Yesterday evening, Alibaba announced its first quarter performance for fy2021 as of June 30, 2020. The report showed that Alibaba Group’s revenue was 15.37 billion yuan, up 34% year-on-year, and net profit under non-U.S. general accounting standards reached 39.47 billion yuan, up 28% year on year. However, although Alibaba’s revenue again exceeded 150billion yuan in the quarter, approaching the historical peak before the epidemic, its year-on-year growth rate is still the lowest level in recent three years – if not accounting for 22% of the impact of the epidemic in the previous quarter, considering that although the online real estate retail sales volume in the first half of this year has a year-on-year growth of 14.3%, it is still a new low in history, and Alibaba can have 34% increase The profit is not easy – in this quarter, the net revenue of Jingdong increased by 33.8% year-on-year, which is basically the same; Alibaba culture entertainment, the rich daughter, has continued to narrow its losses, but the growth rate of revenue is still low, while the 9% revenue growth is still from the online game business of self research, which was previously classified into innovation business and other branches. But in any case, in what Zhang Yong, chairman and CEO of Alibaba board of directors, said, “unusual times”, confidence is the most valuable word, and “stability” is more important. For companies with a huge size like Alibaba, it is not difficult to grow for a moment, but it is difficult to keep growing and the growth line has been rising all the time. The financial report shows that Alibaba’s revenue in the quarter was 15.3751 billion yuan, up 34% year-on-year, with the market expected to be 14.8055 billion yuan; the net profit was 46.437 billion yuan, which was 39.474 billion yuan, up 28% year-on-year, according to non-U.S. general accounting standards. Compared with Alibaba’s financial results in recent three years, Alibaba’s revenue in the quarter is second, second only to the third quarter of fy2020, that is, the fourth quarter of 2019 in natural year, but if the time axis is lengthened, its revenue growth is still slowing down. However, compared with other Internet companies, Alibaba’s revenue growth rate is still ahead – JD is 33.8%, basically flat, Tencent is 29%, while Baidu has not risen, but has fallen by 1%. At present, Alibaba’s business is mainly divided into four major sectors, namely Taobao, tmall, rookie, hungry, box maseisheng, lazada and other core businesses. Alibaba cloud, Alibaba entertainment and innovative businesses including Gaode map, nail nail and tmall elves are the core businesses. The core business is the absolute main force of revenue contribution – the revenue of this quarter is 13.32 billion yuan, accounting for 86.7% of the total revenue, up 34% year-on-year, consistent with the overall market. After adjusting EBITA to 5.24 billion yuan, the converted value is equivalent to earning 560million yuan a day, and the flagship is in fact. Wu Wei, chief financial officer of Alibaba group, also said the company started very strongly in the new fiscal year, and that China’s core business business has fully recovered to pre epidemic levels. Although adjusted EBITA is growing, adjusted EBITA margins are falling – 38% in the quarter and 41% in the same period last year. That is to say, the rate has been lowered and profits are rising, whether for businesses or platforms, they are all good. The core business is divided into six parts: China retail business, China wholesale business, cross-border and global retail business, cross-border and global wholesale commerce, rookie logistics service and local life service. China’s retail business is the top priority, with revenue of 1013 yuan this quarter, up 34% year-on-year, accounting for 76% of core business revenue; cross border and global retail business revenue is 7billion, accounting for 5.3% of core business revenue. Retail business has supported more than 80% of Alibaba’s core business revenue. China’s wholesale business, cross-border and global wholesale business revenue are 3.5 billion and 3.2 billion respectively, accounting for 5% of the core business revenue. The logistics service and local life service of rookie should be the business that is impacted by the epidemic. As the epidemic prevention and control enters the normalization, the situation is improving continuously. The revenue of rookies in this quarter was 7.7 billion yuan, an increase of 54% year-on-year; while local living services revenue exceeded 7.1 billion yuan, an increase of 15% year-on-year. Alibaba attributed it to the rise of single average value. As a comparison, its revenue in the last quarter was 4.841 billion yuan, down 8% year on year. The report also said Gmv was growing in April. Alipay’s upgrade to the