Good day, and welcome to Alibaba Group Holding Limited 2016 Annual General Meeting of Shareholders. I would now like to turn the conference over to Daniel Zhang, Chief Executive Officer. Please go ahead.
Good evening and good morning, ladies and gentlemen. I'm Daniel Zhang, Director and Chief Executive Officer of Alibaba Group Holding Limited. I will be chairing today's meeting. On behalf of the board of directors and management team of Alibaba Group, I would like to welcome our shareholders and ADS holders to our 2016 Annual General Meeting. I would now like to call the meeting to order. Kevin Zhang, our Lead SEC Compliance and Corporate Governance Counselor, is appointed as Inspector of Elections and Secretary for this meeting. I would like to delegate my authority to Kevin to conduct the formal part of this meeting. After the formal business is completed, members of the management team will take questions. I will now turn it over to Kevin.
Thank you, Daniel. Welcome everyone. Before we start, please mute your phones and other mobile devices. We ask our shareholders and other participants here with us today to kindly refrain from taking photos or videos during this meeting. After the meeting, you will have a chance to chat with members of our management team or take photos. This meeting will be conducted primarily in English, although we will accept questions later in Chinese. Before proceeding with the formal business of today's meeting, I would like to note, as we have told you in our proxy statement, we have published letters to shareholders from Jack Ma, our Chairman, and Daniel Zhang, our Chief Executive Officer. We invite you to visit our website, www.alibabagroup.com, to review their letters. Now, let me begin by introducing other members of our senior management team who are with us today.
Maggie Wu, Chief Financial Officer, Michael Yao, Senior Vice President, and Rob Lin, Head of Investor Relations. Also present today are representatives of Citibank, N.A., the depositary bank for American Depositary Shares representing our ordinary shares. Citibank is also the record holder of the ordinary shares underlying our ADS. PricewaterhouseCoopers, the company's independent accountant. Maples and Calder, our Cayman Islands counsel, and Simpson Thacher & Bartlett, our U.S. counsel. We will first attend to the official business of the meeting. To ensure an orderly meeting, during the formal part of the meeting, we will not be taking questions that are not related to the items on the agenda. As the chairman just mentioned, following the formal part of the meeting, we will have a general question and answer session.
While the formal part of the meeting is going on, we ask ordinary shareholders attending this meeting in person to pass the questions you may have to Alex Chen. Alex, can you stand up so we can see you? Those of you who are attending this meeting online may submit your questions via our virtual meeting website at any time. Thank you in advance for your cooperation. I have received confirmation of mailing from Computershare, the transfer agent for our ordinary shares, and Citibank, the depositary bank for our ADS, that notice of this meeting has been duly given and that copies of the proxy statement and proxy cards or voting cards have been furnished to all holders of ordinary shares and ADS of record as of the close of business on August 19th, 2016, New York time.
A count of shares present, including those represented by ADS, before the commencement of this meeting indicated that we have more than 2,430 million shares represented in person or by proxy at this meeting. This total represents approximately 97% of total shares entitled to vote as of the record date. As Inspector of Elections, I have determined that we have present in person or by proxy a sufficient number of shares to constitute a quorum. The meeting is duly convened, and we may proceed with the business of the meeting. All items submitted for vote at today's meeting will be decided by poll. To our ordinary shareholders who are present at the meeting today, if you have turned in a proxy and do not intend to change your vote, then you do not need to vote again because we will count your proxy.
If you did not turn in a proxy or wish to change your vote, you may vote by casting the ballot provided to you when you signed in. To holders of our ADS who are attending this meeting via our virtual meeting website, pursuant to our Articles of Association and the Deposit Agreement governing the ADS, you must vote through Citibank, the holder of record of the ordinary shares underlying the ADS you hold. If you have already provided your voting instructions to Citibank, then your vote will be cast by Citibank at this meeting as you have instructed, and you will not be able to change your vote today. If you have not provided your voting instructions to Citibank, you will not be able to vote today via the virtual meeting website.
In accordance with the terms of the Deposit Agreement for the ADS Holders of approximately 452 million ADS who did not provide timely voting instructions to Citibank were deemed to have instructed Citibank to give a discretionary proxy to Maggie Wu, who was designated by the company to vote the shares represented by such unvoted ADS in her discretion. We will announce the voting results at the end of the formal part of the meeting. The polls for each matter to be voted on at this meeting are now open. We will collect your ballots after the voting on all the proposals is completed.
