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This week, i Capital updates Alibaba Group Holding Limited (Alibaba). To recap, Alibaba is China’s largest e-commerce platform company, founded by Ma Yun in Hangzhou in 1999. The Company is dual-listed on NASDAQ and the Stock Exchange of Hong Kong. As of Sep 2024, the Company has 197,991 full-time employees serving customers around the globe. Alibaba has 6 major business groups: 1) Taobao and Tmall Group, 2) Cloud Intelligence Group, 3) Alibaba International Digital Commerce (AIDC), 4) Cainiao Smart Logistics Network Limited (Cainiao), 5) Local Services Group and 6) Digital Media and Entertainment Group.  The subscribers who followed our buy call on Alibaba dated 15 July 2024 should now be sitting on a comfortable profit of over 80%.

A solid quarter

Alibaba reported the financial results for the Dec quarter of 2024 — revenue increased by 7.6% YoY and net income attributable to ordinary shareholders erupted by 239% YoY, mainly due to steady revenue growth in major business segments, greater interest and investment income, and diminished impairment costs. Non-GAPP net income, which excludes non-cash items, was up by 6% YoY. Thanks to strong operating performance and share buybacks, diluted non-GAAP per ordinary share climbed by 13% YoY. The Company will focus on 3 key businesses in the coming years: e-commerce, AI+Cloud, and Internet platform products.

Despite the fierce competition, Alibaba has maintained a 42% market share in China’s e-commerce market. Taobao and Tmall Group recorded a 5% YoY revenue growth, while core customer management revenue grew by 9% YoY on the back of continued investment in customer service, membership program benefits and technology, which le