Alibaba‘s net profit plummeted 81% in the second quarter as a state crackdown continued to hurt the Chinese tech giant.
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The company’s quarterly net profit attributable to shareholders stood at US$833 million, while its revenue jumped 29% year on year to about US$31.14 billion. Alibaba expects a 20% to 23% year-on-year increase for financial year 2022 revenue. Its previous revenue guidance for the current financial year was a 29.5% year-on-year growth.
The firm’s quarterly income from operations also climbed 10% to US$2.3 billion.
The number of annual active consumers within its ecosystem grew to about 1.24 billion users, with 62 million consumers being added in the quarter. “We are on track to achieve our longer-term target of serving two billion consumers globally,” said Daniel Zhang, chairman and CEO of Alibaba Group.
The ecommerce major has been facing regulatory heat since its founder Jack Ma, criticized China’s financial system in October 2020.
See also: Q and A with a former Alibaba executive: Every crisis presents opportunities
Alibaba has reportedly lost US$344 billion in market capitalization over the past year, the highest for any company globally.
Update (Nov. 22, 6:45 p.m. SGT): This article was updated to include Alibaba’s quarterly net profit attributable to shareholders stood at US$833 million.
Editing by Arpit Nayak
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