyst]: 好，感谢管理层接受我的提问。首先是不是可以请你们介绍一下，现在有了Token Hub之后，从组织设计的角度来讲，不同的云和AI相关的业务，协作的方式会产生什么样的新的变化？另外从战略的角度来讲，就是有了这样一个新的结构之后，会带来什么样的改变，或是有助于实现什么样的新的目标是更加优于之前的安排。另外想请教管理层，是不是可以给我们阐述一下你们在云和AI方面的这个优先级。比如说第一大优先级是市场份额和这个收入增长，如你们刚才所宣布的这个目标，还是说第一大优先级是要拥有最好的这个模型能力，还是说要发展更多的消费者消费端的这个使用，或者是AI智能体等等，那么就排一个优先的顺序。谢谢。

Jiang Fan: 好，感谢管理层接受我的提问。首先是不是可以请你们介绍一下，现在有了Token Hub之后，从组织设计的角度来讲，不同的云和AI相关的业务，协作的方式会产生什么样的新的变化？另外从战略的角度来讲，就是有了这样一个新的结构之后，会带来什么样的改变，或是有助于实现什么样的新的目标是更加优于之前的安排。另外想请教管理层，是不是可以给我们阐述一下你们在云和AI方面的这个优先级。比如说第一大优先级是市场份额和这个收入增长，如你们刚才所宣布的这个目标，还是说第一大优先级是要拥有最好的这个模型能力，还是说要发展更多的消费者消费端的这个使用，或者是AI智能体等等，那么就排一个优先的顺序。谢谢。

Speaker #4: 好，非常感谢你的提问。我觉得我们成立 ATH 这个事业群的目的和现在的这个时代，或者说这个技术变革的背景有关系。因为从 2025 年的下半年到 2026 年的前面这两三个月，我们已经看到了，就是 AI 已经进入到 AI，也就是 aging 驱动的这个时代。而 aging 驱动的这个时代和我们前面早期的 AI 这个阶段最大的区别，在于模型与应用之间的紧密配合，对于怎么样做好模型，以及发展应用至关重要。因为在 AI 的早期，其实预训练的很多数据来自于一些静态的数据。那当我们现在开始进入到 aging 的时代之后，实际上我们大量的、提升模型能力或者说帮助我们把应用做得更好的能力，来自于模型和应用的紧密结合，以及在客户的使用场景当中的紧密的数据联调。所以，从这个角度上来说，我们觉得在我们的——如果看 AI 的五个层面的话，第一个是应用层，第二个是模型层，然后再下面是 AI infra，类似云计算，再到下面是芯片层的话，我们觉得在这个 aging 的时代，模型和应用的紧密配合是一个更关键的事情。所以。

Jiang Fan: 非常感谢你的提问。我觉得我们成立ATH事业群的目的和现在的这个时代，或者说这个技术变革的背景有关系。因为从2025年的下半年到2026年的前面这两三个月，我们已经看到了，就是AI已经进入到agent驱动的这个时代。而agent驱动的这个时代和我们前面的，就是说前面早期的AI这个阶段，最大的区别在于模型与应用之间的紧密配合，对于怎么样做好模型以及发展应用至关重要。因为在AI的早期，其实预训练的很多数据来自于一些静态的数据。那当我们现在开始进入到agent的时代之后，其实我们大量的来自于怎么去提升模型的能力，或者说帮我们的应用做得更好的能力，来自于模型和应用的紧密结合，以及在客户的使用场景当中的紧密的数据联调。所以从这个角度上来说，我们觉得在我们的如果看AI的五个层面的话，第一个应用层，第二个是模型层，然后在下面是AI Infra类似云计算，再到下面的芯片层的话，我们觉得在这个agent的时代，模型和应用的紧密配合是一个更关键的事情。

Speaker #3: Great, thank you very much for your question. I think that the goal and purpose of the establishment of the ATH business group is very much connected to the era that we're now in, as of the end of 2025, and going into the first few months of 2026.

Eddie Wu: Great. Thank you very much for your question. I think that the goal and purpose of the establishment of the ATH business group is very much connected to the era that we're now in, as of the end of 2025 and going into the first few months of 2026, in terms of the development of AI. You know, we're now in the agent-driven era of AI development. This is different from the earlier period of AI development. In the agentic AI era, we need to achieve a very close integration of model with application. In the earlier AI era, a lot of model training data was static data.

Speaker #3: In terms of the development of AI, you know, we're now in the agent-driven era of AI development. And this is different from the earlier period of AI development. In the agentic AI era, we need to achieve very close integration of model with application.

Speaker #3: In the earlier AI era, a lot of model training data was static data, but in the agentic era, we need to enhance the integration between models and applications, and achieve tight integration. A lot of the data is now coming from the customer side.

Eddie Wu: In the agentic era, we need to enhance the integration between models and applications, and achieve tight integration. A lot of the data is now coming from the customer side. If you look at the different layers involved in AI deployment from application model, the AI infrastructure, through to chips. I think what's most different and most important about the agentic AI era is the need to achieve this tight integration between application and model. That's the critical priority.

Speaker #3: So, if you look at the different layers involved in AI deployment—from application, model, the AI, infrastructure, through to chips—I think what's most different and most important about the agentic AI era is the need to achieve this tight integration between application and model.

Speaker #3: That's, the critical priority.

Speaker #4: 好，然后我再来解释一下我们这个 ATH 内部的几个业务之间的关联吧。就是说，从我们现在行业看到的未来发展趋势来看，我们也觉得已经看得非常清楚。未来的 AI agent 在应用层会有一个生态创新，会非常丰富。在应用层，各类应用也会非常多样化。那在应用层，我们自己的布局是，我们会有一个自己的千问 APP，作为我们在应用层的一个 to C 的个人助理。我们希望把我们的武功打造成为在中国企业面向 to B 应用层会有非常多行业应用、垂直应用，或者说各类不同场景的 AI agent 的应用，再去支持各个行业的发展。所以在应用层之外，我们还需要有一个强大的 MASS 业务。其实 MASS 业务是贯穿模型和应用层之间的一个渠道，而 MASS 业务将会在支持我们自己内部应用之外，还需要通过一个强大的 MASS 业务来支持外部更多丰富多彩的 AI 行业应用。我们觉得这个市场价值和市场空间也会非常大。所以从这个角度来讲，我们认为 AI 应用层会成为未来模型、模型 AI token 最大的一个分销渠道。而最强的模型能力会吸引更多应用来使用我们的模型，一款更加高效、能力更强的 MASS 产品将会把这两者之间衔接得更好。这是我们在这个事业群当中设计的一个业务逻辑。

Jiang Fan: 好，然后我再来解释一下我们这个ATH内部的几个业务之间的关联吧。就是从我们的从现在行业看到的未来的发展趋势来说，我们也觉得已经看得非常清楚，就是说未来的AI agent在应用层会有一个这个生态会创新，会非常，会那个非常多，然后这个在应用层的各类的应用也会非常的丰富。那么在这个应用层呢，我们的自己的布局，我们觉得我们会有一个自己的千问App，作为我们在这个应用层的一个to C的个人助理。那我们希望把我们的悟空打造成为一个在中国企业面向to B的一个个人助理。但同时我们，我们觉得在AI应用层会有非常多的各种行业应用，或者垂直应用，或者说各类不同场景的AI agent的应用，再去支持各个行业的发展。所以我们在，在这个，在这个应用层之外，我们还需要有一个我们强大的一个MaaS，MaaS业务。其实MaaS业务是贯穿就是在模型和应用层之间的一个渠道。而MaaS业务将会在支持我们自己的内部的应用之外，我们还需要通过一个强大的MaaS业务来支持外面更多的丰富多彩的，丰富多彩的这类AI的这些行业应用。那我们觉得这个市场价值，市场空间也会，也会非常大。所以从这个角度上而言，我们觉得AI应用层是未来的模型，模型AI token的一个最大的，最大的一个分销渠道。而最强的一个模型能力会吸引更多的应用来使用我们的模型，而一个更加高效的，更加高效或者更能力更强的一个MaaS产品，将会把这两者之间衔接得更好。这是我们在这个事业群当中设计的一个业务逻辑。

Eddie Wu: Next, let me address the interconnection and synergies among the different businesses in relation to ATH. If you look at the trends of where this industry is going, and we think we see these trends very clearly, the AI agents will be tightly integrated together with the application layer. There will be a multitude of highly diverse applications in the to consumer or to C space. We're strongly developing the Qwen App as a personal assistant for individuals. In the to B space, we're positioning Wukong as a to B assistant.

Speaker #3: next let me, address the, interconnection and synergies, among the different, businesses. in relation to, ATH, if if you look at the, the the trends of where this industry is going, and and we think we see these, trends very clearly, the, AI agents will be, tightly, integrated together with the, application, layer.

Speaker #3: And there will be a multitude of highly diverse applications. In the to-consumer, or to-C space, we are strongly developing the Q1 app as a personal assistant for individuals. And in the to-business space, we are positioning Wukong as a to-B assistant.

Eddie Wu: In the AI application layer, there will be a multitude of different industry and vertically specialized applications to serve different industry use cases. All of this needs to be supported by a very robust model-as-a-service MaaS layer. MaaS supports, of course, our own internal applications as well as a multitude of external and industry-specific use cases that leverage AI. In this context, we see massive value that we can provide and a huge total addressable market or TAM. Going forward, we see the AI application layer as the main channel through which tokens will be distributed.

