On November 5, Alibaba released its financial report for the second quarter of 2021 (i.e., the third quarter of 2020). As of September 2020, Alibaba recorded revenue of 155.059 billion yuan, slightly higher than the market expected 154.737 billion yuan, an increase of 30.3% over the same period last year. < p > < p > for the decrease of net profit on a year-on-year basis, Alibaba explained that it was a one-time major income recognized when it obtained 33% shares of ant group in the same period of last year, and it also issued a one-time equity incentive of RMB 16 billion to ant in the same period of this year, so the “gap” is obvious. Excluding one-time income, equity incentive fees and other items, the non GAAP of the third quarter of 2020 is RMB 47.088 billion, which is 44% higher than RMB 32.750 billion in the same period of 2019, which is in line with the expectation. < p > < p > in terms of business, Alibaba’s core business revenue in the third quarter was 130.922 billion yuan, accounting for 84% of the total revenue, an increase of 29% compared with the same period last year, but the growth rate slowed down, with a slight decrease compared with the previous quarter of 133.318 billion yuan. At the same time, in the third quarter, Alibaba’s “monthly mobile users in China’s retail market”, that is, the number of users dominated by Taobao tmall app was 881 million, which was lower than the market estimate of 899 million. This is a little bit of a steady increase in the overall data. < p > < p > in the financial report, Alibaba divides its core business into China retail, China wholesale, cross-border retail, rookie logistics, local life, etc. Data show that the growth of core businesses slowed down year on year in the third quarter, mainly from the core of Taobao tmall’s retail business. The business’s revenue in this quarter was 95.47 billion, accounting for three fifths of the total revenue of the quarter. However, the growth rate slowed down significantly year on year, and even decreased by 5.8% month on month. Correspondingly, other parts showed a growth trend, especially the growth rate of rookie logistics and local life was more obvious, with a year-on-year growth of 73% and 29% respectively. In terms of cloud computing, driven by the needs of customers in the Internet, finance and retail industries, the revenue in the third quarter was 14.9 billion, up 60% year-on-year. According to the financial report, as of September 30, 2020, about 60% of A-share listed companies are customers of Alibaba cloud, and their average expenditure in September this year increased by 45% year-on-year. In the conference call after the release of the financial report, Alibaba CFO Wu Wei once again stressed the expectation of cloud computing profits. She said that the cloud computing business is close to making a profit, and the current loss is 150 million yuan, and it is expected that it can become a full member and make a profit within two quarters. < / P > < p > at the same time, thanks to Alibaba’s division of self-developed online game business from innovation business and other parts into the digital media and entertainment section (i.e. Alibaba Entertainment’s section), the latter’s revenue in this quarter reached 8.066 billion, a year-on-year increase, and the loss situation, which has always been affected by Youku, has also been significantly narrowed. < p > < p > in a conference call, Wu Wei said that the overall loss of non core businesses other than Taobao tmall, including new retail, rookie and import businesses, has been shrinking from 7.1 billion in the same period last year to 5 billion at present. In addition, Alibaba’s emerging businesses, including digital media and entertainment, also saw a sharp narrowing of losses, from 6.5 billion in the same period last year to 4.7 billion at present. On the one hand, the reason behind it is that the scale effect is achieved, on the other hand, the efficiency of operation is improved. < / P > < p > this presents a new “pattern”, which is no longer relying on core e-commerce to continuously grow and make money, while other businesses are in the stage of “losing money” for growth. Alibaba, which has a large and complex business, is about to enter a new stage of “walking with many legs”. < / P > < p > in the face of pinduoduo’s catching up, the number of users has always been the focus of attention of the outside world. Even many data forecasts in the market believe that pinduoduo will catch up with Taoxi e-commerce in terms of monthly living in the next year. In this context, the recent financial reports and a series of actions of Alibaba in Taoxi e-commerce show another trend. Its consideration of e-commerce business growth no longer focuses on the growth of user data, but turns to pay more attention to let users stay on the platform longer and further improve the consumption conversion rate. < / P > < p > in the financial report, compared with the data of users such as dau and Mau, Alibaba starts to emphasize the Gmv and other information that have not appeared for a long time. For example, this financial report provides the Gmv growth rate of tmall and Taobao, and the caliber is narrower than before, that is, the growth rate of unpaid orders is eliminated; compared with the previous, for Taobao live broadcast, it only provides an increase There is no specific data, but the financial report disclosed that during the period from September 2019 to September 2020, Taobao live Gmv exceeded 350 billion. < / P > < p > these financial report adjustments can also be compared with a series of recent actions of Taoxi. One of the most important adjustments is the home page revision of mobile Taobao. This is also to increase the length of user stay and improve the conversion rate. According to pinplay, the average time spent by users on the app has been improved by 20% immediately after the revision of hand washing. < / P > < p > in addition to the internal adjustment of these applications and platforms, Alibaba launched the repositioned Taobao special edition in March this year, trying to attract more price sensitive users. The financial report also specially released the user data of Taobao special price version. In September this year, the Mau of Taobao special price version exceeded 70 million. However, this data does not represent the results of new users. It seems more appropriate to put it together with the achievements of new brand development that tmall has been emphasizing. Because both are Alibaba’s more refined positioning of users, and provide corresponding goods and services for different subdivision needs. Zhang Yong, chairman of Alibaba’s board of directors and CEO, also said that Taobao has a very high coverage among netizens, so it is impossible to say that there is no overlap between the two users. However, even if there is overlap, the average consumption of the two platforms has increased as a whole. On the one hand, Taobao special edition has attracted new consumers, on the other hand, the consumption frequency of users on the two platforms has increased. < p > < p > on the whole, in the future, Alibaba expects that cloud computing and other businesses will share the overall performance pressure of the company, so the core e-commerce business seems to be no longer so “core”. However, this does not mean that Taobao tmall business can get a break. What they are entering is a new stage of upgrading supporting facilities such as fine operation ability, transaction efficiency, supply chain and logistics. According to the financial report, the profit margin of core businesses was 35%, compared with 38% in the same period last year, which proves to some extent that this will be a more difficult stage. Global Tech

By ibmwl