Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | Alibaba Group Holding Ltd |
Entity Central Index Key | 0001577552 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,587,059,572 |
Entity Shell Company | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS ¥ in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019CNY (¥)¥ / sharesshares | Mar. 31, 2018CNY (¥)¥ / sharesshares | Mar. 31, 2017CNY (¥)¥ / sharesshares | |
CONSOLIDATED INCOME STATEMENTS | ||||
Revenue | $ 56,152 | ¥ 376,844 | ¥ 250,266 | ¥ 158,273 |
Cost of revenue | (30,833) | (206,929) | (107,044) | (59,483) |
Product development expenses | (5,578) | (37,435) | (22,754) | (17,060) |
Sales and marketing expenses | (5,928) | (39,780) | (27,299) | (16,314) |
General and administrative expenses | (3,708) | (24,889) | (16,241) | (12,239) |
Amortization of intangible assets | (1,599) | (10,727) | (7,120) | (5,122) |
Impairment of goodwill | ¥ | 0 | (494) | 0 | |
Income from operations | 8,506 | 57,084 | 69,314 | 48,055 |
Interest and investment income, net | 6,572 | 44,106 | 30,495 | 8,559 |
Interest expense | (773) | (5,190) | (3,566) | (2,671) |
Other income, net | 32 | 221 | 4,160 | 6,086 |
Income before income tax and share of results of equity investees | 14,337 | 96,221 | 100,403 | 60,029 |
Income tax expenses | (2,466) | (16,553) | (18,199) | (13,776) |
Share of results of equity investees | 84 | 566 | (20,792) | (5,027) |
Net income | 11,955 | 80,234 | 61,412 | 41,226 |
Net loss attributable to noncontrolling interests | 1,140 | 7,652 | 2,681 | 2,449 |
Net income attributable to Alibaba Group Holding Limited | 13,095 | 87,886 | 64,093 | 43,675 |
Accretion of mezzanine equity | (42) | (286) | (108) | |
Net income attributable to ordinary shareholders | $ 13,053 | ¥ 87,600 | ¥ 63,985 | ¥ 43,675 |
Earnings per share/ADS attributable to ordinary shareholders | ||||
Basic | (per share) | $ 5.06 | ¥ 33.95 | ¥ 25.06 | ¥ 17.52 |
Diluted | (per share) | $ 4.97 | ¥ 33.38 | ¥ 24.51 | ¥ 16.97 |
Weighted average number of shares/ADSs used in computing earnings per share/ADS (million shares) | ||||
Basic | 2,580 | 2,580 | 2,553 | 2,493 |
Diluted | 2,623 | 2,623 | 2,610 | 2,573 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 11,955 | ¥ 80,234 | ¥ 61,412 | ¥ 41,226 |
Foreign currency translation: | ||||
Change in unrealized (losses) gains | 159 | 1,068 | (805) | (2,191) |
Reclassification adjustment for losses recorded in net income | 44 | |||
Net change | 159 | 1,068 | (805) | (2,147) |
Available-for-sale securities: | ||||
Change in unrealized gains | 769 | 8,911 | ||
Reclassification adjustment for (gains) losses recorded in net income | 57 | (5,764) | ||
Tax effect | 385 | (1,042) | ||
Net change | 1,211 | 2,105 | ||
Share of other comprehensive income of equity method investees: | ||||
Change in unrealized gains (losses) | 87 | 582 | (930) | 780 |
Interest rate swaps under hedge accounting and others: | ||||
Change in unrealized gains (losses) | (44) | (295) | 143 | 433 |
Forward exchange contracts under hedge accounting: | ||||
Change in unrealized gains (losses) | (85) | 169 | ||
Other comprehensive income (loss) | 202 | 1,355 | (466) | 1,340 |
Total comprehensive income | 12,157 | 81,589 | 60,946 | 42,566 |
Total comprehensive loss attributable to noncontrolling interests | 989 | 6,637 | 2,215 | 389 |
Total comprehensive income attributable to ordinary shareholders | $ 13,146 | ¥ 88,226 | ¥ 63,161 | ¥ 42,955 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 28,308 | ¥ 189,976 | ¥ 199,309 |
Short-term investments | 486 | 3,262 | 6,086 |
Restricted cash and escrow receivables | 1,269 | 8,518 | 3,417 |
Investment securities | 1,479 | 9,927 | 4,815 |
Prepayments, receivables and other assets | 8,730 | 58,590 | 43,228 |
Total current assets | 40,272 | 270,273 | 256,855 |
Investment securities | 23,407 | 157,090 | 38,192 |
Prepayments, receivables and other assets | 4,175 | 28,018 | 26,274 |
Investments in equity investees | 139,700 | ||
Investments in equity investees | 12,584 | 84,454 | 79,758 |
Property and equipment, net | 13,713 | 92,030 | 66,489 |
Intangible assets, net | 10,173 | 68,276 | 27,465 |
Goodwill | 39,477 | 264,935 | 162,149 |
Total assets | 143,801 | 965,076 | 717,124 |
Current liabilities: | |||
Current bank borrowings | 1,096 | 7,356 | 6,028 |
Current unsecured senior notes | 2,251 | 15,110 | |
Income tax payable | 2,635 | 17,685 | 13,689 |
Escrow money payable | 1,229 | 8,250 | 3,053 |
Accrued expenses, accounts payable and other liabilities | 17,540 | 117,711 | 81,165 |
Merchant deposits | 1,604 | 10,762 | 9,578 |
Deferred revenue and customer advances | 4,589 | 30,795 | 22,297 |
Total current liabilities | 30,944 | 207,669 | 135,810 |
Deferred revenue | 219 | 1,467 | 993 |
Deferred tax liabilities | 3,355 | 22,517 | 19,312 |
Non-current bank borrowings | 5,279 | 35,427 | 34,153 |
Non-current unsecured senior notes | 11,385 | 76,407 | 85,372 |
Other liabilities | 922 | 6,187 | 2,045 |
Total liabilities | 52,104 | 349,674 | 277,685 |
Commitments and contingencies | |||
Mezzanine equity | 1,016 | 6,819 | 3,001 |
Shareholders' equity: | |||
Ordinary shares, US$0.000025 par value; 4,000,000,000 shares authorized as of March 31, 2018 and 2019; 2,571,929,843 and 2,587,059,572 shares issued and outstanding as of March 31, 2018 and 2019, respectively | 1 | 1 | |
Additional paid-in capital | 34,537 | 231,783 | 186,764 |
Treasury shares, at cost | (2,233) | ||
Restructuring reserve | (15) | (97) | (361) |
Subscription receivables | (7) | (49) | (163) |
Statutory reserves | 755 | 5,068 | 4,378 |
Accumulated other comprehensive income (loss) | |||
Cumulative translation adjustments | (386) | (2,592) | (3,594) |
Unrealized gains on available-for-sale securities, interest rate swaps and others | 38 | 257 | 8,677 |
Retained earnings | 38,426 | 257,886 | 172,353 |
Total shareholders' equity | 73,348 | 492,257 | 365,822 |
Noncontrolling interests | 17,333 | 116,326 | 70,616 |
Total equity | 90,681 | 608,583 | 436,438 |
Total liabilities, mezzanine equity and equity | $ 143,801 | ¥ 965,076 | ¥ 717,124 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares- par value | $ 0.000025 | $ 0.000025 |
Ordinary shares- shares authorized | 4,000,000,000 | 4,000,000,000 |
Ordinary shares, shares issued | 2,587,059,572 | 2,571,929,843 |
Ordinary shares, shares outstanding | 2,587,059,572 | 2,571,929,843 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Millions, $ in Millions | Total shareholders' equityCNY (¥) | Ordinary SharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Treasury sharesCNY (¥) | Restructuring reserveCNY (¥) | Subscription receivablesCNY (¥) | Statutory reservesCNY (¥) | Cumulative translation adjustmentsCNY (¥) | Unrealized gains (losses) on available-for-sale securities, interest rate swaps and othersCNY (¥) | Retained earningsCNY (¥) | Noncontrolling interestCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Mar. 31, 2016 | ¥ 216,987 | ¥ 1 | ¥ 132,206 | ¥ 0 | ¥ (888) | ¥ (172) | ¥ 3,244 | ¥ (1,050) | ¥ 4,894 | ¥ 78,752 | ¥ 32,552 | ¥ 249,539 | |
Balance (in shares) at Mar. 31, 2016 | shares | 2,473,927,859 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Foreign currency translation adjustment | (2,307) | (17) | (2,612) | 322 | 99 | (2,208) | |||||||
Net change in unrealized gains on available-for-sale securities | 2,105 | 2,105 | 2,105 | ||||||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | 2,199 | 1,419 | 780 | 2,199 | |||||||||
Change in fair value of forward exchange contracts under hedge accounting | 169 | 169 | 169 | ||||||||||
Change in fair value of interest rate swaps under hedge accounting and others | 433 | 433 | 433 | ||||||||||
Net income for the year | 43,675 | 43,675 | (488) | 43,187 | |||||||||
Deconsolidation of subsidiaries | 44 | 44 | 44 | ||||||||||
Acquisition of subsidiaries | 9,209 | 9,209 | |||||||||||
Issuance of shares, including exercise of share options and vesting of early exercised options and RSUs, including repayment of related employee loans | 701 | 575 | 126 | 701 | |||||||||
Issuance of shares, including exercise of share options, and vesting of early exercised options and RSUs, including repayment of related employee loans (in shares) | shares | 56,165,655 | ||||||||||||
Repurchase and retirement of ordinary shares | (13,182) | (149) | (13,033) | (13,182) | |||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | (27,054,014) | ||||||||||||
Transactions with noncontrolling interests | 210 | 210 | 571 | 781 | |||||||||
Amortization of compensation cost | 15,610 | 15,610 | 487 | 16,097 | |||||||||
Tax benefits from share-based awards | 689 | 689 | 689 | ||||||||||
Issuance of ordinary shares (Note 4(y)) | 11,189 | 14,012 | (2,823) | 11,189 | |||||||||
Issuance of ordinary shares (Note 4(y)) (in shares) | shares | 26,324,689 | ||||||||||||
Exercise of right of subscription by noncontrolling interest for Partner Capital Investment Plan (Note 8(c)) | 100 | 100 | |||||||||||
Appropriation to statutory reserves | 836 | (836) | |||||||||||
Others | 277 | 13 | 264 | (200) | 77 | ||||||||
Balance at Mar. 31, 2017 | 278,799 | ¥ 1 | 164,585 | (2,823) | (624) | (63) | 4,080 | (3,618) | 8,703 | 108,558 | 42,330 | 321,129 | |
Balance (in shares) at Mar. 31, 2017 | shares | 2,529,364,189 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Foreign currency translation adjustment | (328) | 14 | 24 | (366) | (463) | (791) | |||||||
Net change in unrealized gains on available-for-sale securities | 1,212 | 1,212 | (1) | 1,211 | |||||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | (1,455) | (525) | (930) | (1,455) | |||||||||
Change in fair value of forward exchange contracts under hedge accounting | (85) | (85) | (85) | ||||||||||
Change in fair value of interest rate swaps under hedge accounting and others | 143 | 143 | 143 | ||||||||||
Net income for the year | 64,093 | 64,093 | (1,751) | 62,342 | |||||||||
Acquisition of subsidiaries | 40,087 | 40,087 | |||||||||||
Issuance of shares, including exercise of share options and vesting of early exercised options and RSUs, including repayment of related employee loans | 3,831 | 3,945 | (114) | 3,831 | |||||||||
Issuance of shares, including exercise of share options, and vesting of early exercised options and RSUs, including repayment of related employee loans (in shares) | shares | 42,565,654 | ||||||||||||
Transactions with noncontrolling interests | (186) | (186) | (10,513) | (10,699) | |||||||||
Amortization of compensation cost | 19,053 | 19,053 | 1,039 | 20,092 | |||||||||
Partial disposal of the Company's shares by Suning (Note 4(y)) | 590 | 590 | 590 | ||||||||||
Appropriation to statutory reserves | 298 | (298) | |||||||||||
Others | 155 | (108) | 263 | (112) | 43 | ||||||||
Balance at Mar. 31, 2018 | 365,822 | ¥ 1 | 186,764 | (2,233) | (361) | (163) | 4,378 | (3,594) | 8,677 | 172,353 | 70,616 | ¥ 436,438 | |
Balance (in shares) at Mar. 31, 2018 | shares | 2,571,929,843 | 2,571,929,843 | 2,571,929,843 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Cumulative effect of change in accounting principle (Note (2(t)) | (32) | (8,164) | 8,196 | ||||||||||
Adjusted balance | 365,822 | ¥ 1 | 186,764 | (2,233) | (361) | (163) | 4,378 | (3,626) | 513 | 180,549 | 70,616 | ¥ 436,438 | |
Foreign currency translation adjustment | 479 | (12) | 452 | 39 | 577 | 1,056 | |||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | 724 | 142 | 582 | 724 | |||||||||
Change in fair value of interest rate swaps under hedge accounting and others | (295) | (295) | $ (44) | (295) | |||||||||
Net income for the year | 87,886 | 87,886 | (7,214) | 80,672 | |||||||||
Acquisition of subsidiaries | 7,515 | 7,515 | 49,805 | 57,320 | |||||||||
Issuance of shares, including exercise of share options and vesting of early exercised options and RSUs, including repayment of related employee loans | 354 | 228 | 126 | 354 | |||||||||
Issuance of shares, including exercise of share options, and vesting of early exercised options and RSUs, including repayment of related employee loans (in shares) | shares | 26,001,439 | ||||||||||||
Repurchase and retirement of ordinary shares | (10,872) | (1,013) | (9,859) | (10,872) | |||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | (10,871,710) | ||||||||||||
Transactions with noncontrolling interests | 3,412 | 3,412 | 406 | 3,818 | |||||||||
Amortization of compensation cost | 35,015 | 35,015 | 2,586 | 37,601 | |||||||||
Disposal of the Company's shares by Suning (Note 4(y)) | 2,233 | 2,233 | 2,233 | ||||||||||
Appropriation to statutory reserves | 690 | (690) | |||||||||||
Others | (16) | (280) | 264 | (450) | (466) | ||||||||
Balance at Mar. 31, 2019 | ¥ 492,257 | ¥ 1 | ¥ 231,783 | ¥ 0 | ¥ (97) | ¥ (49) | ¥ 5,068 | ¥ (2,592) | ¥ 257 | ¥ 257,886 | ¥ 116,326 | $ 90,681 | ¥ 608,583 |
Balance (in shares) at Mar. 31, 2019 | shares | 2,587,059,572 | 2,587,059,572 | 2,587,059,572 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 11,955 | ¥ 80,234 | ¥ 61,412 | ¥ 41,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Revaluation gain on previously held equity interest | (4,498) | (30,187) | (24,436) | (770) |
Gain on disposals of equity investees | (6) | (42) | (2,971) | (536) |
Realized and unrealized gain related to investment securities | (2,396) | (16,082) | (70) | (5,488) |
Change in fair value of other assets and liabilities | (212) | (1,422) | 1,415 | (759) |
Loss (Gain) on disposals of subsidiaries | 4 | (14) | 35 | |
Depreciation and amortization of property and equipment and land use rights | 2,229 | 14,962 | 8,789 | 5,284 |
Amortization of intangible assets and licensed copyrights | 3,295 | 22,118 | 13,231 | 9,008 |
Tax benefits from share-based awards | (1,369) | |||
Share-based compensation expense | 5,586 | 37,491 | 20,075 | 15,995 |
Impairment of cost method investees and investment securities | 1,619 | 10,867 | 1,816 | 2,298 |
Impairment of goodwill and licensed copyrights | 424 | 2,843 | 1,295 | 857 |
Loss (Gain) on disposals of property and equipment | 8 | 55 | (95) | 34 |
Amortization of restructuring reserve | 39 | 264 | 264 | 264 |
Share of results of equity investees | (84) | (566) | 20,792 | 5,027 |
Deferred income taxes | (327) | (2,197) | 976 | 281 |
Allowance for doubtful accounts | 57 | 383 | 601 | 1,680 |
Changes in assets and liabilities, net of effects of acquisitions and disposals: | ||||
Prepayments, receivables and other assets | (1,517) | (10,185) | (14,765) | (8,237) |
Income tax payable | 456 | 3,060 | 6,610 | 4,698 |
Escrow money payable | 774 | 5,197 | 643 | 2,528 |
Accrued expenses, accounts payable and other liabilities | 3,629 | 24,355 | 23,158 | 5,312 |
Merchant deposits | 177 | 1,184 | 1,389 | 875 |
Deferred revenue and customer advances | 1,288 | 8,639 | 5,690 | 4,611 |
Net cash provided by operating activities | 22,496 | 150,975 | 125,805 | 82,854 |
Cash flows from investing activities: | ||||
Decrease (Increase) in short-term investments, net | 1,196 | 8,028 | (730) | 5,761 |
Decrease in trading securities, net | 468 | |||
Payments for settlement of forward exchange contracts | (3) | (15) | (582) | (256) |
Acquisitions of investment securities | (10,799) | (72,472) | (11,872) | (4,677) |
Disposals of investment securities | 1,499 | 10,057 | 7,223 | 4,354 |
Acquisitions of equity investees | (1,767) | (11,860) | (53,742) | (39,429) |
Disposals of equity investees | 42 | 282 | 6,185 | 4,941 |
Acquisitions of: | ||||
Land use rights and construction in progress relating to office campus | (468) | (3,146) | (4,027) | (5,326) |
Other property and equipment | (4,818) | (32,336) | (15,601) | (5,680) |
Licensed copyrights and other intangible assets | (2,110) | (14,161) | (10,208) | (6,540) |
Cash paid for business combinations, net of cash acquired | (5,280) | (35,434) | (515) | (33,448) |
Deconsolidation and disposal of subsidiaries, net of cash proceeds | (2) | (10) | (27) | 250 |
Loans to employees, net of repayments | 1 | 7 | 132 | 3 |
Net cash used in investing activities | (22,509) | (151,060) | (83,764) | (79,579) |
Cash flows from financing activities: | ||||
Issuance of ordinary shares | 53 | 354 | 399 | 14,607 |
Repurchase of ordinary shares | (1,620) | (10,872) | (13,182) | |
Acquisition of additional equity interests in non-wholly owned subsidiaries | (167) | (1,123) | (13,627) | |
Payment for settlement of contingent consideration | (770) | |||
Subscription of rights for Partner Capital Investment Plan | 87 | |||
Dividends paid by non-wholly owned subsidiaries to noncontrolling interests | (34) | (226) | (112) | (163) |
Capital injection from noncontrolling interests | 1,297 | 8,706 | 1,124 | 1,543 |
Tax benefits from share-based awards | 689 | |||
Proceeds from bank borrowings and other borrowings | 1,806 | 12,116 | 26,824 | 96,677 |
Repayment of bank borrowings | (2,436) | (16,347) | (30,414) | (67,344) |
Proceeds from unsecured senior notes | 45,817 | |||
Repayment of unsecured senior notes | (8,602) | |||
Upfront fee payment for a revolving credit facility | (280) | |||
Net cash provided by (used in) financing activities | (1,101) | (7,392) | 20,359 | 32,914 |
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables | 484 | 3,245 | (6,065) | 2,038 |
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables | (630) | (4,232) | 56,335 | 38,227 |
Cash and cash equivalents, restricted cash and escrow receivables at beginning of year | 30,207 | 202,726 | 146,391 | 108,164 |
Cash and cash equivalents, restricted cash and escrow receivables at end of year | 29,577 | 198,494 | 202,726 | 146,391 |
Supplemental disclosures of cash flow information: | ||||
Payment of income taxes | 15,713 | 10,058 | 9,652 | |
Payment of interest | 4,972 | 2,884 | 2,465 | |
Business combinations: | ||||
Cash paid for business combinations | (48,206) | (17,300) | (41,836) | |
Cash acquired in business combinations | 12,772 | 16,785 | 8,388 | |
Cash paid for business combinations, net of cash acquired | $ (5,280) | ¥ (35,434) | ¥ (515) | ¥ (33,448) |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Mar. 31, 2019 | |
Organization and principal activities | |
Organization and principal activities | 1. Alibaba Group Holding Limited (the “Company”) is a limited liability company, which was incorporated in the Cayman Islands on June 28, 1999. The Company is a holding company and conducts its businesses primarily through its subsidiaries. In these consolidated financial statements, where appropriate, the term “Company” also refers to its subsidiaries as a whole. The Company provides the technology infrastructure and marketing reach to help merchants, brands and other businesses to leverage the power of new technology to engage with their users and customers and operate in a more efficient way. Major shareholders of the Company include SoftBank Group Corp. (together with its subsidiaries, “SoftBank”) and Altaba Inc. (formerly known as Yahoo! Inc.) (“Altaba”). The Company has four operating and reportable segments, namely core commerce, cloud computing, digital media and entertainment, and innovation initiatives and others. The Company’s core commerce segment is mainly comprised of (i) the retail and wholesale commerce businesses, (ii) the logistics services business and (iii) the local consumer services business. Retail commerce businesses in the People’s Republic of China (the “PRC” or “China”) primarily include the mobile commerce destination (“Taobao Marketplace”) and the third-party online and mobile platform for brands and retailers (“Tmall”). Retail commerce businesses – cross-border and global include the e-commerce platform across Southeast Asia operated by Lazada (Note 4(i)), the global retail marketplace enabling consumers from around the world to buy directly from manufacturers and distributors primarily in China (“AliExpress”) and the import e-commerce platform that allows overseas brands and retailers to reach Chinese consumers (“Tmall Global”). Wholesale commerce businesses in China include the integrated domestic wholesale marketplace (“1688.com”). Wholesale commerce businesses – cross-border and global include the integrated international online wholesale marketplace (“Alibaba.com”). Logistics services business includes a logistics data platform and a nationwide fulfillment network through Cainiao Network (Note 4(f)). Local consumer services business includes the on-demand delivery and local services platform operated by Ele.me (Note 4(c)) and the restaurant and local services guide platform for in-store consumption operated by Koubei (Note 4(c)). The Company’s cloud computing segment is comprised of Alibaba Cloud, which offers a complete suite of cloud services including elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, a machine learning platform and Internet of Things (“IoT”) services. The Company’s digital media and entertainment segment leverages the Company’s deep data insights to serve the broader interests of consumers through two key distribution platforms, Youku (Note 4(h)) and UC Browser, and through Alibaba Pictures (Note 4(b)) and the Company’s other diverse content platforms that provide online videos, films, live events, news feeds, literature and music, among other areas. The Company’s innovation initiatives and others segment includes businesses such as Amap (formerly AutoNavi), DingTalk, Tmall Genie and others. The Company has a profit sharing interest in Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (together with its subsidiaries including Alipay.com Co., Ltd. (“Alipay”), “Ant Financial”) (Note 4(a)). Ant Financial is an unconsolidated related party that provides payment and financial services to consumers and merchants on the Company’s platforms. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Translations of balances in the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows from Renminbi (“RMB”) into the United States Dollar (“US$”) as of and for the year ended March 31, 2019 are solely for the convenience of the readers and are calculated at the rate of US$1.00=RMB6.7112, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 29, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at this rate, or at any other rate. (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. (c) Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the PRC-registered entities directly or indirectly wholly owned by the Company (“WFOEs”) and variable interest entities (“VIEs”) over which the Company is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. A VIE is required to be consolidated by the primary beneficiary of the entity if the equity holders in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Due to legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include the operations of Internet content providers, the Company operates its Internet and other businesses in which foreign investment is restricted or prohibited in the PRC through certain PRC domestic companies. The equity interests of these PRC domestic companies are held by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, these PRC domestic companies that are material to the Company’s business are Zhejiang Taobao Network Co., Ltd., Zhejiang Tmall Network Co., Ltd., Alibaba Cloud Computing Ltd., Hangzhou Alibaba Advertising Co., Ltd. and Youku Information Technology (Beijing) Co., Ltd. The registered capital of these PRC domestic companies was funded by the Company through loans extended to the equity holders of these PRC domestic companies. The Company has entered into certain exclusive technical services agreements with these PRC domestic companies, which entitle it to receive a majority of their residual returns and make it obligatory for the Company to absorb a majority of the risk of losses from their activities. In addition, the Company has entered into certain agreements with the equity holders of these PRC domestic companies, including loan agreements that require them to contribute registered capital to those PRC domestic companies, exclusive call option agreements to acquire the equity interests in these companies when permitted by the PRC laws, rules and regulations, equity pledge agreements of the equity interests held by those equity holders, and proxy agreements that irrevocably authorize individuals designated by the Company to exercise the equity owner’s rights over these PRC domestic companies. Details of the typical structure of the Company’s significant VIEs are set forth below: (i) Loan agreements Pursuant to the relevant loan agreements, the respective WFOEs have granted loans to the equity holders of the VIEs, which may only be used for the purpose of its business operation activities agreed by the WFOEs. The WFOEs may require acceleration of repayment at their absolute discretion. When the equity holders of the VIEs make early repayment of the outstanding amount, the WFOEs or a third-party designated by the WFOEs may purchase the equity interests in the VIEs at a price equal to the outstanding amount of the loan, subject to any applicable PRC laws, rules and regulations. The equity holders of the VIEs undertake not to enter into any prohibited transactions in relation to the VIEs, including the transfer of any business, material assets, intellectual property rights or equity interests in the VIEs to any third party. Exclusive call option agreements The equity holders of the VIEs have granted the WFOEs exclusive call options to purchase their equity interest in the VIEs at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs; and (ii) the minimum price as permitted by applicable PRC laws. Each relevant VIE has further granted the relevant WFOE an exclusive call option to purchase its assets at an exercise price equal to the book value of the assets or the minimum price as permitted by applicable PRC laws, whichever is higher. Certain VIEs and their equity holders will also jointly grant the WFOEs (A) exclusive call options to request the VIEs to decrease their registered capital at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs and (ii) the minimum price as permitted by applicable PRC laws (the “Capital Decrease Price”), and (B) exclusive call options to subscribe for the increased capital of the VIEs at a price equal to the sum of the Capital Decrease Price and the unpaid registered capital, if applicable, as of the capital decrease. The WFOEs may nominate another entity or individual to purchase the equity interest or assets, or to subscribe for the increased capital, if applicable, under the call options. Execution of each call option shall not violate the applicable PRC laws, rules and regulations. Each equity holder of the VIE has agreed that the following amounts, to the extent in excess of the original registered capital that they contributed to the VIE (after deduction of relevant tax expenses), belong to and shall be paid to the WFOEs: (i) proceeds from the transfer of its equity interests in the VIE, (ii) proceeds received in connection with a capital decease in the VIE, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIE upon termination or liquidation. Moreover, any profits, distributions or dividends (after deduction of relevant tax expenses) received by the VIEs also belong to and shall be paid to the WFOEs. The exclusive call option agreements remain in effect until the equity interest or assets that are the subject of these agreements are transferred to the WFOEs. Proxy agreements Pursuant to the relevant proxy agreements, the equity holders of the VIEs irrevocably authorize any person designated by the WFOEs to exercise their rights as the equity holders of the VIEs, including without limitation the right to vote and appoint directors. Equity pledge agreements Pursuant to the relevant equity pledge agreements, the equity holders of the VIEs have pledged all of their interests in the equity of the VIEs as a continuing first priority security interest in favor of the corresponding WFOEs to secure the outstanding amounts advanced under the relevant loan agreements described above and to secure the performance of obligations by the VIEs and/or the equity holders under the other structure contracts. Each WFOE is entitled to exercise its right to dispose of the pledged interests in the equity of the VIE held by the equity holders and has priority in receiving payment by the application of proceeds from the auction or sale of the pledged interests, in the event of any breach or default under the loan agreement or other structure contracts, if applicable. These equity pledge agreements remain in force until the later of (i) the full performance of the contractual arrangements by the relevant parties, and (ii) the full repayment of the loans made to the equity holders of the VIEs . (ii) Exclusive technology services agreements or exclusive services agreements Each relevant VIE has entered into an exclusive technology services agreement or an exclusive services agreement with the respective WFOE, pursuant to which the relevant WFOE provides exclusive services to the VIE. In exchange, the VIE pays a service fee to the WFOE, the amount of which shall be determined, to the extent permitted by applicable PRC laws as proposed by the WFOE, resulting in a transfer of substantially all of the profits from the VIE to the WFOE. Other arrangements The exclusive call option agreements described above also entitle the WFOEs to all profits, distributions or dividends (after deduction of relevant tax expenses) to be received by the VIEs, and the following amounts, to the extent in excess of the original registered capital that they contributed to the VIEs (after deduction of relevant tax expenses) to be received by each equity holder of the VIEs : (i) proceeds from the transfer of its equity interests in the VIEs, (ii) proceeds received in connection with a capital decease in the VIEs, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIEs upon termination or liquidation. Based on these contractual agreements, the Company believes that the PRC domestic companies as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company is the primary beneficiary of these PRC domestic companies, the Company believes that these VIEs should be consolidated based on the structure as described above. The following financial information of the VIEs in the PRC was recorded in the accompanying consolidated financial statements: As of March 31, 2018 2019 (in millions of RMB) Cash and cash equivalents and short-term investments 7,507 15,019 Investments in equity investees and investment securities 26,611 28,230 Accounts receivable, net of allowance 5,733 9,540 Amounts due from non-VIE subsidiaries of the Company 1,949 6,398 Prepayment for licensed copyrights 1,736 2,633 Property and equipment and intangible assets 6,788 6,161 Others 4,139 5,992 Total assets 54,463 73,973 Amounts due to non-VIE subsidiaries of the Company 41,090 60,273 Accruals for purchase of licensed copyrights 3,686 3,498 Accrued expenses, accounts payable and other liabilities 10,931 14,594 Deferred revenue and customer advances 4,997 7,213 Deferred tax liabilities 995 448 Total liabilities 61,699 86,026 Year ended March 31, 2017 2018 2019 (in millions of RMB) Revenue (i) 24,712 32,898 66,674 Net loss (4,688) (6,167) (7,063) Net cash provided by operating activities 3,220 5,547 4,163 Net cash used in investing activities (2,557) (20,366) (8,503) Net cash provided by financing activities 2,688 14,286 12,373 (i) Revenue generated by the VIEs are primarily from cloud computing services, digital media and entertainment services, local consumer services and others. The VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 21 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves. As all VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by its VIEs, the Company has provided and will continue to provide financial support to the VIEs considering the business requirements of the VIEs, as well as the Company's own business objectives in the future . Unrecognized revenue-producing assets held by the VIEs include certain Internet content provision and other licenses, domain names and trademarks. The Internet content provision and other licenses are required under relevant PRC laws, rules and regulations for the operation of Internet businesses in the PRC, and therefore are integral to the Company’s operations. The Internet content provision licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. (d) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers, liabilities incurred by the Company and equity instruments issued by the Company. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent to the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any further adjustments are recorded in the consolidated income statements. In a business combination achieved in stages, the Company re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated income statements. When there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company accretes changes in the redemption value over the period from the date that it becomes probable that the mezzanine equity will become redeemable to the earliest redemption date using the effective interest method. Consolidated net income in the consolidated income statements includes net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net loss attributable to mezzanine equity holders is included in net loss attributable to noncontrolling interests in the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. During the years ended March 31, 2017, 2018 and 2019, net loss attributable to mezzanine equity holders amounted to RMB1,961 million, RMB930 million and RMB438 million, respectively. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests on the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. (e) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. The Company had four operating and reportable segments during the periods presented as set out in Notes 1 and 25. (f) Foreign currency translation The functional currency of the Company is US$. The Company’s subsidiaries with operations in the PRC, Hong Kong, the United States and other jurisdictions generally use their respective local currencies as their functional currencies. The reporting currency of the Company is RMB as the major operations of the Company are within the PRC. The financial statements of the Company’s subsidiaries, other than the subsidiaries with the functional currency of RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated income statements during the year in which they occur. (g) Revenue recognition In April 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)," including related amendments and implementation guidance within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, including ASU 2014-09, “ASC 606”), issued by the Financial Accounting Standards Board (“FASB”). ASC 606 supersedes the revenue recognition requirements in ASC 605 and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606 beginning on April 1, 2018 using the modified retrospective method applied to those contracts with the customers which were not completed as of April 1, 2018. Results for reporting periods beginning on April 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with ASC 605. The impact of adopting the new revenue standard was not material to the consolidated financial statements and there was no adjustment to the beginning retained earnings on April 1, 2018. Revenue is principally comprised of customer management revenue, commissions on transactions, membership fees, logistics services revenue, cloud computing services revenue, sales of goods and other revenue. Revenue represents the amount of consideration the Company is entitled to upon the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). Consistent with the criteria of ASC 606 "Revenue from Contracts with Customers," the Company recognizes revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, the Company also considers the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership and (v) acceptance of the good or service. For performance obligations satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of a performance obligation. For revenue arrangements with multiple distinct performance obligations, each distinct performance obligation is separately accounted for and the total consideration is allocated to each performance obligation based on the relative standalone selling price at contract inception. Revenue arrangements with multiple distinct performance obligations, such as the sale of membership packages and customer management services on wholesale marketplaces and Youku’s platforms, are not significant to the Company’s total revenue. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis. When services are exchanged or swapped for other services, revenue is recognized based on the estimated standalone selling price of services promised to customer if the fair value of the services received cannot be reasonably estimated. The amount of revenue recognized for barter transactions was not material for each of the periods presented. Practical expedients and exemptions The Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less and contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The Company does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a result, the Company applies the practical expedient and does not adjust any of the transaction price for the time value of money. Revenue recognition policies by type are as follows: (i) Within the core commerce segment, the Company provides the following customer management services to merchants on the Company’s retail and wholesale marketplaces and certain third-party marketing affiliates’ websites: Pay for performance (“P4P”) marketing services P4P marketing services allow merchants to bid for keywords that match product or service listings appearing in search or browser results on the Company’s marketplaces. Merchants bid for keywords through an online bidding system. The positioning of the listings and the price for the positioning are determined through an online auction system, which facilitates price discovery through a market-based mechanism. In general, merchants prepay for P4P marketing services and the related revenue is recognized when a user clicks their product or service listings as this is the point of time when the merchants benefit from the marketing services rendered. Display marketing services Display marketing services allow merchants to place advertisements on the Company’s marketplaces, at fixed prices or prices established by a real-time bidding system and in particular formats. In general, merchants need to prepay for display marketing which is accounted for as customer advances and revenue is recognized either ratably over the period in which the advertisement is displayed as the merchants simultaneously consume the benefits as the advertisement is displayed or when an advertisement is viewed by users, depending on the type of marketing services selected by the merchants. The Company also places P4P marketing services content and display marketing content through the third-party marketing affiliate program. A substantial portion of customer management revenue generated through the third-party marketing affiliate program represented P4P marketing services revenue. In delivery of these customer management services, the Company, through the third-party marketing affiliate program, places the P4P marketing services content of the participating merchants on third-party online resources in the forms of picture or text links through contextual relevance technology to match merchants’ marketing content to the textual content of the third-party online resources and the users’ attributes based on the Company’s systems and algorithms. When the links on third-party online resources are clicked, users are diverted to a landing page of the Company’s marketplaces where listings of the participating merchant as well as similar products or services of other merchants are presented. In limited cases, the Company may embed a search box for one of its marketplaces on the third-party online resources, and when a keyword is input into the search box, the user will be diverted to the Company’s marketplaces where search results are presented. Revenue is recognized when the users further click on the P4P marketing content on the landing pages. The Company places display marketing content on third-party online resources in a similar manner. In general, merchants need to prepay for display marketing which is accounted for as customer advances and revenue is recognized ratably over the period in which the advertisement is displayed as merchants simultaneously consume the benefits as the advertisement is displayed. P4P marketing services revenue as well as display marketing revenue generated on the Company’s marketplaces or through the third-party marketing affiliate program are recorded on a gross basis when the Company is the principal to the merchants in the arrangements. For third-party marketing affiliates with whom the Company has an arrangement to share the revenue, traffic acquisition cost is also recognized at the same time if the P4P marketing content on the landing page clicked by the users is from merchants participating in the third-party marketing affiliate program. Taobaoke services In addition, the Company offers the Taobaoke program which generates commissions from merchants for transactions completed by consumers sourced from certain third-party marketing affiliates’ websites and mobile apps. The commission rates on Taobaoke are set by the merchants. The Company’s portion of commission revenue is recognized at the time when the underlying transaction is completed and is recorded on a net basis principally because the Company is not the principal as it does not have latitude in establishing prices or does not have inventory risk. In certain occasions where the Company is the principal of the arrangement (such as arrangements where the Company is obligated to pay for website inventory costs in fixed amounts to third-party marketing affiliates regardless of whether commission revenue is generated from these marketing affiliates), the commission revenue is recorded on a gross basis. Within the digital media and entertainment segment, the Company offers P4P marketing services to merchants and marketers on websites and mobile media operated by UCWeb. Revenue is recognized when a user clicks their product or service listings as this is the point of time when the merchants benefit from the marketing services rendered. In addition, marketers can also place advertisements on websites and mobile media operated by UCWeb and Youku’s platforms in different formats, including video, banners, links, logos and buttons. Revenue is recognized ratably over the period in which the advertisement is displayed as the merchants simultaneously consume the benefits as the advertisement is displayed or when an advertisement is clicked or viewed by users, depending on the type of marketing services selected by the merchants. (ii) The Company earns commissions from merchants when transactions are completed on Tmall and certain other retail marketplaces of the Company. The commissions are generally determined as a percentage based on the value of merchandise being sold by the merchants. The commission revenue includes merchant deposits that are expected to be non-refundable and is accounted for as variable consideration (Note 2(ad)). The variable consideration is estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Revenue related to commissions is recognized in the consolidated income statements based on the expected value when the performance obligation is satisfied. Changes to the estimated variable consideration were not material for each of the periods presented. (iii) The Company earns membership fees revenue from wholesale sellers in respect of the sale of membership packages and subscriptions that allow them to host premium storefronts on the Company’s wholesale marketplaces, as well as the provision of other value-added services, and from customers in respect of the sale of membership packages which allow them to access premium content on Youku’s paid content platforms. These service fees are paid in advance for a specific contracted service period. All these fees are initially deferred as deferred revenue and customer advances when received and revenue is recognized ratably over the term of the respective service contracts as the services are provided. (iv) The Company earns logistics services revenue from domestic and international one-stop-shop logistics services and the supply chain management solutions provided by Cainiao Network as well as on-demand delivery services provided by Ele.me. Revenue is recognized at the time when the logistics services are provided. (v) The Company earns cloud computing services revenue from the provision of services such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, and machine learning platform and IoT services. These cloud computing services allow customers to use hosted software over the contract period without taking possession of the sof |
Recent accounting pronouncement
Recent accounting pronouncements | 12 Months Ended |
Mar. 31, 2019 | |
Recent accounting pronouncements | |
