\n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nCash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n BUSINESS AND STRATEGIC UPDATES<\/b><\/p>\n Consumption Businesses<\/span><\/b><\/p>\nAlibaba China E-commerce Group<\/i><\/p>\n \nWe are prioritizing the integration of AI capabilities with our e-commerce applications to enhance the experiences for both consumers and merchants. On the consumer side, we integrated Taobao and Tmall e-commerce service into the Qwen app, thereby expanding Qwen\u2019s user reach and adding a brand new AI-driven experience for our Taobao and Tmall customers. Additionally, the Taobao app launched the Qwen Shopping Assistant, an AI agent providing end-to-end assistance across the entire shopping journey, including idea generation, product discovery, in-sale support, order management, and post-purchase services. For merchants, we rolled out Wukong, our AI-native enterprise agent that integrates advanced agentic capabilities into workflow to bring efficiency to merchant operations.<\/p>\n \nTo help merchants grow their businesses and increase willingness to spend on our platform, we upgraded our business development program for select merchants during the quarter, under which the level of platform subsidies for these merchants is directly tied to their marketing spend on our platform. For accounting purposes, such subsidies previously recorded as sales and marketing expenses are now recorded as a contra revenue item to customer management revenue (CMR). Accordingly, CMR grew 1% year-over-year during the quarter. Excluding the contra revenue impact from the program, on a like-for-like basis, CMR would have grown 8% year-over-year.<\/p>\n \nOur quick commerce business remained focused on scaling the business while improving unit economics, with increasing focus on high-value food orders and non-food categories. The quick commerce business further improved unit economics, and increased average order value quarter-over-quarter primarily driven by order mix optimization.<\/p>\n \nThe number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 62 million. We remain focused on the retention of 88VIP members through enhanced value proposition to our most valued customers.<\/p>\n Alibaba International Digital Commerce Group (\u201cAIDC\u201d)<\/i><\/p>\n \nDuring the quarter, AIDC narrowed loss significantly year-over-year, approaching break-even, driven by a combination of logistics optimization and operating efficiency. The unit economics of the AliExpress\u2019 Choice<\/i> business continued to improve substantially on a sequential basis. We aim to diversify and enrich our product offerings by leveraging the supply chain advantages of the Alibaba ecosystem. AliExpress\u2019 \u201cBrand+\u201d program further accelerated brand onboarding, and the penetration of quarterly transacting consumers for \u201cBrand+\u201d surpassed 30% during the quarter.<\/p>\n \nOur international wholesale platform, Alibaba.com, continued to broaden adoption of its AI-powered tools among merchants. In addition to our established AI sourcing agent Accio, we also launched Accio Work, an agentic business platform designed to handle the full operating lifecycle of global small and medium-sized businesses beyond sourcing alone, aiming to significantly lower the entry barrier for cross-border commerce and enhance operational efficiency.<\/p>\n AI + Cloud Businesses<\/span><\/b><\/p>\nCloud Intelligence Group<\/i><\/p>\n \nFor the quarter ended March 31, 2026, revenue from Cloud Intelligence Group was RMB41,626 million (US$6,035 million), a 38% increase from the same quarter last year. Notably, the year-over-year growth of revenue from external customers accelerated to 40%. This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products. AI-related product revenue continued to show strong momentum, achieving RMB8,971 million and delivering the eleventh consecutive quarter of triple-digit year-over-year growth.<\/p>\n \nAlibaba Cloud continues to onboard more customers to our comprehensive AI + cloud products and services, including high-performance networking, distributed storage, cloud operating system, and services for model training and inference. We are executing our strategy to lead China\u2019s AI cloud market through our comprehensive full-stack AI capabilities across AI models, AI cloud infrastructure, and orchestration software that manages heterogeneous chip clusters, including our own proprietary inference chips.<\/p>\n \nDuring the quarter, we focused on executing our Model-as-a-Service (MaaS) strategy. As we observed rapidly increasing demand for MaaS, we launched a diverse portfolio of offerings on our MaaS platform Model Studio tailored to users ranging from individual developers to large enterprises. This comprises an expanded lineup of state-of-the-art models such as Qwen3.6-Plus, enterprise solutions with flexible Token Plans, and a growing suite of agents including Wukong, Meoo, and industry-specific agents. As a result, the customer base for Model Studio grew by eight-fold year-over-year as of March 2026.<\/p>\n Model<\/i><\/p>\n \nWe continue to push the boundaries of AI capabilities through deep innovation, and we achieved significant breakthroughs in model intelligence recently through a series of new model launches within our large language and multimodal model portfolio.<\/p>\n \nIn March, we introduced Qwen3.6-Plus which delivered significant all-round performance gains, with particularly notable improvements in coding and agentic programming. It achieves state-of-the-art results across front-end web development and complex repository-level tasks. Qwen3.6-Plus also features enhanced multimodal perception and reasoning, and a native context window of up to 1 million tokens, while further improving stability and reliability.<\/p>\n \nComplementing the Qwen family, we are also advancing specialized models including HappyOyster, a world model enabling real-time creation and interaction, and HappyHorse, a multimodal model for video generation. The commercialization of both models is currently being rolled out in phases.<\/p>\n Chip Design \u2013 T-Head<\/i><\/p>\n \nT-Head Semiconductor Co., Ltd. (\u201cT-Head\u201d), our chip design subsidiary, has achieved widespread industrial application of its proprietary AI chips, with the automotive sector serving as a leading example of large-scale adoption. Over 100,000 Zhenwu PPUs have been deployed on Alibaba Cloud\u2019s public cloud platform, with more than 30 leading automakers and autonomous driving companies leveraging the chips for intelligent driving R&D. The Zhenwu chips, together with Alibaba Cloud and Qwen models, form a fully integrated technology stack that significantly accelerates both training and inference efficiency.