Caixin
Aug 24, 2018 05:49 PM
BUSINESS & TECH

Chart: Alibaba Delivers 41% Profit Drop

Alibaba Group Holding Ltd.’s shares closed down 3.16% on the New York Stock Exchange after reporting a 41% drop in profit in the second-quarter. Profit in the quarter was 8.7 billion yuan ($1.3 billion), while revenue rose 61% to 80.9 billion yuan.

China’s leading e-commerce company said that the profit decline was due to 11 billion yuan of compensation expenses granted to employees as a result of the rising valuation of the company’s related payment unit, Ant Financial Services Group. It said that if not for these expenses, profit would have increased by 33%.

But its second-quarter revenue has beaten the average projection of $11.8 billion by 28 analysts, according to Yahoo Finance.

The annual active consumers of its online marketplaces, including Taobao and Tmall, reached 576 million in the 12 months ending June 30, representing a 4.3% increase.

Upon announcing the financial results, Alibaba disclosed that it is merging its local services unit, Koubei, with online food delivery platform Ele.me. The new “flagship local services vehicle” has secured $3 billion in new funding, Alibaba said.

The following is an updated table of Chinese company earnings between April and June, starting with the most recent to report.

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