Common use of Financial Measures Clause in Contracts

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 Cost of revenue (150,005) (156,214) (22,002) (410,872) (438,225) (61,723) Product development expenses (13,521) (13,488) (1,900) (42,864) (38,171) (5,376) Sales and marketing expenses (30,628) (33,783) (4,758) (78,565) (86,315) (12,157) General and administrative expenses (10,327) (11,261) (1,586) (29,351) (27,966) (3,939) Amortization and impairment of intangible assets (5,530) (14,601) (2,056) (11,010) (19,511) (2,748) Impairment of goodwill (2,714) (8,490) (1,196) (2,714) (10,521) (1,482) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 Interest and investment income, net 15,516 (3,500) (493) (21,567) (4,262) (600) Interest expense (1,550) (2,132) (301) (4,182) (5,770) (813) Other income, net 1,462 439 62 4,515 3,194 450 Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 Income tax expenses (3,820) (4,988) (702) (11,791) (16,807) (2,367) Share of results of equity method investees (893) (1,613) (228) (8,509) (4,527) (638) Net income 45,746 10,717 1,509 43,577 70,413 9,917 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 Net income attributable to Alibaba Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,795

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- non-GAAP diluted earnings per share share, on a diluted basis. Non-GAAP diluted earnings per ADS represents non- non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 204,052 208,200 30,316 853,062 868,687 126,491 Cost of revenue (150,005138,945) (156,214138,823) (22,00220,214) (410,872539,450) (438,225549,695) (61,72380,042) Product development expenses (13,52110,944) (13,48813,880) (1,9002,021) (42,86455,465) (38,17156,744) (5,3768,263) Sales and marketing expenses (30,62827,200) (33,78324,931) (4,7583,630) (78,565119,799) (86,315103,496) (12,15715,070) General and administrative expenses (10,3277,415) (11,26112,832) (1,5861,869) (29,35131,922) (27,96642,183) (3,9396,142) Amortization and impairment of intangible assets (5,5302,831) (14,6012,494) (2,056363) (11,01011,647) (19,51113,504) (2,7481,967) Impairment of goodwill — — — (2,714) (8,490) (1,19625,141) (2,714) (10,521) (1,482395) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 16,717 15,240 2,219 69,638 100,351 14,612 Interest and investment income, net 15,516 (3,50036,708) 10,496 1,528 (15,702) (49311,071) (21,567) (4,262) (6001,612) Interest expense (1,5501,189) (2,1321,736) (301253) (4,1824,909) (5,7705,918) (813862) Other income, net 1,462 439 62 4,515 3,194 450 1,620 1,308 191 10,523 5,823 848 (Loss) Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 (19,560) 25,308 3,685 59,550 89,185 12,986 Income tax expenses (3,8202,079) (4,9883,758) (702547) (11,79126,815) (16,80715,549) (2,3672,264) Share of results of equity method investees 3,282 446 65 14,344 (8938,063) (1,613) (228) (8,509) (4,527) (6381,174) Net (loss) income 45,746 10,717 1,509 43,577 70,413 9,917 (18,357) 21,996 3,203 47,079 65,573 9,548 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 2,241 1,648 240 15,170 7,210 1,050 Net (loss) income attributable to Alibaba Group Holding Limited (16,116) 23,644 3,443 62,249 72,783 10,598 Accretion of mezzanine equity (125) (128) (19) (290) (274) (40) Net (loss) income attributable to ordinary shareholders (16,241) 23,516 3,424 61,959 72,509 10,558 (Loss) Earnings per share Basic (0.76) 1.14 0.17 2.87 3.46 0.50 Diluted (0.76) 1.12 0.16 2.84 3.43 0.50 Basic (6.07) 9.11 1.33 22.99 27.65 4.03 Diluted (6.07) 9.00 1.31 22.74 27.46 4.00 Basic 21,401 20,651 21,558 20,980 Diluted 21,401 20,882 21,787 21,114 (1) Each ADS represents eight ordinary shares. Current assets: Cash and cash equivalents 189,898 193,086 28,115 Short-term investments 256,514 326,492 47,541 Restricted cash and escrow receivables 37,455 36,424 5,304 Equity securities and other investments 8,673 4,892 712 Prepayments, receivables and other assets(1) 145,995 137,072 19,960 Total current assets 638,535 697,966 101,632 Equity securities and other investments 223,611 245,737 35,782 Prepayments, receivables and other assets 113,147 110,926 16,152 Investment in equity method investees 219,642 207,380 30,197 Property and equipment, net 171,806 176,031 25,632 Intangible assets, net 59,231 46,913 14,555 2,050 49,139 76,644 10,7956,831 Goodwill 