- AFP
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Chinese e-commerce leader Alibaba said
Thursday that net profit increased 58 percent in the latest quarter, citing
another record “Single’s Day” sales promotion in November and growth in cloud
computing.
Net profit reached 52.3 billion yuan (7.5 billion dollars) in the October-December
third quarter.
Alibaba dominates China’s consumer culture and its corporate results are
widely anticipated for signs that a worsening Chinese economic slowdown and
the US-China trade tussle were turning off shoppers.
Revenue growth, the key measure of the company’s business health, continued
a gradual slowdown.
Overall company revenues reached 38 percent, compared to 41 percent in the
same period last year.
Analysts note, however, that it would be difficult for Alibaba to maintain
past growth rates forever, and that consumption should remain solid in the
future — facilitated by factors including technology and the government’s
push to encourage domestic consumption as an economic driver.
Alibaba is transitioning to a new era and a leadership team led by CEO
Daniel Zhang after charismatic founder Jack Ma stepped aside as group leader
in September in a succession years in the making.
Analysts predict that the Chinese internet economy could emerge even more
solid due to the ongoing coronavirus crisis, which is expected to boost
e-commerce at the expense of traditional retail outlets as shoppers avoid
stores.
Chinese shoppers set new records for spending during the annual “Singles’
Day” buying spree on November 11, which typically dominates earnings in the
quarter.
Consumers spent 38.3 billion dollars on Alibaba platforms in the world’s biggest
24-hour shopping event, up 26 percent from the previous all-time high mark set
the previous year.
US-listed Alibaba in late November raised billions more in a second listing
on Hong Kong’s stock exchange. (AFP)
