Alibaba Group Holding Limited

and welcome to Alibaba Group's March Quarter 2020 and Fiscal Year 2020 Results Conference Call. With us are Indeung Zhang, Executive Chairman and CEO, Joe Tsai, Executive Vice Chairman and Chief Financial Officer. This call is also being webcast from our IR section of the corporate website. The replay of the call will be available on our website later today. Now, let me quickly cover the safe harbor. Today's discussion will contain forward-looking statements, including revenue guidance. These forward-looking statements involve inherent risks and uncertainties that may cause actual results materially from our current agents, including risks and uncertainties related to the COVID-19 pandemic. For detailed discussions of these risks and uncertainties, please refer to our latest annual report on 420F and other documents filed with the US SEC. nor announced on the website of the Hong Kong Stock Exchange. Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements except as required under applicable law. Please know that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, marketplace, Marketplace-based outcomes such as EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, or ADS, and cash flow are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings per release. Unless otherwise stated, growth rate of all stated metrics mentioned during this call refers to the year-on-year growth versus the same quarter last year. In addition, during today's call, management will give their prepared remarks in English. A third-party translator will provide simultaneous Chinese translation at another conference line. Please refer to our press release for details. During the Q&A session, we will take questions in both English and Chinese, and the third-party translator will provide consecutive translation. All translations are of convenience purpose only. In the case of any discrepancies, management statement in the original language will prevail. With that, I will now turn the call to Daniel.

Thank you, Rob. Hello, everyone. Thank you for joining our earnings call today. We have finished an extraordinary quarter and have delivered an outstanding fiscal year. Despite the impact of COVID-19 pandemic, Alibaba achieved the historical milestone of $1 trillion in GMV across our digital economy this fiscal year, a strategic goal that we set for ourselves five years ago. We at Alibaba have always been aiming for the stars while keeping our feet on the ground. The $1 trillion GMV milestone reflects the of Alibaba's digital economy and as well as strong execution against the clear strategic vision. Our scale has now reached one-sixth of China's total retail sales which was about $6 trillion last year and we believe there is still tremendous potential of growth. Digital adoption and transformation in retail are accelerating due to the COVID-19 pandemic, reshaping consumer behavior and enterprise operations. On the consumer side, shopping online has become a habit for more people and in more product categories. On the retail side, online sales is no longer an option but a necessity for the break of motors. we believe there is a new normal that will stay even after the pandemic is over. I would like to review the past quarter's performance in the context of the impact and recovery from the COVID-19 pandemic. On January 23rd, right before the Chinese New Year holiday, China announced the lockdown of Wuhan the center of the pandemic. The lockdown measures implemented in other provinces and cities led to large-scale economic disruption in late January and February, which negatively affected our domestic e-commerce business during the period. However, China quickly contained the pandemic by implementing measures such as strict social distancing, vast testing coverage, centralized mobilization of medical resources, and started to reopen the country for business in late February. By March 9, Tainiao announced full recovery of logistics operation nationwide, except for Hubei province, where Wuhan is. and a normal life began to return for most of people in the country when Wuhan 10-week lockdown was lifted on April 8. Since March, we have seen a healthy recovery in our China retail marketplaces. As of March 31, 2020, annual active consumers on our China retail marketplaces reached 700 26 million, a net increase of 15 million versus the previous quarter. Mobile MAUs of our China retail marketplaces reached 846 million in March 2020, an increase of 22 million over December 2019.

This reflects our strong consumer mindset and healthy user fitness. Since the new custodian began in April, the border-to-state PaysDNB of our China regional marketplaces has experienced year-on-year growth at a similar rate to several point-of-the-level. For the past several years, we have been investing to grow our new retail business in fresh food and grocery.