Chinese tech giant Alibaba posts 5 percent quarterly revenue growth

Chinese tech and e-commerce giant Alibaba on
Friday reported moderate revenue growth of five percent in its latest quarter,
as Beijing works to stimulate domestic spending.

The Hangzhou-based firm operates some of China’s most widely used online
shopping platforms, making its performance a bellwether for consumer sentiment.

Alibaba’s revenue during the three-month quarter ending September 30
totalled 236.5 billion yuan (32.7 billion dollars), the firm announced in a statement
at the Hong Kong Stock Exchange, up five percent from a year ago.

“Our revenue growth this quarter was driven by improving monetisation of
Taobao and Tmall Group… consistent with our strategy, we continue to invest
in our core businesses while enhancing operational efficiency,” said Alibaba’s
Chief Financial Officer Toby Xu.

But the figure came in lower than a Bloomberg forecast, which had
anticipated year-on-year revenue growth of 6.5 percent.

Net income attributable to shareholders was at 43.9 billion yuan (6.1
billion dollars), up 58 percent from the same period in 2023.

The latest filing caps off a week that saw signs of rebounding consumption
in China, including robust showings in the annual “Singles Day” shopping
bonanza and October retail sales growth that was the fastest since February.

Alibaba and its major domestic competitor JD.com both announced strong
performances on this year’s Singles Day, though they withheld detailed sales
totals.

JD.com posted accelerated third-quarter growth in a filing on Thursday,
with revenue up 5.1 percent from the previous year.

The latest data and results are encouraging signs for Beijing, which has in
recent weeks unveiled some of its most aggressive moves in years aimed at
stimulating activity.

The new policies have included a debt swap programme to ease the burden on
local governments, mortgage rate cuts and the elimination of certain
restrictions on home purchases.

Alibaba — founded by entrepreneur Jack Ma in 1999 — launched the biggest
restructuring in its history last year, splitting the group into six distinct
entities and replacing CEO Daniel Zhang.

The reorganisation came after several years of turbulence in China’s tech
sector as authorities cracked down on what was formerly a loosely regulated
industry.

Uncertainty about the firm’s future development has persisted ever since
top leaders in Beijing scuttled a planned IPO of its financial services arm,
Ant Group, in 2020.(AFP)