Bank of America Corp
Change company Symbol lookup
Select an option...
BAC Bank of America Corp
CX Cemex SAB de CV
TPRE Third Point Reinsurance Ltd
KVHI KVH Industries Inc
SUP Superior Industries International Inc
FB Facebook Inc
V Visa Inc
FL Foot Locker Inc
DPZ Domino's Pizza Inc
CTMX CytomX Therapeutics Inc
Go

Financials : Banks | Large Cap Value
Company profile

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management; Global Banking, which provides a range of lending-related products and services; Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.

Premarket

Last Trade
Delayed
$28.16
-0.97 (-3.33%)
Bid
--
Ask
--
B/A Size
--

Market Hours

Closing Price
$29.13
Day's Change
0.00 (0.00%)
Bid
--
Ask
--
B/A Size
--
Day's High
--
Day's Low
--
Volume
(Light)
Volume:
13,656

10-day average volume:
56,916,253
13,656

Alibaba Group Announces December Quarter 2019 Results

6:45 am ET February 13, 2020 (BusinessWire) Print

Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988, "Alibaba" or "Alibaba Group") today announced its financial results for the quarter ended December 31, 2019.

"Alibaba Group experienced robust growth across our business this past quarter," said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group. "Our digital economy reached new heights with another record 11.11 Global Shopping Festival for our merchants and partners. Continued investment in user engagement, especially through social commerce content, contributed to our strong gains in annual active consumers. As a result of its rapid growth, our cloud computing services for the first time generated revenue of over RMB10 billion in a single quarter. In response to the coronavirus, we mobilized Alibaba ecosystem's powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants. No matter past, present or future, we remain true to our mission and we will support our merchants to overcome this challenging time together."

"We had a successful listing on the main board of the Hong Kong Stock Exchange in November and delivered strong results for the quarter, with top-line revenue growth of 38% year-over-year and adjusted EBITDA growth of 37% year-over-year," said Maggie Wu, Chief Financial Officer of Alibaba Group. "Looking forward, we will remain dedicated to investing in digital infrastructure and services, supporting our customers and partners across the Alibaba Digital Economy, especially during the challenging time."

BUSINESS HIGHLIGHTS

In the quarter ended December 31, 2019:

Revenue was RMB161,456 million (US$23,192 million), an increase of 38% year-over-year. Annual active consumers on our China retail marketplaces reached 711 million, an increase of 18 million from the 12-month period ended September 30, 2019. Mobile MAUs on our China retail marketplaces reached 824 million in December 2019, an increase of 39 million over September 2019. Income from operations was RMB39,560 million (US$5,682 million), an increase of 48% year-over-year. Adjusted EBITDA, a non-GAAP measurement, increased 37% year-over-year to RMB55,880 million (US$8,027 million). Adjusted EBITA for core commerce was RMB58,075 million (US$8,342 million), an increase of 26% year-over-year. Our marketplace-based core commerce adjusted EBITA, a non-GAAP measurement, increased 22% year-over-year to RMB66,371 million (US$9,534 million). Net income attributable to ordinary shareholders was RMB52,309 million (US$7,514 million), and net income was RMB50,132 million (US$7,201 million). Non-GAAP net income was RMB46,493 million (US$6,678 million), an increase of 56% year-over-year. Diluted earnings per ADS was RMB19.55 (US$2.81) and non-GAAP diluted earnings per ADS was RMB18.19 (US$2.61), an increase of 49% year-over-year. Diluted earnings per share was RMB2.44 (US$0.35) and non-GAAP diluted earnings per share was RMB2.27 (US$0.33), an increase of 49% year-over-year. Net cash provided by operating activities was RMB96,505 million (US$13,862 million) and non-GAAP free cash flow was RMB78,279 million (US$11,244 million).

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

BUSINESS AND STRATEGIC UPDATES

Core Commerce

We achieved strong results reflecting our strategic focus on user acquisition and engagement as well as on enhancing product variety and increasing our offerings of price-competitive products. In December 2019, our China retail marketplaces had 824 million mobile MAUs, representing a net increase of 39 million from September 2019. Annual active consumers on our China retail marketplaces reached 711 million for the 12 months ended December 31, 2019, an increase of 18 million compared to 693 million for the 12 months ended September 30, 2019. Over 60% of new annual active consumers were from less developed areas.

Taobao - fast growing and dynamic consumer community. Taobao continues to improve in content innovation and personalized recommendations to serve existing consumers and attract new ones. "Taobao Live," where merchants and key opinion leaders ("KOLs") use live-broadcast to market to their fans and customers, has become one of the fastest growing and an effective selling formats on our China retail marketplaces. In December 2019, GMV generated from Taobao Live and the number of monthly active users who watched Taobao Live both grew over 100% year-over-year.

Tmall - 11.11 Global Shopping Festival adds to robust GMV growth on China's leading consumer and engagement platform. Tmall continues to expand its leadership position as the consumer engagement and distribution platform of choice for brands in China. Tmall online physical goods GMV, excluding unpaid orders, grew 24% year-over-year in the quarter ended December 31, 2019, with strong growth in fast-moving consumer goods ("FMCG") and consumer electronics. Our consumer segmentation initiatives have been well received by users as we continued to see strong order growth and higher purchase frequency.

Our annual 11.11 Global Shopping Festival in the quarter was another record-breaking event, generating RMB268.4 billion (US$38.4 billion) in GMV settled through Alipay on our retail marketplaces and consumer services platforms, up 26% year-over-year. During this year's festival, we continued to drive consumer value by offering savings and wider product assortment from high quality merchants. We also enabled more brands to generate greater GMV and increase their penetration into less developed areas. Over 200,000 brands, including 22,000 international brands, participated in this year's event, among which 15 brands each generated GMV of over RMB1 billion (US$143.0 million) and 299 brands each generated GMV of over RMB100 million (US$14.3 million). Consumer demand from less developed areas remained robust, accounting for 54% of the GMV during the festival.

New Retail - developing new business models to enable the digital transformation of brick-and-mortar retailing.

Creating the New - Our self-operated grocery retail chain Freshippo (known as "Hema" in Chinese) continues to achieve solid same-store sales growth. Freshippo has been implementing multi-format retail strategies and introducing new initiatives to improve user experience and customer loyalty. As of December 31, 2019, we had 197 self-operated Freshippo stores in China, primarily located in tier 1 and tier 2 cities. We will continue to invest in the growth of this business by, among other things, increasing Freshippo's store density in existing cities in order to improve consumer coverage and delivery efficiency.

Transforming the Old - In September 2019, Tmall Supermarket launched a store-to-door business with Sun Art Retail Group to make half-day delivery of food and daily necessity products to consumers living beyond the catchment area of Sun Art's stores. The service marries Sun Art's store-based inventories with Alibaba's logistics infrastructure powered by Cainiao Network to better serve consumers that live within a 3-to-20 kilometer delivery radius of Sun Art's stores.

Local consumer services - delivering strong growth in less developed areas by leveraging assets in the Alibaba Digital Economy. During the quarter, we continued to achieve strong growth in GMV driven by robust order growth. We continued to penetrate into less developed areas with strong growth potential and synergies with other businesses in the Alibaba Digital Economy. During the quarter, GMV from less developed areas grew about 40% year-over-year.

We are leveraging our relationship with Ant Financial and other assets in the Alibaba Digital Economy to further benefit our local consumer services business. In the quarter ended December 31, 2019, Ele.me acquired 48% of its new customers from the Alipay app.

Cainiao Network - increasing merchant adoption of cross-border logistics and fulfillment solutions. Cainiao Network continues to focus on improving domestic and international one-stop-shop logistics services and supply chain management solutions to serve the Alibaba Digital Economy's consumers and merchants. During the quarter, Cainiao Network's revenue grew 67% year-over-year to RMB7,518 million (US$1,080 million). This revenue growth was primarily driven by increased merchant adoption of "Fulfilled by Cainiao" services from our fast growing cross-border businesses.

Cainiao Network and its logistics partners delivered a record 1.29 billion packages generated from this year's 11.11 Global Shopping Festival. During this year's festival, Cainiao Post enabled greater delivery efficiency with 362 million packages picked up at its stations around the country, up 88% year-over-year.

In November 2019, we made an additional investment of RMB23.3 billion (US$3.3 billion) to increase our equity stake in Cainiao Network from approximately 51% to approximately 63%, by subscribing for newly issued Cainiao Network ordinary shares in its latest financing round and purchasing ordinary shares from a third party. With more financial resources, Cainiao Network will be able to continue its investment in technologies and logistics infrastructure services to strengthen its smart logistics network.

International - strong growth in our global markets.

Lazada - Our Southeast Asian e-commerce platform Lazada saw robust growth momentum in its marketplace business, driven by strong order volume growth and the doubling of quarterly active merchants year-over-year. Lazada recorded 97% year-over-year quarterly order growth reflecting strong consumer demand in the apparel and accessories and general merchandise categories. Lazada's user engagement programs and promotional campaigns, including the 11.11 Global Shopping Festival, drove strong mobile DAU growth during the quarter.

AliExpress - AliExpress continues to deliver robust user and GMV growth by leveraging our digital commerce technology and global logistics infrastructure. AliExpress continues to focus on increasing the number of high quality merchants that can offer price competitive products to meet the strong consumption demand of the marketplace's international consumers. During the quarter, AliExpress saw robust merchant and consumer participation in the 11.11 Global Shopping Festival, which generated strong GMV growth of 46% year-over-year.

In October 2019, we completed the contribution of our AliExpress Russia businesses to a joint venture with Mail.ru Group, MegaFon and Russian Direct Investment Fund ("RDIF"). We hold less than a majority of the voting rights to comply with local regulations, and as a result we deconsolidated the AliExpress Russia businesses upon the completion of this transaction in this quarter.

Cloud Computing

Alibaba Cloud maintains its leadership position in China's cloud computing market by developing technology and business solutions that enable the digital transformation of businesses across industries in the public and private sectors. During the quarter, Alibaba Cloud reached two important financial and technological milestones. First, our cloud computing business for the first time generated over RMB10 billion of revenue in a single quarter. Cloud computing revenue grew 62% year-over-year to RMB10,721 million (US$1,540 million), driven by increased revenue contributions from both our public cloud and hybrid cloud businesses.

Second, ahead of this year's 11.11 Global Shopping Festival, Alibaba Cloud enabled the migration of the core systems of our e-commerce businesses onto our public cloud. During the festival, Alibaba Cloud provided a highly scalable, reliable and secure public cloud infrastructure that handled a single day GMV of RMB268.4 billion (US$38.4 billion). Its public cloud infrastructure and technologies enabled Alibaba Group to process over 544,000 orders per second at peak and 970 petabytes of data without disruption for the full 24 hour period during the festival. This year's festival also showcased the strength of our leading cyber security technology in the public cloud environment, which is a key priority of many of our public sector and industry customers.

We believe the migration of the core systems of Alibaba's e-commerce businesses onto the public cloud is a major milestone that not only is generating greater operating efficiencies for Alibaba but also will encourage more customers to adopt our public cloud infrastructure.

Digital Media and Entertainment

For the quarter, Youku's average daily subscribers increased 59% year-over-year. The increase was primarily driven by Youku's more effective targeting of new subscribers during key promotional campaigns, an increase of auto-renewal subscribers and a greater contribution from the 88VIP membership program on our China retail marketplaces. We continue to invest in original content production capabilities while seeking cost efficiencies and return on investment, resulting in narrowing adjusted EBITA losses year-over-year during the quarter.

