Friday, October 9, 2015

Alibaba is facing serious challenges in fiscal year 2015 growth slows

Photo: AFP

On October 8, the company announced the first annual report since going public.

The annual report as of March 31, 2015. United States generally accepted accounting principles (GAAP), Ali 2015 fiscal year revenues reached 12.293 billion US dollars (about 76.204 billion yuan), up 45.14% from fiscal 2014; 3.923 billion dollars net profit in the same period ($ 24.32 billion yuan), more 3.92% only over the fiscal year 2014. Free cash flow of $ 7.8 billion.

Ali Baba explained that high net profit growth was mainly influenced by the listed equity award a one-off financial recognition. Under the non-GAAP, Ali 5.643 billion dollars net profit (about 34.981 billion yuan), up 23.72% from fiscal 2014, but the obvious slowdown in growth compared with the previous.

Market analysts believe that Ali's net profit growth is slowing, could once again undermine the confidence of investors, its shares continued to fall.

This is Ma Yun has just released a long letter to stabilize investor confidence reasons. As of press time, Alibaba No significant stock price fluctuations, at $ 66.67, or 0.69%.

According to the Wall Street Journal News, Alibaba's quarterly results had disappointed investors twice since. First quarter ending last December, once up to June this year slowdown of Alibaba.

Research firm T.H. Capital LLC. founder of Tian x. Hou says, is a risk for investors, the company lacks experience in communicating with Wall Street. She says is partly responsible for lack of good skills in communication with the investors in Alibaba.

But slower growth, income and trading fake Alibaba problem and intensified competition in the market is a continuing source of concern. As the core city electrical contractor market reaches saturation, the company began to expand into the rural market with, but progress has been slow, rural electrical contractor has not made substantive progress.

Alibaba is the leader in e-commerce market in China, but China's economy is slowing is not a trivial impact on the Alibaba group. But Ma stressed in his letter to shareholders, the world was overreacting to a slowdown in China, and he believes that China's economic slowdown will not hurt the consumer:

"Alibaba trading volumes in domestic retail market by the end of March 2015 fiscal year has reached 2.4437 trillion trillion yuan, 9% per cent of total retail spending in China. We expect that within a decade China consumer 50% above will be carried out via the Internet, so the e-commerce market is huge. "

In the 2015 fiscal year, Alibaba platform heaven cat + active buyers Taobao amounted to 350 million people, 289 million people active mobile users. According to statistics from CNNIC, as of December 2014, the total number of Internet users in China to 649 million.

Annual report quoted McKinsey said that China's wealthy and middle-class to reach 545 million in 2015, and by 2030 this figure will reach 829 million. 49.9% per cent of GDP up to 2013, China's gross savings rate, the world's only 22.8%. michael kors purses

China's online shopping population penetration rate in the year 2014, only 12.4%, it has created the world's largest e-commerce market and it is anticipated that penetration will double in five years. Alibaba said along with China's economic development, 2019 e-commerce market will reach us $ 1.97 trillion (about 12.52 trillion yuan).

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