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HANGZHOU, China – (BUSINESS WIRE) – Alibaba Group Holding Limited (NYSE: BABA) announced today its financial position
results for the quarter ended September 30, 2018.
"Alibaba had another quarter of strong growth. In particular,
annual active consumers increased by 25 million to reach 601 million in
12 months ended September 30, 2018, "said Daniel Zhang, chief
General Manager of Alibaba Group. "We have generated synergies between our
companies, demonstrating the power of Alibaba's digital economy,
which will be presented at our next 11.11 Global
Festival of shopping. As part of our New Retail strategy, we realize our
vision to revive the growth of traditional retailers through
digitize their store operations, thanks to Alibaba's technology
and consumer ideas. "
"We surpassed all our peers in the industry by generating solid revenues again
54% growth this quarter, "said Maggie Wu, chief financial officer of
Alibaba Group. "While the growth of our overall profitability this
quarter was tempered by significant investments in local services,
logistics, entertainment and international expansion, our core business
Market affairs continued to show solid earnings and cash flow
growth, which allows us to reinvest in strategic areas and our
Technology."
HIGHLIGHTS
During the quarter ended September 30, 2018:
-
Returned 85 148 million RMB (12 398 million US dollars), an increase
54% over twelve months.
-
Core business revenue increased 56% year-on-year to RMB 72,475.
million (US $ 10,553 million). -
Cloud computing revenues increased by 90% in one year to reach RMB 5,667
million (US $ 825 million). -
Digital media and entertainment revenues increased 24%
RMB 5,940 million (US $ 865 million). -
Revenues from innovation and other initiatives increased by 20%
to RMB 1,066 million (155 million US dollars).
-
Annual active consumers in our markets in China
reached 601 million, an increase of 25 million compared to 12 months
period ended June 30, 2018. -
MAU mobile in our markets in China reached 666
million in September 2018, an increase of 32 million compared to June 2018. -
Revenue from operations RMB 13,501 million (US $ 1,966)
million), down 19% year-on-year, mainly due to
consolidation of Ele.me and Cainiao networks, investments in digital
media, entertainment and other strategic initiatives, as well as
increase in stock-based compensation and depreciation. adjusted
EBITDA increased by 7% over one year to RMB 26,710 million (US $ 3,889).
million). -
EBITA adjusted for basic trade RMB 29,807 million
($ 4,340 million), an increase of 13% over the previous year. Our market-based
EBITA adjusted for basic trade, a non-GAAP measure, increased
27% year-on-year to RMB 35,642 million (US $ 5,190 million). -
Net income attributable to common shareholders was 20 033 RMB
million (US $ 2,917 million), and net revenue was 18 241 RMB
millions of USD ($ 2,656 million), representing an annual increase of
13% and 5%, respectively. -
Non-GAAP net income was 23,453 million RMB (3,415 million USD). Diluted
EPS was RMB 7.62 (US $ 1.11) and Non-GAAP diluted earnings per share was
RMB 9.60 (US $ 1.40). -
Net cash provided by operating activities was 31.407 million RMB
($ 4.573 million) and Non-GAAP Free Cash Flow was 16,033 RMB
millions of dollars ($ 2,334 million).
COMMERCIAL AND STRATEGIC UPDATES
Basic trade
Taobao – New user interface enhancing the user experience and adding
value for the merchants. During the quarter, we deployed a new user
the interface of the Taobao application, in order to further personalize
buying experience by segmenting users based on their purchases
behavior, and including more feeds of recommendations to improve the product and
content discovery. In turn, the new interface improves the ability to
merchants to target, engage and retain consumers. This improvement of
the user experience and the value proposition of the trader would not have been
possible without our extensive knowledge of the consumer and our property
technology supported by AI algorithms.
In September 2018, Taobao application continued to experience a high rate of use
growth, with a quarterly net increase of UM 32 million in our Chinese market
retail markets to a total of 666 million UAM. Annual asset
consumers increased from 25 million to 601 million for the 12-month period ended
September 30, 2018.
Tmall – extend the leadership of the B2C market. Tmall continued to
extend its leadership in the B2C market and gain a share of the consumer portfolio.
Excluding unpaid orders, GMV physical assets increased by 30% year-on-year
quarter ended September 30, 2018. Strong growth was driven by
continuous improvement of conversion rates and increased traffic,
Reflecting the strength of rapidly changing consumer goods (FMCG),
categories of furniture and clothing.
Tmall has demonstrated its strong value proposition to brands and merchants
as the leading platform for brand engagement and distribution in China.
During the quarter, brands such as Qeelin (a member of the Kering Group),
Stella McCartney, Theory and Sergio Rossi have launched flagship stores on
Tmall and joined the Tmall Luxury Pavilion, our tailored premium
shopping experience for consumers.
In October, we announced a partnership with the Swiss luxury group
Richemont, the parent company of luxury brands, including Cartier, to
launches joint venture in China with Yoox Net-a-Porter, owned by Richemont
(YNAP), world leader in the online sale of luxury goods. This
partnership will provide Chinese consumers with unprecedented access to
leading luxury brands of the world. China is the largest luxury market in the world.
world, and thanks to this partnership, Alibaba will be even better
positioned to seize this market opportunity. As part of the partnership,
YNAP and Alibaba to create joint venture to launch two mobile phones
applications for YNAP's NET-A-PORTER and MR PORTER multi-brand online stores for
consumers in China. In addition, the joint venture will launch NET-A-PORTER and MR
PORTER online stores on the Tmall Luxury Pavilion. The joint venture will focus on
serving consumers in China and will also serve Chinese consumers
to travel abroad.
On November 11, 2018, we will celebrate tenth
anniversary of the 11.11 Global Shopping Festival, which will propose
high quality products, entertainment and fast and reliable services
hundreds of millions of consumers in China and around the world. A sin
past years, we will demonstrate the power of our commerce infrastructure
and the digital economy of Alibaba on a large scale. This year's festival will be
present 180,000 participating brands. In addition, we will release the
synergies of online / offline integration when deploying the new
business model and technologies in 200,000 smart stores in China
several categories of retail.
New Retail – redefine consumption patterns for the future. Our
New retail strategy transforms traditional retail into
digitize in-store operations, with an emphasis on in-store technology,
On-demand delivery, inventory tracking, supply chain management,
consumer information and mobile payments.
Our self-operated Hema grocery stores and restaurants continued to grow and
introduce new initiatives that enhance the consumer experience. From
September 30, 2018, there were 77 Hema stores in China, mainly
located in the cities of rank 1 and 2. Consumers embrace fully
Hema's on-demand delivery service in 30 minutes, which provides fresh food
and the grocery store for their busy urban lifestyle. Hema stores mature (ie,
companies in operation for at least a year and a half) continued to post high sales
productivity, with online sales accounting for more than 60% of total sales
in the neighborhood.
We are progressing in the digitization of the partner sales outlets and we are allowing
their new retail model. For example, our partner Sun Art, the largest
hyper-mart chain in China, has adopted our technology and is working
closely with us for on-demand delivery, joint purchasing and supply
chain management. At the end of the quarter, we allowed more than 350
about 470 Sun Art stores to meet online orders
linking these stores and their warehouse systems to fresh Taobao products.
distribution channel for food and general merchandise (Taoxianda). Consumers
living within three kilometers of a connected Sun Art store can
buy supplies for a delivery on demand from their Taobao application.
Local Services – Integration of Ele.me and Koubei. In October
2018, we combined the operation of the Ele.me food delivery service and
Koubei online restaurant guide company under a single management team.
Ele.me has served more than 167 million annual active consumers in 676 cities worldwide.
China for the 12 months ended June 30, 2018. Together, Ele.me and Koubei
had 3.5 million merchants registered as of June 30, 2018.
Ele.me and Koubei will accelerate the integration of
consumer awareness and restaurant management with improved operation
efficiency, as well as improve cooperation with other companies Alibaba.
Cainiao network – digitization of the logistics sector. Cainiao
facilitates the scanning of the entire run and delivery
process, improving the consumer experience and reducing costs. Together with
our partners, we provide comprehensive logistics solutions to our
Customers to meet different demands on different products
categories and various cases of use by consumers. These include
delivery used by merchants in online markets, in star
network of warehouses for traders and retailers, delivery on demand for
groceries and consumer products, and cross-border delivery for
brands and consumers. We have also made significant investments in
alternative forms of last mile delivery via a Cainiao network
Collecting stations and automatic picking bins.
International – additional investments for long-term growth. Our
cross-border and international retail businesses continued to show
promising growth. Revenues from our international retail
Activity reached RMB 4,464 million (USD 650 million) during the quarter ended
September 30, 2018, representing a growth of 55% over the previous year.
In September, Alibaba joined the Russian direct investment fund.
