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. Adjusted EBITDA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, impairment of goodwill, as well as equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, impairment of goodwill and equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before share-based compensation expense, amortization of intangible assets, impairment of goodwill and investments, gain or loss on deemed disposals/disposals/revaluation of investments, equity-settled donation expense and others, as adjusted for the tax effects. 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. Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENTS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (in millions, except per share data) (in millions, except per share data) Revenue 207,176 224,790 30,810 412,731 458,946 62,904 Cost of revenue (131,210) (139,664) (19,143) (260,867) (282,011) (38,653) Product development expenses (15,150) (14,218) (1,949) (29,343) (24,683) (3,383) Sales and marketing expenses (22,359) (25,485) (3,493) (47,937) (52,532) (7,200) General and administrative expenses (10,591) (9,408) (1,289) (19,024) (16,705) (2,290) Amortization of intangible assets (2,729) (2,431) (333) (5,480) (4,910) (673) Impairment of goodwill — — — — (2,031) (278) Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 (Loss) Income before income tax and share of results of equity method investees (15,759) 38,257 5,244 13,418 74,429 10,201 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) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 Net loss attributable to noncontrolling interests 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) Net (loss) income attributable to Three months ended September 30, Six months ended September 30, (20,561) 27,706 3,797 2,178 62,038 8,503 (0.97) 1.36 0.19 0.10 3.04 0.42 (0.97) 1.35 0.19 0.10 3.01 0.41 ordinary shareholders (Loss) Earnings per share attributable to ordinary shareholders(1) Basic Diluted (Loss) Earnings per ADS attributable to ordinary shareholders(1) 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 Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS As of March 31, As of September 30, 2023 2023 RMB RMB US$ Assets (in millions) 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 Prepayments, receivables and other assets 137,072 146,317 20,054 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 41,592 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 Deferred revenue and customer advances 71,295 73,909 10,130 Total current liabilities 385,351 389,810 53,428 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) As of March 31, As of September 30, 2023 2023 RMB RMB US$ (in millions) 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 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ 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 xxxx 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 ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ Three months ended September 30, Six months ended September 30, (in millions) (in millions) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 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 Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 — — Adjusted EBITA 36,164 42,845 5,872 70,583 88,216 12,091 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 Adjusted EBITDA 43,311 49,237 6,748 84,425 101,289 13,883 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 (loss) income to non-GAAP net income for the periods indicated: Three months ended September 30, Six months ended September 30, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (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 38,560 (1,731) (237) 36,848 7,307 1,001 511 — — 511 — — (3,320) (1,642) (225) (4,244) (3,877) (531) 33,820 40,188 5,508 64,072 85,110 11,665 Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others Equity-settled donation expense Tax effects (1) Non-GAAP net income

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. Adjusted EBITDA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business, as well as equity-equity- settled donation expense expense), which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill goodwill, and others (including provision in relation to matters outside the ordinary course of business, as well as equity-settled donation expense expense), which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill and investments, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business, as well as equity-settled donation expense expense), and others, as adjusted adjustments for the tax effects. 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. Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement have 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENTS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (in millions, except per share data) (in millions, except per share data) Revenue 207,176 224,790 30,810 412,731 458,946 62,904 247,756 260,348 36,669 660,487 719,294 101,310 Cost of revenue (131,210150,005) (139,664156,214) (19,14322,002) (260,867410,872) (282,011438,225) (38,65361,723) Product development expenses (15,15013,521) (14,21813,488) (1,9491,900) (29,34342,864) (24,68338,171) (3,3835,376) Sales and marketing expenses (22,35930,628) (25,48533,783) (3,4934,758) (47,93778,565) (52,53286,315) (7,20012,157) General and administrative expenses (10,59110,327) (9,40811,261) (1,2891,586) (19,02429,351) (16,70527,966) (2,2903,939) Amortization and impairment of intangible assets (2,7295,530) (2,43114,601) (3332,056) (5,48011,010) (4,91019,511) (6732,748) Impairment of goodwill — — — — (2,0312,714) (2788,490) (1,196) (2,714) (10,521) (1,482) Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 35,031 22,511 3,171 85,111 98,585 