HANGZHOU, China--(BUSINESS WIRE)--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended September 30, 2024.

“This quarter we continued to invest in the user experience and strengthen product offerings to serve our consumers. We entered into long-term collaborations with industry peers to broaden payment and logistics services on Taobao and Tmall platforms, which we expect will accelerate our overall growth. Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth. Our other businesses continued to improve their operating efficiency, with most of them continuing to increase their profitability or reduce losses,” said Eddie Wu, Chief Executive Officer of Alibaba Group.

“Our revenue growth this quarter was driven by improving monetization of Taobao and Tmall Group, which included GMV-based service fees and merchant adoption of our marketing tool Quanzhantui. Consistent with our strategy, we continue to invest in our core businesses while enhancing operational efficiency. During the quarter we repurchased US$4.1 billion of shares, achieving earnings accretion to our shareholders through a net 2.1% reduction in total shares outstanding since the end of June,” said Toby Xu, Chief Financial Officer of Alibaba Group.

BUSINESS HIGHLIGHTS

In the quarter ended September 30, 2024:

• Revenue was RMB236,503 million (US$33,701 million), an increase of 5% year-over-year.

• Income from operations was RMB35,246 million (US$5,023 million), an increase of 5% year-over-year, primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA. We excluded non-cash share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, decreased 5% year-over-year to RMB40,561 million (US$5,780 million), was primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency.

• Net income attributable to ordinary shareholders was RMB43,874 million (US$6,252 million). Net income was RMB43,547 million (US$6,205 million), an increase of 63% year-over-year, primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations. Non-GAAP net income in the quarter ended September 30, 2024 was RMB36,518 million (US$5,204 million), a decrease of 9% compared to RMB40,188 million in the same quarter of 2023.

• Diluted earnings per ADS was RMB18.17 (US$2.59). Diluted earnings per share was RMB2.27 (US$0.32 or HK$2.52). Non-GAAP diluted earnings per ADS was RMB15.06 (US$2.15), a decrease of 4% year-over-year. Non-GAAP diluted earnings per share was RMB1.88 (US$0.27 or HK$2.08), a decrease of 4% year-over-year.

• Net cash provided by operating activities was RMB31,438 million (US$4,480 million), a decrease of 36% compared to RMB49,231 million in the same quarter of 2023. Free cash flow, a non-GAAP measurement of liquidity, was RMB13,735 million (US$1,957 million), a decrease of 70% compared to RMB45,220 million in the same quarter of 2023. The decrease in free cash flow was mainly attributed to our investments in Alibaba Cloud infrastructure, refund to Tmall merchants after we cancelled the annual service fee and other working capital changes related to factors including scale down of certain direct sales businesses.

Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.

BUSINESS AND STRATEGIC UPDATES

Taobao and Tmall Group

During the quarter we increased investment in strategic initiatives such as price-competitive products, customer service, membership program benefits and technology, with the aim of enhancing user experience. These efforts led to higher purchase frequency and improved feedback regarding the overall shopping experience year-over-year.

We adopted a more open approach for payment and logistics services on our platforms to make shopping on our platforms more convenient to a larger base of consumers and improve merchants’ operating efficiency. We have already observed much stronger momentum in new purchasers, and we believe our focus on user growth and retention will drive the overall growth of our platforms.

Starting from September 1, we implemented a software service fee based on the GMV of completed transactions on our platform, which puts us in line with the common practice of the e-commerce industry. In the meantime, we cancelled the annual service fee for Tmall merchants and provided software service fee rebates to certain small and medium-sized merchants. In addition, Quanzhantui, our AI-powered platform-wide marketing tool, saw steady increase in merchant adoption. Merchants benefit from the use of Quanzhantui through improvement of their marketing efficiency, and with higher efficiency we expect merchants to increase their marketing spending on our platform.

During the quarter, online GMV growth was supported by double-digit order growth year-over-year, mainly driven by the increase in purchase frequency, partly offset by the decline in average order value. In October and November, we had a successful 11.11 Global Shopping Festival, during which Taobao and Tmall achieved robust growth in GMV and a record number of purchasers.

The number of 88VIP members, our highest spending consumer group, continued to increase by double-digits year-over-year, reaching 46 million during the quarter. Our premium shoppers are loyal customers who increase our purchase frequency and drive GMV growth. Accordingly, we target to continue to grow the subscription of 88VIP membership by investing in improved benefits and services.