Speaker #3: In the AI application layer, there will be a multitude of different industry and vertically specialized applications to serve different industry use cases, and all of this needs to be supported by a very robust Model-as-a-Service—MaaS—layer. So, MaaS supports, of course, our own internal applications, as well as a multitude of external and industry-specific use cases that leverage AI.

Speaker #3: So, in this context, we see massive value that we can provide and a huge total addressable market, or TAM. So, going forward, we see the AI application layer as the main channel through which tokens will be distributed.

Eddie Wu: The stronger the model capabilities that you can offer at the MaaS layer, the more attractive and compelling all of these different offerings will be to customers. That is the business logic that we have laid out within this new business unit.

Speaker #3: And, the stronger the model capabilities that you can offer at the mass layer, the more attractive and compelling all of these different offerings will be to customers.

Speaker #3: So that is the business logic that we have, laid out within this new business unit.

Speaker #4: 所以如果从模型和应用层这一层来看，我们的优先级毫无疑问是打造智能能力最强的模型，因为只有最强的模型才能驱动各行各业的应用场景的拓展，也只有最强的模型才能够吸引各行各业的应用来使用我们的 MASS 业务。但是我想特别强调的，其实如何打造最强的模型，才需要与我们的各类行业、我们自己的 To C、To B 的应用，以及通过 MASS 连接各类行业的应用，让更多的用户来使用我们的模型，逐渐打通这个数据飞轮和业务闭环。通过这样的方式，通过更多的场景、更多的数据、更多的用户来迭代我们模型的能力，逐渐形成一个数据飞轮，才能持续地提升模型的能力。这也是我们现在成立 ATH 这个事业群的一个原因。所以我想特别总结一下，就是我们的优先级是提升模型能力，但是提升模型能力需要我们在 ATH，整个模型和应用端和 MASS 端的共同努力，才能实现长期的模型能力提升。

Jiang Fan: 所以如果从模型和应用层这一层来看，我们的优先级毫无疑问是打造智能能力最强的模型。因为只有最强的模型才能驱动各行各业的这种应用场景的拓展，也只有最强的模型才能够吸引各行各业的应用来使用我们的MaaS业务。但是我想特别强调的，其实如何打造最强的模型，才需要与我们的各类的行业，以我们自己的to C、to B的应用，以及通过MaaS连接各类行业的应用，让更多的用户来使用我们的模型，逐渐打通这个数据飞轮和业务闭环。通过这样的方式，通过更多的场景、更多的数据、更多的用户来迭代我们的模型的能力，逐渐形成一个数据飞轮，才能这样持续地去提升模型的能力。这也是我们现在成立ATH这个业务事业群的一个原因。所以我想特别总结一下，就是我觉得我们的优先级是提升模型能力，但是提升模型能力需要我们在ATH整个模型和应用端以及MaaS端的共同努力，才能够长期地提升模型能力。

Eddie Wu: From the perspective of both the model and the application layers, our top priority absolutely is to develop the most intelligent models. I really need to emphasize that only when you have the most powerful models can you truly drive the deployment of AI applications across all kinds of different industries. Only with the strongest models can you attract applications from across diverse industries to adopt our MaaS offering. However, in order to build the most robust models, you need to have very close collaboration with various industries and with our own 2C and 2B applications to connect with our MaaS applications across all kinds of different industries and use cases.

Speaker #3: So from the perspective of both the model and the application layers, our top priority absolutely is to develop the most intelligent models. And I really need to emphasize that only when you have the most powerful models can you truly drive the deployment of AI applications across all kinds of different industries.

Speaker #3: Only with the strongest models can you attract applications from across diverse industries to adopt our mass offering. However, in order to build the most robust models, you need to have very close collaboration with various industries, and with our own, to see and to be applications.

Speaker #3: To connect with our mass to applications across all kinds of different industries and use cases, we need to get more users to leverage and make use of our models.

Eddie Wu: We need to get more users to leverage and make use of our models in order to gradually be able to leverage the data flywheel effect. Only in that way can we continuously enhance the capabilities of our models. That's one of the reasons why we have established the ATH business unit at this time. To summarize, I would say our top priority is definitely to enhance model capabilities. However, to enhance model capabilities requires concerted efforts across the entire model pipeline as well as on the application and infrastructure sides in order to achieve sustained improvements over the long term.

Speaker #3: In order to gradually be able to leverage the data flywheel effect, only in that way can we continuously enhance the capabilities of our models. So, that's one of the reasons why we have established the ATH business unit at this time.

Speaker #3: So, to summarize, I would say our top priority is definitely to enhance model capabilities. However, to enhance model capabilities requires concerted efforts across the entire model pipeline, as well as on the application and infrastructure sides, in order to achieve sustained improvements.

Speaker #3: Over the the long term.

Speaker #1: Next question, please.

Operator: Next question, please.

Speaker #2: Thank you. Your next question comes from Joyce Chu at Bank of America. Please go ahead.

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

Joyce Ju: Good evening management. Congrats on the solid progress you've made in cloud and AI, and thanks for taking my question. My question is, we see CMR growth slowing notably in the December quarter, given the macro pressures. We have seen China's online retail sales only up 2% year-over-year in Q4 2025. More recently, NBS data point to a re-acceleration in January and February. Could you share your latest view on the CMR trends heading into the March quarter and whether you have started to see any improvement in consumer sentiment? Thanks.

Speaker #1: Good evening, management. Congrats on the solid progress you've made in cloud and AI, and thanks for taking my question. My question is, we see CMR growth slowing notably in the December quarter, given the macro pressures.

Speaker #1: We have seen China's online retail sales only up 2% year over year in the fourth quarter '25, but more recently, MBS data point to a re-acceleration in January and February.

Speaker #1: Could you share your latest view on the CMR trends heading into the March quarter, and whether you have started to see any improvement in consumer sentiment?

Speaker #1: Thanks.

Speaker #4: 好，呃，管理层晚上好。呃，也祝贺你们在，呃，云和AI方面取得的，呃，扎实的这个进展。那我的问题是，呃，关于CMR，我们看到增速放缓，尤其在12月份季度，呃，鉴于，呃，中国总体线上零售方面的这个宏观压力，我们看到，呃，25年的第四季度，呃，这个总体，呃，这个在线零售的，呃，增长，呃，只有，呃，呃，没听清百分之多少。呃，那么最近，啊，我们还是看到1月和2月这个，呃，在线零售的增速是重新加速的。那是不是可以请你们，呃，介绍一下，呃，进入到3月份季度，你们对于CMR趋势的，呃，最新的看法，然后消费者端你们是不是，呃，开始看到有什么的，呃，改善？谢谢。

[Analyst]: 管理层晚上好。祝贺你们在云和AI方面取得的扎实进展。那我的问题是，关于CMR，我们看到增速放缓，尤其在十二月份季度，鉴于中国总体线上零售方面的宏观压力，我们看到2025年的第四季度，这个总体在线零售的增长只有……

[Translator]: 管理层晚上好。祝贺你们在云和AI方面取得的扎实进展。那我的问题是，关于CMR，我们看到增速放缓，尤其在十二月份季度，鉴于中国总体线上零售方面的宏观压力，我们看到2025年的第四季度，这个总体在线零售的增长只有……

[Analyst]: 没听清百分之多少。那么最近我们还是看到一月和二月这个在线零售的增速是重新加速的，那是不是可以请你们介绍一下，进入到三月份季度，你们对于CMR趋势的最新的看法，然后消费者端你们是不是开始看到有什么的改善？谢谢。

[Translator]: 没听清百分之多少。那么最近我们还是看到一月和二月这个在线零售的增速是重新加速的，那是不是可以请你们介绍一下，进入到三月份季度，你们对于CMR趋势的最新的看法，然后消费者端你们是不是开始看到有什么的改善？谢谢。

Speaker #3: 呃，我来回答一下这个问题。对，刚才你也提到，呃，12月季度因为宏观消费疲软，暖冬以及今年春节比较晚等因素，呃，使得我们12月度增长受到了比较大的挑战。呃，同时因为大促期延长，我们在消费者权益投资较往年也有所增加。呃，所以我们12月季度的CMR跟电商利润都有放缓。呃，那么我们也看到，呃，今年一季度以来，我们看到消费复苏还是非常明显的。那么同时在我们计时零售战略的共同拉动下，我们的实物电商成交跟CMR增速都有显著回升。那我们电商的利润也有显著的改善。

[Company Representative] (Alibaba Group): 刚才你也提到，十二月季度，因为宏观消费疲软、暖冬以及今年春节比较晚等因素，使得我们十二月季度增长受到了比较大的挑战。同时因为大促季延长，我们在消费者权益投资较往年有所增加，所以我们十二月季度的CMR跟电商利润都有放缓。那么我们也看到，今年一季度以来，我们看到消费复苏还是非常明显的。那么同时在我们即时零售战略的共同拉动下，我们的实物电商成交跟CMR增速都有显著回升，我们电商的利润也有显著的改善。

Joe Tsai: 刚才你也提到，十二月季度，因为宏观消费疲软、暖冬以及今年春节比较晚等因素，使得我们十二月季度增长受到了比较大的挑战。同时因为大促季延长，我们在消费者权益投资较往年有所增加，所以我们十二月季度的CMR跟电商利润都有放缓。那么我们也看到，今年一季度以来，我们看到消费复苏还是非常明显的。那么同时在我们即时零售战略的共同拉动下，我们的实物电商成交跟CMR增速都有显著回升，我们电商的利润也有显著的改善。

Speaker #4: Thank you for your question. Indeed, in the December quarter, weak macro consumption, a warm winter, and the later timing of the Chinese New Year challenged growth for the December quarter. Due to the extended promotional season, our investments in consumer benefits increased compared to previous years.

