The evening of October 8, Alibaba's Jack Ma, Chairman of the Board of Directors with "Zen" computer input, wrote an article on open letter to shareholders, described Ali's future strategy, platform, capital markets and competitors, and concerns of the outside world.
Surging News (www.thepaper.CN) informed that later in the day, Alibaba will be published after the first complete annual report.
On September 19, 2014, the company listed on the New York Stock Exchange, and amount to $ 25 billion in financing on the history of the world's largest IPO (initial public offering) record.
Last year, overseas investors in Alibaba questioned frequently. Now the price of the stock had fallen below $ 68. As United States October 7, Ali shares at US $ 66.28. November 10, 2014 and if Ali's record $ 119.15 compared to historical prices, price has fallen by more than 40%. That decline, far beyond a decline in Dow Jones industrial average or poor's index over the same period.
"A lot of people confuse us with other e-commerce companies, and therefore with the GMV (total volume) growth rate as a criterion to our model. In fact, narrower today, e-commerce is only part of the Alibaba group, we strive for is to create an open, transparent and collaborative business infrastructure platform. "He wrote in the letter.
Ma said that as of the end of June 2015, has 34,000 employees of the Alibaba group, which specializes in "China's retail market" with the GMV (transactions) the number of employees less than 10,000 people, some employees supporting nearly 3 trillion yuan of turnover, 9% per cent of total retail spending in China. In addition to e-commerce, about half of its employees and affiliates Ant gold suit and Rookie, engaged in the great strategic significance of the new business, including logistics, Internet banking, data cloud, mobile Internet, advertising platform and other business, and after ten years of health based on data and digital entertainment business.
"Simple enterprises engaged in electronic commerce in the market today as the company's rival, was comparing apples and Apple trees, it is inappropriate for both sides. "Mr Ma said.
Ma also talked about China's economic slowdown's impact on Ali. Ma said the slowing economy on China's future prospects are far more advantages than disadvantages, China no longer needs the increase in the number of economic development, but long on quality. He does not agree with the view of the economic downturn will lead to consumption, because the Chinese philosophy of life, unlike in the West, basically the total saving, "the economy is bad may not have no money to spend", and because of e-commerce convenience and affordable, in times of economic downturn, "people are more willing to spend money on the Internet".
The same day, Alibaba Group CEO (Chief Executive Officer) Zhang Yong also said in an open letter to shareholders, Ali, all investments are in strict accordance with the implementation of the strategic deployment, "annual results, quarterly and even monthly performance of mergers and acquisitions easier to understand, but we can't be investments to short-term earnings growth. And invest for the future strategic decisions, is often different views. Layout of our investments and to vote before and after the investment, investment in management, there are strict procedures and controls. "
Following is the full text of the open letter to shareholders of the MA:
To company shareholders are:
Alibaba listing in New York just after one year, please allow me to take this letter, on behalf of the company, and I personally, have always believed and supported the company's customers, employees, investors, and partners said.
Last year, the global stock market volatility. We observed and listened to the market on our views and suggestions, but we know better the company's present and future path. Alibaba today than ever, to be healthy, strong and calm. We insist on our own development strategy has made a lot of progress.
Launch day as I said, we in the United States stock market collection of $ 25 billion, is not money, but people's trust in us. Is because this trust, we has responsibility and shareholders and public maximum degree of keep transparent, and close, and Frank of communication--especially due to Alibaba currently provides of international service also just began, in overseas of shareholders and care we of public cannot directly using we service Yu China customer of products, led to is most people from outside see Alibaba, has "mirrors", and "across sea see people" of sense, is not clear Alibaba group of real positioning.
Here, I want to share some of our shareholders think.
, Alibaba's strategy is to create the future of business infrastructure, e-Commerce Alibaba's overall strategy the first step
Many people confuse us and other electronics retail company, and therefore our GMV growth rate as a criterion to our model. In fact, narrower today, e-commerce is only part of the Alibaba group, we strive for is to create an open, transparent and collaborative business infrastructure platform.
By the end of June 2015, Alibaba Group employs a total of 34,000. , Which specializes in "China's retail market" associated with GMV employees number fewer than 10,000 people. We were only about 10,000 people completed the nearly 3 trillion yuan, GMV's platform, platform for which GMV to nearly 300 million yuan per capita. Despite such efficiencies, we still think that we also need to improve their technology and products, absolutely no human sea tactics, relying instead on innovative technologies to win the market. The next few years, we have the opportunity and ability to create global-scale enterprise in the most efficient, while creating eco-jobs most business organizations.
Remove above 10,000 and B2B business team and back up the supply chain, our team of nearly half of the total number of employees engaged in the great strategic significance of the new business. We believe that only by investing in the future, only the long term strategy, the company can have a real future.
