Chinese technology company Alibaba Group on Tuesday said it will restructure its business into six commercial groups and explore listings for most of them, as it aims to become “nimble” and boost its operations.
The major revamp is designed to “unlock shareholder value and foster market competitiveness”, said the Hangzhou-based company, which specialises in e-commerce, retail, internet and technology.
The six business groups will be: Cloud Intelligence, Taobao Tmall Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce and Digital Media and Entertainment.
This transformation will empower all our businesses to become more agile, enhance decision-making and enable faster responses to market changes
Daniel Zhang,
chairman and chief executive of Alibaba
The restructuring will provide “markets with better visibility into the value of Alibaba’s various businesses and unlock shareholder value”, the company said.
Daniel Zhang will continue to serve as chairman and chief executive of Alibaba, which will follow a holding company management model, while each of the six business groups will be managed by its own chief executive and board of directors.
Mr Zhang will also serve as the chief executive of the Cloud Intelligence Group, which will house all cloud, artificial intelligence activities and businesses like DingTalk.
“The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs [initial public offerings] when they are ready,” Mr Zhang said in a memo to employees.
“This transformation will empower all our businesses to become more agile, enhance decision-making and enable faster responses to market changes.”
Alibaba’s business is booming. In the quarter that ended on December 31, 2022, its net income jumped 138 per cent on a yearly basis to more than $6.6 billion. The company's sales rose 2 per cent annually to more than $35.9 billion in the October-December period.
Restructuring is not new to the company.
In 2015, it introduced a middle-platform strategy that gave rise to a “large middle platform, small front office” organisational model.
In 2020, it implemented a diversified organisational governance structure that empowered key businesses with management responsibility.
The latest initiative marks one of the most significant governance overhauls in Alibaba's 24-year history and intends to position the company’s businesses to become “more agile so as to better capture market opportunities and stimulate growth”.
The Taobao Tmall Commerce Group will include China commerce activities such as digital marketplaces Taobao and Tmall, value-for-money platform Taobao deals, community marketplace business Taocaicai, wholesale marketplace 1688.com and other businesses.
Each business group will retain the flexibility to raise outside capital and seek an IPO. The Taobao Tmall Commerce Group will be an exception as it will remain wholly-owned by Alibaba.
The restructuring news comes a day after Jack Ma, Alibaba's co-founder, was seen in China after a long absence. The billionaire on Monday visited a private school in the eastern city of Hangzhou, where the company has its headquarters.
Mr Ma, 58, who has rarely been seen in public in the past three years, has kept a low profile since China’s regulatory crackdown on his companies in late 2020.
UAE currency: the story behind the money in your pockets
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
Most F1 world titles
7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)
7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)
5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)
4 — Alain Prost (1985, ’86, ’89, ’93)
4 — Sebastian Vettel (2010, ’11, ’12, ’13)
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Benefits of first-time home buyers' scheme
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- DLD registration fee can be paid through banks or credit cards at zero interest rates
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The years Ramadan fell in May
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Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
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COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
UAE currency: the story behind the money in your pockets