Eddie Wu: Thank you for your question. Indeed, in the Q3, weak macro consumption, a warm winter, and the later timing of the Chinese New Year challenged the growth for the Q3. And due to the extended promotional season, our investments in consumer benefits increased compared to previous years. As a result, the CMR and EBITDA trend softened. Going into the Q4 with the improving consumer sentiment that we've observed and momentum from our quick commerce strategy, our physical goods GMV and CMR trend have significantly recovered from the Q3. EBITDA is expected to improve accordingly.

Speaker #4: So as a result, the CMR and EBITDA trend softened. going into the March quarter with, the improving consumer sentiment that we've observed and, momentum from our quick commerce strategy, our physical goods GMV and CMR trend, have significantly recovered from the December quarter and, EBITDA as expected to, improve accordingly.

Operator: All right. Let's move on to the next question.

Speaker #1: on to the next question.

Speaker #2: Thank you. Your next question comes from Gary Yu at Morgan Stanley. Please go ahead.

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

Speaker #5: Hi. thank you, management, for the opportunity. my question is related to quick commerce. I understand that, you know, in the past couple of months, we have achieved certain milestone in terms of GDV market share and also UE improvement.

Gary Yu: Hi. Thank you management for the opportunity. My question is related to quick commerce. I understand that, you know, in the past couple of months, we have achieved certain milestone in terms of GMV market share and also unit improvement. How should we look at the priority going forward? Are we aiming for, you know, the, you know, market share, or, you know, hoping to take this opportunity to improve unit economics, reduce loss? How should we look at the synergy between quick commerce and traditional e-commerce? How should we see these synergy to translate into CMR better growth going forward? Thank you.

Speaker #5: how should we look at the, priority going forward? are we aiming for, you know, you know, market share, or, you know, hoping to take this opportunity to, to improve, unit economics, reduce loss, and how should we look at the synergy, between quick commerce and, traditional e-commerce and how should we see these synergy to translate into CMR, better growth going forward?

Speaker #5: Thank you.

Speaker #4: 好，感谢管理层接受我的提问。呃，我的问题是关于及时零售这一方面，呃，我知道过去几个月，啊，公司已经，啊，在，呃，就是市场份额还有UE改善这些方面取得了一些，呃，阶段性的成果。那么面对未来，呃，我们的优先级会是什么？呃，是市场份额还是希望利用这个机会来进一步的优化UE和，呃，收窄亏损？呃，另外我们应该如何看待及时零售和传统电商之间的，呃，协同？呃，并且，呃，这些协同，呃，将来，啊，呃，会如何转化为，呃，CMR更快的一个增速？谢谢。

[Analyst]: 好，感谢管理层接受我的提问。我的问题是关于即时零售这一方面。我知道过去几个月

[Translator]: 好，感谢管理层接受我的提问。我的问题是关于即时零售这一方面。我知道过去几个月

Eddie Wu: 公司已经在市场份额，还有UE改善这些方面取得了一些阶段性的成果。那么面对未来，我们的优先级会是什么？是市场份额，还是希望利用这个机会来进一步优化UE和收窄亏损。另外我们应该如何看待即时零售和传统电商之间的协同，并且这些协同将来会如何转化为CMR更快的增速。谢谢。

Speaker #3: 呃，我来回答这个问题。对，呃，我们继续看到在市场份额提升的同时，呃，我们通过物流效率提升、商业化能力的改善，还有我们订单结构的优化，那它们进一步驱动了优异的这个明显的，就是，就是我们的优异还是在持续的优化中。呃，那么我们认为，呃，未来几个季度我们的优异会进一步的好转。呃，那，那么，嗯，

[Company Representative] (Alibaba Group): 我来回答这个问题。我们继续看到在市场份额提升的同时，我们通过物流效率提升、商业化能力的改善，还有我们订单结构的优化，那他们进一步驱动了UE的明显的，就是我们的UE还是在持续的优化中。那么我们认为，未来几个季度我们的UE会进一步的好转。

Joe Tsai: 我来回答这个问题。我们继续看到在市场份额提升的同时，我们通过物流效率提升、商业化能力的改善，还有我们订单结构的优化，那他们进一步驱动了UE的明显的，就是我们的UE还是在持续的优化中。那么我们认为，未来几个季度我们的UE会进一步的好转。

Speaker #4: Certainly. While, while growing our market share, we have, continued to significantly improve UE. Driven by improvement in fulfillment logistics efficiency, by improvement in monetization, as well as by order mix optimization, driven by those factors we expect to further optimize UE in the coming quarters.

Eddie Wu: Certainly. Well, while growing our market share, we have continued to significantly improve UE driven by improvement in fulfillment logistics efficiency, by improvement in monetization, as well as by order mix optimization. Driven by those factors, we expect to further optimize UE in the coming quarters.

Speaker #3: 呃，我们也看到过去一年，闪购对平台整体的拉动明显。嗯，包括闪购在内的电商大盘年度活跃买家增长了1.5亿。呃，实物电商的年度活跃买家增长了1亿。那么淘宝实物电商年度活跃买家增长超过了过去三年的总和。呃，那新的用户相比成熟用户短期的客单价跟购买频次相对较低，但我们希望在未来持续提升这部分的up值跟购买频次，这也是未来平台几年增长的新引擎。呃，那么同时我们也看到闪购对相关品类拉动明显，特别是对食品、生鲜、健康等相关品类拉动明显。那同时也推动了盒马、猫超等计时零售业务的加速发展。

[Company Representative] (Alibaba Group): 我们也看到过去一年闪购对平台整体的拉动明显。包括闪购在内的电商大盘年度活跃买家增长了1.5亿。食物电商的年度活跃买家增长了1亿，那么淘宝食物电商年度活跃买家增长超过了过去三年的总和。那新的用户相比成熟用户短期的客单价跟购买频次相对较低，但我们希望在未来持续提升这部分的ARPU值跟购买频次，这也是未来平台几年增长的新引擎。那么同时我们也看到闪购对相关品类拉动明显，特别是对食品、生鲜、健康等相关品类拉动明显，那同时也推动了盒马、猫超等即时零售业务的加速发展。

Joe Tsai: 我们也看到过去一年闪购对平台整体的拉动明显。包括闪购在内的电商大盘年度活跃买家增长了1.5亿。食物电商的年度活跃买家增长了1亿，那么淘宝食物电商年度活跃买家增长超过了过去三年的总和。那新的用户相比成熟用户短期的客单价跟购买频次相对较低，但我们希望在未来持续提升这部分的ARPU值跟购买频次，这也是未来平台几年增长的新引擎。那么同时我们也看到闪购对相关品类拉动明显，特别是对食品、生鲜、健康等相关品类拉动明显，那同时也推动了盒马、猫超等即时零售业务的加速发展。

Speaker #4: In terms of the positive impact that quick commerce is bringing to our conventional e-commerce business and to our entire ecosystem, we saw a very significant increase in AACs on the platform in the past year. Our AAC number increased to 150 million in 2025, including 100 million conventional e-commerce physical goods AACs, which is more than the previous three years combined.

Eddie Wu: In terms of the positive impact that quick commerce is bringing to our conventional e-commerce business and to our entire ecosystem, we saw a very significant increase in AACs on the platform in the past year. Our AAC number increased 150 million in 2025, including 100 million conventional e-commerce physical goods AACs, which is more than the previous three years combined. Now new consumers' ARPU and purchase frequency are lower than that of existing users. So we aim to continually increase their ARPU and purchase frequency, which will serve as a new growth engine for our platform in the coming years. Quick commerce is clearly driving sales in various categories, such as food, fresh produce, and healthcare, and is contributing to Freshippo and Tmall Supermarket's accelerated growth.

Speaker #4: Now, new consumers' RPU and purchase frequency are lower than that of existing users, so we aim to continually increase their RPU and purchase frequency, which will serve as a new growth engine for our platform in the coming years.

Speaker #4: Quick commerce is clearly driving sales in various categories, such as food and fresh produce and healthcare, and is contributing to Fresh IPO and Tmall Supermarkets’ accelerated growth.

Speaker #3: 呃，那么关于未来的发展预期，那么首先我们维持二八财年计时零售整体交易规模过万亿的目标。嗯，在此规模基础上，我相信我们可以实现规模化的正向现金流。那同时我们预计二九财年计时零售业务板块将实现整体盈利。

[Company Representative] (Alibaba Group): 关于未来的发展预期，首先我们维持FY28即时零售整体交易规模过万亿的目标。在此规模基础上，我相信我们可以实现规模化的正向现金流。同时我们预计FY29即时零售业务板块将实现整体盈利。

Joe Tsai: 关于未来的发展预期，首先我们维持FY28即时零售整体交易规模过万亿的目标。在此规模基础上，我相信我们可以实现规模化的正向现金流。同时我们预计FY29即时零售业务板块将实现整体盈利。

Eddie Wu: In terms of the outlook, we maintain our target of achieving over RMB 1 trillion in quick commerce GMV by FY28. We expect to generate positive cash flow when the GMV target is achieved, and we expect the quick commerce business to be profitable in FY29.