(RDIF), the sovereign wealth fund of the Russian Federation, MegaFon, a
pan-Russian operator of digital opportunities and Mail.Ru Group, the
leading Internet and IT company in Russia with international growth
exhibition, to form a new strategic partnership aimed at integrating
e-commerce platforms and launch a leading social network.
commercial joint venture that will serve Russia and the rest of the
Commonwealth of Independent States (CIS). The joint venture
take advantage of the existing activities of AliExpress Russia and offer
unmatched value proposition for merchants, consumers and Internet users
across Russia and the CIS.
cloud computing
Cloud computing revenue grew by 90% in one year to RMB 5,667 million.
(US $ 825 million), driven by improving the composition of higher value added revenues
services and strong growth of paying customers. During the quarter, Alibaba
The Cloud has launched more than 600 products and features, including those associated
to large data analytics and innovation applications of artificial intelligence, security and IoT
service improvements.
In September, Alibaba Cloud launched Apsara 2.0, a complete upgrade
of our cloud operating system based on our exclusive system
distributed computing architecture. The system allows businesses with
improved compute performance, flexible hybrid cloud implementation
and a more efficient network connection. With the upgrade, developers can
leverage Alibaba Cloud IoT solutions to deliver advanced computing capacity
to devices connected to scale and seamless integration with the cloud
networks.
Digital media and entertainment
Our strategy is to integrate entertainment with all our offers in order to:
consumers beyond the trade. The synergy between our business and
entertainment companies offers a superior user experience while
increase customer loyalty and subscription revenue, as well as return
on investment for advertisers.
Youku's average daily subscriber growth remains robust,
increasing by more than 100% year-over-year during the quarter. We will continue
invest in original content production capacity to reach
better quality control of content, format and planning. We are
see positive results from our investment in the original content with
five self-produced shows ranked among the top 10 original scripts
series during the period from January 2017 to July 2018, according to
Douban, a community of leading commentaries in China. During this quarter, our
The original reality TV show "Slam-dunk of China" has become a new hit with young people
public in China. Fox Networks Group bought the rights to the
show for countries and regions outside of China.
Initiatives of innovation and technological development
Amap (formerly AutoNavi) is the largest map application and its location.
technological platform in China. The Amap application offers users an extensive
set of information services on mobility and destination. Amap integrates
data such as weather, traffic, tourist destinations and
information on points of interest to give users the best possible experience
each phase of their journey. On October 1, 2018, the first day of
holiday week of China's national holiday, Amap broke a record
reach more than 100 million daily active users.
Cash flow from operating activities and free
Cash flow
Net cash generated by operating activities for the quarter ended September
30 2018 amounted to 31.407 billion RMB (US $ 4,573 million), an increase of 4%.
compared to 30,121 million RMB in the same quarter of 2017. Available cash
cash flow, a measure of non-GAAP liquidity,
September 30, 2018 decreased 28% to RMB 16 033 million (USD 2,334).
million yuan), compared to 22,119 million yuan in the same quarter of 2017, mainly
due to an increase in capital expenditure (excluding the acquisition of
land use rights and work in progress related to offices
campus) of RMB 6,310 million and an increase in acquisitions of
copyright and intangible assets of RMB 1,062 million. A reconciliation
net cash flow from operating activities to free cash flow is
included at the end of this announcement results.
Redemption Share
In September 2018, we announced a plan to buy ADS for the implementation of the
US $ 6 billion share buyback program previously announced. From
November 2018, we repurchased approximately 9.12 million of our shares.
shares for a total purchase price of approximately US $ 1.33 billion.
Recipe guide
In the future, we are revising our revenue projections for fiscal 2019 to:
a range of 375 billion to 383 billion RMB. The new guidance range
reflects an adjustment of 4% to 6% of the initial revenue forecast. In
light of the current macroeconomic conditions we have recently
decided not to monetize, in the short term, the additional inventory
generated by user growth and engagement on our China retail network
markets. We expect this decision to benefit SMEs in our market
platforms.
MAIN OPERATIONAL MEASURES *
|
September 30th |
June 30th |
September 30th |
Net adds | |||||||
| YoY | QoQ | |||||||||
| China Retail Trade: | ||||||||||
|
Annual active consumers(1) (in millions) |
488 |
576 |
601 |
113 |
25 |
|||||
|
Monthly Mobile Active Users (MAU)(2) (in millions) |
549 |
634 |
666 |
117 |
32 |
|||||
|
__________________ |
|||
|
* |
For definitions of terms used but not defined in these results |
||
|
(1) |
For the twelve months ended on the respective dates. |
||
|
(2) |
For the month ended on the respective dates. |
||
|
SUMMARY FINANCIAL RESULTS FOR THE SEPTEMBER QUARTER |
|||||||||||
| Three months ended September 30 | |||||||||||
| 2017 | 2018 | ||||||||||
| YoY% | |||||||||||
| RMB | RMB |
AMERICAN DOLLARS $(1) |
Change | ||||||||
| (in millions, except percentages and amounts per share) | |||||||||||
|
Returned |
55.122 |
85 148 |
12,398 |
54 |
% |
||||||
|
Revenue from operations |
16,584 |
13,501 |
1,966 |
(19 |
)% (3) |
||||||
|
Operating margin |
30 |
% |
16 |
% |
|||||||
|
Adjusted EBITDA(2) |
25,031 |
26,710 |
3,889 |
7 |
% |
||||||
|
Adjusted EBITDA margin(2) |
45 |
% |
31 |
% |
|||||||
|
Adjusted EBITA(2) |
23,018 |
23,155 |
3,371 |
1 |
% |
||||||
|
Adjusted EBITA margin(2) |
42 |
% |
27 |
% |
|||||||
|
Net revenue |
17,408 |
18,241 |
2656 |
5 |
% |
||||||
|
Net income attributable to common shareholders |
17,668 |
20,033 |
2,917 |
13 |
% |
||||||
|
Non-GAAP net income(2) |
22,089 |
23,453 |
3,415 |
6 |
% |
||||||
|
Diluted earnings per share / ADS (EPS) |
6.78 |
7.62 |
1.11 |
12 |
% |
||||||
|
Non-GAAP diluted earnings per share(2) |
8.57 |
9.60 |
1.40 |
12 |
% |
||||||
|
__________________ |
|||
|
(1) |
This listing results contains translations for certain renminbi |
||
|
(2) |
See the sections entitled "Segment Information", "Non-GAAP Principles". |
||
|
(3) |
The year-over-year decrease is mainly due to the |
||
SEPTEMBER QUARTER INFORMATION BY SEGMENTS
The table below presents a selection of financial information on our
operating segments for the periods indicated:
| Three months ended September 30, 2018 | ||||||||||||||
| Digital media | Innovation | |||||||||||||
| Heart | Cloud | and | initiatives | |||||||||||
| Trade | l & # 39; computer | entertainment | and others |
Not allocated(1) |
Consolidated | |||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | AMERICAN DOLLARS $ | ||||||||
| (in millions, except percentages) | ||||||||||||||
| Returned | 72,475 | 5,667 | 5,940 | 1,066 | – | 85 148 | 12,398 | |||||||
| Income (loss) from operations | 24,290 | (1.165) | (4.805) | (2,201) | (2.618) | 13,501 | 1,966 | |||||||
|
Add: Stock-Based Compensation Charge |
3,292 |
928 |
710 |
952 |
1,161 |
7,043 |
1,025 |
|||||||
|
Add: amortization of intangible assets |
2,225 |
5 |
293 |
8 |
80 |
2,611 |
380 |
|||||||
| Adjusted EBITA | 29,807 | (232) | (3,802) | (1,241) | (1.377) | 23,155 | 3,371 | |||||||
| Adjusted EBITA margin | 41% (2) | (4)% | (64)% | (116)% |
|
27% | ||||||||
| Three months ended September 30, 2017 | ||||||||||||||
| Digital media | Innovation | |||||||||||||
| Heart | Cloud | and | initiatives | |||||||||||
| Trade | l & # 39; computer | entertainment | and others |
Not allocated(1) |
Consolidated | |||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | |||||||||
| (in millions, except percentages) | ||||||||||||||
| Returned | 46,462 | 2,975 | 4,798 | 887 | – | 55.122 | ||||||||
| Income (loss) from operations | 23,836 | (697) | (3.383) | (1,456) | (1.716) | 16,584 | ||||||||
|
Add: Stock-Based Compensation Charge |
1,987 |
531 |
594 |
930 |
644 |
4,686 |
||||||||
|
Add: amortization of intangible assets |
591 |
4 |
1,040 |
30 |
83 |
1,748 |
||||||||
| Adjusted EBITA | 26,414 | (162) | (1.749) | (496) | (989) | 23,018 | ||||||||
| Adjusted EBITA margin | 57% | (5)% | (36)% | (56)% | 42% | |||||||||
|
__________________ |
|||
|
(1) |
Unallocated expenditures are mainly related to business expenses. |
||
|
(2) |
The adjusted EBITA margin is lower than the previous year, mainly |
||
OPERATING AND FINANCIAL RESULTS FOR THE SEPTEMBER QUARTER
Returned
Revenues for the quarter ended September 30, 2018 amounted to RMB 85,148 million.
