At 10 o'clock on the 7 May, Ma, and from the shareholders of Alibaba, internal staff, media, 300 people attended a "Buffett-style" general meeting of shareholders. Among them, including 50 University of Hong Kong undergraduates.
Alibaba CEO Wei Zhe speech at the shareholders meeting, said there are four key words to help tide over the difficulties Alibaba in 2008, the four key words: the first is the vision; second is optimistic; third is courage; s Fourth, be patient.
Following is the speech by David Wei:
Wei Zhe: Members Alibaba employees, you Alibaba's customers, Ladies and Gentlemen, Good morning! The first time last year, when shareholders meet, we expect that as a young company Alibaba, as a younger market listed companies After the first year will be very difficult, but we also do not think since the last meeting later become so difficult, both for me personally, for our team, our company also believe that most of today guests, shareholders, customers have experienced a very memorable, very difficult times. This year I think there are four key words to help us through the difficulties of 2008, these four key words: the first is the vision; second is optimistic; third is courage; Fourth, be patient. I will one by one and all shareholders, the guests share behind every word we learned in 2008 and the years to do.
First of all, the first word is vision. I thank our Board of Directors, our Chairman of the Board, from their perspective, the economy is very hot when we could be world's first shouted "economic winter is coming," the company, because we see the back of an overheated economy , whether the capital market the stock market, real estate market, or bulk raw materials, in February last year, we repeated the economic crisis of the coming winter will be bear the brunt of the impact will be China's foreign trade will be small in China and around the world enterprise. This is our vision to see that others no see risk. The second part of our vision to see, including people in crisis has not seen the opportunity to see the future after a crisis, that is, we firmly believe that with the advent of the crisis can just e-commerce, can represent the online B2B International trade, the domestic gains from trade more people to accept, we believe that the Buyer the economic crisis will be more necessary and efficient procurement methods, will enable the procurement of additional e-commerce had become the mainstream of their purchasing behavior, this is our vision Suo see.
The following shareholders and guests please read my first paragraph today to prepare for you the video, we take a look at a typical buyers from Western Europe and the United States is how the economic crisis were more aware of the e-commerce can not only help him purchase, and can to help him do sales, we see the big screen.
(Video)
Although this video last Alibaba taxis in Hong Kong ended, but we reiterate that we do not wish to enter into a taxi in this very competitive industry. This video reflects the increase in the last three quarters of our new 300 million overseas members of the community, to date we have members all over the world, from birth to now a total of ten years Alibaba total of 8.6 million, 8.6 million of 3 million actually started from the financial crisis, one-time explosion in the third quarter last year, there is a start both the third quarter of last year's 30 million U.S. dollars of overseas campaign to bring results, but more fundamentally in crisis increasingly more global SMEs more aware of the e-commerce can become reason to help them through the winter. This is the first part I want to say look, we see not only other people did not see the danger, but saw no one else saw the opportunity not only to see a more well prepared for action.
Often a time when such vision will bring out the second key word, "optimistic" that some people may be a little more pessimistic, think what will happen next week, when you see the future when the vision will become more optimistic Our optimism comes from the confidence of the Chinese economy. Over the past quarter GDP growth in China has just over 6%, this is the lowest in recent years, a quarter of GDP growth, but it is the world's best performance, we believe the Chinese economy will in this crisis not only defensive, also the first country out of crisis. We have confidence in electronic commerce on the Internet, because we do not throw away our confidence in the economic crisis, the computer re-took the pen and paper business, and re-took the abacus to do business, we have confidence in their team because the team went through SARS, experience The last round of the Internet bubble, we have experienced a lot of disasters, based on the confidence of our more optimistic, but optimism should take action.
The third action requires a very important key words "courage" is courage in a crisis before the arrival of more action to prepare for the crisis, we in the first quarter of last year to 7 years to no change in sales and had Alibaba service system moving a lot of surgery, frankly said to have aroused a lot of capital market analysts questioned why only three months after listing on doing such a large operation, also does business at that time had some negative impact, but We firmly believe that if no such group restructuring will be difficult to introduce new products, new services to adapt to the coming economic winter.
