{"url_path":"/sec/bbaay/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBITS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/1577552/0001193125-26-231755-index.html","accession_number":"0001193125-26-231755","cik":"0001577552","ticker":"BABA","issuer_name":"Alibaba Group Holding Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1577552/0001193125-26-231755-index.html","primary_entity_key":"0001577552","primary_entity_name":"Alibaba Group Holding Ltd"},"word_count":38675,"has_tables":true,"body_markdown":"ITEM 19. EXHIBITS\n\nExhibit Number\n\nDescription of Document\n\n1.1(1)\n\n[Amended and Restated Memorandum and Articles of Association of the Registrant as currently in effect](https://www.sec.gov/Archives/edgar/data/1577552/000110465924092027/tm2422435d1_ex3-1.htm)\n\n2.1(6)\n\n[Registrant’s Form of Ordinary Share Certificate](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_1.htm)\n\n2.2(2)\n\n[Deposit Agreement, dated as of September 24, 2014, between the Registrant, the depositary and holders and beneficial holders of American Depositary Shares evidenced by American Depositary Receipts issued thereunder, including the form of American Depositary Receipt](https://www.sec.gov/Archives/edgar/data/1472033/000119380519000501/e618463_ex99-a.htm)\n\n2.3(2)\n\n[Form of American Depositary Receipt evidencing American Depositary Shares (included in Exhibit 2.2)](https://www.sec.gov/Archives/edgar/data/1472033/000119380519000501/e618463_ex99-a.htm)\n\n2.4(3)\n\n[Indenture, dated as of November 28, 2014, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746915005768/a2225010zex-2_6.htm)\n\n2.5(3)\n\n[Sixth Supplemental Indenture, dated as of November 28, 2014, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746915005768/a2225010zex-2_12.htm)\n\n2.6(3)\n\n[Form of 4.500% Senior Notes Due 2034 (included in Exhibit 2.5)](https://www.sec.gov/Archives/edgar/data/1577552/000104746915005768/a2225010zex-2_12.htm)\n\n2.7(4)\n\n[Indenture, dated as of December 6, 2017, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_15.htm)\n\n2.8(4)\n\n[Second Supplemental Indenture, dated as of December 6, 2017, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_17.htm)\n\n2.9(4)\n\n[Third Supplemental Indenture, dated as of December 6, 2017, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_18.htm)\n\n2.10(4)\n\n[Fourth Supplemental Indenture, dated as of December 6, 2017, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_19.htm)\n\n2.11(4)\n\n[Fifth Supplemental Indenture, dated as of December 6, 2017, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_20.htm)\n\n2.12(4)\n\n[Form of 3.400% Senior Notes Due 2027 (included in Exhibit 2.8)](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_17.htm)\n\n2.13(4)\n\n[Form of 4.000% Senior Notes Due 2037 (included in Exhibit 2.9)](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_18.htm)\n\n2.14(4)\n\n[Form of 4.200% Senior Notes Due 2047 (included in Exhibit 2.10)](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_19.htm)\n\n2.15(4)\n\n[Form of 4.400% Senior Notes Due 2057 (included in Exhibit 2.11)](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-2_20.htm)\n\n2.16(5)\n\n[Sixth Supplemental Indenture, dated as of February 9, 2021, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d26.htm)\n\n2.17(5)\n\n[Seventh Supplemental Indenture, dated as of February 9, 2021, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d27.htm)\n\n2.18(5)\n\n[Eighth Supplemental Indenture, dated as of February 9, 2021, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d28.htm)\n\n2.19(5)\n\n[Ninth Supplemental Indenture, dated as of February 9, 2021, between the Registrant and Bank of New York Mellon as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d29.htm)\n\n2.20(5)\n\n[Form of 2.125% Senior Notes Due 2031 (included in Exhibit 2.16)](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d26.htm)\n\n2.21(5)\n\n[Form of 2.700% Senior Notes Due 2041 (included in Exhibit 2.17)](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d27.htm)\n\n205\n\n[Table of Contents](#toc_page)\n\n \n\nExhibit Number\n\nDescription of Document\n\n2.22(5)\n\n[Form of 3.150% Senior Notes Due 2051 (included in Exhibit 2.18)](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d28.htm)\n\n2.23(5)\n\n[Form of 3.250% Senior Notes Due 2061 (included in Exhibit 2.19)](https://www.sec.gov/Archives/edgar/data/1577552/000110465921096092/baba-20210331xex2d29.htm)\n\n2.24(6)\n\n[Indenture, dated as of May 29, 2024, between the Registrant and Citibank, N.A. as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_24.htm)\n\n2.25(6)\n\n[Form of 0.50% Convertible Senior Notes Due 2031 (included in Exhibit 2.24)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_24.htm)\n\n2.26(17)\n\n[Indenture, dated as of November 26, 2024, between the Registrant and Citibank, N.A. as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000110465925069178/tm2520871d2_ex4-1.htm)\n\n2.27(6)\n\n[First Supplemental Indenture, dated as of November 26, 2024, between the Registrant and Citibank, N.A. as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_27.htm)\n\n2.28(6)\n\n[Second Supplemental Indenture, dated as of November 26, 2024, between the Registrant and Citibank, N.A. as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_28.htm)\n\n2.29(6)\n\n[Third Supplemental Indenture, dated as of November 26, 2024, between the Registrant and Citibank, N.A. as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_29.htm)\n\n2.30(6)\n\n[Form of 4.875% Notes Due 2030 (included in Exhibit 2.27)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_27.htm)\n\n2.31(6)\n\n[Form of 5.250% Notes Due 2035 (included in Exhibit 2.28)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_28.htm)\n\n2.32(6)\n\n[Form of 5.625% Notes Due 2054 (included in Exhibit 2.29)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_29.htm)\n\n2.33(6)\n\n[Indenture, dated as of November 28, 2024, between the Registrant and Citicorp International Limited as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_33.htm)\n\n2.34(6)\n\n[First Supplemental Indenture, dated as of November 28, 2024, between the Registrant and Citicorp International Limited as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_34.htm)\n\n2.35(6)\n\n[Second Supplemental Indenture, dated as of November 28, 2024, between the Registrant and Citicorp International Limited as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_35.htm)\n\n2.36(6)\n\n[Third Supplemental Indenture, dated as of November 28, 2024, between the Registrant and Citicorp International Limited as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_36.htm)\n\n2.37(6)\n\n[Fourth Supplemental Indenture, dated as of November 28, 2024, between the Registrant and Citicorp International Limited as Trustee](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_37.htm)\n\n2.38(6)\n\n[Form of 2.65% Notes Due 2028 (included in Exhibit 2.34)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_34.htm)\n\n2.39(6)\n\n[Form of 2.80% Notes Due 2029 (included in Exhibit 2.35)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_35.htm)\n\n2.40(6)\n\n[Form of 3.10% Notes Due 2034 (included in Exhibit 2.36)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_36.htm)\n\n2.41(6)\n\n[Form of 3.50% Notes Due 2044 (included in Exhibit 2.37)](https://www.sec.gov/Archives/edgar/data/1577552/000095017025090161/baba-ex2_37.htm)\n\n2.42\n\n[Trust Deed, dated as of July 9, 2025, between the Registrant and Citicorp International Limited as Trustee](baba-ex2_42.htm)\n\n2.43\n\n[Form of zero coupon Exchangeable Bonds Due 2032 (included in Exhibit 2.42)](baba-ex2_42.htm)\n\n2.44\n\n[Indenture, dated as of September 16, 2025, between the Registrant and Citibank, N.A. as Trustee](baba-ex2_44.htm)\n\n2.45\n\n[Form of 0% Convertible Senior Notes Due 2032 (included in Exhibit 2.44)](baba-ex2_44.htm)\n\n2.46\n\n[Description of Securities Registered under Section 12 of the U.S. Exchange Act](baba-ex2_46.htm)\n\n4.1(7)\n\n[Form of Indemnification Agreement between the Registrant and its directors and executive officers](https://www.sec.gov/Archives/edgar/data/1577552/000095017024063767/baba-ex4_1.htm)\n\n4.2(8)\n\n[Form of Employment Agreement between the Registrant and its executive officers](https://www.sec.gov/Archives/edgar/data/1577552/000119312514236860/d709111dex109.htm)\n\n206\n\n[Table of Contents](#toc_page)\n\n \n\nExhibit Number\n\nDescription of Document\n\n4.3(9)\n\n[Second Amended and Restated 2014 Post‑IPO Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1577552/000110465922082622/baba-20220331xex4d5.htm)\n\n4.4(10)\n\n[2024 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1577552/000110465924119963/tm2428566d1_ex10-1.htm)\n\n4.5(11)\n\n[2024 Equity Incentive Plan (Existing Shares)](https://www.sec.gov/Archives/edgar/data/1577552/000110465925050167/tm2515071d1_ex10-2.htm)\n\n4.6\n\n[Schedules of Material Differences of Contractual Arrangements of Representative Variable Interest Entities of the Registrant](baba-ex4_6.htm)\n\n4.7(4)\n\n[English translation of Loan Agreement, between Hangzhou Zhenxi Investment Management Co., Ltd. and Zhejiang Tmall Technology Co., Ltd., dated January 10, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-4_26.htm)\n\n4.8(4)\n\n[English translation of Exclusive Call Option Agreement entered into by and among Hangzhou Zhenxi Investment Management Co., Ltd., Zhejiang Tmall Technology Co., Ltd. and Zhejiang Tmall Network Co., Ltd., dated January 10, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-4_27.htm)\n\n4.9(4)\n\n[English translation of Shareholder’s Voting Rights Proxy Agreement entered into by and among Hangzhou Zhenxi Investment Management Co., Ltd., Zhejiang Tmall Technology Co., Ltd. and Zhejiang Tmall Network Co., Ltd., dated January 10, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-4_28.htm)\n\n4.10(4)\n\n[English translation of Equity Pledge Agreement entered into by and among Hangzhou Zhenxi Investment Management Co., Ltd., Zhejiang Tmall Technology Co., Ltd. and Zhejiang Tmall Network Co., Ltd., dated January 10, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-4_29.htm)\n\n4.11(4)\n\n[English translation of Exclusive Services Agreement entered into between Zhejiang Tmall Network Co., Ltd. and Zhejiang Tmall Technology Co., Ltd., dated January 10, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000104746918005257/a2235254zex-4_30.htm)\n\n4.12(8)\n\n[Share and Asset Purchase Agreement by and among the Registrant, Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (currently known as Ant Group), Yahoo! Inc., SoftBank Corp. and the other Parties named therein, dated August 12, 2014](https://www.sec.gov/Archives/edgar/data/1577552/000119312514322604/d709111dex1037.htm)\n\n4.13(12)\n\n[Amendment to Share and Asset Purchase Agreement by and among the Registrant, Ant Small and Micro Financial Services Group Co., Ltd. (currently known as Ant Group), SoftBank Group Corp., Jack Ma, Joseph C. Tsai, and the other Parties named therein, dated February 1, 2018](https://www.sec.gov/Archives/edgar/data/1577552/000110465918006211/a18-5188_1ex4d1.htm)\n\n4.14(13)\n\n[Second Amendment to Share and Asset Purchase Agreement by and among the Registrant, Ant Small and Micro Financial Services Group Co., Ltd. (currently known as Ant Group) and SoftBank Group Corp., dated September 23, 2019](https://www.sec.gov/Archives/edgar/data/1577552/000104746919006267/a2240026zex-10_1.htm)\n\n4.15(14)\n\n[Third Amendment to Share and Asset Purchase Agreement by and among the Registrant, Ant Group Co., Ltd., SoftBank Group Corp. and the other parties named therein, dated August 24, 2020](https://www.sec.gov/Archives/edgar/data/1577552/000110465920098136/a20-29339_3ex4d1.htm)\n\n4.16(9)\n\n[Fourth Amendment to Share and Asset Purchase Agreement by and among the Registrant, Ant Group Co., Ltd., SoftBank Group Corp. and the other parties named therein, dated July 25, 2022](https://www.sec.gov/Archives/edgar/data/1577552/000110465922082622/baba-20220331xex4d31.htm)\n\n4.17(9)\n\n[Amended and Restated Commercial Agreement by and among the Registrant, Ant Group Co., Ltd. and Alipay.com Co., Ltd., dated July 25, 2022](https://www.sec.gov/Archives/edgar/data/1577552/000110465922082622/baba-20220331xex4d32.htm)\n\n4.18(13)\n\n[Second Amended and Restated Intellectual Property License and Software Technology Services Agreement by and among the Registrant, Ant Small and Micro Financial Services Group Co., Ltd. (currently known as Ant Group) and Alipay.com Co., Ltd., dated September 23, 2019](https://www.sec.gov/Archives/edgar/data/1577552/000104746919006267/a2240026zex-10_2.htm)\n\n4.19(13)\n\n[Cross License Agreement by and between the Registrant and Ant Small and Micro Financial Services Group Co., Ltd. (currently known as Ant Group), dated September 23, 2019](https://www.sec.gov/Archives/edgar/data/1577552/000104746919006267/a2240026zex-10_3.htm)\n\n4.20†\n\n[Fourth Amendment and Restatement Agreement, dated September 26, 2025, in respect of a US$4,000,000,000 Facility Agreement dated March 9, 2016](baba-ex4_20.htm)\n\n \n\n207\n\n[Table of Contents](#toc_page)\n\n \n\nExhibit Number\n\nDescription of Document\n\n4.21†\n\n[Third Amendment and Restatement Agreement, dated September 26, 2025, in respect of a US$6,500,000,000 Facility Agreement dated April 7, 2017](baba-ex4_21.htm)\n\n \n\n4.22(7)†\n\n[Second Amendment and Restatement Agreement, dated January 4, 2024, in respect of a HK$7,653,750,000 Facility Agreement, dated May 17, 2019, between Alibaba Group Services Limited, as Guarantor, and the other parties named therein](https://www.sec.gov/Archives/edgar/data/1577552/000095017024063767/baba-ex4_21.htm)\n\n \n\n8.1\n\n[List of Subsidiaries and Consolidated Entities of the Registrant](baba-ex8_1.htm)\n\n11.1(3)\n\n[Code of Ethics of the Registrant](https://www.sec.gov/Archives/edgar/data/1577552/000110465922082622/baba-20220331xex11d1.htm)\n\n11.2\n\n[Insider Trading Policy](baba-ex11_2.htm)\n\n12.1\n\n[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002](baba-ex12_1.htm)\n\n12.2\n\n[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002](baba-ex12_2.htm)\n\n13.1(16)\n\n[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002](baba-ex13_1.htm)\n\n13.2(16)\n\n[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002](baba-ex13_2.htm)\n\n15.1\n\n[Consent of PricewaterhouseCoopers Zhong Tian LLP — Independent Registered Public Accounting Firm](baba-ex15_1.htm)\n\n15.2\n\n[Consent of Fangda Partners](baba-ex15_2.htm)\n\n15.3\n\n[Consent of Maples and Calder (Hong Kong) LLP](baba-ex15_3.htm)\n\n97.1(7)\n\n[Incentive Compensation Clawback Policy](https://www.sec.gov/Archives/edgar/data/1577552/000095017024063767/baba-ex97_1.htm)\n\n101.INS\n\nInline XBRL Instance Document-the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document\n\n101.SCH\n\nInline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents\n\n104\n\nCover Page formatted as Inline XBRL and contained in Exhibit 101\n\n \n\n(1)\nPreviously filed on Form 6-K, dated August 22, 2024 and incorporated herein by reference.\n\n(2)\nPreviously filed with the Registration Statement on Form F‑6 (File No. 333‑231579), dated May 17, 2019 and incorporated herein by reference.\n\n(3)\nPreviously filed with our Annual Report on Form 20‑F for the Fiscal Year Ended on March 31, 2015 (File No. 001‑36614), filed on June 25, 2015 and incorporated herein by reference.\n\n(4)\nPreviously filed with our Annual Report on Form 20‑F for the Fiscal Year Ended on March 31, 2018 (File No. 001‑36614), filed on July 27, 2018 and incorporated herein by reference.\n\n(5)\nPreviously filed with our Annual Report on Form 20-F for the Fiscal Year Ended on March 31, 2021 (File No. 001-36614), filed on July 27, 2021 and incorporated herein by reference.\n\n(6)\nPreviously filed with our Annual Report on Form 20-F for the Fiscal Year Ended on March 31, 2025 (File No. 001‑36614), filed on June 26, 2025 and incorporated herein by reference.\n\n(7)\nPreviously filed with our Annual Report on Form 20-F for the Fiscal Year Ended on March 31, 2024 (File No. 001-36614), filed on May 23, 2024 and incorporated herein by reference.\n\n(8)\nPreviously filed with the Registration Statement on Form F‑1 (File No. 333‑195736), initially filed on May 6, 2014 and incorporated herein by reference.\n\n208\n\n[Table of Contents](#toc_page)\n\n \n\n(9)\nPreviously filed with our Annual Report on Form 20‑F for the Fiscal Year Ended on March 31, 2022 (File No. 001‑36614), filed on July 26, 2022 and incorporated herein by reference.\n\n(10)\nPreviously filed with the Registration Statement on Form S-8 (File No. 333-283290), filed on November 18, 2024 and incorporated herein by reference.\n\n(11)\nPreviously filed with the Registration Statement on Form S-8 (File No. 333-287378), filed on May 19, 2025 and incorporated herein by reference.\n\n(12)\nPreviously filed on Form 6‑K, dated February 2, 2018 and incorporated herein by reference.\n\n(13)\nPreviously filed with the Registration Statement on Form F-3 (File No. 333-234662), dated November 13, 2019 and incorporated herein by reference.\n\n(14)\nPreviously filed on Form 6-K, dated August 25, 2020 and incorporated herein by reference.\n\n(15)\nPreviously filed with our Annual Report on Form 20-F for the Fiscal Year Ended on March 31, 2023 (File No. 001-36614), filed on July 21, 2023 and incorporated herein by reference.\n\n(16)\nFurnished with this annual report on Form 20‑F.\n\n(17)\nPreviously filed with the Registration Statement on Form F-4 (File No. 333-288794), filed on July 21, 2025 and incorporated herein by reference.\n\n† Portions of this exhibit have been omitted in accordance with Form 20-F's Instructions as to Exhibits.\n\n209\n\n[Table of Contents](#toc_page)\n\n \n\nSIGNATURES\n\nThe registrant hereby certifies that it meets all of the requirements for filing on Form 20‑F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.\n\nAlibaba Group Holding Limited\n\n \n\n \n\n \n\n \n\nBy:\n\n/s/ Eddie Yongming WU\n\n \n\nName:\n\nEddie Yongming WU\n\n \n\nTitle:\n\nChief Executive Officer\n\nDate: May 20, 2026\n\n \n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nINDEX TO FINANCIAL STATEMENTS\n\n \n\nPage\n\nReport of Independent Registered Public Accounting Firm for the Years Ended March 31, 2024, 2025 and 2026 (PCAOB ID 1424)\n\nF-2\n\n[Consolidated Income Statements for the Years Ended March 31, 2024, 2025 and 2026](#consolidated_income_statements)\n\nF-5\n\n[Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2024, 2025 and 2026](#statements_of_comprehensive_income)\n\nF-6\n\n[Consolidated Balance Sheets as of March 31, 2025 and 2026](#consolidated_balance_sheets)\n\nF-7\n\n[Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended March 31, 2024, 2025 and 2026](#changes_in_shareholders_equity)\n\nF-9\n\n[Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2025 and 2026](#consolidated_statements_of_cash_flows)\n\nF-12\n\nNotes to Consolidated Financial Statements\n\nF-15\n\n15\n\nF-1\n\n[Table of Contents](#toc_page)\n\n \n\nReport of Independent Registered Public Accounting Firm\n\n \n\n \n\nTo the Board of Directors and Shareholders of Alibaba Group Holding Limited\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\n \n\nWe have audited the accompanying consolidated balance sheets of Alibaba Group Holding Limited and its subsidiaries (the “Company”) as of March 31, 2026 and 2025, and the related consolidated income statements, consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows, for each of the three years in the period ended March 31, 2026, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\n \n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nF-2\n\n[Table of Contents](#toc_page)\n\n \n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nImpairment assessment on goodwill relating to two of the reporting units\n\nAs described in Note 2(y) and Note 17 to the consolidated financial statements, the Company’s consolidated goodwill balance was RMB247,378 million as of March 31, 2026, and the Company recorded impairment losses of RMB9,515 million during the year ended March 31, 2026. Management evaluates goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. This evaluation requires management to estimate the fair value of the reporting units. During the year ended March 31, 2026, management performed quantitative impairment tests on goodwill relating to two of the reporting units. The fair value of each was determined using a discounted cash flows analysis and assumptions including the future growth rates and the weighted average cost of capital. No impairment charge was recorded on the goodwill relating to one reporting unit (which was previously under the Hujing Digital Media and Entertainment Group segment, and was reclassified to All others starting from the quarter ended June 30, 2025), and an impairment charge of RMB9,515 million was recorded on the goodwill relating to the other reporting unit as a result of the impairment test.\n\nThe principal considerations for our determination that performing procedures relating to the impairment assessment on goodwill relating to the two reporting units is a critical audit matter are the significant judgments made and estimations used by management when determining the fair value of each of the two reporting units, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the future growth rates and the weighted average cost of capital. In addition, the audit effort involved the use of professionals with specialized skill and knowledge.\n\nF-3\n\n[Table of Contents](#toc_page)\n\n \n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s impairment assessment on goodwill relating to the two reporting units, including controls relating to the determination of the fair value of each of the two reporting units. These procedures also included, among others, testing management’s process for determining the fair value of each of the two reporting units, which included (i) evaluating the appropriateness of the valuation method; (ii) testing the completeness, mathematical accuracy and relevance of the key underlying data used in the valuation; and (iii) evaluating the reasonableness of the significant assumptions related to the future growth rates and the weighted average cost of capital used in the valuation by considering (i) the current and past performance; (ii) the weighted average cost of capital of comparable businesses; and (iii) the consistency with external market, economic and industry data. Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the valuation method, and the reasonableness of the future growth rates for terminal values and the weighted average cost of capital used in the valuation.\n\n \n\n \n\n \n\n/s/ PricewaterhouseCoopers Zhong Tian LLP\n\nShanghai, the People’s Republic of China\n\nMay 20, 2026\n\n \n\nWe have served as the Company’s auditor since 2023.\n\nF-4\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED INCOME STATEMENTS\n\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n \n\n \n\n(in millions, except per share data)\n\n \n\nNotes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n5, 25\n\n \n\n \n\n941,168\n\n \n\n \n\n \n\n996,347\n\n \n\n \n\n \n\n1,023,670\n\n \n\n \n\n \n\n148,401\n\n \n\nCost of revenue\n\n25\n\n \n\n \n\n(586,323\n\n)\n\n \n\n \n\n(598,285\n\n)\n\n \n\n \n\n(616,136\n\n)\n\n \n\n \n\n(89,321\n\n)\n\nProduct development expenses\n\n25\n\n \n\n \n\n(52,256\n\n)\n\n \n\n \n\n(57,151\n\n)\n\n \n\n \n\n(66,533\n\n)\n\n \n\n \n\n(9,645\n\n)\n\nSales and marketing expenses\n\n25\n\n \n\n \n\n(115,141\n\n)\n\n \n\n \n\n(144,021\n\n)\n\n \n\n \n\n(245,023\n\n)\n\n \n\n \n\n(35,521\n\n)\n\nGeneral and administrative expenses\n\n25\n\n \n\n \n\n(41,985\n\n)\n\n \n\n \n\n(44,239\n\n)\n\n \n\n \n\n(33,082\n\n)\n\n \n\n \n\n(4,796\n\n)\n\nAmortization and impairment of\n    intangible assets\n\n \n\n \n\n \n\n(21,592\n\n)\n\n \n\n \n\n(6,336\n\n)\n\n \n\n \n\n(5,079\n\n)\n\n \n\n \n\n(736\n\n)\n\nImpairment of goodwill\n\n17\n\n \n\n \n\n(10,521\n\n)\n\n \n\n \n\n(6,171\n\n)\n\n \n\n \n\n(9,515\n\n)\n\n \n\n \n\n(1,380\n\n)\n\nOther gains, net\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n761\n\n \n\n \n\n \n\n1,848\n\n \n\n \n\n \n\n268\n\n \n\nIncome from operations\n\n \n\n \n\n \n\n113,350\n\n \n\n \n\n \n\n140,905\n\n \n\n \n\n \n\n50,150\n\n \n\n \n\n \n\n7,270\n\n \n\nInterest and investment income, net\n\n \n\n \n\n \n\n(9,964\n\n)\n\n \n\n \n\n20,759\n\n \n\n \n\n \n\n87,512\n\n \n\n \n\n \n\n12,687\n\n \n\nInterest expense\n\n \n\n \n\n \n\n(7,947\n\n)\n\n \n\n \n\n(9,596\n\n)\n\n \n\n \n\n(9,793\n\n)\n\n \n\n \n\n(1,420\n\n)\n\nOther income, net\n\n25\n\n \n\n \n\n6,157\n\n \n\n \n\n \n\n3,387\n\n \n\n \n\n \n\n1,518\n\n \n\n \n\n \n\n220\n\n \n\nIncome before income tax and\n   share of results of equity\n   method investees\n\n \n\n \n\n \n\n101,596\n\n \n\n \n\n \n\n155,455\n\n \n\n \n\n \n\n129,387\n\n \n\n \n\n \n\n18,757\n\n \n\nIncome tax expenses\n\n7\n\n \n\n \n\n(22,529\n\n)\n\n \n\n \n\n(35,445\n\n)\n\n \n\n \n\n(30,045\n\n)\n\n \n\n \n\n(4,356\n\n)\n\nShare of results of equity\n   method investees\n\n \n\n \n\n \n\n(7,735\n\n)\n\n \n\n \n\n5,966\n\n \n\n \n\n \n\n2,785\n\n \n\n \n\n \n\n404\n\n \n\nNet income\n\n \n\n \n\n \n\n71,332\n\n \n\n \n\n \n\n125,976\n\n \n\n \n\n \n\n102,127\n\n \n\n \n\n \n\n14,805\n\n \n\nNet loss attributable to\n   noncontrolling interests\n\n \n\n \n\n \n\n8,677\n\n \n\n \n\n \n\n4,133\n\n \n\n \n\n \n\n1,465\n\n \n\n \n\n \n\n213\n\n \n\nNet income attributable to\n   Alibaba Group Holding\n   Limited\n\n \n\n \n\n \n\n80,009\n\n \n\n \n\n \n\n130,109\n\n \n\n \n\n \n\n103,592\n\n \n\n \n\n \n\n15,018\n\n \n\n(Accretion) Reversal of accretion of mezzanine equity\n\n \n\n \n\n \n\n(268\n\n)\n\n \n\n \n\n(639\n\n)\n\n \n\n \n\n2,312\n\n \n\n \n\n \n\n335\n\n \n\nNet income attributable to\n   ordinary shareholders\n\n \n\n \n\n \n\n79,741\n\n \n\n \n\n \n\n129,470\n\n \n\n \n\n \n\n105,904\n\n \n\n \n\n \n\n15,353\n\n \n\nEarnings per share attributable\n   to ordinary shareholders\n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n      Basic\n\n \n\n \n\n \n\n3.95\n\n \n\n \n\n \n\n6.89\n\n \n\n \n\n \n\n5.70\n\n \n\n \n\n \n\n0.83\n\n \n\n      Diluted\n\n \n\n \n\n \n\n3.91\n\n \n\n \n\n \n\n6.70\n\n \n\n \n\n \n\n5.50\n\n \n\n \n\n \n\n0.80\n\n \n\nEarnings per ADS attributable to\n   ordinary shareholders (one\n   ADS equals eight ordinary\n   shares)\n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n      Basic\n\n \n\n \n\n \n\n31.61\n\n \n\n \n\n \n\n55.12\n\n \n\n \n\n \n\n45.63\n\n \n\n \n\n \n\n6.61\n\n \n\n      Diluted\n\n \n\n \n\n \n\n31.24\n\n \n\n \n\n \n\n53.59\n\n \n\n \n\n \n\n44.00\n\n \n\n \n\n \n\n6.38\n\n \n\nWeighted average number of\n   shares used in computing\n   earnings per share (million\n   shares)\n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n      Basic\n\n \n\n \n\n \n\n20,182\n\n \n\n \n\n \n\n18,791\n\n \n\n \n\n \n\n18,568\n\n \n\n \n\n \n\n \n\n      Diluted\n\n \n\n \n\n \n\n20,359\n\n \n\n \n\n \n\n19,318\n\n \n\n \n\n \n\n19,235\n\n \n\n \n\n \n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-5\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n \n\n(in millions)\n\n \n\nNet income\n\n \n\n \n\n \n\n71,332\n\n \n\n \n\n \n\n125,976\n\n \n\n \n\n \n\n102,127\n\n \n\n \n\n \n\n14,805\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther comprehensive income (loss):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n- Foreign currency translation:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized gains (losses), net of tax\n\n \n\n \n\n \n\n13,502\n\n \n\n \n\n \n\n(512\n\n)\n\n \n\n \n\n(16,256\n\n)\n\n \n\n \n\n(2,356\n\n)\n\n- Share of other comprehensive income (loss) of\n    equity method investees:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized gains (losses)\n\n \n\n \n\n \n\n980\n\n \n\n \n\n \n\n239\n\n \n\n \n\n \n\n(319\n\n)\n\n \n\n \n\n(46\n\n)\n\n- Interest rate swaps under hedge accounting and\n    others:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized (losses) gains\n\n \n\n \n\n \n\n(97\n\n)\n\n \n\n \n\n82\n\n \n\n \n\n \n\n(238\n\n)\n\n \n\n \n\n(35\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n \n\n14,385\n\n \n\n \n\n \n\n(191\n\n)\n\n \n\n \n\n(16,813\n\n)\n\n \n\n \n\n(2,437\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal comprehensive income\n\n \n\n \n\n \n\n85,717\n\n \n\n \n\n \n\n125,785\n\n \n\n \n\n \n\n85,314\n\n \n\n \n\n \n\n12,368\n\n \n\nTotal comprehensive loss attributable to\n   noncontrolling interests\n\n \n\n \n\n \n\n8,364\n\n \n\n \n\n \n\n4,183\n\n \n\n \n\n \n\n2,765\n\n \n\n \n\n \n\n401\n\n \n\nTotal comprehensive income attributable to\n   ordinary shareholders\n\n \n\n \n\n \n\n94,081\n\n \n\n \n\n \n\n129,968\n\n \n\n \n\n \n\n88,079\n\n \n\n \n\n \n\n12,769\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-6\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED BALANCE SHEETS\n\n \n\n \n\n \n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n \n\n \n\n \n\n(in millions)\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n2(p)\n\n \n\n \n\n \n\n145,487\n\n \n\n \n\n \n\n131,530\n\n \n\n \n\n \n\n19,068\n\n \n\nShort-term investments\n\n \n\n2(q)\n\n \n\n \n\n \n\n228,826\n\n \n\n \n\n \n\n155,310\n\n \n\n \n\n \n\n22,515\n\n \n\nRestricted cash and escrow receivables\n\n \n\n \n\n10\n\n \n\n \n\n \n\n43,781\n\n \n\n \n\n \n\n42,038\n\n \n\n \n\n \n\n6,094\n\n \n\nEquity securities and other investments\n\n \n\n \n\n11\n\n \n\n \n\n \n\n53,780\n\n \n\n \n\n \n\n30,054\n\n \n\n \n\n \n\n4,357\n\n \n\nPrepayments, receivables and other assets\n\n \n\n \n\n13\n\n \n\n \n\n \n\n202,175\n\n \n\n \n\n \n\n251,837\n\n \n\n \n\n \n\n36,509\n\n \n\nTotal current assets\n\n \n\n \n\n \n\n \n\n \n\n674,049\n\n \n\n \n\n \n\n610,769\n\n \n\n \n\n \n\n88,543\n\n \n\nEquity securities and other investments\n\n \n\n \n\n11\n\n \n\n \n\n \n\n356,818\n\n \n\n \n\n \n\n449,942\n\n \n\n \n\n \n\n65,228\n\n \n\nPrepayments, receivables and other assets\n\n \n\n \n\n13\n\n \n\n \n\n \n\n83,431\n\n \n\n \n\n \n\n94,996\n\n \n\n \n\n \n\n13,772\n\n \n\nInvestments in equity method investees\n\n \n\n \n\n14\n\n \n\n \n\n \n\n210,169\n\n \n\n \n\n \n\n206,803\n\n \n\n \n\n \n\n29,980\n\n \n\nProperty and equipment, net\n\n \n\n \n\n15\n\n \n\n \n\n \n\n203,348\n\n \n\n \n\n \n\n282,699\n\n \n\n \n\n \n\n40,983\n\n \n\nIntangible assets, net\n\n \n\n \n\n16\n\n \n\n \n\n \n\n20,911\n\n \n\n \n\n \n\n16,983\n\n \n\n \n\n \n\n2,462\n\n \n\nGoodwill\n\n \n\n \n\n17\n\n \n\n \n\n \n\n255,501\n\n \n\n \n\n \n\n247,378\n\n \n\n \n\n \n\n35,862\n\n \n\nTotal assets\n\n \n\n \n\n \n\n \n\n \n\n1,804,227\n\n \n\n \n\n \n\n1,909,570\n\n \n\n \n\n \n\n276,830\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities, mezzanine equity and shareholders’ equity\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent bank borrowings\n\n \n\n \n\n21\n\n \n\n \n\n \n\n22,562\n\n \n\n \n\n \n\n28,224\n\n \n\n \n\n \n\n4,092\n\n \n\nIncome tax payable\n\n \n\n \n\n \n\n \n\n \n\n11,638\n\n \n\n \n\n \n\n10,630\n\n \n\n \n\n \n\n1,541\n\n \n\nAccrued expenses, accounts payable and other liabilities\n\n \n\n \n\n19\n\n \n\n \n\n \n\n332,537\n\n \n\n \n\n \n\n359,893\n\n \n\n \n\n \n\n52,173\n\n \n\nMerchant deposits\n\n \n\n2(ac)\n\n \n\n \n\n \n\n274\n\n \n\n \n\n \n\n236\n\n \n\n \n\n \n\n34\n\n \n\nDeferred revenue and customer advances\n\n \n\n \n\n18\n\n \n\n \n\n \n\n68,335\n\n \n\n \n\n \n\n77,415\n\n \n\n \n\n \n\n11,223\n\n \n\nTotal current liabilities\n\n \n\n \n\n \n\n \n\n \n\n435,346\n\n \n\n \n\n \n\n476,398\n\n \n\n \n\n \n\n69,063\n\n \n\nDeferred revenue\n\n \n\n \n\n18\n\n \n\n \n\n \n\n4,536\n\n \n\n \n\n \n\n4,885\n\n \n\n \n\n \n\n708\n\n \n\nDeferred tax liabilities\n\n \n\n \n\n7\n\n \n\n \n\n \n\n48,454\n\n \n\n \n\n \n\n46,060\n\n \n\n \n\n \n\n6,678\n\n \n\nNon-current bank borrowings\n\n \n\n \n\n21\n\n \n\n \n\n \n\n49,909\n\n \n\n \n\n \n\n47,450\n\n \n\n \n\n \n\n6,879\n\n \n\nNon-current unsecured senior notes\n\n \n\n \n\n22\n\n \n\n \n\n \n\n122,398\n\n \n\n \n\n \n\n117,485\n\n \n\n \n\n \n\n17,032\n\n \n\nNon-current convertible unsecured senior notes\n\n \n\n \n\n23\n\n \n\n \n\n \n\n35,834\n\n \n\n \n\n \n\n55,861\n\n \n\n \n\n \n\n8,098\n\n \n\nNon-current exchangeable bonds\n\n \n\n \n\n24\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,976\n\n \n\n \n\n \n\n1,591\n\n \n\nOther liabilities\n\n \n\n \n\n19\n\n \n\n \n\n \n\n17,644\n\n \n\n \n\n \n\n24,185\n\n \n\n \n\n \n\n3,506\n\n \n\nTotal liabilities\n\n \n\n \n\n \n\n \n\n \n\n714,121\n\n \n\n \n\n \n\n783,300\n\n \n\n \n\n \n\n113,555\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-7\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED BALANCE SHEETS (CONTINUED)\n\n \n\n \n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n \n\n \n\n(in millions)\n\n \n\n \n\nNotes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommitments and contingencies\n\n \n\n27, 28\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMezzanine equity\n\n \n\n \n\n \n\n \n\n11,713\n\n \n\n \n\n \n\n7,845\n\n \n\n \n\n \n\n1,137\n\n \n\nShareholders’ equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOrdinary shares, US$0.000003125 par value; 32,000,000,000\n   shares authorized as of March 31, 2025 and 2026;\n   18,474,235,708 and 18,580,374,278 shares issued and\n   outstanding as of March 31, 2025 and 2026 respectively\n\n \n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n—\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n \n\n \n\n381,379\n\n \n\n \n\n \n\n385,086\n\n \n\n \n\n \n\n55,826\n\n \n\nTreasury shares, at cost\n\n \n\n2(af)\n\n \n\n \n\n(36,329\n\n)\n\n \n\n \n\n(36,141\n\n)\n\n \n\n \n\n(5,239\n\n)\n\nStatutory reserves\n\n \n\n2(ag)\n\n \n\n \n\n15,936\n\n \n\n \n\n \n\n16,628\n\n \n\n \n\n \n\n2,410\n\n \n\nAccumulated other comprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCumulative translation adjustments\n\n \n\n \n\n \n\n \n\n3,286\n\n \n\n \n\n \n\n(13,404\n\n)\n\n \n\n \n\n(1,943\n\n)\n\nUnrealized gains on interest rate swaps and others\n\n \n\n \n\n \n\n \n\n107\n\n \n\n \n\n \n\n334\n\n \n\n \n\n \n\n48\n\n \n\nRetained earnings\n\n \n\n \n\n \n\n \n\n645,478\n\n \n\n \n\n \n\n708,382\n\n \n\n \n\n \n\n102,694\n\n \n\nTotal shareholders’ equity\n\n \n\n \n\n \n\n \n\n1,009,858\n\n \n\n \n\n \n\n1,060,886\n\n \n\n \n\n \n\n153,796\n\n \n\nNoncontrolling interests\n\n \n\n \n\n \n\n \n\n68,535\n\n \n\n \n\n \n\n57,539\n\n \n\n \n\n \n\n8,342\n\n \n\nTotal equity\n\n \n\n \n\n \n\n \n\n1,078,393\n\n \n\n \n\n \n\n1,118,425\n\n \n\n \n\n \n\n162,138\n\n \n\nTotal liabilities, mezzanine equity and equity\n\n \n\n \n\n \n\n \n\n1,804,227\n\n \n\n \n\n \n\n1,909,570\n\n \n\n \n\n \n\n276,830\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-8\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccumulated other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOrdinary shares\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ncomprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ngains (losses) on\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdditional\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCumulative\n\n \n\n \n\ninterest\n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\npaid-in\n\n \n\n \n\nTreasury\n\n \n\n \n\nSubscription\n\n \n\n \n\nStatutory\n\n \n\n \n\ntranslation\n\n \n\n \n\nrate swaps\n\n \n\n \n\nRetained\n\n \n\n \n\nshareholders’\n\n \n\n \n\nNoncontrolling\n\n \n\n \n\nTotal\n\n \n\n \n\nShare\n\n \n\n \n\nAmount\n\n \n\n \n\ncapital\n\n \n\n \n\nshares\n\n \n\n \n\nreceivables\n\n \n\n \n\nreserves\n\n \n\n \n\nadjustments\n\n \n\n \n\nand others\n\n \n\n \n\nearnings\n\n \n\n \n\nequity\n\n \n\n \n\ninterests\n\n \n\n \n\nequity\n\n \n\n \n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions, except per share data)\n\n \n\nBalance as of April 1, 2023\n\n \n\n \n\n20,526,017,712\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n416,880\n\n \n\n \n\n \n\n(28,763\n\n)\n\n \n\n \n\n(49\n\n)\n\n \n\n \n\n12,977\n\n \n\n \n\n \n\n(10,476\n\n)\n\n \n\n \n\n59\n\n \n\n \n\n \n\n599,028\n\n \n\n \n\n \n\n989,657\n\n \n\n \n\n \n\n123,406\n\n \n\n \n\n \n\n1,113,063\n\n \n\nForeign currency translation adjustment,\n   net of tax\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n13,006\n\n \n\n \n\n \n\n2\n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,005\n\n \n\n \n\n \n\n494\n\n \n\n \n\n \n\n13,499\n\n \n\nShare of additional paid-in capital and other\n   comprehensive income of equity\n   method investees\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(298\n\n)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n981\n\n \n\n \n\n \n\n(1\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n682\n\n \n\n \n\n—\n\n \n\n \n\n \n\n682\n\n \n\nChange in fair value of interest rate swaps\n   under hedge accounting and others\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(97\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(97\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(97\n\n)\n\nNet income for the year\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n80,009\n\n \n\n \n\n \n\n80,009\n\n \n\n \n\n \n\n(8,858\n\n)\n\n \n\n \n\n71,151\n\n \n\nAcquisition of subsidiaries\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n98\n\n \n\n \n\n \n\n98\n\n \n\nDeconsolidation of subsidiaries\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n124\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n124\n\n \n\n \n\n \n\n24\n\n \n\n \n\n \n\n148\n\n \n\nIssuance of shares, including vesting of RSUs\n   and early exercised options and exercise\n   of share options\n\n \n\n \n\n192,305,904\n\n \n\n \n\n—\n\n \n\n \n\n \n\n842\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n842\n\n \n\n \n\n—\n\n \n\n \n\n \n\n842\n\n \n\nRepurchase and retirement of ordinary shares\n\n \n\n \n\n(1,249,196,660\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(29,313\n\n)\n\n \n\n \n\n1,079\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(60,842\n\n)\n\n \n\n \n\n(89,076\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(89,076\n\n)\n\nTransactions with noncontrolling interests\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,375\n\n)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,375\n\n)\n\n \n\n \n\n(5,349\n\n)\n\n \n\n \n\n(6,724\n\n)\n\nAmortization of compensation cost\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n11,531\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n11,531\n\n \n\n \n\n \n\n5,862\n\n \n\n \n\n \n\n17,393\n\n \n\nDeclaration of dividends\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(18,542\n\n)\n\n \n\n \n\n(18,542\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(18,542\n\n)\n\nAppropriation to statutory reserves\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,756\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,756\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOthers\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(268\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n52\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(216\n\n)\n\n \n\n \n\n(350\n\n)\n\n \n\n \n\n(566\n\n)\n\nBalance as of March 31, 2024\n\n \n\n \n\n19,469,126,956\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n397,999\n\n \n\n \n\n \n\n(27,684\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n14,733\n\n \n\n \n\n \n\n3,635\n\n \n\n \n\n \n\n(37\n\n)\n\n \n\n \n\n597,897\n\n \n\n \n\n \n\n986,544\n\n \n\n \n\n \n\n115,327\n\n \n\n \n\n \n\n1,101,871\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-9\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccumulated other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOrdinary shares\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ncomprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ngains (losses) on\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdditional\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCumulative\n\n \n\n \n\ninterest\n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\npaid-in\n\n \n\n \n\nTreasury\n\n \n\n \n\nStatutory\n\n \n\n \n\ntranslation\n\n \n\n \n\nrate swaps\n\n \n\n \n\nRetained\n\n \n\n \n\nshareholders’\n\n \n\n \n\nNoncontrolling\n\n \n\n \n\nTotal\n\n \n\n \n\nShare\n\n \n\n \n\nAmount\n\n \n\n \n\ncapital\n\n \n\n \n\nshares\n\n \n\n \n\nreserves\n\n \n\n \n\nadjustments\n\n \n\n \n\nand others\n\n \n\n \n\nearnings\n\n \n\n \n\nequity\n\n \n\n \n\ninterests\n\n \n\n \n\nequity\n\n \n\n \n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions, except per share data)\n\n \n\nBalance as of April 1, 2024\n\n \n\n \n\n19,469,126,956\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n397,999\n\n \n\n \n\n \n\n(27,684\n\n)\n\n \n\n \n\n14,733\n\n \n\n \n\n \n\n3,635\n\n \n\n \n\n \n\n(37\n\n)\n\n \n\n \n\n597,897\n\n \n\n \n\n \n\n986,544\n\n \n\n \n\n \n\n115,327\n\n \n\n \n\n \n\n1,101,871\n\n \n\nForeign currency translation adjustment,\n   net of tax\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(183\n\n)\n\n \n\n \n\n1\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(182\n\n)\n\n \n\n \n\n14\n\n \n\n \n\n \n\n(168\n\n)\n\nShare of additional paid-in capital and other\n   comprehensive income of equity\n   method investees\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(53\n\n)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n178\n\n \n\n \n\n \n\n61\n\n \n\n \n\n—\n\n \n\n \n\n \n\n186\n\n \n\n \n\n—\n\n \n\n \n\n \n\n186\n\n \n\nChange in fair value of interest rate swaps\n   under hedge accounting and others\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n82\n\n \n\n \n\n—\n\n \n\n \n\n \n\n82\n\n \n\n \n\n—\n\n \n\n \n\n \n\n82\n\n \n\nNet investment hedges\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(344\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(344\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(344\n\n)\n\nNet income for the year\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n130,109\n\n \n\n \n\n \n\n130,109\n\n \n\n \n\n \n\n(4,197\n\n)\n\n \n\n \n\n125,912\n\n \n\nAcquisition of subsidiaries\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n587\n\n \n\n \n\n \n\n587\n\n \n\nDeconsolidation of subsidiaries\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(16,251\n\n)\n\n \n\n \n\n(16,251\n\n)\n\nIssuance of shares, including vesting of RSUs\n   and early exercised options and exercise\n   of share options\n\n \n\n \n\n202,166,984\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8\n\n \n\nRepurchase and retirement of ordinary shares\n\n \n\n \n\n(1,197,058,232\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(25,020\n\n)\n\n \n\n \n\n(8,645\n\n)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(51,985\n\n)\n\n \n\n \n\n(85,650\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(85,650\n\n)\n\nTransactions with noncontrolling interests\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n794\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n794\n\n \n\n \n\n \n\n(25,629\n\n)\n\n \n\n \n\n(24,835\n\n)\n\nAmortization of compensation cost\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,518\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,518\n\n \n\n \n\n \n\n3,278\n\n \n\n \n\n \n\n13,796\n\n \n\nDeclaration of dividends\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(29,340\n\n)\n\n \n\n \n\n(29,340\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(29,340\n\n)\n\nCapped call transactions\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,612\n\n)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,612\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(4,612\n\n)\n\nAppropriation to statutory reserves\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,203\n\n \n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,203\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOthers\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,745\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,745\n\n \n\n \n\n \n\n(4,594\n\n)\n\n \n\n \n\n(2,849\n\n)\n\nBalance as of March 31, 2025\n\n \n\n \n\n18,474,235,708\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n381,379\n\n \n\n \n\n \n\n(36,329\n\n)\n\n \n\n \n\n15,936\n\n \n\n \n\n \n\n3,286\n\n \n\n \n\n \n\n107\n\n \n\n \n\n \n\n645,478\n\n \n\n \n\n \n\n1,009,858\n\n \n\n \n\n \n\n68,535\n\n \n\n \n\n \n\n1,078,393\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-10\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccumulated other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOrdinary shares\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ncomprehensive income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ngains (losses) on\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdditional\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCumulative\n\n \n\n \n\ninterest\n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\npaid-in\n\n \n\n \n\nTreasury\n\n \n\n \n\nStatutory\n\n \n\n \n\ntranslation\n\n \n\n \n\nrate swaps\n\n \n\n \n\nRetained\n\n \n\n \n\nshareholders’\n\n \n\n \n\nNoncontrolling\n\n \n\n \n\nTotal\n\n \n\n \n\nShare\n\n \n\n \n\nAmount\n\n \n\n \n\ncapital\n\n \n\n \n\nshares\n\n \n\n \n\nreserves\n\n \n\n \n\nadjustments\n\n \n\n \n\nand others\n\n \n\n \n\nearnings\n\n \n\n \n\nequity\n\n \n\n \n\ninterests\n\n \n\n \n\nequity\n\n \n\n \n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions, except per share data)\n\n \n\nBalance as of April 1, 2025\n\n \n\n \n\n18,474,235,708\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n381,379\n\n \n\n \n\n \n\n(36,329\n\n)\n\n \n\n \n\n15,936\n\n \n\n \n\n \n\n3,286\n\n \n\n \n\n \n\n107\n\n \n\n \n\n \n\n645,478\n\n \n\n \n\n \n\n1,009,858\n\n \n\n \n\n \n\n68,535\n\n \n\n \n\n \n\n1,078,393\n\n \n\nForeign currency translation adjustment, net of tax\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(11,397\n\n)\n\n \n\n \n\n10\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(11,387\n\n)\n\n \n\n \n\n(350\n\n)\n\n \n\n \n\n(11,737\n\n)\n\nShare of additional paid-in capital and other\n   comprehensive income of equity\n   method investees\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n295\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(774\n\n)\n\n \n\n \n\n455\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(24\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(24\n\n)\n\nChange in fair value of interest rate swaps\n   under hedge accounting and others\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(238\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(238\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(238\n\n)\n\nNet investment hedges\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,519\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,519\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,519\n\n)\n\nNet income for the year\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n103,592\n\n \n\n \n\n \n\n103,592\n\n \n\n \n\n \n\n(2,415\n\n)\n\n \n\n \n\n101,177\n\n \n\nAcquisition of subsidiaries\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n824\n\n \n\n \n\n \n\n824\n\n \n\nDeconsolidation of subsidiaries\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(139\n\n)\n\n \n\n \n\n(139\n\n)\n\nIssuance of shares, including vesting of RSUs\n   and early exercised options and exercise\n   of share options\n\n \n\n \n\n178,872,058\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,038\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,038\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,038\n\n \n\nRepurchase and retirement of ordinary shares\n\n \n\n \n\n(72,733,488\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,737\n\n)\n\n \n\n \n\n167\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5,965\n\n)\n\n \n\n \n\n(7,535\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(7,535\n\n)\n\nTransactions with noncontrolling interests\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(12,884\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(12,884\n\n)\n\n \n\n \n\n(2,911\n\n)\n\n \n\n \n\n(15,795\n\n)\n\nAmortization of compensation cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,213\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,213\n\n \n\n \n\n \n\n1,328\n\n \n\n \n\n \n\n11,541\n\n \n\nDeclaration of dividends\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(34,031\n\n)\n\n \n\n \n\n(34,031\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(34,031\n\n)\n\nCapped call transactions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,309\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,309\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,309\n\n)\n\nAppropriation to statutory reserves\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n692\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(692\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOthers\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,091\n\n \n\n \n\n \n\n21\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,112\n\n \n\n \n\n \n\n(7,333\n\n)\n\n \n\n \n\n779\n\n \n\nBalance as of March 31, 2026\n\n \n\n \n\n18,580,374,278\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n385,086\n\n \n\n \n\n \n\n(36,141\n\n)\n\n \n\n \n\n16,628\n\n \n\n \n\n \n\n(13,404\n\n)\n\n \n\n \n\n334\n\n \n\n \n\n \n\n708,382\n\n \n\n \n\n \n\n1,060,886\n\n \n\n \n\n \n\n57,539\n\n \n\n \n\n \n\n1,118,425\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-11\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n(in millions)\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n71,332\n\n \n\n \n\n \n\n125,976\n\n \n\n \n\n \n\n102,127\n\n \n\n \n\n \n\n14,805\n\n \n\nAdjustments to reconcile net income to net cash provided by\n   operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevaluation (gain) loss on previously held equity interest\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(628\n\n)\n\n \n\n \n\n99\n\n \n\n \n\n \n\n14\n\n \n\nLoss on disposals of equity method investees\n\n \n\n \n\n10\n\n \n\n \n\n \n\n27\n\n \n\n \n\n \n\n529\n\n \n\n \n\n \n\n77\n\n \n\nLoss (Gain) related to equity securities and other investments\n\n \n\n \n\n23,480\n\n \n\n \n\n \n\n(28,652\n\n)\n\n \n\n \n\n(66,089\n\n)\n\n \n\n \n\n(9,581\n\n)\n\nChange in fair value of other assets and liabilities\n\n \n\n \n\n(708\n\n)\n\n \n\n \n\n590\n\n \n\n \n\n \n\n(992\n\n)\n\n \n\n \n\n(144\n\n)\n\n(Gain) Loss on disposals of subsidiaries\n\n \n\n \n\n(1,550\n\n)\n\n \n\n \n\n21,509\n\n \n\n \n\n \n\n(8,387\n\n)\n\n \n\n \n\n(1,216\n\n)\n\nDepreciation and impairment of property and equipment, and\n   operating lease cost relating to land use rights\n\n \n\n \n\n26,640\n\n \n\n \n\n \n\n29,260\n\n \n\n \n\n \n\n37,067\n\n \n\n \n\n \n\n5,374\n\n \n\nAmortization of intangible assets and licensed copyrights\n\n \n\n \n\n17,864\n\n \n\n \n\n \n\n13,199\n\n \n\n \n\n \n\n10,051\n\n \n\n \n\n \n\n1,456\n\n \n\nEquity-settled share-based compensation expense\n\n \n\n \n\n18,546\n\n \n\n \n\n \n\n13,970\n\n \n\n \n\n \n\n11,180\n\n \n\n \n\n \n\n1,621\n\n \n\nImpairment of equity securities and other investments\n\n \n\n \n\n12,244\n\n \n\n \n\n \n\n8,801\n\n \n\n \n\n \n\n7,724\n\n \n\n \n\n \n\n1,120\n\n \n\nImpairment of goodwill, intangible assets and licensed copyrights\n\n \n\n \n\n22,610\n\n \n\n \n\n \n\n6,805\n\n \n\n \n\n \n\n11,244\n\n \n\n \n\n \n\n1,631\n\n \n\nGain on disposals of property and equipment\n\n \n\n \n\n(107\n\n)\n\n \n\n \n\n(784\n\n)\n\n \n\n \n\n(1,848\n\n)\n\n \n\n \n\n(268\n\n)\n\nShare of results of equity method investees\n\n \n\n \n\n7,735\n\n \n\n \n\n \n\n(5,966\n\n)\n\n \n\n \n\n(2,785\n\n)\n\n \n\n \n\n(404\n\n)\n\nDeferred income taxes\n\n \n\n \n\n(5,263\n\n)\n\n \n\n \n\n374\n\n \n\n \n\n \n\n(2,528\n\n)\n\n \n\n \n\n(366\n\n)\n\nAllowance for doubtful accounts\n\n \n\n \n\n3,509\n\n \n\n \n\n \n\n3,016\n\n \n\n \n\n \n\n1,368\n\n \n\n \n\n \n\n198\n\n \n\nChanges in assets and liabilities, net of effects of acquisitions and\n   disposals:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPrepayments, receivables and other assets, and long-term\n   licensed copyrights\n\n \n\n \n\n(37,621\n\n)\n\n \n\n \n\n(50,590\n\n)\n\n \n\n \n\n(67,931\n\n)\n\n \n\n \n\n(9,847\n\n)\n\nIncome tax payable\n\n \n\n \n\n(4,764\n\n)\n\n \n\n \n\n1,968\n\n \n\n \n\n \n\n(1,973\n\n)\n\n \n\n \n\n(286\n\n)\n\nAccrued expenses, accounts payable and other liabilities\n\n \n\n \n\n27,126\n\n \n\n \n\n \n\n25,873\n\n \n\n \n\n \n\n37,933\n\n \n\n \n\n \n\n5,499\n\n \n\nMerchant deposits\n\n \n\n \n\n(560\n\n)\n\n \n\n \n\n(12,463\n\n)\n\n \n\n \n\n(38\n\n)\n\n \n\n \n\n(6\n\n)\n\nDeferred revenue and customer advances\n\n \n\n \n\n2,070\n\n \n\n \n\n \n\n11,224\n\n \n\n \n\n \n\n9,462\n\n \n\n \n\n \n\n1,372\n\n \n\nNet cash provided by operating activities\n\n \n\n \n\n182,593\n\n \n\n \n\n \n\n163,509\n\n \n\n \n\n \n\n76,213\n\n \n\n \n\n \n\n11,049\n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDecrease in short-term investments, net\n\n \n\n \n\n71,426\n\n \n\n \n\n \n\n23,395\n\n \n\n \n\n \n\n42,235\n\n \n\n \n\n \n\n6,123\n\n \n\nIncrease in other treasury investments, net\n\n \n\n \n\n(64,392\n\n)\n\n \n\n \n\n(126,041\n\n)\n\n \n\n \n\n(12,687\n\n)\n\n \n\n \n\n(1,839\n\n)\n\nSettlement of forward exchange contracts, net\n\n \n\n \n\n658\n\n \n\n \n\n \n\n(335\n\n)\n\n \n\n \n\n229\n\n \n\n \n\n \n\n33\n\n \n\nAcquisitions of equity and debt securities, and others\n\n \n\n \n\n(15,240\n\n)\n\n \n\n \n\n(10,342\n\n)\n\n \n\n \n\n(63,753\n\n)\n\n \n\n \n\n(9,242\n\n)\n\nDisposals of equity and debt securities, and others\n\n \n\n \n\n21,966\n\n \n\n \n\n \n\n18,214\n\n \n\n \n\n \n\n80,685\n\n \n\n \n\n \n\n11,697\n\n \n\nAcquisitions of equity method investees\n\n \n\n \n\n(3,525\n\n)\n\n \n\n \n\n(3,822\n\n)\n\n \n\n \n\n(3,723\n\n)\n\n \n\n \n\n(540\n\n)\n\nDisposals of and distributions from equity method investees\n\n \n\n \n\n1,265\n\n \n\n \n\n \n\n1,520\n\n \n\n \n\n \n\n5,627\n\n \n\n \n\n \n\n816\n\n \n\nAcquisitions of:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLand use rights, property and equipment\n\n \n\n \n\n(32,087\n\n)\n\n \n\n \n\n(85,972\n\n)\n\n \n\n \n\n(126,063\n\n)\n\n \n\n \n\n(18,275\n\n)\n\nIntangible assets\n\n \n\n \n\n(842\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(874\n\n)\n\n \n\n \n\n(127\n\n)\n\nDisposals of property and equipment\n\n \n\n \n\n373\n\n \n\n \n\n \n\n2,428\n\n \n\n \n\n \n\n541\n\n \n\n \n\n \n\n78\n\n \n\nCash (paid) received for business combinations, net of cash acquired\n\n \n\n \n\n(2,204\n\n)\n\n \n\n \n\n353\n\n \n\n \n\n \n\n(1,212\n\n)\n\n \n\n \n\n(176\n\n)\n\nDeconsolidation and disposal of subsidiaries, net of cash proceeds\n\n \n\n \n\n699\n\n \n\n \n\n \n\n(5,077\n\n)\n\n \n\n \n\n11,421\n\n \n\n \n\n \n\n1,656\n\n \n\nLoans to employees, net of repayments\n\n \n\n \n\n79\n\n \n\n \n\n \n\n264\n\n \n\n \n\n \n\n238\n\n \n\n \n\n \n\n34\n\n \n\nNet cash used in investing activities\n\n \n\n \n\n(21,824\n\n)\n\n \n\n \n\n(185,415\n\n)\n\n \n\n \n\n(67,336\n\n)\n\n \n\n \n\n(9,762\n\n)\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-12\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nUS$\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(Note 2(a))\n\n \n\n \n\n(in millions)\n\n \n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIssuance of ordinary shares\n\n \n\n \n\n843\n\n \n\n \n\n \n\n10\n\n \n\n \n\n \n\n1,042\n\n \n\n \n\n \n\n151\n\n \n\nRepurchase of ordinary shares\n\n \n\n \n\n(88,745\n\n)\n\n \n\n \n\n(86,662\n\n)\n\n \n\n \n\n(7,638\n\n)\n\n \n\n \n\n(1,107\n\n)\n\nDividend distribution\n\n \n\n \n\n(17,946\n\n)\n\n \n\n \n\n(29,077\n\n)\n\n \n\n \n\n(33,732\n\n)\n\n \n\n \n\n(4,890\n\n)\n\nAcquisition of additional equity interests in non-wholly owned\n   subsidiaries\n\n \n\n \n\n(5,821\n\n)\n\n \n\n \n\n(21,949\n\n)\n\n \n\n \n\n(16,768\n\n)\n\n \n\n \n\n(2,431\n\n)\n\nDividends paid by non-wholly owned subsidiaries to\n   noncontrolling interests\n\n \n\n \n\n(546\n\n)\n\n \n\n \n\n(664\n\n)\n\n \n\n \n\n(1,317\n\n)\n\n \n\n \n\n(191\n\n)\n\nContingent consideration payments made after a business\n   combination and others\n\n \n\n \n\n(71\n\n)\n\n \n\n \n\n(197\n\n)\n\n \n\n \n\n(232\n\n)\n\n \n\n \n\n(34\n\n)\n\nCapital injection from noncontrolling interests\n\n \n\n \n\n1,577\n\n \n\n \n\n \n\n2,402\n\n \n\n \n\n \n\n349\n\n \n\n \n\n \n\n50\n\n \n\nProceeds from bank borrowings and other borrowings, net of\n   upfront fee payment for a syndicated loan\n\n \n\n \n\n20,570\n\n \n\n \n\n \n\n52,788\n\n \n\n \n\n \n\n84,228\n\n \n\n \n\n \n\n12,210\n\n \n\nRepayment of bank borrowings\n\n \n\n \n\n(13,092\n\n)\n\n \n\n \n\n(43,678\n\n)\n\n \n\n \n\n(78,458\n\n)\n\n \n\n \n\n(11,374\n\n)\n\nProceeds from convertible unsecured senior notes, net of debt\n   issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n35,665\n\n \n\n \n\n \n\n22,276\n\n \n\n \n\n \n\n3,229\n\n \n\nPayments for capped call transactions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,612\n\n)\n\n \n\n \n\n(1,309\n\n)\n\n \n\n \n\n(189\n\n)\n\nProceeds from exchangeable bonds, net of debt issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,986\n\n \n\n \n\n \n\n1,593\n\n \n\nProceeds from unsecured senior notes, net of debt issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n35,979\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nRepayment of unsecured senior notes\n\n \n\n \n\n(5,013\n\n)\n\n \n\n \n\n(16,220\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNet cash used in financing activities\n\n \n\n \n\n(108,244\n\n)\n\n \n\n \n\n(76,215\n\n)\n\n \n\n \n\n(20,573\n\n)\n\n \n\n \n\n(2,983\n\n)\n\nEffect of exchange rate changes on cash and cash equivalents,\n   restricted cash and escrow receivables\n\n \n\n \n\n4,389\n\n \n\n \n\n \n\n965\n\n \n\n \n\n \n\n(4,004\n\n)\n\n \n\n \n\n(580\n\n)\n\nIncrease (Decrease) in cash and cash equivalents, restricted cash\n   and escrow receivables\n\n \n\n \n\n56,914\n\n \n\n \n\n \n\n(97,156\n\n)\n\n \n\n \n\n(15,700\n\n)\n\n \n\n \n\n(2,276\n\n)\n\nCash and cash equivalents, restricted cash and escrow\n   receivables at beginning of year\n\n \n\n \n\n229,510\n\n \n\n \n\n \n\n286,424\n\n \n\n \n\n \n\n189,268\n\n \n\n \n\n \n\n27,438\n\n \n\nCash and cash equivalents, restricted cash and escrow\n   receivables at end of year\n\n \n\n \n\n286,424\n\n \n\n \n\n \n\n189,268\n\n \n\n \n\n \n\n173,568\n\n \n\n \n\n \n\n25,162\n\n \n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-13\n\n[Table of Contents](#toc_page)\n\n \n\nALIBABA GROUP HOLDING LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)\n\nSupplemental disclosures of cash flow information:\n\nPayment of interest\n\nInterest paid was RMB7,832 million, RMB8,866 million and RMB9,384 million for the years ended March 31, 2024, 2025 and 2026, respectively.\n\nBusiness combinations\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nCash paid for business combinations\n\n \n\n \n\n(2,325\n\n)\n\n \n\n \n\n(612\n\n)\n\n \n\n \n\n(1,503\n\n)\n\nCash acquired in business combinations\n\n \n\n \n\n121\n\n \n\n \n\n \n\n965\n\n \n\n \n\n \n\n291\n\n \n\n \n\n \n\n(2,204\n\n)\n\n \n\n \n\n353\n\n \n\n \n\n \n\n(1,212\n\n)\n\n \n\nThe accompanying notes form an integral part of these consolidated financial statements.\n\nF-14\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n1.\nOrganization and principal activities\n\nAlibaba Group Holding Limited (the “Company”) is a limited liability company, which was incorporated in the Cayman Islands on June 28, 1999. The Company is a holding company and conducts its businesses primarily through its subsidiaries. In these consolidated financial statements, where appropriate, the term “Company” also refers to its subsidiaries as a whole. The Company provides the technology infrastructure and marketing reach to help merchants, brands, retailers and other businesses to leverage the power of new technology to engage with their users and customers and operate in a more efficient way.\n\nThe Company’s businesses comprise Alibaba China E-commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group and other businesses. An ecosystem has developed around the Company’s platforms and businesses that consists of consumers, merchants, brands, retailers, enterprises, third-party service providers, strategic alliance partners and other businesses.\n\nAlibaba China E-commerce Group is comprised of (i) E-commerce business, (ii) Quick commerce business and (iii) China commerce wholesale business. E-commerce business mainly consists of Taobao and Tmall, the Company’s digital retail business in China, Xianyu, a consumer-to-consumer community and marketplace for idle goods in China, as well as Fliggy, an online travel platform providing comprehensive services. Quick commerce business includes Taobao Instant Commerce, a local services and on-demand delivery platform in China. China commerce wholesale business mainly includes 1688.com, an integrated domestic wholesale marketplace in China.\n\nAlibaba International Digital Commerce Group is comprised of (i) International commerce retail business and (ii) International commerce wholesale business. International commerce retail business mainly includes AliExpress, a global e-commerce platform, Trendyol, an e-commerce platform in Türkiye, Lazada, an e-commerce platform in Southeast Asia, and Daraz, an e-commerce platform across South Asia with key markets in Pakistan and Bangladesh. International commerce wholesale business mainly includes Alibaba.com, an integrated international online wholesale marketplace.\n\nCloud Intelligence Group offers a comprehensive suite of cloud services based on a three-tiered architecture of infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and model-as-a-service (MaaS) to customers worldwide.\n\nOther businesses include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games and DingTalk.\n\nThe Company’s American depositary shares (“ADSs”) have been listed on the New York Stock Exchange (“NYSE”) under the symbol of “BABA” and the Company’s ordinary shares have been listed on the Hong Kong Stock Exchange (“HKSE”) under the codes “9988 (HKD Counter)” and “89988 (RMB Counter).”\n\n2.\nSummary of significant accounting policies\n\n(a)\nBasis of presentation\n\nThe accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).\n\nTranslations of balances in the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows from RMB into the US$ as of and for the year ended March 31, 2026 are solely for the convenience of the readers and are calculated at the rate of US$1.00=RMB6.8980, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2026. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at this rate, or at any other rate.\n\nF-15\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(b)\nUse of estimates\n\nThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.\n\n(c)\nConsolidation\n\nThe consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the PRC-registered entities directly or indirectly owned by the Company (“WFOEs”) and variable interest entities (“VIEs”) over which the Company is the primary beneficiary for accounting purposes only. All transactions and balances among the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.\n\nA subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. A VIE is required to be consolidated by the primary beneficiary of the entity if the equity holders in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.\n\nDue to legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include the operations of Internet content providers, the Company operates its Internet businesses and other businesses in which foreign investment is restricted or prohibited in the PRC through various contractual arrangements with PRC domestic companies that are incorporated in the PRC and owned by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, these representative PRC domestic companies are Zhejiang Taobao Network Co., Ltd., Zhejiang Tmall Network Co., Ltd., Zhejiang Diantao Good Things Network Co., Ltd., and Alibaba Cloud Computing Ltd. The registered capital of these PRC domestic companies was funded by the Company through loans extended to the equity holders of these PRC domestic companies.\n\nThe Company has entered into certain exclusive services agreements with these PRC domestic companies, which entitle it to receive substantially all of the profits of the PRC domestic companies. In addition, the Company has entered into certain agreements with the equity holders of these PRC domestic companies, including loan agreements that require them to contribute registered capital to those PRC domestic companies, exclusive call option agreements to acquire the equity interests in these companies when permitted by the PRC laws, rules and regulations, equity pledge agreements of the equity interests held by those equity holders, and proxy agreements that irrevocably authorize individuals designated by the Company to exercise the equity owner’s rights over these PRC domestic companies.\n\nF-16\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(c)\nConsolidation (Continued)\n\n \n\nDetails of the typical structure of the Company’s representative VIEs are set forth below:\n\nLoan agreements\n\nPursuant to the relevant loan agreements, the respective WFOEs have granted loans to the equity holders of the VIEs, which may only be used for the purpose of its business operation activities agreed by the WFOEs or the acquisition of the relevant VIEs. The WFOEs may require acceleration of repayment at their absolute discretion. When the equity holders of the VIEs make early repayment of the outstanding amount, the WFOEs or a third-party designated by the WFOEs may purchase the equity interests in the VIEs at a price equal to the outstanding amount of the loan, subject to any applicable PRC laws, rules and regulations. The equity holders of the VIEs undertake not to enter into any prohibited transactions in relation to the VIEs, including the transfer of any business, material assets or equity interests in the VIEs to any third party.