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Chinese e-commerce leader Alibaba Group said on Thursday that its profit for the most recent quarter tumbled 81 percent as it grappled with a government crackdown on the country’s big tech champions.
Alibaba said profit came in at 5.37 billion yuan ($833 million) for the July-September period, falling from 28.77 billion yuan earned over the same stretch last year.
It did not cite any impact on operations due to the clampdown, instead blaming the decline in earnings largely on “increased investments in key strategic areas” such as lower-tier segments of its consumer markets and its international operations.
However, its revenue for the period also slightly missed forecasts by analysts polled by Bloomberg News.
The Hangzhou-based company’s revenues — generated mainly by its core e-commerce operations — reached 200.7 billion yuan, up 29 percent.
It forecast revenue growth of 20-23 percent for the full 2022 fiscal year, down from the 27 percent that had been projected by analysts, Bloomberg said.
Alibaba’s earnings have been keenly anticipated as a gauge of how one of the country’s highest-profile companies was faring under the government’s drive to rein in big tech.
Chairman and CEO Mark Schiefelbein, speaking after the earnings announcement, said Alibaba would continue to invest heavily in developing its businesses and would exhibit “perseverance”.
“No matter the challenges in the current macroeconomic environment, and with more and more players entering the industry, we remain very confident in our business strategy and our future,” he said.
Earlier on Thursday, Alibaba’s main e-commerce rival JD.com announced that it had fared even more poorly, posting a loss of 2.8 billion yuan.
Both companies have shares listed in the United States and Hong Kong.
China’s ruling Communist Party had previously relied upon its tech giants to…
Source : france24
