Jobaaj Stories
Chinese E-Commerce Giant Alibaba published its fourth quarter and full fiscal year results after which the shares of the company witnessed a massive jump as investor sentiment was rejuvenated.
The revenue of the group came in at RMB 204.05 billion, up 9% YoY as the company beat analysts' estimates. The estimated figures were downgraded earlier on account of the resurgence of Covid-19 and the severe steps the Chinese government was taking to implement its no covid policy.
The China Commerce segment was the major contributor to the revenues of the company as it grew 8% YoY to RMB140.3 billion. However, Local consumer services registered the greatest growth as it grew by 29% to RMB10.5 billion followed by the Cloud segment which grew by 12% to RMB18.9 billion.
Income from operations for the quarter came in at RMB16.7 billion as opposed to a loss from operations in the corresponding quarter last year, which was RMB7.7 billion. Excluding certain one-time gains and other items, income from operations would have been RMB9.8 billion.
For the full year ended on 31st March 2022, the revenue of the company came in at RMB853.1 billion, growing 19% YoY, driven by the sharp growth in revenue of the China Commerce segment growing 18% YoY to RMB592.7 billion. International commerce reported the strongest growth at 25% YoY with revenue of RMB61.1 billion.
“Looking ahead to fiscal year 2023, we will firmly focus on generating sustainable, high-quality revenue growth and optimizing our operating cost structure to enhance overall return amidst these uncertain times,” said Alibaba Group's Toby Xu, Chief Financial Officer.
The share of the Alibaba group, which is listed on both NYSE and Hong Kong. The lockdowns and other severe measures adopted by the Chinese government have reduced investors' risk appetite and led to economic slowdowns.
However, these aren't the only reasons for the share's decline. Recently, since founder Jack Ma was absent from the public eye, the news of the arrest of an individual surnamed Ma led to the stock declining 9.4%.
Moreover, Jack Ma is not on good terms with the government since Jack Ma launched Alipay. The financial payments app is reported to be a challenge to the government which controls the financial landscape of China.
The stock witnessed a 12.21% gap-up opening after the announcement of the results, one of its highest jumps in a while. It opened at HKD 91 per share and touched a high of HKD 92.4 only to close at HKD91 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
