Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36614 |
Entity Registrant Name | Alibaba Group Holding Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 26/F Tower One |
Entity Address, Address Line Two | Times Square |
Entity Address, Address Line Three | 1 Matheson Street |
Entity Address, City or Town | Causeway Bay |
Entity Address, Country | HK |
Entity Common Stock, Shares Outstanding | 21,357,323,112 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001577552 |
Current Fiscal Year End Date | --03-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers |
Auditor Firm ID | 1389 |
Auditor Location | Hong Kong |
Ordinary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares, par value US$0.000003125 per share |
No Trading Symbol Flag | true |
American Depositary Shares ("ADSs") | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing |
Trading Symbol | BABA |
Security Exchange Name | NYSE |
Business contact member | |
Document Information [Line Items] | |
Contact Personnel Name | Toby Xu |
City Area Code | 852 |
Local Phone Number | 2215-5100 |
Entity Address, Address Line One | 26/F Tower One |
Entity Address, Address Line Two | Times Square |
Entity Address, Address Line Three | 1 Matheson Street |
Entity Address, City or Town | Causeway Bay |
Entity Address, Country | HK |
Contact Personnel Fax Number | 852-2215-5200 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS ¥ in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 CNY (¥) ¥ / shares shares | Mar. 31, 2020 CNY (¥) ¥ / shares shares | |
CONSOLIDATED INCOME STATEMENTS | ||||
Revenue | ¥ 853,062 | $ 134,567 | ¥ 717,289 | ¥ 509,711 |
Cost of revenue | (539,450) | (85,096) | (421,205) | (282,367) |
Product development expenses | (55,465) | (8,749) | (57,236) | (43,080) |
Sales and marketing expenses | (119,799) | (18,898) | (81,519) | (50,673) |
General and administrative expenses | (31,922) | (5,036) | (55,224) | (28,197) |
Amortization and impairment of intangible assets | (11,647) | (1,837) | (12,427) | (13,388) |
Impairment of goodwill | (25,141) | (3,966) | 0 | (576) |
Income from operations | 69,638 | 10,985 | 89,678 | 91,430 |
Interest and investment income [(loss)], net | (15,702) | (2,477) | 72,794 | 72,956 |
Interest expense | (4,909) | (774) | (4,476) | (5,180) |
Other income, net | 10,523 | 1,660 | 7,582 | 7,439 |
Income before income tax and share of results of equity method investees | 59,550 | 9,394 | 165,578 | 166,645 |
Income tax expenses | (26,815) | (4,230) | (29,278) | (20,562) |
Share of results of equity method investees | 14,344 | 2,263 | 6,984 | (5,733) |
Net income | 47,079 | 7,427 | 143,284 | 140,350 |
Net loss attributable to noncontrolling interests | 15,170 | 2,393 | 7,294 | 9,083 |
Net income attributable to Alibaba Group Holding Limited | 62,249 | 9,820 | 150,578 | 149,433 |
Accretion of mezzanine equity | (290) | (46) | (270) | (170) |
Net income attributable to ordinary shareholders | ¥ 61,959 | $ 9,774 | ¥ 150,308 | ¥ 149,263 |
Earnings per share attributable to ordinary shareholders | ||||
Basic | (per share) | ¥ 2.87 | $ 0.45 | ¥ 6.95 | ¥ 7.10 |
Diluted | (per share) | 2.84 | 0.45 | 6.84 | 6.99 |
Earnings per ADS attributable to ordinary shareholders (one ADS equals eight ordinary shares) | ||||
Basic | (per share) | 22.99 | 3.63 | 55.63 | 56.82 |
Diluted | (per share) | ¥ 22.74 | $ 3.59 | ¥ 54.70 | ¥ 55.93 |
Weighted average number of shares used in computing earnings per share (million shares) | ||||
Basic | 21,558 | 21,558 | 21,619 | 21,017 |
Diluted | 21,787 | 21,787 | 21,982 | 21,346 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Parenthetical) | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Jul. 30, 2019 | Jul. 29, 2019 |
CONSOLIDATED INCOME STATEMENTS | |||||
ADS ratio | 8 | 8 | 8 | 8 | 1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | ¥ 47,079 | $ 7,427 | ¥ 143,284 | ¥ 140,350 |
Foreign currency translation: | ||||
Change in unrealized gains (losses) | (15,470) | (2,441) | (18,646) | 3,058 |
Share of other comprehensive income of equity method investees: | ||||
Change in unrealized losses | (784) | (124) | (1,449) | (546) |
Interest rate swaps under hedge accounting and others: | ||||
Change in unrealized (losses) gains | 157 | 25 | 104 | (507) |
Other comprehensive income (loss) | (16,097) | (2,540) | (19,991) | 2,005 |
Total comprehensive income | 30,982 | 4,887 | 123,293 | 142,355 |
Total comprehensive loss attributable to noncontrolling interests | 17,361 | 2,739 | 9,005 | 8,615 |
Total comprehensive income attributable to ordinary shareholders | ¥ 48,343 | $ 7,626 | ¥ 132,298 | ¥ 150,970 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 189,898 | $ 29,956 | ¥ 321,262 |
Short-term investments | 256,514 | 40,464 | 152,376 |
Restricted cash and escrow receivables | 37,455 | 5,908 | 35,207 |
Equity securities and other investments | 8,673 | 1,368 | 9,807 |
Prepayments, receivables and other assets | 145,995 | 23,030 | 124,708 |
Total current assets | 638,535 | 100,726 | 643,360 |
Equity securities and other investments | 223,611 | 35,274 | 237,221 |
Prepayments, receivables and other assets | 113,147 | 17,849 | 98,432 |
Investments in equity method investees | 219,642 | 34,648 | 200,189 |
Property and equipment, net | 171,806 | 27,102 | 147,412 |
Intangible assets, net | 59,231 | 9,343 | 70,833 |
Goodwill | 269,581 | 42,525 | 292,771 |
Total assets | 1,695,553 | 267,467 | 1,690,218 |
Current liabilities: | |||
Current bank borrowings | 8,841 | 1,395 | 3,606 |
Current unsecured senior notes | 9,831 | ||
Income tax payable | 21,753 | 3,431 | 25,275 |
Accrued expenses, accounts payable and other liabilities | 271,460 | 42,822 | 261,140 |
Merchant deposits | 14,747 | 2,326 | 15,017 |
Deferred revenue and customer advances | 66,983 | 10,566 | 62,489 |
Total current liabilities | 383,784 | 60,540 | 377,358 |
Deferred revenue | 3,490 | 551 | 3,158 |
Deferred tax liabilities | 61,706 | 9,734 | 59,598 |
Non-current bank borrowings | 38,244 | 6,033 | 38,335 |
Non-current unsecured senior notes | 94,259 | 14,869 | 97,381 |
Other liabilities | 31,877 | 5,028 | 30,754 |
Total liabilities | 613,360 | 96,755 | 606,584 |
Commitments and contingencies | |||
Mezzanine equity | 9,655 | 1,523 | 8,673 |
Shareholders' equity: | |||
Ordinary shares, US$0.000003125 par value; 32,000,000,000 shares authorized as of March 31, 2021 and 2022; 21,699,031,448 and 21,357,323,112 shares issued and outstanding as of March 31, 2021 and 2022, respectively | 1 | 1 | |
Additional paid-in capital | 410,506 | 64,755 | 394,308 |
Treasury shares, at cost | (2,221) | (350) | |
Subscription receivables | (46) | (7) | (47) |
Statutory reserves | 9,839 | 1,552 | 7,347 |
Accumulated other comprehensive (loss) income | |||
Cumulative translation adjustments | (33,184) | (5,234) | (18,930) |
Unrealized (losses) gains on interest rate swaps and others | 27 | 4 | (133) |
Retained earnings | 563,557 | 88,899 | 554,924 |
Total shareholders' equity | 948,479 | 149,619 | 937,470 |
Noncontrolling interests | 124,059 | 19,570 | 137,491 |
Total equity | 1,072,538 | 169,189 | 1,074,961 |
Total liabilities, mezzanine equity and equity | ¥ 1,695,553 | $ 267,467 | ¥ 1,690,218 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares- par value | $ 0.000003125 | $ 0.000003125 |
Ordinary shares- shares authorized | 32,000,000,000 | 32,000,000,000 |
Ordinary shares, shares issued | 21,357,323,112 | 21,699,031,448 |
Ordinary shares, shares outstanding | 21,357,323,112 | 21,699,031,448 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Millions, $ in Millions | Total shareholders' equity CNY (¥) | Ordinary Shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Treasury shares CNY (¥) | Restructuring reserve CNY (¥) | Subscription receivables CNY (¥) | Statutory reserves CNY (¥) | Cumulative translation adjustments CNY (¥) | Unrealized gains (losses) on interest rate swaps and others CNY (¥) | Retained earnings CNY (¥) | Noncontrolling interest CNY (¥) | CNY (¥) shares | USD ($) shares | |
Balance at Mar. 31, 2019 | ¥ 492,257 | ¥ 1 | ¥ 231,783 | ¥ (97) | ¥ (49) | ¥ 5,068 | ¥ (2,592) | ¥ 257 | ¥ 257,886 | ¥ 116,326 | ¥ 608,583 | |||
Balance (in shares) at Mar. 31, 2019 | shares | [1] | 20,696,476,576 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Foreign currency translation adjustment | 2,712 | (2) | 2,711 | 3 | 344 | 3,056 | ||||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | (732) | (186) | (537) | (9) | (732) | |||||||||
Change in fair value of interest rate swaps under hedge accounting and others | (507) | (507) | (507) | |||||||||||
Net income for the year | 149,433 | 149,433 | (8,959) | 140,474 | ||||||||||
Acquisition of subsidiaries | 2,252 | 2,252 | (501) | 1,751 | ||||||||||
Acquisition of subsidiaries (in shares) | shares | [1] | 14,329,896 | ||||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options | 960 | 960 | 960 | |||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options (in shares) | shares | [1] | 206,246,032 | ||||||||||||
Issuance of shares - global offering, net of issuance costs | 91,112 | 91,112 | 91,112 | |||||||||||
Issuance of shares - global offering, net of issuance costs (in shares) | shares | [1] | 575,000,000 | ||||||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | [1] | (57,560) | ||||||||||||
Transactions with noncontrolling interests | (9,629) | (9,629) | 4,138 | (5,491) | ||||||||||
Amortization of compensation cost | 27,584 | 27,584 | 4,009 | 31,593 | ||||||||||
Appropriation to statutory reserves | 1,032 | (1,032) | ||||||||||||
Others | (41) | (169) | ¥ 97 | 31 | (210) | (251) | ||||||||
Balance at Mar. 31, 2020 | 755,401 | ¥ 1 | 343,707 | (51) | 6,100 | (387) | (256) | 406,287 | 115,147 | 870,548 | ||||
Balance (in shares) at Mar. 31, 2020 | shares | [1] | 21,491,994,944 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Foreign currency translation adjustment | (17,071) | 4 | (17,092) | 17 | (1,571) | (18,642) | ||||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | (747) | 702 | (1,451) | 2 | 1 | (746) | ||||||||
Change in fair value of interest rate swaps under hedge accounting and others | 104 | 104 | 104 | |||||||||||
Net income for the year | 150,578 | 150,578 | (7,434) | 143,144 | ||||||||||
Acquisition of subsidiaries | 1,836 | 1,836 | 28,389 | 30,225 | ||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options | 205 | 205 | 205 | |||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options (in shares) | shares | 211,562,920 | |||||||||||||
Repurchase and retirement of ordinary shares | (773) | (79) | (694) | (773) | ||||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | (4,526,416) | |||||||||||||
Transactions with noncontrolling interests | 1,201 | 1,201 | (507) | 694 | ||||||||||
Amortization of compensation cost | 47,006 | 47,006 | 3,983 | 50,989 | ||||||||||
Appropriation to statutory reserves | 1,247 | (1,247) | ||||||||||||
Others | (270) | (270) | (517) | (787) | ||||||||||
Balance at Mar. 31, 2021 | 937,470 | ¥ 1 | 394,308 | (47) | 7,347 | (18,930) | (133) | 554,924 | 137,491 | ¥ 1,074,961 | ||||
Balance (in shares) at Mar. 31, 2021 | shares | 21,699,031,448 | 21,699,031,448 | 21,699,031,448 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Foreign currency translation adjustment | (13,466) | 1 | (13,470) | 3 | (2,003) | ¥ (15,469) | ||||||||
Share of additional paid-in capital and other comprehensive income of equity method investees | (1,229) | (445) | (784) | 2 | (1,227) | |||||||||
Change in fair value of interest rate swaps under hedge accounting and others | 157 | 157 | 157 | $ 25 | ||||||||||
Net income for the year | 62,249 | 62,249 | (15,358) | 46,891 | ||||||||||
Acquisition of subsidiaries | 59 | 59 | ||||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options | 109 | 109 | 109 | |||||||||||
Issuance of shares, including vesting of RSUs and early exercised options and exercise of share options (in shares) | shares | 177,096,968 | |||||||||||||
Repurchase and retirement of ordinary shares | (61,912) | (8,567) | ¥ (2,221) | (51,124) | (61,912) | |||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | (518,805,304) | |||||||||||||
Transactions with noncontrolling interests | 6,057 | 6,057 | (38) | 6,019 | ||||||||||
Amortization of compensation cost | 19,334 | 19,334 | 4,670 | 24,004 | ||||||||||
Appropriation to statutory reserves | 2,492 | (2,492) | ||||||||||||
Others | (290) | (290) | (764) | (1,054) | ||||||||||
Balance at Mar. 31, 2022 | ¥ 948,479 | ¥ 1 | ¥ 410,506 | ¥ (2,221) | ¥ (46) | ¥ 9,839 | ¥ (33,184) | ¥ 27 | ¥ 563,557 | ¥ 124,059 | ¥ 1,072,538 | $ 169,189 | ||
Balance (in shares) at Mar. 31, 2022 | shares | 21,357,323,112 | 21,357,323,112 | 21,357,323,112 | |||||||||||
[1] Note |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 47,079 | $ 7,427 | ¥ 143,284 | ¥ 140,350 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Revaluation (gain) loss on previously held equity interest | 2 | (8,759) | (1,538) | |
(Gain) Loss on disposals of equity method investees | 32 | 5 | (644) | (1) |
Loss (Gain) related to equity securities and other investments | 20,479 | 3,230 | (57,930) | 4,439 |
Change in fair value of other assets and liabilities | 1,478 | 233 | 250 | 1,661 |
Gain in relation to the receipt of the 33% equity interest in Ant Group Co., Ltd. ("Ant Group") (Note 4(k)) | (71,561) | |||
Gain on disposals of subsidiaries | (1,163) | (183) | (383) | (10,042) |
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 27,808 | 4,386 | 26,389 | 20,523 |
Amortization of intangible assets and licensed copyrights | 20,257 | 3,195 | 21,520 | 21,904 |
Share-based compensation expense | 23,971 | 3,782 | 50,120 | 31,742 |
Impairment of equity securities and other investments, and other assets | 8,922 | 1,407 | 7,481 | 13,256 |
Impairment of goodwill, intangible assets and licensed copyrights | 25,886 | 4,083 | 1,688 | 4,104 |
(Gain) Loss on disposals of property and equipment | 132 | 21 | 75 | (24) |
Amortization of restructuring reserve | 97 | |||
Share of results of equity method investees | (14,344) | (2,263) | (6,984) | 5,733 |
Deferred income taxes | (1,369) | (216) | 3,236 | (3,443) |
Allowance for doubtful accounts | 1,739 | 275 | 1,935 | 1,989 |
Changes in assets and liabilities, net of effects of acquisitions and disposals: | ||||
Prepayments, receivables and other assets, and long-term licensed copyrights (Note 2(x)) | (32,496) | (5,126) | (43,611) | (43,386) |
Income tax payable | (3,526) | (556) | 4,026 | 2,538 |
Accrued expenses, accounts payable and other liabilities | 13,327 | 2,103 | 74,554 | 51,474 |
Merchant deposits | (270) | (43) | 1,377 | 2,878 |
Deferred revenue and customer advances | 4,815 | 760 | 14,162 | 7,914 |
Net cash provided by operating activities | 142,759 | 22,520 | 231,786 | 180,607 |
Cash flows from investing activities: | ||||
Increase in short-term investments, net | (106,984) | (16,876) | (114,826) | (24,907) |
Payments for settlement of forward exchange contracts | (448) | (71) | (803) | (193) |
Acquisitions of equity securities and other investments and other assets | (39,378) | (6,212) | (57,514) | (29,944) |
Disposals of equity securities and other investments | 14,543 | 2,294 | 7,280 | 18,798 |
Acquisitions of equity method investees | (9,383) | (1,480) | (18,661) | (24,488) |
[Disposals, distributions and dividends] of equity method investees | 936 | 148 | 2,538 | 78 |
Disposals of intellectual property rights and assets (Note 4(k)) | 369 | 12,648 | ||
Acquisitions of: | ||||
Land use rights, property and equipment | (53,309) | (8,409) | (41,450) | (32,550) |
Licensed copyrights (Note 2(x)) and other intangible assets | (15) | (2) | (1,735) | (12,836) |
Cash paid for business combinations, net of cash acquired | (4,087) | (645) | (19,137) | (14,536) |
Deconsolidation and disposal of subsidiaries, net of cash proceeds | (11) | (2) | (126) | (107) |
Loans to employees, net of repayments | (456) | (72) | (129) | (35) |
Net cash used in investing activities | (198,592) | (31,327) | (244,194) | (108,072) |
Cash flows from financing activities: | ||||
Issuance of ordinary shares | 109 | 17 | 175 | 91,506 |
Repurchase of ordinary shares | (61,225) | (9,658) | (773) | |
Acquisition of additional equity interests in non-wholly owned subsidiaries | (7,406) | (1,168) | (11,218) | (15,402) |
Dividends paid by non-wholly owned subsidiaries to noncontrolling interests | (881) | (139) | (471) | (278) |
Capital injection from noncontrolling interests | 12,240 | 1,931 | 11,020 | 11,049 |
Proceeds from bank borrowings, net of upfront fee payment for a syndicated loan | 9,427 | 1,487 | 6,402 | 15,719 |
Repayment of bank borrowings | (7,128) | (1,125) | (7,061) | (15,943) |
Proceeds from unsecured senior notes, net of debt issuance cost | 32,008 | |||
Repayment of unsecured senior notes | (9,585) | (1,512) | (15,798) | |
Net cash provided by (used in) financing activities | (64,449) | (10,167) | 30,082 | 70,853 |
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables | (8,834) | (1,394) | (7,187) | 4,100 |
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables | (129,116) | (20,368) | 10,487 | 147,488 |
Cash and cash equivalents, restricted cash and escrow receivables at beginning of year | 356,469 | 56,232 | 345,982 | 198,494 |
Cash and cash equivalents, restricted cash and escrow receivables at end of year | 227,353 | 35,864 | 356,469 | 345,982 |
Supplemental disclosures of cash flow information: | ||||
Payment of income tax | 31,733 | 20,898 | 21,474 | |
Payment of interest | 4,886 | 4,101 | 5,066 | |
Business combinations: | ||||
Cash paid for business combinations | (5,282) | (27,014) | (16,022) | |
Cash acquired in business combinations | 1,195 | 7,877 | 1,486 | |
Cash paid for business combinations, net of cash acquired | ¥ (4,087) | $ (645) | ¥ (19,137) | ¥ (14,536) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Mar. 31, 2020 | Sep. 30, 2019 |
Ant Group | ||
Equity interest (as a percent) | 33% | 33% |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Mar. 31, 2022 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities 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, retailers and other businesses to leverage the power of new technology to engage with their users and customers and operate in a more efficient way. SoftBank Group Corp. (together with its subsidiaries, “SoftBank”) is a major shareholder of the Company. The Company has seven operating and reportable The Company’s China commerce segment is comprised of (i) China commerce retail businesses and (ii) China commerce wholesale businesses. China commerce retail businesses consist of Taobao, the digital retail platform and Tmall, the third-party online and mobile commerce platform, Taobao Deals, which offers consumers value-for-money products, Taocaicai, which provides next-day pick-up services for groceries and fresh goods at neighborhood pick-up points, as well as direct sales businesses, including Sun Art, Tmall Supermarket and Freshippo, which the Company has developed a digital commerce infrastructure that offers an upgraded consumer experience by integrating online and offline capabilities for the Company’s marketplaces and direct sales businesses. China commerce wholesale businesses include 1688.com, the integrated domestic wholesale marketplace. The Company’s International commerce segment is comprised of (i) International commerce retail businesses and (ii) International commerce wholesale businesses. International commerce retail businesses include Lazada, the e-commerce platform in Southeast Asia, AliExpress, the international retail marketplace, Trendyol, the e-commerce platform in Türkiye, and Daraz, the e-commerce platform across South Asia with key markets in Pakistan and Bangladesh. International commerce wholesale businesses include Alibaba.com, the integrated international online wholesale marketplace. The Company’s Local consumer services segment is comprised of (i) “To-Home” businesses which include Ele.me, the local services and on-demand delivery platform, and Taoxianda, the online-offline integration service solution for FMCG brands and third-party grocery retail partners, and (ii) “To-Destination” businesses which include Amap, the provider of mobile digital map, navigation and real-time traffic information in China, Fliggy, the online travel platform, and Koubei, the restaurant and local services guide platform for in-store consumption. The Company’s Cainiao segment is comprised of Cainiao Network, which leverages the Company’s self-developed and the Company’s logistics partners’ capacity and capabilities, and offers domestic and international one-stop-shop logistics services and supply chain management solutions, fulfilling various logistics needs of merchants and consumers at scale. The Company’s Cloud segment is comprised of Alibaba Cloud, a cloud business that offers a complete suite of cloud services, including proprietary servers, elastic computing, storage, network, security, database and big data, and IoT services, as well as DingTalk, the digital collaboration workplace and application development platform that offers new ways of working, sharing and collaboration for modern enterprises and organizations. The Company’s Digital media and entertainment segment leverages the Company’s deep consumer insights to serve the broader interests of consumers through the Company’s key distribution platforms, including Youku, and the Company’s other diverse content platforms, including Alibaba Pictures, that provide online videos, films, live events, news feeds and literature, among others. In addition, the Company engages in the development, distribution and operation of mobile games through Lingxi Games. The Company’s Innovation initiatives and others segment includes businesses such as DAMO Academy, the global research program in cutting-edge technologies that aim to integrate and speed up knowledge exchange between science and industry, Tmall Genie, which provides a selection of IoT-enabled smart home appliances, and others. 1. Organization and principal activities (Continued) The Company’s American depositary shares (“ADSs”) have been listed on the New York Stock Exchange (“NYSE”) under the symbol of “BABA”. On November 26, 2019, the Company completed its global offering and the Company’s ordinary shares have been listed on the Hong Kong Stock Exchange (“HKSE”) under the code “9988”. The Company issued 575,000,000 ordinary shares, including 75,000,000 ordinary shares under an over-allotment option, at Hong Kong Dollar (“HK$”)176 per share. Net proceeds raised by the Company from the global offering after deducting underwriting discounts and commissions and other offering expenses amounted to Renminbi (“RMB”)90,442 million. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Effective on July 30, 2019, the Company subdivided each of its issued and unissued ordinary shares into eight ordinary shares (the “Share Subdivision”). Following the Share Subdivision, the Company’s authorized share capital became United States Dollar (“US$”) 100,000 divided into 32,000,000,000 ordinary shares of par value US$ 0.000003125 per share. The number of issued and unissued ordinary shares as disclosed elsewhere in these consolidated financial statements are presented on a basis after taking into account the effects of the Share Subdivision and have been retrospectively adjusted, where applicable. Simultaneously with the Share Subdivision, the change in ratio of the Company’s ADS to ordinary share (the “ADS Ratio Change”) also became effective. Following the ADS Ratio Change, each ADS now represents eight ordinary shares. Previously, each ADS represented one ordinary share. Given that the ADS Ratio Change was exactly proportionate to the Share Subdivision, no new ADSs were issued to any ADS holder and the total number of the Company’s outstanding ADSs remains unchanged immediately after the Share Subdivision and the ADS Ratio Change became effective. Translations of balances in the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows from RMB into the US$ as of and for the year ended March 31, 2022 are solely for the convenience of the readers and are calculated at the rate of US$1.00=RMB 6.3393 , representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ 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. 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. As of March 31, 2022, the Company considered the economic implications of the COVID-19 pandemic on its significant judgments and estimates. Given the impact and other unforeseen effects on the global economy from the COVID-19 pandemic, these estimates required increased judgment, and actual results could differ from these estimates. (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 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. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 meetings 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 businesses and other businesses in which foreign investment is restricted or prohibited in the PRC through various contractual arrangements with VIEs that are incorporated and owned by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, these representative PRC domestic companies are Zhejiang Taobao Network Co., Ltd., Zhejiang Tmall Network Co., Ltd., Hangzhou Alibaba Advertising Co., Ltd., Hangzhou Ali Venture Capital Co., Ltd., Shanghai Rajax Information Technology Co., Ltd., Alibaba Cloud Computing Ltd. and Alibaba Culture Entertainment 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 representative VIEs are set forth below: (i) Contracts that give the Company effective control of VIEs 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 or the acquisition of the VIEs. 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 or equity interests in the VIEs to any third party. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 Capital Decrease Price, or 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 decrease 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 of 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) Contracts that enable the Company to receive substantially all of the economic benefits from the VIEs 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. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 equity holder of 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 decrease 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 consolidated VIEs and their subsidiaries was recorded in the accompanying consolidated financial statements: As of March 31, 2021 2022 (in millions of RMB) Cash and cash equivalents and short-term investments 17,295 15,943 Investments in equity method investees and equity securities and other investments 44,125 37,647 Accounts receivable, net of allowance 18,259 22,003 Amounts due from non-VIE subsidiaries of the Company 19,838 28,377 Property and equipment, net and intangible assets, net 7,354 8,608 Others 18,726 25,927 Total assets 125,597 138,505 Amounts due to non-VIE subsidiaries of the Company 94,779 89,271 Accrued expenses, accounts payable and other liabilities 30,684 38,826 Deferred revenue and customer advances 13,103 13,570 Total liabilities 138,566 141,667 Year ended March 31, 2020 2021 2022 (in millions of RMB) Revenue (i) 81,742 93,029 111,498 Net (loss) income (1,757) 2,557 5,944 Net cash (used in) provided by operating activities (253) 329 19,932 Net cash used in investing activities (7,289) (18,445) (16,710) Net cash provided by (used in) financing activities 9,887 14,463 (9,904) (i) Revenue generated by the VIEs are primarily from cloud services, digital media and entertainment services and others. The VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 22 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 corresponding jurisdictions, 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 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 acquisition date amounts of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the acquisition date amounts 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 or loss attributable to noncontrolling interests and mezzanine equity holders when applicable. 2. Summary of significant accounting policies (Continued) (d) Business combinations and noncontrolling interests (Continued) Net (loss) income 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, 2020, 2021 and 2022, net (loss) income attributable to mezzanine equity holders amounted to RMB(124) million, RMB140 million and RMB188 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. Prior to the quarter ended December 31, 2021, the Company had four operating and reportable segments reportable segments (f) Foreign currency translation The functional currency of the Company is US$. The Company’s subsidiaries with operations in mainland China, the Hong Kong Special Administrative Region of the PRC (“Hong Kong” or “Hong Kong S.A.R.”), the United States and other jurisdictions generally use their respective local currencies as their functional currencies. When the Company determines that a subsidiary is operating in a highly inflationary economy, the financial statements of this subsidiary shall be remeasured prospectively as if the functional currency were the functional currency of its immediate parent company. 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. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition Revenue is principally comprised of customer management services revenue, membership fees, logistics services revenue, cloud 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. 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. Generally, when the Company is primarily obligated in a transaction, is 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. Generally, when the Company is not primarily obligated in a transaction, does not 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 applies the practical expedient to not adjust any of the transaction price for the time value of money for contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer is within one year. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition (Continued) Revenue recognition policies by type are as follows: (i) Customer management services revenue Within the Company’s China commerce and International commerce segments, 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 results on the Company’s marketplaces. Merchants bid for keywords through an online auction 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. In-feed marketing services In-feed marketing services allow merchants to bid to market to groups of consumers with similar profiles that match product or service listings appearing in browser results on the Company’s marketplaces. Merchants bid for groups of consumers with similar profiles through an online auction 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 in-feed 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 market-based 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 services content through the third-party marketing affiliate program. A substantial portion of customer management services 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. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition (Continued) P4P marketing services revenue, in-feed marketing services revenue, as well as display marketing services 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. Commissions on transactions 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(ac)), which 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. Adjustments to the estimated variable consideration related to prior reporting periods were not material for each of the periods presented. 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 commission revenue is recognized at the time when the underlying transaction is completed. The Company evaluates if it is a principal or an agent in a transaction to determine whether the commission revenue is recognized on a gross or net basis. When the Company is the agent of the arrangement (such as arrangements where the Company does not have latitude in establishing prices or does not have inventory risk), the commission revenue is recorded on a net basis. When 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 affiliate |
Recent accounting pronouncement
Recent accounting pronouncements | 12 Months Ended |
Mar. 31, 2022 | |
Recent accounting pronouncements | |
Recent accounting pronouncements | 3. Recent accounting pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and issued a subsequent amendment which refines the scope of the ASU and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate reform activities in January 2021 within ASU 2021-01 (collectively, including ASU 2020-04, “ASC 848”). ASC 848 provides optional expedients and exceptions for applying U.S. GAAP on contract modifications and hedge accounting to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. These optional expedients and exceptions provided in ASC 848 are effective for the Company from January 1, 2020 through December 31, 2022. The Company has elected the optional expedients for certain existing interest rate swaps that are designated as cash flow hedges, which did not have a material impact on the financial position, results of operations and cash flows. The Company is evaluating the effects, if any, of the potential election of the other optional expedients and exceptions provided in this guidance on the financial position, results of operations and cash flows. In August 2020, the FASB issued ASU 2020-06, “Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies an issuer’s accounting for certain convertible instruments and the application of derivatives scope exception for contracts in an entity’s own equity. This guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and required enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The new guidance is required to be applied either retrospectively to financial instruments outstanding as of the beginning of the first comparable reporting period for each prior reporting period presented or retrospectively with the cumulative effect of the change to be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. This guidance is effective for the Company for the year ending March 31, 2023 and interim reporting periods during the year ending March 31, 2023. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which provides guidance on the acquirer’s accounting for acquired revenue contracts with customers in a business combination. The amendments require an acquirer recognizes and measures contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with ASC 606 as if it had originated the contracts. This guidance also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The new guidance is required to be applied prospectively to business combinations occurring on or after the date of adoption. This guidance is effective for the Company for the year ending March 31, 2024 and interim reporting periods during the year ending March 31, 2024. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, which provides guidance on the disclosure of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The new guidance is required to be applied either prospectively to all transactions within the scope of ASU 2021-10 that are reflected in financial statements at the date of adoption and new transactions that are entered into after the date of adoption or retrospectively to those transactions. This guidance is effective for the Company for the year ending March 31, 2023. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. |