The first item of formal business is the election of 4 directors to serve as Group II directors until our 2019 annual general meeting, and one director to serve as a Group I director until our 2018 annual general meeting, or until their successors are duly elected or appointed. The persons named in the proxy statement have been nominated for election by the respective nominating parties, as explained in the proxy statement. They are Daniel Yong Zhang, Chee Hwa Tung, Jerry Yang, Wan Ling Martello, and Eric Xiandong Jing. Is there a motion for the election of each of Daniel Zhang, Chee Hwa Tung, Jerry Yang, and Wan Ling Martello as a Group II director, and for the election of Eric Jing as a Group I director, as stated in the proxy statement?
I so move.
The matter is now called for a vote. The proxies solicited by us will be voted as instructed by the shareholders or ADS holders completing and returning proxies or voting cards. Maggie Wu, who holds a discretionary proxy for the 452 million unvoted ADS, has indicated that she intends to vote all of the shares represented by such unvoted ADS in favor of the election of each of the directors as proposed. Ordinary shareholders present who wish to vote in person today should mark your ballot indicating the way you wish to vote. Michael Yao, our Senior Vice President, will moderate the questions and answers relating to the matters to be voted on at the meeting today. Michael, are there any questions on this matter?
Kevin, there's no questions online with regard to this resolution.
Okay, thanks. The next order of business is to ratify the appointment of PricewaterhouseCoopers as our independent registered public accounting firm for the fiscal year ending March 31st, 2017. Is there a motion to ratify PricewaterhouseCoopers as our independent registered public accounting firm for the fiscal year ending March 31st, 2017?
I so move.
The matter is now called for a vote. The proxies solicited by us will be voted as instructed by the shareholders or ADS holders completing and returning proxies or voting cards. Maggie Wu, who holds a discretionary proxy for the 452 million unvoted ADS, has indicated that she intends to vote all of the shares represented by such unvoted ADS in favor of this proposal. Ordinary shareholders present who wish to vote in person today should mark your ballot indicating the way you wish to vote. Are there any questions on this matter?
No questions online with regard to this resolution.
Thanks, Michael. To our ordinary shareholders who are present today at this meeting, if you intend to vote in person or change your previously submitted proxy at the meeting today and have not already done so, please pass your ballot to Alex Chen now so that it can be counted. We will not accept ballots, proxies, or votes, or any changes or revocations submitted after the closing of the poll. We see some shareholders are casting their votes. The polls for each matter to be voted on at this meeting are now closed. No additional ballots, proxies or votes, and no changes or revocations will be accepted. Computershare, our transfer agent, is now counting the votes. The results will be reported shortly. Based on all the proxies, voting cards, and ballots received, I'm pleased to announce the voting results as follows.
Regarding the election of Daniel Zhang as a group 2 director, approximately 2,223 million shares, or 91.5% of the total shares present in person or by proxy, have voted for. Approximately 206 million shares, or 8.5% of the total shares present in person or by proxy, have voted against. Approximately 1.2 million shares, or 0.0% of the total shares present in person or by proxy, have abstained from voting. Regarding the election of Chee Hwa Tung as a group 2 director, approximately 2,385 million shares, or 98.1% of the total shares present in person or by proxy, have voted for. Approximately 44 million shares, or 1.8% of the total shares present in person or by proxy, have voted against.
Approximately 0.7 million shares, or 0.0% of the total shares present in person or by proxy, have abstained from voting. Regarding the election of Jerry Yang as a group 2 director, approximately 2,383 million shares, or 98.1% of the total shares present in person or by proxy, have voted for. Approximately 45 million shares, or 1.9% of the total shares present in person or by proxy, have voted against. Approximately 1.8 million shares, or 0.1% of the total shares present in person or by proxy, have abstained from voting. Regarding the election of Wan Ling Martello as a group 2 director, approximately 2,423 million shares, or 99.7% of the total shares present in person or by proxy, have voted for.
Approximately 6.8 million shares, or 0.3% of the total shares present in person or by proxy, have voted against. Approximately 0.7 million shares, or 0.0% of the total shares present in person or by proxy, have abstained from voting. Regarding the election of Eric Jing as a group 1 director, approximately 2,246 million shares, or 92.4% of the total shares present in person or by proxy, have voted for. Approximately 184 million shares, or 7.6% of the total shares present in person or by proxy, have voted against. Approximately 0.8 million shares, or 0.0% of the total shares present in person or by proxy, have abstained from voting.
