Alibaba Group Holding Limited: In-Depth Corporate Profile

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report (Reporting Period: Year ended March 31, 2026).

Quick Facts / Company Snapshot

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Data Point	Corporate Metric & Disclosed Value
Full Company Name	Alibaba Group Holding Limited
Stock Exchange Tickers	NYSE: BABA; HKEX: 9988 (HKD Counter) / 89988 (RMB Counter)
Date of Incorporation	June 28, 1999
Jurisdiction of Incorporation	Cayman Islands (Exempted Company with Limited Liability)
Principal Executive Offices	960-1 West Wen Yi Road, Yu Hang District, Hangzhou 311121, PRC
Chairman of the Board	Joe Tsai
Chief Executive Officer	Eddie Wu
Fiscal Year 2026 Consolidated Revenue	RMB 1,023,670 million (US$ 148,401 million)
Income from Operations (FY2026)	RMB 50,150 million (US$ 7,270 million)
Net Income (FY2026)	RMB 102,127 million (US$ 14,805 million)
Non-GAAP Net Income (FY2026)	RMB 60,658 million (US$ 8,794 million)
Adjusted EBITDA (FY2026)	RMB 113,483 million (US$ 16,452 million)
Adjusted EBITA (FY2026)	RMB 76,416 million (US$ 11,078 million)
Total Assets (as of March 31, 2026)	RMB 1,909,570 million (US$ 276,830 million)
Total Liabilities (as of March 31, 2026)	RMB 783,300 million (US$ 113,555 million)
Shareholders’ Equity (as of March 31, 2026)	RMB 1,060,886 million (US$ 153,796 million)
Total Equity (as of March 31, 2026)	RMB 1,118,425 million
Cash, Short-Term & Treasury Investments	RMB 520,824 million (US$ 75,504 million)
Capital Expenditures (FY2026)	RMB 126,063 million (US$ 18,275 million)
Operating Cash Flow (FY2026)	RMB 76,213 million (US$ 11,049 million)

Company Overview

Alibaba Group Holding Limited is a global technology and digital commerce multinational incorporated as an exempted company with limited liability in the Cayman Islands. The company’s corporate identity is anchored by its founding mission: “to make it easy to do business anywhere”. Established in 1999, Alibaba operates with the long-term vision to last 102 years, aiming to span three centuries (from the 20th century to the 22nd century).

The group acts as the foundational technology infrastructure and marketing conduit for merchants, brands, retailers, and enterprise partners across the digital economy. Its operations are driven by two dual core strategic priorities: AI + Cloud and Consumption. Through proprietary software architectures, advanced data analytics platforms, logistics backbones, and enterprise artificial intelligence solutions, the company powers direct consumer-to-consumer, business-to-consumer, and business-to-business commerce.

• Core Operational Mission: To make it easy to do business anywhere by helping merchants and enterprises leverage digital technology, cloud infrastructure, and AI.
• Three-Century Vision: Aspiring to be a good company that lasts 102 years without pursuing raw corporate size or unchecked market power.
• Strategic Dual Anchors: Directing major technological resources and capital expenditures into “AI + Cloud” capabilities and digital “Consumption” ecosystems.

During fiscal year 2026, Alibaba reorganized its business segments to enhance operational synergy and optimize capital allocation. The business structure comprises four primary operating segments: Alibaba China E-commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All others. Together, these divisions foster an interconnected ecosystem of consumers, merchants, logistics partners, enterprise clients, and institutional developers.

• Customers First, Employees Second, Shareholders Third: The corporate hierarchy of priority establishes that sustainable shareholder value is a byproduct of delivering customer solutions and employee development.
• Trust Makes Everything Simple: Fostering an organizational culture of transparency where complexity is stripped down to generate operational simplicity and speed.
• Change Is the Only Constant: Viewing internal and external market transformation with humility, driving continuous reinvention rather than clinging to legacy models.
• Today’s Best Performance Is Tomorrow’s Baseline: Encouraging teams to set stretch targets and raise performance bars under changing macroeconomic conditions.
• If Not Now, When? If Not Me, Who?: An internal call of duty from the company’s first job advertisement that demands absolute ownership among employees.
• Live Seriously, Work Happily: Recognizing work as a professional endeavor while emphasizing personal purpose, integrity, and life balance.

The corporate ecosystem is constructed around network effects. Platforms operate under uniform marketplace rules, enabling ecosystem participants to discover, interact, and transact with minimal friction. The group relies on proprietary technology platforms, including the Apsara distributed computing operating system, PolarDB and AnalyticDB databases, and the Qwen large language model family, to anchor domestic and cross-border digital transactions.

Business Segments

Alibaba Group structures its operations across four primary operating divisions, managed based on business maturity, growth stage, and operating leverage. Segment performance is tracked through segment revenue (presented before inter-segment eliminations) and segment Adjusted EBITA.

The table below presents the segment financial performance for fiscal year 2026, sorted in descending order of segment revenue.

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Segment Name	Reported Revenue (RMB in millions)	Reported Revenue (US$ in millions)	% of Total Consolidated Revenue	Reported Adjusted EBITA (RMB in millions)	Reported Adjusted EBITA (US$ in millions)
Alibaba China E-commerce Group	554,217	80,345	54.14% (Calculated by FirmsWorld)	107,509	15,586
All others	254,367	36,876	24.85% (Calculated by FirmsWorld)	(35,737)	(5,181)
Cloud Intelligence Group	158,132	22,924	15.45% (Calculated by FirmsWorld)	14,265	2,068
Alibaba International Digital Commerce Group	144,170	20,900	14.08% (Calculated by FirmsWorld)	(2,051)	(297)
Unallocated	2,340	339	0.23% (Calculated by FirmsWorld)	(5,150)	(747)
Inter-segment Elimination	(89,556)	(12,983)	-8.75% (Calculated by FirmsWorld)	(2,420)	(351)
Consolidated Total	1,023,670	148,401	100.00%	76,416	11,078

Segment Revenue Breakdown (FY2026 Before Eliminations)
┌────────────────────────────────────────────────────────┬─────────────┐
│ Segment                                                │ Share (%)   │
├────────────────────────────────────────────────────────┼─────────────┤
│ Alibaba China E-commerce Group                         │ 54.14%      │
│ All others                                             │ 24.85%      │
│ Cloud Intelligence Group                               │ 15.45%      │
│ Alibaba International Digital Commerce Group           │ 14.08%      │
│ Unallocated                                            │  0.23%      │
└────────────────────────────────────────────────────────┴─────────────┘
Note: Percentage of consolidated revenue calculated by FirmsWorld against RMB 1,023,670 million.

Alibaba China E-commerce Group

Alibaba China E-commerce Group represents the company’s largest business segment, generating RMB 554,217 million (US$ 80,345 million) in fiscal year 2026, or 54.14% of total consolidated revenue (Calculated by FirmsWorld). The division achieved an Adjusted EBITA of RMB 107,509 million (US$ 15,586 million), representing a 44% year-over-year decline from RMB 193,223 million in fiscal year 2025.

• Segment Scope: Houses retail platforms Taobao, Tmall, Tmall Global, Tmall Supermarket, Xianyu, quick-delivery arm Taobao Instant Commerce, and wholesale trading portal 1688.com.
• Strategic Consolidation: Integrated Taobao, Tmall, Taobao Instant Commerce (formerly Ele.me), and Fliggy into a unified consumer platform to drive full-spectrum retail engagement.
• Margin Impact: The adjusted EBITA contraction resulted from investments in quick commerce, platform user experience enhancements, and technology infrastructure.

