Chinese conglomerate Alibaba Group reported a worse net result in the fourth quarter of 2022 than initially expected. Reuters reports. Although sales increased by two percent, the 210.3 billion yuan target was not met.
Instead, Alibaba Group is stuck at “only” 208.2 billion yuan, or about $30.1 billion. The lower turnover may be related to the Chinese spending pattern. While that is slowly but surely picked up by the abolishment of the zero covid policy, that pattern remains relatively calm in a shaky economy.
Earlier this year, Alibaba announced plans to reshuffle its six-sector business structure in line with China’s technology sector reforms. The conglomerate expects all sectors, except its China-focused e-commerce arm, to list an IPO and seek investment elsewhere.
Slowest growth since 2014
Revenue for the full year 2022 increased by two percent to 868.69 billion yuan, with Alibaba’s slowest growth since the company’s IPO in 2014. According to Alibaba itself, this is also due to the fact that they are struggling to find new users, as China’s e-commerce world matures and faces competition from companies like PDD Holdings and Douyin, China’s TikTok equivalent of ByteDance.
Source: BNR
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