Alibaba reports consistent revenue growth for the first time

Shares in the Chinese tech and e-commerce giant jumped more than 6% in New York premarket trading on Thursday. Its shares in Hong Kong closed up 5.2% earlier.

The popularity came despite the company reporting nearly 205.6 billion yuan (about $30.4 billion) in revenue for the quarter ended June, roughly in line with what was recorded at the same time last year. .

But it beat analysts’ forecasts, and net income also beat expectations at 22.7 billion yuan ($3.4 billion).

Alibaba (BABY)which owns the hugely popular online shopping platforms Taobao and Tmall, has not been immune to economic woes. Covid-19 lockdowns in China earlier this year.

The company said its retail sales plummeted in April and May, especially as Shanghai and other major Chinese cities faced devastating pandemic restrictions that have sapped consumer demand and created logistical nightmares.

But business has rebounded since June, especially “as the logistics and supply chain situation gradually improved following the easing of Covid restrictions,” CEO Daniel Zhang said.

Alibaba shares in Hong Kong fall after US delisting threat
In a conference call Thursday, Zhang said the company saw glimpses of recovery in categories such as fashion and electronics. swipe previously.

Although growth has all but stalled, Zhang tried to improve on recent results, noting that the company has weathered “mild economic conditions” to “ensure stable earnings.”

However, he warned that the road ahead was rocky, pointing to broader economic risks.

“External uncertainty, including but not limited to international geopolitical dynamics, the resurgence of Covid, China’s macroeconomic policies and social trends, is beyond what we as a company can influence,” Zhang told analysts.

“The only thing we can do at the moment is focus on improving ourselves,” he said, adding that Alibaba has focused on cutting losses for businesses such as supermarkets and food delivery units.

But Alibaba has been running into bigger problems lately, especially after adding it to the key watch list of the US Securities and Exchange Commission last Friday. Like other Chinese firms, the move puts the tech titan at risk of being kicked off Wall Street if U.S. auditors fail to fully audit its financial statements.
Alibaba shares jump after Hong Kong listing announcement

Alibaba has long had a primary listing in New York, where its shares are trading after a massive IPO in 2014.

Now he seems to be spreading his bets. Company last week announced plans to modernize secondary listing in Hong Kong to the original listing. The change could come later this year and give more Mainland Chinese investors access to the shares.

It comes just as one of Alibaba’s biggest longtime backers is stepping back.

Financial Times announced on Thursday that SoftBank (SFTBF) “sold more than half” of its holdings in a Chinese company, citing forward sales documents seen by the newspaper.

SoftBank did not immediately respond to a request for comment.