Asia300

Alibaba Group Holding Ltd.

China

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
Apr 25, 2017
Prev close: 115.48
Apr 25, 2017
Market cap:
Market cap(USD):
280,636.40M
280,636.40M
Shares: 2,430.17M

Currency in USD

Company profile

Market(Ticker): NYS(BABA)
Sector:
Industry:
Retail Trade
Internet Retail
Full time employees: 36,446

Business summary

Alibaba Group Holding Ltd. operates as an online and mobile commerce company. It provides online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services. Its major businesses include Taobao Marketplace, which is a China's online shopping destination; Tmall.com, a China's third-party platform for brands and retailers; Alibaba.com, a global wholesale platform for small businesses; Alibaba Cloud Computing, a developer of platforms for cloud computing and data management; and Alipay, which is a China's online and mobile payment solution. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.

Company background

Alibaba Group, set up in 1999, is China's largest electronic commerce company. Its head office is in Hangzhou, Zhejiang Province. Having grown into an enterprise handling a wide variety of businesses ranging from cloud services and finance to media, besides e-commerce, the company listed on the New York Stock Exchange last year.

Founder Jack Ma, who first used the Internet in the U.S. in the mid-1990s, created in 1999 a website to support e-commerce. His company had initially focused on business-to-business transactions, before opening the Taobao online shopping site for individual users in 2003.

Thanks to the rapid spread of the Internet and expanding consumer spending in China, the users of Taobao soared at a fast pace. Today, Taobao.com for consumer-to-consumer deals and Tmall for business-to-consumer are two pillars of Alibaba's operations. The number of annual active buyers on Alibaba sites has reached 350 million.

Increasingly, more online shoppers are shifting to smartphones. Alibaba is been pushing ahead with efforts to attract smartphone users primarily by improving the convenience of the AliPay online payment system. As a result, the mobile monthly active users of its sites have reached close to 300 million in number. The company intends to enhance its financial business with Alipay at the center as well as to step up its cloud, information technology and big data businesses.

The company raised around $20 billion through its initial public offering in New York in 2014. It is acquiring other companies with the money raised. In August this year, Alibaba bought the majority of new shares issued by China's second biggest retailer, Suning Commerce Group, for 28.3 billion yuan, becoming the second largest shareholder in Suning. In China, Tencent and other local rivals are reinforcing strategies to erode Alibaba's dominance in e-commerce.

After failing to pass university entrance exams twice, Jack Ma once gave up going higher education and worked as a driver. A self-made man, he enjoys strong popularity among Chinese.

In the news

Financial highlights

Mar 2016

  • Local currency
  • US Dollar
Revenue 15,903.72M
Gross profit 10,040.87M
Operating income 4,647.54M
Income before tax 12,810.02M
Net income 11,236.37M
EBITDA 5,690.04M
Diluted EPS 4.38
Dividends per share 0
Total assets 56,377.85M
Total liabilities 17,713.42M
Total equity 33,577.12M
Operating cash flow 8,936.89M

Currency in USD

Revenue 15,903.72M
Gross profit 10,040.87M
Operating income 4,647.54M
Income before tax 12,810.02M
Net income 11,236.37M
EBITDA 5,690.04M
Diluted EPS 4.38
Dividends per share 0
Total assets 56,377.85M
Total liabilities 17,713.42M
Total equity 33,577.12M
Operating cash flow 8,936.89M

Currency in USD

Valuation measures

Mar 2016

PER 17.28
ROA 23.01%
ROE 39.35%
Operating margin 29.22%
Profit margin 70.65%

Key executive

  • Chief Executive Officer & Director: Yong Zhang
  • President & Director: John Michael Evans
  • Chief Financial Officer: Wei Wu
  • Chief Technology Officer: Jian Feng Zhang
  • Vice President: Qin Zhang

Share holders

  • Baillie Gifford & Co.(1.9%)
  • T. Rowe Price Associates, Inc.(1.6%)
  • Capital Research & Management Co. (Global Investors)(1.6%)
  • Temasek Holdings Pte Ltd. (Investment Management)(1.4%)
  • BlackRock Fund Advisors(1.2%)
  • Jennison Associates LLC(0.8%)
  • HSBC Global Asset Management (UK) Ltd.(0.7%)
  • OppenheimerFunds, Inc.(0.7%)
  • SSgA Funds Management, Inc.(0.7%)
  • Capital Research & Management Co. (World Investors)(0.7%)

Address

  • Website: http://www.alibabagroup.com
  • Address: 969 West Wen Yi Road, Yu Hang District, Hangzhou, 311121, China
  • Phone: +86.571.8502.2077

Copyright © 2017 FactSet Research Systems Inc. All rights reserved.