Initial Public Offering in Hong Kong

On November 26, 2019, we successfully listed our ordinary shares on the main board of The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange") with a global offering of 575,000,000 ordinary shares, comprised of an international offering and a Hong Kong public offering. The Hong Kong-listed shares are fully fungible with our American depositary shares ("ADSs") listed on the New York Stock Exchange ("NYSE") (one ADS representing eight ordinary shares). Our gross proceeds from the global offering, before deducting underwriting fees and the offering expenses, were approximately HK$101.2 billion (US$13.0 billion). We plan to use these proceeds for the further implementation of our strategies to drive user growth and engagement, empower businesses to facilitate digital transformation and improve operational efficiency, and continue to innovate.

Cash Flow from Operating Activities and Free Cash Flow

In the quarter ended December 31, 2019, net cash provided by operating activities was RMB96,505 million (US$13,862 million), an increase of 49% compared to RMB64,898 million in the same quarter of 2018. Free cash flow, a non-GAAP measurement of liquidity, in the quarter ended December 31, 2019 increased by 52% to RMB78,279 million (US$11,244 million), from RMB51,373 million in the same quarter of 2018, which was primarily due to our robust profitability growth as well as a decrease in capital expenditure spending and an increase in annual service fee deposits from merchants. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.

KEY OPERATIONAL METRICS*

                            December             December             September            September          December 31,         December 31,           Net adds                                  Net adds
                                               31, 2018             31, 2018             30, 2019             30, 2019               2019                 2019
                                         --------------------                      --------------------                      --------------------                      -------------------- ------------------------------------------------------------
                                         YoY                                       YoY                                                QoQ
                                         --------------------                      --------------------                      --------------------
China Commerce Retail:                                      
Annual active consumers(1) (in millions)                  636                  636                  693                  693                  711                  711                   75                   75                   18                   18
________________________
    *    For definitions of terms used but not defined in this results announcement, please refer to our annual report on Form 20-F for the fiscal year ended March 31, 2019. For definitions of terms used but not defined in this results announcement, please refer to our annual report on Form 20-F for the fiscal year ended March 31, 2019.
     (1) For the twelve months ended on the respective dates.                                                                                                                 For the twelve months ended on the respective dates.

DECEMBER QUARTER SUMMARY FINANCIAL RESULTS

                                           Three months ended December 31,                                                            Three months ended December 31,                                                   
                                                 ------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------
                                                                                 2018       2018                                                     2019      
                                                 ------------------------------------------------------- ---------- --------------------                      --------------------------------------------------   --------------------
                                                         RMB                                         RMB                               RMB                       US$(1)                  YoY %
                                                                                                                                                                                                                                                                    Change
                                                 ------------------------------------------------------- ------------------------------                       ------------------------------                       --------------------                      -------------------
                               (in millions, except percentages and per share amounts)                                                         (in millions, except percentages and per share amounts)
                                                                                                      
Revenue                                                                                          117,278    117,278                161,456    161,456                 23,192               23,192                   38         38 %
                                                                                                      
Income from operations                                                                            26,798     26,798                 39,560     39,560                  5,682                5,682                   48         48 %
Operating margin                                                                                      23         23 %                                      25         25 %                           
Adjusted EBITDA(2)                                                                                40,708     40,708                 55,880     55,880                  8,027                8,027                   37         37 %
Adjusted EBITDA margin(2)                                                                             35         35 %                                      35         35 %                           
Adjusted EBITA(2)                                                                                 36,567     36,567                 50,662     50,662                  7,277                7,277                   39         39 %
Adjusted EBITA margin(2)                                                                              31         31 %                                      31         31 %                           
                                                                                                      
Net income                                                                                        30,964     30,964                 50,132     50,132                  7,201                7,201                   62         62 %
Net income attributable to ordinary shareholders                                                  33,052     33,052                 52,309     52,309                  7,514                7,514                   58         58 %
Non-GAAP net income(2)                                                                            29,797     29,797                 46,493     46,493                  6,678                6,678                   56         56 %
                                                                                                      
Diluted earnings per share(3)                                                                       1.58       1.58                   2.44       2.44                   0.35                 0.35                   54         54 %
Diluted earnings per ADS(3)                                                                        12.64      12.64                  19.55      19.55                   2.81                 2.81                   55         55 %
Non-GAAP diluted earnings per share(2)(3)                                                           1.52       1.52                   2.27       2.27                   0.33                 0.33                   49         49 %
________________________
(1)      This results announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB6.9618 to US$1.00, the exchange rate on December 31, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. The translation of RMB into US$ for the GMV of 11.11 Global Shopping Festival was made at RMB6.9945 to US$1.00, the central parity rate announced by the People's Bank of China ("PBOC") on November 8, 2019. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding. This results announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB6.9618 to US$1.00, the exchange rate on December 31, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. The translation of RMB into US$ for the GMV of 11.11 Global Shopping Festival was made at RMB6.9945 to US$1.00, the central parity rate announced by the People's Bank of China ("PBOC") on November 8, 2019. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding.
(2)      See the sections entitled "Information about Segments," "Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" for more information about the non-GAAP measures referred to within this results announcement.                                                                                                                                                                                                                                     See the sections entitled "Information about Segments," "Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" for more information about the non-GAAP measures referred to within this results announcement.

DECEMBER QUARTER INFORMATION BY SEGMENTS

The table below sets forth selected financial information of our operating segments for the periods indicated:

                    Three months ended December 31, 2019                                                                                                                                                                     Three months ended December 31, 2019
                                       ------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Digital media              Digital media              Innovation                 Innovation                                                                      
                                                       Core                               Core                      Cloud                      Cloud                      and                        and                   initiatives                initiatives                                                                     
                                                     commerce                           commerce                  computing                  computing               entertainment              entertainment              and others                 and others              Unallocated(1)               Unallocated(1)               Consolidated                                              Consolidated
                                       ------------------------------------ ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------------------------------------------------------------------
                                     RMB                                RMB                       RMB                        RMB                       RMB                        RMB                       RMB                        RMB                       RMB                          RMB                         RMB                        RMB                       US$                             US$
                                       ------------------------------------ ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------------
                      (in millions, except percentages)                                                                                                                                                                        (in millions, except percentages)
Revenue                                                             141,475    141,475                 10,721     10,721                  7,396      7,396                  1,864      1,864         -- --                161,456    161,456                 23,192               23,192  
                                                                                                                                     
Income (loss) from operations                                        51,347     51,347                 (1,822     (1,822 )                                  (3,960     (3,960 )                                  (2,856     (2,856 )                                  (3,149         (3,149 )                                  39,560     39,560                  5,682                5,682  
Add: Share-based compensation expense                                 3,863      3,863                  1,460      1,460                    332        332                    963        963                  1,212          1,212                  7,830      7,830                  1,125                1,125  
Add: Amortization of intangible assets                                2,865      2,865                      6          6                    330        330                     23         23                     48             48                  3,272      3,272                    470                  470  
                                       ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                     
Adjusted EBITA                                                       58,075     58,075 (2)                                  (356       (356 )                                 (3,298)    (3,298) (3)                                (1,870     (1,870 )                                  (1,889         (1,889 )                                  50,662     50,662                  7,277                7,277  
                                       ==================================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ============== ==================== ==================== ========== ==================== ==================== ==================== ====================
Adjusted EBITA margin                                                    41         41 %                                      (3         (3 )%                                    (45        (45 )%                                   (100       (100 )%                                                        31         31 %                       
                                                                                                                                                                                                                                                                                             
 
                    Three months ended December 31, 2018                                                                                                                                                                     Three months ended December 31, 2018
                                       ------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              Digital media                      Innovation                                                                      
                                                       Core                               Core                                                 Cloud                                                 and                                              initiatives                                                                                                           
                                                     commerce                           commerce                                             computing                                          entertainment                                         and others                                           Unallocated(1)                                                                         Consolidated
                                       ------------------------------------ ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ----------------------------------                       ------------------------------------------------------------------------------------------
                                     RMB                                RMB                       RMB                        RMB                       RMB                        RMB                       RMB                        RMB                       RMB                          RMB                         RMB                                                       RMB
                                       ------------------------------------ ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------------------------------------------------------------------
                      (in millions, except percentages)                                                                                                                                                                        (in millions, except percentages)
Revenue                                                             102,843    102,843                  6,611      6,611                  6,491      6,491                  1,333      1,333         -- --                117,278                                              117,278    
                                                                                                                      
Income (loss) from operations                                        40,368     40,368                 (1,233     (1,233 )                                  (7,097     (7,097 )                                  (2,549     (2,549 )                                  (2,691         (2,691 )                                  26,798                                               26,798    
Add: Share-based compensation expense                                 3,253      3,253                    954        954                    769        769                    940        940                  1,044          1,044                  6,960                                                6,960    
Add: Amortization of intangible assets                                2,458      2,458                      5          5                    294        294                     13         13                     39             39                  2,809                                                2,809    
                                       ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------------------------   -------------------- --------------------
                                                                                                                      
Adjusted EBITA                                                       46,079     46,079                   (274       (274 )                                 (6,034)    (6,034) (3)                                (1,596     (1,596 )                                  (1,608         (1,608 )                                  36,567                                               36,567    
                                       ==================================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ============== ==================== ==================== ==================================================   ==================== ====================
________________________
   (1)   Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.                                                                                                                        Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.
   (2)   Marketplace-based core commerce adjusted EBITA increased 22% year-over-year to RMB66,371 million (US$9,534 million). A reconciliation of adjusted EBITA for core commerce to marketplace-based core commerce adjusted EBITA is included at the end of this results announcement. Marketplace-based core commerce adjusted EBITA increased 22% year-over-year to RMB66,371 million (US$9,534 million). A reconciliation of adjusted EBITA for core commerce to marketplace-based core commerce adjusted EBITA is included at the end of this results announcement.

DECEMBER QUARTER OPERATIONAL AND FINANCIAL RESULTS

Revenue

Revenue for the quarter ended December 31, 2019 was RMB161,456 million (US$23,192 million), an increase of 38% compared to RMB117,278 million in the same quarter of 2018. The increase was mainly driven by the robust revenue growth of our China commerce retail business and cloud computing.

The following table sets forth a breakdown of our revenue by segment for the periods indicated:

                   Three months ended December 31,                                                                                Three months ended December 31,                                                                                  
                                    --------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                2018                                            2018                                                                                  2019                                                      
                                    --------------------------------- -----------------------------------------------------------                         ---------------------------------------------------------------------------------------------------
                                 RMB                        RMB                   % of                    RMB                    US$                   % of                   YoY %
                                                                                                                       Revenue                                                                                                                       Revenue                                   Change
                                    --------------------------------- --------------------                      -------------------                       --------------------                      --------------------                      -------------------                       -------------------
                  (in millions, except percentages)                                                                                                   (in millions, except percentages)
Core commerce:                                                          
                                                                        
   China commerce retail
                                                               49,592               49,592                   42         42 %                       61,235               61,235                8,796                8,796                   38         38 %                           23         23 %
   - Customer management
                                                               20,165               20,165                   17         17 %                       23,409               23,409                3,362                3,362                   14         14 %                           16         16 %
   - Commission
                                                               11,298               11,298                   10         10 %                       25,814               25,814                3,708                3,708                   16         16 %                          128        128 %
   - Others*
                                    --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- ---------
                                                               81,055               81,055                   69         69 %                      110,458              110,458               15,866               15,866                   68         68 %                           36         36 %
    