Speaker #4: In terms of the outlook, we maintain our target of achieving over RMB 1 trillion in quick commerce GMV by FY28. We expect to generate positive cash flow when the GMV target is achieved, and we expect the quick commerce business to be profitable in FY29.

Speaker #3: 呃，闪购跟计时零售已从新客获取促进用户活跃，满足用户多元化的消费场景，拉动成交跟商业化以及物流基建等多方面，成为淘宝天猫电商板块的基石性业务。对于淘天在AI时代的长期发展起到至关重要的战略作用，未来两年我们会以实现整体规模过万亿的目标继续坚定投入，同时实现市场地位领先。

[Company Representative] (Alibaba Group): 闪购跟即时零售已从新客获取、促进用户活跃、满足用户多样化的消费场景、拉动成交跟商业化以及物流基建等多方面，成为淘宝、天猫电商板块的基石性业务，对于淘天的AI时代的长期发展起到至关重要的战略作用。未来两年，我们会以实现整体规模过万亿的目标，继续坚定投入，同时实现市场地位领先。

Joe Tsai: 闪购跟即时零售已从新客获取、促进用户活跃、满足用户多样化的消费场景、拉动成交跟商业化以及物流基建等多方面，成为淘宝、天猫电商板块的基石性业务，对于淘天的AI时代的长期发展起到至关重要的战略作用。未来两年，我们会以实现整体规模过万亿的目标，继续坚定投入，同时实现市场地位领先。

Speaker #4: Quick commerce has become a cornerstone of our e-commerce business, playing a strategically vital role in the AI era by driving customer acquisition, enhancing user engagement, fulfilling diverse consumer demands, increasing transactions, improving monetization, and supporting logistics infrastructure.

Eddie Wu: Quick commerce has become a cornerstone of our e-commerce business, playing a strategically vital role in the AI era by driving customer acquisition, enhancing user engagement, fulfilling diverse consumer demands, increasing transactions, and improving monetization, and supporting logistics infrastructure. We are committed to investing in quick commerce in the next two years towards achieving the CNY 1 trillion GMV target as a market leader.

Speaker #4: We are committed to investing in quick commerce in the next two years, toward achieving the RMB 1 trillion GMV target as a market leader.

Speaker #1: Operator, let's move on to the next question.

Lydia Liu: Operator, let's move on to the next question.

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

Operator: Thank you. Your next question comes from Alicia Yap at Citigroup. Please go ahead.

Alicia Yap: Hi, good evening, management. Thanks for taking my question. I have a question regarding your chip business T-Head, Pingtouge. There have been reports that Alibaba plans to spin off the T-Head unit as a separate listing. Can management provide any information of this? If so, what is the expected timeframe for this to occur? In the meantime, can you share more operating metrics? In addition to the 470,000 chips that you mentioned you ship to external customers, how we reconcile that number, the shipments to the revenue size? Also, what is the expected growth rate for your chip business in the coming year?

Speaker #1: Hi, good evening, management. Thanks for taking my questions. I have a question regarding your chip business, THAT, PingToker. So there have been reports that Alibaba plans to spin off the THAT unit as a separate listing.

Speaker #1: Can management provide any information on this, and if so, what is the expected timeframe for this to occur? And in the meantime, can you share more operating metrics?

Speaker #1: So, in addition to the 400, 70,000 chips that you mentioned you ship to external customers, how will you reconcile that number, the shipments, to the revenue size, and also, what is the expected growth rate for your chip business in the coming year?

Speaker #1: And I think you mentioned, currently it's a 60% of this is, from external customers. So, maybe can you also share with us, are these chips, you know, for external customers mainly used for inferencing?

[Analyst]: I think you mentioned, currently it's 60% of business are from external customer. Maybe can you also share with us are these chips, you know, for external customer mainly used for inferencing? For internal, these are used for model training and also inferencing. Lastly, how do the Pingtouge chips or T-Head chips compare to other domestic chips? If management can share some detail will be great. Thank you.

Alicia Yap: I think you mentioned, currently it's 60% of business are from external customer. Maybe can you also share with us are these chips, you know, for external customer mainly used for inferencing? For internal, these are used for model training and also inferencing. Lastly, how do the Pingtouge chips or T-Head chips compare to other domestic chips? If management can share some detail will be great. Thank you.

Speaker #1: And then for internal, is it used for model training and also inferencing? And then lastly, how do the PingToker's chips or THAT chips compare to other domestic chips? If management can share some detail, that would be great.

Speaker #1: Thank you.

Speaker #3: 好，感谢管理层接受我的提问。呃，我想问一些关于你们，呃，芯片业务，就是平头哥方面的问题。那么最近有报告，呃，有报道说阿里打算将平头哥，啊，分拆上市，啊，管理层是否可以对此提供一些，呃，信息？呃，另外是不是可以，呃，提供一些平头哥的一些，呃，呃，业绩，呃，的数字，呃，比如说刚才讲了，啊，就除了你们，呃，交付的47万个芯片之外，呃，这个收入是，呃，呃，多少，呃，那么芯片业务，比如说未来一年的预期的增长率是，呃，多少？然后刚才你，你们好像讲到了，呃，其中，有50%，啊，是来自，啊，60%，60%是来自外部客户的，呃，需求。那是不是也可以，呃，展开介绍一下这些芯片，呃，就是提供给外部客户的芯片主要是用于推理吗？呃，那如果是推，呃，内部使用的话是用于模型的训练，啊，还是，呃，还用在其他的方面？呃，另外平头哥的这个芯片，呃，相比较其他的国产芯片，啊，是怎么样的一个一个比较，能不能展开介绍一些细节？谢谢。

[Analyst]: 感谢管理层接受我的提问。我想问一些关于你们芯片业务，就是平头哥方面的问题。最近有报道说阿里打算将平头哥分拆上市，管理层是否可以对此提供一些信息？另外是不是可以提供一些平头哥的业绩数字，比如说刚才讲了，就除了你们交付的47万个芯片之外，这个收入是多少，那么芯片业务比如说未来一年的预期的增长率是多少？然后刚才你们好像讲到了，其中有50%是来自……

[Translator]: 感谢管理层接受我的提问。我想问一些关于你们芯片业务，就是平头哥方面的问题。最近有报道说阿里打算将平头哥分拆上市，管理层是否可以对此提供一些信息？另外是不是可以提供一些平头哥的业绩数字，比如说刚才讲了，就除了你们交付的47万个芯片之外，这个收入是多少，那么芯片业务比如说未来一年的预期的增长率是多少？然后刚才你们好像讲到了，其中有50%是来自……

[Analyst]: 60%是来自外部客户的需求，那是不是也可以展开介绍一下这些芯片，就提供给外部客户的芯片主要是用于推理吗？那如果是内部使用的话，是用于模型的训练，还是用在其他的方面？另外平头哥的这个芯片，相比较其他的国产芯片，是怎么样的一个比较，能不能展开介绍一些细节？谢谢。

[Translator]: 60%是来自外部客户的需求，那是不是也可以展开介绍一下这些芯片，就提供给外部客户的芯片主要是用于推理吗？那如果是内部使用的话，是用于模型的训练，还是用在其他的方面？另外平头哥的这个芯片，相比较其他的国产芯片，是怎么样的一个比较，能不能展开介绍一些细节？谢谢。

Speaker #4: 好，谢谢，谢谢。嗯，非常感谢你这个问题。平头哥是阿里，阿里巴巴全栈AI布局的重要一环。我也想趁此机会详细介绍一下。呃，在当前的国内的AI芯片生态中，我们觉得平头哥的技术能力和产品能力都处于第一梯队。我们的产品覆盖从训练、微调到推理的完整AI工作流。我们的平头哥AI芯片已经通过阿里云在训练场景“百炼”的推理场景深度大规模的使用，同时在阿里云的公共云和混合云产品中，我们也有60%以上的平头哥芯片在被外部的商业化客户使用。而外部的商业化客户涵盖互联网、金融、智能驾驶和智能制造多个行业，这些外部的商业化客户在用平头哥的芯片当中，在用他们的训练和推理场景都有使用。而且我们在平头哥的软件栈上具备与CUDA生态系统的一个良好的适配性，所以我们的客户在迁移他们的系统项目过程中，花的时间非常少。那另外一点我觉得平头哥对于阿里巴巴而言的一个重要性，除了是因为我们希望在国产芯片相对来说比国外的芯片在各方面的制造制程、芯片性能方面有一定落后的情况下，我们希望与阿里巴巴的云基础设施以及通义千问的模型有更深度的协同设计，以提升更好的性价比。所以这个是我们做平头哥芯片与外面的这些芯片公司不太一样的一个点。所以更多的是希望可以创造我们更高的AI能力的性价比，也可以成为我们今后百炼平台能够降低推理成本的重要产品。对，然后还有一个，除了在整体提升我们的AI效率、降低成本之外，我觉得还有一个在现在中国AI行业特殊情况下的重大价值，就是整个AI算力的供应保障。因为在现在，我觉得未来三到五年，全球的AI算力都会处于一个非常紧缺的阶段，尤其是在中国市场会更加紧缺。那作为在中国市场唯一具备自研芯片能力的云计算公司，平头哥对于阿里集团来说也会是至关重要，能够提供更多的AI算力供给，将会帮助我们的云和AI业务，包括我们的MARS业务，获得更高的增长动能。啊，OK，thank you very much for this question. And I'd like to take the opportunity to expand on this a bit because THAD is a very important component of Alibaba's company-wide AI.