The group operates the largest retail commerce business in the world by gross merchandise volume (GMV) for the twelve months ended March 31, 2026, according to Analysys. The unit monetizes primarily via customer management services, charging merchants on cost-per-click (CPC), cost-per-thousand impressions (CPM), time, and cost-per-sale (CPS) commission bases. A software service fee based on the GMV of completed transactions was also implemented in September 2024.

All others

The All others segment generated RMB 254,367 million (US$ 36,876 million) in fiscal year 2026, contributing 24.85% to consolidated revenue (Calculated by FirmsWorld). Adjusted EBITA for the segment reflected an operating loss of RMB 35,737 million (US$ 5,181 million), widening by 276% compared to a loss of RMB 9,499 million in fiscal year 2025.

• Segment Scope: Comprises Cainiao smart logistics, Freshippo fresh retail, Alibaba Health, Hujing Digital Media and Entertainment Group (Youku and Damai), Amap, DingTalk, Qwen Consumer Business Group, and Lingxi Games.
• Portfolio Changes: In fiscal year 2025, the sale of Sun Art was completed and the sale of Intime was substantially completed; the sale of Intime was fully finalized in fiscal year 2026.
• Operational Shift: Cainiao, Amap, and Hujing Digital Media and Entertainment were reclassified from independent reporting lines into “All others” during fiscal year 2026.

Revenue in this segment declined by 25% year-over-year from RMB 338,347 million in fiscal year 2025, primarily due to the divestments of Sun Art and Intime and decreased Cainiao revenue. These decreases were partially offset by revenue growth in Freshippo, Alibaba Health, and Amap. The wider adjusted EBITA loss was driven by increased investments across technology-intensive businesses.

Cloud Intelligence Group

Cloud Intelligence Group generated RMB 158,132 million (US$ 22,924 million) in revenue in fiscal year 2026, representing 15.45% of total consolidated revenue (Calculated by FirmsWorld). Segment Adjusted EBITA expanded 35% year-over-year to RMB 14,265 million (US$ 2,068 million), compared to RMB 10,556 million in fiscal year 2025.

• Infrastructure Leadership: Ranked by Gartner as the world’s fourth-largest and Asia Pacific’s largest Infrastructure-as-a-Service (IaaS) provider by revenue in 2025.
• Domestic Market Share: Recognized by IDC as China’s largest provider of public cloud services (IaaS and PaaS combined) in 2025.
• AI Cloud Dominance: Captured a 35.8% market share in China’s AI cloud market in the first half of 2025, ranking first according to Omdia.

Growth was driven by public cloud adoption, particularly surging demand for artificial intelligence products. In the final quarter of fiscal year 2026, external revenue growth accelerated to 40% year-over-year, with AI-related products accounting for 30% of that revenue. The group provides infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and model-as-a-service (MaaS) across 34 computing regions globally.

Alibaba International Digital Commerce Group (AIDC)

Alibaba International Digital Commerce Group generated RMB 144,170 million (US$ 20,900 million) in fiscal year 2026, accounting for 14.08% of consolidated revenue (Calculated by FirmsWorld). Segment revenue rose 9% year-over-year from RMB 132,300 million in fiscal year 2025.

• Segment Scope: Encompasses cross-border and local retail platforms AliExpress, Trendyol, and Lazada, alongside international wholesale marketplace Alibaba.com.
• Efficiency Gains: Adjusted EBITA loss narrowed significantly by 86% to RMB 2,051 million (US$ 297 million), compared to a loss of RMB 15,137 million in fiscal year 2025.
• Operational Driver: Narrowed losses were achieved through improved unit economics and operating efficiency in AliExpress, alongside supply chain optimizations.

The international retail division accounted for RMB 117,731 million of segment revenue, while international wholesale operations contributed RMB 26,439 million. Growth was driven by cross-border retail operations, business model enhancements, and expanded value-added services for wholesale export merchants.

History and Evolution

Alibaba was founded on June 28, 1999, in Hangzhou, China, by a team of entrepreneurs seeking to harness the commercial potential of the Internet. The foundational thesis was that digital connectivity could level the economic playing field for small and medium-sized enterprises (SMEs). By launching Alibaba.com, an online directory and business-to-business trading engine, the company enabled domestic manufacturers to access buyers in overseas markets.

In its initial development phase, the group developed consumer platforms and domestic digital marketplaces. Taobao was launched as a consumer-to-consumer marketplace, creating an open online shopping bazaar. To meet demand for authenticated, branded products, Tmall was introduced, establishing an online retail environment for major Chinese and international retail brands.

• 1999 Corporate Formation: Alibaba Group Holding Limited incorporated in the Cayman Islands to build digital commerce infrastructure.
• Domestic Marketplace Expansion: Introduction of Taobao, Tmall, and wholesale portal 1688.com to establish consumer and B2B commerce ecosystems.
• Cloud & Technology Pivot: Early creation of proprietary computing infrastructures to manage transaction volumes during shopping festivals, evolving into Alibaba Cloud.

As commerce operations expanded, transaction volume surges led to the development of proprietary computing technologies. The massive scale and computational complexity of domestic transactions, real-time inventory management, and digital payments prompted the development of the Apsara distributed cloud operating system. This internal architecture served as the foundation for the commercialization of Alibaba Cloud, transforming the enterprise from an e-commerce platform into a technology infrastructure provider.

Alibaba executed global initial public offerings and cross-border expansions. The company listed its American Depositary Shares (ADSs) on the New York Stock Exchange under the symbol “BABA”. It later established a primary dual-listing on the Hong Kong Stock Exchange under stock code “9988” for the HKD counter and “89988” for the RMB counter. Cross-border operations expanded through the acquisition and scaling of Southeast Asian e-commerce platform Lazada, Turkish e-commerce platform Trendyol, and the global consumer channel AliExpress.

• Corporate Reorganization: Strategic combination of Taobao, Tmall, Ele.me (rebranded as Taobao Instant Commerce), and Fliggy into Alibaba China E-commerce Group.
• Asset Optimization: Complete divestment of physical department store operator Intime and hypermarket operator Sun Art.
• AI Transformation: Expansion into the AI agent era through the commercialization of the Qwen large language model family, the launch of personal assistant Qwen app, enterprise platform Wukong, and proprietary T-Head AI chips.

Products and Services

Alibaba offers a broad portfolio of digital commerce, cloud computing, enterprise workflow, and logistics services.

The table below outlines the disclosed revenue-generating products, platforms, and operational services for fiscal year 2026, sorted in descending order of reported revenue.

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Product / Service Category	Reporting Segment	Disclosed Revenue (RMB in millions)	Disclosed Revenue (US$ in millions)	% of Consolidated Revenue	Primary Revenue Mechanics
Customer Management Services	Alibaba China E-commerce Group	343,867	49,850	33.59% (Calculated by FirmsWorld)	P4P search bidding (CPC), display impressions (CPM), time-based marketing, and GMV transaction commissions (CPS)
Cloud Computing & AI Services	Cloud Intelligence Group	158,132	22,924	15.45% (Calculated by FirmsWorld)	Public/private cloud IaaS, PaaS, MaaS subscriptions, elastic compute, database management, and AI token consumption
International Commerce Retail	AIDC Group	117,731	17,067	11.50% (Calculated by FirmsWorld)	Cross-border retail, marketplace take rates, direct consumer sales, and cross-border logistics fulfillment
Direct Sales, Logistics & Others	Alibaba China E-commerce Group	105,518	15,297	10.31% (Calculated by FirmsWorld)	Direct merchandise retail sales (Tmall Supermarket, Tmall Global) and supply chain logistics services
Quick Commerce Services	Alibaba China E-commerce Group	78,520	11,383	7.67% (Calculated by FirmsWorld)	Local delivery platform commission, on-demand merchant distribution fees, and consumer delivery fees
International Commerce Wholesale	AIDC Group	26,439	3,833	2.58% (Calculated by FirmsWorld)	Gold Supplier annual memberships, trade assurance fees, P4P marketing, and value-added supply chain software
China Commerce Wholesale	Alibaba China E-commerce Group	26,312	3,815	2.57% (Calculated by FirmsWorld)	China TrustPass annual subscription memberships, data analytics upgrades, and storefront management tools

Customer Management Services (China Retail)

Customer management services generated RMB 343,867 million (US$ 49,850 million) in fiscal year 2026, accounting for 33.59% of total consolidated revenue (Calculated by FirmsWorld). This business line grew 5% year-over-year from RMB 326,769 million, driven by improvements in platform take rates and the introduction of a software service fee based on completed transaction GMV.