269,581 268,091 39,037 Total assets 1,695,553 1,753,044 255,263 Liabilities, Mezzanine Equity and Shareholders’ Current liabilities: Current bank borrowings 8,841 7,466 1,087 Current unsecured senior notes — 4,800 699 Income tax payable 21,753 12,543 1,826 Accrued expenses, accounts payable and other liabilities 271,460 275,950 40,182 Merchant deposits 14,747 13,297 1,936 Deferred revenue and customer advances 66,983 71,295 10,381 Total current liabilities 383,784 385,351 56,111 As of March 31, As of March 31, 2022 2023 Deferred revenue 3,490 3,560 518 Deferred tax liabilities 61,706 61,745 8,991 Non-current bank borrowings 38,244 52,023 7,575 Non-current unsecured senior notes 94,259 97,065 14,134 Other liabilities 31,877 30,379 4,424 Commitments and contingencies Mezzanine equity 9,655 9,858 1,435 Shareholders’ equity: Ordinary shares 1 1 — Additional paid-in capital 410,506 416,880 60,702 Treasury shares at cost (2,221) (28,763) (4,188) Subscription receivables (46) (49) (7) Statutory reserves 9,839 12,977 1,890 Accumulated other comprehensive loss (33,157) (10,417) (1,517) Retained earnings 563,557 599,028 87,225 Total shareholders’ equity 948,479 989,657 144,105 Noncontrolling interests 124,059 123,406 17,970 Total equity 1,072,538 1,113,063 162,075 Total liabilities, mezzanine equity and equity 1,695,553 1,753,044 255,263

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 221,874 236,454 32,584 941,168 996,347 137,300 Cost of revenue (150,005148,098) (156,214145,626) (22,00220,068) (410,872586,323) (438,225598,285) (61,72382,446) Product development expenses (13,52114,085) (13,48814,934) (1,9002,058) (42,86452,256) (38,17157,151) (5,3767,876) Sales and marketing expenses (30,62828,826) (33,78336,179) (4,7584,985) (78,565115,141) (86,315144,021) (12,15719,847) General and administrative expenses (10,32714,019) (11,26110,331) (1,5861,423) (29,35141,985) (27,96644,239) (3,9396,096) Amortization and impairment of intangible assets (5,5302,081) (14,601833) (2,056115) (11,01021,592) (19,5116,336) (2,748873) Impairment of goodwill (2,714) (8,490) (1,196) (2,714) – – – (10,521) (1,4826,171) (850) Other (losses) gains, net – (86) (12) – 761 105 Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 14,765 28,465 3,923 113,350 140,905 19,417 Interest and investment income, net 15,516 (3,5005,702) (4937,516) (21,5671,036) (4,2629,964) (600) 20,759 2,861 Interest expense (1,5502,177) (2,1322,496) (301344) (4,1827,947) (5,7709,596) (8131,323) Other income, net 1,462 439 62 4,515 3,194 450 2,963 20 3 6,157 3,387 467 Income before income tax and share of results of equity method investees 50,459 17,318 2,439 63,877 91,747 12,922 9,849 18,473 2,546 101,596 155,455 21,422 Income tax expenses (3,8205,722) (4,9886,854) (702945) (11,79122,529) (16,80735,445) (2,3674,884) Share of results of equity method investees (8933,208) 354 49 (1,6137,735) (228) (8,509) (4,527) (638) 5,966 822 Net income 45,746 10,717 1,509 43,577 70,413 9,917 919 11,973 1,650 71,332 125,976 17,360 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 2,446 586 81 8,677 4,133 569 Net income attributable to Alibaba Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,7953,365 12,559 1,731 80,009 130,109 17,929 Accretion of mezzanine equity (95) (177) (25) (268) (639) (88) Net income attributable to ordinary shareholders 3,270 12,382 1,706 79,741 129,470 17,841 Earnings per share attributable to ordinary shareholders(1) Basic 0.17 0.67 0.09 3.95 6.89 0.95 Diluted 0.16 0.65 0.09 3.91 6.70 0.92 Basic 1.32 5.36 0.74 31.61 55.12 7.60 Diluted 1.30 5.17 0.71 31.24 53.59 7.38 Basic 19,763 18,487 20,182 18,791 Diluted 19,980 19,153 20,359 19,318

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 207,176 224,790 30,810 412,731 458,946 62,904 Cost of revenue (150,005131,210) (156,214139,664) (22,00219,143) (410,872260,867) (438,225282,011) (61,72338,653) Product development expenses (13,52115,150) (13,48814,218) (1,9001,949) (42,86429,343) (38,17124,683) (5,3763,383) Sales and marketing expenses (30,62822,359) (33,78325,485) (4,7583,493) (78,56547,937) (86,31552,532) (12,1577,200) General and administrative expenses (10,32710,591) (11,2619,408) (1,5861,289) (29,35119,024) (27,96616,705) (3,9392,290) Amortization and impairment of intangible assets (5,5302,729) (14,6012,431) (2,056333) (11,0105,480) (19,5114,910) (2,748673) Impairment