\n\nExclusive call option agreements\n\nThe equity holders of the VIEs have granted the WFOEs exclusive call options to purchase their equity interest in the VIEs at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs; and (ii) the minimum price as permitted by applicable PRC laws. Each relevant VIE has further granted the relevant WFOE an exclusive call option to purchase its assets at an exercise price equal to the book value of the assets or the minimum price as permitted by applicable PRC laws, whichever is higher. Certain VIEs and their equity holders will also jointly grant the WFOEs (A) exclusive call options to request the VIEs to decrease their registered capital at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs and (ii) the minimum price as permitted by applicable PRC laws (the “Capital Decrease Price”), and (B) exclusive call options to subscribe for any increased capital of the VIEs at a price equal to the Capital Decrease Price, or the sum of the Capital Decrease Price and the unpaid registered capital, if applicable, as of the capital decrease. The WFOEs may nominate another entity or individual to purchase the equity interest or assets, or to subscribe for the increased capital, if applicable, under the call options. Execution of each call option shall not violate the applicable PRC laws, rules and regulations. Each equity holder of the VIE has agreed that the following amounts, to the extent in excess of the original registered capital that they contributed to the VIE (after deduction of relevant tax expenses), belong to and shall be paid to the WFOEs: (i) proceeds from the transfer of its equity interests in the VIE, (ii) proceeds received in connection with a capital decrease in the VIE, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIE upon termination or liquidation. Moreover, any profits, distributions or dividends (after deduction of relevant tax expenses) received by the VIEs also belong to and shall be paid to the WFOEs. The exclusive call option agreements remain in effect until the equity interest or assets that are the subject of these agreements are transferred to the WFOEs.\n\nProxy agreements\n\nPursuant to the relevant proxy agreements, the equity holders of the VIEs irrevocably authorize any person designated by the WFOEs to exercise their rights of the equity holders of the VIEs, including without limitation the right to vote and appoint directors.\n\nEquity pledge agreements\n\nPursuant to the relevant equity pledge agreements, the equity holders of the VIEs have pledged all of their interests in the equity of the VIEs as a continuing first priority security interest in favor of the corresponding WFOEs to secure the outstanding amounts advanced under the relevant loan agreements described above and to secure the performance of obligations by the VIEs and/or the equity holders under the other structure contracts. Each WFOE is entitled to exercise its right to dispose of the pledged interests in the equity of the VIE held by the equity holders and has priority in receiving payment by the application of proceeds from the auction or sale of the pledged interests, in the event of any breach or default under the loan agreement or other structure contracts, if applicable. These equity pledge agreements remain in force until the later of (i) the full performance of the contractual arrangements by the relevant parties, and (ii) the full repayment of the loans made to the equity holders of the VIEs.\n\nF-17\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(c)\nConsolidation (Continued)\n\nExclusive services agreements\n\nEach relevant VIE has entered into an exclusive services agreement with the respective WFOE, pursuant to which the relevant WFOE provides exclusive services to the VIE. In exchange, the VIE pays a service fee to the WFOE, the amount of which shall be determined, to the extent permitted by applicable PRC laws as proposed by the WFOE, resulting in a transfer of substantially all of the profits from the VIE to the WFOE.\n\nOther arrangements\n\nThe exclusive call option agreements described above also entitle the WFOEs to all profits, distributions or dividends (after deduction of relevant tax expenses) to be received by the equity holder of the VIEs, and the following amounts, to the extent in excess of the original registered capital that they contributed to the VIEs (after deduction of relevant tax expenses) to be received by each equity holder of the VIEs: (i) proceeds from the transfer of its equity interests in the VIEs, (ii) proceeds received in connection with a capital decrease in the VIEs, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIEs upon termination or liquidation.\n\nBased on these contractual agreements, the Company believes that the PRC domestic companies as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company is the primary beneficiary of these PRC domestic companies, the Company believes that these VIEs should be consolidated based on the structure as described above.\n\nThe following financial information of the consolidated VIEs and their subsidiaries was recorded in the accompanying consolidated financial statements:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCash and cash equivalents and short-term investments\n\n \n\n \n\n10,621\n\n \n\n \n\n \n\n7,910\n\n \n\nInvestments in equity method investees and equity securities and other\n   investments\n\n \n\n \n\n37,117\n\n \n\n \n\n \n\n34,987\n\n \n\nAccounts receivable and contract assets, net of allowance\n\n \n\n \n\n18,408\n\n \n\n \n\n \n\n21,893\n\n \n\nAmounts due from non-VIE subsidiaries of the Company\n\n \n\n \n\n53,792\n\n \n\n \n\n \n\n46,446\n\n \n\nProperty and equipment, net and intangible assets, net\n\n \n\n \n\n19,911\n\n \n\n \n\n \n\n47,887\n\n \n\nOthers\n\n \n\n \n\n40,429\n\n \n\n \n\n \n\n53,810\n\n \n\nTotal assets\n\n \n\n \n\n180,278\n\n \n\n \n\n \n\n212,933\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmounts due to non-VIE subsidiaries of the Company\n\n \n\n \n\n113,332\n\n \n\n \n\n \n\n136,348\n\n \n\nAccrued expenses, accounts payable and other liabilities\n\n \n\n \n\n50,521\n\n \n\n \n\n \n\n64,338\n\n \n\nDeferred revenue and customer advances\n\n \n\n \n\n19,126\n\n \n\n \n\n \n\n21,826\n\n \n\nTotal liabilities\n\n \n\n \n\n182,979\n\n \n\n \n\n \n\n222,512\n\n \n\n \n\nF-18\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(c)\nConsolidation (Continued)\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nRevenue (i)\n\n \n\n \n\n117,686\n\n \n\n \n\n \n\n137,708\n\n \n\n \n\n \n\n156,369\n\n \n\nNet loss\n\n \n\n \n\n(3,193\n\n)\n\n \n\n \n\n(850\n\n)\n\n \n\n \n\n(914\n\n)\n\nNet cash provided by (used in) operating activities\n\n \n\n \n\n12,053\n\n \n\n \n\n \n\n(992\n\n)\n\n \n\n \n\n9,584\n\n \n\nNet cash used in investing activities\n\n \n\n \n\n(11,772\n\n)\n\n \n\n \n\n(33,847\n\n)\n\n \n\n \n\n(39,440\n\n)\n\nNet cash provided by financing activities\n\n \n\n \n\n5,626\n\n \n\n \n\n \n\n25,933\n\n \n\n \n\n \n\n28,958\n\n \n\n \n\n(i)\nRevenue generated by the VIEs are primarily from cloud services, digital media and entertainment services and others.\n\nThe VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 25 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation.\n\nUnder the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves. As all VIEs are incorporated as limited liability companies under the Company Law of the corresponding jurisdictions, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs.\n\nCurrently, there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by its VIEs, the Company has provided and will continue to provide financial support to the VIEs considering the business requirements of the VIEs as well as the Company’s own business objectives in the future.\n\nUnrecognized revenue-producing assets held by the VIEs include certain Internet content provision and other licenses, domain names and trademarks. The Internet content provision and other licenses are required under relevant PRC laws, rules and regulations for the operation of Internet businesses in the PRC, and therefore are integral to the Company’s operations. The Internet content provision licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services.\n\n(d)\nBusiness combinations and noncontrolling interests\n\nThe Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC 805”) “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers, liabilities incurred by the Company and equity instruments issued by the Company. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the acquisition date amounts of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the acquisition date amounts of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent to the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any further adjustments are recorded in the consolidated income statements.\n\nIn a business combination achieved in stages, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated income statements.\n\nF-19\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(d)\nBusiness combinations and noncontrolling interests (Continued)\n\nWhen there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary.\n\nFor the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company accretes changes in the redemption value over the period from the date that it becomes probable that the mezzanine equity will become redeemable to the earliest redemption date using the effective interest method. Consolidated net income in the consolidated income statements includes net income or loss attributable to noncontrolling interests and mezzanine equity holders when applicable.\n\nNet income attributable to mezzanine equity holders is included in net loss attributable to noncontrolling interests in the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. During the years ended March 31, 2024, 2025 and 2026, net income attributable to mezzanine equity holders amounted to RMB181 million, RMB64 million and RMB950 million, respectively. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests on the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows.\n\n(e)\nSegment reporting\n\nOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of the Company’s Chief Executive Officer and Chief Financial Officer. When the Company changes the structure of its internal organization in a manner that causes the composition of its reportable segments to change, the corresponding information for earlier periods would be recast unless it is impracticable to do so.\n\n(f)\nForeign currency translation\n\nThe functional currency of the Company is US$. The Company’s subsidiaries with operations in Chinese mainland, the Hong Kong Special Administrative Region of the PRC (“Hong Kong” or “Hong Kong S.A.R.”), the United States and other jurisdictions generally use their respective local currencies as their functional currencies. When the Company determines that a subsidiary is operating in a highly inflationary economy, the financial statements of this subsidiary shall be remeasured prospectively as if the functional currency were the reporting currency. The reporting currency of the Company is RMB as the major operations of the Company are within the PRC. The financial statements of the Company’s subsidiaries, other than the subsidiaries with the functional currency of RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses, including those arising from intra-entity foreign currency transactions that are of a long-term-investment nature, are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.\n\nIn the financial statements of the Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated income statements during the year in which they occur.\n\nF-20\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(g)\nRevenue recognition\n\nRevenue is principally generated from customer management services, membership fees and value-added services, logistics services, cloud services, sales of goods and other revenue. Revenue represents the amount of consideration the Company is entitled to upon the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers,” the Company recognizes revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, the Company also considers the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership and (v) acceptance of the good or service. For performance obligations satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of a performance obligation.\n\nFor revenue arrangements with multiple distinct performance obligations, each distinct performance obligation is separately accounted for and the total consideration is allocated to each performance obligation based on the relative standalone selling price at contract inception.\n\nThe Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. Generally, when the Company is primarily obligated in a transaction, is subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. Generally, when the Company is not primarily obligated in a transaction, does not bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis.\n\nThe Company may from time to time provide incentives in various forms to attract or retain consumers. Under the circumstances where consumers are not considered as customers under ASC 606, the Company evaluates the features of different incentives provided to consumers to determine whether they represent implicit or explicit obligations to consumers on behalf of merchants, which are considered as payments to customers and are recorded as reduction of revenues. Incentives that are not considered as payments to customers are recorded as sales and marketing expenses.\n\nWhen services are exchanged or swapped for other services, revenue is recognized based on the estimated standalone selling price of services promised to customer if the fair value of the services received cannot be reasonably estimated. The amount of revenue recognized for barter transactions was not material for each of the periods presented.\n\nPractical expedients and exemptions\n\nThe Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less and contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.\n\nThe Company applies the practical expedient to not adjust any of the transaction price for the time value of money for contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer is within one year.\n\nF-21\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(g)\nRevenue recognition (Continued)\n\nRevenue recognition policies by type are as follows:\n\n(i)\nCustomer management services\n\nThe Company generates customer management revenue from merchants by offering an integrated package and a comprehensive solution comprised of a diverse array of services to enable them to attract, engage and retain consumers, complete transactions, improve their branding and enhance operating efficiency. The customer management revenue are charged primarily on cost-per-click basis, cost-per-thousand impressions basis, time basis and cost-per-sale basis (e.g., fees charged based on the value of merchandise transacted, including commission on transactions).\n\nCost-per-click (\"CPC\") marketing and software services\n\nCPC marketing and software services allow merchants to bid for keywords or bid to market to groups of consumers with similar profiles that match product or service listings appearing in search results or browser results on the Company’s marketplaces. In general, merchants prepay for CPC marketing and software services and the related revenue is recognized when a user clicks their product or service listings as this is the point of time when the merchants benefit from the marketing and software services rendered.\n\nCost-per-thousand impressions (\"CPM\") and time-based marketing services\n\nCPM and time-based marketing services allow merchants to place marketing content on the Company’s marketplaces, at fixed prices or prices established by a market-based bidding system and in particular formats. In general, merchants need to prepay for CPM and time-based marketing services which are accounted for as customer advances and revenue is recognized either ratably over the period in which the marketing content is displayed as the merchants simultaneously consume the benefits as the marketing content is displayed or when an marketing content is viewed by users, depending on the type of marketing services selected by the merchants.\n\nCost-per-sale (\"CPS\") marketing and software services\n\nThe Company charges fees from merchants for transactions on Taobao, Tmall and certain other major marketplaces of the Company. The fees are generally determined as a percentage based on the value of merchandise sold by the merchants. Merchant deposits that are expected to be non-refundable is accounted for as variable consideration (Note 2(ac)), which is estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Revenue related to CPS marketing and software services is recognized in the consolidated income statements based on the expected value when the performance obligation is satisfied. Adjustments to the estimated variable consideration related to prior reporting periods were not material for each of the periods presented.\n\nThe Company also places marketing content through the third-party marketing affiliate program. Revenue generated on the Company’s marketplaces or through the third-party marketing affiliate program are recorded on a gross basis when the Company is the principal to the merchants in the arrangements. For third-party marketing affiliates with whom the Company has an arrangement to share the revenue, traffic acquisition cost is also recognized at the same time if the marketing content on the landing page clicked by the users is from merchants participating in the third-party marketing affiliate program.\n\nF-22\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(g)\nRevenue recognition (Continued)\n\n(ii)\nMembership fees and value-added services\n\nThe Company earns membership fees revenue from wholesale sellers in respect of the sale of membership packages and subscriptions that allow them to host premium storefronts on the Company’s wholesale marketplaces, as well as the provision of other value-added services, and from customers in respect of the sale of membership packages which allow them to access premium content on Youku’s paid content platforms. These service fees are paid in advance for a specific contracted service period. All these fees are initially deferred as deferred revenue and customer advances when received and revenue is recognized ratably over the term of the respective service contracts as the services are provided.\n\n(iii)\nLogistics services\n\nThe Company earns logistics services revenue from express delivery services, supply chain services, on-demand delivery services and other logistics services. Revenue is recognized over time when the logistics services are provided.\n\n(iv)\nCloud services\n\nThe Company earns cloud services revenue from the provision of public cloud services and non-public cloud services to domestic and international customers:\n\n•\nPublic cloud services, where the company generates revenue from a wide range of cloud services, including traditional and AI-related, such as elastic computing, storage, network, database, big data, security, cloud native and Alibaba Cloud model studio (“Bailian”). Enterprise customers can pay for these services on a consumption or subscription basis, such as on-demand delivery of computing services and storage capacities. Certain cloud services allow customers to use hosted software over the contract period without taking possession of the software. Revenue related to cloud services charged on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services charged on a consumption basis, such as the quantity of storage or elastic computing services used in a period, is recognized based on the customer utilization of the resources.\n\n•\nNon-public cloud services, where the company generates revenue through packaged cloud services, including hardware, software license, software installation service, application development and maintenance service. Each distinct performance obligation identified is separately accounted for and the total consideration is allocated to each performance obligation based on the relative standalone selling prices at contract inception. Revenue for each performance obligation is recognized when the control of the promised goods or services is transferred to the customer.\n\n \n\n(v)\nSales of goods\n\nRevenue from the sales of goods, which is mainly generated from direct sales businesses, is recognized when the control over the promised goods is transferred to customers. Receipts of fees in respect of all other incidental goods or services provided by the Company that are distinct performance obligations are recognized when the control of the underlying goods or services is transferred to the customers. The amounts relating to these incidental services are not material to the Company’s total revenue for each of the periods presented.\n\n(h)\nCost of revenue\n\nCost of revenue consists primarily of cost of inventories, logistics costs, expenses associated with the operation of the Company’s mobile platforms and websites (such as depreciation and maintenance expenses for servers and computers, call centers and other equipment, and bandwidth and co-location fees), staff costs and share-based compensation expense, traffic acquisition costs, content costs, payment processing fees and other related incidental expenses that are directly attributable to the Company’s principal operations.\n\nF-23\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(i)\nProduct development expenses\n\nProduct development expenses consist primarily of staff costs and share-based compensation expense for research and development personnel and other expenses that are directly attributable to the development of new technologies and products for the businesses of the Company, such as the development of the technology and Internet infrastructure, applications, operating systems, software, databases and networks.\n\nThe Company expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing websites or the development of software, website and mobile app content. Costs incurred in the development phase are capitalized and amortized over the estimated product life.\n\n(j)\nSales and marketing expenses\n\nSales and marketing expenses consist primarily of online and offline advertising expenses, promotion expenses, staff costs and share-based compensation expense, sales commissions and other related incidental expenses that are incurred directly to attract or retain consumers and merchants.\n\nThe Company expenses the costs of producing advertisements at the time production occurs, and expenses the costs of delivering advertisements in the period in which the advertising space or airtime is used. Advertising and promotional expenses totaled RMB88,217 million, RMB113,573 million and RMB214,246 million during the years ended March 31, 2024, 2025 and 2026, respectively.\n\n(k)\nShare-based compensation\n\nShare-based awards granted are measured at fair value on grant date and the value is recognized as share-based compensation expense (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair values of restricted share units (“RSUs”) and restricted shares are determined with reference to the fair value of the underlying shares and the fair value of share options is generally determined using the Black-Scholes valuation model. Share-based compensation expense, when recognized, is charged to the consolidated income statements with the corresponding entry to additional paid-in capital, liability or noncontrolling interests as disclosed in Note 2(d).\n\nOn each measurement date, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards, including the fair value of the underlying shares, expected life and expected volatility. The Company recognizes the impact of any revisions to the original forfeiture rate assumptions in the consolidated income statements, with a corresponding adjustment to equity or liability.\n\n(l)\nOther employee benefits\n\nThe Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan, which provides housing, pension, medical, maternity, work-related injury and unemployment benefits, as well as other welfare benefits to employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to make monthly contributions to the local labor and social security authorities based on the applicable benchmarks and rates stipulated by the local government. The relevant local labor and social security authorities are responsible for meeting all retirement benefits obligations and the Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred and not reduced by contributions forfeited by those employees who leave the plans prior to vesting fully in the contributions. The Company also makes payments to other defined contribution plans and defined benefit plans for the benefit of employees employed by subsidiaries outside of the PRC.\n\nDuring the years ended March 31, 2024, 2025 and 2026, contributions to the plans amounting to RMB14,190 million, RMB14,329 million and RMB13,083 million, respectively, were charged to the consolidated income statements. Amounts contributed to defined benefit plans during the years ended March 31, 2024, 2025 and 2026 were insignificant.\n\nF-24\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(m)\nIncome taxes\n\nThe Company accounts for income taxes using the liability method, under which deferred income tax is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that the asset will not be realizable in the foreseeable future.\n\nDeferred tax is recognized on the undistributed earnings of subsidiaries, which are presumed to be distributed to parent companies, unless there is sufficient evidence that the subsidiaries have invested or will invest the undistributed earnings permanently in the domestic jurisdictions or the earnings will not be subject to tax upon the subsidiaries’ liquidation. Deferred tax is recognized for temporary differences in relation to certain investments in equity method investees, equity securities and other investments.\n\nThe Company adopts ASC 740 “Income Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company did not have any significant liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended March 31, 2024, 2025 and 2026. The income before income tax and share of results of equity method investees for the year ended March 31, 2026 derived within the PRC was RMB136,551 million. The loss before income tax and share of results of equity method investees for the year ended March 31, 2026 derived outside the PRC was RMB7,164 million.\n\n(n)\nGovernment grants\n\nGovernment grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development, are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt and when all conditions attached to the grants are fulfilled.\n\nGovernment grants related to assets are recognized as a reduction of the carrying amount of the related asset when all conditions attached to the grants are fulfilled and are recognized in the consolidated income statements as a reduction of related depreciation or amortization expense over the estimated useful live of the related asset on a straight-line method.\n\n(o)\nLeases\n\nThe Company determines if an arrangement is a lease at inception. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Company has no significant finance leases.\n\nF-25\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(o)\nLeases (Continued)\n\nThe Company recognizes lease liabilities and corresponding right-of-use assets on the balance sheet for leases. Operating lease right-of-use assets are included in non-current prepayments, receivables and other assets (Note 13), and operating lease liabilities are included in current accrued expenses, accounts payable and other liabilities and other non-current liabilities (Note 19) on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are initially recognized based on the present value of future lease payments at lease commencement. The operating lease right-of-use asset also includes any lease payments made prior to lease commencement and the initial direct costs incurred by the lessee and is recorded net of any lease incentives received. As the interest rates implicit in most of the leases are not readily determinable, the Company uses the incremental borrowing rates based on the information available at lease commencement to determine the present value of the future lease payments. Operating lease expenses are recognized on a straight-line basis over the term of the lease.\n\nThe Company elected to combine the lease and non-lease components for leases of certain asset classes such as shops and malls and equipment leases. Lease and non-lease components for leases of other asset classes are accounted for separately. The Company also elected not to recognize short-term leases with an initial lease term of twelve months or less.\n\n(p)\nCash and cash equivalents\n\nThe Company considers all short-term, highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. Cash and cash equivalents primarily represent bank deposits and fixed deposits with original maturities of less than three months.\n\n(q)\nShort-term investments\n\nShort-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products, certificates of deposits, marketable debt securities and other investments that the Company has the intention to redeem within one year. As of March 31, 2025 and 2026, the Company had short-term investments amounting to RMB228,826 million and RMB155,310 million, respectively. RMB657 million and RMB74 million of short-term investments were pledged as security which were restricted for withdrawal and use as of March 31, 2025 and 2026, respectively. The remaining balances of RMB228,169 million and RMB155,236 million were unrestricted for withdrawal and use as of March 31, 2025 and 2026, respectively.\n\n(r)\nAccounts receivable\n\nAccounts receivable represent the amounts that the Company has an unconditional right to consideration. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts which is estimated using the approach based on expected losses. The allowance for doubtful accounts were RMB9,307 million and RMB8,093 million as of March 31, 2025 and 2026, respectively. The Company’s estimation of allowance for doubtful accounts considers factors such as historical credit loss experience, age of receivable balances, current market conditions, reasonable and supportable forecasts of future economic conditions, as well as an assessment of receivables due from specific identifiable counterparties to determine whether these receivables are considered at risk or uncollectible. The Company assesses collectibility by pooling receivables that have similar risk characteristics and evaluates receivables individually when specific receivables no longer share those risk characteristics. For receivables evaluated individually, when it is determined that foreclosure is probable or when the debtor is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.\n\n(s)\nInventories\n\nInventories mainly consist of merchandise available for sale. They are accounted for using the weighted average cost method and stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.\n\nF-26\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(t)\nEquity securities and other investments\n\nEquity securities and other investments represent the Company’s investments in equity securities that are not accounted for under the equity method, as well as other investments which primarily consist of debt investments.\n\n(i)\nEquity securities\n\nEquity securities not accounted for using the equity method are carried at fair value with unrealized gains and losses recorded in the consolidated income statements, according to ASC 321 “Investments — Equity Securities”.\n\nThe Company elected to record a majority of equity investments in privately held companies using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same issuer.\n\nEquity investments in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities.\n\nIn computing realized gains and losses on equity securities, the Company determines cost based on amounts paid using the average cost method. Dividend income is recognized when the right to receive the payment is established.\n\n(ii)\nDebt investments\n\nDebt investments consist of investments in debt securities and loan investments which are accounted for at amortized cost or under the fair value option, which the Company has elected for certain investments including convertible and exchangeable bonds subscribed. The fair value option permits the irrevocable election on an instrument-by-instrument basis at initial recognition or upon an event that gives rise to a new basis of accounting for that instrument. The investments accounted for under the fair value option are carried at fair value with unrealized gains and losses recorded in the consolidated income statements. Interest income from debt investments is recognized using the effective interest method which is reviewed and adjusted periodically based on changes in estimated cash flows. Debt investments also include other treasury investments which mainly consist of investments in fixed deposits, certificates of deposits and marketable debt securities with original maturities over one year for treasury purposes. The remaining maturities of these treasury investments held by the Company generally range from one to five years.