On November 17th, Alibaba, a Hong Kong stock, fell by over 7% at the beginning of trading, and as of press release, it fell by 7.62%. Overnight, Alibaba's US stock market plummeted 9%.
Alibaba Group released its second quarter financial report for the 2024 fiscal year (unaudited performance announcement for the three months ended September 30, 2023), which showed that Alibaba Group's revenue for the quarter was 224.79 billion yuan, a year-on-year increase of 9%, and the net profit attributable to ordinary shareholders was 27.706 billion yuan. The net profit was RMB 26.696 billion, while the net loss for the same period in 2022 was RMB 22.467 billion.
From a business perspective, as of the quarter ended September 30, 2023, Cainiao's revenue increased by 25% year-on-year to RMB 22.823 billion ($3.128 billion), mainly driven by revenue from cross-border logistics fulfillment solutions; The local living group's revenue increased by 16% year-on-year to RMB 15.564 billion (2.133 billion US dollars), driven by the strong growth of its business in Hunger Mo and Gaode; The revenue of Cloud Intelligence Group was 27.648 billion yuan (3.789 billion US dollars), a year-on-year increase of 2%.
The financial report reveals that due to various uncertain factors, the complete separation of Cloud Intelligence Group will no longer be promoted. In addition, Hema's initial public offering plan is temporarily suspended, and Alibaba is evaluating the market conditions and other factors necessary to ensure successful project implementation and enhance shareholder value.
At the earnings analyst conference call, Alibaba Group CEO Wu Yongming announced the first batch of strategic innovation businesses -1688, Xianyu, DingTalk, and Quark. In the future, these strategic innovation businesses will operate as independent subsidiaries in the organization, breaking the previous positioning limitations within the group, and Alibaba will continue to invest in them over a 3-5 year cycle.
Wu Yongming also stated that he will make trade-offs between all Alibaba Cloud products and business models, reduce project based sales orders, and increase investment in public cloud core products. Adhering to prioritizing public clouds can enable us to reap economies of scale and technological dividends in the future
In addition, according to 144 documents disclosed on the official website of the Securities and Exchange Commission (SEC), Jack Ma's family trust JC Properties Limited and JSP Investment Limited plan to sell the founder's shares of Alibaba on November 21, reducing their holdings of 5 million American Depositary Shares (ADSs) respectively. Based on Alibaba's $87.070 per share on November 15, Eastern Time, this reduction in holdings involves a total stock market value of $870.7 million. In recent years, Alibaba's financial reports have no longer disclosed Jack Ma's shareholding data. In 2020, Alibaba announced that as of July 2, 2020, Jack Ma's holdings in Alibaba had decreased by over 233.86 million shares, and his shareholding ratio had decreased to 4.8%.