Alibaba projects 500 billion yuan in annual revenue amid escalation in US-China trade war

Chinese e-commerce giant Alibaba Group Holding projected that its annual revenue will surpass 500 billion yuan (US$72.7 billion) this financial year, despite a trade war between the US and China.

The New York-listed company said its revenue rose 39 per cent to 376.8 billion yuan (US$54.7 billion) for the 12-month period ended March, excluding newly consolidated revenue, according to a company statement. Non-GAAP net income, which excludes valuation gains, was 93.4 billion yuan.

Alibaba’s financial results were announced as the US and China continued to pursue a resolution to their ongoing trade dispute.

China announced tariffs ranging from 5 to 25 per cent on US$60 billion of US goods to be implemented on June 1, in response to US President Donald Trump’s 25 per cent tariffs on US$200 billion of Chinese imports effective last Friday. The US has also pledged to impose tariffs of up to 25 per cent on all remaining Chinese imports, with an approximate total annual trade value of US$300 billion.

“The US trade war has become both a challenge and an opportunity for China’s economy,” Daniel Zhang Yong, chief executive of Alibaba, said in a conference call with analysts on Wednesday. “Looking into the future, China will transform from an export-driven economy to a consumption-driven economy.”