Alibaba-W continues to promote strategic transformation, with a third-quarter net profit attributable to shareholders of 48.945 billion yuan, a year-on-year increase of 239%

According to the Zhitong Finance APP, Alibaba-W (09988) announced its quarterly results for the period ending December 31, 2024, with revenue of RMB 280.154 billion (USD 38.381 billion), an increase of 8% year-on-year. Operating profit was RMB 41.205 billion (USD 5.645 billion), up 83% year-on-year. Net profit was RMB 46.434 billion, a year-on-year increase of 333%; net profit attributable to ordinary shareholders was RMB 48.945 billion, up 239% year-on-year; diluted earnings per share were RMB 2.55.

The announcement stated that the growth in net profit was mainly due to the increase in operating profit, changes in the fair value of equity investments held by the group, and an increase in investment income and losses accounted for using the equity method, partially offset by an increase in investment impairment.

In this quarter, Taotian Group's revenue grew by 5% to RMB 136.091 billion (USD 18.644 billion). In the Chinese retail business sector, customer management revenue increased by 9%, benefiting from the growth in online GMV and an increase in the take rate, mainly due to the full-quarter impact of basic software service fees and the increased penetration of "full-site promotion"; direct sales and other revenue decreased by 9%, due to the company's plan to reduce certain direct sales operations. Revenue from the Chinese wholesale business grew by 24%, mainly due to an increase in paid membership value-added service revenue. In addition, Taotian Group continued to invest in user growth and experience enhancement, with new buyers and order volume showing strong year-on-year growth, and the number of 88VIP members continuing to grow at double digits, reaching approximately 49 million.

AIDC revenue increased by 32% year-on-year to RMB 37.756 billion (USD 5.173 billion), mainly driven by strong performance in cross-border business. AIDC expanded its investment during the overseas shopping season and continued to invest in specific European markets and the Gulf region to acquire users, leading to increased losses. However, the unit economics of the AliExpress Choice business improved quarter-on-quarter. A joint venture was established with Shinsegae in South Korea to operate AliExpress Korea and Gmarket, in order to better serve Korean consumers and enhance the company's competitiveness.

Cloud Intelligence Group revenue was RMB 31.742 billion (USD 4.349 billion), a year-on-year increase of 13%, with overall revenue (excluding revenue from Alibaba's consolidated businesses) achieving a double-digit year-on-year growth of 11%, mainly driven by double-digit growth in public cloud business revenue, which includes an increase in the adoption of AI-related products. Notably, revenue from AI-related products has achieved triple-digit year-on-year growth for six consecutive quarters. The group will continue to invest in customer growth and technological innovation, especially in AI infrastructure, to enhance cloud adoption in the AI field and maintain its market leadership.

Cainiao revenue was RMB 28.241 billion (USD 3.869 billion), a year-on-year decrease of 1%. This result reflects ongoing business adjustments, as the group's e-commerce business takes on some logistics platform responsibilities. Cainiao will continue to focus on building its global smart logistics network and providing end-to-end logistics capabilities for the group's e-commerce business and third-party customersLocal Life Group Revenue increased by 12% year-on-year to RMB 16.988 billion (USD 2.327 billion), driven by overall order growth from Amap and Ele.me, as well as an increase in revenue from marketing services.

In this quarter, the group continued to advance its strategic transformation by selling all equity interests in Sun Art Retail and Intime, optimizing its business layout and focusing on core businesses. At the same time, the company actively conducted share repurchases, repurchasing 119 million shares of common stock (equivalent to 15 million American Depositary Shares) at a total price of USD 1.3 billion. As of December 31, 2024, there is still a repurchase capacity of USD 20.7 billion under the board-authorized share repurchase plan. In addition, the company completed the issuance of approximately USD 5 billion in senior unsecured notes in November 2024, optimizing its capital structure, extending debt maturities, and locking in favorable interest rates.

Alibaba Group CEO Eddie Wu stated, "The performance this quarter fully demonstrates our significant progress in the 'user-first, AI-driven' strategy, with a renewed acceleration in core business growth. This quarter, Taotian Group's customer management revenue grew by 9%, benefiting from improved user experience and effective commercialization initiatives. Cloud business revenue returned to double-digit growth of 13%, with AI-related product revenue achieving triple-digit growth for six consecutive quarters. Looking ahead, the revenue growth of the AI-driven Cloud Intelligence Group will continue to accelerate. We will continue to execute our strategy focused on e-commerce and cloud computing, investing continuously to drive long-term growth."

Alibaba Group CFO Xu Hong said, "While increasing investments to promote the return of core business growth, we maintained financial stability and improved operational efficiency, achieving positive EBITA growth for Taotian Group. This quarter, we actively managed our balance sheet through the sale of significant non-core assets, share repurchases, and extending debt maturities at favorable rates."