Significant mergers and acquisi
Significant mergers and acquisitions and investments | 12 Months Ended |
Mar. 31, 2022 | |
Significant mergers and acquisitions and investments | |
Significant mergers and acquisitions and investments | 4. Significant mergers and acquisitions and investments Mergers and acquisitions (a) Acquisition of Sun Art Retail Group Limited (“Sun Art”) Sun Art, a company that is listed on the HKSE, is a leading hypermarket operator in the PRC. The Company previously held an approximately 31% effective equity interest in Sun Art and the investment in Sun Art was previously accounted for under the equity method. New Retail Strategic Opportunities Fund, L.P. (the “Offshore Retail Fund”), an investment fund for which the Company is able to exercise significant influence over its investment decisions, is also an existing shareholder in Sun Art. In October 2020, the Company acquired additional effective equity interest in Sun Art for a cash consideration of US$3.6 billion (RMB24.1 billion). Upon the completion of the transaction, the Company’s effective equity interest in Sun Art increased to approximately 67% and Sun Art became a consolidated subsidiary of the Company. 4. Significant mergers and acquisitions and investments (Continued) (a) Acquisition of Sun Art Retail Group Limited (“Sun Art”) (Continued) 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) 49,672 Amortizable intangible assets (ii) Trade names, trademarks and domain names 11,500 Non-compete agreements 4,700 Developed technology and patents 615 User base and customer relationships 47 Goodwill (Note 17) 13,474 Deferred tax liabilities (9,629) Noncontrolling interests (iii) (23,684) 46,695 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 24,136 ‑ fair value of previously held equity interests 22,559 46,695 (i) Net assets acquired primarily included property and equipment of RMB 27,333 million, operating lease right-of-use assets relating to land use rights of RMB 22,997 million, payables and accruals for cost of revenue of RMB 14,681 million, short-term investments of RMB 14,387 million, customer advances of RMB 11,082 million and inventories of RMB 9,341 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 11.8 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 RMB6,381 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, 2021. The fair value of the previously held equity interests was estimated with reference to the market price per share as of the acquisition date. As reported in Sun Art’s 2020/2021 annual report, revenue and net income for the 15 months ended March 31, 2021 were RMB124.3 billion and RMB3.8 billion, respectively. Revenue and net income for the year ended December 2019 were RMB95.4 billion and RMB3.0 billion, respectively. The acquisition of Sun Art demonstrates the Company’s continued commitment to Sun Art as well as to further update its digital commerce infrastructure by further integrating online and offline resources in the PRC’s retail sector. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Sun Art and the Company, the assembled workforce and their knowledge and experience in the retail sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. In December 2020, the Company acquired additional ordinary shares of Sun Art from public shareholders for a cash consideration of HK$4.9 billion (RMB4.1 billion) through a mandatory general offer as required under the Hong Kong Code on Takeovers and Mergers, which resulted in a reduction in noncontrolling interests amounting to RMB4,592 million. Upon the completion of the mandatory general offer, the Company’s effective equity interest in Sun Art further increased to approximately 74%. 4. Significant mergers and acquisitions and investments (Continued) (b) Acquisition of HQG, Inc. (“Koala”) Koala is an import e-commerce platform in the PRC. In September 2019, the Company acquired a 100% equity interest in Koala from NetEase, Inc. for an aggregate purchase price of US$ 1,874 million (RMB 13,326 million), comprising cash and approximately 14.3 million newly issued ordinary shares (equivalent to approximately 1.8 million ADSs) of the Company valued at US$ 316 million (RMB 2,252 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) 1,621 Amortizable intangible assets (ii) Trade names, trademarks and domain names 2,531 User base and customer relationships 1,297 Non-compete agreements 1,040 Developed technology and patents 394 Goodwill 6,781 Deferred tax liabilities (338) 13,326 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 10,025 - share consideration 2,252 - contingent consideration (iii) 1,049 13,326 (i) Net assets acquired primarily included inventories of RMB 1,943 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 8.5 years. (iii) Contingent consideration primarily includes cash consideration that is contingently payable upon the satisfaction of certain non-compete provisions by the selling equity holders, and will not exceed RMB 846 million. The Company expected that the acquisition will further elevate the Company’s import service and experience for consumers in the PRC through synergies across the Company’s ecosystem. Goodwill arising from this acquisition was attributable to the synergies expected from the combined operations of Koala and the Company, the assembled workforce and their knowledge and experience in the import e-commerce sector in the PRC. The Company did not expect the goodwill recognized to be deductible for income tax purposes. 4. Significant mergers and acquisitions and investments (Continued) (c) Other acquisitions Other acquisitions that constitute business combinations are summarized in the following table: Year ended March 31, 2020 2021 2022 (in millions of RMB) Net assets (liabilities) 846 (106) 852 Identifiable intangible assets 364 3,888 1,000 Deferred tax liabilities (53) (195) (170) 1,157 3,587 1,682 Noncontrolling interests and mezzanine equity (998) (3,310) (1,884) Net identifiable assets (liabilities) 159 277 (202) Goodwill 7,840 4,105 3,283 Total purchase consideration 7,999 4,382 3,081 Fair value of previously held equity interests (2,215) (2,434) (31) Purchase consideration settled (5,146) (1,794) (2,671) Deferred consideration as of year end 638 154 379 Total purchase consideration is comprised of: - cash consideration 5,784 875 3,050 - non-cash consideration — 1,073 — - fair value of previously held equity interests 2,215 2,434 31 7,999 4,382 3,081 In relation to the revaluation of previously held equity interests, the Company recognized a gain of RMB1,538 million, a gain of RMB2,378 million and a loss of RMB2 million in the consolidated income statements for the years ended March 31, 2020, 2021 and 2022, respectively, for the other acquisitions that constitute business combinations. Pro forma results of operations for these acquisitions have not been presented because the effects of these acquisitions, except for Sun Art (Note 4(a)), are not material to the consolidated income statements for the year ended March 31, 2020, 2021 and 2022, either individually or in aggregate. Equity investments and others (d) Investment in Bilibili, Inc. (“Bilibili”) Bilibili, a company that is listed on both the Nasdaq Global Select Market and the HKSE, is a PRC-based video streaming platform. The Company previously held approximately 8% equity interest in Bilibili. In March 2021, the Company acquired newly issued shares of Bilibili for a cash consideration of HK$ 5,818 million (RMB 4,885 million). Upon the completion of the transaction, the Company’s equity interest in Bilibili remained at approximately 8 %. The investment is carried at fair value with unrealized gains and losses recorded in the consolidated income statements both before and after the additional investment in March 2021. 4. Significant mergers and acquisitions and investments (Continued) (e) Investment in STO Express Co., Ltd. (“STO Express”) STO Express, a company that is listed on the Shenzhen Stock Exchange, is one of the leading express delivery services companies in the PRC. In July 2019, the Company acquired an approximately 14.7% effective equity interest in STO Express through an investment vehicle for a cash consideration of RMB 4.7 billion. The investment was accounted for under the fair value option and recorded under equity securities and other investments. In addition, under a call option agreement the Company entered into with the same major shareholder of STO Express, the Company may elect to acquire an additional effective equity interest of approximately 31.3% in STO Express for a total consideration of RMB 10.0 billion. The call option agreement is measured at fair value with unrealized gains and losses recorded in the consolidated income statements. Losses recorded in interest and investment income, net relating to this call option agreement amounted to RMB 1,766 million, RMB 1,413 million and RMB 36 million for the years ended March 31, 2020, 2021 and 2022, respectively. In February 2021, the Company acquired additional effective equity interest in STO Express for a cash consideration of RMB 3.3 billion by effectively exercising a portion of the above call options. Upon the completion of the transaction, the Company’s effective equity interest in STO Express increased to 25% and the investment in STO Express is accounted for under the equity method (Note 14). Out of the total consideration, which primarily included the cash consideration and the carrying amount of the effective equity interest in STO Express previously held by the Company, RMB 1,731 million was allocated to amortizable intangible assets, RMB 2,433 million was allocated to goodwill, RMB 477 million was allocated to deferred tax liabilities and RMB 2,002 million was allocated to net assets acquired. The Company may elect to exercise the remaining call options to acquire an additional effective equity interest of 21% in STO Express for a total consideration of RMB 6.7 billion at any time on or before December 27, 2022. (f) Investment in Mango Excellent Media Co., Ltd. (“Mango Excellent Media”) Mango Excellent Media, a company that is listed on the Shenzhen Stock Exchange, is an audiovisual interaction-focused new media service platform in the PRC. In December 2020, the Company acquired an approximately 5% equity interest in Mango Excellent Media for a cash consideration of RMB 6.2 billion. The investment was carried at fair value with unrealized gains and losses recorded in the consolidated income statements. The investment was fully disposed in October 2021. (g) Investment in China Broadcasting Network Joint Stock Corporation Limited (“China Broadcasting Network”) China Broadcasting Network is a telecommunications company in the PRC. In October and December 2020, the Company invested a total of RMB 10.0 billion for an approximately 7% equity interest in China Broadcasting Network. The investment is accounted for using the measurement alternative. 4. Significant mergers and acquisitions and investments (Continued) (h) Investment in YTO Express Group Co., Ltd. (“YTO Express”) YTO Express, a company that is listed on the Shanghai Stock Exchange, is one of the leading express delivery services companies in the PRC. The Company previously held an approximately 11% equity interest in YTO Express and carried the investment at fair value with unrealized gains and losses recorded in the consolidated income statements. Yunfeng, which is comprised of certain investment funds the general partner of which Jack Ma has equity interests in, is also an existing shareholder of YTO Express. In September 2020, the Company acquired additional equity interest in YTO Express for a cash consideration of RMB 6.6 billion. Upon the completion of the transaction, the Company’s equity interest in YTO Express increased to approximately 23 % and the investment in YTO Express is accounted for under the equity method (Note 14). Out of the total consideration, which included the cash consideration and the carrying amount of the previously held equity interest in YTO Express, RMB 4,442 million was allocated to amortizable intangible assets, RMB 4,270 million was allocated to goodwill, RMB 1,171 million was allocated to deferred tax liabilities and RMB 3,891 million was allocated to net assets acquired. (i) Investment in Meinian Onehealth Healthcare Holdings Co., Ltd. (“Meinian”) Meinian, a company that is listed on the Shenzhen Stock Exchange, offers health examination, health evaluation, health consulting, and other services. In November to December 2019, the Company, together with Ant Group, acquired new and existing shares of Meinian, representing an approximately 14 % equity interest in Meinian for a total cash consideration of RMB 6,700 million. Yunfeng is also an investor in this transaction. The investment in Meinian is accounted for under the equity method because the Company is able to exercise significant influence over operating and financial policies of Meinian. Out of the total cash consideration, RMB 2,573 million was allocated to amortizable intangible assets, RMB 4,579 million was allocated to goodwill, RMB 643 million was allocated to deferred tax liabilities and RMB 191 million was allocated to net assets acquired. In November 2020, the Company disposed of certain portion of its equity interest in Meinian. Upon the completion of the transaction, the Company’s equity interest in Meinian decreased to approximately 13 %. (j) Investment in AliExpress Russia Holding Pte. Ltd. (“AliExpress Russia Joint Venture”) AliExpress Russia Joint Venture is a joint venture set up by the Company, VK Company Limited (“VK”, formerly known as Mail.ru Group Limited), a leading Internet company in Russia, Public Joint Stock Company MegaFon (“MegaFon”, a Russian mobile telecommunications operator) and Joint Stock Company “Managing Company of Russian Direct Investment Fund” (“RDIF”, a Russian sovereign wealth fund). In October 2019, the Company invested approximately US $100 million into the joint venture and contributed the Company’s AliExpress Russia businesses into the joint venture. The other shareholders of the joint venture also made cash and non-cash contributions to the joint venture pursuant to the transaction documents. After the completion of the transaction, the Company held an approximately 56% equity interest and less-than-majority voting rights in the joint venture. As part of the transaction, the Company has also acquired a minority stake in VK. The contribution of the Company’s AliExpress Russia businesses into the joint venture resulted in the deconsolidation of these businesses, and a one-time gain of RMB 10.3 billion was recognized in interest and investment income, net in the consolidated income statement for the year ended March 31, 2020. 4. Significant mergers and acquisitions and investments (Continued) (j) Investment in AliExpress Russia Holding Pte. Ltd. (“AliExpress Russia Joint Venture”) (Continued) The investment in the AliExpress Russia Joint Venture is accounted for under the equity method (Note 14). Out of the total consideration, RMB 2,325 million was allocated to amortizable intangible assets, RMB 4,290 million was allocated to goodwill, RMB 116 million was allocated to deferred tax liabilities and RMB 1,630 million was allocated to net assets acquired. In connection with the transaction, the Company also entered into an option agreement with another shareholder of the joint venture, allowing the transfer of equity interest in the joint venture between the Company and this shareholder in the future. In December 2020, this shareholder exercised a call option under this agreement to acquire additional equity interest in the AliExpress Russia Joint Venture from the Company for a cash consideration of US $194 million (RMB 1,269 million). Upon the completion of this transaction, the Company’s equity interest in the AliExpress Russia Joint Venture decreased to approximately 48 %. In August 2021, the Company acquired newly issued shares of the AliExpress Russia Joint Venture for a cash consideration of US$ 192 million (RMB 1,244 million). Other investors also acquired equity interest in the AliExpress Russia Joint Venture in connection with this transaction. Upon the completion of this transaction, the Company’s equity interest in AliExpress Russia Joint Venture remained at approximately 48% . (k) Investment in Ant Group Co., Ltd. (“Ant Group”) Ant Group provides comprehensive digital payment services and facilitates digital financial and value-added services for consumers and merchants, in China and across the world. In August 2014, the Company entered into a share and asset purchase agreement (the “SAPA”), and entered into or amended certain ancillary agreements including an amendment and restatement of the intellectual property license agreement (the “2014 IPLA”) with Alipay.com Co., Ltd. (“Alipay”), a subsidiary of Ant Group. Pursuant to these agreements, the Company restructured its relationships with Ant Group and Alipay. In February 2018, the Company amended both the SAPA and the Alipay commercial agreement, and agreed with Ant Group and certain other parties on forms of certain ancillary agreements. In September 2019, the Company further amended the SAPA and entered into a cross license agreement and certain ancillary agreements and amendments, including the previously agreed form of amendment and restatement of the 2014 IPLA (“the Amended IPLA”). In August 2020, the Company further amended the SAPA, the Alipay commercial agreement and certain other agreements. In July 2022, the Company and Ant Group further amended the SAPA and the Alipay commercial agreement. SAPA Issuance of equity interest In September 2019, following the satisfaction of the closing conditions, the Company received the 33% equity interest in Ant Group pursuant to the SAPA, as amended in 2018 and 2019. Under the SAPA, as amended in 2018 and 2019, the consideration to acquire the newly issued 33% equity interest in Ant Group was fully funded by concurrent payments from Ant Group to the Company in consideration for certain intellectual property rights and assets that the Company transferred to Ant Group upon the issuance of the equity interest. Such consideration was determined based on the fair values of the underlying assets exchanged in the transaction as described above at contract inception in 2014, whereby the fair value of the intellectual property rights and assets approximated the fair value of the equity interest at the time. 4. Significant mergers and acquisitions and investments (Continued) (k) Investment in Ant Group Co., Ltd. (“Ant Group”) (Continued) The Company accounts for its equity interest in Ant Group under the equity method. Upon the receipt of the equity interest in September 2019, this investment was initially measured at cost, with an upward adjustment determined based on the fair value of the Company’s share of Ant Group’s net assets as of the completion date of the transaction. Upon the completion, the Company recorded the 33% equity interest in Ant Group with a carrying value amounting to RMB90.7 billion in investments in equity method investees, other cost reimbursement of RMB0.6 billion from Ant Group to the Company pursuant to the SAPA, as amended in 2018 and 2019, and the deferred tax effect of RMB19.7 billion, with a corresponding gain of RMB71.6 billion recorded in interest and investment income, net in the year ended March 31, 2020. The difference between the carrying value of the 33% equity interest in Ant Group and the Company’s share of the carrying value of Ant Group’s net assets upon completion is a basis difference, which mainly represents the fair value adjustments of amortizable intangible assets with a weighted average amortization period of 9.5 years and equity investments. These adjustments amounted to RMB24.5 billion and RMB5.3 billion, respectively, both of which were net of their corresponding tax effects. The application of accounting principles related to the measurement of the 33% equity interest in Ant Group and the recognition of the upward adjustment require significant management judgment, which included (i) determination of the contract inception date of the SAPA for the initial measurement of the 33% equity interest in Ant Group and (ii) determination of the accounting treatment for the difference between the Company’s share of the fair value of Ant Group’s net assets acquired and the cost of investment when the former is greater than the latter. In relation to the determination of the contract inception date of the SAPA, management considered the relevant U.S. GAAP guidance and focused on the legal enforceability of the agreement, and determined that the contract inception date was in 2014. In relation to the determination of the accounting treatment for the difference between the Company’s share of the fair value of Ant Group’s net assets acquired and the cost of investment when the former is greater than the latter, in the absence of specific guidance and with the diversity in practice, management assessed various views derived from the interpretations of relevant U.S. GAAP and made reference to the relevant guidance of other international accounting framework and recognized the difference under interest and investment income, net with a corresponding increase to the initial carrying value of the investment in Ant Group. Subsequent to the receipt of the equity interest in Ant Group, the proportionate share of results of Ant Group, adjusted for the effects of the basis difference as described above, is recorded in share of results of equity method investees in the consolidated income statements on a one quarter in arrears basis. 4. Significant mergers and acquisitions and investments (Continued) (k) Investment in Ant Group Co., Ltd. (“Ant Group”) (Continued) Pre-emptive rights Following the receipt of equity interest in Ant Group, the Company has pre-emptive rights to participate in other issuances of equity securities by Ant Group and certain of its affiliates prior to the time of Ant Group meeting certain minimum criteria for a qualified IPO set forth in the SAPA (as amended) (a “Qualified IPO”). These pre-emptive rights entitle the Company to maintain the equity ownership percentage the Company holds in Ant Group 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 Group, 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 SAPA (as amended), in certain circumstances the Company is permitted to exercise pre-emptive rights through an alternative arrangement which will further protect the Company from dilution. The value of the pre-emptive rights was considered to be insignificant upon the receipt of equity interest in Ant Group. Corporate governance provisions Under the SAPA (as amended), in addition to jointly recommending an independent director together with Ant Group (who will be subject to vetting requirements as set forth in the SAPA (as amended)), the Company has the right to nominate two officers or employees of the Company for election to the board of Ant Group. In each case, these director nomination rights will continue unless the Company ceases to own a certain amount of its post-issuance equity interest in Ant Group or upon the completion of a Qualified IPO of Ant Group, whichever is earlier. In September 2019, the Company nominated two officers of the Company who have then been elected to the board of Ant Group pursuant to these director nomination rights under the SAPA (as amended). 2014 IPLA and Amended IPLA 2014 IPLA Under the 2014 IPLA, the Company received, in addition to a software technology service fee, royalty streams related to Alipay and other current and future businesses of Ant Group (collectively, the “Profit Share Payments”). The Profit Share Payments were paid at least annually and equaled the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Group, subject to certain adjustments. The expense reimbursement represented the reimbursement for the costs and expenses incurred by the Company in the provision of software technology services. The Company accounted for the Profit Share Payments in the periods when the services were provided, where the payments were expected to approximate the estimated fair values of the services provided. Upon the receipt of the equity interest in September 2019, the Company terminated the 2014 IPLA, and the Profit Share Payments arrangement was terminated. Income in connection with the Profit Share Payments, net of costs incurred by the Company, of RMB3,835 million, was recorded in other income, net in the consolidated income statements for the year ended March 31, 2020 (Note 22). 4. Significant mergers and acquisitions and investments (Continued) (k) Investment in Ant Group Co., Ltd. (“Ant Group”) (Continued) Amended IPLA Pursuant to the SAPA, as amended in 2018 and 2019, the Company, Ant Group and Alipay entered into the Amended IPLA upon the receipt of the 33% equity interest in Ant Group in September 2019, at which time the Company also transferred certain intellectual property and assets to Ant Group. The Amended IPLA will terminate upon the earliest of: ● the full payment of all pre-emptive rights funded payments under the SAPA (as amended); ● the closing of a Qualified IPO of Ant Group or Alipay; and ● the transfer to Ant Group of any remaining intellectual property the Company owns that is exclusively related to the business of Ant Group. (l) Investment in Red Star Macalline Group Corporation Limited (“Red Star”) Red Star, a company that is listed on both the HKSE and Shanghai Stock Exchange, is a leading home improvement and furnishings shopping mall operator in the PRC. In May 2019, the Company completed the subscription of exchangeable bonds issued by the controlling shareholder of Red Star for a cash consideration of RMB 4,359 million. The exchangeable bonds have a term of five years and are exchangeable into ordinary shares of Red Star at an initial price of RMB 12.28 per share, subject to adjustments if there are corporate events such as distribution of stock dividends, new shares issuance and rights issue. The exchangeable bonds are accounted for under the fair value option and recorded under equity securities and other investments. In addition, the Company acquired an approximately 2% equity interest in Red Star for a total consideration of HK$ 447 million (RMB 390 million). The equity interest in Red Star is carried at fair value with unrealized gains and losses recorded in the consolidated income statements.The Offshore Retail Fund is also an investor in this transaction. In September 2021, the Company disposed of certain portion of the exchangeable bonds issued by the controlling shareholder of Red Star. In October 2021, the Company acquired additional equity interest in Red Star for a cash consideration of RMB 350 million. Upon the completion of the transaction, the Company’s equity interest in Red Star increased to approximately 3 %. |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Revenue | 5. Revenue Revenue by segment is as follows: Year ended March 31, 2020 2021 2022 (in millions of RMB) China commerce: China commerce retail (i) - Customer management 244,479 304,543 315,038 - Direct sales and others (ii) 95,071 182,818 260,955 339,550 487,361 575,993 China commerce wholesale (iii) 12,427 14,322 16,712 Total China commerce 351,977 501,683 592,705 International commerce: International commerce retail (iv) 24,323 34,455 42,668 International commerce wholesale (v) 9,594 14,396 18,410 Total International commerce 33,917 48,851 61,078 Local consumer services (vi)(xi) 29,660 35,442 43,491 Cainiao (vii) 22,233 37,258 46,107 Cloud (viii)(xii) 40,301 60,558 74,568 Digital media and entertainment (ix) 29,094 31,186 32,272 Innovation initiatives and others (x)(xi)(xii) 2,529 2,311 2,841 509,711 717,289 853,062 5. Revenue (Continued) (i) Revenue from China commerce retail is primarily generated from the Company’s China commerce retail businesses and includes revenue from customer management services and sales of goods. (ii) Revenue from direct sales and others under China commerce retail is primarily generated from the Company’s direct sales businesses, comprising mainly Sun Art, Tmall Supermarket and Freshippo. Revenue of Sun Art included in the consolidated income statement of the Company since the date of acquisition was RMB 42.9 billion for the year ended March 31, 2021. (iii) Revenue from China commerce wholesale is primarily generated from 1688.com and includes revenue from membership fees and related value-added services and customer management services. (iv) Revenue from International commerce retail is primarily generated from Lazada and AliExpress and includes revenue from logistics services, customer management services and sales of goods. (v) Revenue from International commerce wholesale is primarily generated from Alibaba.com and includes revenue from membership fees and related value-added services and customer management services. (vi) Revenue from Local consumer services primarily represents platform commissions, logistics services revenue from the provision of on-demand delivery services and revenue from other services provided by Ele.me. (vii) Revenue from Cainiao represents logistics services revenue from the domestic and international one-stop-shop logistics services and supply chain management solutions provided by Cainiao Network. (viii) Revenue from Cloud is primarily generated from the provision of cloud services, which include public cloud services and hybrid cloud services. (ix) Revenue from Digital media and entertainment is primarily generated from Youku and other content platforms, as well as the online games business, and includes revenue from membership fees, self-developed online games and customer management services. (x) Revenue from Innovation initiatives and others primarily represented other revenue from businesses such as Tmall Genie and other innovation initiatives. Other revenue also includes the annual fee for the SME loan business received from Ant Group and its affiliates and such arrangement was terminated in December 2021 (Note 22). (xi) For the year ended March 31, 2022, as a result of the change in segment reporting (Note 2 (e)), the Company reclassified revenue from Amap, which was previously reported under the Innovation initiatives and others segment, as revenue from the Local consumer services segment. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (xii) For the year ended March 31, 2022, the Company reclassified revenue from DingTalk, which was previously reported under the Innovation initiatives and others segment, as revenue from the Cloud segment in order to conform to the way that we manage and monitor segment performance. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. 5. Revenue (Continued) Revenue by type is as follows: Year ended March 31, 2020 2021 2022 (in millions of RMB) Customer management services (i) 297,592 363,381 379,999 Membership fees 22,846 29,450 35,739 Logistics services 33,942 55,653 71,279 Cloud services 40,016 60,120 74,123 Sales of goods 95,503 180,634 255,171 Other revenue (ii) 19,812 28,051 36,751 509,711 717,289 853,062 (i) Customer management services mainly include P4P marketing, in-feed marketing, display marketing and commission. (ii) Other revenue includes revenue from self-developed online games, other value-added services provided through various platforms and businesses and the annual fee for the SME loan business received from Ant Group and its affiliates (Note 22). 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 years ended March 31, 2020, 2021 and 2022 were not material. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | 6. Leases The Company entered into operating lease agreements primarily for shops and malls, offices, warehouses and land. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years or an option to terminate a lease early. The Company considers these options in determining the classification and measurement of the leases. The leases may include variable payments based on measures such as the level of sales at a physical store, which are expensed as incurred. Components of operating lease cost are as follows: Year ended March 31, 2020 2021 2022 (in millions of RMB) Operating lease cost 5,600 6,812 10,982 Variable lease cost 79 47 837 Total operating lease cost 5,679 6,859 11,819 For the years ended March 31, 2020, 2021 and 2022, cash payments for operating leases amounted to RMB3,666 million, RMB4,408 million and RMB6,556 million, respectively. For the years ended March 31, 2021 and 2022, the operating lease assets obtained in exchange for operating lease liabilities amounted to RMB6,974 million and RMB7,375 million, respectively. As of March 31, 2021 and 2022, the Company’s operating leases had a weighted average remaining lease term of 9.9 years and 9.9 years, respectively. As of the same dates, the Company’s operating leases had a weighted average discount rate of 5.4% and 5.1%, respectively. Future lease payments under operating leases as of March 31, 2022 are as follows: Amounts (in millions of RMB) For the year ending March 31, 2023 6,717 2024 5,888 2025 4,978 2026 4,244 2027 3,614 Thereafter 20,335 45,776 Less: imputed interest (10,523) Total operating lease liabilities (Note 19) 35,253 |
Income tax expenses
Income tax expenses | 12 Months Ended |
Mar. 31, 2022 | |
Income tax expenses | |