Regarding the ratification of the appointment of PricewaterhouseCoopers as Alibaba Group's independent registered public accounting firm for the fiscal year ending March 31, 2017. Approximately 2,426 million shares, or 99.8% of the total shares present in person or by proxy, have voted for. Approximately 3.5 million shares, or 0.1% of the total shares present in person or by proxy, have voted against. Approximately 0.6 million shares, or 0.0% of the total shares present in person or by proxy, have abstained from voting. Based on the voting results, I declare that each of Daniel Zhang, Chee Hwa Tung, Jerry Yang, and Wan Ling Martello has been elected as a Group 2 director to serve until our 2019 annual general meeting, or until their successors are duly elected or appointed.
Eric Jing has been elected as a Group 1 director to serve until our 2018 annual general meeting, or until his successor is duly elected or appointed. The appointment of PricewaterhouseCoopers as Alibaba Group's independent registered public accounting firm for the fiscal year ending March 31, 2017, has been ratified. The final detailed result of voting will be disclosed in a current report on Form 6-K that we will file with the SEC shortly after this meeting. This concludes the formal business of the meeting. There being no further business to be conducted at this meeting, may I have a motion to adjourn the formal portion of the 2016 annual general meeting? We will then proceed with the question and answer session.
I so move.
There being no objection, the formal part of the 2016 annual general meeting of shareholders is adjourned. I will now turn the podium over to Rob Lin, head of our Investor Relations, for him to moderate the question and answer session.
Thank you, Kevin. Before we get started, please know that today's Q&A session may include forward-looking statements that are not historical in nature and refer to future events or our future financial performance, which are subject to risks and uncertainties. Such forward-looking statements are based upon information available to us as of today's meeting, and our actual results may differ materially due to a number of factors and risks.
Please refer to our filings with the SEC for a detailed discussion of those risks. Except as required by law, we assume no obligation to update any forward-looking statements we may make here today. Please also note, before our upcoming announcement of earnings results for the September quarter are announced, we will not be in a position to address any questions or comments relating to our financial or operating performance. In addition, while we will do our best to address all questions received, we may not be able to address each of them today due to time constraints. We have budgeted approximately 15 minutes to answer general questions at this meeting. I will now open the floor to the first question.
我就坐着吧。不好意思，其实去年我也提过一些要求，我也知道阿里巴巴公司都给了我们这些帮助，都解决了。但是，我今天还想再和你们套个近乎。阿里巴巴虽然说是股东第三，但实际上我们还是不是客户，但是是用户。我想平均一下，再提一个过分一点的要求，就是比如说以后像阿里高管和投资者的见面会，如果有机会的话，也让我们能参加一下，这个就更好了。当然，如果你们觉得过分了，我也没意见。这是一个请求。 第二个问题就是，我第一次了解到阿里巴巴，就是在阿里巴巴成立10周年的时候，当时有一个纪录片，就是一个小女孩在一个什么场景工作、生活，那个图还是IT时代的那么一个场景。那么现在包括马总的讲话，他也说此时此刻在他眼前看到这些场景，比他在创业的时期都让他激动万分。我就想，张总您能不能描绘一下马总说的这个场景又是怎么样一个形象？我现在还挺能想象，在现在的DT时代是怎么样一个场景。我觉得你们发展的这10年，说是19年什么什么样，已经远远超过了那样一个状况。 然后另外提一个问题，就是前几天在华盛顿的一个什么会上，包括世界贸易组织的总干事也讲到，这种智能化什么会导致大量的低技能人员的失业。那比如说我们阿里巴巴的这种以现在以技术驱动，提供让人更好的生活。那么会不会也导致了只有2%的人有感觉到生活变得更好？大多数人会不会带来一些实用的问题？您怎么考虑的？谢谢。
Well, I have a few points and actually two questions. The first point is that I made some requests last year at the AGM, I appreciate Alibaba's help. I understand that shareholders are in the third place for Alibaba Group. However, we still hope that in future, we will have more opportunities to be able to meet face to face with Alibaba senior management, and we would like to be invited to participate in events such as Investor Day. I have two questions. I remember actually many years ago, I saw the film of Alibaba, where there's a girl living in the IT world. Today, Jack has been talking about we are in the DT world, which is a different scenario, which is a more inspiring scenario than in the past.