(US $ 12.398 million), an increase of 54% compared to 55.122 million RMB in
same quarter in 2017. This increase is mainly due to
revenue growth of our China retail business, consolidation
Ele.me and Cainiao Network, as well as strong growth in
Alibaba Cloud.
The following table provides a breakdown of our revenues by segment
the periods indicated:
| Three months ended September 30 | ||||||||||||
| 2017 | 2018 | |||||||||||
| % of | % of | YoY% | ||||||||||
| RMB | Returned | RMB | AMERICAN DOLLARS $ | Returned | Change | |||||||
| (in millions, except percentages) | ||||||||||||
|
Basic trade: |
||||||||||||
|
China Retail Trade |
||||||||||||
|
– Customer management |
26.272 |
48% |
32,920 |
4,793 |
39% |
25% |
||||||
|
– Commission |
10,059 |
18% |
13,136 |
1,913 |
15% |
31% |
||||||
|
– Other |
3,226 |
6% |
8095 |
1,179 |
ten% |
151% |
||||||
|
39,557 |
72% |
54 151 |
7,885 |
64% |
37% |
|||||||
|
Wholesale trade in China |
1,714 |
3% |
2,497 |
364 |
3% |
46% |
||||||
|
International Retail Trade |
2,878 |
5% |
4,464 |
650 |
5% |
55% |
||||||
|
International Wholesale |
1,651 |
3% |
2,022 |
294 |
2% |
22% |
||||||
|
Cainiao Logistics Services |
– | – |
3,206 |
467 |
4% |
N / A |
||||||
|
Consumer Services |
– | – |
5,021 |
731 |
6% |
N / A |
||||||
|
Other |
662 |
1% |
1,114 |
162 |
1% |
68% |
||||||
|
Total basic trade |
46,462 |
84% |
72,475 |
10,553 |
85% |
56% |
||||||
|
cloud computing |
2,975 |
5% |
5,667 |
825 |
7% |
90% |
||||||
|
Digital media and entertainment |
4,798 |
9% |
5,940 |
865 |
7% |
24% |
||||||
|
Innovation initiatives and others |
887 |
2% |
1,066 |
155 |
1% |
20% |
||||||
|
Total |
55.122 |
100% |
85 148 |
12,398 |
100% |
54% |
||||||
Basic trade
-
China Retail Trade
Returned –
Revenues from our China retail operations for the quarter ended
301.1 billion yuan (7.885 million US dollars), an amount of
37% increase compared to 39,557 million RMB in the same quarter of
2017. This robust revenue growth reflects 151% growth from one year to the next.
Other sales mainly comprised of our new stores
fresh produce groceries Hema, Tmall Import and
Intimate department stores.In addition, revenues from our
Retail markets in China continued to experience strong growth. Combined
revenues from customer and commission management increased 27% year-over-year,
which represents a 25% increase in revenue from customer management
and a 31% increase in commission income. Customer growth
Management revenue mainly results from the increase in the volume of
paid clicks and to a lesser extent, average unit price per click,
reflecting the continued growth of mobile users and our ability to provide
Extremely relevant search results for consumers through customization
Technology. The growth in commission income is mainly due to
strong year-over-year growth of 30% in GMV physical assets (excluding
unpaid orders) on Tmall. Other income amounted to RMB 8,095 million (USD 1,179).
million), a significant increase compared to the recorded 3,226 million yuan
same quarter of 2017, mainly driven by Hema's contributions and
Tmall Import.Annual active consumers – Our
China's retail markets had 601 million active consumers a year in
12 months ended 30 September 2018, compared with 576 million euros for the
12 months ended June 30, 2018, a net addition of 25
million compared to the previous quarter and an increase of 23% compared to 488 million in 2003.
12 months ended September 30, 2017. The increase in annual assets
consumers is mainly due to better acquisition of new customers in less
developed areas. The oldest consumers have been with our platform, the
the more they spend and the more they place orders on more products
categories.MAUs mobile – MUCH mobile on our China
retail market places reached 666 million in September 2018, compared to
634 million in June 2018, a net increase of 32 million
MAU during the quarter, an increase of 21% compared to the 549 million euros in September 2017.
-
Wholesale trade in China
Returned
of our wholesale trade in China during the quarter ended
30 September 2018 amounted to 2,497 billion RMB (US $ 364 million), an increase of
46% compared with RMB 1,714 million in the same quarter of 2017. The
This increase is mainly due to an increase in average revenues from
paying members on our 1688.com platform.
-
International Retail Trade
Returned
of our international retail operations during the quarter ended
As of September 30, 2018 was RMB 4464 billion (US $ 650 million), an increase of
55% compared to 2,878 million RMB in the same quarter of 2017.
This increase is mainly due to the growth in revenues generated by
Lazada and AliExpress.
-
Wholesale trade international trade
Returned
of our international trade wholesale trade during the quarter
as of September 30, 2018 amounted to RMB 2.022 billion (US $ 294 million),
increase of 22% compared to 1.651 billion RMB in the same quarter of
2017. The increase is mainly due to the increase in the number of
paying members and average revenues of paying members of our
alibaba.com platform.
-
Cainiao Logistics Services
Income from
Cainiao's logistic services, which represent the revenues of the internal market
and one-stop logistics and international supply chain
management solutions provided by Cainiao Network, after the elimination of
intercompany transactions amounted to RMB 3,206 million ($ 467 million). we
started to consolidate the Cainiao network in mid-October 2017.
-
Consumer Services
Consumer income
services, which represents the revenues of the platform commission,
provision of food delivery services and other services provided by
Eleven million were RMB 5,021 million (US $ 731 million). We began to
consolidate Ele.me in May 2018.
cloud computing
Revenue from our cloud computing business for the quarter ending September
30 2018 amounts to 5.667 billion RMB (825 million USD), an increase of 90%
compared to RMB 2,975 million in the same quarter of 2017, mainly
driven by the distribution of income to higher value-added products and
services and robust growth in the number of paying customers.
Digital media and entertainment
Revenues from our digital media and entertainment activities during the quarter
September 30, 2018 amounted to RMB 5,940 million (US $ 865 million), a
24% increase compared to RMB 4,798 million in the same quarter of
2017. The increase is mainly due to an increase in the number of subscriptions
Youku's revenues and an increase in mobile value-added revenues
services provided by UCWeb, such as mobile search and game publishing.
Innovation initiatives and others
Innovation and other products for the quarter ended
306.1 billion RMB (US $ 155 million) as of September 30, 2018, an increase of
20% compared to 887 million RMB in the same quarter of 2017. The increase
is mainly due to increased revenue from Tmall Genie and Amap.
Costs and expenses
The following tables provide a breakdown of our costs and expenses,
Share-based compensation expense and costs and charges excluding
stock-based compensation expense by function for the periods indicated.
| Three months ended September 30 |
% of |
|||||||||||
| 2017 | 2018 | |||||||||||
| RMB |
% of |
RMB | AMERICAN DOLLARS $ |
% of |
||||||||
| (in millions, except percentages) | ||||||||||||
| Costs and expenses: | ||||||||||||
|
Cost of income |
22,002 |
40% |
46,786 |
6,812 |
55% |
15% |
||||||
|
Product Development Fee |
5,083 |
9% |
8,365 |
1,218 |
ten% |
1% |
||||||
|
Sales and marketing expenses |
6,266 |
11% |
9,106 |
1,326 |
ten% |
(1)% |
||||||
|
General and administrative expenses |
3,439 |
6% |
4,779 |
696 |
6% |
0% |
||||||
|
Amortization of intangible assets |
1,748 |
4% |
2,611 |
380 |
3% |
(1)% |
||||||
|
Total fees and expenses |
38,538 |
70% |
71,647 |
10,432 |
84% |
14% |
||||||
| Stock-based compensation expense by function: | ||||||||||||
|
Coût du revenu |
1 369 |
2% |
1 566 |
228 |
2% |
0% |
||||||
|
Frais de développement de produits |
1 686 |
3% |
3 078 |
448 |
4% |
1% |
||||||
|
Frais de vente et de marketing |
501 |
1% |
746 |
109 |
0% |
(1)% |
||||||
|
Dépenses générales et administratives |
1 130 |
2% |
1,653 |
240 |
2% |
0% |
||||||
|
Total des charges de rémunération à base d’actions |
4 686 |
8% |
7 043 |
1 025 |
8% |
0% |
||||||
| Frais et charges hors charges de rémunération à base d’actions: | ||||||||||||
|
Coût du revenu |
20 633 |
38% |
45 220 |
6 584 |
53% |
15% |
||||||
|
Frais de développement de produits |
3 397 |
6% |
5 287 |
770 |
6% |
0% |
||||||
|
Frais de vente et de marketing |
5 765 |
dix% |
8 360 |
1 217 |
dix% |
0% |
||||||
|
Dépenses générales et administratives |
2 309 |
4% |
3 126 |
456 |
4% |
0% |
||||||
|
Amortissement des immobilisations incorporelles |
1 748 |
4% |
2 611 |
380 |
3% |
(1)% |
||||||
|
Total des frais et charges hors charges de rémunération à base d’actions |
33 852 |
62% |
64 604 |
9 407 |
76% |
14% |
||||||
Coût du revenu – Coût des produits pour le trimestre se terminant en septembre
30 2018 s’élève à 46 786 millions RMB (6 812 millions USD), soit 55% du chiffre d’affaires,
contre 22 002 millions de RMB, soit 40% du chiffre d’affaires, au même trimestre de
2017. Sans l’effet de la charge de rémunération à base d’actions, le coût de
les revenus en pourcentage des revenus auraient augmenté de 38% dans le
trimestre terminé le 30 septembre 2017 à 53% pour le trimestre terminé le mois de septembre
30 2018. L’augmentation est principalement attribuable à (i) notre consolidation de
Ele.me et Cainiao Network, (ii) l’inclusion du coût des stocks et des
logistique de nos activités New Retail et Lazada, ainsi que (iii) un
augmentation des dépenses de contenu de Youku sur le contenu original.
