Alibaba promises cooperation with antitrust probe, Ant Group rectification plan as quarterly revenue rises 37 per cent

The quarterly gain was partly attributed to Alibaba’s latest Singles’ Day shopping campaign, which generated record-high sales of US$74.1 billion

Alibaba’s positive December quarter results come more than a month after the government launched its antitrust investigation

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An employee exits the campus of Alibaba Group Holding’s headquarters in Hangzhou, in eastern China’s Zhejiang province, on January 20, 2021. Photo: Bloomberg

Published: 8:10pm, 2 Feb 2021Updated: 10:56am, 3 Feb 2021

Alibaba Group Holding reported a 37 per cent surge in revenue for the quarter ended December, boosted by its extended Singles’ Day campaign last year, as the e-commerce giant pursues closer cooperation with Chinese authorities in their investigation of its alleged monopolistic practices.

“As a China retail marketplace connecting hundreds of millions of consumers and millions of merchants in transactions valued at trillions of yuan, we have a deep appreciation of the significant social and public responsibilities of operating our platform,” said Daniel Zhang Yong, chairman and chief executive of Alibaba, in a conference call with analysts on Tuesday after the firm reported its latest financial results.

On Ant Group’s dual listing in Shanghai and Hong Kong, Zhang said the recent significant change in China’s financial technology regulatory environment means that the Alibaba affiliate’s “business prospects and IPO plans are subject to substantial uncertainties”.

“Currently, we are unable to make a complete and fair assessment of the impact that these changes and uncertainties will have on Alibaba Group,” he said. “We will update the market once Ant Group has completed the relevant regulatory procedures for its rectification plan.”

“Although the changing regulatory landscape applicable to fintech and internet platform companies presents near-term challenges to Alibaba, we regard them as important opportunities for reassessing and improving our business practices,” Zhang added.

A giant screen shows the final tally of US$74.1 billion in gross merchandise volume for Alibaba Group Holding’s extended Singles’ Day campaign last year, as the e-commerce giant wrapped up its latest round of promotions on November 12. Photo: Xinhua

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