Revenue for the quarter ended June 30 was 234.16 billion Chinese yuan ($32.29 billion); a 14% year-on-year rise that beat Wall Street earnings estimates of 224.92 billion Chinese yuan.

The eCommerce giant’s main business, Taobao and Tmall Group, saw a 12% annual rise in sales 114.95 billion yuan. This was largely driven by the use of the company’s Taobao app, with usage rising by 6.5% from the previous year.

International markets have also played a major role in Alibaba’s revenue growth, particularly as the Chinese economy continues to stagnate in its post-pandemic rebound. Alibaba’s Cainiao logistics business, driven by international business, saw its revenue rise by 34% to 23.16 billion yuan during the three months ending June 30.

The post Alibaba Stock Rises Following Earnings Report appeared first on theprimarymarket.com.

The Chinese eCommerce giant reported revenue of 208.20 billion yuan ($30.12 billion) for the first three months of 2023, narrowly falling short of a Refinitiv consensus estimate of 210.3 billion yuan drawn from 26 analysts. Still, the company’s first-quarter revenue is a 2% rise from the previous quarter.

Net income from the period that was attributable to ordinary shareholders was 23.52 billion yuan; compared with a loss of 16.24 billion yuan.

China’s consumer spending continues to remain low following the abolishment of the country’s zero-COVID policies late last year, with the country exhibiting a slower economic recovery than was initially expected.

In an effort to capture new market share, Alibaba approved a full spinoff of the Cloud Intelligence Group, which is expected to be completed within the next 12 months. It is set to take the form of a stock dividend distribution to shareholders.

In addition, Finance Chief Toby Xu announced that the company’s board has approved the process for external financing for Alibaba International Digital Commerce Business Group as well as the launch of an IPO for Freshippo and the exploration of an IPO for Cainiao Smart Logistics Group.

The post Alibaba Misses Quarterly Estimate, Approves New Cloud-Computing Unit appeared first on theprimarymarket.com.

SoftBank has long been looking to monetize its stake in Alibaba, having bought its stake in the company two decades ago for $20 million. “They (SoftBank) have been clear that … they need to monetise profitable holdings,” Jon Withaar, head of Asia special situations at Pictet Asset Management noted.

Valuations of Chinese big tech firms have been recovering this year after a two-year slump which included heightened regulatory scrutiny. This has provided a window for investors such as SoftBank to sell their shares, thereby pulling out of an economy rocked by strict pandemic policies and Sino-U.S. tension.

The Japanese firm’s decision follows a recent trend that saw Tencent Holdings Ltd’s stock fall by 5.2% when its top shareholder, Netherlands’ Prosus NV, decided to sell more of its shares in the social media giant.

The post Softbank to Sell All of its Alibaba Shares appeared first on theprimarymarket.com.

This is the biggest restructuring in Alibaba’s history and follows China’s decision to encourage the growth of the country’s private sector. According to the company’s Chief Executive Daniel Zhang, the split will allow Alibaba to run more efficiently and adapt better to market changes.

“The original intention and fundamental purpose of this reform isto make our organisation more agile, shorten decision making links and respond faster,” Zhang said in a letter to staff, according to Reuters.

Each unit will have its own CEO as well as a board of directors. The intention is to keep them flexible in pursuing independent fundraising while laying out the foundation to explore an initial public offering (IPO). Only the Taobao Tmall Commerce Group, which will oversee online shopping platforms Taobao and Tmall, will remain fully owned by the company.

Shortly after the split was announced, the U.S.-listed Alibaba stock saw a moderate jump. The shares were 13.11 percent up at one point on Wednesday, trading at $97.41 per share. The stock is close to six percent up year-to-date.

The post Alibaba Announces Split in 6 Units, Its U.S. Listed Stocks Rise appeared first on theprimarymarket.com.

The company’s stock rise comes after it received approval for its fundraising plan for its Ant Group Co. business from Chinese regulators. This development has instilled hope in investors that China’s regulatory clampdown on internet-based businesses may finally be cooling down.

Competitors JD.com Inc. and Pinduoduo Inc. both advanced by over 6% during Wednesday’s session, with the Nasdaq Golden Dragon Index gaining over 5% to rise to its highest level in approximately four months.

Regulators approved a plan submitted by Alibaba CEO Jack Ma to raise 10.5 billion yuan ($1.5 billion) for its consumer unit. This notion indicates a warming of relations between Chinese regulators and the nation’s tech giants whereby officials have now placed economic growth as a national priority.

Following Wednesday’s growth, the Hang Seng China Enterprises Index, which tracks a group of leading Hong Kong-listed Chinese stocks, finished the day at its highest level since July.

The post Alibaba Leads Stock Rally Following Regulatory Approval appeared first on theprimarymarket.com.

Alibaba is one of the most profitable retail companies in the entire world. Not unlike online retail shopping tycoons such as Amazon, Alibaba has been a major player in the industry for as long as avid online shoppers can remember.

However, as successful as they’ve been, there were a few setbacks that threw Alibaba executives off guard. In June of this year, the company’s revenue slid for the first time ever—a shocking and impressive statistic. But as impressive as it was, it gave higher-ups within the company reason to worry.

Analysts wondered whether or not this slip was indicative of something larger, and whether things were about to get a whole lot worse. But if the recent report is any indication, it looks like they’ll be just fine for the time being.

In any case, fiscal experts of the company will surely be on heavy watch for the foreseeable future.

The post Recent Alibaba Sales Better Than Anticipated appeared first on theprimarymarket.com.

