On November 15, Alibaba Group released its Q2 fiscal year 2025 financial report, with quarterly revenue of 236.503 billion yuan, a year-on-year increase of 5%, in line with market expectations. Focusing on 'user-first, AI-driven' investments, Alibaba's core business continues to achieve high-quality growth.

From July to September, the number of Taobao orders experienced double-digit year-on-year growth, driving an increase in online GMV, with 88VIP memberships continuing to grow in double digits to 46 million. During this year's November 11 shopping festival-related period, Taobao's GMV achieved strong growth, and the number of buyers reached an all-time high.

Alibaba Group CEO Wu Yongming stated, 'This quarter, the Taobao business continued to invest in user experience, enriching product supply to better serve consumers. We established long-term collaborations with technology peers to expand payment and logistics services on the Taobao and Tmall platforms, which is expected to bring significant incremental effects to the overall platform.'

The financial report shows that Alibaba Cloud's revenue has accelerated growth compared to previous quarters, with public cloud product revenue achieving double-digit growth and AI-related product revenue achieving triple-digit growth. Wu Yongming stated, 'We are more confident about the prospects of our core business than in the past, and will continue to invest to support long-term growth.'

(1) The number of buyers during the November 11 shopping festival-related period hit an all-time high, and the number of 88VIP memberships reached 46 million.

This quarter, the Taobao Group continued to invest in enhancing user experience, resulting in higher purchase frequency, with order volume experiencing double-digit year-on-year growth, driving an increase in online GMV. The number of high purchasing power 88VIP memberships continued to grow in double digits year-on-year, reaching a scale of 46 million.

Recently, Taotian has adopted a more open strategy towards payment and logistics service providers, allowing more consumers to enjoy a more convenient shopping experience while enhancing merchants' operation efficiency. The financial report shows a significant growth in new trading users for Taotian.

On the eve of the November 11 shopping festival-related, Taotian optimized the business environment through a series of measures such as loosening the 'refund only' policy, launching the return treasure, and introducing experience scores, leading the industry to break free from low-quality low stock price competition and helping merchants achieve more sustainable growth.

This year, the e-commerce industry returns to a new value-oriented starting point for the November 11 shopping festival-related, where the improvement of user experience and the enhancement of the merchant operating environment create a mutually reinforcing positive cycle: the GMV of Taobao and Tmall during the November 11 shopping festival-related achieved strong growth, with the number of buyers reaching a historical high, and 589 brands recorded a transaction volume exceeding 100 million throughout the cycle, setting new historical records.

The strong performance of active users and online GMV provides a solid foundation for the platform's commercialization level to increase. The financial report shows that Taotian Group's take rate remained stable year-on-year this quarter. The penetration rate of the AI-driven marketing tool 'full-site promotion' steadily increased, assisting merchants in improving marketing efficiency and further rhythmically enhancing commercialization levels.

(2) Alibaba Cloud growth accelerated, AI-related revenue has seen triple-digit growth for five consecutive quarters.

Focusing on integrated development of 'cloud + AI', Alibaba Cloud's commercialization revenue accelerated its growth, with quarterly revenue growing 7% year-on-year, continuing to be driven by double-digit growth in public cloud; AI-related product revenue has achieved triple-digit year-on-year growth for five consecutive quarters; adjusted EBITA increased by 89% year-on-year.

At this year's Cloud Summit, Alibaba Cloud fully upgraded its AI infrastructure, reduced API call rates, released advanced technology dividends, and accelerated the entry of large models into various industries. The next-generation open-source model Tongyi Qianwen 2.5 was released, and its flagship version Qwen2.5-72B performed strongly in multiple benchmark tests, surpassing industry competitors.

Tongyi Qianwen has become one of the most widely adopted open-source models in the world. The financial report indicates that since its open-source debut in 2023 until September 30, 2024, there have been over 0.07 million derivative models based on the Tongyi family developed in the Hugging Face community.

"AI-driven" global strategy has been implemented for a year, with multiple alibaba businesses focusing on AI. Taobao launched the AI product "Business Manager" for all merchants, serving a total of 4 million merchants during this year's november 11 shopping festival-related, helping small and medium-sized merchants generate over 0.1 billion commodities and marketing materials. Recently, alibaba international released a large-scale commercial translation model.

(3) The overseas business has seen strong growth, while other businesses are efficiently reducing losses in an orderly manner.

The overseas business continues to maintain strong growth momentum. In this quarter, alibaba international digital business group revenue increased by 29% year-on-year, with platforms like AliExpress and Trendyol enhancing consumer recognition in specific regions, and operational and investment efficiencies being steadily optimized, with the unit economic benefits of the AliExpress Choice business improving from the previous quarter.

The synergy between AliExpress and Cainiao has further strengthened, significantly shortening the average fulfillment duration of AliExpress. Revenue from cross-border logistics fulfillment solutions has increased, driving Cainiao's quarterly revenue to grow by 8% year-on-year.

The losses of the local life group and the entertainment group have narrowed year-on-year, with business operational efficiency being optimized in a planned and rhythmic manner. Meanwhile, orders for Ele.me and Amap have increased, boosting business scale. During the National Day holiday in October this year, Amap's daily active user peak exceeded 0.3 billion, setting a new historical high.