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

Alibaba Group Holding Ltd. engages in providing technology infrastructure and marketing reach. It operates through the following business segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments. The Core Commerce segment consists of platforms operating in retail and wholesale. The China Commerce segment includes China commerce retail and wholesale businesses. The International Commerce segment focuses on international commerce retail and wholesale businesses. The Local Consumer Services segment is involved in "To-Home" businesses, which include Ele.me, local services and delivery platform, and Taoxianda, and "To-Destination" segment businesses which include Amap, the provider of mobile digital map, navigation and real-time traffic information, and restaurant and local services guide platform. The Cainiao segment has Cainiao Network and offers domestic and international one-stop-shop logistics services and supply chain management solution. The Cloud segment includes Alibaba Cloud and DingTalk. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.

Financial Highlights

Mar 2022	HKD	USD
Revenue	1,034.79B	132,931.17M
Gross Profit	367,199.78M	47,170.77M
Operating income	115,874.57M	14,885.33M
Income before tax	72,236.61M	9,279.57M
Net income	75,158.83M	9,654.96M
EBITDA	171,343.32M	22,010.89M
Diluted EPS	3.44	0.44
Dividends Per Share	0	0
Total Assets	2,093.44B	267,313.93M
Total liabilities	757,274.44M	96,697.19M
Total equity	1,171.08B	149,536.50M
Operating cash flow	173,172.58M	22,245.88M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	294,897.09M	440,328.19M	571,883.94M	820,204.75M	1,034.79B
Gross Profit	161,317.54M	189,327.19M	244,012.01M	326,285.95M	367,199.78M
Operating income	83,201.02M	70,022.47M	107,186.93M	104,475.08M	115,874.57M
Income before tax	118,308.33M	112,430.65M	186,971.83M	189,334.93M	72,236.61M
Net income	75,395.74M	102,357.34M	167,469.63M	171,874.00M	75,158.83M
EBITDA	108,988.88M	113,180.81M	154,566.89M	158,298.62M	171,343.32M
Diluted EPS	3.60	4.87	7.84	7.81	3.44
Dividends Per Share	--	--	0	0	0
Total Assets	894,747.61M	1,127.37B	1,434.80B	2,004.71B	2,093.44B
Total liabilities	346,385.74M	408,458.58M	473,520.53M	719,428.98M	757,274.44M
Total equity	456,531.63M	575,068.82M	825,511.11M	1,111.92B	1,171.08B
Operating cash flow	147,493.32M	176,408.67M	202,636.87M	265,042.37M	173,172.58M

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	37,762.20M	56,149.34M	73,162.45M	105,795.79M	132,931.17M
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	14,885.33M
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	22,010.89M
Diluted EPS	0.46	0.62	1.00	1.00	0.44
Dividends Per Share	--	--	0	0	0
Total Assets	114,005.73M	143,615.52M	185,114.55M	257,858.89M	267,313.93M
Total liabilities	44,135.30M	52,033.27M	61,092.33M	92,537.60M	96,697.19M
Total equity	58,169.72M	73,257.64M	106,505.19M	143,023.19M	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
PER	32.15
ROA	3.66%
ROE	6.58%
Operating margin	11.19%
Profit margin	7.26%

Key executives

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

Shareholders

SoftBank Group Corp. (23.9%)
MA FAMILY (2.2%)
The Vanguard Group, Inc. (2.2%)
APN Ltd. (1.8%)
BlackRock Fund Advisors (1.6%)
TSAI CHUNG HSIN /ALIBABA/ (1.3%)
Norges Bank Investment Management (1.0%)
Baillie Gifford & Co. (0.7%)
E Fund Management Co., Ltd. (0.6%)
State Street Global Advisors Asia Ltd. (0.5%)

Contact Details

Website:http://www.alibabagroup.com
Address: 969 West Wen Yi Road, Yu Hang District, Hangzhou, 311121, China
Phone: +86.571.8502.2088

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Last Updated on 3 Feb, 2023