We are aware of only rely on Internet technologies and data, only to create a truly innovative business infrastructure, able to fully help SMEs to do business. Because of weak business base in China, giving Alibaba a unique opportunity in the world--to build infrastructure for future business in China (not the e-commerce infrastructure). About half of the employees of our group and associated companies Ant gold clothing, and the rookie for several years in an effort to engage in logistics, Internet banking, data cloud, mobile Internet, advertising platform and other business, and after ten years of health based on data and digital entertainment business, which we call the "double h" industry: Health and Happiness (health and entertainment).
Today, invested rookie logistics system has been helping about 10 billion packages each year, our active financial already services nearly 400 million Internet users, our business in the world of cloud computing and maintain the annual growth rate of more than 100%, our mobile Internet products, including search, maps, browser also provides the indispensable basis for Chinese users services. We will provide tens of millions of Chinese enterprises in the future e-commerce, finance, logistics, cloud computing, big data, marketing services, cross-border trade in services.
Our layout of the future is based on a unique long-term strategic thinking in advance. Although these platform businesses is far from our goal, and today gave us a huge income, but the prospect is enough to make people excited for the future, we will stick to.
We firmly believe that the age of Empire-development is over, we should stick with the ecological development of the platform. Only ecosystem of enterprises in development, we are a community of interests, and to sustainable development.
Today, we are part of the strategic operations have begun. A case study of logistics, company fiscal year 2015 more than 24 million packages a day, our partner receiving Daily Express Logistics employees engaged in shipping and transportation services, we expect that after ten years, China will have 10 million people engaged in express logistics services. It is up to organizations of social power to do things, rather than any one company alone can do good things. We believe that the next three years thanks to rookie logistics platform of unique services, express logistics services will be changing, logistics will become more standardized, normalized, will allow customers more attentive service. Logistics services company will be any standard, rather than the core competitiveness. Therefore, helping all the courier company as soon as possible to achieve a high standard of service is high standard ability of rookie mission.
Second, the relationship between China's economic development and the company's
Recently, signs of a slowdown in China for public concern and even panic. It fully demonstrates that China's economy is thoroughly integrated into the world economy and also has a considerable influence. But I have to be realistic, said continued speeding economic growth that is not reality, it is impossible to continue, nor China should pursue "performance".
Speeding economic growth at the cost of ecological environment destruction. Government transformation and upgrading of the signal again and again, 08 pressures of the financial crisis, weary of investment and exports, and enjoying rapid growth under the inertia of thinking, China's economy has reached the era of non-upgrade is not available. GDP of yesterday simply because of the extensive growth model is unsustainable economic development. In fact, if still yesterday seeking unreasonable speed growth, then China pay the higher price.
I firmly believe that the slowing economy on China's future prospects are far more advantages than disadvantages. China no longer needs the increase in the number of economic development, but long on quality. China even with the 5%GDP of the world's second-largest economy growth rate has been 1 time more than double the growth rate of developed countries.
The past 30 years, China's economy has experienced emancipation of dividend, dividends of open policy, but we don't pay attention to stimulate productivity--the most important force in human creativity and innovation. GDP growth is manufacturing, and growth depends on the quality of life is creative. I believe China can play in this room is really too much.
Future of Chinese economy from exports to imports from exporting economy into its domestic economy, will run from the infrastructure investments into infrastructure. China will use high-tech, new models and marketing to address sustainable development issues. All in all, China's economic potential is enormous. Despite the difficulty will not be small, and the miracle of China's economic future certainly lies in the productivity release data and Internet technology to bring domestic demand to stimulate leap-forward development of opportunities.
Slowdown on Alibaba will it affect you?
Alibaba trading volumes in domestic retail market by the end of March 2015 fiscal year has reached 2.4437 trillion trillion yuan, 9% per cent of total retail spending in China. We expect that within a decade China consumer 50% above will be carried out via the Internet, so the e-commerce market is huge. Based on this, 80% per cent of enterprises used the Internet, China's e-commerce platform, logistics, financial services, cloud computing, as well as cross-border services. Alibaba today's investments are making this possible. Alibaba's business and undoubtedly closely linked with China's economy, but we think Alibaba's services will be in the future a business after water, electricity and land the fourth essential business infrastructure resources.
As the economic downturn will bring the consumer downturn, I do not agree with this view. Think the downturn in China, Chinese people do not want to spend this theory reflects not understanding of China. The Chinese philosophy of life, unlike in the West, Western consumers in developed countries are good at spending money in the future, and the Chinese people always save, savings deposits of the Chinese people is the highest in the world. Western consumers borrow less money in bad economic times spent, while the Chinese did save for old age crisis-proof, therefore, bad economy may not necessarily have no money to spend. And because of e-commerce convenience and affordable, people are more willing to spend money on the Internet.