Frais de développement de produits – Frais de développement de produits en
Le trimestre clos le 30 septembre 2018 s’élevait à 8 365 millions de RMB (1 218 USD).
millions d’euros), soit 10% du chiffre d’affaires, contre 5 083 millions RMB, soit 9% du
produits d’exploitation, au même trimestre en 2017. Sans l’effet de la
charges de rémunération, frais de développement de produits en pourcentage des
le chiffre d'affaires serait resté stable à 6% au cours du trimestre clos en septembre
30 2018 et le même trimestre l'an dernier.
Frais de vente et de marketing – Frais de vente et de marketing en
Le trimestre clos le 30 septembre 2018 s'élevait à 9 106 millions de RMB (1 326 USD).
millions d’euros), soit 10% du chiffre d’affaires, contre 6 266 millions RMB, soit 11% du
produits d’exploitation, au même trimestre en 2017. Sans l’effet de la
charge de rémunération, frais de vente et de marketing en pourcentage du
le chiffre d'affaires serait resté stable à 10% au cours du trimestre terminé en septembre
30 2018 et le même trimestre l'an dernier.
Dépenses générales et administratives – général et administratif
Les charges du trimestre clos le 30 septembre 2018 s'élevaient à 4 779 millions de RMB.
(696 millions USD), soit 6% du chiffre d'affaires, contre 3 439 millions RMB, ou 6%
chiffre d’affaires, au même trimestre de 2017. Sans l’effet de
rémunération à base d’actions, ainsi que les frais généraux et administratifs
un pourcentage du chiffre d'affaires serait resté stable à 4% au cours du trimestre
terminé le 30 septembre 2018 et au même trimestre l’an dernier.
Charge de rémunération à base d’actions – Rémunération totale en actions
dépenses incluses dans les éléments de coûts et dépenses ci-dessus au cours du trimestre
30 septembre 2018 s'élevait à 7 043 millions de RMB (1 025 millions de dollars US),
augmentation de 50% par rapport à 4 686 millions de RMB au même trimestre de
2017. Charge de rémunération à base d’actions exprimée en pourcentage des produits
est resté stable à 8% au cours du trimestre clos le 30 septembre 2018 et la
même trimestre l'année dernière. Le tableau suivant présente notre analyse de
rémunération à base d’actions pour les trimestres indiqués par type de
récompenses en actions:
| Trois mois terminés | ||||||||||||||||||
| 30 septembre 2017 | 30 juin 2018 | September 30, 2018 | % Changement | |||||||||||||||
| % de | % de | % de | ||||||||||||||||
| RMB | Returned | RMB | Returned | RMB | AMERICAN DOLLARS $ | Returned | YoY | QoQ | ||||||||||
| (en millions, sauf les pourcentages) | ||||||||||||||||||
| Par type de récompense: | ||||||||||||||||||
|
Attributions en actions du groupe Alibaba attribuées à: |
||||||||||||||||||
|
– Nos employés |
3 697 |
7% |
4 416 |
6% |
6 060 |
882 |
7% |
64% |
37% |
|||||||||
|
– Employés de Ant Financial et autres consultants(1) |
469 |
1% |
168 |
0% |
105 |
15 |
0% |
(78)% |
(38)% |
|||||||||
|
Attributions à base d'actions de Ant Financial octroyées à nos employés(1) |
266 |
0% |
11 477 |
14% |
438 |
64 |
0% |
65% |
(96)% |
|||||||||
|
Other |
254 |
0% |
317 |
0% |
440 |
64 |
1% |
73% |
39% |
|||||||||
|
Total des charges de rémunération à base d’actions |
4 686 |
8% |
16 378 |
20% |
7 043 |
1 025 |
8% |
50% |
(57)% |
|||||||||
|
__________________ |
|||
|
(1) |
Les attributions sont soumises à un traitement comptable d'évaluation au prix du marché. |
||
Rémunération à base d’actions liée à Alibaba Group basée sur des actions
les récompenses accordées à nos employés ont augmenté au cours de ce trimestre par rapport à
le trimestre précédent. L’augmentation reflète l’effet du trimestre complet de
la charge découlant des attributions annuelles fondées sur la performance accordées
milieu du trimestre précédent et l’effet de la charge résultant
des récompenses de promotion accordées au cours de ce trimestre. Nous nous attendons à ce que notre
la charge de rémunération à base d’actions continuera d’être affectée par les changements
juste valeur de nos actions, les attributions à base d’actions de nos filiales
et la quantité de récompenses que nous accordons à nos employés et consultants dans
l'avenir.
Rémunération à base d’actions liée à Ant Financial basée sur les actions
les récompenses accordées à nos employés ont considérablement diminué au cours de ce trimestre
par rapport au trimestre précédent, principalement en raison de la réévaluation du
juste valeur de ces attributions au cours du trimestre précédent. De plus, nous
s’attendre à ce que notre charge de rémunération à base d’actions liée à ces attributions
continuera à être affecté par les modifications futures de l'évaluation de Ant
Financiers, bien que de tels changements soient non monétaires et ne soient pas
entraîner un coût économique ou une dilution des capitaux propres pour nos actionnaires.
Amortissement des immobilisations incorporelles – Amortissement de l'immatériel
l’actif au trimestre clos le 30 septembre 2018 était de 2 611 millions de RMB
(US $ 380 millions), soit une augmentation de 49% par rapport aux 1 748 millions de RMB des mêmes
trimestre de 2017, principalement en raison d’une augmentation de l’amortissement des
immobilisations incorporelles acquises dans le cadre de regroupements d'entreprises.
Résultat opérationnel et marge opérationnelle
Le bénéfice d’exploitation pour le trimestre terminé le 30 septembre 2018 a
RMB13,501 million (US$1,966 million), or 16% of revenue, a decrease of
19% compared to RMB16,584 million, or 30% of revenue, in the same
quarter of 2017, primarily due to the consolidation of Ele.me and
Cainiao Network, investments in digital media and entertainment and
other strategic initiatives, as well as an increase in share-based
compensation and depreciation expenses.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA increased 7% year-over-year to RMB26,710 million
(US$3,889 million) in the quarter ended September 30, 2018, compared to
RMB25,031 million in the same quarter of 2017, despite adjusted EBITDA
margin decreasing from 45% in the quarter ended September 30, 2017 to
31% in the quarter ended September 30, 2018. Adjusted EBITA increased 1%
year-over-year to RMB23,155 million (US$3,371 million) in the quarter
ended September 30, 2018, compared to RMB23,018 million in the same
quarter of 2017, despite adjusted EBITA margin decreasing from 42% in
the quarter ended September 30, 2017 to 27% in the quarter ended
September 30, 2018. Adjusted EBITDA and EBITA margins are lower mainly
because of the consolidation of Ele.me and Cainiao Network, strategic
investments in digital media and entertainment and other strategic
initiatives. Reconciliations of net income to adjusted EBITDA and
adjusted EBITA are included at the end of this results announcement.
As many of our newly developed and acquired businesses have different
cost structures, we expect that our margin will continue to be
negatively impacted by these businesses and the accounting treatment of
revenue recorded on a gross basis.
Adjusted EBITA and adjusted EBITA margin by
segments
Adjusted EBITA and adjusted EBITA margin by segments are set forth in
the table below. See the section entitled “Information about Segments”
above for a reconciliation of income from operations to adjusted EBITA.
| Three months ended September 30, | ||||||||||
| 2017 | 2018 | |||||||||
| % of | % of | |||||||||
| RMB | Returned | RMB | US$ | Returned | ||||||
| (in millions, except percentages) | ||||||||||
|
Core commerce |
26,414 |
57% |
29,807 |
4,340 |
41% |
|||||
|
Cloud computing |
(162) |
(5)% |
(232) |
(34) |
(4)% |
|||||
|
Digital media and entertainment |
(1,749) |
(36)% |
(3,802) |
(554) |
(64)% |
|||||
|
Innovation initiatives and others |
(496) |
(56)% |
(1,241) |
(181) |
(116)% |
|||||
Core commerce segment – Adjusted EBITA increased by 13% to
RMB29,807 million (US$4,340 million) in the quarter ended September 30,
2018, compared to RMB26,414 million in the same quarter of 2017, despite
adjusted EBITA margin decreasing from 57% in the quarter ended September
30, 2017 to 41% in the quarter ended September 30, 2018. Excluding the
effect of the below-mentioned long-term investments, marketplace-based
core commerce adjusted EBITA increased 27% year-over-year to RMB35,642
million (US$5,190 million). The strategic investments include: (i)
aggressive investment in local services, such as Ele.me, (ii)
international expansion in regions such as Southeast Asia, (iii) gradual
revenue mix shift towards self-operated New Retail businesses where
revenue is recorded on a gross basis including the cost of inventory,
and (iv) inclusion of the logistics technology business of Cainiao
Network in our consolidated financial statements. A reconciliation of
adjusted EBITA for core commerce to marketplace-based core commerce
adjusted EBITA is included at the end of this results announcement.