Income tax expenses | 7. Income tax expenses Composition of income tax expenses Year ended March 31, 2020 2021 2022 (in millions of RMB) Current income tax expense 24,005 26,042 28,184 Deferred taxation (3,443) 3,236 (1,369) 20,562 29,278 26,815 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, 2020, 2021 and 2022. 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 method 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 (“KSE”) within China’s national plan can enjoy a preferential EIT rate of 10% . The KSE status is subject to review by the relevant authorities every year and the timing of the annual review and notification by the relevant authorities may vary from year to year. The related reduction in tax expense as a result of official notification confirming the KSE status is accounted for upon the receipt of such notification. The tax status of the subsidiaries of the Company with major taxable profits is described below: ● Alibaba (China) Technology Co., Ltd. (“Alibaba China”), Taobao (China) Software Co., Ltd. (“Taobao China”), Zhejiang Tmall Technology Co., Ltd. (“Tmall China”) and Alibaba (China) Co., Ltd (“China Co.”), entities primarily engaged in the operations of the Company’s wholesale marketplaces, Taobao, Tmall, and technology, software research and development and relevant services, respectively, were qualified as High and New Technology Enterprises. Alibaba China, Taobao China and Tmall China also obtained the annual review and notification relating to the renewal of the KSE status for the taxation years of 2018 and 2019 in the quarters ended September 30, 2019 and 2020, respectively. Accordingly, Alibaba China, Taobao China and Tmall China, which had applied an EIT rate of 15% for the taxation years of 2018 and 2019, reflected the reduction in tax rate to 10% for the taxation years of 2018 and 2019 in the consolidated income statements for the years ended March 31, 2020 and 2021. 7. Income tax expenses (Continued) ● Alibaba (Beijing) Software Services Co., Ltd (“Alibaba Beijing”), an entity primarily engaged in the operations of technology, software research and development and relevant services, was recognized as a High and New Technology Enterprise. Alibaba Beijing was 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 2017, and a 50% reduction for the subsequent three consecutive years starting from the taxation year of 2019. Accordingly, Alibaba Beijing was entitled to an EIT rate of 12.5% ( 50% reduction in the standard statutory rate) during the taxation years of 2019, 2020 and 2021. Alibaba Beijing also obtained notification of recognition as a KSE for the taxation year of 2019 in the quarter ended September 30, 2020. Accordingly, Alibaba Beijing, which had applied an EIT rate of 12.5% for the taxation year of 2019, reflected the reduction in tax rate to 10% for the taxation year of 2019 in the consolidated income statement for the year ended March 31, 2021. The total tax adjustments for the recognition of KSE status for Alibaba China, Taobao China, Tmall China, Alibaba Beijing and certain other PRC subsidiaries of the Company, amounting to RMB4,144 million, RMB6,085 million and nil, were recorded in the consolidated income statements for the years ended March 31, 2020, 2021 and 2022, respectively. For the taxation years of 2020 and 2021, Alibaba China, Taobao China, Tmall China, China Co. and Alibaba Beijing did not obtain the KSE status, and accordingly, Alibaba China, Taobao China, Tmall China and China Co.continued to apply an EIT rate of 15% as High and New Technology Enterprises, and Alibaba Beijing applied an EIT rate of 12.5% (50% reduction in the standard statutory rate) as a Software Enterprise. Most of the remaining PRC entities of the Company are subject to EIT at 25% for the years ended March 31, 2020, 2021 and 2022. 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 mainland China and Hong Kong S.A.R. 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 mainland China and Hong Kong S.A.R., the Company has used 5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As of March 31, 2022, the Company has accrued the withholding tax on substantially all of the distributable earnings of the PRC subsidiaries, except for those undistributed earnings that the Company intends to invest indefinitely in the PRC which amounted to RMB176.4 billion. 7. Income tax expenses (Continued) Composition of deferred tax assets and liabilities As of March 31, 2021 2022 (in millions of RMB) Deferred tax assets Licensed copyrights 3,664 3,893 Tax losses carried forward and others (i) 40,031 46,945 43,695 50,838 Valuation allowance (32,654) (36,363) Total deferred tax assets 11,041 14,475 Deferred tax liabilities Identifiable intangible assets (22,212) (20,773) Withholding tax on undistributed earnings (ii) (8,066) (8,106) Equity method investees and others (iii) (29,320) (32,827) Total deferred tax liabilities (59,598) (61,706) Net deferred tax liabilities (48,557) (47,231) (i) Others primarily represents deferred tax assets for share-based awards, investments in equity method investees, equity securities and other investments, 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, 2021 and 2022 were provided on the assumption that substantially all of the distributable earnings of 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 RMB 195.3 billion and RMB 176.4 billion, respectively. (iii) Deferred tax liabilities for investments in equity method investees mainly includes the deferred tax effect on the gain in relation to the receipt of the 33% equity interest in Ant Group of RMB 19.7 billion (Note 4(k)). Others primarily represents deferred tax liabilities for investments in equity securities and other investments. 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, 2022, the accumulated tax losses of subsidiaries incorporated in Singapore, Hong Kong S.A.R. and Indonesia. subject to the agreement of the relevant tax authorities, of RMB20,319 million, RMB7,008 million and RMB4,071 million, respectively, are allowed to be carried forward to offset against future taxable profits. The carry forward of tax losses in Singapore and Hong Kong S.A.R. generally has no time limit, while the tax losses in Indonesia will expire, if unused, in the years ending March 31, 2023 through 2027. The accumulated tax losses of subsidiaries incorporated in the PRC, subject to the agreement of the PRC tax authorities, of RMB129,793 million as of March 31, 2022 will expire, if unused, in the years ending March 31, 2023 through 2032. 7. Income tax expenses (Continued) 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, 2020 2021 2022 (in millions of RMB, except per share data) Income before income tax and share of result of equity method investees 166,645 165,578 59,550 Income tax computed at statutory EIT rate (25%) 41,661 41,395 14,888 Effect of different tax rates available to different jurisdictions (1,085) (1,982) (2,006) Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC (18,552) (20,675) (7,367) Effect of the gain in relation to the receipt of the 33% equity interest in Ant Group (Note 4(k)) (17,890) — — Non-deductible expenses and non-taxable income, net (i) 9,553 1,980 13,518 Additional deductions of certain research and development expenses incurred by subsidiaries in the PRC (ii) (7,219) (8,305) (10,052) Withholding tax on the earnings distributed and anticipated to be remitted 4,621 4,612 5,026 Change in valuation allowance and others (iii) 9,473 12,253 12,808 Income tax expenses 20,562 29,278 26,815 Effect of tax holidays inside the PRC on basic earnings per share (RMB) 0.88 0.96 0.34 Effect of tax holidays inside the PRC on basic earnings per ADS (RMB) 7.06 7.65 2.73 (i) Expenses not deductible for tax purposes and non-taxable income primarily represent impairment of goodwill, a fine imposed pursuant to the PRC Anti-monopoly Law (the “Anti-monopoly Fine”), investment income or loss and share-based compensation expense. (ii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. (iii) Change in valuation allowance primarily represents valuation allowance for temporary differences associated with tax losses and investments in certain equity securities and other investments. Besides, others primarily represents deferred tax effect for temporary differences in relation to certain investments in equity method investees, as well as other tax benefits which were not previously recognized. |
Share-based awards
Share-based awards | 12 Months Ended |
Mar. 31, 2022 | |
Share-based awards | |
Share-based awards | 8. Share-based awards (a) Share-based awards relating to ordinary shares of the Company Share-based awards such as RSUs, incentive and non-statutory stock 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 equity incentive plans adopted since the inception of the Company. Currently, the 2014 Post-IPO Equity Incentive Plan (the “2014 Plan”), which was adopted in September 2014 and has a ten-year term, is in effect and governs the terms of the awards. If an award terminates, expires or lapses, or is canceled 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) 200,000,000 ordinary shares, and (B) such lesser number of ordinary shares as determined by the board of directors becomes 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. As of March 31, 2022, the number of shares authorized but unissued was 295,352,672 ordinary shares. Following the Share Subdivision and the ADS Ratio Change as detailed in Note 2 (a), each ordinary share was subdivided into eight ordinary shares and each ADS represents eight ordinary shares. Pro-rata adjustments have been made to the number of ordinary shares underlying each share-based award granted, so as to give the participants the same proportion of the equity that they would have been entitled to prior to the Share Subdivision. Subsequent to the Share Subdivision, eight ordinary shares are issuable upon the vesting or the exercise of one share-based award. The Share Subdivision has no impact on the number of share-based awards, the weighted average grant date fair value and the weighted average exercise price per share-based award as stated below. RSUs A summary of the changes in the RSUs relating to ordinary shares granted by the Company during the year ended March 31, 2022 is as follows: Weighted- average Number grant date of RSUs fair value US$ Awarded and unvested as of April 1, 2021 63,363,237 192.19 Granted 28,230,674 200.52 Vested (23,702,603) 175.56 Canceled/forfeited (7,215,021) 203.85 Awarded and unvested as of March 31, 2022 (i) 60,676,287 201.17 Expected to vest as of March 31, 2022 (ii) 50,145,101 200.96 (i) No outstanding RSUs will be vested after the expiry of a period of up to ten years from the date of grant. (ii) RSUs expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding RSUs. As of March 31, 2022, there were RMB25,636 million of unamortized compensation costs related to all outstanding RSUs, net of expected forfeitures. These amounts are expected to be recognized over a weighted average period of 1.9 years. During the years ended March 31, 2020, 2021 and 2022, the Company recognized share-based compensation expense of RMB25,651million, RMB28,934 million and RMB30,313 million, respectively, in connection with the above RSUs. 8. Share-based awards (Continued) (a) Share-based awards relating to ordinary shares of the Company (Continued) Share options A summary of the changes in the share options relating to ordinary shares granted by the Company during the year ended March 31, 2022 is as follows: Weighted Weighted average Number average remaining of share exercise contractual options price life US$ (in years) Outstanding as of April 1, 2021 5,976,850 88.94 2.6 Granted 1,710,000 25.04 7.2 Exercised (313,516) 59.12 — Outstanding as of March 31, 2022 7,373,334 75.39 3.5 Vested and exercisable as of March 31, 2022 (i) 5,132,667 76.95 2.1 Vested and expected to vest as of March 31, 2022 (ii) 7,135,333 74.42 3.4 (i) No outstanding share options will be vested or exercisable after the expiry of a period of up to ten years from the date of grant. (ii) 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, 2022, the aggregate intrinsic value of all outstanding options was RMB2,032 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 was RMB1,194 million and RMB1,969 million, respectively. During the years ended March 31, 2020, 2021 and 2022, the weighted average grant date fair value of share options granted was US$57.33, nil and US$103.72, respectively, and the total grant date fair value of options vested during the same years was RMB295 million, RMB335 million and RMB306 million, respectively. During the same years, the aggregate intrinsic value of share options exercised was RMB1,011 million, RMB468 million and RMB137 million, respectively. Cash received from option exercises under the share option plans for the years ended March 31, 2020, 2021 and 2022 was RMB960 million, RMB205 million and RMB109 million, respectively. 8. Share-based awards (Continued) (a) Share-based awards relating to ordinary shares of the Company (Continued) Share options (Continued) No share options were granted during the year ended March 31, 2021. The fair value of each option granted during the years ended March 31, 2020 and 2022 is estimated on the measurement date using the Black-Scholes model by applying the assumptions below: Year ended March 31, 2020 2021 2022 Risk-free interest rate (i) 1.68% — 1.93% - 2.00% Expected dividend yield (ii) 0% — 0% Expected life (years) (iii) 4.50 — 3.71 - 7.14 Expected volatility (iv) 34.7% — 35.7% (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 on the measurement date. (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 management’s estimate on timing of exercise of share options. (iv) Expected volatility is assumed based on the historical volatility of the Company in the period equal to the expected life of each grant. As of March 31, 2022, there were RMB 437 million of unamortized compensation costs related to these outstanding share options, net of expected forfeitures. These amounts are expected to be recognized over a weighted average period of 3.5 years. During the years ended March 31, 2020, 2021 and 2022, the Company recognized share-based compensation expense of RMB 140 million, RMB 159 million and RMB 86 million, respectively, in connection with the above share options. 8. Share-based awards (Continued) (a) Share-based awards relating to ordinary shares of the Company (Continued) Partner Capital Investment Plan The Company adopted the Partner Capital Investment Plan in 2013 to offer selected management of the Company rights or interests to acquire restricted shares of the Company. The rights or interests offered before 2016 were subject to a non-compete provision and were accounted for as noncontrolling interests of the Company as these rights or interests were issued by the Company’s subsidiaries and classified as equity at the subsidiary level. The rights or interests offered in the subsequent periods were subject to certain service provisions that were not related to employment and were accounted for as share options issued by the Company. During the year ended March 31, 2022, all rights and interests under the Partner Capital Investment Plan have been converted, exercised or replaced with grants under the 2014 Plan. No further subscription of rights or interests under the Partner Capital Investment Plan will be made hereafter. Share-based compensation expense of RMB425 million, RMB224 million and RMB177 million was recognized in connection with these rights or interests for the years ended March 31, 2020, 2021 and 2022, respectively. (b) Share-based awards relating to Ant Group The employees of the Company hold share-based awards granted by Ant Group and Hangzhou Junhan Equity Investment Partnership (“Junhan”), a major equity holder of Ant Group. These awards tied to the valuation of Ant Group and will be settled by respective grantors upon disposal of these awards by the holders, vesting or exercise of these awards, depending on the forms of these awards. In addition, Junhan and Ant Group have the right to repurchase the vested awards (or any underlying equity for the settlement of the vested awards) granted by them, as applicable, from the holders upon an initial public offering of Ant Group 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 Group. 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 these awards are re-measured at the fair value on each reporting date until their settlement dates. The fair value of the underlying equity is primarily determined with reference to the business enterprise value, or BEV, of Ant Group which is based on the contemporaneous valuation report, external information and information obtained from Ant Group. During the years ended March 31, 2020, 2021 and 2022, the Company recognized expenses of RMB 1,261 million, RMB 17,315 million and a net reversal of RMB 11,585 million, respectively, in respect of the share-based awards relating to Ant Group. Starting from April 2020, the parties agreed to settle with each other the cost associated with certain share-based awards granted to each other’s employees upon vesting. The settlement amounts under this arrangement depend on the values of Ant Group share-based awards granted to the Company’s employees and the Company’s share-based awards granted to employees of Ant Group, in which the net settlement amount is insignificant to the Company. Share-based awards relating to ordinary shares of the Company and Ant Group 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, share-based awards generally vest 25% or 50% upon the first or second anniversary of the vesting commencement date, respectively, as provided in the award agreements, and 25% every year thereafter. Share-based awards granted to certain management members of the Company are subject to a vesting period of up to six years. 8. Share-based awards (Continued) (c) Share-based compensation expense by function Year ended March 31, 2020 2021 2022 (in millions of RMB) Cost of revenue 7,322 11,224 5,725 Product development expenses 13,654 21,474 11,035 Sales and marketing expenses 3,830 5,323 3,050 General and administrative expenses 6,936 12,099 4,161 31,742 50,120 23,971 |
Earnings per share_ADS
Earnings per share/ADS | 12 Months Ended |
Mar. 31, 2022 | |
Earnings per share/ADS | |
Earnings per share/ADS | 9. Earnings per share/ADS Following the Share Subdivision and the ADS Ratio Change as detailed in Note 2(a), each ordinary share was subdivided into eight ordinary shares and each ADS represents eight ordinary shares. 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. Basic earnings per ADS is derived from the basic earnings per share after the ADS Ratio Change. 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. Diluted earnings per ADS is derived from the diluted earnings per share after the ADS Ratio Change. The following table sets forth the computation of basic and diluted net income per share/ADS for the following periods: Year ended March 31, 2020 2021 2022 (in millions of RMB, except share data and per share data) Earnings per share Numerator: Net income attributable to ordinary shareholders for computing net income per ordinary share — basic 149,263 150,308 61,959 Dilution effect arising from share-based awards issued by subsidiaries and equity method investees (48) (55) (37) Net income attributable to ordinary shareholders for computing net income per ordinary share — diluted 149,215 150,253 61,922 Shares (denominator): Weighted average number of shares used in calculating net income per ordinary share — basic (million shares) 21,017 21,619 21,558 Adjustments for dilutive RSUs and share options (million shares) 329 363 229 Weighted average number of shares used in calculating net income per ordinary share — diluted (million shares) 21,346 21,982 21,787 Net income per ordinary share — basic (RMB) 7.10 6.95 2.87 Net income per ordinary share — diluted (RMB) 6.99 6.84 2.84 Earnings per ADS Net income per ADS — basic (RMB) 56.82 55.63 22.99 Net income per ADS — diluted (RMB) 55.93 54.70 22.74 |
Restricted cash and escrow rece
Restricted cash and escrow receivables | 12 Months Ended |
Mar. 31, 2022 | |
Restricted cash and escrow receivables | |
Restricted cash and escrow receivables | 10. Restricted cash and escrow receivables As of March 31, 2021 2022 (in millions of RMB) Consumer protection fund deposits from merchants on the marketplaces (i) 33,426 35,268 Others 1,781 2,187 35,207 37,455 (i) The amount represents consumer protection fund deposits received from merchants on the Company’s marketplaces, which are restricted for the purpose of compensating consumers for claims against merchants. A corresponding liability is recorded in other deposits and advances received under accrued expenses, accounts payable and other liabilities (Note 19) on the consolidated balance sheets. |
Equity securities and other inv
Equity securities and other investments | 12 Months Ended |
Mar. 31, 2022 | |
Equity securities and other investments | |
Equity securities and other investments | 11. Equity securities and other investments As of March 31, 2021 Cumulative Original net gains Carrying cost (losses) value (in millions of RMB) Equity securities: Listed equity securities 83,099 41,742 124,841 Investments in privately held companies 107,395 (6,708) 100,687 Debt investments 22,412 (912) 21,500 212,906 34,122 247,028 As of March 31, 2022 Cumulative Original net gains Carrying cost (losses) value (in millions of RMB) Equity securities: Listed equity securities 93,599 9,661 103,260 Investments in privately held companies 110,096 (859) 109,237 Debt investments 27,153 (7,366) 19,787 230,848 1,436 232,284 Details of the significant additions during the years ended March 31, 2020, 2021 and 2022 are set out in Note 4. 11. Equity securities and other investments (Continued) Equity securities For equity securities which were still held as of March 31, 2020, 2021 and 2022, net unrealized (losses) gains, including impairment losses, of RMB(15,264) million, RMB45,139 million and RMB(25,587) million, respectively, were recognized in interest and investment income, net, for the years ended March 31, 2020, 2021 and 2022. Investments in privately held companies include equity investments for which the Company elected to account for using the measurement alternative (Note 2(t)), for which the carrying value as of March 31, 2021 and 2022 were RMB96,946 million and RMB99,270 million, respectively. For equity investments accounted for using the measurement alternative as of March 31, 2021, the Company recorded cumulative upward adjustments of RMB16,351 million and cumulative impairments and downward adjustments of RMB24,008 million. For these investments, the Company recorded upward adjustments of RMB6,061 million and impairments and downward adjustments of RMB8,042 million during the year ended March 31, 2021. For equity investments accounted for using the measurement alternative as of March 31, 2022, the Company recorded cumulative upward adjustments of RMB26,759 million and cumulative impairments and downward adjustments of RMB27,827 million. For these investments, the Company recorded upward adjustments of RMB19,159 million and impairments and downward adjustments of RMB7,603 million during the year ended March 31, 2022. Debt investments Debt investments include convertible and exchangeable bonds accounted for under the fair value option, for which the fair value as of March 31, 2021 and 2022 were RMB11,343 million and RMB8,339 million, respectively. The aggregate fair value of these convertible and exchangeable bonds was higher (lower) than their aggregate unpaid principal balance as of March 31, 2021 and 2022 by RMB90 million and RMB(3,248) million, respectively. Unrealized (losses) gains recorded on these convertible and exchangeable bonds in the consolidated income statements were RMB(1,651) million, RMB1,573 million and RMB(3,112) million during the years ended March 31, 2020, 2021 and 2022, respectively. Debt investments also include debt investments accounted for at amortized cost, for which the allowance for credit losses as of March 31, 2021 and 2022 were RMB1,110 million and RMB4,336 million, respectively. During the years ended March 31, 2020, 2021 and 2022, impairment losses on these debt investments of RMB890 million, RMB175 million and RMB3,225 million, respectively, were recorded in interest and investment income, net in the consolidated income statements. The carrying amount of debt investments accounted for at amortized cost 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 measurement
Fair value measurement | 12 Months Ended |
Mar. 31, 2022 | |
Fair value measurement | |
Fair value measurement | 12. Fair value measurement 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 listed equity securities are based on quoted prices in active markets for identical assets or liabilities. Certain other financial instruments, such as interest rate swap contracts and certain option agreements, 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 generally 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 are re-measured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are 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. 12. Fair value measurement (Continued) 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, 2021 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Time deposits (i) — 104,896 — 104,896 Wealth management products (i) — 47,480 — 47,480 Restricted cash and escrow receivables 35,207 — — 35,207 Listed equity securities (ii) 124,841 — — 124,841 Convertible and exchangeable bonds (ii) — 1,698 9,645 11,343 Option agreements (iii) — 2,493 111 2,604 Others (v) 686 128 3,895 4,709 160,734 156,695 13,651 331,080 Liabilities Contingent consideration in relation to investments and acquisitions (iv) — — 2,232 2,232 Interest rate swap contracts and others (iv) — 47 174 221 — 47 2,406 2,453 As of March 31, 2022 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Time deposits (i) — 233,724 — 233,724 Wealth management products (i) — 21,261 — 21,261 Marketable debt securities (i) — 1,529 — 1,529 Restricted cash and escrow receivables 37,455 — — 37,455 Listed equity securities (ii) 103,260 — — 103,260 Convertible and exchangeable bonds (ii) — 1,067 7,272 8,339 Option agreements (iii) — 1 825 826 Others (v) 2,196 2,402 8,292 12,890 142,911 259,984 16,389 419,284 Liabilities Contingent consideration in relation to investments and acquisitions (iv) — — 829 829 Interest rate swap contracts and others (iv) — 354 170 524 — 354 999 1,353 (i) Included in short-term investments on the consolidated balance sheets. (ii) Included in equity securities and other investments on the consolidated balance sheets. (iii) Included in prepayments, receivables and other assets on the consolidated balance sheets. (iv) Included in accrued expenses, accounts payable and other liabilities on the consolidated balance sheets. (v) Others primarily represent other investments with underlying assets measured at fair value. 12. Fair value measurement (Continued) Convertible and exchangeable bonds categorized within Level 3 under the fair value hierarchy: Amounts (in millions of RMB) Balance as of March 31, 2020 3,995 Additions 4,477 Net increase in fair value 1,306 Foreign currency translation adjustments (133) Balance as of March 31, 2021 9,645 Additions 1,915 Net decrease in fair value (2,734) Disposal (1,225) Conversion (162) Foreign currency translation adjustments (167) Balance as of March 31, 2022 7,272 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 March 31, 2020 4,400 Net decrease in fair value (48) Payment (1,972) Foreign currency translation adjustments (148) Balance as of March 31, 2021 2,232 Additions 376 Net decrease in fair value (19) Payment (1,746) Foreign currency translation adjustments (14) Balance as of March 31, 2022 829 |
Prepayments, receivables and ot
Prepayments, receivables and other assets | 12 Months Ended |
Mar. 31, 2022 | |
Prepayments, receivables and other assets | |
Prepayments, receivables and other assets | 13. Prepayments, receivables and other assets As of March 31, 2021 2022 (in millions of RMB) Current: Accounts receivable, net of allowance 27,076 32,813 Inventories 27,858 30,087 VAT receivables, net of allowance 17,363 23,779 Prepaid cost of revenue, sales and marketing and other expenses 18,532 17,902 Amounts due from related companies (i) 10,374 12,188 Advances to/receivables from customers, merchants and others 7,163 11,205 Deferred direct selling costs and cost of revenue (ii) 3,303 3,915 Interest receivables 2,110 2,449 Others 10,929 11,657 124,708 145,995 Non-current: Operating lease right-of-use assets 72,040 78,053 Deferred tax assets (Note 7) 11,041 14,475 Film costs and prepayment for licensed copyrights and others 9,349 12,425 Prepayment for acquisition of property and equipment 2,704 3,592 Others 3,298 4,602 98,432 113,147 (i) Amounts due from related companies primarily represent balances arising from transactions with Ant Group (Note 22), including dividend receivable from Ant Group amounting to nil and RMB 3,945 million as of March 31, 2021 and 2022, respectively. The balances are unsecured, interest free and repayable within the next twelve months. (ii) 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, and certain costs associated with cloud services. The membership fees and cloud services revenue 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 and revenue are recognized. |
Investments in equity method in
Investments in equity method investees | 12 Months Ended |
Mar. 31, 2022 | |
Investments in equity method investees | |
Investments in equity method investees | 14. Investments in equity method investees Amounts (in millions of RMB) Balance as of March 31, 2020 189,632 Additions 17,731 Share of results, other comprehensive income and other reserves (i) 14,014 Disposals (1,386) Distributions (1,976) Transfers (ii) (9,122) Impairment loss (iii) (7,256) Foreign currency translation adjustments (1,448) Balance as of March 31, 2021 200,189 Additions 8,964 Share of results, other comprehensive income and other reserves (i) 18,822 Disposals (1,237) Distributions (iv) (5,329) Transfers 5,159 Impairment loss (iii) (6,201) Foreign currency translation adjustments (725) Balance as of March 31, 2022 219,642 (i) Share of results, other comprehensive income and other reserves include the share of results of the equity method investees, the gain or loss arising from the deemed disposal of the equity method 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 Group granted to employees of certain equity method investees. (ii) During the year ended March 31, 2021, transfers were primarily related to the consolidation of Sun Art (Note 4(a)) and additional investments in YTO Express (Note 4(h)) and STO Express (Note 4(e)). (iii) Impairment loss recorded represents other-than-temporary decline in fair value below the carrying value of the investments in equity method investees. The valuation inputs for the fair value measurement with respect to the impairments include the stock price for equity method investees that are listed, as well as certain unobservable inputs that are not subject to meaningful aggregation. (iv) Includes dividend declared by Ant Group amounting to RMB 3,945 million (Note 13). As of March 31, 2022, equity method investments with an aggregate carrying amount of RMB42,595 million are publicly traded and the total market value of these investments amounted to RMB38,244 million. As of March 31, 2022, the Company’s retained earnings included undistributed earnings from equity method investees of RMB46,149 million. 14. Investments in equity method investees (Continued) For the years ended March 31, 2020, 2021 and 2022, 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, 2020 2021 2022 (in millions of RMB) Operating data: Revenue 553,387 657,065 541,712 Cost of revenue (443,198) (474,123) (371,076) Income from operations 5,274 55,896 38,006 Net income 30,578 95,224 113,970 As of March 31, 2021 2022 (in millions of RMB) Balance sheet data: Current assets 668,838 624,045 Non-current assets 586,434 870,394 Current liabilities 464,257 426,170 Non-current liabilities 129,985 118,575 Noncontrolling interests and mezzanine equity 22,997 16,059 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Mar. 31, 2022 | |
Property and equipment, net | |
Property and equipment, net | 15. Property and equipment, net As of March 31, 2021 2022 (in millions of RMB) Building, property improvements and other property 99,087 106,794 Computer equipment and software 84,802 94,539 Construction in progress 19,958 43,675 Furniture, office and transportation equipment and others 17,147 20,554 220,994 265,562 Less: accumulated depreciation and impairment (73,582) (93,756) Net book value 147,412 171,806 Depreciation expenses recognized for the years ended March 31, 2020, 2021 and 2022 were RMB 20,325 million, RMB 25,550 million and RMB 25,470 million, respectively. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Mar. 31, 2022 | |
Intangible assets, net | |
Intangible assets, net | 16. Intangible assets, net As of March 31, 2021 2022 (in millions of RMB) User base and customer relationships 50,066 47,941 Trade names, trademarks and domain names 39,440 39,080 Non-compete agreements 19,445 14,436 Developed technology and patents 12,855 7,088 Licensed copyrights (Note 2(x)) and others 9,411 8,384 131,217 116,929 Less: accumulated amortization and impairment (60,384) (57,698) Net book value 70,833 59,231 During the years ended March 31, 2020, 2021 and 2022, the Company acquired intangible assets amounting to RMB5,626 million, RMB20,750 million and RMB1,000 million, respectively, in connection with business combinations, which were measured at fair value upon acquisition. Details of intangible assets acquired in connection with business combinations are included in Note 4. 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, 2023 12,660 2024 10,886 2025 7,249 2026 4,536 2027 4,629 Thereafter 19,271 59,231 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill | |
Goodwill | 17. Goodwill Changes in the carrying amount of goodwill by segment for the years ended March 31, 2021 and 2022 were as follows: Innovation Local Digital media initiatives Core China International consumer and and commerce commerce commerce services Cainiao Cloud entertainment others Total (in millions of RMB) Balance as of March 31, 2020 209,533 — — — — 2,510 58,673 6,066 276,782 Additions (i) 14,605 — — 2,974 17,579 Deconsolidation of subsidiaries — — — — — (455) — — (455) Measurement period adjustments 240 — — — — — — — 240 Foreign currency translation adjustments (1,364) — — — — (11) — — (1,375) Balance as of March 31, 2021 223,014 — — — — 2,044 58,673 9,040 292,771 Additions 2,506 523 — — — 254 — — 3,283 Impairment — — — — — — (25,141) — (25,141) Allocation of goodwill (ii) (224,407) 174,424 17,630 20,292 16,346 815 — (5,100) — Foreign currency translation adjustments (1,113) — (169) — — (50) — — (1,332) Balance as of March 31, 2022 — 174,947 17,461 20,292 16,346 3,063 33,532 3,940 269,581 (i) During the year ended March 31, 2021, additions under the Core commerce segment primarily included the acquisition of Sun Art (Note 4(a)). (ii) During the year ended March 31, 2022, the Company allocated its goodwill primarily as a result of the change in segments (Note 26). Gross goodwill balances were RMB 297,250 million and RMB 299,201 million as of March 31, 2021 and 2022, respectively. Accumulated impairment losses were RMB 4,479 million and RMB 29,620 million as of March 31, 2021 and 2022, respectively. 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 RMB 576 million, nil and RMB 25,141 million during the years ended March 31, 2020, 2021 and 2022, respectively. During the year ended March 31, 2022, considered the changes in market conditions, the Company performed quantitative impairment tests on certain reporting units under the Digital media and entertainment segment and recognized impairment charges of RMB 14,754 million relating to one listed reporting unit and RMB 10,387 million relating to one unlisted reporting unit. The fair value of the listed reporting unit is determined based on its market capitalization, adjusted for control premium. The fair value of the unlisted reporting unit is determined using the income approach, which is based on the discounted cash flow analysis derived from assumptions of future growth rates and weighted average cost of capital. The goodwill impairment is presented as an unallocated item in the segment information (Note 26) 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, 2022 | |
Deferred revenue and customer advances | |
Deferred revenue and customer advances | 18. 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, 2021 2022 (in millions of RMB) Deferred revenue 30,508 32,085 Customer advances 35,139 38,388 65,647 70,473 Less: current portion (62,489) (66,983) Non-current portion 3,158 3,490 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. |
Accrued expenses, accounts paya
Accrued expenses, accounts payable and other liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Accrued expenses, accounts payable and other liabilities | |