Cloud Intelligence Group

For the quarter ended September 30, 2024, revenue from Cloud Intelligence Group was RMB29,610 million (US$4,219 million), an increase of 7% year-over-year.

During this quarter, overall revenue excluding Alibaba-consolidated subsidiaries grew over 7% year-over-year, driven by double-digit public cloud growth, including increasing adoption of AI-related products. AI-related product revenue grew at triple-digits year-over-year for the fifth consecutive quarter. We will continue to invest in anticipation of customer growth and in technology, particularly in AI infrastructure, to capture the increasing trend of cloud adoption for AI and to maintain our market leadership.

Alibaba Cloud has gained notable recognition as the service provider of choice in China for public cloud and AI training and applications. According to The Forrester Wave™: Public Cloud Platforms in China 2024 report, Alibaba Cloud was named a Leader, achieving the highest score possible in 23 out of 32 criteria, as well as the top scores in both the current offering and strategy categories. During the quarter, Alibaba Cloud was also recognized as a Leader in the Omdia Universe: Chinese Commercial Foundation Model 2024 report, ranking first in both strategy execution and technical capabilities. These achievements underscore Alibaba Cloud's leadership as the best-in-class public cloud and AI platform in China.

In September, we held our 16th annual cloud computing developer summit and exhibition, the Apsara Conference 2024, during which Cloud Intelligence Group unveiled new technologies, including:

• Qwen (通义千问) Large Model Family Upgrades: We introduced significant upgrades across the Qwen large model family, including the release of the open-source Qwen 2.5 series, which has become one of the leading models in the global open-source ecosystem, with the flagship Qwen 2.5-72B demonstrating strong results across benchmarks, outperforming industry players. As of September 30, 2024, more than 70,000 derivative models have been developed on Hugging Face based on the Qwen family of models since it was first open-sourced in 2023, demonstrating its position as one of the most widely adopted open-source models globally.

• Cost-efficient and Accessible AI: Alibaba Cloud remains committed to providing customers with the best value in AI capabilities. During this quarter, we significantly improved cost-efficiency for the customers of Qwen models by reducing the charge rate for API calls, making advanced AI technologies more affordable and accessible.

• Comprehensive AI Infrastructure Upgrades: To better position ourselves to capture AI adoption, we have strengthened AI infrastructure to enhance scalability and performance. Recently, we launched GPU container services, and upgraded AI server as well as high-performance network products. These improvements have significantly enhanced model training and inference efficiency across various industries.

Alibaba International Digital Commerce Group (“AIDC”)

For the quarter ended September 30, 2024, revenue from AIDC grew 29% year-over-year to RMB31,672 million (US$4,513 million). The strong performance continued to be driven by growth of cross-border businesses, in particular AliExpress’ Choice business. AliExpress and Trendyol platforms continued their investment to increase mindshare in select markets in Europe and the Gulf region. At the same time, we improved efficiency of our operations and investment. As a result, the unit economics of the Choice business improved on a sequential basis.

The AliExpress platform continued to enhance its value proposition by expanding its supplier base, enriching its product offerings and meeting the needs of local consumers. During the quarter, AliExpress launched the “AliExpressDirect” model, aiming to expand product choice and optimize fulfillment efficiency by leveraging local inventories. In addition, synergies between AliExpress and the cross-border logistics operations of Cainiao have further strengthened AliExpress’ competitiveness, with average delivery time shortened significantly quarter-over-quarter.

Cainiao Smart Logistics Network Limited (“Cainiao”)

For the quarter ended September 30, 2024, revenue from Cainiao grew 8% year-over-year to RMB24,647 million (US$3,512 million), primarily driven by increase in revenue from cross-border fulfillment solutions.

We will continue to drive synergies between Cainiao and our cross-border e-commerce business. To meet the demands of an expanding cross-border e-commerce business, Cainiao’s strategy is to strengthen its end-to-end capabilities by developing a highly-digitalized global logistics network. Furthermore, Cainiao Express started providing logistics services on other e-commerce platform in October, further expanding its market reach.

Local Services Group

For the quarter ended September 30, 2024, revenue from Local Services Group grew by 14% year-over-year to RMB17,725 million (US$2,526 million), driven by the order growth of both Amap and Ele.me, as well as revenue growth from marketing services. During this quarter, Local Services Group losses narrowed significantly year-over-year, driven by improving operating efficiency as well as increasing scale. During National Day holiday in October, Amap recorded an all-time high of over 300 million peak daily active users.

