Ali executives: trade war has serious damage to small businesses in the United States.

category:Internet
 Ali executives: trade war has serious damage to small businesses in the United States.


Ali annual revenue of 250 billion 266 million yuan (39 billion 898 million U.S. dollars), up 58% over the same period last year, net profit 61 billion 412 million yuan (9 billion 791 million U.S. dollars), an increase of 49% over the same period. After the announcement, Cai Chongxin, CEO Zhang Yong and CFO Wei, vice president of the Alibaba board, attended the conference, read the financial papers and answered questions from analysts. The following is the analysis is the main content of the question and answer link: Bank of America Merrill Lynch analyst EddieLeung: my question is about Alibabas new retail business. Can the management compare the operation and financial situation of the retail business of box horse and other similar lines? Zhang Yong: our anticipation of the box horse fresh is aimed at creating a highly efficient supermarket under the fresh line. At present, we have 50% of orders from mobile phone users: users at home through mobile phone APP orders, then orders in the nearby offline supermarket distribution. In this way, the user coverage of box and horse fresh products is increased, and the overall efficiency of store business is improved. So far, the fixed operation cost of the supermarket under the fresh line of the box horse remains stable, but the coverage rate of our users has been steadily increasing, and more and more offline and online users can buy our products, which greatly improves the efficiency and profitability of our business operation. Second, the cost of distribution. The fresh business model of the box horse is our new retail model, which has been upgraded from the traditional inventory retail to the new supply chain and the integration of logistics and distribution. Usually, users can receive packages within 30 minutes after placing them on the phone. Because all orders are distributed from the nearest entity store, Ma Sheng Sheng supermarket. The new retail business will become a major competitive advantage for us in the future. Morgan Stanley GraceChen: my question is about the reason for the increase in profits in 2019. I remember at the beginning of 2018, management had mentioned that the Alibaba would focus on expanding market share, the last quarter was very good, Tmalls profits and users were rising, and Alibaba also valued the user experience. So will expanding market share continue to become a top priority for Alibaba? Wuwei: Alibabas profit increased by over 60% in the last quarter. This growth came from all the growth of our group. Of course, the most important thing is from the core business, Ali Yun. We will continue to strive to maintain market dominance, while the new strategy will help our profit growth, including the new retail business. Data show that new retail accounts for only 10% of the total retail sales in China, so profit growth will continue to come mainly from Chinas retail business. Cai Chongxin: with the development of new retail business, the total value of the retail market is up to 5 trillion yuan, so we hope to increase market penetration in this bigger market. Of course, in order to gain a firm foothold in the fierce competition, we still need to continue to focus on market share. How much budget does Citibank AliciaYap: Alibaba invest in its business? For example, user acquisition, globalization, electronic content, logistics and hungry business. Wu Wei: from the earnings report, we can see Alibabas profit growth of 62% over the past quarter, of which 10% used to invest in new business units. In 2019, we will continue to invest in these investments, because these projects are all very important. Investment in one year alone is not enough. For example, rookie, coming to the top and starving will continue to be the focus of our investment. Alibaba will pay attention to the growth of profit margin when expanding its business. With the steady development of the new retail business, we hope that the business units can achieve long-term and healthy growth. Barclays GregoryZhao: management can share the Alibabas recent development in the face of user management, advertising and marketing, and what kind of new advertising models may be available this year? What is the profit trend of Alibaba in user management and advertising marketing this year? Wuwei: we can see that in the first two quarters of last year, we had a great increase in the profit of customer management and advertising marketing, which was mainly due to the upgrade of the algorithm. Last quarter, we formulated some strategies to increase the rate of return on retail business. Usually, when the profit of customer management decreases slightly, the Commission profit will increase. So when it comes to profit growth, we must consider it in many ways. We have great confidence in the future profit growth of customer management. Can PiyushMubayi: management of Goldman Sachs share the plan for CDR (allowing domestic investors to hold proxy coupons for overseas companies)? Wu Wei: we are actively exploring opportunities for CDR in all aspects of our country, but so far we have no specific plans and time to share. If there is any news about this, we will announce it at the first time. Cai Chongxin: at present, we have not completed the acquisition of ant gold clothing, so we are unable to announce the growth of this business unit. But from a quantitative perspective, we have seen in the past two quarters in the user access to the huge rise and customer participation in the Alipay wallet on the platform, both online and offline payments have increased significantly. Wu Wei: so far, we have no specific CDR rules yet, but we believe this will contribute to the development and business expansion of Alibaba. In addition, we are unable to ensure that investors rights and interests can be protected. JP Morgan analyst AlexYao: my