Accrued expenses, accounts payable and other liabilities | 19. Accrued expenses, accounts payable and other liabilities As of March 31, 2021 2022 (in millions of RMB) Current: Payables and accruals for cost of revenue and sales and marketing expenses 94,368 107,205 Other deposits and advances received (i) 53,794 55,200 Accrued bonus and staff costs, including sales commission 24,871 28,343 Payable to merchants and third party marketing affiliates 24,681 26,798 Anti-monopoly Fine (Note 25(b)) 18,228 — Payables and accruals for purchases of property and equipment 11,836 17,032 Other taxes payable (ii) 7,922 8,761 Amounts due to related companies (iii) 5,926 7,783 Contingent and deferred consideration in relation to investments and acquisitions 4,146 2,045 Operating lease liabilities (Note 6) 4,069 4,994 Escrow money payable 211 203 Others 11,088 13,096 261,140 271,460 Non-current: Operating lease liabilities (Note 6) 28,217 30,259 Contingent and deferred consideration in relation to investments and acquisitions 1,049 990 Others 1,488 628 30,754 31,877 (i) Other deposits and advances received as of March 31, 2021 and 2022 include consumer protection fund deposits received from merchants on the Company’s marketplaces (Note 10). (ii) Other taxes payable primarily represent VAT and PRC individual income tax of employees withheld by the Company. (iii) Amounts due to related companies primarily represent balances arising from the transactions with Ant Group (Note 22). The balances are unsecured, interest free and repayable within the next twelve months. |
Bank borrowings
Bank borrowings | 12 Months Ended |
Mar. 31, 2022 | |
Bank borrowings | |
Bank borrowings | |
Bank borrowings | 20. Bank borrowings Bank borrowings are analyzed as follows: As of March 31 2021 2022 (in millions of RMB) Current portion: Short-term other borrowings (i) 3,606 8,841 Non-current portion: US$4.0 billion syndicated loan denominated in US$ (ii) 26,153 25,331 Long-term other borrowings (iii) 12,182 12,913 38,335 38,244 (i) As of March 31, 2021 and 2022, the Company had short-term borrowings from banks which were repayable within one year or on demand and charged interest rates ranging from 0.6% to 12.5% and 0.6 % to 12.5 % per annum, respectively. As of March 31, 2021 and 2022, the weighted average interest rate of these borrowings was 2.9% and 2.8 % per annum, respectively. The borrowings are primarily denominated in RMB or HK$. (ii) As of March 31, 2021 and 2022, the Company had a US$ 4.0 billion syndicated loan, which was entered into with a group of eight lead arrangers. The loan was priced at 85 basis points over LIBOR and will mature in May 2024. Certain 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). (iii) As of March 31, 2021 and 2022, the Company had long-term borrowings from banks with weighted average interest rates of 4.3% and 4.1 % per annum, respectively. The borrowings are primarily denominated in RMB. Certain other bank borrowings are collateralized by a pledge of certain buildings and property improvements, construction in progress and land use rights in the PRC with carrying values of RMB 18,365 million and RMB 19,617 million, as of March 31, 2021 and 2022, respectively. As of March 31, 2022, the Company is in compliance with all covenants in relation to bank borrowings. 20. Bank borrowings (Continued) In April 2017, the Company obtained a revolving credit facility provided by certain financial institutions for an amount of US $5.15 billion, which has not yet been drawn down. The interest rate on any outstanding utilized amount under this credit facility was calculated based on LIBOR plus 95 basis points. This facility is reserved for general corporate and working capital purposes (including acquisitions). In June 2021, the terms of this credit facility were amended and the amount of the credit facility was increased to US$ 6.5 billion. The expiration date of the credit facility was extended to June 2026. Under the amended terms of the credit facility, the interest rate on any outstanding utilized amount will be calculated based on LIBOR plus 80 basis points. As of March 31, 2022, the borrowings will be due according to the following schedule: Principal amounts (in millions of RMB) Within 1 year 8,841 Between 1 to 2 years 732 Between 2 to 3 years 27,960 Between 3 to 4 years 2,791 Between 4 to 5 years 1,907 Beyond 5 years 4,921 47,152 |
Unsecured senior notes
Unsecured senior notes | 12 Months Ended |
Mar. 31, 2022 | |
Unsecured senior notes | |
Unsecured senior notes | |
Unsecured senior notes | 21. Unsecured senior notes 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 . In December 2017, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$7.0 billion (the “2017 Senior Notes”). The 2017 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually. In February 2021, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$ 5.0 billion (the “2021 Senior Notes”). The 2021 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually. 21. Unsecured senior notes (Continued) The following table provides a summary of the Company’s unsecured senior notes as of March 31, 2021 and 2022: As of March 31, Effective 2021 2022 interest rate (in millions of RMB) US$1,500 million 3.125% notes due 2021 9,831 — 3.26% US$700 million 2.800% notes due 2023 4,584 4,439 2.90% US$2,250 million 3.600% notes due 2024 14,724 14,256 3.68% US$2,550 million 3.400% notes due 2027 16,616 16,091 3.52% US$1,500 million 2.125% notes due 2031 9,782 9,469 2.20% US$700 million 4.500% notes due 2034 4,545 4,400 4.60% US$1,000 million 4.000% notes due 2037 6,510 6,300 4.06% US$1,000 million 2.700% notes due 2041 6,463 6,256 2.80% US$1,750 million 4.200% notes due 2047 11,382 11,014 4.25% US$1,500 million 3.150% notes due 2051 9,764 9,448 3.19% US$1,000 million 4.400% notes due 2057 6,501 6,290 4.44% US$1,000 million 3.250% notes due 2061 6,510 6,296 3.28% Carrying value 107,212 94,259 Unamortized discount and debt issuance costs 756 668 Total principal amounts of unsecured senior notes 107,968 94,927 Less: current portion of principal amounts of unsecured senior notes (9,845) — Non-current portion of principal amounts of unsecured senior notes 98,123 94,927 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 unsecured senior notes contain covenants including, among others, limitation on liens, consolidation, merger and sale of the Company’s assets. As of March 31, 2022, the Company is in compliance with all these covenants. In addition, the unsecured 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). As of March 31, 2022, 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 — Between 1 to 2 years 4,445 Between 2 to 3 years 14,287 Between 3 to 4 years — Between 4 to 5 years — Thereafter 76,195 94,927 As of March 31, 2021 and 2022, the fair values of the Company’s unsecured senior notes, based on Level 2 inputs, were US $16,976 million (RMB 111,419 million) and US$ 14,067 million (RMB 89,319 million), respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2022 | |
Related party transactions | |
Related party transactions | 22. Related party transactions During the years ended March 31, 2020, 2021 and 2022, other than disclosed elsewhere, the Company had the following material related party transactions: Transactions with Ant Group and its affiliates Year ended March 31, 2020 2021 2022 (in millions of RMB) Amounts earned by the Company Cloud services revenue (i) 1,872 3,916 5,536 Administrative and support services (i) 1,224 1,208 1,165 Annual fee for SME loan business (ii) 954 954 708 Profit Share Payments (iii) 3,835 — — Marketplace software technology services fee and other amounts earned (i) 2,075 2,427 2,358 9,960 8,505 9,767 Amounts incurred by the Company Payment processing and escrow services fee (iv) 8,723 10,598 11,824 Other amounts incurred (i) 2,743 4,509 3,542 11,466 15,107 15,366 (i) The Company has other commercial arrangements and cost sharing arrangements with Ant Group and its affiliates on various sales and marketing, cloud, and other administrative and support services. (ii) Pursuant to the SAPA, the Company entered into software system use and service agreements with Ant Group in 2014, under which the Company would receive annual fees for SME loan business for a term of seven years . In calendar years 2018 to 2021, the Company received or will receive annual fees equal to the amount received in calendar year 2017, which was equal to 2.5 % of the average daily balance of the SME loans made by Ant Group and its affiliates during that year. The annual fee payment by Ant Group in relation to SME loan business was terminated in December 2021. (iii) In 2014, the Company entered into the 2014 IPLA with Ant Group. Under the 2014 IPLA, the Company received the Profit Share Payments amounting to the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Group, subject to certain adjustments. Upon the receipt of 33% equity interest in Ant Group in September 2019, the Company entered into the Amended IPLA and terminated the 2014 IPLA, and the Profit Share Payments arrangement was terminated (Note 4(k)). Profit Share Payments were recorded in other income, net in the consolidated income statements, net of the costs incurred for the provision of the software technology services reimbursed by Ant Group. (iv) The Company has a commercial agreement with Alipay whereby the Company receives payment processing and escrow services in exchange for a payment for the services fee, which was recognized in cost of revenue. As of March 31, 2021 and 2022, 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 RMB6,831 million and RMB8,987 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. 22. Related party transactions (Continued) Transactions with other investees The Company has commercial arrangements with certain investees of the Company related to cloud services. In connection with these services provided by the Company, RMB 1,548 million, RMB 2,411 million and RMB 1,826 million were recorded in revenue in the consolidated income statements for the years ended March 31, 2020, 2021 and 2022, respectively. The Company has commercial arrangements with certain investees of the Company related to marketing services. In connection with these services provided to the Company, RMB 1,146 million, RMB 1,394 million and RMB 976 million were recorded in cost of revenue and sales and marketing expenses in the consolidated income statements for the years ended March 31, 2020, 2021 and 2022, respectively. The Company has commercial arrangements with certain investees of the Company related to logistics services. In connection with these services provided by the Company, RMB 1,400 million, RMB 1,732 million and RMB 1,728 million were recorded in revenue in the consolidated income statements for the years ended March 31, 2020, 2021 and 2022, respectively. Costs and expenses incurred in connection with these services provided to the Company of RMB 8,265 million, RMB 11,068 million and RMB 13,120 million were recorded in the consolidated income statements for the same periods, respectively. The Company has extended loans to certain investees for working capital and other uses in conjunction with the Company’s investments. As of March 31, 2021 and 2022, the aggregate outstanding balance of these loans was RMB 2,824 million and RMB 3,000 million, respectively, with remaining terms of up to five years and interest rates of up to 10 % per annum as of March 31, 2021, and remaining terms of up to four years and interest rates of up to 10% per annum as of March 31, 2022. The Company provided a guarantee for a term loan facility of HK$ 7.7 billion in favor of partially owned by Cainiao Network, in connection with a logistics center development project at the Hong Kong International Airport. As of March 31, 2022, HK$ 3,413 million was drawn down by Cingleot under this facility. Other transactions The Company’s ecosystem 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 arm’s 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, other investees and other related parties to provide and receive certain marketing, cloud 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, 2020, 2021 and 2022. 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, 2020, 2021 and 2022. 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, 2022 | |
Restricted net assets | |
Restricted net assets | 23. 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 RMB165,590 million as of March 31, 2022. 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, 2022 | |
Commitments | |
Commitments | 24. Commitments (a) Capital commitments The Company’s capital commitments primarily relate to capital expenditures contracted for purchase of property and equipment, including the construction of corporate campuses. Total capital commitments contracted but not provided for amounted to RMB 37,595 million and RMB 39,272 million as of March 31, 2021 and 2022, respectively. The capital expenditures contracted for are analyzed as follows: As of March 31, 2021 2022 (in millions of RMB) No later than 1 year 23,424 25,438 Later than 1 year and no later than 5 years 13,768 13,781 More than 5 years 403 53 37,595 39,272 (b) Investment commitments The Company was obligated to pay up to RMB 19,466 million and RMB 12,456 million for business combinations and equity investments under various arrangements as of March 31, 2021 and 2022, respectively. The commitment balance as of March 31, 2021 primarily includes the consideration for the investment in Focus Media Information Technology Co.Ltd., of which the arrangement was terminated in November 2021, and the remaining committed capital of certain investment funds. The commitment balance as of March 31,2022 primarily includes the remaining committed capital of certain investment funds. (c) Other commitments The Company also has other commitments including commitments for co-location and bandwidth fees, licensed copyrights and marketing expenses. These commitments are analyzed as follows: As of March 31, 2021 2022 (in millions of RMB) No later than 1 year 35,109 37,229 Later than 1 year and no later than 5 years 17,266 17,347 More than 5 years 2,849 2,446 55,224 57,022 24. Commitments (Continued) (c) Other commitments (Continued) As a marketing initiative, the Company entered into a framework agreement with the International Olympic Committee (the “IOC”) and the United States Olympic Committee in January 2017 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 committed to 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. |
Risks and contingencies
Risks and contingencies | 12 Months Ended |
Mar. 31, 2022 | |
Risks and contingencies | |
Risks and contingencies | 25. Risks and contingencies (a) The Company is incorporated in the Cayman Islands and considered as a foreign entity under PRC laws. 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 businesses and other businesses through various contractual arrangements with VIEs that are incorporated and owned by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. The VIEs hold the licenses and approvals that are essential for their business operations in the PRC and the Company has entered into various agreements with the VIEs and their equity holders such that the Company has the right to benefit from their licenses and approvals and generally has control of the VIEs. In the Company’s opinion, the current ownership structure and the contractual arrangements with the VIEs and their equity holders as well as the operations of the VIEs are in substantial compliance with all existing PRC laws, rules and regulations. However, there may be changes and other developments in PRC laws, rules and regulations. Accordingly, the Company gives no assurance that PRC government authorities will not take a view in the future that is contrary to the opinion of the Company. If the current ownership structure of the Company and its contractual arrangements with the VIEs and their equity holders were found to be in violation of any existing or future PRC laws or regulations, the Company’s ability to conduct its business could be impacted and the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changes in the PRC laws which may result in deconsolidation of the VIEs. (b) The PRC market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Company to operate or invest in online and mobile commerce or other Internet related businesses, representing the principal services provided by the Company, in the PRC. The information and technology industries are highly regulated. Restrictions are currently in place or are unclear regarding what specific segments of these industries foreign owned enterprises, like the Company, may operate. If new or more extensive restrictions were imposed on the segments in which the Company is permitted to operate, the Company could be required to sell or cease to operate or invest in some or all of its current businesses in the PRC. These uncertainties also extend to the PRC’s regulations relating to anti-monopoly and anti-unfair competition. In December 2020, the State Administration for Market Regulation of the PRC (the “SAMR”) commenced an investigation on the Company pursuant to the PRC Anti-monopoly Law. Following the investigation, in April 2021, the SAMR issued an administrative penalty decision of the anti-monopoly investigation into the Company and imposed a fine of RMB18.2 billion (Note 19), which was accrued for as of March 31, 2021. The amount has been paid as of March 31, 2022. The SAMR also issued an administrative guidance, instructing the Company to implement a comprehensive rectification program, and to file a self-assessment and compliance report to the SAMR for three 25. Risks and contingencies (Continued) (c) PRC regulators have enhanced their scrutiny over financial technology, or fintech, businesses, and have proposed or promulgated several new measures and rules to strengthen regulations over certain financial industries in which Ant Group operates, such as digital payment, wealth management, micro financing and insurance. Ant Group has also been in discussions with PRC regulators about its business. In December 2020, Ant Group announced that it would establish a rectification working group and bring the operation and development of its finance-related businesses in line with regulatory requirements. In April 2021, Ant Group announced that under the regulators’ guidance, and in accordance with regulatory requirements, Ant Group had completed the formulation of its rectification plan, according to which Ant Group would apply to set up a financial holding company to ensure its financial-related businesses are fully regulated. To implement the rectification plan and comply with applicable new measures and rules, Ant Group may be required to spend significant time and resources and make changes to its businesses. As a result of regulatory developments, Ant Group’s business operations and growth prospects could be materially and adversely affected. Given that Ant Group offers a variety of services and products that have become essential parts of the services and experience the Company offers to consumers and merchants on the Company’s platforms, rectification and other regulatory requirements placed on Ant Group could in turn have a material adverse effect on the Company. (d) The Company is exposed to interest rate risk related to its indebtedness. The Company also has interest bearing assets, including cash and cash equivalents, short-term investments and restricted cash. Certain of the Company’s indebtedness carries floating interest rates based on a spread over LIBOR. As a result, the interest expenses associated with these indebtedness will be subject to the potential impact of any fluctuation in LIBOR. The Company uses derivatives, such as interest rate swaps, to manage its interest rate exposure, and has entered into various agreements with various financial institutions as counterparties to swap a certain portion of its floating interest rate debt to effectively become fixed interest rate debt. Uncertainties surrounding the phase-out of LIBOR may cause a sudden and prolonged increase or decrease in LIBOR, could adversely affect the Company’s operating results and financial condition, as well as the Company’s cash flows. In addition, since LIBOR will not be available, the Company may need to further negotiate with its lenders to agree on an alternative basis of interest, which may result in an interest rate differing from the Company’s expectations and could materially affect the cost of these facilities to the Company. (e) The Company’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of the Company’s assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies and require certain supporting documentation in order to effect the remittance. If the foreign exchange control system prevents the Company from obtaining sufficient foreign currencies to satisfy its currency demands, the Company may not be able to pay dividends in foreign currencies and the Company’s ability to fund its business activities that are conducted in foreign currencies could be adversely affected. (f) In the ordinary course of business, the Company makes strategic investments to increase the service offerings and expand capabilities. The Company continually reviews its investments to determine whether there is a decline in fair value below the carrying value. Fair value of the listed securities is subject to volatility and may be materially affected by market fluctuations. (g) Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, short-term investments, restricted cash and equity securities and other investments. As of March 31, 2021 and 2022, substantially all of the Company’s cash and cash equivalents, short-term investments and restricted cash were held by major financial institutions located worldwide, including mainland China and Hong Kong S.A.R. If the financial institutions and other issuers of financial instruments held by the Company could become insolvent or if the markets for these instruments could become illiquid as a result of a severe economic downturn, the Company could lose some or all of the value of its investments. 25. Risks and contingencies (Continued) (h) During the years ended March 31, 2020, 2021 and 2022, the Company offered a trade assurance program on the international wholesale marketplaces at no charge to the wholesale buyers and sellers. If the wholesale sellers who participate in this program do not deliver the products in their stated specifications to the wholesale buyers on schedule, the Company may compensate the wholesale buyers for their losses on behalf of the wholesale sellers up to a pre-determined amount following a review of each particular case. In turn, the Company will seek a full reimbursement from the wholesale sellers for the prepaid reimbursement amount, yet the Company is exposed to a risk over the collectibility of the reimbursement from the wholesale sellers. During the years ended March 31, 2020, 2021 and 2022, the Company did not incur any material losses with respect to the compensation provided under this program. Given that the maximum compensation for each wholesale seller is pre-determined based on their individual risk assessments by the Company considering their credit profile or other relevant information, the Company determined that the likelihood of material default on the payments are not probable and therefore no provisions have been made in relation to this program. (i) In the ordinary course of business, the Company is from time to time involved in legal proceedings and litigations in relation to disputes relating to trademarks and other intellectual property, among others. In 2017, Beijing Jingdong Shiji Trading Co., Ltd. and Beijing Jingdong 360 E-commerce Co., Ltd. sued Tmall China, Zhejiang Tmall Network Co., Ltd. and Alibaba Group Holding Limited for abuse of dominant market position. The plaintiffs requested the three defendants to cease relevant acts and claimed a substantial amount of damages in the original complaint. In March 2021, the plaintiffs amended their claim to seek higher damages. The case is pending in Beijing High People’s Court and the potential damages are not reasonably estimable at the current stage. There are no legal proceedings and litigations that have in the recent past had, or to the Company’s knowledge, are probable to have, a material impact on the Company’s financial positions, results of operations or cash flows. The Company did not accrue any material loss contingencies in this respect as of March 31, 2021 and 2022. (j) The global outbreak of the COVID-19 pandemic is having a significant negative impact on the global economy, which has adversely affected the Company’s business and financial results. Starting in late January 2020, the COVID-19 pandemic triggered a series of lock-downs, social distancing requirements and travel restrictions that have significantly and negatively affected, and may continue to negatively affect, our various businesses in China, particularly the Company’s China commerce and local consumer services businesses. The Company’s key international commerce businesses also experienced a negative impact. The COVID-19 pandemic also presented and may continue to present challenges to the Company’s business operations as well as the business operations of the Company’s merchants, business partners and other participants in the Company’s ecosystem, such as closure of offices and facilities, disruptions to or even suspensions of normal business and logistics operations, as well as restrictions on travel. It is not possible to determine the ultimate impact of the COVID-19 pandemic on the Company’s business operations and financial results, which is highly dependent on numerous factors, including the duration and spread of the pandemic and any resurgence of the COVID-19 pandemic in China or elsewhere, actions taken by governments, the response of businesses and individuals to the pandemic, the impact of the pandemic on business and economic conditions in China and globally, consumer demand, the Company’s ability and the ability of merchants, retailers, logistics service providers and other participants in the Company’s ecosystem to continue operations in areas affected by the pandemic and the Company’s efforts and expenditures to support merchants and partners and ensure the safety of the Company’s employees. The COVID-19 pandemic may continue to adversely affect the Company’s business and results of operations. (k) The Russia-Ukraine conflict has resulted in significant disruptions to supply chains, logistics and business activities in the region that has negatively affected our international commerce business and Cainiao’s international logistics business. The conflict has also caused, and continues to intensify, significant geopolitical tensions in Europe and across the globe. The resulting sanctions imposed are expected to have significant impacts on the economic conditions of the countries and markets targeted by such sanctions, and may have unforeseen, unpredictable secondary effects on global energy prices, supply chains and other aspects of the global economy. The conflict may adversely affect our business, financial condition and results of operations. |
Segment information
Segment information | 12 Months Ended |
Mar. 31, 2022 | |
Segment information | |
Segment information | 26. Segment information 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. Starting from the quarter ended December 31, 2021, the CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change, which also provides greater transparency in the Company’s business progress and financial performance (Note 2(e)). 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, 2020, 2021 and 2022. Comparative figures for the years ended March 31, 2020 and 2021 were recast to conform to the segment presentation for the year ended March 31, 2022. a Year ended March 31, 2020 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 351,977 33,917 29,660 22,233 40,301 29,094 2,529 509,711 — 509,711 Income (Loss) from operations 174,561 (7,615) (26,289) (5,218) (9,662) (15,389) (6,661) 103,727 (12,297) 91,430 Add: share-based compensation expense 9,409 2,996 3,027 961 6,231 2,566 2,308 27,498 4,244 31,742 Add: amortization and impairment of intangible assets 845 279 8,245 2,373 25 1,377 86 13,230 158 13,388 Add: impairment of goodwill — — — — — — — — 576 576 Adjusted EBITA (iv) 184,815 (4,340) (15,017) (1,884) (3,406) (11,446) (4,267) 144,455 (7,319) Adjusted EBITA margin (v) 53% (13)% (51)% (8)% (8)% (39)% (169)% Year ended March 31, 2021 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 501,683 48,851 35,442 37,258 60,558 31,186 2,311 717,289 — 717,289 Income (Loss) from operations 197,135 (9,361) (29,100) (3,964) (12,479) (10,321) (7,802) 124,108 (34,430) 89,678 Add: share-based compensation expense 14,505 4,223 4,972 1,956 10,205 3,281 2,518 41,660 8,460 50,120 Add: amortization of intangible assets 1,922 206 7,852 1,195 23 922 83 12,203 224 12,427 Add: Anti-monopoly Fine — — — — — — — — 18,228 18,228 Adjusted EBITA (iv) 213,562 (4,932) (16,276) (813) (2,251) (6,118) (5,201) 177,971 (7,518) Adjusted EBITA margin (v) 43% (10)% (46)% (2)% (4)% (20)% (225)% 26. Segment information (Continued) Year ended March 31, 2022 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 592,705 61,078 43,491 46,107 74,568 32,272 2,841 853,062 — 853,062 Income (Loss) from operations 172,219 (10,655) (30,485) (3,920) (5,167) (7,019) (9,424) 105,549 (35,911) 69,638 Add: share-based compensation expense 7,078 1,569 2,556 1,396 6,297 1,520 1,839 22,255 1,716 23,971 Add: amortization of intangible assets 2,817 95 6,154 1,059 16 809 456 11,406 241 11,647 Add: impairment of goodwill — — — — — — — — 25,141 25,141 Adjusted EBITA (iv) 182,114 (8,991) (21,775) (1,465) 1,146 (4,690) (7,129) 139,210 (8,813) Adjusted EBITA margin (v) 31% (15)% (50)% (3)% 2% (15)% (251)% The following table presents the reconciliation from the Adjusted EBITA to the consolidated net income for the years ended March 31, 2020, 2021 and 2022: Year ended March 31, 2020 2021 2022 (in millions of RMB) Total Segments Adjusted EBITA 144,455 177,971 139,210 Unallocated (iii) (7,319) (7,518) (8,813) Share-based compensation expense (31,742) (50,120) (23,971) Amortization and impairment of intangible assets (13,388) (12,427) (11,647) Impairment of goodwill (576) — (25,141) Anti-monopoly Fine — (18,228) — Consolidated income from operations 91,430 89,678 69,638 Interest and investment income, net 72,956 72,794 (15,702) Interest expense (5,180) (4,476) (4,909) Other income, net 7,439 7,582 10,523 Income tax expenses (20,562) (29,278) (26,815) Share of results of equity method investees (5,733) 6,984 14,344 Consolidated net income 140,350 143,284 47,079 26. Segment information (Continued) The following table presents the consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights by segment for the years ended March 31, 2020, 2021 and 2022: Year ended March 31, 2020 2021 2022 (in millions of RMB) China commerce 6,605 9,790 13,043 International commerce 725 1,180 1,473 Local consumer services (i) 766 1,161 1,237 Cainiao 694 872 992 Cloud (ii) 9,257 11,161 7,613 Digital media and entertainment 1,359 1,109 956 Innovation initiatives and others and unallocated (i)(ii)(iii) 1,117 1,116 2,494 Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 20,523 26,389 27,808 (i) For the year ended March 31, 2022, as a result of the change in segment reporting (Note 2 (e)), the Company reclassified results of Amap, which was previously reported under the Innovation initiatives and others segment, to the Local consumer services segment. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (ii) For the year ended March 31, 2022, the Company reclassified results of DingTalk, which was previously reported under the Innovation initiatives and others segment, to the Cloud segment in order to conform to the way that we manage and monitor segment performance. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (iii) Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. (iv) Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets and impairment of goodwill, and (iii) Anti-monopoly Fine, which the Company does not believe are reflective of the Company’s core operating performance during the periods presented. (v) 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, 2022 | |
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”). Effective on July 30, 2019, the Company subdivided each of its issued and unissued ordinary shares into eight ordinary shares (the “Share Subdivision”). Following the Share Subdivision, the Company’s authorized share capital became United States Dollar (“US$”) 100,000 divided into 32,000,000,000 ordinary shares of par value US$ 0.000003125 per share. The number of issued and unissued ordinary shares as disclosed elsewhere in these consolidated financial statements are presented on a basis after taking into account the effects of the Share Subdivision and have been retrospectively adjusted, where applicable. Simultaneously with the Share Subdivision, the change in ratio of the Company’s ADS to ordinary share (the “ADS Ratio Change”) also became effective. Following the ADS Ratio Change, each ADS now represents eight ordinary shares. Previously, each ADS represented one ordinary share. Given that the ADS Ratio Change was exactly proportionate to the Share Subdivision, no new ADSs were issued to any ADS holder and the total number of the Company’s outstanding ADSs remains unchanged immediately after the Share Subdivision and the ADS Ratio Change became effective. Translations of balances in the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows from RMB into the US$ as of and for the year ended March 31, 2022 are solely for the convenience of the readers and are calculated at the rate of US$1.00=RMB 6.3393 , representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ 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. 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. As of March 31, 2022, the Company considered the economic implications of the COVID-19 pandemic on its significant judgments and estimates. Given the impact and other unforeseen effects on the global economy from the COVID-19 pandemic, these estimates required increased judgment, and actual results could differ from these estimates. |