Digital Media and Entertainment Group

During the quarter ended September 30, 2024, revenue of Digital Media and Entertainment Group was RMB5,694 million (US$811 million), a decrease of 1% year-over-year. Loss of Digital Media and Entertainment Group narrowed year-over-year, with Youku progressively reducing its operating loss due to increased advertising revenue as well as improved content investment efficiency during the quarter.

Share Repurchases

During the quarter ended September 30, 2024, we repurchased a total of 414 million ordinary shares (equivalent to 52 million ADSs) for a total of US$4.1 billion. As of September 30, 2024, we had 18,620 million ordinary shares (equivalent to 2,327 million ADSs) outstanding, a net decrease of 405 million ordinary shares compared to June 30, 2024, or a 2.1% net reduction in our outstanding shares after accounting for shares issued under our ESOP. The remaining amount of Board authorization for our share repurchase program, which is effective through March 2027, was US$22.0 billion as of September 30, 2024.

SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS

	Three months ended September 30,
	2023		2024
	RMB		RMB		US$		YoY % Chinese: https://s1.c-conf.com/diamondpass/10042441-ywtss.html Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference. A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results. 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 from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10042440; Chinese conference PIN 10042441). Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investor-relations on November 15, 2024 to view the earnings release and accompanying slides prior to the conference call. ABOUT ALIBABA GROUP Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years. EXCHANGE RATE INFORMATION This results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB7.0176 to US$1.00, the exchange rate on September 30, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.90179 to HK$1.00, the middle rate on September 30, 2024 as published by the People’s Bank of China. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding. 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 “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about Alibaba Group’s new organizational and governance structure, Alibaba’s strategies and business and operational plans, Alibaba’s beliefs, expectations and guidance regarding the growth of its business, revenue and return on investments, share repurchases and the business outlook and quotations from management in this announcement, are or contain forward-looking statements. 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 implementation of Alibaba Group’s new organizational and governance structure; Alibaba’s ability to compete, innovate and maintain or grow its business; risks associated with sustained investments in Alibaba’s businesses; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including national trade, investment, protectionist or other policies and export control, economic or trade sanctions; 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 U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. 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), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures 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 its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. 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. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and 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 interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has 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,   2023 2024 2023 2024   RMB RMB US$ RMB RMB US$   (in millions, except per share data) (in millions, except per share data) Revenue 224,790 236,503 33,701 458,946 479,739 68,362 Cost of revenue (139,664) (144,029) (20,524) (282,011) (290,135) (41,344) Product development expenses (14,218) (14,182) (2,020) (24,683) (27,555) (3,927) Sales and marketing expenses (25,485) (32,471) (4,627) (52,532) (65,167) (9,286) General and administrative expenses (9,408) (9,777) (1,393) (16,705) (23,057) (3,285) Amortization and impairment of intangible assets (2,431) (1,649) (235) (4,910) (3,441) (490) Impairment of goodwill – – – (2,031) – – Other gains, net – 851 121 – 851 121               Income from operations 33,584 35,246 5,023 76,074 71,235 10,151 Interest and investment income, net 5,136 18,607 2,652 (762) 17,129 2,441 Interest expense (1,854) (2,427) (346) (3,638) (4,615) (658) Other income (expense), net 1,391 (1,478) (211) 2,755 (1,221) (174)               Income before income tax and share of results of equity method investees 38,257 49,948 7,118 74,429 82,528 11,760 Income tax expenses (5,797) (7,379) (1,052) (11,819) (17,442) (2,485) Share of results of equity method investees (5,764) 978 139 (2,914) 2,483 354               Net income 26,696 