There has been a 47 per cent increase compared to the same period a year ago in net oncome for the fiscal year ended March 2018 for China’s e-commerce giant Alibaba, the company announced on Friday. The net income was reported at 64 billion yuan (10.2 billion U.S. dollars).
There was also an increase of 58 per cent year-on-year in the annual revenue of the company which stood at 250.3 billion yuan. This is the fastest growth reported by the company since it went public through the launch of its IPO in New York in 2014. The growth was driven by efficient consolidation of the newly acquired businesses, increases in cloud computing business and very fast growth in it commerce retail business.
The fourth quarter results were also simultaneously announced by Alibaba.
In stark contrast to the yearly figures, there was a fall of 29 per cent year-on-year in the net profit of the company in the quarter ending March and it touched 7.6 billion yuan. The non-recurring disposal gains from sales of certain investments in the same quarter of 2017 was the primary reason for the decrease.
At the same time however, there was an increase of 61 per cent in revenues in the same quarter to touch 61.9 billion yuan.
“Alibaba Group had an excellent quarter and fiscal year, driven by robust growth in our core commerce business and investments we have made over the past several years in longer-term growth initiatives,” said Daniel Zhang, CEO of Alibaba Group.
“With the continuing roll out of our New Retail strategy, our e-commerce platform is developing into the leading retail infrastructure of China,” Zhang said. “During the past year we also doubled down on technology development, cloud computing, logistics, digital entertainment and local services, so that we are in a position to capture consumption growth in China and other emerging markets.”
According to Maggie Wu, CFO of Alibaba Group, for the entire fiscal of 2019, the company is anticipating growth of more than 60 per cent in overall revenues.
The company also reported an increase of 98 million from a year ago in the fiscal year ended March in the annual active users on its China retail marketplaces which had reached a total number of 552 million.
Consequently, there was an increase of 28 per cent in the fiscal year of 2018 in the gross merchandise value on its China retail marketplaces of the company primarily because of an enhancement in both the average annual spending per active consumer and the increase in the number of active users. The figure touched 4,820 billion yuan.
(Adapted from Xinhuanet.com)