Cloud computing segment – Adjusted EBITA in the quarter ended
September 30, 2018 was a loss of RMB232 million (US$34 million),
compared to a loss of RMB162 million in the same quarter of 2017.
Adjusted EBITA margin improved to negative 4% in the quarter ended
September 30, 2018 from negative 5% in the quarter ended September 30,
2017.
Digital media and entertainment segment – Adjusted EBITA in the
quarter ended September 30, 2018 was a loss of RMB3,802 million (US$554
million), compared to a loss of RMB1,749 million in the same quarter of
2017. Adjusted EBITA margin decreased to negative 64% in the quarter
ended September 30, 2018 from negative 36% in the quarter ended
September 30, 2017, primarily due to our investments in the production
of original content and licensing rights, including the rights for live
streaming the World Cup games in China.
Innovation initiatives and others segment – Adjusted EBITA in the
quarter ended September 30, 2018 was a loss of RMB1,241 million (US$181
million), compared to a loss of RMB496 million in the same quarter of
2017. Adjusted EBITA margin decreased to negative 116% in the quarter
ended September 30, 2018, compared to negative 56% in the quarter ended
September 30, 2017, primarily due to investments in new business
initiatives, including Tmall Genie.
Interest and investment income, net
Interest and investment income, net in the quarter ended September 30,
2018 was RMB6,635 million (US$966 million), which mainly included net
gains from disposal of certain investments of RMB4,539 million (US$661
million), as well as net gains arisen from the increase in fair value of
certain equity investments.
Other income (loss), net
Other loss, net in the quarter ended September 30, 2018 was RMB1,532
million (US$223 million), compared to other income, net of RMB1,737
million in the same quarter of 2017. The loss was primarily due to net
loss sustained by Ant Financial during the quarter as a result of its
investments in user acquisition, product innovation and international
expansion. In the September 2018 quarter, Ant Financial strategically
stepped up its investment to acquire more users and capture growth
opportunities of the offline payment market by leveraging its technology
for financial service industries. During the quarter, domestic annual
active users exceeded 700 million, almost 70% of which used three or
more categories of Ant Financial’s services. Ant Financial’s net loss in
the quarter led to our reversal of income recognized in respect of
royalty fees and software technology service fees under our profit
sharing arrangement. The reversal of income amounted to a charge of
RMB910 million (US$132 million) in the quarter ended September 30, 2018,
compared to an income of RMB1,995 million in the same quarter last year.
Other loss, net also included an exchange loss of RMB907 million (US$132
million) in the quarter ended September 30, 2018.
Income tax expenses
Income tax expenses in the quarter ended September 30, 2018 were RMB277
million (US$40 million), compared to RMB2,719 million in the same
quarter of 2017.
Our effective tax rate was 2% in the quarter ended September 30, 2018,
compared to 13% in the same quarter of 2017. The decrease in effective
tax rate was primarily due to the recognition of tax credits of
approximately RMB4.7 billion (US$684 million) during the quarter ended
September 30, 2018, compared to RMB2.3 billion in the same quarter last
year, as certain key subsidiaries were notified of the renewal of their
Key Software Enterprise status for calendar year 2017 by the relevant
tax authorities. Excluding share-based compensation expense, investment
gain/loss, impairment of investments, as well as the above-mentioned tax
credits from the renewal of the Key Software Enterprise status, our
effective tax rate would have been 23% in the quarter ended September
30, 2018.
Share of results of equity investees
Share of results of equity investees in the quarter ended September 30,
2018 was a profit of RMB1,254 million (US$182 million), compared to a
loss of RMB882 million in the same quarter of 2017. We record our share
of results of equity investees one quarter in arrears. Share of results
of equity investees in the quarter ended September 30, 2018 and the
comparative periods consisted of the following:
| Three months ended | ||||||||
| September 30, 2017 | June 30, 2018 | September 30, 2018 | ||||||
| RMB | RMB | RMB | US$ | |||||
| (in millions) | ||||||||
|
Share of (loss) profit of equity investees: |
||||||||
|
– Koubei(1) |
(369) |
– | – | – | ||||
|
– Cainiao Network(2) |
(273) |
– | – | – | ||||
|
– Other equity investees |
190 |
(66) |
1,735 |
252 |
||||
|
Dilution loss |
(14) |
(108) |
(41) |
(6) |
||||
|
Other(3) |
(416) |
(481) |
(440) |
(64) |
||||
|
Total |
(882) |
(655) |
1,254 |
182 |
||||
|
__________________ |
|||
|
(1) |
We have ceased to recognize our share of losses of Koubei as our |
||
|
(2) |
We started to consolidate Cainiao Network in mid-October 2017 after |
||
|
(3) |
Others mainly include amortization of intangible assets of equity |
||
The share of profit of other equity investees in the quarter ended
September 30, 2018 mainly include our share of profit in Suning.
Net income and Non-GAAP net income
Our net income in the quarter ended September 30, 2018 was RMB18,241
million (US$2,656 million), an increase of 5% compared to RMB17,408
million in the same quarter of 2017.
Excluding share-based compensation expense, non-recurring disposal gains
and certain other items, non-GAAP net income in the quarter ended
September 30, 2018 was RMB23,453 million (US$3,415 million), an increase
of 6% compared to RMB22,089 million in the same quarter of 2017. A
reconciliation of net income to non-GAAP net income is included at the
end of this results announcement.
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended
September 30, 2018 was RMB20,033 million (US$2,917 million), an increase
of 13% compared to RMB17,668 million in the same quarter of 2017.
Diluted EPS and non-GAAP diluted EPS
Diluted EPS in the quarter ended September 30, 2018 was RMB7.62
(US$1.11) on a weighted average of 2,628 million diluted shares
outstanding during the quarter, an increase of 12% compared to RMB6.78
on a weighted average of 2,607 million diluted shares outstanding during
the same quarter of 2017. Excluding share-based compensation expense,
non-recurring disposal gains and certain other items, non-GAAP diluted
EPS in the quarter ended September 30, 2018 was RMB9.60 (US$1.40), an
increase of 12% compared to RMB8.57 in the same quarter of 2017. A
reconciliation of diluted EPS to non-GAAP diluted EPS is included at the
end of this results announcement.
Cash, cash equivalents and short-term
investments
As of September 30, 2018, cash, cash equivalents and short-term
investments were RMB171,875 million (US$25,025 million), compared to
RMB177,283 million as of June 30, 2018. The decrease in cash, cash
equivalents and short-term investments during the quarter ended
September 30, 2018 was primarily due to cash used in investing
activities, including acquisition of Trendyol and investments in Focus
Media, partly offset by free cash flow generated from operations of
RMB16,033 million (US$2,334 million).
Cash flow from operating activities and free
cash flow
Net cash provided by operating activities in the quarter ended September
30, 2018 was RMB31,407 million (US$4,573 million), an increase of 4%
compared to RMB30,121 million in the same quarter of 2017. Free cash
flow, a non-GAAP measurement of liquidity, in the quarter ended
September 30, 2018 was RMB16,033 million (US$2,334 million), compared to
RMB22,119 million in the same quarter of 2017. A reconciliation of net
cash provided by operating activities to free cash flow is included at
the end of this results announcement.
Net cash used in investing activities
During the quarter ended September 30, 2018, net cash used in investing
activities of RMB31,584 million (US$4,599 million) primarily reflected
(i) cash outflow of RMB23,352 million (US$3,400 million) for investment
and acquisition activities, including acquisition of Trendyol and
investments in Focus Media, (ii) capital expenditures of RMB12,394
million (US$1,805 million), which included cash outflow for acquisition
of land use rights and construction in progress relating to office
campus of RMB762 million (US$111 million), as well as (iii) acquisition
of licensed copyrights and intangible assets of RMB3,742 million (US$545
million).
Employés
As of September 30, 2018, we had a total of 93,397 employees, compared
to 86,833 as of June 30, 2018. The number of employees as of September
30, 2018 increased by 6,564 from June 30, 2018, primarily due to the
consolidation of newly acquired businesses and our expansion in consumer
services and cloud computing businesses.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to discuss the
financial result at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong
Time) on November 2, 2018.