43,547 6,205 59,696 67,569 9,629 Net loss attributable to noncontrolling interests 1,151 486 70 2,393 854 121               Net income attributable to Alibaba Group Holding Limited 27,847 44,033 6,275 62,089 68,423 9,750               Accretion of mezzanine equity (141) (159) (23) (51) (280) (40)               Net income attributable to ordinary shareholders 27,706 43,874 6,252 62,038 68,143 9,710               Earnings per share attributable to ordinary shareholders(1)             Basic 1.36 2.34 0.33 3.04 3.58 0.51 Diluted 1.35 2.27 0.32 3.01 3.50 0.50               Earnings per ADS attributable to ordinary shareholders(1)             Basic 10.90 18.71 2.67 24.31 28.62 4.08 Diluted 10.77 18.17 2.59 24.08 28.00 3.99               Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1)             Basic 20,335 18,761   20,414 19,045   Diluted 20,526 19,322   20,567 19,459   ____________________ (1) Each ADS represents eight ordinary shares. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS     As of March 31, As of September 30,   2024 2024   RMB RMB US$   (in millions) Assets       Current assets:       Cash and cash equivalents 248,125 182,992 26,076 Short-term investments 262,955 155,530 22,163 Restricted cash and escrow receivables 38,299 45,480 6,481 Equity securities and other investments 59,949 50,266 7,163 Prepayments, receivables and other assets 143,536 174,834 24,913 Total current assets 752,864 609,102 86,796   Equity securities and other investments 220,942 344,658 49,113 Prepayments, receivables and other assets 116,102 115,960 16,524 Investment in equity method investees 203,131 202,548 28,863 Property and equipment, net 185,161 207,917 29,628 Intangible assets, net 26,950 22,906 3,264 Goodwill 259,679 259,621 36,996 Total assets 1,764,829 1,762,712 251,184         Liabilities, Mezzanine Equity and Shareholders’ Equity       Current liabilities:       Current bank borrowings 12,749 16,938 2,414 Current unsecured senior notes 16,252 15,786 2,249 Income tax payable 9,068 8,115 1,156 Accrued expenses, accounts payable and other liabilities 297,883 322,743 45,991 Merchant deposits 12,737 3,813 543 Deferred revenue and customer advances 72,818 77,473 11,040 Total current liabilities 421,507 444,868 63,393   ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)     As of March 31, As of September 30,   2024 2024   RMB RMB US$   (in millions)         Deferred revenue 4,069 4,318 615 Deferred tax liabilities 53,012 54,747 7,801 Non-current bank borrowings 55,686 51,302 7,311 Non-current unsecured senior notes 86,089 83,608 11,914 Non-current convertible unsecured senior notes – 34,626 4,934 Other liabilities 31,867 31,365 4,470 Total liabilities 652,230 704,834 100,438         Commitments and contingencies       Mezzanine equity 10,728 11,592 1,651 Shareholders’ equity:   Ordinary shares 1 1 – Additional paid-in capital 397,999 380,145 54,170 Treasury shares at cost (27,684) (36,185) (5,156) Statutory reserves 14,733 15,885 2,264 Accumulated other comprehensive income 3,598 467 66 Retained earnings 597,897 593,612 84,589         Total shareholders’ equity 986,544 953,925 135,933 Noncontrolling interests 115,327 92,361 13,162         Total equity 1,101,871 1,046,286 149,095       Total liabilities, mezzanine equity and equity 1,764,829 1,762,712 251,184   ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     Three months ended September 30, Six months ended September 30,   2023 2024 2023 2024   RMB RMB US$ RMB RMB US$   (in millions) (in millions)               Net cash provided by operating activities 49,231 31,438 4,480 94,537 65,074 9,273 Net cash (used in) provided by investing activities (23,761) 964 137 (11,166) (34,865) (4,968) Net cash used in financing activities (12,382) (66,782) (9,516) (37,018) (86,364) (12,307) Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables 813 (2,456) (350) 5,132 (1,797) (256)               Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables 13,901 (36,836) (5,249) 51,485 (57,952) (8,258) Cash and cash equivalents, restricted cash and escrow receivables at beginning of period 267,094 265,308 37,806 229,510 286,424 40,815               Cash and cash equivalents, restricted cash and escrow receivables at end of period 280,995 228,472 32,557 280,995 228,472 32,557   ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. 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,   2023 2024 2023 2024   RMB RMB US$ RMB RMB US$   (in millions) (in millions) Net income 26,696 43,547 6,205 59,696 67,569 9,629 Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:             Interest and investment income, net (5,136) (18,607) (2,652) 762 (17,129) (2,441) Interest expense 1,854 2,427 346 3,638 4,615 658 Other (income) expense, net (1,391) 1,478 211 (2,755) 1,221 174 Income tax expenses 5,797 7,379 1,052 11,819 17,442 2,485 Share of results of equity method investees 5,764 (978) (139) 2,914 (2,483) (354) Income from operations 33,584 35,246 5,023 76,074 71,235 10,151 Non-cash share-based compensation expense 6,830 3,666 522 5,201 7,775 1,108 Amortization and impairment of intangible assets 2,431 1,649 235 4,910 3,441 490 Impairment of goodwill – – – 2,031 – – Provision for the shareholder class action lawsuits – – – – 3,145 448 Adjusted EBITA 42,845 40,561 5,780 88,216 85,596 12,197 Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 6,392 6,766 964 13,073 12,892 1,837 Adjusted EBITDA 49,237 47,327 6,744 101,289 98,488 14,034   ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. 