Alibaba Group Holding Ltd 6-K, filed Aug 10, 2023

Alibaba Group Holding Ltd (BABA)

6-K 2023-08-10 For: 2023-08-10

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Added on April 02, 2026

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Alibaba Group Holding Ltd filed this 6-K on August 10, 2023.

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	ALIBABA GROUP HOLDING LIMITED

Date: August 10, 2023	By:	/s/ Toby Hong XU
	Name:	Toby Hong XU
	Title:	Chief Financial Officer

	Three months ended June 30,
	2022			2023
									YoY %
	RMB			RMB			US$		Change

	(in millions, except percentages and per share amounts)
Revenue		205,555			234,156			32,292		14	%

Income from operations		24,943			42,490			5,860		70	%⁽²⁾
Operating margin		12	%		18	%
Adjusted EBITDA⁽¹⁾		41,114			52,052			7,178		27	%⁽³⁾
Adjusted EBITDA margin⁽¹⁾		20	%		22	%
Adjusted EBITA⁽¹⁾		34,419			45,371			6,257		32	%⁽³⁾
Adjusted EBITA margin⁽¹⁾		17	%		19	%

Net income		20,298			33,000			4,551		63	%⁽⁴⁾
Net income attributable to ordinary shareholders		22,739			34,332			4,735		51	%⁽⁴⁾
Non-GAAP net income⁽¹⁾		30,252			44,922			6,195		48	%⁽³⁾

Diluted earnings per share⁽⁵⁾		1.06			1.66			0.23		56	%^(4) (6)
Diluted earnings per ADS⁽⁵⁾		8.51			13.30			1.83		56	%^(4) (6)
Non-GAAP diluted earnings per share^(1) (5)		1.47			2.17			0.30		48	%^(3) (6)
Non-GAAP diluted earnings per ADS^(1) (5)		11.73			17.37			2.40		48	%^(3) (6)

	(1)	See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.
	(2)	Excluding the reversal of share-based compensation expense of RMB6,901 million (US$952 million) as discussed in “June Quarter Other Financial Results” below, our income from operations would have increased by 43% year-over-year, primarily contributed by revenue growth and increase in operating efficiency. Please refer to “June Quarter Other Financial Results” section below for details.
	(3)	The year-over-year increases were primarily contributed by the revenue growth and the increase in operating efficiency.
	(4)	The year-over-year increases were primarily attributable to the increase in income from operations and the increase in share of results of equity method investees, partly offset by the net losses arising from the decreases in market prices of our equity investments in publicly-traded companies, compared to net gains from these investments in the same quarter last year.
	(5)	Each ADS represents eight ordinary shares.
	(6)	The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.

	Three months ended June 30,
	2022			2023
										YoY %
	RMB			RMB			US$			Change

	(in millions, except percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management		72,425			79,661			10,986			10	%
- Direct sales and others⁽²⁾		24,998			30,167			4,160			21	%
		97,423			109,828			15,146			13	%
China commerce wholesale		5,094			5,125			707			1	%
Total Taobao and Tmall Group		102,517			114,953			15,853			12	%

Alibaba International Digital Commerce Group:
International commerce retail		10,742			17,138			2,364			60	%
International commerce wholesale		4,979			4,985			687			0	%
Total Alibaba International Digital Commerce Group		15,721			22,123			3,051			41	%

Local Services Group		11,131			14,450			1,993			30	%
Cainiao Smart Logistics Network Limited		17,292			23,164			3,194			34	%
Cloud Intelligence Group		24,127			25,123			3,465			4	%
Digital Media and Entertainment Group		3,966			5,381			742			36	%
All others⁽³⁾		45,152			45,541			6,280			1	%
Total segment revenue		219,906			250,735			34,578			14	%
Unallocated		193			249			34
Consolidation adjustments⁽⁴⁾		(14,544	)		(16,828	)		(2,320	)
Consolidated revenue		205,555			234,156			32,292			14	%

	(1)	Starting from the quarter ended June 30, 2023, our segment reporting has been updated to reflect our Reorganization. Our CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change. Comparative figures were reclassified to conform to this presentation.
	(2)	Direct sales and others revenue under Taobao and Tmall Group primarily represents our direct sales businesses, comprising mainly Tmall Supermarket and Tmall Global, where revenue and cost of inventory are recorded on a gross basis.
	(3)	All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy and other businesses. The majority of revenue within all others consist of direct sales revenue, which is recorded on a gross basis.
	(4)	Consolidation adjustments primarily relate to inter-segment adjustments.

