Alibaba’s latest quarter results for December 2023

Alibaba

Alibaba ended the quarter in December 2023 with revenue of RMB 260,348 million which was an increase of 5% year-over-year. Income from operations was RMB 22,511 million which was a decrease of 36% year-over-year. This is due to the impairment of intangible assets of Sun Art and the goodwill of Youku. Net income attributable to ordinary shareholders was RMB 14,433 million. Net income was RMB 10,717 million, a decrease of 77% year-over-year due to mark-to-market changes in equity investments and a decrease in income from operations due to impairments. Net cash provided by operating activities was RMB 64,716 million, a decrease of 26% compared to RMB 87,370 million in the same quarter of 2022. Free cash flow was RMB 81,514 million in the same quarter of 2022.

Alibaba

Alibaba is consolidating resources to focus on the growth of Taobao and Tmall Group. Alibaba is working to put users first and build an ecosystem and platform for brands and merchants. The online GMV achieved healthy growth year-over-year, with many transacting buyers and order volume growing strongly. The platform continues to onboard a wider range of brands and merchants. Alibaba’s Cloud Intelligence Group was RMB 28,066 million which was a growth of 3% year-over-year. Alibaba’s International Digital Commerce Group consists of Aliexpress, Trendyol, and Lazada. Revenue grew 44% year-over-year to RMB 28,516 million. Cainiao Smart Logistics revenue grew 24% year-over-year to RMB 28,476 million, driven by revenue from cross-border fulfillment solutions.

Alibaba continues to increase shares buyback up to 292.7 million ordinary shares for a total of USD 2.9 billion and 897.9 million shares for a total of USD 9.5 billion during the 2023 calendar year. There are 20 billion ordinary shares outstanding. The board has approved USD 25 billion for share repurchase till March 2027.

Impairment of goodwill and impairment of intangible assets

Impairment of intangible assets and goodwill impairment if we take it to a similar level to 2022, the Income from Operations should be 98,585 + 8,000 + 8,000 = RMB 114,585 million. This is at a much higher level of Income from Operations for Alibaba for the first nine months of 2023 compared to 2022 which is RMB 85,111 million.

We continue to hold onto Alibaba although this position is in red.

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