                                                                2,694                2,694                    2          2 %                        3,365                3,365                  483                  483                    2          2 %                           25         25 %
   China commerce wholesale
                                                                5,834                5,834                    5          5 %                        7,396                7,396                1,062                1,062                    5          5 %                           27         27 %
   International commerce retail
                                                                2,175                2,175                    2          2 %                        2,457                2,457                  353                  353                    1          1 %                           13         13 %
   International commerce wholesale
                                                                4,491                4,491                    4          4 %                        7,518                7,518                1,080                1,080                    5          5 %                           67         67 %
   Cainiao logistics services
                                                                5,159                5,159                    5          5 %                        7,584                7,584                1,089                1,089                    5          5 %                           47         47 %
   Local consumer services
                                                                1,435                1,435                    1          1 %                        2,697                2,697                  389                  389                    2          2 %                           88         88 %
   Others
                                    --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- ---------
Total core commerce                                           102,843              102,843                   88         88 %                      141,475              141,475               20,322               20,322                   88         88 %                           38         38 %
                                    --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- ---------
                                                     
Cloud computing                                                 6,611                6,611                    6          6 %                       10,721               10,721                1,540                1,540                    7          7 %                           62         62 %
Digital media and entertainment                                 6,491                6,491                    5          5 %                        7,396                7,396                1,062                1,062                    5          5 %                           14         14 %
Innovation initiatives and others                               1,333                1,333                    1          1 %                        1,864                1,864                  268                  268                    0          0 %                           40         40 %
                                    --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- ---------
________________________

Core commerce

China commerce retail business Revenue - Revenue from our China commerce retail business in the quarter ended December 31, 2019 was RMB110,458 million (US$15,866 million), an increase of 36% compared to RMB81,055 million in the same quarter of 2018. Revenue from our China retail marketplaces continued to see strong growth. Combined customer management and commission revenues grew 21% year-over-year, reflecting an increase of 23% in customer management revenue and an increase of 16% in commission revenue. The growth of customer management revenue was primarily the result of an increase in the average unit price per click and an increase in the volume of paid clicks. The growth of commission revenue was primarily due to strong 24% year-over-year growth of Tmall online physical goods GMV (excluding unpaid orders). Commission revenue did not grow in proportion to the growth of Tmall online physical goods GMV (excluding unpaid orders) primarily because more merchants, particularly in those strategically important categories, received preferential commission rates, as well as the revenue mix shift within Tmall Supermarket from commission-based revenue towards direct sales, which is classified as "Others" revenue under China commerce retail business. "Others" revenue under China commerce retail business was RMB25,814 million (US$3,708 million), a significant increase compared to RMB11,298 million in the same quarter of 2018, primarily driven by contributions from direct sales businesses, including Tmall Supermarket and Freshippo, as well as our consolidation of Kaola starting in September 2019. China commerce wholesale business Revenue from our China commerce wholesale business in the quarter ended December 31, 2019 was RMB3,365 million (US$483 million), an increase of 25% compared to RMB2,694 million in the same quarter of 2018. The increase was primarily due to an increase in revenue from customer management and other value-added services on 1688.com, our domestic wholesale marketplace, as well as an increase in revenue from Lingshoutong, a digital sourcing platform that connects FMCG brand manufacturers and their distributors directly to local mom-and-pop stores in China. International commerce retail business Revenue from our international commerce retail business in the quarter ended December 31, 2019 was RMB7,396 million (US$1,062 million), an increase of 27% compared to RMB5,834 million in the same quarter of 2018. The increase was primarily due to the growth in revenue generated by Lazada, which was partially offset by the exclusion of revenue from the AliExpress Russia businesses, which we deconsolidated upon the formation of a Russian joint venture in October 2019. International commerce wholesale business Revenue from our international commerce wholesale business in the quarter ended December 31, 2019 was RMB2,457 million (US$353 million), an increase of 13% compared to RMB2,175 million in the same quarter of 2018. The increase was primarily due to an increase in the number of paying members on Alibaba.com, our global wholesale marketplace. Cainiao logistics services Revenue from Cainiao Network's logistics services, which represents revenue from its domestic and international one-stop-shop logistics services and supply chain management solutions, after elimination of inter-company transactions, was RMB7,518 million (US$1,080 million) in the quarter ended December 31, 2019, an increase of 67% compared to RMB4,491 million in the same quarter of 2018, primarily due to the increase in the volume of orders fulfilled from our fast growing cross-border businesses. Local consumer services Revenue from local consumer services, which primarily represents platform commissions, fees from provision of delivery services and other services provided by our on-demand delivery and local services platform Ele.me, was RMB7,584 million (US$1,089 million) in the quarter ended December 31, 2019, an increase of 47% compared to RMB5,159 million in the same quarter of 2018, primarily due to the increase in the volume of orders delivered.

Cloud computing

Revenue from our cloud computing business in the quarter ended December 31, 2019 was RMB10,721 million (US$1,540 million), an increase of 62% compared to RMB6,611 million in the same quarter of 2018, primarily driven by increased revenue contributions from both our public cloud and hybrid cloud businesses.

Digital media and entertainment

Revenue from our digital media and entertainment business in the quarter ended December 31, 2019 was RMB7,396 million (US$1,062 million), an increase of 14% compared to RMB6,491 million in the same quarter of 2018. The increase was mainly due to our consolidation of Alibaba Pictures starting in March 2019.

Innovation initiatives and others

Revenue from innovation initiatives and others in the quarter ended December 31, 2019 was RMB1,864 million (US$268 million), an increase of 40% compared to RMB1,333 million in the same quarter of 2018.

Costs and Expenses

The following tables set forth a breakdown of our costs and expenses, share-based compensation expense and costs and expenses excluding share-based compensation expense by function for the periods indicated.

                                              Three months ended December 31,                                                                                Three months ended December 31,                                                                                         % of
                                                                                                                                                                                                                                                                                                                          Revenue
                                                                                                                                                                                                                                                                                                                        YoY change
                                                               --------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2018                                            2018                                                                                  2019                                                    
                                                               --------------------------------- -----------------------------------------------------------                         ---------------------------------------------------------------------------------------------------
                                                            RMB                        RMB                   % of                    RMB                    US$                   % of          
                                                                                                                                                  Revenue                                                                                                                       Revenue
                                                               --------------------------------- --------------------                      -------------------                       --------------------                      --------------------                      -------------------
                                             (in millions, except percentages)                                                                                                   (in millions, except percentages)
Costs and expenses:                                                                                
Cost of revenue                                                                           60,813               60,813                   52         52 %                       84,332               84,332               12,114               12,114                   52         52 %                            0          0 %
Product development expenses                                                               8,901                8,901                    8          8 %                       11,077               11,077                1,591                1,591                    7          7 %                           (1         (1 )%
Sales and marketing expenses                                                              12,104               12,104                   10         10 %                       15,800               15,800                2,270                2,270                    9          9 %                           (1         (1 )%
General and administrative expenses                                                        5,853                5,853                    5          5 %                        7,415                7,415                1,065                1,065                    5          5 %                            0          0 %
Amortization of intangible assets                                                          2,809                2,809                    2          2 %                        3,272                3,272                  470                  470                    2          2 %                            0          0 %
                                                               --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- ---------- ---------
Total costs and expenses                                                                  90,480               90,480                   77         77 %                      121,896              121,896               17,510               17,510                   75         75 %                           (2         (2 )%
                                                               ================================= ==================== ==================== ========== ========= ==================== ==================== ==================== ==================== ==================== ========== ========= ==================== ========== =========
                                                                                
Share-based compensation expense:                                                                  
Cost of revenue                                                                            1,582                1,582                    2          2 %                        1,685                1,685                  243                  243                    1          1 %                           (1         (1 )%
Product development expenses                                                               2,987                2,987                    3          3 %                        3,644                3,644                  523                  523                    2          2 %                           (1         (1 )%
Sales and marketing expenses                                                                 838                  838                    0          0 %                          961                  961                  138                  138                    0          0 %                            0          0 %
General and administrative expenses                                                        1,553                1,553                    1          1 %                        1,540                1,540                  221                  221                    1          1 %                            0          0 %
                                                               --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- ---------- ---------
Total share-based compensation expense                                                     6,960                6,960                    6          6 %                        7,830                7,830                1,125                1,125                    4          4 %                           (2         (2 )%
                                                               ================================= ==================== ==================== ========== ========= ==================== ==================== ==================== ==================== ==================== ========== ========= ==================== ========== =========
                                                                                
Costs and expenses excluding share-based compensation expense:                                     
Cost of revenue                                                                           59,231               59,231                   50         50 %                       82,647               82,647               11,871               11,871                   51         51 %                            1          1 %
Product development expenses                                                               5,914                5,914                    5          5 %                        7,433                7,433                1,068                1,068                    5          5 %                            0          0 %
Sales and marketing expenses                                                              11,266               11,266                   10         10 %                       14,839               14,839                2,132                2,132                    9          9 %                           (1         (1 )%
General and administrative expenses                                                        4,300                4,300                    4          4 %                        5,875                5,875                  844                  844                    4          4 %                            0          0 %
Amortization of intangible assets                                                          2,809                2,809                    2          2 %                        3,272                3,272                  470                  470                    2          2 %                            0          0 %
                                                               --------------------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- ---------- ---------

Cost of revenue - Cost of revenue in the quarter ended December 31, 2019 was RMB84,332 million (US$12,114 million), or 52% of revenue, compared to RMB60,813 million, or 52% of revenue, in the same quarter of 2018. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 50% in the quarter ended December 31, 2018 to 51% in the quarter ended December 31, 2019. The increase was primarily due to an increase in revenue mix shift towards direct sales businesses such as Tmall Supermarket and New Retail, which resulted in increased cost of inventory, as well as our consolidation of Kaola, partly offset by a decrease in content cost by Youku and efficiency gains from our technology and infrastructure.

Product development expenses - Product development expenses in the quarter ended December 31, 2019 were RMB11,077 million (US$1,591 million), or 7% of revenue, compared to RMB8,901 million, or 8% of revenue, in the same quarter of 2018. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have remained stable at 5% in the quarter ended December 31, 2019 compared to the same quarter of 2018.

Sales and marketing expenses - Sales and marketing expenses in the quarter ended December 31, 2019 were RMB15,800 million (US$2,270 million), or 9% of revenue, compared to RMB12,104 million, or 10% of revenue, in the same quarter of 2018. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have decreased from 10% in the quarter ended December 31, 2018 to 9% in the quarter ended December 31, 2019.

General and administrative expenses - General and administrative expenses in the quarter ended December 31, 2019 were RMB7,415 million (US$1,065 million), or 5% of revenue, compared to RMB5,853 million, or 5% of revenue, in the same quarter of 2018. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would also have remained stable at 4% in the quarter ended December 31, 2019 compared to the same quarter of 2018.

Share-based compensation expense - Total share-based compensation expense included in the cost and expense items above in the quarter ended December 31, 2019 was RMB7,830 million (US$1,125 million), an increase of 13% compared to RMB6,960 million in the same quarter of 2018. Share-based compensation expense as a percentage of revenue decreased to 4% in the quarter ended December 31, 2019, as compared to 6% in the same quarter of 2018.

