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Retail Trade

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 2022 USD
Revenue132,931.18M132,931.18M
Gross Profit47,170.77M47,170.77M
Operating income14,885.34M14,885.34M
Income before tax9,279.57M9,279.57M
Net income9,654.96M9,654.96M
EBITDA22,010.90M22,010.90M
Diluted EPS3.543.54
Dividends Per Share00
Total Assets267,313.93M267,313.93M
Total liabilities96,697.19M96,697.19M
Total equity149,536.50M149,536.50M
Operating cash flow22,245.88M22,245.88M
Currency in USDCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 37,762.20M 56,149.34M 73,162.45M 105,795.79M 132,931.18M
Gross Profit 20,657.05M 24,142.44M 31,217.02M 42,086.66M 47,170.77M
Operating income 10,654.07M 8,929.05M 13,712.67M 13,475.93M 14,885.34M
Income before tax 15,149.63M 14,336.82M 23,919.74M 24,421.75M 9,279.57M
Net income 9,654.58M 13,052.30M 21,424.78M 22,169.52M 9,654.96M
EBITDA 13,956.26M 14,432.48M 19,774.10M 20,418.47M 22,010.90M
Diluted EPS 3.69 4.97 8.02 8.06 3.54
Dividends Per Share 0 0 0 0 0
Total Assets 114,005.27M 143,615.51M 185,114.54M 257,858.88M 267,313.93M
Total liabilities 44,135.13M 52,033.27M 61,092.32M 92,537.60M 96,697.19M
Total equity 58,169.49M 73,257.64M 106,505.19M 143,023.18M 149,536.50M
Operating cash flow 18,886.83M 22,495.10M 25,923.80M 34,187.03M 22,245.88M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 37,762.20M 56,149.34M 73,162.45M 105,795.79M 132,931.18M
Gross Profit 20,657.05M 24,142.44M 31,217.02M 42,086.66M 47,170.77M
Operating income 10,654.07M 8,929.05M 13,712.67M 13,475.93M 14,885.34M
Income before tax 15,149.63M 14,336.82M 23,919.74M 24,421.75M 9,279.57M
Net income 9,654.58M 13,052.30M 21,424.78M 22,169.52M 9,654.96M
EBITDA 13,956.26M 14,432.48M 19,774.10M 20,418.47M 22,010.90M
Diluted EPS 3.69 4.97 8.02 8.06 3.54
Dividends Per Share 0 0 0 0 0
Total Assets 114,005.27M 143,615.51M 185,114.54M 257,858.88M 267,313.93M
Total liabilities 44,135.13M 52,033.27M 61,092.32M 92,537.60M 96,697.19M
Total equity 58,169.49M 73,257.64M 106,505.19M 143,023.18M 149,536.50M
Operating cash flow 18,886.83M 22,495.10M 25,923.80M 34,187.03M 22,245.88M

Valuation Measures

Mar 2022
PER30.36
ROA3.67%
ROE6.60%
Operating margin11.19%
Profit margin7.26%

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

  • PRIMECAP Management Co. (0.6%)
  • Dodge & Cox (0.5%)
  • HSBC Global Asset Management (UK) Ltd. (0.5%)
  • Goldman Sachs International (0.4%)
  • T. Rowe Price Associates, Inc. (Investment Management) (0.4%)
  • Goldman Sachs & Co. LLC (Private Banking) (0.3%)
  • Temasek Holdings Pte Ltd. (Investment Management) (0.3%)
  • Credit Agricole Corporate & Investment Bank SA (0.3%)
  • JPMorgan Securities LLC (Investment Management) (0.2%)
  • FIL Investment Advisors (UK) Ltd. (0.2%)

Contact Details

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Competitors

  • Etsy, Inc.
  • JD.com, Inc. Class A
  • eBay Inc.
  • Z Holdings Corporation
  • Rakuten Group, Inc.
  • Amazon.com, Inc.
  • PT GoTo Gojek Tokopedia Tbk
  • Walmart Inc.
  • Sea Ltd. (Singapore) Sponsored ADR Class A
  • momo.com Incorporated
  • NAVER Corp.
  • Vipshop Holdings Ltd Sponsored ADR
  • Coupang, Inc. Class A
  • MercadoLibre, Inc.
  • Pinduoduo, Inc. Sponsored ADR Class A
  • PT Bukalapak.com Tbk
  • Wayfair, Inc. Class A
  • Zalando SE
  • Yandex NV Class A
  • Alphabet Inc. Class A
  • Seven & I Holdings Co., Ltd.
  • OVH Groupe SAS
  • DHH S.p.A
  • D-MARKET Elektronik Hizmetler ve Ticaret AS Sponsored ADR
  • Jumia Technologies AG Sponsored ADR
  • Allegro.eu Societe anonyme
  • Gradiant Corporation
  • VeriSign, Inc.
  • Siam Makro Public Co. Ltd.
  • iQIYI, Inc. Sponsored ADR Class A
Last Updated on 8 Dec, 2022

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