of goodwill — — — — (2,7142,031) (8,490) (1,196) (2,714) (10,521) (1,482278) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 25,137 33,584 4,603 50,080 76,074 10,427 Interest and investment income, net 15,516 (3,50042,452) 5,136 704 (37,083) (493762) (21,567) (4,262) (600104) Interest expense (1,5501,388) (2,1321,854) (301254) (4,1822,632) (5,7703,638) (813499) Other income, net 1,462 439 62 4,515 3,194 450 2,944 1,391 191 3,053 2,755 377 (Loss) Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 (15,759) 38,257 5,244 13,418 74,429 10,201 Income tax expenses (3,8202,572) (4,9885,797) (702795) (11,7917,971) (16,80711,819) (2,3671,620) Share of results of equity method investees (8934,136) (1,6135,764) (228790) (8,5097,616) (4,5272,914) (638399) Net (loss) income 45,746 10,717 1,509 43,577 70,413 9,917 (22,467) 26,696 3,659 (2,169) 59,696 8,182 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 2,034 1,151 158 4,395 2,393 328 Net (loss) income attributable to Alibaba Group Holding Limited (20,433) 27,847 3,817 2,226 62,089 8,510 Accretion of mezzanine equity (128) (141) (20) (48) (51) (7) Basic Diluted Basic (7.77) 10.90 1.49 0.82 24.31 3.33 Diluted (7.77) 10.77 1.48 0.82 24.08 3.30 Basic 21,164 20,335 21,231 20,414 Diluted 21,164 20,526 21,329 20,567 (1) Each ADS represents eight ordinary shares. Current assets: Cash and cash equivalents 193,086 243,716 33,404 Short-term investments 326,492 296,793 40,679 Restricted cash and escrow receivables 36,424 37,279 5,110 Equity securities and other investments 4,892 33,851 4,640 Total current assets 697,966 757,956 103,887 Equity securities and other investments 245,737 247,820 33,966 Prepayments, receivables and other assets 110,926 109,784 15,047 Investment in equity method investees 207,380 208,289 28,548 Property and equipment, net 176,031 179,436 24,594 Intangible assets, net 46,913 14,555 2,050 49,139 76,644 10,79541,592 5,701 Goodwill 268,091 266,713 36,556 Total assets 1,753,044 1,811,590 248,299 Liabilities, Mezzanine Equity and Shareholders’ Equity Current liabilities: Current bank borrowings 7,466 8,187 1,122 Current unsecured senior notes 4,800 — — Income tax payable Accrued expenses, accounts payable and other liabilities 12,543 275,950 8,507 286,604 1,166 39,283 Merchant deposits 13,297 12,603 1,727 Total current liabilities 385,351 389,810 53,428 Deferred revenue 3,560 3,771 517 Deferred tax liabilities 61,745 57,692 7,907 Non-current bank borrowings 52,023 55,116 7,554 Non-current unsecured senior notes 97,065 103,441 14,178 Other liabilities 30,379 31,714 4,347 Total liabilities 630,123 641,544 87,931 Commitments and contingencies Mezzanine equity 9,858 10,328 1,415 Shareholders’ equity: Ordinary shares 1 1 — Additional paid-in capital 416,880 407,748 55,887 Treasury shares at cost (28,763) (28,555) (3,914) Subscription receivables (49) — — Statutory reserves Accumulated other comprehensive (loss) income 12,977 (10,417) 14,416 5,809 1,976 796 Retained earnings 599,028 635,663 87,125 Total shareholders’ equity 989,657 1,035,082 141,870 Noncontrolling interests 123,406 124,636 17,083 Total equity 1,113,063 1,159,718 158,953 Total liabilities, mezzanine equity and equity 1,753,044 1,811,590 248,299 Three months ended September 30, Six months ended September 30, Net cash provided by operating (in millions) (in millions) activities 47,112 49,231 6,748 80,981 94,537 12,957 Net cash used in investing activities (8,148) (23,761) (3,257) (35,755) (11,166) (1,530) Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents, restricted (11,470) (12,382) (1,697) (32,492) (37,018) (5,074) cash and escrow receivables 3,437 813 112 6,763 5,132 704 Increase in cash and cash equivalents, restricted cash and escrow receivables 30,931 Cash and cash equivalents, restricted 13,901 1,906 19,497 51,485 7,057 ▇▇▇▇ and escrow receivables at beginning of period 215,919 267,094 36,608 227,353 229,510 31,457 Cash and cash equivalents, restricted cash and escrow receivables at end of period 246,850 280,995 38,514 246,850 280,995 38,514 The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: Adjustments to reconcile net (loss) income to adjusted EBITA and adjusted EBITDA: Interest and investment income, net 42,452 (5,136) (704) 37,083 762 104 Interest expense 1,388 1,854 254 2,632 3,638 499 