The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:

                                                  Three months ended                                                                                     Three months ended                                                                                    
                                                             --------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     December 31,                      December 31,                         September 30,                                     December 31,                                                
                                                                            2018                              2018                                                    2019                                                                 2019                                                                            % Change
                                                             --------------------------------- -------------------------------                         -------------------------------                         ------------------------------------------------------                           ----------------------------------------------------------
                                                          RMB                 RMB     % of      RMB     % of      RMB    US$    % of             YoY                    QoQ
                                                                                                                           Revenue                                                 Revenue                                                                          Revenue
                                                             --------------------------------- -----                      ------                       -----                      ------                       -----                      ---                      ------                       -------------------                       -------------------
                                           (in millions, except percentages)                                                                                                                (in millions, except percentages)
By type of awards:                                                           
Alibaba Group share-based awards(1)                                                      5,879 5,879                    5   5 %                  6,899 6,899                    6   6 %                  6,587 6,587                  946 946                    4   4 %                     12         12 %                           (5         (5 )%
Ant Financial share-based awards granted to our employees(2)                               505   505                    0   0 %                    303   303                    0   0 %                    347   347                   50  50                    0   0 %                    (31        (31 )%                          15         15 %
Others(3)                                                                                  576   576                    1   1 %                    943   943                    1   1 %                    896   896                  129 129                    0   0 %                     56         56 %                           (5         (5 )%
                                                             --------------------------------- ----- -------------------- --- --- -------------------- ----- -------------------- --- --- -------------------- ----- -------------------- --- -------------------- --- ---
________________________
   (1)   This includes awards granted to our employees, Ant Financial and other consultants. Awards granted to nonemployees were subject to mark-to-market accounting treatment until March 31, 2019. Beginning on April 1, 2019, we adopted ASU 2018-07, "Compensation -- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" under US GAAP. As a result of adopting this new accounting update, these awards are no longer subject to mark-to-market accounting treatment. Commencing upon the receipt of the 33% equity interest in Ant Financial on September 23, 2019, the expense relating to Alibaba Group share-based awards granted to Ant Financial employees are recognized in share of results of equity investees. This includes awards granted to our employees, Ant Financial and other consultants. Awards granted to nonemployees were subject to mark-to-market accounting treatment until March 31, 2019. Beginning on April 1, 2019, we adopted ASU 2018-07, "Compensation -- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" under US GAAP. As a result of adopting this new accounting update, these awards are no longer subject to mark-to-market accounting treatment. Commencing upon the receipt of the 33% equity interest in Ant Financial on September 23, 2019, the expense relating to Alibaba Group share-based awards granted to Ant Financial employees are recognized in share of results of equity investees.
   (2)   Awards subject to mark-to-market accounting treatment.                                                                                                                                                                                                                                     Awards subject to mark-to-market accounting treatment.

Share-based compensation expense related to Alibaba Group share-based awards granted to our employees remained stable in this quarter compared to the previous quarter. We expect that our share-based compensation expense will continue to be affected by changes in the fair value of our shares, our subsidiaries' share-based awards and the quantity of awards that we grant in the future. Furthermore, we expect that our share-based compensation expense will continue to be affected by future changes in the valuation of Ant Financial, although any such changes will be non-cash and will not result in any economic cost or equity dilution to our shareholders.

Amortization of intangible assets - Amortization of intangible assets in the quarter ended December 31, 2019 was RMB3,272 million (US$470 million), an increase of 16% from RMB2,809 million in the same quarter of 2018.

Income from operations and operating margin

Income from operations in the quarter ended December 31, 2019 was RMB39,560 million (US$5,682 million), or 25% of revenue, an increase of 48% compared to RMB26,798 million, or 23% of revenue, in the same quarter of 2018.

Adjusted EBITDA and Adjusted EBITA

Adjusted EBITDA increased 37% year-over-year to RMB55,880 million (US$8,027 million) in the quarter ended December 31, 2019, compared to RMB40,708 million in the same quarter of 2018. Adjusted EBITA increased 39% year-over-year to RMB50,662 million (US$7,277 million) in the quarter ended December 31, 2019, compared to RMB36,567 million in the same quarter of 2018. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.

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 December 31,                                                                                                 Three months ended December 31,
                                --------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                            2018                                                  2018                                                                                                  2019
                                --------------------------------- ---------------------------------------------------------------------                          -----------------------------------------------------------------------------------------------------------------------
                             RMB                              RMB                        % of                          RMB                               US$                        % of
                                                                                                                              Revenue                                                                                                                                             Revenue
                                --------------------------------- ------------------------------                       -------------------                       ------------------------------                       ------------------------------                       -------------------
              (in millions, except percentages)                                                                                               (in millions, except percentages)
                                                                              
Core commerce                                              46,079     46,079                     45         45 %                       58,075     58,075                  8,342      8,342                     41         41 %
Cloud computing                                              (274       (274 )                                      (4         (4 )%                        (356       (356 )                                     (51        (51 )                                      (3         (3 )%
Digital media and entertainment                            (6,034     (6,034 )                                     (93        (93 )%                      (3,298     (3,298 )                                    (474       (474 )                                     (45        (45 )%

Core commerce segment - Adjusted EBITA increased by 26% to RMB58,075 million (US$8,342 million) in the quarter ended December 31, 2019, compared to RMB46,079 million in the same quarter of 2018, primarily due to an increase in marketplace-based core commerce adjusted EBITA to RMB66,371 million (US$9,534 million), as well as our reduced loss in strategic businesses, partly offset by the effects of our consolidation of Kaola, which was also one of the factors that led to adjusted EBITA margin decreasing from 45% in the quarter ended December 31, 2018 to 41% in the quarter ended December 31, 2019. The continuing revenue mix shift towards self-operated New Retail and direct sales businesses, where revenue is recorded on a gross basis, including the cost of inventory, also contributed to the decrease in adjusted EBITA margin.

A reconciliation of adjusted EBITA for core commerce to marketplace-based core commerce adjusted EBITA is included at the end of this results announcement.

We expect that our core commerce adjusted EBITA margin will continue to be affected by the pace of our investment in new businesses and by a continuing revenue mix shift to self-operated New Retail and direct sales businesses.

Cloud computing segment - Adjusted EBITA in the quarter ended December 31, 2019 was a loss of RMB356 million (US$51 million), compared to a loss of RMB274 million in the same quarter of 2018. Adjusted EBITA margin improved to negative 3% in the quarter ended December 31, 2019 from negative 4% in the quarter ended December 31, 2018.

Digital media and entertainment segment - Adjusted EBITA in the quarter ended December 31, 2019 was a loss of RMB3,298 million (US$474 million), compared to a loss of RMB6,034 million in the same quarter of 2018. Adjusted EBITA margin improved to negative 45% in the quarter ended December 31, 2019 from negative 93% in the quarter ended December 31, 2018, primarily due to reduced content cost by Youku as a result of our more disciplined content spending policy.

Innovation initiatives and others segment - Adjusted EBITA in the quarter ended December 31, 2019 was a loss of RMB1,870 million (US$269 million), compared to a loss of RMB1,596 million in the same quarter of 2018.

Interest and investment income, net

Interest and investment income, net in the quarter ended December 31, 2019 was RMB17,136 million (US$2,462 million), compared to RMB11,560 million in the same quarter of 2018. The increase was primarily due to net gains arising from changes in the fair value of our equity investments in the quarter ended December 31, 2019 compared to net losses recorded in the same quarter of 2018, a one-time gain of RMB10.3 billion (US$1.5 billion) in relation to our contribution of the AliExpress Russia businesses into a joint venture we set up with Russian partners, which resulted in our deconsolidation of these businesses in this quarter, and a one-time non-cash gain in the same quarter of 2018 arising from the revaluation of our previously held equity interest in Koubei when we obtained control in December 2018.

In relation to the 33% equity interest in Ant Financial that we received in September 2019, we recognized in this quarter an upward adjustment of RMB2.3 billion (US$330 million) to the amount of the one-time gain we recognized in the previous quarter. This amount primarily represents adjustment of the fair value of our share of Ant Financial's net assets as of the completion date of the transaction.

The above-mentioned gains and losses are excluded from our non-GAAP net income.

Other income, net

Other income, net in the quarter ended December 31, 2019 was RMB987 million (US$142 million), compared to RMB387 million in the same quarter of 2018.

Income tax expenses

Income tax expenses in the quarter ended December 31, 2019 were RMB8,407 million (US$1,208 million), compared to RMB5,586 million in the same quarter of 2018.

Our effective tax rate remained stable at 15% in the quarter ended December 31, 2019 compared to the same quarter of 2018. Excluding share-based compensation expense, revaluation and disposal gains/losses of investments and impairment of investments, our effective tax rate would have been 19% in the quarter ended December 31, 2019.

Share of results of equity investees

Share of results of equity investees in the quarter ended December 31, 2019 was a profit of RMB2,165 million (US$311 million), compared to a loss of RMB861 million in the same quarter of 2018. We record our share of results of equity investees one quarter in arrears. Share of results of equity investees in the quarter ended December 31, 2019 and the comparative periods consisted of the following:

                         Three months ended                                                                                                            Three months ended
                                           -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                          December 31, 2018               December 31, 2018                          September 30, 2019                                                          December 31, 2019
                                           -------------------- ----------------------------------------                       ----------------------------------------                       ----------------------------------------------------------------------------------------------------
                                 RMB                             RMB                                         RMB                                         RMB                                         US$
                                           -------------------- ----------------------------------------                       ----------------------------------------                       ----------------------------------------                       ----------------------------------------
                            (in millions)                                                                                                       (in millions)
Share of profit (loss) of equity investees                      
                                                 --       --         --       --                    215                  215                     31                   31  
   - Ant Financial(1)
                                                             22                   22                     (2                   (2 )                                   2,229                2,229                    320                  320  
   - Others
Impairment loss                                            (493                 (493 )                                 (11,590              (11,590 )                          --       --       --       --       --
Dilution gain (loss)                                         26                   26                    (20                  (20 )                                     166                  166                     24                   24  
Others(2)                                                  (416                 (416 )                                    (348                 (348 )                                    (445                 (445 )                                     (64                  (64 )
                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
________________________
     (1) We received the 33% equity interest in Ant Financial on September 23, 2019. Similar to other equity method investees, we record our share of results of Ant Financial one quarter in arrears. As such, the share of profit of Ant Financial in the quarter ended December 31, 2019 reflects our share of profit of Ant Financial for the period from the day following receipt of the equity interest to the end of the quarter on September 30, 2019. We received the 33% equity interest in Ant Financial on September 23, 2019. Similar to other equity method investees, we record our share of results of Ant Financial one quarter in arrears. As such, the share of profit of Ant Financial in the quarter ended December 31, 2019 reflects our share of profit of Ant Financial for the period from the day following receipt of the equity interest to the end of the quarter on September 30, 2019.

The share of profit of other equity investees in the quarter ended December 31, 2019 mainly include our share of profit in Suning, which primarily reflected a significant gain arising from Suning's deconsolidation of one of its subsidiaries.

Net income and Non-GAAP net income

Our net income in the quarter ended December 31, 2019 was RMB50,132 million (US$7,201 million), an increase of 62% compared to RMB30,964 million in the same quarter of 2018.

Excluding share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments and certain other items, non-GAAP net income in the quarter ended December 31, 2019 was RMB46,493 million (US$6,678 million), an increase of 56% compared to RMB29,797 million in the same quarter of 2018. 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 December 31, 2019 was RMB52,309 million (US$7,514 million), an increase of 58% compared to RMB33,052 million in the same quarter of 2018.

Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share

Diluted earnings per ADS in the quarter ended December 31, 2019 was RMB19.55 (US$2.81) on a weighted average of 21,393 million diluted shares outstanding during the quarter, an increase of 55% compared to RMB12.64 on a weighted average of 20,913 million diluted shares outstanding during the same quarter in 2018 (giving effect, in each case, to our share split in July 2019). Excluding share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments and certain other items, non-GAAP diluted earnings per ADS in the quarter ended December 31, 2019 was RMB18.19 (US$2.61), an increase of 49% compared to RMB12.19 in the same quarter of 2018.

Diluted earnings per share in the quarter ended December 31, 2019 was RMB2.44 (US$0.35), an increase of 54% compared to RMB1.58 in the same quarter of 2018. Excluding share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments and certain other items, non-GAAP diluted earnings per share in the quarter ended December 31, 2019 was RMB2.27 (US$0.33), an increase of 49%, compared to RMB1.52 in the same quarter of 2018.

A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares. See the section entitled "Share Subdivision and ADS Ratio Change" for more information.