• Pay-for-Performance (P4P): Merchants bid for keyword placement in search algorithms, paying on a cost-per-click (CPC) basis.
• In-Feed & Display Marketing: Algorithmically matched banner and display ads priced on cost-per-thousand impressions (CPM) or duration.
• Cost-Per-Sale (CPS): Commissions charged on completed transactions on Tmall, generally ranging from 0.1% to 5.0% depending on product category.
• Quanzhantui Integration: AI-powered marketing engine optimizing cross-channel ad distribution to improve merchant return on ad spend.

Cloud Computing and Enterprise AI Infrastructure

Cloud Computing & AI Services delivered RMB 158,132 million (US$ 22,924 million) in fiscal year 2026, representing 15.45% of consolidated revenue (Calculated by FirmsWorld). Total segment revenue rose 34% year-over-year, supported by enterprise cloud migrations and AI model deployments.

• Infrastructure-as-a-Service (IaaS): Elastic compute, serverless architectures, and distributed storage deployed across 34 global regions.
• Platform-as-a-Service (PaaS): Cloud-native database engines PolarDB and AnalyticDB, and Lindorm multimodal data systems.
• Model-as-a-Service (MaaS): Alibaba Cloud Model Studio (“Bailian”), providing AI model training, fine-tuning, and inference hosting.
• Enterprise Client Base: In fiscal year 2026, Cloud Intelligence Group provided computing services to approximately 67% of China’s A-share listed companies.

International Commerce Retail Services

International commerce retail platforms generated RMB 117,731 million (US$ 17,067 million) in fiscal year 2026, representing 11.50% of consolidated revenue (Calculated by FirmsWorld). The division grew 9% year-over-year, driven by AliExpress and Trendyol, which offset a 3% revenue decline in Lazada.

• AliExpress Choice: A consolidated service model combining curated product selection, subsidized logistics, and localized customer support.
• AliExpressDirect: A fulfillment model utilizing local inventories across more than 30 countries to cut international delivery transit times.
• Brand+ Program: End-to-end go-to-market solutions enabling Chinese consumer brands to expand distribution abroad.

Direct Sales, Logistics, and Others (China E-commerce)

Direct sales, logistics, and others within the China E-commerce Group generated RMB 105,518 million (US$ 15,297 million), accounting for 10.31% of consolidated revenue (Calculated by FirmsWorld). Revenue rose 2% year-over-year from RMB 103,722 million, supported by logistics and value-added service growth that offset direct retail inventory rationalization.

• Tmall Supermarket: Direct-to-consumer grocery and FMCG sales offering same-day or next-day fulfillment across major Chinese metropolitan regions.
• Tmall Global Direct: First-party imported goods channel sourcing authenticated overseas consumer products directly from global brand owners.

Quick Commerce Services

Quick commerce generated RMB 78,520 million (US$ 11,383 million) in fiscal year 2026, representing 7.67% of consolidated revenue (Calculated by FirmsWorld). Revenue surged 47% year-over-year from RMB 53,588 million, driven by the rollout of Taobao Instant Commerce in April 2025.

• Product Range: On-demand ordering across meals, groceries, pharmaceuticals, FMCG, consumer electronics, flowers, and apparel.
• Fulfillment Infrastructure: Last-mile fulfillment provided by Fengniao Logistics, which also supports Tmall brands and Alibaba Health.
• Ecosystem Integration: Users access quick commerce via the Taobao, Taobao Instant Commerce, and Alipay mobile apps.

International Commerce Wholesale Services

Alibaba.com generated RMB 26,439 million (US$ 3,833 million) in fiscal year 2026, contributing 2.58% to consolidated revenue (Calculated by FirmsWorld). Revenue grew 11% year-over-year, driven by increased cross-border value-added service adoption.

• Membership Structures: Over 240,000 paying supplier members as of March 31, 2026.
• Active Buyer Base: Over 47 million registered wholesale buyers across more than 190 countries sourced goods or transacted during the fiscal year.
• AI Procurement Tools: Launch of Accio, an AI-powered B2B procurement engine, and Accio Work, an agentic lifecycle platform for SMEs.

China Commerce Wholesale Services

1688.com generated RMB 26,312 million (US$ 3,815 million) in fiscal year 2026, accounting for 2.57% of consolidated revenue (Calculated by FirmsWorld). Revenue increased 8% year-over-year from RMB 24,301 million, driven by value-added services for paying suppliers.

• Core Platform: China’s largest integrated domestic wholesale marketplace by net revenue for the 12 months ended March 31, 2026, according to Analysys.
• Commercial Monetization: China TrustPass annual subscriptions, premium storefront customization, and P4P marketing software.
• AI Integration: AI-driven digital assistants, intelligent product highlight generators, and automated price comparison tools for domestic buyers.

Additional Operating Products and Services

The group operates several consumer and enterprise platforms reported within the “All others” segment:

• Freshippo (盒马鲜生): Technology-driven grocery and fresh retail chain where full-year GMV exceeded RMB 107 billion in fiscal year 2026. Freshippo Supermarket operates over 490 physical stores, with online orders accounting for over 60% of format GMV.
• DingTalk (钉钉): Enterprise efficiency mobile application with over 36 million paying daily active users in March 2026. Ranked as the largest business efficiency mobile app in China by MAU in March 2026 by QuestMobile.
• Amap (高德地图): Digital map, navigation, and local traffic information provider, recording an all-time peak exceeding 360 million daily active users on October 1, 2025.
• Cainiao (菜鸟): Global logistics network operating international sorting centers, automated distribution hubs, and warehouse robotics such as the ZeeBot climbing system.
• Youku (优酷): Online long-form video streaming platform producing and distributing original digital series, films, and licensed entertainment.
• Damai (大麦): Ticketing management and live entertainment operations platform serving large-scale concerts, sports events, and theatrical tours in China.
• Alibaba Health (阿里健康): Healthcare platform integrating online pharmaceutical distribution, digital healthcare consultations, and medical tracking infrastructure.
• Qwen App: Consumer-facing personal AI assistant that reached over 295 million monthly active users across platforms in March 2026.
• Wukong (悟空): Enterprise AI agent platform integrated with DingTalk, coordinating specialized enterprise workflows and third-party tools.

Brand Portfolio

Alibaba operates a portfolio of digital brands across consumer retail, wholesale commerce, cloud computing, logistics, and digital entertainment.

