2q21 financial report teleconference recording community group buying market is still in the white hot stage From Alibaba

RecordTrend.com is a website that focuses on future technologies, markets and user trends. We are responsible for collecting the latest research data, authority data, industry research and analysis reports. We are committed to becoming a data and report sharing platform for professionals and decision makers. We look forward to working with you to record the development trends of today’s economy, technology, industrial chain and business model.Welcome to follow, comment and bookmark us, and hope to share the future with you, and look forward to your success with our help.

The following is the 2q21 financial report teleconference recording community group buying market is still in the white hot stage From Alibaba recommended by recordtrend.com. And this article belongs to the classification: cloud computing, Enterprise financial report, Electronic Commerce, Online shopping.

On November 5, 2020, Alibaba Group（ NYSE:BABA ）Before trading on Thursday, the company released its second quarter results for the fiscal year 2021 ending September 30, 2020. According to the financial report, Alibaba Group’s second quarter revenue was 155.059 billion yuan (about 22.838 billion U.S. dollars), an increase of 30% year-on-year.

The net profit attributable to common shareholders was 28.769 billion yuan (about 4.237 billion U.S. dollars), down 60% year-on-year. The main reason is that in September last year, 33% of ant group’s shares were recognized as a one-time major income.

The net profit attributable to common shareholders was 47.088 billion yuan (about 6.935 billion US dollars), up 44% year on year.

Alibaba’s active mobile users in the second quarter were 881 million, with a market estimate of 899 million.

As of the second quarter of this fiscal year, the revenue of cloud computing has increased by 60% year-on-year, reaching a new high in 2020, reaching RMB 14.899 billion, and the income of rookies has increased by 73% year-on-year.

According to Alibaba’s financial report, as of the end of September this year, the Gmv of Taobao live broadcast for 12 months exceeded 350 billion yuan; tmall Global’s Gmv (excluding unpaid orders) increased by 37% year-on-year in this quarter.

Alibaba’s U.S. stock market fell to 3% before trading, after rising more than 4%.

Second quarter performance highlights

– revenue was 155.059 billion yuan (US $22838 billion), up 30% year on year. Among them, the revenue from core e-commerce increased by 29% to 130.922 billion yuan (about 19.283 billion US dollars); the revenue from cloud computing business increased by 60% to 14.899 billion yuan (about 2.194 billion US dollars); the revenue from digital media and entertainment business increased by 8% to 8.066 billion yuan (about 1.188 billion US dollars); and it came from innovation projects And other businesses grew 10% year-on-year to 1.172 billion yuan (US $173 million).

– the annual number of active consumers in China’s retail market reached 757 million, an increase of 15 million from 742 million as of June 30, 2020.

– in September 2020, the number of mobile active monthly users in China’s retail market reached 881 million, an increase of 7 million over June 2020.

– operating profit was RMB 13.634 billion (about US $2.008 billion), a year-on-year decrease of 33%, mainly due to an increase of RMB 15.753 billion in share based compensation related to equity awards granted to employees by ant group. Excluding the above effects, operating profit was 29.690 billion yuan (US $4.373 billion), up 44% from 20.667 billion yuan in the same period last year.

– adjusted EBITDA was RMB 47.525 billion (US $7.00 billion), up 28% year-on-year.

– the net profit attributable to the common shareholders of Alibaba group was RMB 28.769 billion (about US $4.237 billion), down 60% year on year; the net profit was RMB 26.524 billion (about US $3.907 billion), down 63% year on year. Excluding one-time income and other items, the net profit not measured in accordance with us gaap was RMB 47.088 billion (about US $6.935 billion), up 44% year-on-year.

– the diluted profit per ADR was RMB 10.48 (about US $1.54); the diluted profit per ADR not measured in accordance with us gaap was RMB 17.97 (about US $2.65), up 37% year on year.

– the net cash provided by operating activities was RMB 55.296 billion (approximately US $7997 million); the free cash flow not measured in accordance with us gaap was RMB 40.540 billion (approximately US $5971 million).