Other income, net (2,944) (1,391) (191) (3,053) (2,755) (377) Income tax expenses 2,572 5,797 795 7,971 11,819 1,620 Share of results of equity method investees 4,136 5,764 790 7,616 2,914 399 Share-based compensation expense 7,787 6,830 936 14,512 5,201 713 Amortization of intangible assets 2,729 2,431 333 5,480 4,910 673 Impairment of goodwill — — — — 2,031 278 Equity-settled donation expense 511 — — 511 — — Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 7,147 6,392 876 13,842 13,073 1,792 The table below sets forth a reconciliation of our net (loss) income to non-GAAP net income for the periods indicated: (in millions) (in millions) Net (loss) income Adjustments to reconcile net (22,467) 26,696 3,659 (2,169) 59,696 8,182 (loss) income to non-GAAP net income: Share-based compensation expense 7,787 6,830 936 14,512 5,201 713 Amortization of intangible assets 2,729 2,431 333 5,480 4,910 673 Impairment of goodwill and investments 10,020 7,604 1,042 13,134 11,873 1,627 Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others Equity-settled donation expense Tax effects (1)

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 224,790 236,503 33,701 458,946 479,739 68,362 Cost of revenue (150,005139,664) (156,214144,029) (22,00220,524) (410,872282,011) (438,225290,135) (61,72341,344) Product development expenses (13,52114,218) (13,48814,182) (1,9002,020) (42,86424,683) (38,17127,555) (5,3763,927) Sales and marketing expenses (30,62825,485) (33,78332,471) (4,7584,627) (78,56552,532) (86,31565,167) (12,1579,286) General and administrative expenses (10,3279,408) (11,2619,777) (1,5861,393) (29,35116,705) (27,96623,057) (3,9393,285) Amortization and impairment of intangible assets (5,5302,431) (14,6011,649) (2,056235) (11,0104,910) (19,5113,441) (2,748490) Impairment of goodwill – – – (2,7142,031) (8,490) (1,196) (2,714) (10,521) (1,482) – – Other gains, net – 851 121 – 851 121 Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 33,584 35,246 5,023 76,074 71,235 10,151 Interest and investment income, net 15,516 5,136 18,607 2,652 (3,500762) (493) (21,567) (4,262) (600) 17,129 2,441 Interest expense (1,5501,854) (2,1322,427) (301346) (4,1823,638) (5,7704,615) (813658) Other incomeincome (expense), net 1,462 439 62 4,515 3,194 450 1,391 (1,478) (211) 2,755 (1,221) (174) Income before income tax and share of results of equity method investees 50,459 17,318 2,439 63,877 91,747 12,922 38,257 49,948 7,118 74,429 82,528 11,760 Income tax expenses (3,8205,797) (4,9887,379) (7021,052) (11,79111,819) (16,80717,442) (2,3672,485) Share of results of equity method investees (8935,764) 978 139 (1,6132,914) (228) (8,509) (4,527) (638) 2,483 354 Net income 45,746 10,717 1,509 43,577 70,413 9,917 26,696 43,547 6,205 59,696 67,569 9,629 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 1,151 486 70 2,393 854 121 Net income attributable to Alibaba Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,79527,847 44,033 6,275 62,089 68,423 9,750 Accretion of mezzanine equity (141) (159) (23) (51) (280) (40) Net income attributable to ordinary shareholders 27,706 43,874 6,252 62,038 68,143 9,710 Basic 1.36 2.34 0.33 3.04 3.58 0.51 Diluted 1.35 2.27 0.32 3.01 3.50 0.50 Basic 10.90 18.71 2.67 24.31 28.62 4.08 Diluted 10.77 18.17 2.59 24.08 28.00 3.99 Basic 20,335 18,761 20,414 19,045 Diluted 20,526 19,322 20,567 19,459

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 234,156 243,236 33,470 Cost of revenue (150,005142,347) (156,214146,106) (22,002) (410,872) (438,225) (61,72320,105) Product development expenses (13,52110,465) (13,48813,373) (1,900) (42,864) (38,171) (5,3761,840) Sales and marketing expenses (30,62827,047) (33,78332,696) (4,758) (78,565) (86,315) (12,1574,499) General and administrative expenses (10,3277,297) (11,26113,280) (1,586) (29,351) (27,966) (3,9391,827) Amortization and impairment of intangible assets (5,5302,479) (14,6011,792) (2,056) (11,010) (19,511) (2,748247) Impairment of goodwill (2,7142,031) (8,490) (1,196) (2,714) (10,521) (1,482) – – Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 42,490 35,989 4,952 Interest and investment income, net 15,516 (3,5005,898) (4931,478) (21,567) (4,262) (600203) Interest expense (1,5501,784) (2,1322,188) (301) (4,182) (5,770) (813) Other income, net 1,462 439 62 4,515 3,194 450 1,364 257 35 Income