Alibaba Group Holding Ltd 6-K, filed Aug 15, 2024

Alibaba Group Holding Ltd (BABA)

6-K 2024-08-15 For: 2024-08-15

Added on July 04, 2026

About this 6-K

Alibaba Group Holding Ltd filed this 6-K on August 15, 2024.

	ALIBABA GROUP HOLDING LIMITED

Date: August 15, 2024	By:	/s/ Toby Hong XU
	Name:	Toby Hong XU
	Title:	Chief Financial Officer

	Three months ended June 30,
	2023			2024					YoY %
	RMB			RMB			US$		Change

	(in millions, except percentages and per share amounts)
Revenue		234,156			243,236			33,470		4	%
Income from operations		42,490			35,989			4,952		(15	)%⁽²⁾
Operating margin		18	%		15	%
Adjusted EBITDA⁽¹⁾		52,052			51,161			7,040		(2	)%⁽³⁾
Adjusted EBITDA margin⁽¹⁾		22	%		21	%
Adjusted EBITA⁽¹⁾		45,371			45,035			6,197		(1	)%⁽³⁾
Adjusted EBITA margin⁽¹⁾		19	%		19	%

Net income		33,000			24,022			3,306		(27	)%⁽⁴⁾
Net income attributable to ordinary shareholders		34,332			24,269			3,340		(29	)%⁽⁴⁾
Non-GAAP net income⁽¹⁾		44,922			40,691			5,599		(9	)%⁽⁴⁾

Diluted earnings per share⁽⁵⁾		1.66			1.24			0.17		(26	)%⁽⁴⁾⁽⁶⁾
Diluted earnings per ADS⁽⁵⁾		13.30			9.89			1.36		(26	)%⁽⁴⁾⁽⁶⁾
Non-GAAP diluted earnings per share^(1) (5)		2.17			2.05			0.28		(5	)%⁽⁴⁾⁽⁶⁾
Non-GAAP diluted earnings per ADS^(1) (5)		17.37			16.44			2.26		(5	)%⁽⁴⁾⁽⁶⁾

	Three months ended June 30,
	2023			2024						YoY %
	RMB			RMB			US$			Change

	(in millions, except percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management		79,661			80,115			11,024			1	%
- Direct sales and others⁽²⁾		30,167			27,306			3,758			(9	)%
		109,828			107,421			14,782			(2	)%
China commerce wholesale		5,125			5,952			819			16	%
Total Taobao and Tmall Group		114,953			113,373			15,601			(1	)%

Cloud Intelligence Group		25,065			26,549			3,653			6	%

Alibaba International Digital Commerce Group:
International commerce retail		17,138			23,691			3,260			38	%
International commerce wholesale		4,985			5,602			771			12	%
Total Alibaba International Digital Commerce Group		22,123			29,293			4,031			32	%

Cainiao Smart Logistics Network Limited		23,164			26,811			3,689			16	%
Local Services Group		14,450			16,229			2,233			12	%
Digital Media and Entertainment Group		5,381			5,581			768			4	%
All others⁽³⁾		45,798			47,001			6,468			3	%
Total segment revenue		250,934			264,837			36,443			6	%
Unallocated		249			419			58
Inter-segment elimination		(17,027	)		(22,020	)		(3,031	)
Consolidated revenue		234,156			243,236			33,470			4	%

	Three months ended June 30,
	2023			2024						YoY %
	RMB			RMB			US$			Change⁽⁴⁾

	(in millions, except percentages)
Taobao and Tmall Group		49,319			48,810			6,716			(1	)%
Cloud Intelligence Group		916			2,337			322			155	%
Alibaba International Digital Commerce Group		(420	)		(3,706	)		(510	)		(782	)%
Cainiao Smart Logistics Network Limited		877			618			85			(30	)%
Local Services Group		(1,982	)		(386	)		(53	)		81	%
Digital Media and Entertainment Group		63			(103	)		(14	)		N/A
All others⁽²⁾		(1,733	)		(1,263	)		(174	)		27	%
Total segment adjusted EBITA		47,040			46,307			6,372			(2	)%
Unallocated⁽³⁾		(1,463	)		(871	)		(120	)
Inter-segment elimination		(206	)		(401	)		(55	)
Consolidated adjusted EBITA		45,371			45,035			6,197			(1	)%
Less: Non-cash share-based compensation expense		1,629			(4,109	)		(565	)
Less: Amortization and impairment of intangible assets		(2,479	)		(1,792	)		(247	)
Less: Impairment of goodwill		(2,031	)		–			–
Less: Provision for the shareholder class action lawsuits		–			(3,145	)		(433	)
Income from operations		42,490			35,989			4,952			(15	)%

	·	*China Commerce Retail Business*

		Revenue from our China commerce retail business in the quarter ended June 30, 2024 was RMB107,421 million (US$14,782 million), a decrease of 2% compared to RMB109,828 million in the same quarter of 2023 due to the 9% decrease in direct sales revenue described below.