There are nearly 300 million middle income earners in China over the next ten years, based on current trends, China will have 500 million middle-income population. Today the consumption level of medium income earners far below their levels of income. Consumption is relying on innovation stimulation, Alibaba's business model will be the main engine of the future to stimulate domestic consumption in China. In this connection, we can see from the double consumption of 11 came out. China lacks domestic spending power, but to think about how to detonate their purchasing power. Whether it is promoting imports, or pull three or four lines of urban needs is to stimulate demand for more than 600 million farmers, the company can do and there are so many places you can play a role.
Spring river duck Prophet ... ... Born great companies always in difficult times, I believe that the Chinese economy from quantity to quality adjustment will be produced in the course of several of the world's truly remarkable company, Alibaba, hoping to become one of them. Cao Tong joined the micro-Bank Governor resigned
Third, the development direction in the future: globalization, rural markets and large cloud computing
Our vision for the next decade will revolve around globalization, rural economy and development.
The globalization of our business focuses on helping SMEs take their own borders, the world of SMEs to use e-commerce, Internet banking, data, marketing and logistics platform. Only let their business globalization to global consumers can purchase any national and regional products and services. Today we believe that Alibaba in China's experience in developing the same application in the development of globalization as the global demands of SMEs is the same: unique in the transparent and fair market competition. We believe that the globalization of the world economy in the future, must be a national small business globalization, but also allow all consumers to realize the global share. To this end, we have prepared for a long time, implementation may take 10 years, even 20, we will spare no effort to uphold the principle of "not difficult to do business in the world" mission!
China has more than 600 million farmers and rural business infrastructure still lags behind. But today the situation has undergone great changes in rural areas, rural mobile penetration getting higher and higher. Especially with Taobao and sky cat city consumer market, farmers can directly connected to and living in the city. We are currently using mobile Internet technology, data, logistics platforms and Internet financial reconstruction of rural infrastructure of information technology, which not only gives us a huge potential market, but also in addressing the digital divide and information equality, addressing poverty on development, Alibaba, to actively participate in the opportunities and blessings. Because Alibaba's services, we see the countryside is changing. We also welcome all shareholders can go to rural China study, we tried hard today may be as a model for future development of many developing countries. At this historic moment, the company must embrace change, changes in investment, creating change!
The past 6 years, huge strategic investments in Alibaba is in cloud computing, and data services. We believe that human beings have in entering Data from the IT age Technology (DT) era. Data is the most important means of production innovation in society in the future, humans will be inseparable from the data. We have data input and development at all for development. Group is essentially a data value of our company, we firmly believe that we are in the last 6 years and the next few years in terms of data and technology will have a huge return on the investment. We are trying to get data and computing power to be Pratt's economic foundation. Nevertheless, we still feel compared with future potential, cloud computing, and data is still a baby.
On the outside viewed the company's challenges and our views.
Alibaba has a lot of challenges, but they may not be of interest and our own interest. Such as competition, Ali Baba used to talk about the competition, do not avoid talking about their competitors ... ... Alibaba was founded 16 years also no shortage of competitors. We are not a protected enterprise, we are in a tough competition in the market the company came in 16 years, we have learned to keep idealism and values, and tenacious survival, this will not be easy.
We do not fear competition, we just apply layout and perfect implementation of the strategy to win the competition.
Alibaba of positioning is started one commercial of change, we build of is future commercial of based facilities, we is for engaged in sale of businesses assigned can, and not and engaged in sale of businesses competition, from this is said, today market Shang so-called of "competition opponents", actually are is future we assigned can and help of object--in other words, simple of put today market Shang engaged in e-commerce of enterprise as Alibaba of opponents, is put Apple and Apple tree compared, is on both are not right of.
Alibaba faces biggest challenge, not from competitors but from our future control and his ability to control. Our grand vision and unique ecological system, we need to have a variety of specialized talent, needs to adapt to the future business development of the unique organizational culture and organizational structure, massive business ecosystem and rich and complex structures that we need not only in the traditional sense of enterprise management personnel, but leaders in various fields, innovator, pioneer ... An average age of 29 years old, start 16-year history of the company, the challenge is enormous. In short, our talents, organizational culture, management style, the ecological relationship between business and Government agencies ... Seems to be hard for us to draw lessons from. A young company committed to the challenge of an unprecedented human task difficult, beyond imagination. But this is a rare opportunity for the times. 16 years we have been saying to myself: at this very moment, not belong to me. (If not now, when? If not us, who?)
Dear investors, Alibaba listed above, the first report to the communication we thought on the development of in length, although a bit long, but it is every word is out of my own. Thank you for your investment in the growth of a business ecosystem in the future. Your investment in our view is a trust.
Ma
Alibaba Group Chairman of the Board of Directors
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