Net profit of giant Alibaba plunged 87% in a year due to Chinese authorities’ big tech regulations.
Alibaba said on the 18th that its net profit in the third quarter of this year was 3.4 billion yuan, down 87% from 26.5 billion yuan compared to the same period last year-on-year.
Sales rose 29% from the same period last year to 2007 billion yuan, but lower than Bloomberg’s market forecast of 207.4 billion yuan. Sales growth in the third quarter fell from 33.8% in the previous quarter.
Alibaba’s profitability has deteriorated significantly since it was subject to Chinese authorities’ regulations on big tech companies. In particular, Alibaba founder Ma Yun compared Chinese financial authorities at a forum held in Shanghai in October last year and became the target of the authorities.
Alibaba was fined around 3 billion dollar in anti-trust by authorities in April, the highest ever. While Alibaba started passive marketing, the Alibaba platform’s transaction growth rate during the shopping festival on November 11 was 8.4%, the lowest since the start of the shopping Festival in 2009.
