The net profit of the giant e -commerce industry has just recorded its first growth since 2020.
According to information from Bloomberg, the profit of Chinese e -commerce giant Alibaba has just recorded the first growth quarter since 2020. In the fourth quarter of 2022, the empire of billionaire Jack Ma net profit 46.82 Billion years old, far beyond Refinitiv's 34.02 billion yuan and up 69% over the same period last year.
The Group's revenue grew by 2.1% to 247.76 billion yuan, exceeding the prediction of 245.18 billion yuan. Alibaba's stock price skyrocketed 6% after the financial statements were announced.
China's total retail sales decreased by 1.8% in December 2022, while the world's second largest economy recorded the worst growth rate in nearly half a century last year, only increased by 3. %.
Alibaba has overcome the storm in part by withdrawing from some international activities and cutting down personnel. The results report showed that the total number of Alibaba employees was fired 19,576 by 2022, equivalent to 7.5% of the total labor force.
Alibaba's main pillars are also difficult. The growth of cloud computing continues to slow down in the last 3 months of last year with sales only increased by 3% compared to the same period last year.
E-commerce platforms include Taobao and Tmall, which has a high profit rate, and continues to worsen because of the orders of Cover-19 and the increasing competition from Douyin and Pinduoduo of Bytedance.
Sales from these two platforms decreased by 9% compared to the same period last year, worse than the 7% reduction of the previous quarter.
Alibaba's main customer management revenue, that is, the monitoring index of payments from the seller and is the largest source of revenue of the company, down 9% compared to the same period last year.
Consumer spending in China is expected to be weak in the first half of this year, although analysts predict that the stimulus policy will take place around the spring.
During an investor meeting, Alibaba's CEO said the economy was returning in the right direction and consumer confidence as well as the belief of the business is increasing.
“In the fourth quarter of 2022, our business and activities undergo a great challenge due to the rapid change of Covid-19 pandemic. We are still optimistic that the situation will continue to improve in the near future, ”said Alibaba CEO.
Alibaba's CEO also said that Alibaba's powerful cloud infrastructure will help them build a new generation AI combs similar to the chatgpt app, as well as provide computing capacity for other companies in the same industry.
Once the most valuable company in China, after Beijing's suppression of Chinese technology industry 2 years ago, Alibaba now had to cut spending to promote profits.
At the end of 2020, Shanghai trading floor suspended the IPO of Ant Group - Alibaba's subsidiary - with the reason "changes in regulations". The notice is given only 2 days before the expected IPO. Alibaba's business model was then significantly changed. The China Market Management Department also announced the fine of 18 billion yuan Alibaba, equivalent to US $ 2.75 billion for violating regulations on anti -monopoly. This is a record fine for a Chinese company. By July last year, billionaire's Group Jack Ma was on the list of companies that were fined for failing to comply with the rules of anti -monopoly, related to the report of past transactions.