Jiang Fan: 谢谢。非常感谢你这个问题。平头哥是阿里巴巴全站AI布局的重要一环，我也想趁此机会详细介绍一下。在当前的国内的AI芯片生态中，我们觉得平头哥的技术能力和产品能力都处于第一梯队。我们的产品覆盖从训练、微调到推理的完整AI工作流。我们的平头哥的AI芯片已经通过阿里云在训练场景、百炼的推理场景深度大规模地使用。同时在阿里云的公共云和混合云产品中，我们也有60%以上的平头哥的芯片在被外部的商业化客户使用。而外部的商业化客户涵盖互联网、金融、智能驾驶和智能制造多个行业。这些外部的商业化客户在用平头哥的芯片当中，在训练和推理场景都有使用。而且我们在平头哥的软件栈上具备与CUDA生态系统的良好的适配性，所以我们的客户在迁移他的系统当中……

Jiang Fan: 迁移他系统的项目过程当中，花的时间非常少。另外一点，我觉得平头哥对于阿里巴巴而言一个重要性，除了是因为我们希望在国产芯片相对来说，比国外的芯片在各方面的制造制程啊，各方面的这个芯片的性能方面，与国外的芯片有一定落后的情况下，我们希望在与阿里巴巴的云的基础设施以及通义千问的模型有更深度的协同设计，以提升更好的性价比。所以这个是我们做平头哥芯片的一个与外面的这些芯片公司不太一样的一个点。所以更多的是希望可以创造我们更高的一个AI能力的一个性价比，也可以成为我们今后百炼平台能够降低我们百炼平台推理成本的一个重要产品吧。那然后还有一个，除了在整体提升我们的整体的AI效率、降低成本之外，我觉得还有一个在现在中国的这个AI行业一个特殊情况下，我觉得有一个对我们的一个重大价值，就是整个AI算力的供应保障。因为在现在我觉得未来三到五年，全球的AI算力都会处于一个非常紧缺的三到五年，尤其是在中国市场更会紧缺。那作为在中国市场唯一具备自研芯片能力的云计算公司，那平头哥对于阿里集团来说也会是至关重要。能够提供更多的AI算力的供给，将会帮助我们的云和AI业务，包括我们的MaaS业务获得一个更高的增长动能。

[Analyst]: Okay. Thank you very much for this question. I'd like to take the opportunity to expand on this a bit because T-Head is a very important component of Alibaba's company-wide AI strategy. In the context of China's domestic AI chip ecosystem, we firmly believe that T-Head is ranked in the top tier of the domestic AI chip ecosystem in terms of the technology capabilities and product capabilities.

Eddie Wu: Okay. Thank you very much for this question. I'd like to take the opportunity to expand on this a bit because T-Head is a very important component of Alibaba's company-wide AI strategy. In the context of China's domestic AI chip ecosystem, we firmly believe that T-Head is ranked in the top tier of the domestic AI chip ecosystem in terms of the technology capabilities and product capabilities.

Speaker #4: Strategy. So, in the context of China's domestic AI chip ecosystem, we firmly believe that THAD is ranked in the top tier of the domestic AI chip ecosystem in terms of the technology capabilities and product capabilities.

Speaker #4: Our products cover the entire AI workflow, from model training and fine-tuning through to inference. And our THAD AI chips are already in extensive, large-scale use via Alibaba Cloud, both for training workloads and for, uh, 百炼 inferencing use cases.

Eddie Wu: Our products cover the entire AI workflow from model training and fine-tuning through to inference. Our T-Head AI chips are already in extensive, large-scale use via Alibaba Cloud, both for training workloads and for inferencing use cases. At the same time, over 60% of our T-Head chips are being used by external commercial customers across Alibaba Cloud's public and hybrid cloud offerings. The external commercial clients span multiple industries, including internet finance, autonomous driving, and intelligent manufacturing. These external commercial customers are utilizing T-Head chips in both their training and inferencing workloads.

Speaker #4: at the same time, over 60% of, THAD chips are being used by external, commercial customers across Alibaba Cloud's, public and hybrid cloud offerings. the, external, commercial clients span multiple industries, including, Internet finance, autonomous driving, and intelligent, manufacturing.

Speaker #4: And these external commercial customers are utilizing THAD chips in both their training and inferencing workloads. Moreover, on the THAD software stack, we have excellent compatibility with the Linux ecosystem.

Eddie Wu: Moreover, on the T-Head software stack, we have excellent compatibility with the Linux ecosystem. Customers can migrate their systems easily without spending a lot of time on the migration. Another point I would make is that in my view, T-Head's significance to Alibaba lies not only in our aspiration to close the gap between domestically produced chips and foreign counterparts, foreign produced chips in terms of manufacturing processes and overall performance across various dimensions. Given that our chips still lag behind the foreign counterparts in performance in various respects, we aspire to engage in more profound co-design with Alibaba's cloud infrastructure and the Qwen model to provide improved cost effectiveness.

Speaker #4: So customers can migrate their systems easily, without spending a lot of time on the migration. Another point I would make is that, in my view, THAD's significance to Alibaba lies not only in our aspiration to close the gap between domestically produced chips and foreign counterparts—foreign produced chips—in terms of manufacturing processes and overall performance across various dimensions.

Speaker #4: But given that our chips still lag behind foreign counterparts in performance in various respects, we aspire to engage in more profound co-design with Alibaba's cloud infrastructure and the Q1 model, to provide improved cost-effectiveness.

Eddie Wu: This is one key differentiator in how we approach chip design at T-Head that sets us apart from other chip companies. Our primary goal is to create AI capabilities that offer superior value for money. This will make it a key product for the faintly speaking platform, allowing us to reduce inference costs going forward. Beyond generally improving our AI efficiency and reducing costs, there's another factor at play, namely the unique circumstances currently facing the AI industry in China. In that context, one significant benefit for us is the guaranteed supply of AI computing power. Because I believe that over the next three to five years, global AI computing power will be in extremely short supply, especially in the Chinese market.

Speaker #4: so this is one key differentiator, in how, we approach chip design at, at THAD that sets us apart from other, chip companies. our, our primary goal is to create AI capabilities that offer superior value, for money.

Speaker #4: This will make it a key product for the 百炼 platform, allowing us to reduce inference costs going forward. Beyond generally improving our AI efficiency and reducing costs, there's another factor at play, namely the unique circumstances currently facing the AI industry in China.

Speaker #4: in that context, one significant benefit for us is, the guaranteed supply, of AI computing power. because, I believe that over the next three to five years, global AI computing power will be in, extremely short supply, especially in the, Chinese market.

Speaker #4: As the only cloud computing company in the Chinese market with proprietary chip development capabilities, THAD is of paramount importance, therefore, to the Alibaba Group.

Eddie Wu: As the only cloud computing company in the Chinese market with proprietary chip development capabilities, T-Head is of paramount importance therefore to the Alibaba Group. Increasing the supply of AI computing power will help our cloud and AI businesses, including our MaaS business, to achieve stronger growth momentum.

Speaker #4: Increasing the supply of, AI computing power will help our cloud and AI businesses, including our mass business, to achieve stronger, growth momentum. 好，我在最后再稍微分享一下我们未来的一些预期吧。就平头哥，我们在前面两年历史上已经成功地商业化应用推出的芯片规模超过了47万片。那年化营收规模也达到了百亿级别。那在未来，在今年2027年，今年26以及明年的27年，我们预计平头哥可以生产的高质量的AI芯片的规模还会持续扩大。为为我们整个集团的AI业务提供充足的算力保障，也能够为整体的AI业务提供一个非常强大的一个增长动能。平同时，对未来的提升的盈利水平也会，未来提升盈利水平也会非常有帮助。那总的来说，平头哥的价值对阿里巴巴不仅是成本优化，而且更是供应保障吧。在算力稀缺的时代，我觉得对阿里巴巴的AI战略来说至关重要。所以平头哥有一些可能我们在未来并不排除去做，就是IPO，但是现在还没有一个明明确的时间表。呃，呃，呃，THAD over the past two years, we've successfully commercialized and, launched chips with total volume exceeding 470,000, units.

Jiang Fan: At T-Head, over the past two years, we've successfully commercialized and launched chips with total volume exceeding 470,000 units, with annual revenue reaching the CNY 10 billion level. Looking ahead to 2027, well, through 2026, this year through 2027, we expect T-Head's production capacity for high-quality AI chips to continue to expand. This will provide robust computing power support for our group's AI business and serve as a powerful growth driver for our overall AI initiatives. We also believe that future improvements in profitability will be achieved, further enhancing profit levels, which will also be very beneficial. Overall, T-Head's value to Alibaba goes beyond.