before income tax and share of results of equity method investees 50,459 17,318 2,439 63,877 91,747 12,922 36,172 32,580 4,483 Income tax expenses (3,8206,022) (4,98810,063) (702) (11,791) (16,807) (2,3671,384) Share of results of equity method investees (893) (1,613) (228) (8,509) (4,527) (638) 2,850 1,505 207 Net income 45,746 10,717 1,509 43,577 70,413 9,917 33,000 24,022 3,306 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 1,242 368 50 Net income attributable to Alibaba Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,79534,242 24,390 3,356 Accretion of mezzanine equity 90 (121) (16) Net income attributable to ordinary shareholders 34,332 24,269 3,340 Earnings per share attributable to ordinary shareholders(1) Basic 1.68 1.26 0.17 Diluted 1.66 1.24 0.17 Basic 13.40 10.04 1.38

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 208,200 221,874 30,729 868,687 941,168 130,350 Cost of revenue (150,005138,823) (156,214148,098) (22,00220,511) (410,872549,695) (438,225586,323) (61,72381,205) Product development expenses (13,52113,880) (13,48814,085) (1,9001,951) (42,86456,744) (38,17152,256) (5,3767,237) Sales and marketing expenses (30,62824,931) (33,78328,826) (4,7583,992) (78,565103,496) (86,315115,141) (12,15715,947) General and administrative expenses (10,32712,832) (11,26114,019) (1,5861,942) (29,35142,183) (27,96641,985) (3,9395,815) Amortization and impairment of intangible assets (5,5302,494) (14,6012,081) (2,056288) (11,01013,504) (19,51121,592) (2,7482,990) Impairment of goodwill (2,714) (8,490) (1,196) — — — (2,714) (10,521) (1,4821,457) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 15,240 14,765 2,045 100,351 113,350 15,699 Interest and investment income, net 15,516 10,496 (3,5005,702) (493790) (21,56711,071) (4,2629,964) (6001,380) Interest expense (1,5501,736) (2,1322,177) (301) (4,1825,918) (5,7707,947) (8131,101) Other income, net 1,462 439 62 4,515 3,194 450 1,308 2,963 410 5,823 6,157 853 Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 25,308 9,849 1,364 89,185 101,596 14,071 Income tax expenses (3,8203,758) (4,9885,722) (702793) (11,79115,549) (16,80722,529) (2,3673,120) Share of results of equity method investees 446 (8933,208) (1,613444) (2288,063) (8,5097,735) (4,527) (6381,072) Net income 45,746 10,717 1,509 43,577 70,413 9,917 21,996 919 127 65,573 71,332 9,879 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 1,648 2,446 339 7,210 8,677 1,202 Net income attributable to Alibaba Group Holding Limited 23,644 3,365 466 72,783 80,009 11,081 Accretion of mezzanine equity (128) (95) (13) (274) (268) (37) Net income attributable to ordinary shareholders 23,516 3,270 453 72,509 79,741 11,044 Amortization and impairment of Basic 1.14 0.17 0.02 3.46 3.95 0.55 Diluted 1.12 0.16 0.02 3.43 3.91 0.54 Basic 9.11 1.32 0.18 27.65 31.61 4.38 Basic 20,651 19,763 20,980 20,182 Diluted 20,882 19,980 21,114 20,359 (1) Each ADS represents eight ordinary shares. Current assets: Cash and cash equivalents 193,086 248,125 34,365 Short-term investments 326,492 262,955 36,419 Restricted cash and escrow receivables 36,424 38,299 5,304 Equity securities and other investments 4,892 59,949 8,303 Total current assets 697,966 752,864 104,270 Equity securities and other investments 245,737 220,942 30,600 Prepayments, receivables and other assets 110,926 116,102 16,080 Investment in equity method investees 207,380 203,131 28,133 Property and equipment, net 176,031 185,161 25,645 Intangible assets, net 46,913 14,555 2,050 49,139 76,644 10,79526,950 3,733 Goodwill 268,091 259,679 35,965 Total assets 1,753,044 1,764,829 244,426 Liabilities, Mezzanine Equity and Shareholders’ Equity Current liabilities: Current bank borrowings 7,466 12,749 1,766 Current unsecured senior notes 4,800 16,252 2,251 Income tax payable Accrued expenses, accounts payable and other liabilities 12,543 275,950 9,068 297,883 1,256 41,256 Merchant deposits 13,297 12,737 1,764 Total current liabilities 385,351 421,507 58,378 Deferred revenue 3,560 4,069 564 Deferred tax liabilities 61,745 53,012 7,342 Non-current bank borrowings 52,023 55,686 7,712 Non-current unsecured senior notes 97,065 86,089 11,923 Other liabilities 30,379 31,867 4,414 Total liabilities 630,123 652,230 90,333 Commitments and contingencies Mezzanine equity 9,858 10,728 1,486 Shareholders’ equity: Ordinary