Revenue for the quarter ended June 30 was 234.16 billion Chinese yuan ($32.29 billion); a 14% year-on-year rise that beat Wall Street earnings estimates of 224.92 billion Chinese yuan.

The eCommerce giant’s main business, Taobao and Tmall Group, saw a 12% annual rise in sales 114.95 billion yuan. This was largely driven by the use of the company’s Taobao app, with usage rising by 6.5% from the previous year.

International markets have also played a major role in Alibaba’s revenue growth, particularly as the Chinese economy continues to stagnate in its post-pandemic rebound. Alibaba’s Cainiao logistics business, driven by international business, saw its revenue rise by 34% to 23.16 billion yuan during the three months ending June 30.

The post Alibaba Stock Rises Following Earnings Report appeared first on theprimarymarket.com.

The Chinese eCommerce giant reported revenue of 208.20 billion yuan ($30.12 billion) for the first three months of 2023, narrowly falling short of a Refinitiv consensus estimate of 210.3 billion yuan drawn from 26 analysts. Still, the company’s first-quarter revenue is a 2% rise from the previous quarter.

Net income from the period that was attributable to ordinary shareholders was 23.52 billion yuan; compared with a loss of 16.24 billion yuan.

China’s consumer spending continues to remain low following the abolishment of the country’s zero-COVID policies late last year, with the country exhibiting a slower economic recovery than was initially expected.

In an effort to capture new market share, Alibaba approved a full spinoff of the Cloud Intelligence Group, which is expected to be completed within the next 12 months. It is set to take the form of a stock dividend distribution to shareholders.

In addition, Finance Chief Toby Xu announced that the company’s board has approved the process for external financing for Alibaba International Digital Commerce Business Group as well as the launch of an IPO for Freshippo and the exploration of an IPO for Cainiao Smart Logistics Group.

The post Alibaba Misses Quarterly Estimate, Approves New Cloud-Computing Unit appeared first on theprimarymarket.com.

SoftBank has long been looking to monetize its stake in Alibaba, having bought its stake in the company two decades ago for $20 million. “They (SoftBank) have been clear that … they need to monetise profitable holdings,” Jon Withaar, head of Asia special situations at Pictet Asset Management noted.

Valuations of Chinese big tech firms have been recovering this year after a two-year slump which included heightened regulatory scrutiny. This has provided a window for investors such as SoftBank to sell their shares, thereby pulling out of an economy rocked by strict pandemic policies and Sino-U.S. tension.

The Japanese firm’s decision follows a recent trend that saw Tencent Holdings Ltd’s stock fall by 5.2% when its top shareholder, Netherlands’ Prosus NV, decided to sell more of its shares in the social media giant.

The post Softbank to Sell All of its Alibaba Shares appeared first on theprimarymarket.com.

This is the biggest restructuring in Alibaba’s history and follows China’s decision to encourage the growth of the country’s private sector. According to the company’s Chief Executive Daniel Zhang, the split will allow Alibaba to run more efficiently and adapt better to market changes.

“The original intention and fundamental purpose of this reform isto make our organisation more agile, shorten decision making links and respond faster,” Zhang said in a letter to staff, according to Reuters.

Each unit will have its own CEO as well as a board of directors. The intention is to keep them flexible in pursuing independent fundraising while laying out the foundation to explore an initial public offering (IPO). Only the Taobao Tmall Commerce Group, which will oversee online shopping platforms Taobao and Tmall, will remain fully owned by the company.

Shortly after the split was announced, the U.S.-listed Alibaba stock saw a moderate jump. The shares were 13.11 percent up at one point on Wednesday, trading at $97.41 per share. The stock is close to six percent up year-to-date.

The post Alibaba Announces Split in 6 Units, Its U.S. Listed Stocks Rise appeared first on theprimarymarket.com.

The company’s stock rise comes after it received approval for its fundraising plan for its Ant Group Co. business from Chinese regulators. This development has instilled hope in investors that China’s regulatory clampdown on internet-based businesses may finally be cooling down.

Competitors JD.com Inc. and Pinduoduo Inc. both advanced by over 6% during Wednesday’s session, with the Nasdaq Golden Dragon Index gaining over 5% to rise to its highest level in approximately four months.

Regulators approved a plan submitted by Alibaba CEO Jack Ma to raise 10.5 billion yuan ($1.5 billion) for its consumer unit. This notion indicates a warming of relations between Chinese regulators and the nation’s tech giants whereby officials have now placed economic growth as a national priority.

Following Wednesday’s growth, the Hang Seng China Enterprises Index, which tracks a group of leading Hong Kong-listed Chinese stocks, finished the day at its highest level since July.

The post Alibaba Leads Stock Rally Following Regulatory Approval appeared first on theprimarymarket.com.

Alibaba is one of the most profitable retail companies in the entire world. Not unlike online retail shopping tycoons such as Amazon, Alibaba has been a major player in the industry for as long as avid online shoppers can remember.

However, as successful as they’ve been, there were a few setbacks that threw Alibaba executives off guard. In June of this year, the company’s revenue slid for the first time ever—a shocking and impressive statistic. But as impressive as it was, it gave higher-ups within the company reason to worry.

Analysts wondered whether or not this slip was indicative of something larger, and whether things were about to get a whole lot worse. But if the recent report is any indication, it looks like they’ll be just fine for the time being.

In any case, fiscal experts of the company will surely be on heavy watch for the foreseeable future.

The post Recent Alibaba Sales Better Than Anticipated appeared first on theprimarymarket.com.