<\/p>\n Dividends<\/span><\/b><\/p>\n\nOur board of directors has approved an annual regular cash dividend for fiscal year 2026 in the amount of US$0.13125 per ordinary share or US$1.05 per ADS, payable in U.S. dollars, to holders of ordinary shares and holders of ADSs, as of the close of business on June 11, 2026, Hong Kong Time and New York Time, respectively. The aggregate amount of the dividend will be approximately US$2.5 billion. As at the date hereof, the company does not hold any treasury shares whether in the Central Clearing and Settlement System, or otherwise.<\/p>\n \nFor holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the company\u2019s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen\u2019s Road East, Wanchai, Hong Kong, not later than 4:30 p.m. on June 11, 2026, Hong Kong Time. The payment date is expected to be on or around July 6, 2026 for holders of ordinary shares and on or around July 13, 2026 for holders of ADSs.<\/p>\n MARCH QUARTER SUMMARY FINANCIAL RESULTS<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n US$<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages and per share amounts)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue<\/p>\n<\/td>\n | | \n\n \n236,454<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n243,380<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n35,283<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nIncome (Loss) from operations<\/p>\n<\/td>\n | | \n\n \n28,465(2)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n(848)(2)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n(123)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \nN\/A<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating margin<\/p>\n<\/td>\n | | \n\n \n12%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA(1)<\/sup><\/p>\n<\/td>\n | \n\n \n41,783<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n16,435<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2,383<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(61)%(2)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDA margin(1)<\/sup><\/p>\n<\/td>\n | \n\n \n18%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n7%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITA(1)<\/sup><\/p>\n<\/td>\n | \n\n \n32,616<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5,102<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n740<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(84)%(2)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITA margin(1)<\/sup><\/p>\n<\/td>\n | \n\n \n14%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income<\/p>\n<\/td>\n | | \n\n \n11,973<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n23,502<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3,407<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n96%(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet income attributable to ordinary shareholders<\/p>\n<\/td>\n | | \n\n \n12,382<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n25,476<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3,693<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n106%(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP net income(1)<\/sup><\/p>\n<\/td>\n | \n\n \n29,847<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n86<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n12<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(100)%(2)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted earnings per share(4)<\/sup><\/p>\n<\/td>\n | \n\n \n0.65<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.30<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.19<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n101%(3)(5)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nDiluted earnings per ADS(4)<\/sup><\/p>\n<\/td>\n | \n\n \n5.17<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n10.36<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.50<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n101%(3)(5)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP diluted earnings per share(1)(4)<\/sup><\/p>\n<\/td>\n | \n\n \n1.57<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.08<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.01<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(95)%(2)(5)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP diluted earnings per ADS(1)(4)<\/sup><\/p>\n<\/td>\n | \n\n \n12.52<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.62<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.09<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(95)%(2)(5)<\/sup><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nSee the sections entitled \u201cNon-GAAP Financial Measures\u201d and \u201cReconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures\u201d for more information about the non-GAAP measures referred to within this results announcement.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year decreases were primarily attributable to the investment in technology businesses, quick commerce and user experiences, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year increases were primarily attributable to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and disposal losses of Sun Art and Intime in the same quarter last year, partly offset by the decrease in adjusted EBITA, while net income attributable to ordinary shareholders and earnings per share\/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded non-cash share-based compensation expense, gains\/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(4)<\/p>\n<\/td>\n | | \n\n \nEach ADS represents eight ordinary shares.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(5)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n MARCH QUARTER SEGMENT RESULTS<\/b><\/p>\n \nRevenue for the quarter ended March 31, 2026 was RMB243,380 million (US$35,283 million), an increase of 3% year-over-year compared to RMB236,454 million in the same quarter of 2025. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 11% year-over-year.