Alibaba reported its third-quarter results for September, showing a 9% increase in revenue compared to the same quarter last year, reaching a total of 224,790 million yuan. The company also recorded a net profit of 27,706 million yuan.
During the earnings announcement, Eddie Wu, the new CEO of Alibaba, stated that the company is prepared to invest in growth, as its financial status has never been stronger. With a free cash flow of $27 billion over the past 12 months and $63 billion in cash on hand, Alibaba announced its first dividend payout to shareholders at $0.125 per ordinary share and $1.00 per ADS.
Alibaba has updated its plan to split its business into six groups, with the cloud business group being prioritized due to the impact of the technology chip exports ban to China. This might result in the cloud business of Alibaba not generating the expected returns for current shareholders as previously estimated.
Similarly, Freshippo, Alibaba’s chain supermarket, has also adjusted its IPO plan, indicating that several factors have affected the original plan. Meanwhile, Alibaba’s international digital commerce business (AIDC) will seek additional funding through VC investors, and Cainiao, the logistics business, has filed for an IPO to enter the Hong Kong stock market.
TLDR: Alibaba’s third-quarter results showed a 9% increase in revenue and a net profit of 27,706 million yuan. Eddie Wu, the new CEO, announced the company’s intent to invest in growth, supported by its strong financial position. Alibaba plans to split its business into six groups, prioritizing the cloud business due to the technology chip exports ban. Changes to IPO plans have also been made for Freshippo and Cainiao.
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