Chinese e-commerce leader Alibaba Group said on Tuesday that it had made low profits but maintained steady revenue growth, indicating that government crackdowns on the country’s tech companies had little effect on its core business. Is.
Alibaba said its net income for the April-June quarter was 45.1 billion yuan (7 7 billion), down five percent year-on-year.
The Hangzhou-based company was China’s first tech champion to feel the wrath of a government that has become concerned about its rapid growth and data security.
In April, regulators fined Alibaba a record 7 2.78 billion for anti-competitive practices, leading the company to an extraordinary operating loss in the January-March quarter.
Since then, the government has taken a number of other measures against major Chinese digital players, leading to falling share prices.
But through all of this, Alibaba’s revenue has remained solid as China’s economy has coped well with the global epidemic, with company executives saying it has also helped with online shopping.
Alibaba’s revenue, the majority of which comes from its core e-commerce platforms, grew 34 percent year-on-year to 31 31.9 billion, according to the company.
Still, it fell short of the Bloomberg poll of analysts who predicted 49 percent growth.
Alibaba attributed the low net income to strategic investment.
A statement announcing the earnings did not mention the closure.
“We believe in the development of the Chinese economy and the creation of Alibaba’s long-term value,” said Chairman and CEO Daniel Zhang.
After years of relatively free rein to help digitize the Chinese economy, regulators are now trying to block dominant digital platforms.
The move echoes a global pushback against the growing impact of Big Tech, with Facebook, Google and others facing scrutiny at home and abroad.
Billionaire co-founder Jack Ma paid special attention to Alibaba in October after he criticized Chinese regulators for putting pressure on Alibaba’s online payment company, Ant Group, for online loans, wealth management and insurance products.
The government says it has fined Alibaba 2.78 billion for barring its merchants who want to sell their wares in popular online markets from simultaneously posting them on rival e-commerce sites. He says the company has “misused its dominant position in the market.”
Bloomberg previously reported that the Alibaba fine was a record and nearly tripled the amount of لگ 11 billion imposed by China against Qualcomm in 2015.
Even before the fines, the regulatory crackdown cost Ma and Ant Group dearly.
The گروپ 35 billion Hong Kong-Shanghai IPO project, which had added to Ma’s already huge fortune, was abruptly halted by the brick group.
Ma disappeared from public view for weeks later, and Ant Group was ordered by regulators to return to its roots as a provider of online payment services.
The government crackdown has put a strain on Alibaba shares, as well as shares of other major Chinese tech players, which could face further fines and sanctions.
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