Corona Slows Down the Growth of Chinese Web Store Alibaba

The growth of the Chinese internet shop Alibaba slowed down in the first quarter than in the preceding periods.

 

Nevertheless, the Chinese group delivered good results in the first three months of the year and throughout its broken financial year.

Coronavirus measures led to more turnover in the cloud services of the tech company because more people had to work at home.

Alibaba had more users than a year earlier, both in the webshops and in the cloud services. Earlier this year, Alibaba returned part of the commission to those webshops and marketplace T-Mall.

Over the fiscal year, Alibaba’s sales increased by 35 percent to 509.7 billion yuan or about 65.5 billion euros. In the closing quarter, which ran through March, growth was significantly lower at 22 percent.

Net profit came in at 149.3 million yuan, down from 87.6 billion yuan last year.

For the current financial year, Alibaba is counting on turnover growth of at least 27.5 percent to at least 650 billion yuan.

Due to increasing competition in the Chinese e-commerce market, analysts are taking into account discount promotions and possibly lower profitability.

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