13,885 Interest and investment income, net 15,516 (42,452) 5,136 704 (37,0833,500) (762493) (10421,567) (4,262) (600) Interest expense (1,3881,550) (1,8542,132) (254301) (2,6324,182) (3,6385,770) (499813) Other income, net 2,944 1,391 191 3,053 2,755 377 (Loss) 1,462 439 62 4,515 3,194 450 Income before income tax and share of results of equity method investees (15,759) 38,257 5,244 13,418 74,429 10,201 50,459 17,318 2,439 63,877 91,747 12,922 Income tax expenses (2,5723,820) (5,7974,988) (795702) (7,97111,791) (11,81916,807) (1,6202,367) Share of results of equity method investees (4,136893) (5,7641,613) (790228) (7,6168,509) (2,9144,527) (399638) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 45,746 10,717 1,509 43,577 70,413 9,917 Net loss attributable to noncontrolling interests 2,034 1,151 158 4,395 2,393 328 1,167 3,838 541 5,562 6,231 878 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) Net (loss) income attributable to Three months ended September 30, Six months ended September 30, (20,561) 27,706 3,797 2,178 62,038 8,503 (0.97) 1.36 0.19 0.10 3.04 0.42 (0.97) 1.35 0.19 0.10 3.01 0.41 ordinary shareholders (Loss) Earnings per share attributable to ordinary shareholders(1) Basic Diluted (Loss) Earnings per ADS attributable to ordinary shareholders(1) 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 Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS As of March 31, As of September 30, 2023 2023 RMB RMB US$ Assets (in millions) 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 Prepayments, receivables and other assets 137,072 146,317 20,054 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 41,592 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 Deferred revenue and customer advances 71,295 73,909 10,130 Total current liabilities 385,351 389,810 53,428 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) As of March 31, As of September 30, 2023 2023 RMB RMB US$ (in millions) 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 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ 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 xxxx 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 ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ Three months ended September 30, Six months ended September 30, (in millions) (in millions) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 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 Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 — — Adjusted EBITA 36,164 42,845 5,872 70,583 88,216 12,091 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 Adjusted EBITDA 43,311 49,237 6,748 84,425 101,289 13,883 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 (loss) income to non-GAAP net income for the periods indicated: Three months ended September 30, Six months ended September 30, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (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 38,560 (1,731) (237) 36,848 7,307 1,001 511 — — 511 — — (3,320) (1,642) (225) (4,244) (3,877) (531) 33,820 40,188 5,508 64,072 85,110 11,665 Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others Equity-settled donation expense Tax effects (1) Non-GAAP net income14,555 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. Adjusted EBITDA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, rights and impairment of goodwill, as well as equity-settled donation expense expense, which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, assets and impairment of goodwill and goodwill, as well as equity-settled donation expense expense, which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill and investments, gain or loss on deemed disposals/disposals/revaluation of investments, equity-settled donation expense and others, as adjusted for the tax effects. 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. Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer consumer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer consumer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers consumers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENTS Three months ended March 31, Year ended March 31, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (in millions, except per share data) (in millions, except per share data) Revenue 207,176 224,790 30,810 412,731 458,946 62,904 204,052 208,200 30,316 853,062 868,687 126,491 Cost of revenue (131,210138,945) (139,664138,823) (19,14320,214) (260,867539,450) (282,011549,695) (38,65380,042) Product development expenses (15,15010,944) (14,21813,880) (1,9492,021) (29,34355,465) (24,68356,744) (3,3838,263) Sales and marketing expenses (22,35927,200) (25,48524,931) (3,4933,630) (47,937119,799) (52,532103,496) (7,20015,070) General and administrative expenses (10,5917,415) (9,40812,832) (1,2891,869) (19,02431,922) (16,70542,183) (2,2906,142) Amortization and impairment of intangible assets (2,7292,831) (2,4312,494) (333363) (5,48011,647) (4,91013,504) (6731,967) Impairment of goodwill — — — — (2,03125,141) (2782,714) (395) Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 16,717 15,240 2,219 69,638 100,351 14,612 Interest and investment income, net (42,45236,708) 5,136 704 10,496 1,528 (37,08315,702) (76211,071) (1041,612) Interest expense (1,3881,189) (1,8541,736) (254253) (2,6324,909) (3,6385,918) (499862) Other income, net 2,944 1,391 1,620 1,308 191 3,053 2,755 377 10,523 5,823 848 (Loss) Income before income tax and share of results of equity method investees (15,75919,560) 38,257 5,244 13,418 74,429 10,201 25,308 3,685 59,550 89,185 12,986 Income tax expenses (2,5722,079) (5,7973,758) (795547) (7,97126,815) (11,81915,549) (1,6202,264) Share of results of equity method investees 3,282 446 65 14,344 (4,1368,063) (5,764) (790) (7,616) (2,914) (3991,174) Net (loss) income (22,46718,357) 26,696 3,659 (2,169) 59,696 8,182 21,996 3,203 47,079 65,573 9,548 Net loss attributable to noncontrolling interests 2,034 1,151 158 4,395 2,393 328 2,241 1,648 240 15,170 7,210 1,050 Net (loss) income attributable to Alibaba Group Holding Limited (20,43316,116) 27,847 3,817 2,226 62,089 8,510 23,644 3,443 62,249 72,783 10,598 Accretion of mezzanine equity (125) (128) (14119) (20290) (48274) (51) (740) Net (loss) income attributable to Three months ended September 30, Six months ended September 30, (20,561) 27,706 3,797 2,178 62,038 8,503 (0.97) 1.36 0.19 0.10 3.04 0.42 (0.97) 1.35 0.19 0.10 3.01 0.41 ordinary shareholders (16,241) 23,516 3,424 61,959 72,509 10,558 (Loss) Earnings per share attributable to ordinary shareholders(1) 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 (Loss) Earnings per ADS attributable to ordinary shareholders(1) Basic (7.776.07) 10.90 1.49 0.82 24.31 3.33 9.11 1.33 22.99 27.65 4.03 Diluted (7.776.07) 10.77 1.48 0.82 24.08 3.30 9.00 1.31 22.74 27.46 4.00 Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) Basic 21,164 20,335 21,231 20,414 21,401 20,651 21,558 20,980 Diluted 21,164 20,526 21,329 20,567 21,401 20,882 21,787 21,114 (1) Each ADS represents eight ordinary shares. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS As of March 31, As of September 30March 31, 2023 2022 RMB 2023 RMB RMB US$ Assets (in millions) Assets Current assets: Cash and cash equivalents 189,898 193,086 243,716 33,404 28,115 Short-term investments 256,514 326,492 296,793 40,679 47,541 Restricted cash and escrow receivables 37,455 36,424 37,279 5,110 5,304 Equity securities and other investments 8,673 4,892 33,851 4,640 712 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 137,072 146,317 20,054 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 113,147 110,926 109,784 15,047 16,152 Investment in equity method investees 219,642 207,380 208,289 28,548 30,197 Property and equipment, net 171,806 176,031 179,436 24,594 25,632 Intangible assets, net 59,231 46,913 41,592 5,701 6,831 Goodwill 269,581 268,091 266,713 36,556 39,037 Total assets 1,695,553 1,753,044 1,811,590 248,299 255,263 Liabilities, Mezzanine Equity and Shareholders’ Equity Current liabilities: Current bank borrowings 8,841 7,466 8,187 1,122 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 12,543 271,460 275,950 8,507 286,604 1,166 39,283 40,182 Merchant deposits 14,747 13,297 12,603 1,727 1,936 Deferred revenue and customer advances 66,983 71,295 73,909 10,130 10,381 Total current liabilities 383,784 385,351 389,810 53,428 56,111 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) As of March 31, As of September 30March 31, 2023 2022 2023 RMB RMB US$ (in millions) Deferred revenue 3,490 3,560 3,771 517 518 Deferred tax liabilities 61,706 61,745 57,692 7,907 8,991 Non-current bank borrowings 38,244 52,023 55,116 7,554 7,575 Non-current unsecured senior notes 94,259 97,065 103,441 14,178 14,134 Other liabilities 31,877 30,379 31,714 4,347 4,424 Total liabilities 613,360 630,123 641,544 87,931 91,753 Commitments and contingencies Mezzanine equity 9,655 9,858 10,328 1,415 1,435 Shareholders’ equity: Ordinary shares 1 1 — Additional paid-in capital 410,506 416,880 407,748 55,887 60,702 Treasury shares at cost (2,221) (28,763) (28,555) (3,9144,188) Subscription receivables (46) (49) — — (7) Statutory reserves 9,839 12,977 1,890 Accumulated other comprehensive loss (loss33,157) income 12,977 (10,417) 14,416 5,809 1,976 796 (1,517) Retained earnings 563,557 599,028 635,663 87,125 87,225 Total shareholders’ equity 948,479 989,657 1,035,082 141,870 144,105 Noncontrolling interests 124,059 123,406 124,636 17,083 17,970 Total equity 1,072,538 1,113,063 1,159,718 158,953 162,075 Total liabilities, mezzanine equity and equity 1,695,553 1,753,044 1,811,590 248,299 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ 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 xxxx 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 ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ Three months ended September 30, Six months ended September 30, (in millions) (in millions) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 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 Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 — — Adjusted EBITA 36,164 42,845 5,872 70,583 88,216 12,091 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 Adjusted EBITDA 43,311 49,237 6,748 84,425 101,289 13,883 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 (loss) income to non-GAAP net income for the periods indicated: Three months ended September 30, Six months ended September 30, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (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 38,560 (1,731) (237) 36,848 7,307 1,001 511 — — 511 — — (3,320) (1,642) (225) (4,244) (3,877) (531) 33,820 40,188 5,508 64,072 85,110 11,665 Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others Equity-settled donation expense Tax effects (1) Non-GAAP net income255,263

