Operating Results The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the related notes included in this annual report and in particular, “Business Overview.” This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forwardlooking statements as a result of various factors, including those set forth under “Risk Factors” and elsewhere in this annual report. We have prepared our consolidated financial statements in accordance with U.S. GAAP. Our fiscal year ends on March 31 and references to fiscal years 2022, 2023 and 2024 are to the fiscal years ended March 31, 2022, 2023 and 2024, respectively. Overview Our total revenue increased by 2% from RMB853,062 million in fiscal year 2022 to RMB868,687 million in fiscal year 2023, and further increased by 8% to RMB941,168 million (US$130,350 million) in fiscal year 2024. Our net income increased by 39% from RMB47,079 million in fiscal year 2022 to RMB65,573 million in fiscal year 2023, and increased by 9% to RMB71,332 million (US$9,879 million) in fiscal year 2024. Our non-GAAP net income, which excludes the effect of share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments and others, and adjustments for the tax effects, increased by 4% from RMB136,388 million in fiscal year 2022 to RMB141,379 million in fiscal year 2023. NonGAAP net income increased by 11% to RMB157,479 million (US$21,811 million) in fiscal year 2024. For further information on non-GAAP financial measures we use in evaluating our operating results and for financial and operational decision-making purposes, see “— Non-GAAP Measures.” Our Segments We organize and report our business in the following segments: • Taobao and Tmall Group; • Cloud Intelligence Group; • Alibaba International Digital Commerce Group; • Cainiao Smart Logistics Network Limited; • Local Services Group; • Digital Media and Entertainment Group; and • All others. This presentation reflects how we manage our business to maximize efficiency in allocating resources. This presentation also provides further transparency to our various businesses that are executing different phases of growth and operating leverage trajectories. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. We allocate costs and expenses that are not directly attributable to individual segments, such as those that support infrastructure across different operating segments, to different operating segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. In discussing the operating results of these segments, we present each segment’s revenue and adjusted earnings before interest, taxes and amortization, or adjusted EBITA. Our reported segments are described below: • Taobao and Tmall Group, which includes Taobao, Tmall, Xianyu, 1688.com and other businesses. • Cloud Intelligence Group, which includes Alibaba Cloud and other businesses. • Alibaba International Digital Commerce Group, which includes AliExpress, Trendyol, Lazada, Alibaba.com and other businesses. 82 Alibaba Group Holding Limited Management Discussion and Analysis
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