Alibaba officially explained that the main reason for the decline in its net profit was that the company increased investment in growth businesses such as Lazada, Taobao, and Ele.me, increased user growth costs, and implemented measures to incentivize merchants. The decline in profits mainly came from the 25.141 billion yuan impairment of goodwill and the change in the fair value of equity investments.

At the same time, from the perspective of Alibaba Group itself, most of its business modules are in a loss-making state. Cainiao, local life, etc. are all losing money after adjusting EBITA. Only cloud services and commercial businesses in China are still profitable.