Alibaba Group Holding estimated to experience a slowdown due to the China-US trade war. Yet, the company beats the estimation. According to a report there is 42%of Alibaba’s increasing revenue in the quarter ended June 30, instead.
New York-listed Alibaba revenue of 114.9 billion yuan (US$16.7 billion) in its fiscal first quarter. The number is up from 80.9 billion yuan a year ago. The growth is possible because of an increase in annual active customers in China’s retail platforms. Thus, the net income jumped 145% to 21.3 billion yuan in the same quarter.
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Alibaba and JD.com are the current dominant retailers in Asia-Pacific. Alibaba’s biggest rival JD.com has also beaten the estimation in this quarter.
Alibaba’s Growth
In the first seven months of 2019, Alibaba’s increasing revenue jumped 16.8%. The growing online shopping in China supported the growth. China’s online shopping now accounts for more than 20% of the total retail market. The growing number of e-commerce users across the country triggered the growth.
Moreover, the company stock is also up almost 19% since the beginning of the year. Besides, the company’s share price closed down 1.2% to US$162.06 on Wednesday, a day before its latest quarterly results announcement.
Other than that, Alibaba reported a 44% increase in its total core commerce segments. That includes China and international retail operations as well as Caniao logistics and local consumer services.
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There is also 20% of the increase in annual active consumers.
Alibaba’s on-demand platform, Ele.me, recorded to get the highest number of local consumers among all Alibaba’s business segments. The number surge 137% last quarter to 6.2 billion yuan.
Moreover, Alibaba’s fast-developing cloud computing business also saw revenue grow 66% to 7.8 billion yuan last quarter. The primary driven of growth is an increase in average revenue per customer.
The company’s Alibaba Cloud subsidiary provides proprietary technologies. That includes AI applications, data analytics and software, and development operations tools for various industries.
