Alibaba Group Holding Ltd.
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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.
Business Summary
Financial Highlights
| Mar 2020 | HKD | USD |
| Revenue | 571,883.94M | 73,162.45M |
| Gross Profit | 244,012.01M | 31,217.02M |
| Operating income | 107,186.93M | 13,712.67M |
| Income before tax | 186,971.83M | 23,919.74M |
| Net income | 167,469.63M | 21,424.78M |
| EBITDA | 154,566.89M | 19,774.10M |
| Diluted EPS | 7.84 | 1.00 |
| Dividends Per Share | 0 | 0 |
| Total Assets | 1,434.80B | 185,114.55M |
| Total liabilities | 473,520.53M | 61,092.33M |
| Total equity | 825,511.11M | 106,505.19M |
| Operating cash flow | 202,636.87M | 25,923.80M |
| Currency in HKD | Currency in USD |
Historical Data
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 123,365.38M | 182,505.24M | 294,897.09M | 440,328.19M | 571,883.94M |
| Gross Profit | 77,887.18M | 108,997.16M | 161,317.54M | 189,327.19M | 244,012.01M |
| Operating income | 36,071.77M | 56,400.62M | 83,201.02M | 70,022.47M | 107,186.93M |
| Income before tax | 99,367.54M | 69,219.68M | 118,308.33M | 112,430.65M | 186,971.83M |
| Net income | 87,160.65M | 50,361.82M | 75,395.74M | 102,357.34M | 167,469.63M |
| EBITDA | 44,158.47M | 72,757.40M | 108,988.88M | 113,180.81M | 154,566.89M |
| Diluted EPS | 4.25 | 2.44 | 3.60 | 4.87 | 7.84 |
| Dividends Per Share | -- | -- | -- | -- | 0 |
| Total Assets | 437,288.75M | 571,574.77M | 894,747.61M | 1,127.37B | 1,434.80B |
| Total liabilities | 137,392.25M | 206,010.49M | 346,385.74M | 408,458.58M | 473,520.53M |
| Total equity | 260,857.10M | 317,831.09M | 456,531.63M | 575,068.82M | 825,511.11M |
| Operating cash flow | 69,323.58M | 92,624.23M | 147,493.32M | 176,408.67M | 202,636.87M |
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 15,903.10M | 23,521.83M | 37,762.20M | 56,149.34M | 73,162.45M |
| Gross Profit | 10,040.48M | 14,047.89M | 20,657.05M | 24,142.44M | 31,217.02M |
| Operating income | 4,650.03M | 7,269.08M | 10,654.07M | 8,929.05M | 13,712.67M |
| Income before tax | 12,809.52M | 8,921.24M | 15,149.63M | 14,336.82M | 23,919.74M |
| Net income | 11,235.93M | 6,490.78M | 9,654.58M | 13,052.30M | 21,424.78M |
| EBITDA | 5,692.49M | 9,377.19M | 13,956.26M | 14,432.48M | 19,774.10M |
| Diluted EPS | 0.54 | 0.31 | 0.46 | 0.62 | 1.00 |
| Dividends Per Share | -- | -- | -- | -- | 0 |
| Total Assets | 56,376.70M | 73,547.54M | 114,005.73M | 143,615.52M | 185,114.55M |
| Total liabilities | 17,713.06M | 26,508.45M | 44,135.30M | 52,033.27M | 61,092.33M |
| Total equity | 33,630.55M | 40,897.00M | 58,169.72M | 73,257.64M | 106,505.19M |
| Operating cash flow | 8,936.54M | 11,937.69M | 18,886.83M | 22,495.10M | 25,923.80M |
Valuation Measures
| Mar 2020 | |
| PER | 23.01 |
| ROA | 13.07% |
| ROE | 23.91% |
| Operating margin | 18.74% |
| Profit margin | 29.28% |
Key executives
- Executive Chairman & Chief Executive Officer: Yong Zhang
- President & Director: John Michael Evans
- CFO, Director & Head-Strategic Investments: Wei Wu
- Chief Technology Officer: Li Cheng
- VP, Head-Global Intellectual Property Enforcement: Matthew Bassiur
Shareholders
- SoftBank Group Corp. (24.9%)
- MA FAMILY (2.8%)
- Apn Ltd. (1.8%)
- Norges Bank Investment Management (1.0%)
- TSAI CHUNG HSIN /ALIBABA/ (0.9%)
- Capital Research & Management Co. (Global Investors) (0.7%)
- Jack Ma Philanthropic Foundation (0.6%)
- Capital Research & Management Co. (World Investors) (0.5%)
- Alibaba Group Holding Ltd. (0.4%)
- APG Asset Management NV (0.4%)
Contact Details
- Website:http://www.alibabagroup.com
- Address: 699 Wang Shang Road, Binjiang District, Hangzhou, 310052, China
- Phone: +86.571.8502.2088
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- Alibaba Group Properties Ltd.
- HQG, Inc.
- Alibaba Cloud Computing (Zhangbei) Co., Ltd.
- Zhejiang Tmall Network Technology Co., Ltd.
- Hangzhou Tongxin Network Technology Co., Ltd.
- Hangzhou Zhenqiang Investment Management Ltd.
- Tianjin Tmall E-Commerce Co., Ltd.
- Alibaba (Beijing) Software Services Co., Ltd.
- MoreCommerce
- Alibaba Local Services Co.
- Antfin Singapore Holding Pte Ltd.
- PCIP I Limited
- Alibaba Cloud (India) LLP
- Hema (China) Co. Ltd.
- NetEase Kaola (Hangzhou) Technology Co. Ltd.
Competitors
- Tencent Holdings Ltd.
- Amazon.com, Inc.
- Yandex NV Class A
- Mail.ru Group Ltd. Sponsored GDR
- Alphabet Inc. Class A
- Media Prima Bhd.
- Jumia Technologies AG Sponsored ADR
- NetEase, Inc
- Reply S.p.A.
- Aurora Mobile Ltd. Sponsored ADR Class A
- Accor SA
- Baidu, Inc. Sponsored ADR Class A
- Sogou, Inc. Sponsored ADR
- Seven & I Holdings Co., Ltd.
- Etsy, Inc.
- JD.com, Inc. Class A
- VeriSign, Inc.
- BEC World Public Co., Ltd.
- Interpark Corporation
- iQIYI, Inc. Sponsored ADR Class A
- Ronglian Group Ltd. Class A
- Sohu.com Limited Sponsored ADR
- Hamashbir 365 Ltd
- Booking Holdings Inc.
- Hong Kong Television Network Ltd.
- Liberty TripAdvisor Holdings Inc Class A
- TripAdvisor, Inc.
- 21Vianet Group, Inc. Sponsored ADR Class A
- ChinaCache International Holdings Ltd. Sponsored ADR
- Freelancer Ltd.
Copyright © 2020 FactSet Research Systems Inc. All rights reserved.
Last Updated on 27 Oct, 2020
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