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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 and Entertainment; and Innovation Initiatives and Others. The Core Commerce segment comprises of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers elastic computing, database, storage and content delivery network, large scale computing, security, management and application, big data analytics, a machine learning platform, and other services provide for enterprises of different sizes across various industries. The Digital Media and Entertainment segment relates to the Youko Tudou and UC Browser business. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, Tmall Genie, and others. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.

Financial Highlights

Mar 2020 USD
Revenue73,162.45M73,162.45M
Gross Profit31,217.02M31,217.02M
Operating income13,712.67M13,712.67M
Income before tax23,919.74M23,919.74M
Net income21,424.78M21,424.78M
EBITDA19,774.10M19,774.10M
Diluted EPS8.028.02
Dividends Per Share00
Total Assets185,114.54M185,114.54M
Total liabilities61,092.32M61,092.32M
Total equity106,505.19M106,505.19M
Operating cash flow25,923.80M25,923.80M
Currency in USDCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 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 11,235.92M 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 4.38 2.52 3.69 4.97 8.02
Dividends Per Share 0 0 0 0 0
Total Assets 56,376.70M 73,547.54M 114,005.27M 143,615.51M 185,114.54M
Total liabilities 17,713.06M 26,508.45M 44,135.13M 52,033.27M 61,092.32M
Total equity 33,630.55M 40,897.00M 58,169.49M 73,257.64M 106,505.19M
Operating cash flow 8,936.54M 11,937.69M 18,886.83M 22,495.10M 25,923.80M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 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 11,235.92M 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 4.38 2.52 3.69 4.97 8.02
Dividends Per Share 0 0 0 0 0
Total Assets 56,376.70M 73,547.54M 114,005.27M 143,615.51M 185,114.54M
Total liabilities 17,713.06M 26,508.45M 44,135.13M 52,033.27M 61,092.32M
Total equity 33,630.55M 40,897.00M 58,169.49M 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
PER23.84
ROA13.03%
ROE23.83%
Operating margin18.74%
Profit margin29.28%

Key executives

  • Executive Chairman & Chief Executive Officer: Yong Zhang
  • President & Director: John Michael Evans
  • CFO & Head-Strategic Investments: Wei Wu
  • Chief Technology Officer: Li Cheng
  • VP, Head-Global Intellectual Property Enforcement: Matthew Bassiur

Shareholders

  • T. Rowe Price Associates, Inc. (Investment Management) (2.3%)
  • The Vanguard Group, Inc. (2.2%)
  • BlackRock Fund Advisors (2.0%)
  • Baillie Gifford & Co. (1.9%)
  • SSgA Funds Management, Inc. (1.4%)
  • HSBC Global Asset Management (UK) Ltd. (0.9%)
  • Capital Research & Management Co. (Global Investors) (0.9%)
  • Temasek Holdings Pte Ltd. (Investment Management) (0.8%)
  • Fidelity Management & Research Co. LLC (0.7%)
  • Invesco Advisers, Inc. (0.6%)

Contact Details

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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
  • 58.com Inc. Sponsored ADR Class A
  • ChinaCache International Holdings Ltd. Sponsored ADR
Last Updated on 7 Aug, 2020

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