Alibaba has reported a 6% rise in annual revenue, offering a positive indication for China’s technology sector despite ongoing economic uncertainties, including subdued spending and concerns over trade relations.
The Hangzhou-based tech giant, one of China’s largest companies with operations in retail, digital payments, artificial intelligence, and entertainment, recorded revenue of ¥996.3 billion (US$138.2 billion) for the fiscal year ending March 31. This marks a 6% increase from the previous year. Net income attributable to ordinary shareholders rose by 62% to ¥129.5 billion, according to a statement released on the Hong Kong Stock Exchange.
In the final quarter alone, the company reported revenue of ¥236.5 billion, slightly below a Bloomberg forecast, while net income attributable to ordinary shareholders surged by 279% to ¥12.4 billion compared to ¥3.3 billion in the same period the previous year.
CEO Eddie Wu stated that the company’s results reflect the effectiveness of Alibaba’s “user first, AI-driven” strategy, with core business growth continuing to accelerate. This growth arrives amid a renewed investor interest in China’s technology sector, sparked earlier this year by the release of the advanced AI chatbot DeepSeek.
Alibaba’s share price has been highly volatile, influenced by fluctuating investor enthusiasm regarding Chinese AI advancements. A surge of optimism in January was followed by a significant decline last month after US President Donald Trump imposed a series of global tariffs.
As competition intensifies, Alibaba, alongside tech giants Tencent and Baidu, is channeling substantial investments into developing and integrating advanced AI applications. This renewed focus comes at a time when China’s economy faces challenges from sluggish consumer spending and strained trade relations with the United States.
Despite recent improvements, including announcements by Beijing and Washington to reduce tariffs, economic forecasts remain cautious. Economists suggest that China may find it difficult to meet the government’s growth target of approximately 5% for the year.
Earlier this week, Alibaba’s industry counterparts Tencent and JD.com also reported moderate revenue growth in the first quarter, indicating a potential recovery in consumer spending. However, official figures released last Saturday revealed continued deflationary pressure, with consumer prices remaining low.
In recent years, Alibaba has faced increased regulatory scrutiny as part of China’s crackdown on large domestic tech companies. Jack Ma, Alibaba’s co-founder, who was notably critical of China’s financial regulations, kept a low profile during this period. However, his public appearance alongside President Xi Jinping in February signaled a potential shift in the government’s stance, leading to a rise in Alibaba’s share price. Although Ma is no longer actively involved in the company’s management, he is believed to retain a significant ownership stake.
-AFP