shares 1 1 — Additional paid-in capital 416,880 397,999 55,122 Treasury shares at cost (28,763) (27,684) (3,834) Subscription receivables (49) — — Statutory reserves Accumulated other comprehensive (loss) income 12,977 (10,417) 14,733 3,598 2,040 498 Retained earnings 599,028 597,897 82,809 Total shareholders’ equity 989,657 986,544 136,635 Noncontrolling interests 123,406 115,327 15,972 Total equity 1,113,063 1,101,871 152,607 Total liabilities, mezzanine equity and equity 1,753,044 1,764,829 244,426 (in millions) (in millions) Net cash provided by operating activities 31,401 23,340 3,233 199,752 182,593 25,289 Net cash (used in) provided by investing activities (26,808) 20,267 2,807 (135,506) (21,824) (3,023) Net cash used in financing activities (9,319) (54,012) (7,481) (65,619) (108,244) (14,992) Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables (1,201) 1,900 263 3,530 4,389 608 (Decrease) Increase in cash and cash equivalents, restricted cash and escrow receivables (5,927) Cash and cash equivalents, restricted (8,505) (1,178) 2,157 56,914 7,882 ▇▇▇▇ and escrow receivables at beginning of period 235,437 294,929 40,847 227,353 229,510 31,787 Cash and cash equivalents, restricted cash and escrow receivables at end of period 229,510 286,424 39,669 229,510 286,424 39,669 The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated: Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA: Interest and investment income, net (10,496) 5,702 790 11,071 9,964 1,380 Interest expense 1,736 2,177 301 5,918 7,947 1,101 Other income, net (1,308) (2,963) (410) (5,823) (6,157) (853) Income tax expenses 3,758 5,722 793 15,549 22,529 3,120 Share of results of equity method investees (446) 3,208 444 8,063 7,735 1,072 Share-based compensation expense 7,546 7,123 987 30,831 18,546 2,569 Amortization and impairment of intangible assets 2,494 2,081 288 13,504 21,592 2,990 Impairment of goodwill, and others — — — 3,225 11,540 1,598 Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 6,843 6,838 947 27,799 26,640 3,690 The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated: (in millions) (in millions) Net income Adjustments to reconcile net 21,996 919 127 65,573 71,332 9,879 income to non-GAAP net income: Share-based compensation expense Amortization and impairment of intangible assets (Gain) Loss on deemed disposals/disposals/ revaluation of investments Impairment of goodwill and investments, and others Tax effects (1)

Financial Measures. To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-non- GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-Non- GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcementdocument. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-non- GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement document has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Revenue 247,756 260,348 36,669 660,487 719,294 101,310 Cost of revenue (150,005) (156,214) (22,002) (410,872) (438,225) (61,723) Product development expenses (13,521) (13,488) (1,900) (42,864) (38,171) (5,376) Sales Adjustments to reconcile net income to adjusted EBITA and marketing expenses (30,628) (33,783) (4,758) (78,565) (86,315) (12,157) General and administrative expenses (10,327) (11,261) (1,586) (29,351) (27,966) (3,939) Amortization and impairment of intangible assets (5,530) (14,601) (2,056) (11,010) (19,511) (2,748) Impairment of goodwill (2,714) (8,490) (1,196) (2,714) (10,521) (1,482) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 adjusted EBITDA: Interest and investment income, net 15,516 762 (3,50017,129) (493) (21,567) (4,262) (6002,441) Interest expense 3,638 4,615 658 Other (1,550income) (2,132) (301) (4,182) (5,770) (813) Other incomeexpense, net 1,462 439 62 4,515 3,194 450 Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 (2,755) 1,221 174 Income tax expenses (3,820) (4,988) (702) (11,791) (16,807) (2,367) 11,819 17,442 2,485 Share of results of equity method investees 2,914 (8932,483) (1,613354) Non-cash share-based compensation expense 5,201 7,775 1,108 Amortization and impairment of intangible assets 4,910 3,441 490 Impairment of goodwill 2,031 – – Provision for the shareholder class action lawsuits – 3,145 448 Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 13,073 12,892 1,837 ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED) The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated: Adjustments to reconcile net income to non- GAAP net income: Non-cash share-based compensation expense 5,201 7,775 1,108 Amortization and impairment of intangible assets 4,910 3,441 490 Provision for the shareholder class action lawsuits – 3,145 448 Loss (Gain) on deemed disposals/disposals/ revaluation of investments 7,307 (8,116) (2281,157) Impairment of goodwill and investments, and others 11,873 5,067 722 Tax effects (1) (8,5093,877) (4,5271,672) (638) Net income 45,746 10,717 1,509 43,577 70,413 9,917 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 Net income attributable to Alibaba Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,795238)

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non- GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non- GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Three months ended June 30, 2022 2023 Revenue 247,756 260,348 36,669 660,487 719,294 101,310 205,555 234,156 32,292 Cost of revenue (150,005129,657) (156,214142,347) (22,002) (410,872) (438,225) (61,72319,631) Product development expenses (13,52114,193) (13,48810,465) (1,900) (42,864) (38,171) (5,3761,443) Sales and marketing expenses (30,62825,578) (33,78327,047) (4,758) (78,565) (86,315) (12,1573,730) General and administrative expenses (10,3278,433) (11,2617,297) (1,586) (29,351) (27,966) (3,9391,006) Amortization and impairment of intangible assets (5,5302,751) (14,6012,479) (2,056) (11,010) (19,511) (2,748342) Impairment of goodwill — (2,7142,031) (8,490) (1,196) (2,714) (10,521) (1,482280) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 24,943 42,490 5,860 Interest and investment income, net 15,516 5,369 (3,5005,898) (493) (21,567) (4,262) (600814) Interest expense (1,5501,244) (2,1321,784) (301) (4,182) (5,770) (813246) Other income, net 1,462 439 62 4,515 3,194 450 109 1,364 188 Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 share Income tax expenses (3,820) (4,988) (702) (11,791) (16,807) (2,367) Share of results of equity method (5,399) (6,022) (830) investees (8933,480) (1,613) (228) (8,509) (4,527) (638) 2,850 393 Net income 45,746 10,717 1,509 43,577 70,413 9,917 20,298 33,000 4,551 Net loss attributable to noncontrolling interests 1,167 3,838 541 5,562 6,231 878 2,361 1,242 171 Net income attributable to Alibaba Group Holding Limited 22,659 34,242 4,722 Accretion of mezzanine equity 80 90 13 Net income attributable to ordinary shareholders 22,739 34,332 4,735 Basic 1.07 1.68 0.23 Diluted 1.06 1.66 0.23 Basic 8.54 13.40 1.85 Diluted 8.51 13.30 1.83 Basic 21,299 20,493 Diluted 21,384 20,608 (1) Each ADS represents eight ordinary shares. Current assets: Cash and cash equivalents 193,086 226,405 31,223 Short-term investments 326,492 283,953 39,159 Restricted cash and escrow receivables 36,424 40,689 5,611 Equity securities and other investments 4,892 34,071 4,699 Total current assets 697,966 730,435 100,732 Equity securities and other investments 245,737 239,528 33,032 Prepayments, receivables and other assets 110,926 107,706 14,853 Investment in equity method investees 207,380 212,132 29,254 Property and equipment, net 176,031 175,859 24,252 Intangible assets, net 46,913 14,555 2,050 49,139 76,644 10,79544,560 6,145 Goodwill 268,091 266,584 36,764 Total assets 1,753,044 1,776,804 245,032 Liabilities, Mezzanine Equity and Shareholders’ Equity Current liabilities: Current bank borrowings 7,466 8,236 1,136 Current unsecured senior notes 4,800 — — Income tax payable Accrued expenses, accounts payable and other liabilities 12,543 275,950 8,510 279,351 1,174 38,524 Merchant deposits 13,297 13,141 1,812 Total current liabilities 385,351 380,239 52,437 Deferred revenue 3,560 3,676 507 Deferred tax liabilities 61,745 57,763 7,966 Non-current bank borrowings 52,023 54,697 7,543 Non-current unsecured senior notes 97,065 102,610 14,151 Other liabilities 30,379 30,778 4,244 Total liabilities 630,123 629,763 86,848 Commitments and contingencies Mezzanine equity 9,858 9,960 1,373 Shareholders’ equity: Ordinary shares 1 1 — Additional paid-in capital 416,880 408,347 56,314 Treasury shares at cost (28,763) (28,562) (3,939) Subscription receivables (49) (52) (7) Statutory reserves 12,977 13,286 1,833 Accumulated other comprehensive (loss) income (10,417) 2,846 