\n\n(u)\nInvestments in equity method investees\n\nThe Company applies the equity method to account for equity investments in common stock or in-substance common stock, according to ASC 323 “Investments — Equity Method and Joint Ventures,” over which it has significant influence but does not own a controlling financial interest, unless the fair value option is elected for an investment.\n\nAn investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock.\n\nF-27\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(u)\nInvestments in equity method investees (Continued)\n\nUnder the equity method, the Company’s share of the post-acquisition profits or losses of the equity method investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in other comprehensive income. The Company records its share of the results of the equity method investees on a one quarter in arrears basis. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity method investee generally represents goodwill and intangible assets acquired. When the Company’s share of losses of the equity method investee equals or exceeds its interest in the equity method investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity method investee.\n\nThe Company continually reviews its investments in equity method investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors the Company considers in its determination include the severity and the length of time that the fair value of the investment is below its carrying value; the financial condition, the operating performance and the prospects of the equity method investee; the geographic region, market and industry in which the equity method investee operates; and other company specific information such as recent financing rounds completed by the equity method investee. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the investment in the equity method investee is written down to its fair value.\n\n(v)\nProperty and equipment, net\n\nProperty and equipment are stated at cost less accumulated depreciation and any impairment loss. Depreciation is computed using the straight-line method with no residual value based on the estimated useful lives of the various classes of assets, which range as follows:\n\n \n\n \n\n \n\nComputer equipment and software\n\n \n\n3 – 5 years\n\nFurniture, office and transportation equipment and others\n\n \n\n3 – 10 years\n\nBuildings and other property\n\n \n\n10 – 50 years\n\nProperty improvements\n\n \n\nshorter of remaining lease period or estimated useful life\n\n \n\nConstruction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use.\n\nCosts of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated income statements.\n\nF-28\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(w)\nIntangible assets other than licensed copyrights\n\nIntangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are measured at fair value upon acquisition using valuation techniques such as discounted cash flow analysis and ratio analysis with reference to comparable companies in similar industries under the income approach, market approach and cost approach. Major assumptions used in determining the fair value of these intangible assets include future growth rates and weighted average cost of capital. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows:\n\n \n\nUser base and customer relationships\n\n \n\n3 – 16 years\n\nTrade names, trademarks and domain names\n\n \n\n5 – 20 years\n\nDeveloped technology and patents\n\n \n\n2 – 10 years\n\nNon-compete agreements\n\n \n\nover the contracted term of up to 10 years\n\n \n\n(x)\nLicensed copyrights\n\nLicensed copyrights related to titles to movies, television series, variety shows, animations and other video content acquired from external parties are carried at the lower of unamortized cost or fair value. The amortization period for the licensed content vary depending on the type of content, which typically ranges from six months to ten years. Licensed copyrights are presented on the consolidated balance sheets as current assets under prepayments, receivables and other assets, or non-current assets under intangible assets, net, based on estimated time of usage. Licensed copyrights are generally amortized using an accelerated method based on historical viewership consumption patterns. Estimates of the consumption patterns for licensed copyrights are reviewed periodically and revised if necessary. For the years ended March 31, 2024, 2025 and 2026, amortization expenses in connection with the licensed copyrights of RMB8,361 million, RMB7,497 million and RMB6,701 million were recorded in cost of revenue.\n\nOn a periodic basis, the Company evaluates the program usefulness of licensed copyrights pursuant to the guidance in ASC 920 “Entertainment — Broadcasters,” which provides that the rights be reported at the lower of unamortized cost or fair value. When there is a change in the expected usage of licensed copyrights, the Company estimates the fair value of licensed copyrights to determine if any impairment exists. The fair value of licensed copyrights is determined by estimating the expected cash flows from advertising and membership fees, less any costs and expenses, over the remaining useful lives of the licensed copyrights at the film-group level. Estimates that impact these cash flows include anticipated levels of demand for the Company’s advertising services and the expected selling prices of advertisements. For the years ended March 31, 2024, 2025 and 2026, no impairment charges in connection with the licensed copyrights were recorded.\n\n(y)\nGoodwill\n\nGoodwill represents the excess of the purchase consideration over the acquisition date amounts of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. In accordance with ASC 350, the Company may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In the qualitative assessment, the Company considers factors such as macroeconomic conditions, industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations, business plans and strategies of the reporting unit. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the quantitative impairment test is performed. The Company may also bypass the qualitative assessment and proceed directly to perform the quantitative impairment test.\n\nF-29\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(y)\nGoodwill (Continued)\n\nThe Company performs the quantitative impairment test by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit.\n\n(z)\nImpairment of long-lived assets other than goodwill and licensed copyrights\n\nThe Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group. If the assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets or asset groups exceeds the fair value of the assets or asset groups. Impairment of long-lived assets other than goodwill and licensed copyrights recognized for the years ended March 31, 2024, 2025 and 2026 was RMB14,847 million, RMB4,611 million and RMB3,318 million, respectively.\n\n(aa) Derivatives and hedging\n\nContracts that meet the definition of a derivative and an embedded derivative that is not closely related to the host contract are generally recognized on the consolidated balance sheets as either assets or liabilities and recorded at fair value. Changes in the fair value of derivative assets or liabilities are either recognized periodically in the consolidated income statements or in other comprehensive income depending on the use of the derivatives and whether they qualify for hedge accounting and are so designated as cash flow hedges, fair value hedges or net investment hedges. The capped call transactions in connection with the issuance of the convertible unsecured senior notes meet the scope exception for contracts in an entity’s own equity provided in ASC 815 “Derivatives and Hedging” and are recognized in shareholders’ equity. Other instruments involving an entity’s own equity that do not meet the scope exception for contracts in an entity’s own equity provided in ASC 815 are classified as assets or liabilities and recorded at fair value.\n\n \n\nTo qualify for hedge accounting, the hedge relationship is designated and formally documented at inception, detailing the particular risk management objective and strategy for the hedge (which includes the item and risk that is being hedged), the hedging instrument that is being used and how hedge effectiveness is being assessed. A hedging instrument has to be effective in accomplishing the objective of offsetting changes in the risk being hedged. The effectiveness of the hedging relationship is evaluated on a prospective and retrospective basis using qualitative and quantitative measures of correlation. Qualitative methods may include comparison of critical terms of the hedging instrument to those of the hedged item due to the hedged risk. Quantitative methods include a comparison of the changes in the value or discounted cash flow of the hedging instrument to those of the hedged item due to the hedged risk. A hedging relationship is considered effective if the results of the hedging instrument are within a ratio of 80% to 125% of the results of the hedged item.\n\nCash flow hedges\n\nInterest rate swaps designated as hedging instruments to hedge against the cash flows attributable to recognized assets or liabilities or forecasted payments may qualify as cash flow hedges. The Company entered into interest rate swap contracts to swap floating interest payments related to certain borrowings for fixed interest payments to hedge the interest rate risk associated with certain forecasted payments and obligations. All changes in the fair value of interest rate swaps that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income. Amounts in accumulated other comprehensive income are reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings.\n\nThe Company has elected the optional expedients under ASC 848 “Reference Rate Reform” for certain existing interest rate swaps that are designated as cash flow hedges in the hedging relationship designation and the assessment of probability of forecasted transaction and hedge effectiveness.\n\nF-30\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(aa) Derivatives and hedging (Continued)\n\nNet investment hedges\n\nThe Company uses cross currency swap (“CCS”) contracts, forward exchange contracts and RMB denominated unsecured senior notes and borrowings to hedge the foreign currency risk associated with investments in net assets of certain PRC subsidiaries held by the Company which are designated as net investment hedges. The Company excludes the changes in the fair value of the CCS contracts and forward exchange contracts attributable to changes other than those due to fluctuations in the spot exchange rate from the assessment of hedge effectiveness and the value of such excluded component is recognized in interest expenses in the consolidated income statement over the life of the hedging instrument under a systematic and rational method. Changes in the value of the hedging instruments due to fluctuations in the spot foreign currency exchange rates designated in net investment hedges are recognized in accumulated other comprehensive income to offset the cumulative translation adjustments relating to those subsidiaries. For the years ended March 31, 2025 and 2026, the losses recognized in accumulated other comprehensive income from changes in value of the CCS contracts, forward exchange contracts and the non-derivative financial instruments designated as net investment hedges amounted to RMB344 million and RMB4,519 million, respectively.\n\nAmounts accumulated are reclassified from accumulated other comprehensive income and recognized in the consolidated income statements upon disposal of those subsidiaries. Once the hedge becomes ineffective, hedge accounting is discontinued prospectively. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques.\n\n(ab) Borrowings\n\nBorrowings consist of bank borrowings, unsecured senior notes, convertible unsecured senior notes and exchangeable bonds. Bank borrowings and unsecured senior notes are recognized initially at fair value, net of upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees. Upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees are recorded as a reduction of the proceeds received and the related accretion is recorded as interest expense in the consolidated income statements over the estimated term of the facilities using the effective interest method. Convertible unsecured senior notes are accounted for in its entirety as liabilities, and the embedded conversion feature is not required to be accounted for separately under ASC 815. Exchangeable bonds are accounted for under the fair value option with changes in fair value recorded in the consolidated income statements.\n\n \n\n(ac) Merchant deposits\n\nThe Company collects deposits representing an annual upfront service fee from merchants on Tmall before the beginning of each calendar year. These deposits are initially recorded as a liability by the Company. The deposits are refundable to a merchant if the level of sales volume that is generated by that merchant on Tmall meets the target during the period. If the transaction volume target is not met at the end of each calendar year, the relevant deposits will become non-refundable. These merchant deposits are accounted for as variable consideration at an amount that is estimated at contract inception. The estimate is updated at the end of each reporting period and when there are changes in circumstances during the reporting period. Merchant deposits are recognized as revenue in the consolidated income statements when the likelihood of refund to the merchant is considered remote based on the patterns of sales volume generated by the merchant during the reporting period. Starting from September 1, 2024, the annual upfront service fee was cancelled and the merchant deposits would subsequently be refunded to merchants.\n\n(ad) Deferred revenue and customer advances\n\nDeferred revenue and customer advances generally represent cash received from customers that relate to goods or services to be provided in the future. Deferred revenue, mainly representing cloud services revenue, membership fees and customer management services revenue, is stated at the amount of service fees received less the amount previously recognized as revenue upon the provision of the respective services to customers.\n\nF-31\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(ae) Commitments and contingencies\n\nIn the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for the contingencies are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.\n\nCertain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses these contingent liabilities, which inherently involves judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in legal proceedings, the Company, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of the reasonably possible loss, if determinable and material, would be disclosed.\n\nLoss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.\n\n(af) Treasury shares\n\nThe Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement of the treasury shares, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital and retained earnings.\n\n(ag) Statutory reserves\n\nIn accordance with the relevant regulations and their articles of association, subsidiaries of the Company incorporated in the PRC are required to allocate at least 10% of their after-tax profit determined based on the PRC accounting standards and regulations to the general reserve until the reserve has reached 50% of the relevant subsidiary’s registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the respective board of directors of the subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances or cash dividends. During the years ended March 31, 2024, 2025 and 2026, appropriations to the general reserve amounted to RMB1,756 million, RMB1,203 million and RMB692 million, respectively. No appropriations to the enterprise expansion fund and staff welfare and bonus fund have been made by the Company.\n\n(ah) Interest income\n\nInterest income is recorded in the consolidated income statements as it accrues for the interest-earning assets using the effective interest method. During the years ended March 31, 2024, 2025 and 2026, interest income of RMB24,868 million, RMB20,449 million and RMB18,806 million, respectively, were recorded in interest and investment income, net in the consolidated income statements.\n\n \n\n(ai) Newly adopted accounting standard updates\n\nIn April 2023, the Company adopted Accounting Standards Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which provides guidance on the acquirer’s accounting for acquired revenue contracts with customers in a business combination. The amendments require an acquirer recognizes and measures contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with ASC 606 as if it had originated the contracts. This guidance also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The Company adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the financial position, results of operations and cash flows.\n\nF-32\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n2.\nSummary of significant accounting policies (Continued)\n\n(ai) Newly adopted accounting standard updates (Continued)\n\nIn April 2023, the Company adopted ASU 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which require a buyer in a supplier finance program disclose qualitative and quantitative information about the supplier finance program. Details of the key terms of the program, the outstanding obligations confirmed as valid and the roll forward of these obligations are set out in Note 20.\n\nIn April 2024, the Company adopted ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The adoption of this guidance did not have a material impact on the financial position, results of operations and cash flows.\n\nIn April 2024, the Company adopted ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements. The amendments require the disclosure of (1) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss; (2) an amount for other segment items by reportable segment and a description of its composition; and (3) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s). The amendments also provide disclosure requirements for interim periods and entities that have a single reportable segment. Details of segment reporting are set out in Note 2(e) and Note 29.\n\nIn April 2025, the Company adopted ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which improves income tax disclosures. The amendments require the disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendments also require disaggregated information about the amount of income taxes paid (net of refunds received), income (or loss) from continuing operations before income tax expense (or benefit) and income tax expense (or benefit) from continuing operations. The Company adopted this guidance prospectively and details of disclosures on income taxes are set out in Note 2(m) and Note 7.\n\n \n\n3.\nRecent accounting pronouncements\n\nIn November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” and issued subsequent amendment within ASU 2025-01. The amendments require disaggregation disclosure for certain expense captions presented on the face of income statement, as well as additional disclosure about selling expenses. This guidance is effective for the Company for the year ending March 31, 2028 and interim reporting periods during the year ending March 31, 2029. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its disclosures.\n\nIn November 2024, the FASB issued ASU 2024-04, “Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments,” which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments also clarify some specific applications of induced conversion guidance and that the guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The new guidance is required to be applied either prospectively or retrospectively. This guidance is effective for the Company for the year ending March 31, 2027. Early adoption is permitted. As of March 31, 2026, the Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows.\n\n \n\nF-33\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n3.\nRecent accounting pronouncements (Continued)\n\nIn May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which requires an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider specific factors to determine the accounting acquirer and removes the requirement that the primary beneficiary always is the acquirer for certain transactions. Under the amendments, acquisition transactions in which the legal acquiree is a VIE will, in more instances, result in the same accounting outcomes as economically similar transactions in which the legal acquiree is a voting interest entity. The amendments do not change the accounting for a transaction determined to be a reverse acquisition or a transaction in which the legal acquirer is not a business and is determined to be the accounting acquiree. The new guidance is required to be applied prospectively to any acquisition transaction that occurs after the initial application date. This guidance is effective for the Company for the year ending March 31, 2028. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\nIn July 2025, the FASB issued ASU 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. The amendments provide all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The new guidance is required to be applied prospectively. This guidance is effective for the Company for the year ending March 31, 2027. Early adoption is permitted. As of March 31, 2026, the Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows.\n\nIn September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which removes all references to prescriptive and sequential software development stages (“project stages”) throughout Subtopic 350-40. The amendments provide guidance on determining whether there is significant development uncertainty in evaluating the probable-to-complete recognition threshold. The amendments also supersede the website development costs guidance and incorporate the recognition requirements for website-specific development costs. This guidance also specifies the disclosures requirements for capitalized internal-use software costs. The new guidance is required to be applied using either the prospective transition approach, the modified transition approach or the retrospective transition approach. This guidance is effective for the Company for the year ending March 31, 2029. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\nIn November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans”, which defines purchased seasoned loans and expands the use of the gross-up approach in ASC 326 to the purchased seasoned loans. The new guidance is required to be applied prospectively to loans that are acquired on or after the initial application date. This guidance is effective for the Company for the year ending March 31, 2028. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\nIn November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”, which clarifies certain aspects of the guidance on hedge accounting and addresses several incremental hedge accounting issues arising from the global reference rate reform initiative. The amendments include: (i) expanding the hedged risks permitted to be aggregated in a group of individual forecasted transactions in a cash flow hedge and clarifying the circumstance under which a group of individual forecasted transactions can be considered to have a similar risk exposure; (ii) providing a model to facilitate the application of cash flow hedge accounting to forecasted interest payments on choose-your-rate debt instruments; (iii) expanding hedge accounting for forecasted purchases and sales of nonfinancial assets; (iv) eliminating the requirement to apply the net written option test to a compound derivative comprising a swap and a written option designated as the hedging instrument in a cash flow hedge or a fair value hedge of interest rate risk; and (v) eliminating the recognition and presentation mismatch related to a dual hedge strategy. The new guidance is required to be applied prospectively for all hedging relationships. This guidance is effective for the Company for the year ending March 31, 2028. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\n \n\n \n\nF-34\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n3.\nRecent accounting pronouncements (Continued)\n\nIn December 2025, the FASB issued ASU 2025-10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities,” which establishes the accounting for a government grant received by a business entity, including recognition and measurement guidance for a grant related to an asset and a grant related to income. This guidance also requires certain presentation and disclosures for the grant. The new guidance is required to be applied using either the modified prospective approach, the modified retrospective approach or the retrospective approach. This guidance is effective for the Company for the year ending March 31, 2030. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\nIn December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements,” which clarifies interim disclosure requirements, the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with U.S. GAAP. The amendments also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The new guidance is required to be applied either prospectively or retrospectively. This guidance is effective for the Company for the interim reporting periods during the year ending March 31, 2029. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance.\n\n4.\nSignificant mergers and acquisitions, investments and dispositions\n\n(a)\nAcquisitions\n\nAcquisitions that constitute business combinations are summarized in the following table:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nNet assets (liabilities)\n\n \n\n \n\n28\n\n \n\n \n\n \n\n(461\n\n)\n\n \n\n \n\n406\n\n \n\nIdentifiable intangible assets\n\n \n\n \n\n602\n\n \n\n \n\n \n\n1,544\n\n \n\n \n\n \n\n408\n\n \n\nDeferred tax assets\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n27\n\n \n\nDeferred tax liabilities\n\n \n\n \n\n(199\n\n)\n\n \n\n \n\n(382\n\n)\n\n \n\n \n\n(64\n\n)\n\n \n\n \n\n431\n\n \n\n \n\n \n\n702\n\n \n\n \n\n \n\n777\n\n \n\nNoncontrolling interests and mezzanine equity\n\n \n\n \n\n(98\n\n)\n\n \n\n \n\n(587\n\n)\n\n \n\n \n\n(824\n\n)\n\nNet identifiable assets (liabilities)\n\n \n\n \n\n333\n\n \n\n \n\n \n\n115\n\n \n\n \n\n \n\n(47\n\n)\n\nGoodwill\n\n \n\n \n\n1,782\n\n \n\n \n\n \n\n4,899\n\n \n\n \n\n \n\n2,297\n\n \n\nTotal purchase consideration\n\n \n\n \n\n2,115\n\n \n\n \n\n \n\n5,014\n\n \n\n \n\n \n\n2,250\n\n \n\nFair value of previously held equity interests\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,555\n\n)\n\n \n\n \n\n(731\n\n)\n\nPurchase consideration settled\n\n \n\n \n\n(2,038\n\n)\n\n \n\n \n\n(1,564\n\n)\n\n \n\n \n\n(1,456\n\n)\n\nDeferred consideration as of year end\n\n \n\n \n\n77\n\n \n\n \n\n \n\n1,895\n\n \n\n \n\n \n\n63\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal purchase consideration is comprised of:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n- cash consideration\n\n \n\n \n\n2,115\n\n \n\n \n\n \n\n2,549\n\n \n\n \n\n \n\n1,519\n\n \n\n- fair value of previously held equity interests\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,555\n\n \n\n \n\n \n\n731\n\n \n\n- others\n\n \n\n \n\n—\n\n \n\n \n\n \n\n910\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,115\n\n \n\n \n\n \n\n5,014\n\n \n\n \n\n \n\n2,250\n\n \n\nIn relation to the revaluation of previously held equity interests, the Company recognized nil, a gain of RMB628 million, and a loss of RMB99 million in the consolidated income statements for the years ended March 31, 2024, 2025 and 2026, respectively, for the acquisitions that constitute business combinations.\n\nPro forma results of operations for these acquisitions have not been presented because the effects of these acquisitions are not material to the consolidated income statements for the year ended March 31, 2024, 2025 and 2026, either individually or in aggregate.\n\nF-35\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n4.\nSignificant mergers and acquisitions, investments and dispositions (Continued)\n\n(b)\nDisposal of Trendyol GO\n\nIn May 2025, the Company entered into a sale and purchase agreement to sell 85% of the equity interest in Trendyol GO, a wholly-owned subsidiary of Trendyol that operates local service business in Türkiye. The cash consideration to the Company from the disposal is approximately US$0.7 billion (RMB5 billion).\n\nThe disposal of Trendyol GO was completed during the year ended March 31, 2026 and a gain arising from the disposal of approximately RMB6 billion was recorded in interest and investment income, net in the consolidated income statements for the year ended March 31, 2026, primarily taking into consideration of (i) the cash considerations, (ii) the carrying values of the net assets of Trendyol GO, and (iii) the fair value of the 15% retained equity interest in Trendyol GO.\n\n(c)\nDisposal of Sun Art Retail Group Limited (“Sun Art”)\n\n \n\nIn December 2024, the Company entered into a sale and purchase agreement to sell all of the equity interest in Sun Art held by the Company, representing approximately 73.66% of the total number of the ordinary shares of Sun Art in issue. Pursuant to the sale and purchase agreement, the Company was entitled to receive approximately HK$9,698 million (RMB9,054 million), which comprised of (i) cash considerations of approximately HK$6,465 million (RMB6,032 million), and (ii) deferred cash considerations of approximately HK$3,233 million (RMB3,022 million). Interest shall be payable in connection with the deferred cash considerations, consisting of (i) base interest, accrued at 4.80% per annum, compounded annually, and (ii) the variable interest of maximum HK$873 million, in the event that the 2027/2028 average adjusted EBITDA of Sun Art is higher than or equal to the adjusted EBITDA high limit of RMB4,400 million. The deferred cash considerations and accrued base interest are to be settled in May 2028, subject to the purchaser’s early repayment option, while the variable interest will be settled in June 2028.\n\n \n\nThe sale of Sun Art was completed in the year ended March 31, 2025 and a loss on disposal of RMB13,123 million was recorded in interest and investment income, net in the consolidated income statements for the year ended March 31, 2025, taking into consideration of (i) the cash considerations and estimated fair value of the deferred cash considerations, and (ii) the carrying values of the net assets of Sun Art and the noncontrolling interests in Sun Art.\n\n(d)\nDisposal of Intime Retail (Group) Company Limited (“Intime”)\n\n \n\nIn December 2024, the Company together with another minority shareholder agreed to sell 100% of the equity interest in Intime to a consortium of purchasers. The Company held approximately 99% of the equity interest in Intime. The cash consideration to the Company from the sale of Intime is approximately RMB7.4 billion.\n\n \n\nThe sale of Intime was substantially completed as of March 31, 2025 and losses arising from the disposal of RMB8,515 million was recorded in interest and investment income, net in the consolidated income statements for the year ended March 31, 2025, taking into consideration of (i) the applicable considerations, and (ii) the applicable carrying values of the net assets of Intime and the applicable noncontrolling interests in Intime. As of March 31, 2025, the carrying values of total assets of RMB5,330 million and total liabilities of RMB4,349 million relating to the sale of Intime remained in the Company's consolidated balance sheets were included in prepayments, receivables and other assets and accrued expenses, accounts payable and other liabilities, respectively. The sale of Intime was fully completed during the year ended March 31, 2026.\n\n(e)\nInvestment in Moonshot AI Ltd (“Moonshot”)\n\nMoonshot is an artificial intelligence company in the PRC. During the year ended March 31, 2024, the Company invested a total of approximately US$0.8 billion (approximately RMB5.9 billion) for an approximately 36% equity interest. The investment in preferred stocks of Moonshot is accounted for using the measurement alternative.\n\nF-36\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n4.