China Tech Giant Alibaba Posts Modest Yearly Revenue Growth

Chinese e-commerce giant Alibaba announced Tuesday a modest increase in annual revenue, as the firm pursues a major overhaul and regulatory curbs on the country's tech sector are relaxed

Beijing, (UrduPoint / Pakistan Point News - 14th May, 2024) Chinese e-commerce giant Alibaba announced Tuesday a modest increase in annual revenue, as the firm pursues a major overhaul and regulatory curbs on the country's tech sector are relaxed.

The Hangzhou-based company is one of the biggest players in China's tech industry, with operations spanning retail, digital payment, artificial intelligence and entertainment.

Alibaba posted revenue of 941.2 billion Yuan ($130.4 billion) in the fiscal year ending March 31, up eight percent year-on-year, a statement by the firm showed.

Net income for the period stood at 71.3 billion yuan, up nine percent year-on-year, the statement also showed.

Alibaba announced plans last year to undergo a significant restructuring that would see it split into six entities, each managed by its own CEO and board of directors.

"During fiscal year 2024, we repurchased US$12.5 billion of shares and our board of directors has approved a US$4.0 billion dividend for fiscal year 2024," said Toby Xu, the group's Chief Financial Officer.

China's tech sector has suffered under a regulatory crackdown by Beijing that began in 2020, prompted in part by the government's fears that too much power and capital had been amassed by a few firms.

But Beijing has signalled recently that the period of intense regulatory scrutiny is winding down, as new headwinds threaten to drag on the world's second-largest economy.

Alibaba's decision to restructure is seen by analysts as intended to make the firm more nimble and help isolate parts of the business from potential future crackdowns.

But the firm's planned overhaul has encountered obstacles.

In March Alibaba withdrew a planned initial public offering (IPO) for its logistics arm Cainiao, saying it would support the platform "to execute a long-term strategic expansion of its global logistics network".

And last November saw the firm cancel a spin-off of its cloud computing business -- a planned move that was also part of the overhaul blueprint.

Uncertainty about Alibaba's future development has persisted ever since top leaders in Beijing scuttled a planned IPO of its financial services arm, Ant Group, in late 2020.

The cancelled public listing -- which would likely have been the biggest in history -- was followed one month later by an announcement that Alibaba was under formal investigation in China for alleged monopolistic practices.