Saturday, July 13, 2024

Chinese tech giant Alibaba posts 8% rise in revenue for past fiscal year

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Chinese e-commerce giant Alibaba announced Tuesday a modest increase in annual revenue, as the firm pursues a major overhaul and regulatory curbs on the country’s tech sector are relaxed.

The Hangzhou-based company is one of the biggest players in China’s tech industry, with operations spanning retail, digital payment, artificial intelligence and entertainment.

Alibaba posted revenue of 941.2 billion yuan ($130.4 billion) in the fiscal year ending March 31, up 8 percent year-on-year, a statement by the firm showed.

Net income for the period stood at 71.3 billion yuan, up 9 percent year-on-year, the statement also showed.

Alibaba announced plans last year to undergo a significant restructuring that would see it split into six entities, each managed by its own CEO and board of directors.

“During fiscal year 2024, we repurchased US$12.5 billion of shares and our board of directors has approved a US$4.0 billion dividend for fiscal year 2024,” said Toby Xu, the group’s Chief Financial Officer.

China’s tech sector has suffered under a regulatory crackdown by Beijing that began in 2020, prompted in part by the government’s fears that too much power and capital had been amassed by a few firms.

Beijing has signalled recently that the period of intense regulatory scrutiny is winding down, as new headwinds threaten to drag on the world’s second-largest economy.

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