\nSignificant mergers and acquisitions, investments and dispositions (Continued)\n\n(f)\nInvestment in Ant Group Co., Ltd. (“Ant Group”)\n\nAnt Group provides comprehensive digital payment services and facilitates digital financial and value-added services for consumers and merchants, in China and across the world. In September 2019, following the satisfaction of the closing conditions, the Company received the 33% equity interest in Ant Group pursuant to the share and asset purchase agreement as amended from time to time (the “SAPA”).\n\nThe Company accounts for its equity interest in Ant Group under the equity method. Upon the completion, the Company recorded the 33% equity interest in Ant Group with a carrying value amounting to RMB90.7 billion in investments in equity method investees. The difference between the carrying value of the 33% equity interest in Ant Group and the Company’s share of the carrying value of Ant Group’s net assets upon completion is a basis difference, which mainly represents the fair value adjustments of amortizable intangible assets and equity investments. These adjustments amounted to RMB24.5 billion and RMB5.3 billion, respectively, both of which were net of their corresponding tax effects.\n\nSubsequent to the receipt of the equity interest in Ant Group, the proportionate share of results of Ant Group, adjusted for the effects of the basis difference as described above, is recorded in share of results of equity method investees in the consolidated income statements on a one quarter in arrears basis. Following the receipt of equity interest in Ant Group, the Company has pre-emptive rights to participate in other issuances of equity securities by Ant Group and certain of its affiliates prior to the time of Ant Group meeting certain minimum criteria for a qualified IPO set forth in the SAPA. These pre-emptive rights entitle the Company to maintain the equity ownership percentage the Company holds in Ant Group immediately prior to any such issuances. In connection with the exercise of the pre-emptive rights, the Company is also entitled to receive certain payments from Ant Group, effectively funding the subscription for these additional equity interest, up to a value of US$1.5 billion, subject to certain adjustments. In addition, under the SAPA, in certain circumstances the Company is permitted to exercise pre-emptive rights through an alternative arrangement which will further protect the Company from dilution.\n\nDuring the quarter ended September 30, 2023, Ant Group repurchased approximately 7% equity interest from its existing shareholders and the shares repurchased were allocated to the employee incentive plans of Ant Group. The number of shares held by the Company in Ant Group remains unchanged from legal perspective, and the Company’s equity interest in Ant Group on a fully diluted basis remains unchanged at 33%.\n\nFor accounting purposes, the Company will take into consideration a proportionate share of equity interest held by the employee incentive plans of Ant Group to account for its share of results from its investment in Ant Group, subject to dilution as the equity interest under the employee incentive plans of Ant Group is transferred out. During the years ended March 31, 2024, 2025 and 2026, there was no material change in the equity interest held by the employee incentive plans of Ant Group. While the Company’s carrying value of the investment in Ant Group remain unchanged upon completion, the transactions result in additional basis difference of RMB5.6 billion upon completion, which was mainly allocated to amortizable intangible assets of RMB1.7 billion with a weighted average amortization period of 7 years, goodwill of RMB3.9 billion, equity investments of RMB0.5 billion and deferred tax liabilities of RMB0.5 billion.\n\n \n\nF-37\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n5.\nRevenue\n\nRevenue by segment is as follows:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAlibaba China E-commerce Group:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nE-commerce (i)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n- Customer management\n\n \n\n \n\n307,950\n\n \n\n \n\n \n\n326,769\n\n \n\n \n\n \n\n343,867\n\n \n\n- Direct sales, logistics and others (ii)\n\n \n\n \n\n110,820\n\n \n\n \n\n \n\n103,722\n\n \n\n \n\n \n\n105,518\n\n \n\n \n\n \n\n418,770\n\n \n\n \n\n \n\n430,491\n\n \n\n \n\n \n\n449,385\n\n \n\nQuick commerce (iii)\n\n \n\n \n\n50,852\n\n \n\n \n\n \n\n53,588\n\n \n\n \n\n \n\n78,520\n\n \n\nChina commerce wholesale (iv)\n\n \n\n \n\n20,479\n\n \n\n \n\n \n\n24,301\n\n \n\n \n\n \n\n26,312\n\n \n\nTotal Alibaba China E-commerce Group\n\n \n\n \n\n490,101\n\n \n\n \n\n \n\n508,380\n\n \n\n \n\n \n\n554,217\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAlibaba International Digital Commerce Group:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInternational commerce retail (v)\n\n \n\n \n\n81,654\n\n \n\n \n\n \n\n108,465\n\n \n\n \n\n \n\n117,731\n\n \n\nInternational commerce wholesale (vi)\n\n \n\n \n\n20,944\n\n \n\n \n\n \n\n23,835\n\n \n\n \n\n \n\n26,439\n\n \n\nTotal Alibaba International Digital Commerce Group\n\n \n\n \n\n102,598\n\n \n\n \n\n \n\n132,300\n\n \n\n \n\n \n\n144,170\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCloud Intelligence Group (vii)\n\n \n\n \n\n106,374\n\n \n\n \n\n \n\n118,028\n\n \n\n \n\n \n\n158,132\n\n \n\nAll others (viii)\n\n \n\n \n\n317,539\n\n \n\n \n\n \n\n338,347\n\n \n\n \n\n \n\n254,367\n\n \n\nUnallocated\n\n \n\n \n\n1,297\n\n \n\n \n\n \n\n1,924\n\n \n\n \n\n \n\n2,340\n\n \n\nInter-segment elimination (ix)\n\n \n\n \n\n(76,741\n\n)\n\n \n\n \n\n(102,632\n\n)\n\n \n\n \n\n(89,556\n\n)\n\nConsolidated revenue\n\n \n\n \n\n941,168\n\n \n\n \n\n \n\n996,347\n\n \n\n \n\n \n\n1,023,670\n\n \n\n \n\n(i)\nRevenue from China commerce retail is primarily generated from Alibaba China E-commerce Group and includes primarily revenue from customer management services, sales of goods and logistics services.\n\n(ii)\nRevenue from direct sales, logistics and other revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, and primarily consists of revenue from sales of goods, as well as logistics services.\n\n(iii)\nRevenue from Quick commerce is primarily generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue, and includes primarily revenue from logistics services and customer management services.\n\n(iv)\nRevenue from China commerce wholesale is primarily generated from 1688.com and includes revenue from membership fees and related value-added services and customer management services.\n\n(v)\nRevenue from International commerce retail is primarily generated from AliExpress, Trendyol and Lazada and includes revenue from customer management services, logistics services and sales of goods.\n\n(vi)\nRevenue from International commerce wholesale is primarily generated from Alibaba.com and includes revenue from membership fees and related value-added services and customer management services.\n\n(vii)\nRevenue from Cloud Intelligence Group is primarily generated from the provision of cloud services, which include public cloud services and non-public cloud services.\n\n \n\n \n\n \n\n \n\nF-38\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n5. Revenue (Continued)\n\n \n\n(viii)\nRevenue from All others represented revenue from businesses including Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk, Sun Art, Intime and other businesses. Revenue within All others includes primarily revenue from sales of goods, and logistics services. During the year ended March 31, 2025, the sale of Sun Art was completed and the sale of Intime was substantially completed. The sale of Intime was fully completed during the year ended March 31, 2026. Details of the disposals are set out in Note 4(c) and Note 4(d) respectively.\n\n(ix)\nInter-segment elimination consisted of revenue primarily from Cloud Intelligence Group and Cainiao.\n\n(x)\nAs a result of the change in composition in reportable segments (Note 29), the Company reclassified revenue by segment. Comparative figures for the year ended March 31, 2024 and 2025 were reclassified to conform to the segment presentation.\n\nRevenue by type is as follows:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCustomer management services (i)\n\n \n\n \n\n386,571\n\n \n\n \n\n \n\n424,877\n\n \n\n \n\n \n\n459,917\n\n \n\nMembership fees and value-added services\n\n \n\n \n\n41,956\n\n \n\n \n\n \n\n46,613\n\n \n\n \n\n \n\n47,638\n\n \n\nLogistics services\n\n \n\n \n\n114,073\n\n \n\n \n\n \n\n123,379\n\n \n\n \n\n \n\n139,864\n\n \n\nCloud services\n\n \n\n \n\n76,459\n\n \n\n \n\n \n\n84,517\n\n \n\n \n\n \n\n112,077\n\n \n\nSales of goods\n\n \n\n \n\n283,273\n\n \n\n \n\n \n\n274,276\n\n \n\n \n\n \n\n227,747\n\n \n\nOther revenue (ii)\n\n \n\n \n\n38,836\n\n \n\n \n\n \n\n42,685\n\n \n\n \n\n \n\n36,427\n\n \n\n \n\n \n\n941,168\n\n \n\n \n\n \n\n996,347\n\n \n\n \n\n \n\n1,023,670\n\n \n\n \n\n(i)\nCustomer management services mainly include CPC, CPM, time-based and CPS marketing and software services.\n\n(ii)\nOther revenue includes revenue from self-developed online games and multiple services provided through various platforms and businesses.\n\nThe amount of revenue recognized for performance obligations satisfied (or partially satisfied) in prior periods for contracts with expected duration of more than one year during the years ended March 31, 2024, 2025 and 2026 were not material.\n\nF-39\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n6.\nLeases\n\nThe Company entered into operating lease agreements primarily for shops and malls, offices, warehouses and land. Certain lease agreements contain an option for the Company to renew a lease or an option to terminate a lease early. The Company considers these options in determining the classification and measurement of the leases.\n\nThe leases may include variable payments based on measures such as the level of sales at a physical store, which are expensed as incurred.\n\nComponents of operating lease cost are as follows:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nOperating lease cost\n\n \n\n \n\n10,752\n\n \n\n \n\n \n\n10,431\n\n \n\n \n\n \n\n7,573\n\n \n\nVariable lease cost\n\n \n\n \n\n655\n\n \n\n \n\n \n\n621\n\n \n\n \n\n \n\n33\n\n \n\nTotal operating lease cost\n\n \n\n \n\n11,407\n\n \n\n \n\n \n\n11,052\n\n \n\n \n\n \n\n7,606\n\n \n\n \n\nFor the years ended March 31, 2024, 2025 and 2026, cash payments for operating leases amounted to RMB10,452 million, RMB7,637 million and RMB5,582 million, respectively. For the years ended March 31, 2025 and 2026, the operating lease assets obtained in exchange for operating lease liabilities amounted to RMB6,171 million and RMB13,650 million, respectively.\n\nAs of March 31, 2025 and 2026, the Company’s operating leases had a weighted average remaining lease term of 7.4 years and 7.3 years, respectively. As of the same dates, the Company’s operating leases had a weighted average discount rate of 4.6% and 4.9%, respectively. Future lease payments under operating leases as of March 31, 2026 are as follows:\n\n \n\n \n\nAmounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nFor the year ending March 31,\n\n \n\n \n\n \n\n2027\n\n \n\n \n\n5,346\n\n \n\n2028\n\n \n\n \n\n4,397\n\n \n\n2029\n\n \n\n \n\n3,609\n\n \n\n2030\n\n \n\n \n\n3,017\n\n \n\n2031\n\n \n\n \n\n2,497\n\n \n\nThereafter\n\n \n\n \n\n7,971\n\n \n\n \n\n \n\n26,837\n\n \n\nLess: imputed interest\n\n \n\n \n\n(5,111\n\n)\n\nTotal operating lease liabilities (Note 19)\n\n \n\n \n\n21,726\n\n \n\n \n\nF-40\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7.\nIncome tax expenses\n\nStarting from the year ended March 31, 2026, the Company adopted ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” prospectively.\n\nComposition of income tax expenses\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCurrent income tax expense\n\n \n\n \n\n27,792\n\n \n\n \n\n \n\n35,071\n\n \n\n \n\n \n\n32,573\n\n \n\nDeferred taxation\n\n \n\n \n\n(5,263\n\n)\n\n \n\n \n\n374\n\n \n\n \n\n \n\n(2,528\n\n)\n\n \n\n \n\n22,529\n\n \n\n \n\n \n\n35,445\n\n \n\n \n\n \n\n30,045\n\n \n\nThe composition of income tax expenses for the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nChinese mainland\n\n \n\n \n\n28,081\n\n \n\nNon-Chinese mainland\n\n \n\n \n\n1,964\n\n \n\n \n\n \n\n30,045\n\n \n\n \n\nUnder the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. The Company’s subsidiaries incorporated in Hong Kong were subject to the Hong Kong profits tax rate at 16.5% for the years ended March 31, 2024, 2025 and 2026. The Company’s subsidiaries incorporated in other jurisdictions were subject to income tax charges calculated according to the tax laws enacted or substantially enacted in the countries where they operate and generate income.\n\nCurrent income tax expense primarily includes the provision for PRC Enterprise Income Tax (“EIT”) for subsidiaries operating in the PRC and withholding tax on earnings that have been declared for distribution by PRC subsidiaries to offshore holding companies. Substantially all of the Company’s income before income tax and share of results of equity method investees is generated by these PRC subsidiaries. These subsidiaries are subject to EIT on their taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant tax laws, rules and regulations in the PRC.\n\n \n\nF-41\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7.\nIncome tax expenses (Continued)\n\nComposition of income tax expenses (Continued)\n\nUnder the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. In addition, the EIT Law provides for, among others, a preferential tax rate of 15% for enterprises qualified as High and New Technology Enterprises. The High and New Technology Enterprise qualification is re-assessed by the relevant authorities every three years. Further, certain subsidiaries were recognized as Software Enterprises and thereby entitled to full exemption from EIT for two years beginning from their first profitable calendar year and a 50% reduction for the subsequent three calendar years. In addition, a duly recognized Key Software Enterprise (“KSE”) within China’s national plan can enjoy a preferential EIT rate of 10%. The KSE status is subject to review by the relevant authorities every year and the timing of the annual review and notification by the relevant authorities may vary from year to year. The related reduction in tax expense as a result of official notification confirming the KSE status is accounted for upon the receipt of such notification.\n\nThe tax status of the subsidiaries of the Company with major taxable profits is described below:\n\n•\nAlibaba (China) Technology Co., Ltd. (“Alibaba China”), Taobao (China) Software Co., Ltd. (“Taobao China”) and Zhejiang Tmall Technology Co., Ltd. (“Tmall China”), entities primarily engaged in the operations of the Company’s wholesale marketplaces, Taobao and Tmall, respectively, and Alibaba (Beijing) Software Services Co., Ltd. (“Alibaba Beijing”) and Alibaba (China) Co., Ltd. (“China Co.”), entities primarily engaged in the operations of technology, software research and development and relevant services, were qualified as High and New Technology Enterprises. For the taxation years of 2023, 2024 and 2025, Alibaba China, Taobao China, Tmall China, Alibaba Beijing and China Co. applied an EIT rate of 15% as High and New Technology Enterprises.\n\nMost of the remaining PRC entities of the Company are subject to EIT at 25% for the years ended March 31, 2024, 2025 and 2026.\n\nPursuant to the EIT Law, a 10% withholding tax is levied on dividends declared by PRC companies to their foreign investors. A lower withholding tax rate of 5% is applicable if direct foreign investors with at least 25% equity interest in the PRC company are incorporated in Hong Kong and meet the relevant requirements pursuant to the tax arrangement between Chinese mainland and Hong Kong SAR. Since the equity holders of the major PRC subsidiaries of the Company are Hong Kong incorporated companies and meet the relevant requirements pursuant to the tax arrangement between Chinese mainland and Hong Kong SAR., the Company has used 5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As of March 31, 2026, the Company has accrued the withholding tax on substantially all of the distributable earnings of the PRC subsidiaries, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB278.9 billion.\n\n \n\nF-42\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7.\nIncome tax expenses (Continued)\n\nComposition of deferred tax assets and liabilities\n\n \n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nDeferred tax assets\n\n \n\n \n\n \n\n \n\n \n\n \n\nLicensed copyrights\n\n \n\n \n\n6,351\n\n \n\n \n\n \n\n6,547\n\n \n\nTax losses carried forward and others (i)\n\n \n\n \n\n66,120\n\n \n\n \n\n \n\n79,571\n\n \n\n \n\n \n\n72,471\n\n \n\n \n\n \n\n86,118\n\n \n\nValuation allowance (ii)\n\n \n\n \n\n(59,310\n\n)\n\n \n\n \n\n(72,161\n\n)\n\nTotal deferred tax assets\n\n \n\n \n\n13,161\n\n \n\n \n\n \n\n13,957\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeferred tax liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nIdentifiable intangible assets\n\n \n\n \n\n(5,122\n\n)\n\n \n\n \n\n(4,115\n\n)\n\nWithholding tax on undistributed earnings (iii)\n\n \n\n \n\n(8,559\n\n)\n\n \n\n \n\n(8,559\n\n)\n\nEquity method investees and others (iv)\n\n \n\n \n\n(34,773\n\n)\n\n \n\n \n\n(33,386\n\n)\n\nTotal deferred tax liabilities\n\n \n\n \n\n(48,454\n\n)\n\n \n\n \n\n(46,060\n\n)\n\nNet deferred tax liabilities\n\n \n\n \n\n(35,293\n\n)\n\n \n\n \n\n(32,103\n\n)\n\n \n\n(i)\nOthers generally represent deferred tax assets for property and equipment, investments in equity method investees, equity securities and other investments, as well as accrued expenses which are not deductible until paid under PRC tax laws.\n\n(ii)\nChange in valuation allowances generally represents valuation allowances provided on the deferred tax assets related to the tax losses carried forward, accrued expenses which are not deductible until paid under PRC tax laws, property and equipment, as well as investments in equity securities and other investments due to the uncertainty surrounding their realization. If events occur in the future that improve the certainty of realization, an adjustment to the valuation allowances will be made and consequently income tax expenses will be reduced.\n\n(iii)\nThe related deferred tax liabilities as of March 31, 2025 and 2026 were provided on the assumption that substantially all of the distributable earnings of PRC subsidiaries will be distributed as dividends, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB362.6 billion and RMB278.9 billion, respectively.\n\n(iv)\nDeferred tax liabilities for investments in equity method investees mainly includes the deferred tax effect on the gain in relation to the receipt of the 33% equity interest in Ant Group of RMB19.7 billion. Others primarily represents deferred tax liabilities for investments in equity securities and other investments.\n\n \n\nF-43\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7.\nIncome tax expenses (Continued)\n\nComposition of deferred tax assets and liabilities (Continued)\n\nAs of March 31, 2026, the accumulated tax losses of subsidiaries incorporated in Singapore, Hong Kong SAR. and Türkiye, subject to the agreement of the relevant tax authorities, of RMB41,453 million, RMB7,458 million and RMB7,259 million, respectively, are allowed to be carried forward to offset against future taxable profits. The carry forward of tax losses in Singapore and Hong Kong SAR. generally has no time limit, while the tax losses in Türkiye will expire, if unused, in the years ending March 31, 2027 through 2031. The accumulated tax losses of subsidiaries incorporated in the PRC, subject to the agreement of the PRC tax authorities, of RMB200,082 million as of March 31, 2026 will expire, if unused, in the years ending March 31, 2027 through 2036. In general, the PRC tax authorities have up to five years to review a company's tax filings. Accordingly, tax filings of the Company's PRC subsidiaries for tax years 2021 through 2025 remain subject to the review by the relevant PRC tax authorities.\n\nReconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company\n\nThe reconciliation prior to the adoption of ASU 2023-09 is as follows:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions, except per share data)\n\n \n\nIncome before income tax and share of results of equity method\n  investees\n\n \n\n \n\n101,596\n\n \n\n \n\n \n\n155,455\n\n \n\nIncome tax computed at statutory EIT rate (25%)\n\n \n\n \n\n25,399\n\n \n\n \n\n \n\n38,864\n\n \n\nEffect of different tax rates available to different jurisdictions\n\n \n\n \n\n(1,095\n\n)\n\n \n\n \n\n(1,089\n\n)\n\nEffect of tax holiday and preferential tax benefit on assessable\n  profits of subsidiaries incorporated in the PRC\n\n \n\n \n\n(14,135\n\n)\n\n \n\n \n\n(20,258\n\n)\n\nNon-deductible expenses and non-taxable income, net (i)\n\n \n\n \n\n11,006\n\n \n\n \n\n \n\n10,673\n\n \n\nAdditional deductions of certain research and development expenses\n  incurred by subsidiaries in the PRC (ii)\n\n \n\n \n\n(9,415\n\n)\n\n \n\n \n\n(9,320\n\n)\n\nWithholding tax on the earnings distributed and anticipated to be\n  remitted\n\n \n\n \n\n6,127\n\n \n\n \n\n \n\n5,938\n\n \n\nChange in valuation allowance and others (iii)\n\n \n\n \n\n4,642\n\n \n\n \n\n \n\n10,637\n\n \n\nIncome tax expenses\n\n \n\n \n\n22,529\n\n \n\n \n\n \n\n35,445\n\n \n\nEffect of tax holidays inside the PRC on basic earnings per share\n\n \n\n \n\n0.70\n\n \n\n \n\n \n\n1.08\n\n \n\nEffect of tax holidays inside the PRC on basic earnings per ADS\n\n \n\n \n\n5.60\n\n \n\n \n\n \n\n8.62\n\n \n\n \n\n(i)\nExpenses not deductible for tax purposes and non-taxable income generally represent impairment of goodwill, investment income or loss and share-based compensation expense.\n\n(ii)\nThis amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC.\n\n(iii)\nChange in valuation allowance generally represents valuation allowance for temporary differences associated with tax losses, property and equipment and investments in equity securities and other investments. Besides, others primarily represent other tax benefits which were not previously recognized as well as deferred tax effect for temporary differences in relation to certain investments in equity method investees.\n\nF-44\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7. Income tax expenses (Continued)\n\nReconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company (Continued)\n\n \n\nThe reconciliation for the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions, except per share data)\n\n \n\n \n\nPercent\n\n \n\nIncome before income tax and share of results of equity method investees\n\n \n\n \n\n129,387\n\n \n\n \n\n \n\n \n\nIncome tax computed at statutory EIT rate (i)\n\n \n\n \n\n32,347\n\n \n\n \n\n \n\n25\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForeign tax effects\n\n \n\n \n\n(13,520\n\n)\n\n \n\n \n\n(10\n\n)\n\nHong Kong\n\n \n\n \n\n(15,838\n\n)\n\n \n\n \n\n(12\n\n)\n\nNon-deductible expenses and non-taxable income\n\n \n\n \n\n(14,645\n\n)\n\n \n\n \n\n(11\n\n)\n\nOthers\n\n \n\n \n\n(1,193\n\n)\n\n \n\n \n\n(1\n\n)\n\nSingapore\n\n \n\n \n\n2,618\n\n \n\n \n\n \n\n2\n\n \n\nNon-deductible expenses and non-taxable income\n\n \n\n \n\n2,594\n\n \n\n \n\n \n\n2\n\n \n\nOthers\n\n \n\n \n\n24\n\n \n\n \n\n \n\n—\n\n \n\nOther foreign jurisdictions\n\n \n\n \n\n(300\n\n)\n\n \n\n \n\n—\n\n \n\nEffect of cross-border tax laws\n\n \n\n \n\n24\n\n \n\n \n\n \n\n—\n\n \n\nChanges in valuation allowances (ii)\n\n \n\n \n\n20,873\n\n \n\n \n\n \n\n16\n\n \n\nNon-deductible expenses and non-taxable income\n\n \n\n \n\n(16,716\n\n)\n\n \n\n \n\n(13\n\n)\n\nAdditional deductions of certain research and development expenses\n     incurred by subsidiaries in the PRC (iii)\n\n \n\n \n\n(10,821\n\n)\n\n \n\n \n\n(9\n\n)\n\nEffect of tax holiday and preferential tax benefit on assessable\n     profits of subsidiaries incorporated in the PRC\n\n \n\n \n\n(11,950\n\n)\n\n \n\n \n\n(9\n\n)\n\nImpairment of goodwill\n\n \n\n \n\n2,379\n\n \n\n \n\n \n\n2\n\n \n\nOthers\n\n \n\n \n\n3,676\n\n \n\n \n\n \n\n3\n\n \n\nOther adjustments (iv)\n\n \n\n \n\n7,037\n\n \n\n \n\n \n\n5\n\n \n\nIncome tax expenses\n\n \n\n \n\n30,045\n\n \n\n \n\n \n\n23\n\n%\n\nEffect of tax holidays inside the PRC on basic earnings per share\n\n \n\n \n\n0.64\n\n \n\n \n\n \n\n \n\nEffect of tax holidays inside the PRC on basic earnings per ADS\n\n \n\n \n\n5.15\n\n \n\n \n\n \n\n \n\n \n\n(i)\nThe standard enterprise income tax rate for domestic enterprises and foreign invested enterprises of 25% under the EIT Law is used as substantially all of the Company’s income before income tax and share of results of equity method investees is generated by subsidiaries operating in the PRC.\n\n \n\n(ii)\nChange in valuation allowance generally represents valuation allowance for temporary differences associated with tax losses, accrued expenses which are not deductible until paid under PRC tax laws, property and equipment and investments in equity securities and other investments.\n \n\n(iii)\nThis amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC.\n \n\n(iv)\nOther adjustments generally represent withholding tax on the earnings distributed and anticipated to be remitted.\n\nF-45\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n7. Income tax expenses (Continued)\n\n \n\nComposition of cash paid for income tax, net of refunds received\n\nThe composition of cash paid for income tax, net of refunds received for the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nChinese mainland\n\n \n\n \n\n30,729\n\n \n\nNon-Chinese mainland\n\n \n\n \n\n3,284\n\n \n\n \n\n \n\n34,013\n\n \n\nIncome tax paid was RMB32,486 million and RMB33,409 million for the years ended March 31, 2024 and 2025 respectively.\n\n \n\nF-46\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards\n\n(a)\nShare-based awards relating to ordinary shares of the Company\n\nShare-based awards such as RSUs, incentive and non-statutory stock options, restricted shares, dividend equivalents, share appreciation rights and share payments may be granted to any directors, employees and consultants of the Company or affiliated companies under equity incentive plans adopted since the inception of the Company.\n\nThe 2014 Post-IPO Equity Incentive Plan (the “2014 Plan”) was adopted in September 2014 and has a ten-year term. No further awards will be granted under the plan as from September 18, 2024. Any shares authorized but unissued under the 2014 Plan will no longer be available for granting. The share-based awards already granted under the 2014 Plan will remain in full force and effect pursuant to the terms and conditions of the 2014 Plan. Eight ordinary shares are issuable upon the vesting or the exercise of one share-based award under the 2014 Plan.\n\nThe 2024 Equity Incentive Plan (the “2024 Plan”) and the 2024 Equity Incentive Plan (Existing Shares) (the “2024 Plan (Existing Shares)”) (collectively, the “2024 equity incentive plans”) were adopted in August 2024 and have a ten-year term. As of the adoption date of the 2024 Plan and 2024 Plan (Existing Shares), the number of share-based awards available for grant under the scheme mandates were 483,000,000 and 517,000,000 ordinary shares, respectively. As of March 31, 2026, the number of shares authorized but unissued under the 2024 Plan and 2024 Plan (Existing Shares) were 398,965,778 and 487,865,170 ordinary shares, respectively. One ordinary share is issuable upon the vesting or the exercise of one share-based award under the 2024 equity incentive plans.\n\nRSUs\n\nThe 2014 Plan\n\nA summary of the changes in the RSUs relating to ordinary shares granted by the Company under the 2014 Plan during the year ended March 31, 2026 is as follows:\n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted-\n\n \n\n \n\n \n\n \n\n \n\naverage\n\n \n\n \n\nNumber\n\n \n\n \n\ngrant date\n\n \n\n \n\nof RSUs (iii)\n\n \n\n \n\nfair value\n\n \n\n \n\n \n\n \n\n \n\nUS$\n\n \n\nAwarded and unvested as of April 1, 2025\n\n \n\n \n\n44,859,478\n\n \n\n \n\n \n\n100.65\n\n \n\nVested\n\n \n\n \n\n(18,702,211\n\n)\n\n \n\n \n\n115.81\n\n \n\nCanceled/forfeited\n\n \n\n \n\n(2,434,911\n\n)\n\n \n\n \n\n90.22\n\n \n\nAwarded and unvested as of March 31, 2026 (i)\n\n \n\n \n\n23,722,356\n\n \n\n \n\n \n\n89.76\n\n \n\nExpected to vest as of March 31, 2026 (ii)\n\n \n\n \n\n21,143,315\n\n \n\n \n\n \n\n90.20\n\n \n\n \n\nF-47\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards (Continued)\n\n(a)\nShare-based awards relating to ordinary shares of the Company (Continued)\n\nRSUs (Continued)\n\nThe 2024 equity incentive plans\n\nA summary of the changes in the RSUs relating to ordinary shares granted by the Company under the 2024 equity incentive plans during the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted-\n\n \n\n \n\n \n\n \n\n \n\naverage\n\n \n\n \n\nNumber\n\n \n\n \n\ngrant date\n\n \n\n \n\nof RSUs (iv)\n\n \n\n \n\nfair value\n\n \n\n \n\n \n\n \n\n \n\nHK$\n\n \n\nAwarded and unvested as of April 1, 2025\n\n \n\n \n\n9,435,535\n\n \n\n \n\n \n\n123.53\n\n \n\nGranted\n\n \n\n \n\n78,651,801\n\n \n\n \n\n \n\n122.32\n\n \n\nVested\n\n \n\n \n\n(13,153,093\n\n)\n\n \n\n \n\n121.32\n\n \n\nCanceled/forfeited\n\n \n\n \n\n(3,367,614\n\n)\n\n \n\n \n\n118.01\n\n \n\nAwarded and unvested as of March 31, 2026 (i)\n\n \n\n \n\n71,566,629\n\n \n\n \n\n \n\n122.86\n\n \n\nExpected to vest as of March 31, 2026 (ii)\n\n \n\n \n\n63,604,272\n\n \n\n \n\n \n\n123.08\n\n \n\n \n\n \n\n(i)\nNo outstanding RSUs will be vested after the expiry of a period of up to ten years from the date of grant.\n\n(ii)\nRSUs expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding RSUs.\n\n(iii)\nEight ordinary shares are issuable upon the vesting or the exercise of one share-based award under the 2014 Plan.\n\n(iv)\nOne ordinary share is issuable upon the vesting or the exercise of one share-based award under the 2024 equity incentive plans.\n\nAs of March 31, 2026, there were RMB6,694 million of unamortized compensation costs related to all outstanding RSUs, net of expected forfeitures. These amounts are expected to be recognized over a weighted average period of 1.9 years.\n\nDuring the years ended March 31, 2024, 2025 and 2026, the Company recognized share-based compensation expense of RMB17,734 million, RMB10,772 million and RMB8,568 million, respectively, in connection with the above RSUs.\n\n \n\nF-48\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards (Continued)\n\n(a)\nShare-based awards relating to ordinary shares of the Company (Continued)\n\nShare options\n\nThe 2014 Plan\n\nA summary of the changes in the share options relating to ordinary shares granted by the Company under the 2014 Plan during the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted\n\n \n\n \n\n \n\n \n\n \n\nWeighted\n\n \n\n \n\naverage\n\n \n\n \n\nNumber\n\n \n\n \n\naverage\n\n \n\n \n\nremaining\n\n \n\n \n\nof share\n\n \n\n \n\nexercise\n\n \n\n \n\ncontractual\n\n \n\n \n\noptions (iii)\n\n \n\n \n\nprice\n\n \n\n \n\nlife\n\n \n\n \n\n \n\n \n\n \n\nUS$\n\n \n\n \n\n(in years)\n\n \n\nOutstanding as of April 1, 2025\n\n \n\n \n\n6,635,667\n\n \n\n \n\n \n\n88.89\n\n \n\n \n\n \n\n4.5\n\n \n\nExercised\n\n \n\n \n\n(2,007,667\n\n)\n\n \n\n \n\n72.78\n\n \n\n \n\n \n\n—\n\n \n\nCanceled/forfeited\n\n \n\n \n\n(1,000,000\n\n)\n\n \n\n \n\n182.48\n\n \n\n \n\n \n\n—\n\n \n\nOutstanding as of March 31, 2026\n\n \n\n \n\n3,628,000\n\n \n\n \n\n \n\n72.00\n\n \n\n \n\n \n\n5.2\n\n \n\nVested and exercisable as of March 31, 2026 (i)\n\n \n\n \n\n2,173,000\n\n \n\n \n\n \n\n71.86\n\n \n\n \n\n \n\n3.9\n\n \n\nVested and expected to vest as of March 31, 2026 (ii)\n\n \n\n \n\n3,628,000\n\n \n\n \n\n \n\n72.00\n\n \n\n \n\n \n\n5.2\n\n \n\nDuring the years ended March 31, 2024 and 2025, the weighted average grant date fair value of share options granted was US$40.30 and US$35.93, respectively. No share options were granted under the 2014 Plan during the year ended March 31, 2026.\n\nThe 2024 equity incentive plans\n\nA summary of the changes in the share options relating to ordinary shares granted by the Company under the 2024 equity incentive plans during the year ended March 31, 2026 is as follows:\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted\n\n \n\n \n\n \n\n \n\n \n\nWeighted\n\n \n\n \n\naverage\n\n \n\n \n\nNumber\n\n \n\n \n\naverage\n\n \n\n \n\nremaining\n\n \n\n \n\nof share\n\n \n\n \n\nexercise\n\n \n\n \n\ncontractual\n\n \n\n \n\noptions (iv)\n\n \n\n \n\nprice\n\n \n\n \n\nlife\n\n \n\n \n\n \n\n \n\n \n\nHK$\n\n \n\n \n\n(in years)\n\n \n\nOutstanding as of April 1, 2025\n\n \n\n \n\n2,933,332\n\n \n\n \n\n \n\n68.00\n\n \n\n \n\n \n\n5.9\n\n \n\nGranted\n\n \n\n \n\n25,439,998\n\n \n\n \n\n \n\n130.92\n\n \n\n \n\n \n\n9.4\n\n \n\nOutstanding as of March 31, 2026\n\n \n\n \n\n28,373,330\n\n \n\n \n\n \n\n124.41\n\n \n\n \n\n \n\n8.9\n\n \n\nVested and exercisable as of March 31, 2026 (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nVested and expected to vest as of March 31, 2026 (ii)\n\n \n\n \n\n28,068,375\n\n \n\n \n\n \n\n125.03\n\n \n\n \n\n \n\n9.0\n\n \n\nDuring the years ended March 31, 2025 and 2026, the weighted average grant date fair value of share options granted was HK$87.27 and HK$86.36, respectively. No share options were granted under the 2024 equity incentive plans during the year ended March 31, 2024.