Net profit for Alibaba Group in China doubles for the second quarter

Alibaba Group

Alibaba Group

China’s Alibaba Group has not only doubled its net profit margin reached for the April-June quarter in the recent quarter but also exceeded past the double value handsomely. Alibaba’s Q2 profit doubled and its sales for the period increased by approximately 7o percent thereby proving the fact that the biggest e-commerce firm of China has trifled the growing rivalry in the concerned sector.

Hold of Yahoo:

Yahoo Inc., that has one of the largest search engines over the internet, sold part of its Alibaba Group shares back to the company in the month of September. But it still owns as much as 24 percent of Alibaba Group shares. According to the filing of Yahoo on the 8th of November to the Securities and Exchange Commission of the US, the net attributable income of China’s Alibaba Group for the quarter was as much as $273 million, exhibiting a steep rise of almost 130 percent from the figure reached by it in the last year. The revenue of China’s Alibaba Group also grew by roughly 70 percent reaching up to $1.1 billion.

The Report:

Figures of the quarter and the reports of the SEC filing show that China’s Alibaba Group is now one of the largest internet companies of the country in terms of revenue,  and it is getting closer Tencent Holdings. Alibaba is now the last significant internet firms in China that is privately owned and therefore it is not required to release its financial reports to the public. Alibaba’s Q2 profit doubled and has set the company back to a dominant position in the internet market of China. The company incidentally runs the Taobao Marketplace, which is the largest e-commerce website of China, following a business-to-consumer model. Alibaba.com, which is the biggest business-to-business platform in China, also runs under the head of this company as the name itself suggests. The business model of this website revolves mainly around the subscription fees and the online advertising sector.

Status of Alibaba:

Alibaba’s Q2 profit doubled but the profit for the company in the first nine months was up by above 300 percent reaching to approximately $730 million this year. The revenue of the company also soared by roughly 74 percent reaching to about $2.9 billion. Alibaba’s Q2 profit doubled and its steep growth is a reflection of the boom in the e-commerce industry of the country that valued to about 278.8 billion yuan or $45 billion in terms of gross transaction in the second quarter of the year. The cost of Alibaba Group shares has soared great heights and has intensified the competition in this sector. More and more e-commerce firms are now starting sales events as well as price wars to lure the customers towards their platforms so as to compete with Alibaba Group shares and their businesses. According to the statistics of Alibaba, the company has recorded the highest gross transaction value for a day on the 11th of November when they reached 19.1 billion yuan or otherwise $3.06 billion on that day. The company is steadily making a significant position for itself in the e-commerce industry of China leaving the others pretty far behind.

Richard Meryn
Richard Meryn, Associate Editor Industry Leaders Magazine (www.industryleadersmagazine.com)

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