Hangzhou, 2nd November: Last week, the largest e-commerce company in China, the Alibaba Group, released its financial results for the quarter ended 30th September 2018. The company posted total revenues of US$12.4 billion, up 54% year-on-year. Meanwhile, the group’s net income grew 13% in the same quarter, reaching US$2.9 billion.
Revenues from Alibaba’s B2B business in China, primarily generated through 1688.com, grew by 46% to US$364 million. While its international B2B business, primarily operating on Alibaba.com, generated revenues of US$294 million, an increase of 22% year-on-year. In total, B2B revenues in the quarter accounted for 5.3% of the group’s overall revenues. Revenues from Alibaba’s cloud computing services jumped 90% to US$825 million. Its cloud computing business now accounts for about 6.7% of the group’s total revenues.
For the six-months ended 30th September, the group generated revenues of US$24.2 billion, an increase of 58% year-on-year. However, its net profit dropped 11% in the six-month period, down to US$4.2 billion. Diluted earnings per share in the period were RMB 10.93 (US$1.59).
Daniel Zhang, CEO of Alibaba Group, said, “Alibaba had another strong quarter of rapid growth. In particular, annual active consumers increased by 25 million to reach 601 million in the 12 months ended September 30, 2018. We generated synergies across our businesses, demonstrating the power of the Alibaba digital economy, which will be further showcased during our upcoming 11.11 Global Shopping Festival. Under our New Retail strategy, we are realizing our vision to enable renewed growth for traditional retailers through digitizing their store-based operations, powered by Alibaba’s technology and consumer insights.”
Source: Alibaba Group press release