On August 20, Alibaba Group (09988.HK) released its financial results for the first quarter of fiscal year 2027. During the analyst conference call, Group CEO Wu Yongming highlighted that the advent of AI Agents has directly spurred demand for Tokens and GPU computing capacity, while also significantly driving up the need for traditional cloud services, including CPU computing power, storage, databases, and networking. Alibaba Cloud is currently undergoing a comprehensive transformation to evolve into an Agentic Cloud. According to the latest August data, the annual recurring revenue (ARR) from services such as model and application services (MaaS) has surpassed RMB 16 billion. Based on current market trends and contract orders, demand for computing capacity is projected to continue outpacing supply. With ongoing enhancements in supply capabilities, revenue growth in the AI and cloud sectors is expected to accelerate further in the coming quarters, with profitability also set to improve.