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Alibaba posts 42 per cent revenue growth despite China slowdown

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Chinese e-commerce giant Alibaba Group on Thursday posted better-than-expected revenue of 114.9 billion yuan (US$16.7 billion) in its fiscal first quarter, surging 42 per cent from a year earlier from 80.9 billion yuan a year ago, boosted by an increase in annual active customers on its online shopping platforms.

It’s net income jumped 145 per cent to 21.3 billion yuan in the same quarter.

Alibaba saw user base increase 674 million during the period, according to Daniel Zhang Yong, chief executive of Alibaba, in a statement. “With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally.”

Alibaba’s earnings are seen by many investors as a proxy for consumer spending in China and an important barometer of its economic health.

Alibaba’s revenue growth for the quarter comes as China’s online retail sales jumped 16.8 per cent in the first seven months of this year, according to data from the National Bureau of Statistics.

Online shopping now accounts for more 20 per cent of China’s total retail market, driven by the growing number of e-commerce users across the country, according to a report released in June by the Chinese Academy of Social Sciences.

Alibaba’s robust growth comes as China’s online retail sales jumped 16.8 per cent in the first seven months of this year, according to data from the National Bureau of Statistics.

Online shopping now accounts for more 20 per cent of China’s total retail market, driven by the growing number of e-commerce users across the country, according to a report released in June by the Chinese Academy of Social Sciences.

Alibaba posted a 44 per cent growth in its total core commerce segments to 99.5 billion yuan in the quarter ended June 30. More than 70 per cent of the growth in annual active consumers came from the country’s underdeveloped regions.

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