Cash, cash equivalents and short-term investments

As of December 31, 2019, cash, cash equivalents and short-term investments were RMB351,946 million (US$50,554 million), compared to RMB235,251 million as of September 30, 2019. The increase in cash, cash equivalents and short-term investments during the quarter ended December 31, 2019 was primarily due to net proceeds of RMB90,610 million (US$13,015 million) from the issuance of shares in connection with our global offering and free cash flow generated from operations of RMB78,279 million (US$11,244 million), partly offset by net cash used in investment and acquisition activities of RMB20,590 million (US$2,957 million), repayment of unsecured senior notes of US$2,250 million and cash used to acquire additional shares of Cainiao Network from a third party.

Cash flow from operating activities and free cash flow

Net cash provided by operating activities in the quarter ended December 31, 2019 was RMB96,505 million (US$13,862 million), an increase of 49% compared to RMB64,898 million in the same quarter of 2018. Free cash flow, a non-GAAP measurement of liquidity, in the quarter ended December 31, 2019 increased by 52% to RMB78,279 million (US$11,244 million), from RMB51,373 million in the same quarter of 2018, which was primarily due to our robust profitability growth as well as a decrease in capital expenditure spending and an increase in annual service fee deposits from merchants. 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 December 31, 2019, net cash used in investing activities of RMB32,588 million (US$4,681 million) primarily reflected (i) cash outflow of RMB22,482 million (US$3,229 million) for investment and acquisition activities, including the acquisition of Kaola and investment in Meinian Onehealth Healthcare, (ii) capital expenditures of RMB6,659 million (US$956 million), which included cash outflow for the acquisition of land use rights and construction in progress relating to office campuses of RMB910 million (US$131 million), as well as (iii) the acquisition of licensed copyrights and other intangible assets of RMB5,274 million (US$758 million). These cash outflows were partly offset by cash inflow of RMB1,892 million (US$272 million) from the disposal of various investments.

Employees

As of December 31, 2019, we had a total of 116,519 employees, compared to 111,524 as of September 30, 2019.

Share Subdivision and ADS Ratio Change

On July 30, 2019, we effected a 1-to-8 share subdivision, as a result of which each ordinary share was subdivided into eight ordinary shares (the "Share Subdivision"). At the same time, we changed our ordinary share-to-ADS ratio. Following the ADS ratio change, each ADS now represents eight ordinary shares. Because the ADS ratio change was exactly proportionate to the Share Subdivision, no new ADSs were issued to any ADS holder and the total number of our outstanding ADSs remains unchanged.

The tables below set forth the pre- and post-share subdivision earnings per share/ADS attributable to ordinary shareholders and weighted average number of shares used in calculating earnings per ordinary share for the periods indicated.

                                                                                 Three months ended December 31,                                                                                                    Three months ended December 31,
                                                                                                   ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              2018                                           2018                                                                                                       2019
                                                                                                   ------------------------------- ------------------------------------------------------------                        --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Pre-Share                 Pre-Share             Post-Share                                   Pre-Share                                                       Post-Share
                                                                                                              Subdivision               Subdivision                               Subdivision                                                    Subdivision                                                                         Subdivision
                                                                                                   ------------------------------- --------------------                      --------------------                      ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                               RMB                       RMB                    RMB                    RMB                    US$                    RMB                    US$
                                                                                                   ------------------------------- --------------------                      --------------------                      --------------------                      --------------------                      --------------------                      --------------------
                                                                                       (except share data)                                                                                                                (except share data)
Earnings per share attributable to ordinary shareholders                                                                             
Basic                                                                                                                        12.83                12.83                 1.60                 1.60                19.87                19.87                 2.85                 2.85                 2.48                 2.48                 0.36                 0.36
Diluted                                                                                                                      12.64                12.64                 1.58                 1.58                19.55                19.55                 2.81                 2.81                 2.44                 2.44                 0.35                 0.35
Non-GAAP diluted                                                                                                             12.19                12.19                 1.52                 1.52                18.19                18.19                 2.61                 2.61                 2.27                 2.27                 0.33                 0.33
                                                                                                                  
Earnings per ADS attributable to ordinary shareholders                                                                               
Basic                                                                                                                        12.83                12.83                12.83                12.83                19.87                19.87                 2.85                 2.85                19.87                19.87                 2.85                 2.85
Diluted                                                                                                                      12.64                12.64                12.64                12.64                19.55                19.55                 2.81                 2.81                19.55                19.55                 2.81                 2.81
Non-GAAP diluted                                                                                                             12.19                12.19                12.19                12.19                18.19                18.19                 2.61                 2.61                18.19                18.19                 2.61                 2.61
                                                                                                                  
Weighted average number of shares used in calculating earnings per ordinary share (million shares)                                   
Basic                                                                                                                        2,576                2,576               20,608               20,608                2,632                2,632                   21,058               21,058    
                                                                                Nine months ended December 31,                                                                                                     Nine months ended December 31,
                                                                                                   ------------------------------ ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             2018                                           2018                                                                                                       2019
                                                                                                   ------------------------------ ------------------------------------------------------------                        --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Pre-Share                 Pre-Share             Post-Share                                   Pre-Share                                                       Post-Share
                                                                                                             Subdivision               Subdivision                               Subdivision                                                    Subdivision                                                                         Subdivision
                                                                                                   ------------------------------ --------------------                      --------------------                      ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                              RMB                       RMB                    RMB                    RMB                    US$                    RMB                    US$
                                                                                                   ------------------------------ --------------------                      --------------------                      --------------------                      --------------------                      --------------------                      --------------------
                                                                                      (except share data)                                                                                                                (except share data)
Earnings per share attributable to ordinary shareholders                                                                            
Basic                                                                                                                       23.94                23.94                 2.99                 2.99                55.98                55.98                 8.04                 8.04                 7.00                 7.00                 1.01                 1.01
Diluted                                                                                                                     23.54                23.54                 2.94                 2.94                55.14                55.14                 7.92                 7.92                 6.89                 6.89                 0.99                 0.99
Non-GAAP diluted                                                                                                            29.83                29.83                 3.73                 3.73                43.88                43.88                 6.30                 6.30                 5.49                 5.49                 0.79                 0.79
                                                                                                                 
Earnings per ADS attributable to ordinary shareholders                                                                              
Basic                                                                                                                       23.94                23.94                23.94                23.94                55.98                55.98                 8.04                 8.04                55.98                55.98                 8.04                 8.04
Diluted                                                                                                                     23.54                23.54                23.54                23.54                55.14                55.14                 7.92                 7.92                55.14                55.14                 7.92                 7.92
Non-GAAP diluted                                                                                                            29.83                29.83                29.83                29.83                43.88                43.88                 6.30                 6.30                43.88                43.88                 6.30                 6.30
                                                                                                                 
Weighted average number of shares used in calculating earnings per ordinary share (million shares)                                  
Basic                                                                                                                       2,580                2,580               20,642               20,642                2,610                2,610                   20,878               20,878    

WEBCAST AND CONFERENCE CALL INFORMATION

Alibaba Group's management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (8:30 p.m. Hong Kong Time) on February 13, 2020.

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: 9549246

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: 9549246).

Our results announcement and accompanying slides are available at Alibaba Group's Investor Relations website at http://www.alibabagroup.com/en/ir/home on February 13, 2020.

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 company that lasts for 102 years.

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 statements. 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. Alibaba may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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; privacy and 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 and announcements on the website of The Hong Kong Stock Exchange. 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 earnings per share/ADS 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, marketplace-based core commerce 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, as well as one measure that provides supplemental information on our core commerce segment, namely marketplace-based core commerce adjusted EBITA, 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, marketplace-based core commerce 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, adjusted EBITA for core commerce, 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 (i) interest and investment income, net, interest expense, other income or loss, net, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization, depreciation, operating lease cost relating to land use rights and impairment of goodwill, 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 or loss, net, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of goodwill, which we do not believe are reflective of our core operating performance during the periods presented.

Marketplace-based core commerce adjusted EBITA represents adjusted EBITA for core commerce excluding the effects of (i) local consumer services, (ii) New Retail and direct import, (iii) Lazada and (iv) Cainiao Network. Marketplace-based core commerce adjusted EBITA reflects the performance of our most established businesses, namely, those of our China retail marketplaces and wholesale marketplaces which primarily adopt a marketplace-based approach. By excluding certain businesses that are in the earlier stages of their development and with business approaches that continue to evolve, marketplace-based core commerce adjusted EBITA enables investors to clearly evaluate the performance of our most established businesses on a like-for-like basis.

Non-GAAP net income represents net income before share-based compensation expense, amortization, impairment of investments and goodwill, gain or loss on deemed disposals/disposals/revaluation of investments, gain in relation to the receipt of the 33% equity interest in Ant Financial, amortization of excess value receivable arising from the restructuring of commercial arrangements with Ant Financial and others, as adjusted for the tax effects on non-GAAP adjustments.

Non-GAAP diluted earnings per share 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. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjustment to 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), licensed copyrights and other intangible assets, as well as adjustments to exclude from net cash provided by operating activities the consumer protection fund deposits from merchants on our China retail 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 consumer protection fund deposits from merchants on our China retail marketplaces because these deposits are restricted for the purpose of compensating consumers for claims against merchants.

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 December 31,                                                                        Three months ended December 31,                                                                                                                                 Nine months ended December 31,
                                                                                                      ------------------------------------ ----------------------------------------------------------------------------------------------------------------------------------------------------------------                             --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   2018                                    2018                                                                       2019                                                                        2018                                                             2019
                                                                                                      ------------------------------------ ----------------------------------------                       ----------------------------------------------------------------------------------------------------                          ----------------------------------------                       --------------------------------------------------------------------------------
                                                                                                    RMB                                     RMB                                         RMB                                         US$                                         RMB                                    RMB                               US$
                                                                                                      ------------------------------------ ----------------------------------------                       ----------------------------------------                       ----------------------------------------                       ----------------------------------------                       ------------------------------                       ------------------------------
                                                                                   (in millions, except per share data)                                                                   (in millions, except per share data)                                                                                                                            (in millions, except per share data)
Revenue                                                                                                                            117,278              117,278                161,456              161,456                 23,192               23,192                283,346              283,346                395,397    395,397                 56,795     56,795  
Cost of revenue                                                                                                                    (60,813              (60,813 )                                 (84,332              (84,332 )                                 (12,114              (12,114 )                                (151,319             (151,319 )                                (209,865   (209,865 )                                 (30,145    (30,145 )
Product development expenses                                                                                                        (8,901               (8,901 )                                 (11,077              (11,077 )                                  (1,591               (1,591 )                                 (28,776              (28,776 )                                 (32,493    (32,493 )                                  (4,667     (4,667 )
Sales and marketing expenses                                                                                                       (12,104              (12,104 )                                 (15,800              (15,800 )                                  (2,270               (2,270 )                                 (30,131              (30,131 )                                 (38,494    (38,494 )                                  (5,529     (5,529 )
General and administrative expenses                                                                                                 (5,853               (5,853 )                                  (7,415               (7,415 )                                  (1,065               (1,065 )                                 (17,277              (17,277 )                                 (20,326    (20,326 )                                  (2,920     (2,920 )
Amortization of intangible assets                                                                                                   (2,809               (2,809 )                                  (3,272               (3,272 )                                    (470                 (470 )                                  (7,524               (7,524 )                                  (9,344     (9,344 )                                  (1,342     (1,342 )
Impairment of goodwill                                                                                                      --       --       --       --       --       --       --       --       --       --       --                 (576                 (576       (576 )                                     (83        (83 )
                                                                                                      ------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                             
Income from operations                                                                                                              26,798               26,798                 39,560               39,560                  5,682                5,682                 48,319               48,319                 84,299     84,299                 12,109     12,109  
Interest and investment income, net                                                                                                 11,560               11,560                 17,136               17,136                  2,462                2,462                 25,441               25,441                 80,671     80,671                 11,588     11,588  
Interest expense                                                                                                                    (1,334               (1,334 )                                  (1,309               (1,309 )                                    (188                 (188 )                                  (3,887               (3,887 )                                  (4,015     (4,015 )                                    (577       (577 )
Other income (loss), net                                                                                                               387                  387                    987                  987                    142                  142                 (1,228               (1,228 )                                   6,259      6,259                    899        899  
                                                                                                      ------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                             
Income before income tax and share of results of equity investees                                                                   37,411               37,411                 56,374               56,374                  8,098                8,098                 68,645               68,645                167,214    167,214                 24,019     24,019  
Income tax expenses                                                                                                                 (5,586               (5,586 )                                  (8,407               (8,407 )                                  (1,208               (1,208 )                                 (11,528              (11,528 )                                 (17,934    (17,934 )                                  (2,576     (2,576 )
Share of results of equity investees                                                                                                  (861                 (861 )                                   2,165                2,165                    311                  311                   (262                 (262 )                                  (9,278     (9,278 )                                  (1,333     (1,333 )
                                                                                                      ------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                             
Net income                                                                                                                          30,964               30,964                 50,132               50,132                  7,201                7,201                 56,855               56,855                140,002    140,002                 20,110     20,110  
Net loss attributable to noncontrolling interests                                                                                    2,156                2,156                  2,042                2,042                    293                  293                  5,118                5,118                  6,211      6,211                    892        892  
                                                                                                      ------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                             
Net income attributable to Alibaba Group Holding Limited                                                                            33,120               33,120                 52,174               52,174                  7,494                7,494                 61,973               61,973                146,213    146,213                 21,002     21,002  
                                                                                                                                             
