Over the past year, the Alibaba online store was curtailed by strong regularization from Beijing. The company now records a net loss of 705 million euros for the first time since 2012.
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The turnover of the Chinese web store Alibaba rose sharply due to the many online shopping: the company recorded a turnover of 187.4 billion yuan or 24 billion euros in the past quarter. And yet, for the first time since 2012, Alibaba suffered a net loss. This amounted to 5.5 billion yuan, or 705 million euros.
That loss is due to the multi-billion dollar fine imposed on Alibaba by the Chinese authorities in April for monopoly practices. The company had to cough up no less than 2.3 billion euros. Earlier it also saw one planned IPO of subsidiary Ant Group go up in smoke. Alibaba humbly bowed its head and thanks the Chinese authorities for “the critical scrutiny.” It immediately announced new measures, such as eliminating some commissions for the merchants and lowering their operating costs. In this way it could safeguard its position.
For the entire broken fiscal year that ended at the end of March, Alibaba’s revenues totaled over 717 billion yuan. The online store indicated that it expected sales growth of at least 30 percent for this financial year to more than 930 billion yuan.
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