Alibaba 9988.HK June Quarter 2023 Results

JC Project Freedom Alibaba
JC Project Freedom Alibaba

Alibaba has delivered a solid quarter and they have started reorganization of their businesses. Alibaba has repurchased USD 3.1 billion worth of ADR shares this quarter supported by strong free cash flow.

Revenue was RMB 234,156 million which sees an increase of 14% year-over-year. Income from operations was RMB 42,490 million which was an increase of 70% year-over-year. Adjusted EBITA increased 32% year-over-year to RMB 45,371 million. Net income attributable to ordinary shareholders was RMB34,332 million and net income was RMB 33,000 million. Net income increased by 63% compared to RMB 20,298 million in the same quarter 2022. Net cash provided by operating activities was RMB 45,306 million which is an increase of 34% compared to RMB 33,869 million in the same quarter of 2022. Free cash flow was RMB 39,089 million which is an increase of 76% compared to RMB 22,173 million in the same quarter 2022.

The six major business groups are:

  • Taobao and Tmall Group, which includes Taobao, Tmall, Xianyu,, and other businesses;
  • Alibaba International Digital Commerce Group, which includes Lazada, AliExpress, Trendyol,, and other businesses;
  • Local Services Group, which mainly includes the “To-Home” business of and the “To-Destination” business of Amap;
  • Cainiao Smart Logistics Network Limited;
  • Cloud Intelligence Group, which includes Alibaba Cloud, DingTalk, and other businesses; and
  • Digital Media and Entertainment Group, which includes Youku, Damai, and Alibaba Pictures.

There are other businesses including Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, and other businesses.

Taobao and Tmall Group

This business segment’s strategy is focused on putting users first, by building a prosperous ecosystem driven by innovation. The Taobao app is focused on building mindshare as the one-stop destination for daily life and consumption needs. The app improves customer engagement by increasing media content, enhancing price competitiveness through effective marketing, and catering to high-frequency everyday necessities purchases. Taobao average daily active users grew by 6.5% year over year. 88VIP members grew double digits during the 6.18 Shopping Festival. Xianyu’s DAU continues to grow 18% year over year.

Alibaba International Digital Commerce Group

The Alibaba International Digital Commerce Group’s growth was around 25% year-over-year, driven by solid performance from all major retail platforms. Lazada recorded double-digit order growth. Aliexpress’ user presentation rate and purchase frequency are improved through enhanced consumer experience. I am uncertain whether Trendyol will continue to improve its revenue and this quarter has achieved positive operating results.

Local Services Group

Revenue from Local Services Group grew 30% year-over-year to RMB 14,450 million, driven by strong revenue growth in both and Ampa businesses. Losses continue to narrow driven by improving overall business efficiency.

To-Home experienced GMV growth year-over-year, due to strong order growth that benefited from improving consumer demand, increasing the number of active merchants, and improving delivery capacity. increased its supply of consumer electronics by onboarding authorized Apple franchise stores and Suning offline stores.’s losses continued to narrow year-over-year.


Order growth of Amap increased rapidly year-over-year. During the Labour Day holiday, Amap achieved over 200 million peak daily active users, which is the highest number as the Chinese economy experienced a strong recovery in travel demand.


The Cloud Intelligence Group consists revenue from customers was RMB25,123 million which sees a growth of 4% year-over-year. The revenue growth was driven by storage, networks, and AI computing-related products, offset by the normalization of CDN demand compared to the same period. The growth is disappointing, we were using a 10% growth.

Overall Alibaba businesses have achieved good growth in the 1st half of 2023. However, not many of the business strategies are mentioned. We will continue to monitor for 2nd half of 2023 to understand better in terms of the restructuring.

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