Financial Measures. To supplement This press release includes the term Adjusted EBITDA. We believe that the presentation of Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations. Adjusted EBITDA is a non-GAAP supplemental financial measure that management and external users of our condensed consolidated financial statements, which are prepared such as industry analysts, investors, lenders and presented rating agencies, may use to assess: • our operating performance as compared to other publicly traded partnerships in accordance with GAAPthe midstream energy industry, we use without regard to historical cost basis or financing methods; • the following ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders; • our ability to incur and service debt and fund capital expenditures; and • the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. The GAAP measure most directly comparable to Adjusted EBITDA is net income. This non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-measure should not be considered as an alternative to 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 EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income, non-GAAP diluted earnings per share/ADS and free cash flow . It 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 a substitute for analysis of our operating performanceresults as reported under GAAP. These non-GAAP financial measures presented here do not have standardized meanings prescribed Additionally, because Adjusted EBITDA may be defined differently by U.S. GAAP and other companies in our industry, our definition of Adjusted EBITDA may not be comparable to similarly titled measures presented by of other companies, thereby diminishing its utility. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures References in this press release to our data. Adjusted EBITDA represents refer to net income before (i) interest and investment incomeincome taxes, net, net interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, impairment of goodwill, as well as equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, impairment of goodwill and equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before share-based compensation expense, amortization of intangible assets, impairment of goodwill and investments, gain or loss on deemed disposals/disposals/revaluation from disposition of investmentsfixed assets, equity-settled donation expense allowance oil reduction to net realizable value, and othersdepreciation, as adjusted amortization and accretion, plus cash distributed to Shell Midstream Partners, L.P. from equity investments for the tax effectsapplicable period, less income from equity investments. Non-GAAP diluted earnings per share represents non-GAAP net income We define Adjusted EBITDA 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. Free cash flow represents net cash provided by operating activities Shell Midstream Partners as presented in our consolidated cash flow statement Adjusted EBITDA less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENTS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (in millions, except per share data) (in millions, except per share data) Revenue 207,176 224,790 30,810 412,731 458,946 62,904 Cost of revenue (131,210) (139,664) (19,143) (260,867) (282,011) (38,653) Product development expenses (15,150) (14,218) (1,949) (29,343) (24,683) (3,383) Sales and marketing expenses (22,359) (25,485) (3,493) (47,937) (52,532) (7,200) General and administrative expenses (10,591) (9,408) (1,289) (19,024) (16,705) (2,290) Amortization of intangible assets (2,729) (2,431) (333) (5,480) (4,910) (673) Impairment of goodwill — — — — (2,031) (278) Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 (Loss) Income before income tax and share of results of equity method investees (15,759) 38,257 5,244 13,418 74,429 10,201 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) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 Net loss Adjusted EBITDA attributable to noncontrolling interests 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) Net (loss) income attributable to Three months ended September 30, Six months ended September 30, (20,561) 27,706 3,797 2,178 62,038 8,503 (0.97) 1.36 0.19 0.10 3.04 0.42 (0.97) 1.35 0.19 0.10 3.01 0.41 ordinary shareholders (Loss) Earnings per share attributable to ordinary shareholders(1) Basic Diluted (Loss) Earnings per ADS attributable to ordinary shareholders(1) 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 Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) 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. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS As of March 31, As of September 30, 2023 2023 RMB RMB US$ Assets (in millions) 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 Prepayments, receivables and other assets 137,072 146,317 20,054 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 41,592 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 Deferred revenue and customer advances 71,295 73,909 10,130 Total current liabilities 385,351 389,810 53,428 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) As of March 31, As of September 30, 2023 2023 RMB RMB US$ (in millions) 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 ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ 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 xxxx 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 ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ Three months ended September 30, Six months ended September 30, (in millions) (in millions) Net (loss) income (22,467) 26,696 3,659 (2,169) 59,696 8,182 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 Income from operations 25,137 33,584 4,603 50,080 76,074 10,427 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 — — Adjusted EBITA 36,164 42,845 5,872 70,583 88,216 12,091 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 Adjusted EBITDA 43,311 49,237 6,748 84,425 101,289 13,883 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 (loss) income to non-GAAP net income for the periods indicated: Three months ended September 30, Six months ended September 30, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$ (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 38,560 (1,731) (237) 36,848 7,307 1,001 511 — — 511 — — (3,320) (1,642) (225) (4,244) (3,877) (531) 33,820 40,188 5,508 64,072 85,110 11,665 Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others Equity-settled donation expense Tax effects (1) Non-GAAP net incomeinterests.