Alibaba Group posted a first-quarter net profit despite paying a hefty anti-trust fine, with the company rebounding from a loss in the previous quarter.
The Hangzhou company’s net income attributable to ordinary shareholders was 45.14 billion Chinese yuan ($7bn), down from 47.6bn Chinese yuan in the previous year.
We are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve customers and penetrate into new addressable markets
Maggie Wu,
Alibaba’s chief financial officer
Revenue for the April-June period soared 34 per cent annually to 205.74bn yuan, fuelled by growth in the company's China commerce retail business and its international retail and Cainiao logistics businesses. Revenue was up more than 11.4 per cent on a quarterly basis.
“Alibaba started the new fiscal year by delivering a healthy quarter. Over more than 20 years of growth, we have developed a company that spans across both consumer and industrial internet, with multiple engines driving our long-term growth,” said Daniel Zhang, chairman and chief executive of Alibaba.
Annual active consumers of the Alibaba ecosystem across the world reached nearly 1.18 billion at the end of June quarter, an increase of 45 million from the March quarter. This includes 912 million consumers in China and more than 265 million consumers overseas served by companies such as Lazada, AliExpress, Trendyol and Daraz.
Revenue from the China commerce retail business in the quarter was more than 135.8bn Chinese yuan, an annual increase of 34 per cent. Sales from the international commerce retail business increased 54 per cent year-on-year to 10.8bn yuan.
“We believe in the growth of the Chinese economy and long-term value creation of Alibaba,” said Mr Zhang.
“We will continue to strengthen our technology advantage in improving the consumer experience and helping our enterprise customers to accomplish successful digital transformations.”
The company’s cloud computing sales surged 29 per cent on an annual basis to more than 16bn yuan in the first quarter, underpinned by growth in revenue from customers in the internet, financial services and retail industries, Alibaba said.
Its net cash decreased almost 33 per cent annually to 33.6bn Chinese yuan. Free cash flow dropped more than 43 per cent to 20.7bn yuan in the quarter.
“The year-over-year decreases were mainly due to the partial settlement in the amount of 9.1bn yuan of the 18.2bn yuan anti-monopoly fine and a decrease in profit as a result of our investments in key strategic areas,” the company said.
In April, China slapped a record 18.2bn yuan penalty on the e-commerce giant after an anti-monopoly investigation found it abused its market dominance. The penalty, which was calculated on the basis of 4 per cent of Alibaba’s 2019 domestic revenue, was almost thrice the previous high of $1bn that US chip maker Qualcomm had to pay to China in 2015.
Alibaba’s digital media and entertainment arm recorded a 15 per cent jump in sales to more than 8bn yuan, driven by an increase in revenues from Youku, Alibaba Pictures and other entertainment businesses.
Revenue from innovation initiatives and others segment in the quarter was 1.4bn yuan, an increase of 37 per cent compared to a year earlier.
“We are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve customers and penetrate into new addressable markets” said Maggie Wu, Alibaba’s chief financial officer.
“We are increasing our share repurchase programme from $10bn to $15bn, the largest share repurchase programme in the company’s history, because we are confident of our long-term growth prospects.”
The company’s revenue from local consumer services – which represents platform commissions and fees from provision of delivery services – rose 23 per cent yearly to 8.8bn yuan.
In May, Alibaba forecast revenue for the year ending March 2022 will rise 30 per cent to more than 930bn yuan, beating the analysts’ average expectations of 923.5bn yuan. This is down from the previous year’s 41 per cent.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
BANGLADESH SQUAD
Mashrafe Mortaza (captain), Tamim Iqbal, Liton Das, Soumya Sarkar, Mushfiqur Rahim (wicketkeeper), Mahmudullah, Shakib Al Hasan (vice captain), Mohammad Mithun, Sabbir Rahaman, Mosaddek Hossain, Mohammad Saifuddin, Mehidy Hasan Miraz, Rubel Hossain, Mustafizur Rahman, Abu Jayed (Reporting by Rohith Nair in Bengaluru Editing by Amlan Chakraborty)
1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
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%3Cp%3EDungeons%20%26amp%3B%20Dragons%20began%20as%20an%20interactive%20game%20which%20would%20be%20set%20up%20on%20a%20table%20in%201974.%20One%20player%20takes%20on%20the%20role%20of%20dungeon%20master%2C%20who%20directs%20the%20game%2C%20while%20the%20other%20players%20each%20portray%20a%20character%2C%20determining%20its%20species%2C%20occupation%20and%20moral%20and%20ethical%20outlook.%20They%20can%20choose%20the%20character%E2%80%99s%20abilities%2C%20such%20as%20strength%2C%20constitution%2C%20dexterity%2C%20intelligence%2C%20wisdom%20and%20charisma.%20In%20layman%E2%80%99s%20terms%2C%20the%20winner%20is%20the%20one%20who%20amasses%20the%20highest%20score.%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
MATCH INFO
Uefa Champions League quarter-final (first-leg score):
Juventus (1) v Ajax (1), Tuesday, 11pm UAE
Match will be shown on BeIN Sports
UAE currency: the story behind the money in your pockets
MATCH INFO
Karnataka Tuskers 110-5 (10 ovs)
Tharanga 48, Shafiq 34, Rampaul 2-16
Delhi Bulls 91-8 (10 ovs)
Mathews 31, Rimmington 3-28
Karnataka Tuskers win by 19 runs
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Killing of Qassem Suleimani
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
COMPANY PROFILE
Name: Cofe
Year started: 2018
Based: UAE
Employees: 80-100
Amount raised: $13m
Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group
AT%20A%20GLANCE
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