The capital market is not too face-saving.

Compared to other Internet giants, Alibaba is probably the most reflective thermometer for the Chinese market.

On Friday, May 22, Alibaba Group (BABA.US) released its full-year fiscal year 2020 and fourth quarter (January-March 2020) financial reports before the US stock market. The financial report shows that Alibaba ’s revenue for the quarter was 114.31 billion yuan, an increase of 22% year-on-year, which was higher than market expectations of 107.038 billion yuan.

Subdivided by revenue segment, the core e-commerce segment, which includes Amoy e-commerce and new retail business, maintains 21% year-on-year revenue, mainly due to the rapid growth of low-margin self-operated businesses such as Hema The combined profit of customer management (up 3%) and commission (down 2%) brought by Taobao Tmall on the profit margin increased by only 1% year-on-year. The same decline in commissions is also the income of local living services where you are hungry, which is 8% lower than the same period last year.

Alibaba Cloud and innovative businesses have maintained their growth rate. Alibaba Cloud’s revenue in fiscal year 2020 exceeded 40 billion yuan, an increase of 62%, and quarterly revenue reached 12.2 billion yuan, an increase of 58%. According to Morgan Stanley, Alibaba Cloud ’s valuation has reached $ 77 billion.

But in the first quarter of the industry’s hot digital media and entertainment business sector, Ali did not seem to benefit from the epidemic. The financial report shows that the revenue of Ali big entertainment business including Youku only increased by 5%, not even as good as last quarter.

Anyway, after Ali went public in 2014, core e-commerce has experienced recession or stagnation as never before. Compared with Pinduoduo and, Alibaba’s performance is also closest to the actual situation in which China’s GDP fell by 6.8% in the first quarter.

Affected by the previous Hong Kong stocks, Chinese stocks of US stocks also suffered a general decline on Friday. Alibaba ’s stock price closed down 5.87%. . It ’s worth noting that Pinduoduo and Ali publish financial reports almost simultaneously this quarter, despite 44% revenue growth It is a record low for listing, but still far exceeds the consensus expectations of Bloomberg analysts, coupled with the core user index annual active buyers exceeded 600 million, Pinduoduo’s stock price rose 14.5% against the market, and the year-to-date increase has reached 81.65% . From Ali’s perspective, the capital market is not too face-saving.

Based on Friday ’s closing market value, Alibaba is now only equivalent to more than 6.5 spells.

Anti-risk category

Alibaba ’s current financial report shows that in the past fiscal year 2020 (April 2019-March 2020), the consumer business GMV of Alibaba ’s digital economy reached RMB 7.053 trillion, exceeding 1 One trillion US dollars, of which the Chinese retail market GMV reached RMB 6.589 trillion.

A single company ’s creation of a $ 1 trillion in transaction volume is indeed a milestone, which Ali calls “because I believe, so I see”, because in 2015, Alibaba announced that it will become the world ’s first in 5 years A company that has sold $ 1 trillion in platforms.

Regardless of the romanticized rhetoric, the $ 1 trillion GMV was originally a result of a business model that proved to be sustainable. This is not a precise prediction, but an actuarial one. in conclusion.

What we can directly see is that despite the stagnation of revenue growth in the Chinese retail market except for new retail, the actual GMV paid by Tmall still has a 10% year-on-year growth. The growth rate of this volume is relatively Compared with Jingdong and Pinduoduo, it is not too inferior. And for Tmall merchants, the pressure to rent the platform is also relatively reduced this quarter, because Ali did not choose to realize too much for the 10% GMV growth. During the outbreak, Ali chose to release water to raise fish.

However, Tmall is still one of the platforms most affected by the epidemic. In terms of logistics fulfillment, compared with ’s own logistics system, the epidemic situation and the government orders of various local governments have caused the social logistics that Ali relies on to undergo a period of suspension, and even once Taobao Tmall had to do everything possible to pressure the merchants to urge Goods to reduce the damage already caused to the user experience.

Also, Ali ’s category also suffered during the epidemic. Taobao Tmall’s traditional advantages are clothing and beauty. Ali has firmly controlled these two high-margin categories in its own hands over the past years, and consumers have already formed a cognition. However, the epidemic prevented Chinese consumers from going out, and even when they went out, they paid more attention to protection rather than fashion, which also greatly reduced the consumption of clothing and fashion.

“Because women do n’t need to wear masks,” Zhang Yong, chairman of Alibaba Group, explained on the analyst ’s call after the earnings report. In addition, subject to the impact of the first quarter epidemic on transportation and manpower