Under the epidemic situation, the rising demand for “at home” can not make up for the downward demand of “going out” with high profit and large proportion, thus causing the performance of the entire e-commerce industry to be affected. < / P > < p > on August 20, Alibaba released the performance report of Q2 (the first quarter of fiscal year 2021) in 2020: the operating revenue reached 153.75 billion yuan, with a year-on-year increase of 34%; and the net profit attributable to the parent company was RMB 153.75 billion It achieved 47.53 billion yuan, a year-on-year increase of 121.6%; the annual active users in China’s retail market increased by 16 million to 742 million yuan in a single quarter. < / P > < p > in the off-season of e-commerce in Q1 of 2020 (the fourth quarter of fiscal year 2020), under the influence of superimposed epidemic situation, the growth of Ali’s core e-commerce revenue was limited, resulting in the growth of overall revenue and profit both slowed down. However, in this quarter, Ali’s core e-commerce business picked up, driving the overall revenue of Ali to rise. < p > < p > the core e-commerce business is Ali’s absolute revenue engine, which drives the growth of Alibaba’s revenue. The core e-commerce benefits from the periodic dividend of “double 11” and “double 12”, and the fourth quarter is generally higher than that of other quarters of the year, while the first quarter and the second quarter belong to the “off-season”. < p > < p > from the data of Q2 in 2020, Alibaba’s revenue growth rate has rebounded compared with the previous quarter, but it is still lower than the previous data, showing a slight decline. First, under the epidemic situation, the supply chain and logistics constraints have brought negative impact on the core e-commerce business, thus slowing down the overall performance growth of Ali; second, the slowdown in growth is also the inevitable result of the gradual increase in scale. < / P > < p > at present, Alibaba’s revenue is composed of core e-commerce, cloud computing, digital media and entertainment, innovation activities and other businesses. From the perspective of revenue contribution ratio, the proportion of core e-commerce business has been maintained at more than 80%. It can be seen that core e-commerce is the absolute revenue engine of Ali. < p > < p > in this quarter, Alibaba’s core e-commerce business achieved 133.318 billion yuan, a year-on-year increase of 33.93%, basically in line with the overall revenue growth of Ali. The core e-commerce business segment includes China retail business, China B2B business, international retail business, international wholesale business, rookie network and local life services. From the data of 2020q2, China’s retail business accounted for 76% of the core e-commerce revenue, realizing 101.321 billion yuan, a year-on-year increase of 34%. From the nature of revenue, it can be divided into advertising revenue, commission income and other income. Other income mainly includes self operated businesses such as HEMA, tmall supermarket, import direct marketing and Yintai commerce. It can be seen from the historical data that the growth rate of advertising revenue and commission income is gradually slowing down, while other income is emerging suddenly. Its contribution to total revenue has increased from 9% in Q2 in 2018 to 20% at present, which is far more than the contribution ratio of commission income. This means that Alibaba’s performance growth is largely driven by other revenue besides advertising revenue and commission income. < p > < p > when JD is gradually becoming a platform, Ali is also accelerating its self operation. In fact, in the mature period of e-commerce mode, the two modes will begin to merge. Platform mode and self operated mode learn from each other, pure platform mode will borrow self operated mode to improve user experience and enhance user stickiness; pure self support mode will also open platform mode to realize profit breakthrough. < / P > < p > advertising and commission revenue accounts for about 50% of Ali’s total revenue, which is still the core of Ali’s revenue and profit. The key to the growth of advertising and commission revenue is user growth. Therefore, the growth of Alibaba’s advertising and commission income slows down, which means that its user growth has encountered bottlenecks. In other words, the recovery of Alibaba’s performance mainly depends on the growth of users. < p > < p > from the perspective of user size, Alibaba still ranks first in the e-commerce industry; from the perspective of month on month growth, the growth rate of Alibaba’s active users has slowed down, and user acquisition has fallen into a bottleneck period. < p > < p > according to the financial report data, in 2020q2, Alibaba’s active users (AU) reached 742 million, and the average monthly active users increased by 16 million, a slight increase of 2.2% month on month. Alibaba’s quarterly incremental users have been stable, but compared with pinduoduo and Jingdong, the disadvantages of Alibaba in obtaining traffic capacity are gradually highlighted. < / P > < p > pinduoduo achieved 42.8 million single quarter incremental users in 2020q1 by virtue of a large number of “subsidies”. With the sinking of “Jingxi”, Jingdong gradually became apparent, keeping its single quarter incremental users at 20-30 million recently, while Alibaba’s single quarter incremental users were less than 20 million, and its user acquisition began to lag behind Jingdong and pinduoduo. < / P > < p > under the background that the number of users in the existing market of e-commerce platform is gradually saturated, and it is difficult to obtain customers, sinking the market has become the key channel for Alibaba to obtain customers. < p > < p > because Alibaba’s performance is closely related to the growth of commission and advertising revenue. Therefore, whether Ali can resume the high growth momentum of business income largely depends on the effect of sinking the market. Therefore, Ali also needs to strengthen its efforts in the sinking market to obtain greater user growth, so as to recover the growth of performance faster. < p > < p > from the perspective of data, in Q2 2020, Alibaba achieved a net profit of 47.53 billion yuan to the parent company, with a year-on-year growth rate of 121.6%, far higher than the revenue growth rate of 33.78%. < / P > < p > the reasons are as follows: first, the increase of non recurring profit and loss, the interest income and net investment income of the quarter were 22.137 billion yuan, increased by 21.95 billion yuan year-on-year, mainly due to the net income generated by the rising trading price of equity securities of listed companies invested in the current period; second, thanks to good cost control ability, the operating expense rate of the current period was 20.53%, down 3.4% year-on-year The effective cost control has released a large profit space for Ali. < p > < p > if we exclude the impact of non recurring profit and loss, we can observe Alibaba’s profit margin. Q2 will reach 22.58% in 2020, up 1.37% year-on-year. It can be seen that Ali’s profit is full of color. < / P > < p > excellent profitability supports Alibaba’s Internet business expansion and long-term ecological construction. The core e-commerce business is Ali’s basic business and the only profitable business sector, providing sufficient hematopoietic capacity for Ali. Cloud computing, digital media and entertainment, and innovation business sectors were all in the red. < / P > < p > although the non core e-commerce business continues to be in a loss state, the proportion of the loss amount in the core e-commerce EBIT is reduced, from 17.2% in Q1 in 2018 to 8.5% at present, which means that Ali needs less and less core business profits to support the development of new business, which is also sustainable. < p > < p > Alibaba takes one tenth of the money made by e-commerce to support such “unprofitable” businesses as cloud computing, online video, Gaode map, Ali movies, UCWEB and so on, which are essential for ecological construction.