question is about Alibabas development strategy in Southeast Asia. The market has a relatively low e-commerce penetration, and many local competitors have joined in, so what strategy does the Alibaba have to get the market share? Cai Chongxin: I will simply add this question to you. We are mainly concerned about developing business in the largest markets in the region, such as Indonesia. The market turnover will reach 10 billion this year. As we are among the most advanced in this market, it is too early to share details. But for the market share strategy, we have been working to improve the e-commerce platform technology and user experience. Recently, the Alibaba has just completed the reconstruction of the platform so that we can quickly release products on the client side. This has greatly enhanced the user experience and improved Alibabas ability to respond to rapid changes in the market. In terms of business, countries in Southeast Asia do not have a strong manufacturing base, so they often need resources from China. RBC capital analyst: what is the application of AI technology in various business units of Alibaba? The impact of AI technology on the cost and profit of Alibaba? Zhang Yong: because we have a wide range of business distribution, the company has many applications in artificial intelligence. AI is not a technology that belongs to the future. In fact, we have applied this technology in the data led business unit for many years. That is why we can have very rapid business growth over the past years. After that, we will continue to invest in the field of AI, and integrate it into many business areas, such as upgrading the user experience of advertising products. Of course, AI is not only related to users, but also integrated with supply chain. Through data, we can know how to improve the efficiency of inventory management, what products the customers need, how to produce them, etc. At present, we are committed to developing more applications in the field of artificial intelligence, so as to create more business opportunities. Analyst: in terms of new retail business, can management share the strategy and competitive advantage of Alibaba in dealing with fierce market competition? How does Alibaba cope with the risks and possible losses caused by Sino US trade war? Zhang Yong: for the advantage of the Alibaba in the new retail business, first of all in the past 19 years we have created a largest e-commerce platform, with a very huge user base. So we know users preferences and purchase behaviors. Now, when we join the new retail industry and talk about the organic combination of offline and online services, the previous user data will be our strong competitive advantage. Second, because of our many years of electricity supplier experience, we are not only familiar with how to link businesses with customers, but also know how to create value. Therefore, Alibaba is not only developing online e-commerce business, but also striving to build a new retail mode combining offline and online. Cai Chongxin: Alibaba provides a platform for businessmen and manufacturers from all over the world to reach Chinese consumers. Now we have nearly five hundred and fifty million years of active users. For brands, retailers, manufacturers, farmers and so on, it is a platform of great attraction. Now, due to the Sino US trade war, the free trade between trade has been restricted to a certain extent. Although overseas business in the United States has been affected, we can expand business in other countries such as South Africa, Taiwan, Thailand and other countries to make up for the possible loss of business. So there are always more channels to meet the needs of Chinese consumers. It is clear that trade war is not good for anyone and does have more serious harm to small businesses in the United States, but we will find other ways to introduce goods that meet the needs of Chinese consumers. JerryLu:, analyst at UBS, will Alibaba increase investment in the video and payment platform this year? Because I heard that Alibabas main competitors have increased investment in these two businesses. Zhang Yong: these two businesses have always been the focus of our investment. This does not belong to our new business, but is an important part of the Alibaba ecosystem. With the improvement of the quality of life of Chinese consumers, they are not only in demand on physical goods, but also in electronic content, which is why we enter the business. (Qin Xin) source: NetEase science and technology report editor: Bai Xin _NT4464 Cai Chongxin: Alibaba provides a platform for businessmen and manufacturers from all over the world to reach Chinese consumers. Now we have nearly five hundred and fifty million years of active users. For brands, retailers, manufacturers, farmers and so on, it is a platform of great attraction. Now, due to the Sino US trade war, the free trade between trade has been restricted to a certain extent. Although overseas business in the United States has been affected, we can expand business in other countries such as South Africa, Taiwan, Thailand and other countries to make up for the possible loss of business. So there are always more channels to meet the needs of Chinese consumers. It is clear that trade war is not good for anyone and does have more serious harm to small businesses in the United States, but we will find other ways to introduce goods that meet the needs of Chinese consumers. JerryLu:, analyst at UBS, will Alibaba increase investment in the video and payment platform this year? Because I heard that Alibabas main competitors have increased investment in these two businesses. Zhang Yong: these two businesses have always been the focus of our investment. This does not belong to our new business, but is an important part of the Alibaba ecosystem. With the improvement of the quality of life of Chinese consumers, they are not only in demand on physical goods, but also in electronic content, which is why we enter the business. (Qin Xin)