Executive review

“Alibaba performed strongly in the second quarter,” said Zhang Yong, chairman and chief executive of Alibaba group. We continue to help businesses recover and find new growth opportunities through the post pandemic digital environment. The steady performance of our core business and the strong growth of Alibaba cloud are the direct result of our efforts to create value for our customers. We remain focused on three long-term growth engines – domestic consumption, cloud computing and data intelligence, and globalization – to effectively capture the opportunities of changing consumer demand and accelerating business digitization in the digital economy. “

Wu Wei, chief financial officer of Alibaba group, said: “our performance is growing strongly once again, with revenue up 30% year-on-year and adjusted EBIT growth of 28% year-on-year. Novel coronavirus pneumonia era in China, our core business of China’s core business continued to grow steadily through higher purchase frequency and consumer spending, while cloud computing revenue grew by 60% over the same period last year, which is accelerated by digitalization of all industries and enterprises of all sizes in China. We are pleased to see strategic investment begin to improve operational efficiency and scale effect. “

Business and strategy update

Core e-commerce

China’s retail market – comprehensive product supply and attractive user experience drive consumer growth and higher purchase frequency

In September 2020, as China’s largest consumer platform, our retail market in China has 881 million mobile monthly active users. In the 12 months to September 30, 2020, the annual number of active users in China’s retail market was 757 million, a net increase of 15 million compared with the end of the previous fiscal quarter. Alibaba group is continuing to increase consumer awareness and wallet share among users, which is reflected in higher purchase frequency and average annual expenditure growth in all line cities.

Alibaba Group continues to increase penetration in less developed regions, reflecting its success in expanding product supply to meet diversified demand. One of the main driving forces for Alibaba group to acquire new users and consumers in less developed regions is Taobao special edition, which is oriented to the market of value-oriented consumers. In the second quarter, Alibaba group focused on developing differentiated product supply for Taobao special edition, which was provided by export-oriented enterprises and merchants from 1688.com. Since the launch of the new version in March 2020, Taobao’s special edition has achieved strong growth. In September 2020, it has set a record of more than 70 million active users. Compared with consumers who only use Taobao app, consumers who use Taobao app and Taobao special edition app to purchase at the same time grow faster in terms of purchase frequency and average expenditure.

Product supply – a wide range of differentiated products to meet different needs and promote the development of total value of commodity transactions

Excluding outstanding orders, total transactions of tmall’s physical commodities increased by 21% in the second quarter from a year earlier. FMCG is still the fastest growing category of tmall, mainly driven by food and beverage, healthcare, beauty and personal care. In addition, the novel coronavirus pneumonia has increased to a higher level than that of the new crown pneumonia epidemic before Tmall. Excluding unpaid orders, the total volume of transactions of Taobao’s physical commodities increased by more than ten percentage points in the second quarter.

Since China’s novel coronavirus pneumonia peak in March 2020, the total volume of Taobao’s commodity trading has been increasing. This accelerated growth is mainly driven by the higher frequency of purchases brought about by the success of value for money products.

Tmall global is the first platform for international brands and businesses to enter the online Chinese market and establish brand awareness. As of September 30, 2020, the number of brands and merchants on the platform of tmall global has increased by a double-digit percentage year-on-year. With the increasing demand for imported and new personalized or limited edition products, tmall global has successfully met the new consumer demand with its comprehensive high-quality products. Excluding outstanding orders, total merchandise transactions of tmall global in the second quarter increased by 37% year-on-year.

New retail – changing physical retail by redesigning business models and providing digital solutions

Change the old: in October 2020, Alibaba Group invested about US $3.6 billion to acquire the controlling right of Gaoxin retail. Alibaba Group continues to innovate new retail formats and models by digitizing offline retail partners and enabling them to provide consumers with an integrated Omni channel experience. Through deeper cooperation with Gaoxin retail, Alibaba Group will be able to digitize offline traffic, synchronize online and offline channel inventory, expand supply chain network and increase online purchase.

Innovation: HEMA achieved healthy same store sales growth in the second quarter as it continued to optimize its store operations and improve customer experience. As of September 30, 2020, Alibaba Group has owned 222 HEMA Xiansheng stores in China, mainly located in the first and second tier cities. With its comprehensive private brands, imported products and new products, HEMA’s differentiated products are attracting new customers and increasing the expenditure of existing customers. In the 12 months to September 30, 2020, HEMA fresh has more than 26 million active consumers annually.

Local consumer service – rapid and high quality growth of businesses and consumers

China’s novel coronavirus pneumonia is a strong pandemic, and demand for digitalization is still strong in the catering and service sectors. Hungry Mo seized this market opportunity and attracted high-quality businesses by providing digital technology solutions and other value-added services.

In July this year, hungry launched a major strategy and platform upgrade. It has expanded its on-demand delivery services to cover a wide range of categories, such as fresh produce, groceries and flowers, and upgraded its membership program, including the introduction of an incentive system through which members can accumulate points for convertible coupons or products and services. Due to the addition of high-quality merchants and the addition of attractive content. Are you hungry? In the second quarter, the average number of paid members increased 45% year-on-year.

Alibaba group promotes China’s international logistics industry with digital economy

Rookie network continues to expand its domestic services and global intelligent logistics infrastructure by deepening its integration with logistics partners and providing more products and services. In China, rookie has expanded the coverage of rookie stations (community and campus stations and residential self-service pick-up stations), expanded the service scope of rookie wrapping, and improved the customer experience in application. Internationally, rookie has expanded its export business through cooperation with more global partners, and has established local logistics networks in 15 countries and regions.

International Business – Southeast Asia continues to grow strongly

Lazada, Alibaba Group’s Southeast Asia e-commerce platform, continues to achieve strong growth in terms of buyers and sellers, benefiting from the acceleration of digitization in Southeast Asian industries. Although novel coronavirus pneumonia has raised a new wave in many markets, the second quarter’s orders increased by 100% over the same period.

cloud computing

Alibaba cloud supports the digital transformation of enterprises by providing comprehensive technical solutions and services for a wide range of industries in the cloud. In the second quarter, Alibaba cloud’s revenue increased 60% year-on-year to 14.899 billion yuan (about US $2.194 billion), mainly driven by the growth of customer income in the Internet, finance and retail industries. Customers of all sizes and industries continue to enjoy Alibaba cloud’s products and services. As of September 30, 2020, about 60% of A-share listed companies are customers of Alibaba cloud. In the second quarter, their average spending rose 45% year-on-year.

Digital media and entertainment

Youku has been focusing on providing excellent user experience and various types of blockbuster content. In the second quarter, Youku’s average daily active users increased by 45% year-on-year.

During the golden week of China’s national day, Ali pictures invested and released two of the top three box office films, and the films involved in production and distribution accounted for more than 50% of China’s box office sales in the first half of this fiscal year.

Second quarter financial analysis

revenue

Alibaba Group’s second quarter revenue was 155.059 billion yuan (about 22.838 billion US dollars), 30% higher than the same period last year of 119.017 billion yuan. This growth was mainly driven by strong revenue growth in China’s e-commerce retail, cloud computing and rookie logistics services.

Core e-commerce business

Revenue from China’s e-commerce retail business in the second quarter was 95.470 billion yuan (US $14.061 billion), up 26% from 75.786 billion yuan in the same period of the previous fiscal year. In the same period of last year, the revenue of other businesses increased by RMB 2.469 billion (about RMB 1.269 billion), which was RMB 2.469 billion (about USD 1.0238 billion) compared with the same period of last year.

The annual number of active consumers in China’s retail market reached 757 million, an increase of 15 million over 742 million as of June 30, 2020.

In September 2020, the number of mobile active monthly users in China’s retail market will reach 881 million, an increase of 7 million over June 2020.

Revenue from China’s e-commerce wholesale business in the second quarter was 3.637 billion yuan (US $536 million), up 11% from 3.283 billion yuan in the same period last year.

In the second quarter, revenue from international e-commerce retail business was 7.789 billion yuan (US $1.147 billion), up 30% from 6.007 billion yuan in the same period last year.

In the second quarter, revenue from international e-commerce wholesale business was 3.510 billion yuan (about 517 million US dollars), up 44% from 2.434 billion yuan in the same period last year.

Revenue from the rookie business in the second quarter was 8.226 billion yuan (US $1.212 billion), up 73% from 4.759 billion yuan in the same period last year.

Revenue from local consumer services in the second quarter was 8.839 billion yuan (US $1.302 billion), up 29% from 6.835 billion yuan in the same period last year.

Revenue from cloud computing in the second quarter was 14.899 billion yuan (US $2.194 billion), up 60% from 9.291 billion yuan in the same period last year.

Revenue from the digital media and entertainment business in the second quarter was 8.066 billion yuan (US $1.188 billion), up 8% from 7.442 billion yuan in the same period last year.

Revenue from innovation programs and other businesses in the second quarter was 1.172 billion yuan (US $173 million), up 10% from 1.064 billion yuan in the same period last year.

Costs and expenses

The cost of revenue in the second quarter was 89.960 billion yuan (about US $13250 billion), accounting for 58% of the revenue; in the same period last year, the cost of revenue was 65.546 billion yuan, accounting for 55% of the revenue. Excluding the impact of equity incentive expenditure, revenue cost accounted for 53% of revenue, compared with 54% in the same period last year.

In the second quarter, product R & D expenditure was 19.245 billion yuan (about 2.834 billion US dollars), accounting for 12% of revenue; in the same period last year, product R & D expenditure was 10.938 billion yuan, accounting for 9% of revenue. Excluding the impact of equity incentive expenditure, product R & D expenditure accounted for 6% of revenue, compared with 6% in the same period last year.

Sales and marketing spending in the second quarter was 17.371 billion yuan (about US $2.559 billion), accounting for 11% of revenue; in the same period last year, sales and marketing expenditure was 11.996 billion yuan, accounting for 10% of revenue. Excluding the impact of equity incentive spending, sales and marketing expenses accounted for 9% of revenue, compared with 9% in the same period last year.

General and administrative expenses in the second quarter were 11.961 billion yuan (about 1.762 billion US dollars), accounting for 8% of revenue; in the same period of the previous fiscal year, general and administrative expenses were 6.591 billion yuan, accounting for 6% of revenue. Excluding the impact of equity incentives, general and administrative expenses accounted for 4% of revenue, compared with 5% in the same period last year.

Equity incentive spending in the second quarter was 24.694 billion yuan (US $3.637 billion), up 203% from 8.145 billion yuan in the same period last year. Equity incentive expenses accounted for 16% of revenue, compared with 7% in the same period last year. Among the equity incentive expenses of Alibaba group, the equity incentive expenditure granted by Alibaba group was RMB 7.703 billion (about US $1.134 billion), an increase of 12% year-on-year; the equity incentive expenditure granted by ant group was RMB 16.057 billion (about US $2.365 billion), with a year-on-year increase of 5199%.

Amortization of intangible assets in the second quarter was 2.888 billion yuan (US $425 million), down 4% from 3.006 billion yuan in the same period last year.

Operating profit and operating profit margin

Operating profit was 13.634 billion yuan (about 2.008 billion U.S. dollars), a year-on-year decrease of 33%, mainly due to the increase of 15.753 billion yuan in share based compensation related to the equity award granted to employees by ant group. Excluding the above effects, operating profit was 29.690 billion yuan (US $4.373 billion), up 44% from 20.667 billion yuan in the same period last year.

Adjusted EBITDA was RMB 47.525 billion (about US $7.00 billion), up 28% year-on-year.

profit

The net profit attributable to common shareholders of Alibaba group was 28.769 billion yuan (about 4.237 billion US dollars), down 60% year on year; the net profit was 26.524 billion yuan (about 3.907 billion US dollars), down 63% year on year. Excluding one-time income and other items, the net profit not measured in accordance with us gaap was RMB 47.088 billion (about US $6.935 billion), up 44% year-on-year.

The diluted profit per ADR was RMB 10.48 (about US $1.54); the diluted profit per ADR not measured in accordance with us gaap was RMB 17.97 (about US $2.65), up 37% year on year.

Balance sheet

As of September 30, 2020, the total amount of cash, cash equivalents and short-term investments held by Alibaba group was RMB 405.912 billion (about US $59.784 billion), higher than RMB 381.578 billion as of June 30, 2020.

Operating cash flow and free cash flow

The net cash provided by Alibaba group from operating activities in the second quarter was RMB 55.296 billion (about US $7.997 billion); the free cash flow not measured in accordance with us gaap was RMB 40.540 billion (about US $5971 billion).

Number of employees

As of September 30, 2020, the total number of employees of Alibaba group is 122399, and that of June 30, 2020 is 120535.

Alibaba: 2q21 revenue 155.06 billion yuan, up 30% year on year. Alibaba: 4q20 revenue 114.31 billion yuan, year-on-year growth 22%. Alibaba: 1q21 revenue 153.75 billion yuan, a year-on-year increase of 34%. Alibaba: 4q20 financial report teleconference There is still potential for user growth in the low-end market. Alibaba: the latest financial data show that Alibaba is still growing strongly. Amazon: 2q20 net profit is $5.2 billion, a year-on-year increase of 100%. Pinduoduo: 2q20 revenue is 12.193 billion yuan, a year-on-year increase of 67%. Amazon: 1q20 net sales of $75.5 billion Year on year growth of 26% Amazon: the rapid growth of business in North America and AWS helped Amazon’s fourth quarter revenue increase by 21% year on year. Amazon: 2q20 financial report teleconference recording this year’s first strategy is to ensure the safety of employees and customers AWS’s product portfolio is in the leading position in the market Amazon: executives interpret 3q19 financial report, consumers are satisfied with the delivery of the same day Amazon: 1q20 financial report teleconference recording cost of US $300 million in the second quarter, 95000 new recruits in April Alibaba: 1q21 financial report teleconference recording stops UC web and other innovative business services in India

If you want to get the full report, you can contact us by leaving us the comment. If you think the information here might be helpful to others, please actively share it. If you want others to see your attitude towards this report, please actively comment and discuss it. Please stay tuned to us, we will keep updating as much as possible to record future development trends.