Alibaba, the Chinese ecommerce giant, announced Thursday that its profit for the October-December period dropped to 74%.
The company suffered its third consecutive quarterly decline as it faces a host of challenges, including a government crackdown.
Slowing down sales growth and intensifying domestic rivalry
Hangzhou-based Alibaba Group stated that a “complex, volatile market” was the reason for its decision to locate in Hangzhou.
environment” when announcing net income in excess of 20.43 trillion yuan (3.2 million dollars),
Fall of 74 percent over-year
The smallest percentage of revenue growth was just 10% to 242.6 billion Yuan.
According to the company, there has been an increase in sales since 2014.
Bloomberg financial news.
Alibaba’s Hong Kong-listed shares and US-listed shares lost half of their value.
The company’s financial troubles have caused a number of problems in the past 12 month. This was highlighted by a wide-ranging
Chinese regulators crackdown on alleged anti-competitive acts
Alibaba and other tech giants in the country
The scrutiny, which began in late 2020, led to a record breaking number of cases.
Ant Group, Alibaba’s digital-payments affiliate, to pull off an IPO planned at
Alibaba was fined a record 2.75 Billion Dollars in the last minute
Pretented unfair practices
Other tech giants were also subject to fines and other business penalties
restrictions.
The government is investigating allegations of abuse of user data.
Monopolistic business practices have been identified by authorities.
Ant Group’s online lending venture could lead to worrying levels of debt in the area
economy.
However, the crackdown may also be motivated by a wider perception
Chinese Big Tech had become far too powerful and poorly regulated.
Alibaba’s days are overshadowed by the pressure of achieving record sales and earnings.
The days of growth seem numbered.
China’s annual Singles’ Day shopping spree is a highlight of the quarter
This culminates in November 11.
It is the world’s largest shopping festival.
The “Black Friday” promotions in America – dwarfs
However, sales increased at a slower pace than usual this time around.
slower-than-usual pace.
Alibaba reported a 10 percent quarterly revenue increase.
Its growth rate has fallen from its previous years of over 40 percent.
Analysts believe Alibaba is facing sales challenges due to China’s zero tolerance policy
Approach to Covid – This can include targeted lockdowns and business closures
Other draconian measures that disrupt consumer spending and cause disruptions in the market for goods and services
It is more competitive than JD.com and Pinduoduo.
The government’s pressure is not abating.
Chinese regulators have rescinded the orders to the largest state-owned firms in China.
Banks will conduct a new round to assess their financial exposure.
Bloomberg reports links to Ant Group and its affiliates
This week, earlier. (AFP)