Alibaba Core Brand Architecture
├── China E-commerce: Taobao, Tmall, Xianyu, Taobao Instant Commerce, 1688.com
├── International Commerce: AliExpress, Trendyol, Lazada, Alibaba.com
├── AI & Cloud: Alibaba Cloud, T-Head, Qwen, Wukong
└── Digital Services & Others: Freshippo, Cainiao, Amap, DingTalk, Youku, Damai, Alibaba Health

Digital Commerce Brands

• Taobao (淘宝): Flagship consumer marketplace emphasizing social engagement, live commerce, and small-merchant product discovery.
• Tmall (天猫): Premium business-to-consumer platform hosting domestic and global retail brands, featuring specialized sub-brands Tmall Global and Tmall Supermarket.
• Xianyu (闲鱼): China’s largest C2C marketplace for idle goods by GMV for the twelve months ended March 31, 2026, according to Analysys, covering second-hand products, rentals, and recycling.
• Taobao Instant Commerce (淘宝闪购): Rebranded from Ele.me in fiscal year 2026, this quick-commerce platform connects consumers with nearby offline stores for on-demand 30-minute delivery. Nearly 5,000 Tmall brands were onboarded to the channel as of March 31, 2026.
• 1688.com: Domestic wholesale sourcing marketplace connecting industrial manufacturers and distributors with retail merchants across China.
• AliExpress: Global cross-border marketplace serving retail consumers across more than 200 countries and territories.
• Trendyol: E-commerce platform in Türkiye leading the market by GMV in 2025, operating an integrated logistics network across surrounding emerging markets.
• Lazada: Southeast Asian digital commerce platform operating proprietary marketplace infrastructure and local logistics networks across key regional markets.
• Alibaba.com: International B2B marketplace connecting global SME buyers with verified manufacturers across more than 190 countries.

Technology, Cloud, and Artificial Intelligence Brands

• Alibaba Cloud (阿里云): Cloud infrastructure provider delivering IaaS, PaaS, and MaaS services to enterprise clients globally.
• T-Head (平头哥): Semiconductor design subsidiary that achieved production at scale for its proprietary GPUs, supporting AI training and inference.
• Qwen (通义千问): Proprietary foundation model family, including LLMs like Qwen3.7-Max, the HappyOyster world model, and the HappyHorse multimodal model. Qwen captured a 32% market share in enterprise-level model invocation in China in 2H2025 according to Frost & Sullivan.
• Wukong (悟空): Enterprise agentic platform designed to coordinate AI agents, streamline corporate workflows, and amplify token usage across corporate environments.
• Alimama (阿里妈妈): Proprietary digital advertising and monetization engine operating search bidding, in-feed marketing algorithms, and the Taobao Ad Network and Exchange (TANX).

Consumer Services, Logistics, and Media Brands

• Freshippo (盒马): New Retail fresh grocery chain integrating offline experiential stores with online delivery fulfillment.
• Cainiao (菜鸟): Logistics and supply chain division providing cross-border parcel delivery, domestic freight, and warehouse automation.
• Amap (高德地图): Mobile mapping, navigation, and location-based local services application.
• DingTalk (钉钉): Enterprise communication platform serving as the enterprise operating system for AI agent integration.
• Youku (优酷): Long-form online video streaming platform producing drama series, reality television, and licensed streaming content.
• Damai (大麦): Ticketing management and entertainment platform serving the concert, sports, and performing arts sectors in China.
• Alibaba Health (阿里健康): Healthcare platform integrating online pharmacies, digital clinic consultations, and pharmaceutical supply chain infrastructure.

Geographical Presence

Alibaba conducts business globally, with primary operations in China and expanding commercial activities across Asia Pacific, Europe, and the Middle East.

• Global Real Estate Footprint: The company occupied owned facilities totaling approximately 18.7 million square meters of gross floor area as of March 31, 2026.
• Facility Types: Owned space includes office campuses, logistics warehouses, retail grocery storefronts, and specialized data center facilities.
• Global Office Presence: Key corporate and operational offices are maintained in Chinese mainland, Hong Kong SAR, Singapore, and the United States.

The group’s operational infrastructure spans an international network of cloud computing centers, local logistics nodes, and cross-border trade routes.

Global Infrastructure Footprint
├── Global Data Center Network (34 Regions Disclosed):
│   ├── Chinese mainland, Hong Kong SAR, Singapore, Indonesia, Malaysia, Thailand, Philippines
│   ├── Japan, South Korea, UAE, Germany, United Kingdom, Mexico, United States
├── International Retail Market Footprints:
│   ├── AliExpress: Global coverage across 200+ countries and regions
│   ├── Trendyol: Market focus in Türkiye and adjacent emerging markets
│   ├── Lazada: Regional presence across Southeast Asian domestic markets
└── Cross-Border B2B Commerce:
    └── Alibaba.com: Active sourcing by buyers across 190+ countries

Global Data Center Network

As of March 31, 2026, Alibaba Cloud offered computing services across 34 regions worldwide. The data center network utilizes distributed architectures, liquid-cooling equipment, and intelligent operational monitoring systems.

Data centers are located across 14 disclosed countries and territories:

1. Chinese mainland
2. Hong Kong SAR
3. Indonesia
4. Malaysia
5. Thailand
6. Philippines
7. Singapore
8. United Arab Emirates (UAE)
9. Germany
10. United Kingdom
11. Japan
12. South Korea
13. Mexico
14. United States

Profit and Loss

Alibaba prepares its consolidated financial statements in accordance with U.S. GAAP, with its fiscal year ending on March 31.

The table below presents the consolidated statements of operations for fiscal years 2024, 2025, and 2026.

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Financial Statement Metric	FY2024 (RMB in millions)	FY2025 (RMB in millions)	FY2026 (RMB in millions)	FY2026 (US$ in millions)	YoY Change (FY26 vs FY25)
Revenue	941,168	996,347	1,023,670	148,401	3%
Cost of revenue	(586,323)	(598,285)	(616,136)	(89,321)	3%
Product development expenses	(52,256)	(57,151)	(66,533)	(9,645)	16%
Sales and marketing expenses	(115,141)	(144,021)	(245,023)	(35,521)	70%
General and administrative expenses	(41,985)	(44,239)	(33,082)	(4,796)	(25)%
Amortization and impairment of intangibles	(21,592)	(6,336)	(5,079)	(736)	(20)%
Impairment of goodwill	(10,521)	(6,171)	(9,515)	(1,380)	54%
Other gains, net	—	761	1,848	268	143% (Calculated by FirmsWorld)
Income from operations	113,350	140,905	50,150	7,270	(64)%
Interest and investment income, net	(9,964)	20,759	87,512	12,687	322% (Calculated by FirmsWorld)
Interest expense	(7,947)	(9,596)	(9,793)	(1,420)	2% (Calculated by FirmsWorld)
Other income, net	6,157	3,387	1,518	220	(55)% (Calculated by FirmsWorld)
Income before income tax and equity investees	101,596	155,455	129,387	18,757	(17)% (Calculated by FirmsWorld)
Income tax expenses	(22,529)	(35,445)	(30,045)	(4,356)	(15)% (Calculated by FirmsWorld)
Share of results of equity method investees	(7,735)	5,966	2,785	404	(53)% (Calculated by FirmsWorld)
Net income	71,332	125,976	102,127	14,805	(19)%
Net loss attributable to noncontrolling interests	8,677	4,133	1,465	213	(65)% (Calculated by FirmsWorld)
Net income attributable to Alibaba Group Holding Limited	80,009	130,109	103,592	15,018	(20)% (Calculated by FirmsWorld)
(Accretion) Reversal of accretion of mezzanine equity	(268)	(639)	2,312	335	N/A
Net income attributable to ordinary shareholders	79,741	129,470	105,904	15,353	(18)% (Calculated by FirmsWorld)

Income Statement Progression (FY2024–FY2026)
Consolidated Revenue:   FY24: RMB 941.2B  -> FY25: RMB 996.3B  -> FY26: RMB 1,023.7B (+3% YoY)
Operating Income:       FY24: RMB 113.4B  -> FY25: RMB 140.9B  -> FY26: RMB 50.2B   (-64% YoY)
Consolidated Net Income: FY24: RMB 71.3B   -> FY25: RMB 126.0B  -> FY26: RMB 102.1B  (-19% YoY)
Non-GAAP Net Income:    FY24: RMB 157.5B  -> FY25: RMB 158.1B  -> FY26: RMB 60.7B   (-62% YoY)

Key Operating & Financial Ratios

Source: Disclosed metrics and calculations based on Alibaba Group Holding Limited FY2026 Annual Report.