In the last year in July, our second anthem "Winter is coming," Mr. Ma Yun, chairman we write an article while in winter we do a good job preparing the new products, the preparation is aware of the economic crisis, the first tsunami wave will impact China's exports, we do first is to prepare the face of China's export enterprises to create a new product, and in order to allow more affordable access to e-commerce companies, drastically reducing the barrier to entry of membership fees. It takes courage to make our entry fees down from 50,000 yuan to adjust 60% 19,800 yuan. But this is not simply changes in prices, more is our 6-month product development through product re-exports to hit a new product system resulted in the most difficult times in the most reasonable and most competitive price to our customers. Here we ask our shareholders and guests look at a video, this video will tell you that from October 1 last year, what kind of products to help China's export enterprises, what kind of products to help our customers, but also indirectly help about our company, see the big screen.
(Video)
The exports through product launch in November last year after a net increase in the fourth quarter of our exports more than 12,000 members, precisely in November is nearly 7 years since the first time negative growth of foreign trade, to the end of last year paid membership to our export probably from China about 43,000, which more than 40,000 in the first 10 000 Alibaba spent three and a half, the second 10,000 spent two and a half, and the third one 10 000 spent a year and a half, three and a half, two and a half and one and a half, the fourth launch of the product and we have 10,000 spent only a month's time, and this trend is maintained. Yesterday we announced first quarter 2009 results, we know that one quarter of negative growth in 20% of China's foreign trade, just a quarter of Alibaba in this fifth member to achieve exports of 10 000 and achieved the largest single quarter ever growing customers to our shareholders to see is the growth of paying customers, but Alibaba is more nearly 50,000 small and medium enterprises. The use of e-commerce, in finding a new channel to help them through the winter. From the research perspective and do not use e-commerce for SMEs, with a survival rate of e-commerce will be 2 times higher than the whole, the 50 000 enterprises will be higher than the survival of businesses not using e-commerce business more than 5 times. We have the courage to make changes we have made has paid off, when we expect the impact of foreign trade, when the first round of exports through product launch, we realized that China's economy will be more dependent on domestic demand driven, so the first quarter of this year 2 integrity through the month on the products we had to upgrade, and this upgrade is the preparation began in November last year. We say that our aid program is a combination of boxing in winter, well after the first punch, boxing has prepared the second, integrity through the escalation of this year, concentrated in the integrity of mobile communications and display functions, these upgraded features also caused a quarter received strong support and trade customers. Quarterly Bulletin in response to the first quarter we started to invest, invest in our customers, employees and technology. The first quarter of this year compared to the first quarter of last year, we spend 6% of operating income for the marketing and promotion, we spend 2% of product research and development costs for the development of such exports pass, similar to the mobile version of faith-pass, similar to the beginning Japan achieved through a similar announcement the day before yesterday to upgrade the international credibility through the international version for global suppliers, this is our commitment.
The fourth key word is "patience." Equity investors in China are generally not known as shareholders, as shareholders, I have been looking for the right word translated into English, we are here today to shareholders, I am particularly pleased also to participate in the General Assembly last year of old faces. As a firm, it is difficult for a shareholders, but should our shareholders, and shareholders and companies pursue long-term returns, if so, patience is essential. Why we invest in the winter? Based on our confidence, based on our vision, and also in the winter when we understand everything is cheaper to buy in the summer to buy anything expensive. So today we are 30 million U.S. dollars of promotion, are comparable to a dollar for every three dollars over the past few years, four dollars are unable to effect, we invest in technology costs less than a lot of time when the economy overheated, we know that winter investment will in the summer, autumn harvest. As shareholders are concerned, we just say 6% for marketing, 2% extra for the technology development, how we will get in return? We will return gradually in three stages:
The first stage is the rising number of customers, we learned from last year's fourth quarter and the first quarter of this year have seen, we give our shareholders and guests to see a summary of last year's performance (PPT), we do not want to repeat that, I just want to told the shareholders that we need patience, but we prove our first Jieduan effect of Ke Hu increase has brought the two Ji Duoji we Chubu the confidence and dawn, the second phase of our model is Youyu deferred revenue model, Xianshouhuiyuan Fei land and then in the next 12 months, anti-sharing charged in the accounting income, so the second phase of the growth of number of customers is bound to bring the accounting income of the rise in the next 12 months. You look at our current shareholders, in addition to how much money, you can also look at our balance sheet deferred revenue, which is loaded into our pockets, is the trust our customers put money has been paid to us, so that the second stage should see the return on investment of time. The third stage, to see return on investment from the margins of the recovery, we must first put upon return, so the third phase with the increased number of our customers, as we increase in accounting income, profit recovery is no doubt of.
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