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 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. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 meetings 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 businesses and other businesses in which foreign investment is restricted or prohibited in the PRC through various contractual arrangements with VIEs that are incorporated and owned by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, these representative PRC domestic companies are Zhejiang Taobao Network Co., Ltd., Zhejiang Tmall Network Co., Ltd., Hangzhou Alibaba Advertising Co., Ltd., Hangzhou Ali Venture Capital Co., Ltd., Shanghai Rajax Information Technology Co., Ltd., Alibaba Cloud Computing Ltd. and Alibaba Culture Entertainment 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 representative VIEs are set forth below: (i) Contracts that give the Company effective control of VIEs 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 or the acquisition of the VIEs. 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 or equity interests in the VIEs to any third party. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 Capital Decrease Price, or 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 decrease 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 of 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) Contracts that enable the Company to receive substantially all of the economic benefits from the VIEs 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. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 equity holder of 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 decrease 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 consolidated VIEs and their subsidiaries was recorded in the accompanying consolidated financial statements: As of March 31, 2021 2022 (in millions of RMB) Cash and cash equivalents and short-term investments 17,295 15,943 Investments in equity method investees and equity securities and other investments 44,125 37,647 Accounts receivable, net of allowance 18,259 22,003 Amounts due from non-VIE subsidiaries of the Company 19,838 28,377 Property and equipment, net and intangible assets, net 7,354 8,608 Others 18,726 25,927 Total assets 125,597 138,505 Amounts due to non-VIE subsidiaries of the Company 94,779 89,271 Accrued expenses, accounts payable and other liabilities 30,684 38,826 Deferred revenue and customer advances 13,103 13,570 Total liabilities 138,566 141,667 Year ended March 31, 2020 2021 2022 (in millions of RMB) Revenue (i) 81,742 93,029 111,498 Net (loss) income (1,757) 2,557 5,944 Net cash (used in) provided by operating activities (253) 329 19,932 Net cash used in investing activities (7,289) (18,445) (16,710) Net cash provided by (used in) financing activities 9,887 14,463 (9,904) (i) Revenue generated by the VIEs are primarily from cloud services, digital media and entertainment services and others. The VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 22 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation. 2. Summary of significant accounting policies (Continued) (c) Consolidation (Continued) 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 corresponding jurisdictions, 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 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 acquisition date amounts of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the acquisition date amounts 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 or loss attributable to noncontrolling interests and mezzanine equity holders when applicable. 2. Summary of significant accounting policies (Continued) (d) Business combinations and noncontrolling interests (Continued) Net (loss) income 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, 2020, 2021 and 2022, net (loss) income attributable to mezzanine equity holders amounted to RMB(124) million, RMB140 million and RMB188 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. Prior to the quarter ended December 31, 2021, the Company had four operating and reportable segments reportable segments |
Foreign currency translation | (f) Foreign currency translation The functional currency of the Company is US$. The Company’s subsidiaries with operations in mainland China, the Hong Kong Special Administrative Region of the PRC (“Hong Kong” or “Hong Kong S.A.R.”), the United States and other jurisdictions generally use their respective local currencies as their functional currencies. When the Company determines that a subsidiary is operating in a highly inflationary economy, the financial statements of this subsidiary shall be remeasured prospectively as if the functional currency were the functional currency of its immediate parent company. 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 Revenue is principally comprised of customer management services revenue, membership fees, logistics services revenue, cloud 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. 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. Generally, when the Company is primarily obligated in a transaction, is 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. Generally, when the Company is not primarily obligated in a transaction, does not 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 applies the practical expedient to not adjust any of the transaction price for the time value of money for contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer is within one year. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition (Continued) Revenue recognition policies by type are as follows: (i) Customer management services revenue Within the Company’s China commerce and International commerce segments, 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 results on the Company’s marketplaces. Merchants bid for keywords through an online auction 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. In-feed marketing services In-feed marketing services allow merchants to bid to market to groups of consumers with similar profiles that match product or service listings appearing in browser results on the Company’s marketplaces. Merchants bid for groups of consumers with similar profiles through an online auction 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 in-feed 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 market-based 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 services content through the third-party marketing affiliate program. A substantial portion of customer management services 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. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition (Continued) P4P marketing services revenue, in-feed marketing services revenue, as well as display marketing services 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. Commissions on transactions 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(ac)), which 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. Adjustments to the estimated variable consideration related to prior reporting periods were not material for each of the periods presented. 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 commission revenue is recognized at the time when the underlying transaction is completed. The Company evaluates if it is a principal or an agent in a transaction to determine whether the commission revenue is recognized on a gross or net basis. When the Company is the agent of the arrangement (such as arrangements where the Company does not have latitude in establishing prices or does not have inventory risk), the commission revenue is recorded on a net basis. When 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. (ii) Membership fees 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. (iii) Logistics services revenue 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 and Lazada as well as on-demand delivery services provided by Ele.me. Revenue is recognized at the time when the logistics services are provided. 2. Summary of significant accounting policies (Continued) (g) Revenue recognition (Continued) (iv) Cloud services revenue The Company earns cloud services revenue from the provision of cloud services such as proprietary servers, elastic computing, storage, network, security, database and big data, and IoT services. Certain cloud services allow customers to use hosted software over the contract period without taking possession of the software. These cloud 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. For the provision of hybrid cloud services, which include hardware, software licenses, software installation services, application development and maintenance services, each distinct performance obligation identified is separately accounted for and the total consideration is allocated to each performance obligation based on the relative standalone selling prices at contract inception. Revenue for each performance obligation is recognized when the control of the promised goods or services is transferred to the customer. (v) Sales of goods Revenue from the sales of goods is mainly generated from Sun Art, Tmall Supermarket and Freshippo. 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 cost of inventories, logistics costs, expenses associated with the operation of the Company’s mobile platforms and websites (such as depreciation and maintenance expenses for servers and computers, call centers and other equipment, and bandwidth and co-location fees), staff costs and share-based compensation expense, traffic acquisition costs, content 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, as the amount of costs qualified for capitalization has been insignificant, 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. 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 RMB30,949 million, RMB57,073 million and RMB91,103 million during the years ended March 31, 2020, 2021 and 2022, 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. 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, 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. 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. During the years ended March 31, 2020, 2021 and 2022, contributions to the plans amounting to RMB6,705 million, RMB8,223 million and RMB13,086 million, respectively, were charged to the consolidated income statements. Amounts contributed to defined benefit plans during the years ended March 31, 2020, 2021 and 2022 were insignificant. |
Income taxes | (m) Income taxes The Company accounts for income taxes using the liability method, under which deferred income tax is 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 tax 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. 2. Summary of significant accounting policies (Continued) (m) Income taxes (Continued) Deferred tax is recognized on the undistributed earnings of subsidiaries, which are presumed to be distributed to parent companies, unless there is sufficient evidence that the subsidiaries have invested or will invest the undistributed earnings permanently in the domestic jurisdictions or the earnings will not be subject to tax upon the subsidiaries’ liquidation. Deferred tax is recognized for temporary differences in relation to certain investments in equity method investees, equity securities and other investments. 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, 2020, 2021 and 2022. In April 2021, the Company adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. ASU 2019-12 simplifies various aspects related to accounting for income taxes, removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not have a material impact on the Company’s financial position, results of operations and cash flows. |
Government grants | (n) Government grants Government grants, which 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, 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 The Company determines if an arrangement is a lease at inception. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance 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. The Company has no significant finance leases. The Company recognizes lease liabilities and corresponding right-of-use assets on the balance sheet for leases. Operating lease right-of-use assets are included in non-current prepayments, receivables and other assets (Note 13), and operating lease liabilities are included in current accrued expenses, accounts payable and other liabilities and other non-current liabilities (Note 19) on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are initially recognized based on the present value of future lease payments at lease commencement. The operating lease right-of-use asset also includes any lease payments made prior to lease commencement and the initial direct costs incurred by the lessee and is recorded net of any lease incentives received. As the interest rates implicit in most of the leases are not readily determinable, the Company uses the incremental borrowing rates based on the information available at lease commencement to determine the present value of the future lease payments. Operating lease expenses are recognized on a straight-line basis over the term of the lease. The Company elected to combine the lease and non-lease components for leases of certain asset classes such as shops and malls and equipment leases. Lease and non-lease components for leases of other asset classes are accounted for separately. The Company also elected not to recognize short-term leases with an initial lease term of twelve months or less. |
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 and fixed deposits with original maturities of less than three months. |
Short-term investments | (q) Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products, marketable debt securities and other investments that the Company has the intention to redeem within one year. |
Accounts receivable | (r) Accounts receivable Accounts receivable represent 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 were RMB3,977 million and RMB4,912 million as of March 31, 2021 and 2022, respectively. In April 2020, the Company adopted ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement on Credit Losses on Financial Instruments”, including certain subsequent amendments, transitional guidance and other interpretive guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including ASU 2016-13, “ASC 326”). ASC 326 introduces an approach based on expected losses to estimate the allowance for doubtful accounts, which replaces the previous incurred loss impairment model. The Company’s estimation of allowance for doubtful accounts considers factors such as historical credit loss experience, age of receivable balances, current market conditions, reasonable and supportable forecasts of future economic conditions, as well as an assessment of receivables due from specific identifiable counterparties to determine whether these receivables are considered at risk or uncollectible. The Company assesses collectibility by pooling receivables that have similar risk characteristics and evaluates receivables individually when specific receivables no longer share those risk characteristics. For receivables evaluated individually, when it is determined that foreclosure is probable or when the debtor is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The adoption of ASC 326 did not have a material impact on the Company’s financial position, results of operations and cash flows. The consolidated financial statements for the year ended March 31, 2020 were not retrospectively adjusted. |
Inventories | (s) Inventories Inventories mainly consist of merchandise available for sale. They are accounted for using the weighted average cost method 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. |
Equity securities and other investments | (t) Equity securities and other investments Equity securities and other investments represent the Company’s investments in equity securities that are not accounted for under the equity method, as well as other investments which primarily consist of debt investments. (i) Equity securities Equity securities not accounted for using the equity method are carried at fair value with unrealized gains and losses recorded in the consolidated income statements, according to ASC 321 “Investments — Equity Securities”. 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. 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, including consideration of the impact of the COVID-19 pandemic and Russia-Ukraine conflict. 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 Debt investments are accounted for at amortized cost or under the fair value option, which the Company has elected for certain investments including convertible and exchangeable bonds subscribed. The fair value option permits the irrevocable election on an instrument-by-instrument basis at initial recognition 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 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 method investees | (u) Investments in equity method 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 controlling financial interest, unless the fair value option is elected for an investment. 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 method 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 method 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 method investee generally represents goodwill and intangible assets acquired. When the Company’s share of losses of the equity method investee equals or exceeds its interest in the equity method investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity method investee. The Company continually reviews its investments in equity method 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 severity and the length of time that the fair value of the investment is below its carrying value; the financial condition, the operating performance and the prospects of the equity method investee; the geographic region, market and industry in which the equity method investee operates, including consideration of the impact of the COVID-19 pandemic and Russia-Ukraine conflict; and other company specific information such as recent financing rounds completed by the equity method investee. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the investment in the equity method investee is written down to its fair value. |
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 and others 3 – 10 years Buildings and other property 10 – 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. |
Intangible assets other than licensed copyrights | (w) 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 measured at fair value upon acquisition using valuation techniques such as discounted cash flow analysis and ratio analysis with reference to comparable companies in similar industries under the income approach, market approach and cost approach. Major assumptions used in determining the fair value of these intangible assets include future growth rates and weighted average cost of capital. 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 3 – 16 years Trade names, trademarks and domain names 5 – 20 years Developed technology and patents 2 – 7 years Non-compete agreements over the contracted term of up to 10 years |
Licensed copyrights | (x) 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 fair 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, 2020, 2021 and 2022, amortization expenses in connection with the licensed copyrights of RMB 9,390 million, RMB 9,093 million and RMB 8,610 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 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 fair value. When there is a change in the expected usage of licensed copyrights, the Company estimates the fair value of licensed copyrights to determine if any impairment exists. The fair value of licensed copyrights is determined by estimating the expected cash flows from advertising and membership fees, less any costs and expenses, over the remaining useful lives of the licensed copyrights at the film-group level. Estimates that impact these cash flows include anticipated levels of demand for the Company’s advertising services and the expected selling prices of advertisements. For the years ended March 31, 2020, 2021 and 2022, impairment charges in connection with the licensed copyrights of RMB 2,654 million, RMB 1,688 million and RMB 745 million were recorded in cost of revenue within the Company’s Digital media and entertainment segment. In April 2020, the Company adopted ASU 2019-02, “Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment — Broadcasters — Intangibles — Goodwill and Other (Subtopic 920-350)”. As a result of the adoption of this new accounting update, cash outflows for the acquisition of licensed copyrights amounting to RMB 11,811 million and RMB 10,096 million are classified as operating activities in the consolidated statements of cash flows for the years ended March 31, 2021 and 2022, respectively. Comparative figure was not retrospectively adjusted and were classified as investing activities in the consolidated statements of cash flows for the year ended March 31, 2020. The adoption of this guidance did not have a material impact on the Company’s financial position and results of operations. |
Goodwill | (y) Goodwill Goodwill represents the excess of the purchase consideration over the acquisition date amounts 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. In accordance with ASC 350, the Company may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In the qualitative assessment, the Company considers factors such as macroeconomic conditions, industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations, business plans and strategies of the reporting unit, including consideration of the impact of the COVID-19 pandemic. 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. The Company may also bypass the qualitative assessment and proceed directly to perform the quantitative impairment test. In April 2020, the Company adopted ASU 2017-04, “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. After adopting this guidance, the Company performs the quantitative impairment test by comparing 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. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment. 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 | (z) 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. Impairment of long-lived assets other than goodwill and licensed copyrights recognized for the years ended March 31, 2020, 2021 and 2022 was RMB874 million, nil and RMB973 million, respectively. |
Derivatives and hedging | (aa) 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 initially 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. All changes in the fair value of interest rate swaps that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income. Amounts in accumulated other comprehensive income are reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings. The Company has elected the optional expedients under ASC 848 “Reference Rate Reform” for certain existing interest rate swaps that are designated as cash flow hedges in the hedging relationship designation and the assessment of probability of forecasted transaction and hedge effectiveness. |
Bank borrowing and unsecured senior notes | (ab) 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 | (ac) 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 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 | (ad) 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 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 | (ae) 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 | (af) 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 and retained earnings. The treasury shares account includes 143,363,408 ordinary shares and nil 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, 2021 and 2022, respectively. |
Statutory reserves | (ag) 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, 2020, 2021 and 2022, appropriations to the general reserve amounted to RMB 1,032 million, RMB 1,247 million and RMB 2,492 million, respectively. No appropriations to the enterprise expansion fund and staff welfare and bonus fund have been made by the Company. |
Newly adopted accounting standard updates | (ah) Newly adopted accounting standard updates In April 2021, the Company adopted ASU 2020-01, “Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) — Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force)”, which clarifies the interactions of the accounting for certain equity securities under ASC 321, investments accounted for under the equity method of accounting in ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. The Company adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the financial position, results of operations and cash flows. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Summary of significant accounting policies | |
Schedule of financial information of the Consolidated VIEs and their subsidiaries | As of March 31, 2021 2022 (in millions of RMB) Cash and cash equivalents and short-term investments 17,295 15,943 Investments in equity method investees and equity securities and other investments 44,125 37,647 Accounts receivable, net of allowance 18,259 22,003 Amounts due from non-VIE subsidiaries of the Company 19,838 28,377 Property and equipment, net and intangible assets, net 7,354 8,608 Others 18,726 25,927 Total assets 125,597 138,505 Amounts due to non-VIE subsidiaries of the Company 94,779 89,271 Accrued expenses, accounts payable and other liabilities 30,684 38,826 Deferred revenue and customer advances 13,103 13,570 Total liabilities 138,566 141,667 Year ended March 31, 2020 2021 2022 (in millions of RMB) Revenue (i) 81,742 93,029 111,498 Net (loss) income (1,757) 2,557 5,944 Net cash (used in) provided by operating activities (253) 329 19,932 Net cash used in investing activities (7,289) (18,445) (16,710) Net cash provided by (used in) financing activities 9,887 14,463 (9,904) (i) Revenue generated by the VIEs are primarily from cloud services, digital media and entertainment services and others. |
Schedule of estimated useful lives of property and equipment | Computer equipment and software 3 – 5 years Furniture, office and transportation equipment and others 3 – 10 years Buildings and other property 10 – 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 3 – 16 years Trade names, trademarks and domain names 5 – 20 years Developed technology and patents 2 – 7 years Non-compete agreements over the contracted term of up to 10 years |
Significant mergers and acqui_2
Significant mergers and acquisitions and investments (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Sun Art Retail Group Limited | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 49,672 Amortizable intangible assets (ii) Trade names, trademarks and domain names 11,500 Non-compete agreements 4,700 Developed technology and patents 615 User base and customer relationships 47 Goodwill (Note 17) 13,474 Deferred tax liabilities (9,629) Noncontrolling interests (iii) (23,684) 46,695 Amounts (in millions of RMB) Total purchase price is comprised of: ‑ cash consideration 24,136 ‑ fair value of previously held equity interests 22,559 46,695 (i) Net assets acquired primarily included property and equipment of RMB 27,333 million, operating lease right-of-use assets relating to land use rights of RMB 22,997 million, payables and accruals for cost of revenue of RMB 14,681 million, short-term investments of RMB 14,387 million, customer advances of RMB 11,082 million and inventories of RMB 9,341 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 11.8 years. (iii) Fair value of the noncontrolling interests was estimated with reference to the market price per share as of the acquisition date. |
Koala | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Amounts (in millions of RMB) Net assets acquired (i) 1,621 Amortizable intangible assets (ii) Trade names, trademarks and domain names 2,531 User base and customer relationships 1,297 Non-compete agreements 1,040 Developed technology and patents 394 Goodwill 6,781 Deferred tax liabilities (338) 13,326 Amounts (in millions of RMB) Total purchase price is comprised of: - cash consideration 10,025 - share consideration 2,252 - contingent consideration (iii) 1,049 13,326 (i) Net assets acquired primarily included inventories of RMB 1,943 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 8.5 years. (iii) Contingent consideration primarily includes cash consideration that is contingently payable upon the satisfaction of certain non-compete provisions by the selling equity holders, and will not exceed RMB 846 million. |
Other acquisitions, summarized | |
Acquisition | |
Schedule of the allocation of the purchase price as of the date of acquisition | Year ended March 31, 2020 2021 2022 (in millions of RMB) Net assets (liabilities) 846 (106) 852 Identifiable intangible assets 364 3,888 1,000 Deferred tax liabilities (53) (195) (170) 1,157 3,587 1,682 Noncontrolling interests and mezzanine equity (998) (3,310) (1,884) Net identifiable assets (liabilities) 159 277 (202) Goodwill 7,840 4,105 3,283 Total purchase consideration 7,999 4,382 3,081 Fair value of previously held equity interests (2,215) (2,434) (31) Purchase consideration settled (5,146) (1,794) (2,671) Deferred consideration as of year end 638 154 379 Total purchase consideration is comprised of: - cash consideration 5,784 875 3,050 - non-cash consideration — 1,073 — - fair value of previously held equity interests 2,215 2,434 31 7,999 4,382 3,081 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Schedule of revenue by segment | Year ended March 31, 2020 2021 2022 (in millions of RMB) China commerce: China commerce retail (i) - Customer management 244,479 304,543 315,038 - Direct sales and others (ii) 95,071 182,818 260,955 339,550 487,361 575,993 China commerce wholesale (iii) 12,427 14,322 16,712 Total China commerce 351,977 501,683 592,705 International commerce: International commerce retail (iv) 24,323 34,455 42,668 International commerce wholesale (v) 9,594 14,396 18,410 Total International commerce 33,917 48,851 61,078 Local consumer services (vi)(xi) 29,660 35,442 43,491 Cainiao (vii) 22,233 37,258 46,107 Cloud (viii)(xii) 40,301 60,558 74,568 Digital media and entertainment (ix) 29,094 31,186 32,272 Innovation initiatives and others (x)(xi)(xii) 2,529 2,311 2,841 509,711 717,289 853,062 5. Revenue (Continued) (i) Revenue from China commerce retail is primarily generated from the Company’s China commerce retail businesses and includes revenue from customer management services and sales of goods. (ii) Revenue from direct sales and others under China commerce retail is primarily generated from the Company’s direct sales businesses, comprising mainly Sun Art, Tmall Supermarket and Freshippo. Revenue of Sun Art included in the consolidated income statement of the Company since the date of acquisition was RMB 42.9 billion for the year ended March 31, 2021. (iii) Revenue from China commerce wholesale is primarily generated from 1688.com and includes revenue from membership fees and related value-added services and customer management services. (iv) Revenue from International commerce retail is primarily generated from Lazada and AliExpress and includes revenue from logistics services, customer management services and sales of goods. (v) Revenue from International commerce wholesale is primarily generated from Alibaba.com and includes revenue from membership fees and related value-added services and customer management services. (vi) Revenue from Local consumer services primarily represents platform commissions, logistics services revenue from the provision of on-demand delivery services and revenue from other services provided by Ele.me. (vii) Revenue from Cainiao represents logistics services revenue from the domestic and international one-stop-shop logistics services and supply chain management solutions provided by Cainiao Network. (viii) Revenue from Cloud is primarily generated from the provision of cloud services, which include public cloud services and hybrid cloud services. (ix) Revenue from Digital media and entertainment is primarily generated from Youku and other content platforms, as well as the online games business, and includes revenue from membership fees, self-developed online games and customer management services. (x) Revenue from Innovation initiatives and others primarily represented other revenue from businesses such as Tmall Genie and other innovation initiatives. Other revenue also includes the annual fee for the SME loan business received from Ant Group and its affiliates and such arrangement was terminated in December 2021 (Note 22). (xi) For the year ended March 31, 2022, as a result of the change in segment reporting (Note 2 (e)), the Company reclassified revenue from Amap, which was previously reported under the Innovation initiatives and others segment, as revenue from the Local consumer services segment. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (xii) For the year ended March 31, 2022, the Company reclassified revenue from DingTalk, which was previously reported under the Innovation initiatives and others segment, as revenue from the Cloud segment in order to conform to the way that we manage and monitor segment performance. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. |
Schedule of revenue by type | Year ended March 31, 2020 2021 2022 (in millions of RMB) Customer management services (i) 297,592 363,381 379,999 Membership fees 22,846 29,450 35,739 Logistics services 33,942 55,653 71,279 Cloud services 40,016 60,120 74,123 Sales of goods 95,503 180,634 255,171 Other revenue (ii) 19,812 28,051 36,751 509,711 717,289 853,062 (i) Customer management services mainly include P4P marketing, in-feed marketing, display marketing and commission. (ii) Other revenue includes revenue from self-developed online games, other value-added services provided through various platforms and businesses and the annual fee for the SME loan business received from Ant Group and its affiliates (Note 22). |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases | |
Summary of components of operating lease cost | Year ended March 31, 2020 2021 2022 (in millions of RMB) Operating lease cost 5,600 6,812 10,982 Variable lease cost 79 47 837 Total operating lease cost 5,679 6,859 11,819 |
Summary of future lease payments under operating leases | Amounts (in millions of RMB) For the year ending March 31, 2023 6,717 2024 5,888 2025 4,978 2026 4,244 2027 3,614 Thereafter 20,335 45,776 Less: imputed interest (10,523) Total operating lease liabilities (Note 19) 35,253 |
Income tax expenses (Tables)
Income tax expenses (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income tax expenses | |
Schedule of composition of income tax expenses | Year ended March 31, 2020 2021 2022 (in millions of RMB) Current income tax expense 24,005 26,042 28,184 Deferred taxation (3,443) 3,236 (1,369) 20,562 29,278 26,815 |
Schedule of composition of deferred tax assets and liabilities | As of March 31, 2021 2022 (in millions of RMB) Deferred tax assets Licensed copyrights 3,664 3,893 Tax losses carried forward and others (i) 40,031 46,945 43,695 50,838 Valuation allowance (32,654) (36,363) Total deferred tax assets 11,041 14,475 Deferred tax liabilities Identifiable intangible assets (22,212) (20,773) Withholding tax on undistributed earnings (ii) (8,066) (8,106) Equity method investees and others (iii) (29,320) (32,827) Total deferred tax liabilities (59,598) (61,706) Net deferred tax liabilities (48,557) (47,231) (i) Others primarily represents deferred tax assets for share-based awards, investments in equity method investees, equity securities and other investments, 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, 2021 and 2022 were provided on the assumption that substantially all of the distributable earnings of 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 RMB 195.3 billion and RMB 176.4 billion, respectively. (iii) Deferred tax liabilities for investments in equity method investees mainly includes the deferred tax effect on the gain in relation to the receipt of the 33% equity interest in Ant Group of RMB 19.7 billion (Note 4(k)). Others primarily represents deferred tax liabilities for investments in equity securities and other investments. |