\n\n \n\n \n\n \n\nF-49\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards (Continued)\n\n(a)\nShare-based awards relating to ordinary shares of the Company (Continued)\n\nShare options (Continued)\n\n \n\n(i)\nNo outstanding share options will be vested or exercisable after the expiry of a period of up to twelve and ten years from the date of grant under the 2014 Plan and the 2024 equity incentive plans, respectively.\n\n(ii)\nShare options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding share options.\n\n(iii)\nEight ordinary shares are issuable upon the vesting or the exercise of one share-based award under the 2014 Plan.\n\n(iv)\nOne ordinary share is issuable upon the vesting or the exercise of one share-based award under the 2024 equity incentive plans.\n\nAs of March 31, 2026, the aggregate intrinsic value of all outstanding options was RMB1,561 million. As of the same date, the aggregate intrinsic value of options that were vested and exercisable and options that were vested and expected to vest was RMB805 million and RMB1,547 million, respectively.\n\nDuring the years ended March 31, 2024, 2025 and 2026, the total grant date fair value of options vested was RMB238 million, RMB408 million and RMB305 million, respectively, and the aggregate intrinsic value of share options exercised during the same years was RMB382 million, RMB128 million and RMB681 million, respectively.\n\nCash received from option exercises under the share option plans for the years ended March 31, 2024, 2025 and 2026 was RMB843 million, RMB10 million and RMB1,042 million, respectively.\n\nThe fair value of each option granted during the years ended March 31, 2024, 2025 and 2026 is estimated on the measurement date using the Black-Scholes model by applying the assumptions below:\n\n \n\n \n\nYear ended March 31,\n\n \n\n2024\n\n \n\n2025\n\n \n\n2026\n\nRisk-free interest rate (i)\n\n \n\n4.50%\n\n \n\n3.36% - 4.49%\n\n \n\n2.16% - 2.71%\n\nExpected dividend yield (ii)\n\n \n\n0%\n\n \n\n0%\n\n \n\n0%\n\nExpected life (years) (iii)\n\n \n\n6.50\n\n \n\n4.45 - 4.75\n\n \n\n4.45 - 7.50\n\nExpected volatility (iv)\n\n \n\n44.80%\n\n \n\n48.51% - 49.44%\n\n \n\n49.18% - 51.78%\n\n \n\n(i)\nRisk-free interest rate is based on the risk-free yields with maturities similar to the expected life of the share options in effect on the measurement date.\n\n(ii)\nFor the share options granted during the years ended March 31, 2024, 2025 and 2026, expected dividend yield is nil as the Company decided to pay upon the exercise of such share options in an amount equivalent to the dividends as detailed in Note 31 to the participants.\n\n(iii)\nExpected life of share options is based on management’s estimate on timing of exercise of share options.\n\n(iv)\nExpected volatility is assumed based on the historical volatility of the Company in the period equal to the expected life of each grant.\n\n \n\nF-50\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards (Continued)\n\n(a)\nShare-based awards relating to ordinary shares of the Company (Continued)\n\nShare options (Continued)\n\nAs of March 31, 2026, there were RMB1,920 million of unamortized compensation costs related to these outstanding share options, net of expected forfeitures. These amounts are expected to be recognized over a weighted average period of 3.1 years.\n\nDuring the years ended March 31, 2024, 2025 and 2026, the Company recognized share-based compensation expense of RMB240 million, RMB349 million and RMB578 million, respectively, in connection with the above share options.\n\nFollowing the dividends as detailed in Note 31, the Company decided to pay upon vesting of certain RSUs or exercise of certain share options in an amount equivalent to the dividends to the participants. This arrangement has no impact to the classification and vesting condition of the awards.\n\n(b)\nShare-based awards relating to Ant Group\n\nPrior to 2023, certain employees of the Company were granted share-based awards by Ant Group and Hangzhou Junhan Equity Investment Partnership (“Junhan”), a major equity holder of Ant Group. These awards tied to the valuation of Ant Group and are settled by respective grantors upon disposal of these awards by the holders, vesting or exercise of these awards, depending on the forms of these awards. In addition, Junhan and Ant Group have the right to repurchase the vested awards (or any underlying equity for the settlement of the vested awards) granted by them, as applicable, from the holders upon an initial public offering of Ant Group or the termination of the holders’ employment with the Company at a price to be determined based on the then fair market value of Ant Group.\n\nFor accounting purposes, these awards meet the definition of a financial derivative. The cost relating to these awards is recognized by the Company and the related expense is recognized over the requisite service period in the consolidated income statements with a corresponding credit to additional paid-in capital. Subsequent changes in the fair value of these awards are recorded in the consolidated income statements. The expenses relating to these awards are remeasured at the fair value on each reporting date until their settlement dates. The fair value of the underlying equity is primarily determined based on the contemporaneous valuation report, external information and information obtained from Ant Group.\n\nDuring the years ended March 31, 2024, 2025 and 2026, the Company recognized a net reversal of RMB6,691 million, expenses of RMB4 million and a net reversal of RMB16 million, respectively, in respect of the share-based awards relating to Ant Group.\n\nStarting from April 2020, the parties agreed to settle with each other the cost associated with certain share-based awards granted to each other’s employees upon vesting. The settlement amounts under this arrangement depend on the values of Ant Group share-based awards granted to the Company’s employees and the Company’s share-based awards granted to employees of Ant Group, in which the net settlement amount is insignificant to the Company.\n\nShare-based awards relating to ordinary shares of the Company and Ant Group are generally subject to a four-year vesting schedule as determined by the administrator of the plans, or a vesting period of up to ten years for certain management members of the Company.\n\nF-51\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n8.\nShare-based awards (Continued)\n\n(c)\nShare-based compensation expense by function\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCost of revenue\n\n \n\n \n\n3,012\n\n \n\n \n\n \n\n2,162\n\n \n\n \n\n \n\n2,023\n\n \n\nProduct development expenses\n\n \n\n \n\n7,623\n\n \n\n \n\n \n\n6,700\n\n \n\n \n\n \n\n6,016\n\n \n\nSales and marketing expenses\n\n \n\n \n\n2,265\n\n \n\n \n\n \n\n2,137\n\n \n\n \n\n \n\n2,321\n\n \n\nGeneral and administrative expenses\n\n \n\n \n\n5,646\n\n \n\n \n\n \n\n4,578\n\n \n\n \n\n \n\n4,461\n\n \n\n \n\n \n\n18,546\n\n \n\n \n\n \n\n15,577\n\n \n\n \n\n \n\n14,821\n\n \n\n \n\n9.\nEarnings per share/ADS\n\nEach ADS represents eight ordinary shares.\n\nBasic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, adjusted for treasury shares. Basic earnings per ADS is derived from the basic earnings per share.\n\nFor the calculation of diluted earnings per share, net income attributable to ordinary shareholders for basic earnings per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible unsecured senior notes and exchangeable bonds under the if-converted method. Certain potentially dilutive instruments, including the exchangeable bonds and the share lending arrangement in connection with the issuance of the exchangeable bonds, and the capped call transactions in connection with the issuance of the convertible unsecured senior notes have been excluded from the computation of diluted net income per share as their inclusion is anti-dilutive. Diluted earnings per ADS is derived from the diluted earnings per share.\n\nF-52\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n9.\nEarnings per share/ADS (Continued)\n\nThe following table sets forth the computation of basic and diluted net income per share/ADS for the following periods:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions, except per share data)\n\n \n\nEarnings per share\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNumerator:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income attributable to ordinary shareholders for computing\n   net income per ordinary share — basic\n\n \n\n \n\n79,741\n\n \n\n \n\n \n\n129,470\n\n \n\n \n\n \n\n105,904\n\n \n\nDilution effect on earnings arising from equity-settled share-based\n   awards operated by equity method investees and subsidiaries\n\n \n\n \n\n(228\n\n)\n\n \n\n \n\n(300\n\n)\n\n \n\n \n\n(410\n\n)\n\nAdjustments for interest expense attributable to convertible\n   unsecured senior notes\n\n \n\n \n\n—\n\n \n\n \n\n \n\n235\n\n \n\n \n\n \n\n309\n\n \n\nNet income attributable to ordinary shareholders for\n   computing net income per ordinary share — diluted\n\n \n\n \n\n79,513\n\n \n\n \n\n \n\n129,405\n\n \n\n \n\n \n\n105,803\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nShares (denominator):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average number of shares used in calculating net\n   income per ordinary share — basic (million shares)\n\n \n\n \n\n20,182\n\n \n\n \n\n \n\n18,791\n\n \n\n \n\n \n\n18,568\n\n \n\nAdjustments for dilutive RSUs and share options (million shares)\n\n \n\n \n\n177\n\n \n\n \n\n \n\n200\n\n \n\n \n\n \n\n200\n\n \n\nAdjustments for convertible unsecured senior notes\n   (million shares)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n327\n\n \n\n \n\n \n\n467\n\n \n\nWeighted average number of shares used in calculating net\n   income per ordinary share — diluted (million shares)\n\n \n\n \n\n20,359\n\n \n\n \n\n \n\n19,318\n\n \n\n \n\n \n\n19,235\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per ordinary share — basic (RMB)\n\n \n\n \n\n3.95\n\n \n\n \n\n \n\n6.89\n\n \n\n \n\n \n\n5.70\n\n \n\nNet income per ordinary share — diluted (RMB)\n\n \n\n \n\n3.91\n\n \n\n \n\n \n\n6.70\n\n \n\n \n\n \n\n5.50\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nEarnings per ADS\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per ADS — basic (RMB)\n\n \n\n \n\n31.61\n\n \n\n \n\n \n\n55.12\n\n \n\n \n\n \n\n45.63\n\n \n\nNet income per ADS — diluted (RMB)\n\n \n\n \n\n31.24\n\n \n\n \n\n \n\n53.59\n\n \n\n \n\n \n\n44.00\n\n \n\n \n\n10.\nRestricted cash and escrow receivables\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nBuyer protection fund deposits from merchants on the marketplaces (i)\n\n \n\n \n\n35,962\n\n \n\n \n\n \n\n35,965\n\n \n\nOthers\n\n \n\n \n\n7,819\n\n \n\n \n\n \n\n6,073\n\n \n\n \n\n \n\n43,781\n\n \n\n \n\n \n\n42,038\n\n \n\n \n\n(i)\nThe amount represents buyer protection fund deposits received from merchants on the Company’s marketplaces, which are restricted for the purpose of compensating buyers for claims against merchants. A corresponding liability is recorded in other deposits and advances received under accrued expenses, accounts payable and other liabilities (Note 19) on the consolidated balance sheets.\n\nF-53\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n11.\nEquity securities and other investments\n\n \n\n \n\nAs of March 31, 2025\n\n \n\n \n\nOriginal\ncost\n\n \n\n \n\nCumulative\nnet (losses) gains\n\n \n\n \n\nCarrying\nvalue\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nListed equity securities\n\n \n\n \n\n79,024\n\n \n\n \n\n \n\n(1,394\n\n)\n\n \n\n \n\n77,630\n\n \n\nInvestments in privately held companies\n\n \n\n \n\n113,646\n\n \n\n \n\n \n\n(17,479\n\n)\n\n \n\n \n\n96,167\n\n \n\nDebt investments:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDebt securities and loan investments\n\n \n\n \n\n15,009\n\n \n\n \n\n \n\n(6,224\n\n)\n\n \n\n \n\n8,785\n\n \n\nOther treasury investments\n\n \n\n \n\n227,935\n\n \n\n \n\n \n\n81\n\n \n\n \n\n \n\n228,016\n\n \n\n \n\n \n\n435,614\n\n \n\n \n\n \n\n(25,016\n\n)\n\n \n\n \n\n410,598\n\n \n\n \n\n \n\nAs of March 31, 2026\n\n \n\n \n\nOriginal\ncost\n\n \n\n \n\nCumulative\nnet gains (losses)\n\n \n\n \n\nCarrying\nvalue\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nListed equity securities\n\n \n\n \n\n70,647\n\n \n\n \n\n \n\n29,947\n\n \n\n \n\n \n\n100,594\n\n \n\nInvestments in privately held companies\n\n \n\n \n\n117,826\n\n \n\n \n\n \n\n12,621\n\n \n\n \n\n \n\n130,447\n\n \n\nDebt investments:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDebt securities and loan investments\n\n \n\n \n\n15,905\n\n \n\n \n\n \n\n(5,025\n\n)\n\n \n\n \n\n10,880\n\n \n\nOther treasury investments\n\n \n\n \n\n238,353\n\n \n\n \n\n \n\n(278\n\n)\n\n \n\n \n\n238,075\n\n \n\n \n\n \n\n \n\n442,731\n\n \n\n \n\n \n\n37,265\n\n \n\n \n\n \n\n479,996\n\n \n\nEquity securities\n\nFor equity securities which were still held as of March 31, 2024, 2025 and 2026, net unrealized (losses) gains, including impairment losses, of RMB(28,790) million, RMB16,746 million and RMB56,295 million, respectively, were recognized in interest and investment income, net, for the years ended March 31, 2024, 2025 and 2026.\n\nInvestments in privately held companies include equity investments for which the Company elected to account for using the measurement alternative (Note 2(t)), for which the carrying value as of March 31, 2025 and 2026 were RMB88,728 million and RMB124,979 million, respectively.\n\nFor equity investments accounted for using the measurement alternative as of March 31, 2025, the Company recorded cumulative upward adjustments of RMB27,197 million and cumulative impairments and downward adjustments of RMB44,232 million. For these investments, the Company recorded upward adjustments of RMB8,345 million and impairments and downward adjustments of RMB10,033 million during the year ended March 31, 2025.\n\nFor equity investments accounted for using the measurement alternative as of March 31, 2026, the Company recorded cumulative upward adjustments of RMB61,221 million and cumulative impairments and downward adjustments of RMB46,255 million. For these investments, the Company recorded upward adjustments of RMB39,416 million and impairments and downward adjustments of RMB8,187 million during the year ended March 31, 2026.\n\nF-54\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n11.\nEquity securities and other investments (Continued)\n\nDebt investments\n\nDebt investments include convertible and exchangeable bonds accounted for under the fair value option, for which the fair value as of March 31, 2025 and 2026 were RMB963 million and RMB2,989 million, respectively. The aggregate fair value of these convertible and exchangeable bonds was lower than their aggregate unpaid principal balance as of March 31, 2025 and 2026 by RMB2,420 million and RMB1,068 million, respectively. Unrealized (losses) gains recorded on these convertible and exchangeable bonds in the consolidated income statements were RMB(1,225) million, RMB(17) million and RMB149 million during the years ended March 31, 2024, 2025 and 2026, respectively.\n\nDebt investments also include debt investments accounted for at amortized cost, for which the allowance for credit losses as of March 31, 2025 and 2026 were RMB3,779 million and RMB3,917 million, respectively. During the years ended March 31, 2024, 2025 and 2026, impairment losses (reversal of impairment losses) on these debt investments of RMB872 million, RMB(1,175) million and RMB536 million, respectively, were recorded in interest and investment income, net in the consolidated income statements. As of March 31, 2026, RMB4,764 million of debt investments accounted for at amortized cost, net of allowance for credit losses, will contractually mature in 2033.\n\nAs of March 31, 2025 and 2026, repayment of loans provided to shareholders of equity method investees with total principal amount of RMB5,529 million and RMB5,845 million, respectively, was expected to be provided substantially through the sale of collateral. Expected credit losses for these loans were assessed on an individual basis, based on the fair value of the corresponding shares pledged as collateral as of the reporting date, adjusted for selling costs as appropriate. The fair value of the collateral as of March 31, 2025 and 2026 were RMB4,325 million and RMB4,996 million, respectively. There was no commitment to lend additional funds.\n\nThe carrying amount of debt investments accounted for at amortized cost approximates their fair value due to the fact that the related effective interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities.\n\nOther treasury investments mainly comprise of investments in fixed deposits, certificates of deposits and marketable debt securities with original maturities over one year for treasury purposes. RMB4,540 million and RMB4,017 million of other treasury investments were pledged as security which were restricted for withdrawal and use as of March 31, 2025 and 2026, respectively. The remaining balances of RMB223,476 million and RMB234,058 million were unrestricted for withdrawal and use as of March 31, 2025 and 2026, respectively.\n\n12.\nFair value measurement\n\nFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:\n\n \n\nLevel 1 —\n\nValuations based on unadjusted quoted prices for identical assets and liabilities in active markets.\n\nLevel 2 —\n\nValuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.\n\nLevel 3 —\n\nValuations based on unobservable inputs reflecting assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.\n\n \n\nF-55\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n12.\nFair value measurement (Continued)\n\nFair value of listed equity investments are based on quoted prices in active markets for identical assets or liabilities and, if applicable, are adjusted for the characteristic included in the equity security. The valuation of unlisted equity investments that do not have a quoted price may include the use of market and income valuation approaches and the use of estimates, which may include discount rates, investees’ liquidity and financial performance, and market data of comparable companies in similar industries. Certain other financial instruments, such as interest rate swap contracts and certain option and forward agreements, are valued based on inputs derived from or corroborated by observable market data. Valuations of investments in convertible and exchangeable bonds that do not have a quoted price are generally performed using valuation models such as the binomial model with unobservable inputs including risk-free interest rate and expected volatility. The valuation of the exchangeable bonds is primarily determined based on quoted market price in the over-the-counter market. The valuation of contingent consideration is performed using an expected cash flow method with unobservable inputs including the probability to achieve the contingencies, which is assessed by the Company, in connection with the contingent consideration arrangements. Investments in privately held companies for which the Company elected to record using the measurement alternative are remeasured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are estimated based on valuation methods using the observable transaction price at the transaction date and considering the rights and obligations of the securities and other unobservable inputs including volatility.\n\nThe following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized under the fair value hierarchy:\n\n \n\n \n\nAs of March 31, 2025\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTime deposits and certificate of deposits (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n357,569\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n357,569\n\n \n\nWealth management products (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n83,144\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n83,144\n\n \n\nMarketable debt securities (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,129\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,129\n\n \n\nRestricted cash and escrow receivables\n\n \n\n \n\n43,781\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n43,781\n\n \n\nListed equity securities (ii)\n\n \n\n \n\n67,712\n\n \n\n(v)\n\n \n\n9,918\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n77,630\n\n \n\nConvertible and exchangeable bonds (ii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n145\n\n \n\n \n\n \n\n818\n\n \n\n \n\n \n\n963\n\n \n\nOption and forward agreements (iii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n87\n\n \n\n \n\n \n\n814\n\n \n\n \n\n \n\n901\n\n \n\nDeferred consideration (iii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,039\n\n \n\n \n\n \n\n3,039\n\n \n\nOthers (vi)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,329\n\n \n\n \n\n \n\n6,047\n\n \n\n \n\n \n\n7,376\n\n \n\n \n\n \n\n111,493\n\n \n\n \n\n \n\n468,321\n\n \n\n \n\n \n\n10,718\n\n \n\n \n\n \n\n590,532\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContingent consideration in relation to\n   investments and acquisitions (iv)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n484\n\n \n\n \n\n \n\n484\n\n \n\nOthers (iv)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n389\n\n \n\n \n\n \n\n924\n\n \n\n \n\n \n\n1,313\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n389\n\n \n\n \n\n \n\n1,408\n\n \n\n \n\n \n\n1,797\n\n \n\n \n\nF-56\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n12.\nFair value measurement (Continued)\n\n \n\n \n\nAs of March 31, 2026\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTime deposits and certificate of deposits (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n244,844\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n244,844\n\n \n\nWealth management products (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n81,501\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n81,501\n\n \n\nMarketable debt securities (i)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n64,311\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n64,311\n\n \n\nRestricted cash and escrow receivables\n\n \n\n \n\n42,038\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n42,038\n\n \n\nListed equity securities (ii)\n\n \n\n \n\n95,318\n\n \n\n(v)\n\n \n\n5,276\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n100,594\n\n \n\nConvertible and exchangeable bonds (ii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,989\n\n \n\n \n\n \n\n2,989\n\n \n\nOption and forward agreements (iii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,159\n\n \n\n \n\n \n\n1,127\n\n \n\n \n\n \n\n2,286\n\n \n\nDeferred consideration (iii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,019\n\n \n\n \n\n \n\n3,019\n\n \n\nOthers (vi)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,794\n\n \n\n \n\n \n\n4,081\n\n \n\n \n\n \n\n7,875\n\n \n\n \n\n \n\n \n\n137,356\n\n \n\n \n\n \n\n400,885\n\n \n\n \n\n \n\n11,216\n\n \n\n \n\n \n\n549,457\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExchangeable bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,976\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,976\n\n \n\nContingent consideration in relation to\n   investments and acquisitions (iv)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n408\n\n \n\n \n\n \n\n408\n\n \n\nOthers (iv)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,955\n\n \n\n \n\n \n\n609\n\n \n\n \n\n \n\n3,564\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,931\n\n \n\n \n\n \n\n1,017\n\n \n\n \n\n \n\n14,948\n\n \n\n \n\n(i)\nIncluded in short-term investments and equity securities and other investments on the consolidated balance sheets.\n\n(ii)\nIncluded in equity securities and other investments on the consolidated balance sheets.\n\n(iii)\nIncluded in prepayments, receivables and other assets on the consolidated balance sheets.\n\n(iv)\nIncluded in accrued expenses, accounts payable and other liabilities on the consolidated balance sheets.\n\n(v)\nAs of March 31, 2025 and 2026, listed equity securities with fair value of RMB11,921 million and RMB41,800 million were subject to contractual sale restrictions, respectively. The contractual sale restrictions would lapse within twelve months from March 31, 2026.\n\n(vi)\nOthers primarily represent other investments with underlying assets measured at fair value.\n\nConvertible and exchangeable bonds investments categorized within Level 3 under the fair value hierarchy:\n\n \n\n \n\n \n\nAmounts\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nBalance as of March 31, 2024\n\n \n\n \n\n3,197\n\n \n\nAdditions\n\n \n\n \n\n311\n\n \n\nNet increase in fair value\n\n \n\n \n\n63\n\n \n\nDisposal\n\n \n\n \n\n(1,767\n\n)\n\nConversion\n\n \n\n \n\n(985\n\n)\n\nForeign currency translation adjustments\n\n \n\n \n\n(1\n\n)\n\nBalance as of March 31, 2025\n\n \n\n \n\n818\n\n \n\nAdditions\n\n \n\n \n\n2,343\n\n \n\nNet increase in fair value\n\n \n\n \n\n73\n\n \n\nDisposal\n\n \n\n \n\n(112\n\n)\n\nConversion\n\n \n\n \n\n(61\n\n)\n\nForeign currency translation adjustments\n\n \n\n \n\n(72\n\n)\n\nBalance as of March 31, 2026\n\n \n\n \n\n2,989\n\n \n\n \n\nF-57\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n12.\nFair value measurement (Continued)\n\nDeferred consideration categorized within Level 3 under the fair value hierarchy:\n\n \n\n \n\n \n\nAmounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nBalance as of March 31, 2024\n\n \n\n \n\n—\n\n \n\nAdditions\n\n \n\n \n\n3,022\n\n \n\nNet increase in fair value\n\n \n\n \n\n14\n\n \n\nForeign currency translation adjustments\n\n \n\n \n\n3\n\n \n\nBalance as of March 31, 2025\n\n \n\n \n\n3,039\n\n \n\nNet increase in fair value\n\n \n\n \n\n40\n\n \n\nForeign currency translation adjustments\n\n \n\n \n\n(60\n\n)\n\nBalance as of March 31, 2026\n\n \n\n \n\n3,019\n\n \n\n \n\n13.\nPrepayments, receivables and other assets\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable and contract assets, net of allowance\n\n \n\n \n\n31,172\n\n \n\n \n\n \n\n36,020\n\n \n\nInventories\n\n \n\n \n\n18,887\n\n \n\n \n\n \n\n18,909\n\n \n\nVAT receivables, net of allowance\n\n \n\n \n\n26,336\n\n \n\n \n\n \n\n32,303\n\n \n\nPrepaid cost of revenue, sales and marketing and other expenses\n\n \n\n \n\n20,556\n\n \n\n \n\n \n\n22,556\n\n \n\nAdvances to/receivables from customers, merchants and others\n\n \n\n \n\n52,976\n\n \n\n \n\n \n\n90,671\n\n \n\nAmounts due from related companies\n\n \n\n \n\n12,058\n\n \n\n \n\n \n\n21,587\n\n \n\nInterest receivables\n\n \n\n \n\n6,533\n\n \n\n \n\n \n\n4,198\n\n \n\nDeferred direct selling costs and cost of revenue (i)\n\n \n\n \n\n5,365\n\n \n\n \n\n \n\n5,479\n\n \n\nOthers\n\n \n\n \n\n28,292\n\n \n\n \n\n \n\n20,114\n\n \n\n \n\n \n\n202,175\n\n \n\n \n\n \n\n251,837\n\n \n\nNon-current:\n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease right-of-use assets\n\n \n\n \n\n39,202\n\n \n\n \n\n \n\n45,524\n\n \n\nDeferred tax assets (Note 7)\n\n \n\n \n\n13,161\n\n \n\n \n\n \n\n13,957\n\n \n\nFilm costs and prepayment for licensed copyrights and others\n\n \n\n \n\n12,889\n\n \n\n \n\n \n\n10,964\n\n \n\nPrepayment for acquisition of property and equipment\n\n \n\n \n\n6,799\n\n \n\n \n\n \n\n3,787\n\n \n\nOthers\n\n \n\n \n\n11,380\n\n \n\n \n\n \n\n20,764\n\n \n\n \n\n \n\n83,431\n\n \n\n \n\n \n\n94,996\n\n \n\n \n\n(i)\nThe Company is obligated to pay certain costs upon the receipt of membership fees from merchants or other customers, which primarily consist of sales commissions, and certain costs associated with cloud services. The membership fees and cloud services revenue are initially deferred and recognized as revenue in the consolidated income statements in the period in which the services are rendered. As such, the related costs are also initially deferred and recognized in the consolidated income statements in the same period as the related service fees and revenue are recognized.\n\n \n\nF-58\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n14.\nInvestments in equity method investees\n\n \n\n \n\nAmounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\n \n\n \n\n \n\n \n\nBalance as of March 31, 2024\n\n \n\n \n\n203,131\n\n \n\nAdditions\n\n \n\n \n\n3,827\n\n \n\nShare of results, other comprehensive income and other reserves (i)\n\n \n\n \n\n8,794\n\n \n\nDisposals\n\n \n\n \n\n(2,606\n\n)\n\nDistributions\n\n \n\n \n\n(3,906\n\n)\n\nTransfers\n\n \n\n \n\n3,559\n\n \n\nImpairment loss (ii)\n\n \n\n \n\n(2,723\n\n)\n\nForeign currency translation adjustments\n\n \n\n \n\n93\n\n \n\nBalance as of March 31, 2025\n\n \n\n \n\n210,169\n\n \n\nAdditions\n\n \n\n \n\n3,999\n\n \n\nShare of results, other comprehensive income and other reserves (i)\n\n \n\n \n\n3,141\n\n \n\nDisposals\n\n \n\n \n\n(6,540\n\n)\n\nDistributions\n\n \n\n \n\n(4,684\n\n)\n\nTransfers\n\n \n\n \n\n2,052\n\n \n\nImpairment loss (ii)\n\n \n\n \n\n(15\n\n)\n\nForeign currency translation adjustments\n\n \n\n \n\n(1,319\n\n)\n\nBalance as of March 31, 2026\n\n \n\n \n\n206,803\n\n \n\n \n\n(i)\nShare of results, other comprehensive income and other reserves include the share of results of the equity method investees, the gain or loss arising from the deemed disposal of the equity method investees and basis differences arising from equity method investees. The amount excludes the expenses relating to the share-based awards underlying the equity of the Company and Ant Group granted to employees of certain equity method investees.\n\n(ii)\nImpairment loss recorded represents other-than-temporary decline in fair value below the carrying value of the investments in equity method investees. The valuation inputs for the fair value measurement with respect to the impairments include the stock price for equity method investees that are listed, as well as certain unobservable inputs that are not subject to meaningful aggregation.\n\nAs of March 31, 2026, equity method investments with an aggregate carrying amount of RMB21,274 million are publicly traded and the total market value of these investments amounted to RMB25,291 million. As of March 31, 2026, the Company’s retained earnings included undistributed earnings from equity method investees of RMB55,550 million.\n\nFor the years ended March 31, 2024, 2025 and 2026, equity method investments held by the Company in aggregate have met the significance criteria as defined under Rule 4-08(g) of Regulation S-X. As such, the Company is required to present summarized financial information for all of its equity method investments as a group as follows:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nOperating data:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n\n \n\n451,861\n\n \n\n \n\n \n\n473,328\n\n \n\n \n\n \n\n477,781\n\n \n\nCost of revenue\n\n \n\n \n\n(312,422\n\n)\n\n \n\n \n\n(339,466\n\n)\n\n \n\n \n\n(339,041\n\n)\n\nIncome from operations\n\n \n\n \n\n56,646\n\n \n\n \n\n \n\n43,488\n\n \n\n \n\n \n\n12,575\n\n \n\nNet income\n\n \n\n \n\n75,820\n\n \n\n \n\n \n\n47,012\n\n \n\n \n\n \n\n83,354\n\n \n\n \n\nF-59\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n14.\nInvestments in equity method investees (Continued)\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nBalance sheet data:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent assets\n\n \n\n \n\n695,532\n\n \n\n \n\n \n\n732,354\n\n \n\nNon-current assets\n\n \n\n \n\n930,191\n\n \n\n \n\n \n\n943,638\n\n \n\nCurrent liabilities\n\n \n\n \n\n494,677\n\n \n\n \n\n \n\n536,862\n\n \n\nNon-current liabilities\n\n \n\n \n\n132,780\n\n \n\n \n\n \n\n114,325\n\n \n\nNoncontrolling interests and mezzanine equity\n\n \n\n \n\n16,991\n\n \n\n \n\n \n\n30,755\n\n \n\n \n\n15.\nProperty and equipment, net\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nBuilding, property improvements and other property\n\n \n\n \n\n104,600\n\n \n\n \n\n \n\n121,396\n\n \n\nComputer equipment and software\n\n \n\n \n\n157,252\n\n \n\n \n\n \n\n238,760\n\n \n\nConstruction in progress\n\n \n\n \n\n54,849\n\n \n\n \n\n \n\n55,637\n\n \n\nFurniture, office and transportation equipment and others\n\n \n\n \n\n15,064\n\n \n\n \n\n \n\n17,729\n\n \n\n \n\n \n\n331,765\n\n \n\n \n\n \n\n433,522\n\n \n\nLess: accumulated depreciation and impairment\n\n \n\n \n\n(128,417\n\n)\n\n \n\n \n\n(150,823\n\n)\n\nNet book value\n\n \n\n \n\n203,348\n\n \n\n \n\n \n\n282,699\n\n \n\n \n\nDepreciation expenses recognized for the years ended March 31, 2024, 2025 and 2026 were RMB23,344 million, RMB24,515 million and RMB34,963 million, respectively.