Accretion of mezzanine equity                                                                                                          (68                  (68 )                                     135                  135                     20                   20                   (203                 (203 )                                    (112       (112 )                                     (16        (16 )
                                                                                                      ------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Net income attributable to ordinary shareholders                                                                                    33,052               33,052                 52,309               52,309                  7,514                7,514                 61,770               61,770                146,101    146,101                 20,986     20,986  
                                                                                                      ==================================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ========== ==================== ==================== ========== ====================
                                                                                                                                                        
Earnings per share attributable to ordinary shareholders(1)                                                                                                                
Basic                                                                                                                                 1.60                 1.60                   2.48                 2.48                   0.36                 0.36                   2.99                 2.99                   7.00       7.00                   1.01       1.01  
Diluted                                                                                                                               1.58                 1.58                   2.44                 2.44                   0.35                 0.35                   2.94                 2.94                   6.89       6.89                   0.99       0.99  
                                                                                                                                                        
Earnings per ADS attributable to ordinary shareholders(1)                                                                                                                  
Basic                                                                                                                                12.83                12.83                  19.87                19.87                   2.85                 2.85                  23.94                23.94                  55.98      55.98                   8.04       8.04  
Diluted                                                                                                                              12.64                12.64                  19.55                19.55                   2.81                 2.81                  23.54                23.54                  55.14      55.14                   7.92       7.92  
                                                                                                                                                        
Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1)                                                                      
Basic                                                                                                                               20,608               20,608                 21,058               21,058                     20,642               20,642               20,642                 20,878     20,878                 
________________________

ALIBABA GROUP HOLDING LIMITED REVENUE

The following table sets forth our revenue by segments for the periods indicated:

                   Three months ended December 31,                                     Three months ended December 31,                                                                            Nine months ended December 31,
                                     ------------------------------- ----------------------------------------------------------------------------------------------------                          ---------------------------------------------------------------------------------------------------
                                2018                      2018                                        2019                                        2018                                        2019
                                     ------------------------------- --------------------                      ------------------------------------------------------------                        --------------------                      -----------------------------------------------------------
                                 RMB                       RMB                    RMB                    US$                    RMB                    RMB                    US$
                                     ------------------------------- --------------------                      --------------------                      --------------------                      --------------------                      -------------------                       --------------------
                            (in millions)                                                       (in millions)                                                                                              (in millions)
Core commerce(1)                                             102,843              102,843              141,475              141,475               20,322               20,322              244,506              244,506              342,239              342,239               49,160               49,160
Cloud computing(2)                                             6,611                6,611               10,721               10,721                1,540                1,540               16,976               16,976               27,799               27,799                3,993                3,993
Digital media and entertainment(3)                             6,491                6,491                7,396                7,396                1,062                1,062               18,406               18,406               21,004               21,004                3,017                3,017
Innovation initiatives and others(4)                           1,333                1,333                1,864                1,864                  268                  268                3,458                3,458                4,355                4,355                  625                  625
                                     ------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------  -------------------- --------------------
                                                    
________________________
     (1) Revenue from core commerce is primarily generated from our China retail marketplaces, Freshippo, 1688.com, Lazada.com, AliExpress, Alibaba.com, Cainiao logistics services and local consumer services.                                                                                                    Revenue from core commerce is primarily generated from our China retail marketplaces, Freshippo, 1688.com, Lazada.com, AliExpress, Alibaba.com, Cainiao logistics services and local consumer services.
     (2) Revenue from cloud computing is primarily generated from the provision of services, such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, a machine learning platform and IoT services. Revenue from cloud computing is primarily generated from the provision of services, such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, a machine learning platform and IoT services.
     (3) Revenue from digital media and entertainment is primarily generated from Youku and UCWeb.                                                                                                                                                                                                                  Revenue from digital media and entertainment is primarily generated from Youku and UCWeb.

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 December 31,                                                      Three months ended December 31,                                                                                                             Nine months ended December 31,
                                  ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------                             ----------------------------------------------------------------------------------------------------------------------------------
                             2018                            2018                                                        2019                                                         2018                                                        2019
                                  ------------------------------- ------------------------------                       --------------------------------------------------------------------------------                          ------------------------------                       --------------------------------------------------------------------------------
                              RMB                             RMB                               RMB                               US$                               RMB                               RMB                               US$
                                  ------------------------------- ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------
                         (in millions)                                                                        (in millions)                                                                                                                               (in millions)
Core commerce                                              40,368     40,368                 51,347     51,347                  7,375      7,375                 87,680     87,680                118,465    118,465                 17,016     17,016  
Cloud computing                                            (1,233     (1,233 )                                  (1,822     (1,822 )                                    (262       (262 )                                  (4,472     (4,472 )                                  (5,259     (5,259 )                                    (755       (755 )
Digital media and entertainment                            (7,097     (7,097 )                                  (3,960     (3,960 )                                    (569       (569 )                                 (16,192    (16,192 )                                 (10,446    (10,446 )                                  (1,500     (1,500 )
Innovation initiatives and others                          (2,549     (2,549 )                                  (2,856     (2,856 )                                    (410       (410 )                                  (8,525     (8,525 )                                  (8,929     (8,929 )                                  (1,283     (1,283 )
Unallocated                                                (2,691     (2,691 )                                  (3,149     (3,149 )                                    (452       (452 )                                 (10,172    (10,172 )                                  (9,532     (9,532 )                                  (1,369     (1,369 )
                                  ------------------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                   

The following table sets forth our adjusted EBITA by segments for the periods indicated:

                Three months ended December 31,                                                      Three months ended December 31,                                                                                                             Nine months ended December 31,
                                  ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------                             ----------------------------------------------------------------------------------------------------------------------------------
                             2018                            2018                                                        2019                                                         2018                                                        2019
                                  ------------------------------- ------------------------------                       --------------------------------------------------------------------------------                          ------------------------------                       --------------------------------------------------------------------------------
                              RMB                             RMB                               RMB                               US$                               RMB                               RMB                               US$
                                  ------------------------------- ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------
                         (in millions)                                                                        (in millions)                                                                                                                               (in millions)
Core commerce                                              46,079     46,079                 58,075     58,075                  8,342      8,342                108,683    108,683                137,674    137,674                 19,775     19,775  
Cloud computing                                              (274       (274 )                                    (356       (356 )                                     (51        (51 )                                    (994       (994 )                                  (1,235     (1,235 )                                    (177       (177                    )
Digital media and entertainment                            (6,034     (6,034 )                                  (3,298     (3,298 )                                    (474       (474 )                                 (12,968    (12,968 )                                  (7,738     (7,738 )                                  (1,111     (1,111                    )
Innovation initiatives and others                          (1,596     (1,596 )                                  (1,870     (1,870 )                                    (269       (269 )                                  (4,039     (4,039 )                                  (5,752     (5,752 )                                    (826       (826                    )
Unallocated                                                (1,608     (1,608 )                                  (1,889     (1,889 )                                    (271       (271 )                                  (4,458     (4,458 )                                  (5,640     (5,640 )                                    (811       (811                    )
                                  ------------------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                   

ALIBABA GROUP HOLDING LIMITED INFORMATION ABOUT SEGMENTS (CONTINUED)

The table below sets forth selected financial information of our operating segments for nine months ended December 31, 2019:

                     Nine months ended December 31, 2019                                                                                                                                                                             Nine months ended December 31, 2019
                                       ----------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Digital media                          Innovation                                                                        
                                                       Core                                Core                                                     Cloud                                                     and                                                  initiatives                                                                                                             
                                                     commerce                            commerce                                                 computing                                              entertainment                                             and others                                             Unallocated(1)                                                                         Consolidated
                                       ----------------------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ------------------------------------------------------------------------------------------
                                     RMB                                 RMB                                   RMB                                   RMB                                   RMB                                   RMB                                 RMB                                    US$
                                       ----------------------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ------------------------------                       ----------------------------------------
                      (in millions, except percentages)                                                                                                                                                                               (in millions, except percentages)
Revenue                                                            342,239        342,239                 27,799         27,799                 21,004         21,004                  4,355          4,355         -- --                395,397    395,397                 56,795               56,795  
                                                                                                                                                    
Income (loss) from operations                                      118,465        118,465                 (5,259         (5,259 )                                 (10,446        (10,446 )                                  (8,929         (8,929 )                                  (9,532         (9,532 )                                  84,299     84,299                 12,109               12,109  
Add: Share-based compensation expense                               11,074         11,074                  4,007          4,007                  1,718          1,718                  3,114          3,114                  3,177          3,177                 23,090     23,090                  3,316                3,316  
Add: Amortization of intangible assets                               8,135          8,135                     17             17                    990            990                     63             63                    139            139                  9,344      9,344                  1,342                1,342  
Add: Impairment of goodwill                                 -- --         -- --         -- --         -- --                    576            576                    576        576                     83                   83  
                                       ----------------------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                    
Adjusted EBITA                                                     137,674        137,674                  (2)               (1,235         (1,235 )                                  (7,738         (7,738 )                                  (5,752         (5,752 )                                  (5,640         (5,640 )                                 117,309    117,309                 16,850               16,850  
                                       =================================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ========== ==================== ==================== ==================== ====================
Adjusted EBITA margin                                                   40             40 %                                      (4             (4 )%                                    (37            (37 )%                                   (132           (132 )%                                                        30         30 %                       
 
                     Nine months ended December 31, 2018                                                                                                                                                                             Nine months ended December 31, 2018
                                       ----------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Digital media                Digital media                Innovation                   Innovation                                                                        
                                                       Core                                Core                        Cloud                        Cloud                        and                          and                     initiatives                  initiatives                                                                       
                                                     commerce                            commerce                    computing                    computing                 entertainment                entertainment                and others                   and others                Unallocated(1)               Unallocated(1)               Consolidated                                              Consolidated
                                       ----------------------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------------------------------------------------------------------
                                     RMB                                 RMB                         RMB                          RMB                         RMB                          RMB                         RMB                          RMB                         RMB                          RMB                         RMB                                                       RMB
                                       ----------------------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------------------------------------------------------------------
                      (in millions, except percentages)                                                                                                                                                                               (in millions, except percentages)
Revenue                                                            244,506        244,506                 16,976         16,976                 18,406         18,406                  3,458          3,458         -- --                283,346                                              283,346    
                                                                                                                                     
Income (loss) from operations                                       87,680         87,680                 (4,472         (4,472 )                                 (16,192        (16,192 )                                  (8,525         (8,525 )                                 (10,172        (10,172 )                                  48,319                                               48,319    
Add: Share-based compensation expense                               14,640         14,640                  3,463          3,463                  2,297          2,297                  4,456          4,456                  5,525          5,525                 30,381                                               30,381    
Add: Amortization of intangible assets                               6,363          6,363                     15             15                    927            927                     30             30                    189            189                  7,524                                                7,524    
                                       ----------------------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------------------------------------   -------------------- --------------------
                                                                                                                                     
Adjusted EBITA                                                     108,683        108,683                   (994           (994 )                                 (12,968        (12,968 )                                  (4,039         (4,039 )                                  (4,458         (4,458 )                                  86,224                                               86,224    
                                       =================================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ==================================================   ==================== ====================
________________________
     (1) Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.

ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS

                                                                  As of March 31,      As of March 31,    As of December 31,                        As of December 31,
                                                                                  -------------------- -------------------- -------------------- -----------------------------------------------------------
                                                                       2019                 2019                 2019                                      2019
                                                                                  -------------------- -------------------- -------------------- -----------------------------------------------------------
                                                                        RMB                  RMB                  RMB                  RMB                  US$                  US$
                                                                                  -------------------- -------------------- -------------------- -------------------  -------------------- --------------------
                                                                  
                                                                   (in millions)                                                  (in millions)
Assets                                                                                       
Current assets:                                                                              
                                                                                               189,976              189,976              350,575              350,575               50,357               50,357
   Cash and cash equivalents
                                                                                                 3,262                3,262                1,371                1,371                  197                  197
   Short-term investments
                                                                                                 8,518                8,518               20,949               20,949                3,009                3,009
   Restricted cash and escrow receivables
                                                                                                 9,927                9,927                5,264                5,264                  756                  756
   Investment securities
                                                                                                58,590               58,590               81,287               81,287               11,676               11,676
   Prepayments, receivables and other assets
                                                                                  -------------------- -------------------- -------------------- -------------------  -------------------- --------------------
Total current assets                                                                           270,273              270,273              459,446              459,446               65,995               65,995
 
Investment securities                                                                          157,090              157,090              178,155              178,155               25,590               25,590
Prepayments, receivables and other assets(1)                                                    28,018               28,018               54,715               54,715                7,860                7,860
Investment in equity investees                                                                  84,454               84,454              183,882              183,882               26,413               26,413
Property and equipment, net                                                                     92,030               92,030              101,520              101,520               14,582               14,582
Intangible assets, net                                                                          68,276               68,276               64,748               64,748                9,301                9,301
Goodwill                                                                                       264,935              264,935              277,029              277,029               39,793               39,793
                                                                                  -------------------- -------------------- -------------------- -------------------  -------------------- --------------------
Total assets                                                                                   965,076              965,076            1,319,495            1,319,495              189,534              189,534
                                                                                  ==================== ==================== ==================== ===================  ==================== ====================
                                                                          
Liabilities, Mezzanine Equity and Shareholders' Equity            
Current liabilities:                                                                         
                                                                                                 7,356                7,356                4,215                4,215                  605                  605
   Current bank borrowings
                                                                                                15,110               15,110       --       --       --       --
   Current unsecured senior notes
                                                                                                17,685               17,685               21,883               21,883                3,143                3,143
   Income tax payable
                                                                                                 8,250                8,250                9,205                9,205                1,322                1,322
   Escrow money payable
                                                                                               117,711              117,711              165,275              165,275               23,741               23,741
   Accrued expenses, accounts payable and other liabilities(1)
                                                                                                10,762               10,762               23,967               23,967                3,443                3,443
   Merchant deposits
                                                                                                30,795               30,795               37,913               37,913                5,446                5,446
   Deferred revenue and customer advances
                                                                                  -------------------- -------------------- -------------------- -------------------  -------------------- --------------------

ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)

                                                As of March 31,                                                 As of December 31,
                                                                           ----------------------------------                       ----------------------------------------------------------------------------------------
                                                     2019                                                              2019
                                                                           ----------------------------------                       ----------------------------------------------------------------------------------------
                                                      RMB                                   RMB                                   US$
                                                                           ----------------------------------                       ----------------------------------                       ----------------------------------
                                                                                                          (in millions)
                                                                            
Deferred revenue                                                 1,467                  1,939          1,939                    278            278  
Deferred tax liabilities                                        22,517                 43,879         43,879                  6,303          6,303  
Non-current bank borrowings                                     35,427                 38,797         38,797                  5,573          5,573  
Non-current unsecured senior notes                              76,407                 79,375         79,375                 11,401         11,401  
Other liabilities(1)                                             6,187                 25,937         25,937                  3,726          3,726  
                                                                           -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total liabilities                                              349,674                452,385        452,385                 64,981         64,981  
                                                                           -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                           
Commitments and contingencies                           --       --       -- --       --       -- --
                                              6,819                  7,795          7,795                  1,120          1,120  
Mezzanine equity
                                                                                           
Shareholders' equity:
                                                                     1                      1              1         -- --
   Ordinary shares
                                                               231,783                337,046        337,046                 48,414         48,414  
   Additional paid-in capital
                                                        --       --       -- --       --       -- --  
   Treasury shares at cost
                                                                   (97                    )       -- --         -- --  
   Restructuring reserve
                                                                   (49                    )                  (50            (50                    )                   (7             (7                    )
   Subscription receivables
                                                                 5,068                  5,969          5,969                    857            857  
   Statutory reserves
                                                                (2,335                    )               (2,048         (2,048                    )                 (294           (294                    )
   Accumulated other comprehensive loss
                                                               257,886                403,198        403,198                 57,916         57,916  
   Retained earnings
                                                                           -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                           
Total shareholders' equity          492,257                744,116        744,116                106,886        106,886  
Noncontrolling interests                                       116,326                115,199        115,199                 16,547         16,547  
                                                                           -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                           
Total equity                                                   608,583                859,315        859,315                123,433        123,433  
                                                                           -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                           
________________________
     (1) We adopted ASU 2016-02, "Leases (Topic 842)" beginning in the first quarter of fiscal year 2020 using the modified retrospective method and no adjustments are made to the comparative periods. Adoption of the standard resulted in the recognition of operating lease right'of'use assets of approximately RMB24.9 billion and operating lease liabilities of approximately RMB19.4 billion on the consolidated balance sheet as of April 1, 2019. We adopted ASU 2016-02, "Leases (Topic 842)" beginning in the first quarter of fiscal year 2020 using the modified retrospective method and no adjustments are made to the comparative periods. Adoption of the standard resulted in the recognition of operating lease right'of'use assets of approximately RMB24.9 billion and operating lease liabilities of approximately RMB19.4 billion on the consolidated balance sheet as of April 1, 2019.

ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                   Three months ended December 31,                                                      Three months ended December 31,                                                                                                             Nine months ended December 31,
                                                                                                     ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------                             ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                2018                            2018                                                        2019                                                         2018                                                        2019
                                                                                                     ------------------------------- ------------------------------                       --------------------------------------------------------------------------------                          ------------------------------                       --------------------------------------------------------------------------------
                                                                                                 RMB                             RMB                               RMB                               US$                               RMB                               RMB                               US$
                                                                                                     ------------------------------- ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------
                                                                                            (in millions)                                                                        (in millions)                                                                                                                               (in millions)
                                                                                                                                                                           
Net cash provided by operating activities                                                                                     64,898     64,898                 96,505     96,505                 13,862     13,862                132,422    132,422                178,443    178,443                 25,632     25,632  
Net cash used in investing activities                                                                                        (31,055    (31,055 )                                 (32,588    (32,588 )                                  (4,681     (4,681 )                                (134,309   (134,309 )                                 (75,077    (75,077 )                                 (10,784    (10,784 )
Net cash (used in) provided by financing activities                                                                           (8,915     (8,915 )                                  61,287     61,287                  8,803      8,803                 (8,111     (8,111 )                                  67,886     67,886                  9,751      9,751  
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables                             (66        (66 )                                  (1,952     (1,952 )                                    (280       (280 )                                   4,387      4,387                  1,778      1,778                    255        255  
                                                                                                     ------------------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                      
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables                                      24,862     24,862                123,252    123,252                 17,704     17,704                 (5,611     (5,611 )                                 173,030    173,030                 24,854     24,854  
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period                                     172,253    172,253                248,272    248,272                 35,662     35,662                202,726    202,726                198,494    198,494                 28,512     28,512  
                                                                                                     ------------------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                      

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 December 31,                                                            Three months ended December 31,                                                                                                                  Nine months ended December 31,
                                                                                                                   ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                             --------------------------------------------------------------------------------------------------------------------------------
                                                                                                              2018                              2018                                                              2019                                                               2018                                                       2019
                                                                                                                   ------------------------------- ----------------------------------                       ----------------------------------------------------------------------------------------                          ----------------------------------                       --------------------------------------------------------------------------
                                                                                                               RMB                               RMB                                   RMB                                   US$                                   RMB                               RMB                            US$
                                                                                                                   ------------------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ---------------------------                       ---------------------------
                                                                                                          (in millions)                                                                              (in millions)                                                                                                                                    (in millions)
Net income                                                                                                                                  30,964         30,964                 50,132         50,132                  7,201          7,201                 56,855         56,855                140,002 140,002                 20,110  20,110  
Less: Interest and investment income, net                                                                                                  (11,560        (11,560 )                                 (17,136        (17,136 )                                  (2,462         (2,462 )                                 (25,441        (25,441 )                                 (80,671 (80,671 )                                 (11,588 (11,588 )
Add: Interest expense                                                                                                                        1,334          1,334                  1,309          1,309                    188            188                  3,887          3,887                  4,015   4,015                    577     577  
Less: Other income (loss), net                                                                                                                (387           (387 )                                    (987           (987 )                                    (142           (142 )                                   1,228          1,228                 (6,259  (6,259 )                                    (899    (899 )
Add: Income tax expenses                                                                                                                     5,586          5,586                  8,407          8,407                  1,208          1,208                 11,528         11,528                 17,934  17,934                  2,576   2,576  
Add: Share of results of equity investees                                                                                                      861            861                 (2,165         (2,165 )                                    (311           (311 )                                     262            262                  9,278   9,278                  1,333   1,333  
                                                                                                                   ------------------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Income from operations                                                                                                                      26,798         26,798                 39,560         39,560                  5,682          5,682                 48,319         48,319                 84,299  84,299                 12,109  12,109  
Add: Share-based compensation expense                                                                                                        6,960          6,960                  7,830          7,830                  1,125          1,125                 30,381         30,381                 23,090  23,090                  3,316   3,316  
Add: Amortization of intangible assets                                                                                                       2,809          2,809                  3,272          3,272                    470            470                  7,524          7,524                  9,344   9,344                  1,342   1,342  
Add: Impairment of goodwill                                                                                                         -- --                            -- --                            -- --                            -- --         576                     83      83  
                                                                                                                   ------------------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- -------------- --------------------                      ------- -------------------- -------------------- ------- --------------------
Adjusted EBITA                                                                                                                              36,567         36,567                 50,662         50,662                  7,277          7,277                 86,224         86,224                117,309 117,309                 16,850  16,850  
Add: Depreciation and amortization of property and equipment, and operating lease cost relating to land use rights                           4,141          4,141                  5,218          5,218                    750            750                 10,553         10,553                 14,910  14,910                  2,142   2,142  