Metric / Financial Ratio	FY2024	FY2025	FY2026	Analytical Explanation
Cost of Revenue % of Revenue	60%	62%	60%	Stable inventory and platform costs relative to gross turnover
Product Development % of Revenue	6%	6%	7%	Increased AI model, chip design, and cloud research investments
Sales & Marketing % of Revenue	12%	14%	24%	Expansion in quick commerce subsidies and Qwen app user acquisition
General & Administrative % of Revenue	4%	5%	3%	Absence of prior-year litigation provisions and overhead control
Operating Margin	12%	14%	5%	Contraction driven by quick commerce scaling and marketing campaigns
Net Income Margin	8%	13%	10%	Supported by RMB 87,512 million in interest and investment income
Effective Tax Rate	22.18% (FirmsWorld)	22.80% (FirmsWorld)	23.22% (FirmsWorld)	PRC standard rate is 25%; certain entities qualify for preferential 15% or 10% rates
Diluted Earnings Per Share (RMB)	RMB 3.91	RMB 6.70	RMB 5.50	RMB 44.00 per ADS (each ADS represents 8 ordinary shares)
Non-GAAP Diluted EPS (RMB)	RMB 7.78	RMB 8.18	RMB 3.35	RMB 26.80 per ADS; reflects exclusion of investment gains

Revenue increased 3% to RMB 1,023,670 million (US$ 148,401 million) in fiscal year 2026. Excluding revenue from Sun Art and Intime, which were divested, revenue on a like-for-like basis grew 11% year-over-year.

Operating income dropped 64% from RMB 140,905 million in fiscal year 2025 to RMB 50,150 million (US$ 7,270 million) in fiscal year 2026. This decline reflected a 70% surge in sales and marketing expenses, which reached RMB 245,023 million (US$ 35,521 million), or 24% of revenue, driven by user acquisition for the Qwen app and expansion in quick commerce.

Net income decreased 19% to RMB 102,127 million (US$ 14,805 million), down from RMB 125,976 million in fiscal year 2025. Operating income contractions were partially offset by net interest and investment income of RMB 87,512 million (US$ 12,687 million), which rose from RMB 20,759 million in fiscal year 2025 due to mark-to-market adjustments on equity investments and gains from the disposal of Trendyol GO.

• Non-GAAP Net Income Contraction: Dropped 62% year-over-year from RMB 158,122 million in FY2025 to RMB 60,658 million (US$ 8,794 million) in FY2026.
• Share-Based Compensation: Total expense declined 5% year-over-year to RMB 14,821 million (US$ 2,149 million), representing 1% of total revenue.
• Intangible & Goodwill Impairments: Impairment of intangible assets reached RMB 1,729 million (US$ 251 million) in FY2026, while goodwill impairment rose to RMB 9,515 million (US$ 1,380 million).

Balance Sheet

The balance sheet highlights Alibaba’s asset backing, liquidity position, and long-term capital resources.

The table below presents the consolidated balance sheet information as of March 31, 2025, and March 31, 2026.

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Balance Sheet Item (RMB in millions)	As of March 31, 2025	As of March 31, 2026	As of March 31, 2026 (US$ in millions)	Change (%)
Current Assets	674,049	610,769	88,541 (Calculated by FirmsWorld)	(9.39)% (Calculated by FirmsWorld)
Cash and cash equivalents	189,268	131,530	19,068	(30.51)% (Calculated by FirmsWorld)
Short-term investments	185,045 (FirmsWorld)	155,236	22,505	(16.11)% (Calculated by FirmsWorld)
Accounts receivable & contract assets, net	31,172	36,020	5,222	15.55% (Calculated by FirmsWorld)
Prepayments and other assets	298,215	352,851	51,153	18.32% (Calculated by FirmsWorld)
Non-Current Assets	1,130,178 (FirmsWorld)	1,298,801 (FirmsWorld)	188,289 (Calculated by FirmsWorld)	14.92% (Calculated by FirmsWorld)
Equity method & equity securities investments	620,767	686,799	99,565	10.64% (Calculated by FirmsWorld)
Property and equipment, net & intangible assets	224,259	299,682	43,445	33.63% (Calculated by FirmsWorld)
Goodwill	255,501	247,378	35,862	(3.18)% (Calculated by FirmsWorld)
Total Assets	1,804,227	1,909,570	276,830	5.84% (Calculated by FirmsWorld)
Current Liabilities	435,346	476,398	69,062 (Calculated by FirmsWorld)	9.43% (Calculated by FirmsWorld)
Deferred revenue and customer advances	72,871	82,300	11,931	12.94% (Calculated by FirmsWorld)
Accrued expenses, accounts payable & other	641,250	701,000	101,624	9.32% (Calculated by FirmsWorld)
Total Liabilities	714,121	783,300	113,555	9.69% (Calculated by FirmsWorld)
Mezzanine Equity	11,713	7,845	1,137	(33.02)% (Calculated by FirmsWorld)
Shareholders’ Equity	1,009,858	1,060,886	153,796	5.05% (Calculated by FirmsWorld)
Noncontrolling interests	68,535	57,539	8,342	(16.04)% (Calculated by FirmsWorld)
Total Equity	1,078,393	1,118,425	162,138 (Calculated by FirmsWorld)	3.71% (Calculated by FirmsWorld)
Total Liabilities, Mezzanine & Equity	1,804,227	1,909,570	276,830	5.84% (Calculated by FirmsWorld)

Consolidated Balance Sheet Position (As of March 31, 2026)
Total Assets:       RMB 1,909,570M ($276,830M)  ▲ 5.84%
Total Liabilities:  RMB 783,300M   ($113,555M)  ▲ 9.69%
Total Equity:       RMB 1,118,425M              ▲ 3.71%
Total Cash Pool:    RMB 520,824M   ($75,504M) (Cash + Short-Term + Unrestricted Treasury)

Total assets expanded by 5.84% to RMB 1,909,570 million (US$ 276,830 million) as of March 31, 2026 (Calculated by FirmsWorld). Growth was supported by additions to property and equipment, which rose 33.63% to RMB 299,682 million (US$ 43,445 million) following data center and server investments (Calculated by FirmsWorld).

Total liabilities stood at RMB 783,300 million (US$ 113,555 million). Shareholders’ equity reached RMB 1,060,886 million (US$ 153,796 million), with total equity closing at RMB 1,118,425 million.

• Liquidity Pool: As of March 31, 2026, cash and cash equivalents totaled RMB 131,530 million, short-term investments totaled RMB 155,236 million, and unrestricted other treasury investments totaled RMB 234,058 million, providing a combined liquidity reserve of RMB 520,824 million (US$ 75,504 million).
• Restricted Net Assets: Applicable PRC legal restrictions required domestic operating subsidiaries to maintain restricted net assets of RMB 344.6 billion (US$ 50.0 billion) as of March 31, 2026.
• Undistributed Earnings: Undistributed earnings reserved for permanent reinvestment within China totaled RMB 278.9 billion (US$ 40.4 billion) as of March 31, 2026.

Cash Flow

Alibaba funds operations, research programs, infrastructure expansion, and corporate acquisitions primarily through operating cash flows and structured debt issuances.

The table below summarizes consolidated cash flows for fiscal years 2024, 2025, and 2026.

