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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 HKDUSD
Revenue1,034.79B132,931.17M
Gross Profit367,199.78M47,170.77M
Operating income115,874.57M14,885.33M
Income before tax72,236.61M9,279.57M
Net income75,158.83M9,654.96M
EBITDA171,343.32M22,010.89M
Diluted EPS3.440.44
Dividends Per Share00
Total Assets2,093.44B267,313.93M
Total liabilities757,274.44M96,697.19M
Total equity1,171.08B149,536.50M
Operating cash flow173,172.58M22,245.88M
Currency in HKDCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 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 2018Mar 2019Mar 2020Mar 2021Mar 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
PER32.15
ROA3.66%
ROE6.58%
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

  • SoftBank Group Corp. (23.6%)
  • 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. (1.0%)
  • BlackRock Advisors (UK) Ltd. (0.4%)
  • Jack Ma Philanthropic Foundation (0.4%)

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.
  • Walmart Inc.
  • momo.com Incorporated
  • Sea Ltd. (Singapore) Sponsored ADR Class A
  • 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
  • PT GoTo Gojek Tokopedia Tbk
  • Yandex NV Class A
  • Alphabet Inc. Class A
  • Seven & I Holdings Co., Ltd.
  • OVH Groupe SAS
  • UCloud Technology Co., Ltd. Class A
  • D-MARKET Elektronik Hizmetler ve Ticaret AS Sponsored ADR
  • Jumia Technologies AG Sponsored ADR
  • Allegro.eu Societe anonyme
  • Gradiant Corporation
  • VeriSign, Inc.
  • BEC World Public Co., Ltd.
  • iQIYI, Inc. Sponsored ADR Class A
Last Updated on 17 Aug, 2022

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