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, 2020 2021 2022 (in millions of RMB, except per share data) Income before income tax and share of result of equity method investees 166,645 165,578 59,550 Income tax computed at statutory EIT rate (25%) 41,661 41,395 14,888 Effect of different tax rates available to different jurisdictions (1,085) (1,982) (2,006) Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC (18,552) (20,675) (7,367) Effect of the gain in relation to the receipt of the 33% equity interest in Ant Group (Note 4(k)) (17,890) — — Non-deductible expenses and non-taxable income, net (i) 9,553 1,980 13,518 Additional deductions of certain research and development expenses incurred by subsidiaries in the PRC (ii) (7,219) (8,305) (10,052) Withholding tax on the earnings distributed and anticipated to be remitted 4,621 4,612 5,026 Change in valuation allowance and others (iii) 9,473 12,253 12,808 Income tax expenses 20,562 29,278 26,815 Effect of tax holidays inside the PRC on basic earnings per share (RMB) 0.88 0.96 0.34 Effect of tax holidays inside the PRC on basic earnings per ADS (RMB) 7.06 7.65 2.73 (i) Expenses not deductible for tax purposes and non-taxable income primarily represent impairment of goodwill, a fine imposed pursuant to the PRC Anti-monopoly Law (the “Anti-monopoly Fine”), investment income or loss and share-based compensation expense. (ii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. (iii) Change in valuation allowance primarily represents valuation allowance for temporary differences associated with tax losses and investments in certain equity securities and other investments. Besides, others primarily represents deferred tax effect for temporary differences in relation to certain investments in equity method investees, as well as other tax benefits which were not previously recognized. |
Share-based awards (Tables)
Share-based awards (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based awards | |
Schedule of share-based compensation expense by function | Year ended March 31, 2020 2021 2022 (in millions of RMB) Cost of revenue 7,322 11,224 5,725 Product development expenses 13,654 21,474 11,035 Sales and marketing expenses 3,830 5,323 3,050 General and administrative expenses 6,936 12,099 4,161 31,742 50,120 23,971 |
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, 2021 63,363,237 192.19 Granted 28,230,674 200.52 Vested (23,702,603) 175.56 Canceled/forfeited (7,215,021) 203.85 Awarded and unvested as of March 31, 2022 (i) 60,676,287 201.17 Expected to vest as of March 31, 2022 (ii) 50,145,101 200.96 (i) No outstanding RSUs will be vested after the expiry of a period of up to ten years from the date of grant. (ii) RSUs expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding RSUs. |
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, 2021 5,976,850 88.94 2.6 Granted 1,710,000 25.04 7.2 Exercised (313,516) 59.12 — Outstanding as of March 31, 2022 7,373,334 75.39 3.5 Vested and exercisable as of March 31, 2022 (i) 5,132,667 76.95 2.1 Vested and expected to vest as of March 31, 2022 (ii) 7,135,333 74.42 3.4 (i) No outstanding share options will be vested or exercisable after the expiry of a period of up to ten years from the date of grant. (ii) 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, 2020 2021 2022 Risk-free interest rate (i) 1.68% — 1.93% - 2.00% Expected dividend yield (ii) 0% — 0% Expected life (years) (iii) 4.50 — 3.71 - 7.14 Expected volatility (iv) 34.7% — 35.7% (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 on the measurement date. (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 management’s estimate on timing of exercise of share options. (iv) Expected volatility is assumed based on the historical volatility of the Company in the period equal to the expected life of each grant. |
Earnings per share_ADS (Tables)
Earnings per share/ADS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Earnings per share/ADS | |
Schedule of computation of basic and diluted net income per share/ADS | Year ended March 31, 2020 2021 2022 (in millions of RMB, except share data and per share data) Earnings per share Numerator: Net income attributable to ordinary shareholders for computing net income per ordinary share — basic 149,263 150,308 61,959 Dilution effect arising from share-based awards issued by subsidiaries and equity method investees (48) (55) (37) Net income attributable to ordinary shareholders for computing net income per ordinary share — diluted 149,215 150,253 61,922 Shares (denominator): Weighted average number of shares used in calculating net income per ordinary share — basic (million shares) 21,017 21,619 21,558 Adjustments for dilutive RSUs and share options (million shares) 329 363 229 Weighted average number of shares used in calculating net income per ordinary share — diluted (million shares) 21,346 21,982 21,787 Net income per ordinary share — basic (RMB) 7.10 6.95 2.87 Net income per ordinary share — diluted (RMB) 6.99 6.84 2.84 Earnings per ADS Net income per ADS — basic (RMB) 56.82 55.63 22.99 Net income per ADS — diluted (RMB) 55.93 54.70 22.74 |
Restricted cash and escrow re_2
Restricted cash and escrow receivables (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Restricted cash and escrow receivables | |
Schedule of restricted cash and escrow receivables | As of March 31, 2021 2022 (in millions of RMB) Consumer protection fund deposits from merchants on the marketplaces (i) 33,426 35,268 Others 1,781 2,187 35,207 37,455 (i) The amount represents consumer protection fund deposits received from merchants on the Company’s marketplaces, which are restricted for the purpose of compensating consumers for claims against merchants. A corresponding liability is recorded in other deposits and advances received under accrued expenses, accounts payable and other liabilities (Note 19) on the consolidated balance sheets. |
Equity securities and other i_2
Equity securities and other investments (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Equity securities and other investments | |
Schedule of equity securities and other investments at cost and at fair value | As of March 31, 2021 Cumulative Original net gains Carrying cost (losses) value (in millions of RMB) Equity securities: Listed equity securities 83,099 41,742 124,841 Investments in privately held companies 107,395 (6,708) 100,687 Debt investments 22,412 (912) 21,500 212,906 34,122 247,028 As of March 31, 2022 Cumulative Original net gains Carrying cost (losses) value (in millions of RMB) Equity securities: Listed equity securities 93,599 9,661 103,260 Investments in privately held companies 110,096 (859) 109,237 Debt investments 27,153 (7,366) 19,787 230,848 1,436 232,284 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair value measurement | |
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, 2021 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Time deposits (i) — 104,896 — 104,896 Wealth management products (i) — 47,480 — 47,480 Restricted cash and escrow receivables 35,207 — — 35,207 Listed equity securities (ii) 124,841 — — 124,841 Convertible and exchangeable bonds (ii) — 1,698 9,645 11,343 Option agreements (iii) — 2,493 111 2,604 Others (v) 686 128 3,895 4,709 160,734 156,695 13,651 331,080 Liabilities Contingent consideration in relation to investments and acquisitions (iv) — — 2,232 2,232 Interest rate swap contracts and others (iv) — 47 174 221 — 47 2,406 2,453 As of March 31, 2022 Level 1 Level 2 Level 3 Total (in millions of RMB) Assets Time deposits (i) — 233,724 — 233,724 Wealth management products (i) — 21,261 — 21,261 Marketable debt securities (i) — 1,529 — 1,529 Restricted cash and escrow receivables 37,455 — — 37,455 Listed equity securities (ii) 103,260 — — 103,260 Convertible and exchangeable bonds (ii) — 1,067 7,272 8,339 Option agreements (iii) — 1 825 826 Others (v) 2,196 2,402 8,292 12,890 142,911 259,984 16,389 419,284 Liabilities Contingent consideration in relation to investments and acquisitions (iv) — — 829 829 Interest rate swap contracts and others (iv) — 354 170 524 — 354 999 1,353 (i) Included in short-term investments on the consolidated balance sheets. (ii) Included in equity securities and other investments on the consolidated balance sheets. (iii) Included in prepayments, receivables and other assets on the consolidated balance sheets. (iv) Included in accrued expenses, accounts payable and other liabilities on the consolidated balance sheets. (v) Others primarily represent other investments with underlying assets measured at fair value. |
Schedule of rolling forward of convertible bonds categorized within Level 3 under the fair value hierarchy | Amounts (in millions of RMB) Balance as of March 31, 2020 3,995 Additions 4,477 Net increase in fair value 1,306 Foreign currency translation adjustments (133) Balance as of March 31, 2021 9,645 Additions 1,915 Net decrease in fair value (2,734) Disposal (1,225) Conversion (162) Foreign currency translation adjustments (167) Balance as of March 31, 2022 7,272 |
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 March 31, 2020 4,400 Net decrease in fair value (48) Payment (1,972) Foreign currency translation adjustments (148) Balance as of March 31, 2021 2,232 Additions 376 Net decrease in fair value (19) Payment (1,746) Foreign currency translation adjustments (14) Balance as of March 31, 2022 829 |
Prepayments, receivables and _2
Prepayments, receivables and other assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Prepayments, receivables and other assets | |
Schedule of components of prepayments, receivables and other assets | As of March 31, 2021 2022 (in millions of RMB) Current: Accounts receivable, net of allowance 27,076 32,813 Inventories 27,858 30,087 VAT receivables, net of allowance 17,363 23,779 Prepaid cost of revenue, sales and marketing and other expenses 18,532 17,902 Amounts due from related companies (i) 10,374 12,188 Advances to/receivables from customers, merchants and others 7,163 11,205 Deferred direct selling costs and cost of revenue (ii) 3,303 3,915 Interest receivables 2,110 2,449 Others 10,929 11,657 124,708 145,995 Non-current: Operating lease right-of-use assets 72,040 78,053 Deferred tax assets (Note 7) 11,041 14,475 Film costs and prepayment for licensed copyrights and others 9,349 12,425 Prepayment for acquisition of property and equipment 2,704 3,592 Others 3,298 4,602 98,432 113,147 (i) Amounts due from related companies primarily represent balances arising from transactions with Ant Group (Note 22), including dividend receivable from Ant Group amounting to nil and RMB 3,945 million as of March 31, 2021 and 2022, respectively. The balances are unsecured, interest free and repayable within the next twelve months. (ii) 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, and certain costs associated with cloud services. The membership fees and cloud services revenue 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 and revenue are recognized. |
Investments in equity method _2
Investments in equity method investees (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Investments in equity method investees | |
Schedule of investments in equity method investees | Amounts (in millions of RMB) Balance as of March 31, 2020 189,632 Additions 17,731 Share of results, other comprehensive income and other reserves (i) 14,014 Disposals (1,386) Distributions (1,976) Transfers (ii) (9,122) Impairment loss (iii) (7,256) Foreign currency translation adjustments (1,448) Balance as of March 31, 2021 200,189 Additions 8,964 Share of results, other comprehensive income and other reserves (i) 18,822 Disposals (1,237) Distributions (iv) (5,329) Transfers 5,159 Impairment loss (iii) (6,201) Foreign currency translation adjustments (725) Balance as of March 31, 2022 219,642 (i) Share of results, other comprehensive income and other reserves include the share of results of the equity method investees, the gain or loss arising from the deemed disposal of the equity method 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 Group granted to employees of certain equity method investees. (ii) During the year ended March 31, 2021, transfers were primarily related to the consolidation of Sun Art (Note 4(a)) and additional investments in YTO Express (Note 4(h)) and STO Express (Note 4(e)). (iii) Impairment loss recorded represents other-than-temporary decline in fair value below the carrying value of the investments in equity method investees. The valuation inputs for the fair value measurement with respect to the impairments include the stock price for equity method investees that are listed, as well as certain unobservable inputs that are not subject to meaningful aggregation. (iv) Includes dividend declared by Ant Group amounting to RMB 3,945 million (Note 13). |
Schedule of summarized financial information for all of the Company's equity method investments | Year ended March 31, 2020 2021 2022 (in millions of RMB) Operating data: Revenue 553,387 657,065 541,712 Cost of revenue (443,198) (474,123) (371,076) Income from operations 5,274 55,896 38,006 Net income 30,578 95,224 113,970 As of March 31, 2021 2022 (in millions of RMB) Balance sheet data: Current assets 668,838 624,045 Non-current assets 586,434 870,394 Current liabilities 464,257 426,170 Non-current liabilities 129,985 118,575 Noncontrolling interests and mezzanine equity 22,997 16,059 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property and equipment, net | |
Schedule of property and equipment, net | As of March 31, 2021 2022 (in millions of RMB) Building, property improvements and other property 99,087 106,794 Computer equipment and software 84,802 94,539 Construction in progress 19,958 43,675 Furniture, office and transportation equipment and others 17,147 20,554 220,994 265,562 Less: accumulated depreciation and impairment (73,582) (93,756) Net book value 147,412 171,806 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Intangible assets, net | |
Schedule of intangible assets, net | As of March 31, 2021 2022 (in millions of RMB) User base and customer relationships 50,066 47,941 Trade names, trademarks and domain names 39,440 39,080 Non-compete agreements 19,445 14,436 Developed technology and patents 12,855 7,088 Licensed copyrights (Note 2(x)) and others 9,411 8,384 131,217 116,929 Less: accumulated amortization and impairment (60,384) (57,698) Net book value 70,833 59,231 |
Schedule of estimated future aggregate amortization expenses | Amounts (in millions of RMB) For the year ending March 31, 2023 12,660 2024 10,886 2025 7,249 2026 4,536 2027 4,629 Thereafter 19,271 59,231 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill | |
Schedule of changes in the carrying amount of goodwill | Innovation Local Digital media initiatives Core China International consumer and and commerce commerce commerce services Cainiao Cloud entertainment others Total (in millions of RMB) Balance as of March 31, 2020 209,533 — — — — 2,510 58,673 6,066 276,782 Additions (i) 14,605 — — 2,974 17,579 Deconsolidation of subsidiaries — — — — — (455) — — (455) Measurement period adjustments 240 — — — — — — — 240 Foreign currency translation adjustments (1,364) — — — — (11) — — (1,375) Balance as of March 31, 2021 223,014 — — — — 2,044 58,673 9,040 292,771 Additions 2,506 523 — — — 254 — — 3,283 Impairment — — — — — — (25,141) — (25,141) Allocation of goodwill (ii) (224,407) 174,424 17,630 20,292 16,346 815 — (5,100) — Foreign currency translation adjustments (1,113) — (169) — — (50) — — (1,332) Balance as of March 31, 2022 — 174,947 17,461 20,292 16,346 3,063 33,532 3,940 269,581 (i) During the year ended March 31, 2021, additions under the Core commerce segment primarily included the acquisition of Sun Art (Note 4(a)). (ii) During the year ended March 31, 2022, the Company allocated its goodwill primarily as a result of the change in segments (Note 26). |
Deferred revenue and customer_2
Deferred revenue and customer advances (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Deferred revenue and customer advances | |
Schedule of deferred revenue and customer advances | As of March 31, 2021 2022 (in millions of RMB) Deferred revenue 30,508 32,085 Customer advances 35,139 38,388 65,647 70,473 Less: current portion (62,489) (66,983) Non-current portion 3,158 3,490 |
Accrued expenses, accounts pa_2
Accrued expenses, accounts payable and other liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accrued expenses, accounts payable and other liabilities | |
Schedule of accrued expenses, accounts payable and other liabilities | As of March 31, 2021 2022 (in millions of RMB) Current: Payables and accruals for cost of revenue and sales and marketing expenses 94,368 107,205 Other deposits and advances received (i) 53,794 55,200 Accrued bonus and staff costs, including sales commission 24,871 28,343 Payable to merchants and third party marketing affiliates 24,681 26,798 Anti-monopoly Fine (Note 25(b)) 18,228 — Payables and accruals for purchases of property and equipment 11,836 17,032 Other taxes payable (ii) 7,922 8,761 Amounts due to related companies (iii) 5,926 7,783 Contingent and deferred consideration in relation to investments and acquisitions 4,146 2,045 Operating lease liabilities (Note 6) 4,069 4,994 Escrow money payable 211 203 Others 11,088 13,096 261,140 271,460 Non-current: Operating lease liabilities (Note 6) 28,217 30,259 Contingent and deferred consideration in relation to investments and acquisitions 1,049 990 Others 1,488 628 30,754 31,877 (i) Other deposits and advances received as of March 31, 2021 and 2022 include consumer protection fund deposits received from merchants on the Company’s marketplaces (Note 10). (ii) Other taxes payable primarily represent VAT and PRC individual income tax of employees withheld by the Company. (iii) Amounts due to related companies primarily represent balances arising from the transactions with Ant Group (Note 22). The balances are unsecured, interest free and repayable within the next twelve months. |
Bank borrowings (Tables)
Bank borrowings (Tables) - Bank borrowings | 12 Months Ended |
Mar. 31, 2022 | |
Bank borrowings | |
Schedule of analysis of bank borrowings | As of March 31 2021 2022 (in millions of RMB) Current portion: Short-term other borrowings (i) 3,606 8,841 Non-current portion: US$4.0 billion syndicated loan denominated in US$ (ii) 26,153 25,331 Long-term other borrowings (iii) 12,182 12,913 38,335 38,244 (i) As of March 31, 2021 and 2022, the Company had short-term borrowings from banks which were repayable within one year or on demand and charged interest rates ranging from 0.6% to 12.5% and 0.6 % to 12.5 % per annum, respectively. As of March 31, 2021 and 2022, the weighted average interest rate of these borrowings was 2.9% and 2.8 % per annum, respectively. The borrowings are primarily denominated in RMB or HK$. (ii) As of March 31, 2021 and 2022, the Company had a US$ 4.0 billion syndicated loan, which was entered into with a group of eight lead arrangers. The loan was priced at 85 basis points over LIBOR and will mature in May 2024. Certain 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). (iii) As of March 31, 2021 and 2022, the Company had long-term borrowings from banks with weighted average interest rates of 4.3% and 4.1 % per annum, respectively. The borrowings are primarily denominated in RMB. |
Schedule of borrowings under the credit facilities are due | Principal amounts (in millions of RMB) Within 1 year 8,841 Between 1 to 2 years 732 Between 2 to 3 years 27,960 Between 3 to 4 years 2,791 Between 4 to 5 years 1,907 Beyond 5 years 4,921 47,152 |
Unsecured senior notes (Tables)
Unsecured senior notes (Tables) - Unsecured senior notes | 12 Months Ended |
Mar. 31, 2022 | |
Unsecured senior notes | |
Summary of the unsecured senior notes | As of March 31, Effective 2021 2022 interest rate (in millions of RMB) US$1,500 million 3.125% notes due 2021 9,831 — 3.26% US$700 million 2.800% notes due 2023 4,584 4,439 2.90% US$2,250 million 3.600% notes due 2024 14,724 14,256 3.68% US$2,550 million 3.400% notes due 2027 16,616 16,091 3.52% US$1,500 million 2.125% notes due 2031 9,782 9,469 2.20% US$700 million 4.500% notes due 2034 4,545 4,400 4.60% US$1,000 million 4.000% notes due 2037 6,510 6,300 4.06% US$1,000 million 2.700% notes due 2041 6,463 6,256 2.80% US$1,750 million 4.200% notes due 2047 11,382 11,014 4.25% US$1,500 million 3.150% notes due 2051 9,764 9,448 3.19% US$1,000 million 4.400% notes due 2057 6,501 6,290 4.44% US$1,000 million 3.250% notes due 2061 6,510 6,296 3.28% Carrying value 107,212 94,259 Unamortized discount and debt issuance costs 756 668 Total principal amounts of unsecured senior notes 107,968 94,927 Less: current portion of principal amounts of unsecured senior notes (9,845) — Non-current portion of principal amounts of unsecured senior notes 98,123 94,927 |
Schedule of future principal payments due | Principal amounts (in millions of RMB) Within 1 year — Between 1 to 2 years 4,445 Between 2 to 3 years 14,287 Between 3 to 4 years — Between 4 to 5 years — Thereafter 76,195 94,927 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Ant Group and its affiliates | |
Related party transactions | |
Schedule of transactions | Year ended March 31, 2020 2021 2022 (in millions of RMB) Amounts earned by the Company Cloud services revenue (i) 1,872 3,916 5,536 Administrative and support services (i) 1,224 1,208 1,165 Annual fee for SME loan business (ii) 954 954 708 Profit Share Payments (iii) 3,835 — — Marketplace software technology services fee and other amounts earned (i) 2,075 2,427 2,358 9,960 8,505 9,767 Amounts incurred by the Company Payment processing and escrow services fee (iv) 8,723 10,598 11,824 Other amounts incurred (i) 2,743 4,509 3,542 11,466 15,107 15,366 (i) The Company has other commercial arrangements and cost sharing arrangements with Ant Group and its affiliates on various sales and marketing, cloud, and other administrative and support services. (ii) Pursuant to the SAPA, the Company entered into software system use and service agreements with Ant Group in 2014, under which the Company would receive annual fees for SME loan business for a term of seven years . In calendar years 2018 to 2021, the Company received or will receive annual fees equal to the amount received in calendar year 2017, which was equal to 2.5 % of the average daily balance of the SME loans made by Ant Group and its affiliates during that year. The annual fee payment by Ant Group in relation to SME loan business was terminated in December 2021. (iii) In 2014, the Company entered into the 2014 IPLA with Ant Group. Under the 2014 IPLA, the Company received the Profit Share Payments amounting to the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Ant Group, subject to certain adjustments. Upon the receipt of 33% equity interest in Ant Group in September 2019, the Company entered into the Amended IPLA and terminated the 2014 IPLA, and the Profit Share Payments arrangement was terminated (Note 4(k)). Profit Share Payments were recorded in other income, net in the consolidated income statements, net of the costs incurred for the provision of the software technology services reimbursed by Ant Group. (iv) The Company has a commercial agreement with Alipay whereby the Company receives payment processing and escrow services in exchange for a payment for the services fee, which was recognized in cost of revenue. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Commitments | |
Schedule of capital commitments | As of March 31, 2021 2022 (in millions of RMB) No later than 1 year 23,424 25,438 Later than 1 year and no later than 5 years 13,768 13,781 More than 5 years 403 53 37,595 39,272 |
Schedule of other commitments | As of March 31, 2021 2022 (in millions of RMB) No later than 1 year 35,109 37,229 Later than 1 year and no later than 5 years 17,266 17,347 More than 5 years 2,849 2,446 55,224 57,022 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment information | |
Schedule of each segment's revenue, income from operations and adjusted EBITA | a Year ended March 31, 2020 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 351,977 33,917 29,660 22,233 40,301 29,094 2,529 509,711 — 509,711 Income (Loss) from operations 174,561 (7,615) (26,289) (5,218) (9,662) (15,389) (6,661) 103,727 (12,297) 91,430 Add: share-based compensation expense 9,409 2,996 3,027 961 6,231 2,566 2,308 27,498 4,244 31,742 Add: amortization and impairment of intangible assets 845 279 8,245 2,373 25 1,377 86 13,230 158 13,388 Add: impairment of goodwill — — — — — — — — 576 576 Adjusted EBITA (iv) 184,815 (4,340) (15,017) (1,884) (3,406) (11,446) (4,267) 144,455 (7,319) Adjusted EBITA margin (v) 53% (13)% (51)% (8)% (8)% (39)% (169)% Year ended March 31, 2021 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 501,683 48,851 35,442 37,258 60,558 31,186 2,311 717,289 — 717,289 Income (Loss) from operations 197,135 (9,361) (29,100) (3,964) (12,479) (10,321) (7,802) 124,108 (34,430) 89,678 Add: share-based compensation expense 14,505 4,223 4,972 1,956 10,205 3,281 2,518 41,660 8,460 50,120 Add: amortization of intangible assets 1,922 206 7,852 1,195 23 922 83 12,203 224 12,427 Add: Anti-monopoly Fine — — — — — — — — 18,228 18,228 Adjusted EBITA (iv) 213,562 (4,932) (16,276) (813) (2,251) (6,118) (5,201) 177,971 (7,518) Adjusted EBITA margin (v) 43% (10)% (46)% (2)% (4)% (20)% (225)% 26. Segment information (Continued) Year ended March 31, 2022 Local Digital media Innovation China International consumer and initiatives and Total commerce commerce services (i) Cainiao Cloud (ii) entertainment others (i)(ii) segments Unallocated (iii) Consolidated (in millions of RMB, except percentages) Revenue 592,705 61,078 43,491 46,107 74,568 32,272 2,841 853,062 — 853,062 Income (Loss) from operations 172,219 (10,655) (30,485) (3,920) (5,167) (7,019) (9,424) 105,549 (35,911) 69,638 Add: share-based compensation expense 7,078 1,569 2,556 1,396 6,297 1,520 1,839 22,255 1,716 23,971 Add: amortization of intangible assets 2,817 95 6,154 1,059 16 809 456 11,406 241 11,647 Add: impairment of goodwill — — — — — — — — 25,141 25,141 Adjusted EBITA (iv) 182,114 (8,991) (21,775) (1,465) 1,146 (4,690) (7,129) 139,210 (8,813) Adjusted EBITA margin (v) 31% (15)% (50)% (3)% 2% (15)% (251)% |
Schedule of reconciliation from the adjusted EBITA to the consolidated net income | Year ended March 31, 2020 2021 2022 (in millions of RMB) Total Segments Adjusted EBITA 144,455 177,971 139,210 Unallocated (iii) (7,319) (7,518) (8,813) Share-based compensation expense (31,742) (50,120) (23,971) Amortization and impairment of intangible assets (13,388) (12,427) (11,647) Impairment of goodwill (576) — (25,141) Anti-monopoly Fine — (18,228) — Consolidated income from operations 91,430 89,678 69,638 Interest and investment income, net 72,956 72,794 (15,702) Interest expense (5,180) (4,476) (4,909) Other income, net 7,439 7,582 10,523 Income tax expenses (20,562) (29,278) (26,815) Share of results of equity method investees (5,733) 6,984 14,344 Consolidated net income 140,350 143,284 47,079 |
Schedule of depreciation and impairment of property and equipment and land use rights by segment | Year ended March 31, 2020 2021 2022 (in millions of RMB) China commerce 6,605 9,790 13,043 International commerce 725 1,180 1,473 Local consumer services (i) 766 1,161 1,237 Cainiao 694 872 992 Cloud (ii) 9,257 11,161 7,613 Digital media and entertainment 1,359 1,109 956 Innovation initiatives and others and unallocated (i)(ii)(iii) 1,117 1,116 2,494 Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 20,523 26,389 27,808 (i) For the year ended March 31, 2022, as a result of the change in segment reporting (Note 2 (e)), the Company reclassified results of Amap, which was previously reported under the Innovation initiatives and others segment, to the Local consumer services segment. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (ii) For the year ended March 31, 2022, the Company reclassified results of DingTalk, which was previously reported under the Innovation initiatives and others segment, to the Cloud segment in order to conform to the way that we manage and monitor segment performance. Figures for the years ended March 31, 2020 and 2021 were reclassified to conform to this presentation. (iii) Unallocated expenses primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. (iv) Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets and impairment of goodwill, and (iii) Anti-monopoly Fine, which the Company does not believe are reflective of the Company’s core operating performance during the periods presented. (v) Adjusted EBITA margin represents Adjusted EBITA divided by revenue. |
Organization and principal ac_2
Organization and principal activities (Details) ¥ in Millions | 6 Months Ended | 12 Months Ended | ||
Nov. 26, 2019 CNY (¥) shares | Sep. 30, 2021 segment | Mar. 31, 2022 segment | Nov. 26, 2019 $ / shares | |
Organization and principal activities | ||||
Number of operating segment | segment | 4 | 7 | ||
Number of reportable segment | segment | 4 | 7 | ||
Global offering | ||||
Organization and principal activities | ||||
Shares issued (in shares) | shares | 575,000,000 | |||
Price of share issued (in HKD per share) | $ / shares | $ 176 | |||
Net proceeds raised by the Company from the global offering | ¥ | ¥ 90,442 | |||
Over-allotment option | ||||
Organization and principal activities | ||||
Shares issued (in shares) | shares | 75,000,000 |
Summary of significant accoun_4
Summary of significant accounting policies - Basis of presentation (Details) | Jul. 30, 2019 USD ($) $ / shares shares | Mar. 31, 2022 $ / shares $ / ¥ shares | Mar. 31, 2021 $ / shares shares | Mar. 31, 2020 | Jul. 29, 2019 |
Basis of presentation | |||||
Ratio of share subdivision | 8 | ||||
Authorized share capital | $ | $ 100,000 | ||||
Ordinary shares authorized (in shares) | 32,000,000,000 | 32,000,000,000 | 32,000,000,000 | ||
Ordinary shares par value (in USD per share) | $ / shares | $ 0.000003125 | $ 0.000003125 | $ 0.000003125 | ||
ADS ratio | 8 | 8 | 8 | 8 | 1 |
Convenience translation | |||||
Convenience exchange rate (RMB to USD) | $ / ¥ | 6.3393 | ||||
American Depositary Shares ("ADSs") | |||||
Basis of presentation | |||||
Shares issued (in shares) | 0 |
Summary of significant accoun_5
Summary of significant accounting policies- Consolidation (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | |
Consolidated VIEs and their subsidiaries | |||||
Accounts receivable, net of allowance | ¥ 32,813 | ¥ 27,076 | |||
Total assets | 1,695,553 | 1,690,218 | $ 267,467 | ||
Accrued expenses, accounts payable and other liabilities | 271,460 | 261,140 | 42,822 | ||
Deferred revenue and customer advances | 70,473 | 65,647 | |||
Total liabilities | 613,360 | 606,584 | $ 96,755 | ||
Revenue | 853,062 | $ 134,567 | 717,289 | ¥ 509,711 | |
Net (loss) income | 47,079 | 7,427 | 143,284 | 140,350 | |
Net cash (used in) provided by operating activities | 142,759 | 22,520 | 231,786 | 180,607 | |
Net cash used in investing activities | (198,592) | (31,327) | (244,194) | (108,072) | |
Net cash provided by (used in) financing activities | (64,449) | $ (10,167) | 30,082 | 70,853 | |
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 and their subsidiaries | |||||
Consolidated VIEs and their subsidiaries | |||||
Cash and cash equivalents and short-term investments | 15,943 | 17,295 | |||
Investments in equity method investees and equity securities and other investments | 37,647 | 44,125 | |||
Accounts receivable, net of allowance | 22,003 | 18,259 | |||
Amounts due from non-VIE subsidiaries of the Company | 28,377 | 19,838 | |||
Property and equipment, net and intangible assets, net | 8,608 | 7,354 | |||
Others | 25,927 | 18,726 | |||
Total assets | 138,505 | 125,597 | |||
Amounts due to non-VIE subsidiaries of the Company | 89,271 | 94,779 | |||
Accrued expenses, accounts payable and other liabilities | 38,826 | 30,684 | |||
Deferred revenue and customer advances | 13,570 | 13,103 | |||
Total liabilities | 141,667 | 138,566 | |||
Revenue | 111,498 | 93,029 | 81,742 | ||
Net (loss) income | 5,944 | 2,557 | (1,757) | ||
Net cash (used in) provided by operating activities | 19,932 | 329 | (253) | ||
Net cash used in investing activities | (16,710) | (18,445) | (7,289) | ||
Net cash provided by (used in) financing activities | ¥ (9,904) | ¥ 14,463 | ¥ 9,887 |
Summary of significant accoun_6
Summary of significant accounting policies- Various (Details) ¥ in Millions | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 segment | Mar. 31, 2022 CNY (¥) segment | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Business combinations and noncontrolling interests | ||||
Net (loss) income attributable to mezzanine equity holders | ¥ 188 | ¥ 140 | ¥ (124) | |
Segment reporting | ||||
Number of operating segment | segment | 4 | 7 | ||
Number of reportable segment | segment | 4 | 7 | ||
Revenue recognition | ||||
Practical expedient, unsatisfied performance obligations | true | |||
Practical expedient, financing component | true | |||
Sales and marketing expenses | ||||
Advertising and promotional expenses | ¥ 91,103 | 57,073 | 30,949 | |
Other employee benefits | ||||
Contribution amount charged to the consolidated income statements | 13,086 | 8,223 | ¥ 6,705 | |
Accounts receivable | ||||
Allowance for doubtful accounts | ¥ 4,912 | ¥ 3,977 |
Summary of significant accoun_7
Summary of significant accounting policies- Long-lived assets (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Summary of significant accounting policies | ||||
Amortization expenses | ¥ 20,257 | $ 3,195 | ¥ 21,520 | ¥ 21,904 |
Impairment of long-lived assets other than goodwill and licensed copyrights | 973 | 0 | 874 | |
ASU 2019-02 | ||||
Summary of significant accounting policies | ||||
Cash outflows for the acquisition of licensed copyrights | ¥ 10,096 | 11,811 | ||
User base and customer relationships | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 3 years | 3 years | ||
User base and customer relationships | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 16 years | 16 years | ||
Trade names, trademarks and domain names | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 5 years | 5 years | ||
Trade names, trademarks and domain names | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 20 years | 20 years | ||
Developed technology and patents | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 2 years | 2 years | ||
Developed technology and patents | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 7 years | 7 years | ||
Non-compete agreements | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 10 years | 10 years | ||
Licensed copyrights | Cost of revenue | Digital media and entertainment | ||||
Summary of significant accounting policies | ||||
Amortization expenses | ¥ 8,610 | 9,093 | 9,390 | |
Impairment charges | ¥ 745 | ¥ 1,688 | ¥ 2,654 | |
Licensed copyrights | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 6 months | 6 months | ||
Licensed copyrights | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of intangible assets (in months/years) | 10 years | 10 years | ||
Computer equipment and software | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 3 years | 3 years | ||
