v3.26.1
Fair value measurement
 12 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair value measurement
12.
Fair value measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

 

Level 1 —

Valuations based on unadjusted quoted prices for identical assets and liabilities in active markets.

Level 2 —

Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 —

Valuations based on unobservable inputs reflecting assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

 

12.
Fair value measurement (Continued)

Fair value of listed equity investments are based on quoted prices in active markets for identical assets or liabilities and, if applicable, are adjusted for the characteristic included in the equity security. The valuation of unlisted equity investments that do not have a quoted price may include the use of market and income valuation approaches and the use of estimates, which may include discount rates, investees’ liquidity and financial performance, and market data of comparable companies in similar industries. Certain other financial instruments, such as interest rate swap contracts and certain option and forward agreements, are valued based on inputs derived from or corroborated by observable market data. Valuations of investments in convertible and exchangeable bonds that do not have a quoted price are generally performed using valuation models such as the binomial model with unobservable inputs including risk-free interest rate and expected volatility. The valuation of the exchangeable bonds is primarily determined based on quoted market price in the over-the-counter market. The valuation of contingent consideration is performed using an expected cash flow method with unobservable inputs including the probability to achieve the contingencies, which is assessed by the Company, in connection with the contingent consideration arrangements. Investments in privately held companies for which the Company elected to record using the measurement alternative are remeasured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are estimated based on valuation methods using the observable transaction price at the transaction date and considering the rights and obligations of the securities and other unobservable inputs including volatility.

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized under the fair value hierarchy:

 

 

As of March 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificate of deposits (i)

 

 

—

 

 

 

357,569

 

 

 

—

 

 

 

357,569

 

Wealth management products (i)

 

 

—

 

 

 

83,144

 

 

 

—

 

 

 

83,144

 

Marketable debt securities (i)

 

 

—

 

 

 

16,129

 

 

 

—

 

 

 

16,129

 

Restricted cash and escrow receivables

 

 

43,781

 

 

 

—

 

 

 

—

 

 

 

43,781

 

Listed equity securities (ii)

 

 

67,712

 

(v)

 

9,918

 

 

 

—

 

 

 

77,630

 

Convertible and exchangeable bonds (ii)

 

 

—

 

 

 

145

 

 

 

818

 

 

 

963

 

Option and forward agreements (iii)

 

 

—

 

 

 

87

 

 

 

814

 

 

 

901

 

Deferred consideration (iii)

 

 

—

 

 

 

—

 

 

 

3,039

 

 

 

3,039

 

Others (vi)

 

 

—

 

 

 

1,329

 

 

 

6,047

 

 

 

7,376

 

 

 

111,493

 

 

 

468,321

 

 

 

10,718

 

 

 

590,532

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration in relation to
   investments and acquisitions (iv)

 

 

—

 

 

 

—

 

 

 

484

 

 

 

484

 

Others (iv)

 

 

—

 

 

 

389

 

 

 

924

 

 

 

1,313

 

 

 

—

 

 

 

389

 

 

 

1,408

 

 

 

1,797

 

 

12.
Fair value measurement (Continued)

 

 

As of March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificate of deposits (i)

 

 

—

 

 

 

244,844

 

 

 

—

 

 

 

244,844

 

Wealth management products (i)

 

 

—

 

 

 

81,501

 

 

 

—

 

 

 

81,501

 

Marketable debt securities (i)

 

 

—

 

 

 

64,311

 

 

 

—

 

 

 

64,311

 

Restricted cash and escrow receivables

 

 

42,038

 

 

 

—

 

 

 

—

 

 

 

42,038

 

Listed equity securities (ii)

 

 

95,318

 

(v)

 

5,276

 

 

 

—

 

 

 

100,594

 

Convertible and exchangeable bonds (ii)

 

 

—

 

 

 

—

 

 

 

2,989

 

 

 

2,989

 

Option and forward agreements (iii)

 

 

—

 

 

 

1,159

 

 

 

1,127

 

 

 

2,286

 

Deferred consideration (iii)

 

 

—

 

 

 

—

 

 

 

3,019

 

 

 

3,019

 

Others (vi)

 

 

—

 

 

 

3,794

 

 

 

4,081

 

 

 

7,875

 

 

 

 

137,356

 

 

 

400,885

 

 

 

11,216

 

 

 

549,457

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Exchangeable bonds

 

 

—

 

 

 

10,976

 

 

 

—

 

 

 

10,976

 

Contingent consideration in relation to
   investments and acquisitions (iv)

 

 

—

 

 

 

—

 

 

 

408

 

 

 

408

 

Others (iv)

 

 

—

 

 

 

2,955

 

 

 

609

 

 

 

3,564

 

 

 

 

—

 

 

 

13,931

 

 

 

1,017

 

 

 

14,948

 

 

(i)
Included in short-term investments and equity securities and other investments on the consolidated balance sheets.
(ii)
Included in equity securities and other investments on the consolidated balance sheets.
(iii)
Included in prepayments, receivables and other assets on the consolidated balance sheets.
(iv)
Included in accrued expenses, accounts payable and other liabilities on the consolidated balance sheets.
(v)
As of March 31, 2025 and 2026, listed equity securities with fair value of RMB11,921 million and RMB41,800 million were subject to contractual sale restrictions, respectively. The contractual sale restrictions would lapse within twelve months from March 31, 2026.
(vi)
Others primarily represent other investments with underlying assets measured at fair value.

Convertible and exchangeable bonds investments categorized within Level 3 under the fair value hierarchy:

 

 

 

Amounts

 

 

RMB

 

 

 

(in millions)

 

Balance as of March 31, 2024

 

 

3,197

 

Additions

 

 

311

 

Net increase in fair value

 

 

63

 

Disposal

 

 

(1,767

)

Conversion

 

 

(985

)

Foreign currency translation adjustments

 

 

(1

)

Balance as of March 31, 2025

 

 

818

 

Additions

 

 

2,343

 

Net increase in fair value

 

 

73

 

Disposal

 

 

(112

)

Conversion

 

 

(61

)

Foreign currency translation adjustments

 

 

(72

)

Balance as of March 31, 2026

 

 

2,989

 

 

12.
Fair value measurement (Continued)


Deferred consideration categorized within Level 3 under the fair value hierarchy:

 

 

 

Amounts

 

 

 

RMB

 

 

 

(in millions)

 

Balance as of March 31, 2024

 

 

—

 

Additions

 

 

3,022

 

Net increase in fair value

 

 

14

 

Foreign currency translation adjustments

 

 

3

 

Balance as of March 31, 2025

 

 

3,039

 

Net increase in fair value

 

 

40

 

Foreign currency translation adjustments

 

 

(60

)

Balance as of March 31, 2026

 

 

3,019