open platform of digital life is a remarkable bonus to local life services. This is reflected in the two sides of merchants and users: as of June 30, 2020, the number of registered businesses increased by 30% over the same period of the year. In addition, about 45% of the new consumers who sold outside the restaurant in the quarter were from Alipay, and the synergy effect of the economy was obvious. But it is not easy to grow users. In this quarter, Alibaba’s annual number of active users (who have shopping behavior in the past 12 months) in China retail market is 742million, with a net growth of 16 million in the single quarter. Correspondingly, although the annual number of active users in JD is not as large as Alibaba, it is 414.4 billion, but the net growth in single quarter is 30million, nearly twice the former. Meanwhile, Alibaba’s mobile Mau (active users in the month) in China retail market reached 874million in June 2020, with a net growth of 28million in the single quarter. It is important to sink the market. Alibaba said it is constantly acquiring new users from low-line cities. Taking Taobao special price version as an example, its mobile Mau was about 40million in june2020. This quarter, Alibaba cloud revenue reached 12.345 billion yuan, up 59% year-on-year, and has exceeded 10 billion yuan in three consecutive quarters, and maintained a high-speed growth of over 50%, and continues to be a top priority. Meanwhile, the adjusted EBITA loss was 300million, narrowed year on year, and the adjusted EBITA loss rate was 3%. Cai Chongxin, executive vice chairman of Alibaba group board of directors, said at the analyst meeting that the cloud computing market in China is in the initial stage of development, but believes it will certainly develop rapidly and has a very broad prospect. The entertainment part is mainly labeled Youku. The adjusted EBITA loss narrowed to 1.12 billion yuan in the quarter, and the adjusted EBITA loss rate fell 17 percentage points to 19%. The revenue and membership are in a positive growth, the former increased by 9%. Although it is a single digit, it is better than that of iqiyi, and the latter only has a 60% year-on-year growth rate – after all, Youku has not published the number of members for a long time. Innovation and other business include nail, goldmap, tmall wizard. The revenue in this quarter was RMB 1.094 billion, a year-on-year decrease of 6%, and the adjusted EBITA loss exceeded 2.7 billion, with the loss rate expanding to 247%. Alibaba said this was mainly due to the strong investment in nail business development, technology and innovation. When the throttling is carried out, the proportion of Alibaba’s total cost and expenses in revenue decreased slightly in the quarter. This may be related to the coordination and diversion of various business segments in Alibaba’s economy. Only one expenditure is needed to realize the mining of higher value for a single user through cross selling strategy. Under the combination of boxing, the operating efficiency will be greatly improved naturally. Alibaba still has a strong anti risk capability. In terms of cash, cash equivalents and cash flow, Alibaba’s book cash and cash equivalents at the beginning of the quarter was 358.95 billion yuan; the ending balance was 38.58 billion yuan, and the cash reserve was sufficient. In addition, net cash inflow from operating activities was RMB 50.1 billion and free cash flow was RMB 36.57 billion in the quarter, thus maintaining healthy growth. In 2020, the retail industry in the same city is very lively. JD retail established a large business and super Omni channel business group, while the comments of the United States Group extended the touch to the physical e-commerce, and tmall supermarket business group was upgraded to the same city retail business group. According to late latepost, insiders from Alibaba said that the retail business group in the same city has risen to one of the top 1 projects focused on by Alibaba CEO Zhang Yong. Last month, you announced that you upgraded from the catering take out platform to a life service platform “to solve all the immediate needs of users”. It is more closely combined with the super new retail business of Yintai and other businesses. Now, it can be delivered within 1 hour at the fastest distance of 5km from the mall. In this quarter, box horse fresh life moves frequently, incubating a variety of innovative business forms. The performance report shows that box horse fresh Gmv line family box horse fresh store in this quarter. Compared with Taobao and tmall, which are familiar to more users, these are heavier and updated, but also have more growth potential. Alibaba is still operating efficiently, but it is never easy to say that satisfaction will never be easy. It will not stop without stopping.