Speaker #4: With annual revenue reaching the $10 billion yuan level. Looking ahead to '27, well, through 2026, this year through '27, next year we expect THAD's production capacity for high-quality AI chips to continue to expand.

Speaker #4: This will provide robust computing power support for our group's AI business and serve as a powerful growth driver for our overall AI initiatives.

Speaker #4: We also believe that future improvement in profitability will be achieved, further enhancing profit levels, which will also be very beneficial. Overall, THAD's value to Alibaba goes beyond cost optimization; it primarily serves to ensure supply chain resilience. And in an era of scarce computing power, I see this as crucial to Alibaba's AI strategy.

Eddie Wu: Cost optimization. It primarily serves to ensure supply chain resilience, and in an era of scarce computing power, I see this as crucial to Alibaba's AI strategy. It is possible, and we don't rule out the idea of T-Head considering an IPO in the future, although we currently do not have any definitive timeline.

Speaker #4: So it is possible, and we don't rule out the idea of THAD considering an IPO in the future, although we currently do not have any definitive timeline.

Speaker #3: Next question, please.

[Analyst]: Next question, please.

Lydia Liu: Next question, please.

Speaker #2: Thank you. The next question comes from Yuan Liao at Citix. Please go ahead. 呃，管理层晚上好。嗯，感谢接受我的提问啊。呃，我的问题是关于你们提到的阿里巴巴集团AI战略的商业目标，未来五年的收入要突破1000亿美元。那管理层能否给出这一目标的更多细节？比如说，未来五年是到哪一年嘛，那这大概对应多少%的一个增长？同时呢，我们能否拆解一下这个增长的驱动，我们应该怎么去理解？基于我们规模化营收的一个增长，我们什么时候可以看到阿里云的margin有一个提升的趋势？谢谢。

Operator: Thank you. The next question comes from Yuan Liao at Citic Securities. Please go ahead.

Yuan Liao: 管理层晚上好。感谢接受我的提问。我的问题是关于你们提到的阿里巴巴集团AI战略的商业目标。未来五年的收入要突破一千亿美元，那管理层能否给出这一目标的更多的细节？比如说，未来五年是到二零三一年嘛，那这对应大概多少CAGR的一个增长。那同时呢，我们能否拆解一下这个增长的一个驱动，我们应该怎么去理解？基于我们规模化的营收的一个增长，那我们什么时候可以看到阿里云的margin有一个提升的趋势？谢谢。

Speaker #4: Uh, thank you for taking my question, management. My question is about the business objectives for your AI strategy that you just mentioned. Revenue for the next five years is expected to exceed $100 billion.

Eddie Wu: Thank you for taking my question, management. My question is about the business objectives for your AI strategy that you just mentioned. Revenue for the next five years is expected to exceed CNY 100 billion. Could you provide more details on this target? For example, if the next five years is through to 2031, what kind of CAGR would that correspond to in this five-year period? Could you also break out what will be driving that growth and how we should understand those drivers? Given this scalable growth in revenue, when can we expect to see sustained improvement in Alibaba Cloud's margins? Thank you.

Speaker #4: Could you provide more details on this target? For example, if the next five years is through to 2031, what kind of kiger would that correspond to in this five-year period?

Speaker #4: And could you also break out what will be driving that growth and how we should understand those drivers? Given this scalable growth in revenue, when can we expect to see sustained improvement in Alibaba Cloud's margins?

Speaker #4: Thank you. 好，呃，非常感谢你的问题。嗯，我觉得对于未来五年，AI与云相关的业务的营收突破，突破1,000亿美元，从我们的现在的市场增长的容量，以及我们现在的基础和我们的产品基础上来说，我们的目标和路径都是可见性还是比较强的。 thank you for your question. so 呃， yes, we, certainly believe that, within five years, revenues from our AI and cloud-related business, will exceed 100 billion, dollars.

Jiang Fan: 好，非常感谢你的问题。我觉得对于未来五年的AI与云相关的业务的营收突破一千亿美元，从我们现在的市场增长的容量，以及我们现在的基础，和我们的产品基础上来说，我们的目标和路径都是可见性还是比较强的。

Eddie Wu: Thank you for your question. Yes, we certainly believe that, within 5 years, revenues from our AI and cloud related business will exceed $100 billion. We think that is very clear, if you look at the market growth that we're seeing today, the strength of our product portfolio, and the roadmap to get there.

Speaker #4: we think that that is, very clear. if you look at the, market growth that we're, seeing today, the strength of our product portfolio, and the, the roadmap to get there.

Speaker #4: 我觉得最大的，最大的增长动能还是来自于AI，来自于AI大模型的能力的突破。我们看到在2026年，在这2026，2026年的这两个月，这几个月我们已经看到了非常明显的一些趋势，就是我们看到大模型开始具备了完成to B的复杂工作流的能力。当我们看到越来越多的公司内部在启用大模型，产生的agent在帮他完成端到端的工作任务的时候，其实我们整个的原来AI和云面向的这个IT预算的这个市场，其实发生了一个根本性的改变。也就是大量的企业在用TOKEN消耗的时候，他并不把TOKEN当成是他的IT预算，而是当把它当成了整，他会把它当成整个公司的生产或者研发成本，是他的生产资料的一部分。所以这是我们看到一个对未来的AI增长有一个长期性的最根本的，我们看到一个最根本的一个内在因素吧。 I think that the, major, driver, underlying all this really is, continued breakthroughs in the capabilities of, large AI models. and we certainly seen, a very clear trend, over the, past couple of months.

Jiang Fan: 我觉得最大的增长动能还是来自于AI，来自于AI大模型的能力的突破。我们看到在2026年，在这...

Jiang Fan: 二零二六年的这两个月，这几个月，我们已经看到了非常明显的一些趋势。就是我们看到大模型开始具备了完成to B的复杂工作流的能力。当我们看到越来越多的公司内部在启用大模型产生的agent，在帮他完成端到端的工作任务的时候，其实我们整个的原来AI和云面向的这个IT预算的这个市场，其实发生了一个根本性的改变。也就是大量的企业在用token消耗的时候，他并不把token当成是他的IT预算，而是把它当成整个公司的生产或者研发成本，是它的生产资料的一部分。所以这是我们看到一个对未来的AI增长有一个长期性的最根本的……

Jiang Fan: 我们看到一个最根本的一个内在因素吧。

Eddie Wu: I think that the major driver underlying all this really is continued breakthroughs in the capabilities of large AI models. We've certainly seen a very clear trend over the past couple of months, the first two months of 2026, whereby large models have now gained the capability to execute complex B2B workflows. More and more enterprises are deploying agents powered by large models to handle end-to-end business tasks. That marks a fundamental transformation in the way that the market looks at IT budgets. IT budgets traditionally allocated to AI and cloud services. The shift really is that many enterprises now when consuming tokens, don't treat token consumption as part of their IT budget any longer.

Speaker #4: The first two months of, 2026, whereby large models, have now, gained the capability to execute complex B2B, workflows. More and more enterprises are deploying, agents powered by large models to handle end-to-end, business tasks.

Speaker #4: And that marks a fundamental transformation in the way that the market looks at IT budgets. IT budgets were traditionally allocated to AI and cloud services.

Speaker #4: The shift really is that, many enterprises, now when consuming tokens don't treat token consumption as part of their IT budget, any longer. Instead, they see tokens, as part of their overall operational or R&D costs.

Eddie Wu: Instead, they see tokens as part of their overall operational or R&D costs. Tokens are a key component of their production inputs, not just a part of their IT budget. This is the most fundamental long-term factor that we see driving future AI growth.

Speaker #4: Tokens are a key component of their production inputs, not just a part of their IT budget. So this is the most fundamental long-term factor that we see driving future AI growth.

Jiang Fan: 我们觉得最大的三个增长动能来自于三个方面。第一方面，也就是以大模型驱动的MaaS业务做一个核心的增长引擎。而MaaS业务的增长，MaaS业务的应用方包括我们自己的应用，以及我们自己应用的客户，以及行业当中非常丰富多样的各类AI应用、应用场景，包括AI应用软件。那我们觉得这个有MaaS业务推动的增长，可能是对于未来AI和云的营收是一个核心关键的因素。然后第二点，对于AI云计算而言，还有一个非常重要的增量场景，也就是我们认为在未来基于公共的MaaS业务，我们会有一个很大的市场。但又在相当多的中大型企业，它还会有一个企业级的内部推理和训练市场，这个市场长期会继续存在。它并不是一个，它会，因为每个企业会根据它自己的业务的形式，以及它这个应用场景的安全性，或者它应用场景的一个特殊性。有一些应用场景会选择使用公共的MaaS API服务，有很多的应用场景还会基于它企业内私有化部署的应用场景，而这些应用场景也是我们阿里云AI基础设施一个非常大的增量场景。

Speaker #4: 我们觉得最大的三个，最大的增长动能来自于三个方面。第一方面也就是以以大模型驱动的MARS业务作为一个核心的一个增长引擎。而MARS业务的增长，MARS业务的应用方包括我们自己的应用，以及我们自己应用的客户，以及行业当中非常丰富丰富多样的各类AI应用应用场景，包括AI应用软件。那我们觉得这个有MARS业务推动的这个这个增长，可能是对于未来AI和云云的营收是是一个核心关键的一个因素。然后第二点，对于AI云计算而言，还有一个非常非常重要的增量场景，也就是我们认为在未来基于公共的一个MARS业务，我们会有一个很大的市场。但于在相当多的中大型企业，他还会有一个企业级的内部推理和训练市场。这个市场长期会继续存在，它并不是一个，它会会因为每个企业会根据它自己的业务的形式，以及它它这个应用应用场景的安全性，或者它应用场景的一个特殊性，有一些应用场景会选择使用公共的MARS API服务。有很多的应用场景还会基于它企业内私有化部署的应用场景。而这些应用场景也是我们阿里云AI AI基础设施一个非常大的一个非常大的一个增量场景。 I believe that the, largest drivers of growth will come from, three, areas. first is, the mass, driven business, which, really is the core growth engine.