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Cash Flow Summary Metric	FY2024 (RMB in millions)	FY2025 (RMB in millions)	FY2026 (RMB in millions)	FY2026 (US$ in millions)	YoY Change (FY26 vs FY25)
Net cash provided by operating activities	182,593	163,509	76,213	11,049	(53)%
Net cash used in investing activities	(21,824)	(185,415)	(67,336)	(9,762)	(64)% (Calculated by FirmsWorld)
Net cash used in financing activities	(108,244)	(76,215)	(20,573)	(2,983)	(73)% (Calculated by FirmsWorld)
Effect of exchange rate changes	4,389	965	(4,004)	(580)	N/A
Net increase (decrease) in cash & equivalents	56,914	(97,156)	(15,700)	(2,276)	(84)% (Calculated by FirmsWorld)
Cash, equivalents & restricted cash at year-start	229,510	286,424	189,268	27,438	(34)% (Calculated by FirmsWorld)
Cash, equivalents & restricted cash at year-end	286,424	189,268	173,568	25,162	(8)% (Calculated by FirmsWorld)

Operating Cash Flow vs Free Cash Flow Bridge (FY2026)
Net Cash Provided by Operating Activities:  RMB 76,213M ($11,049M)
Less: Capital Expenditures (Property/Equip): (RMB 122,021M)
Less: Purchase of Intangible Assets:        (RMB 874M)
Plus: Changes in Buyer Protection Fund:     RMB 73M
───────────────────────────────────────────────────────────────────
Reported Free Cash Flow:                    (RMB 46,609M) (-$6,757M)

Net cash provided by operating activities dropped 53% to RMB 76,213 million (US$ 11,049 million) in fiscal year 2026. This decline reflected investments in user acquisition, marketing subsidies for quick commerce, and cloud infrastructure operations. Adjustments for non-cash items included RMB 37,067 million in depreciation, equipment impairments, and land use rights operating lease costs, offset by RMB 66,089 million in investment gains.

Net cash used in investing activities totaled RMB 67,336 million (US$ 9,762 million) in fiscal year 2026. This primarily reflected capital expenditures of RMB 126,063 million (US$ 18,275 million) for computing equipment, servers, and data centers, offset by RMB 29,045 million in net cash inflows from investment and acquisition activities and a RMB 29,548 million net decrease in treasury investments.

Net cash used in financing activities totaled RMB 20,573 million (US$ 2,983 million). Outflows included dividend distributions of RMB 33,732 million (US$ 4,890 million) and RMB 16,768 million to acquire additional equity interests in non-wholly owned subsidiaries. These were partially offset by net proceeds of RMB 20,967 million from issuing convertible senior notes (net of capped calls) and RMB 10,986 million from exchangeable bonds.

Free cash flow shifted to negative RMB 46,609 million (US$ -6,757 million) in fiscal year 2026, compared to positive RMB 73,870 million in fiscal year 2025 and positive RMB 156,210 million in fiscal year 2024. This change was driven by elevated capital expenditures, which rose to RMB 122,021 million (excluding corporate campuses), alongside lower operating cash flows.

Board of Directors and Leadership Team

Alibaba Group operates under a corporate governance framework led by its Board of Directors, executive officers, and the Alibaba Partnership.

Executive Leadership

• Joe Tsai (Chairman of the Board of Directors): Executive Chairman responsible for corporate strategy, capital management, and shareholder relations. Signs the annual letter to shareholders alongside the CEO.
• Eddie Wu (Chief Executive Officer): Oversees business operations, organizational reorganizations, and technological investments across the AI + Cloud and digital commerce platforms.

Governance Committees & Risk Oversight

• Compliance and Risk Committee of the Board: Directly oversees compliance and risk management frameworks across domestic and international operations. Reviews cybersecurity risks, cross-border regulatory actions, and compliance protocols.
• Corporate Risk Management Committee: Composed of senior management across legal, finance, security, and technology divisions. Led by the Head of Security, who possesses over 10 years of data security experience, to direct automated vulnerability detection, threat mitigation, and incident responses.

Alibaba Partnership and Weighted Voting Rights (WVR)

Alibaba Group operates with a Weighted Voting Rights structure under the Hong Kong Listing Rules. Although the company has one class of ordinary shares, with each share entitled to one vote, the Alibaba Partnership holds the exclusive right to nominate or appoint up to a simple majority of the Board of Directors.

• Partnership Mandate: The nomination rights remain effective unless the Articles of Association are amended by an affirmative shareholder vote of at least 95% of shares voting at a general meeting.
• Partnership Longevity: The Alibaba Partnership continues to govern nominations regardless of changes in shareholder control or mergers involving the company.
• Disclosed Partnership Members: Partners named in connection with the ownership of domestic operating entities include Jessie Junfang Zheng, Xiaofeng Shao, Zeming Wu, Fang Jiang, Jeff Jianfeng Zhang, Winnie Jia Wen, Jie Song, and Yongxin Fang.

Subsidiaries, Associates, Joint Ventures

Alibaba operates through offshore holding companies, direct PRC subsidiaries, and onshore Variable Interest Entities (VIEs) to comply with PRC restrictions on foreign investment in telecommunications and value-added internet services.

Corporate Entity Architecture
├── Holding Company: Alibaba Group Holding Limited (Cayman Islands)
│   ├── Taobao Holding Limited (Cayman Islands - 100%)
│   │   └── Taobao China Holding Limited (Hong Kong - 100%)
│   │       ├── Taobao (China) Software Co., Ltd. (PRC - 100% WFOE)
│   │       └── Zhejiang Tmall Technology Co., Ltd. (PRC - 100% WFOE)
│   ├── Alibaba.com Limited (Cayman Islands - 100%)
│   │   └── Alibaba.com Investment Holding Limited (BVI - 100%)
│   │       ├── Alibaba.com International (Cayman) Holding Limited (Cayman Islands)
│   │       └── Hangzhou AliCloud Apsara Information Technology Co., Ltd. (PRC WFOE)
│   └── Alibaba Investment Limited (BVI - 100%)
└── Variable Interest Entities (Contractual Control via WFOEs):
    ├── Zhejiang Taobao Network Co., Ltd.
    ├── Zhejiang Tmall Network Co., Ltd.
    ├── Zhejiang Diantao Good Things Network Co., Ltd.
    └── Alibaba Cloud Computing Ltd.

Significant Subsidiaries

Source: Alibaba Group Holding Limited Fiscal Year 2026 Annual Report.

Entity Legal Name	Domicile / Jurisdiction	Direct Ownership %	Corporate Operational Mandate
Taobao Holding Limited	Cayman Islands	100%	Intermediate holding company for Alibaba China E-commerce Group entities
Taobao China Holding Limited	Hong Kong SAR	100%	Direct parent of primary PRC software and operating subsidiaries
Alibaba.com Limited	Cayman Islands	100%	Holding company for AIDC Group and Cloud Intelligence Group entities
Alibaba.com Investment Holding Limited	British Virgin Islands	100%	Intermediate investor in cross-border commerce and cloud subsidiaries
Alibaba Investment Limited	British Virgin Islands	100%	Holding company for strategic investments, entertainment, and media assets
Alibaba Group Services Limited	Hong Kong SAR	100%	Centralized corporate treasury center located in Hong Kong
Taobao (China) Software Co., Ltd.	People’s Republic of China	100%	Software and technology services developer for Taobao marketplaces
Zhejiang Tmall Technology Co., Ltd.	People’s Republic of China	100%	Software, digital platforms, and technology developer for Tmall
Hangzhou AliCloud Apsara Information Tech Co.	People’s Republic of China	100%	Core technology development entity for Alibaba Cloud operations
Alibaba.com International (Cayman) Holding	Cayman Islands	100%	Operational holding company for international commerce subsidiaries

Representative Variable Interest Entities (VIEs)

To comply with PRC regulations that restrict foreign ownership in value-added telecommunications services (including internet content providers), Alibaba operates domestic platforms through contractual arrangements with VIEs:

• Zhejiang Taobao Network Co., Ltd.: Holds domestic ICP operating licenses for Taobao mobile and online marketplaces.
• Zhejiang Tmall Network Co., Ltd.: Holds commercial value-added licenses for Tmall e-commerce channels.
• Zhejiang Diantao Good Things Network Co., Ltd.: Operates domestic interactive consumer discovery and live commerce channels.
• Alibaba Cloud Computing Ltd.: Holds public cloud infrastructure, internet data center, and telecommunications operational licenses in China.