Computer equipment and software | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 5 years | 5 years | ||
Furniture, office and transportation equipment and others | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 3 years | 3 years | ||
Furniture, office and transportation equipment and others | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 10 years | 10 years | ||
Building and other property | Minimum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 10 years | 10 years | ||
Building and other property | Maximum | ||||
Summary of significant accounting policies | ||||
Estimated useful lives of property and equipment (in years) | 50 years | 50 years |
Summary of significant accoun_8
Summary of significant accounting policies- Others (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Treasury shares | |||
Number of ordinary shares included in treasury shares account | 0 | 143,363,408 | |
Statutory reserves | |||
Percentage of after-tax profit from subsidiaries incorporated in the PRC required to be appropriated to the statutory reserves | 10% | ||
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50% | ||
Appropriation to the enterprise expansion fund and staff welfare and bonus fund | ¥ 0 | ¥ 0 | ¥ 0 |
PRC | |||
Statutory reserves | |||
Appropriation to statutory reserves | ¥ 2,492 | ¥ 1,247 | ¥ 1,032 |
Minimum | |||
Derivatives and hedging | |||
Ratio determining effective hedging relationship | 80% | ||
Maximum | |||
Derivatives and hedging | |||
Ratio determining effective hedging relationship | 125% |
Significant mergers and acqui_3
Significant mergers and acquisitions and investments - Sun Art (Details) ¥ in Millions, $ in Millions, $ in Billions | 1 Months Ended | 12 Months Ended | 15 Months Ended | |||||||||
Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 HKD ($) | Oct. 31, 2020 CNY (¥) | Oct. 31, 2020 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2022 USD ($) | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | ¥ 5,282 | ¥ 27,014 | ¥ 16,022 | |||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Goodwill | 269,581 | 292,771 | 276,782 | ¥ 292,771 | $ 42,525 | |||||||
Total purchase price is comprised of: | ||||||||||||
- cash consideration | 5,282 | 27,014 | 16,022 | |||||||||
Revenue | 853,062 | $ 134,567 | 717,289 | 509,711 | ||||||||
Net income | ¥ 47,079 | $ 7,427 | 143,284 | ¥ 140,350 | ||||||||
Sun Art Retail Group Limited | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Revenue | ¥ 95,400 | 124,300 | ||||||||||
Net income | ¥ 3,000 | ¥ 3,800 | ||||||||||
Trade names, trademarks and domain names | Maximum | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Estimated amortization periods | 20 years | 20 years | ||||||||||
Non-compete agreements | Maximum | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Estimated amortization periods | 10 years | 10 years | ||||||||||
Developed technology and patents | Maximum | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Estimated amortization periods | 7 years | 7 years | ||||||||||
User base and customer relationships | Maximum | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Estimated amortization periods | 16 years | 16 years | ||||||||||
Sun Art Retail Group Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Equity interest held in subsidiary (as a percentage) | 74% | 74% | ||||||||||
Sun Art Retail Group Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | ¥ 24,136 | $ 3,600 | ||||||||||
Equity interest in consolidated subsidiary (as a percent) | 67% | |||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Net assets acquired | ¥ 49,672 | |||||||||||
Goodwill | 13,474 | |||||||||||
Deferred tax liabilities | (9,629) | |||||||||||
Noncontrolling interests | (23,684) | |||||||||||
Total | 46,695 | |||||||||||
Total purchase price is comprised of: | ||||||||||||
- cash consideration | 24,136 | $ 3,600 | ||||||||||
- fair value of previously held equity interests | 22,559 | |||||||||||
Total | 46,695 | |||||||||||
Property and equipment | 27,333 | |||||||||||
Operating lease right-of-use assets relating to land use rights | 22,997 | |||||||||||
Payables and accruals for cost of revenue | 14,681 | |||||||||||
Short-term investments | 14,387 | |||||||||||
Customer advances | 11,082 | |||||||||||
Inventories | ¥ 9,341 | |||||||||||
Weighted average amortization period | 11 years 9 months 18 days | 11 years 9 months 18 days | ||||||||||
Gain recognized in relation to the revaluation of previously held equity interest relating to obtaining control | 6,381 | |||||||||||
Revenue | ¥ 42,900 | |||||||||||
Cash consideration for additional equity interest acquired | ¥ 4,100 | $ 4.9 | ||||||||||
Reduction of noncontrolling interest | ¥ 4,592 | |||||||||||
Sun Art Retail Group Limited | Maximum | ||||||||||||
Total purchase price is comprised of: | ||||||||||||
Estimated amortization periods | 13 years | 13 years | ||||||||||
Sun Art Retail Group Limited | Trade names, trademarks and domain names | ||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Amortizable intangible assets | ¥ 11,500 | |||||||||||
Sun Art Retail Group Limited | Non-compete agreements | ||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Amortizable intangible assets | 4,700 | |||||||||||
Sun Art Retail Group Limited | Developed technology and patents | ||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Amortizable intangible assets | 615 | |||||||||||
Sun Art Retail Group Limited | User base and customer relationships | ||||||||||||
The allocation of the purchase price at the date of acquisition | ||||||||||||
Amortizable intangible assets | ¥ 47 | |||||||||||
Sun Art Retail Group Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Equity interest (as a percent) | 31% |
Significant mergers and acqui_4
Significant mergers and acquisitions and investments - Koala (Details) ¥ in Millions, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 CNY (¥) shares | Sep. 30, 2019 USD ($) shares | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | Sep. 30, 2019 USD ($) | |
The allocation of the purchase price at the date of acquisition | |||||||
Goodwill | ¥ 269,581 | ¥ 292,771 | ¥ 276,782 | $ 42,525 | |||
Total purchase price is comprised of: | |||||||
- cash consideration | ¥ 5,282 | ¥ 27,014 | ¥ 16,022 | ||||
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 | ||||||
Non-compete agreements | Maximum | |||||||
Total purchase price is comprised of: | |||||||
Estimated amortization periods | 10 years | ||||||
Developed technology and patents | Maximum | |||||||
Total purchase price is comprised of: | |||||||
Estimated amortization periods | 7 years | ||||||
Koala | |||||||
Acquisition | |||||||
Percentage of equity interest acquired | 100% | 100% | |||||
Aggregate purchase price | ¥ 13,326 | $ 1,874 | |||||
Newly-issued ordinary shares (in shares) | shares | 14.3 | 14.3 | |||||
Newly-issued ordinary shares | ¥ 2,252 | $ 316 | |||||
The allocation of the purchase price at the date of acquisition | |||||||
Net assets acquired | 1,621 | ||||||
Goodwill | 6,781 | ||||||
Deferred tax liabilities | (338) | ||||||
Total | 13,326 | ||||||
Total purchase price is comprised of: | |||||||
- cash consideration | 10,025 | ||||||
- share consideration | 2,252 | $ 316 | |||||
- contingent consideration | 1,049 | ||||||
Total | 13,326 | ||||||
Inventories | ¥ 1,943 | ||||||
Weighted average amortization period | 8 years 6 months | 8 years 6 months | |||||
Koala | Maximum | |||||||
Total purchase price is comprised of: | |||||||
- contingent consideration | ¥ 846 | ||||||
Estimated amortization periods | 13 years | 13 years | |||||
Koala | Trade names, trademarks and domain names | |||||||
The allocation of the purchase price at the date of acquisition | |||||||
Amortizable intangible assets | ¥ 2,531 | ||||||
Koala | User base and customer relationships | |||||||
The allocation of the purchase price at the date of acquisition | |||||||
Amortizable intangible assets | 1,297 | ||||||
Koala | Non-compete agreements | |||||||
The allocation of the purchase price at the date of acquisition | |||||||
Amortizable intangible assets | 1,040 | ||||||
Koala | Developed technology and patents | |||||||
The allocation of the purchase price at the date of acquisition | |||||||
Amortizable intangible assets | ¥ 394 | ||||||
Koala | American Depositary Shares ("ADSs") | |||||||
Acquisition | |||||||
Newly-issued ordinary shares (in shares) | shares | 1.8 | 1.8 |
Significant mergers and acqui_5
Significant mergers and acquisitions and investments - Other acquisitions (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | |
Other acquisitions | ||||
Goodwill | ¥ 269,581 | ¥ 292,771 | ¥ 276,782 | $ 42,525 |
Total purchase price is comprised of: | ||||
- cash consideration | 5,282 | 27,014 | 16,022 | |
Gain (loss) recognized in relation to revaluation of previously held equity interests | (2) | 8,759 | 1,538 | |
Other acquisitions, summarized | ||||
Other acquisitions | ||||
Net assets (liabilities) | 852 | (106) | 846 | |
Identifiable intangible assets | 1,000 | 3,888 | 364 | |
Deferred tax liabilities | (170) | (195) | (53) | |
Subtotal | 1,682 | 3,587 | 1,157 | |
Noncontrolling interests and mezzanine equity | (1,884) | (3,310) | (998) | |
Net identifiable assets (liabilities) | (202) | 277 | 159 | |
Goodwill | 3,283 | 4,105 | 7,840 | |
Total | 3,081 | 4,382 | 7,999 | |
Fair value of previously held equity interests | (31) | (2,434) | (2,215) | |
Purchase consideration settled | (2,671) | (1,794) | (5,146) | |
Deferred consideration as of year end | 379 | 154 | 638 | |
Total purchase price is comprised of: | ||||
- cash consideration | 3,050 | 875 | 5,784 | |
- non-cash consideration | 1,073 | |||
- fair value of previously held equity interests | 31 | 2,434 | 2,215 | |
Total | 3,081 | 4,382 | 7,999 | |
Gain (loss) recognized in relation to revaluation of previously held equity interests | ¥ (2) | ¥ 2,378 | ¥ 1,538 |
Significant mergers and acqui_6
Significant mergers and acquisitions and investments - Equity investments and others (Details) ¥ / shares in Units, ¥ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 27, 2022 CNY (¥) | Oct. 31, 2021 CNY (¥) | Aug. 31, 2021 CNY (¥) | Aug. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2021 HKD ($) | Feb. 28, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 CNY (¥) | Oct. 31, 2019 USD ($) | Sep. 30, 2019 CNY (¥) employee | Jul. 31, 2019 CNY (¥) | May 31, 2019 CNY (¥) ¥ / shares | May 31, 2019 HKD ($) | Aug. 31, 2014 | Dec. 31, 2019 CNY (¥) | Dec. 31, 2020 CNY (¥) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2014 | Nov. 30, 2020 | Aug. 31, 2020 | Oct. 31, 2019 CNY (¥) | Sep. 30, 2019 USD ($) employee | |
Investment | ||||||||||||||||||||||||||
Gain in interest and investment income, net | ¥ 71,561 | |||||||||||||||||||||||||
Profit Share Payments | Ant Group | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Additional fee, as a percentage of pre-tax income | 37.50% | |||||||||||||||||||||||||
Amounts earned by the Company | 3,835 | |||||||||||||||||||||||||
SAPA | Pre-emptive rights | Ant Group | Maximum | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Consideration to be received from related party | $ | $ 1,500 | |||||||||||||||||||||||||
SAPA | Corporate governance provisions | Ant Group | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Number of officers or employees | employee | 2 | 2 | ||||||||||||||||||||||||
Number of officers nominated | employee | 2 | |||||||||||||||||||||||||
2014 IPLA | Profit Share Payments | Ant Group | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Additional fee, as a percentage of pre-tax income | 37.50% | |||||||||||||||||||||||||
Amounts earned by the Company | 3,835 | |||||||||||||||||||||||||
Bilibili, Inc | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Cash consideration | ¥ 4,885 | $ 5,818 | ||||||||||||||||||||||||
Equity interest (as a percent) | 8% | 8% | 8% | 8% | ||||||||||||||||||||||
STO Express | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Cash consideration | ¥ 4,700 | |||||||||||||||||||||||||
Percentage of equity interest acquired | 14.70% | |||||||||||||||||||||||||
Percentage of equity interest the Company may elect to acquire | 31.30% | |||||||||||||||||||||||||
Total consideration | ¥ 10,000 | |||||||||||||||||||||||||
Losses relating to options | ¥ 36 | ¥ 1,413 | 1,766 | |||||||||||||||||||||||
Purchase consideration | ¥ 3,300 | |||||||||||||||||||||||||
Equity interest (as a percent) | 25% | |||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 2,002 | |||||||||||||||||||||||||
STO Express | Subsequent event | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Percentage of equity interest the Company may elect to acquire | 21% | |||||||||||||||||||||||||
Total consideration | ¥ 6,700 | |||||||||||||||||||||||||
STO Express | Amortizable intangible assets | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 1,731 | |||||||||||||||||||||||||
STO Express | Goodwill | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 2,433 | |||||||||||||||||||||||||
STO Express | Deferred tax liabilities | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 477 | |||||||||||||||||||||||||
Mango Excellent Media Co | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Cash consideration | ¥ 6,200 | |||||||||||||||||||||||||
Percentage of equity interest acquired | 5% | 5% | 5% | |||||||||||||||||||||||
China Broadcasting Network Joint Stock Corporation Limited | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Cash consideration | ¥ 10,000 | |||||||||||||||||||||||||
Percentage of equity interest acquired | 7% | 7% | 7% | |||||||||||||||||||||||
YTO Express Group Co., Ltd | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Equity interest (as a percent) | 11% | |||||||||||||||||||||||||
Purchase consideration | ¥ 6,600 | |||||||||||||||||||||||||
Equity interest (as a percent) | 23% | |||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 3,891 | |||||||||||||||||||||||||
YTO Express Group Co., Ltd | Amortizable intangible assets | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 4,442 | |||||||||||||||||||||||||
YTO Express Group Co., Ltd | Goodwill | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 4,270 | |||||||||||||||||||||||||
YTO Express Group Co., Ltd | Deferred tax liabilities | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 1,171 | |||||||||||||||||||||||||
Meinian | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Purchase consideration | ¥ 6,700 | |||||||||||||||||||||||||
Equity interest (as a percent) | 14% | 13% | ||||||||||||||||||||||||
Allocated to net assets acquired | ¥ 191 | |||||||||||||||||||||||||
Meinian | Amortizable intangible assets | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 2,573 | |||||||||||||||||||||||||
Meinian | Goodwill | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 4,579 | |||||||||||||||||||||||||
Meinian | Deferred tax liabilities | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 643 | |||||||||||||||||||||||||
AliExpress Russia Joint Venture | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Purchase consideration | ¥ 1,244 | $ 192 | $ 100 | |||||||||||||||||||||||
Equity interest (as a percent) | 48% | 48% | 48% | 48% | 48% | 56% | ||||||||||||||||||||
Allocated to net assets acquired | ¥ 1,630 | |||||||||||||||||||||||||
Cash consideration | ¥ 1,269 | $ 194 | ||||||||||||||||||||||||
AliExpress Russia Joint Venture | Amortizable intangible assets | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 2,325 | |||||||||||||||||||||||||
AliExpress Russia Joint Venture | Goodwill | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | 4,290 | |||||||||||||||||||||||||
AliExpress Russia Joint Venture | Deferred tax liabilities | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 116 | |||||||||||||||||||||||||
AliExpress Russia businesses | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Deconsolidation gain | ¥ 10,300 | |||||||||||||||||||||||||
Ant Group | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Equity interest (as a percent) | 33% | 33% | 33% | |||||||||||||||||||||||
Deferred tax effect | ¥ 19,700 | |||||||||||||||||||||||||
Ant Group | SAPA | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Equity interest (as a percent) | 33% | 33% | ||||||||||||||||||||||||
Cost of equity interest | ¥ 90,700 | |||||||||||||||||||||||||
Other cost reimbursement | 600 | |||||||||||||||||||||||||
Deferred tax effect | 19,700 | |||||||||||||||||||||||||
Gain in interest and investment income, net | ¥ 71,600 | |||||||||||||||||||||||||
Weighted average amortization period | 9 years 6 months | |||||||||||||||||||||||||
Ant Group | Amortizable intangible assets | SAPA | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 24,500 | |||||||||||||||||||||||||
Ant Group | Equity investments | SAPA | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Difference between equity method carrying amount and underlying equity in net assets | ¥ 5,300 | |||||||||||||||||||||||||
Red Star | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Cash consideration | ¥ 350 | |||||||||||||||||||||||||
Percentage of equity interest acquired | 3% | 2% | 2% | |||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Total consideration | ¥ 390 | $ 447 | ||||||||||||||||||||||||
Sun Art Retail Group Limited | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Equity interest (as a percent) | 31% |
Revenue- Breakdown by segment (
Revenue- Breakdown by segment (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Revenue breakdown | ||||
Revenue | ¥ 853,062 | $ 134,567 | ¥ 717,289 | ¥ 509,711 |
Sun Art Retail Group Limited | ||||
Revenue breakdown | ||||
Revenue | 42,900 | |||
Customer management services | ||||
Revenue breakdown | ||||
Revenue | 379,999 | 363,381 | 297,592 | |
China commerce | ||||
Revenue breakdown | ||||
Revenue | 592,705 | 501,683 | 351,977 | |
China commerce | Retail | ||||
Revenue breakdown | ||||
Revenue | 575,993 | 487,361 | 339,550 | |
China commerce | Retail | Customer management services | ||||
Revenue breakdown | ||||
Revenue | 315,038 | 304,543 | 244,479 | |
China commerce | Retail | Direct sales and others | ||||
Revenue breakdown | ||||
Revenue | 260,955 | 182,818 | 95,071 | |
China commerce | Wholesale | ||||
Revenue breakdown | ||||
Revenue | 16,712 | 14,322 | 12,427 | |
International commerce | ||||
Revenue breakdown | ||||
Revenue | 61,078 | 48,851 | 33,917 | |
International commerce | Retail | ||||
Revenue breakdown | ||||
Revenue | 42,668 | 34,455 | 24,323 | |
International commerce | Wholesale | ||||
Revenue breakdown | ||||
Revenue | 18,410 | 14,396 | 9,594 | |
Local consumer services | ||||
Revenue breakdown | ||||
Revenue | 43,491 | 35,442 | 29,660 | |
Cainiao | ||||
Revenue breakdown | ||||
Revenue | 46,107 | 37,258 | 22,233 | |
Cloud | ||||
Revenue breakdown | ||||
Revenue | 74,568 | 60,558 | 40,301 | |
Digital media and entertainment | ||||
Revenue breakdown | ||||
Revenue | 32,272 | 31,186 | 29,094 | |
Innovation initiatives and others | ||||
Revenue breakdown | ||||
Revenue | ¥ 2,841 | ¥ 2,311 | ¥ 2,529 |
Revenue- By type (Details)
Revenue- By type (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Revenue by type of service | ||||
Revenue | ¥ 853,062 | $ 134,567 | ¥ 717,289 | ¥ 509,711 |
Customer management services | ||||
Revenue by type of service | ||||
Revenue | 379,999 | 363,381 | 297,592 | |
Membership fees | ||||
Revenue by type of service | ||||
Revenue | 35,739 | 29,450 | 22,846 | |
Logistics services | ||||
Revenue by type of service | ||||
Revenue | 71,279 | 55,653 | 33,942 | |
Cloud services | ||||
Revenue by type of service | ||||
Revenue | 74,123 | 60,120 | 40,016 | |
Sales of goods | ||||
Revenue by type of service | ||||
Revenue | 255,171 | 180,634 | 95,503 | |
Other revenue | ||||
Revenue by type of service | ||||
Revenue | ¥ 36,751 | ¥ 28,051 | ¥ 19,812 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Mar. 31, 2022 | |
Leases | |
Renewal option | true |
Termination option | true |
Maximum | |
Leases | |
Renewal term (in years) | 5 years |
Leases - Operating lease cost a
Leases - Operating lease cost and others (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Components of operating lease cost | |||
Operating lease cost | ¥ 10,982 | ¥ 6,812 | ¥ 5,600 |
Variable lease cost | 837 | 47 | 79 |
Total operating lease cost | 11,819 | 6,859 | 5,679 |
Cash payments for operating leases | 6,556 | 4,408 | ¥ 3,666 |
Operating lease assets obtained in exchange for operating lease liabilities | ¥ 7,375 | ¥ 6,974 | |
Weighted average remaining lease term (in years) | 9 years 10 months 24 days | 9 years 10 months 24 days | |
Weighted average discount rate (as a percent) | 5.10% | 5.40% |
Leases - Future lease payments
Leases - Future lease payments (Details) ¥ in Millions | Mar. 31, 2022 CNY (¥) |
Future lease payments under operating leases | |
2023 | ¥ 6,717 |
2024 | 5,888 |
2025 | 4,978 |
2026 | 4,244 |
2027 | 3,614 |
Thereafter | 20,335 |
Total | 45,776 |
Less: imputed interest | (10,523) |
Total operating lease liabilities (Note 19) | ¥ 35,253 |
Income tax expenses- General (D
Income tax expenses- General (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Composition of income tax expenses | |||||||
Current income tax expense | ¥ 28,184 | ¥ 26,042 | ¥ 24,005 | ||||
Deferred taxation | (1,369) | $ (216) | 3,236 | (3,443) | |||
Income tax expenses | ¥ 26,815 | $ 4,230 | ¥ 29,278 | ¥ 20,562 | |||
Enterprise income tax rate (as a percent) | 25% | 25% | 25% | 25% | |||
Total tax adjustments | ¥ 0 | ¥ 6,085 | ¥ 4,144 | ||||
Undistributed earnings intended to be invested indefinitely in the PRC | ¥ 176,400 | ¥ 195,300 | |||||
Cayman Islands | |||||||
Composition of income tax expenses | |||||||
Withholding tax to be imposed upon payments of dividends to shareholders (as a percent) | 0% | 0% | |||||
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% | 25% | 25% | 25% | |||
Withholding income tax rate on dividends declared by PRC companies to their foreign investors (as a percent) | 10% | 10% | |||||
Lower withholding income tax rate on dividends declared by PRC companies to foreign investors with certain criteria met (as a percent) | 5% | 5% | |||||
Minimum percentage of ownership interests held by investors in Hong Kong to qualify for lower withholding tax rate (as a percent) | 25% | 25% | |||||
PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 15% | 15% | |||||
PRC | Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Period of full exemption from income tax | 2 years | 2 years | |||||
Reduction in preferential tax rate (as a percent) | 50% | 50% | |||||
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% | 10% | |||||
Alibaba China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15% | 15% | 15% | 15% | |||
Alibaba China | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10% | 10% | |||||
Taobao China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15% | 15% | 15% | 15% | |||
Taobao China | PRC | Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10% | 10% | |||||
Tmall China | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15% | 15% | 15% | 15% | |||
Tmall China | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Preferential tax rate (as a percent) | 10% | 10% | |||||
Alibaba Beijing | PRC | Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 12.50% | 12.50% | 12.50% | ||||
Period of full exemption from income tax | 2 years | ||||||
Reduction in preferential tax rate (as a percent) | 50% | 50% | 50% | ||||
Period of 50% reduction to income tax rate | 3 years | ||||||
Alibaba Beijing | PRC | Key Software Enterprise | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 12.50% | ||||||
Preferential tax rate (as a percent) | 10% | ||||||
China Co. | PRC | High and New Technology Enterprises | |||||||
Composition of income tax expenses | |||||||
Enterprise income tax rate (as a percent) | 15% | 15% |
Income tax expenses- Compositio
Income tax expenses- Composition of deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2019 | |
Deferred tax assets | ||||
Licensed copyrights | ¥ 3,893 | ¥ 3,664 | ||
Tax losses carried forward and others | 46,945 | 40,031 | ||
Total deferred tax assets, gross | 50,838 | 43,695 | ||
Valuation allowance | (36,363) | (32,654) | ||
Total deferred tax assets | 14,475 | 11,041 | ||
Deferred tax liabilities | ||||
Identifiable intangible assets | (20,773) | (22,212) | ||
Withholding tax on undistributed earnings | (8,106) | (8,066) | ||
Equity method investees and others | (32,827) | (29,320) | ||
Total deferred tax liabilities | (61,706) | (59,598) | ||
Net deferred tax liabilities | (47,231) | (48,557) | ||
Undistributed earnings intended to be invested indefinitely in the PRC | 176,400 | ¥ 195,300 | ||
Ant Group | ||||
Deferred tax liabilities | ||||
Deferred tax effect | ¥ 19,700 | |||
Equity interest (as a percent) | 33% | 33% | ||
Singapore | ||||
Income tax | ||||
Accumulated tax losses of subsidiaries | 20,319 | |||
Hong Kong | ||||
Income tax | ||||
Accumulated tax losses of subsidiaries | 7,008 | |||
Indonesia | ||||
Income tax | ||||
Accumulated tax losses of subsidiaries | 4,071 | |||
PRC | ||||
Income tax | ||||
Accumulated tax losses of subsidiaries | ¥ 129,793 |
Income tax expenses- Reconcilia
Income tax expenses- Reconciliations (Details) ¥ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2022 CNY (¥) ¥ / shares | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) ¥ / shares | Mar. 31, 2020 CNY (¥) ¥ / shares | Sep. 30, 2019 | |
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 method investees | ¥ 59,550 | $ 9,394 | ¥ 165,578 | ¥ 166,645 | |
Income tax computed at statutory EIT rate (25%) | 14,888 | 41,395 | 41,661 | ||
Effect of different tax rates available to different jurisdictions | (2,006) | (1,982) | (1,085) | ||
Effect of tax holiday and preferential tax benefit on assessable profits of subsidiaries incorporated in the PRC | (7,367) | (20,675) | (18,552) | ||
Effect of the gain in relation to the receipt of the 33% equity interest in Ant Group (Note 4(k)) | (17,890) | ||||
Non-deductible expenses and non taxable income, net | 13,518 | 1,980 | 9,553 | ||
Additional deductions of certain research and development expenses incurred by subsidiaries in the PRC | (10,052) | (8,305) | (7,219) | ||
Withholding tax on the earnings distributed and anticipated to be remitted | 5,026 | 4,612 | 4,621 | ||
Change in valuation allowance and others | 12,808 | 12,253 | 9,473 | ||
Income tax expenses | ¥ 26,815 | $ 4,230 | ¥ 29,278 | ¥ 20,562 | |
Statutory EIT rate (as a percent) | 25% | 25% | 25% | 25% | |
Ant Group | |||||
Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company | |||||
Equity interest (as a percent) | 33% | 33% | |||
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% | 25% | 25% | 25% | |
Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) | ¥ / shares | ¥ 0.34 | ¥ 0.96 | ¥ 0.88 | ||
PRC | American Depositary Shares ("ADSs") | |||||
Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company | |||||
Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) | ¥ / shares | ¥ 2.73 | ¥ 7.65 | ¥ 7.06 |
Share-based awards- General (De
Share-based awards- General (Details) | 12 Months Ended | |||||
Jul. 30, 2019 | Apr. 01, 2015 shares | Mar. 31, 2022 shares | Mar. 31, 2021 | Mar. 31, 2020 | Jul. 29, 2019 | |
Share-based awards | ||||||
Number of shares authorized but unissued | 295,352,672 | |||||
Ratio of share subdivision | 8 | |||||
ADS ratio | 8 | 8 | 8 | 8 | 1 | |
2014 Plan | ||||||
Share-based awards | ||||||
Plan term | 10 years | |||||
2014 Plan | Maximum | ||||||
Share-based awards | ||||||
Additional number of shares subject to award | 200,000,000 |
Share-based awards- RSUs (Detai
Share-based awards- RSUs (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2022 CNY (¥) shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 CNY (¥) shares | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 $ / shares | |
Weighted-average grant-date fair value | |||||
Share-based compensation expense | ¥ 23,971 | $ 3,782 | ¥ 50,120 | ¥ 31,742 | |
RSUs | |||||
Summary of changes in the RSUs | |||||
Awarded and unvested at beginning of year | shares | 63,363,237 | 63,363,237 | |||
Granted | shares | 28,230,674 | 28,230,674 | |||
Vested | shares | (23,702,603) | (23,702,603) | |||
Cancelled/forfeited | shares | (7,215,021) | (7,215,021) | |||
Awarded and unvested at end of year | shares | 60,676,287 | 60,676,287 | 63,363,237 | ||
Expected to vest | shares | 50,145,101 | ||||
Weighted-average grant-date fair value | |||||
Awarded and unvested at beginning of year | $ / shares | $ 192.19 | ||||
Granted | $ / shares | 200.52 | ||||
Vested | $ / shares | 175.56 | ||||
Cancelled/forfeited | $ / shares | 203.85 | ||||
Awarded and unvested at end of year | $ / shares | $ 201.17 | ||||
Expected to vest | $ / shares | $ 200.96 | ||||
Unamortized compensation costs | ¥ | ¥ 25,636 | ||||
Weighted average period over which unamortized compensation costs expected be recognized | 1 year 10 months 24 days | 1 year 10 months 24 days | |||
Share-based compensation expense | ¥ | ¥ 30,313 | ¥ 28,934 | ¥ 25,651 | ||
RSUs | Maximum | |||||
Weighted-average grant-date fair value | |||||
Expiry period | 10 years | 10 years |
Share-based awards- Share optio
Share-based awards- Share options (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2022 CNY (¥) shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 CNY (¥) shares | Mar. 31, 2021 $ / shares | Mar. 31, 2020 CNY (¥) | Mar. 31, 2020 $ / shares | Mar. 31, 2019 shares | Mar. 31, 2022 $ / shares | |
Number of share options | ||||||||
Outstanding at beginning of year | 5,976,850 | 5,976,850 | ||||||
Granted | 1,710,000 | 1,710,000 | 0 | |||||
Exercised | (313,516) | (313,516) | ||||||
Outstanding at end of year | 7,373,334 | 7,373,334 | 5,976,850 | |||||
Vested and exercisable | 5,132,667 | |||||||
Vested and expected to vest | 7,135,333 | |||||||
Weighted average exercise price | ||||||||
Outstanding at beginning of year | $ / shares | $ 88.94 | |||||||
Granted | $ / shares | 25.04 | |||||||
Exercised | $ / shares | 59.12 | |||||||
Outstanding at end of year | $ / shares | $ 75.39 | $ 88.94 | ||||||
Vested and exercisable | $ / shares | $ 76.95 | |||||||
Vested and expected to vest | $ / shares | $ 74.42 | |||||||
Weighted average remaining contractual life | ||||||||
Weighted average remaining contractual life, outstanding | 3 years 6 months | 3 years 6 months | 2 years 7 months 6 days | |||||
Weighted average remaining contractual life, granted | 7 years 2 months 12 days | 7 years 2 months 12 days | ||||||
Weighted average remaining contractual life, vested and exercisable | 2 years 1 month 6 days | 2 years 1 month 6 days | ||||||
Weighted average remaining contractual life, vested and expected to vest | 3 years 4 months 24 days | 3 years 4 months 24 days | ||||||
Additional disclosure | ||||||||
Granted | 1,710,000 | 1,710,000 | 0 | |||||
Fair value assumptions | ||||||||
Share-based compensation expense | ¥ 23,971 | $ 3,782 | ¥ 50,120 | ¥ 31,742 | ||||
Options | ||||||||
Number of share options | ||||||||
Granted | 0 | 0 | ||||||
Additional disclosure | ||||||||
Aggregate intrinsic value of all outstanding options | ¥ | 2,032 | |||||||
Aggregate intrinsic value of options that were vested and exercisable | ¥ | 1,194 | |||||||
Aggregate intrinsic value of options that were vested and expected to vest | ¥ | 1,969 | |||||||
Weighted average grant date fair value of share options | $ / shares | $ 103.72 | $ 0 | $ 57.33 | |||||
Total grant date fair value of options vested | ¥ | 306 | ¥ 335 | 295 | |||||
Aggregate intrinsic value of share options exercised | ¥ | 137 | 468 | 1,011 | |||||
Cash received from option exercise under the share option plans | ¥ | ¥ 109 | ¥ 205 | ¥ 960 | |||||
Granted | 0 | 0 | ||||||
Fair value assumptions | ||||||||
Risk-free interest rate | 1.68% | |||||||
Risk-free interest rate, minimum | 1.93% | 1.93% | ||||||
Risk-free interest rate, maximum | 2% | 2% | ||||||
Expected dividend yield | 0% | 0% | 0% | |||||
Expected life (years) | 0 years | 4 years 6 months | ||||||
Expected volatility | 35.70% | 35.70% | 34.70% | |||||
Unamortized compensation costs | ¥ | ¥ 437 | |||||||
Weighted average period over which unamortized compensation costs expected be recognized | 3 years 6 months | 3 years 6 months | ||||||
Share-based compensation expense | ¥ | ¥ 86 | ¥ 159 | ¥ 140 | |||||
Options | Minimum | ||||||||
Fair value assumptions | ||||||||
Expected life (years) | 3 years 8 months 15 days | 3 years 8 months 15 days | ||||||
Options | Maximum | ||||||||
Additional disclosure | ||||||||
Expiry period | 10 years | 10 years | ||||||
Fair value assumptions | ||||||||
Expected life (years) | 7 years 1 month 20 days | 7 years 1 month 20 days |
Share-based awards- Partner Cap
Share-based awards- Partner Capital Investment Plan (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Share-based awards | ||||
Share-based compensation expense | ¥ 23,971 | $ 3,782 | ¥ 50,120 | ¥ 31,742 |
Partner Capital Investment Plan | Subscription rights | ||||
Share-based awards | ||||
Share-based compensation expense | ¥ 177 | ¥ 224 | ¥ 425 |
Share-based awards - Share-base
Share-based awards - Share-based awards relating to Ant Group (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Share-based awards | ||||
Share-based compensation expense | ¥ 23,971 | $ 3,782 | ¥ 50,120 | ¥ 31,742 |
Share-based awards with four-year vesting schedule | ||||
Share-based awards | ||||
Vesting period | 4 years | 4 years | ||
Vesting percentage | 25% | 25% | ||
Share-based awards with four-year vesting schedule and initial vesting at first anniversary | ||||
Share-based awards | ||||
Vesting percentage | 25% | 25% | ||
Share-based awards with four-year vesting schedule and initial vesting at second anniversary | ||||
Share-based awards | ||||
Vesting percentage | 50% | 50% | ||
Share-based awards with six-year vesting schedule | ||||
Share-based awards | ||||
Vesting period | 6 years | 6 years | ||
Share-based awards relating to Ant Group | ||||
Share-based awards | ||||
Share-based compensation expense | ¥ (11,585) | ¥ 17,315 | ¥ 1,261 |
Share-based awards- Expense by
Share-based awards- Expense by function (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Share-based awards | ||||
Share-based compensation expense | ¥ 23,971 | $ 3,782 | ¥ 50,120 | ¥ 31,742 |
Cost of revenue | ||||
Share-based awards | ||||
Share-based compensation expense | 5,725 | 11,224 | 7,322 | |
Product development expenses | ||||
Share-based awards | ||||
Share-based compensation expense | 11,035 | 21,474 | 13,654 | |
Sales and marketing expenses | ||||
Share-based awards | ||||
Share-based compensation expense | 3,050 | 5,323 | 3,830 | |
General and administrative expenses | ||||
Share-based awards | ||||
Share-based compensation expense | ¥ 4,161 | ¥ 12,099 | ¥ 6,936 |
Earnings per share_ADS (Details
Earnings per share/ADS (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||||
Jul. 30, 2019 | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 CNY (¥) ¥ / shares shares | Mar. 31, 2020 CNY (¥) ¥ / shares shares | Jul. 29, 2019 | |
Earnings per share/ADS | ||||||
Ratio of share subdivision | 8 | |||||
ADS ratio | 8 | 8 | 8 | 8 | 8 | 1 |
Numerator: | ||||||
Net income attributable to ordinary shareholders for computing net income per ordinary share - basic | ¥ 61,959 | $ 9,774 | ¥ 150,308 | ¥ 149,263 | ||