Recent accounting pronouncements | 3. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" and issued certain transitional guidance and subsequent amendments between January 2018 and March 2019 within ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, including ASU 2016-02, "ASC 842"). ASU 2016-02 creates a new topic in ASC 842 "Leases" to replace the current topic in ASC 840 "Leases," which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the consolidated balance sheets and disclosing key information about leasing arrangements. ASC 842 affects both lessees and lessors, although for the latter the provisions are similar to the current model, but are updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASC 606. The new guidance is effective for the Company for the year ending March 31, 2020 and interim reporting periods during the year ending March 31, 2020. The Company adopted the new guidance beginning on April 1, 2019 using the modified retrospective method and no adjustments will be made to the comparative periods. As permitted under the transition guidance, the Company will carry forward the assessment of whether the contracts contain or are leases, classification of the leases and remaining lease terms. Based on the Company’s portfolio of leases as of March 31, 2019, approximately RMB24.9 billion of right-of-use assets and RMB19.4 billion of liabilities, primarily relating to property leases, will be recognized on the Company’s consolidated balance sheet upon adoption. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments — Credit Losses (Topic 326): Measurement on Credit Losses on Financial Instruments," and issued subsequent amendments to the initial guidance and transitional guidance between November 2018 and May 2019 within ASU 2018-19, ASU 2019-04 and ASU 2019-05. ASU 2016-13 introduces new guidance for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade and other receivables, held-to-maturity debt securities, loans and net investments in leases. The new guidance also modifies the impairment model for available-for-sale debt securities and requires entities to determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Further, the new guidance indicates that entities may not use the length of time a security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. The new guidance is effective for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted for the Company for the year ending March 31, 2020 and interim reporting periods during the year ending March 31, 2020. The Company is evaluating the effects, if any, of the adoption of this guidance on the Company’s financial position, results of operations and cash flows. In January 2017, the FASB issued ASU 2017-04, "Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test. Step two of the goodwill impairment test measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with its carrying amount. The new guidance is effective prospectively for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the effects, if any, of the adoption of this guidance on the Company’s financial position, results of operations and cash flows. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," and issued subsequent amendments to the initial guidance or transitional guidance within ASU 2019-04 in April 2019. ASU 2017-12 simplifies the application of hedge accounting and makes more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. The new guidance permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test after the initial qualification, if the company can reasonably support an expectation of high effectiveness throughout the term of the hedge. Also, for cash flow hedges and net investment hedges, if the hedge is highly effective, all changes in the fair value of the derivative hedging instrument will be recorded in other comprehensive income. The Company adopted the new guidance prospectively beginning on April 1, 2019. At this time, the Company does not expect that the adoption of this guidance will have a material impact on the Company’s financial position, results of operations and cash flows. In June 2018, the FASB issued ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The Company adopted the new guidance beginning on April 1, 2019. The adoption of this guidance will impact the accounting of the share-based awards granted to non-employees but the Company does not expect that the adoption of this guidance will have a material impact on the Company’s financial position, results of operations and cash flows. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. The new guidance is effective for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted for the adoption of either the entire ASU or only the provisions that eliminate or modify the requirements. The Company is evaluating the effects, if any, of the adoption of this guidance on the fair value disclosure in the consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities,” which provides guidance that indirect interests held through related parties under common control will be considered on a proportional basis when determining whether fees paid to decision makers and service providers are variable interests. These indirect interests were previously treated the same as direct interests. The consideration of indirect interests on a proportional basis is consistent with how indirect interests held through related parties under common control are treated when determining if a reporting entity within a related party group is the primary beneficiary of a VIE. The new guidance is effective retrospectively for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021 with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Early adoption is permitted. The Company is evaluating the effects, if any, of the adoption of this guidance on the Company’s financial position, results of operations and cash flows. In November 2018, the FASB issued ASU 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.” ASU 2018-18 clarifies that elements of collaborative arrangements could qualify as transactions with customers in the scope of ASC 606. The amendments require the application of existing guidance to determine the units of account in collaborative arrangement for purposes of identifying transactions with customers. For transactions outside the scope of ASC 606, companies can apply elements of ASC 606 or other relevant guidance by analogy, or apply a reasonable accounting policy if there is no appropriate analogy. ASU 2018-18 is effective retrospectively for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted. The Company is evaluating the effects, if any, of the adoption of this guidance on the Company’s financial position, results of operations and cash flows. In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment— Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)”. This guidance aligns the accounting guidance for production costs for (1) films and (2) episodic content produced for television series and streaming services. This new guidance also clarifies when a company should test films and license agreements for program material for impairment at the film-group level, amends the presentation and disclosure requirements for produced or licensed content and addresses statement of cash flows classification for license arrangements. The new guidance is effective prospectively for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted. The Company is evaluating the effects, if any, of the adoption of this guidance on the Company’s financial position, results of operations and cash flows. In April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments." Apart from the amendments to ASU 2016-13 and ASU 2017-12 mentioned above, the ASU also included subsequent amendments to ASU 2016-01, which the Company adopted in April 2018 (Note 2(t)). The guidance in relation to the amendments to ASU 2016-01 is effective for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted. The Company is evaluating the effects, if any, of the adoption of these guidance on the Company's financial position, results of operations and cash flows. |
Significant restructuring trans
Significant restructuring transaction, mergers and acquisitions and investments | 12 Months Ended |
Mar. 31, 2019 | |
Significant restructuring transaction, mergers and acquisitions and investments | |
Significant restructuring transaction, mergers and acquisitions and investments | 4. Significant restructuring transaction, mergers and acquisitions and investments Restructuring transaction (a) 2014 restructuring of the relationship with Ant Financial and Alipay and 2018 amendments In August 2014, the Company entered into a share and asset purchase agreement (the “2014 SAPA”), and entered into or amended certain ancillary agreements including an amendment and restatement of the intellectual property license agreement with Alipay (the “2014 IPLA”). Pursuant to these agreements, the Company restructured its relationships with Ant Financial and Alipay. As of August 2014, the fair value of the restructured arrangement exceeded the fair value of the pre-existing arrangement with Ant Financial by RMB1.3 billion. As Ant Financial was controlled by a director and major shareholder of the Company, the excess value provided to the Company in this related party transaction was accounted for as an equity contribution by the shareholder in the statement of changes in shareholders’ equity. Given the nature of this transaction, the corresponding asset representing the excess value receivable by the Company was accounted for as a restructuring reserve in equity and amortized as an expense in the consolidated income statements over the expected term of the restructured arrangement which is estimated to be five years. The amortization of the excess value of RMB264 million, RMB264 million and RMB264 million were recorded in other income, net in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively (Note 6). In February 2018, the Company amended both the 2014 SAPA (the amended version of which is referred to as the “2018 SAPA”) and the Alipay commercial agreement, and agreed with Ant Financial and certain other parties on forms of certain ancillary agreements, including an amendment and restatement of the 2014 IPLA (“the 2018 IPLA”). The 2018 SAPA and amendment to the Alipay commercial agreement were entered into to facilitate the planned acquisition of a 33% equity interest in Ant Financial, and the forms of certain ancillary agreements will be entered into and/or become effective upon the closing of the acquisition of this equity interest. Apart from the amended provisions described below, the key terms of the agreements with Ant Financial and Alipay from the 2014 restructuring remain substantially unchanged. 2014 SAPA and 2018 SAPA Sale of SME loan business and certain other assets Pursuant to the 2014 SAPA, the Company agreed to sell certain securities and assets primarily relating to the SME loan business and other related services to Ant Financial for an aggregate cash consideration of RMB3,219 million. The sale was completed in February 2015. In addition, pursuant to software system use and service agreements relating to the know-how and related intellectual property that we agreed to sell together with the SME loan business and related services, the Company will receive annual fees (the “SME Annual Fee”) for a term of seven years. These SME Annual Fees, which are recognized as other revenue, are determined as follows: for calendar years 2015 to 2017, the entities operating the SME loan business paid an annual fee equal to 2.5% of the average daily balance of the SME loans provided by these entities, and in calendar years 2018 to 2021, these entities will pay an annual fee equal to the amount of the fees paid in calendar year 2017. The Company accounts for the SME Annual Fee in the periods when the services are provided, where the payments are expected to approximate the estimated fair values of the services provided. The SME Annual Fee of RMB847 million, RMB956 million and RMB954 million were recorded in revenue in the consolidated financial statements for the years ended March 31, 2017, 2018 and 2019, respectively (Note 21). Planned issuance of equity interest Pursuant to the 2014 SAPA, the Company is entitled to receive up to 33% equity interest in Ant Financial under certain circumstances. To facilitate the acquisition of equity interest in Ant Financial contemplated under the 2014 SAPA, the 2018 SAPA provides that Ant Financial will issue new securities to the Company representing a 33% equity interest in Ant Financial, subject to the receipt of the necessary PRC regulatory approvals and the satisfaction of other conditions set forth in the 2018 SAPA. Under the 2014 SAPA and the 2018 SAPA, the consideration to acquire the 33% equity interest in Ant Financial will be fully funded by payments from Ant Financial and its subsidiaries to the Company in consideration for certain intellectual property and assets that the Company will transfer upon the issuance of the equity interest. The consideration is determined based on the fair value of the underlying assets. The Company currently estimates the total consideration for the acquisition of the 33% equity interest in Ant Financial will be approximately RMB12.2 billion before deducting expenses in connection with the transfers and share subscription. The large majority of the intellectual property and assets to be transferred as part of these arrangements was previously planned to be transferred to Ant Financial pursuant to the 2014 SAPA. Ant Financial may elect to defer certain offshore transfer payments, in which case the Company’s obligations to pay corresponding consideration for the equity issuance will also be deferred. If the Company has made all its outstanding equity issuance consideration payments at a time when Ant Financial has not made all corresponding transfer payments to the Company, Ant Financial or its subsidiaries will issue interest-bearing promissory notes to the Company. In any event, Ant Financial must complete all outstanding transfer payments to the Company, by the earlier of (i) the first anniversary of an Ant Financial IPO meeting certain minimum criteria for a qualified IPO set forth in the 2018 SAPA (a “Qualified IPO”), and (ii) the fifth anniversary of the issuance of the equity interest. Upon the issuance of the equity interest, the Company will enter into the 2018 IPLA and the Profit Share Payments under the 2014 IPLA will automatically terminate. Removal of liquidity event payment obligation Under the 2014 SAPA, in the event of a qualified IPO of Ant Financial or Alipay, if the Company had not acquired equity interest in Ant Financial prior to the closing of such IPO, the Company was entitled, at its election, to receive a one-time liquidity event payment equal to 37.5% of the equity value, immediately prior to the qualified IPO. If the Company had acquired the equity interest in Ant Financial, but in an aggregate amount less than 33%, the percentage of Ant Financial’s equity value used to calculate this liquidity event payment would be adjusted proportionately. In lieu of receiving the liquidity event payment, the Company could instead elect to receive the Profit Share Payments under the 2014 IPLA described below in perpetuity, subject to the receipt of regulatory approvals. If the Company so elected, in connection with the qualified IPO, Ant Financial would have been required to use its commercially reasonable efforts to obtain these regulatory approvals. If these approvals were not obtained, then Ant Financial would have been obligated to pay the Company the liquidity event payment described above. The 2018 SAPA no longer provides for this liquidity event payment, as the Company has agreed to acquire the entire 33% equity interest in Ant Financial upon the equity issuance. Regulatory unwind and long-stop date The 2018 SAPA provides that, if a relevant governmental authority prohibits the Company from owning all or a portion of its equity interest in Ant Financial after the equity issuance has occurred through enactment of a law, rule or regulation, or explicitly requires Ant Financial to redeem this equity interest, and the prohibition or request is not subject to appeal and cannot otherwise be resolved, then to the extent necessary, Ant Financial will redeem the equity interest; the related intellectual property and asset transfers, and ancillary transactions under the 2018 SAPA will be unwound; and the terms of the 2014 SAPA, the 2014 IPLA, and other related agreements will be restored, including the prior Profit Share Payments and liquidity event payment terms discussed above. If there is a partial unwind where the Company retains a portion of its equity interest in Ant Financial, but less than the full 33%, then pursuant to the terms of the 2014 SAPA and the 2014 IPLA, the prior Profit Share Payments arrangement and liquidity event payment amount will be proportionately reduced based on the amount of equity interest retained by the Company. Similarly, if a governmental authority prohibits the equity issuance through enactment of a law, rule or regulation, and the prohibition is not subject to appeal and cannot otherwise be resolved, or if the equity issuance has not occurred by the first anniversary of the establishment of a PRC subsidiary to acquire the relevant equity interest, which time period may be extended in certain circumstances, then the 2018 SAPA and related agreements will terminate, and the 2014 SAPA and other related agreements will come back into effect. Pre-emptive rights As was the case under the 2014 SAPA, under the 2018 SAPA, following the receipt of equity interest in Ant Financial, the Company will have pre-emptive rights to participate in other issuances of equity securities by Ant Financial and certain of its affiliates prior to the time of a Qualified IPO of Ant Financial. These pre-emptive rights entitle the Company to maintain the equity ownership percentage the Company held in Ant Financial immediately prior to any such issuances. In connection with the exercise of the pre-emptive rights the Company is also entitled to receive certain payments from Ant Financial, effectively funding the subscription for these additional equity interest, up to a value of US$1.5 billion, subject to certain adjustments. In addition, under the 2018 SAPA, in certain circumstances the Company is permitted to exercise pre-emptive rights through an alternative arrangement which will further protect the Company from dilution. Corporate governance provisions Under the 2018 SAPA, upon the issuance of the equity interest, in addition to an independent director, the Company will have the right to nominate two officers or employees of the Company for election to the board of Ant Financial. In each case, these director nomination rights will continue unless required to be terminated by applicable laws and regulations or listing rules in connection with an Ant Financial Qualified IPO process or the Company ceases to own a certain amount of its post-issuance equity interests in Ant Financial. In connection with the 2018 SAPA, the Company also agreed on the form of the 2018 IPLA, agreed to certain revisions to the previously-agreed form of cross license agreement, and agreed on new forms of various intellectual property transfer agreements to be entered into in connection with, and to implement, the contemplated intellectual property and asset transfers. 2014 IPLA and 2018 IPLA 2014 IPLA Under the 2014 IPLA, the Company receives, in addition to a software technology service fee, royalty streams related to Alipay and other current and future businesses of Ant Financial (collectively, the “Profit Share Payments”). The Profit Share Payments are paid at least annually and equal the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Financial, subject to certain adjustments. The expense reimbursement represents the Income in connection with the Profit Share Payments, net of costs incurred by the Company, of RMB2,086 million, RMB3,444 million and RMB517 million, was recorded in other income, net in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively (Notes 6 and 21). 2018 IPLA Pursuant to the 2018 SAPA, the Company, Ant Financial and Alipay agreed to enter into the 2018 IPLA upon the closing of the planned acquisition of a 33% equity interest in Ant Financial, at which time the Company will also transfer certain intellectual property and assets to Ant Financial and its subsidiaries and the current arrangement of Profit Share Payments will immediately terminate. The 2018 IPLA will terminate upon the earliest of: · the full payment of all pre-emptive rights funded payments under the 2018 SAPA; · the closing of a Qualified IPO of Ant Financial or Alipay; and · the transfer to Ant Financial of intellectual property the Company owns that is exclusively related to the business of Ant Financial. The 2018 amendments are effective subject to the receipt of the necessary PRC regulatory approvals and the satisfaction of other conditions set forth in the 2018 SAPA. Mergers and acquisitions (b) Acquisition of Alibaba Pictures Group Limited (“Alibaba Pictures”) Alibaba Pictures, a company that is listed on the Hong Kong Stock Exchange (“HKSE”), is an Internet-driven integrated platform that covers content production, promotion and distribution, IP licensing and integrated management, cinema ticketing management and data services for the entertainment industry. In June 2014, the Company initially acquired a controlling equity interest in Alibaba Pictures. In June 2015, following a financing transaction that diluted the Company’s shareholding from a controlling interest to a minority investment, the Company deconsolidated the financial results of Alibaba Pictures and accounted for the investment in the remaining equity interest under the equity method. A gain of RMB24,734 million arising from the revaluation of the Company’s remaining equity interest was recognized in the consolidated income statement for the year ended March 31, 2016. In December 2017, the Company determined that the decline in the market value against the carrying value of this investment was other-than-temporary and an impairment charge of RMB18,116 million was recorded in share of results of equity investees in the consolidated income statement for the year ended March 31, 2018 (Note 13). In March 2019, the Company subscribed for newly issued ordinary shares of Alibaba Pictures for a cash consideration of Hong Kong Dollar (“HK$”)1,250 million (RMB1,069 million). Upon the completion of the transaction, the Company’s equity interest in Alibaba Pictures increased from approximately 49% to approximately 51%, and Alibaba Pictures became a consolidated subsidiary of the Company. The allocation of the purchase price as of the date of acquisition is summarized as follows: Amounts (in millions of RMB) Net assets acquired (i) 11,032 Amortizable intangible assets (ii) User base and customer relationships 2,269 License 934 Developed technology and patents 533 Trade names, trademarks and domain names 221 Goodwill 20,052 Deferred tax liabilities (844) Noncontrolling interests (iii) (16,899) Total 17,298 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 1,069 - fair value of previously held equity interests 16,229 Total 17,298 (i) Net assets acquired primarily included cash, cash equivalents and short-term investments of RMB4,444 million and investment securities of RMB4,365 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 15 years and a weighted-average amortization period of 11.3 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the market price per share as of the acquisition date. A gain of RMB5,825 million in relation to the revaluation of the previously held equity interests was recorded in interest and investment income, net in the consolidated income statement for the year ended March 31, 2019. The fair value of the previously held equity interests was estimated with reference to the market price per share as of the acquisition date. The Company expected greater integration and synergies between Alibaba Pictures and the Company’s related businesses on both content production and distribution to deliver high-quality entertainment experiences for consumers in the PRC. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Alibaba Pictures and the Company, the assembled workforce and their knowledge and experience in the digital media and entertainment sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. (c) Acquisitions and integration of Rajax Holding (“Ele.me”) and Koubei Holding Limited (“Koubei”) Ele.me Ele.me is a leading on-demand delivery and local services platform in the PRC. In March 2016, the Company and Ant Financial completed a portion of the subscription for newly issued preferred shares in Ele.me through a joint investment vehicle, based on a total combined commitment of US$1,250 million, of which the Company’s total commitment was US$900 million (RMB5,891 million). The Company paid a cash consideration of US$540 million (RMB3,512 million) for the initial subscription in March 2016, and the remaining committed balance of US$360 million (RMB2,394 million) was settled in cash in August 2016. After the initial subscription, the effective equity interest in Ele.me held by the Company was approximately 20% on a fully diluted basis. In April and August 2017, the joint investment vehicle completed additional investments in newly issued preferred shares in Ele.me for a total investment amount of US$1,200 million (RMB8,090 million), of which the Company’s investment was US$864 million (RMB5,824 million). As a result, the Company’s effective equity interest in Ele.me increased to approximately 27% on a fully diluted basis. The investment was accounted for under the cost method (Note 13) for the years ended March 31, 2017 and 2018. Upon the adoption of ASU 2016-01, the investment is accounted for using the measurement alternative (Note 11). In May 2018, the joint investment vehicle completed the acquisition of all outstanding shares of Ele.me that it did not already own at a consideration of US$5,482 million (RMB34,923 million). Upon the completion of the acquisition, Ele.me became a consolidated subsidiary of the Company. The allocation of the purchase price as of the date of acquisition is summarized as follows: Amounts (in millions of RMB) Net liabilities assumed (i) (6,327) Amortizable intangible assets (ii) User base and customer relationships 13,702 Trade names, trademarks and domain names 5,764 Non-compete agreements 4,188 Developed technology and patents 1,415 Goodwill 34,572 Deferred tax liabilities (481) Noncontrolling interests (iii) (5,015) Total 47,818 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 30,133 ‑ contingent cash consideration (iv) 4,790 ‑ fair value of previously held equity interests 12,895 Total 47,818 (i) Net liabilities assumed primarily included payables to merchants and other logistics providers of RMB4,259 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding ten years and a weighted-average amortization period of 5.8 years. (iii) Fair value of the noncontrolling interests was estimated based on the equity value of Ele.me derived by the purchase consideration, adjusted for a discount for control premium. (iv) The amount is payable contingent upon the satisfaction of certain non-compete provisions by the respective selling equity holders, and will not exceed RMB4,790 million. A gain of RMB1,657 million in relation to the revaluation of the previously held equity interests was recorded in interest and investment income, net in the consolidated income statement for the year ended March 31, 2019. The fair value of the previously held equity interests was estimated based on the equity value of Ele.me derived by the purchase consideration, adjusted for a discount for control premium. The Company expected that the acquisition will deepen Ele.me’s integration into the Company’s digital economy and advance the Company’s New Retail strategy to provide a seamless online and offline consumer experience in the local consumer services sector. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Ele.me and the Company, the assembled workforce and their knowledge and experience in the local consumer services sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. Koubei Koubei is one of the PRC's leading restaurant and local services guide platforms for in-store consumption. In 2015, the Company and Ant Financial set up Koubei, a joint venture in which the Company and Ant Financial each held a 49.6% equity interest, while an unrelated third party affiliated with a major Chinese establishment held the remaining minority equity interests. The capital injection from the Company included cash of RMB3.0 billion as well as the injection of certain related businesses. The injection of cash and businesses was completed as of March 31, 2017. A gain of RMB128 million, approximating the fair value of the businesses being injected, was recognized in relation to the contribution of the businesses in interest and investment income, net in the consolidated income statement for the year ended March 31, 2017. The investment was accounted for under the equity method (Note 13). In January 2017, Koubei issued preferred equity interests to unrelated third parties, and the Company’s equity interest in Koubei was diluted to approximately 38% on a fully diluted basis. Integration of Ele.me and Koubei In December 2018, the Company completed the integration of Ele.me and Koubei under a newly established holding company and paid a cash consideration of US$465 million (RMB3,196 million) in connection with the integration. Immediately prior to the integration, the Company held an approximately 90% equity interest in Ele.me and an approximately 38% equity interest in Koubei on a fully diluted basis. Upon the completion of the integration, the Company held an approximately 72% equity interest in this new holding company (“Local Services Holdco”) which owns substantially all of the equity interest in Ele.me and Koubei, resulting in an effective controlling equity interest held by the Company in each of Ele.me and Koubei. Upon the completion of the integration, the Company’s effective equity interest in Ele.me decreased, resulting in an increase in noncontrolling interests and additional paid-in capital amounting to RMB6,715 million and RMB7,515 million, respectively. Upon the completion of the integration, Koubei became a consolidated subsidiary of the Company. The allocation of the purchase price as of the date of acquisition of Koubei is summarized as follows: Amounts (in millions of RMB) Net assets acquired (i) 3,534 Amortizable intangible assets (ii) User base and customer relationships 18,330 Trade names, trademarks and domain names 1,158 Developed technology and patents 322 Goodwill 36,544 Deferred tax liabilities (2,372) Noncontrolling interests (iii) (17,682) Total 39,834 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 3,196 ‑ non-cash consideration 14,648 ‑ fair value of previously held equity interests 21,990 Total 39,834 (i) Net assets acquired primarily included cash and cash equivalents of RMB4,475 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 13 years and a weighted-average amortization period of 6.3 years. (iii) Fair value of the noncontrolling interests as of the acquisition date was estimated based on the purchase price to acquire newly issued preferred shares of Local Services Holdco that was paid by new and existing investors in December 2018, with certain adjustments made to reflect other factors that may affect the fair value estimation. A gain of RMB21,990 million in relation to the revaluation of the previously held equity interests was recorded in interest and investment income, net in the consolidated income statement for the year ended March 31, 2019. The fair value of the previously held equity interests as of the acquisition date was estimated based on the purchase price to acquire newly issued preferred shares of Local Services Holdco that was paid by new and existing investors in December 2018, with certain adjustments made to reflect other factors that may affect the fair value estimation. The Company expected that its commerce platform technology, know-how and infrastructure will deliver consumer insights and digitized operational solutions to empower local merchants on the Koubei platform. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Koubei and the Company, the assembled workforce and their knowledge and experience in the local consumer services sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. Subsequent to the integration, the Company acquired additional equity interest in Local Services Holdco for a cash consideration of US$1,905 million (RMB13,082 million) in December 2018. Other investors, including SoftBank, also acquired equity interests in Local Services Holdco. As a result, noncontrolling interests increased by RMB3,216 million. In May 2019, the Company subscribed for additional equity interest in Local Services Holdco for a cash consideration of US$450 million. (d) Acquisition of DSM Grup Danışmanlık İletişim ve Satış Ticaret A.Ş. (“Trendyol”) Trendyol is one of the leading online fashion retailers in Turkey. In July 2018, the Company acquired an approximately 85% equity interest in Trendyol for a cash consideration of US$728 million (RMB4,980 million). In connection with the transaction, the Company also entered into an agreement with the founders of Trendyol, allowing them to acquire additional equity interests in Trendyol from the Company or sell a portion of their equity interests in Trendyol to the Company in the future. The allocation of the purchase price as of the date of acquisition is summarized as follows: Amounts (in millions of RMB) Net assets acquired (i) 1,009 Amortizable intangible assets (ii) Trade names, trademarks and domain names 660 User base and customer relationships 388 Developed technology and patents 30 Goodwill 3,938 Deferred tax liabilities (228) Noncontrolling interests (iii) (817) Total 4,980 (i) Net assets acquired primarily included cash and cash equivalents of RMB1,206 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 15 years and a weighted-average amortization period of 12.5 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price per share as of the acquisition date, adjusted for a discount for control premium, and includes the fair value of an option granted to the founders of Trendyol to acquire additional interests in Trendyol from the Company as of the date of acquisition. The acquisition of Trendyol underscored the Company’s commitment to international expansion. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Trendyol and the Company, the assembled workforce and their knowledge and experience in e-commerce. The Company did not expect the goodwill recognized to be deductible for income tax purposes. In December 2018, the Company purchased additional equity interests in Trendyol for a cash consideration of US$2 million (RMB16 million). The transaction resulted in a reduction of noncontrolling interests amounting to RMB14 million. Upon the completion of the transaction, the Company’s equity interest in Trendyol remained at approximately 85%. (e) Acquisition of Kaiyuan Commerce Co., Ltd. (“Kaiyuan”) Kaiyuan is one of the leading department store operators in the northwestern part of the PRC. In April 2018, the Company acquired a 100% equity interest in Kaiyuan for a cash consideration of RMB3,362 million. The allocation of the purchase price as of the date of acquisition is summarized as follows: Amounts (in millions of RMB) Net assets acquired (i) 2,750 Amortizable intangible assets (ii) Trade names, trademarks and domain names 203 Goodwill 1,047 Deferred tax liabilities (638) Total 3,362 (i) Net assets acquired primarily included property and equipment of RMB3,458 million and bank borrowings of RMB651 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods of ten years. The Company expected that Kaiyuan will complement the Company’s New Retail initiatives to reengineer the fundamentals of retail operations and transform the retail landscape. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Kaiyuan and the Company, the assembled workforce and their knowledge and experience in the retail business in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. (f) Acquisition of Cainiao Smart Logistics Network Limited (“Cainiao Network”) Cainiao Network operates a logistics data platform which leverages the capacity and capabilities of logistics partners to offer domestic and international one-stop-shop logistics services and supply chain management solutions, fulfilling various logistics needs of merchants and consumers at scale. It uses data insights and technology to improve efficiency across the logistics value chain. The Company previously held an approximately 47% equity interest in Cainiao Network. The investment was accounted for under the equity method. In October 2017, the Company completed the subscription for newly issued ordinary shares of Cainiao Network for a cash consideration of US$803 million (RMB5,322 million). Following the completion of the transaction, the Company’s equity interest in Cainiao Network increased to approximately 51% and Cainiao Network became a consolidated subsidiary of the Company. The allocation of the purchase price as of the date of acquisition is summarized as follows: Amounts (in millions of RMB) Net assets acquired (i) 23,937 Amortizable intangible assets (ii) User base and customer relationships 9,344 Trade names, trademarks and domain names 4,965 Developed technology and patents 459 Goodwill 32,418 Deferred tax assets 920 Deferred tax liabilities (5,197) Noncontrolling interests (iii) (33,189) Total 33,657 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 5,322 ‑ fair value of previously held equity interests 28,335 Total 33,657 (i) Net assets acquired primarily included the cash consideration of RMB5,322 million, property and equipment of RMB15,144 million and bank borrowings of RMB5,288 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 16 years and a weighted-average amortization period of 14.3 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price per share as of the acquisition date. A gain of RMB22,442 million in relation to the revaluation of the previously held equity interests was recorded in interest and investment income, net in the consolidated income statement for the year ended March 31, 2018. The fair value of the previously held equity interests was estimated based on the purchase price per share of Cainiao Network as of the acquisition date. The Company expected that the acquisition of control over Cainiao Network will help enhance the overall logistics experience for consumers and merchants across the Company’s digital economy, and enable greater efficiencies and lower costs in the logistics sector in the PRC. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Cainiao Network and the Company, the assembled workforce and their knowledge and experience in the logistics sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. (g) Acquisition of Intime Retail (Group) Company Limited (“Intime”) Intime is one of the leading department store operators in the PRC that was previously listed on the HKSE. The Company owned a 9.9% equity interest in Intime which w |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue | 5. Revenue Revenue by segment is as follows: Year ended March 31, 2017 (i) 2018 (i) 2019 (in millions of RMB) Core commerce: China commerce retail (ii) - Customer management 77,530 114,285 145,684 - Commission 34,066 46,525 61,847 - Others 2,513 15,749 40,084 114,109 176,559 247,615 China commerce wholesale (iii) 5,679 7,164 9,988 International commerce retail (iv) 7,336 14,216 19,558 International commerce wholesale (v) 6,001 6,625 8,167 Cainiao logistics services (vi) — 6,759 14,885 Local consumer services (vii) — — 18,058 Others 755 2,697 5,129 Total core commerce 133,880 214,020 323,400 Cloud computing (viii) 6,663 13,390 24,702 Digital media and entertainment (ix) 14,733 19,564 24,077 Innovation initiatives and others (x) 2,997 3,292 4,665 Total 158,273 250,266 376,844 (i) Prior period amounts have not been adjusted due to the adoption of ASC 606 under the modified retrospective method (Note 2(g)). (ii) Revenue from China commerce retail is primarily generated from the Company’s China retail marketplaces and includes revenue from customer management, commissions and sales of goods. (iii) Revenue from China commerce wholesale is primarily generated from 1688.com and includes revenue from membership fees and customer management. (iv) Revenue from international commerce retail is primarily generated from Lazada (Note 4(i)) and AliExpress and includes revenue from sales of goods, commissions, logistics services and customer management. (v) Revenue from international commerce wholesale is primarily generated from Alibaba.com and includes membership fees and revenue from customer management. (vi) Revenue from Cainiao logistics services represents revenue from the domestic and cross-border fulfillment services provided by Cainiao Network (Note 4(f)). (vii) Revenue from local consumer services primarily represents revenue from the provision of delivery services and other services provided by Ele.me (Note 4(c)). (viii) Revenue from cloud computing is primarily generated from the provision of services, such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, and machine learning platform and IoT services. (ix) Revenue from digital media and entertainment is primarily generated from Youku (Note 4(h)) and UCWeb and includes revenue from customer management and membership fees. (x) Revenue from innovation initiatives and others is primarily generated from businesses such as Amap and other innovation initiatives. Other revenue also includes the SME Annual Fee received from Ant Financial and its affiliates (Note 4(a)). Revenue by type is as follows: Year ended March 31, 2017 (i) 2018 (i) 2019 (in millions of RMB) Customer management services P4P and display marketing 83,581 119,822 151,654 Other customer management services 5,706 9,076 13,962 Total customer management services 89,287 128,898 165,616 Commission 37,848 52,411 81,086 Membership fees 10,638 13,823 19,139 Logistics services — 6,759 23,397 Cloud computing services 6,663 13,390 24,702 Sales of goods 3,889 18,719 46,942 Other revenue (ii) 9,948 16,266 15,962 Total 158,273 250,266 376,844 (i) Prior period amounts have not been adjusted due to the adoption of ASC 606 under the modified retrospective method (Note 2(g)). (ii) Other revenue includes other value‑added services provided through various platforms and the SME Annual Fee received from Ant Financial and its affiliates (Note 4(a)). The amount of revenue recognized for performance obligations satisfied (or partially satisfied) in prior periods for contracts with expected duration of more than one year during the year ended March 31, 2019 was not material. As permitted under the transitional provision in ASC 606, the amount of revenue recognized for performance obligations satisfied (or partially satisfied) as of March 31, 2018 is not disclosed. |
Other income, net
Other income, net | 12 Months Ended |
Mar. 31, 2019 | |
Other income, net | |
Other income, net | 6. Other income, net Year ended March 31, 2017 2018 2019 (in millions of RMB) Profit Share Payments (Note 4(a)) 2,086 3,444 517 Government grants (i) 451 555 666 Amortization of restructuring reserve (Note 4(a)) (264) (264) (264) Exchange differences 2,328 (1,679) (1,950) Others 1,485 2,104 1,252 Total 6,086 4,160 221 (i) Government grants mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development. |
Income tax expenses
Income tax expenses | 12 Months Ended |
Mar. 31, 2019 | |
Income tax expenses | |
