。2Income from operations was RMB26,798 million (US$3,898 million), an increase of 3% year-over- year.Adjusted EBITDA increased 13% year-over-year to RMB40,708 million (US$5,921 million).Adjusted EBITA for core commerce was RMB46,079 million (US$6,702 million), an increase of20% year-over-year.Our marketplace-based core commerce adjusted EBITA (see definition atthe end of this results announcement), a non-GAAP measurement, increased 31% year-over-year toRMB54,303 million (US$7,898 million). Net income attributable to ordinary shareholders was RMB33,052 million (US$4,807 million),and net income was RMB30,964 million (US$4,504 million), representing a year-over-year increaseof 37% and 33%, respectively.Non-GAAP net income was RMB29,797 million (US$4,334 million). Diluted EPS was RMB12.64(US$1.84) and non-GAAP diluted EPS was RMB12.19 (US$1.77) cash provided by operating activities was RMB64,898 million (US$9,439 million) and non- GAAP free cash flow was RMB51,373 million (US$7,472 million). BUSINESS AND STRATEGIC UPDATESCore CommerceTaobao – robust user growth and enhanced engagement.In December 2018, our China retailmarketplaces had 699 million mobile MAUs, representing a quarterly net increase of 33 million.Annualactive consumers on our China retail marketplaces was 636 million for the 12 months ended December 31,2018, compared to 601 million for the 12 months ended September 30, 2018, reflecting successful useracquisition programs, such as referrals through the Alipay App, and is an early indicator of transactionactivity on our platforms.Over 70% of the increase in annual active consumers was from third-and-lowertier cities, demonstrating the success of our initiatives to cater to a broader base of users through simplerinterfaces for first-time or less frequent users.Ongoing enhancements in search and personalizedrecommendations on the Taobao App drove increased user engagement and purchase conversion.Tmall – extending B2C market leadership.Tmall continued to extend its B2C market leadership andconsumer wallet share.Excluding unpaid orders, Tmall physical goods GMV grew 29% year-over-year inthe quarter ended December 31, 2018, outpacing the industry and reflecting strong secular consumptiontrends.This robust growth was driven by strength in the fast-moving consumer goods (FMCG), apparel andhome furnishing categories.Our annual 11.11 Global Shopping Festival was another record-breaking event, generating RMB213.5 billionin GMV settled through Alipay on our marketplaces, up 27% year-over-year.The robust GMV growth wasdriven by an increase in the number of buyers through higher user traffic generation and improvedconversion rates.Over 40% of Chinese consumers on 11.11 made purchases from international brands, andoverseas consumers from 230 countries and regions also made purchases during the festival.This year’sGlobal Shopping Festival saw the most extensive participation and synergy creation by our business units,which this year went well beyond our China retail marketplaces, to encompass our offerings in online videoentertainment, local services, cross-border e-commerce and store-based retail.The success of the festivaldemonstrated the strength of our technology and logistics infrastructure, as well as payment and other e- commerce ecosystem partners, operating at massive scale.3 Tmall extended its leadership position as the engagement and distribution platform of choice in China forglobal brands.During the quarter, brands including Valentino, Ermenegildo Zegna, Stuart Weitzman andSergio Rossi opened Tmall flagship stores and joined the Tmall Luxury Pavilion.New Retail – redefining the future of brick-and-mortar.Our New Retail strategy is transforming thetraditional retail industry by digitizing all aspects of store-based retail operations.We enable traditionalretailers to deliver an unrivalled consumer experience and achieve operating efficiency through our consumerinsight technology, on-demand delivery, inventory tracking, supply chain management and mobile paymentsolutions.As of the end of the quarter, we have digitized approximately 470 Sun Art stores with our NewRetail know-how and technology, enabling these stores to better manage their retail systems, while allowingconsumers to place orders through the Taobao App and secure delivery through our on-demand deliveryplatform.Our proprietary grocery retail chain Freshippo (formerly Hema) continued to expand its footprint, optimizeits stores and introduce new initiatives that improve customer experience.As of December 31, 2018, therewere 109 self-operated Freshippo stores in China, primarily located in tier 1 and tier 2 cities.During thequarter, Freshippo continued to achieve robust same-store sales growth. Local consumer services – driving greater value to consumers and merchants in the local consumerservice industry.In December 2018, we combined our on-demand food delivery platform Ele.me with ourrestaurant and local service guide platform Koubei to create a discrete business that we call “local consumerservices.”This business is financed with over US$3 billion in equity capital from Alibaba, SoftBank andother third party investors.During the quarter, daily on-demand orders and GMV continued to show stronggrowth.Our local consumer services business is an important part of our consumer-facing platform, whichleverages our 636 million annual active consumers to further penetrate the local services market, increasingour ability to tap into China’s ongoing consumption upgrade.In addition, we expect that our commerceplatform technology, know-how and infrastructure will deliver consumer insights and digitized operationalsolutions to empower local merchants on the platform.Cainiao Network – facilitating enhanced delivery experiences for the continuing consumption upgradeof Chinese consumers.During the 2018 11.11 Global Shopping Festival, Cainiao processed anunprecedented over 1 billion delivery orders, demonstrating Cainiao’s capability to coordinate a complexlogistics ecosystem at massive scale.Internationally, we saw continued growth in Chinese consumerdemand for high quality imports from Japan, the United States, South Korea, Australia and Germany – thetop five countries selling into China during the festival.To ensure a smooth and timely delivery experiencefor consumers during the festival, Cainiao and its partners operated 34 bonded warehouses in major portsthroughout China to facilitate same-day or next-day delivery of overseas orders.International – building foundation for growth in Southeast Asia.During the quarter, we emphasizedstrengthening Lazada’s third-party marketplace business, which witnessed robust growth in GMV.At thesame time, we reduced exposure to direct product sales in select merchandise categories, as we believe thisstrategy will best position Lazada for sustainable and scalable long-term growth.We have upgradedLazada’s technology, which resulted in robust increase in active users and greater user engagement onLazada’s mobile app.We continue to invest resources to integrate Lazada’s business and technologyoperations into Alibaba with the aim of building a strong foundation for us to extend our offerings inSoutheast Asia.As it relates to cross-border, our priority is to meet rising demand for high-quality imported products to serveChinese consumers.At China’s inaugural Global Import Leadership Summit held in Shanghai in November,4 we announced a commitment to import US$200 billion of goods from all over the world over the next fiveyears.To this end, we expect to significantly invest in our supply chain capabilities, overseas supplierenablement, import platform operations as well as cross-border logistics.Cloud ComputingCloud computing revenue grew 84% year-over-year to RMB6,611 million (US$962 million), primarilydriven by increased spending from enterprise customers.During the December 2018 quarter, Alibaba Cloudlaunched 678 new products and features, includin