		Customer management revenue increased by 1% year-over-year, primarily due to a high-single-digit year-over-year growth in online GMV, partly offset by a decline in take rate. The year-over-year decrease in take rate was primarily due to increasing proportion of GMV generated from new models that currently have lower monetization rates.

		Direct sales and others revenue under China commerce retail business in the quarter ended June 30, 2024 was RMB27,306 million (US$3,758 million), a decrease of 9% compared to RMB30,167 million in the same quarter of 2023, primarily attributable to the decline in sales of consumer electronics and appliances due to our planned reduction of certain direct sales businesses, partly offset by the increase in sales of groceries.

	·	*China Commerce Wholesale Business*

		Revenue from our China commerce wholesale business in the quarter ended June 30, 2024 was RMB5,952 million (US$819 million), an increase of 16% compared to RMB5,125 million in the same quarter of 2023, primarily due to an increase in revenue from value-added services provided to paying members.

	Three months ended June 30,														% of
	2023							2024							Revenue
		RMB			% of Revenue			RMB		US$		% of Revenue			YoY change

		(in millions, except percentages)
Costs and expenses:
Cost of revenue			142,347			60.8	%		146,106		20,105		60.1	%		(0.7	)%
Product development expenses			10,465			4.5	%		13,373		1,840		5.5	%		1.0	%
Sales and marketing expenses			27,047			11.6	%		32,696		4,499		13.4	%		1.8	%
General and administrative expenses			7,297			3.1	%		13,280		1,827		5.5	%		2.4	%
Amortization and impairment of intangible assets			2,479			1.1	%		1,792		247		0.7	%		(0.4	)%
Impairment of goodwill			2,031			0.9	%		–		–		–			(0.9	)%
Total costs and expenses			191,666						207,247		28,518

Share-based compensation expense:
Cost of revenue			(307	)		(0.1	)%		586		80		0.2	%		0.3	%
Product development expenses			(242	)		(0.1	)%		1,803		248		0.7	%		0.8	%
Sales and marketing expenses			(125	)		(0.1	)%		399		55		0.2	%		0.3	%
General and administrative expenses			(955	)		(0.4	)%		1,343		185		0.6	%		1.0	%
Total share-based compensation expense			(1,629	)					4,131		568

Costs and expenses excluding share-based compensation expense:
Cost of revenue			142,654			60.9	%		145,520		20,025		59.8	%		(1.1	)%
Product development expenses			10,707			4.6	%		11,570		1,592		4.8	%		0.2	%
Sales and marketing expenses			27,172			11.6	%		32,297		4,444		13.3	%		1.7	%
General and administrative expenses			8,252			3.5	%		11,937		1,642		4.9	%		1.4	%
Amortization and impairment of intangible assets			2,479			1.1	%		1,792		247		0.7	%		(0.4	)%
Impairment of goodwill			2,031			0.9	%		–		–		–			(0.9	)%
Total costs and expenses excluding share-based compensation expense			193,295						203,116		27,950

	As of March 31,		As of June 30,
	2024		2024
	RMB		RMB		US$

			(in millions)
Assets
Current assets:
Cash and cash equivalents		248,125		219,167		30,158
Short-term investments		262,955		176,030		24,223
Restricted cash and escrow receivables		38,299		46,141		6,349
Equity securities and other investments		59,949		53,727		7,393
Prepayments, receivables and other assets		143,536		158,625		21,828
Total current assets		752,864		653,690		89,951

Equity securities and other investments		220,942		330,935		45,538
Prepayments, receivables and other assets		116,102		117,340		16,146
Investment in equity method investees		203,131		203,873		28,054
Property and equipment, net		185,161		194,222		26,726
Intangible assets, net		26,950		25,272		3,478
Goodwill		259,679		259,722		35,739
Total assets		1,764,829		1,785,054		245,632

Liabilities, Mezzanine Equity and Shareholders’ Equity
Current liabilities:
Current bank borrowings		12,749		13,567		1,867
Current unsecured senior notes		16,252		16,343		2,249
Income tax payable		9,068		6,868		945
Accrued expenses, accounts payable and other liabilities		297,883		339,279		46,686
Merchant deposits		12,737		12,449		1,713
Deferred revenue and customer advances		72,818		74,384		10,236
Total current liabilities		421,507		462,890		63,696