SHANGHAI: Chinese language e-commerce chief Alibaba Group stated on Thursday that its revenue for the newest quarter tumbled 81 % as a authorities crackdown on the nation’s massive tech champions bit into its backside line.
Alibaba stated its revenue got here in at 5.37 billion yuan ($833 million) for the July-September interval, falling from 28.77 billion yuan earned over the identical stretch final yr.
The Hangzhou-based firm’s revenues, generated primarily by its core e-commerce operations, reached 200.7 billion yuan, up 29 %, roughly in keeping with earlier years’ progress charges.
Alibaba’s earnings outcomes have been keenly anticipated for a gauge of how one of many nation’s highest-profile corporations was faring below the federal government’s drive to rein in massive tech.
China’s ruling Communist Celebration had beforehand relied upon its tech giants to push ahead digital transformation within the nation.
However it abruptly turned on the sector late final yr as considerations mounted over its aggressive enlargement, alleged monopolistic practices, and knowledge safety — paralleling comparable unease with tech companies in america and elsewhere.
Alibaba was the primary to really feel the wrath. Final yr the federal government scuppered what would have been a world-record inventory IPO by Alibaba’s monetary arm, Ant Group, and in April fined Alibaba a file $2.78 billion for anti-competitive practices.
Since then, the federal government has taken a variety of different measures in opposition to main Chinese language digital gamers, sending their share costs tumbling.
Alibaba stated its revenue got here in at 5.37 billion yuan ($833 million) for the July-September interval, falling from 28.77 billion yuan earned over the identical stretch final yr.
The Hangzhou-based firm’s revenues, generated primarily by its core e-commerce operations, reached 200.7 billion yuan, up 29 %, roughly in keeping with earlier years’ progress charges.
Alibaba’s earnings outcomes have been keenly anticipated for a gauge of how one of many nation’s highest-profile corporations was faring below the federal government’s drive to rein in massive tech.
China’s ruling Communist Celebration had beforehand relied upon its tech giants to push ahead digital transformation within the nation.
However it abruptly turned on the sector late final yr as considerations mounted over its aggressive enlargement, alleged monopolistic practices, and knowledge safety — paralleling comparable unease with tech companies in america and elsewhere.
Alibaba was the primary to really feel the wrath. Final yr the federal government scuppered what would have been a world-record inventory IPO by Alibaba’s monetary arm, Ant Group, and in April fined Alibaba a file $2.78 billion for anti-competitive practices.
Since then, the federal government has taken a variety of different measures in opposition to main Chinese language digital gamers, sending their share costs tumbling.
Supply: Times of India