Income tax expenses | 7. Income tax expenses Composition of income tax expenses Year ended March 31, 2017 2018 2019 (in millions of RMB) Current income tax expense 13,495 17,223 18,750 Deferred taxation 281 976 (2,197) 13,776 18,199 16,553 Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. The Company’s subsidiaries incorporated in Hong Kong were subject to the Hong Kong profits tax rate at 16.5% for the years ended March 31, 2017, 2018 and 2019. The Company’s subsidiaries incorporated in other jurisdictions were subject to income tax charges calculated according to the tax laws enacted or substantially enacted in the countries where they operate and generate income. Current income tax expense primarily includes the provision for PRC Enterprise Income Tax (“EIT”) for subsidiaries operating in the PRC and withholding tax on earnings that have been declared for distribution by PRC subsidiaries to offshore holding companies. Substantially all of the Company’s income before income tax and share of results of equity investees are generated by these PRC subsidiaries. These subsidiaries are subject to EIT on their taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant tax laws, rules and regulations in the PRC. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. In addition, the EIT Law provides for, among others, a preferential tax rate of 15% for enterprises qualified as High and New Technology Enterprises. Further, certain subsidiaries were recognized as Software Enterprises and thereby entitled to full exemption from EIT for two years beginning from their first profitable calendar year and a 50% reduction for the subsequent three calendar years. In addition, a duly recognized Key Software Enterprise within China’s national plan can enjoy a preferential EIT rate of 10%. The Key Software Enterprise status is subject to review by the relevant authorities every year. The timing of the annual review and notification by the relevant authorities may vary from year to year, and the related tax adjustments in relation to the change in applicable EIT rate as a result of notification of qualification are accounted for in the period in which the Key Software Enterprise status is recognized and notified. The tax status of the subsidiaries of the Company with major taxable profits is described below: · Alibaba (China) Technology Co., Ltd. (“Alibaba China”) and Taobao (China) Software Co., Ltd. (“Taobao China”), entities primarily engaged in the operations of the Company’s wholesale marketplaces and Taobao Marketplace, respectively, obtained the annual review and notification relating to the renewal of the Key Software Enterprises status for the taxation years of 2015, 2016 and 2017 in the quarters ended September 30, 2016, 2017 and 2018, respectively. Accordingly, Alibaba China and Taobao China, which had qualified as High and New Technology Enterprises and applied an EIT rate of 15% for the taxation years of 2015, 2016 and 2017, reflected the reduction in tax rate to 10% for the taxation years of 2015, 2016 and 2017 in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019. · Zhejiang Tmall Technology Co., Ltd. (“Tmall China”), an entity primarily engaged in the operations of Tmall, was recognized as a High and New Technology Enterprise and also granted the Software Enterprise status and was thereby entitled to an income tax exemption for two years beginning from its first profitable taxation year of 2012, and a 50% reduction for the subsequent three years starting from the taxation year of 2014. Accordingly, Tmall China was entitled to an EIT rate of 12.5% during the taxation years of 2015 and 2016. Tmall China obtained notification of recognition as a Key Software Enterprise for the taxation years of 2016 and 2017 in the quarter ended September 30, 2017 and 2018. Accordingly, Tmall China, which had applied an EIT rate of 12.5% and 15% for the taxation years of 2016 and 2017, respectively, reflected the reduction in tax rate to 10% for the taxation years of 2016 and 2017 in the consolidated income statement for the years ended March 31, 2018 and 2019. The total tax adjustments for Alibaba China, Taobao China, Tmall China and certain other PRC subsidiaries of the Company, amounting to RMB720 million, RMB2,295 million and RMB4,656 million, were recorded in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively. The annual review and notification relating to the renewal of the Key Software Enterprises status for the taxation year of 2018 has not yet been obtained as of March 31, 2019. Accordingly, Alibaba China, Taobao China and Tmall China continued to apply an EIT rate of 15% for the taxation year of 2018 as High and New Technology Enterprises. Most of the remaining PRC entities of the Company are subject to EIT at 25% for the years ended March 31, 2017, 2018 and 2019. Pursuant to the EIT Law, a 10% withholding tax is levied on dividends declared by PRC companies to their foreign investors. A lower withholding tax rate of 5% is applicable if direct foreign investors with at least 25% equity interest in the PRC company are incorporated in Hong Kong and meet the relevant requirements pursuant to the tax arrangement between the PRC and Hong Kong. Since the equity holders of the major PRC subsidiaries of the Company are Hong Kong incorporated companies and meet the relevant requirements pursuant to the tax arrangement between the PRC and Hong Kong, the Company has used 5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As of March 31, 2019, the Company had fully accrued the withholding tax on the earnings distributable by all of the subsidiaries of the Company in the PRC, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB49.7 billion. Composition of deferred tax assets and liabilities As of March 31, 2018 2019 (in millions of RMB) Deferred tax assets Licensed copyrights 1,191 2,475 Tax losses carried forward and others (i) 9,467 21,896 10,658 24,371 Valuation allowance (8,476) (21,838) Total deferred tax assets 2,182 2,533 Deferred tax liabilities Identifiable intangible assets (9,181) (12,659) Withholding tax on undistributed earnings (ii) (8,375) (7,901) Investment securities and others (1,756) (1,957) Total deferred tax liabilities (19,312) (22,517) Net deferred tax liabilities (17,130) (19,984) (i) Others is primarily comprised of property and equipment, deferred revenue and customer advances, as well as accrued expenses which are not deductible until paid under PRC tax laws. (ii) The related deferred tax liabilities as of March 31, 2018 and 2019 were provided on the assumption that 100% of the distributable reserves of the major PRC subsidiaries will be distributed as dividends, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB28.6 billion and RMB49.7 billion, respectively. Valuation allowances provided on the deferred tax assets mainly related to the tax losses carried forward due to the uncertainty surrounding their realization. If events occur in the future that improve the certainty of realization, an adjustment to the valuation allowances will be made and consequently income tax expenses will be reduced. As of March 31, 2019, the accumulated tax losses of subsidiaries incorporated in the United States, Indonesia and Singapore, subject to the agreement of the relevant tax authorities, of RMB3,690 million, RMB3,686 million and RMB3,075 million, respectively, are allowed to be carried forward to offset against future taxable profits. The carry forward of tax losses in the United States and Singapore has no time limit, while the tax losses in Indonesia will expire, if unused, in the years ending March 31, 2020 through 2024. The accumulated tax losses of subsidiaries incorporated in the PRC, subject to the agreement of the PRC tax authorities, of RMB73,148 million as of March 31, 2019 will expire, if unused, in the years ending March 31, 2020 through 2024. Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company: Year ended March 31, 2017 2018 2019 (in millions of RMB, except per share data) Income before income tax and share of result of equity investees 60,029 100,403 96,221 Income tax computed at statutory EIT rate (25%) 15,007 25,101 24,055 Effect of different tax rates available to different jurisdictions (772) 392 (1,568) Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC (10,507) (14,782) (17,687) Non-deductible expenses and non-taxable income, net (i) 6,090 1,780 8,168 Tax savings from additional deductions on certain research and development expenses available for subsidiaries incorporated in the PRC (ii) (1,694) (2,330) (5,774) Withholding tax on the earnings distributed and anticipated to be remitted 3,009 4,393 3,954 Change in valuation allowance, deduction of certain share-based compensation expense and others (iii) 2,643 3,645 5,405 Income tax expenses 13,776 18,199 16,553 Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) 4.21 5.79 6.86 (i) Expenses not deductible for tax purposes and non-taxable income primarily represent investment income (loss), share-based compensation expense, interest expense and exchange differences. Investment income (loss) during the year ended March 31, 2017 includes gains from the revaluation of previously held equity interest relating to the acquisition of Youku (Note 4(h)). Investment income (loss) during the year ended March 31, 2018 includes gains from the revaluation of previously held equity interests relating to the acquisitions of Cainiao Network (Note 4(f)) and Intime (Note 4(g)). Investment income (loss) during the year ended March 31, 2019 includes gains from the revaluation of previously held equity interest relating to the acquisitions of Koubei (Note 4(c)) and Alibaba Pictures (Note 4(b)). (ii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. (iii) This amount primarily represents valuation allowance against the deferred tax assets associated with operating losses, amortization of licensed copyrights and other timing differences which may not be realized as a tax benefit. |
Share-based awards
Share-based awards | 12 Months Ended |
Mar. 31, 2019 | |
Share-based awards | |
Share-based awards | 8. Share-based awards Share-based awards such as RSUs, incentive and non-statutory options, restricted shares, dividend equivalents, share appreciation rights and share payments may be granted to any directors, employees and consultants of the Company or affiliated companies under the equity incentive plan adopted in 2011, which govern the terms of the awards. In September 2014, the Company adopted a post-IPO equity incentive plan (the “2014 Plan”) which has a ten-year term. Share-based awards are only available for issuance under the 2014 Plan. If an award under the previous plan terminates, expires or lapses, or is cancelled for any reason, ordinary shares subject to the award become available for the grant of a new award under the 2014 Plan. Starting from April 1, 2015 and on each anniversary thereof, an additional amount equal to the lesser of (A) 25,000,000 ordinary shares, and (B) such lesser number of ordinary shares as determined by the board of directors will become available for the grant of a new award under the 2014 Plan. All share-based awards granted under the 2014 Plan are subject to dilution protection should the capital structure of the Company be affected by a share split, reverse share split, share dividend or other dilutive action. The 2014 Plan has substantially similar terms as the plan adopted in 2011 except that (i) the 2014 Plan is administered by the compensation committee of the board (or a subcommittee thereof), or such other committee of the board to which the board has delegated power to act, or the board in the absence of any such committee, and (ii) certain terms are adjusted for the purposes of compliance with the Sarbanes-Oxley Act of 2002, U.S. Securities Act of 1933 and the regulations thereunder, as amended from time to time and U.S. Securities Exchange Act of 1934 and the regulations thereunder, as amended from time to time, among others. As of March 31, 2019, the number of shares authorized but unissued was 34,151,552 ordinary shares. RSUs and share options granted are generally subject to a four-year vesting schedule as determined by the administrator of the plans. Depending on the nature and the purpose of the grant, RSUs and share options generally vest 25% or 50% upon the first or second anniversary of the vesting commencement date, respectively, as provided in the grant agreement, and 25% every year thereafter. No outstanding RSUs or share options will be subject to vesting or exercisable after the expiry of a maximum of six years from the date of grant. Certain RSUs and share options granted to the senior management members of the Company are subject to a six-year vesting schedule. No outstanding RSUs or share options will be subject to vesting or exercisable after the expiry of a maximum of eight years from the date of grant. (a) RSUs relating to ordinary shares of the Company A summary of the changes in the RSUs relating to ordinary shares granted by the Company during the year ended March 31, 2019 is as follows: Weighted- average Number grant date of RSUs fair value US$ Awarded and unvested as of April 1, 2018 68,424,858 100.93 Granted 24,863,988 181.74 Vested (24,337,392) 84.31 Cancelled/forfeited (4,604,961) 135.06 Awarded and unvested as of March 31, 2019 64,346,493 136.00 Expected to vest as of March 31, 2019 (i) 53,175,748 134.59 (i) As of March 31, 2018 and 2019, 1,983,785 and 1,878,835 outstanding RSUs were held by non-employees, respectively. These RSUs were subject to re-measurement through each vesting date to determine the appropriate amount of the expense. As of March 31, 2019, there were RMB22,432 million of unamortized compensation costs related to these outstanding RSUs, net of expected forfeitures and after re-measurement applicable to the awards granted to non-employees. These amounts are expected to be recognized over a weighted average period of 1.9 years. During the years ended March 31, 2017, 2018 and 2019, the Company recognized share-based compensation expense of RMB12,322 million, RMB16,165 million and RMB22,137 million, respectively, in connection with the above RSUs, net of cash reimbursement from related companies, including Ant Financial (Note 21). (b) Share options relating to ordinary shares of the Company A summary of the changes in the share options relating to ordinary shares granted by the Company during the year ended March 31, 2019 is as follows: Weighted Weighted average Number average remaining of share exercise contractual options price life US$ (in years) Outstanding as of April 1, 2018 7,938,015 70.10 Exercised (795,809) 45.02 Cancelled/forfeited/expired (25,000) 76.81 Outstanding as of March 31, 2019 7,117,206 72.88 3.7 Vested and exercisable as of March 31, 2019 3,258,039 75.32 3.6 Vested and expected to vest as of March 31, 2019 (i) 7,016,598 72.78 3.7 (i) Share options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding share options. As of March 31, 2018 and 2019, 141,000 and 76,550 outstanding share options were held by non-employees, respectively. These share options were subject to re-measurement through each vesting date to determine the appropriate amount of the expense. As of March 31, 2019, the aggregate intrinsic value of all outstanding options was RMB5,243 million. As of the same date, the aggregate intrinsic value of options that were vested and exercisable and options that were vested and expected to vest is RMB2,347 million and RMB5,173 million, respectively. During the years ended March 31, 2017, 2018 and 2019, the weighted average grant date fair value of share options granted was US$22.89, nil and nil, respectively, and the total grant date fair value of options vested during the same years was RMB348 million, RMB452 million and RMB311 million, respectively. During the same years, the aggregate intrinsic value of share options exercised was RMB1,799 million, RMB1,980 million and RMB708 million, respectively. Cash received from option exercises under the share option plans for the years ended March 31, 2017, 2018 and 2019 was RMB287 million, RMB174 million and RMB220 million, respectively. No share options were granted during the years ended March 31, 2018 and 2019. The fair value of each option grant is estimated on the date of grant using the Black-Scholes model by applying the assumptions below: Year ended March 31, 2017 Risk-free interest rate (i) 1.23% – 1.30% Expected dividend yield (ii) 0% Expected life (years) (iii) 4.38 Expected volatility (iv) 31.7% – 33.2% (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be nil as the Company has no history or expectation of paying a dividend on its ordinary shares. (iii) Expected life of share options is based on the average between the vesting period and the contractual term for each grant. (iv) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. As of March 31, 2019, there were RMB111 million of unamortized compensation costs related to these outstanding share options, net of expected forfeitures and after re-measurement applicable to the awards granted to non-employees. These amounts are expected to be recognized over a weighted average period of 1.5 years. During the years ended March 31, 2017, 2018 and 2019, the Company recognized share-based compensation expense of RMB524 million, RMB270 million and RMB181 million, respectively, in connection with the above share options, net of cash reimbursement from related companies, including Ant Financial (Note 21). (c) Partner Capital Investment Plan relating to ordinary shares of the Company Beginning in 2013, the Company offered selected members of the Alibaba Partnership rights to acquire restricted shares of the Company. For the rights offered before 2016, these rights and the underlying restricted shares were subject to a non-compete provision, and the holders were entitled to purchase restricted shares at a price of US$14.50 per share during a four-year period. Upon the exercise of the rights, the underlying ordinary shares may not be transferred for a period of eight years from the date of subscription of the relevant rights. For the rights offered since 2016, the rights and the underlying restricted shares were subject to certain service provisions that were not related to employment, and holders were entitled to purchase restricted shares at a price between US$23.00 and US$26.00 per share, over a period of ten years from the vesting commencement date. The number of ordinary shares underlying these rights is 18,000,000 shares, of which the rights to subscribe for 17,500,000 shares had been offered and subscribed up to March 31, 2019. The rights offered before 2016 were accounted for as noncontrolling interests of the Company as these rights were issued by the Company’s subsidiaries and classified as equity at the subsidiary level. The rights offered in the subsequent periods were accounted for as share options issued by the Company. As of March 31, 2019, there were RMB941 million of unamortized compensation costs related to these rights, net of expected forfeitures and after re-measurement applicable to the awards granted to non-employees. These amounts are expected to be recognized over a weighted average period of 4.5 years. Share-based compensation expense of RMB241 million, RMB435 million and RMB409 million was recognized in connection with these rights for the years ended March 31, 2017, 2018 and 2019, respectively. The fair value of each right to acquire restricted shares is estimated on the subscription date using the Black-Scholes model by applying the assumptions below: Year ended March 31, 2017 2018 2019 Risk-free interest rate (i) 1.86 % 2.07 % 2.94 % Expected dividend yield (ii) 0 % 0 % 0 % Expected life (years) (iii) 8.25 8.25 8.25 Expected volatility (iv) 39.0 % 34.2 % 33.0 % (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share-based awards in effect at the time of grant. (ii) Expected dividend yield is assumed to be nil as the Company has no history or expectation of paying a dividend on its ordinary shares. (iii) Expected life of the rights is based on management’s estimate on timing of redemption for ordinary shares by the participants. (iv) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to expected life of each right. (d) Share-based awards relating to Ant Financial Since March 2014, Junhan, the general partner of which is a company wholly-owned by the executive chairman of the Company and a major equity holder of Ant Financial, has made grants of share economic rights similar to share appreciation awards linked to the valuation of Ant Financial (the “SERs”) to certain employees of the Company. Since April 2018, Ant Financial, through its subsidiary, has granted certain RSU awards to certain employees of the Company. The SERs will be settled in cash by Junhan upon disposal of these awards by the holders. The RSU awards may be settled in cash or equity by the Ant Financial subsidiary upon vesting of the awards. Junhan and the Ant Financial subsidiary have the right to repurchase the vested SERs or RSU awards (or any underlying shares of the vested RSU awards) granted by them, as applicable, from the holders upon an initial public offering of Ant Financial or the termination of the holders’ employment with the Company at a price to be determined based on the then fair market value of Ant Financial. These awards are generally subject to a four-year vesting schedule as determined by the administrator of the plan. Depending on the nature and the purpose of the grant, these awards generally vest 25% or 50% upon the first or second anniversary of the vesting commencement date, respectively, as provided in the grant agreement, and 25% every year thereafter. Certain awards granted to the senior management members of the Company are subject to a six-year vesting schedule. The Company has no obligation to reimburse Junhan, Ant Financial or its subsidiaries for the cost associated with these awards. For accounting purposes, these awards meet the definition of a financial derivative. The cost relating to these awards is recognized by the Company and the related expense is recognized over the requisite service period in the consolidated income statements with a corresponding credit to additional paid-in capital. Subsequent changes in the fair value of these awards are recorded in the consolidated income statements. The expenses relating to the SERs are re-measured at the fair value on each reporting date until their settlement dates. The expenses relating to the RSU awards granted by Ant Financial’s subsidiary are re-measured at the fair value on each reporting date until their vesting dates. During the years ended March 31, 2017, 2018 and 2019, the Company recognized expenses of RMB2,188 million, RMB2,278 million and RMB12,855 million in respect of the share-based awards relating to Ant Financial, respectively. (e) Share-based compensation expense by function Year ended March 31, 2017 2018 2019 (in millions of RMB) Cost of revenue 3,893 5,505 8,915 Product development expenses 5,712 7,374 15,378 Sales and marketing expenses 1,772 2,037 4,411 General and administrative expenses 4,618 5,159 8,787 Total 15,995 20,075 37,491 |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings per share | |
Earnings per share | 9. Earnings per share Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, adjusted for treasury shares. For the calculation of diluted earnings per share, net income attributable to ordinary shareholders for basic earnings per share is adjusted by the effect of dilutive securities, including share‑based awards, under the treasury stock method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net income per share if their inclusion is anti‑dilutive. The following table sets forth the computation of basic and diluted net income per share/ADS for the following periods: Year ended March 31, 2017 2018 2019 (in millions of RMB, except share data and per share data) Numerator: Net income attributable to ordinary shareholders for computing net income per ordinary share - basic 43,675 63,985 87,600 Dilution effect arising from share-based awards issued by a subsidiary and equity investees (11) (21) (42) Net income attributable to ordinary shareholders for computing net income per ordinary share - diluted 43,664 63,964 87,558 Shares (denominator): Weighted average number of shares used in calculating net income per ordinary share - basic (million shares) 2,493 2,553 2,580 Adjustments for dilutive RSUs and share options (million shares) 80 57 43 Weighted average number of shares used in calculating net income per ordinary share - diluted (million shares) 2,573 2,610 2,623 Net income per ordinary share/ADS - basic (RMB) 17.52 25.06 33.95 Net income per ordinary share/ADS - diluted (RMB) 16.97 24.51 33.38 |
Restricted cash and escrow rece
Restricted cash and escrow receivables | 12 Months Ended |
Mar. 31, 2019 | |
Restricted cash and escrow receivables | |
Restricted cash and escrow receivables | 10. Restricted cash and escrow receivables As of March 31, 2018 2019 (in millions of RMB) Money received or receivable on escrow services offered by AliExpress (i) 3,171 8,354 Others 246 164 3,417 8,518 (i) The amount represents customer funds held by external payment networks outside the PRC relating to AliExpress with a corresponding liability recorded under escrow money payable. |
Investment securities and fair
Investment securities and fair value disclosure | 12 Months Ended |
Mar. 31, 2019 | |
Investment securities and fair value disclosure | |
Investment securities and fair value disclosure | 11. Investment securities and fair value disclosure As of March 31, 2018 Gross Gross Provision Original unrealized unrealized for decline Carrying cost gains losses in value value (in millions of RMB) Equity securities: Listed equity securities 20,303 10,990 (1,587) (983) 28,723 Equity securities accounted for under the fair value option 498 67 — — 565 Debt investments (i) 13,898 — — (179) 13,719 34,699 11,057 (1,587) (1,162) 43,007 As of March 31, 2019 Gross Gross Provision Original unrealized unrealized for decline Carrying cost gains losses in value value (in millions of RMB) Equity securities: Listed equity securities 57,121 15,968 (11,887) — 61,202 Investments in privately held companies (ii) 81,894 14,107 (78) (13,250) 82,673 Debt investments (i) 23,843 44 (20) (725) 23,142 162,858 30,119 (11,985) (13,975) 167,017 (i) Debt investments include convertible bonds accounted for under the fair value option, for which the fair value as of March 31, 2018 and 2019 were RMB1,256 million and RMB2,742 million, respectively. Unrealized gains recorded on these convertible bonds in the consolidated income statements were nil and RMB44 million during the years ended March 31, 2018 and 2019, respectively. Debt investments also include investments in certain wealth management products amounting to RMB6.9 billion as of March 31, 2018 and 2019. These investments were pledged to a financial institution in the PRC to secure a financing provided by this financial institution amounting to RMB6.9 billion to one of the Company’s founders and an equity holder in certain of the Company’s variable interest entities, to support his minority investment through a PRC limited partnership in Wasu Media Holding Co., Ltd., a company listed on the Shenzhen Stock Exchange. (ii) Upon the adoption of ASU 2016-01, certain investments in privately held companies that were previously accounted for under the cost method with a carrying value of RMB59,942 million as of March 31, 2018 were reclassified into investment securities as of April 1, 2018. Details of the significant additions during the years ended March 31, 2017, 2018 and 2019 are set out in Note 4. For equity securities, a summary of gains and losses, including impairment losses, recognized in interest and investment income, net is as follows: Year ended March 31, 2017 2018 2019 (in millions of RMB) Net unrealized gains recognized during the period for equity securities still held as of the end of the period — Net gains recognized during the period from disposals of equity securities during the period Net gains recognized during the period on equity securities As of March 31, 2018, net unrealized gains of RMB9,403 million on listed equity securities previously classified as available-for-sale were recorded in accumulated other comprehensive income. Upon the adoption of ASU 2016-01, the Company carried these equity securities at fair value with unrealized gains and losses recorded in the consolidated income statements. Unrealized gains and losses recorded in accumulated other comprehensive income as of March 31, 2018 related to those equity securities previously classified as available-for-sale, in the amount of RMB8,196 million, net of tax, were reclassified into retained earnings as of April 1, 2018 (Note 2(t)). For listed equity securities previously classified as available-for-sale with unrealized losses, their related aggregate fair values amounted to RMB7,636 million as of March 31, 2018. The carrying amounts of listed equity securities previously classified as available-for-sale that were in a loss position over twelve months were insignificant as of the same date. In addition, upon the adoption of ASU 2016-01, the Company no longer accounts for certain other equity investments in privately held companies over which the Company neither has control nor significant influence through investment in common stock or in-substance common stock using the cost method. Beginning on April 1, 2018, the Company elected to record a majority of equity investments in privately held companies using the measurement alternative (Note 2(t)). These equity securities, which amounted to RMB59,942 million as of March 31, 2018, were previously classified under investments in equity investees and were reclassified into investment securities on the consolidated balance sheets as of April 1, 2018 (Note 13). During the year ended March 31, 2019, upward adjustments of RMB15,474 million, and impairments and downward adjustments of RMB10,404 million, were recorded in interest and investment income, net, in the consolidated income statement. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities. As of March 31, 2019, the amount of investments in privately held companies for which the Company elected to record using the measurement alternative amounted to RMB81,514 million. During the years ended March 31, 2017, 2018 and 2019, no realized gains or losses were recognized for the disposal of debt investments. During the same periods, impairment losses on debt investments of RMB173 million, RMB6 million and RMB546 million were recorded in interest and investment income, net in the consolidated income statements, respectively. The carrying amount of debt investments approximates their fair value due to the fact that the related effective interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 - Valuations based on unadjusted quoted prices for identical assets and liabilities in active markets. Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on unobservable inputs reflecting assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Fair value of short-term investments and listed equity securities are based on quoted prices in active markets for identical assets or liabilities. Other financial instruments, such as interest rate swap contracts, are valued based on inputs derived from or corroborated by observable market data. Valuations of convertible and exchangeable bonds that do not have a quoted price are performed using valuation models such as the binomial model with unobservable inputs including risk-free interest rate and expected volatility. The valuation of contingent consideration is performed using an expected cash flow method with unobservable inputs including the probability to achieve the contingencies, which is assessed by the Company, in connection with the contingent consideration arrangements. Investments in privately held companies for which the Company elected to record using the measurement alternative were re-measured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values were estimated based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, as well as rights and obligations of the securities that the Company holds. The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized under the fair value hierarchy: As of March 31, 2018 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Short-term investments 6,086 — — 6,086 Restricted cash and escrow receivables 3,417 — — 3,417 Listed equity securities 28,723 — — 28,723 Equity securities accounted for under the fair value option — — 565 565 Convertible bonds accounted for under the fair value option — — 1,256 1,256 Interest rate swap contracts — 542 — 542 38,226 542 1,821 40,589 Liabilities Contingent consideration in relation to investments and acquisitions — — 120 120 — — 120 120 As of March 31, 2019 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Short-term investments 3,262 — — 3,262 Restricted cash and escrow receivables 8,518 — — 8,518 Listed equity securities 61,202 — — 61,202 Convertible bonds accounted for under the fair value option 244 — 2,498 2,742 Interest rate swap contracts — 331 — 331 Others 604 1,444 1,159 3,207 73,830 1,775 3,657 79,262 Liabilities Contingent consideration in relation to investments and acquisitions — — 5,122 5,122 — — 5,122 5,122 Convertible bonds categorized within Level 3 under the fair value hierarchy: Amounts (in millions of RMB) Balance as of April 1, 2017 — Additions 1,264 Foreign currency translation adjustments (8) Balance as of March 31, 2018 1,256 Additions 1,153 Foreign currency translation adjustments 89 Balance as of March 31, 2019 2,498 Contingent consideration in relation to investments and acquisitions categorized within Level 3 under the fair value hierarchy: Amounts (in millions of RMB) Balance as of April 1, 2017 921 Payment (770) Net decrease in fair value (17) Foreign currency translation adjustments (14) Balance as of March 31, 2018 120 Additions (i) 4,790 Net decrease in fair value (45) Foreign currency translation adjustments 257 Balance as of March 31, 2019 5,122 (i) Additions during the year ended March 31, 2019 were related to the acquisition of Ele.me (Note 4(c)). |
Prepayments, receivables and ot
Prepayments, receivables and other assets | 12 Months Ended |
Mar. 31, 2019 | |
Prepayments, receivables and other assets | |
Prepayments, receivables and other assets | 12. Prepayments, receivables and other assets As of March 31, 2018 2019 (in millions of RMB) Current: Accounts receivable, net of allowance 7,284 13,771 Inventories 4,535 8,534 Amounts due from related companies (i) 8,080 7,445 VAT receivables, net of allowance (ii) 8,915 7,347 Prepaid cost of revenue, sales and marketing and other expenses 4,283 7,049 Advances to/receivables from customers, merchants and others 3,700 4,689 Deferred direct selling costs (iii) 1,643 1,990 Licensed copyrights (Note 2(y)) 964 1,126 Interest receivables 672 867 Loan receivables, net 419 490 Others 2,733 5,282 43,228 58,590 Non-current: Prepayment for acquisition of property and equipment 5,933 7,643 Film costs and prepayment for licensed copyrights and others 5,614 7,205 Land use rights, net (iv) 9,377 6,419 Deferred tax assets (Note 7) 2,182 2,533 Fair value of interest rate swap contracts 542 331 Deferred direct selling costs (iii) 188 281 Others 2,438 3,606 26,274 28,018 (i) Amounts due from related companies primarily represent balances arising from transactions with Ant Financial and its subsidiaries (Notes 4(a) and 21). The balances are unsecured, interest free and repayable within the next twelve months. (ii) VAT receivables mainly represent VAT receivable from relevant PRC tax authorities arising from the Company’s VAT refund service. The Company provides advance settlement of relevant VAT refund amounts to its customers prior to receiving the VAT refund from tax authorities. To provide this service, the Company relies on short-term banking facilities and takes on credit risk if the Company fails to recover the prepaid VAT amount. (iii) The Company is obligated to pay certain costs upon the receipt of membership fees from merchants or other customers, which primarily consist of sales commissions. The membership fees are initially deferred and recognized as revenue in the consolidated income statements in the period in which the services are rendered. As such, the related costs are also initially deferred and recognized in the consolidated income statements in the same period as the related service fees are recognized. (iv) As of March 31, 2019, the Company revised the presentation to report land use rights under prepayments, receivables and other assets on the consolidated balance sheet. Accordingly, land use rights, net as of March 31, 2018 in the amount of RMB9,377 million was reclassified to prepayments, receivables and other assets to conform with the current year presentation. |
Investments in equity investees
Investments in equity investees | 12 Months Ended |
Mar. 31, 2019 | |
Investments in equity investees | |
Investments in equity investees | 13. Investments in equity investees Cost method Equity method Total (in millions of RMB) Balance as of April 1, 2017 35,404 84,964 120,368 Additions (i) 34,121 26,391 60,512 Share of results, other comprehensive income and other reserves (ii) — (3,660) (3,660) Disposals (3,051) (474) (3,525) Transfers (iii) (1,725) (9,011) (10,736) Impairment loss (iv) (1,753) (18,153) (19,906) Foreign currency translation adjustments (3,054) (299) (3,353) Balance as of March 31, 2018 59,942 79,758 139,700 Transfer of cost method investments (v) (59,942) — (59,942) Balance as of April 1, 2018 — 79,758 79,758 Additions (i) — 14,360 14,360 Share of results, other comprehensive income and other reserves (ii) — 1,905 1,905 Disposals — (1,160) (1,160) Transfers (iii) — (10,153) (10,153) Impairment loss (iv) — (493) (493) Foreign currency translation adjustments — 237 237 Balance as of March 31, 2019 — 84,454 84,454 (i) Details of the significant additions of the investments in equity investees are set out in Note 4. (ii) Share of results, other comprehensive income and other reserves include the share of results of the equity investees, the gain or loss arising from the deemed disposal of the equity investees and the amortization of basis differences. The amount excludes the expenses relating to the share-based awards underlying the equity of the Company and Ant Financial granted to employees of certain equity investees (Note 8(d)). (iii) During the year ended March 31, 2018, transfers under the equity method were primarily related to the consolidation of Cainiao Network (Note 4(f)) and Intime (Note 4(g)) upon the acquisition of control by the Company. During the year ended March 31, 2019, transfers under the equity method were primarily related to the consolidation of Alibaba Pictures (Note 4(b)). (iv) Impairment charges in connection with the equity method investments of RMB245 million, RMB18,153 million and RMB493 million were recorded in share of results of equity investees in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively. Impairment charges in connection with the cost method investments of RMB2,125 million and RMB1,753 million were recorded in interest and investment income, net in the consolidated income statements for the years ended March 31, 2017 and 2018, respectively. Out of the impairment charges relating to the equity method investments for the year ended March 31, 2018, RMB18,116 million was related to the Company’s investment in Alibaba Pictures (Note 4(b)). The fair value measurements with respect to the impairments of other equity investees were individually insignificant and utilized a number of different unobservable inputs not subject to meaningful aggregation. (v) As of March 31, 2018, cost method investments with an aggregate carrying amount of RMB30,318 million have appreciated in value and the Company estimated the fair value to be approximately RMB61,936 million. As of the same date, for certain other cost method investments with an aggregate carrying amount of RMB29,624 million, the Company identified no events or changes in circumstances that may have a significant adverse effect on the fair value of the investments and determined that it is not practicable to estimate their fair values. As of March 31, 2019, equity method investments with an aggregate carrying amount of RMB56,463 million that are publicly traded have increased in value and the total market value of these investments amounted to RMB72,200 million. For the years ended March 31, 2017, 2018 and 2019, equity method investments held by the Company in aggregate have met the significance criteria as defined under Rule 4-08 (g) of Regulation S-X. As such, the Company is required to present summarized financial information for all of its equity method investments as a group as follows: Year ended March 31, 2017 2018 2019 (in millions of RMB) Operating data: Revenue 125,701 284,706 488,775 Cost of revenue (109,790) (242,068) (405,074) (Loss) Income from operations (9,071) (7,072) 3,840 Net (loss) income (6,743) 195 2,923 As of March 31, 2018 2019 (in millions of RMB) Balance sheet data: Current assets 200,742 257,502 Non-current assets 184,310 222,484 Current liabilities 162,340 205,272 Non-current liabilities 26,107 34,191 Noncontrolling interests and mezzanine equity 16,586 10,151 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Mar. 31, 2019 | |
Property and equipment, net | |
Property and equipment, net | 14. As of March 31, 2018 2019 (in millions of RMB) Buildings and property improvements 45,909 61,940 Computer equipment and software 33,852 53,187 Construction in progress 5,110 6,959 Furniture, office and transportation equipment 2,057 3,889 86,928 125,975 Less: accumulated depreciation and amortization (20,439) (33,945) Net book value 66,489 92,030 Depreciation and amortization expenses recognized for the years ended March 31, 2017, 2018 and 2019 were RMB5,177 million, RMB8,654 million and RMB14,818 million, respectively. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Mar. 31, 2019 | |
Intangible assets, net | |
Intangible assets, net | 15. Intangible assets, net As of March 31, 2018 2019 (in millions of RMB) User base and customer relationships 13,510 47,913 Trade names, trademarks and domain names 14,198 22,592 Non-compete agreements (i) 7,820 12,528 Developed technology and patents 5,463 9,510 Licensed copyrights (Note 2(y)) 9,182 9,225 Others 225 1,358 50,398 103,126 Less: accumulated amortization and impairment (22,933) (34,850) Net book value 27,465 68,276 (i) The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Amounts (in millions of RMB) For the year ending March 31, 2020 14,418 2021 11,362 2022 8,779 2023 7,793 2024 7,378 Thereafter 18,546 68,276 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill | |
Goodwill | 16. Goodwill Changes in the carrying amount of goodwill by segment for the years ended March 31, 2018 and 2019 were as follows: Digital media Innovation Core Cloud and initiatives and commerce computing entertainment others Total (in millions of RMB) Balance as of April 1, 2017 79,855 368 40,521 4,676 125,420 Additions (i) 37,458 — 335 — 37,793 Impairment — — (494) — (494) Foreign currency translation adjustments (515) — (55) — (570) Balance as of March 31, 2018 116,798 368 40,307 4,676 162,149 Additions (i) 80,760 1,118 20,165 575 102,618 Foreign currency translation adjustments 157 (25) 36 — 168 Balance as of March 31, 2019 197,715 1,461 60,508 5,251 264,935 (i) During the year ended March 31, 2019, additions under the core commerce segment and the digital media and entertainment segment were primarily related to the acquisitions of Koubei and Ele.me (Note 4(c)) and the acquisition of Alibaba Pictures (Note 4(b)), respectively. Gross goodwill balances were RMB166,093 million and RMB268,879 million as of March 31, 2018 and 2019, respectively. Accumulated impairment losses were RMB3,944 million as of March 31, 2018 and 2019. In the annual goodwill impairment assessment, the Company concluded that the carrying amounts of certain reporting units exceeded their respective fair values and recorded impairment losses of nil, RMB494 million and nil during the years ended March 31, 2017, 2018 and 2019, respectively. The impairment losses were resulted from a revision of long-term financial outlook and the change in business model of those reporting units. The impairment loss was determined by comparing the carrying amounts of goodwill associated with the reporting units with their respective implied fair values of the goodwill. The goodwill impairment is presented as an unallocated item in the segment information (Note 25) because the CODM of the Company does not consider this as part of the segment operating performance measure. |
Deferred revenue and customer a
Deferred revenue and customer advances | 12 Months Ended |
Mar. 31, 2019 | |
Deferred revenue and customer advances | |
Deferred revenue and customer advances | 17. Deferred revenue and customer advances Deferred revenue and customer advances primarily represent service fees prepaid by merchants or customers for which the relevant services have not been provided. The respective balances are as follows: As of March 31, 2018 2019 (in millions of RMB) Deferred revenue 13,350 18,448 Customer advances 9,940 13,814 23,290 32,262 Less: current portion (22,297) (30,795) Non-current portion 993 1,467 All service fees received in advance are initially recorded as customer advances. These amounts are transferred to deferred revenue upon commencement of the provision of services by the Company and are recognized in the consolidated income statements in the period in which the services are provided. In general, service fees received in advance are non-refundable after the amounts are transferred to deferred revenue. Substantially all of the balances of deferred revenue and customer advances are generally recognized as revenue within one year. The amount of revenue recognized during the year ended March 31, 2019 from performance obligations satisfied (or partially satisfied) in previous periods is not material. |
Accrued expenses, accounts paya
Accrued expenses, accounts payable and other liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses, accounts payable and other liabilities | |
Accrued expenses, accounts payable and other liabilities | 18. Accrued expenses, accounts payable and other liabilities As of March 31, 2018 2019 (in millions of RMB) Current: Payables and accruals for cost of revenue and sales and marketing expenses 40,363 51,958 Accrued bonus and staff costs, including sales commission 11,212 14,034 Payable to merchants and third party marketing affiliates 6,584 12,554 Other deposits and advances received 6,271 10,447 Payables and accruals for purchases of property and equipment 6,095 5,548 Amounts due to related companies (i) 1,996 4,570 Other taxes payable (ii) 2,382 3,448 Contingent and deferred consideration in relation to investments and acquisitions 807 3,301 Accrued professional services and administrative expenses 1,371 2,361 Accrued donations 1,215 1,738 Accrual for interest expense 885 924 Others (iii) 1,984 6,828 81,165 117,711 Non-current: Contingent and deferred consideration in relation to investments and acquisitions 408 3,872 Others 1,637 2,315 2,045 6,187 (i) Amounts due to related companies primarily represent balances arising from the transactions with Ant Financial and its subsidiaries (Note 21). The balances are unsecured, interest free and repayable within the next twelve months. (ii) Other taxes payable represent business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Company. (iii) Other current liabilities as of March 31, 2019 include a settlement provision of US$250 million (RMB1,679 million) for a U.S. federal class action lawsuit that has been pending since January 2015 (Note 24(g)). |
