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Alibaba share prices eased after quarterly results

Posted by Aliuser on Mar 18, 2010 in Alibaba Financial Results, Alibaba Hong Kong

Alibaba.com (HKSE1688) shareholders took profit Wednesday on news that the China largest business to business (B2B) company’s fourth-quarter net profit rose 49% from a year earlier as a result of its growing number of members and revenue.

Total revenue in Q4 2009 was up 35.8 per cent year-on-year to RMB 1.1 billion
Q4 net income up 48.6 per cent over Q4 last year

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Alibaba.com (HKSE1688) closed 5.91 per cent lower at HK17.20 yesterday. Some attributed the shares sell-off to profit-taking, some on the other hand said they sold the shares as there’s no dividend payable.

Revenue rose 36 percent to RMB 1.11 billion from RMB 814.2 million year on year. Despite the quarterly profit, net income for the full calendar year was down by double digits. Alibaba said its 2009 profit fell 12 percent to RMB 1.01 billion because of adverse business conditions in the first half, technology investments and losses on its business management software division.

Results also included a combined annual loss in its Alisoft business of RMB22.8 million. The acquisition of HiChina, completed in December 2009, had no significant impact on annual results.

Revenue from the International Marketplace division, which allows Chinese exporters to market products to overseas buyers, rose 41 percent to RMB 687.1 million, Alibaba said.

The China Marketplace division, which operates the company’s domestic Web site, increased sales 27 percent to RMB 402 million, it said.

Alibaba will focus on growing its China Web site division this year, with continuous efforts to building up new marketing initiatives in the US, Japan and India in the second quarter, Alibaba chief executive officer Mr David Wei said.

The company plans to release a new China TrustPass at a lower price of RMB1688 later in an effort to boost its number of paying users in China.

Growth in China’s international trade is expected to accelerate in the second quarter, before moderating in the following three months, Mr Wei said in a conference call with reporters. Customer data at Alibaba allows the company to project China’s exports performance several months in advance, he said.

“We should not expect a sustainable, growing recovery,” Wei said, citing high unemployment in the U.S., and financial issues in Europe for his forecast. “It’s a concern for the global economy.”

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