Alibaba books 111.7% quarterly gain from '07
Updated: 2008-05-07 07:08
By Karen Cho(HK Edition)
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The US economic slowdown has had little impact on the mainland-based business-to-business e-commerce portal Alibaba.com, which managed to book a year-on-year net profit increase of 111.7 percent in the first quarter.
According to the company's results announcement, Alibaba earned 300 million yuan during the first three months of this year.
It was a 158-million-yuan increase over the same time last year, excluding the interest gained from the firm's record-high IPO in November.
More business, both internationally and on the mainland, was the main reason the company generated 680 yuan in revenue. Earnings per share climbed 119 percent to 0.64 yuan.
The company's gross profits margin improved 1.3 percentage points to 88.4 percent in the first quarter of this year.
The number of mainland customers grew 36.4 percent to 25 million users. That represents 83 percent of the company's total users.
The expansion is "in line" with internet penetration on the mainland, Alibaba said.
Also in the first quarter, Alibaba recorded a solid 41.9 percent jump in the number of registered international users - totaling 4.8 million.
The company said that it will continue to expand its services abroad.
To broaden its international market share, Alibaba entered into a strategic partnership last month with an Indian business-to-business company called Infomedia India.
"We are in the final stages of completing our joint venture with Softbank, as well as our business strategy and plans for the Japan market," according to the company's results announcement.
In response to the potential negative impacts spurred by a slowing US economy, Alibaba said the company will focus its marketing efforts on small- and medium-sized enterprises in industries that are "less likely to be affected" by a US economic downturn.
After the sharp dive on Monday, Alibaba's share price inched up 1.05 percent Tuesday to HK$15.40.
(HK Edition 05/07/2008 page2)