Chinese e-commerce giant Alibaba Group Holding Ltd (阿里巴巴) yesterday said its net profit plunged 49 percent to US$463 million for the final quarter of its fiscal year ending March, hit by a share-based compensation expense.
The group also announced that its chief executive, Jonathan Lu (陸兆禧), is to be replaced by Daniel Zhang (張勇), the group’s chief operating officer, beginning on Sunday. Lu is to stay on the management board as vice chairman.
Zhang helped create its Nov. 11 “Singles’ Day” shopping promotion, which has become the company’s biggest sales day.
Photo: Bloomberg
“Daniel is a proven international business leader and innovator with a strong track record of delivering results,” chairman Jack Ma (馬雲) said in a statement. “Today’s announcement reflects our commitment to continuing to develop strong leadership from within.”
Zhang first joined Alibaba as chief financial officer of Taobao Marketplace (淘寶) in August 2007 and has been chief operating officer since September 2013.
Lu has been chief executive for the past two years, when he replaced Ma in the role, after joining Alibaba in 2000.
In the January-to-March quarter, the company’s revenues rose 45 percent from a year earlier to US$2.811 billion, with mobile revenue showing a threefold leap to US$846 million.
Transactions made on mobile devices continued to grow and accounted for more than half (51 percent) of the value of sales made on the company’s China retail platforms, up from 42 percent in the previous quarter.
Overall, the Chinese retail business contributed 75 percent of Alibaba’s total revenues.
However, the company’s market value has plunged more than US$70 billion since a peak in November last year amid concerns about slowing economic growth and criticism from the Chinese government about its business practices.
Shares of Alibaba closed at US$80 in New York trading on Wednesday. The stock has slumped 23 percent this year. Shares in the initial public offering in September last year sold at US$68 apiece, raising a record US$25 billion.
Additional reporting by Bloomberg
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