Details of the conference call are as follows:
International: +65 6713 5090
U.S.: +1 845 675 0437
U.K.: +44
203 621 4779
Hong Kong: +852 3018 6771
Conference ID: 5099548
A live webcast of the earnings conference call can be accessed at http://www.alibabagroup.com/en/ir/earnings.
An archived webcast will be available through the same link following
the call. A replay of the conference call will be available for one week
(dial-in number: +61 2 8199 0299; conference ID: 5099548).
Our results announcement and accompanying slides are available at
Alibaba Group’s Investor Relations website at http://www.alibabagroup.com/en/ir/home
on November 2, 2018.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business anywhere and
the company aims to achieve sustainable growth for 102 years. For fiscal
year ended March 2018, the company reported revenue of US$39.9 billion.
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,”
“potential,” “continue,” “ongoing,” “targets,” “guidance” and similar
déclarations. In addition, statements that are not historical facts,
including statements about Alibaba’s strategies and business plans,
Alibaba’s beliefs, expectations and guidance regarding the growth of its
business and its revenue, the business outlook and quotations from
management in this announcement, as well as Alibaba’s strategic and
operational plans, are or contain forward-looking statements. Ali Baba
may also make forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission (the “SEC”), in press releases
and other written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
Alibaba’s expected revenue growth; Alibaba’s goals and strategies;
Alibaba’s future business development; Alibaba’s ability to maintain the
trusted status of its ecosystem, reputation and brand; risks associated
with increased investments in Alibaba’s business and new business
initiatives; risks associated with strategic acquisitions and
investments; Alibaba’s ability to retain or increase engagement of
consumers, merchants and other participants in its ecosystem and enable
new offerings; Alibaba’s ability to maintain or grow its revenue or
business; risks associated with limitation or restriction of services
provided by Alipay; changes in laws, regulations and regulatory
environment that affect Alibaba’s business operations; la vie privée et
regulatory concerns; competition; security breaches; the continued
growth of the e-commerce market in China and globally; risks associated
with the performance of our business partners, including but not limited
to Ant Financial; and fluctuations in general economic and business
conditions in China and globally and assumptions underlying or related
to any of the foregoing. Further information regarding these and other
risks is included in Alibaba’s filings with the SEC. All information
provided in this results announcement is as of the date of this results
announcement and are based on assumptions that we believe to be
reasonable as of this date, and Alibaba does not undertake any
obligation to update any forward-looking statement, except as required
under applicable law.
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following non-GAAP
financial measures: for our consolidated results, adjusted EBITDA
(including adjusted EBITDA margin), adjusted EBITA (including adjusted
EBITA margin), marketplace-based core commerce adjusted EBITA, non-GAAP
net income, non-GAAP diluted EPS and free cash flow. For more
information on these non-GAAP financial measures, please refer to the
section entitled “Information about Segments” and the table captioned
“Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP
Measures” in this results announcement.
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and
non-GAAP diluted EPS help investors identify and understand underlying
trends in our business without the effect of certain income or expenses
that are reflected in income from operations, net income and diluted
EPS. We believe that marketplace-based core commerce adjusted EBITA is a
measure that can help investors better understand the performance of our
marketplace commerce business, which is the contributor of the large
majority of our revenue. We believe that adjusted EBITDA, adjusted
EBITA, non-GAAP net income, non-GAAP diluted EPS and marketplace-based
core commerce adjusted EBITA provide useful information about our core
operating results, enhance the overall understanding of our past
performance and future prospects and allow for greater visibility with
respect to key metrics used by our management in our financial and
operational decision-making. We consider free cash flow to be a
liquidity measure that provides useful information to management and
investors about the amount of cash generated by our business that can be
used for strategic corporate transactions, including investing in our
new business initiatives, making strategic investments and acquisitions
and strengthening our balance sheet. These non-GAAP measures should not
be considered in isolation or construed as an alternative to income from
operations, net income, diluted EPS, cash flows or any other measure of
performance or as an indicator of our operating performance. These
non-GAAP financial measures presented here may not be comparable to
similarly titled measures presented by other companies. Other companies
may calculate similarly titled measures differently, limiting their
usefulness as comparative measures to our data.
Adjusted EBITDA represents net income before (i) interest and
investment income, net, interest expense, other income (loss), net,
income tax expenses and share of results of equity investees, and (ii)
certain non-cash expenses, consisting of share-based compensation
expense, amortization and depreciation, which we do not believe are
reflective of our core operating performance during the periods
presented.
Adjusted EBITA represents net income before (i) interest and
investment income, net, interest expense, other income (loss), net,
income tax expenses and share of results of equity investees, and (ii)
certain non-cash expenses, consisting of share-based compensation
expense and amortization, which we do not believe are reflective of our
core operating performance during the periods presented.
Marketplace-based core commerce adjusted EBITA represent
adjusted EBITA for core commerce excluding the effects of (i) Ele.me and
Cainiao Network consolidation as well as (ii) strategic investments in
New Retail and Lazada.
Non-GAAP net income represents net income before share-based
compensation expense, amortization, impairment of investments, gain or
loss on deemed disposals/disposals/revaluation of investments,
amortization of excess value receivable arising from the restructuring
of commercial arrangements with Ant Financial, immediate recognition of
unamortized professional fees and upfront fees upon termination of bank
borrowings and others, as adjusted for the tax effects on non-GAAP
adjustments.
Non-GAAP diluted EPS represents non-GAAP net income attributable
to ordinary shareholders divided by the weighted average number of
shares outstanding during the periods on a diluted basis, including
accounting for the effects of the assumed conversion of convertible
preference shares.
Free cash flow represents net cash provided by operating
activities as presented in our consolidated cash flow statement less
purchases of property and equipment, licensed copyrights and intangible
assets (excluding acquisition of land use rights and construction in
progress relating to office campus).
The section entitled “Information about Segments” and the table
captioned “Reconciliations of Non-GAAP Measures to the Nearest
Comparable GAAP Measures” in this results announcement have more details
on the non-GAAP financial measures that are most directly comparable to
GAAP financial measures and the related reconciliations between these
financial measures.
| ALIBABA GROUP HOLDING LIMITED | ||||||||||||
| UNAUDITED CONSOLIDATED INCOME STATEMENTS | ||||||||||||
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions, except per share data) | (in millions, except per share data) | |||||||||||
| Returned |
55,122 |
85,148 |
12,398 |
105,306 |
166,068 |
24,180 |
||||||
|
Cost of revenue |
(22,002) |
(46,786) |
(6,812) |
(39,462) |
(90,506) |
(13,178) |
||||||
|
Product development expenses |