I'm wondering if Daniel could elaborate on this new scenario, this new future that Jack has been talking about. Also a few days ago, I remember in Washington, the director general of the WTO mentioned that the development of technology, in particular smart technology, might lead to unemployment of low-skilled worker. We understand Alibaba is a technology-driven company, I'm wondering whether this strategy will lead to unemployment issue that will affect a lot of people.
好，谢谢这位股东的问题。首先我想还是感谢我们这位股东，包括我们所有的股东，对阿里巴巴的信任。因为他提到了，确实我们这个平台，我们一直坚持阿里巴巴坚持客户第一，员工第二，股东第三。但实际上我们很多的阿里巴巴，我们共同的生态当中的，无论是客户也好，用户也好，甚至股东也好，只不过我们有多种的身份，我们每个人都是消费者，有一些股东还是我们的商家，或者是我们的合作伙伴，其实是可能有一种或者多种的身份，这是一个非常奇妙的ecosystem，是一个奇妙的生态体系。那么在这个中间，我想我们这个生态系统能够发展，其实就是基于我们互相之间的共同的信任和共同的扶持，互相的帮助，我们这个生态才能够越来越繁荣。所以在这里也再次感谢我们所有的股东、所有的客户和用户对我们的信任和支持。你问了一个非常好的问题，其实今天大家都在谈DT时代的到来。其实今天我们可以看到，不论我们愿意与否，大数据时代对社会的影响，对经济的影响，对生活的影响是越来越广泛，推动越来越明显。这是我们可以看到一个非常明显的趋势。所以我们可以看到今天阿里巴巴从整个的生态的发展，包括我们一直去践行我们的使命，让天下没有难做的生意，就是希望利用大数据的这样的一种能量，能够使得我们的生态体系当中的所有的参与者，包括我们自己，能够让生意做得越来越简单，让这个社会越来越美好。
Thank you very much for your question. I would like to thank you and all our shareholders for your trust in Alibaba Group. It is true that it is our philosophy that we put customer first, employees second, and shareholders the third. However, at the same time, we might want to realize that many of you have multiple roles. For example, one person can be our consumer, and a shareholder can be our merchant as well. This is a very interesting and great ecosystem where we support each other, where we grow together based on mutual trust. Again, I'd like to take this opportunity to thank our shareholders and our consumers for your trust and support. Regarding your question, in this DT era, big data is playing a very big role in everybody's life. It is having profound impact on the way that we live.
That's why Alibaba's development is based on unleashing the power of big data. We would like to make it possible for all participants of our ecosystem to use the power of big data to make it easy to do business anywhere, to make it cheaper and easy to do business for everybody.
对，就是您刚才说到的Jack他提的DT时代的愿景，很多事情正在逐步地实现。包括阿里巴巴，我们在未来的时间段里面，怎么样利用大数据的能量，践行我们云计算、大数据、全球化、农村战略，其实是我们未来能够更好地服务我们这个生态的基本的一个推动力。你刚才特别问到了一个关于大数据时代到来以后，会不会使得失业问题的加重。我觉得最关键还是看数据怎么被使用。其实数据最终还是为人所用，是帮人变得更聪明。其实我想，如果有一些的岗位，有一些工作岗位会消失，那必将会产生新的工作岗位。怎么样利用大数据能够创造新的行业、新的机会，创造新的机会、新的就业，我想这个是我们所有人共同努力的方向。
Well, Jack's vision about the DT era is gradually happening. We are seeing that big data, cloud computing and our rural strategy are changing the way business is done. As for your specific question about your concern about unemployment that could be potentially triggered by technology, I would like to say that big data is the way to go. It is just a matter of how we use big data. It is about using data to the advantage of human beings. While technology might mean that some low-skill jobs will disappear, at the same time, it also means that some new jobs will be created. I think big data can play a key role in creating new opportunities and new jobs.
Our next question is coming from an online participant. Daniel, this is for you. What is being considered in the arena of artificial intelligence? Very related to last question.
Okay. Yes. Actually, as a next generation of technology, actually AI is viewed as a very important component. Alibaba pay close attention to this, we have committed great resources to develop this AI technology, AI platform. We are also very happy to see that we have a very big advantage to develop this AI technology, because we have huge data, which is very important for AI development. We believe this leverage AI technology and the results, we can grow our business even better.
