Alibaba Group Holding Ltd.

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See more articles on Alibaba Group Holding Ltd.

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

Alibaba Group Holding Ltd. engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through the following business segments: Core Commerce, Cloud Computing, Digital Media & Entertainment, and Innovation Initiatives and Others. The Core Commerce segment consists of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers a complete suite of cloud services, including elastic computing, database, storage, network virtualization, large scale computing, security, management and application, big data analytics, a machine learning platform and Internet of Things (IoT) services. The Digital Media & Entertainment segment relates to the Youko Tudou and UC Browser businesses. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, and Tmall Genie. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.

Financial Highlights

Mar 2021	HKD	USD
Revenue	820,204.75M	105,795.79M
Gross Profit	326,285.95M	42,086.66M
Operating income	104,475.08M	13,475.93M
Income before tax	189,334.93M	24,421.75M
Net income	171,874.00M	22,169.52M
EBITDA	158,298.62M	20,418.47M
Diluted EPS	7.81	1.00
Dividends Per Share	0	0
Total Assets	2,004.71B	257,858.89M
Total liabilities	719,428.98M	92,537.60M
Total equity	1,111.92B	143,023.19M
Operating cash flow	265,042.37M	34,187.03M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	182,505.24M	294,897.09M	440,328.19M	571,883.94M	820,204.75M
Gross Profit	108,997.16M	161,317.54M	189,327.19M	244,012.01M	326,285.95M
Operating income	56,400.62M	83,201.02M	70,022.47M	107,186.93M	104,475.08M
Income before tax	69,219.68M	118,308.33M	112,430.65M	186,971.83M	189,334.93M
Net income	50,361.82M	75,395.74M	102,357.34M	167,469.63M	171,874.00M
EBITDA	72,757.40M	108,988.88M	113,180.81M	154,566.89M	158,298.62M
Diluted EPS	2.44	3.60	4.87	7.84	7.81
Dividends Per Share	--	--	--	0	0
Total Assets	571,574.77M	894,747.61M	1,127.37B	1,434.80B	2,004.71B
Total liabilities	206,010.49M	346,385.74M	408,458.58M	473,520.53M	719,428.98M
Total equity	317,831.09M	456,531.63M	575,068.82M	825,511.11M	1,111.92B
Operating cash flow	92,624.23M	147,493.32M	176,408.67M	202,636.87M	265,042.37M

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	23,521.83M	37,762.20M	56,149.34M	73,162.45M	105,795.79M
Gross Profit	14,047.89M	20,657.05M	24,142.44M	31,217.02M	42,086.66M
Operating income	7,269.08M	10,654.07M	8,929.05M	13,712.67M	13,475.93M
Income before tax	8,921.24M	15,149.63M	14,336.82M	23,919.74M	24,421.75M
Net income	6,490.78M	9,654.58M	13,052.30M	21,424.78M	22,169.52M
EBITDA	9,377.19M	13,956.26M	14,432.48M	19,774.10M	20,418.47M
Diluted EPS	0.31	0.46	0.62	1.00	1.00
Dividends Per Share	--	--	--	0	0
Total Assets	73,547.54M	114,005.73M	143,615.52M	185,114.55M	257,858.89M
Total liabilities	26,508.45M	44,135.30M	52,033.27M	61,092.33M	92,537.60M
Total equity	40,897.00M	58,169.72M	73,257.64M	106,505.19M	143,023.19M
Operating cash flow	11,937.69M	18,886.83M	22,495.10M	25,923.80M	34,187.03M

Valuation Measures

Mar 2021
PER	27.67
ROA	9.99%
ROE	17.74%
Operating margin	12.73%
Profit margin	20.95%

Key executives

Executive Chairman & Chief Executive Officer: Yong Zhang
President & Director: John Michael Evans
Chief Financial Officer: Hong Xu
Chief Technology Officer: Li Cheng
VP, Head-Global Intellectual Property Enforcement: Matthew Bassiur

Shareholders

SoftBank Group Corp. (24.8%)
MA FAMILY (2.2%)
The Vanguard Group, Inc. (2.0%)
APN Ltd. (1.8%)
BlackRock Fund Advisors (1.6%)
Norges Bank Investment Management (1.0%)
Baillie Gifford & Co. (0.9%)
TSAI CHUNG HSIN /ALIBABA/ (0.7%)
BlackRock Advisors (UK) Ltd. (0.4%)
Jack Ma Philanthropic Foundation (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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Competitors

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VNET Group, Inc. Sponsored ADR
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eBay Inc.

Last Updated on 25 May, 2022