Contractual arrangements between wholly foreign-owned enterprises (WFOEs) and the VIEs include loan agreements, exclusive call option agreements, proxy agreements, equity pledge agreements, and exclusive technical service agreements. Under these contracts, major VIEs paid technical service fees of RMB 21,510 million (US$ 3,118 million) to their primary beneficiary subsidiaries in fiscal year 2026, compared to RMB 17,130 million in fiscal year 2025 and RMB 11,689 million in fiscal year 2024.

Enhanced VIE Structure

Alibaba utilizes an Enhanced VIE Structure for its representative VIEs. Under this model, equity in the VIE is held by a PRC limited liability company owned by two PRC limited partnerships, each holding 50%.

The general partner of each partnership is a PRC limited liability company owned by members of the Alibaba Partnership who are PRC citizens, while the limited partners are drawn from the same management pool. This structure disperses ownership interests to mitigate key-man and succession risks associated with holding equity through individual natural persons.

Other Investments (Including Minority / Portfolio Holdings)

Alibaba holds strategic investments in digital finance and enterprise platforms to support its digital ecosystem.

• Ant Group Co., Ltd.: Alibaba’s primary equity-accounted strategic investment, in which it held a 33% equity interest on a fully diluted basis as of March 31, 2026.
• Ant Group Business Scope: Operates digital payments platform Alipay and provides inclusive digital financial and wealth management services to consumers and merchants in China and globally.
• Dividend Distributions: Cash dividends received by Alibaba from Ant Group totaled RMB 3,293 million (US$ 477 million) during fiscal year 2026.
• Profit Contribution: Alibaba records its share of results in Ant Group one quarter in arrears. In fiscal year 2026, Alibaba’s share of Ant Group profit was RMB 5,048 million (US$ 732 million), down from RMB 12,648 million in fiscal year 2025 due to investments in user growth and technology.

Material Dispositions

• Trendyol GO: In May 2025, Alibaba agreed to sell an 85% equity interest in Trendyol GO, a wholly-owned subsidiary of Trendyol operating local on-demand delivery services in Türkiye, for cash consideration of approximately US$ 0.7 billion (RMB 5 billion). The transaction was completed during fiscal year 2026.
• Sun Art Retail Group: Completed the disposal of hypermarket operator Sun Art during fiscal year 2025.
• Intime Department Store: Substantially completed the sale of department store operator Intime in fiscal year 2025, finalizing the transaction in fiscal year 2026.

Physical Properties

Alibaba owns and leases corporate properties, logistics networks, data centers, and physical retail stores to support its operations.

• Total Owned Gross Floor Area: Approximately 18.7 million square meters of owned facilities worldwide as of March 31, 2026.
• Facility Utilization: Owned properties encompass executive offices, smart logistics warehouses, retail grocery spaces, and computing data centers.
• Freshippo Supermarkets: Over 490 physical retail stores operated across mainland China as of March 31, 2026.
• Principal Corporate Campuses: Corporate headquarters located at 960-1 West Wen Yi Road, Yu Hang District, Hangzhou 311121, China.
• Office Locations: Offices maintained across Chinese mainland, Hong Kong SAR, Singapore, and the United States.

Founders

Alibaba Group was founded in 1999 by a group of eighteen entrepreneurs in Hangzhou, China, led by Jack Ma. The founding group established the business to champion small enterprises, believing the Internet could level the playing field by enabling small merchants to leverage innovation and compete in domestic and global economies.

• Founding Proverb: “If not now, when? If not me, who?”—a line from the company’s first job advertisement in 1999 that remains a core corporate value.
• Long-Term Mission: The founders established the company to solve customer problems rather than pursue short-term gains, setting a 102-year lifespan vision.
• Legal Developments: A founder was named as an individual defendant in a consolidated U.S. shareholder class action lawsuit in April 2022; the court dismissed the founder from the action on March 22, 2023.

Parent

Alibaba Group Holding Limited is the ultimate parent holding company of the Alibaba corporate group. Incorporated as an exempted company with limited liability under Cayman Islands law on June 28, 1999, it conducts no independent commercial operations of its own.

• Holding Structure Function: The parent company’s assets consist of direct equity holdings in intermediate offshore and onshore operating subsidiaries.
• Capital Sourcing: The parent relies on dividends, intellectual property licensing payments, and loan repayments from operating subsidiaries to service public debt, fund corporate share repurchases, and distribute cash dividends to shareholders.
• Intercompany Financing: In fiscal year 2026, Alibaba Group Holding Limited provided capital contributions and loans of RMB 119,141 million (US$ 17,272 million) to subsidiaries, while receiving dividends and loan repayments of RMB 153,964 million (US$ 22,320 million) from them.

Investments and Capital Expenditure Plans

Alibaba allocates capital toward proprietary artificial intelligence technologies, cloud computing infrastructure, and core consumer fulfillment platforms.

Capital Expenditures & Commitments

• Fiscal Year 2026 Capex: Capital expenditures totaled RMB 126,063 million (US$ 18,275 million) in FY2026, rising 47% from RMB 85,972 million in FY2025 and 293% from RMB 32,087 million in FY2024 (Calculated by FirmsWorld).
• Capex Allocation Areas: Capital outlays are concentrated in computing equipment, AI servers, and data centers for Alibaba Cloud, alongside logistics network hubs and office facilities.
• Capital Commitments: Contracted commitments for property, equipment, and cloud infrastructure not yet provided for on the balance sheet totaled RMB 54,136 million (US$ 7,848 million) as of March 31, 2026, up from RMB 45,321 million as of March 31, 2025.

Research and Development Expenditures

• Product Development Outlay: Product development expenses rose 16% year-over-year to RMB 66,533 million (US$ 9,645 million) in fiscal year 2026, compared to RMB 57,151 million in fiscal year 2025.
• Expense Ratios: Product development represented 7% of consolidated revenue in FY2026 (or 6% excluding non-cash share-based compensation expense).
• Intellectual Property Portfolio: Around 19,100 issued patents and approximately 8,100 publicly filed patent applications in China, alongside approximately 5,500 issued patents and 1,800 filed applications internationally, as of March 31, 2026.

Long-Term Strategic Priorities

Alibaba concentrates future investments across two primary operational pillars: AI + Cloud and Consumption.

Capital and Operational Allocation Priorities
├── 1. AI + Cloud Infrastructure:
│   ├── Proprietary T-Head GPU chip production at scale
│   ├── Expansion of global cloud computing network across 34 regions
│   ├── MaaS inference expansion via Alibaba Cloud Model Studio ("Bailian")
│   └── Foundational R&D on Qwen LLMs (Qwen3.7-Max, HappyOyster, HappyHorse)
└── 2. Consumption & Quick Commerce:
    ├── Expanding Taobao Instant Commerce nationwide across non-food categories
    ├── Investing in 30-minute delivery infrastructure via Fengniao Logistics
    ├── Enhancing consumer retention via the 88VIP tiered membership program
    └── Rolling out AI merchant tools, including Quanzhantui and Wukong Skills

Shareholding Pattern

Alibaba Group Holding Limited is publicly listed on the New York Stock Exchange (NYSE: BABA) and the Hong Kong Stock Exchange (HKEX: 9988 / 89988).