Eddie Wu: I believe that the largest drivers of growth will come from three areas. First is the MaaS driven business, which really is the core growth engine. The growth of our MaaS business will be supported by a variety of different use cases, including our own applications, as well as a diverse array of AI application scenarios from across our customer base and across various different industries, including AI application software. We believe that the growth driven by MaaS initiatives will be a key driver of future revenue for both AI and cloud services. Secondly, for AI and cloud computing, there's another very important growth opportunity.

Speaker #4: And the growth of our mass business will be supported by a variety of different use cases, including our own applications, as well as a diverse array of AI application scenarios from across our customer base and across various different industries, including AI application software.

Speaker #4: And we believe that the growth driven by mass initiatives will be a key driver of future revenue for both AI and cloud services. But secondly, for AI and cloud computing, there's another very important growth opportunity.

Eddie Wu: Of course, we believe that public MaaS will be a substantial market in the future. In a considerable number of larger, medium, and large-sized enterprises, there'll also be a demand for enterprise-level internal inference and training, a new marketplace. That market will continue to exist in the long term. It's not one that will disappear simply because each enterprise makes decisions based on its own business model and the security requirements of its specific use case or the particularity of an application scenario. For some application scenarios, enterprises will opt to use public MaaS API services, while many others will be based on privately deployed solutions within the enterprise.

Speaker #4: of course, we believe that public mass, will, be a substantial market in the future. But in a considerable number of larger medium and and large sized enterprises, they'll also be a demand for enterprise level internal inference, and training.

Speaker #4: a new marketplace. and that market will continue to exist in the, long term. It's not one that will disappear simply because each enterprise makes decisions based on its own business model and the security requirements of its specific, use case, or the particularity of a an application scenario.

Speaker #4: so for some application scenarios, enterprises will opt to use public mass, API services, while many others will be based on privately deployed solutions within, the enterprise.

Eddie Wu: Those kinds of application scenarios represent a large incremental growth opportunity for Alibaba Cloud's AI infrastructure.

Speaker #4: So those kinds of, application scenarios represent a, a large incremental growth opportunity for Alibaba Cloud's AI infrastructure. 还有一个我们觉得被被我们很多人忽视的一个一个增长动能，就是其实对于以CPU为主的传统云计算，在这个AI agent的时代，其实有一个非常大的大的一个增长空间。传统的云计算是为IT工程师所设计的，也就是在中国可能有几百万或者说最多不超过超过1,000万的工程师，是潜在的在传统云计算的客户。但是当AI大模型创作的agent可能是数以数以十亿计的agent，他们运行环境，他们的运行环境需要有大量的传统以CPU为核心的传统云计算的支撑。他们需要他们需要传统的CPU，也需要数据库，也需要存储，也需要大量的memory来支撑支撑他们的长期来解决来支撑他们的长期运行。所以这个云计算传统云计算市场如如何转型成一个从面向人类使用的A人类的IT工程师中使用的一个云计算产品，变成非常适合于agent调用的云计算产品。我觉得这个增长空间也是也是非常巨大。而今年这个如何把传统的云计算变成更适合于agent调用的这样一个产品的转型，也是阿里云那个升级的重点。 third, there's another, important driver, important opportunity that I think tends to get, ignored, a lot of the time.

Jiang Fan: 还有一个我们觉得被很多人忽视的一个增长动能，就是其实对于以CPU为主的传统云计算，在这个AI agent的时代，其实有一个非常大的增长空间。传统的云计算是为IT工程师所设计的，也就是在中国可能有几百万，或者说最多不超过一千万的工程师是潜在的传统云计算的客户。但是当AI大模型创作的agent可能是数以十亿计的agent，他们的运行环境需要有大量的传统以CPU为核心的传统云计算的支撑，他们需要传统的CPU，也需要数据库，也需要存储，也需要大量的memory来支撑他们的长期运行。所以这个传统云计算市场，如何转型成一个从面向人类使用、人类的IT工程师使用的一个云计算产品，变成非常适合于agent调用的云计算产品，我觉得这个增长空间也是非常巨大。而今年这个如何把传统的云计算变成更适合于agent调用的这样一个产品的转型，也是阿里云的一个升级的重点。

Eddie Wu: Third, there's another important driver, important opportunity that I think tends to get ignored a lot of the time. I'm talking about CPU centric cloud computing, the traditional cloud computing, which still has significant room for expansion in this AI enabled era. Traditional cloud computing is designed for IT engineers, which in China may number a few million, say perhaps no more than 10 million, potentially traditional IT engineers. Those have been the traditional cloud computing customers. However, in the future, there could be billions of agents that are created by large AI models, and their operating environments.

Speaker #4: and I'm talking about CPU, centric, cloud computing, the traditional cloud computing. which still has significant, room for expansion in this AI, enabled, era. So traditional cloud computing is, designed, for IT engineers, which, in China, may number, a few million, say perhaps no more than 10 million.

Speaker #4: Potentially, traditional IT engineers—and those have been the traditional cloud computing customers. However, in the future, there could be billions of agents that are created by large AI models.

Speaker #4: and they're operating environments, the operating environments of these agents, will also require substantial support from traditional, CPU centric cloud computing. they need, these traditional CPUs as well as databases, storage, and large amounts of memory, to support their long-term problem solving and, sustained operations.

Eddie Wu: The operating environments of these agents will also require substantial support from traditional CPU-centric cloud computing. They need these traditional CPUs as well as databases, storage, and large amounts of memory to support their long-term problem-solving and sustained operations. The challenge lies in transforming the traditional cloud computing market, shifting from a cloud platform designed for human users, those IT engineers, to one that's optimized for agent-based invocation. I believe there's tremendous room for growth there. A key challenge for us this year is transforming traditional cloud computing into a platform that is better suited for agentic use. It's a key focus of Alibaba Cloud's upgrade.

Speaker #4: So, the challenge lies in transforming the traditional cloud computing market, shifting from a cloud platform designed for human users—those IT engineers—to one that's optimized for agent-based invocation.

Speaker #4: so I I believe there's tremendous room for growth, there. The so a key challenge, for us this year is transforming traditional cloud computing into a platform that is, better, suited, for agentic use.

Speaker #4: And that's a a key focus of Alibaba Cloud's upgrade. 我觉得随着公司的营收规模的持续增长，同时AI的业务从更多的从卖卖资源到到转型升级成为更多的卖智能能力。那我觉得这个是一个巨大的一个一个商业模式升级。同时再结合我们自研的平头哥芯片的降本增效，我们觉得随着我们的AI和云的一个营收的一个规模的持续增长，云的利润率应该应该是可以可见的看到它应该有一个持续的一个提升的过程。但是这个持续的提升过程并非是一个线性的过程，它是可能随着一个规模效应的突变，或者说我们的平头平头哥芯片的规模的发生一个巨大的巨大的一个提升。我觉得和整个产品的规模性规模效应的体现都有关系。所以它并不会是一个线性的发生。同样的就是您刚才说的2026到2031年的一个一个符合增长率，我觉得平均的符合增长率就是你回去用用计算机算一下，是还是非常明确的。但是我们说在研发的投入和市场的市场的增长过程中，也并不会是线性的发生。我们今天的投入可能要过一年两年才会产生一个一个更大的一个增长。但是总体的五年的一个目标，我们觉得还是非常有有信心去达成这个目标。 as, the revenue from this business continues to grow, our AI business will, undergo transfer transformation and upgrading, shifting from selling resources to selling intelligence, selling intelligent capabilities.

Eddie Wu: As the revenue from this business continues to grow, our AI business will undergo transformation and upgrading, shifting from selling resources to selling intelligence, selling intelligent capabilities. I think that represents a massive upgrade to the business model. At the same time, by integrating our proprietary T-Head chips, we are achieving and will achieve cost reduction and efficiency gains. We believe that as our AI and cloud business continues to grow in revenue scale, cloud profitability should become increasingly visible, and we see it is on a steady path of improvement. However, the process of continued improvement is not a linear one.

Speaker #4: And I think that represents a massive upgrade to the business model. At the same time, by integrating our proprietary T-Head chips, we are achieving and will achieve cost reduction and efficiency gains. We believe that to grow in revenue scale, cloud profitability should become increasingly visible, and we see it is on a steady path of improvement.

Speaker #4: however, the, the process of continued improvement, is not, a linear, one. it's it's possible that there could be a a scale effect, breakthrough, the achievement of a a an economy of scale, or, the, scaling up of our, T head chips.

