Zhang Yong’s letter to investors: 20-year-old Alibaba’s new starting point

Zhang Yong, chairman and chief executive officer of Alibaba, said that we launched the Hong Kong listing today, which is a new starting point for the 20-year-old Alibaba. When Alibaba first went public in 2014, it regrettably missed Hong Kong. Hong Kong is one of the most important financial centers in the world. In the past few years, Hong Kong’s capital market has undergone many encouraging major reforms. At the moment when Hong Kong society is undergoing many major changes, we still believe in Hong Kong’s bright future. We hope to contribute our modest efforts and actively participate in the future construction of Hong Kong.

Letter from the Chairman and CEO of the Board of Directors to Investors

Dear investors:

Thank you for your attention and support to Alibaba Group. We launched the listing in Hong Kong today, which is a new starting point for the 20-year-old young Alibaba.

Today the world has entered the era of digital economy. This is a great era full of changes, challenges and opportunities. Under the background of this era, how does Alibaba stick to its original aspirations, continue to create and innovate in the future, and create value for society, customers, consumers and investors? I hope to share our thoughts, plans and actions with you.

To be a good company for 102 years

Alibaba is a company driven by mission, vision, and values. Alibaba’s cultural puree comes from our belief in the beauty of people and society. In recent years, we have been thinking about what can and cannot be changed with the advent of the digital economy. At the 20th anniversary celebration of Alibaba on September 10, we announced a comprehensive upgrade of Alibaba’s mission, vision, and values ​​for the future. At the beginning of our establishment, our mission of “making the world easy to do business” has not changed, but we have upgraded our vision of “becoming a 102-year-old company”-we hope to “be a good company that can survive 102 years.” company”. Alibaba does not seek to be a “big company” or a “strong company”. We hope to be a “good company”, bringing positive energy to the society, taking on more social responsibilities, serving small and medium-sized enterprises, and being employees A good company that agrees with and satisfies shareholders.

At the same time, we have also upgraded Ali’s values ​​”Six-Medim Sword”. Upgraded from six words to six sentences of Ali’s native dialect, each vernacular is born from a historical story of Ali, representing the distinctive attitude and choice of Alibaba culture. they are, respectively:

Customers first, employees second, shareholders third;

Because of trust, so simple;

The only constant is change;

Today’s best performance is tomorrow’s minimum requirement;

At this moment, it is none other than me;

Live seriously and work happily.

Culture is the basic value orientation of Alibaba, and it is also the driving force that led Alibaba from zero to today. No matter how the world changes, only by sticking to our original intention can we continue to move forward in the future.

The era of digital economy opens a new business civilization

The most significant sign of the digital economy era is that the Internet is being integrated with industry, agriculture, service industry, and social public services. This also gave birth to the development of a new commercial civilization. The essence of business civilization in the digital economy era is based on openness, sharing, cooperation, and win-win, returning from the traditional zero-sum game of business to paying attention to customers and creating value. The opportunities brought by digital technology can be more universally shared by society, and it can better promote the sustainable development of society. Alibaba hopes to use its own exploration and practice to make its own contribution to the creation of a new commercial civilization in the digital economy era.

After 20 years of development, Alibaba has grown from an e-commerce company at the beginning of its establishment to a commercial infrastructure in the digital economy era that spans digital commerce, digital finance, smart logistics, cloud computing and big data, etc. As a result, a unique digital economy ecology has been formed. Together with the vast number of partners in the digital economy ecosystem, we serve consumers and industries at the same time, not only creating and stimulating the rise of new consumption, but also committed to serving all walks of life to complete the digital transformation and upgrading of industries. We hope to not only help thousands of small and medium enterprises grow, but also encourage and support the development of new unicorns and little giants. Not only can small grass grow under the big tree, but also more small grass can grow into towering trees.

Future-oriented general goals and general strategies

On the occasion of the 20th anniversary of Alibaba in September this year, we have announced the overall strategic goal for the next five years: serving global consumers, including more than 1 billion Chinese consumers, and creating a consumption scale of more than 10 trillion yuan. This is our long-term strategic goal: to serve 2 billion consumers worldwide by 2036, to create 100 million jobs and to help 10 million small and medium-sized enterprises make profits.

In order to achieve our strategic goals, we will continue to firmly implement three strategies: globalization, domestic demand, big data and cloud computing.

Globalization is Ali’s future. We firmly believe that the combination of digital technology and commerce brings about chemical reactions, and this matter knows no borders. The wide application of digital technology in commerce, finance, logistics and other fields will greatly improve the efficiency of trade between different countries and different markets, so that there is no difficult business in the world. We will continue to start from global buying, global selling, global payment, global shipping, global play, etc., to promote the development and prosperity of the global digital economy ecology.

Domestic demand is the future of China’s economy. The Chinese economy is undergoing a comprehensive transformation from an investment- and export-oriented economy to a consumption-driven economy. Today, on the Alibaba China retail platform, there are 785 million mobile monthly active users. They are the most active and youngest consumer in China and represent the future. China’s ongoing urbanization in rural areas, the emergence of hundreds of millions of middle-class families, and the emergence of all consumers as Internet users, have brought huge potential for consumption growth and provided a brand new opportunity for the use of digital technology to create consumption growth. possible. We hope to meet consumers’ different levels of consumption needs through the supply of diversified goods and services. Not only that, but we also hope to be able to drive supply-side reforms through big data, directly connect the market through innovative supply, and create new consumer demand.

Big data and cloud computing are the oil and engine of the digital economy era. Alibaba’s digital economy infrastructure not only continuously generates data, but also because of the extensive application of data, the ecology continues to prosper and develop. We believe that in the era of digital economy, computing power is becoming a new generation of productivity. In the future, all companies will become Internet companies in a new sense, and they will all become companies driven by big data. The broad opportunity that Alibaba faces is not the upgrading of a certain industry, but the upgrading of all industries. Therefore, we are making every effort to promote the construction of Alibaba’s business operating system: open Alibaba’s digital economy-oriented business, finance, logistics, cloud computing and other infrastructure to all customers and partners, and help them complete digitalization and move toward intelligence.

Perseverance in culture and creation of the future

Culture is the cornerstone of Alibaba, and innovation is Alibaba’s genes. After ten years of exploration, Alibaba has created and developed a unique partner system. We will adhere to the partner governance mechanism to ensure the inheritance of our culture and the persistence of our mission, vision, and values. On September 10 this year, we completed a comprehensive upgrade of the management team, which is an important step for our future development. We firmly believe that in this rapidly changing world, we must continue to innovate, challenge ourselves and even subvert ourselves. Talent is Alibaba’s most valuable asset. We need to constantly emerge “wind makers” facing the future. We will allow more young people to create and try, let more women take on important positions, and cultivate more global talents. We create the soil, let our employees have love for the society and curiosity about the future, and let the world be more warm and bright because of our creation.

Back to Hong Kong

When Alibaba first went public in 2014, it regrettably missed Hong Kong. Hong Kong is one of the most important financial centers in the world. In the past few years, Hong Kong’s capital market has undergone many encouraging major reforms. At the moment when Hong Kong society is undergoing many major changes, we still believe in Hong Kong’s bright future. We hope to contribute our modest efforts and actively participate in the future construction of Hong Kong.

Thank you again for your attention and participation in the development of Alibaba. Because I believe and see, the future belongs to those who believe in “believe”, and Alibaba will continue to work hard!

Zhang Yong

Chairman and CEO of Alibaba Group Board of Directors

The Links:   1MBI300N-120 C070VW02-V0