98% of Alibaba’s annual active consumers who each spent over RMB10,000 on Taobao and Tmall in the twelve months ended June 30, 2021 continued to be active in the twelve months ended June 30, 2022 as of 30 June 2022.
In the twelve months ended June 30, 2022, more than 123 million annual active consumers spent over RMB10,000 on Taobao and Tmall. As of June 30, 2022, Alibaba had 25 million 88VIP members with over RMB 57,000 annual average spending per member.
Taobao Deals has been helping an expanding base of manufacturers to sell directly to consumers (M2C) on Taobao and Taobao Deals and, in the June quarter, paid GMV of M2C products on Taobao and Taobao Deals grew more than 40% year-over-year.
Taocaicai, Alibaba’s business offering consumers next day pick-up service for grocery and fresh goods at neighborhood pick-up points, has rapidly established market presence in regions that have high population density with meaningful consumption power.
In Q2, Taocaicai GMV grew rapidly at more than 200% year-over-year while its losses increased moderately compared to the same quarter last year. Moreover, driven by optimized pricing strategy, better sourcing capability and lowered operating costs, Taocaicai significantly reduced losses quarter-over-quarter in the June quarter.
The percentage of online sales for Freshippo and Sun Art reached 68% and 36%.
Alibaba’s revenue in Q2 2022 avoided a decline and was RMB205,555 million (US$30,689 million) with a decline in China commerce segment revenue by 1% year-over-year to RMB141,935 million (US$21,190 million) offset by revenue growth of Alibaba Cloud segment by 10% year-over-year to RMB17,685 million (US$2,640 million).
Operating income was RMB24,943 million (US$3,724 million), a decrease of 19% year-over-year. Adjusted EBITA, a non-GAAP measurement, decreased 18% year-over-year to RMB34,419 million (US$5,139 million).
Alibaba net income attributable to ordinary shareholders was RMB22,739 million (US$3,395 million) and net income was RMB20,298 million (US$3,030 million). Non-GAAP net income was RMB30,252 million (US$4,517 million), a decrease of 30% year-over-year, mainly due to a decrease in adjusted EBITA and a decrease in share of results of equity method investees.
Diluted earnings per ADS was RMB8.51 (US$1.27) and diluted earnings per share was RMB1.06 (US$0.16 or HK$1.24). Non-GAAP diluted earnings per ADS was RMB11.73 (US$1.75), a decrease of 29% year-over-year and non-GAAP diluted earnings per share was RMB1.47 (US$0.22 or HK$1.72), a decrease of 29% year-over-year.
Net cash provided by operating activities was RMB33,869 million (US$5,057 million), an increase of 1% compared to RMB33,603 million in the same quarter of 2021. Free cash flow, a non-GAAP measurement of liquidity, was RMB22,173 million (US$3,310 million), an increase of 7% compared to RMB20,683 million in the same quarter of 2021.