Bank borrowings
Bank borrowings | 12 Months Ended |
Mar. 31, 2019 | |
Bank borrowings | |
Bank borrowings | |
Bank borrowings | 19. Bank borrowings Bank borrowings are analyzed as follows: As of March 31 2018 2019 (in millions of RMB) Current portion: Short-term other borrowings (i) 6,028 7,356 Non-current portion: US$4.0 billion syndicated loan denominated in US$ (ii) 24,957 26,780 Long-term other borrowings (iii) 9,196 8,647 34,153 35,427 (i) As of March 31, 2018 and 2019, the Company had short-term borrowings from banks which were repayable within one year or on demand and charged interest rates ranging from 2.2% to 6.1% and 2.9% to 19.0% per annum, respectively. As of March 31, 2019, the weighted average interest rate of these borrowings was 4.1% per annum. The borrowings are primarily denominated in RMB or US$. (ii) As of March 31, 2018 and 2019, the Company had a five-year US$4.0 billion syndicated loan, which was entered into with a group of eight lead arrangers. The loan has a five-year bullet maturity and is priced at 110 basis points over LIBOR. The related floating interest payments are hedged by certain interest rate swap contracts entered into by the Company. The proceeds of the loan were used for general corporate and working capital purposes (including acquisitions). In May 2019, the loan terms were modified such that the interest rate of the loan was reduced to 85 basis points over LIBOR and the maturity of the loan was extended to May 2024. (iii) As of March 31, 2018 and 2019, the Company had long-term borrowings from banks with weighted average interest rates of approximately 4.5% and 4.6% per annum, respectively. The borrowings are all denominated in RMB. Certain other bank borrowings are collateralized by a pledge of certain bank deposits, buildings and property improvements, construction in progress and land use rights in the PRC with carrying values of RMB20,927 million and RMB18,314 million, as of March 31, 2018 and 2019, respectively. As of March 31, 2019, the Company is in compliance with all covenants in relation to bank borrowings. In April 2017, the Company obtained a new revolving credit facility provided by certain financial institutions for an amount of US$5.15 billion, which has not yet been drawn down. The interest rate on any outstanding utilized amount under this new credit facility is calculated based on LIBOR plus 95 basis points. This facility is reserved for general corporate and working capital purposes (including acquisitions). As of March 31, 2019, the borrowings will be due according to the following schedule: Principal amounts (in millions of RMB) Within 1 year 7,358 Between 1 to 2 years 841 Between 2 to 3 years 27,986 Between 3 to 4 years 577 Between 4 to 5 years 559 Beyond 5 years 5,576 42,897 |
Unsecured senior notes
Unsecured senior notes | 12 Months Ended |
Mar. 31, 2019 | |
Unsecured senior notes | |
Unsecured senior notes | |
Unsecured senior notes | 20. In November 2014, the Company issued unsecured senior notes including floating rate and fixed rate notes with varying maturities for an aggregate principal amount of US$8.0 billion (the “2014 Senior Notes”), of which US$1.3 billion was repaid in November 2017. The 2014 Senior Notes are senior unsecured obligations that are listed on the HKSE, and interest is payable in arrears, quarterly for the floating rate notes and semiannually for the fixed‑rate notes . In December 2017, the Company issued another series of unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$7.0 billion (the “2017 Senior Notes”). The 2017 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually. The following table provides a summary of the Company’s unsecured senior notes as of March 31, 2018 and 2019: As of March 31, Effective 2018 2019 interest rate (in millions of RMB) US$2,250 million 2.500% notes due 2019 14,083 15,110 2.67 % US$1,500 million 3.125% notes due 2021 9,365 10,044 3.26 % US$700 million 2.800% notes due 2023 4,372 4,687 2.90 % US$2,250 million 3.600% notes due 2024 14,050 15,061 3.68 % US$2,550 million 3.400% notes due 2027 15,848 16,989 3.52 % US$700 million 4.500% notes due 2034 4,339 4,650 4.60 % US$1,000 million 4.000% notes due 2037 6,219 6,663 4.06 % US$1,750 million 4.200% notes due 2047 10,880 11,655 4.25 % US$1,000 million 4.400% notes due 2057 6,216 6,658 4.44 % Carrying value 85,372 91,517 Unamortized discount and debt issuance costs 624 589 Total principal amounts of unsecured senior notes 85,996 92,106 Less: current portion of principal amounts of unsecured senior notes — (15,127) Non-current portion of principal amounts of unsecured senior notes 85,996 76,979 The 2014 Senior Notes and the 2017 Senior Notes were issued at a discount with a total amount of US$47 million (RMB297 million). The debt issuance costs of US$82 million (RMB517 million) were presented as a direct deduction from the principal amount of the unsecured senior notes on the consolidated balance sheets. The effective interest rates for the unsecured senior notes include the interest charged on the notes as well as amortization of the debt discounts and debt issuance costs. The 2014 Senior Notes and the 2017 Senior Notes contain covenants including, among others, limitation on liens, consolidation, merger and sale of the Company’s assets. As of March 31, 2019, the Company is in compliance with all these covenants. In addition, the 2014 Senior Notes and the 2017 Senior Notes rank senior in right of payment to all of the Company’s existing and future indebtedness expressly subordinated in right of payment to the notes and rank at least equally in right of payment with all of the Company’s existing and future unsecured unsubordinated indebtedness (subject to any priority rights pursuant to applicable law). The proceeds from issuance of the 2014 Senior Notes were used in full to refinance a previous syndicated loan in the same amount. The proceeds from the issuance of the 2017 Senior Notes were used for general corporate purposes. As of March 31, 2019, the future principal payments for the Company’s unsecured senior notes will be due according to the following schedule: Principal amounts (in millions of RMB) Within 1 year 15,127 Between 1 to 2 years — Between 2 to 3 years 10,084 Between 3 to 4 years — Between 4 to 5 years 4,706 Thereafter 62,189 92,106 As of March 31, 2018 and 2019, the fair values of the Company’s unsecured senior notes, based on Level 2 inputs, were US$13,317 million (RMB83,590 million) and US$13,679 million (RMB91,964 million), respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related party transactions | |
Related party transactions | 21. Related party transactions During the years ended March 31, 2017, 2018 and 2019, other than disclosed elsewhere, the Company had the following material related party transactions: Transactions with Ant Financial and its affiliates Year ended March 31, 2017 2018 2019 (in millions of RMB) Amounts earned by the Company Profit Share Payments (i) 2,086 3,444 517 SME Annual Fee (ii) 847 956 954 Administrative and support services (iii) 531 676 1,017 Commission on transactions (iii) 409 497 591 Cloud computing revenue (iii) 264 482 761 Other amounts earned (iii) 144 529 898 4,281 6,584 4,738 Amounts incurred by the Company Payment processing fee (iv) 5,487 6,295 8,252 Other amounts incurred (iii) 952 1,894 1,328 6,439 8,189 9,580 (i) In 2014, the Company entered into the 2014 IPLA with Ant Financial. Under the 2014 IPLA, the Company receives the Profit Share Payments amounting to the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Financial, subject to certain adjustments (Note 4(a)). Profit Share Payments were recognized in consolidated income statements, net of the costs incurred for the provision of the software technology services reimbursed by Ant Financial. The amounts reimbursed by Ant Financial to the Company were RMB245 million, RMB37 million and RMB106 million for the years ended March 31, 2017, 2018 and 2019, respectively. (ii) The Company entered into software system use and service agreements with Ant Financial in 2014. In calendar years 2016 to 2017, the Company received the SME Annual Fee equal to 2.5% of the average daily balance of the SME loans made by Ant Financial and its affiliates. In calendar years 2018 to 2021, the Company received or will receive the SME Annual Fee equal to the amount paid in calendar year 2017 (Note 4(a)). (iii) The Company has other commercial arrangements, treasury management arrangements and cost sharing arrangements with Ant Financial, its subsidiaries and affiliates on various sales and marketing, cloud computing, treasury management, and other administrative and support services. In addition, the Company entered into agreements with Ant Financial and its affiliates under which the Company receives a cash reimbursement for RSUs and options relating to the certain shares granted to employees of Ant Financial, its subsidiaries and affiliates, upon the vesting of the RSUs and options. (iv) The Company and Alipay, among others, entered into a commercial agreement in 2011 whereby the Company receives payment processing services in exchange for a payment processing fee, which was recognized in cost of revenue. As of March 31, 2018 and 2019, the Company had certain amounts of cash and short-term investments held in accounts managed by Alipay. Transactions with Cainiao Network The Company has commercial arrangements with Cainiao Network to receive certain logistics services. Expenses incurred in connection with the logistics services provided by Cainiao Network of RMB4,444 million and RMB3,437 million were recorded in the consolidated income statements for the year ended March 31, 2017 and for the period from April 1, 2017 to the date of consolidation of Cainiao Network in October 2017, respectively. The Company also has cost sharing and other services arrangements with Cainiao Network and its subsidiaries primarily related to various administrative and support services. In connection with these services provided by the Company, RMB152 million and RMB123 million were recorded in the consolidated income statements for the year ended March 31, 2017 and for the period from April 1, 2017 to the date of consolidation of Cainiao Network in October 2017, respectively. Transactions with Weibo Corporation (“Weibo”) The strategic collaboration agreement and the marketing cooperation agreement that were entered into between the Company and Weibo, an equity investee of the Company, expired in January 2016. Expenses incurred in connection with the marketing services provided by Weibo pursuant to these agreements and other commercial arrangements of RMB340 million, RMB615 million and RMB624 million were recorded in the cost of revenue and sales and marketing expenses in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively. The Company also has other commercial arrangements with Weibo primarily related to cloud computing services. In connection with these services provided by the Company, RMB105 million, RMB223 million and RMB304 million were recorded in revenue in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively. Transactions with other investees Cainiao Network has commercial arrangements with certain investees of the Company related to logistics services. Revenues recognized in connection with these services of RMB72 million and RMB261 million were recorded in the consolidated income statements for the period from the date of consolidation of Cainiao Network in October 2017 to March 31, 2018 and the year ended March 31, 2019, respectively. Expenses incurred in connection with these services of RMB5,608 million and RMB12,933 million were recorded in the consolidated income statements for the same periods, respectively. The Company has extended loans to certain of the Company’s investees for working capital and other uses in conjunction with the Company’s investments. As of March 31, 2019, the aggregate outstanding balance of these loans was RMB2,543 million, with durations generally ranging from one month to ten years and interest rates of up to 10% per annum. Repurchase of ordinary shares from SoftBank In June 2016, the Company entered into a share purchase agreement with SoftBank, pursuant to which the Company repurchased 27,027,027 ordinary shares from SoftBank at US$74.00 per share for an aggregate consideration of approximately US$2.0 billion. These ordinary shares were cancelled upon the completion of the transaction. Other transactions The Company’s digital economy offers different platforms on which different enterprises operate and the Company believes that all transactions on the Company’s platforms are conducted on terms obtained in arms-length transactions with similar unrelated parties. Other than the transactions disclosed above or elsewhere in the consolidated financial statements, the Company has commercial arrangements with SoftBank, its investees and other related parties to provide and receive certain marketing, logistics, traffic acquisition, cloud computing and other services and products. The amounts relating to these services provided and received represent less than 1% of the Company’s revenue and total costs and expenses, respectively, for the years ended March 31, 2017, 2018 and 2019. In addition, the Company has made certain acquisitions and equity investments together with related parties from time to time during the years ended March 31, 2017, 2018 and 2019. The agreements for acquisitions and equity investments were entered into by the parties involved and conducted on fair value basis. The significant acquisitions and equity investments together with related parties are included in Note 4. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Mar. 31, 2019 | |
Restricted net assets | |
Restricted net assets | 22. Restricted net assets PRC laws and regulations permit payments of dividends by the Company’s subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50% of their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction amounted to RMB112,524 million as of March 31, 2019. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company. |
Commitments
Commitments | 12 Months Ended |
Mar. 31, 2019 | |
Commitments | |
Commitments | 23. Commitments (a) Capital commitments Capital expenditures contracted for are analyzed as follows: As of March 31, 2018 2019 (in millions of RMB) Contracted but not provided for: Purchase of property and equipment 3,181 5,656 Construction of corporate campuses 2,607 3,576 5,788 9,232 (b) Operating lease commitments for office facility and transportation equipment The Company has leased office premises and transportation equipment under non-cancellable operating lease agreements. These leases have different terms and renewal rights. The future aggregate minimum lease payments under non-cancellable operating leases are as follows: As of March 31, 2018 2019 (in millions of RMB) No later than 1 year 2,760 4,984 Later than 1 year and no later than 5 years 7,652 10,675 More than 5 years 11,940 15,346 Total 22,352 31,005 For the years ended March 31, 2017, 2018 and 2019, the Company incurred rental expenses under operating leases of RMB747 million, RMB2,279 million and RMB4,699 million, respectively. (c) Commitments for co-location and bandwidth fees, licensed copyrights and marketing expenses As of March 31, 2018 2019 (in millions of RMB) No later than 1 year 19,737 21,768 Later than 1 year and no later than 5 years 12,097 22,291 More than 5 years 3,672 4,964 Total 35,506 49,023 (d) Investment commitments The Company was obligated to pay up to RMB15,174 million and RMB23,954 million for business combinations and equity investments under various arrangements as of March 31, 2018 and 2019, respectively. The commitment balance as of March 31, 2018 primarily includes the consideration for the investment in Shiji Retail (Note 4(r)) and the acquisition of Kaiyuan (Note 4(e)). The commitment balance as of March 31, 2019 primarily includes the consideration for the investment relating to STO Express (Note 4(k)), Focus Media (Note 4(l)) and the remaining committed capital of certain investment funds. (e) Sponsorship commitment In January 2017, the Company entered into a framework agreement with the International Olympic Committee (the “IOC”) and the United States Olympic Committee for a long-term partnership arrangement through 2028. Joining in The Olympic Partner worldwide sponsorship program, the Company has become the official “E-Commerce Services” Partner and “Cloud Services” Partner of the IOC. In addition, the Company has been granted certain marketing rights, benefits and opportunities relating to future Olympic Games and related initiatives, events and activities. The Company will provide at least US$815 million worth of cash, cloud infrastructure services and cloud computing services, as well as marketing and media support in connection with various Olympic initiatives, events and activities, including the Olympic Games and the Winter Olympic Games through 2028. As of March 31, 2018 and 2019, the aggregate amount of cash to be paid and value of services to be provided in the future approximates US$770 million and US$738 million, respectively. |
Risks and contingencies
Risks and contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Risks and contingencies | |
Risks and contingencies | 24. Risks and contingencies (a) (b) (c) (d) (e) (f) (g) other material loss contingencies in this respect as of March 31, 2017, 2018 and 2019. |
Segment information
Segment information | 12 Months Ended |
Mar. 31, 2019 | |
Segment information | |
Segment information | 25. The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. The following tables present the summary of each segment's revenue, income from operations and adjusted earnings before interest, taxes and amortization ("Adjusted EBITA") which is considered as a segment operating performance measure, for the years ended March 31, 2017, 2018 and 2019: Year ended March 31, 2017 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 133,880 6,663 14,733 2,997 158,273 — 158,273 Income (Loss) from operations 74,180 (1,681) (9,882) (6,798) 55,819 (7,764) 48,055 Add: share-based compensation expense 5,994 1,201 1,454 3,017 11,666 4,329 15,995 Add: amortization of intangible assets 2,258 4 1,886 656 4,804 318 5,122 Adjusted EBITA (ii) 82,432 (476) (6,542) (3,125) 72,289 (3,117) Adjusted EBITA margin (iii) 62 % (7) % (44) % (104) % Year ended March 31, 2018 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 214,020 13,390 19,564 3,292 250,266 — 250,266 Income (Loss) from operations 102,743 (3,085) (14,140) (6,901) 78,617 (9,303) 69,314 Add: share-based compensation expense 8,466 2,274 2,142 3,707 16,589 3,486 20,075 Add: amortization of intangible assets 2,891 12 3,693 198 6,794 326 7,120 Add: impairment of goodwill — — — — — 494 494 Adjusted EBITA (ii) 114,100 (799) (8,305) (2,996) 102,000 (4,997) Adjusted EBITA margin (iii) 53 % (6) % (42) % (91) % Year ended March 31, 2019 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 323,400 24,702 24,077 4,665 376,844 — 376,844 Income (Loss) from operations 109,312 (5,508) (20,046) (11,795) 71,963 (14,879) 57,084 Add: share-based compensation expense 17,694 4,332 2,988 5,774 30,788 6,703 37,491 Add: amortization of intangible assets 9,161 18 1,262 50 10,491 236 10,727 Add: settlement of U.S. federal class action lawsuit — — — — — 1,679 1,679 Adjusted EBITA (ii) 136,167 (1,158) (15,796) (5,971) 113,242 (6,261) Adjusted EBITA margin (iii) 42 % (5) % (66) % (128) % The following table presents the reconciliation from the Adjusted EBITA to the consolidated net income for the years ended March 31, 2017, 2018 and 2019: Year ended March 31, 2017 2018 2019 (in millions of RMB) Total Segments Adjusted EBITA 72,289 102,000 113,242 Unallocated (i) (3,117) (4,997) (6,261) Share-based compensation expense (15,995) (20,075) (37,491) Amortization of intangible assets (5,122) (7,120) (10,727) Impairment of goodwill — (494) — Settlement of U.S. federal class action lawsuit — — (1,679) Consolidated income from operations 48,055 69,314 57,084 Interest and investment income, net 8,559 30,495 44,106 Interest expenses (2,671) (3,566) (5,190) Other income, net 6,086 4,160 221 Income tax expenses (13,776) (18,199) (16,553) Share of results of equity investees (5,027) (20,792) 566 Consolidated net income 41,226 61,412 80,234 The following table presents the total depreciation and amortization expenses of property and equipment and land use rights by segment for the years ended March 31, 2017, 2018 and 2019: Year ended March 31, 2017 2018 2019 (in millions of RMB) Core commerce 2,124 3,784 6,672 Cloud computing 1,438 3,047 6,580 Digital media and entertainment 752 986 1,182 Innovation initiatives and others and unallocated (i) 970 972 528 Total depreciation and amortization expenses of property and equipment and land use rights 5,284 8,789 14,962 (i) Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. (ii) Adjusted EBITA represents net income before (i) interest and investment income, net, other income, net, interest expense, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets and impairment of goodwill, and (iii) settlement of a U.S. federal class action lawsuit, which are not reflective of the Company’s core operating performance. (iii) Adjusted EBITA margin represents Adjusted EBITA divided by revenue. Details of the Company’s revenue by segment are set out in Note 5. As substantially all of the Company’s long-lived assets are located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical information is presented. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Translations of balances in the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows from Renminbi (“RMB”) into the United States Dollar (“US$”) as of and for the year ended March 31, 2019 are solely for the convenience of the readers and are calculated at the rate of US$1.00=RMB6.7112, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 29, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at this rate, or at any other rate. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Consolidation | (c) Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the PRC-registered entities directly or indirectly wholly owned by the Company (“WFOEs”) and variable interest entities (“VIEs”) over which the Company is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. A VIE is required to be consolidated by the primary beneficiary of the entity if the equity holders in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Due to legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include the operations of Internet content providers, the Company operates its Internet and other businesses in which foreign investment is restricted or prohibited in the PRC through certain PRC domestic companies. The equity interests of these PRC domestic companies are held by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, these PRC domestic companies that are material to the Company’s business are Zhejiang Taobao Network Co., Ltd., Zhejiang Tmall Network Co., Ltd., Alibaba Cloud Computing Ltd., Hangzhou Alibaba Advertising Co., Ltd. and Youku Information Technology (Beijing) Co., Ltd. The registered capital of these PRC domestic companies was funded by the Company through loans extended to the equity holders of these PRC domestic companies. The Company has entered into certain exclusive technical services agreements with these PRC domestic companies, which entitle it to receive a majority of their residual returns and make it obligatory for the Company to absorb a majority of the risk of losses from their activities. In addition, the Company has entered into certain agreements with the equity holders of these PRC domestic companies, including loan agreements that require them to contribute registered capital to those PRC domestic companies, exclusive call option agreements to acquire the equity interests in these companies when permitted by the PRC laws, rules and regulations, equity pledge agreements of the equity interests held by those equity holders, and proxy agreements that irrevocably authorize individuals designated by the Company to exercise the equity owner’s rights over these PRC domestic companies. Details of the typical structure of the Company’s significant VIEs are set forth below: (i) Loan agreements Pursuant to the relevant loan agreements, the respective WFOEs have granted loans to the equity holders of the VIEs, which may only be used for the purpose of its business operation activities agreed by the WFOEs. The WFOEs may require acceleration of repayment at their absolute discretion. When the equity holders of the VIEs make early repayment of the outstanding amount, the WFOEs or a third-party designated by the WFOEs may purchase the equity interests in the VIEs at a price equal to the outstanding amount of the loan, subject to any applicable PRC laws, rules and regulations. The equity holders of the VIEs undertake not to enter into any prohibited transactions in relation to the VIEs, including the transfer of any business, material assets, intellectual property rights or equity interests in the VIEs to any third party. Exclusive call option agreements The equity holders of the VIEs have granted the WFOEs exclusive call options to purchase their equity interest in the VIEs at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs; and (ii) the minimum price as permitted by applicable PRC laws. Each relevant VIE has further granted the relevant WFOE an exclusive call option to purchase its assets at an exercise price equal to the book value of the assets or the minimum price as permitted by applicable PRC laws, whichever is higher. Certain VIEs and their equity holders will also jointly grant the WFOEs (A) exclusive call options to request the VIEs to decrease their registered capital at an exercise price equal to the higher of (i) the paid-in registered capital in the VIEs and (ii) the minimum price as permitted by applicable PRC laws (the “Capital Decrease Price”), and (B) exclusive call options to subscribe for the increased capital of the VIEs at a price equal to the sum of the Capital Decrease Price and the unpaid registered capital, if applicable, as of the capital decrease. The WFOEs may nominate another entity or individual to purchase the equity interest or assets, or to subscribe for the increased capital, if applicable, under the call options. Execution of each call option shall not violate the applicable PRC laws, rules and regulations. Each equity holder of the VIE has agreed that the following amounts, to the extent in excess of the original registered capital that they contributed to the VIE (after deduction of relevant tax expenses), belong to and shall be paid to the WFOEs: (i) proceeds from the transfer of its equity interests in the VIE, (ii) proceeds received in connection with a capital decease in the VIE, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIE upon termination or liquidation. Moreover, any profits, distributions or dividends (after deduction of relevant tax expenses) received by the VIEs also belong to and shall be paid to the WFOEs. The exclusive call option agreements remain in effect until the equity interest or assets that are the subject of these agreements are transferred to the WFOEs. Proxy agreements Pursuant to the relevant proxy agreements, the equity holders of the VIEs irrevocably authorize any person designated by the WFOEs to exercise their rights as the equity holders of the VIEs, including without limitation the right to vote and appoint directors. Equity pledge agreements Pursuant to the relevant equity pledge agreements, the equity holders of the VIEs have pledged all of their interests in the equity of the VIEs as a continuing first priority security interest in favor of the corresponding WFOEs to secure the outstanding amounts advanced under the relevant loan agreements described above and to secure the performance of obligations by the VIEs and/or the equity holders under the other structure contracts. Each WFOE is entitled to exercise its right to dispose of the pledged interests in the equity of the VIE held by the equity holders and has priority in receiving payment by the application of proceeds from the auction or sale of the pledged interests, in the event of any breach or default under the loan agreement or other structure contracts, if applicable. These equity pledge agreements remain in force until the later of (i) the full performance of the contractual arrangements by the relevant parties, and (ii) the full repayment of the loans made to the equity holders of the VIEs . (ii) Exclusive technology services agreements or exclusive services agreements Each relevant VIE has entered into an exclusive technology services agreement or an exclusive services agreement with the respective WFOE, pursuant to which the relevant WFOE provides exclusive services to the VIE. In exchange, the VIE pays a service fee to the WFOE, the amount of which shall be determined, to the extent permitted by applicable PRC laws as proposed by the WFOE, resulting in a transfer of substantially all of the profits from the VIE to the WFOE. Other arrangements The exclusive call option agreements described above also entitle the WFOEs to all profits, distributions or dividends (after deduction of relevant tax expenses) to be received by the VIEs, and the following amounts, to the extent in excess of the original registered capital that they contributed to the VIEs (after deduction of relevant tax expenses) to be received by each equity holder of the VIEs : (i) proceeds from the transfer of its equity interests in the VIEs, (ii) proceeds received in connection with a capital decease in the VIEs, and (iii) distributions or liquidation residuals from the disposal of its equity interests in the VIEs upon termination or liquidation. Based on these contractual agreements, the Company believes that the PRC domestic companies as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company is the primary beneficiary of these PRC domestic companies, the Company believes that these VIEs should be consolidated based on the structure as described above. The following financial information of the VIEs in the PRC was recorded in the accompanying consolidated financial statements: As of March 31, 2018 2019 (in millions of RMB) Cash and cash equivalents and short-term investments 7,507 15,019 Investments in equity investees and investment securities 26,611 28,230 Accounts receivable, net of allowance 5,733 9,540 Amounts due from non-VIE subsidiaries of the Company 1,949 6,398 Prepayment for licensed copyrights 1,736 2,633 Property and equipment and intangible assets 6,788 6,161 Others 4,139 5,992 Total assets 54,463 73,973 Amounts due to non-VIE subsidiaries of the Company 41,090 60,273 Accruals for purchase of licensed copyrights 3,686 3,498 Accrued expenses, accounts payable and other liabilities 10,931 14,594 Deferred revenue and customer advances 4,997 7,213 Deferred tax liabilities 995 448 Total liabilities 61,699 86,026 Year ended March 31, 2017 2018 2019 (in millions of RMB) Revenue (i) 24,712 32,898 66,674 Net loss (4,688) (6,167) (7,063) Net cash provided by operating activities 3,220 5,547 4,163 Net cash used in investing activities (2,557) (20,366) (8,503) Net cash provided by financing activities 2,688 14,286 12,373 (i) Revenue generated by the VIEs are primarily from cloud computing services, digital media and entertainment services, local consumer services and others. The VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 21 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves. As all VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by its VIEs, the Company has provided and will continue to provide financial support to the VIEs considering the business requirements of the VIEs, as well as the Company's own business objectives in the future . Unrecognized revenue-producing assets held by the VIEs include certain Internet content provision and other licenses, domain names and trademarks. The Internet content provision and other licenses are required under relevant PRC laws, rules and regulations for the operation of Internet businesses in the PRC, and therefore are integral to the Company’s operations. The Internet content provision licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. |
Business combinations and noncontrolling interests | (d) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers, liabilities incurred by the Company and equity instruments issued by the Company. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent to the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any further adjustments are recorded in the consolidated income statements. In a business combination achieved in stages, the Company re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated income statements. When there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company accretes changes in the redemption value over the period from the date that it becomes probable that the mezzanine equity will become redeemable to the earliest redemption date using the effective interest method. Consolidated net income in the consolidated income statements includes net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net loss attributable to mezzanine equity holders is included in net loss attributable to noncontrolling interests in the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. During the years ended March 31, 2017, 2018 and 2019, net loss attributable to mezzanine equity holders amounted to RMB1,961 million, RMB930 million and RMB438 million, respectively. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests on the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. |
Segment reporting | (e) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. The Company had four operating and reportable segments during the periods presented as set out in Notes 1 and 25. |
Foreign currency translation | (f) Foreign currency translation The functional currency of the Company is US$. The Company’s subsidiaries with operations in the PRC, Hong Kong, the United States and other jurisdictions generally use their respective local currencies as their functional currencies. The reporting currency of the Company is RMB as the major operations of the Company are within the PRC. The financial statements of the Company’s subsidiaries, other than the subsidiaries with the functional currency of RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated income statements during the year in which they occur. |
Revenue recognition | (g) Revenue recognition In April 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)," including related amendments and implementation guidance within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, including ASU 2014-09, “ASC 606”), issued by the Financial Accounting Standards Board (“FASB”). ASC 606 supersedes the revenue recognition requirements in ASC 605 and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606 beginning on April 1, 2018 using the modified retrospective method applied to those contracts with the customers which were not completed as of April 1, 2018. Results for reporting periods beginning on April 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with ASC 605. The impact of adopting the new revenue standard was not material to the consolidated financial statements and there was no adjustment to the beginning retained earnings on April 1, 2018. Revenue is principally comprised of customer management revenue, commissions on transactions, membership fees, logistics services revenue, cloud computing services revenue, sales of goods and other revenue. Revenue represents the amount of consideration the Company is entitled to upon the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). Consistent with the criteria of ASC 606 "Revenue from Contracts with Customers," the Company recognizes revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, the Company also considers the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership and (v) acceptance of the good or service. For performance obligations satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of a performance obligation. For revenue arrangements with multiple distinct performance obligations, each distinct performance obligation is separately accounted for and the total consideration is allocated to each performance obligation based on the relative standalone selling price at contract inception. Revenue arrangements with multiple distinct performance obligations, such as the sale of membership packages and customer management services on wholesale marketplaces and Youku’s platforms, are not significant to the Company’s total revenue. The Company evaluates if it is a principal or an agent in a transaction to determine whether revenue should be recorded on a gross or net basis. The Company is acting as the principal if it obtains control over the goods and services before they are transferred to customers. When the Company is primarily obligated in a transaction, is generally subject to inventory risk, has latitude in establishing prices, or has several but not all of these indicators, the Company acts as the principal and revenue is recorded on a gross basis. When the Company is not primarily obligated in a transaction, does not generally bear the inventory risk and does not have the ability to establish the price, the Company acts as the agent and revenue is recorded on a net basis. When services are exchanged or swapped for other services, revenue is recognized based on the estimated standalone selling price of services promised to customer if the fair value of the services received cannot be reasonably estimated. The amount of revenue recognized for barter transactions was not material for each of the periods presented. Practical expedients and exemptions The Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less and contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The Company does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a result, the Company applies the practical expedient and does not adjust any of the transaction price for the time value of money. Revenue recognition policies by type are as follows: (i) Within the core commerce segment, the Company provides the following customer management services to merchants on the Company’s retail and wholesale marketplaces and certain third-party marketing affiliates’ websites: Pay for performance (“P4P”) marketing services P4P marketing services allow merchants to bid for keywords that match product or service listings appearing in search or browser results on the Company’s marketplaces. Merchants bid for keywords through an online bidding system. The positioning of the listings and the price for the positioning are determined through an online auction system, which facilitates price discovery through a market-based mechanism. In general, merchants prepay for P4P marketing services and the related revenue is recognized when a user clicks their product or service listings as this is the point of time when the merchants benefit from the marketing services rendered. Display marketing services Display marketing services allow merchants to place advertisements on the Company’s marketplaces, at fixed prices or prices established by a real-time bidding system and in particular formats. In general, merchants need to prepay for display marketing which is accounted for as customer advances and revenue is recognized either ratably over the period in which the advertisement is displayed as the merchants simultaneously consume the benefits as the advertisement is displayed or when an advertisement is viewed by users, depending on the type of marketing services selected by the merchants. The Company also places P4P marketing services content and display marketing content through the third-party marketing affiliate program. A substantial portion of customer management revenue generated through the third-party marketing affiliate program represented P4P marketing services revenue. In delivery of these customer management services, the Company, through the third-party marketing affiliate program, places the P4P marketing services content of the participating merchants on third-party online resources in the forms of picture or text links through contextual relevance technology to match merchants’ marketing content to the textual content of the third-party online resources and the users’ attributes based on the Company’s systems and algorithms. When the links on third-party online resources are clicked, users are diverted to a landing page of the Company’s marketplaces where listings of the participating merchant as well as similar products or services of other merchants are presented. In limited cases, the Company may embed a search box for one of its marketplaces on the third-party online resources, and when a keyword is input into the search box, the user will be diverted to the Company’s marketplaces where search results are presented. Revenue is recognized when the users further click on the P4P marketing content on the landing pages. The Company places display marketing content on third-party online resources in a similar manner. In general, merchants need to prepay for display marketing which is accounted for as customer advances and revenue is recognized ratably over the period in which the advertisement is displayed as merchants simultaneously consume the benefits as the advertisement is displayed. P4P marketing services revenue as well as display marketing revenue generated on the Company’s marketplaces or through the third-party marketing affiliate program are recorded on a gross basis when the Company is the principal to the merchants in the arrangements. For third-party marketing affiliates with whom the Company has an arrangement to share the revenue, traffic acquisition cost is also recognized at the same time if the P4P marketing content on the landing page clicked by the users is from merchants participating in the third-party marketing affiliate program. Taobaoke services In addition, the Company offers the Taobaoke program which generates commissions from merchants for transactions completed by consumers sourced from certain third-party marketing affiliates’ websites and mobile apps. The commission rates on Taobaoke are set by the merchants. The Company’s portion of commission revenue is recognized at the time when the underlying transaction is completed and is recorded on a net basis principally because the Company is not the principal as it does not have latitude in establishing prices or does not have inventory risk. In certain occasions where the Company is the principal of the arrangement (such as arrangements where the Company is obligated to pay for website inventory costs in fixed amounts to third-party marketing affiliates regardless of whether commission revenue is generated from these marketing affiliates), the commission revenue is recorded on a gross basis. Within the digital media and entertainment segment, the Company offers P4P marketing services to merchants and marketers on websites and mobile media operated by UCWeb. Revenue is recognized when a user clicks their product or service listings as this is the point of time when the merchants benefit from the marketing services rendered. In addition, marketers can also place advertisements on websites and mobile media operated by UCWeb and Youku’s platforms in different formats, including video, banners, links, logos and buttons. Revenue is recognized ratably over the period in which the advertisement is displayed as the merchants simultaneously consume the benefits as the advertisement is displayed or when an advertisement is clicked or viewed by users, depending on the type of marketing services selected by the merchants. (ii) The Company earns commissions from merchants when transactions are completed on Tmall and certain other retail marketplaces of the Company. The commissions are generally determined as a percentage based on the value of merchandise being sold by the merchants. The commission revenue includes merchant deposits that are expected to be non-refundable and is accounted for as variable consideration (Note 2(ad)). The variable consideration is estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Revenue related to commissions is recognized in the consolidated income statements based on the expected value when the performance obligation is satisfied. Changes to the estimated variable consideration were not material for each of the periods presented. (iii) The Company earns membership fees revenue from wholesale sellers in respect of the sale of membership packages and subscriptions that allow them to host premium storefronts on the Company’s wholesale marketplaces, as well as the provision of other value-added services, and from customers in respect of the sale of membership packages which allow them to access premium content on Youku’s paid content platforms. These service fees are paid in advance for a specific contracted service period. All these fees are initially deferred as deferred revenue and customer advances when received and revenue is recognized ratably over the term of the respective service contracts as the services are provided. (iv) The Company earns logistics services revenue from domestic and international one-stop-shop logistics services and the supply chain management solutions provided by Cainiao Network as well as on-demand delivery services provided by Ele.me. Revenue is recognized at the time when the logistics services are provided. (v) The Company earns cloud computing services revenue from the provision of services such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, and machine learning platform and IoT services. These cloud computing services allow customers to use hosted software over the contract period without taking possession of the software. Cloud computing services are mainly charged on either a subscription or consumption basis. Revenue related to cloud services charged on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services charged on a consumption basis, such as the quantity of storage or elastic computing services used in a period, is recognized based on the customer utilization of the resources. (vi) Revenue from the sales of goods is mainly generated from Freshippo (formerly Hema), a unique proprietary grocery retail format and new retail pathfinder in the fast-moving consumer goods category, Tmall Global, Intime (Note 4(g)) and Lazada (Note 4(i)). Revenue from the sales of goods is recognized when the control over the promised goods is transferred to customers. Receipts of fees in respect of all other incidental goods or services provided by the Company that are distinct performance obligations are recognized when the control of the underlying goods or services is transferred to the customers. The amounts relating to these incidental services are not material to the Company’s total revenue for each of the periods presented. |
