Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Mr. Air, Wa Pure Water, Yang Sile's beauty secret, Darren123 clue delivery! CTOnews.com March 28 news, today, Alibaba Group Chairman and Chief Executive Officer Zhang Yong issued a full letter "only self-change, can create the future", to start a new round of corporate governance reform.

According to the plan, under Alibaba Group, six major business groups and a number of business companies will be set up, including Aliyun Intelligence, Taobao Tmall Commerce, Local Life, Cainiao, International Digital Commerce, and Great Entertainment. According to reports, each business company will form an organizational formation with the parent company, and will retain the possibility of independent financing and listing.

The business group and the business company will set up a board of directors respectively to implement the CEO responsibility system under the leadership of the board of directors of each business group and business company, while Alibaba Group will fully implement the management of the holding company.

According to the full letter, while serving as chairman and CEO of Alibaba Group, Zhang Yong served as CEO; of Aliyun Intelligence Group, Dishan of Taobao Tmall Commercial Group, Yu Yongfu of Taobao Tmall Commercial Group, CEO; Wan Lin of Local Life Group, Jiang Fan of Cainiao Group, Fan Luyuan of International Digital Business Group, and CEO of Great Entertainment Group.

The organizational governance reform was initiated by Zhang Yong and has been unanimously approved by the group partners and the board of directors. This round of change, starting from the top of the group, redefines and reconstructs the governance relationship between Alibaba Group and various businesses, which is considered to be "the most important organizational change of Alibaba in the past 24 years."

Alibaba's share price rose to nearly 8 per cent in pre-market trading in the US as of CTOnews.com.

The original letter from Alibaba is attached to CTOnews.com:

Only through self-reform can we create the future-- the decision on the change of organizational governance of Alibaba Group.

Dear Ali,

As we enter the new financial year, first of all, I would like to thank you for your consistent efforts and contributions in the face of many new challenges over the past year.

Self-change is always the best choice to maintain the original mind and create the future. Since its establishment in 1999, Alibaba has been constantly evolving and iterating in innovation and change, always using the advanced nature of production relations to drive the release of advanced productive forces, create value and lead development. Today, we will also usher in the most important organizational change in the 24 years since Alibaba was founded.

Today's Alibaba has grown into a multi-business, multi-format super-large organization with different business characteristics, different market environments, different customers, and different stages of development. At the beginning of the new financial year, we fully respond to the country's call to "fight for the economy" and take active action to help small and medium-sized enterprises upgrade digitally and build a modern commercial digital infrastructure. To promote the development of productive forces and create differences, we must first start with the change of production relations, and the change must start from the top of the group.

Eight years ago, in 2015, the Group comprehensively put forward the China-Taiwan strategy, forming an One Company under the governance model of "large, medium and small foreground". Since 2020, the Group has actively advocated the creation of agile organizations and the implementation of the business responsibility system under the diversified governance structure. at present, a number of independent loop companies have been set up. Today, on this basis, we will further deepen the reform and move towards a new stage of organizational governance-- to build a "1x 6N" organizational structure, that is, under Alibaba Group, set up six major business groups and several business companies, including Aliyun Intelligence, Taobao Tmall Commerce, Local Life, Cainiao, International Digital Commerce and Great Entertainment, and set up the boards of directors of each business group and business company respectively. Implement the CEO responsibility system under the leadership of the board of directors of various business groups and business companies, and take overall responsibility for their respective operating results. The specific plans are as follows:

Set up Cloud Intelligence Group, and I am also CEO.

Set up Taobao Tmall Business Group, with Dai Shan (Su Quan) as CEO

Set up a local life group, with Yu Yongfu as CEO

Wan Lin continues to serve as CEO of Cainiao Group.

Set up an international digital business group, Jiang Fan was appointed CEO

Set up a large entertainment group, Fan Luyuan (Mu Huali) as CEO.

In addition, other qualified business organizations will set up a number of business companies to fully implement corporate management.

The original intention and fundamental purpose of this change is to make the organization agile, make the decision link shorter, and make the response faster. After this adjustment, in addition to meeting the compliance requirements of listed companies, the middle and back-end functional departments of Alibaba Group will be light and thin in an all-round way, and the group will fully implement the management of holding companies. The middle and backstage capabilities we have accumulated over the years will enter the relevant business groups and companies in an orderly manner and continue to play an important role in the development of the foreground business. The shared back-end services necessary for multiple business groups and companies will be provided through the model of professional services companies. I would also like to express my special thanks to the background team in the group for their hard work over the past eight years. It is precisely because of your valuable precipitation that we have a solid foundation for implementing this change.

Facing the future, every business group and company must actively face the rapid changes of the market and the rapid development of technology, form their own development strategies, make rapid decisions, strive to forge ahead, have the courage to innovate, and face the test of the market. Every Ali, no matter which business group or business company you are in, must return to the state of an entrepreneur and start again, accept the baptism of the market with his own passion and strength, and create his own tomorrow. We believe that the market is the best touchstone, in the future, qualified business groups and companies, will have the possibility of independent financing and listing.

Changes in the market never stop, a new generation of technology wave continues to emerge, do not embrace change will become ossified, do not change itself will be defeated by the times. When the water hammer is three thousand miles, 24-year-old Ali is ushering in a new opportunity for development. We have the courage and sense of mission to change, as well as the ability and courage to change. If you want to be a good company that has lived for 102 years, if you want to insist that there is no difficult business in the world, you must always be self-driven, you must have the courage to change yourself, and you must stick to the road of self-change.

The future belongs to those who are more determined, more agile and more embracing the future!

Chairman and Chief Executive Officer of Alibaba Group

Zhang Yong (Xiaoyaozi)

March 28, 2023

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