\n\n16.\nIntangible assets, net\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nUser base and customer relationships\n\n \n\n \n\n48,565\n\n \n\n \n\n \n\n39,871\n\n \n\nTrade names, trademarks and domain names\n\n \n\n \n\n26,936\n\n \n\n \n\n \n\n26,948\n\n \n\nNon-compete agreements\n\n \n\n \n\n6,030\n\n \n\n \n\n \n\n5,745\n\n \n\nDeveloped technology and patents\n\n \n\n \n\n4,823\n\n \n\n \n\n \n\n6,317\n\n \n\nLicensed copyrights (Note 2(x)) and others\n\n \n\n \n\n8,001\n\n \n\n \n\n \n\n7,703\n\n \n\n \n\n \n\n94,355\n\n \n\n \n\n \n\n86,584\n\n \n\nLess: accumulated amortization and impairment\n\n \n\n \n\n(73,444\n\n)\n\n \n\n \n\n(69,601\n\n)\n\nNet book value\n\n \n\n \n\n20,911\n\n \n\n \n\n \n\n16,983\n\n \n\n \n\nDuring the years ended March 31, 2024, 2025 and 2026, the Company acquired intangible assets amounting to RMB602 million, RMB1,544 million and RMB408 million, respectively, in connection with business combinations, which were measured at fair value upon acquisition. Details of intangible assets acquired in connection with business combinations are included in Note 4.\n\n \n\nDuring the year ended March 31, 2024, considered lower than expected profitability as a result of uncertainties in the market environment, the Company recognized impairment on intangible assets of RMB12,089 million primarily relating to trade names, trademarks and domain names relating to an asset group under All others. The fair value of the asset group is determined based on its market capitalization.\n\n \n\nF-60\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n16.\nIntangible assets, net (Continued)\n\nThe estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows:\n\n \n\n \n\nAmounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nFor the year ending March 31,\n\n \n\n \n\n \n\n2027\n\n \n\n \n\n3,833\n\n \n\n2028\n\n \n\n \n\n2,913\n\n \n\n2029\n\n \n\n \n\n2,331\n\n \n\n2030\n\n \n\n \n\n2,142\n\n \n\n2031\n\n \n\n \n\n1,713\n\n \n\nThereafter\n\n \n\n \n\n4,051\n\n \n\n \n\n \n\n16,983\n\n \n\n \n\n17.\nGoodwill\n\nChanges in the carrying amount of goodwill by segment for the years ended March 31, 2025 and 2026 were as follows:\n\n \n\n \n\n \n\n \n\n \n\nAlibaba\n\n \n\n \n\n \n\n \n\n \n\nCainiao\n\n \n\n \n\n \n\n \n\n \n\nHujing\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAlibaba\n\n \n\n \n\nInternational\n\n \n\n \n\n \n\n \n\n \n\nSmart\n\n \n\n \n\n \n\n \n\n \n\nDigital\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChina\n\n \n\n \n\nDigital\n\n \n\n \n\nCloud\n\n \n\n \n\nLogistics\n\n \n\n \n\nLocal\n\n \n\n \n\nMedia and\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nE-commerce\n\n \n\n \n\nCommerce\n\n \n\n \n\nIntelligence\n\n \n\n \n\nNetwork\n\n \n\n \n\nServices\n\n \n\n \n\nEntertainment\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGroup\n\n \n\n \n\nGroup\n\n \n\n \n\nGroup\n\n \n\n \n\nLimited\n\n \n\n \n\nGroup\n\n \n\n \n\nGroup\n\n \n\n \n\nAll others\n\n \n\n \n\nTotal\n\n \n\n \n\n(in millions of RMB)\n\n \n\nBalance as of\n   March 31, 2024\n\n \n\n \n\n164,945\n\n \n\n \n\n \n\n20,033\n\n \n\n \n\n \n\n3,638\n\n \n\n \n\n \n\n16,442\n\n \n\n \n\n \n\n20,447\n\n \n\n \n\n \n\n11,601\n\n \n\n \n\n \n\n22,573\n\n \n\n \n\n \n\n259,679\n\n \n\nAdditions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n84\n\n \n\n \n\n \n\n3,942\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n726\n\n \n\n \n\n \n\n147\n\n \n\n \n\n \n\n4,899\n\n \n\nDeconsolidations\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2,957\n\n)\n\n \n\n \n\n(2,957\n\n)\n\nImpairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,296\n\n)\n\n \n\n \n\n(1,875\n\n)\n\n \n\n \n\n(6,171\n\n)\n\nForeign currency\n   translation adjustments\n\n \n\n \n\n—\n\n \n\n \n\n \n\n44\n\n \n\n \n\n \n\n6\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n51\n\n \n\nBalance as of\n   March 31, 2025\n\n \n\n \n\n164,945\n\n \n\n \n\n \n\n20,077\n\n \n\n \n\n \n\n3,728\n\n \n\n \n\n \n\n20,385\n\n \n\n \n\n \n\n20,447\n\n \n\n \n\n \n\n8,031\n\n \n\n \n\n \n\n17,888\n\n \n\n \n\n \n\n255,501\n\n \n\nSegment changes\n\n \n\n \n\n12,948\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(20,385\n\n)\n\n \n\n \n\n(20,447\n\n)\n\n \n\n \n\n(8,031\n\n)\n\n \n\n \n\n35,915\n\n \n\n \n\n \n\n—\n\n \n\nAdditions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n1,342\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n951\n\n \n\n \n\n \n\n2,297\n\n \n\nDeconsolidations\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(319\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(227\n\n)\n\n \n\n \n\n(546\n\n)\n\nImpairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(9,515\n\n)\n\n \n\n \n\n(9,515\n\n)\n\nForeign currency\n   translation adjustments\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(366\n\n)\n\n \n\n \n\n8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1\n\n)\n\n \n\n \n\n(359\n\n)\n\nBalance as of\n   March 31, 2026\n\n \n\n \n\n177,893\n\n \n\n \n\n \n\n19,396\n\n \n\n \n\n \n\n5,078\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n45,011\n\n \n\n \n\n \n\n247,378\n\n \n\nStarting from the quarter ended June 30, 2025, Taobao and Tmall Group, Ele.me and Fliggy was integrated into Alibaba China E-commerce Group. At the same time, Cainiao, Amap and Hujing Digital Media and Entertainment Group were reclassified to All others.\n\n \n\nGross goodwill balances were RMB302,194 million and RMB303,610 million as of March 31, 2025 and 2026, respectively. Accumulated impairment losses were RMB46,693 million and RMB56,232 million as of March 31, 2025 and 2026, respectively.\n\nIn the annual goodwill impairment assessment, the Company concluded that the carrying amounts of certain reporting units exceeded their respective fair values and recorded impairment losses of RMB10,521 million, RMB6,171 million and RMB9,515 million during the years ended March 31, 2024, 2025 and 2026, respectively.\n\n \n\n \n\n \n\nF-61\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n17.\nGoodwill (Continued)\n\n \n\nDuring the year ended March 31, 2024, considered the changes in market conditions, the Company performed a quantitative\nimpairment test on one reporting unit under Hujing Digital Media and Entertainment Group (which was reclassified to All others starting from the quarter ended June 30, 2025), and recognized an impairment charge of RMB8,490 million. The fair value of this reporting unit was determined based on discounted cash flow analysis using assumptions including future growth rates and weighted average cost of capital. No further impairment charge was recognized relating to this reporting unit during the years ended March 31, 2025 and 2026.\n\n \n\nDuring the year ended March 31, 2025, considered the changes in market conditions, the Company performed a quantitative impairment test on another reporting unit under Hujing Digital Media and Entertainment Group (which was reclassified to All others starting from the quarter ended June 30, 2025) and recognized an impairment charge of RMB4,296 million. The fair value of this reporting unit was determined based on its market capitalization. No further impairment charge was recognized relating to this reporting unit during the year ended March 31, 2026.\n\n \n\nDuring the year ended March 31, 2026, considered the overall financial performance, the Company performed a quantitative impairment test on the other reporting unit under All others and recognized an impairment charge of RMB9,515 million. The fair value of this reporting unit was determined based on discounted cash flow analysis using assumptions including future growth rates and weighted average cost of capital.\n\n \n\nThe goodwill impairment is not allocated to segments because the CODM of the Company does not consider this as part of the segment operating performance measure (Note 29).\n\n18.\nDeferred revenue and customer advances\n\nDeferred revenue and customer advances primarily represent service fees prepaid by merchants or customers for which the relevant services have not been provided. The respective balances are as follows:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nDeferred revenue\n\n \n\n \n\n44,138\n\n \n\n \n\n \n\n46,079\n\n \n\nCustomer advances\n\n \n\n \n\n28,733\n\n \n\n \n\n \n\n36,221\n\n \n\n \n\n \n\n72,871\n\n \n\n \n\n \n\n82,300\n\n \n\nLess: current portion\n\n \n\n \n\n(68,335\n\n)\n\n \n\n \n\n(77,415\n\n)\n\nNon-current portion\n\n \n\n \n\n4,536\n\n \n\n \n\n \n\n4,885\n\n \n\n \n\nService fees received in advance are generally recorded as customer advances. These amounts are transferred to deferred revenue upon commencement of the provision of services by the Company and are recognized in the consolidated income statements in the period in which the services are provided. In general, service fees received in advance are non-refundable after the amounts are transferred to deferred revenue. Substantially all of the balances of deferred revenue and customer advances are generally recognized as revenue within one year.\n\nF-62\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n19.\nAccrued expenses, accounts payable and other liabilities\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\nPayables and accruals for cost of revenue and sales and marketing expenses (i)\n\n \n\n \n\n110,887\n\n \n\n \n\n \n\n131,127\n\n \n\nOther deposits and advances received (ii)\n\n \n\n \n\n53,793\n\n \n\n \n\n \n\n57,464\n\n \n\nPayable to merchants and third party marketing affiliates\n\n \n\n \n\n44,845\n\n \n\n \n\n \n\n55,212\n\n \n\nAccrued bonus and staff costs, including sales commission\n\n \n\n \n\n31,705\n\n \n\n \n\n \n\n32,457\n\n \n\nPayables and accruals for purchases of property and equipment\n\n \n\n \n\n34,312\n\n \n\n \n\n \n\n33,685\n\n \n\nAmounts due to related companies (iii)\n\n \n\n \n\n8,130\n\n \n\n \n\n \n\n7,563\n\n \n\nOther taxes payable (iv)\n\n \n\n \n\n7,641\n\n \n\n \n\n \n\n6,935\n\n \n\nOperating lease liabilities (Note 6)\n\n \n\n \n\n3,944\n\n \n\n \n\n \n\n4,318\n\n \n\nContingent and deferred consideration in relation to investments and\n   acquisitions\n\n \n\n \n\n8,590\n\n \n\n \n\n \n\n6,192\n\n \n\nOthers\n\n \n\n \n\n28,690\n\n \n\n \n\n \n\n24,940\n\n \n\n \n\n \n\n332,537\n\n \n\n \n\n \n\n359,893\n\n \n\nNon-current:\n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease liabilities (Note 6)\n\n \n\n \n\n13,463\n\n \n\n \n\n \n\n17,408\n\n \n\nContingent and deferred consideration in relation to investments and\n   acquisitions\n\n \n\n \n\n1,370\n\n \n\n \n\n \n\n938\n\n \n\nOthers\n\n \n\n \n\n2,811\n\n \n\n \n\n \n\n5,839\n\n \n\n \n\n \n\n17,644\n\n \n\n \n\n \n\n24,185\n\n \n\n(i)\nPayables and accruals for cost of revenue and sales and marketing expenses include payables which are collateralized by a pledge of certain short-term investments and other treasury investments with carrying values of RMB3,697 million and RMB4,091 million as of March 31, 2025 and 2026, respectively.\n\n(ii)\nOther deposits and advances received as of March 31, 2025 and 2026 include buyer protection fund deposits received from merchants on the Company’s marketplaces (Note 10).\n\n(iii)\nAmounts due to related companies primarily represent balances arising from the transactions with Ant Group (Note 25). The balances are unsecured, interest free and repayable within the next twelve months.\n\n(iv)\nOther taxes payable primarily represent VAT and PRC individual income tax of employees withheld by the Company.\n\n \n\n \n\nF-63\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n20.\nSupplier Finance Programs\n\nThe Company enters into agreements with several financial institutions and offer supplier finance programs to the Company’s suppliers. Suppliers can sell one or more of the Company’s payment obligations at their sole discretion to the financial institutions to receive funds, usually at a discounted price, prior to the scheduled due dates to meet their cash flow needs. The Company's current payment terms with the majority of suppliers are up to 180 days. Generally, the Company’s rights and obligations are not impacted and the original payment terms, timing or amount, remain unchanged. Except for the pledge of other treasury investments with carrying value of RMB1,500 million and nil as of March 31, 2025 and 2026, respectively, the Company did not provide assets pledged as security or other forms of guarantees under these supplier finance programs. The roll forward of the Company’s outstanding payment obligations under these supplier finance programs is as follows:\n\n \n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n(in millions)\n\n \n\nConfirmed obligations outstanding at the beginning of the year\n\n \n\n \n\n2,302\n\n \n\n \n\n \n\n6,075\n\n \n\nInvoices confirmed during the year\n\n \n\n \n\n33,626\n\n \n\n \n\n \n\n48,930\n\n \n\nConfirmed invoices paid during the year\n\n \n\n \n\n(29,853\n\n)\n\n \n\n \n\n(39,644\n\n)\n\nConfirmed obligations outstanding at the end of the year\n\n \n\n \n\n6,075\n\n \n\n \n\n \n\n15,361\n\n \n\nThe outstanding payment obligations under these supplier finance programs are generally recorded within accrued expenses, accounts payable and other liabilities on the consolidated balance sheets, except for certain arrangements in which the Company pays the discount to the financial institutions on behalf of the suppliers which are recorded within current bank borrowings. The respective balances are as follows:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAccrued expenses, accounts payable and other liabilities\n\n \n\n \n\n1,605\n\n \n\n \n\n \n\n4,427\n\n \n\nBank borrowings\n\n \n\n \n\n4,470\n\n \n\n \n\n \n\n10,934\n\n \n\n \n\n \n\n \n\n6,075\n\n \n\n \n\n \n\n15,361\n\n \n\n \n\nF-64\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n21.\nBank borrowings\n\nBank borrowings are analyzed as follows:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCurrent portion:\n\n \n\n \n\n \n\n \n\n \n\n \n\nSyndicated loan / revolving credit facility (i)(ii)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,900\n\n \n\nShort-term other borrowings (i)\n\n \n\n \n\n22,562\n\n \n\n \n\n \n\n24,324\n\n \n\n \n\n \n\n \n\n22,562\n\n \n\n \n\n \n\n28,224\n\n \n\nNon-current portion:\n\n \n\n \n\n \n\n \n\n \n\n \n\nSyndicated loan / revolving credit facility (ii)(iii)\n\n \n\n \n\n22,937\n\n \n\n \n\n \n\n—\n\n \n\nLong-term other borrowings (iii)\n\n \n\n \n\n26,972\n\n \n\n \n\n \n\n47,450\n\n \n\n \n\n \n\n49,909\n\n \n\n \n\n \n\n47,450\n\n \n\n \n\n(i)\nAs of March 31, 2025 and 2026, the Company had short-term borrowings from banks which were repayable within one year or on demand and charged interest rates ranging from 0.8% to 4.8% and 0.6% to 9.2% per annum, respectively. As of March 31, 2025 and 2026, the weighted average interest rate of these borrowings was 2.0% and 1.5% per annum, respectively. The borrowings are primarily denominated in RMB.\n\n(ii)\nAs of March 31, 2025, the Company had a syndicated loan which was initially entered into with a group of eight lead arrangers. Following the partial repayment of US$830 million in January 2025, the size of the syndicated loan was reduced from US$4.0 billion to US$3.17 billion. In September 2025, the Company amended the loan facility and reduced the pricing terms from Secured Overnight Financing Rate (“SOFR”) plus 80 basis points to SOFR plus 66 basis points. Effective in November 2025, the facility was restructured as a revolving credit facility with ancillary facility arrangement. The drawdowns are permitted in both U.S. dollars and Hong Kong dollars, and RMB is also permitted for ancillary facility. The expiration date of the facility was extended from May 2028 to September 30, 2028, with an option to further extend to September 30, 2030. The interest rate of the credit facility was 66 basis points over SOFR or Hong Kong Interbank Offered Rate (“HIBOR”), and the margin will be 81 basis points for the optional extension period. In December 2025, the Company repaid the outstanding balance of US$3.17 billion under the revolving credit facility. Certain related floating interest payments are hedged by certain interest rate swap contracts entered into by the Company during the years ended March 31, 2025 and 2026. As of March 31, 2026, the Company had a total outstanding borrowing amount of RMB3.9 billion under the ancillary facility arrangement by way of short-term loan facilities, and the unutilized commitment of this revolving credit facility was approximately US$2.6 billion.\n\n(iii)\nAs of March 31, 2025 and 2026, the Company had long-term borrowings from banks with weighted average interest rates of 3.9% and 2.5% per annum, respectively. The borrowings are primarily denominated in RMB.\n\nCertain other bank borrowings are collateralized by a pledge of certain buildings and property improvements, construction in progress and land use rights in the PRC, receivables and other treasury investments with carrying values of RMB30,213 million and RMB19,975 million, as of March 31, 2025 and 2026, respectively. As of March 31, 2026, the Company is in compliance with all covenants in relation to bank borrowings.\n\nAs of March 31, 2025 and 2026, the Company had a revolving credit facility provided by certain financial institutions which has not yet been drawn down. In September 2025, the Company amended the terms of the revolving credit facility agreement. The size of the credit facility was amended from US$6.5 billion to US$3.33 billion and the utilization currency was also amended from U.S. dollar only to both U.S. dollar and Hong Kong dollar. The interest rate on any outstanding utilized amount under this credit facility was adjusted from SOFR with a credit adjustment spread plus 80 basis points to SOFR or HIBOR plus 66 basis points. The expiration date of the credit facility was extended from June 24, 2026 to September 30, 2028, with an option to further extend to September 30, 2030 and the margin will be 81 basis points for the optional extension period.\n\nF-65\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n21.\nBank borrowings (Continued)\n\nAs of March 31, 2026, the future principal payments for the Company’s borrowings were as follows:\n\n \n\n \n\nPrincipal amounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nWithin 1 year\n\n \n\n \n\n28,224\n\n \n\nBetween 1 to 2 years\n\n \n\n \n\n1,453\n\n \n\nBetween 2 to 3 years\n\n \n\n \n\n4,849\n\n \n\nBetween 3 to 4 years\n\n \n\n \n\n5,420\n\n \n\nBetween 4 to 5 years\n\n \n\n \n\n26,951\n\n \n\nBeyond 5 years\n\n \n\n \n\n8,777\n\n \n\n \n\n \n\n75,674\n\n \n\n \n\n22.\nUnsecured senior notes\n\nIn November 2014, the Company issued unsecured senior notes including floating rate and fixed rate notes with varying maturities for an aggregate principal amount of US$8.0 billion (the “2014 Senior Notes”), of which US$1.3 billion was repaid in November 2017, US$2.25 billion was repaid in November 2019, US$1.5 billion was repaid in November 2021 and US$2.25 billion was repaid in November 2024. The 2014 Senior Notes are senior unsecured obligations that are listed on the HKSE, and interest is payable in arrears, quarterly for the floating rate notes and semiannually for the fixed rate notes.\n\nIn December 2017, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$7.0 billion (the “2017 Senior Notes”), of which US$0.7 billion was repaid in June 2023. The 2017 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually.\n\nIn February 2021, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$5.0 billion (the “2021 Senior Notes”). The 2021 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually.\n\nIn November 2024, the Company issued unsecured fixed rate senior notes with varying maturities, consisting of U.S. dollar-denominated notes for an aggregate principal amount of US$2.65 billion (the “2024 USD Senior Notes”) and RMB-denominated notes for an aggregate principal amount of RMB17 billion (the “2024 RMB Senior Notes”). The 2024 USD Senior Notes and 2024 RMB Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange and the Hong Kong Stock Exchange, respectively, and interest is payable in arrears semiannually.\n\n \n\nF-66\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n22.\nUnsecured senior notes (Continued)\n\nThe following table provides a summary of the Company’s unsecured senior notes as of March 31, 2025 and 2026:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\nEffective\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\ninterest rate\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n \n\n \n\n \n\n(in millions)\n\n \n\n \n\n \n\n \n\nUS$2,550 million 3.400% notes due 2027\n\n \n\n \n\n18,434\n\n \n\n \n\n \n\n17,582\n\n \n\n \n\n \n\n3.52\n\n%\n\nRMB8,400 million 2.650% notes due 2028\n\n \n\n \n\n8,353\n\n \n\n \n\n \n\n8,368\n\n \n\n \n\n \n\n2.83\n\n%\n\nRMB5,000 million 2.800% notes due 2029\n\n \n\n \n\n4,971\n\n \n\n \n\n \n\n4,977\n\n \n\n \n\n \n\n2.93\n\n%\n\nUS$1,000 million 4.875% notes due 2030\n\n \n\n \n\n7,205\n\n \n\n \n\n \n\n6,871\n\n \n\n \n\n \n\n5.01\n\n%\n\nUS$1,500 million 2.125% notes due 2031\n\n \n\n \n\n10,834\n\n \n\n \n\n \n\n10,328\n\n \n\n \n\n \n\n2.20\n\n%\n\nUS$700 million 4.500% notes due 2034\n\n \n\n \n\n5,034\n\n \n\n \n\n \n\n4,799\n\n \n\n \n\n \n\n4.60\n\n%\n\nRMB2,500 million 3.100% notes due 2034\n\n \n\n \n\n2,485\n\n \n\n \n\n \n\n2,486\n\n \n\n \n\n \n\n3.17\n\n%\n\nUS$1,150 million 5.250% notes due 2035\n\n \n\n \n\n8,268\n\n \n\n \n\n \n\n7,882\n\n \n\n \n\n \n\n5.35\n\n%\n\nUS$1,000 million 4.000% notes due 2037\n\n \n\n \n\n7,203\n\n \n\n \n\n \n\n6,865\n\n \n\n \n\n \n\n4.06\n\n%\n\nUS$1,000 million 2.700% notes due 2041\n\n \n\n \n\n7,158\n\n \n\n \n\n \n\n6,824\n\n \n\n \n\n \n\n2.80\n\n%\n\nRMB1,100 million 3.500% notes due 2044\n\n \n\n \n\n1,093\n\n \n\n \n\n \n\n1,094\n\n \n\n \n\n \n\n3.54\n\n%\n\nUS$1,750 million 4.200% notes due 2047\n\n \n\n \n\n12,586\n\n \n\n \n\n \n\n11,993\n\n \n\n \n\n \n\n4.25\n\n%\n\nUS$1,500 million 3.150% notes due 2051\n\n \n\n \n\n10,796\n\n \n\n \n\n \n\n10,287\n\n \n\n \n\n \n\n3.19\n\n%\n\nUS$500 million 5.625% notes due 2054\n\n \n\n \n\n3,597\n\n \n\n \n\n \n\n3,427\n\n \n\n \n\n \n\n5.67\n\n%\n\nUS$1,000 million 4.400% notes due 2057\n\n \n\n \n\n7,186\n\n \n\n \n\n \n\n6,847\n\n \n\n \n\n \n\n4.44\n\n%\n\nUS$1,000 million 3.250% notes due 2061\n\n \n\n \n\n7,195\n\n \n\n \n\n \n\n6,855\n\n \n\n \n\n \n\n3.28\n\n%\n\nCarrying value\n\n \n\n \n\n122,398\n\n \n\n \n\n \n\n117,485\n\n \n\n \n\n \n\n \n\nUnamortized discount and debt issuance costs\n\n \n\n \n\n838\n\n \n\n \n\n \n\n725\n\n \n\n \n\n \n\n \n\nTotal principal amounts of unsecured senior notes\n\n \n\n \n\n123,236\n\n \n\n \n\n \n\n118,210\n\n \n\n \n\n \n\n \n\nLess: current portion of principal amounts of unsecured senior\n   notes\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\nNon-current portion of principal amounts of unsecured senior\n   notes\n\n \n\n \n\n123,236\n\n \n\n \n\n \n\n118,210\n\n \n\n \n\n \n\n \n\n \n\nF-67\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n22.\nUnsecured senior notes (Continued)\n\nThe effective interest rates for the unsecured senior notes include the interest charged on the notes as well as amortization of the debt discounts and debt issuance costs.\n\nThe unsecured senior notes contain covenants including, among others, limitation on liens, consolidation, merger and sale of the Company’s assets. As of March 31, 2026, the Company is in compliance with all these covenants. In addition, the unsecured senior notes rank senior in right of payment to all of the Company’s existing and future indebtedness expressly subordinated in right of payment to the notes and rank at least equally in right of payment with all of the Company’s existing and future unsecured unsubordinated indebtedness (subject to any priority rights pursuant to applicable law).\n\nAs of March 31, 2026, the future principal payments for the Company’s unsecured senior notes were as follows:\n\n \n\n \n\nPrincipal amounts\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nWithin 1 year\n\n \n\n \n\n—\n\n \n\nBetween 1 to 2 years\n\n \n\n \n\n17,617\n\n \n\nBetween 2 to 3 years\n\n \n\n \n\n8,400\n\n \n\nBetween 3 to 4 years\n\n \n\n \n\n5,000\n\n \n\nBetween 4 to 5 years\n\n \n\n \n\n17,271\n\n \n\nThereafter\n\n \n\n \n\n69,922\n\n \n\n \n\n \n\n \n\n118,210\n\n \n\n \n\nAs of March 31, 2025 and 2026, the fair values of the Company’s unsecured senior notes, based on Level 2 inputs, were US$14,944 million (RMB108,368 million) and US$15,313 million (RMB105,792 million), respectively.\n\n23.\nConvertible unsecured senior notes\n\nIn May 2024, the Company issued convertible unsecured senior notes for an aggregate principal amount of US$5.0 billion due on June 1, 2031 (the “2024 Convertible Senior Notes”). The 2024 Convertible Senior Notes are senior unsecured obligations, and interest at an annual rate of 0.5% is payable in arrears semiannually. The 2024 Convertible Senior Notes may be converted into the Company’s ADSs, at the option of holders, at any time prior to the maturity date at an initial conversion rate of 9.5202 ADSs per US$1,000 principal amount.\n\nIn September 2025, the Company issued zero coupon convertible unsecured senior notes for an aggregate principal amount of approximately US$3.2 billion due on September 15, 2032 (the “2025 Convertible Senior Notes”). The 2025 Convertible Senior Notes are senior unsecured obligations. The 2025 Convertible Senior Notes may be converted into the Company’s ADSs, at the option of holders, at any time from March 15, 2032 until maturity at an initial conversion rate of 5.1773 ADSs per US$1,000 principal amount, and may be convertible prior to March 15, 2032 only upon satisfaction of certain conditions.\n\nThe initial conversion rates are subject to adjustment in some events such as dividend distribution. In addition, in the event of a fundamental change that occurs prior to the respective maturity dates or following the Company’s delivery of a notice of redemption, the Company will increase the initial conversion rates respectively, which shall not exceed 12.3762 ADSs per US$1,000 principal amount for the 2024 Convertible Senior Notes and 6.7953 ADSs per US$1,000 principal amount for the 2025 Convertible Senior Notes, for a holder who elects to convert its notes in connection with such a fundamental change or such notice of redemption. Such make-whole adjustments are subject to the same adjustments as the respective initial conversion rates noted above. Upon conversion, the Company will pay or deliver, at its election, cash, ADSs, or a combination of cash and ADSs. Holders may also elect to receive ordinary shares in lieu of any ADSs deliverable upon conversion, with each ADS representing eight ordinary shares.\n\n \n\nF-68\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n23.\nConvertible unsecured senior notes (Continued)\n\nAs of March 31, 2026, the adjusted conversion rate for the 2024 Convertible Senior Notes was 9.8915 ADSs per US$1,000 principal amount, and the adjusted conversion rate taking into account the make-whole adjustments was 12.8589 ADSs per US$1,000 principal amount. As of March 31, 2026, the conversion rate for the 2025 Convertible Senior Notes remained unadjusted at its initial conversion rate.\n\nThe Company may redeem for cash all but not part of the respective convertible senior notes in the event of certain tax law changes, or at any time if less than 10% of the aggregate principal amount of the respective convertible senior notes originally issued remains outstanding. The Company may also redeem for cash all or part of the 2024 Convertible Senior Notes and the 2025 Convertible Senior Notes on or after June 8, 2029 and September 20, 2030, respectively, provided that the Company’s ADS price has been at least 130% of the then effective conversion price for a specific period of time and on the specified date. The redemption price will be equal to the principal amount of the notes being redeemed plus accrued and unpaid interest, if any, to, but excluding, the related redemption date.\n\nHolders have the right to require the Company to repurchase for cash all or part of the 2024 Convertible Senior Notes and the 2025 Convertible Senior Notes on June 1, 2029 and September 15, 2030, respectively, or in the event of a fundamental change, subject to certain conditions. The repurchase price will be equal to the principal amount of the notes being repurchased plus accrued and unpaid interest, if any, to, but excluding, the related repurchase date.\n\nAs of March 31, 2025 and 2026, the unamortized debt discounts and debt issuance costs of the 2024 Convertible Senior Notes were RMB424 million and RMB308 million, respectively, and the fair value of the 2024 Convertible Senior Notes, based on level 2 inputs, was US$7,151 million (RMB51,854 million) and US$6,929 million (RMB47,869 million), respectively.\n\nAs of March 31, 2026, the unamortized debt discounts and debt issuance costs of the 2025 Convertible Senior Notes were RMB258 million, and the fair value of the 2025 Convertible Senior Notes, based on level 2 inputs, was US$3,047 million (RMB21,050 million).\n\nFor the years ended March 31, 2025 and 2026, the effective interest rate for the 2024 Convertible Senior Notes was approximately 0.8%. For the year ended March 31, 2026, the effective interest rate for the 2025 Convertible Senior Notes was approximately 0.3%.\n\nIn connection with the issuance of the convertible senior notes, the Company entered into capped call transactions with certain financial institutions at a cost of US$638 million (RMB4,612 million) and US$184 million (RMB1,309 million) for the 2024 Convertible Senior Notes and the 2025 Convertible Senior Notes, respectively, which are expected to reduce potential dilution and/or offset cash payments upon conversion. The cap prices of the capped call transactions for the 2024 Convertible Senior Notes and the 2025 Convertible Senior Notes are initially US$161.60 per ADS and US$235.46 per ADS, respectively. The capped prices are subject to adjustments similar to the adjustments on the conversion rates of the respective convertible senior notes. The capped call transactions may be settled in cash at the Company’s election.\n\nF-69\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n24.\nExchangeable bonds\n\nIn July 2025, the Company issued HKD denominated zero coupon exchangeable bonds referencing the ordinary shares of Alibaba Health Information Technology Limited (“Alibaba Health”), a subsidiary of the Company in which the Company holds approximately 64% of equity interest for an aggregate principal amount of approximately HK$12 billion (approximately RMB11 billion) due on July 9, 2032 (the “2025 Exchangeable Bonds”). The ordinary shares of Alibaba Health are listed on the Hong Kong Stock Exchange (“AH Shares”). The 2025 Exchangeable Bonds are unsecured and unsubordinated obligations of the Company and are listed on the Vienna MTF operated by the Vienna Stock Exchange.\n\nThe 2025 Exchangeable Bonds may be exchanged into the AH Shares, at the option of holders, at any time prior to the maturity date at an initial exchange rate of approximately 160,513.6 AH Shares per HK$1,000,000 principal amount.\n\nThe initial exchange rate is subject to adjustment in some events such as dividend distribution by Alibaba Health. In addition, in a relevant event such as the delisting of AH Shares occurring prior to the maturity date or following the Company’s delivery of a notice of redemption, the Company will increase the initial exchange rate, which shall not exceed approximately 237,529.7 AH Shares per HK$1,000,000 principal amount, for a holder who elects to exchange its bonds in connection with such a relevant event or such notice of redemption. Such make-whole adjustment is subject to the same adjustments as the initial exchange rate noted above. Upon exchange, the Company will pay or deliver, at its election, cash, AH Shares, or a combination of cash and AH Shares.\n\nAs of March 31, 2026, the exchange rate for the 2025 Exchangeable bonds remained unadjusted at its initial exchange rate.\n\nThe Company may redeem for cash all but not part of the 2025 Exchangeable Bonds in the event of certain tax law changes, or at any time if less than 10% of the aggregate principal amount of the 2025 Exchangeable Bonds originally issued remains outstanding. The Company may also redeem for cash all or part of the 2025 Exchangeable Bonds on or after July 9, 2030, provided that the AH Shares price has been at least 130% of the then effective exchange price for a specific period of time. The redemption price will be equal to the principal amount of the bonds being redeemed.\n\nHolders have the right to require the Company to repurchase for cash all or part of the 2025 Exchangeable Bonds on July 9, 2030, or in a relevant event, subject to certain conditions. The repurchase price will be equal to the principal amount of the bonds being repurchased.