(5,083) |
(8,365) |
(1,218) |
(9,779) |
(19,875) |
(2,894) |
||||||
|
Sales and marketing expenses |
(6,266) |
(9,106) |
(1,326) |
(11,116) |
(18,027) |
(2,625) |
||||||
|
General and administrative expenses |
(3,439) |
(4,779) |
(696) |
(7,118) |
(11,424) |
(1,663) |
||||||
|
Amortization of intangible assets |
(1,748) |
(2,611) |
(380) |
(3,734) |
(4,715) |
(686) |
||||||
| Income from operations |
16,584 |
13,501 |
1,966 |
34,097 |
21,521 |
3,134 |
||||||
|
Interest and investment income, net |
3,435 |
6,635 |
966 |
4,907 |
13,881 |
2,021 |
||||||
|
Interest expense |
(747) |
(1,340) |
(195) |
(1,547) |
(2,553) |
(372) |
||||||
|
Other income (loss), net |
1,737 |
(1,532) |
(223) |
3,624 |
(1,615) |
(235) |
||||||
| Income before income tax and share of results of equity investees |
21,009 |
17,264 |
2,514 |
41,081 |
31,234 |
4,548 |
||||||
|
Income tax expenses |
(2,719) |
(277) |
(40) |
(7,372) |
(5,942) |
(865) |
||||||
|
Share of results of equity investees |
(882) |
1,254 |
182 |
(2,270) |
599 |
87 |
||||||
| Net income |
17,408 |
18,241 |
2,656 |
31,439 |
25,891 |
3,770 |
||||||
|
Net loss attributable to noncontrolling interests |
260 |
1,892 |
275 |
912 |
2,962 |
431 |
||||||
|
Net income attributable to Alibaba Group Holding Limited |
17,668 |
20,133 |
2,931 |
32,351 |
28,853 |
4,201 |
||||||
|
Accretion of mezzanine equity |
– |
(100) |
(14) |
– |
(135) |
(20) |
||||||
| Net income attributable to ordinary shareholders |
17,668 |
20,033 |
2,917 |
32,351 |
28,718 |
4,181 |
||||||
| Earnings per share attributable to ordinary shareholders | ||||||||||||
|
Basic |
6.92 |
7.75 |
1.13 |
12.70 |
11.12 |
1.62 |
||||||
|
Diluted |
6.78 |
7.62 |
1.11 |
12.43 |
10.93 |
1.59 |
||||||
|
Weighted average number of share used in calculating net income per ordinary share |
||||||||||||
|
Basic |
2,552 |
2,584 |
2,547 |
2,582 |
||||||||
|
Diluted |
2,607 |
2,628 |
2,603 |
2,627 |
||||||||
ALIBABA GROUP HOLDING LIMITED
REVENUE
The following table sets forth our revenue by segments for the periods
indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
|
Core commerce(1) |
46,462 |
72,475 |
10,553 |
89,489 |
141,663 |
20,627 |
||||||
|
Cloud computing(2) |
2,975 |
5,667 |
825 |
5,406 |
10,365 |
1,509 |
||||||
|
Digital media and entertainment(3) |
4,798 |
5,940 |
865 |
8,879 |
11,915 |
1,735 |
||||||
|
Innovation initiatives and others(4) |
887 |
1,066 |
155 |
1,532 |
2,125 |
309 |
||||||
|
Total |
55,122 |
85,148 |
12,398 |
105,306 |
166,068 |
24,180 |
||||||
|
__________________ |
|||
|
(1) |
Revenue from core commerce is primarily generated from our China |
||
|
(2) |
Revenue from cloud computing is primarily generated from the |
||
|
(3) |
Revenue from digital media and entertainment is primarily generated |
||
|
(4) |
Revenue from innovation initiatives and others is primarily |
||
ALIBABA GROUP HOLDING LIMITED
INFORMATION ABOUT SEGMENTS
The following table sets forth our income (loss) from operations by
segments for the periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
|
Core commerce |
23,836 |
24,290 |
3,537 |
48,644 |
47,312 |
6,889 |
||||||
|
Cloud computing |
(697) |
(1,165) |
(170) |
(1,229) |
(3,239) |
(472) |
||||||
|
Digital media and entertainment |
(3,383) |
(4,805) |
(700) |
(6,771) |
(9,095) |
(1,324) |
||||||
|
Innovation initiatives and others |
(1,456) |
(2,201) |
(320) |
(3,068) |
(5,976) |
(870) |
||||||
|
Unallocated |
(1,716) |
(2,618) |
(381) |
(3,479) |
(7,481) |
(1,089) |
||||||
|
Total |
16,584 |
13,501 |
1,966 |
34,097 |
21,521 |
3,134 |
||||||
The following table sets forth our adjusted EBITA by segments for the
periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
|
Core commerce |
26,414 |
29,807 |
4,340 |
53,384 |
62,604 |
9,115 |
||||||
|
Cloud computing |
(162) |
(232) |
(34) |
(265) |
(720) |
(105) |
||||||
|
Digital media and entertainment |
(1,749) |
(3,802) |
(554) |
(3,497) |
(6,934) |
(1,009) |
||||||
|
Innovation initiatives and others |
(496) |
(1,241) |
(181) |
(1,130) |
(2,443) |
(356) |
||||||
|
Unallocated |
(989) |
(1,377) |
(200) |
(1,956) |
(2,850) |
(415) |
||||||
|
Total |
23,018 |
23,155 |
3,371 |
46,536 |
49,657 |
7,230 |
||||||
The table below sets forth selected financial information of our
operating segments for six months ended September 30, 2018:
| Six months ended September 30, 2018 | |||||||||||||||||||||
| Digital media | Innovation | ||||||||||||||||||||
| Core | Cloud | and | initiatives | ||||||||||||||||||
| trade | l'informatique | entertainment | et d'autres |
Unallocated(1) |
Consolidated | ||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||
| Returned | 141,663 | 10,365 | 11,915 | 2,125 | – | 166,068 | 24,180 | ||||||||||||||
| Income (loss) from operations | 47,312 | (3,239 | ) | (9,095 | ) | (5,976 | ) | (7,481 | ) | 21,521 | 3,134 | ||||||||||
|
Add: Share-based compensation expense |
11,387 |
2,509 |
1,528 |
3,516 |
4,481 |
23,421 |
3,410 |
||||||||||||||
|
Add: Amortization of intangible assets |
3,905 |
ten |
633 |
17 |
150 |
4,715 |
686 |
||||||||||||||
| Adjusted EBITA | 62,604 | (720 | ) | (6,934 | ) | (2,443 | ) | (2,850 | ) | 49,657 | 7,230 | ||||||||||
| Adjusted EBITA margin | 44 | % (2) | (7 | )% | (58 | )% | (115 | )% |
|
30 | % | ||||||||||
| Six months ended September 30, 2017 | |||||||||||||||||||||
| Digital media | Innovation | ||||||||||||||||||||
| Core | Cloud | and | initiatives | ||||||||||||||||||
| trade | l'informatique | entertainment | et d'autres |
Unallocated(1) |
Consolidated | ||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||
| Returned | 89,489 | 5,406 | 8,879 | 1,532 | – | 105,306 | |||||||||||||||
| Income (loss) from operations | 48,644 | (1,229 | ) | (6,771 | ) | (3,068 | ) | (3,479 | ) | 34,097 | |||||||||||
|
Add: Share-based compensation expense |
3,547 |
959 |
1,096 |
1,746 |
1,357 |
8,705 |
|||||||||||||||
|
Add: Amortization of intangible assets |
1,193 |
5 |
2,178 |
192 |
166 |
3,734 |
|||||||||||||||
| Adjusted EBITA | 53,384 | (265 | ) | (3,497 | ) | (1,130 | ) | (1,956 | ) | 46,536 | |||||||||||
| Adjusted EBITA margin | 60 | % | (5 | )% | (39 | )% | (74 | )% | 44 | % | |||||||||||
|
__________________ |
|||
|
(1) |
Unallocated expenses are primarily related to corporate |
||
|
(2) |
Adjusted EBITA margin is lower than prior year period mainly due to |
||
| ALIBABA GROUP HOLDING LIMITED | ||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||
|
As of March 31, |
As of September 30, |
|||||
|
2018 |
2018 |
|||||
|
RMB |
RMB |
US$ |
||||
| (in millions) | ||||||
| Assets | ||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
199,309 |
164,375 |
23,933 |
|||
|
Short-term investments |
6,086 |
7,500 |
1,092 |
|||
|
Restricted cash and escrow receivables |
3,417 |
7,878 |
1,147 |
|||
|
Investment securities |
4,815 |
9,662 |
1,407 |
|||
|
Prepayments, receivables and other assets |
43,228 |
48,468 |
7,057 |
|||
|
Total current assets |
256,855 |
237,883 |
34,636 |
|||
|
Investment securities (1) |
38,192 |
132,467 |
19,287 |
|||
|
Prepayments, receivables and other assets |
26,274 |
26,156 |
3,808 |
|||
|
Investment in equity investees (1) |
139,700 |
86,823 |
12,642 |
|||
|
Property and equipment, net |
66,489 |
87,025 |
12,671 |
|||
|
Intangible assets, net |
27,465 |
50,684 |
7,380 |
|||
|
Bonne volonté |
162,149 |
203,729 |
29,664 |
|||
| Total assets |
717,124 |
824,767 |
120,088 |
|||
| Liabilities, Mezzanine Equity and Shareholders’ Equity | ||||||
|
Current liabilities: |
||||||
|
Current bank borrowings |
6,028 |
9,022 |
1,313 |
|||
|
Income tax payable |
13,689 |
12,361 |
1,800 |
|||
|
Escrow money payable |
3,053 |
6,202 |
903 |
|||
|
Accrued expenses, accounts payable and other liabilities |
81,165 |
104,785 |
15,257 |
|||
|
Merchant deposits |
9,578 |
9,101 |
1,325 |
|||
|
Deferred revenue and customer advances |
22,297 |
26,625 |
3,877 |
|||
|
Total current liabilities |
135,810 |
168,096 |
24,475 |
|||
| ALIBABA GROUP HOLDING LIMITED | ||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||
|
As of March 31, |
As of September 30, |
|||||
|
2018 |
2018 |
|||||
|
RMB |
RMB | US$ | ||||
| (in millions) | ||||||
|
Deferred revenue |
993 |
1,205 |
175 |
|||
|
Deferred tax liabilities |
19,312 |
19,628 |
2,858 |
|||
|
Non-current bank borrowings |
34,153 |
35,477 |
5,166 |
|||
|
Non-current unsecured senior notes |
85,372 |
93,717 |
13,645 |
|||
|
Other liabilities |