392 Retained earnings 599,028 617,638 85,176 Total shareholders’ equity 989,657 1,013,504 139,769 Noncontrolling interests 123,406 123,577 17,042 Total equity 1,113,063 1,137,081 156,811 Total liabilities, mezzanine equity and equity 1,753,044 1,776,804 245,032 Three months ended June 30, 2022 2023 activities 33,869 45,306 6,248 Net cash (used in) provided by investing activities (27,607) 12,595 1,737 Net cash used in financing activities (21,022) (24,636) (3,397) Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables 3,326 4,319 595 (Decrease) Increase in cash and cash equivalents, restricted cash and escrow receivables (11,434) 37,584 5,183 Cash and cash equivalents, restricted cash and escrow receivables at beginning of period 227,353 229,510 31,651 Cash and cash equivalents, restricted cash and escrow receivables at end of period 215,919 267,094 36,834 The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated: Three months ended June 30, 2022 2023 Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA: income, net (5,369) 5,898 814 Interest expense 1,244 1,784 246 Other income, net (109) (1,364) (188) Income tax expenses 5,399 6,022 830 Share of results of equity method investees 3,480 (2,850) (393) Share-based compensation expense 6,725 (1,629) (225) Amortization of intangible assets 2,751 2,479 342 Impairment of goodwill — 2,031 280 Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 6,695 6,681 921 The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated: Net income Adjustments to reconcile net 20,298 33,000 4,551 income to non-GAAP net income: Share-based compensation expense 6,725 (1,629) (225) Amortization of intangible assets 2,751 2,479 342 Impairment of goodwill and investments 3,114 4,269 589 disposals/disposals/ revaluation of investments and others (1,712) 9,038 1,246 Tax effects (1) (924) (2,235) (308) Non-GAAP net income 30,252 44,922 6,195

Financial Measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non- GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share divided by the weighted average number of shares outstanding ordinary shares during the periods on a diluted basis for computing non- non-GAAP diluted earnings per share on a diluted basisshare. Non-GAAP diluted earnings per ADS represents non- non-GAAP diluted earnings per share after adjusting for adjustment to the ordinary share-to-ADS ratio. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has have more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures. Three months ended June 30, 2021 2022 Revenue 247,756 260,348 36,669 660,487 719,294 101,310 205,740 205,555 30,689 Cost of revenue (150,005124,097) (156,214129,657) (22,002) (410,872) (438,225) (61,72319,357) Product development expenses (13,52113,519) (13,48814,193) (1,900) (42,864) (38,171) (5,3762,119) Sales and marketing expenses (30,62827,036) (33,78325,578) (4,758) (78,565) (86,315) (12,1573,819) General and administrative expenses (10,3277,168) (11,2618,433) (1,586) (29,351) (27,966) (3,9391,259) Amortization and impairment of intangible assets (5,5303,073) (14,6012,751) (2,056) (11,010) (19,511) (2,748) Impairment of goodwill (2,714) (8,490) (1,196) (2,714) (10,521) (1,482411) Income from operations 35,031 22,511 3,171 85,111 98,585 13,885 30,847 24,943 3,724 Interest and investment income, net 15,516 (3,500) (493) (21,567) (4,262) (600) 14,101 5,369 802 Interest expense (1,5501,267) (2,1321,244) (301) (4,182) (5,770) (813186) Other income, net 1,462 439 62 4,515 3,194 450 2,157 109 16 Income before income tax and method investees 50,459 17,318 2,439 63,877 91,747 12,922 share 45,838 29,177 4,356 Income tax expenses (3,8209,096) (4,9885,399) (702) (11,791) (16,807) (2,367806) Share of results of equity method investees 6,093 (8933,480) (1,613520) (228) (8,509) (4,527) (638) investees Net income 45,746 10,717 1,509 43,577 70,413 9,917 42,835 20,298 3,030 Net loss attributable to noncontrolling 2,233 2,361 353 interests 1,167 3,838 541 5,562 6,231 878 Net income attributable to Alibaba 45,068 22,659 3,383 Group Holding Limited 46,913 14,555 2,050 49,139 76,644 10,795Accretion of mezzanine equity 73 80 12 Net income attributable to ordinary 45,141 22,739 3,395 Basic 2.08 1.07 0.16 Diluted 2.05 1.06 0.16 Basic 16.60 8.54 1.27 Diluted 16.38 8.51 1.27 Basic 21,754 21,299 Diluted 22,038 21,384