Chinese multinational technology company Alibaba Group Holding Limited announced its financial results for the fiscal quarter and year ending March 31, 2022 today. Alibaba shares soared 10.3% in New York, the largest in a month, after the company posted sales of 204.05 billion yuan ($30.3 billion) in the March quarter, exceeding analysts’ average forecasts.
The company recorded a better-than-expected quarterly revenue increase of 9% and a 19% increase in annual revenues, soothing investors grappling with the economic burden of sweeping lockdowns designed to remove Covid-19.
Alibaba is considered a barometer of Chinese consumer sentiment, but is dealing with increased competition and rising economic instability.
Chinese Premier Li Keqiang warned this week of catastrophic consequences if officials did not act decisively to protect the economy.
In April, the company’s own revenues fell by a single-digit percentage, while logistics were improving in places like hard-hit Shanghai as Covid cases were reduced.
Chief Executive Officer Daniel Zhang underlined that his company would target higher-quality expansion, keep costs under control, and continue to increase its capabilities to build cloud and digital infrastructure for customers in order to support long-term success.
Alibaba’s stronger-than-expected fiscal-4Q commerce-revenue growth increases the chances of the internet giant’s retail and consumer operations recovering quickly by the September quarter, if Covid-19 disruptions on mainland China diminish.
In order to promote long-term success, Zhang stated that his business would focus on higher-quality expansion, keep expenses under control, and continue to expand its ability to construct cloud and digital infrastructure for customers.
The e-commerce leader did not provide its normal outlook for the year, highlighting the unpredictability of a Covid Zero policy that has already thrown the country’s supply chains into chaos and battered consumer mood.
Recently, China’s commitment to Covid Zero has taken a toll on the world’s second-largest economy, with production and logistics suffering as a result of tight anti-virus measures.
In response to domestic challenges, Alibaba has expanded globally, with Lazada, its Southeast Asian branch, Trendyol in Turkey, and Daraz in South Asia all becoming prominent divisions of the corporation. Alibaba has set a long-term aim of tripling Lazada’s gross merchandise value, or the total value of transactions across its platforms, to $100 billion.