<\/p>\n \nThe following table sets forth a breakdown of our revenue by segment for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31,<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAlibaba China E-commerce Group:<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nE-commerce<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Customer management<\/p>\n<\/td>\n | | \n\n \n72,180<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n73,024<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n10,586<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Direct sales, logistics and others(2)<\/sup><\/p>\n<\/td>\n | \n\n \n24,665<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n23,268<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,373<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n96,845<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n96,292<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n13,959<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nQuick commerce(3)<\/sup><\/p>\n<\/td>\n | \n\n \n12,715<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n19,988<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2,898<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n57<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nChina commerce wholesale<\/p>\n<\/td>\n | | \n\n \n5,788<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5,940<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n861<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal Alibaba China E-commerce Group<\/p>\n<\/td>\n | | \n\n \n115,348<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n122,220<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n17,718<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAlibaba International Digital Commerce Group:<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInternational commerce retail<\/p>\n<\/td>\n | | \n\n \n27,603<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n28,917<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4,192<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInternational commerce wholesale<\/p>\n<\/td>\n | | \n\n \n5,976<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6,512<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n944<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal Alibaba International Digital Commerce Group<\/p>\n<\/td>\n | | \n\n \n33,579<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n35,429<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5,136<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCloud Intelligence Group<\/p>\n<\/td>\n | | \n\n \n30,127<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n41,626<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6,035<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n38<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAll others(4)<\/sup><\/p>\n<\/td>\n | \n\n \n83,276<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n65,459<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n9,490<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(21<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnallocated<\/p>\n<\/td>\n | | \n\n \n446<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n641<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n93<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInter-segment elimination<\/p>\n<\/td>\n | | \n\n \n(26,322<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(21,995<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(3,189<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Consolidated revenue<\/b><\/p>\n<\/td>\n | | \n\n 236,454<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 243,380<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 35,283<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 3<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nTo advance our \u201cuser first\u201d strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into \u201cAll others\u201d. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nDirect sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nQuick commerce revenue represents quick commerce business revenue, including revenue generated through \u201cTaobao Instant Commerce\u201d and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(4)<\/p>\n<\/td>\n | | \n\n \nAll others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Amap.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n US$<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n YoY %
\n
Change<\/b>(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAlibaba China E-commerce Group<\/p>\n<\/td>\n | | \n\n \n39,742<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n24,010<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,481<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(40<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAlibaba International Digital Commerce Group<\/p>\n<\/td>\n | | \n\n \n(3,574<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(138<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(20<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n96<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCloud Intelligence Group<\/p>\n<\/td>\n | | \n\n \n2,420<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,796<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n550<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n57<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAll others<\/p>\n<\/td>\n | | \n\n \n(3,413<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(21,160<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(3,067<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(520<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnallocated(2)<\/sup><\/p>\n<\/td>\n | \n\n \n(2,030<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(788<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(114<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInter-segment elimination<\/p>\n<\/td>\n | | \n\n \n(529<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(618<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(90<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Consolidated adjusted EBITA<\/b><\/p>\n<\/td>\n | | \n\n 32,616<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 5,102<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 740<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (84<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nLess: Non-cash share-based compensation expense<\/p>\n<\/td>\n | | \n\n \n(2,781<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(2,708<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(393<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLess: Amortization and impairment of intangible assets, and others<\/p>\n<\/td>\n | | \n\n \n(1,370<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(3,242<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(470<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income (Loss) from operations<\/b><\/p>\n<\/td>\n | | \n\n 28,465<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (848<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | | \n\n (123<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | | \n\n N\/A<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nTo advance our \u201cuser first\u201d strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into \u201cAll others\u201d. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nUnallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nFor a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Alibaba China E-commerce Group<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n\n- E-commerce Business\n
<\/i><\/b>Revenue from our E-commerce business in the quarter ended March 31, 2026 was RMB96,292 million (US$13,959 million), a decrease of 1% compared to RMB96,845 million in the same quarter of 2025.<\/p>\n Customer management revenue increased by 1% year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 8% year-over-year.<\/p>\n Direct sales, logistics and others revenue under E-commerce business in the quarter ended March 31, 2026 was RMB23,268 million (US$3,373 million), a decrease of 6% compared to RMB24,665 million in the same quarter of 2025, primarily due to the decrease in revenue from certain direct sales businesses.<\/p>\n<\/li>\n<\/ul>\n \n- Quick Commerce Business\n
<\/i><\/b>Revenue from our Quick commerce business in the quarter ended March 31, 2026 was RMB19,988 million (US$2,898 million), an increase of 57% compared to RMB12,715 million in the same quarter of 2025, mainly due to order growth as a result of the rollout of \u201cTaobao Instant Commerce\u201d at the end of April 2025.<\/p>\n<\/li>\n<\/ul>\n \n- China Commerce Wholesale Business\n
<\/i><\/b>Revenue from our China commerce wholesale business in the quarter ended March 31, 2026 was RMB5,940 million (US$861 million), an increase of 3% compared to RMB5,788 million in the same quarter of 2025, primarily due to an increase in revenue from value-added services provided to paying members.<\/p>\n<\/li>\n<\/ul>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAlibaba China E-commerce Group adjusted EBITA decreased by 40% to RMB24,010 million (US$3,481 million) in the quarter ended March 31, 2026, compared to RMB39,742 million in the same quarter of 2025, primarily due to the investment in quick commerce, user experiences, and technology, while there is positive contribution from customer management service.<\/p>\n Alibaba International Digital Commerce Group<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n\n- International Commerce Retail Business\n
<\/i><\/b>Revenue from our International commerce retail business in the quarter ended March 31, 2026 was RMB28,917 million (US$4,192 million), an increase of 5% compared to RMB27,603 million in the same quarter of 2025, comprising the revenue increase contributed by AliExpress and other international businesses, and partly offset by the revenue decrease of Lazada. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC\u2019s revenue is affected by exchange rate fluctuations.<\/p>\n<\/li>\n<\/ul>\n \n- International Commerce Wholesale Business\n
<\/i><\/b>Revenue from our International commerce wholesale business in the quarter ended March 31, 2026 was RMB6,512 million (US$944 million), an increase of 9% compared to RMB5,976 million in the same quarter of 2025, primarily due to an increase in revenue generated by cross-border related value-added services.<\/p>\n<\/li>\n<\/ul>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAlibaba International Digital Commerce Group adjusted EBITA was a loss of RMB138 million (US$20 million) in the quarter ended March 31, 2026, compared to a loss of RMB3,574 million in the same quarter of 2025, primarily due to significant improvement in AliExpress\u2019 operating efficiency, and enhanced efficiencies across various businesses.<\/p>\n Cloud Intelligence Group<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n \nRevenue from Cloud Intelligence Group was RMB41,626 million (US$6,035 million) in the quarter ended March 31, 2026, an increase of 38% compared to RMB30,127 million in the same quarter of 2025. Overall revenue from external customers increased by 40% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.<\/p>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nCloud Intelligence Group adjusted EBITA increased by 57% to RMB3,796 million (US$550 million) in the quarter ended March 31, 2026, compared to RMB2,420 million in the same quarter of 2025, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.<\/p>\n All Others<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n \nRevenue from All others segment was RMB65,459 million (US$9,490 million) in the quarter ended March 31, 2026, a decrease of 21% compared to RMB83,276 million in the same quarter of 2025, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Amap.<\/p>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAdjusted EBITA from All others segment in the quarter ended March 31, 2026 was a loss of RMB21,160 million (US$3,067 million), compared to a loss of RMB3,413 million in the same quarter of 2025, primarily due to the increased investment in technology businesses (including investment in user acquisition of Qwen app), partly offset by the improved operating results of other businesses.<\/p>\n MARCH QUARTER OTHER FINANCIAL RESULTS<\/b><\/p>\n Costs and Expenses<\/span><\/b><\/p>\n\nThe following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31,<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue
\n
YoY
\n
