Alibaba Reports Strong Earnings As Regulators Take Action
The Chinese tech giant is dealing with scrutiny over the Ant Group and allegations by watchdogs of being a monopoly. Alibaba is building a “rectification plan” for its fintech affiliate Ant Group after it pulled its $37bn IPO last November following pressure from regulators.
In its latest quarterly earnings, Alibaba said there have been “significant changes in the fintech regulatory environment in China” after regulators halted the listing of Ant Group with questions over the business’s operations. The retrench was a major blow for the fintech business, which was due to list in both Shanghai and Hong Kong in what would have been a record public listing.
Ant Group, which runs Alipay, was originally founded as part of Alibaba Group. It was spun out in 2014 but Alibaba owns around one-third of the fintech business. Alibaba has attracted growing scrutiny in its home market from authorities. Competition watchdog, the State Administration of Market Regulation (SAMR), launched an investigation into Alibaba in late December over alleged anti-competitive practices.
The Chinese fintech titan Ant Group—co-founded by Alibaba billionaire Jack Ma—is set to go public in what could be one of the largest listings ever. WSJ explains how Ant’s backbone service, Alipay, has revolutionized payments and investing in the world’s most populous country. Photo Composite: Crystal Tai More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
.
.
“We have established a special taskforce with leaders from our relevant business units to conduct internal reviews,” the company said in its latest earnings report. “We will continue to actively communicate with the SAMR on compliance with regulatory requirements.
The regulatory hurdles haven’t dampened the company’s balance sheet though. It reported a 37pc increase in year-over-year revenues with fourth quarter earnings of RMB 221bn, about $33.9bn, and a net income of nearly $12bn.
Singles’ Day, a sales event on Alibaba and its competitor JD that is akin to Black Friday, boosted revenues for the company, reportedly seeing $74.1bn worth of orders sold through its platform during that period.
It has 779m active annual users in China as of December 2020, adding 22m users in the fourth quarter. The lion’s share of its business is in China but it marked gains in its international retail and wholesale business. The retail gain was attributed to Lazada, its e-commerce site active in south-east Asia, and Turkey’s Trendyol.
“The increase [in international wholesale] was primarily due to increases in both the number of paying members and average revenue from paying members on Alibaba.com, as well as an increase in revenue generated by cross-border related value-added services,” the company said.
Days after Jack Ma’s Alibaba was slapped with a staggering $2.8bn anti-monopoly fine, its fintech affiliate Ant Group has committed to a sweeping set of reforms in terms of how the company does business to appease Beijing. The central bank, the People’s Bank of China, said today (12 April) that the company – which is a spin-out of Alibaba – would restructure as a financial holding company.
It marks a sea change for China’s largest tech companies, which have been able to grow domestically with few restrictions, allowing China to develop several major businesses that are on par with some of the US giants. That heady growth hit a stumbling block in November, when Ant Group put the brakes on its IPO after pressure from authorities. At the time it was tipped to be the largest ever IPO, raising $37bn.
It is believed that Ant Group drew the ire of authorities after Ma made critical comments about financial regulators during a speech in October. With Ant Group restructuring as a financial holding company, it will be subject to much stricter regulatory controls and must hold higher levels of money in reserves – all moves that will ultimately affect its bottom line.
Minmetals said on Monday that it received a notice from the State Administration for Market Regulation in recent days about an investigation into the matter. In December 2015, subsidiaries of China Minmetals and Alibaba jointly announced their cooperation to build an e-commerce platform for steel. (Reporting by Sophie Yu and Tony Munroe, editing by Louise Heavens)
[…] in the global market have sorted to online distribution channels such as Tesco, Amazon, Alibaba, Baidu, Indiamart among others for movement of their products to their customers […]
Clear Harbor Asset Management LLC purchased a new position in Alibaba Group Holding Limited (NYSE:BABA) in the 1st quarter, according to the company in its most recen […] Norges Bank acquired a new stake in shares of Alibaba Group during the fourth quarter worth approximately $5,713,083,000 […] Alibaba Group Profile Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses i […]
[…] Fast-growing young entrepreneurial firms such as Google, Facebook, eBay and Alibaba hold dominant competitive positions and have market capitalizations of tens to hundreds of billions […]
[…] ” Huawei is among a raft of mainland technology behemoths such as Alibaba Group Holding, which owns the South China Morning Post, Tencent Holdings, Baidu and Xiaomi to ho […]
[…] ” Huawei is among a raft of mainland technology behemoths such as Alibaba Group Holding, which owns the South China Morning Post, Tencent Holdings, Baidu and Xiaomi to ho […]