刚才这个问题是关于阿里巴巴集团在人工智能这方面的一些计划。这个问题的答案是，人工智能是阿里巴巴非常关注的一个领域，我们也投入了大量的资源去开发人工智能的技术与平台。事实上，阿里巴巴在人工智能领域方面是具有很大的优势，这主要是因为我们拥有大量的数据，这个数据对于人工智能的开发是非常重要的。所以说，我们接下来将会进一步地在这方面来进行投入，并且期待人工智能的进一步发展将会提升我们的业务。
Okay, there's no active question online. Maybe we'll take the last question from the floor.
网上没有问题了，现场还可以再提问。
好，谢谢。作为一个小股东有一个情怀，就是心目当中一直认为阿里巴巴是一个伟大的公司。所以像一个公司的股东会，我想也是一个伟大的感觉。所以我就一个心愿，因为以前在看到巴菲特的那些场景的时候就想着，哪一天阿里巴巴能够参加这样的一个是非常荣幸的事情，这是一个心愿。我提一个问题，让张总。现在阿里巴巴像张总提到的，已经整个生态已经形成了一个航空，阿里巴巴集团是一个航空母舰的一个舰队。那么接下来的阿里巴巴的业务发展当中，像互联网金融、大数据、云计算、人工智能，包括文化健康产业等等，未来阿里巴巴这段时间主要的会在哪一块显示出它增长更快的一点？成为阿里巴巴整个发展当中，在短时间内，业绩增长也好，整个发展也好，最快的一个方面，想了解一下，谢谢。
Thank you very much for this opportunity to be here. As a small shareholder, I feel especially honored and pleased to participate in the AGM of such a great company. I have a question for CEO Daniel Zhang. As you mentioned, Alibaba has built a strong and comprehensive platform with various business segments. You mentioned internet finance, artificial intelligence, cloud computing, digital media and entertainment. My question is, which area will enjoy the strongest growth in the future for Alibaba?
好，谢谢。其实对阿里巴巴来讲，我们有一个传统，我们一直是过去的17年，一直是既立足于现在，但又同时着眼于未来的发展，沿着我们这个使命和愿景来规划我们的战略和执行。
Alibaba, over the past 17 years has always been focused on both the present and the future. We have always made our strategies around our vision and mission.
所以从今天来看，其实我们今天大家非常熟悉的像电子商务的业务，像我们的金融的平台，包括我们今天逐步在发展的我们的物流，其实大家已经看得非常清楚了。同时我们也在大力地在投入，围绕着我们的新的数字娱乐平台，包括云计算，我们在大力地投入。我们也可以看到，特别像云计算，像数字媒体平台，随着我们的投入，这几年有了飞速的发展。云计算的业务，前面几个季度都是三位数的在增长。我们的这个数字媒体平台也通过一系列的整合也慢慢成型了。这是我们可以看到在未来，我们在原来的电商以外，在这两块部分我们都有很多的期待。
That's why probably you have seen that in terms of e-commerce as well as financial services and logistics, we have enjoyed very steady and strong growth. Apart from the traditional business segments, we have made a lot of investment into new areas, in particular in digital media and cloud computing. These two business segments have enjoyed exponential growth. If you look at cloud computing in the previous several quarters, it has enjoyed three-digit growth rate. Also the digital media business is also taking very strong shape. That's why I mentioned we also make a lot of investment into these emerging areas as well.
对。最后从更长远的时间来说，我们又同时其实不间断地在孵化一个更下一代的业务。其实我们都给我们的员工，给我们的同事更多的空间去创新一些新的想法，去尝试。所以我们也在不停地孵化我们很多新一代的业务，包括有一些大家已经看到的，我们也提到过的，像钉钉，像闲鱼，包括像我们已经长得比较大的高德，包括阿里旅行，这是大家已经看到的业务，但是还有很多是我们更处于向不停地尝试阶段的。我们阿里的发展就是这样，既要看今天的，又要投资明天的，更重要还要孵化未来的，这样才能支持更长期的发展。
However, we are also making investment into a broader future. That's why we've been incubating new generation business. We encourage our employees to have new ideas to create innovative business concepts. For example, we have DingTalk, we have Xianyu, we have Gaode, AutoNavi, as well as a whole bunch of new business segments. We look at today, we also focus on tomorrow, but most importantly, we also incubate new ideas for the future.
Thank you, Daniel. That was the last question of today's meeting.
Okay. Thank you all. This concludes Alibaba Group's 2016 Annual General Meeting of Shareholders. Thank you again for attending this meeting, and we look forward to your continued support. Thank you.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.