Alibaba HK SDR 5to1 (SGX: HBBD) - Not Rated

3QFY2026 revenue rose 2% year-on-year

Reported revenue rose just 2 percent year-on-year (YoY) to RMB 284.8 billion, while adjusted EBITA fell 57 percent and non-GAAP net income declined 67 percent.

First, reported revenue was dragged down by the disposal of Sun Art and Intime, two physical retail businesses. Excluding these, underlying revenue growth was closer to 9 percent YoY, which gives a better picture of the momentum in Alibaba’s core digital businesses.

Second, the weaker profitability was largely intentional.

Management is investing aggressively in two areas that are strategically important but currently dilutive to margins. The first is quick commerce, where Alibaba is still spending heavily on subsidies to build scale and compete more effectively with Meituan. The second is AI and cloud infrastructure, where capital spending is being brought forward ahead of