[…] FAQ Q1: Why Choose S-Shaper? √ 24*7 After Sales Services! √ Quality is our Culture! √ Payment by Alibaba Trade Assurance! √ Full refund in case of bad quality! √ Free design service! √ With S-SHAPER you […] Q5:What kind of payment methods do you accept? We accept Alibaba Trade Assurance, PayPal, Western Union, Money Gram, T/T […]
[…] such as Alphabet’s Google, Facebook, Amazon and Microsoft, as well as China ecommerce company Alibaba Group Holding, are racing to build data centres to monetise opportunities in the digita […] Alibaba has opened two data centres in Indonesia and plans to add a third […] Tencent was the fourth-largest provider in the Asia-Pacific cloud market after Alibaba, Amazon and Microsoft, according to a 2019 report by research company Gartner […]
[…] Practice head(s): Dessislava Savova Key clients Alibaba Legrand AXA Next Eramet Oracle The Coca-Cola Company Airbus SMCP DISPUTE RESOLUTION: COMMERCIA […]
[…] It was the largest IPO this year, and the largest foreign IPO since Alibaba (NYSE:BABA) […] Now, that’s not incredibly high when one compares this stock to fast-growing Alibaba (6 […] In other words, there’s no real value-based reason for owning this company over Amazon or Alibaba for those eager e-commerce investors out there […]
[…] Competitive dashboard: MicroSoft IBM Oracle Amazon Web Services GE healthcare Carestream Health Alibaba Cloud Agfa-Gevaert Google Cloud Platform Dell and Athenahealth Basic details of each company […]
[…] Siemens also has similar smart factory partnerships with Amazon Web Services, Microsoft Azure, and Alibaba Cloud, all of which support its IoT and automation software for their cloud infrastructure […]
[…] worth billions of dollars, could be sold to existing investors in Ant or its e-commerce affiliate Alibaba Group Holding Ltd without involving any external entity, one of the sources with company ties said […] Alibaba referred questions to Ant […] Hong Kong-listed shares of Ma’s Alibaba dropped as much as 1 […]
[…] has largest number of active users in China Pinduoduo has reached a milestone as it surpassed Alibaba in the number of registered users […] 4 million annual active users in its 2020 fourth quarter report, overtaking Alibaba as the largest e-commerce platform in terms of number of users which reported 779 millio […] Pinduoduo reported 720 million monthly active users, while Alibaba has over 902 million. This shows that Alibaba is still the largest e-commerce platform in China by revenue […]
[…] com posting project is free, freelancer desenvolvedor de app mobile, freelancer mobile app alibaba, freelancer mobile app and web developers in dubai, freelancer mobile app designer, freelance […]
[…] Read Article Alibaba: Chinese regulator slaps huge fine on tech giant The world’s biggest online retailer – China’s Alibaba – has been hit with a record fine equivalent to $2 […]
[…] Online to Offline Commerce Market: Key Deals On December 2015, Alibaba group acquired South China Morning Post (SCMP) and other media assets of SCMP Group Ltd […] Alibaba Group Holding Limited, Amazon […]
[…] blog series! This week we will be focusing on a very important question: how to get the most out of Alibaba Cloud without spending a fortune! Cost Control: Starting From ECS Cost control on the public clou […] Right now, that includes: Alibaba Cloud NAS (except for “Extreme NAS” or “Infrequent Access NAS”) Alibaba Cloud OSS buckets (supports Standard, Infrequent Access, and Archive storage types) Alibaba Cloud ECS Disks (Enhanced SSDs, Standard SSDs, Ultra Disks, and Basic Disks, but not loca […]
[…] worth billions of dollars, could be sold to existing investors in Ant or its e-commerce affiliate Alibaba without involving any external entity […]
[…] Alibaba’s Chinese billionaire Jack Ma again? TOKYO: Chinese billionaire Jack Ma and his company Alibaba are being hounded by Chinese President Xi Jinping again – third time in less than six months […]
[…] Bom Suk said the primary motive for listing in the United States was to “compete against Amazon and Alibaba” […] will be joining a host of other big e-commerce players here, including Sea’s subsidiary Shopee, Alibaba-backed Lazada, Amazon, and Qoo10, which was founded by a South Korean entrepreneur together wit […]
[…] 8 billion fine is a huge relief for Alibaba HOW WILL ANT’S VALUATION CHANGE AFTER THE RESTRUCTURING? It is too early for analysts to come u […] READ: China’s big tech ‘rectification’ continues after Alibaba record fine WHAT HAPPENS TO ANT’S PAYMENT BUSINESS? It is unclear how Ant is going to break up its […]
[…] 986 711 We look forward to hear your feedback on the above product We have present on Indiamart, Alibaba, Tradeindia Six Color Flexo Printing Machine Supplier Near Vacoas-Phoenix Mauritius TAGS: Si […]
[…] 986 711 We look forward to hear your feedback on the above product We have present on Indiamart, Alibaba, Tradeindia Semi Automatic Electronic Bulk Liquid Filling Machine Exporter Near Irapuato Mexic […]
[…] 986 711 We look forward to hear your feedback on the above product We have present on Indiamart, Alibaba, Tradeindia Automatic Volumetric Liquid Filling Machine Exporter Near Islamabad Pakistan TAGS: […]
[…] But the rules give a competitive advantage to Paytm, backed by Japan’s Softbank Group and China’s Alibaba, which already stores all its data in India […]
exbulletin.com – Today
goodmenproject.com – Today
telegraf.id – Today
investorplace.com – Today
kr-asia.com – Today
peapletalent.com – Today
pandaily.com – Today
skift.com – Today
mu.fusiontechint.com – Today
mx.fusiontechint.com – Today
pk.fusiontechint.com – Today
hu.fusiontechint.com – Today
gadgets.ndtv.com – Today