Alibaba's reform is advancing efficiently: multiple businesses launch financing and listing plans to create development opportunities for the future

On the evening of May 18, Alibaba Group’s Q4 and full-year financial report for fiscal year 2023 announced that the reform plan launched at the end of March is being rapidly and efficiently promoted: the Cloud Intelligence Group will be completely separated from the Alibaba Group and go public independently, Cainiao and Hema will launch their listing plans, Alibaba International Digital Business Group will initiate external financing, and the six major business groups will formally establish boards of directors.

Alibaba said that this is a proactive reform made by Alibaba for future development and has received full support from the group's board of directors. Since its establishment 24 years ago, Alibaba has been constantly innovating and iterating in self-transformation, actively leading the transformation, creating and stimulating more development opportunities for the future. Activating the body through reform and allowing more businesses to be equipped and stand out is in line with the spirit of change in Alibaba's development history.

On March 28, Alibaba Group Chairman and CEO Zhang Yong issued a letter to all employees, announcing the launch of the 1+6+N organizational reform, establishing six business groups and multiple business companies, including Cloud Intelligence Group, Taotian Group, Local Life Group, Alibaba International Digital Business Group, Cainiao Group, and Greater Entertainment Group. Each business group and business company will set up a board of directors and implement the CEO responsibility system under the leadership of the board of directors. Alibaba Group will move towards a holding company management model.

With the rapid implementation of a series of substantial progress, the development paths of various business groups and business companies have become clearer. Alibaba's financial report shows that Alibaba Cloud Intelligence Group will be completely separated from Alibaba Group and enter the market more flexibly.

Over the past decade, Alibaba Cloud has developed its own core technologies and grown together with the surging digital era, bringing about a huge improvement in social efficiency. According to Gartner's 2022 Global Cloud Computing IaaS Market Ranking, Alibaba Cloud ranks third in the world and first in the Asia-Pacific market. Alibaba Cloud operates 86 availability zones in 28 geographic regions around the world, serving more than 4 million customers worldwide.

Market changes never stop, and new generation technology waves continue to emerge. In the next ten years, Alibaba Cloud will fully serve the intelligent process of the whole society. Alibaba said that Alibaba Cloud business and consumer business are significantly different in terms of customer characteristics, business model, development stage, market environment, etc. The more independent Alibaba Cloud is, the faster it will develop. Alibaba Cloud's complete spin-off and independent listing will help better stimulate innovation and go to the market. This is leading and original among global technology Internet companies.

The financial report also shows that the Alibaba Group's board of directors approved Alibaba International Digital Business Group to start exploring external financing to help further develop and grow its business. With the simultaneous advancement of consumer service capabilities and supply chain capabilities, overseas business has gradually grown into one of the new engines driving Alibaba's steady growth.

At the same time, the Alibaba Group's board of directors approved the launch of exploration of Cainiao Group's IPO, which is expected to be completed in the next 12 to 18 months. This year coincides with the 10th anniversary of Cainiao's establishment. After ten years of development, Cainiao has become a leading digital logistics company, forming five major business segments: domestic logistics, international logistics, urban and rural terminals, logistics technology, and logistics real estate. It continues to invest in global logistics infrastructure and supply chain capacity building, and the time is ripe for market testing.

In addition, the Alibaba Group's board of directors also approved the launch of the listing process for Hema, which is expected to be completed in the next 6 to 12 months. Launched in 2015, Hema, as a benchmark for Alibaba's exploration of new retail, has formed a clear business model and a relatively clear profit prospect.

The financial report also shows that the Alibaba Group Board of Directors has approved and appointed six business group boards. The business group directors are senior business leaders of Alibaba, who use their rich industry and market experience to strongly support the rapid and healthy development of each business group.

Alibaba emphasized that continuous self-transformation and innovation is the best way for a company to face the future. By changing production relations, making the organization more agile, shortening the decision-making chain, and making the response faster, further releasing productivity and stimulating innovation is the only way to achieve sustained high-quality growth. At the same time, it also hopes to encourage all sectors of society to participate more actively and share the vigorous development of the digital economy through a series of substantial measures under self-transformation, create more opportunities, and face the future together.

Alibaba