Cost of revenue | (h) Cost of revenue Cost of revenue consists primarily of logistics costs, cost of inventories, bandwidth and co-location fees, depreciation and maintenance expenses for servers and computers, call centers and other equipment, content acquisition costs, staff costs and share-based compensation expense, traffic acquisition costs, payment processing fees and other related incidental expenses that are directly attributable to the Company’s principal operations. |
Product development expenses | (i) Product development expenses Product development expenses consist primarily of staff costs and share-based compensation expense for research and development personnel and other expenses that are directly attributable to the development of new technologies and products for the businesses of the Company, such as the development of the Internet infrastructure, applications, operating systems, software, databases and networks. The Company expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing websites or the development of software and website content. Costs incurred in the development phase are capitalized and amortized over the estimated product life. However, since the inception of the Company, the amount of costs qualifying for capitalization has been insignificant. As a result, all website and software development costs have been expensed as incurred. |
Sales and marketing expenses | (j) Sales and marketing expenses Sales and marketing expenses consist primarily of online and offline advertising expenses, promotion expenses, staff costs and share-based compensation expense, sales commissions and other related incidental expenses that are incurred directly to attract or retain consumers and merchants for the Company’s marketplaces, mobile products, transaction and service platforms as well as entertainment distribution platforms. The Company expenses the costs of producing advertisements at the time production occurs, and expenses the costs of delivering advertisements in the period in which the advertising space or airtime is used. Advertising and promotional expenses totaled RMB8,799 million, RMB16,814 million and RMB22,013 million during the years ended March 31, 2017, 2018 and 2019, respectively. |
Share-based compensation | (k) Share-based compensation Share-based awards granted are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair values of restricted share units (“RSUs”) and restricted shares are determined with reference to the fair value of the underlying shares and the fair value of share options is generally determined using the Black-Scholes valuation model. Share-based awards granted to non-employees are initially measured at fair value on the grant date and re-measured at each reporting date through the vesting date. The value is recognized as an expense over the respective service period, net of estimated forfeitures. Share-based compensation expense, when recognized, is charged to the consolidated income statements with the corresponding entry to additional paid-in capital, liability or noncontrolling interests as disclosed in Note 2(d). On each measurement date, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including the fair value of the underlying shares, expected life and expected volatility. The Company recognizes the impact of any revisions to the original forfeiture rate assumptions in the consolidated income statements, with a corresponding adjustment to equity. |
Other employee benefits | (l) Other employee benefits The Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. During the years ended March 31, 2017, 2018 and 2019, contributions to the plan amounting to RMB2,710 million, RMB3,587 million and RMB5,608 million, respectively, were charged to the consolidated income statements. The Company also makes payments to other defined contribution plans and defined benefit plans for the benefit of employees employed by subsidiaries outside of the PRC. Amounts contributed during the years ended March 31, 2017, 2018 and 2019 were insignificant. |
Income taxes | (m) Income taxes The Company accounts for income taxes using the liability method, under which deferred income taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that the asset will not be realizable in the foreseeable future. Deferred taxes are also recognized on the undistributed earnings of subsidiaries, which are presumed to be transferred to the parent company and are subject to withholding taxes, unless there is sufficient evidence to show that the subsidiary has invested or will invest the undistributed earnings indefinitely or that the earnings will be remitted in a tax-free liquidation. The Company adopts ASC 740 “Income Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended March 31, 2017, 2018 and 2019. |
Government grants | (n) Government grants Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt and when all conditions attached to the grants are fulfilled. |
Leases | (o) Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments (net of any incentives received from the lessor) are recognized in the consolidated income statements on a straight-line basis over the lease terms. The Company had no significant capital leases for the years ended March 31, 2017, 2018 and 2019. |
Cash and cash equivalents | (p) Cash and cash equivalents The Company considers all short-term, highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. Cash and cash equivalents primarily represent bank deposits, fixed deposits with maturities of less than three months and investments in money market funds. As of March 31, 2018 and 2019, the Company had certain amounts of cash held in accounts managed by Alipay in connection with the provision of online and mobile commerce and related services for a total amount of RMB1,687 million and RMB3,720 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. |
Short-term investments | (q) Short-term investments Short-term investments consist primarily of investments in fixed deposits with maturities between three months and one year and investments in money market funds or other investments that the Company has the intention to redeem within one year. As of March 31, 2018 and 2019, the investments in fixed deposits that were recorded as short-term investments amounted to RMB2,919 million and RMB961 million, respectively. As of the same dates, the Company had certain amounts of short-term investments held in accounts managed by Alipay for a total amount of RMB890 million and nil, respectively. |
Accounts receivable | (r) Accounts receivable Accounts receivable represents the amounts that the Company has an unconditional right to consideration. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts. The allowance for doubtful accounts is estimated based upon the Company’s assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the customers’ ability to pay. |
Inventories | (s) Inventories Inventories mainly consist of merchandise available for sale. They are accounted for using the weighted average cost and stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. |
Investment securities | (t) Investment securities Investment securities represent the Company’s investments in equity securities that are not accounted for under the equity method or cost method, as well as other investments which primarily consist of debt investments. (i) In April 2018, the Company adopted ASU 2016-01, “Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” including related technical corrections and improvements issued within ASU 2018-13. ASU 2016-01 amended various aspects of the recognition, measurement, presentation, and disclosure for financial instruments, and simplified the impairment assessment and enhanced the disclosure requirements of equity investments. Prior to the adoption of ASU 2016-01, equity securities that have readily determinable fair values and were not accounted for using the equity method were classified as available-for-sale, and were carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity. Upon the adoption of ASU 2016-01, the Company carries these equity securities at fair value with unrealized gains and losses recorded in the consolidated income statements. Unrealized gains recorded in accumulated other comprehensive income as of March 31, 2018 related to equity securities previously classified as available-for-sale, in the amount of RMB8,196 million, net of tax, were reclassified into retained earnings as of April 1, 2018. In addition, prior to the adoption of ASU 2016-01, the cost method was used to account for certain equity investments in privately held companies over which the Company neither has control nor significant influence through investments in common stock or in-substance common stock. Upon the adoption of ASU 2016-01, the Company no longer accounts for these equity securities using the cost method. Beginning on April 1, 2018, the Company elected to record a majority of equity investments in privately held companies using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same issuer that were completed on or after April 1, 2018. These equity securities, which amounted to RMB59,942 million as of March 31, 2018, were previously classified under investments in equity investees (Note 2(u)) and were reclassified into investment securities on the consolidated balance sheets as of April 1, 2018. The consolidated balance sheet as of March 31, 2018 was not retrospectively adjusted. Equity investments in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities. In computing realized gains and losses on equity securities, the Company determines cost based on amounts paid using the average cost method. Dividend income is recognized when the right to receive the payment is established. (ii) Debt investments are generally stated at amortized cost. The maturities of these debt investments generally range from one to ten years. In addition, the Company has elected the fair value option for certain investments including convertible bonds subscribed. The fair value option permits the irrevocable election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The investments accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated income statements. Interest income from debt investments is recognized using the effective interest method which is reviewed and adjusted periodically based on changes in estimated cash flows. |
Investments in equity investees | (u) Investments in equity investees The Company applies the equity method to account for equity investments in common stock or in-substance common stock, according to ASC 323 “Investments — Equity Method and Joint Ventures,” over which it has significant influence but does not own a majority equity interest or otherwise control. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in other comprehensive income. The Company records its share of the results of the equity investees on a one quarter in arrears basis. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity investee represents goodwill and intangible assets acquired. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors the Company considers in its determination include the financial condition, operating performance and the prospects of the equity investee; other company specific information such as recent financing rounds; the geographic region, market and industry in which the equity investee operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. Prior to the adoption of ASU 2016-01, investments in equity investees also included certain equity investments in privately held companies over which the Company neither has control nor significant influence through investments in common stock or in-substance common stock, which were accounted for under the cost method. Under the cost method, the Company carried the investment at cost and recognized income to the extent of dividends received from the distribution of the equity investee’s post-acquisition profits. Upon the adoption of ASU 2016-01, the Company no longer accounts for these equity securities using the cost method, and RMB59,942 million were reclassified into investment securities (Note 2(t)) as of April 1, 2018. The consolidated balance sheet as of March 31, 2018 was not retrospectively adjusted. |
Property and equipment, net | (v) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and any impairment loss. Depreciation is computed using the straight-line method with no residual value based on the estimated useful lives of the various classes of assets, which range as follows: Computer equipment and software 3 – 5 years Furniture, office and transportation equipment 3 – 10 years Buildings 20 – 50 years Property improvements shorter of remaining lease period or estimated useful life Construction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated income statements. |
Land use rights | ( w) Land use rights Land use rights represent lease prepayments to the local government authorities. Land use rights are carried at cost less accumulated amortization and any impairment loss. Amortization is provided to write off the cost of lease prepayments on a straight-line basis over the period of the right which is 30 – 50 years. As of March 31, 2019, the Company revised the presentation to report land use rights under prepayments, receivables and other assets (Note 12) on the consolidated balance sheet. Accordingly, land use rights, net as of March 31, 2018 in the amount of RMB9,377 million was reclassified to prepayments, receivables and other assets to conform with the current year presentation. |
Intangible assets other than licensed copyrights | (x) Intangible assets other than licensed copyrights Intangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are recognized and measured at fair value upon acquisition. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: User base and customer relationships 1 – 16 years Trade names, trademarks and domain names 3 – 20 years Developed technology and patents 2 – 5 years Non-compete agreements over the contracted term of up to 6 years |
Licensed copyrights | (y) Licensed copyrights Licensed copyrights related to titles to movies, television series, variety shows, animations and other video content acquired from external parties are carried at the lower of unamortized cost or net realizable value. The amortization period for the licensed content vary depending on the type of content, which typically ranges from six months to ten years. Licensed copyrights are presented on the consolidated balance sheets as current assets under prepayments, receivables and other assets, or non-current assets under intangible assets, net, based on estimated time of usage. Licensed copyrights are generally amortized using an accelerated method based on historical viewership consumption patterns. Estimates of the consumption patterns for licensed copyrights are reviewed periodically and revised if necessary. For the years ended March 31, 2017, 2018 and 2019, amortization expenses in connection with the licensed copyrights of RMB3,886 million, RMB6,111 million and RMB11,391 million were recorded in cost of revenue within the Company’s digital media and entertainment segment. On a periodic basis, the Company evaluates the program usefulness of its licensed copyrights pursuant to the guidance in ASC 920 “Entertainment — Broadcasters,” which provides that the rights be reported at the lower of unamortized cost or estimated net realizable value. When there is a change in the expected usage of licensed copyrights, the Company estimates the net realizable value of licensed copyrights to determine if any impairment exists. The net realizable value of licensed copyrights is determined by estimating the expected cash flows from advertising and membership fees, less any direct costs, over the remaining useful lives of the licensed copyrights. The Company estimates these cash flows for each category of content separately. Estimates that impact these cash flows include anticipated levels of demand for the Company’s advertising services and the expected selling prices of the Company’s advertisements on the entertainment distribution platforms. For the years ended March 31, 2017, 2018 and 2019, impairment charges in connection with the licensed copyrights of RMB857 million, RMB801 million and RMB2,843 million were recorded in cost of revenue within the Company’s digital media and entertainment segment. |
Goodwill | (z) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the quantitative impairment test is performed. In performing the two-step quantitative impairment test, the first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. |
Impairment of long-lived assets other than goodwill and licensed copyrights | (aa) Impairment of long-lived assets other than goodwill and licensed copyrights The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If the assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the years ended March 31, 2017, 2018 and 2019. |
Derivatives and hedging | (ab) Derivatives and hedging All contracts that meet the definition of a derivative are recognized on the consolidated balance sheets as either assets or liabilities and recorded at fair value. Changes in the fair value of derivatives are either recognized periodically in the consolidated income statements or in other comprehensive income depending on the use of the derivatives and whether they qualify for hedge accounting and are so designated as cash flow hedges, fair value hedges or net investment hedges. To qualify for hedge accounting, the hedge relationship is designated and formally documented at inception, detailing the particular risk management objective and strategy for the hedge (which includes the item and risk that is being hedged), the derivative that is being used and how hedge effectiveness is being assessed. A derivative has to be effective in accomplishing the objective of offsetting either changes in fair value or cash flows for the risk being hedged. The effectiveness of the hedging relationship is evaluated on a prospective and retrospective basis using qualitative and quantitative measures of correlation. Qualitative methods may include comparison of critical terms of the derivative to those of the hedged item. Quantitative methods include a comparison of the changes in the fair value or discounted cash flow of the hedging instrument to that of the hedged item. A hedging relationship is considered effective if the results of the hedging instrument are within a ratio of 80% to 125% of the results of the hedged item. Interest rate swaps Interest rate swaps designated as hedging instruments to hedge against the cash flows attributable to recognized assets or liabilities or forecasted payments may qualify as cash flow hedges. The Company entered into interest rate swap contracts to swap floating interest payments related to certain borrowings for fixed interest payments to hedge the interest rate risk associated with certain forecasted payments and obligations. The effective portion of changes in the fair value of interest rate swaps that are designated and qualify as cash flow hedges is recognized in accumulated other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in interest and investment income, net in the consolidated income statements. Amounts in accumulated other comprehensive income are reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings. Forward exchange contracts Forward exchange contracts designated as hedging instruments to hedge against the future changes in currency exposure of net investments in foreign operations may qualify as net investment hedges. The Company entered into forward exchange contracts to hedge the foreign currency risk associated with investments in net assets of certain subsidiaries with operations in the PRC of which the functional currency is RMB. The effective portion of the changes in fair value of the forward exchange contracts that are designated and qualify as net investment hedges is recognized in accumulated other comprehensive income to offset the cumulative translation adjustments relating to those subsidiaries. The gain or loss relating to the ineffective portion, which is measured based on changes in forward exchange rates, is recognized immediately in other income, net in the consolidated income statements. Amounts accumulated are removed from accumulated other comprehensive income and recognized in the consolidated income statements upon disposal of those subsidiaries. Once the hedge becomes ineffective, hedge accounting is discontinued prospectively. Changes in the fair value of the derivatives not qualified for hedge accounting are reported in the consolidated income statements. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. |
Bank borrowing and unsecured senior notes | (ac) Bank borrowings and unsecured senior notes Bank borrowings and unsecured senior notes are recognized initially at fair value, net of upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees. Upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees are recorded as a reduction of the proceeds received and the related accretion is recorded as interest expense in the consolidated income statements over the estimated term of the facilities using the effective interest method. |
Merchant deposits | (ad) Merchant deposits The Company collects deposits representing an annual upfront service fee from merchants on Tmall and AliExpress before the beginning of each calendar year. These deposits are initially recorded as a liability by the Company. The deposits are refundable to a merchant if the level of sales volume that is generated by that merchant on Tmall or AliExpress meets the target during the period. If the transaction volume target is not met at the end of each calendar year, the relevant deposits will become non-refundable. These merchant deposits are accounted for as variable consideration at an amount that is estimated at contract inception. The estimate is updated at the end of each reporting period and when there are changes in circumstances during the reporting period. Merchant deposits are recognized as commission revenue in the consolidated income statements when the likelihood of refund to the merchant is considered remote based on the patterns of sales volume generated by the merchant during the reporting period. |
Deferred revenue and customer advances | (ae) Deferred revenue and customer advances Deferred revenue and customer advances generally represent cash received from customers that relate to goods or services to be provided in the future. Deferred revenue, mainly relating to membership fees and cloud computing services revenue, is stated at the amount of service fees received less the amount previously recognized as revenue upon the provision of the respective services to customers. |
Commitments and contingencies | (af) Commitments and contingencies In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for the contingencies are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses these contingent liabilities, which inherently involves judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in legal proceedings, the Company, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of the reasonably possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
Treasury shares | (ag) Treasury shares The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement of the treasury shares, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. The treasury shares account includes 20,789,596 and 18,737,922 ordinary shares issued at par to wholly-owned subsidiaries of the Company for the purpose of certain equity investment plans for management as of March 31, 2018 and 2019, respectively. The Company applies the treasury stock method for the accounting of the reciprocal relationship in which Suning (Note 4(y)) held ordinary shares of the Company. The treasury shares account included 4,162,856 ordinary shares representing the Company’s share of Suning’s investment in the Company as of March 31, 2018. Suning has disposed all of its equity interest in the Company as of March 31, 2019. |
Statutory reserves | (ah) Statutory reserves In accordance with the relevant regulations and their articles of association, subsidiaries of the Company incorporated in the PRC are required to allocate at least 10% of their after-tax profit determined based on the PRC accounting standards and regulations to the general reserve until the reserve has reached 50% of the relevant subsidiary’s registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the respective board of directors of the subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances or cash dividends. During the years ended March 31, 2017, 2018 and 2019, appropriations to the general reserve amounted to RMB836 million, RMB298 million and RMB690 million, respectively. No appropriations to the enterprise expansion fund and staff welfare and bonus fund have been made by the Company. |
Reclassification of comparative figures | (ai) Reclassification of comparative figures In April 2018, the Company adopted ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” As a result of adopting this new accounting update, the Company retrospectively adjusted the consolidated statements of cash flows to include restricted cash and escrow receivables in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. The impact of the retrospective reclassification on cash flows from operating activities, investing activities and effect of exchange rate changes for the year ended March 31, 2018 was an increase of RMB634 million, an increase of RMB126 million and an increase of RMB2 million, respectively. The impact of the retrospective application on cash flows from operating activities, investing activities and effect of exchange rate changes for the year ended March 31, 2017 was an increase of RMB2,528 million, a decrease of RMB1,215 million and a decrease of RMB4 million, respectively. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Schedule of financial information of the VIEs in the PRC | As of March 31, 2018 2019 (in millions of RMB) Cash and cash equivalents and short-term investments 7,507 15,019 Investments in equity investees and investment securities 26,611 28,230 Accounts receivable, net of allowance 5,733 9,540 Amounts due from non-VIE subsidiaries of the Company 1,949 6,398 Prepayment for licensed copyrights 1,736 2,633 Property and equipment and intangible assets 6,788 6,161 Others 4,139 5,992 Total assets 54,463 73,973 Amounts due to non-VIE subsidiaries of the Company 41,090 60,273 Accruals for purchase of licensed copyrights 3,686 3,498 Accrued expenses, accounts payable and other liabilities 10,931 14,594 Deferred revenue and customer advances 4,997 7,213 Deferred tax liabilities 995 448 Total liabilities 61,699 86,026 Year ended March 31, 2017 2018 2019 (in millions of RMB) Revenue (i) 24,712 32,898 66,674 Net loss (4,688) (6,167) (7,063) Net cash provided by operating activities 3,220 5,547 4,163 Net cash used in investing activities (2,557) (20,366) (8,503) Net cash provided by financing activities 2,688 14,286 12,373 (i) Revenue generated by the VIEs are primarily from cloud computing services, digital media and entertainment services, local consumer services and others. |
Schedule of estimated useful lives of property and equipment | Computer equipment and software 3 – 5 years Furniture, office and transportation equipment 3 – 10 years Buildings 20 – 50 years Property improvements shorter of remaining lease period or estimated useful life |
Schedule of estimated useful lives of identifiable intangible assets other than licensed copyrights | User base and customer relationships 1 – 16 years Trade names, trademarks and domain names 3 – 20 years Developed technology and patents 2 – 5 years Non-compete agreements over the contracted term of up to 6 years |
Significant restructuring tra_2
Significant restructuring transaction, mergers and acquisitions and investments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Alibaba Pictures | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 11,032 Amortizable intangible assets (ii) User base and customer relationships 2,269 License 934 Developed technology and patents 533 Trade names, trademarks and domain names 221 Goodwill 20,052 Deferred tax liabilities (844) Noncontrolling interests (iii) (16,899) Total 17,298 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 1,069 - fair value of previously held equity interests 16,229 Total 17,298 (i) Net assets acquired primarily included cash, cash equivalents and short-term investments of RMB4,444 million and investment securities of RMB4,365 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 15 years and a weighted-average amortization period of 11.3 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the market price per share as of the acquisition date. |
Ele.me | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net liabilities assumed (i) (6,327) Amortizable intangible assets (ii) User base and customer relationships 13,702 Trade names, trademarks and domain names 5,764 Non-compete agreements 4,188 Developed technology and patents 1,415 Goodwill 34,572 Deferred tax liabilities (481) Noncontrolling interests (iii) (5,015) Total 47,818 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 30,133 ‑ contingent cash consideration (iv) 4,790 ‑ fair value of previously held equity interests 12,895 Total 47,818 (i) Net liabilities assumed primarily included payables to merchants and other logistics providers of RMB4,259 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding ten years and a weighted-average amortization period of 5.8 years. (iii) Fair value of the noncontrolling interests was estimated based on the equity value of Ele.me derived by the purchase consideration, adjusted for a discount for control premium. (iv) The amount is payable contingent upon the satisfaction of certain non-compete provisions by the respective selling equity holders, and will not exceed RMB4,790 million. |
Koubei | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 3,534 Amortizable intangible assets (ii) User base and customer relationships 18,330 Trade names, trademarks and domain names 1,158 Developed technology and patents 322 Goodwill 36,544 Deferred tax liabilities (2,372) Noncontrolling interests (iii) (17,682) Total 39,834 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 3,196 ‑ non-cash consideration 14,648 ‑ fair value of previously held equity interests 21,990 Total 39,834 (i) Net assets acquired primarily included cash and cash equivalents of RMB4,475 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 13 years and a weighted-average amortization period of 6.3 years. (iii) Fair value of the noncontrolling interests as of the acquisition date was estimated based on the purchase price to acquire newly issued preferred shares of Local Services Holdco that was paid by new and existing investors in December 2018, with certain adjustments made to reflect other factors that may affect the fair value estimation. |
Trendyol | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 1,009 Amortizable intangible assets (ii) Trade names, trademarks and domain names 660 User base and customer relationships 388 Developed technology and patents 30 Goodwill 3,938 Deferred tax liabilities (228) Noncontrolling interests (iii) (817) Total 4,980 (i) Net assets acquired primarily included cash and cash equivalents of RMB1,206 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 15 years and a weighted-average amortization period of 12.5 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price per share as of the acquisition date, adjusted for a discount for control premium, and includes the fair value of an option granted to the founders of Trendyol to acquire additional interests in Trendyol from the Company as of the date of acquisition. |
Kaiyuan | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 2,750 Amortizable intangible assets (ii) Trade names, trademarks and domain names 203 Goodwill 1,047 Deferred tax liabilities (638) Total 3,362 (i) Net assets acquired primarily included property and equipment of RMB3,458 million and bank borrowings of RMB651 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods of ten years. |
Cainiao Network | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 23,937 Amortizable intangible assets (ii) User base and customer relationships 9,344 Trade names, trademarks and domain names 4,965 Developed technology and patents 459 Goodwill 32,418 Deferred tax assets 920 Deferred tax liabilities (5,197) Noncontrolling interests (iii) (33,189) Total 33,657 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 5,322 ‑ fair value of previously held equity interests 28,335 Total 33,657 (i) Net assets acquired primarily included the cash consideration of RMB5,322 million, property and equipment of RMB15,144 million and bank borrowings of RMB5,288 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 16 years and a weighted-average amortization period of 14.3 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price per share as of the acquisition date. |
Intime | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 20,920 Amortizable intangible assets (ii) Trade names, trademarks and domain names 1,131 User base and customer relationships 72 Developed technology and patents 16 Goodwill 4,757 Deferred tax liabilities (2,790) Noncontrolling interests (iii) (6,301) Total 17,805 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 11,131 - fair value of previously held equity interests 6,674 Total 17,805 (i) Net assets acquired primarily included property and equipment of RMB23,492 million and bank borrowings of RMB4,110 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding eleven years and a weighted-average amortization period of 10.1 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price of HK$10.00 per share in the privatization. |
Youku | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 5,923 Amortizable intangible assets (ii) Trade names, trademarks and domain names 4,047 User base and customer relationships 284 Developed technology and patents 143 Others 175 Goodwill 26,395 Deferred tax assets 73 Deferred tax liabilities (1,167) Noncontrolling interests (iii) (773) Total 35,100 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 28,724 - fair value of previously held equity interests 6,376 Total 35,100 (i) Net assets acquired primarily included cash and cash equivalents and short-term interest-bearing deposits with total balance of RMB5,857 million and licensed copyrights of RMB703 million as of the date of acquisition. (ii) Acquired amortizable intangible assets had estimated amortization periods not exceeding 20 years and a weighted-average amortization period of 17.4 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the purchase price of US$27.60 per ADS in the step acquisition. |
Lazada | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired 2,874 Amortizable intangible assets (i) User base and customer relationships 2,014 Non-compete agreements 959 Trade names, trademarks and domain names 292 Developed technology and patents 79 Goodwill 5,216 Deferred tax assets 616 Deferred tax liabilities (1,027) Noncontrolling interests (ii) (4,416) Total 6,607 (i) Acquired amortizable intangible assets had estimated amortization periods not exceeding three years and a weighted-average amortization period of 2.5 years. (ii) Fair value of the noncontrolling interests was estimated with reference to the purchase price per share as of the acquisition date. The noncontrolling interests is classified as mezzanine equity due to certain put and call arrangements with other Lazada shareholders. |
Other acquisitions, summarized | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Year ended March 31, 2017 2018 2019 (in millions of RMB) Net assets (liabilities) 2,315 (58) 2,133 Identifiable intangible assets 2,903 411 2,560 Deferred tax liabilities (412) (60) (545) 4,806 293 4,148 Noncontrolling interests and mezzanine equity (8,365) (77) (2,993) Net identifiable (liabilities) assets (3,559) 216 1,155 Goodwill 11,797 618 6,465 Total purchase consideration 8,238 834 7,620 Fair value of previously held equity interests (1,169) (133) (1,778) Purchase consideration settled (6,602) (575) (5,053) Contingent/deferred consideration as of year end 467 126 789 Total purchase consideration is comprised of: - cash consideration 7,069 701 5,842 - fair value of previously held equity interests 1,169 133 1,778 Total 8,238 834 7,620 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Schedule of revenue by segment | Year ended March 31, 2017 (i) 2018 (i) 2019 (in millions of RMB) Core commerce: China commerce retail (ii) - Customer management 77,530 114,285 145,684 - Commission 34,066 46,525 61,847 - Others 2,513 15,749 40,084 114,109 176,559 247,615 China commerce wholesale (iii) 5,679 7,164 9,988 International commerce retail (iv) 7,336 14,216 19,558 International commerce wholesale (v) 6,001 6,625 8,167 Cainiao logistics services (vi) — 6,759 14,885 Local consumer services (vii) — — 18,058 Others 755 2,697 5,129 Total core commerce 133,880 214,020 323,400 Cloud computing (viii) 6,663 13,390 24,702 Digital media and entertainment (ix) 14,733 19,564 24,077 Innovation initiatives and others (x) 2,997 3,292 4,665 Total 158,273 250,266 376,844 (i) Prior period amounts have not been adjusted due to the adoption of ASC 606 under the modified retrospective method (Note 2(g)). (ii) Revenue from China commerce retail is primarily generated from the Company’s China retail marketplaces and includes revenue from customer management, commissions and sales of goods. (iii) Revenue from China commerce wholesale is primarily generated from 1688.com and includes revenue from membership fees and customer management. (iv) Revenue from international commerce retail is primarily generated from Lazada (Note 4(i)) and AliExpress and includes revenue from sales of goods, commissions, logistics services and customer management. (v) Revenue from international commerce wholesale is primarily generated from Alibaba.com and includes membership fees and revenue from customer management. (vi) Revenue from Cainiao logistics services represents revenue from the domestic and cross-border fulfillment services provided by Cainiao Network (Note 4(f)). (vii) Revenue from local consumer services primarily represents revenue from the provision of delivery services and other services provided by Ele.me (Note 4(c)). (viii) Revenue from cloud computing is primarily generated from the provision of services, such as elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, and machine learning platform and IoT services. (ix) Revenue from digital media and entertainment is primarily generated from Youku (Note 4(h)) and UCWeb and includes revenue from customer management and membership fees. (x) Revenue from innovation initiatives and others is primarily generated from businesses such as Amap and other innovation initiatives. Other revenue also includes the SME Annual Fee received from Ant Financial and its affiliates (Note 4(a)). |
Schedule of revenue by type | Year ended March 31, 2017 (i) 2018 (i) 2019 (in millions of RMB) Customer management services P4P and display marketing 83,581 119,822 151,654 Other customer management services 5,706 9,076 13,962 Total customer management services 89,287 128,898 165,616 Commission 37,848 52,411 81,086 Membership fees 10,638 13,823 19,139 Logistics services — 6,759 23,397 Cloud computing services 6,663 13,390 24,702 Sales of goods 3,889 18,719 46,942 Other revenue (ii) 9,948 16,266 15,962 Total 158,273 250,266 376,844 (i) Prior period amounts have not been adjusted due to the adoption of ASC 606 under the modified retrospective method (Note 2(g)). (ii) Other revenue includes other value‑added services provided through various platforms and the SME Annual Fee received from Ant Financial and its affiliates (Note 4(a)). |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other income, net | |
Other income, net | Year ended March 31, 2017 2018 2019 (in millions of RMB) Profit Share Payments (Note 4(a)) 2,086 3,444 517 Government grants (i) 451 555 666 Amortization of restructuring reserve (Note 4(a)) (264) (264) (264) Exchange differences 2,328 (1,679) (1,950) Others 1,485 2,104 1,252 Total 6,086 4,160 221 (i) Government grants mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development. |
Income tax expenses (Tables)
Income tax expenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income tax expenses | |
Schedule of composition of income tax expenses | Year ended March 31, 2017 2018 2019 (in millions of RMB) Current income tax expense 13,495 17,223 18,750 Deferred taxation 281 976 (2,197) 13,776 18,199 16,553 |
Schedule of composition of deferred tax assets and liabilities | As of March 31, 2018 2019 (in millions of RMB) Deferred tax assets Licensed copyrights 1,191 2,475 Tax losses carried forward and others (i) 9,467 21,896 10,658 24,371 Valuation allowance (8,476) (21,838) Total deferred tax assets 2,182 2,533 Deferred tax liabilities Identifiable intangible assets (9,181) (12,659) Withholding tax on undistributed earnings (ii) (8,375) (7,901) Investment securities and others (1,756) (1,957) Total deferred tax liabilities (19,312) (22,517) Net deferred tax liabilities (17,130) (19,984) (i) Others is primarily comprised of property and equipment, deferred revenue and customer advances, as well as accrued expenses which are not deductible until paid under PRC tax laws. (ii) The related deferred tax liabilities as of March 31, 2018 and 2019 were provided on the assumption that 100% of the distributable reserves of the major PRC subsidiaries will be distributed as dividends, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB28.6 billion and RMB49.7 billion, respectively. |
Schedule of reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company | Year ended March 31, 2017 2018 2019 (in millions of RMB, except per share data) Income before income tax and share of result of equity investees 60,029 100,403 96,221 Income tax computed at statutory EIT rate (25%) 15,007 25,101 24,055 Effect of different tax rates available to different jurisdictions (772) 392 (1,568) Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC (10,507) (14,782) (17,687) Non-deductible expenses and non-taxable income, net (i) 6,090 1,780 8,168 Tax savings from additional deductions on certain research and development expenses available for subsidiaries incorporated in the PRC (ii) (1,694) (2,330) (5,774) Withholding tax on the earnings distributed and anticipated to be remitted 3,009 4,393 3,954 Change in valuation allowance, deduction of certain share-based compensation expense and others (iii) 2,643 3,645 5,405 Income tax expenses 13,776 18,199 16,553 Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) 4.21 5.79 6.86 (i) Expenses not deductible for tax purposes and non-taxable income primarily represent investment income (loss), share-based compensation expense, interest expense and exchange differences. Investment income (loss) during the year ended March 31, 2017 includes gains from the revaluation of previously held equity interest relating to the acquisition of Youku (Note 4(h)). Investment income (loss) during the year ended March 31, 2018 includes gains from the revaluation of previously held equity interests relating to the acquisitions of Cainiao Network (Note 4(f)) and Intime (Note 4(g)). Investment income (loss) during the year ended March 31, 2019 includes gains from the revaluation of previously held equity interest relating to the acquisitions of Koubei (Note 4(c)) and Alibaba Pictures (Note 4(b)). (ii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. (iii) This amount primarily represents valuation allowance against the deferred tax assets associated with operating losses, amortization of licensed copyrights and other timing differences which may not be realized as a tax benefit. |
Share-based awards (Tables)
Share-based awards (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Share-based awards | |
Schedule of share-based compensation expense by function | Year ended March 31, 2017 2018 2019 (in millions of RMB) Cost of revenue 3,893 5,505 8,915 Product development expenses 5,712 7,374 15,378 Sales and marketing expenses 1,772 2,037 4,411 General and administrative expenses 4,618 5,159 8,787 Total 15,995 20,075 37,491 |