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,   2023 2024 2023 2024   RMB RMB US$ RMB RMB US$   (in millions) (in millions)               Net income 26,696 43,547 6,205 59,696 67,569 9,629 Adjustments to reconcile net income to non-GAAP net income:             Non-cash share-based compensation expense 6,830 3,666 522 5,201 7,775 1,108 Amortization and impairment of intangible assets 2,431 1,649 235 4,910 3,441 490 Provision for the shareholder class action lawsuits – – – – 3,145 448 (Gain) Loss on deemed disposals/disposals/ revaluation of investments (1,731) (12,697) (1,809) 7,307 (8,116) (1,157) Impairment of goodwill and investments, and others 7,604 756 108 11,873 5,067 722 Tax effects (1) (1,642) (403) (57) (3,877) (1,672) (238)               Non-GAAP net income 40,188 36,518 5,204 85,110 77,209 11,002 ____________________ (1) Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)   The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:     Three months ended September 30, Six months ended September 30,   2023 2024 2023 2024   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 27,706 43,874 6,252 62,038 68,143 9,710 Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries (66) (56) (8) (134) (131) (19) Adjustments for interest expense attributable to convertible unsecured senior notes – 69 10 – 95 14 Net income attributable to ordinary shareholders – diluted 27,640 43,887 6,254 61,904 68,107 9,705 Non-GAAP adjustments to net income attributable to ordinary shareholders(1) 12,478 (7,524) (1,072) 22,949 8,521 1,214               Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS 40,118 36,363 5,182 84,853 76,628 10,919               Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2) 20,526 19,322   20,567 19,459                 Diluted earnings per share(2)(3) 1.35 2.27 0.32 3.01 3.50 0.50               Non-GAAP diluted earnings per share(2)(4) 1.95 1.88 0.27 4.13 3.94 0.56               Diluted earnings per ADS(2)(3) 10.77 18.17 2.59 24.08 28.00 3.99               Non-GAAP diluted earnings per ADS(2)(4) 15.63 15.06 2.15 33.00 31.50 4.49   ____________________ (1) Non-GAAP adjustments excluding the attributions to the noncontrolling interests. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before excluding the attributions to the noncontrolling interests). (2) Each ADS represents eight ordinary shares. (3) Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. (4) Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. 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,   2023 2024 2023 2024   RMB RMB US$ RMB RMB US$   (in millions) (in millions) Net cash provided by operating activities 49,231 31,438 4,480 94,537 65,074 9,273 Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) (4,112) (16,977) (2,419) (10,119) (28,916) (4,120) Less: Changes in the buyer protection fund deposits 101 (726) (104) (109) (5,051) (720)               Free cash flow 45,220 13,735 1,957 84,309 31,107 4,433   Tags : ALIBABA GROUP ANNOUNCES SEPTEMBER QUARTER RESULTS IAA Announces New Market Alliance in Oman Previous Reconfigurable Battery Systems (RBS) Industry Research, 2024-2034 with Tesla, Panasonic, LG Chem, and QuantumScape Dominating the $34.29 Billion Market - ResearchAndMarkets.com Next Suggested Reads: Vontier to Participate in Upcoming Investor Conferences Bot Auto: Rewriting the Story for Autonomous Vehicle Companies Peer-to-Peer Electric Vehicle Charging Business Analysis Report 2024: Global Market to Reach $804 Million by 2030, Driven by Blockchain Technology and Secure Payment Systems - ResearchAndMarkets.com E-Powertrain Market Report 2024, by Integration Type, Component (Motor, Battery, BMS, Controller, PDM, Inverter/Converter, on-Board Charger), Propulsion (BEV, PHEV), Vehicle Type and Region - ResearchAndMarkets.com ArcBest Named to Fast Company’s List of the Next Big Things in Tech Battery Management System Business Research Report 2024-2030: Advancements in Battery Chemistries Generate New Opportunities for BMS Integration - ResearchAndMarkets.com Vision Products, LLC to Demonstrate Zero Distortion HMD at I/ITSEC 2024 in Booth 524 Cognigy Debuts CX Disruptors Season 3, Highlighting Enterprise Contact Center Success Stories with AI Agents Available On Scan to read on app Subscribe Newsletter I agree to the privacy policy. 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