Summary by Moomoo AI
Alibaba Group Holding Limited, the Cayman Islands-incorporated company, has responded to the U.S. Securities and Exchange Commission (SEC) regarding comments on its annual report for the fiscal year ended March 31, 2023. The response, dated January 17, 2024, addresses the SEC's December 18, 2023, letter which raised questions about Alibaba's financial disclosures. Alibaba has undergone a significant reorganization, creating six major business groups, which has led to updated segment reporting. The SEC's inquiries included requests for Alibaba to separately quantify advertising and commission revenues and to provide more detailed explanations of the factors affecting its financial results. Alibaba maintains that a separate presentation of these revenues would not offer additional insight into business trends. The company has also provided additional information on the impact of governmental ownership in its subsidiaries and confirmed that its corporate documents do not contain any charter of the Chinese Communist Party. Alibaba's response includes proposed revisions to its financial disclosures to better quantify and explain changes in its revenues and expenses.