Dilution effect arising from share-based awards issued by subsidiaries and equity method investees | ¥ | (37) | (55) | (48) | |||
Net income attributable to ordinary shareholders for computing net income per ordinary share - diluted | ¥ | ¥ 61,922 | ¥ 150,253 | ¥ 149,215 | |||
Shares (denominator): | ||||||
Weighted average number of shares used in calculating net income per ordinary share - basic (million shares) | 21,558 | 21,558 | 21,619 | 21,017 | ||
Adjustments for dilutive RSUs and share options (million shares) | 229 | 229 | 363 | 329 | ||
Weighted average number of shares used in calculating net income per ordinary share - diluted (million shares) | 21,787 | 21,787 | 21,982 | 21,346 | ||
Net income per ordinary share - basic (RMB) | (per share) | ¥ 2.87 | $ 0.45 | ¥ 6.95 | ¥ 7.10 | ||
Net income per ordinary share - diluted (RMB) | (per share) | 2.84 | 0.45 | 6.84 | 6.99 | ||
Earnings per ADS | ||||||
Net income per ADS - basic (RMB) | (per share) | 22.99 | 3.63 | 55.63 | 56.82 | ||
Net income per ADS - diluted (RMB) | (per share) | ¥ 22.74 | $ 3.59 | ¥ 54.70 | ¥ 55.93 |
Restricted cash and escrow re_3
Restricted cash and escrow receivables (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Restricted cash and escrow receivables | |||
Restricted cash and escrow receivables | ¥ 37,455 | $ 5,908 | ¥ 35,207 |
Consumer protection fund deposits from merchants on the marketplaces | |||
Restricted cash and escrow receivables | |||
Restricted cash and escrow receivables | 35,268 | 33,426 | |
Others | |||
Restricted cash and escrow receivables | |||
Restricted cash and escrow receivables | ¥ 2,187 | ¥ 1,781 |
Equity securities and other i_3
Equity securities and other investments (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Equity securities and other investments and fair value disclosure | |||
Original cost | ¥ 230,848 | ¥ 212,906 | |
Cumulative net gains (losses) | 1,436 | 34,122 | |
Carrying value | 232,284 | 247,028 | |
Net unrealized gains (losses) recognized during the period for equity securities still held as of the end of the period | (25,587) | 45,139 | ¥ (15,264) |
Investments in privately held companies recorded using measurement alternative | 99,270 | 96,946 | |
Cumulative upward adjustments | 26,759 | 16,351 | |
Cumulative impairments and downward adjustments | 27,827 | 24,008 | |
Upward adjustments | 19,159 | 6,061 | |
Impairments and downward adjustments | 7,603 | 8,042 | |
Debt securities, Held-to-maturity, allowance for credit loss | 4,336 | 1,110 | |
Impairment losses on debt investments | 3,225 | 175 | 890 |
Listed equity securities | |||
Equity securities and other investments and fair value disclosure | |||
Original cost | 93,599 | 83,099 | |
Cumulative net gains (losses) | 9,661 | 41,742 | |
Carrying value | 103,260 | 124,841 | |
Investments in privately held companies | |||
Equity securities and other investments and fair value disclosure | |||
Original cost | 110,096 | 107,395 | |
Cumulative net gains (losses) | (859) | (6,708) | |
Carrying value | 109,237 | 100,687 | |
Debt investments | |||
Equity securities and other investments and fair value disclosure | |||
Original cost | 27,153 | 22,412 | |
Cumulative net gains (losses) | (7,366) | (912) | |
Carrying value | 19,787 | 21,500 | |
Convertible and exchangeable bonds | |||
Equity securities and other investments and fair value disclosure | |||
Debt investments | 8,339 | 11,343 | |
Aggregate fair value was (lower) higher than their aggregate unpaid principal balance | (3,248) | 90 | |
Unrealized gains (losses) recorded | ¥ (3,112) | ¥ 1,573 | ¥ (1,651) |
Fair value measurement (Details
Fair value measurement (Details) - Recurring basis - CNY (¥) ¥ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Assets | ||
Time deposits | ¥ 233,724 | ¥ 104,896 |
Wealth management products | 21,261 | 47,480 |
Marketable debt securities | 1,529 | |
Restricted cash and escrow receivables | 37,455 | 35,207 |
Listed equity securities | 103,260 | 124,841 |
Convertible and exchangeable bonds | 8,339 | 11,343 |
Option agreements | 826 | 2,604 |
Others | 12,890 | 4,709 |
Assets | 419,284 | 331,080 |
Liabilities | ||
Contingent consideration in relation to investments and acquisitions | 829 | 2,232 |
Interest rate swap contracts and others | 524 | 221 |
Liabilities | 1,353 | 2,453 |
Level 1 | ||
Assets | ||
Restricted cash and escrow receivables | 37,455 | 35,207 |
Listed equity securities | 103,260 | 124,841 |
Others | 2,196 | 686 |
Assets | 142,911 | 160,734 |
Level 2 | ||
Assets | ||
Time deposits | 233,724 | 104,896 |
Wealth management products | 21,261 | 47,480 |
Marketable debt securities | 1,529 | |
Convertible and exchangeable bonds | 1,067 | 1,698 |
Option agreements | 1 | 2,493 |
Others | 2,402 | 128 |
Assets | 259,984 | 156,695 |
Liabilities | ||
Interest rate swap contracts and others | 354 | 47 |
Liabilities | 354 | 47 |
Level 3 | ||
Assets | ||
Convertible and exchangeable bonds | 7,272 | 9,645 |
Option agreements | 825 | 111 |
Others | 8,292 | 3,895 |
Assets | 16,389 | 13,651 |
Liabilities | ||
Contingent consideration in relation to investments and acquisitions | 829 | 2,232 |
Interest rate swap contracts and others | 170 | 174 |
Liabilities | ¥ 999 | ¥ 2,406 |
Fair value measurement - Conver
Fair value measurement - Convertible and exchangeable bonds (Details) - Convertible and exchangeable bonds - Level 3 - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Convertible and exchangeable bonds accounted for under the fair value option | ||
Balance as of beginning | ¥ 9,645 | ¥ 3,995 |
Additions | 1,915 | 4,477 |
Net increase (decrease) in fair value | (2,734) | 1,306 |
Disposal | (1,225) | |
Conversion | (162) | |
Foreign currency translation adjustments | (167) | (133) |
Balance as of end | ¥ 7,272 | ¥ 9,645 |
Fair value measurement - Contin
Fair value measurement - Contingent consideration (Details) - Contingent consideration in relation to investments and acquisitions - Level 3 - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Contingent consideration in relation to investments and acquisitions | ||
Balance at beginning | ¥ 2,232 | ¥ 4,400 |
Additions | 376 | |
Net decrease in fair value | (19) | (48) |
Payment | (1,746) | (1,972) |
Foreign currency translation adjustments | (14) | (148) |
Balance at end | ¥ 829 | ¥ 2,232 |
Prepayments, receivables and _3
Prepayments, receivables and other assets (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Current: | |||
Accounts receivable, net of allowance | ¥ 32,813 | ¥ 27,076 | |
Inventories | 30,087 | 27,858 | |
VAT receivables, net of allowance | 23,779 | 17,363 | |
Prepaid cost of revenue, sales and marketing and other expenses | 17,902 | 18,532 | |
Amounts due from related companies | 12,188 | 10,374 | |
Advances to/receivables from customers, merchants and others | 11,205 | 7,163 | |
Deferred direct selling costs and cost of revenue | 3,915 | 3,303 | |
Interest receivables | 2,449 | 2,110 | |
Others | 11,657 | 10,929 | |
Total Current | 145,995 | $ 23,030 | 124,708 |
Non-current: | |||
Operating lease right-of-use assets | ¥ 78,053 | ¥ 72,040 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total Non-current | Total Non-current | Total Non-current |
Deferred tax assets (Note 7) | ¥ 14,475 | ¥ 11,041 | |
Film costs and prepayment for licensed copyrights and others | 12,425 | 9,349 | |
Prepayment for acquisition of property and equipment | 3,592 | 2,704 | |
Others | 4,602 | 3,298 | |
Total Non-current | 113,147 | $ 17,849 | 98,432 |
Ant Group | |||
Non-current: | |||
Dividends receivable | ¥ 3,945 | ¥ 0 |
Investments in equity method _3
Investments in equity method investees - General (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | |
Investments in equity method investees | |||
Balance as of beginning of period | ¥ 200,189 | ¥ 189,632 | |
Additions | 8,964 | 17,731 | |
Share of results, other comprehensive income and other reserves | 18,822 | 14,014 | |
Disposals | (1,237) | (1,386) | |
Distributions | (5,329) | (1,976) | |
Transfers | (5,159) | 9,122 | |
Impairment loss | (6,201) | (7,256) | |
Foreign currency translation adjustments | (725) | (1,448) | |
Balance as of end of period | ¥ 219,642 | $ 34,648 | ¥ 200,189 |
Investments in equity method _4
Investments in equity method investees - Additional details (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) |
Investments in equity investees | ||||
Carrying value of equity method investments | ¥ 219,642 | $ 34,648 | ¥ 200,189 | ¥ 189,632 |
Undistributed earnings | 46,149 | |||
Ant Group | ||||
Investments in equity investees | ||||
Dividends declared | 3,945 | ¥ 0 | ||
Equity method investments, publicly traded | ||||
Investments in equity investees | ||||
Carrying value of equity method investments | 42,595 | |||
Market value of equity method investments | 38,244 | |||
Undistributed earnings | ¥ 46,149 |
Investments in equity method _5
Investments in equity method investees - summarized financial information of equity method investments (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | |
Operating data: | |||||
Revenue | ¥ 853,062 | $ 134,567 | ¥ 717,289 | ¥ 509,711 | |
Cost of revenue | (539,450) | (85,096) | (421,205) | (282,367) | |
Income from operations | 69,638 | 10,985 | 89,678 | 91,430 | |
Net income | 47,079 | $ 7,427 | 143,284 | 140,350 | |
Balance sheet data: | |||||
Current assets | 638,535 | 643,360 | $ 100,726 | ||
Current liabilities | 383,784 | 377,358 | $ 60,540 | ||
Equity method investments | |||||
Operating data: | |||||
Revenue | 541,712 | 657,065 | 553,387 | ||
Cost of revenue | (371,076) | (474,123) | (443,198) | ||
Income from operations | 38,006 | 55,896 | 5,274 | ||
Net income | 113,970 | 95,224 | ¥ 30,578 | ||
Balance sheet data: | |||||
Current assets | 624,045 | 668,838 | |||
Non-current assets | 870,394 | 586,434 | |||
Current liabilities | 426,170 | 464,257 | |||
Non-current liabilities | 118,575 | 129,985 | |||
Noncontrolling interests and mezzanine equity | ¥ 16,059 | ¥ 22,997 |
Property and equipment, net (De
Property and equipment, net (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | |
Property and equipment, net | ||||
Gross | ¥ 265,562 | ¥ 220,994 | ||
Less: accumulated depreciation and impairment | (93,756) | (73,582) | ||
Net book value | 171,806 | 147,412 | $ 27,102 | |
Depreciation | ||||
Depreciation | 25,470 | 25,550 | ¥ 20,325 | |
Building, property improvements and other property | ||||
Property and equipment, net | ||||
Gross | 106,794 | 99,087 | ||
Computer equipment and software | ||||
Property and equipment, net | ||||
Gross | 94,539 | 84,802 | ||
Construction in progress | ||||
Property and equipment, net | ||||
Gross | 43,675 | 19,958 | ||
Furniture, office and transportation equipment and others | ||||
Property and equipment, net | ||||
Gross | ¥ 20,554 | ¥ 17,147 |
Intangible assets, net - Genera
Intangible assets, net - General (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Mar. 31, 2022 USD ($) | |
Intangible assets, net | ||||
Gross carrying amount | ¥ 116,929 | ¥ 131,217 | ||
Less: accumulated amortization and impairment | (57,698) | (60,384) | ||
Net book value | 59,231 | 70,833 | $ 9,343 | |
Intangible assets acquired | 1,000 | 20,750 | ¥ 5,626 | |
User base and customer relationships | ||||
Intangible assets, net | ||||
Gross carrying amount | 47,941 | 50,066 | ||
Trade names, trademarks and domain names | ||||
Intangible assets, net | ||||
Gross carrying amount | 39,080 | 39,440 | ||
Non-compete agreements | ||||
Intangible assets, net | ||||
Gross carrying amount | 14,436 | 19,445 | ||
Developed technology and patents | ||||
Intangible assets, net | ||||
Gross carrying amount | 7,088 | 12,855 | ||
Licenses copyrights and others | ||||
Intangible assets, net | ||||
Gross carrying amount | ¥ 8,384 | ¥ 9,411 |
Intangible assets, net - Amorti
Intangible assets, net - Amortization (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Intangible assets, net | |||
2023 | ¥ 12,660 | ||
2024 | 10,886 | ||
2025 | 7,249 | ||
2026 | 4,536 | ||
2027 | 4,629 | ||
Thereafter | 19,271 | ||
Net book value | ¥ 59,231 | $ 9,343 | ¥ 70,833 |
Goodwill (Details)
Goodwill (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Changes in goodwill | ||||
Goodwill at the beginning of period | ¥ 292,771 | ¥ 276,782 | ||
Additions | 3,283 | 17,579 | ||
Deconsolidation of a subsidiaries | (455) | |||
Measurement period adjustments | 240 | |||
Impairment | (25,141) | $ (3,966) | 0 | ¥ (576) |
Foreign currency translation adjustments | (1,332) | (1,375) | ||
Goodwill at the end of period | 269,581 | $ 42,525 | 292,771 | 276,782 |
Goodwill, Impaired, Accumulated Impairment Loss | ||||
Gross goodwill | 299,201 | 297,250 | ||
Accumulated impairment losses of goodwill | 29,620 | 4,479 | ||
Commerce | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 223,014 | 209,533 | ||
Additions | 2,506 | 14,605 | ||
Measurement period adjustments | 240 | |||
Foreign currency translation adjustments | (1,113) | (1,364) | ||
Allocation of goodwill | (224,407) | |||
Goodwill at the end of period | 223,014 | 209,533 | ||
China commerce | ||||
Changes in goodwill | ||||
Additions | 523 | |||
Allocation of goodwill | 174,424 | |||
Goodwill at the end of period | 174,947 | |||
International commerce | ||||
Changes in goodwill | ||||
Foreign currency translation adjustments | (169) | |||
Allocation of goodwill | 17,630 | |||
Goodwill at the end of period | 17,461 | |||
Local consumer services | ||||
Changes in goodwill | ||||
Allocation of goodwill | 20,292 | |||
Goodwill at the end of period | 20,292 | |||
Cainiao | ||||
Changes in goodwill | ||||
Allocation of goodwill | 16,346 | |||
Goodwill at the end of period | 16,346 | |||
Cloud | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 2,044 | 2,510 | ||
Additions | 254 | |||
Deconsolidation of a subsidiaries | (455) | |||
Foreign currency translation adjustments | (50) | (11) | ||
Allocation of goodwill | 815 | |||
Goodwill at the end of period | 3,063 | 2,044 | 2,510 | |
Digital media and entertainment | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 58,673 | 58,673 | ||
Impairment | (25,141) | |||
Goodwill at the end of period | 33,532 | 58,673 | 58,673 | |
Digital media and entertainment | One listed reporting unit | ||||
Changes in goodwill | ||||
Impairment | (14,754) | |||
Digital media and entertainment | One unlisted reporting unit | ||||
Changes in goodwill | ||||
Impairment | (10,387) | |||
Innovation initiatives and others | ||||
Changes in goodwill | ||||
Goodwill at the beginning of period | 9,040 | 6,066 | ||
Additions | 2,974 | |||
Allocation of goodwill | (5,100) | |||
Goodwill at the end of period | ¥ 3,940 | ¥ 9,040 | ¥ 6,066 |
Deferred revenue and customer_3
Deferred revenue and customer advances (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Deferred revenue and customer advances | |||
Deferred revenue | ¥ 32,085 | ¥ 30,508 | |
Customer advances | 38,388 | 35,139 | |
Total | 70,473 | 65,647 | |
Less: current portion | (66,983) | $ (10,566) | (62,489) |
Non-current portion | ¥ 3,490 | $ 551 | ¥ 3,158 |
Accrued expenses, accounts pa_3
Accrued expenses, accounts payable and other liabilities (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Current: | |||
Payables and accruals for cost of revenue and sales and marketing expenses | ¥ 107,205 | ¥ 94,368 | |
Other deposits and advances received | 55,200 | 53,794 | |
Accrued bonus and staff costs, including sales commission | 28,343 | 24,871 | |
Payable to merchants and third party marketing affiliates | 26,798 | 24,681 | |
Anti-monopoly Fine (Note 25(b)) | 18,228 | ||
Payables and accruals for purchases of property and equipment | 17,032 | 11,836 | |
Other taxes payable | 8,761 | 7,922 | |
Amounts due to related companies | 7,783 | 5,926 | |
Contingent and deferred consideration in relation to investments and acquisitions | 2,045 | 4,146 | |
Operating lease liabilities (Note 6) | ¥ 4,994 | ¥ 4,069 | |
Operating lease liabilities, Statement of Financial Position | Current accrued expenses, accounts payable and other liabilities | Current accrued expenses, accounts payable and other liabilities | Current accrued expenses, accounts payable and other liabilities |
Escrow money payable | ¥ 203 | ¥ 211 | |
Others | 13,096 | 11,088 | |
Current accrued expenses, accounts payable and other liabilities | 271,460 | $ 42,822 | 261,140 |
Non-current: | |||
Operating lease liabilities (Note 6) | ¥ 30,259 | ¥ 28,217 | |
Operating lease liabilities, Statement of Financial Position | Other liabilities | Other liabilities | Other liabilities |
Contingent and deferred consideration in relation to investments and acquisitions | ¥ 990 | ¥ 1,049 | |
Others | 628 | 1,488 | |
Other liabilities | ¥ 31,877 | $ 5,028 | ¥ 30,754 |
Bank borrowings- General (Detai
Bank borrowings- General (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 USD ($) | Apr. 30, 2017 USD ($) | Mar. 31, 2022 CNY (¥) item | Mar. 31, 2021 CNY (¥) item | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Bank borrowings | ||||||
Current bank borrowings | ¥ 8,841 | ¥ 3,606 | $ 1,395 | |||
Non-current bank borrowings | 38,244 | 38,335 | 6,033 | |||
Bank borrowings | ||||||
Bank borrowings | ||||||
Current bank borrowings | 8,841 | |||||
Non-current bank borrowings | 38,244 | 38,335 | ||||
Collateral amount pledged | 19,617 | 18,365 | ||||
Short-term other borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Current bank borrowings | 8,841 | 3,606 | ||||
US$4.0 billion syndicated loan denominated in US$ | Bank loans | ||||||
Bank borrowings | ||||||
Non-current bank borrowings | ¥ 25,331 | ¥ 26,153 | ||||
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 | 0.85% | 0.85% | ||||
Long-term other borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Non-current bank borrowings | ¥ 12,913 | ¥ 12,182 | ||||
Long-term borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Weighted average interest rate for the year | 4.10% | 4.30% | ||||
Short-term borrowings | Bank loans | ||||||
Bank borrowings | ||||||
Weighted average interest rate for the year | 2.80% | 2.90% | ||||
Short-term borrowings | Bank loans | Minimum | ||||||
Bank borrowings | ||||||
Interest rates | 0.60% | 0.60% | 0.60% | 0.60% | ||
Short-term borrowings | Bank loans | Maximum | ||||||
Bank borrowings | ||||||
Interest rates | 12.50% | 12.50% | 12.50% | 12.50% | ||
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% | |||||
USD6.5 billion revolving credit facility agreement | Bank facility | ||||||
Bank borrowings | ||||||
Amount of loan facility | $ | $ 6,500 | |||||
USD6.5 billion revolving credit facility agreement | Bank facility | LIBOR | ||||||
Bank borrowings | ||||||
Spread over variable rate | 0.80% |
Bank borrowings- Maturity sched
Bank borrowings- Maturity schedule (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Within 1 year | ¥ 8,841 | $ 1,395 | ¥ 3,606 |
Bank borrowings | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Within 1 year | 8,841 | ||
Between 1 to 2 years | 732 | ||
Between 2 to 3 years | 27,960 | ||
Between 3 to 4 years | 2,791 | ||
Between 4 to 5 years | 1,907 | ||
Beyond 5 years | 4,921 | ||
Total borrowings | ¥ 47,152 |
Unsecured senior notes- General
Unsecured senior notes- General (Details) ¥ in Millions, $ in Millions | 1 Months Ended | |||||||||
Nov. 30, 2021 USD ($) | Nov. 30, 2019 USD ($) | Nov. 30, 2017 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) | Feb. 28, 2021 USD ($) | Dec. 31, 2017 USD ($) | Nov. 30, 2014 USD ($) | |
Unsecured senior notes | ||||||||||
Unsecured senior notes | ||||||||||
Carrying value | ¥ 94,259 | ¥ 107,212 | ||||||||
Unamortized discount and debt issuance costs | 668 | 756 | ||||||||
Total principal amounts of unsecured senior notes | 94,927 | 107,968 | ||||||||
Less: current portion of principal amounts of unsecured senior notes | (9,845) | |||||||||
Non-current portion of principal amounts of unsecured senior notes | ¥ 94,927 | ¥ 98,123 | ||||||||
2014 Senior Notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 8,000 | |||||||||
Repayment amount | $ | $ 1,500 | $ 2,250 | $ 1,300 | |||||||
2017 Senior Notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 7,000 | |||||||||
2021 Senior Notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 5,000 | |||||||||
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 | ¥ 9,831 | |||||||||
Effective interest rate | 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 | ¥ 4,439 | ¥ 4,584 | ||||||||
Effective interest rate | 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 | ¥ 14,256 | ¥ 14,724 | ||||||||
Effective interest rate | 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 | ¥ 16,091 | ¥ 16,616 | ||||||||
Effective interest rate | 3.52% | 3.52% | ||||||||
US$1,500 million 2.125% notes due 2031 | Unsecured senior notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 1,500 | $ 1,500 | ||||||||
Fixed interest rate | 2.125% | 2.125% | 2.125% | 2.125% | ||||||
Carrying value | ¥ 9,469 | ¥ 9,782 | ||||||||
Effective interest rate | 2.20% | 2.20% | ||||||||
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 | ¥ 4,400 | ¥ 4,545 | ||||||||
Effective interest rate | 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% | 4% | 4% | 4% | ||||||
Carrying value | ¥ 6,300 | ¥ 6,510 | ||||||||
Effective interest rate | 4.06% | 4.06% | ||||||||
US$1,000 million 2.700% notes due 2041 | Unsecured senior notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 1,000 | $ 1,000 | ||||||||
Fixed interest rate | 2.70% | 2.70% | 2.70% | 2.70% | ||||||
Carrying value | ¥ 6,256 | ¥ 6,463 | ||||||||
Effective interest rate | 2.80% | 2.80% | ||||||||
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 | ¥ 11,014 | ¥ 11,382 | ||||||||
Effective interest rate | 4.25% | 4.25% | ||||||||
US$1,500 million 3.150% notes due 2051 | Unsecured senior notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 1,500 | $ 1,500 | ||||||||
Fixed interest rate | 3.15% | 3.15% | 3.15% | 3.15% | ||||||
Carrying value | ¥ 9,448 | ¥ 9,764 | ||||||||
Effective interest rate | 3.19% | 3.19% | ||||||||
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 | ¥ 6,290 | ¥ 6,501 | ||||||||
Effective interest rate | 4.44% | 4.44% | ||||||||
US$1,000 million 3.250% notes due 2061 | Unsecured senior notes | ||||||||||
Unsecured senior notes | ||||||||||
Principal amount | $ | $ 1,000 | $ 1,000 | ||||||||
Fixed interest rate | 3.25% | 3.25% | 3.25% | 3.25% | ||||||
Carrying value | ¥ 6,296 | ¥ 6,510 | ||||||||
Effective interest rate | 3.28% | 3.28% |
Unsecured senior notes- Maturit
Unsecured senior notes- Maturity schedule (Details) - Unsecured senior notes ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2021 USD ($) |
Future principal payments | ||||
Between 1 to 2 years | ¥ 4,445 | |||
Between 2 to 3 years | 14,287 | |||
Thereafter | 76,195 | |||
Total principal amount | 94,927 | ¥ 107,968 | ||
Level 2 | ||||
Unsecured senior notes | ||||
Fair value | ¥ 89,319 | $ 14,067 | ¥ 111,419 | $ 16,976 |
Related party transactions- Tra
Related party transactions- Transactions with related parties (Details) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | 48 Months Ended | |||||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2021 | Mar. 31, 2022 USD ($) | Mar. 31, 2022 HKD ($) | Sep. 30, 2019 | |
Related party transactions | |||||||||
Amount of cash and cash equivalents | ¥ 189,898 | ¥ 321,262 | $ 29,956 | ||||||
Ant Group | |||||||||
Related party transactions | |||||||||
Equity interest (as a percent) | 33% | 33% | |||||||
Cash held in accounts managed by Alipay | |||||||||
Related party transactions | |||||||||
Amount of cash and cash equivalents | 8,987 | 6,831 | |||||||
Ant Group and its affiliates | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 9,767 | 8,505 | ¥ 9,960 | ||||||
Costs and expenses incurred | 15,366 | 15,107 | 11,466 | ||||||
Ant Group and its affiliates | Annual fee for SME loan business | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 708 | 954 | 954 | ||||||
SME annual fee term (in years) | 7 years | ||||||||
Annual fee as a percentage of the average daily balance (as a percent) | 2.50% | ||||||||
Ant Group and its affiliates | Administrative and support services | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 1,165 | 1,208 | 1,224 | ||||||
Ant Group and its affiliates | Cloud services revenue | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 5,536 | 3,916 | 1,872 | ||||||
Ant Group and its affiliates | Marketplace software technology services fee and other amounts earned | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 2,358 | 2,427 | 2,075 | ||||||
Ant Group and its affiliates | Other services | |||||||||
Related party transactions | |||||||||
Costs and expenses incurred | 3,542 | 4,509 | 2,743 | ||||||
Alipay | Payment processing and escrow services fee | |||||||||
Related party transactions | |||||||||
Costs and expenses incurred | ¥ 11,824 | ¥ 10,598 | 8,723 | ||||||
Ant Group | Profit Share Payments | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | ¥ 3,835 | ||||||||
Additional fee, as a percentage of pre-tax income | 37.50% | ||||||||
Hong Kong Cingleot Investment Management Limited | |||||||||
Related party transactions | |||||||||
Loan facility guaranteed | $ | $ 7,700 | ||||||||
Amount drawn down | $ | $ 3,413 | ||||||||
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% | 1% | 1% | ||||||
Certain investees of the Company | Commercial arrangements related to cloud services | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | ¥ 1,826 | ¥ 2,411 | ¥ 1,548 | ||||||
Certain investees of the Company | Commercial arrangements related to marketing services | |||||||||
Related party transactions | |||||||||
Costs and expenses incurred | 976 | 1,394 | 1,146 | ||||||
Certain investees of the Company | Logistics services | |||||||||
Related party transactions | |||||||||
Amounts earned by the Company | 1,728 | 1,732 | 1,400 | ||||||
Costs and expenses incurred | 13,120 | 11,068 | ¥ 8,265 | ||||||
Certain investees of the Company | Loans | |||||||||
Related party transactions | |||||||||
Amount of outstanding loans | ¥ 3,000 | ¥ 2,824 | |||||||
Certain investees of the Company | Loans | Maximum | |||||||||
Related party transactions | |||||||||
Remaining terms | 4 years | 5 years | |||||||
Interest rate (as a percent) | 10% | 10% |
Restricted net assets (Details)
Restricted net assets (Details) ¥ in Millions | 12 Months Ended |
Mar. 31, 2022 CNY (¥) | |
Restricted net assets | |
Percentage of net income from subsidiaries and consolidated VIEs incorporated in the PRC to be appropriated to the statutory reserve | 10% |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50% |
Restricted net assets | ¥ 165,590 |
Commitments- Capital commitment
Commitments- Capital commitments (Details) - Capital commitments - CNY (¥) ¥ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Capital commitments | ||
No later than 1 year | ¥ 25,438 | ¥ 23,424 |
Later than 1 year and no later than 5 years | 13,781 | 13,768 |
More than 5 years | 53 | 403 |
Total | ¥ 39,272 | ¥ 37,595 |
Commitments- Investment commitm
Commitments- Investment commitments (Details) - CNY (¥) ¥ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Business combinations and equity investments under various arrangements | Maximum | ||
Investment commitments | ||
Amount committed | ¥ 12,456 | ¥ 19,466 |
Commitments- Other commitments
Commitments- Other commitments (Details) ¥ in Millions, $ in Millions | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Jan. 31, 2017 USD ($) |
Co-location, bandwidth fees, licensed copyrights and marketing expenses | |||
Other commitments | |||
No later than 1 year | ¥ 37,229 | ¥ 35,109 | |
Later than 1 year and no later than 5 years | 17,347 | 17,266 | |
More than 5 years | 2,446 | 2,849 | |
Total | ¥ 57,022 | ¥ 55,224 | |
Framework agreement with the International Olympic Committee and the United States Olympic Committee | Minimum | |||
Other commitments | |||
Total | $ | $ 815 |
Risks and contingencies (Detail
Risks and contingencies (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Risks and contingencies | ||||
Anti-monopoly fine | ¥ 18,228,000,000 | |||
Number of consecutive years the Company is required to file a self-assessment and compliance report to the SAMR | 3 years | |||
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, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Revenue | ¥ 853,062 | $ 134,567 | ¥ 717,289 | ¥ 509,711 |
Income (Loss) from operations | 69,638 | 10,985 | 89,678 | 91,430 |
Add: share-based compensation expense | 23,971 | 3,782 | 50,120 | 31,742 |
Add: amortization and impairment of intangible assets | 11,647 | 1,837 | 12,427 | 13,388 |
Add: impairment of goodwill | 25,141 | $ 3,966 | 0 | 576 |
Add: Anti-monopoly Fine | 18,228 | |||
China commerce | ||||
Revenue | 592,705 | 501,683 | 351,977 | |
International commerce | ||||
Revenue | 61,078 | 48,851 | 33,917 | |
Local consumer services | ||||
Revenue | 43,491 | 35,442 | 29,660 | |
Cainiao | ||||
Revenue | 46,107 | 37,258 | 22,233 | |
Cloud | ||||
Revenue | 74,568 | 60,558 | 40,301 | |
Digital media and entertainment | ||||
Revenue | 32,272 | 31,186 | 29,094 | |
Add: impairment of goodwill | 25,141 | |||
Innovation initiatives and others | ||||
Revenue | 2,841 | 2,311 | 2,529 | |
Total segments | ||||
Revenue | 853,062 | 717,289 | 509,711 | |
Income (Loss) from operations | 105,549 | 124,108 | 103,727 | |
Add: share-based compensation expense | 22,255 | 41,660 | 27,498 | |
Add: amortization and impairment of intangible assets | 11,406 | 12,203 | 13,230 | |
Adjusted EBITA | 139,210 | 177,971 | 144,455 | |
Total segments | China commerce | ||||
Revenue | 592,705 | 501,683 | 351,977 | |
Income (Loss) from operations | 172,219 | 197,135 | 174,561 | |
Add: share-based compensation expense | 7,078 | 14,505 | 9,409 | |
Add: amortization and impairment of intangible assets | 2,817 | 1,922 | 845 | |
Adjusted EBITA | ¥ 182,114 | ¥ 213,562 | ¥ 184,815 | |
Adjusted EBITA margin | 31% | 31% | 43% | 53% |
Total segments | International commerce | ||||
Revenue | ¥ 61,078 | ¥ 48,851 | ¥ 33,917 | |
Income (Loss) from operations | (10,655) | (9,361) | (7,615) | |
Add: share-based compensation expense | 1,569 | 4,223 | 2,996 | |
Add: amortization and impairment of intangible assets | 95 | 206 | 279 | |
Adjusted EBITA | ¥ (8,991) | ¥ (4,932) | ¥ (4,340) | |
Adjusted EBITA margin | (15.00%) | (15.00%) | (10.00%) | (13.00%) |
Total segments | Local consumer services | ||||
Revenue | ¥ 43,491 | ¥ 35,442 | ¥ 29,660 | |
Income (Loss) from operations | (30,485) | (29,100) | (26,289) | |
Add: share-based compensation expense | 2,556 | 4,972 | 3,027 | |
Add: amortization and impairment of intangible assets | 6,154 | 7,852 | 8,245 | |
Adjusted EBITA | ¥ (21,775) | ¥ (16,276) | ¥ (15,017) | |
Adjusted EBITA margin | (50.00%) | (50.00%) | (46.00%) | (51.00%) |
Total segments | Cainiao | ||||
Revenue | ¥ 46,107 | ¥ 37,258 | ¥ 22,233 | |
Income (Loss) from operations | (3,920) | (3,964) | (5,218) | |
Add: share-based compensation expense | 1,396 | 1,956 | 961 | |
Add: amortization and impairment of intangible assets | 1,059 | 1,195 | 2,373 | |
Adjusted EBITA | ¥ (1,465) | ¥ (813) | ¥ (1,884) | |
Adjusted EBITA margin | (3.00%) | (3.00%) | (2.00%) | (8.00%) |
Total segments | Cloud | ||||
Revenue | ¥ 74,568 | ¥ 60,558 | ¥ 40,301 | |
Income (Loss) from operations | (5,167) | (12,479) | (9,662) | |
Add: share-based compensation expense | 6,297 | 10,205 | 6,231 | |
Add: amortization and impairment of intangible assets | 16 | 23 | 25 | |
Adjusted EBITA | ¥ 1,146 | ¥ (2,251) | ¥ (3,406) | |
Adjusted EBITA margin | 2% | 2% | (4.00%) | (8.00%) |
Total segments | Digital media and entertainment | ||||
Revenue | ¥ 32,272 | ¥ 31,186 | ¥ 29,094 | |
Income (Loss) from operations | (7,019) | (10,321) | (15,389) | |
Add: share-based compensation expense | 1,520 | 3,281 | 2,566 | |
Add: amortization and impairment of intangible assets | 809 | 922 | 1,377 | |
Adjusted EBITA | ¥ (4,690) | ¥ (6,118) | ¥ (11,446) | |
Adjusted EBITA margin | (15.00%) | (15.00%) | (20.00%) | (39.00%) |
Total segments | Innovation initiatives and others | ||||
Revenue | ¥ 2,841 | ¥ 2,311 | ¥ 2,529 | |
Income (Loss) from operations | (9,424) | (7,802) | (6,661) | |
Add: share-based compensation expense | 1,839 | 2,518 | 2,308 | |
Add: amortization and impairment of intangible assets | 456 | 83 | 86 | |
Adjusted EBITA | ¥ (7,129) | ¥ (5,201) | ¥ (4,267) | |
Adjusted EBITA margin | (251.00%) | (251.00%) | (225.00%) | (169.00%) |
Unallocated | ||||
Income (Loss) from operations | ¥ (35,911) | ¥ (34,430) | ¥ (12,297) | |
Add: share-based compensation expense | 1,716 | 8,460 | 4,244 | |
Add: amortization and impairment of intangible assets | 241 | 224 | 158 | |
Add: impairment of goodwill | 25,141 | 576 | ||
Add: Anti-monopoly Fine | 18,228 | |||
Adjusted EBITA | ¥ (8,813) | ¥ (7,518) | ¥ (7,319) |
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, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Share-based compensation expense | ¥ (23,971) | $ (3,782) | ¥ (50,120) | ¥ (31,742) |
Amortization and impairment of intangible assets | (11,647) | (1,837) | (12,427) | (13,388) |
Impairment of goodwill | (25,141) | (3,966) | 0 | (576) |
Anti-monopoly Fine | (18,228) | |||
Income (Loss) from operations | 69,638 | 10,985 | 89,678 | 91,430 |
Interest and investment income, net | (15,702) | (2,477) | 72,794 | 72,956 |
Interest expense | (4,909) | (774) | (4,476) | (5,180) |
Other income, net | 10,523 | 1,660 | 7,582 | 7,439 |
Income tax expenses | (26,815) | (4,230) | (29,278) | (20,562) |
Share of results of equity method investees | 14,344 | 2,263 | 6,984 | (5,733) |
Net income | 47,079 | $ 7,427 | 143,284 | 140,350 |
Total segments | ||||
Adjusted EBITA | 139,210 | 177,971 | 144,455 | |
Share-based compensation expense | (22,255) | (41,660) | (27,498) | |
Amortization and impairment of intangible assets | (11,406) | (12,203) | (13,230) | |
Income (Loss) from operations | 105,549 | 124,108 | 103,727 | |
Unallocated | ||||
Adjusted EBITA | (8,813) | (7,518) | (7,319) | |
Share-based compensation expense | (1,716) | (8,460) | (4,244) | |
Amortization and impairment of intangible assets | (241) | (224) | (158) | |
Impairment of goodwill | (25,141) | (576) | ||
Anti-monopoly Fine | (18,228) | |||
Income (Loss) from operations | ¥ (35,911) | ¥ (34,430) | ¥ (12,297) |
Segment information - Consolida
Segment information - Consolidated depreciation and impairment of property and equipment and operating lease cost relating to land use rights by segments and others (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | ¥ 27,808 | $ 4,386 | ¥ 26,389 | ¥ 20,523 |
Total segments | China commerce | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 13,043 | 9,790 | 6,605 | |
Total segments | International commerce | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 1,473 | 1,180 | 725 | |
Total segments | Local consumer services | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 1,237 | 1,161 | 766 | |
Total segments | Cainiao | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 992 | 872 | 694 | |
Total segments | Cloud | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 7,613 | 11,161 | 9,257 | |
Total segments | Digital media and entertainment | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | 956 | 1,109 | 1,359 | |
Total segments | Innovation initiatives and others and unallocated | ||||
Consolidated depreciation and impairment of property and equipment, and operating lease cost relating to land use rights | ¥ 2,494 | ¥ 1,116 | ¥ 1,117 |