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Alibaba
Tech

Alibaba posts 42 per cent gain in quarterly revenue, defying slowdown in China

  • China’s largest e-commerce company saw its latest quarterly revenue reach US$16.7 billion amid the domestic economy’s slowdown
  • Net income jumped 145 per cent to US$3.1 billion

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Alibaba Group Holding, China’s biggest e-commerce company, posted a 42 per cent increase in revenue in its latest quarterly results. Photo: Reuters
Zen Soo
Alibaba Group Holding beat estimates to report a 42 per cent revenue increase in the quarter ended June 30 amid signs of strain in China’s economy from the protracted trade war with the US.
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New York-listed Alibaba on Thursday posted better-than-expected revenue of 114.9 billion yuan (US$16.7 billion) in its fiscal first quarter, up from 80.9 billion yuan a year ago, driven by an increase in annual active customers on its China retail platforms. Net income jumped 145 per cent to 21.3 billion yuan in the same quarter.

“Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience,” said Daniel Zhang Yong, chief executive of Alibaba, in a statement. “With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally.”

The e-commerce giant’s financial results are seen by many investors as a proxy for consumer spending in China and an important barometer of its economic health. Most of the company’s revenue is generated from its home market, which allows it to be fairly insulated from disruptions in international trade.

Alibaba’s revenue growth for the quarter comes as China’s online retail sales jumped 16.8 per cent in the first seven months of this year, according to data from the National Bureau of Statistics.

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