RSUs | |
Share-based awards | |
Summary of changes in the RSUs | Weighted- average Number grant date of RSUs fair value US$ Awarded and unvested as of April 1, 2018 68,424,858 100.93 Granted 24,863,988 181.74 Vested (24,337,392) 84.31 Cancelled/forfeited (4,604,961) 135.06 Awarded and unvested as of March 31, 2019 64,346,493 136.00 Expected to vest as of March 31, 2019 (i) 53,175,748 134.59 (i) |
Options | |
Share-based awards | |
Summary of changes in the share options | Weighted Weighted average Number average remaining of share exercise contractual options price life US$ (in years) Outstanding as of April 1, 2018 7,938,015 70.10 Exercised (795,809) 45.02 Cancelled/forfeited/expired (25,000) 76.81 Outstanding as of March 31, 2019 7,117,206 72.88 3.7 Vested and exercisable as of March 31, 2019 3,258,039 75.32 3.6 Vested and expected to vest as of March 31, 2019 (i) 7,016,598 72.78 3.7 (i) Share options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding share options. |
Schedule of fair value assumptions | Year ended March 31, 2017 Risk-free interest rate (i) 1.23% – 1.30% Expected dividend yield (ii) 0% Expected life (years) (iii) 4.38 Expected volatility (iv) 31.7% – 33.2% (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be nil as the Company has no history or expectation of paying a dividend on its ordinary shares. (iii) Expected life of share options is based on the average between the vesting period and the contractual term for each grant. (iv) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. |
Partner Capital Investment Plan | Subscription rights | |
Share-based awards | |
Schedule of fair value assumptions | Year ended March 31, 2017 2018 2019 Risk-free interest rate (i) 1.86 % 2.07 % 2.94 % Expected dividend yield (ii) 0 % 0 % 0 % Expected life (years) (iii) 8.25 8.25 8.25 Expected volatility (iv) 39.0 % 34.2 % 33.0 % (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share-based awards in effect at the time of grant. (ii) Expected dividend yield is assumed to be nil as the Company has no history or expectation of paying a dividend on its ordinary shares. (iii) Expected life of the rights is based on management’s estimate on timing of redemption for ordinary shares by the participants. (iv) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to expected life of each right. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings per share | |
Schedule of computation of basic and diluted net income per share/ADS | Year ended March 31, 2017 2018 2019 (in millions of RMB, except share data and per share data) Numerator: Net income attributable to ordinary shareholders for computing net income per ordinary share - basic 43,675 63,985 87,600 Dilution effect arising from share-based awards issued by a subsidiary and equity investees (11) (21) (42) Net income attributable to ordinary shareholders for computing net income per ordinary share - diluted 43,664 63,964 87,558 Shares (denominator): Weighted average number of shares used in calculating net income per ordinary share - basic (million shares) 2,493 2,553 2,580 Adjustments for dilutive RSUs and share options (million shares) 80 57 43 Weighted average number of shares used in calculating net income per ordinary share - diluted (million shares) 2,573 2,610 2,623 Net income per ordinary share/ADS - basic (RMB) 17.52 25.06 33.95 Net income per ordinary share/ADS - diluted (RMB) 16.97 24.51 33.38 |
Restricted cash and escrow re_2
Restricted cash and escrow receivables (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Restricted cash and escrow receivables | |
Schedule of restricted cash and escrow receivables | As of March 31, 2018 2019 (in millions of RMB) Money received or receivable on escrow services offered by AliExpress (i) 3,171 8,354 Others 246 164 3,417 8,518 (i) The amount represents customer funds held by external payment networks outside the PRC relating to AliExpress with a corresponding liability recorded under escrow money payable. |
Investment securities and fai_2
Investment securities and fair value disclosure (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Investment securities and fair value disclosure | |
Schedule of investment securities at cost and at fair value | As of March 31, 2018 Gross Gross Provision Original unrealized unrealized for decline Carrying cost gains losses in value value (in millions of RMB) Equity securities: Listed equity securities 20,303 10,990 (1,587) (983) 28,723 Equity securities accounted for under the fair value option 498 67 — — 565 Debt investments (i) 13,898 — — (179) 13,719 34,699 11,057 (1,587) (1,162) 43,007 As of March 31, 2019 Gross Gross Provision Original unrealized unrealized for decline Carrying cost gains losses in value value (in millions of RMB) Equity securities: Listed equity securities 57,121 15,968 (11,887) — 61,202 Investments in privately held companies (ii) 81,894 14,107 (78) (13,250) 82,673 Debt investments (i) 23,843 44 (20) (725) 23,142 162,858 30,119 (11,985) (13,975) 167,017 (i) Debt investments include convertible bonds accounted for under the fair value option, for which the fair value as of March 31, 2018 and 2019 were RMB1,256 million and RMB2,742 million, respectively. Unrealized gains recorded on these convertible bonds in the consolidated income statements were nil and RMB44 million during the years ended March 31, 2018 and 2019, respectively. Debt investments also include investments in certain wealth management products amounting to RMB6.9 billion as of March 31, 2018 and 2019. These investments were pledged to a financial institution in the PRC to secure a financing provided by this financial institution amounting to RMB6.9 billion to one of the Company’s founders and an equity holder in certain of the Company’s variable interest entities, to support his minority investment through a PRC limited partnership in Wasu Media Holding Co., Ltd., a company listed on the Shenzhen Stock Exchange. (ii) Upon the adoption of ASU 2016-01, certain investments in privately held companies that were previously accounted for under the cost method with a carrying value of RMB59,942 million as of March 31, 2018 were reclassified into investment securities as of April 1, 2018. |
Schedule of equity securities, a summary of gains and losses, including impairment losses, recognized in interest and investment income, net | Year ended March 31, 2017 2018 2019 (in millions of RMB) Net unrealized gains recognized during the period for equity securities still held as of the end of the period — Net gains recognized during the period from disposals of equity securities during the period Net gains recognized during the period on equity securities |
Table of assets and liabilities that are measured at fair value on a recurring basis and categorized using the fair value hierarchy | As of March 31, 2018 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Short-term investments 6,086 — — 6,086 Restricted cash and escrow receivables 3,417 — — 3,417 Listed equity securities 28,723 — — 28,723 Equity securities accounted for under the fair value option — — 565 565 Convertible bonds accounted for under the fair value option — — 1,256 1,256 Interest rate swap contracts — 542 — 542 38,226 542 1,821 40,589 Liabilities Contingent consideration in relation to investments and acquisitions — — 120 120 — — 120 120 As of March 31, 2019 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Short-term investments 3,262 — — 3,262 Restricted cash and escrow receivables 8,518 — — 8,518 Listed equity securities 61,202 — — 61,202 Convertible bonds accounted for under the fair value option 244 — 2,498 2,742 Interest rate swap contracts — 331 — 331 Others 604 1,444 1,159 3,207 73,830 1,775 3,657 79,262 Liabilities Contingent consideration in relation to investments and acquisitions — — 5,122 5,122 — — 5,122 5,122 |
Schedule of rolling forward of convertible bonds categorized within Level 3 under the fair value hierarchy | Amounts (in millions of RMB) Balance as of April 1, 2017 — Additions 1,264 Foreign currency translation adjustments (8) Balance as of March 31, 2018 1,256 Additions 1,153 Foreign currency translation adjustments 89 Balance as of March 31, 2019 2,498 |
Schedule of rolling forward of contingent consideration in relation to investments and acquisitions categorized within Level 3 under the fair value hierarchy | Amounts (in millions of RMB) Balance as of April 1, 2017 921 Payment (770) Net decrease in fair value (17) Foreign currency translation adjustments (14) Balance as of March 31, 2018 120 Additions (i) 4,790 Net decrease in fair value (45) Foreign currency translation adjustments 257 Balance as of March 31, 2019 5,122 (i) Additions during the year ended March 31, 2019 were related to the acquisition of Ele.me (Note 4(c)). |
Prepayments, receivables and _2
Prepayments, receivables and other assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Prepayments, receivables and other assets | |
Schedule of components of prepayments, receivables and other assets | As of March 31, 2018 2019 (in millions of RMB) Current: Accounts receivable, net of allowance 7,284 13,771 Inventories 4,535 8,534 Amounts due from related companies (i) 8,080 7,445 VAT receivables, net of allowance (ii) 8,915 7,347 Prepaid cost of revenue, sales and marketing and other expenses 4,283 7,049 Advances to/receivables from customers, merchants and others 3,700 4,689 Deferred direct selling costs (iii) 1,643 1,990 Licensed copyrights (Note 2(y)) 964 1,126 Interest receivables 672 867 Loan receivables, net 419 490 Others 2,733 5,282 43,228 58,590 Non-current: Prepayment for acquisition of property and equipment 5,933 7,643 Film costs and prepayment for licensed copyrights and others 5,614 7,205 Land use rights, net (iv) 9,377 6,419 Deferred tax assets (Note 7) 2,182 2,533 Fair value of interest rate swap contracts 542 331 Deferred direct selling costs (iii) 188 281 Others 2,438 3,606 26,274 28,018 (i) Amounts due from related companies primarily represent balances arising from transactions with Ant Financial and its subsidiaries (Notes 4(a) and 21). The balances are unsecured, interest free and repayable within the next twelve months. (ii) VAT receivables mainly represent VAT receivable from relevant PRC tax authorities arising from the Company’s VAT refund service. The Company provides advance settlement of relevant VAT refund amounts to its customers prior to receiving the VAT refund from tax authorities. To provide this service, the Company relies on short-term banking facilities and takes on credit risk if the Company fails to recover the prepaid VAT amount. (iii) The Company is obligated to pay certain costs upon the receipt of membership fees from merchants or other customers, which primarily consist of sales commissions. The membership fees are initially deferred and recognized as revenue in the consolidated income statements in the period in which the services are rendered. As such, the related costs are also initially deferred and recognized in the consolidated income statements in the same period as the related service fees are recognized. (iv) As of March 31, 2019, the Company revised the presentation to report land use rights under prepayments, receivables and other assets on the consolidated balance sheet. Accordingly, land use rights, net as of March 31, 2018 in the amount of RMB9,377 million was reclassified to prepayments, receivables and other assets to conform with the current year presentation. |
Investments in equity investe_2
Investments in equity investees (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Investments in equity investees | |
Investments in equity investees | Cost method Equity method Total (in millions of RMB) Balance as of April 1, 2017 35,404 84,964 120,368 Additions (i) 34,121 26,391 60,512 Share of results, other comprehensive income and other reserves (ii) — (3,660) (3,660) Disposals (3,051) (474) (3,525) Transfers (iii) (1,725) (9,011) (10,736) Impairment loss (iv) (1,753) (18,153) (19,906) Foreign currency translation adjustments (3,054) (299) (3,353) Balance as of March 31, 2018 59,942 79,758 139,700 Transfer of cost method investments (v) (59,942) — (59,942) Balance as of April 1, 2018 — 79,758 79,758 Additions (i) — 14,360 14,360 Share of results, other comprehensive income and other reserves (ii) — 1,905 1,905 Disposals — (1,160) (1,160) Transfers (iii) — (10,153) (10,153) Impairment loss (iv) — (493) (493) Foreign currency translation adjustments — 237 237 Balance as of March 31, 2019 — 84,454 84,454 (i) Details of the significant additions of the investments in equity investees are set out in Note 4. (ii) Share of results, other comprehensive income and other reserves include the share of results of the equity investees, the gain or loss arising from the deemed disposal of the equity investees and the amortization of basis differences. The amount excludes the expenses relating to the share-based awards underlying the equity of the Company and Ant Financial granted to employees of certain equity investees (Note 8(d)). (iii) During the year ended March 31, 2018, transfers under the equity method were primarily related to the consolidation of Cainiao Network (Note 4(f)) and Intime (Note 4(g)) upon the acquisition of control by the Company. During the year ended March 31, 2019, transfers under the equity method were primarily related to the consolidation of Alibaba Pictures (Note 4(b)). (iv) Impairment charges in connection with the equity method investments of RMB245 million, RMB18,153 million and RMB493 million were recorded in share of results of equity investees in the consolidated income statements for the years ended March 31, 2017, 2018 and 2019, respectively. Impairment charges in connection with the cost method investments of RMB2,125 million and RMB1,753 million were recorded in interest and investment income, net in the consolidated income statements for the years ended March 31, 2017 and 2018, respectively. Out of the impairment charges relating to the equity method investments for the year ended March 31, 2018, RMB18,116 million was related to the Company’s investment in Alibaba Pictures (Note 4(b)). The fair value measurements with respect to the impairments of other equity investees were individually insignificant and utilized a number of different unobservable inputs not subject to meaningful aggregation. (v) |
Schedule of summarized financial information for all of the Company's equity method investments | Year ended March 31, 2017 2018 2019 (in millions of RMB) Operating data: Revenue 125,701 284,706 488,775 Cost of revenue (109,790) (242,068) (405,074) (Loss) Income from operations (9,071) (7,072) 3,840 Net (loss) income (6,743) 195 2,923 As of March 31, 2018 2019 (in millions of RMB) Balance sheet data: Current assets 200,742 257,502 Non-current assets 184,310 222,484 Current liabilities 162,340 205,272 Non-current liabilities 26,107 34,191 Noncontrolling interests and mezzanine equity 16,586 10,151 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property and equipment, net | |
Schedule of property and equipment, net | As of March 31, 2018 2019 (in millions of RMB) Buildings and property improvements 45,909 61,940 Computer equipment and software 33,852 53,187 Construction in progress 5,110 6,959 Furniture, office and transportation equipment 2,057 3,889 86,928 125,975 Less: accumulated depreciation and amortization (20,439) (33,945) Net book value 66,489 92,030 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Intangible assets, net | |
Schedule of intangible assets, net | As of March 31, 2018 2019 (in millions of RMB) User base and customer relationships 13,510 47,913 Trade names, trademarks and domain names 14,198 22,592 Non-compete agreements (i) 7,820 12,528 Developed technology and patents 5,463 9,510 Licensed copyrights (Note 2(y)) 9,182 9,225 Others 225 1,358 50,398 103,126 Less: accumulated amortization and impairment (22,933) (34,850) Net book value 27,465 68,276 (i) |
Schedule of estimated future aggregate amortization expenses | Amounts (in millions of RMB) For the year ending March 31, 2020 14,418 2021 11,362 2022 8,779 2023 7,793 2024 7,378 Thereafter 18,546 68,276 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill | |
Schedule of changes in the carrying amount of goodwill | Digital media Innovation Core Cloud and initiatives and commerce computing entertainment others Total (in millions of RMB) Balance as of April 1, 2017 79,855 368 40,521 4,676 125,420 Additions (i) 37,458 — 335 — 37,793 Impairment — — (494) — (494) Foreign currency translation adjustments (515) — (55) — (570) Balance as of March 31, 2018 116,798 368 40,307 4,676 162,149 Additions (i) 80,760 1,118 20,165 575 102,618 Foreign currency translation adjustments 157 (25) 36 — 168 Balance as of March 31, 2019 197,715 1,461 60,508 5,251 264,935 (i) During the year ended March 31, 2019, additions under the core commerce segment and the digital media and entertainment segment were primarily related to the acquisitions of Koubei and Ele.me (Note 4(c)) and the acquisition of Alibaba Pictures (Note 4(b)), respectively. |
Deferred revenue and customer_2
Deferred revenue and customer advances (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Deferred revenue and customer advances | |
Schedule of deferred revenue and customer advances | As of March 31, 2018 2019 (in millions of RMB) Deferred revenue 13,350 18,448 Customer advances 9,940 13,814 23,290 32,262 Less: current portion (22,297) (30,795) Non-current portion 993 1,467 |
Accrued expenses, accounts pa_2
Accrued expenses, accounts payable and other liabilities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses, accounts payable and other liabilities | |
Schedule of accrued expenses, accounts payable and other liabilities | As of March 31, 2018 2019 (in millions of RMB) Current: Payables and accruals for cost of revenue and sales and marketing expenses 40,363 51,958 Accrued bonus and staff costs, including sales commission 11,212 14,034 Payable to merchants and third party marketing affiliates 6,584 12,554 Other deposits and advances received 6,271 10,447 Payables and accruals for purchases of property and equipment 6,095 5,548 Amounts due to related companies (i) 1,996 4,570 Other taxes payable (ii) 2,382 3,448 Contingent and deferred consideration in relation to investments and acquisitions 807 3,301 Accrued professional services and administrative expenses 1,371 2,361 Accrued donations 1,215 1,738 Accrual for interest expense 885 924 Others (iii) 1,984 6,828 81,165 117,711 Non-current: Contingent and deferred consideration in relation to investments and acquisitions 408 3,872 Others 1,637 2,315 2,045 6,187 (i) Amounts due to related companies primarily represent balances arising from the transactions with Ant Financial and its subsidiaries (Note 21). The balances are unsecured, interest free and repayable within the next twelve months. (ii) Other taxes payable represent business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Company. (iii) Other current liabilities as of March 31, 2019 include a settlement provision of US$250 million (RMB1,679 million) for a U.S. federal class action lawsuit that has been pending since January 2015 (Note 24(g)). |
Bank borrowings (Tables)
Bank borrowings (Tables) - Bank borrowings | 12 Months Ended |
Mar. 31, 2019 | |
Bank borrowings | |
Analysis of bank borrowings | As of March 31 2018 2019 (in millions of RMB) Current portion: Short-term other borrowings (i) 6,028 7,356 Non-current portion: US$4.0 billion syndicated loan denominated in US$ (ii) 24,957 26,780 Long-term other borrowings (iii) 9,196 8,647 34,153 35,427 (i) As of March 31, 2018 and 2019, the Company had short-term borrowings from banks which were repayable within one year or on demand and charged interest rates ranging from 2.2% to 6.1% and 2.9% to 19.0% per annum, respectively. As of March 31, 2019, the weighted average interest rate of these borrowings was 4.1% per annum. The borrowings are primarily denominated in RMB or US$. (ii) As of March 31, 2018 and 2019, the Company had a five-year US$4.0 billion syndicated loan, which was entered into with a group of eight lead arrangers. The loan has a five-year bullet maturity and is priced at 110 basis points over LIBOR. The related floating interest payments are hedged by certain interest rate swap contracts entered into by the Company. The proceeds of the loan were used for general corporate and working capital purposes (including acquisitions). In May 2019, the loan terms were modified such that the interest rate of the loan was reduced to 85 basis points over LIBOR and the maturity of the loan was extended to May 2024. (iii) As of March 31, 2018 and 2019, the Company had long-term borrowings from banks with weighted average interest rates of approximately 4.5% and 4.6% per annum, respectively. The borrowings are all denominated in RMB. |
Schedule of borrowings under the credit facilities are due | Principal amounts (in millions of RMB) Within 1 year 7,358 Between 1 to 2 years 841 Between 2 to 3 years 27,986 Between 3 to 4 years 577 Between 4 to 5 years 559 Beyond 5 years 5,576 42,897 |
Unsecured senior notes (Tables)
Unsecured senior notes (Tables) - Unsecured senior notes | 12 Months Ended |
Mar. 31, 2019 | |
Unsecured senior notes | |
Summary of the unsecured senior notes | As of March 31, Effective 2018 2019 interest rate (in millions of RMB) US$2,250 million 2.500% notes due 2019 14,083 15,110 2.67 % US$1,500 million 3.125% notes due 2021 9,365 10,044 3.26 % US$700 million 2.800% notes due 2023 4,372 4,687 2.90 % US$2,250 million 3.600% notes due 2024 14,050 15,061 3.68 % US$2,550 million 3.400% notes due 2027 15,848 16,989 3.52 % US$700 million 4.500% notes due 2034 4,339 4,650 4.60 % US$1,000 million 4.000% notes due 2037 6,219 6,663 4.06 % US$1,750 million 4.200% notes due 2047 10,880 11,655 4.25 % US$1,000 million 4.400% notes due 2057 6,216 6,658 4.44 % Carrying value 85,372 91,517 Unamortized discount and debt issuance costs 624 589 Total principal amounts of unsecured senior notes 85,996 92,106 Less: current portion of principal amounts of unsecured senior notes — (15,127) Non-current portion of principal amounts of unsecured senior notes 85,996 76,979 |
Schedule of future principal payments due | Principal amounts (in millions of RMB) Within 1 year 15,127 Between 1 to 2 years — Between 2 to 3 years 10,084 Between 3 to 4 years — Between 4 to 5 years 4,706 Thereafter 62,189 92,106 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Ant Financial and its affiliates | |
Related party transactions | |
Schedule of transactions | Year ended March 31, 2017 2018 2019 (in millions of RMB) Amounts earned by the Company Profit Share Payments (i) 2,086 3,444 517 SME Annual Fee (ii) 847 956 954 Administrative and support services (iii) 531 676 1,017 Commission on transactions (iii) 409 497 591 Cloud computing revenue (iii) 264 482 761 Other amounts earned (iii) 144 529 898 4,281 6,584 4,738 Amounts incurred by the Company Payment processing fee (iv) 5,487 6,295 8,252 Other amounts incurred (iii) 952 1,894 1,328 6,439 8,189 9,580 (i) In 2014, the Company entered into the 2014 IPLA with Ant Financial. Under the 2014 IPLA, the Company receives the Profit Share Payments amounting to the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Financial, subject to certain adjustments (Note 4(a)). Profit Share Payments were recognized in consolidated income statements, net of the costs incurred for the provision of the software technology services reimbursed by Ant Financial. The amounts reimbursed by Ant Financial to the Company were RMB245 million, RMB37 million and RMB106 million for the years ended March 31, 2017, 2018 and 2019, respectively. (ii) The Company entered into software system use and service agreements with Ant Financial in 2014. In calendar years 2016 to 2017, the Company received the SME Annual Fee equal to 2.5% of the average daily balance of the SME loans made by Ant Financial and its affiliates. In calendar years 2018 to 2021, the Company received or will receive the SME Annual Fee equal to the amount paid in calendar year 2017 (Note 4(a)). (iii) The Company has other commercial arrangements, treasury management arrangements and cost sharing arrangements with Ant Financial, its subsidiaries and affiliates on various sales and marketing, cloud computing, treasury management, and other administrative and support services. In addition, the Company entered into agreements with Ant Financial and its affiliates under which the Company receives a cash reimbursement for RSUs and options relating to the certain shares granted to employees of Ant Financial, its subsidiaries and affiliates, upon the vesting of the RSUs and options. (iv) The Company and Alipay, among others, entered into a commercial agreement in 2011 whereby the Company receives payment processing services in exchange for a payment processing fee, which was recognized in cost of revenue. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Capital expenditures | |
Commitments | |
Schedule of commitments | As of March 31, 2018 2019 (in millions of RMB) Contracted but not provided for: Purchase of property and equipment 3,181 5,656 Construction of corporate campuses 2,607 3,576 5,788 9,232 |
Office facility and transportation equipment | |
Commitments | |
Schedule of operating lease commitments for office facility and transportation equipment | As of March 31, 2018 2019 (in millions of RMB) No later than 1 year 2,760 4,984 Later than 1 year and no later than 5 years 7,652 10,675 More than 5 years 11,940 15,346 Total 22,352 31,005 |
Co-location, bandwidth fees, licensed copyrights and marketing expenses | |
Commitments | |
Schedule of commitments | As of March 31, 2018 2019 (in millions of RMB) No later than 1 year 19,737 21,768 Later than 1 year and no later than 5 years 12,097 22,291 More than 5 years 3,672 4,964 Total 35,506 49,023 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment information | |
Schedule of each segment's revenue, income from operations and adjusted EBITA | Year ended March 31, 2017 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 133,880 6,663 14,733 2,997 158,273 — 158,273 Income (Loss) from operations 74,180 (1,681) (9,882) (6,798) 55,819 (7,764) 48,055 Add: share-based compensation expense 5,994 1,201 1,454 3,017 11,666 4,329 15,995 Add: amortization of intangible assets 2,258 4 1,886 656 4,804 318 5,122 Adjusted EBITA (ii) 82,432 (476) (6,542) (3,125) 72,289 (3,117) Adjusted EBITA margin (iii) 62 % (7) % (44) % (104) % Year ended March 31, 2018 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 214,020 13,390 19,564 3,292 250,266 — 250,266 Income (Loss) from operations 102,743 (3,085) (14,140) (6,901) 78,617 (9,303) 69,314 Add: share-based compensation expense 8,466 2,274 2,142 3,707 16,589 3,486 20,075 Add: amortization of intangible assets 2,891 12 3,693 198 6,794 326 7,120 Add: impairment of goodwill — — — — — 494 494 Adjusted EBITA (ii) 114,100 (799) (8,305) (2,996) 102,000 (4,997) Adjusted EBITA margin (iii) 53 % (6) % (42) % (91) % Year ended March 31, 2019 Digital media Innovation Core Cloud and initiatives and Total commerce computing entertainment others segments Unallocated (i) Consolidated (in millions of RMB, except percentages) Revenue 323,400 24,702 24,077 4,665 376,844 — 376,844 Income (Loss) from operations 109,312 (5,508) (20,046) (11,795) 71,963 (14,879) 57,084 Add: share-based compensation expense 17,694 4,332 2,988 5,774 30,788 6,703 37,491 Add: amortization of intangible assets 9,161 18 1,262 50 10,491 236 10,727 Add: settlement of U.S. federal class action lawsuit — — — — — 1,679 1,679 Adjusted EBITA (ii) 136,167 (1,158) (15,796) (5,971) 113,242 (6,261) Adjusted EBITA margin (iii) 42 % (5) % (66) % (128) % |
Schedule of reconciliation from the adjusted EBITA to the consolidated net income | Year ended March 31, 2017 2018 2019 (in millions of RMB) Total Segments Adjusted EBITA 72,289 102,000 113,242 Unallocated (i) (3,117) (4,997) (6,261) Share-based compensation expense (15,995) (20,075) (37,491) Amortization of intangible assets (5,122) (7,120) (10,727) Impairment of goodwill — (494) — Settlement of U.S. federal class action lawsuit — — (1,679) Consolidated income from operations 48,055 69,314 57,084 Interest and investment income, net 8,559 30,495 44,106 Interest expenses (2,671) (3,566) (5,190) Other income, net 6,086 4,160 221 Income tax expenses (13,776) (18,199) (16,553) Share of results of equity investees (5,027) (20,792) 566 Consolidated net income 41,226 61,412 80,234 |
Schedule of depreciation and amortization expenses of property and equipment and land use rights by segment | Year ended March 31, 2017 2018 2019 (in millions of RMB) Core commerce 2,124 3,784 6,672 Cloud computing 1,438 3,047 6,580 Digital media and entertainment 752 986 1,182 Innovation initiatives and others and unallocated (i) 970 972 528 Total depreciation and amortization expenses of property and equipment and land use rights 5,284 8,789 14,962 (i) Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. (ii) Adjusted EBITA represents net income before (i) interest and investment income, net, other income, net, interest expense, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets and impairment of goodwill, and (iii) settlement of a U.S. federal class action lawsuit, which are not reflective of the Company’s core operating performance. (iii) Adjusted EBITA margin represents Adjusted EBITA divided by revenue. |
Organization and principal ac_2
Organization and principal activities (Details) | 12 Months Ended | ||
Mar. 31, 2019segmentitem | Mar. 31, 2018segment | Mar. 31, 2017segment | |
Organization and principal activities | |||
Number of operating segment | 4 | 4 | 4 |
Number of reportable segment | 4 | 4 | 4 |
Number of key distribution platforms | item | 2 |
Summary of significant accoun_4
Summary of significant accounting policies- VIEs (Details) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019USD ($)¥ / $ | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥)¥ / $ | |
Convenience translation | |||||
Convenience exchange rate (RMB to USD) | ¥ / $ | 6.7112 | 6.7112 | |||
Accounts receivable, net of allowance | ¥ 7,284,000,000 | ¥ 13,771,000,000 | |||
Total assets | $ 143,801 | 717,124,000,000 | 965,076,000,000 | ||
Accrued expenses, accounts payable and other liabilities | 17,540 | 81,165,000,000 | 117,711,000,000 | ||
Deferred revenue and customer advances | 23,290,000,000 | 32,262,000,000 | |||
Deferred tax liabilities | 3,355 | 19,312,000,000 | 22,517,000,000 | ||
Total liabilities | 52,104 | 277,685,000,000 | 349,674,000,000 | ||
Revenue | 56,152 | ¥ 376,844,000,000 | 250,266,000,000 | ¥ 158,273,000,000 | |
Net loss | 11,955 | 80,234,000,000 | 61,412,000,000 | 41,226,000,000 | |
Net cash provided by operating activities | 22,496 | 150,975,000,000 | 125,805,000,000 | 82,854,000,000 | |
Net cash used in investing activities | (22,509) | (151,060,000,000) | (83,764,000,000) | (79,579,000,000) | |
Net cash provided by financing activities | $ (1,101) | (7,392,000,000) | 20,359,000,000 | 32,914,000,000 | |
Assets, except for registered capital and PRC statutory reserves of VIEs, that can only be used to settle obligations of the respective VIEs | 0 | ||||
Consolidated VIEs | |||||
Convenience translation | |||||
Cash and cash equivalents and short-term investments | 7,507,000,000 | 15,019,000,000 | |||
Investments in equity investees and investment securities | 26,611,000,000 | 28,230,000,000 | |||
Accounts receivable, net of allowance | 5,733,000,000 | 9,540,000,000 | |||
Amounts due from non-VIE subsidiaries of the Company | 1,949,000,000 | 6,398,000,000 | |||
Prepayment for licensed copyrights | 1,736,000,000 | 2,633,000,000 | |||
Property and equipment and intangible assets | 6,788,000,000 | 6,161,000,000 | |||
Others | 4,139,000,000 | 5,992,000,000 | |||
Total assets | 54,463,000,000 | 73,973,000,000 | |||
Amounts due to non-VIE subsidiaries of the Company | 41,090,000,000 | 60,273,000,000 | |||
Accruals for purchase of licensed copyrights | 3,686,000,000 | 3,498,000,000 | |||
Accrued expenses, accounts payable and other liabilities | 10,931,000,000 | 14,594,000,000 | |||
Deferred revenue and customer advances | 4,997,000,000 | 7,213,000,000 | |||
Deferred tax liabilities | 995,000,000 | 448,000,000 | |||
Total liabilities | 61,699,000,000 | ¥ 86,026,000,000 | |||
Revenue | 66,674,000,000 | 32,898,000,000 | 24,712,000,000 | ||
Net loss | (7,063,000,000) | (6,167,000,000) | (4,688,000,000) | ||
Net cash provided by operating activities | 4,163,000,000 | 5,547,000,000 | 3,220,000,000 | ||
Net cash used in investing activities | (8,503,000,000) | (20,366,000,000) | (2,557,000,000) | ||
Net cash provided by financing activities | ¥ 12,373,000,000 | ¥ 14,286,000,000 | ¥ 2,688,000,000 |
Summary of significant accoun_5
Summary of significant accounting policies- Various (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2019CNY (¥)segment | Mar. 31, 2018CNY (¥)segment | Mar. 31, 2017CNY (¥)segment | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Apr. 01, 2018CNY (¥) | |
Business combinations and noncontrolling interests | ||||||
Net loss attributable to mezzanine equity holders | ¥ 438 | ¥ 930 | ¥ 1,961 | |||
Segment reporting | ||||||
Number of operating segment | segment | 4 | 4 | 4 | |||
Number of reportable segment | segment | 4 | 4 | 4 | |||
Revenue recognition | ||||||
Practical expedient, unsatisfied performance obligations | true | |||||
Practical expedient, financing component | true | |||||
Sales and marketing expenses | ||||||
Advertising and promotional expenses | ¥ 22,013 | ¥ 16,814 | ¥ 8,799 | |||
Leases | ||||||
Capital Lease Obligations | 0 | 0 | ¥ 0 | |||
Cash and cash equivalents | ||||||
Amount of cash and cash equivalents | 199,309 | $ 28,308 | 189,976 | |||
Short term investments | ||||||
Short-term investments- fixed deposits | 2,919 | 961 | ||||
Short-term investments | 6,086 | $ 486 | 3,262 | |||
Investment securities | ||||||
Equity securities accounted for using cost method | 59,942 | 35,404 | ||||
Investments in equity investees | ||||||
Period of time within which results of equity method earnings are recognized in arrears | 3 months | |||||
Equity securities accounted for using cost method | 59,942 | 35,404 | ||||
Minimum | ||||||
Investment securities | ||||||
Maturities of debt investments | 1 year | |||||
Maximum | ||||||
Investment securities | ||||||
Maturities of debt investments | 10 years | |||||
Retained earnings | ||||||
Revenue recognition | ||||||
Reclassification | 8,196 | |||||
Investment securities | ||||||
Reclassification | 8,196 | |||||
ASU 2014-09 | Adjustment | Retained earnings | ||||||
Revenue recognition | ||||||
Reclassification | ¥ 0 | |||||
Investment securities | ||||||
Reclassification | 0 | |||||
ASU 2016-01 | Adjustment | ||||||
Investment securities | ||||||
Equity securities accounted for using cost method | (59,942) | (59,942) | ||||
Investment securities | 59,942 | |||||
Investments in equity investees | ||||||
Equity securities accounted for using cost method | (59,942) | (59,942) | ||||
Investment securities | 59,942 | |||||
ASU 2016-01 | Adjustment | Accumulated other comprehensive income (loss) | ||||||
Revenue recognition | ||||||
Reclassification | (8,196) | |||||
Investment securities | ||||||
Reclassification | (8,196) | |||||
ASU 2016-01 | Adjustment | Retained earnings | ||||||
Revenue recognition | ||||||
Reclassification | 8,196 | |||||
Investment securities | ||||||
Reclassification | ¥ 8,196 | |||||
Cash held in accounts managed by Alipay | ||||||
Cash and cash equivalents | ||||||
Amount of cash and cash equivalents | 1,687 | 3,720 | ||||
Short term investments held in accounts managed by Alipay | ||||||
Short term investments | ||||||
Short-term investments | 890 | ¥ 0 | ||||
Government-mandated multi-employer defined contribution plan in PRC | ||||||
Other employee benefits | ||||||
Contribution amount charged to the consolidated income statements | ¥ 5,608 | ¥ 3,587 | ¥ 2,710 |
Summary of significant accoun_6
Summary of significant accounting policies- Long-lived assets (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Summary of significant accounting policies | ||||
Land use rights, net | ¥ 6,419 | ¥ 9,377 | ||
Amortization expenses | $ 1,599 | ¥ 10,727 | 7,120 | ¥ 5,122 |
Minimum | ||||
Summary of significant accounting policies | ||||
Period of land use rights | 30 years | 30 years | ||
Terms for movies and television serial dramas | 6 months | 6 months | ||
Maximum | ||||
Summary of significant accounting policies | ||||
Period of land use rights | 50 years | 50 years | ||
Terms for movies and television serial dramas | 10 years | 10 years | ||
User base and customer relationships | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 1 year | 1 year | ||
User base and customer relationships | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 16 years | 16 years | ||
Trade names, trademarks and domain names | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 3 years | 3 years | ||
Trade names, trademarks and domain names | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 20 years | 20 years | ||
Developed technology and patents | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 2 years | 2 years | ||
Developed technology and patents | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 5 years | 5 years | ||
Licenses and copyrights | Cost of revenue | Digital media and entertainment | ||||
Summary of significant accounting policies | ||||
Amortization expenses | ¥ 11,391 | 6,111 | 3,886 | |
Impairment charges | ¥ 2,843 | 801 | ¥ 857 | |
Non-compete agreements | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets | 6 years | 6 years | ||
Adjustment | Land use rights | ||||
Summary of significant accounting policies | ||||
Land use rights, net | (9,377) | |||
Adjustment | Prepayments, receivables and other assets | ||||
Summary of significant accounting policies | ||||
Land use rights, net | ¥ 9,377 | |||
Computer equipment and software | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 3 years | 3 years | ||
Computer equipment and software | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 5 years | 5 years | ||
Furniture, office and transportation equipment | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 3 years | 3 years | ||
Furniture, office and transportation equipment | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 10 years | 10 years | ||
Buildings | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 20 years | 20 years | ||
Buildings | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment | 50 years | 50 years |
Summary of significant accoun_7
Summary of significant accounting policies- Others (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($)shares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2017CNY (¥) | |
Statutory reserves | ||||
Percentage of after-tax profit from subsidiaries incorporated in the PRC required to be appropriated to the statutory reserves | 10.00% | 10.00% | ||
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% | 50.00% | ||
Reclassification of comparative figures | ||||
Impact of the retrospective reclassification on cash flows from operating activities | $ 22,496 | ¥ 150,975 | ¥ 125,805 | ¥ 82,854 |
Impact of the retrospective reclassification on cash flows from investing activities | (22,509) | (151,060) | (83,764) | (79,579) |
Impact of the retrospective reclassification on effect of exchange rate changes | $ 484 | 3,245 | (6,065) | 2,038 |
ASU 2016-18 | Adjustment | ||||
Reclassification of comparative figures | ||||
Impact of the retrospective reclassification on cash flows from operating activities | 634 | 2,528 | ||
Impact of the retrospective reclassification on cash flows from investing activities | 126 | (1,215) | ||
Impact of the retrospective reclassification on effect of exchange rate changes | 2 | (4) | ||
PRC | ||||
Statutory reserves | ||||
Appropriation to statutory reserves | ¥ 690 | ¥ 298 | ¥ 836 | |
Minimum | ||||
Derivatives and hedging | ||||
Ratio determining effective hedging relationship | 80.00% | 80.00% | ||
Maximum | ||||
Derivatives and hedging | ||||
Ratio determining effective hedging relationship | 125.00% | 125.00% | ||
Share repurchase for purpose of certain equity investment plans for management | ||||
Treasury shares | ||||
Number of ordinary shares included in treasury shares account | shares | 18,737,922 | 18,737,922 | 20,789,596 | |
Company's share of an equity method investee's in the Company | Suning | ||||
Treasury shares | ||||
Number of ordinary shares included in treasury shares account | shares | 4,162,856 |
Recent accounting pronounceme_2
Recent accounting pronouncements (Details) - ASU 2016-02 - Forecast adjustment ¥ in Billions | Apr. 01, 2019CNY (¥) |
Recent accounting pronouncements | |
Right-of-use assets | ¥ 24.9 |
Lease liability | ¥ 19.4 |
Significant restructuring tra_3
Significant restructuring transaction, mergers and acquisitions and investments- Restructuring transaction (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018USD ($)employee | Aug. 31, 2014CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2014 | |
Restructuring transaction | |||||||||
Amount of amortization of the excess value recorded | $ 39 | ¥ 264 | ¥ 264 | ¥ 264 | |||||
Profit Share Payments | |||||||||
Restructuring transaction | |||||||||
Amounts earned by the Company | 517 | 3,444 | 2,086 | ||||||
Ant Financial | Planned issuance of equity interest | |||||||||
Restructuring transaction | |||||||||
Consideration for acquisition of equity interest before deducting expenses | 12,200 | ||||||||
Ant Financial | Profit Share Payments | |||||||||
Restructuring transaction | |||||||||
Amounts earned by the Company | 517 | 3,444 | 2,086 | ||||||
Additional fee, as a percentage of pre-tax income | 37.50% | ||||||||
2014 SAPA | Director And Major Shareholder | |||||||||
Restructuring transaction | |||||||||
Value of restructured arrangement in excess of value of pre-existing arrangement, equity contribution by shareholder (in renminbi) | ¥ 1,300 | ||||||||
2014 SAPA | Ant Financial | |||||||||
Restructuring transaction | |||||||||
Expected term of the restructured arrangement | 5 years | ||||||||
Amount of amortization of the excess value recorded | 264 | 264 | 264 | ||||||
2014 SAPA | Ant Financial | Sale of SME loan business and certain other assets | |||||||||
Restructuring transaction | |||||||||
Cash consideration for sale of business | ¥ 3,219 | ||||||||
2014 SAPA | Ant Financial | SME Annual Fee | |||||||||
Restructuring transaction | |||||||||
SME annual fee term (in years) | 7 years | ||||||||
Annual fee as a percentage of the average daily balance (as a percent) | 2.50% | ||||||||
Amounts earned by the Company | ¥ 954 | ¥ 956 | ¥ 847 | ||||||
2014 SAPA | Ant Financial | Planned issuance of equity interest | |||||||||
Restructuring transaction | |||||||||
Maximum percentage of equity interest of related party (as a percent) | 33.00% | ||||||||
2014 SAPA | Ant Financial | Removal of liquidity event payment obligation | |||||||||
Restructuring transaction | |||||||||
Percentage of the equity value of Ant Financial that Company may elect to receive (as a percent) | 37.50% | ||||||||
2014 SAPA | Ant Financial | Removal of liquidity event payment obligation | Maximum | |||||||||
Restructuring transaction | |||||||||
Company's equity interests in Ant Financial that must not be exceeded for the Company to receive one-time payment (as a percent) | 33.00% | ||||||||
2018 amendments | Ant Financial | |||||||||
Restructuring transaction | |||||||||
Percentage of the equity value of Ant Financial, Company agreed to purchase under planned acquisition (as a percent) | 33.00% | ||||||||
2018 SAPA | Ant Financial | Planned issuance of equity interest | |||||||||
Restructuring transaction | |||||||||
Issuance of new securities (as a percent) | 33.00% | ||||||||
2018 SAPA | Ant Financial | Pre-emptive rights | Maximum | |||||||||
Restructuring transaction | |||||||||
Consideration received from related party | $ | $ 1,500 | ||||||||
2018 SAPA | Ant Financial | Corporate governance provisions | |||||||||
Restructuring transaction | |||||||||
Number of officers or employees | employee | 2 | ||||||||
2014 IPLA | Ant Financial | Profit Share Payments | |||||||||
Restructuring transaction | |||||||||
Amounts earned by the Company | $ | $ 517,000 | $ 3,444,000 | $ 2,086,000 | ||||||
Additional fee, as a percentage of pre-tax income | 37.50% |
Significant restructuring tra_4
Significant restructuring transaction, mergers and acquisitions and investments- Alibaba Pictures (Details) ¥ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2019HKD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Feb. 28, 2019 | |
Acquisition | |||||||||
Impairment charges relating to the equity method investments | ¥ 493 | ¥ 18,153 | ¥ 245 | ||||||
Cash consideration | 48,206 | 17,300 | 41,836 | ||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Goodwill | 162,149 | 125,420 | $ 39,477 | ¥ 264,935 | |||||
Total purchase price is comprised of: | |||||||||
- cash consideration | ¥ 48,206 | 17,300 | ¥ 41,836 | ||||||
User base and customer relationships | Maximum | |||||||||
Total purchase price is comprised of: | |||||||||
Estimated amortization periods | 16 years | ||||||||
Developed technology and patents | Maximum | |||||||||
Total purchase price is comprised of: | |||||||||
Estimated amortization periods | 5 years | ||||||||
Trade names, trademarks and domain names | Maximum | |||||||||
Total purchase price is comprised of: | |||||||||
Estimated amortization periods | 20 years | ||||||||
