China's Alibaba boosts sales and profits despite crackdown

China’s Alibaba boosts sales and profits despite crackdown

By

Beijing: Although the Chinese e-commerce giant is within the sight of the authorities, Alibaba’s sales and profits have jumped in the last three months of 2020.

In November last year, Chinese authorities cancelled the huge Hong Kong IPO of Alibaba’s online payment subsidiary Ant Group.

On Tuesday, the company based in the eastern city of Hangzhou said it was “fully cooperating” with the investigation by the State Administration for Market Regulation.

Despite the pressure from Chinese authorities, Alibaba benefited from economic activity and online spending accelerating in China.

In the third quarter of its staggered fiscal year, the Wall Street-listed group reported a profit of 79 billion yuan ($12.2 billion), a 52 percent increase year-on-year.

That came after a fall of 60 percent in the previous quarter, and the pace of the increase remains much smaller than the quadrupling of profit it recorded in the final three months of 2019.

Sales from October to December increased 37% year-on-year to RMB 221.1 billion, exceeding the expectations of analysts surveyed by Bloomberg, who expects revenue to increase by 33%.

Group CEO Daniel Zhang said in a statement: “Due to the rapid recovery of the Chinese economy, Alibaba has another very healthy quarter.”

You may also like