Eddie Wu: It's possible that there could be a scale effect breakthrough, the achievement of an economy of scale, or the scaling up of our T-Head chips, and there could be a massive leap forward. But I think that's you know a function of the product as a whole and those kinds of economies of scale, but it will not unfold in a linear fashion. You asked about the CAGR, the compound annual growth rate from 2026 through to 2031. You know, I think you can plug that into your calculator and figure out what it would be, assuming it were to be linear, but I don't think that it will be linear.

Speaker #4: And there could be a massive leap forward. But I think that's, you know, a function of the product as a whole and those kinds of economies of scale.

Speaker #4: But it will not unfold in a linear, fashion. So you asked about the, the CAGR, the compound annual growth rate from 2026 through to, 2031.

Speaker #4: You know, I think you can plug that into your calculator and figure out what it would be, assuming it it were to be linear.

Speaker #4: But I I don't think that it will be linear. our R&D investment and growth in the market, will not be, linear. And some of the investments we're making, today, may may not yield, significant growth, until, one or or even two years, from now.

Eddie Wu: Our R&D investment and growth in the market will not be linear. Some of the investments we're making today may not yield significant growth until 1 or even 2 years from now. However, regarding that overall 5-year goal, we are highly confident in our ability to achieve it.

Speaker #4: however, regarding that overall five-year goal, we are highly confident in our ability to, achieve it.

Lydia Liu: Thank you. Operator, let's take the last question.

Speaker #2: Thank you. I'll be there. Let's take the last question.

Operator: Thank you. The last question comes from Alex Yao at J.P. Morgan. Please go ahead.

Operator: Thank you. The last question comes from Alex Yao at JPMorgan. Please go ahead.

Speaker #3: Thank you. The last question comes from Alex Yau at JP Morgan. Please go ahead. 好的，谢谢管理层给我这个问题的机会。啊，我想那个调整一下话题，来看一下我们的这个电商这个方向上面的发展阶段。因为我们之前也有曾经说过电商会进入到一个三年的投资周期。啊，那现在这个三年投资周期是不是因为我们看到，啊，闪购外卖的机会，包括现在 agentic commerce 的机会，会有一些调整。如果不调整的话，那是不是我们已经差不多进入到这个三年周期的中期，啊，接下来就是逐渐的财务感改善和到三年底进入到相对稳定的一个，啊，财务的收获期。啊，这个大方向上我们这个赛道上的这个阶段性的这个定位和考虑能不能跟我们分享一下？谢谢。啊，呃 Thank you. I'd like to, shift the topic a little bit and, ask, a question about e-commerce.

Alex Yao: Thank you. I'd like to shift the topic a little bit and ask a question about e-commerce. You'd previously said that we were in a three-year investment cycle for e-commerce. I'm wondering if that is now being adjusted or being driven by the new opportunities that have arisen in instant commerce and in agentic commerce. Or if we're still thinking of it in terms of the original three-year plan, which would put us now in the middle, really of that three-year period, where I guess we would start to be reaping the returns on a stable basis from those investments.

Speaker #3: you'd previously said, that, we were in a three-year investment cycle. for, e-commerce, I'm wondering, if, that is now, being adjusted or or being driven by the new opportunities, that have arisen in, instant commerce, and in, agentic commerce, or if if we're still, thinking of it in terms of the original three-year plan, which would put us now in the the middle, really, of that, three-year period where I I guess we would start to be reaping, the the returns, on a stable basis from those, investments.

Eddie Wu: If you could speak to us about the overall direction of e-commerce in the context of that three-year investment cycle that you'd told us before, and also share with us, you know, how you're thinking about being positioned and your strategies on this e-commerce track.

Speaker #3: So, if you could, speak to us about the overall direction of e-commerce in the context of that three-year investment cycle that you’d told us before, and also share with us how you’re thinking about being positioned and your strategies on this e-commerce track.

Eddie Wu: 对，我来回答这个问题。刚才我也讲到了，首先我们在今年在即时零售侧有个非常大的投入，那么这是我们也看，这是我们看到的确定性的一个机会。对，刚才我也讲到了，我们会在未来两年以实现即时零售规模破万亿的目标持续地投入。那么我们也相信，在两年后，整个即时零售的这个投入会给我们整个电商板块带来正向的这样的经济收益。Thank you.

Speaker #3: Thank you.

Speaker #1: Yeah. what 我能回答这个问题。刚才我也讲到了，在这个，呃，首先我们在今年在技术零售侧有个非常大的投入。那么这时我们也看，这是我们看到的确定性的一个机会。对，刚才我也讲到了，我们会在未来两年以实现技术零售规模破万亿的目标，持续的投入。那么我们也相信，呃，在两年后，整个技术零售的这个投入会给我们整个电商板块带来正向的这样的经济收益。

Eddie Wu: As I just mentioned, we are making a very significant investment in the instant retail business this year, the quick commerce business this year. At this point in time, we're seeing a highly definitive opportunity in this space. Again, as I just mentioned, we will continue to invest heavily over the next two years in order to achieve our goal of surpassing CNY 1 trillion in quick commerce sales. We also believe that in two years’ time, our investments in quick commerce will generate positive economic returns for our e-commerce business as a whole.

Speaker #3: thank you. So, as I just mentioned, we are making, very significant, investment in the, instant retail business this year, the quick commerce business this year.

Speaker #3: and, at this point in time, we're seeing a a highly definitive, opportunity. in this, space. so, again, as I just mentioned, we will continue to invest heavily, over the next two years in order to achieve our goal.

Speaker #3: Of surpassing one trillion RMB in quick commerce sales. We also believe that in two years' time, our investments in quick commerce will generate positive economic returns for our e-commerce business as a whole.

Eddie Wu: 然后讲一下关于AI，因为大家刚才其实Eddie也讲了很多关于AI的一些影响，那么我觉得AI会对电商会带来非常大的一个影响在。就是但我觉得三年对AI来说是一个非常非常远的一个时间。大家看到其实AI是以每周每个月的速度在进化，对，所以我们也在积极地在AI侧做投入。我们已经在这个，无论是用户体验侧还是商家侧，我们今年都会持续地推出一些新的体验，以及去升级我们商家去AI的新的经营的模式。I'd like to add to that by bringing in the dimension of AI, 'cause Eddie's talked a lot about AI.

Speaker #3: Thank you.

Speaker #2: 然后讲一下关于这个 AI，因为大家刚才其实这个艾迪也讲了很多关于关于这个 AI 的一些影响。呃，那么我觉得 AI 会对电商会带来非常大的一个影响，在就是，但我觉得三年对 AI 来说是一个非常非常远的一个时间。大家看到其实 AI 是以每周每个月的速度在在进化。对，所以我们也在积极的在 AI 侧做投入。我们已经在这个，呃，无论是用户体验侧还是商家侧，我们今年都会，呃，持续的推出一些新的体验以及去升级我们商家基于 AI 的新的经营的模式。

Speaker #3: 呃 but I'd like to, add to that, by bringing in the, the, the dimension of AI because Eddie's talked a lot about, AI. I I believe that AI will also have a very, very significant impact on, e-commerce.

Eddie Wu: I believe that AI will also have a very, very significant impact on e-commerce. However, three years is too long a time to talk about when it comes to AI, because AI today is evolving at a pace that's measured in weeks or in months.

Speaker #3: however, three years is, too long a time to talk about when it comes to AI because, AI today is evolving at a pace, that's measured, in weeks or or in months.

Eddie Wu: That's precisely why we're making significant investments on the AI front, and we are leveraging AI to roll out new experiences for consumers and for merchants, as well as upgrading merchants' business models with AI。那么因为AI的这样的出现，我觉得在电商的，一些很多的领域，一些分支的领域也会带来非常大的一个升级。例如我们的B2B业务，那么我们也看到像类似这样的业务，电商会带来非常大的一些机会，那么我们也会积极地去抓住这样的一些新的机遇。我们believe that AI will allow us to make huge upgrades in e-commerce across different parts of the e-commerce business.

Speaker #3: But that's precisely why we're making significant investments on the AI front. And we are leveraging AI to roll out new experiences for consumers and for merchants, as well as upgrading merchants' business models with AI.

Speaker #2: 呃，那么因为 AI 的这样的出现，我觉得在电商的，呃，一些很多的领域，一些分支的领域，也会带来非常大的一个升级。啊，例如我们的 B2B 业务。那么我们也看到像类似这样的业务，啊，电商会带来非常大的一些机会。那么我们也会积极的去抓住这样的一些新的机遇。

Speaker #3: Uh, we believe that AI will allow us to make huge upgrades in e-commerce across different parts of the e-commerce business. It's beneficial for our B2B business.

Eddie Wu: It's beneficial for our B2B business, where we're seeing tremendous opportunities for its deployment, and we will actively seize on all of these new opportunities.

Speaker #3: We're seeing tremendous opportunities for its deployment, and we will actively seize on all of these new opportunities.

Lydia Liu: Okay. That wraps up the Q&A session of today's earnings call. Thank you very much for joining us today, and we look forward to speaking with you soon.

Speaker #4: Okay, that wraps up the Q&A session of today's earnings call. Thank you very much for joining us today, and we look forward to speaking with you soon.

Operator: Thank you. That concludes the call for today. Thank you for participating. You may now disconnect your lines.

Q3 2026 Alibaba Group Holding Ltd Earnings Call

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