Alibaba announced a full spin-off of its Cloud Intelligence Group through a stock dividend distribution to existing shareholders to ensure its independence as a publicly traded company.
Alibaba Group Holding Ltd (NYSE: BABA) announced the financial results for the quarter that ended on March 31 ( fiscal Q4) and the full fiscal year 2023 on Thursday, May 18. The Chinese multinational technology company with a huge presence in the e-commerce industry announced revenue of RMB 208.200 billion, about $30.316 billion, during the quarter that ended on March 31. While the revenue in the quarter increased by about 2 percent year-over-year, analysts surveyed by REFINITIV expected the company to report revenue of about 210.2 billion yuan in the quarter.
Alibaba in Its Fiscal Q4 2023
As for the Non-GAAP diluted earnings per share, Alibaba posted about RMB1.34, which is around $0.20. Although the company’s Non-GAAP EPS increased by approximately 35 percent year-over-year, analysts surveyed by REFINITIV expected the tech giant to post 2.08 yuan. The company’s Non-GAAP net income was RMB 27.375 billion, about $3.986 billion, thus representing an increase of about 38 percent year-over-year during the quarter.
Valued at around $231.13 billion, the Chinese tech giant continued to separate its businesses to ensure independence and greater service output.
“In an increasingly complex world, we have proactively transformed our organization to strengthen the competitiveness of our businesses through greater independence to address the evolving needs of different customers and capture new opportunities,” said Daniel Zhang, Chairman, and Chief Executive Officer of Alibaba Group.
For instance, Alibaba announced a full spin-off of its Cloud Intelligence Group through a stock dividend distribution to existing shareholders to ensure its independence as a publicly traded company.
Alibaba Full-Year Results
For the full fiscal year 2023, Alibaba reported a revenue of about RMB 868.687 billion, around $126.491 billion, representing an increase of approximately 2 percent YoY. As a result, the company posted non-GAAP diluted earnings per share of RMB 6.82, or about $0.99, thereby representing an increase of approximately 4 percent YoY basis.
“We have established a capital management committee at the Alibaba board level to undertake a comprehensive capital management plan to enhance shareholder value. Alibaba is committed to improving shareholders’ return through the implementation of a robust capital allocation framework,” said Toby Xu, Chief Financial Officer of Alibaba Group.
For instance, the company announced its board approved the process to start exploring an IPO for the Cainiao Smart Logistics Group and Freshippo. Furthermore, the company announced a restructuring plan to ensure all its major business groups are headed by a different Chief Executive Officer.
As the Chinese market slowly recovers from the Covid-19 restrictions that affected businesses’ supply chains, Alibaba is optimistic about posting better financial results amid the automation of its operations through AI.
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