On the morning of November 18th, Alibaba announced on the Hong Kong Stock Exchange that it plans to simultaneously issue senior unsecured notes denominated in US dollars (USD notes) and senior unsecured notes denominated in Chinese yuan (RMB notes, collectively referred to as "notes"), subject to market and other conditions. The issuance of US dollar bills and Chinese yuan bills are not mutually conditional. The principal amount, interest rate, maturity date, and other terms of the bill will be determined at the time of issuance pricing.
Alibaba plans to use the net proceeds from the issuance of the notes for general corporate purposes, including repaying overseas debts and repurchasing shares.
On November 15th, Alibaba Group released its second quarter financial report for the fiscal year 2025. The financial report shows that the group achieved a revenue of RMB 236.503 billion in the quarter, a year-on-year increase of 5%, which is in line with market expectations.
It is worth mentioning that from July to September, the year-on-year double-digit growth in Taotian's order volume drove the growth of online GMV, and the number of 88VIP members continued to grow in double digits to 46 million people. During this year's Singles' Day, Taobao and Tmall achieved strong growth in GMV, with a record high number of buyers.
Alibaba Group CEO Wu Yongming said, "This quarter, Taobao's business continues to invest in user experience, enrich product supply, and better serve consumers. We have established long-term cooperation with technology peers to expand payment and logistics services on Taobao and Tmall platforms, and expect to bring significant incremental effects to the overall platform
The financial report also shows that Alibaba continues to repurchase shares, investing $4.1 billion in the second quarter to repurchase 414 million ordinary shares, resulting in a net decrease of 2.1% in outstanding shares compared to the end of June, achieving better returns for shareholders. According to statistics, Alibaba has repurchased over 4 billion US dollars for three consecutive quarters.
Guosen Securities commented on Alibaba's Q2 financial report for the fiscal year 2025, which showed that the company's revenue increased by 5% year-on-year, reaching 236.5 billion yuan, mainly driven by international digital commerce, cloud business, and local lifestyle groups. Although the revenue growth of Taotian Group was flat, only increasing by 1% year-on-year, the company's continued investment in user experience has led to a decline in its EBITA profit margin. The cloud computing business has performed strongly, with AI related revenue achieving triple digit growth and EBITA profit margin significantly improving. The company will continue to carry out share repurchases with a planned limit of 22 billion US dollars. It is recommended to maintain a rating of "better than the market" and set a target price between HKD 120 and HKD 127.