Alibaba Pictures | |||||||||
Acquisition | |||||||||
Cash consideration | $ 1,250 | ¥ 1,069 | |||||||
Equity interest in consolidated subsidiary (as a percent) | 51.00% | 51.00% | |||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Net assets acquired | ¥ 11,032 | ||||||||
Goodwill | 20,052 | ||||||||
Deferred tax liabilities | (844) | ||||||||
Noncontrolling interests | (16,899) | ||||||||
Total | 17,298 | ||||||||
Total purchase price is comprised of: | |||||||||
- cash consideration | $ 1,250 | 1,069 | |||||||
- fair value of previously held equity interests | 16,229 | ||||||||
Total | ¥ 17,298 | ||||||||
Cash, cash equivalents and short-term investments | 4,444 | ||||||||
Investment securities | 4,365 | ||||||||
Weighted average amortization period | 11 years 3 months 18 days | 11 years 3 months 18 days | |||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 5,825 | ||||||||
Alibaba Pictures | Maximum | |||||||||
Total purchase price is comprised of: | |||||||||
Estimated amortization periods | 15 years | 15 years | |||||||
Alibaba Pictures | User base and customer relationships | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | 2,269 | ||||||||
Alibaba Pictures | License | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | 934 | ||||||||
Alibaba Pictures | Developed technology and patents | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | 533 | ||||||||
Alibaba Pictures | Trade names, trademarks and domain names | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | ¥ 221 | ||||||||
Alibaba Pictures | |||||||||
Acquisition | |||||||||
Deconsolidation gain arising from the revaluation of the Company's remaining equity interest | ¥ 24,734 | ||||||||
Impairment charges relating to the equity method investments | ¥ 18,116 | ||||||||
Equity interest (as a percent) | 49.00% |
Significant restructuring tra_5
Significant restructuring transaction, mergers and acquisitions and investments- Acquisitions and integration of Ele.me and Koubei (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||||||||
May 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | May 31, 2018USD ($) | May 31, 2018CNY (¥) | Aug. 31, 2016USD ($) | Aug. 31, 2016CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Aug. 31, 2017USD ($) | Aug. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Nov. 30, 2018 | Jan. 31, 2017 | Mar. 31, 2016CNY (¥) | Dec. 31, 2015 | |
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Goodwill | ¥ 162,149 | ¥ 125,420 | $ 39,477 | ¥ 264,935 | ||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
- cash consideration | ¥ 48,206 | ¥ 17,300 | 41,836 | |||||||||||||||||
Increase in noncontrolling interests | 100 | |||||||||||||||||||
User base and customer relationships | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 16 years | |||||||||||||||||||
Trade names, trademarks and domain names | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 20 years | |||||||||||||||||||
Non-compete agreements | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 6 years | |||||||||||||||||||
Developed technology and patents | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 5 years | |||||||||||||||||||
Ele.me | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Net liabilities assumed | ¥ (6,327) | |||||||||||||||||||
Goodwill | 34,572 | |||||||||||||||||||
Deferred tax liabilities | (481) | |||||||||||||||||||
Noncontrolling interests | (5,015) | |||||||||||||||||||
Total | 47,818 | |||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
- cash consideration | 30,133 | |||||||||||||||||||
- contingent cash consideration | 4,790 | |||||||||||||||||||
- fair value of previously held equity interests | 12,895 | |||||||||||||||||||
Total | 47,818 | |||||||||||||||||||
Payables to merchants and other logistics providers | ¥ 4,259 | |||||||||||||||||||
Weighted average amortization period | 5 years 9 months 18 days | 5 years 9 months 18 days | ||||||||||||||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 1,657 | |||||||||||||||||||
Equity interest held immediately prior to integration (as a percentage) | 90.00% | |||||||||||||||||||
Increase in noncontrolling interests | ¥ 6,715 | |||||||||||||||||||
Increase in additional paid-in capital | 7,515 | |||||||||||||||||||
Ele.me | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 10 years | 10 years | ||||||||||||||||||
Ele.me | User base and customer relationships | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | ¥ 13,702 | |||||||||||||||||||
Ele.me | Trade names, trademarks and domain names | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | 5,764 | |||||||||||||||||||
Ele.me | Non-compete agreements | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | 4,188 | |||||||||||||||||||
Ele.me | Developed technology and patents | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | 1,415 | |||||||||||||||||||
Koubei | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Net assets acquired | 3,534 | |||||||||||||||||||
Goodwill | 36,544 | |||||||||||||||||||
Deferred tax liabilities | (2,372) | |||||||||||||||||||
Noncontrolling interests | (17,682) | |||||||||||||||||||
Total | 39,834 | |||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
- cash consideration | 3,196 | |||||||||||||||||||
- non-cash consideration | 14,648 | |||||||||||||||||||
- fair value of previously held equity interests | 21,990 | |||||||||||||||||||
Total | 39,834 | |||||||||||||||||||
Cash, cash equivalents and short-term investments | ¥ 4,475 | |||||||||||||||||||
Weighted average amortization period | 6 years 3 months 18 days | 6 years 3 months 18 days | ||||||||||||||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 21,990 | |||||||||||||||||||
Equity interest held immediately prior to integration (as a percentage) | 38.00% | |||||||||||||||||||
Koubei | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Estimated amortization periods | 13 years | 13 years | ||||||||||||||||||
Koubei | User base and customer relationships | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | ¥ 18,330 | |||||||||||||||||||
Koubei | Trade names, trademarks and domain names | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | 1,158 | |||||||||||||||||||
Koubei | Developed technology and patents | ||||||||||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||||||||||
Amortizable intangible assets | 322 | |||||||||||||||||||
Ele.me and Koubei | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
- cash consideration | $ 465 | ¥ 3,196 | ||||||||||||||||||
Local Services Holdco | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Equity interest held (as a percentage) | 72.00% | |||||||||||||||||||
Cash consideration for additional equity interest acquired | $ 1,905 | ¥ 13,082 | ||||||||||||||||||
Increase in noncontrolling interests | ¥ 3,216 | |||||||||||||||||||
Local Services Holdco | Subsequent event | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Cash consideration for additional equity interest acquired | $ | $ 450 | |||||||||||||||||||
Ele.me | Maximum | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
- contingent cash consideration | 4,790 | |||||||||||||||||||
Ele.me | Preferred shares | ||||||||||||||||||||
Acquisition | ||||||||||||||||||||
Purchase consideration, cost method | $ 360 | ¥ 2,394 | $ 540 | ¥ 3,512 | $ 864 | ¥ 5,824 | ||||||||||||||
Equity interest (as a percent) | 20.00% | 20.00% | 27.00% | |||||||||||||||||
Ele.me | Commitment to subscribe shares | Preferred shares | ||||||||||||||||||||
Acquisition | ||||||||||||||||||||
Amount committed | 900 | ¥ 5,891 | ||||||||||||||||||
Koubei | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Equity interest (as a percent) | 38.00% | |||||||||||||||||||
Purchase consideration | 3,000 | |||||||||||||||||||
Gain recognized in relation to the contribution of businesses | ¥ 128 | |||||||||||||||||||
Company and Ant Financial | Ele.me | ||||||||||||||||||||
Acquisition | ||||||||||||||||||||
Total investment consideration | $ 5,482 | ¥ 34,923 | ||||||||||||||||||
Company and Ant Financial | Ele.me | Preferred shares | ||||||||||||||||||||
Acquisition | ||||||||||||||||||||
Purchase consideration, cost method | $ 1,200 | ¥ 8,090 | ||||||||||||||||||
Company and Ant Financial | Ele.me | Commitment to subscribe shares | Preferred shares | ||||||||||||||||||||
Acquisition | ||||||||||||||||||||
Amount committed | $ | $ 1,250 | |||||||||||||||||||
Company and Ant Financial | Koubei | ||||||||||||||||||||
Total purchase price is comprised of: | ||||||||||||||||||||
Equity interest (as a percent) | 49.60% |
Significant restructuring tra_6
Significant restructuring transaction, mergers and acquisitions and investments - Trendyol (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jul. 31, 2018USD ($) | Jul. 31, 2018CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
The allocation of the purchase price at the date of acquisition | ||||||||
Goodwill | $ 39,477 | ¥ 264,935 | ¥ 162,149 | ¥ 125,420 | ||||
Trendyol | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Equity interest held in investee (as a percentage) | 85.00% | 85.00% | ||||||
Trade names, trademarks and domain names | Maximum | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Estimated amortization periods | 20 years | |||||||
User base and customer relationships | Maximum | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Estimated amortization periods | 16 years | |||||||
Developed technology and patents | Maximum | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Estimated amortization periods | 5 years | |||||||
Trendyol | ||||||||
Acquisition | ||||||||
Percentage of equity interest acquired | 85.00% | |||||||
Total investment consideration | $ 728 | ¥ 4,980 | ||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Net assets acquired | 1,009 | |||||||
Goodwill | 3,938 | |||||||
Deferred tax liabilities | (228) | |||||||
Noncontrolling interests | (817) | |||||||
Total | 4,980 | |||||||
Cash, cash equivalents and short-term investments | ¥ 1,206 | |||||||
Weighted average amortization period | 12 years 6 months | 12 years 6 months | ||||||
Cash consideration for additional equity interest acquired | $ 2 | ¥ 16 | ||||||
Reduction in noncontrolling interest | ¥ 14 | |||||||
Trendyol | Maximum | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Estimated amortization periods | 15 years | 15 years | ||||||
Trendyol | Trade names, trademarks and domain names | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | ¥ 660 | |||||||
Trendyol | User base and customer relationships | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | 388 | |||||||
Trendyol | Developed technology and patents | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | ¥ 30 |
Significant restructuring tra_7
Significant restructuring transaction, mergers and acquisitions and investments - Kaiyuan (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
The allocation of the purchase price at the date of acquisition | |||||
Goodwill | $ 39,477 | ¥ 264,935 | ¥ 162,149 | ¥ 125,420 | |
Trade names, trademarks and domain names | Maximum | |||||
The allocation of the purchase price at the date of acquisition | |||||
Estimated amortization periods | 20 years | ||||
Kaiyuan | |||||
Acquisition | |||||
Percentage of equity interest acquired | 100.00% | ||||
Total investment consideration | ¥ 3,362 | ||||
The allocation of the purchase price at the date of acquisition | |||||
Net assets acquired | 2,750 | ||||
Goodwill | 1,047 | ||||
Deferred tax liabilities | (638) | ||||
Total | 3,362 | ||||
Property and equipment | 3,458 | ||||
Bank borrowings | ¥ 651 | ||||
Kaiyuan | Maximum | |||||
The allocation of the purchase price at the date of acquisition | |||||
Estimated amortization periods | 10 years | ||||
Kaiyuan | Trade names, trademarks and domain names | |||||
The allocation of the purchase price at the date of acquisition | |||||
Amortizable intangible assets | ¥ 203 |
Significant restructuring tra_8
Significant restructuring transaction, mergers and acquisitions and investments- Cainiao Network (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2017USD ($) | Oct. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Sep. 30, 2017 | |
Acquisition | ||||||||
Cash consideration | ¥ 48,206 | ¥ 17,300 | ¥ 41,836 | |||||
The allocation of the purchase price at the date of acquisition | ||||||||
Goodwill | 162,149 | 125,420 | $ 39,477 | ¥ 264,935 | ||||
Total purchase price is comprised of: | ||||||||
- cash consideration | ¥ 48,206 | 17,300 | ¥ 41,836 | |||||
User base and customer relationships | Maximum | ||||||||
Total purchase price is comprised of: | ||||||||
Estimated amortization periods | 16 years | |||||||
Trade names, trademarks and domain names | Maximum | ||||||||
Total purchase price is comprised of: | ||||||||
Estimated amortization periods | 20 years | |||||||
Developed technology and patents | Maximum | ||||||||
Total purchase price is comprised of: | ||||||||
Estimated amortization periods | 5 years | |||||||
Cainiao Network | ||||||||
Acquisition | ||||||||
Cash consideration | $ 803 | ¥ 5,322 | ||||||
Equity interest in consolidated subsidiary (as a percent) | 51.00% | |||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Net assets acquired | ¥ 23,937 | |||||||
Goodwill | 32,418 | |||||||
Deferred tax assets | 920 | |||||||
Deferred tax liabilities | (5,197) | |||||||
Noncontrolling interests | (33,189) | |||||||
Total | 33,657 | |||||||
Total purchase price is comprised of: | ||||||||
- cash consideration | $ 803 | 5,322 | ||||||
- fair value of previously held equity interests | 28,335 | |||||||
Total | 33,657 | |||||||
Property and equipment | 15,144 | |||||||
Bank borrowings | ¥ 5,288 | |||||||
Estimated amortization periods | 16 years | 16 years | ||||||
Weighted average amortization period | 14 years 3 months 18 days | 14 years 3 months 18 days | ||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 22,442 | |||||||
Cainiao Network | User base and customer relationships | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | ¥ 9,344 | |||||||
Cainiao Network | Trade names, trademarks and domain names | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | 4,965 | |||||||
Cainiao Network | Developed technology and patents | ||||||||
The allocation of the purchase price at the date of acquisition | ||||||||
Amortizable intangible assets | ¥ 459 | |||||||
Cainiao Network | ||||||||
Acquisition | ||||||||
Equity interest (as a percent) | 47.00% |
Significant restructuring tra_9
Significant restructuring transaction, mergers and acquisitions and investments- Intime (Details) $ / shares in Units, ¥ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2018HKD ($) | Oct. 31, 2018CNY (¥) | Feb. 28, 2018HKD ($) | Feb. 28, 2018CNY (¥) | May 31, 2017HKD ($)$ / shares | May 31, 2017CNY (¥) | Jun. 30, 2016CNY (¥)$ / shares | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | May 31, 2016 | |
The allocation of the purchase price at the date of acquisition | |||||||||||||
Goodwill | ¥ 162,149 | ¥ 125,420 | $ 39,477 | ¥ 264,935 | |||||||||
Total purchase price is comprised of: | |||||||||||||
- cash consideration | ¥ 48,206 | 17,300 | ¥ 41,836 | ||||||||||
Trade names, trademarks and domain names | Maximum | |||||||||||||
Total purchase price is comprised of: | |||||||||||||
Estimated amortization periods | 20 years | ||||||||||||
User base and customer relationships | Maximum | |||||||||||||
Total purchase price is comprised of: | |||||||||||||
Estimated amortization periods | 16 years | ||||||||||||
Developed technology and patents | Maximum | |||||||||||||
Total purchase price is comprised of: | |||||||||||||
Estimated amortization periods | 5 years | ||||||||||||
Intime | |||||||||||||
Acquisition | |||||||||||||
Equity interest held in subsidiary (as a percentage) | 99.00% | 99.00% | 74.00% | ||||||||||
Intime | |||||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||||
Net assets acquired | ¥ 20,920 | ||||||||||||
Goodwill | 4,757 | ||||||||||||
Deferred tax liabilities | (2,790) | ||||||||||||
Noncontrolling interests | (6,301) | ||||||||||||
Total | 17,805 | ||||||||||||
Total purchase price is comprised of: | |||||||||||||
- cash consideration | $ 12,605 | 11,131 | |||||||||||
- fair value of previously held equity interests | 6,674 | ||||||||||||
Total | 17,805 | ||||||||||||
Property and equipment | 23,492 | ||||||||||||
Bank borrowings | ¥ 4,110 | ||||||||||||
Weighted average amortization period | 10 years 1 month 6 days | 10 years 1 month 6 days | |||||||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | 1,861 | ||||||||||||
Cash consideration for additional equity interest acquired | $ 203 | ¥ 180 | $ 6,712 | ¥ 5,428 | |||||||||
Reduction in noncontrolling interest | ¥ 162 | ¥ 5,854 | |||||||||||
Intime | Maximum | |||||||||||||
Total purchase price is comprised of: | |||||||||||||
Estimated amortization periods | 11 years | 11 years | |||||||||||
Intime | Trade names, trademarks and domain names | |||||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||||
Amortizable intangible assets | ¥ 1,131 | ||||||||||||
Intime | User base and customer relationships | |||||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||||
Amortizable intangible assets | 72 | ||||||||||||
Intime | Developed technology and patents | |||||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||||
Amortizable intangible assets | ¥ 16 | ||||||||||||
Intime | |||||||||||||
Acquisition | |||||||||||||
Equity interest (as a percent) | 9.90% | ||||||||||||
Conversion price (in HKD per share) | $ / shares | $ 7.13 | ||||||||||||
Percentage of equity interest upon conversion of convertible bond | 28.00% | ||||||||||||
Cost of equity interest | $ 4,758 | ||||||||||||
Allocated to net assets acquired | 4,934 | ||||||||||||
Share price, cancellation (in HKD per share) | $ / shares | $ 10 | ||||||||||||
Intime | Amortizable intangible assets | |||||||||||||
Acquisition | |||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 250 | ||||||||||||
Intime | Deferred tax liabilities | |||||||||||||
Acquisition | |||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | $ 426 |
Significant restructuring tr_10
Significant restructuring transaction, mergers and acquisitions and investments- Youku (Details) $ / shares in Units, ¥ in Millions, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Apr. 30, 2017shares | Apr. 30, 2016USD ($)$ / shares | Apr. 30, 2016CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Apr. 30, 2016CNY (¥) | |
The allocation of the purchase price at the date of acquisition | |||||||||||
Goodwill | ¥ 162,149 | ¥ 125,420 | $ 39,477 | ¥ 264,935 | |||||||
Total purchase price is comprised of: | |||||||||||
- cash consideration | ¥ 48,206 | 17,300 | 41,836 | ||||||||
Trade names, trademarks and domain names | Maximum | |||||||||||
Total purchase price is comprised of: | |||||||||||
Estimated amortization periods | 20 years | ||||||||||
User base and customer relationships | Maximum | |||||||||||
Total purchase price is comprised of: | |||||||||||
Estimated amortization periods | 16 years | ||||||||||
Developed technology and patents | Maximum | |||||||||||
Total purchase price is comprised of: | |||||||||||
Estimated amortization periods | 5 years | ||||||||||
Youku | |||||||||||
Acquisition | |||||||||||
Equity interest held in subsidiary (as a percentage) | 100.00% | 100.00% | 98.00% | ||||||||
Minority interest (as a percent) | 2.00% | ||||||||||
Youku | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Net assets acquired | ¥ 5,923 | ||||||||||
Goodwill | 26,395 | ||||||||||
Deferred tax assets | 73 | ||||||||||
Deferred tax liabilities | (1,167) | ||||||||||
Noncontrolling interests | (773) | ||||||||||
Total | 35,100 | ||||||||||
Total purchase price is comprised of: | |||||||||||
- cash consideration | $ 4,443 | ¥ 28,724 | |||||||||
- fair value of previously held equity interests | 6,376 | ||||||||||
Total | ¥ 35,100 | ||||||||||
Cash and cash equivalents and short-term interest-bearing deposits | 5,857 | ||||||||||
Weighted average amortization period | 17 years 4 months 24 days | 17 years 4 months 24 days | |||||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 518 | ||||||||||
Maximum percentage available to be purchased by the former management and shareholders | 15.00% | ||||||||||
Issuance of ordinary shares to settle options (in shares) | shares | 1.3 | ||||||||||
Restricted share units issued to settle options and contain vesting conditions pursuant to a non compete agreement (in shares) | shares | 3.4 | ||||||||||
Issuance cost | ¥ 994 | ||||||||||
Capital injections | $ 132 | ¥ 870 | |||||||||
Youku | Maximum | |||||||||||
Total purchase price is comprised of: | |||||||||||
Estimated amortization periods | 20 years | 20 years | |||||||||
Youku | Trade names, trademarks and domain names | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Amortizable intangible assets | 4,047 | ||||||||||
Youku | User base and customer relationships | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Amortizable intangible assets | 284 | ||||||||||
Youku | Developed technology and patents | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Amortizable intangible assets | 143 | ||||||||||
Youku | Others | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Amortizable intangible assets | 175 | ||||||||||
Youku | Licensed copyrights of video content | |||||||||||
The allocation of the purchase price at the date of acquisition | |||||||||||
Amortizable intangible assets | ¥ 703 | ||||||||||
Youku | American Depositary Share ("ADS") | |||||||||||
Acquisition | |||||||||||
Purchase price (in USD per share) | $ / shares | $ 27.60 |
Significant restructuring tr_11
Significant restructuring transaction, mergers and acquisitions and investments- Lazada (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2016USD ($) | Apr. 30, 2016CNY (¥)country | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2017CNY (¥) | |
The allocation of the purchase price at the date of acquisition | |||||||||
Goodwill | $ 39,477 | ¥ 162,149 | ¥ 264,935 | ¥ 125,420 | |||||
Lazada | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Equity interest held in subsidiary (as a percentage) | 92.00% | 92.00% | |||||||
User base and customer relationships | Maximum | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Estimated amortization periods | 16 years | 16 years | |||||||
Non-compete agreements | Maximum | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Estimated amortization periods | 6 years | 6 years | |||||||
Trade names, trademarks and domain names | Maximum | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Estimated amortization periods | 20 years | 20 years | |||||||
Developed technology and patents | Maximum | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Estimated amortization periods | 5 years | 5 years | |||||||
Lazada | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Number of countries in which the entity operates | country | 6 | ||||||||
Lazada | |||||||||
Acquisition | |||||||||
Percentage of equity interest acquired | 54.00% | ||||||||
Cash consideration for additional equity interest acquired | $ 1,020 | ¥ 6,607 | $ 1,016 | 6,877 | |||||
The allocation of the purchase price at the date of acquisition | |||||||||
Net assets acquired | 2,874 | ||||||||
Goodwill | 5,216 | ||||||||
Deferred tax assets | 616 | ||||||||
Deferred tax liabilities | (1,027) | ||||||||
Noncontrolling interests | (4,416) | ||||||||
Total | ¥ 6,607 | ||||||||
Weighted average amortization period | 2 years 6 months | 2 years 6 months | |||||||
Capital injections | $ 770 | ¥ 5,222 | 483 | 3,124 | |||||
Reduction in noncontrolling interest | 1,681 | ||||||||
Addition to noncontrolling interest | 400 | ||||||||
Lazada | Subsequent event | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Capital injections | $ | $ 300 | ||||||||
Lazada | Certain management members and employees | |||||||||
Acquisition | |||||||||
Cash consideration for additional equity interest acquired | $ 20 | ¥ 133 | $ 87 | ¥ 578 | |||||
Lazada | Maximum | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Estimated amortization periods | 3 years | 3 years | |||||||
Lazada | User base and customer relationships | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | ¥ 2,014 | ||||||||
Lazada | Non-compete agreements | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | 959 | ||||||||
Lazada | Trade names, trademarks and domain names | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | 292 | ||||||||
Lazada | Developed technology and patents | |||||||||
The allocation of the purchase price at the date of acquisition | |||||||||
Amortizable intangible assets | ¥ 79 |
Significant restructuring tr_12
Significant restructuring transaction, mergers and acquisitions and investments- Other acquisitions (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | |
Other acquisitions | |||||
Goodwill | ¥ 162,149 | ¥ 125,420 | $ 39,477 | ¥ 264,935 | |
Total purchase price is comprised of: | |||||
- cash consideration | ¥ 48,206 | 17,300 | 41,836 | ||
Other acquisitions, summarized | |||||
Other acquisitions | |||||
Net assets (liabilities) | (58) | 2,315 | 2,133 | ||
Identifiable intangible assets | 411 | 2,903 | 2,560 | ||
Deferred tax liabilities | (60) | (412) | (545) | ||
Subtotal | 293 | 4,806 | 4,148 | ||
Noncontrolling interests and mezzanine equity | (77) | (8,365) | (2,993) | ||
Net identifiable (liabilities) assets | 216 | (3,559) | 1,155 | ||
Goodwill | 618 | 11,797 | 6,465 | ||
Total | 834 | 8,238 | 7,620 | ||
Fair value of previously held equity interests | (1,778) | (133) | (1,169) | ||
Purchase consideration settled | (575) | (6,602) | (5,053) | ||
Contingent/deferred consideration as of year end | 126 | 467 | ¥ 789 | ||
Total purchase price is comprised of: | |||||
- cash consideration | 5,842 | 701 | 7,069 | ||
- fair value of previously held equity interests | 1,778 | 133 | 1,169 | ||
Total | 7,620 | 834 | 8,238 | ||
Gain recognized in relation to the revaluation of previously held equity interest relating to the step acquisition | ¥ 715 | ¥ 133 | ¥ 252 |
Significant restructuring tr_13
Significant restructuring transaction, mergers and acquisitions and investments- Equity investments and others (Details) $ / shares in Units, ¥ in Millions, shares in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jul. 31, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Jan. 31, 2018HKD ($) | Jan. 31, 2018CNY (¥) | Oct. 31, 2017CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | May 31, 2016CNY (¥)$ / shares | May 31, 2016CNY (¥)shares | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | Apr. 01, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Jan. 31, 2018USD ($) | Jan. 31, 2018CNY (¥) | Dec. 31, 2017HKD ($) | Dec. 31, 2017CNY (¥) | Oct. 31, 2017USD ($) | Oct. 31, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Aug. 31, 2017CNY (¥) | |
Investment | |||||||||||||||||||||||||||||||||
Carrying value as equity method investment | $ 12,584 | ¥ 84,964 | ¥ 84,454 | ¥ 79,758 | ¥ 79,758 | ||||||||||||||||||||||||||||
A-RT Retail Holdings Limited | Sun Art | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest held in subsidiary (as a percentage) | 51.00% | 51.00% | |||||||||||||||||||||||||||||||
STO Express | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Principal amount of loan | ¥ 5,000 | ||||||||||||||||||||||||||||||||
Maturity term of loan (in years) | 3 years | ||||||||||||||||||||||||||||||||
Ownership to be acquired (as a percent) | 29.90% | ||||||||||||||||||||||||||||||||
Commitment made by the Company to invest, amount | ¥ 4,700 | ||||||||||||||||||||||||||||||||
Investment vehicle controlled by the controlling shareholder | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 49.00% | ||||||||||||||||||||||||||||||||
Focus Media | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 7.00% | 7.00% | |||||||||||||||||||||||||||||||
Cash consideration | ¥ 10,700 | ||||||||||||||||||||||||||||||||
Commitment made by the Company to invest, amount | $ 511 | ¥ 3,429 | |||||||||||||||||||||||||||||||
Focus Media | Entity controlled by the founder and chairman of Focus Media | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 23.00% | 23.00% | |||||||||||||||||||||||||||||||
Entity controlled by the founder and chairman of Focus Media | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Ownership to be acquired (as a percent) | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Tokopedia | Preferred shares | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Cash consideration | $ 500 | ¥ 3,443 | |||||||||||||||||||||||||||||||
Purchase consideration, cost method | $ 445 | ¥ 2,920 | |||||||||||||||||||||||||||||||
Value of the shares agreed to subscribe | $ | $ 500 | ||||||||||||||||||||||||||||||||
Period for additional investment from initial investment | 24 months | 24 months | |||||||||||||||||||||||||||||||
Equity interest on diluted basis (as a percent) | 29.00% | 29.00% | |||||||||||||||||||||||||||||||
Onshore Retail Fund | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 20.00% | 20.00% | |||||||||||||||||||||||||||||||
Amount committed | ¥ 1,600 | ||||||||||||||||||||||||||||||||
Cost of equity interest | ¥ 922 | ¥ 462 | |||||||||||||||||||||||||||||||
Offshore Retail Fund | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Amount committed | $ | $ 200 | ||||||||||||||||||||||||||||||||
Cost of equity interest | $ | $ 78 | $ 77 | |||||||||||||||||||||||||||||||
Huatai Securities | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 3.00% | ||||||||||||||||||||||||||||||||
Cash consideration | ¥ 3,500 | ||||||||||||||||||||||||||||||||
ZTO Express | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 8.00% | 8.00% | |||||||||||||||||||||||||||||||
Cash consideration | $ 1,100 | ¥ 7,114 | |||||||||||||||||||||||||||||||
Huitongda | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 20.00% | 20.00% | |||||||||||||||||||||||||||||||
Cash consideration | ¥ 4,500 | ||||||||||||||||||||||||||||||||
Shiji Retail | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 38.00% | 38.00% | |||||||||||||||||||||||||||||||
Cash consideration | $ 486 | ¥ 3,062 | |||||||||||||||||||||||||||||||
Wanda Film | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 8.00% | 8.00% | |||||||||||||||||||||||||||||||
Purchase consideration, cost method | ¥ 4,676 | ||||||||||||||||||||||||||||||||
Easyhome | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Purchase consideration, cost method | ¥ 3,635 | ||||||||||||||||||||||||||||||||
Sun Art | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Purchase consideration | $ 2 | ¥ 2 | |||||||||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 12,999 | ||||||||||||||||||||||||||||||||
Ownership of investee upon completion of transaction (as a percent) | 31.00% | 31.00% | |||||||||||||||||||||||||||||||
Direct ownership of investee upon completion of transaction (as a percent) | 21.00% | 21.00% | |||||||||||||||||||||||||||||||
Sun Art | A-RT Retail Holdings Limited | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Cost of equity interest | $ 19,303 | ¥ 16,264 | |||||||||||||||||||||||||||||||
Sun Art | Amortizable intangible assets | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 2,499 | ||||||||||||||||||||||||||||||||
Sun Art | Goodwill | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 2,953 | ||||||||||||||||||||||||||||||||
Sun Art | Deferred tax liabilities | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 2,187 | ||||||||||||||||||||||||||||||||
China Unicom | Ordinary Shares | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Purchase price | ¥ 4,325 | ||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 2.00% | 2.00% | |||||||||||||||||||||||||||||||
Best Logistics | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Purchase consideration | $ 100 | ¥ 657 | |||||||||||||||||||||||||||||||
Equity interest (as a percent) | 23.00% | 23.00% | |||||||||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 629 | ¥ 1,035 | |||||||||||||||||||||||||||||||
Cost of equity interest | $ 256 | ¥ 1,679 | |||||||||||||||||||||||||||||||
Ownership of investee upon completion of transaction (as a percent) | 28.00% | 28.00% | |||||||||||||||||||||||||||||||
Fair value of investment securities accounted for under the equity method | $ 215 | ¥ 1,420 | |||||||||||||||||||||||||||||||
Best Logistics | Cainiao Network | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Equity interest (as a percent) | 5.00% | 5.00% | |||||||||||||||||||||||||||||||
Best Logistics | Amortizable intangible assets | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 652 | ¥ 1,072 | |||||||||||||||||||||||||||||||
Best Logistics | Goodwill | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 270 | 443 | |||||||||||||||||||||||||||||||
Best Logistics | Deferred tax liabilities | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 131 | ¥ 214 | |||||||||||||||||||||||||||||||
Didi Chuxing | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Purchase consideration, cost method | $ 400 | ¥ 2,652 | $ 400 | 2,652 | |||||||||||||||||||||||||||||
Equity interest on diluted basis (as a percent) | 5.00% | 5.00% | |||||||||||||||||||||||||||||||
Proceeds from disposal | $ 639 | ¥ 4,198 | |||||||||||||||||||||||||||||||
Gain arising from disposal | 2,096 | ||||||||||||||||||||||||||||||||
Suning | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 12,778 | ¥ 12,778 | |||||||||||||||||||||||||||||||
Number of shares agreed to be subscribed by investee | shares | 26.3 | ||||||||||||||||||||||||||||||||
Percentage of equity interest in the Company | 1.10% | ||||||||||||||||||||||||||||||||
Cash consideration (USD per share) | $ / shares | ¥ 81.51 | ||||||||||||||||||||||||||||||||
Investment cost recognized as an issuance of treasury shares | $ 429 | ¥ 2,823 | |||||||||||||||||||||||||||||||
Equity interest disposed by investee | ¥ 2,233 | ¥ 590 | |||||||||||||||||||||||||||||||
Suning | Ordinary Shares | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 19.99% | ||||||||||||||||||||||||||||||||
Purchase consideration | ¥ 28,200 | ||||||||||||||||||||||||||||||||
Suning | Amortizable intangible assets | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 5,100 | 5,100 | |||||||||||||||||||||||||||||||
Suning | Goodwill | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 9,113 | 9,113 | |||||||||||||||||||||||||||||||
Suning | Deferred tax liabilities | |||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 1,582 | ¥ 1,582 |
Significant restructuring tr_14
Significant restructuring transaction, mergers and acquisitions and investments- Equity transactions and acquisitions not completed as of balance sheet date (Details) - 1 months ended May 31, 2019 - Subsequent event ¥ / shares in Units, ¥ in Millions, $ in Millions | HKD ($) | CNY (¥)¥ / shares |
Red Star | ||
Investment | ||
Cash consideration for subscription of exchangeable bonds | ¥ 4,359 | |
Exchangeable bonds term (in years) | 5 years | 5 years |
Initial price of bonds exchangeable into ordinary shares | ¥ / shares | ¥ 12.28 | |
Percentage of equity interest acquired | 2.00% | 2.00% |
Total consideration | $ | $ 447 | |
China TransInfo | ||
Investment | ||
Ownership to be acquired (as a percent) | 15.00% | 15.00% |
Commitment made by the Company to invest, amount | ¥ 3,595 |
Revenue- Breakdown by segment (
Revenue- Breakdown by segment (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Revenue breakdown | ||||
Revenue | $ 56,152 | ¥ 376,844 | ¥ 250,266 | ¥ 158,273 |
Customer management services | ||||
Revenue breakdown | ||||
Revenue | 165,616 | 128,898 | 89,287 | |
Commission | ||||
Revenue breakdown | ||||
Revenue | 81,086 | 52,411 | 37,848 | |
Logistics services | ||||
Revenue breakdown | ||||
Revenue | 23,397 | 6,759 | ||
Core commerce | ||||
Revenue breakdown | ||||
Revenue | 323,400 | 214,020 | 133,880 | |
Core commerce | Logistics services | Cainiao Network | ||||
Revenue breakdown | ||||
Revenue | 14,885 | 6,759 | ||
Core commerce | Local consumer services | ||||
Revenue breakdown | ||||
Revenue | 18,058 | |||
Core commerce | Others | ||||
Revenue breakdown | ||||
Revenue | 5,129 | 2,697 | 755 | |
Core commerce | PRC | Retail | ||||
Revenue breakdown | ||||
Revenue | 247,615 | 176,559 | 114,109 | |
Core commerce | PRC | Retail | Customer management services | ||||
Revenue breakdown | ||||
Revenue | 145,684 | 114,285 | 77,530 | |
Core commerce | PRC | Retail | Commission | ||||
Revenue breakdown | ||||
Revenue | 61,847 | 46,525 | 34,066 | |
Core commerce | PRC | Retail | Others | ||||
Revenue breakdown | ||||
Revenue | 40,084 | 15,749 | 2,513 | |
Core commerce | PRC | Wholesale | ||||
Revenue breakdown | ||||
Revenue | 9,988 | 7,164 | 5,679 | |
Core commerce | International | Retail | ||||
Revenue breakdown | ||||
Revenue | 19,558 | 14,216 | 7,336 | |
Core commerce | International | Wholesale | ||||
Revenue breakdown | ||||
Revenue | 8,167 | 6,625 | 6,001 | |
Cloud computing | ||||
Revenue breakdown | ||||
Revenue | 24,702 | 13,390 | 6,663 | |
Digital media and entertainment | ||||
Revenue breakdown | ||||
Revenue | 24,077 | 19,564 | 14,733 | |
Innovation initiatives and others | ||||
Revenue breakdown | ||||
Revenue | ¥ 4,665 | ¥ 3,292 | ¥ 2,997 |
Revenue- By type (Details)
Revenue- By type (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Revenue by type of service | ||||
Revenue | $ 56,152 | ¥ 376,844 | ¥ 250,266 | ¥ 158,273 |
Customer management services | ||||
Revenue by type of service | ||||
Revenue | 165,616 | 128,898 | 89,287 | |
P4P and display marketing | ||||
Revenue by type of service | ||||
Revenue | 151,654 | 119,822 | 83,581 | |
Other customer management services | ||||
Revenue by type of service | ||||
Revenue | 13,962 | 9,076 | 5,706 | |
Commission | ||||
Revenue by type of service | ||||
Revenue | 81,086 | 52,411 | 37,848 | |
Membership fees | ||||
Revenue by type of service | ||||
Revenue | 19,139 | 13,823 | 10,638 | |
Logistics services | ||||
Revenue by type of service | ||||
Revenue | 23,397 | 6,759 | ||
Cloud computing services | ||||
Revenue by type of service | ||||
Revenue | 24,702 | 13,390 | 6,663 | |
Sales of goods | ||||
Revenue by type of service | ||||
Revenue | 46,942 | 18,719 | 3,889 | |
Other revenue | ||||
Revenue by type of service | ||||
Revenue | ¥ 15,962 | ¥ 16,266 | ¥ 9,948 |
Other income, net (Details)
Other income, net (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Other income, net | ||||
Government grants | ¥ 666 | ¥ 555 | ¥ 451 | |
Amortization of restructuring reserve | $ (39) | (264) | (264) | (264) |
Exchange differences | (1,950) | (1,679) | 2,328 | |
Others | 1,252 | 2,104 | 1,485 | |
Total | $ 32 | 221 | 4,160 | 6,086 |
Profit Share Payments | ||||
Other income, net | ||||
Fees | ¥ 517 | ¥ 3,444 | ¥ 2,086 |
Income tax expenses- General (D
Income tax expenses- General (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2012 | |
Composition of income tax expenses | |||||||
Current income tax expense | ¥ 18,750 | ¥ 17,223 | ¥ 13,495 | ||||
Deferred taxation | $ (327) | (2,197) | 976 | 281 | |||
Income tax expenses | $ 2,466 | ¥ 16,553 | ¥ 18,199 | ¥ 13,776 | |||
Enterprise income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | |||
Total tax adjustments | ¥ 4,656 | ¥ 2,295 | ¥ 720 | ||||
Undistributed earnings intended to be invested indefinitely in the PRC | ¥ 49,700 | ¥ 28,600 | |||||
Cayman Islands | |||||||
Composition of income tax expenses | |||||||
Withholding tax to be imposed upon payments of dividends to shareholders (as a percent) | 0.00% | 0.00% | |||||
Hong Kong | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 16.50% | 16.50% | 16.50% | 16.50% | |||
PRC | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | |||
Withholding income tax rate on dividends declared by PRC companies to their foreign investors (as a percent) | 10.00% | 10.00% | |||||
Lower withholding income tax rate on dividends declared by PRC companies to foreign investors with certain criteria met (as a percent) | 5.00% | 5.00% | |||||
Minimum percentage of ownership interests held by investors in Hong Kong to qualify for lower withholding tax rate (as a percent) | 25.00% | 25.00% | |||||
PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | |||||
PRC | Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Period of full exemption from income tax | 2 years | 2 years | |||||
Reduction in preferential tax rate during subsequent three years (as a percent) | 50.00% | 50.00% | |||||
Period of 50% reduction to income tax rate | 3 years | 3 years | |||||
PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10.00% | 10.00% | |||||
Alibaba China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | |||
Alibaba China | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10.00% | 10.00% | 10.00% | ||||
Taobao China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | |||
Taobao China | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10.00% | 10.00% | 10.00% | ||||
Tmall China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15.00% | ||||||
Preferential tax rate (as a percent) | 12.50% | 12.50% | |||||
Tmall China | PRC | Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Period of full exemption from income tax | 2 years | ||||||
Reduction in preferential tax rate during subsequent three years (as a percent) | 50.00% | ||||||
Period of 50% reduction to income tax rate | 3 years | ||||||
Tmall China | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15.00% | 12.50% | |||||
Preferential tax rate (as a percent) | 10.00% | 10.00% |
Income tax expenses- Compositio
Income tax expenses- Composition of deferred tax assets and liabilities (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Deferred tax assets | |||
Licensed copyrights | ¥ 2,475 | ¥ 1,191 | |
Tax losses carried forward and others | 21,896 | 9,467 | |
Total deferred tax assets, gross | 24,371 | 10,658 | |
Valuation allowance | (21,838) | (8,476) | |
Total deferred tax assets | 2,533 | 2,182 | |
Deferred tax liabilities | |||
Identifiable intangible assets | (12,659) | (9,181) | |
Withholding tax on undistributed earnings | (7,901) | (8,375) | |
Investment securities and others | (1,957) | (1,756) | |
Total deferred tax liabilities | $ (3,355) | (22,517) | (19,312) |
Net deferred tax liabilities | ¥ (19,984) | ¥ (17,130) | |
Assumed percentage of distributable reserve of major PRC subsidiaries to be distributed as dividends (as a percent) | 100.00% | 100.00% | 100.00% |
Undistributed earnings intended to be invested indefinitely in the PRC | ¥ 49,700 | ¥ 28,600 | |
United States | |||
Income tax | |||
Accumulated tax losses of subsidiaries | 3,690 | ||
Indonesia | |||
Income tax | |||
Accumulated tax losses of subsidiaries | 3,686 | ||
Singapore | |||
Income tax | |||
Accumulated tax losses of subsidiaries | 3,075 | ||
PRC | |||
Income tax | |||
Accumulated tax losses of subsidiaries | ¥ 73,148 |
Income tax expenses- Reconcilia
Income tax expenses- Reconciliations (Details) ¥ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥)¥ / shares | Mar. 31, 2018CNY (¥)¥ / shares | Mar. 31, 2017CNY (¥)¥ / shares | |
Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company | ||||
Income before income tax and share of result of equity investees | $ 14,337 | ¥ 96,221 | ¥ 100,403 | ¥ 60,029 |
Income tax computed at statutory EIT rate (25%) | 24,055 | 25,101 | 15,007 | |
Effect of different tax rates available to different jurisdictions | (1,568) | 392 | (772) | |
Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC | (17,687) | (14,782) | (10,507) | |
Non deductible expenses and non taxable income, net | 8,168 | 1,780 | 6,090 | |
Tax savings from additional deductions on certain research and development expenses available for subsidiaries incorporated in the PRC | (5,774) | (2,330) | (1,694) | |
Withholding tax on the earnings distributed and anticipated to be remitted | 3,954 | 4,393 | 3,009 | |
Change in valuation allowance, deduction of certain share-based compensation expense and others | 5,405 | 3,645 | 2,643 | |
Income tax expenses | $ 2,466 | ¥ 16,553 | ¥ 18,199 | ¥ 13,776 |
Statutory EIT rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
PRC | ||||
Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company | ||||
Statutory EIT rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) | ¥ / shares | ¥ 6.86 | ¥ 5.79 | ¥ 4.21 |
Share-based awards- General (De
Share-based awards- General (Details) - shares | Apr. 01, 2015 | Sep. 30, 2014 | Mar. 31, 2019 |
Share-based awards | |||
Number of shares authorized but unissued | 34,151,552 | ||
Share option and RSUs with four-year vesting schedule | |||
Share-based awards | |||
Vesting period | 4 years | ||
Vesting percentage per year after initial vesting | 25.00% | ||
Share option and RSUs with four-year vesting schedule | Maximum | |||
Share-based awards | |||
Expiry period | 6 years | ||
Share option and RSUs with four-year vesting schedule and initial vesting at first anniversary | |||
Share-based awards | |||
Vesting period | 1 year | ||
Vesting percentage | 25.00% | ||
Share option and RSUs with four-year vesting schedule and initial vesting at second anniversary | |||
Share-based awards | |||
Vesting period | 2 years | ||
Vesting percentage | 50.00% | ||
Share option and RSUs with six-year vesting schedule | |||
Share-based awards | |||
Vesting period | 6 years | ||
Share option and RSUs with six-year vesting schedule | Maximum | |||
Share-based awards | |||
Expiry period | 8 years | ||
2014 Plan | |||
Share-based awards | |||
Plan term | 10 years | ||
2014 Plan | Maximum | |||
Share-based awards | |||
Additional number of shares subject to award | 25,000,000 |
Share-based awards- RSUs (Detai
Share-based awards- RSUs (Details) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2019$ / shares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥)shares | |