• Ordinary Shares Outstanding: Diluted weighted average ordinary shares stood at 19,235 million in fiscal year 2026, down from 19,318 million in FY2025 and 20,359 million in FY2024.
• Share Repurchase Allocations: In fiscal year 2025, the company deployed RMB 86,662 million in cash to repurchase ordinary shares, reducing the total share count.
• Share Conversion Ratio: One American Depositary Share (ADS) represents eight ordinary shares.
• Weighted Voting Rights Mechanism: The Alibaba Partnership retains the exclusive right to nominate or appoint a simple majority of the Board of Directors, maintaining governance control under the Hong Kong Listing Rules.

Future Strategy

Alibaba’s forward strategy focuses on the commercialization of artificial intelligence and the expansion of quick-delivery consumer commerce.

AI + Cloud Strategic Pivot

• AI Agent Transition: Capitalizing on the transition toward autonomous AI agents acting as the primary interface between users and digital services, driving token consumption.
• Alibaba Token Hub Business Group: Dedicated business group established to lead the generation, delivery, and commercialization of AI tokens across enterprise and consumer domains.
• Full-Stack AI Synergy: Integrating T-Head hardware, Apsara cloud software, Qwen foundation models, Bailian MaaS platforms, and consumer applications to reduce inference costs and improve compute performance.
• Consumer AI Integration: Expanding the Qwen app (surpassing 295 million MAUs in March 2026) across Taobao, Tmall, Amap, Fliggy, and Alipay into an all-in-one assistant for daily life and work.
• Enterprise Platform Expansion: Integrating DingTalk’s user base of over 36 million daily paying users into the Wukong agentic platform to coordinate enterprise workflows.

Consumption and Quick Commerce Expansion

• Convergence of E-Commerce and Instant Delivery: Integrating Taobao, Tmall, and Taobao Instant Commerce into an on-demand consumption platform serving 30-minute delivery expectations.
• Category Broadening: Adding non-food categories—including consumer electronics, apparel, pharmaceuticals, and FMCG—to instant delivery networks.
• Merchant AI Adoption: Deploying tools like the Quanzhantui ad manager, Accio B2B sourcing engine, and Wukong Skills to improve merchant operating efficiency and retention.

Key Strengths

Alibaba’s market position is supported by several operational and technological assets:

• Global Scale in Retail E-Commerce: The largest retail commerce business globally by GMV for the twelve months ended March 31, 2026, according to Analysys.
• Cloud Infrastructure Leadership: The world’s fourth-largest and Asia Pacific’s largest IaaS provider by revenue in 2025 (Gartner), and China’s largest public cloud provider (IDC).
• Enterprise AI Adoption: Qwen models held the top position with a 32% market share in enterprise-level large model invocations in China in the second half of 2025 (Frost & Sullivan).
• AI Cloud Market Share: Alibaba Cloud captured first place with a 35.8% market share in China’s AI cloud market in the first half of 2025 (Omdia).
• Enterprise Penetration: Cloud Intelligence Group provides enterprise computing services to approximately 67% of China’s A-share listed corporations.
• Consumer AI Scale: The Qwen mobile application reached over 295 million monthly active users across platforms as of March 2026.
• Enterprise Mobile Scale: DingTalk had over 36 million paying daily active users in March 2026, ranking as China’s largest business efficiency mobile application by MAU (QuestMobile).
• Liquidity Reserves: Total cash, short-term investments, and unrestricted treasury investments stood at RMB 520,824 million (US$ 75,504 million) as of March 31, 2026.
• Proprietary Semiconductor Capabilities: Commercialized T-Head GPUs scaled to support end-to-end cloud computing, training, and MaaS inference.

Key Challenges and Risks

Alibaba faces operational, regulatory, legal, and macroeconomic risks across its domestic and international operations.

Regulatory and Compliance Pressures in China

• Anti-Monopoly Enforcement: Subject to the amended PRC Anti-monopoly Law, Online Trading Measures, and the January 2026 Guidelines on Anti-monopoly Compliance of Internet Platforms. These prohibit unfair pricing, exclusive dealing, unreasonable platform fees, and algorithm-based price discrimination.
• Data Security & Cross-Border Data Transfers: Required to comply with the Data Security Law, Cybersecurity Law, Personal Information Protection Law (PIPL), and CAC cross-border transfer rules.
• AI & Algorithm Oversight: Must comply with generative AI regulations, algorithm recommendation filings, and mandatory labeling for AI-generated content effective September 2025.
• Capital and Dividend Restrictions: Chinese operating subsidiaries held RMB 344.6 billion (US$ 50.0 billion) in restricted net assets as of March 31, 2026, limiting capital remittance to the offshore parent.

International Regulatory Scrutiny

• EU Digital Services Act (DSA): AliExpress is designated as a Very Large Online Platform (VLOP) under the DSA. The European Commission opened formal proceedings in March 2024 and issued preliminary findings in June 2025 alleging non-compliance regarding illegal content risk mitigation, creating potential exposure to fines of up to 6% of global turnover.
• EU Artificial Intelligence Act: New compliance frameworks impose operational requirements and potential fines of up to 7% of annual worldwide turnover or €35 million for high-risk AI breaches.
• OECD Pillar Two Tax: Implementation of a 15% global minimum corporate tax framework across applicable jurisdictions.

Structural and Variable Interest Entity (VIE) Risks

• Legal Uncertainty: Foreign investment restrictions in telecommunications and online commerce require the use of contractual VIE structures. PRC courts or regulators could challenge the validity of these contractual arrangements, which could disrupt the consolidation of VIE operating results.

Operational and Financial Risks

• Operating Margin Contraction: Operating income dropped 64% year-over-year in FY2026 to RMB 50,150 million, and Adjusted EBITA fell 56% to RMB 76,416 million, due to marketing spending and quick commerce subsidies.
• Negative Free Cash Flow: Free cash flow turned negative at RMB (46,609) million (US$ -6,757 million) in FY2026, driven by higher capital expenditures (RMB 126,063 million) and lower operating cash flow.
• Asset Impairments: The group recognized goodwill impairments of RMB 9,515 million and intangible asset impairments of RMB 1,729 million in fiscal year 2026.

Legal Proceedings

• U.S. Shareholder Class Action Settlement: In October 2024, Alibaba agreed to pay US$ 433.5 million to settle consolidated securities class actions in the U.S. District Court for the Southern District of New York related to the Ant Group IPO suspension and antitrust inquiries. The settlement was finalized by the court on March 28, 2025, without finding or admitting liability.
• JD.com Antitrust Dispute: Long-running litigation filed in 2017 by JD.com affiliates against Tmall entities and Alibaba Group for alleged abuse of market dominance concluded prior to the issuance of the report.

Strategic Outlook

Alibaba Group is balancing reinvestment in customer growth with an organizational shift into enterprise and consumer artificial intelligence. The combination of its domestic commerce platforms—uniting Taobao, Tmall, and Taobao Instant Commerce—is designed to defend market share in China retail by aligning standard e-commerce with 30-minute delivery fulfillment.

In technology, Alibaba is transitioning from traditional storage and compute to an AI-driven model. Backed by proprietary T-Head chips, the Apsara cloud operating system, and the Qwen foundation model family, the company is positioning its Cloud Intelligence Group to support third-party enterprise AI transformations while integrating AI features directly across its own retail and consumer platforms. Supported by a liquidity reserve of RMB 520,824 million in cash and treasury investments, the group is deploying capital into AI infrastructure and consumer acquisition to support long-term ecosystem growth.

Official Site: Alibaba Group Official Website