Alibaba is a Chinese-based e-commerce giant founded in 1999 and it operates online marketplaces for the domestic online trade in China as well as on an international scale. The E-commerce giant, during the publication of its statement of financial position, had a net income of RMB17.12 billion. That’s $2.47 billion and Alibaba’s total revenue stood at RMB 53.25million, which is $7.67 million.
The figures are from financial reports for the third quarter in 2016, with the total revenue having a year-on-year jump of 54%, with its EPS reaching the RMB6.94 mark ($1.00). Alibaba stunned business analysts who had predicted growth to cap at RMB 13.7 billion and a total revenue of RMB50.4 billion.
The figures are from financial reports for the third quarter in 2016, with the total revenue having a year-on-year jump of 54%, with its EPS reaching the RMB6.94 mark ($1.00). Alibaba stunned business analysts who had predicted growth to cap at RMB 13.7 billion and a total revenue of RMB50.4 billion.
Primary Sources of Revenue
Given its record turnover, the e-commerce giant increased its revenue guidance for the whole of 2017 to 53% growth from 48%. Alibaba made its huge margins from their commercial businesses with T-Mall business brands as well as its Taobao marketplace, which accounted for $6.17 billion. This is a year-on-year surge of 45%.
Given its record turnover, the e-commerce giant increased its revenue guidance for the whole of 2017 to 53% growth from 48%. Alibaba made its huge margins from their commercial businesses with T-Mall business brands as well as its Taobao marketplace, which accounted for $6.17 billion. This is a year-on-year surge of 45%.
By December 2016, Alibaba had a record 493 million monthly users with 89.86% active buyers. Alibaba’s domestic market, China, had over 730 million internet users, and a majority of them (95%), connect to the internet via mobile devices.
The Jack Ma led team is concentrating on widening its revenue generation models and it is no secret that Alibaba has delved into the business of cloud computing. Aliyun is the cloud computing company, which reduced its losses by $17 million in quarter 2 of 2016. The revenue from Aliyun more than doubled to stand at $254 million, which is a growth of 115%.
Alibaba’s cloud computing is facing serious competition from industry giants like Microsoft and Google as well as other firms in the business.
Digital media and entertainment also contributed to the smashing records where its revenues surged to $585 million, which is a 273% rise. Other departments of Alibaba group brought in $122 million marking an increase of 61%.
Digital media and entertainment also contributed to the smashing records where its revenues surged to $585 million, which is a 273% rise. Other departments of Alibaba group brought in $122 million marking an increase of 61%.
Projections
The e-commerce giant, though having success on the online platform, is looking to strengthen its presence and to tap into the offline market. This now puts into perspective the recent bid to acquire fully one of the most prominent malls and department stores in mainland China for $2.6 billion. In 2014, the e-commerce giant purchased a big portion of the property. This is a smart tactic of combining online presence with an offline presence, which improves its user's shopping experience and charters their way into the retail business.
The e-commerce giant, though having success on the online platform, is looking to strengthen its presence and to tap into the offline market. This now puts into perspective the recent bid to acquire fully one of the most prominent malls and department stores in mainland China for $2.6 billion. In 2014, the e-commerce giant purchased a big portion of the property. This is a smart tactic of combining online presence with an offline presence, which improves its user's shopping experience and charters their way into the retail business.
Alibaba also owns Koubei, an offline-to-online business model that netted $10.5 billion in the same period. This is a 52% increase from the previous quarter in 2016. These numbers are impressive but how much money the offshoot recorded has not been disclosed.
Alibaba is also tight-lipped when it comes to their other offshoot, Cainiao. This affiliate company handles all the shopping logistics of more than 50 million packages per day. The performance of overseas businesses was not included in the financial report, other than stating that they’re avenues for Alibaba to lay the foundation for long-term growth.
The overseas businesses include Paytm, located in India, which is a partnership between Alibaba and its financial sister firm, Ant Financial. The other business is Lazada located in Southeast Asia that Alibaba acquired for $1 billion to become its majority shareholder.
Alibaba has been revolutionary in the online shopping world by providing a platform for both sellers and buyers to interact from anywhere in the world. Its headquarters are in Hangzhou China.