change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Costs and expenses:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n145,626<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n61.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n159,392<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n23,107<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n65.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n3.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n14,934<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n18,957<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2,748<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n36,179<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n15.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n53,415<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7,744<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n21.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n6.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n10,331<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n9,949<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1,442<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAmortization and impairment of intangible assets<\/p>\n<\/td>\n | | \n\n \n833<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n2,605<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n378<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n0.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal costs and expenses<\/p>\n<\/td>\n | | \n\n \n207,903<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n244,318<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n35,419<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Share-based compensation expense:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n417<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n487<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n70<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n0.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n1,538<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1,247<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n181<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.2<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n654<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n352<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n51<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.2<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n826<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1,006<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n146<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n0.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal share-based compensation expense(1)<\/sup><\/p>\n<\/td>\n | \n\n \n3,435<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,092<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n448<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Costs and expenses excluding share-based compensation expense:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n145,209<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n61.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n158,905<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n23,037<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n65.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n3.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n13,396<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n17,710<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2,567<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n35,525<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n15.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n53,063<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7,693<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n21.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n6.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n9,505<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n8,943<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1,296<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAmortization and impairment of intangible assets<\/p>\n<\/td>\n | | \n\n \n833<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n2,605<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n378<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n0.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal costs and expenses excluding share-based compensation expense<\/p>\n<\/td>\n | | \n\n \n204,468<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n241,226<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n34,971<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nThis includes both cash and non-cash share-based compensation expenses.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Cost of revenue<\/b> \u2013 Cost of revenue in the quarter ended March 31, 2026 was RMB159,392 million (US$23,107 million), or 65.5% of revenue, compared to RMB145,626 million, or 61.6% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 61.4% in the quarter ended March 31, 2025 to 65.3% in the quarter ended March 31, 2026, primarily driven by the growth in our cloud and technology businesses, and our expansion in quick commerce businesses, partly offset by the disposal of Sun Art and Intime.<\/p>\n Product development expenses<\/b> \u2013 Product development expenses in the quarter ended March 31, 2026 were RMB18,957 million (US$2,748 million), or 7.8% of revenue, compared to RMB14,934 million, or 6.3% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.7% in the quarter ended March 31, 2025 to 7.3% in the quarter ended March 31, 2026, primarily due to investments in our research and development personnel and other technology infrastructure costs.<\/p>\n Sales and marketing expenses<\/b> \u2013 Sales and marketing expenses in the quarter ended March 31, 2026 were RMB53,415 million (US$7,744 million), or 21.9% of revenue, compared to RMB36,179 million, or 15.3% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 15.0% in the quarter ended March 31, 2025 to 21.8% in the quarter ended March 31, 2026, primarily attributable to the investment in quick commerce business and user acquisition of Qwen app.<\/p>\n General and administrative expenses<\/b> \u2013 General and administrative expenses in the quarter ended March 31, 2026 were RMB9,949 million (US$1,442 million), or 4.1% of revenue, compared to RMB10,331 million, or 4.4% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 4.0% in the quarter ended March 31, 2025 to 3.7% in the quarter ended March 31, 2026.<\/p>\n Share-based compensation expense<\/b> \u2013 Total share-based compensation expense included in the cost and expense items above in the quarter ended March 31, 2026 was RMB3,092 million (US$448 million), compared to RMB3,435 million in the same quarter of 2025.<\/p>\n \nThe following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended March 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n US$<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |