Management Discussion and Analysis
Operating Results Our Operating Segments
The following discussion and analysis of our financial
condition and results of operations should be
read in conjunction with our audited consolidated
financial statements and the related notes included
in this annual report and in particular “Business
Overview.” This discussion contains forward-looking
statements that involve risks and uncertainties. Our
actual results and the timing of selected events could
differ materially from those anticipated in these
forward-looking statements as a result of various
factors, including those set forth under “Risk Factors”
and elsewhere in this annual report. We have prepared
our consolidated financial statements in accordance
with U.S. GAAP. Our fiscal year ends on March 31 and
references to fiscal years 2020, 2021 and 2022 are to
the fiscal years ended March 31, 2020, 2021 and 2022,
respectively.
Overview
Our total revenue increased by 41% from RMB509,711
million in fiscal year 2020 to RMB717,289 million in
fiscal year 2021, and further increased by 19% to
RMB853,062 million (US$134,567 million) in fiscal
year 2022. Our net income increased by 2% from
RMB140,350 million in fiscal year 2020 to RMB143,284
million in fiscal year 2021, and decreased by 67% to
RMB47,079 million (US$7,427 million) in fiscal year
2022.
Our non-GAAP net income, which excludes the effect
of share-based compensation expense, amortization
and impairment of intangible assets, impairment of
investments and goodwill, gain or loss on deemed
disposals/disposals/revaluation of investments,
and certain other items as adjusted for tax effects,
increased by 30% from RMB132,479 million in fiscal
year 2020 to RMB171,985 million in fiscal year
2021. Non-GAAP net income decreased by 21% to
RMB136,388 million (US$21,515 million) in fiscal year
2022. For further information on non-GAAP financial
measures we use in evaluating our operating results
and for financial and operational decision-making
purposes, see “—Non-GAAP Measures.”
115 Alibaba Group Holding Limited
We organize and report our business in seven
operating segments:
• China commerce;
• International commerce;
• Local consumer services;
• Cainiao;
• Cloud;
• Digital media and entertainment; and
• Innovation initiatives and others.
This presentation reflects how we manage our
business to maximize efficiency in allocating resources.
This presentation also provides further transparency
to our various businesses that are executing different
phases of growth and operating leverage trajectories.
We present segment information after elimination
of inter-company transactions. In general, revenue,
cost of revenue and operating expenses are directly
attributable, or are allocated, to each segment. We
allocate costs and expenses that are not directly
attributable to individual segments, such as those
that support infrastructure across different operating
segments, to different operating segments mainly on
the basis of usage, revenue or headcount, depending
on the nature of the relevant costs and expenses.
In discussing the operating results of these seven
segments, we present each segment’s revenue,
income from operations and adjusted earnings before
interest, taxes and amortization, or adjusted EBITA.
Our reported segments are described below:
• China commerce . China commerce segment
mainly includes our China commerce retail
businesses such as Taobao, Tmall, Taobao Deals,
Taocaicai, Freshippo, Tmall Supermarket, Sun
Art, Tmall Global and Alibaba Health, as well as
wholesale business including 1688.com.
• International commerce . International
commerce segment mainly includes our
international commerce retail and wholesale
businesses such as Lazada, AliExpress, Trendyol,
Daraz and Alibaba.com.