Alibaba’s profit jumps 63%

Hangzhou, 15th November: Last week, the Alibaba Group, one of China’s leading e-commerce companies, released its financial results for the quarter ended 30th September 2024. The company recorded total revenues of US$34 billion, up 5% year-on-year. Alibaba posted an increase of 63% in its net profit, reaching US$6.2 billion.

Revenues from Alibaba’s B2B business in China under its Taobao and Tmall Group, primarily generated through 1688.com, were US$853 million, representing an increase of 18% year-on-year. Revenues from its international B2B business under its Alibaba International Digital Commerce Group, primarily operating through Alibaba.com, increased by 9%, amounting to US$863 million.

The group also released its financial results for the six months ended 30th September, generating revenues of US$68 billion, an increase of 5% year-on-year. Net profit in the six-month period grew by 13%, amounting at US$9.6 billion. Diluted earnings per share in the first half of the financial year were RMB 28 (US$3.99).

In terms of B2B business, revenues from Alibaba’s China B2B business rose 17% year-on-year, reaching US$1.70 billion. While revenues from its international B2B business were US$1.66 billion, up 11% from the same period in the previous year.

Eddie Wu, Chief Executive Officer of Alibaba Group, was quoted, “This quarter we continued to invest in the user experience and strengthen product offerings to serve our consumers. We entered into long-term collaborations with industry peers to broaden payment and logistics services on Taobao and Tmall platforms, which we expect will accelerate our overall growth. Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth. Our other businesses continued to improve their operating efficiency, with most of them continuing to increase their profitability or reduce losses.”

Separately, Alibaba has established Alibaba E-commerce Business Group, integrating of Taobao and Tmall Group, Alibaba International Digital Commerce Group, the 1688 Marketplace, Idle Fish and others, covering domestics and international supply chains. The company has also appointed Mr. Fan Jiang as Chief Executive Officer of the new business group.