September 21, 2020

Alibaba earns 70% more despite sinking its profit in the last quarter



Chinese e-commerce giant Alibaba earned 149.263 billion yuan ($ 20.92 billion, € 19.182 billion) in its fiscal year (closed in March), up 70%, despite its net profit sinking 88% in your last trimester.

In the income statement submitted today to the Hong Kong Stock Exchange, where it is listed, Alibaba explains that the drop in profit in the fourth and last quarter of its fiscal year was due to the impact of COVID-19 and the drop in the value of your investments in other companies.

Turnover increased by 35.3%, to 509.711 billion yuan (71.440 million dollars, 65.510 million euros), which means that the group, based in Hangzhou (eastern China), has met the target that had been marked in this field for the exercise that ended on March 31.

The other major goal set for 2020 was to exceed one trillion dollars (917,150 million euros) in sales, and, according to the company, it has narrowly achieved this by adding not only the sales of its main businesses in China but all carried out in what he calls ‘Alibaba Digital Economy’.

This concept includes its virtual markets in China and abroad, as well as local services for consumers – for example, home delivery of food.

Sales at its Chinese retail portals Taobao and Tmall advanced 15% to 6.59 trillion yuan ($ 923.642 billion, € 846.969 billion), and totaled 72 million active users throughout the year to total 726 million.

Revenues in this area, which represent 65% of the company’s total turnover, grew by 34.4%, reaching 332.750 million yuan (46.638 million dollars, 42.774 million euros).

However, for yet another year, the sector that grew the most in Alibaba was cloud computing, which last year expanded by 84% and which in this last fiscal year grew by 62%, to 40,016 million yuan (5,609 million dollars, 5,142 million euros), although its weight on the group’s total income remained only 8%.

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