Weighted-average grant-date fair value | |||||
Share-based compensation expense | ¥ | ¥ 37,491 | ¥ 20,075 | ¥ 15,995 | ||
RSUs | |||||
Summary of changes in the RSUs | |||||
Awarded and unvested at beginning of year | 68,424,858 | ||||
Granted | 24,863,988 | ||||
Vested | (24,337,392) | ||||
Cancelled/forfeited | (4,604,961) | ||||
Awarded and unvested at end of year | 64,346,493 | 68,424,858 | |||
Expected to vest | 53,175,748 | ||||
Weighted-average grant-date fair value | |||||
Awarded and unvested at beginning of year | $ / shares | $ 100.93 | ||||
Granted | $ / shares | 181.74 | ||||
Vested | $ / shares | 84.31 | ||||
Cancelled/forfeited | $ / shares | 135.06 | ||||
Awarded and unvested at end of year | $ / shares | 136 | ||||
Expected to vest | $ / shares | $ 134.59 | ||||
Unamortized compensation costs | ¥ | ¥ 22,432 | ||||
Weighted average period over which unamortized compensation costs expected be recognized | 1 year 10 months 24 days | ||||
Share-based compensation expense | ¥ | ¥ 22,137 | ¥ 16,165 | ¥ 12,322 | ||
RSUs | Non-employees | |||||
Summary of changes in the RSUs | |||||
Awarded and unvested at beginning of year | 1,983,785 | ||||
Awarded and unvested at end of year | 1,878,835 | 1,983,785 |
Share-based awards- Share optio
Share-based awards- Share options (Details) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019$ / shares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018$ / shares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2017$ / shares | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥)shares | |
Fair value assumptions | |||||||
Share-based compensation expense | ¥ | ¥ 37,491 | ¥ 20,075 | ¥ 15,995 | ||||
Options | |||||||
Number of share options | |||||||
Outstanding at beginning of year | shares | 7,938,015 | ||||||
Exercised | shares | (795,809) | ||||||
Cancelled/forfeited/expired | shares | (25,000) | ||||||
Outstanding at end of year | shares | 7,117,206 | 7,938,015 | |||||
Vested and exercisable | shares | 3,258,039 | ||||||
Vested and expected to vest | shares | 7,016,598 | ||||||
Weighted average exercise price | |||||||
Outstanding at beginning of year | $ / shares | $ 70.10 | ||||||
Exercised | $ / shares | 45.02 | ||||||
Cancelled/forfeited/expired | $ / shares | 76.81 | ||||||
Outstanding at end of year | $ / shares | 72.88 | $ 70.10 | |||||
Vested and exercisable | $ / shares | 75.32 | ||||||
Vested and expected to vest | $ / shares | 72.78 | ||||||
Weighted average remaining contractual life | |||||||
Weighted average remaining contractual life, outstanding | 3 years 8 months 12 days | 4 years 6 months | |||||
Weighted average remaining contractual life, vested and exercisable | 3 years 7 months 6 days | ||||||
Weighted average remaining contractual life, vested and expected to vest | 3 years 8 months 12 days | ||||||
Additional disclosure | |||||||
Aggregate intrinsic value of all outstanding options | ¥ | ¥ 5,243 | ||||||
Aggregate intrinsic value of options that were vested and exercisable | ¥ | 2,347 | ||||||
Aggregate intrinsic value of options that were vested and expected to vest | ¥ | 5,173 | ||||||
Weighted average grant date fair value of share options | $ / shares | $ 0 | $ 0 | $ 22.89 | ||||
Total grant date fair value of options vested | ¥ | ¥ 311 | ¥ 452 | 348 | ||||
Aggregate intrinsic value of share options exercised | ¥ | 708 | 1,980 | 1,799 | ||||
Cash received from option exercise under the share option plans | ¥ | ¥ 220 | ¥ 174 | ¥ 287 | ||||
Granted | shares | 0 | 0 | |||||
Fair value assumptions | |||||||
Risk-free interest rate, minimum | 1.23% | ||||||
Risk-free interest rate, maximum | 1.30% | ||||||
Expected dividend yield | 0.00% | ||||||
Expected life (years) | 4 years 4 months 17 days | ||||||
Expected volatility, minimum | 31.70% | ||||||
Expected volatility, maximum | 33.20% | ||||||
Share-based compensation expense | ¥ | ¥ 181 | ¥ 270 | ¥ 524 | ||||
Unamortized compensation costs | ¥ | ¥ 111 | ||||||
Weighted average period over which unamortized compensation costs expected be recognized | 1 year 6 months | ||||||
Options | Non-employees | |||||||
Number of share options | |||||||
Outstanding at beginning of year | shares | 141,000 | ||||||
Outstanding at end of year | shares | 76,550 | 141,000 |
Share-based awards- Partner Cap
Share-based awards- Partner Capital Investment Plan (Details) ¥ in Millions | 12 Months Ended | ||||||||||
Mar. 31, 2019CNY (¥) | Dec. 31, 2018$ / sharesshares | Mar. 31, 2018CNY (¥) | Dec. 31, 2017$ / sharesshares | Mar. 31, 2017CNY (¥) | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / sharesshares | Mar. 31, 2019$ / shares | Mar. 31, 2019CNY (¥)shares | |
Share-based awards | |||||||||||
Share-based compensation expense | ¥ | ¥ 37,491 | ¥ 20,075 | ¥ 15,995 | ||||||||
Partner Capital Investment Plan | Subscription rights | |||||||||||
Share-based awards | |||||||||||
Agreed-upon exercise price | $ / shares | $ 14.50 | $ 14.50 | $ 14.50 | ||||||||
Subscription period | 10 years | 10 years | 10 years | 10 years | 4 years | 4 years | 4 years | ||||
Restriction period for the transfer shares | 8 years | 8 years | 8 years | ||||||||
Number of shares underlying | shares | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | ||||
Number of shares offered and subscribed | shares | 17,500,000 | ||||||||||
Unamortized compensation costs | ¥ | ¥ 941 | ||||||||||
Weighted average period over which unamortized compensation costs expected be recognized | 4 years 6 months | ||||||||||
Share-based compensation expense | ¥ | ¥ 409 | ¥ 435 | ¥ 241 | ||||||||
Subscription right fair value assumptions | |||||||||||
Risk-free interest rate | 2.94% | 2.07% | 1.86% | ||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||
Expected life (years) | 8 years 3 months | 8 years 3 months | 8 years 3 months | ||||||||
Expected volatility | 33.00% | 34.20% | 39.00% | ||||||||
Partner Capital Investment Plan | Subscription rights | Minimum | |||||||||||
Share-based awards | |||||||||||
Agreed-upon exercise price | $ / shares | $ 23 | $ 23 | $ 23 | $ 23 | |||||||
Partner Capital Investment Plan | Subscription rights | Maximum | |||||||||||
Share-based awards | |||||||||||
Agreed-upon exercise price | $ / shares | $ 26 | $ 26 | $ 26 | $ 26 |
Share-based awards - Share-base
Share-based awards - Share-based awards relating to Ant Financial (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based awards | |||
Share-based compensation expense | ¥ 37,491 | ¥ 20,075 | ¥ 15,995 |
Share-based awards relating to Ant Financial | |||
Share-based awards | |||
Share-based compensation expense | ¥ 12,855 | ¥ 2,278 | ¥ 2,188 |
Share-based awards relating to Ant Financial | Share-based awards with four-year vesting schedule | |||
Share-based awards | |||
Vesting period | 4 years | 4 years | 4 years |
Vesting percentage per year after initial vesting | 25.00% | 25.00% | 25.00% |
Share-based awards relating to Ant Financial | Share-based awards with four-year vesting schedule and initial vesting at first anniversary | |||
Share-based awards | |||
Vesting period | 1 year | 1 year | 1 year |
Vesting percentage | 25.00% | 25.00% | 25.00% |
Share-based awards relating to Ant Financial | Share-based awards with four-year vesting schedule and initial vesting at second anniversary | |||
Share-based awards | |||
Vesting period | 2 years | 2 years | 2 years |
Vesting percentage | 50.00% | 50.00% | 50.00% |
Share-based awards relating to Ant Financial | Share-based awards with six-year vesting schedule | |||
Share-based awards | |||
Vesting period | 6 years | 6 years | 6 years |
Share-based awards- Expense by
Share-based awards- Expense by function (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based awards | |||
Share-based compensation expense | ¥ 37,491 | ¥ 20,075 | ¥ 15,995 |
Cost of revenue | |||
Share-based awards | |||
Share-based compensation expense | 8,915 | 5,505 | 3,893 |
Product development expenses | |||
Share-based awards | |||
Share-based compensation expense | 15,378 | 7,374 | 5,712 |
Sales and marketing expenses | |||
Share-based awards | |||
Share-based compensation expense | 4,411 | 2,037 | 1,772 |
General and administrative expenses | |||
Share-based awards | |||
Share-based compensation expense | ¥ 8,787 | ¥ 5,159 | ¥ 4,618 |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019CNY (¥)¥ / sharesshares | Mar. 31, 2018CNY (¥)¥ / sharesshares | Mar. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to ordinary shareholders for computing net income per ordinary share - basic | $ 13,053 | ¥ 87,600 | ¥ 63,985 | ¥ 43,675 |
Dilution effect arising from share-based awards issued by a subsidiary and equity investees | ¥ | (42) | (21) | (11) | |
Net income attributable to ordinary shareholders for computing net income per ordinary share - diluted | ¥ | ¥ 87,558 | ¥ 63,964 | ¥ 43,664 | |
Shares (denominator): | ||||
Weighted average number of shares used in calculating net income per ordinary share - basic (million shares) | 2,580 | 2,580 | 2,553 | 2,493 |
Adjustments for dilutive RSUs and share options (million shares) | 43 | 43 | 57 | 80 |
Weighted average number of shares used in calculating net income per ordinary share - diluted (million shares) | 2,623 | 2,623 | 2,610 | 2,573 |
Net income per ordinary share/ADS - basic | (per share) | $ 5.06 | ¥ 33.95 | ¥ 25.06 | ¥ 17.52 |
Net income per ordinary share/ADS - diluted | (per share) | $ 4.97 | ¥ 33.38 | ¥ 24.51 | ¥ 16.97 |
Restricted cash and escrow re_3
Restricted cash and escrow receivables (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Restricted cash | |||
Restricted cash and escrow receivables | $ 1,269 | ¥ 8,518 | ¥ 3,417 |
Money received or receivable on escrow services offered by AliExpress | |||
Restricted cash | |||
Restricted cash and escrow receivables | 8,354 | 3,171 | |
Others | |||
Restricted cash | |||
Restricted cash and escrow receivables | ¥ 164 | ¥ 246 |
Investment securities and fai_3
Investment securities and fair value disclosure - Cost to fair value (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2017 | |
Equity securities and other investments and fair value disclosure | ||||
Original cost | ¥ 162,858 | ¥ 34,699 | ||
Gross unrealized gains | 30,119 | 11,057 | ||
Gross unrealized losses | (11,985) | (1,587) | ||
Provision for decline in value | (13,975) | (1,162) | ||
Carrying value | 167,017 | 43,007 | ||
Equity securities accounted for using cost method | 59,942 | ¥ 35,404 | ||
Debt investments | 6,900 | 6,900 | ||
Debt investments pledged to financial institution | 6,900 | |||
ASU 2016-01 | Adjustment | ||||
Equity securities and other investments and fair value disclosure | ||||
Equity securities accounted for using cost method | (59,942) | ¥ (59,942) | ||
Investment securities | ¥ 59,942 | |||
Listed equity securities | ||||
Equity securities and other investments and fair value disclosure | ||||
Original cost | 57,121 | 20,303 | ||
Gross unrealized gains | 15,968 | 10,990 | ||
Gross unrealized losses | (11,887) | (1,587) | ||
Provision for decline in value | (983) | |||
Carrying value | 61,202 | 28,723 | ||
Equity securities accounted for under the fair value option | ||||
Equity securities and other investments and fair value disclosure | ||||
Original cost | 498 | |||
Gross unrealized gains | 67 | |||
Carrying value | 565 | |||
Investments in privately held companies | ||||
Equity securities and other investments and fair value disclosure | ||||
Original cost | 81,894 | |||
Gross unrealized gains | 14,107 | |||
Gross unrealized losses | (78) | |||
Provision for decline in value | (13,250) | |||
Carrying value | 82,673 | |||
Debt investments | ||||
Equity securities and other investments and fair value disclosure | ||||
Original cost | 23,843 | 13,898 | ||
Gross unrealized gains | 44 | |||
Gross unrealized losses | (20) | |||
Provision for decline in value | (725) | (179) | ||
Carrying value | 23,142 | 13,719 | ||
Convertible bonds accounted for under the fair value option | ||||
Equity securities and other investments and fair value disclosure | ||||
Carrying value | 2,742 | 1,256 | ||
Unrealized gains recorded | ¥ 44 | ¥ 0 |
Investment securities and fai_4
Investment securities and fair value disclosure - Equity securities summary (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |
Net unrealized gains recognized during the period for equity securities still held as of the end of the period | ¥ 598 | ¥ 11 | ||
Net gains recognized during the period from disposals of equity securities during the period | 5,120 | 1 | ¥ 5,601 | |
Net gains recognized during the period on equity securities | 5,718 | 12 | 5,601 | |
Net unrealized gains on marketable equity securities recorded in accumulated other comprehensive income | 9,403 | |||
Aggregate fair values of investment securities in continuous unrealized losses position | 7,636 | |||
Equity securities accounted for using cost method | 59,942 | 35,404 | ||
Upward adjustments | 15,474 | |||
Impairments and downward adjustments | 10,404 | |||
Investments in privately held companies recorded using measurement alternative | 81,514 | |||
Realized gains or losses on disposal of debt investments | 0 | 0 | 0 | |
Impairment losses on debt investments | ¥ 546 | 6 | ¥ 173 | |
Retained earnings | ||||
Reclassification | 8,196 | |||
ASU 2016-01 | Adjustment | ||||
Equity securities accounted for using cost method | ¥ (59,942) | ¥ (59,942) | ||
Investment securities | 59,942 | |||
ASU 2016-01 | Adjustment | Accumulated other comprehensive income (loss) | ||||
Reclassification | (8,196) | |||
ASU 2016-01 | Adjustment | Retained earnings | ||||
Reclassification | ¥ 8,196 |
Investment securities and fai_5
Investment securities and fair value disclosure - Fair value hierarchy (Details) - Recurring basis - CNY (¥) ¥ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Assets | ||
Short-term investments | ¥ 3,262 | ¥ 6,086 |
Restricted cash and escrow receivables | 8,518 | 3,417 |
Listed equity securities | 61,202 | 28,723 |
Equity securities accounted for under the fair value option | 565 | |
Convertible bond accounted for under the fair value option | 2,742 | 1,256 |
Interest rate swaps | 331 | 542 |
Others | 3,207 | |
Assets | 79,262 | 40,589 |
Liabilities | ||
Contingent consideration in relation to investments and acquisitions | 5,122 | 120 |
Liabilities | 5,122 | 120 |
Level 1 | ||
Assets | ||
Short-term investments | 3,262 | 6,086 |
Restricted cash and escrow receivables | 8,518 | 3,417 |
Listed equity securities | 61,202 | 28,723 |
Convertible bond accounted for under the fair value option | 244 | |
Others | 604 | |
Assets | 73,830 | 38,226 |
Level 2 | ||
Assets | ||
Interest rate swaps | 331 | 542 |
Others | 1,444 | |
Assets | 1,775 | 542 |
Level 3 | ||
Assets | ||
Equity securities accounted for under the fair value option | 565 | |
Convertible bond accounted for under the fair value option | 2,498 | 1,256 |
Others | 1,159 | |
Assets | 3,657 | 1,821 |
Liabilities | ||
Contingent consideration in relation to investments and acquisitions | 5,122 | 120 |
Liabilities | ¥ 5,122 | ¥ 120 |
Investment securities and fai_6
Investment securities and fair value disclosure - Rollforward of assets (Details) - Convertible bonds accounted for under the fair value option - Level 3 - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Convertible and exchangeable bonds accounted for under the fair value option | ||
Balance as of beginning | ¥ 1,256 | |
Additions | 1,153 | ¥ 1,264 |
Foreign currency translation adjustments | 89 | (8) |
Balance as of end | ¥ 2,498 | ¥ 1,256 |
Investment securities and fai_7
Investment securities and fair value disclosure - Rollforward of liabilities (Details) - Contingent consideration in relation to investments and acquisitions - Level 3 - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contingent consideration in relation to investments and acquisitions | ||
Balance at beginning | ¥ 120 | ¥ 921 |
Payment | (770) | |
Net decrease in fair value | (45) | (17) |
Additions | 4,790 | |
Foreign currency translation adjustments | 257 | (14) |
Balance at end | ¥ 5,122 | ¥ 120 |
Prepayments, receivables and _3
Prepayments, receivables and other assets (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Current: | |||
Accounts receivable, net of allowance | ¥ 13,771 | ¥ 7,284 | |
Inventories | 8,534 | 4,535 | |
Amounts due from related companies | 7,445 | 8,080 | |
VAT receivables, net of allowance | 7,347 | 8,915 | |
Prepaid cost of revenue, sales and marketing and other expenses | 7,049 | 4,283 | |
Advances to / receivables from customers, merchants and others | 4,689 | 3,700 | |
Deferred direct selling costs | 1,990 | 1,643 | |
Licensed copyrights (Note 2(y)) | 1,126 | 964 | |
Interest receivables | 867 | 672 | |
Loan receivables, net | 490 | 419 | |
Others | 5,282 | 2,733 | |
Total Current | $ 8,730 | 58,590 | 43,228 |
Non-current: | |||
Prepayment for acquisition of property and equipment | 7,643 | 5,933 | |
Film costs and prepayment for licensed copyrights and others | 7,205 | 5,614 | |
Land use rights, net | 6,419 | 9,377 | |
Deferred tax assets | 2,533 | 2,182 | |
Fair value of interest rate swap contracts | 331 | 542 | |
Deferred direct selling costs | 281 | 188 | |
Others | 3,606 | 2,438 | |
Total Non-current | $ 4,175 | ¥ 28,018 | 26,274 |
Adjustment | Land use rights | |||
Non-current: | |||
Land use rights, net | (9,377) | ||
Adjustment | Prepayments, receivables and other assets | |||
Non-current: | |||
Land use rights, net | ¥ 9,377 |
Investments in equity investe_3
Investments in equity investees- General (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Apr. 01, 2018CNY (¥) | |
Cost method | |||||
Balance as of beginning of period | ¥ 59,942 | ¥ 35,404 | |||
Transfer of cost method investments | ¥ (59,942) | ||||
Additions | 34,121 | ||||
Disposals | (3,051) | ||||
Transfers | (1,725) | ||||
Impairment loss | (1,753) | ¥ (2,125) | |||
Foreign currency translation adjustments | (3,054) | ||||
Balance as of end of period | 59,942 | 35,404 | |||
Equity method | |||||
Balance as of beginning of period | 79,758 | 84,964 | |||
Additions | 14,360 | 26,391 | |||
Share of results, other comprehensive income and other reserves | 1,905 | (3,660) | |||
Disposals | (1,160) | (474) | |||
Transfers | (10,153) | (9,011) | |||
Impairment loss | (493) | (18,153) | (245) | ||
Foreign currency translation adjustments | 237 | (299) | |||
Balance as of end of period | $ 12,584 | 84,454 | 79,758 | 84,964 | |
Total, cost and equity methods | |||||
Balance as of beginning of period | 139,700 | 120,368 | |||
Additions | 60,512 | ||||
Share of results, other comprehensive income and other reserves | ¥ 1,905 | (3,660) | |||
Disposals | (3,525) | ||||
Transfers | (10,736) | ||||
Impairment loss | (19,906) | ||||
Foreign currency translation adjustments | (3,353) | ||||
Balance as of end of period | ¥ 139,700 | ¥ 120,368 |
Investments in equity investe_4
Investments in equity investees- Others (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Apr. 01, 2018CNY (¥) | |
Investments in equity investees | ||||||
Impairment charges of cost method investments | ¥ 1,753 | ¥ 2,125 | ||||
Impairment charges relating to the equity method investments | ¥ 493 | 18,153 | 245 | |||
Equity securities accounted for using cost method | 59,942 | 35,404 | ||||
Carrying value as equity method investment | 79,758 | ¥ 84,964 | $ 12,584 | ¥ 84,454 | ¥ 79,758 | |
ASU 2016-01 | Adjustment | ||||||
Investments in equity investees | ||||||
Equity securities accounted for using cost method | (59,942) | (59,942) | ||||
Investment securities | ¥ 59,942 | |||||
Alibaba Pictures | ||||||
Investments in equity investees | ||||||
Impairment charges relating to the equity method investments | 18,116 | |||||
Individually immaterial cost method investments, fair value estimated | Carrying amount | ||||||
Investments in equity investees | ||||||
Cost method investment | 30,318 | |||||
Individually immaterial cost method investments, fair value estimated | Approximate fair value | ||||||
Investments in equity investees | ||||||
Cost method investment | 61,936 | |||||
Individually immaterial cost method investments, not practical to estimate fair value | Carrying amount | ||||||
Investments in equity investees | ||||||
Cost method investments carrying value for which there is no fair value estimate | ¥ 29,624 | |||||
Equity method investments, publicly traded | ||||||
Investments in equity investees | ||||||
Carrying value as equity method investment | 56,463 | |||||
Market values of equity method investments | ¥ 72,200 |
Investments in equity investe_5
Investments in equity investees- summarized financial information of equity method investments (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating data: | |||
Revenue | ¥ 488,775 | ¥ 284,706 | ¥ 125,701 |
Cost of revenue | (405,074) | (242,068) | (109,790) |
(Loss) Income from operations | 3,840 | (7,072) | (9,071) |
Net (loss) income | 2,923 | 195 | ¥ (6,743) |
Balance sheet data: | |||
Current assets | 257,502 | 200,742 | |
Non-current assets | 222,484 | 184,310 | |
Current liabilities | 205,272 | 162,340 | |
Non-current liabilities | 34,191 | 26,107 | |
Noncontrolling interests and mezzanine equity | ¥ 10,151 | ¥ 16,586 |
Property and equipment, net (De
Property and equipment, net (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | |
Property and Equipment, Net | |||||
Gross | ¥ 86,928 | ¥ 125,975 | |||
Less: accumulated depreciation and amortization | (20,439) | (33,945) | |||
Net book value | 66,489 | $ 13,713 | 92,030 | ||
Depreciation and Amortization | |||||
Depreciation and amortization expenses | ¥ 14,818 | 8,654 | ¥ 5,177 | ||
Buildings and property improvements | |||||
Property and Equipment, Net | |||||
Gross | 45,909 | 61,940 | |||
Computer equipment and software | |||||
Property and Equipment, Net | |||||
Gross | 33,852 | 53,187 | |||
Construction in progress | |||||
Property and Equipment, Net | |||||
Gross | 5,110 | 6,959 | |||
Furniture, office and transportation equipment | |||||
Property and Equipment, Net | |||||
Gross | ¥ 2,057 | ¥ 3,889 |
Intangible assets, net - Genera
Intangible assets, net - General (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | |
Intangible assets | ||||
Gross carrying amount | ¥ 103,126 | ¥ 50,398 | ||
Less: accumulated amortization and impairment | (34,850) | (22,933) | ||
Net book value | $ 10,173 | 68,276 | 27,465 | |
User base and customer relationships | ||||
Intangible assets | ||||
Gross carrying amount | 47,913 | 13,510 | ||
Trade names, trademarks and domain names | ||||
Intangible assets | ||||
Gross carrying amount | 22,592 | 14,198 | ||
Non-compete agreements | ||||
Intangible assets | ||||
Gross carrying amount | 12,528 | 7,820 | ||
Non-compete agreements | Youku | ||||
Intangible assets | ||||
Intangible assets acquired | ¥ 2,528 | |||
Remaining amortization period | 1 year | |||
Developed technology and patents | ||||
Intangible assets | ||||
Gross carrying amount | 9,510 | 5,463 | ||
Licensed copyrights | ||||
Intangible assets | ||||
Gross carrying amount | 9,225 | 9,182 | ||
Others | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 1,358 | ¥ 225 |
Intangible assets, net - Amorti
Intangible assets, net - Amortization (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Intangible assets, net | |||
2020 | ¥ 14,418 | ||
2021 | 11,362 | ||
2022 | 8,779 | ||
2023 | 7,793 | ||
2024 | 7,378 | ||
Thereafter | 18,546 | ||
Net book value | $ 10,173 | ¥ 68,276 | ¥ 27,465 |
Goodwill (Details)
Goodwill (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Changes in goodwill | ||||
Goodwill at the beginning of period | ¥ 162,149 | ¥ 125,420 | ||
Additions | 102,618 | 37,793 | ||
Impairment | 0 | (494) | ¥ 0 | |
Foreign currency translation adjustments | 168 | (570) | ||
Goodwill at the end of period | $ 39,477 | 264,935 | 162,149 | 125,420 |
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Gross goodwill | 268,879 | 166,093 | ||
Accumulated impairment losses of goodwill | 3,944 | 3,944 | ||
Impairment losses on goodwill | 0 | 494 | 0 | |
Core commerce | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 116,798 | 79,855 | ||
Additions | 80,760 | 37,458 | ||
Foreign currency translation adjustments | 157 | (515) | ||
Goodwill at the end of period | 197,715 | 116,798 | 79,855 | |
Cloud computing | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 368 | 368 | ||
Additions | 1,118 | |||
Foreign currency translation adjustments | (25) | |||
Goodwill at the end of period | 1,461 | 368 | 368 | |
Digital media and entertainment | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 40,307 | 40,521 | ||
Additions | 20,165 | 335 | ||
Impairment | (494) | |||
Foreign currency translation adjustments | 36 | (55) | ||
Goodwill at the end of period | 60,508 | 40,307 | 40,521 | |
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Impairment losses on goodwill | 494 | |||
Innovation initiatives and others | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 4,676 | 4,676 | ||
Additions | 575 | |||
Goodwill at the end of period | ¥ 5,251 | ¥ 4,676 | ¥ 4,676 |
Deferred revenue and customer_3
Deferred revenue and customer advances (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Deferred revenue and customer advances | |||
Deferred revenue | ¥ 18,448 | ¥ 13,350 | |
Customer advances | 13,814 | 9,940 | |
Total | 32,262 | 23,290 | |
Less: current portion | $ (4,589) | (30,795) | (22,297) |
Non-current portion | $ 219 | ¥ 1,467 | ¥ 993 |
Accrued expenses, accounts pa_3
Accrued expenses, accounts payable and other liabilities (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Current: | |||
Payables and accruals for cost of revenue and sales and marketing expenses | ¥ 51,958 | ¥ 40,363 | |
Accrued bonus and staff costs, including sales commission | 14,034 | 11,212 | |
Payable to merchants and third party marketing affiliates | 12,554 | 6,584 | |
Other deposits and advances received | 10,447 | 6,271 | |
Payables and accruals for purchases of property and equipment | 5,548 | 6,095 | |
Amounts due to related companies | 4,570 | 1,996 | |
Other taxes payable | 3,448 | 2,382 | |
Contingent and deferred consideration in relation to investments and acquisitions | 3,301 | 807 | |
Accrued professional services and administrative expenses | 2,361 | 1,371 | |
Accrued donations | 1,738 | 1,215 | |
Accrual for interest expense | 924 | 885 | |
Others | 6,828 | 1,984 | |
Current accrued expenses, accounts payable and other liabilities | $ 17,540 | 117,711 | 81,165 |
Non-current: | |||
Contingent and deferred consideration in relation to investments and acquisitions | 3,872 | 408 | |
Others | 2,315 | 1,637 | |
Other liabilities | 922 | 6,187 | ¥ 2,045 |
Other current liabilities | |||
Current: | |||
Settlement provision | $ 250 | ¥ 1,679 |
Bank borrowings- General (Detai
Bank borrowings- General (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019 | Apr. 30, 2017USD ($) | Mar. 31, 2019USD ($)item | Mar. 31, 2018USD ($)item | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | |
Bank borrowings | ||||||
Short-term borrowings | $ 1,096 | ¥ 7,356 | ¥ 6,028 | |||
Long-term borrowings | $ 5,279 | 35,427 | 34,153 | |||
Bank borrowings | ||||||
Bank borrowings | ||||||
Long-term borrowings | 35,427 | 34,153 | ||||
Collateral amount pledged | 18,314 | 20,927 | ||||
Short-term other borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Short-term borrowings | ¥ 7,356 | ¥ 6,028 | ||||
Weighted average interest rate for the year | 4.10% | |||||
Short-term other borrowings | Bank loans | Minimum | ||||||
Bank borrowings | ||||||
Interest rates | 2.90% | 2.20% | 2.90% | 2.20% | ||
Short-term other borrowings | Bank loans | Maximum | ||||||
Bank borrowings | ||||||
Interest rates | 19.00% | 6.10% | 19.00% | 6.10% | ||
US$4.0 billion syndicated loan denominated in US$ | Bank loans | ||||||
Bank borrowings | ||||||
Long-term borrowings | ¥ 26,780 | ¥ 24,957 | ||||
Maturity term | 5 years | 5 years | ||||
Principal amount | $ | $ 4,000 | $ 4,000 | ||||
Number of lead arrangers | item | 8 | 8 | ||||
US$4.0 billion syndicated loan denominated in US$ | Bank loans | LIBOR | ||||||
Bank borrowings | ||||||
Spread over variable rate | 1.10% | 1.10% | ||||
US$4.0 billion syndicated loan denominated in US$ | Bank loans | LIBOR | Subsequent event | ||||||
Bank borrowings | ||||||
Spread over variable rate | 0.85% | |||||
Long-term other borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Long-term borrowings | ¥ 8,647 | ¥ 9,196 | ||||
Weighted average interest rate for the year | 4.60% | 4.50% | ||||
US$5.15 billion revolving credit facility agreement | Bank facility | ||||||
Bank borrowings | ||||||
Amount of loan facility | $ | $ 5,150 | |||||
US$5.15 billion revolving credit facility agreement | Bank facility | LIBOR | ||||||
Bank borrowings | ||||||
Spread over variable rate | 0.95% |
Bank borrowings- Maturity sched
Bank borrowings- Maturity schedule (Details) - Bank borrowings ¥ in Millions | Mar. 31, 2019CNY (¥) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Within 1 year | ¥ 7,358 |
Between 1 to 2 years | 841 |
Between 2 to 3 years | 27,986 |
Between 3 to 4 years | 577 |
Between 4 to 5 years | 559 |
Beyond 5 years | 5,576 |
Total principal amount | ¥ 42,897 |
Unsecured senior notes- General
Unsecured senior notes- General (Details) ¥ in Millions, $ in Millions | 1 Months Ended | ||||||
Nov. 30, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Nov. 30, 2014USD ($) | |
Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Carrying value | ¥ 91,517 | ¥ 85,372 | |||||
Unamortized discount and debt issuance costs | 589 | 624 | |||||
Total principal amounts of unsecured senior notes | 92,106 | 85,996 | |||||
Less: current portion of principal amounts of unsecured senior notes | (15,127) | ||||||
Non-current portion of principal amounts of unsecured senior notes | 76,979 | ¥ 85,996 | |||||
Discount when issued | $ 47 | 297 | |||||
Debt issuance costs as a direct deduction from the principal amount | 82 | ¥ 517 | |||||
2014 Senior Notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 8,000 | ||||||
Repayment amount | $ | $ 1,300 | ||||||
2017 Senior Notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 7,000 | ||||||
US$2,250 million 2.500% notes due 2019 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 2,250 | $ 2,250 | |||||
Fixed interest rate | 2.50% | 2.50% | 2.50% | 2.50% | |||
Carrying value | ¥ 15,110 | ¥ 14,083 | |||||
Effective interest rate | 2.67% | 2.67% | 2.67% | 2.67% | |||
US$1,500 million 3.125% notes due 2021 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 1,500 | $ 1,500 | |||||
Fixed interest rate | 3.125% | 3.125% | 3.125% | 3.125% | |||
Carrying value | ¥ 10,044 | ¥ 9,365 | |||||
Effective interest rate | 3.26% | 3.26% | 3.26% | 3.26% | |||
US$700 million 2.800% notes due 2023 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 700 | $ 700 | |||||
Fixed interest rate | 2.80% | 2.80% | 2.80% | 2.80% | |||
Carrying value | ¥ 4,687 | ¥ 4,372 | |||||
Effective interest rate | 2.90% | 2.90% | 2.90% | 2.90% | |||
US$2,250 million 3.600% notes due 2024 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 2,250 | $ 2,250 | |||||
Fixed interest rate | 3.60% | 3.60% | 3.60% | 3.60% | |||
Carrying value | ¥ 15,061 | ¥ 14,050 | |||||
Effective interest rate | 3.68% | 3.68% | 3.68% | 3.68% | |||
US$2,550 million 3.400% notes due 2027 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 2,550 | $ 2,550 | |||||
Fixed interest rate | 3.40% | 3.40% | 3.40% | 3.40% | |||
Carrying value | ¥ 16,989 | ¥ 15,848 | |||||
Effective interest rate | 3.52% | 3.52% | 3.52% | 3.52% | |||
US$700 million 4.500% notes due 2034 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 700 | $ 700 | |||||
Fixed interest rate | 4.50% | 4.50% | 4.50% | 4.50% | |||
Carrying value | ¥ 4,650 | ¥ 4,339 | |||||
Effective interest rate | 4.60% | 4.60% | 4.60% | 4.60% | |||
US$1,000 million 4.000% notes due 2037 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 1,000 | $ 1,000 | |||||
Fixed interest rate | 4.00% | 4.00% | 4.00% | 4.00% | |||
Carrying value | ¥ 6,663 | ¥ 6,219 | |||||
Effective interest rate | 4.06% | 4.06% | 4.06% | 4.06% | |||
US$1,750 million 4.200% notes due 2047 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 1,750 | $ 1,750 | |||||
Fixed interest rate | 4.20% | 4.20% | 4.20% | 4.20% | |||
Carrying value | ¥ 11,655 | ¥ 10,880 | |||||
Effective interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |||
US$1,000 million 4.400% notes due 2057 | Unsecured senior notes | |||||||
Unsecured senior notes | |||||||
Principal amount | $ | $ 1,000 | $ 1,000 | |||||
Fixed interest rate | 4.40% | 4.40% | 4.40% | 4.40% | |||
Carrying value | ¥ 6,658 | ¥ 6,216 | |||||
Effective interest rate | 4.44% | 4.44% | 4.44% | 4.44% |
Unsecured senior notes- Maturit
Unsecured senior notes- Maturity schedule (Details) ¥ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) |
Level 2 | ||||
Unsecured senior notes | ||||
Fair value | $ 13,679 | ¥ 91,964 | $ 13,317 | ¥ 83,590 |
Unsecured senior notes | ||||
Future principal payments | ||||
Within 1 year | 15,127 | |||
Between 2 to 3 years | 10,084 | |||
Between 4 to 5 years | 4,706 | |||
Thereafter | 62,189 | |||
Total principal amount | ¥ 92,106 | ¥ 85,996 |
Related party transactions- Tra
Related party transactions- Transactions with related parties (Details) $ / shares in Units, ¥ in Millions, $ in Billions | 1 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | 24 Months Ended | |||
Jun. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2018CNY (¥) | Oct. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2014 | Dec. 31, 2017 | |
Related party transactions | ||||||||
Aggregate consideration of the ordinary shares repurchased | ¥ 10,872 | ¥ 13,182 | ||||||
Profit Share Payments | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 517 | ¥ 3,444 | 2,086 | |||||
Alipay | Payment processing fee | ||||||||
Related party transactions | ||||||||
Expenses incurred | 8,252 | 6,295 | 5,487 | |||||
Ant Financial | Reimbursement of the costs incurred for software technology services | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 106 | 37 | 245 | |||||
Ant Financial | Profit Share Payments | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 517 | 3,444 | 2,086 | |||||
Additional fee, as a percentage of pre-tax income | 37.50% | |||||||
Ant Financial | Administrative and support services | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 1,017 | 676 | 531 | |||||
Ant Financial and its affiliates | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 4,738 | 6,584 | 4,281 | |||||
Expenses incurred | 9,580 | 8,189 | 6,439 | |||||
Ant Financial and its affiliates | SME Annual Fee | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 954 | 956 | 847 | |||||
Annual fee as a percentage of the average daily balance (as a percent) | 2.50% | |||||||
Ant Financial and its affiliates | Commission on transactions | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 591 | 497 | 409 | |||||
Ant Financial and its affiliates | Cloud computing revenue | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 761 | 482 | 264 | |||||
Ant Financial and its affiliates | Other amounts earned | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 898 | 529 | 144 | |||||
Expenses incurred | 1,328 | 1,894 | 952 | |||||
Cainiao Network | Commercial arrangements to receive certain logistics services | ||||||||
Related party transactions | ||||||||
Expenses incurred | ¥ 3,437 | 4,444 | ||||||
Cainiao Network | Cost sharing and other services arrangements for administrative services and cloud computing services | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | ¥ 123 | 152 | ||||||
Weibo | Other commercial arrangements to provide cloud computing services | Revenue | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | 304 | 223 | 105 | |||||
Weibo | Strategic collaboration agreement, marketing cooperation agreement and and other commercial arrangements | Cost of revenue and sales and marketing expenses | ||||||||
Related party transactions | ||||||||
Expenses incurred | ¥ 624 | ¥ 615 | ¥ 340 | |||||
Related parties who provide and receive certain services | Other related party transactions relating to services provided and received | Maximum | ||||||||
Related party transactions | ||||||||
Percentage of total revenue that are from related parties | 1.00% | 1.00% | 1.00% | |||||
Percentage of total costs and expenses that are from related parties | 1.00% | 1.00% | 1.00% | |||||
Certain other investees of the Company | Logistics services | Cainiao Network | ||||||||
Related party transactions | ||||||||
Amounts earned by the Company | ¥ 72 | ¥ 261 | ||||||
Expenses incurred | ¥ 5,608 | 12,933 | ||||||
Certain other investees of the Company | Loans | ||||||||
Related party transactions | ||||||||
Amount of outstanding loans | ¥ 2,543 | |||||||
Certain other investees of the Company | Loans | Minimum | ||||||||
Related party transactions | ||||||||
Loans maturity period (in years) | 1 month | |||||||
Certain other investees of the Company | Loans | Maximum | ||||||||
Related party transactions | ||||||||
Loans maturity period (in years) | 10 years | |||||||
Interest rate (as a percent) | 10.00% | |||||||
SoftBank | Share purchase agreement | ||||||||
Related party transactions | ||||||||
Ordinary shares repurchased (in shares) | shares | 27,027,027 | |||||||
Share price | $ / shares | $ 74 | |||||||
Aggregate consideration of the ordinary shares repurchased | $ | $ 2 |
Restricted net assets (Details)
Restricted net assets (Details) ¥ in Millions | 12 Months Ended |
Mar. 31, 2019CNY (¥) | |
Restricted net assets | |
Percentage of net income from subsidiaries and consolidated VIEs incorporated in the PRC to be appropriated to the statutory reserve | 10.00% |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% |
Restricted net assets | ¥ 112,524 |
Commitments- Capital commitment
Commitments- Capital commitments (Details) - CNY (¥) ¥ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Capital expenditures | ||
Capital commitments | ||
Contracted but not provided for | ¥ 9,232 | ¥ 5,788 |
Purchase of property and equipment | ||
Capital commitments | ||
Contracted but not provided for | 5,656 | 3,181 |
Construction of corporate campuses | ||
Capital commitments | ||
Contracted but not provided for | ¥ 3,576 | ¥ 2,607 |
Commitments- Operating lease co
Commitments- Operating lease commitments (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating lease commitments for office facility and transportation equipment | |||
No later than 1 year | ¥ 4,984 | ¥ 2,760 | |
Later than 1 year and no later than 5 years | 10,675 | 7,652 | |
More than 5 years | 15,346 | 11,940 | |
Total | 31,005 | 22,352 | |
Rental expenses under operating leases | ¥ 4,699 | ¥ 2,279 | ¥ 747 |
Commitments- Fees and expenses
Commitments- Fees and expenses (Details) - Co-location, bandwidth fees, licensed copyrights and marketing expenses - CNY (¥) ¥ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Commitments | ||
No later than 1 year | ¥ 21,768 | ¥ 19,737 |
Later than 1 year and no later than 5 years | 22,291 | 12,097 |
More than 5 years | 4,964 | 3,672 |
Total | ¥ 49,023 | ¥ 35,506 |
Commitments- Investment commitm
Commitments- Investment commitments (Details) - CNY (¥) ¥ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Business combinations and equity investments under various arrangements | Maximum | ||
Investment commitments | ||
Amount committed | ¥ 23,954 | ¥ 15,174 |
Commitments- Sponsorship commit
Commitments- Sponsorship commitment (Details) - Framework agreement with the International Olympic Committee and the United States Olympic Committee - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 31, 2017 |
Sponsorship commitment | |||
Amount committed | $ 738 | $ 770 | |
Minimum | |||
Sponsorship commitment | |||
Amount committed | $ 815 |
Risks and contingencies (Detail
Risks and contingencies (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | |
Complaint about registration statement and prospectus | |||||
Risks and contingencies | |||||
Settlement provision | $ 250 | ¥ 1,679 | |||
Collectability of payments made relating to trade assurance program | |||||
Risks and contingencies | |||||
Provisions made in relation to the program | ¥ 0 | ¥ 0 | ¥ 0 |
Segment information - Segment E
Segment information - Segment EBITA and Segment EBITDA (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Revenue | $ 56,152 | ¥ 376,844 | ¥ 250,266 | ¥ 158,273 |
Income (Loss) from operations | 8,506 | 57,084 | 69,314 | 48,055 |
Add: share-based compensation expense | 37,491 | 20,075 | 15,995 | |
Add: amortization of intangible assets | $ 1,599 | 10,727 | 7,120 | 5,122 |
Add: impairment of goodwill | 0 | 494 | 0 | |
Add: settlement of U.S. federal class action lawsuit | 1,679 | |||
Core commerce | ||||
Revenue | 323,400 | 214,020 | 133,880 | |
Cloud computing | ||||
Revenue | 24,702 | 13,390 | 6,663 | |
Digital media and entertainment | ||||
Revenue | 24,077 | 19,564 | 14,733 | |
Add: impairment of goodwill | 494 | |||
Innovation initiatives and others | ||||
Revenue | 4,665 | 3,292 | 2,997 | |
Total segments | ||||
Revenue | 376,844 | 250,266 | 158,273 | |
Income (Loss) from operations | 71,963 | 78,617 | 55,819 | |
Add: share-based compensation expense | 30,788 | 16,589 | 11,666 | |
Add: amortization of intangible assets | 10,491 | 6,794 | 4,804 | |
Adjusted EBITA | 113,242 | 102,000 | 72,289 | |
Total segments | Core commerce | ||||
Revenue | 323,400 | 214,020 | 133,880 | |
Income (Loss) from operations | 109,312 | 102,743 | 74,180 | |
Add: share-based compensation expense | 17,694 | 8,466 | 5,994 | |
Add: amortization of intangible assets | 9,161 | 2,891 | 2,258 | |
Adjusted EBITA | ¥ 136,167 | ¥ 114,100 | ¥ 82,432 | |
Adjusted EBITA margin | 42.00% | 42.00% | 53.00% | 62.00% |
Total segments | Cloud computing | ||||
Revenue | ¥ 24,702 | ¥ 13,390 | ¥ 6,663 | |
Income (Loss) from operations | (5,508) | (3,085) | (1,681) | |
Add: share-based compensation expense | 4,332 | 2,274 | 1,201 | |
Add: amortization of intangible assets | 18 | 12 | 4 | |
Adjusted EBITA | ¥ (1,158) | ¥ (799) | ¥ (476) | |
Adjusted EBITA margin | (5.00%) | (5.00%) | (6.00%) | (7.00%) |
Total segments | Digital media and entertainment | ||||
Revenue | ¥ 24,077 | ¥ 19,564 | ¥ 14,733 | |
Income (Loss) from operations | (20,046) | (14,140) | (9,882) | |
Add: share-based compensation expense | 2,988 | 2,142 | 1,454 | |
Add: amortization of intangible assets | 1,262 | 3,693 | 1,886 | |
Adjusted EBITA | ¥ (15,796) | ¥ (8,305) | ¥ (6,542) | |
Adjusted EBITA margin | (66.00%) | (66.00%) | (42.00%) | (44.00%) |
Total segments | Innovation initiatives and others | ||||
Revenue | ¥ 4,665 | ¥ 3,292 | ¥ 2,997 | |
Income (Loss) from operations | (11,795) | (6,901) | (6,798) | |
Add: share-based compensation expense | 5,774 | 3,707 | 3,017 | |
Add: amortization of intangible assets | 50 | 198 | 656 | |
Adjusted EBITA | ¥ (5,971) | ¥ (2,996) | ¥ (3,125) | |
Adjusted EBITA margin | (128.00%) | (128.00%) | (91.00%) | (104.00%) |
Unallocated | ||||
Income (Loss) from operations | ¥ (14,879) | ¥ (9,303) | ¥ (7,764) | |
Add: share-based compensation expense | 6,703 | 3,486 | 4,329 | |
Add: amortization of intangible assets | 236 | 326 | 318 | |
Add: impairment of goodwill | 494 | |||
Add: settlement of U.S. federal class action lawsuit | 1,679 | |||
Adjusted EBITA | ¥ (6,261) | ¥ (4,997) | ¥ (3,117) |
Segment information - Reconcili
Segment information - Reconciliation from the Adjusted EBITA to the consolidated net income (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Share-based compensation expense | ¥ (37,491) | ¥ (20,075) | ¥ (15,995) | |
Amortization of intangible assets | $ (1,599) | (10,727) | (7,120) | (5,122) |
Impairment of goodwill | 0 | (494) | 0 | |
Settlement of U.S. federal class action lawsuit | (1,679) | |||
Consolidated income from operations | 8,506 | 57,084 | 69,314 | 48,055 |
Interest and investment income, net | 6,572 | 44,106 | 30,495 | 8,559 |
Interest expenses | (773) | (5,190) | (3,566) | (2,671) |
Other income, net | 32 | 221 | 4,160 | 6,086 |
Income tax expenses | (2,466) | (16,553) | (18,199) | (13,776) |
Share of results of equity investees | 566 | (20,792) | (5,027) | |
Net income | $ 11,955 | 80,234 | 61,412 | 41,226 |
Total segments | ||||
Adjusted EBITA | 113,242 | 102,000 | 72,289 | |
Share-based compensation expense | (30,788) | (16,589) | (11,666) | |
Amortization of intangible assets | (10,491) | (6,794) | (4,804) | |
Consolidated income from operations | 71,963 | 78,617 | 55,819 | |
Unallocated | ||||
Adjusted EBITA | (6,261) | (4,997) | (3,117) | |
Share-based compensation expense | (6,703) | (3,486) | (4,329) | |
Amortization of intangible assets | (236) | (326) | (318) | |
Impairment of goodwill | (494) | |||
Settlement of U.S. federal class action lawsuit | (1,679) | |||
Consolidated income from operations | ¥ (14,879) | ¥ (9,303) | ¥ (7,764) |
Segment information - depreciat
Segment information - depreciation and amortization expenses of property and equipment and land use rights by segments and others (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Depreciation and amortization of property and equipment and land use rights | $ 2,229 | ¥ 14,962 | ¥ 8,789 | ¥ 5,284 |
Total segments | Core commerce | ||||
Depreciation and amortization of property and equipment and land use rights | 6,672 | 3,784 | 2,124 | |
Total segments | Cloud computing | ||||
Depreciation and amortization of property and equipment and land use rights | 6,580 | 3,047 | 1,438 | |
Total segments | Digital media and entertainment | ||||
Depreciation and amortization of property and equipment and land use rights | 1,182 | 986 | 752 | |
Unallocated | Innovation initiatives and others | ||||
Depreciation and amortization of property and equipment and land use rights | ¥ 528 | ¥ 972 | ¥ 970 |