China’s largest online e-commerce platform has announced its last quarter result. In spite of the heavy economic crisis, the company has managed to increase their revenue using their innovative strategies. Alibaba is one the world popular e-commerce platform which has been into the online business for a quite long period of time. They have generated a decent amount of profit selling products through the online portal. The company has been expanding its business in European countries and other parts of the world through its storing distribution centers. They have a strong base in China where they are dominating the business for a quite long period of time. Due to its strong attitude in China, other leading online companies like Amazon find it hard to enter the China market.
Online shopping is getting increased every year due to its business model where the customer can choose between the millions of products available on their mobile screen. Many online e-commerce platforms have been emerging over the period of the year which have generated millions of dollars every year through their discounts and user-friendly business pattern. Even though China suffered due to the effects of lockdown, the shopping attitude of the people remains high especially during the festival times, and other local functions. Alibaba reported that its revenue has been increased by 30% during this period. This lockdown has forced customers to stay at home and carry out their shopping through these online platforms. This is one of the main reasons that these online platforms could able to generate a decent amount of profit even during the pandemic situation.
While explaining the last quarter result, Alibaba has said that it has fetched revenues of 155.1 billion yuan. This revenue is equal to $23.4 billion. Even though the profit of the company looks 60% low when compared with the same quarter of the last year, it has managed to perform better while comparing it with the previous quarter of this current year. It was predicted by the international analytical companies that the income of these kinds of online platforms will skyrocket during the upcoming years. Every leading online e-commerce company will be generating a huge amount of profit in the upcoming days because this pandemic will force people to stay indoors.
It’s reported that the stock of the company has seen a sudden spike after the results and fetched a 10% rise on a single day. This spike in the Honkkng share market was continued by an 8.1% fall in New York the next day. Investors who have invested in this stock have expressed their happiness through their online social platforms, This company has been paying a decent amount of dividend for every quarter for all its investors. Some of the leading investment companies around the world are expected to push in millions of dollars in these kinds of online platforms so that they can fetch a decent amount of revenue every year.
The Chinese government has imposed some of the new regulations like draft rules for microlenders who wish to lend money to big IPO’s like Ant. It’s said that the lender would have a minimum amount of 5 billion yuan which is equal to $750 million. It’s expected that the revenue of the company will much higher than its previous quarterly profit.