2,045 |
5,296 |
771 |
|||
| Total liabilities |
277,685 |
323,419 |
47,090 |
|||
|
Commitments and contingencies |
– | – | – | |||
|
Mezzanine equity |
3,001 |
6,001 |
874 |
|||
|
Shareholders’ equity: |
||||||
|
Ordinary shares |
1 |
1 |
– | |||
|
Additional paid-in capital |
186,764 |
212,682 |
30,967 |
|||
|
Treasury shares at cost |
(2,233) |
(1,412) |
(206) |
|||
|
Restructuring reserve |
(361) |
(229) |
(33) |
|||
|
Subscription receivables |
(163) |
(179) |
(26) |
|||
|
Statutory reserves |
4,378 |
4,535 |
660 |
|||
|
Accumulated other comprehensive income (loss) (1) |
5,083 |
(1,685) |
(245) |
|||
|
Retained earnings (1) |
172,353 |
207,847 |
30,263 |
|||
|
Total shareholders’ equity |
365,822 |
421,560 |
61,380 |
|||
|
Noncontrolling interests |
70,616 |
73,787 |
10,744 |
|||
| Total equity |
436,438 |
495,347 |
72,124 |
|||
| Total liabilities, mezzanine equity and equity |
717,124 |
824,767 |
120,088 |
|||
|
__________________ |
|||
|
(1) |
We adopted ASU 2016-01, “Financial Instruments — Overall (Subtopic |
||
| ALIBABA GROUP HOLDING LIMITED | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
|
Net cash provided by operating activities(1) |
30,121 |
31,407 |
4,573 |
55,994 |
67,524 |
9,832 |
||||||
|
Net cash used in investing activities(1) |
(25,561) |
(31,584) |
(4,599) |
(39,484) |
(103,254) |
(15,034) |
||||||
|
Net cash (used in) provided by financing activities |
(416) |
(3,477) |
(506) |
(9,310) |
804 |
117 |
||||||
|
Effect of exchange rate changes on cash and cash equivalents, |
(812) |
1,670 |
244 |
(1,904) |
4,453 |
649 |
||||||
|
Increase (decrease) in cash and cash equivalents, restricted cash |
3,332 |
(1,984) |
(288) |
5,296 |
(30,473) |
(4,436) |
||||||
|
Cash and cash equivalents, restricted cash and escrow receivables at |
148,355 |
174,237 |
25,369 |
146,391 |
202,726 |
29,517 |
||||||
|
Cash and cash equivalents, restricted cash and escrow receivables at |
151,687 |
172,253 |
25,081 |
151,687 |
172,253 |
25,081 |
||||||
|
__________________ |
|||
|
(1) |
We adopted ASU 2016-18, “Statement of Cash Flows (Topic 230): |
||
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
The table below sets forth a reconciliation of our net income to
adjusted EBITA and adjusted EBITDA for the periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
| Net income | 17,408 | 18,241 | 2,656 | 31,439 | 25,891 | 3,770 | ||||||
|
Less: Interest and investment income, net |
(3,435) |
(6,635) |
(966) |
(4,907) |
(13,881) |
(2,021) |
||||||
|
Add: Interest expense |
747 |
1,340 |
195 |
1,547 |
2,553 |
372 |
||||||
|
Less: Other income (loss), net |
(1,737) |
1,532 |
223 |
(3,624) |
1,615 |
235 |
||||||
|
Add: Income tax expenses |
2,719 |
277 |
40 |
7,372 |
5,942 |
865 |
||||||
|
Add: Share of results of equity investees |
882 |
(1,254) |
(182) |
2,270 |
(599) |
(87) |
||||||
| Income from operations | 16,584 | 13,501 | 1,966 | 34,097 | 21,521 | 3,134 | ||||||
|
Add: Share-based compensation expense |
4,686 |
7,043 |
1,025 |
8,705 |
23,421 |
3,410 |
||||||
|
Add: Amortization of intangible assets |
1,748 |
2,611 |
380 |
3,734 |
4,715 |
686 |
||||||
| Adjusted EBITA | 23,018 | 23,155 | 3,371 | 46,536 | 49,657 | 7,230 | ||||||
|
Add: Depreciation and amortization of property and equipment and |
2,013 |
3,555 |
518 |
3,619 |
6,412 |
934 |
||||||
| Adjusted EBITDA | 25,031 | 26,710 | 3,889 | 50,155 | 56,069 | 8,164 | ||||||
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of adjusted EBITA for core
commerce to marketplace-based core commerce adjusted EBITA for the
periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
|
Adjusted EBITA for core commerce |
26,414 | 29,807 | 4,340 | 53,384 | 62,604 | 9,115 | ||||||
|
Less: Effect of Ele.me and Cainiao Network consolidation and |
1,550 |
5,835 |
850 |
2,964 |
9,994 |
1,455 |
||||||
|
Marketplace-based core commerce adjusted EBITA |
27,964 |
35,642 | 5,190 | 56,348 | 72,598 | 10,570 | ||||||
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our net income to
non-GAAP net income for the periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
| Net income | 17,408 | 18,241 | 2,656 | 31,439 | 25,891 | 3,770 | ||||||
|
Add: Share-based compensation expense |
4,686 |
7,043 |
1,025 |
8,705 |
23,421 |
3,410 |
||||||
|
Add: Amortization of intangible assets |
1,748 |
2,611 |
380 |
3,734 |
4,715 |
686 |
||||||
|
Add: Impairment of investments |
389 |
358 |
52 |
1,341 |
358 |
52 |
||||||
|
Less: Gain on deemed disposals/disposals/revaluation of investments |
(2,297) |
(5,297) |
(771) |
(3,386) |
(10,705) |
(1,558) |
||||||
|
Add: Amortization of excess value receivable arising from the |
66 |
66 |
ten |
133 |
132 |
19 |
||||||
|
Add: Immediate recognition of unamortized professional fees and |
– |
– |
– |
92 |
– |
– |
||||||
|
Adjusted for tax effects on non-GAAP adjustments(1) |
89 |
431 |
63 |
50 |
(258) |
(37) |
||||||
| Non-GAAP net income | 22,089 | 23,453 | 3,415 | 42,108 | 43,554 | 6,342 | ||||||
|
__________________ |
|||
|
(1) |
Tax effects on non-GAAP adjustments comprise of tax provisions on |
||
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our diluted EPS to
non-GAAP diluted EPS for the periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions, except per share data) | (in millions, except per share data) | |||||||||||
| Net income attributable to ordinary shareholders – basic | 17,668 | 20,033 | 2,917 | 32,351 | 28,718 | 4,181 | ||||||
|
Dilution effect on earnings arising from option plans operated by an |
(3) |
(12) |
(2) |
(6) |
(15) |
(2) |
||||||
|
Net income attributable to ordinary shareholders – diluted |
17,665 |
20,021 |
2,915 |
32,345 |
28,703 |
4,179 |
||||||
|
Add: Non-GAAP adjustments to net income(1) |
4,681 |
5,212 |
759 |
10,669 |
17,663 |
2,572 |
||||||
|
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted EPS |
22,346 | 25,233 | 3,674 | 43,014 | 46,366 | 6,751 | ||||||
| Weighted average number of shares on a diluted basis | 2,607 | 2,628 | 2,603 | 2,627 | ||||||||
| Diluted EPS(2) | 6.78 | 7.62 | 1.11 | 12.43 | 10.93 | 1.59 | ||||||
|
Add: Non-GAAP adjustments to net income per share(3) |
1.79 |
1.98 |
0.29 |
4.09 |
6.72 |
0.98 |
||||||
| Non-GAAP diluted EPS(4) | 8.57 | 9.60 | 1.40 | 16.52 | 17.65 | 2.57 | ||||||
|
|
||||||||||||
|
__________________ |
|||
|
(1) |
See the table above for the reconciliation of net income to non-GAAP |
||
|
(2) |
Diluted EPS is derived from net income attributable to ordinary |
||
|
(3) |
Non-GAAP adjustments to net income per share is derived from |
||
|
(4) |
Non-GAAP diluted EPS is derived from non-GAAP net income |
||
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of net cash provided by
operating activities to free cash flow for the periods indicated:
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| (in millions) | (in millions) | |||||||||||
| Net cash provided by operating activities(1) | 30,121 | 31,407 | 4,573 | 55,994 | 67,524 | 9,832 | ||||||
|
Less: Purchase of property and equipment (excluding land use rights |
(5,322) |
(11,632) |
(1,694) |
(6,535) |
(16,637) |
(2,423) |
||||||
|
Less: Acquisition of licensed copyrights and intangible assets |
(2,680) |
(3,742) |
(545) |
(4,629) |
(8,496) |
(1,237) |
||||||
| Free cash flow | 22,119 | 16,033 | 2,334 | 44,830 | 42,391 | 6,172 | ||||||
|
__________________ |
|||
|
(1) |
We adopted ASU 2016-18, “Statement of Cash Flows (Topic 230): |
||
ALIBABA GROUP HOLDING LIMITED
SELECTED OPERATING DATA
Annual active consumers
The table below sets forth the number of active consumers on our China
retail marketplaces for the periods indicated:
| Twelve months ended | ||||||||||||||||
| Dec 31, | Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | Jun 30, | Sept 30, | |||||||||
| 2016 | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | |||||||||
| (in millions) | ||||||||||||||||
|
Annual active consumers |
443 |
454 |
466 |
488 |
515 |
552 |
576 |
601 |
||||||||
Mobile
The table below sets forth the mobile MAUs on our China retail
marketplaces for the periods indicated:
| The month ended | ||||||||||||||||
| Dec 31, | Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | Jun 30, | Sept 30, | |||||||||
| 2016 | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | |||||||||
| (in millions) | ||||||||||||||||
|
Mobile MAUs |
493 |
507 |
529 |
549 |
580 |
617 |
634 |
666 |
||||||||
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