\n\nIn connection with the issuance of the 2025 Exchangeable Bonds, the Company entered into a stock borrowing and lending arrangement with an affiliate of one of the bookrunners (the “Borrower”), pursuant to which the Company has committed to lending a certain number of AH Shares, which shall not exceed the number of AH Shares exchangeable under the 2025 Exchangeable Bonds, to the Borrower to facilitate hedging activities of certain bondholders. If a termination event occurs and the Borrower is unable to deliver the AH Shares due to legal restrictions, force majeure, or market disruption, cash settlement by the Borrower would be required. As of March 31, 2026, the fair value of the outstanding AH Shares lent under the arrangement was HK$4,442 million (RMB3,914 million).\n\nFor the year ended March 31, 2026, losses of RMB22 million arising from changes in the fair value of the 2025 Exchangeable Bonds and the stock borrowing and lending arrangement were recorded in the consolidated income statements.\n\n \n\n \n\nF-70\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n25.\nRelated party transactions\n\nDuring the years ended March 31, 2024, 2025 and 2026, other than disclosed elsewhere, the Company had the following material related party transactions:\n\nTransactions with Ant Group and its affiliates\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAmounts earned by the Company\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCloud services revenue (i)\n\n \n\n \n\n8,814\n\n \n\n \n\n \n\n11,113\n\n \n\n \n\n \n\n19,134\n\n \n\nMarketplace software technology services fee and\n   other amounts earned (i)\n\n \n\n \n\n4,051\n\n \n\n \n\n \n\n6,046\n\n \n\n \n\n \n\n5,402\n\n \n\n \n\n \n\n12,865\n\n \n\n \n\n \n\n17,159\n\n \n\n \n\n \n\n24,536\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmounts incurred by the Company\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment processing and escrow services fee (ii)\n\n \n\n \n\n13,164\n\n \n\n \n\n \n\n15,467\n\n \n\n \n\n \n\n18,019\n\n \n\nOther amounts incurred (i)\n\n \n\n \n\n3,050\n\n \n\n \n\n \n\n4,314\n\n \n\n \n\n \n\n3,022\n\n \n\n \n\n \n\n16,214\n\n \n\n \n\n \n\n19,781\n\n \n\n \n\n \n\n21,041\n\n \n\n \n\n(i)\nThe Company has other commercial arrangements with Ant Group and its affiliates on various cloud computing services, sales and marketing and other services.\n\n(ii)\nThe Company has a commercial agreement with Alipay whereby the Company receives payment processing and escrow services in exchange for a payment for the services fee, which was recognized in cost of revenue.\n\nAs of March 31, 2025 and 2026, the Company had certain amounts of cash held in accounts managed by Alipay in connection with the provision of online and mobile commerce and related services for a total amount of RMB5,863 million and RMB5,545 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets.\n\n \n\n \n\nF-71\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n25.\nRelated party transactions (Continued)\n\nTransactions with other investees\n\nThe Company has commercial arrangements with certain investees of the Company related to cloud services. In connection with these services provided by the Company, RMB984 million, RMB4,507 million and RMB9,415 million were recorded in revenue in the consolidated income statements for the years ended March 31, 2024, 2025 and 2026, respectively.\n\nThe Company has commercial arrangements with certain investees of the Company related to marketing services. In connection with these services provided to the Company, RMB736 million, RMB1,010 million and RMB1,457 million were recorded in cost of revenue and sales and marketing expenses in the consolidated income statements for the years ended March 31, 2024, 2025 and 2026, respectively.\n\nThe Company has commercial arrangements with certain investees of the Company related to logistics services. In connection with these services provided by the Company, RMB2,540 million, RMB4,573 million and RMB3,301 million were recorded in revenue in the consolidated income statements for the years ended March 31, 2024, 2025 and 2026, respectively. Costs and expenses incurred in connection with these services provided to the Company of RMB14,864 million, RMB15,542 million and RMB19,267 million were recorded in the consolidated income statements for the same periods, respectively.\n\nThe Company has extended loans to certain investees for working capital and other uses in conjunction with the Company’s investments. As of March 31, 2025 and 2026, the aggregate outstanding balance of these loans was RMB1,771 million and RMB1,759 million, respectively, with remaining terms of up to five years and interest rates of up to 10% per annum as of March 31, 2025, and remaining terms of up to within five years and interest rates of up to 10% per annum as of March 31, 2026.\n\nThe Company provided a guarantee for a term loan facility of HK$7.7 billion in favor of Hong Kong Cingleot Investment Management Limited (“Cingleot”), a company that is partially owned by the Company, in connection with a logistics center development project at the Hong Kong International Airport. In May 2024, the loan facility was modified to a revolving loan facility and the facility amount was reduced to HK$6.5 billion. As of March 31, 2025 and 2026, HK$5.1 billion and HK$5.5 billion was drawn down by Cingleot under this facility, respectively. Moreover, we provide a partial guarantee for the continuing obligations of Cingleot to the Airport Authority.\n\nThe Company’s ecosystem offers different platforms on which different enterprises operate and the Company believes that all transactions on the Company’s platforms are conducted on terms determined based on normal commercial negotiation with similar unrelated parties.\n\nOther than the transactions disclosed above or elsewhere in the consolidated financial statements, the Company has commercial arrangements with other investees and other related parties to provide and receive certain marketing, cloud and other services and products. The amounts relating to these services provided and received represent less than 1% of the Company’s revenue and total costs and expenses, respectively, for the years ended March 31, 2024, 2025 and 2026.\n\nIn addition, the Company has made certain acquisitions and equity investments together with related parties from time to time during the years ended March 31, 2024, 2025 and 2026. The agreements for acquisitions and equity investments were entered into by the parties involved and conducted on fair value basis. The significant acquisitions and equity investments together with related parties are included in Note 4.\n\n26.\nRestricted net assets\n\nPRC laws and regulations permit payments of dividends by the Company’s subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50% of their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction amounted to RMB344,580 million as of March 31, 2026. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company.\n\nF-72\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n27.\nCommitments\n\n(a)\nCapital commitments\n\nThe Company’s capital commitments primarily relate to capital expenditures contracted for purchase of property and equipment, including the construction of corporate campuses. Total capital commitments contracted but not provided for amounted to RMB45,321 million and RMB54,136 million as of March 31, 2025 and 2026, respectively. The capital expenditures contracted for are analyzed as follows:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nNo later than 1 year\n\n \n\n \n\n44,067\n\n \n\n \n\n \n\n53,484\n\n \n\nLater than 1 year and no later than 5 years\n\n \n\n \n\n1,254\n\n \n\n \n\n \n\n652\n\n \n\n \n\n \n\n45,321\n\n \n\n \n\n \n\n54,136\n\n \n\n \n\n(b)\nInvestment commitments\n\nThe Company was obligated to pay up to RMB20,341 million and RMB14,501 million for business combinations and equity investments under various arrangements as of March 31, 2025 and 2026, respectively. The commitment balance as of March 31, 2025 and 2026 primarily includes the committed capital of certain investment funds.\n\n(c)\nOther commitments\n\nThe Company also has other commitments including commitments for co-location and bandwidth fees, licensed copyrights and marketing expenses. These commitments are analyzed as follows:\n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nNo later than 1 year\n\n \n\n \n\n32,364\n\n \n\n \n\n \n\n57,441\n\n \n\nLater than 1 year and no later than 5 years\n\n \n\n \n\n46,768\n\n \n\n \n\n \n\n133,598\n\n \n\nMore than 5 years\n\n \n\n \n\n5,094\n\n \n\n \n\n \n\n9,023\n\n \n\n \n\n \n\n84,226\n\n \n\n \n\n \n\n200,062\n\n \n\n \n\n28.\nRisks and contingencies\n\n(a)\nThe Company is incorporated in the Cayman Islands and considered as a foreign entity under PRC laws. Due to legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include the operations of Internet content providers, the Company operates its Internet businesses and other businesses through various contractual arrangements with VIEs that are incorporated in the PRC and owned by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. The VIEs hold the licenses and approvals that are essential for their business operations in the PRC and the Company has entered into various agreements with the VIEs and their equity holders such that the Company has the right to benefit from their licenses and approvals and generally has control of the VIEs. In the Company’s opinion, the current ownership structure and the contractual arrangements with the VIEs and their equity holders as well as the operations of the VIEs are in substantial compliance with all existing PRC laws, rules and regulations. However, there may be changes and other developments in PRC laws, rules and regulations. Accordingly, the Company gives no assurance that PRC government authorities will not take a view in the future that is contrary to the opinion of the Company. If the current ownership structure of the Company and its contractual arrangements with the VIEs and their equity holders were found to be in violation of any existing or future PRC laws or regulations, the Company’s ability to conduct its business could be impacted and the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changes in the PRC laws which may result in deconsolidation of the VIEs.\n\nF-73\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n28.\nRisks and contingencies (Continued)\n\n(b)\nThe PRC market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Company to operate or invest in e-commerce and cloud businesses, representing the principal services provided by the Company, in the PRC. The information and technology industries are highly regulated. Restrictions are currently in place or are unclear regarding what specific segments of these industries foreign owned enterprises, like the Company, may operate. If new or more extensive restrictions were imposed on the segments in which the Company is permitted to operate, the Company could be required to sell or cease to operate or invest in some or all of its current businesses in the PRC.\n\n(c)\nBecause of the Company’s equity interest in and close association with Ant Group and overlapping user bases, regulatory developments, litigation or proceedings, media and other reports, whether or not true, and other events that affect Ant Group could also negatively affect customers’, regulators’, investors’ and other third parties’ perception of the Company. Ant Group has completed its business rectification that was started in April 2021 under discussion with PRC regulators. In July 2023, PRC regulators announced a RMB7.07 billion fine for Ant Group, which was also reflected in the Company’s share of results of equity method investees during the year ended March 31, 2024. Changes in Ant Group’s business and future prospects, or speculation of such changes, as well as additional regulatory requirements placed on Ant Group, could in turn have a material adverse effect on the Company.\n\n(d)\nA significant majority of the Company’s revenues and costs are denominated in RMB and the majority of the Company’s financial assets are also denominated in RMB while the majority of the Company’s debt is denominated in US$. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”).\n\nRemittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies and require certain supporting documentation in order to effect the remittance. If the foreign exchange control system prevents the Company from obtaining sufficient foreign currencies to satisfy its currency demands, the Company may not be able to pay dividends in foreign currencies and the Company’s ability to fund its business activities that are conducted in foreign currencies could be adversely affected.\n\n(e)\nIn the ordinary course of business, the Company makes strategic investments to increase the service offerings and expand capabilities. The Company continually reviews its investments to determine whether there is a decline in fair value below the carrying value. Fair value of the listed securities is subject to volatility and may be materially affected by market fluctuations.\n\n(f)\nFinancial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, short-term investments, restricted cash and equity securities and other investments. As of March 31, 2025 and 2026, substantially all of the Company’s cash and cash equivalents, restricted cash, short-term investments and other treasury investments were held by major financial institutions located worldwide, including Chinese mainland and Hong Kong SAR. If the financial institutions and other issuers of financial instruments held by the Company could become insolvent or if the markets for these instruments could become illiquid as a result of a severe economic downturn or any other reason, the Company could lose some or all of the value of its investments.\n\n(g)\nDuring the years ended March 31, 2024, 2025 and 2026, the Company offered a trade assurance program on the international wholesale marketplaces at no charge to the wholesale buyers and sellers. If the wholesale sellers who participate in this program do not deliver the products in their stated specifications to the wholesale buyers on schedule, the Company may compensate the wholesale buyers for their losses on behalf of the wholesale sellers up to a pre-determined amount following a review of each particular case. In turn, the Company will seek a full reimbursement from the wholesale sellers for the prepaid reimbursement amount, yet the Company is exposed to a risk over the collectability of the reimbursement from the wholesale sellers. During the years ended March 31, 2024, 2025 and 2026, the Company did not incur any material losses with respect to the compensation provided under this program. Given that the maximum compensation for each wholesale seller is pre-determined based on their individual risk assessments by the Company considering their credit profile or other relevant information, the Company determined that the likelihood of material default on the payments are not probable and therefore no provisions have been made in relation to this program.\n\nF-74\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n28.\nRisks and contingencies (Continued)\n\n(h)\nIn the ordinary course of business, the Company is from time to time involved in legal proceedings and litigations and is subject to regulatory investigations. The more stringent obligations under laws and regulations will create additional operational requirements with increased compliance costs for the Company. In March 2024, the European Commission, or the EU Commission, opened formal proceeding against AliExpress to assess whether AliExpress breached the Digital Services Act. On June 18, 2025, the EU Commission issued preliminary findings in which it considers on a preliminary basis that AliExpress is in breach of its obligation to assess and mitigate risks related to the dissemination of illegal content on its platform. The ultimate timeline and final outcome of the investigation is currently uncertain and subject to further communications with the EU Commission and their final decision based on such further communications and their deliberations. Any potential loss associated with the investigation is not reasonably estimable at this stage. Except for the above, there are no legal proceedings and litigations that have in the recent past had, or to the Company’s knowledge, are probable to have, a material impact on the Company’s financial positions, results of operations or cash flows. The Company did not accrue any material loss contingencies in this respect as of March 31, 2025 and 2026.\n\n(i)\nThe Russia-Ukraine conflict and the conflicts in the Middle East have resulted in significant disruptions to energy prices, supply chains, logistics, data centers and business activities in the affected regions where the Company's operations, which have significantly increased the operating costs, reduced revenue, and negatively impacting the international commerce and logistics business. These conflicts have also caused, and continue to intensify, significant geopolitical tensions in Europe, the Middle East and across the globe. The resulting sanctions imposed have significant impacts on the economic conditions of the countries and markets targeted by such sanctions, and may have unforeseen, unpredictable secondary effects on global energy prices, supply chains and other aspects of the global economy. The conflict may adversely affect the Company’s business, financial condition and results of operations.\n\n(j)\nThe United Nations and a number of countries and jurisdictions, including China, the United States and the EU, have adopted various export control and economic or trade sanction regimes. In particular, the United States government and other governments have increasingly threatened and/or imposed export control, as well as economic, trade and other sanctions, trade embargoes, investment prohibitions or restriction and other heightened regulatory requirements on a number of China-based companies. These restrictions or sanctions, and similar or more expansive restrictions or sanctions that may be imposed by the United States or other jurisdictions in the future have affected and may have further material adverse effects on the Company’s ability to acquire technologies, systems, devices, components or computing capacities that may be critical to the Company’s technology infrastructure, service offerings and business operations, and thereby negatively affecting the Company’s ability to offer products and services (including those based on advanced computing chips and AI technologies) as well as the Company’s ability to continue to enhance the Company's technological capabilities. These restrictions may negatively affect the Company’s results of operations, financial condition and growth potential.\n\n29.\nSegment information\n\nPrior to the quarter ended June 30, 2025, the Company had six reportable segments, namely Taobao and Tmall Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, Cainiao Smart Logistics Network Limited, Local Services Group, and Hujing Digital Media and Entertainment Group. Starting from the quarter ended June 30, 2025, the Company has implemented a new organizational structure, which the CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change. Comparative figures for the years ended March 31, 2024 and 2025 were reclassified to conform to the segment presentation.\n\nSegment information is presented before elimination of inter-segment transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information.\n\nThe CODM regularly reviews adjusted earnings before interest, taxes and amortization (“Adjusted EBITA”) for each segment which is considered as a segment operating performance measure. The CODM uses revenue and Adjusted EBITA to assess performance for each segment and allocate resources for each segment in the annual budget and forecasting process.\n\n \n\nF-75\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n29.\nSegment information (Continued)\n\nThe following table presents the information by segment for the years ended March 31, 2024, 2025 and 2026:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAlibaba China E-commerce Group\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n\n \n\n490,101\n\n \n\n \n\n \n\n508,380\n\n \n\n \n\n \n\n554,217\n\n \n\nCosts and expenses (i)\n\n \n\n \n\n(303,131\n\n)\n\n \n\n \n\n(315,157\n\n)\n\n \n\n \n\n(446,708\n\n)\n\nAdjusted EBITA (ii)\n\n \n\n \n\n186,970\n\n \n\n \n\n \n\n193,223\n\n \n\n \n\n \n\n107,509\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAlibaba International Digital Commerce Group\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n\n \n\n102,598\n\n \n\n \n\n \n\n132,300\n\n \n\n \n\n \n\n144,170\n\n \n\nCosts and expenses (i)\n\n \n\n \n\n(110,633\n\n)\n\n \n\n \n\n(147,437\n\n)\n\n \n\n \n\n(146,221\n\n)\n\nAdjusted EBITA (ii)\n\n \n\n \n\n(8,035\n\n)\n\n \n\n \n\n(15,137\n\n)\n\n \n\n \n\n(2,051\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCloud Intelligence Group\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n\n \n\n106,374\n\n \n\n \n\n \n\n118,028\n\n \n\n \n\n \n\n158,132\n\n \n\nCosts and expenses (i)\n\n \n\n \n\n(100,253\n\n)\n\n \n\n \n\n(107,472\n\n)\n\n \n\n \n\n(143,867\n\n)\n\nAdjusted EBITA (ii)\n\n \n\n \n\n6,121\n\n \n\n \n\n \n\n10,556\n\n \n\n \n\n \n\n14,265\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAll others\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n\n \n\n317,539\n\n \n\n \n\n \n\n338,347\n\n \n\n \n\n \n\n254,367\n\n \n\nCosts and expenses (i)\n\n \n\n \n\n(328,791\n\n)\n\n \n\n \n\n(347,846\n\n)\n\n \n\n \n\n(290,104\n\n)\n\nAdjusted EBITA (ii)\n\n \n\n \n\n(11,252\n\n)\n\n \n\n \n\n(9,499\n\n)\n\n \n\n \n\n(35,737\n\n)\n\n \n\nF-76\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n29.\nSegment information (Continued)\n\nThe following table presents the reconciliation from the total segments Adjusted EBITA to the consolidated net income for the years ended March 31, 2024, 2025 and 2026:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nTotal segments Adjusted EBITA\n\n \n\n \n\n173,804\n\n \n\n \n\n \n\n179,143\n\n \n\n \n\n \n\n83,986\n\n \n\nUnallocated (iii)\n\n \n\n \n\n(6,190\n\n)\n\n \n\n \n\n(4,337\n\n)\n\n \n\n \n\n(5,150\n\n)\n\nInter-segment elimination\n\n \n\n \n\n(2,586\n\n)\n\n \n\n \n\n(1,741\n\n)\n\n \n\n \n\n(2,420\n\n)\n\nNon-cash share-based compensation expense\n\n \n\n \n\n(18,546\n\n)\n\n \n\n \n\n(13,970\n\n)\n\n \n\n \n\n(11,180\n\n)\n\nAmortization and impairment of intangible assets\n\n \n\n \n\n(21,592\n\n)\n\n \n\n \n\n(6,336\n\n)\n\n \n\n \n\n(5,079\n\n)\n\nImpairment of goodwill, and others\n\n \n\n \n\n(11,540\n\n)\n\n \n\n \n\n(11,854\n\n)\n\n \n\n \n\n(10,007\n\n)\n\nConsolidated income from operations\n\n \n\n \n\n113,350\n\n \n\n \n\n \n\n140,905\n\n \n\n \n\n \n\n50,150\n\n \n\nInterest and investment income, net\n\n \n\n \n\n(9,964\n\n)\n\n \n\n \n\n20,759\n\n \n\n \n\n \n\n87,512\n\n \n\nInterest expense\n\n \n\n \n\n(7,947\n\n)\n\n \n\n \n\n(9,596\n\n)\n\n \n\n \n\n(9,793\n\n)\n\nOther income, net\n\n \n\n \n\n6,157\n\n \n\n \n\n \n\n3,387\n\n \n\n \n\n \n\n1,518\n\n \n\nIncome tax expenses\n\n \n\n \n\n(22,529\n\n)\n\n \n\n \n\n(35,445\n\n)\n\n \n\n \n\n(30,045\n\n)\n\nShare of results of equity method investees\n\n \n\n \n\n(7,735\n\n)\n\n \n\n \n\n5,966\n\n \n\n \n\n \n\n2,785\n\n \n\nConsolidated net income\n\n \n\n \n\n71,332\n\n \n\n \n\n \n\n125,976\n\n \n\n \n\n \n\n102,127\n\n \n\n \n\nThe following table presents the depreciation and impairment of property and equipment, and operating lease cost relating to land use rights by segment for the years ended March 31, 2024, 2025 and 2026:\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nAlibaba China E-commerce Group\n\n \n\n \n\n532\n\n \n\n \n\n \n\n155\n\n \n\n \n\n \n\n94\n\n \n\nAlibaba International Digital Commerce Group\n\n \n\n \n\n961\n\n \n\n \n\n \n\n1,137\n\n \n\n \n\n \n\n878\n\n \n\nCloud Intelligence Group\n\n \n\n \n\n14,335\n\n \n\n \n\n \n\n15,911\n\n \n\n \n\n \n\n28,921\n\n \n\nAll others\n\n \n\n \n\n8,622\n\n \n\n \n\n \n\n7,818\n\n \n\n \n\n \n\n3,589\n\n \n\nTotal segments depreciation and impairment of property and\n   equipment, and operating lease cost relating to land use rights\n\n \n\n \n\n24,450\n\n \n\n \n\n \n\n25,021\n\n \n\n \n\n \n\n33,482\n\n \n\n \n\n(i)\nSegment costs and expenses primarily comprise components that are included in cost of revenue, product development expenses, sales and marketing expenses, as well as general and administrative expenses.\n\n(ii)\nAdjusted EBITA represents net income before interest and investment income, net, interest expense, other income, net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others, which the Company does not believe are reflective of the Company's core operating performance during the periods presented.\n\n(iii)\nUnallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.\n\nDetails of the Company's revenue by segment are set out in Note 5. As substantially all of the Company’s long-lived assets are located in the PRC and substantially all of the Company’s revenue is derived within the PRC, no geographical information is presented.\n\n \n\nF-77\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n30.\nParent company only condensed financial information\n\nThe Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs in accordance with Rule 4-08(e)(3) of Regulation S-X and concluded that it was applicable for the Company to disclose the financial information for the parent company (“Alibaba Group Holding Limited”) only.\n\nCondensed Balance Sheets\n\n \n\n \n\n \n\nAs of March 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nCash and cash equivalents\n\n \n\n \n\n618\n\n \n\n \n\n \n\n351\n\n \n\nAmounts due from subsidiaries\n\n \n\n \n\n15,170\n\n \n\n \n\n \n\n4,456\n\n \n\nPrepayments and other assets\n\n \n\n \n\n245\n\n \n\n \n\n \n\n97\n\n \n\nInterest in subsidiaries and VIEs\n\n \n\n \n\n1,365,004\n\n \n\n \n\n \n\n1,353,652\n\n \n\nTotal assets\n\n \n\n \n\n1,381,037\n\n \n\n \n\n \n\n1,358,556\n\n \n\nAmounts due to subsidiaries\n\n \n\n \n\n184,879\n\n \n\n \n\n \n\n108,341\n\n \n\nAccrued and other liabilities\n\n \n\n \n\n5,131\n\n \n\n \n\n \n\n5,007\n\n \n\nNon-current bank borrowings\n\n \n\n \n\n22,937\n\n \n\n \n\n \n\n—\n\n \n\nNon-current unsecured senior notes\n\n \n\n \n\n122,398\n\n \n\n \n\n \n\n117,485\n\n \n\nNon-current convertible unsecured senior notes\n\n \n\n \n\n35,834\n\n \n\n \n\n \n\n55,861\n\n \n\nNon-current exchangeable bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,976\n\n \n\nTotal liabilities\n\n \n\n \n\n371,179\n\n \n\n \n\n \n\n297,670\n\n \n\nOrdinary shares\n\n \n\n \n\n1\n\n \n\n \n\n \n\n1\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n381,379\n\n \n\n \n\n \n\n385,086\n\n \n\nTreasury shares, at cost\n\n \n\n \n\n(36,329\n\n)\n\n \n\n \n\n(36,141\n\n)\n\nStatutory reserves\n\n \n\n \n\n15,936\n\n \n\n \n\n \n\n16,628\n\n \n\nAccumulated other comprehensive income (loss)\n\n \n\n \n\n3,393\n\n \n\n \n\n \n\n(13,070\n\n)\n\nRetained earnings\n\n \n\n \n\n645,478\n\n \n\n \n\n \n\n708,382\n\n \n\nTotal shareholders’ equity\n\n \n\n \n\n1,009,858\n\n \n\n \n\n \n\n1,060,886\n\n \n\nTotal liabilities and equity\n\n \n\n \n\n1,381,037\n\n \n\n \n\n \n\n1,358,556\n\n \n\nCondensed Statements of Comprehensive Income\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nTotal cost and expenses\n\n \n\n \n\n(327\n\n)\n\n \n\n \n\n(5,972\n\n)\n\n \n\n \n\n(174\n\n)\n\nIncome from subsidiaries and VIEs\n\n \n\n \n\n86,057\n\n \n\n \n\n \n\n142,604\n\n \n\n \n\n \n\n115,581\n\n \n\nIncome from operations\n\n \n\n \n\n85,730\n\n \n\n \n\n \n\n136,632\n\n \n\n \n\n \n\n115,407\n\n \n\nInterest expense\n\n \n\n \n\n(5,415\n\n)\n\n \n\n \n\n(8,058\n\n)\n\n \n\n \n\n(8,471\n\n)\n\nOther income and expenses\n\n \n\n \n\n(574\n\n)\n\n \n\n \n\n896\n\n \n\n \n\n \n\n(1,032\n\n)\n\nNet income\n\n \n\n \n\n79,741\n\n \n\n \n\n \n\n129,470\n\n \n\n \n\n \n\n105,904\n\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n14,340\n\n \n\n \n\n \n\n498\n\n \n\n \n\n \n\n(17,825\n\n)\n\nTotal comprehensive income\n\n \n\n \n\n94,081\n\n \n\n \n\n \n\n129,968\n\n \n\n \n\n \n\n88,079\n\n \n\n \n\nF-78\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n30.\nParent company only condensed financial information (Continued)\n\n \n\nCondensed Statements of Cash Flows\n\n \n\n \n\nYear ended March 31,\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\nRMB\n\n \n\n \n\n(in millions)\n\n \n\nNet cash provided by operating activities\n\n \n\n \n\n93,308\n\n \n\n \n\n \n\n51,728\n\n \n\n \n\n \n\n99,551\n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRepayments from (Advances to and investments in) subsidiaries and\n   VIEs, and others\n\n \n\n \n\n11,838\n\n \n\n \n\n \n\n(54,809\n\n)\n\n \n\n \n\n(99,207\n\n)\n\nNet cash provided by (used in) investing activities\n\n \n\n \n\n11,838\n\n \n\n \n\n \n\n(54,809\n\n)\n\n \n\n \n\n(99,207\n\n)\n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIssuance of ordinary shares\n\n \n\n \n\n843\n\n \n\n \n\n \n\n10\n\n \n\n \n\n \n\n1,042\n\n \n\nAdvances from subsidiaries\n\n \n\n \n\n6,195\n\n \n\n \n\n \n\n73,526\n\n \n\n \n\n \n\n30,191\n\n \n\nRepurchase of ordinary shares\n\n \n\n \n\n(88,745\n\n)\n\n \n\n \n\n(86,662\n\n)\n\n \n\n \n\n(7,638\n\n)\n\nDividend distribution\n\n \n\n \n\n(17,946\n\n)\n\n \n\n \n\n(29,077\n\n)\n\n \n\n \n\n(33,732\n\n)\n\nRepayment of unsecured senior notes\n\n \n\n \n\n(5,013\n\n)\n\n \n\n \n\n(16,220\n\n)\n\n \n\n \n\n—\n\n \n\nRepayment of bank borrowings\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(6,067\n\n)\n\n \n\n \n\n(22,357\n\n)\n\nProceeds from unsecured senior notes, net of debt issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n35,979\n\n \n\n \n\n \n\n—\n\n \n\nProceeds from convertible unsecured senior notes, net of debt\n   issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n35,665\n\n \n\n \n\n \n\n22,276\n\n \n\nPayments for capped call transactions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,612\n\n)\n\n \n\n \n\n(1,309\n\n)\n\nProceeds from exchangeable bonds, net of debt issuance cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10,986\n\n \n\nNet cash (used in) provided by financing activities\n\n \n\n \n\n(104,666\n\n)\n\n \n\n \n\n2,542\n\n \n\n \n\n \n\n(541\n\n)\n\nEffect of exchange rate changes on cash and cash equivalents\n\n \n\n \n\n58\n\n \n\n \n\n \n\n43\n\n \n\n \n\n \n\n(70\n\n)\n\nIncrease (Decrease) in cash and cash equivalents\n\n \n\n \n\n538\n\n \n\n \n\n \n\n(496\n\n)\n\n \n\n \n\n(267\n\n)\n\nCash and cash equivalents at the beginning of the year\n\n \n\n \n\n576\n\n \n\n \n\n \n\n1,114\n\n \n\n \n\n \n\n618\n\n \n\nCash and cash equivalents at the end of the year\n\n \n\n \n\n1,114\n\n \n\n \n\n \n\n618\n\n \n\n \n\n \n\n351\n\n \n\n \n\n \n\nFor the parent company only condensed financial information, the Company accounted for the investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323. Such investments are presented on the Condensed Balance Sheets as “Investments in subsidiaries and VIEs” and the shares of profits or losses of the subsidiaries and VIEs are presented as “Income from subsidiaries and VIEs” on the Condensed Statements of Comprehensive Income.\n\nDuring the years ended March 31, 2024, 2025 and 2026, dividends paid to the parent company by the subsidiaries amounted to RMB98,174 million, RMB59,933 million and RMB101,294 million, respectively.\n\nThe parent company did not have significant capital and other commitments, or guarantees as of March 31, 2025 and 2026, except for those disclosed in these consolidated financial statements.\n\nCertain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted in the parent company only condensed financial information. The parent company only condensed financial information is not the general-purpose financial statements of the reporting entity and should be read in conjunction with the consolidated financial statements of the Company.\n\nF-79\n\n[Table of Contents](#toc_page)\n\nALIBABA GROUP HOLDING LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE YEARS ENDED MARCH 31, 2024, 2025 AND 2026\n\n31.\nDividends\n\nA two-part dividend comprised of (i) an annual dividend for the year ended March 31, 2024 of US$0.1250 per ordinary share or US$1.00 per ADS, and (ii) a one-time extraordinary dividend of US$0.0825 per ordinary share or US$0.66 per ADS, was declared on May 14, 2024. The dividend of RMB29,077 million was paid during the year ended March 31, 2025.\n\nA two-part dividend comprised of (i) an annual dividend for the year ended March 31, 2025 of US$0.13125 per ordinary share or US$1.05 per ADS, and (ii) a one-time extraordinary dividend of US$0.11875 per ordinary share or US$0.95 per ADS, was declared on May 15, 2025. The dividend of RMB33,732 million was paid during the year ended March 31, 2026.\n\nAn annual dividend for the year ended March 31, 2026 of US$0.13125 per ordinary share or US$1.05 per ADS was declared on May 13, 2026.\n\n \n\nF-80"}