2022 – Alibaba records steady revenue growth for the first time

Shares of the Chinese technology and e-commerce giant rose more than 6% in premarket trading in New York on Thursday. Its Hong Kong stock had previously closed 5.2% lower.

The blast came even though the company reported revenue of nearly 205.6 billion yuan (about $30.4 billion) for the quarter ending in June, the same as it reported at the same time last year.

But this beat analysts’ expectations, and net income also came in better than expected at 22.7 billion yuan ($3.4 billion).

Ali Baba (Baba)Which owns the hugely popular online shopping platforms Taobao and Tmall, was not immune to the economic pain of the Covid-19 lockdowns across China earlier this year.

The company said retail sales slumped in April and May, especially as Shanghai and other major Chinese cities grapple with crippling epidemic restrictions that have halted consumer demand and caused logistical nightmares.

CEO Daniel Chang said that since June, the business has rebounded, especially “with the logistical situation and supply chain gradually improving after the easing of Covid restrictions.”

Speaking on the phone Thursday, Zhang said the company has seen signs of recovery in categories such as fashion and electronics, which have been hit hard previously.

Although growth has virtually stalled, Zhang tried to turn the recent results around nicely, noting that the company had overcome “weak economic conditions” in order to “make stable profits.”

But he warned of a bumpy road ahead and pointed to broader economic risks.

“External uncertainties, including but not limited to international geopolitical dynamics, COVID resurgence and China’s macroeconomic policies and social trends, are beyond what we can control as a company,” Zhang told analysts.

“The only thing we can do now is focus on improvement,” he said, adding that Alibaba has focused on containing losses in businesses such as supermarkets and food suppliers.

But Alibaba has faced bigger questions lately, especially after it was placed on a major watchlist of the Securities and Exchange Commission last Friday. Similar to other Chinese companies, the move risks driving the tech giant off Wall Street if US auditors cannot fully audit its financial statements.

Alibaba shares jump after the announcement of the initial listing in Hong Kong

Alibaba has always had a major listing in New York, where its shares have been trading since a massive initial public offering in 2014.

Now it looks like she’s spreading her bets. Last week, the company announced plans to upgrade its secondary Hong Kong listing to a primary listing. The change could happen by the end of this year and would give more mainland Chinese investors access to stocks.

It comes as one of Alibaba’s biggest longtime supporters is stepping down.

The Financial Times reported on Thursday SoftBank (SFTBF) She sold “more than half” of her holdings in the Chinese company, citing forward-sale filings seen by the newspaper.

SoftBank did not immediately respond to a request for comment.

Source site 40

Leave a Reply

Your email address will not be published. Required fields are marked *