	(1)	Starting from the quarter ended June 30, 2023, our segment reporting has been updated to reflect our Reorganization. Our CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change. Comparative figures were reclassified to conform to this presentation.
	(2)	All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy and other businesses.
	(3)	Unallocated primarily relate to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.
	(4)	Consolidation adjustments primarily relate to inter-segment adjustments.
	(5)	For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.

	Three months ended June 30,														% of
	2022					2023									Revenue
	RMB		% of Revenue			RMB			US$			% of Revenue			YoY change

	(in millions, except percentages)
Costs and expenses:
Cost of revenue		129,657		63	%		142,347			19,631			61	%		(2	)%
Product development expenses		14,193		7	%		10,465			1,443			4	%		(3	)%
Sales and marketing expenses		25,578		12	%		27,047			3,730			12	%		0	%
General and administrative expenses		8,433		4	%		7,297			1,006			3	%		(1	)%
Amortization of intangible assets		2,751		2	%		2,479			342			1	%		(1	)%
Impairment of goodwill		—		—			2,031			280			1	%		1	%
Total costs and expenses		180,612		88	%		191,666			26,432			82	%		(6	)%

Share-based compensation expense:
Cost of revenue		1,613		1	%		(307	)		(42	)		0	%		(1	)%
Product development expenses		2,987		2	%		(242	)		(34	)		0	%		(2	)%
Sales and marketing expenses		900		0	%		(125	)		(17	)		0	%		0	%
General and administrative expenses		1,225		0	%		(955	)		(132	)		(1	)%		(1	)%
Total share-based compensation expense		6,725		3	%		(1,629	)		(225	)		(1	)%		(4	)%

Costs and expenses excluding share-based compensation expense:
Cost of revenue		128,044		62	%		142,654			19,673			61	%		(1	)%
Product development expenses		11,206		5	%		10,707			1,477			4	%		(1	)%
Sales and marketing expenses		24,678		12	%		27,172			3,747			12	%		0	%
General and administrative expenses		7,208		4	%		8,252			1,138			4	%		0	%
Amortization of intangible assets		2,751		2	%		2,479			342			1	%		(1	)%
Impairment of goodwill		—		—			2,031			280			1	%		1	%
Total costs and expenses excluding share-based compensation expense		173,887		85	%		193,295			26,657			83	%		(2	)%

	Three months ended June 30,
	2022			2023						% Change
	RMB	% of Revenue		RMB		US$		% of Revenue		YoY

	(in millions, except percentages)
By type of awards:
Alibaba Group share-based awards⁽¹⁾	5,615	2	%	4,267		588		2	%	(24	)%
Ant Group share-based awards⁽²⁾	25	0	%	(6,834	)	(942	)	(3	)%	N/A
Others⁽³⁾	1,085	1	%	938		129		0	%	(14	)%
Total share-based compensation expense	6,725	3	%	(1,629	)	(225	)	(1	)%	N/A

	(1)	This represents Alibaba Group share-based awards granted to our employees.
	(2)	This represents Ant Group share-based awards granted to our employees, which is subject to mark-to-market accounting treatment.
	(3)	This represents share-based awards of our subsidiaries.

	As of March 31,		As of June 30,
	2023		2023
	RMB		RMB		US$

	(in millions)
Assets
Current assets:
Cash and cash equivalents		193,086		226,405		31,223
Short-term investments		326,492		283,953		39,159
Restricted cash and escrow receivables		36,424		40,689		5,611
Equity securities and other investments		4,892		34,071		4,699
Prepayments, receivables and other assets		137,072		145,317		20,040
Total current assets		697,966		730,435		100,732

Equity securities and other investments		245,737		239,528		33,032
Prepayments, receivables and other assets		110,926		107,706		14,853
Investment in equity method investees		207,380		212,132		29,254
Property and equipment, net		176,031		175,859		24,252
Intangible assets, net		46,913		44,560		6,145
Goodwill		268,091		266,584		36,764
Total assets		1,753,044		1,776,804		245,032

Liabilities, Mezzanine Equity and Shareholders’ Equity
Current liabilities:
Current bank borrowings		7,466		8,236		1,136
Current unsecured senior notes		4,800		—		—
Income tax payable		12,543		8,510		1,174
Accrued expenses, accounts payable and other liabilities		275,950		279,351		38,524
Merchant deposits		13,297		13,141		1,812
Deferred revenue and customer advances		71,295		71,001		9,791
Total current liabilities		385,351		380,239		52,437

	(1)	See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments.
	(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.