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 December 31,                Three months ended December 31,                                   Nine months ended December 31,
                                                                                                   ------------------------------- ----------------------------------------------------------                          ------------------------------------------------------------
                                                                                              2018               2018                   2019                    2018                    2019
                                                                                                   ------------------------------- ------                      --------------------------------                        -------                      ---------------------------------
                                                                                               RMB                RMB      RMB      US$       RMB       RMB      US$
                                                                                                   ------------------------------- ------                      ------                      ------                      -------                      -------                      ------
                                                                                          (in millions)                                  (in millions)                                                     (in millions)
Adjusted EBITA for core commerce                                                                                            46,079 46,079               58,075 58,075                8,342  8,342              108,683 108,683              137,674 137,674               19,775 19,775
Less: Effects of local consumer services, New Retail and direct import, Lazada and Cainiao Network                           8,224  8,224                8,296  8,296                1,192  1,192               18,218  18,218               21,107  21,107                3,032  3,032
                                                                                                   ------------------------------- ------ -------------------- ------ -------------------- ------ -------------------- ------- -------------------- ------- -------------------- ------

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 December 31,                                                            Three months ended December 31,                                                                                                                     Nine months ended December 31,
                                                                                                                          ------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                             --------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     2018                              2018                                                              2019                                                               2018                                                          2019
                                                                                                                          ------------------------------- ----------------------------------                       ----------------------------------------------------------------------------------------                          ----------------------------------                       --------------------------------------------------------------------------------
                                                                                                                      RMB                               RMB                                   RMB                                   US$                                   RMB                                 RMB                               US$
                                                                                                                          ------------------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ------------------------------                       ------------------------------
                                                                                                                 (in millions)                                                                              (in millions)                                                                                                                                       (in millions)
                                                                                                                                                                                                                
Net income                                                                                                                                         30,964         30,964                 50,132         50,132                  7,201          7,201                 56,855         56,855                140,002    140,002                 20,110     20,110  
Add: Share-based compensation expense                                                                                                               6,960          6,960                  7,830          7,830                  1,125          1,125                 30,381         30,381                 23,090     23,090                  3,316      3,316  
Add: Amortization of intangible assets                                                                                                              2,809          2,809                  3,272          3,272                    470            470                  7,524          7,524                  9,344      9,344                  1,342      1,342  
Add: Impairment of investments and goodwill                                                                                                         7,552          7,552                  4,842          4,842                    695            695                  7,910          7,910                 24,947     24,947                  3,583      3,583  
Less: Gain on deemed disposals/disposals/ revaluation of investments and others                                                                   (16,859        (16,859 )                                 (17,015        (17,015 )                                  (2,444         (2,444 )                                 (27,564        (27,564 )                                 (15,098    (15,098 )                                  (2,168     (2,168 )
Less: Gain in relation to the receipt of the 33% equity interest in Ant Financial                                                          -- --                 (2,336         (2,336 )                                    (336           (336 )                          -- --                (71,561    (71,561 )                                 (10,279    (10,279 )
Add: Amortization of excess value receivable arising from the restructuring of commercial arrangements with Ant Financial                              66             66         -- --         -- --                    198            198                     97         97                     14         14  
Adjusted for tax effects on non-GAAP adjustments(1)                                                                                                (1,695         (1,695 )                                    (232           (232 )                                     (33            (33 )                                  (1,953         (1,953 )                                    (629       (629 )                                     (90        (90 )
                                                                                                                          ------------------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                           
________________________

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 earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:

                                                                                                Three months ended December 31,                                                         Three months ended December 31,                                                                                                                Nine months ended December 31,
                                                                                                                ------------------------------------ ----------------------------------------------------------------------------------------------------------------------------------                             ----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             2018                               2018                                                        2019                                                         2018                                                            2019
                                                                                                                ------------------------------------ ------------------------------                       --------------------------------------------------------------------------------                          ------------------------------                       --------------------------------------------------------------------------------------
                                                                                                              RMB                                RMB                               RMB                               US$                               RMB                  RMB                                        US$
                                                                                                                ------------------------------------ ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------                                 --------------------------------------------------
                                                                                             (in millions, except per share data)                                                    (in millions, except per share data)                                                                                                           (in millions, except per share data)
                                                                                                                                                                                                  
Net income attributable to ordinary shareholders - basic                                                                         33,052     33,052                 52,309     52,309                  7,514      7,514                 61,770     61,770                146,101           146,101                 20,986     20,986  
Dilution effect on earnings arising from option plans operated by equity investees and subsidiaries                                              (16        (16 )                                     (32        (32 )                                      (5         (5 )                                     (31        (31 )                                     (47               (47 )                                      (7         (7 )
                                                                                                                ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----------------  -------------------- -------------------- ---------- --------------------
Net income attributable to ordinary shareholders - diluted                                                                       33,036     33,036                 52,277     52,277                  7,509      7,509                 61,739     61,739                146,054           146,054                 20,979     20,979  
Add: Non-GAAP adjustments to net income(1)                                                                                                    (1,167     (1,167 )                                  (3,639     (3,639 )                                    (523       (523 )                                  16,496     16,496                (29,810           (29,810 )                                  (4,282     (4,282 )
                                                                                                                ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----------------  -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                             
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS                               31,869     31,869                 48,638     48,638                  6,986      6,986                 78,235     78,235                116,244           116,244                 16,697     16,697  
                                                                                                                ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----------------  -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                             
Weighted average number of shares on a diluted basis (million shares)(5)                                                                      20,913     20,913                 21,393     21,393                                20,984     20,984                 21,187            21,187                 
                                                                                                                                                                                                             
Diluted earnings per share(2)(5)                                                                                                                1.58       1.58                   2.44       2.44                   0.35       0.35                   2.94       2.94                   6.89              6.89                   0.99       0.99  
Add: Non-GAAP adjustments to net income per share(3)(5)                                                                                        (0.06      (0.06 )                                   (0.17      (0.17 )                                   (0.02      (0.02 )                                    0.79       0.79                  (1.40             (1.40 )                                   (0.20      (0.20 )
                                                                                                                ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----------------  -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                             
Non-GAAP diluted earnings per share(4)(5)                                                                                                       1.52       1.52                   2.27       2.27                   0.33       0.33                   3.73       3.73                   5.49              5.49                   0.79       0.79  
                                                                                                                ==================================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ========== ==================== ==================== ================  ==================== ==================== ========== ====================
                                                                                                                                                                                                             
Diluted earnings per ADS(2)(5)                                                                                                                 12.64      12.64                  19.55      19.55                   2.81       2.81                  23.54      23.54                  55.14             55.14                   7.92       7.92  
Add: Non-GAAP adjustments to net income per ADS(3)(5)                                                                                          (0.45      (0.45 )                                   (1.36      (1.36 )                                   (0.20      (0.20 )                                    6.29       6.29                 (11.26            (11.26 )                                   (1.62      (1.62 )
                                                                                                                ------------------------------------ ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----------------  -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                             
________________________
     (1) See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments.                                                                                                                                                                                                                                     See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments.
     (2) Diluted earnings per share is derived from net income attributable to ordinary shareholders for computing diluted earnings per share divided by weighted average number of shares on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjustment to the ordinary share-to-ADS ratio.                                              Diluted earnings per share is derived from net income attributable to ordinary shareholders for computing diluted earnings per share divided by weighted average number of shares on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjustment to the ordinary share-to-ADS ratio.
     (3) Non-GAAP adjustments to net income per share is derived from non-GAAP adjustments to net income divided by weighted average number of shares on a diluted basis. Non-GAAP adjustments to net income per ADS is derived from the non-GAAP adjustments to net income per share after adjustment to the ordinary share-to-ADS ratio.                                               Non-GAAP adjustments to net income per share is derived from non-GAAP adjustments to net income divided by weighted average number of shares on a diluted basis. Non-GAAP adjustments to net income per ADS is derived from the non-GAAP adjustments to net income per share after adjustment to the ordinary share-to-ADS ratio.
     (4) Non-GAAP diluted earnings per share is derived from non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share divided by weighted average number of shares on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjustment to the ordinary share-to-ADS ratio. Non-GAAP diluted earnings per share is derived from non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share divided by weighted average number of shares on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjustment to the ordinary share-to-ADS ratio.

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 December 31,                                                        Three months ended December 31,                                                                                                                 Nine months ended December 31,
                                                                                                                              ------------------------------- --------------------------------------------------------------------------------------------------------------------------------------                             --------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         2018                              2018                                                          2019                                                           2018                                                          2019
                                                                                                                              ------------------------------- ----------------------------------                       --------------------------------------------------------------------------------                          ----------------------------------                       --------------------------------------------------------------------------------
                                                                                                                          RMB                               RMB                                 RMB                               US$                                 RMB                                 RMB                               US$
                                                                                                                              ------------------------------- ----------------------------------                       ------------------------------                       ------------------------------                       ----------------------------------                       ------------------------------                       ------------------------------
                                                                                                                     (in millions)                                                                          (in millions)                                                                                                                                   (in millions)
Net cash provided by                                                                                                                                   64,898         64,898                 96,505     96,505                 13,862     13,862                132,422        132,422                178,443    178,443                 25,632     25,632  
operating activities
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses)                         (10,011        (10,011 )                                  (5,749     (5,749 )                                    (825       (825 )                                 (26,648        (26,648 )                                 (20,781    (20,781 )                                  (2,985     (2,985 )
Less: Acquisition of licensed copyrights and other intangible assets                                                                                   (3,514         (3,514 )                                  (5,274     (5,274 )                                    (758       (758 )                                 (12,010        (12,010 )                                 (10,120    (10,120 )                                  (1,454     (1,454 )
Less: Changes in the consumer protection fund deposits                                                                                         -- --                 (7,203     (7,203 )                                  (1,035     (1,035 )                          -- --                (12,414    (12,414 )                                  (1,783     (1,783 )
                                                                                                                              ------------------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                            

ALIBABA GROUP HOLDING LIMITED SELECTED OPERATING DATA

Annual active consumers

The table below sets forth the number of annual active consumers on our China retail marketplaces for the periods indicated:

   Twelve months ended                                                                                                 Twelve months ended
                     ------------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
         Mar 31,       Mar 31,   Jun 30,   Sep 30,   Dec 31,   Mar 31,   Jun 30,  Sept 30,    Dec 31,
                             2018          2018                         2018                         2018                         2018                         2019                         2019                         2019                          2019
                     ------------------- -------                      -------                      -------                      -------                      -------                      -------                      --------                      -------
      (in millions)                                                                                                       (in millions)

Mobile

The table below sets forth the number of mobile MAUs on our China retail marketplaces for the periods indicated:

   The month ended                                                                                                   The month ended
                     --------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Mar 31,     Mar 31,   Jun 30,   Sep 30,   Dec 31,   Mar 31,   Jun 30,  Sept 30,    Dec 31,
                           2018        2018                         2018                         2018                         2018                         2019                         2019                         2019                          2019
                     --------------- -------                      -------                      -------                      -------                      -------                      -------                      --------                      -------
    (in millions)                                                                                                     (in millions)

View source version on businesswire.com: https://www.businesswire.com/news/home/20200213005393/en/

SOURCE: Alibaba Group Holding Limited

Investor Relations Contact
Rob Lin
investor@alibabagroup.com 

Media Contacts
Brion Tingler
brion.tingler@alibaba-inc.com 

Adam Najberg
adam.najberg@alibaba-inc.com

Earnings Calendar and Events Data provided by |Terms of Use| © 2020 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., , and

Copyright © 2020. All rights reserved.