Business Description

Alibaba Group Holding Ltd. offers online and mobile marketplaces that facilitate wholesale and retail commerce. It operates through the following business sectors: Core Commerce, Cloud Computing, and Digital Media & Entertainment. Core Commerce comprises platforms that offer wholesale and retail services. Alibaba Cloud’s Cloud Computing segment includes Alibaba Cloud.

Alibaba Cloud offers elastic computing and storage as well as content delivery networks, management, and application. Big data analytics, security, management, and management are some of the other services offered to enterprises in different industries. Digital Media & Entertainment relates to Youko Tudou’s UC Browser business. The Innovation Initiatives and Others segments include businesses such AutoNavi and DingTalk and Tmall Genie. Chung Tsai Yun Ma and Yun Ma started the company in Hangzhou, China on June 28, 1999.

Key Financials

Revenue (US$ Mn):

• US$ 1,09,480 Mn was the annual revenue generated by Alibaba Group Holding Ltd. in 2021
• Alibaba Group Holding Ltd.’s annual revenue for 2020 was US$ 72,876 Mn, a 29.26% increase from 2019
• From 2018’s annual revenues, Alibaba Group Holding Ltd. registered a 42.17% increase in 2019, amounting to US$ 56,381 Mn
• Total revenue of US$ 39,657 Mn was generated in 2018 by Alibaba Group Holding Ltd.

Operating Income (US$ Mn):

• Alibaba Group Holding Ltd.’s operating income for 2021 was US$ 13,848 Mn, a 4.14% increase from the 2020
• The operating income generated by Alibaba Group Holding Ltd. in 2020 was US$ 13,297 Mn
• At a -22.51% decrease from , Alibaba Group Holding Ltd.’s operating income of US$ 8,640 Mn was indexed in 2019
• Alibaba Group Holding Ltd. generated an operating income of US$ 11,150 Mn in 2018

Net Income (US$ Mn):

• Alibaba Group Holding Ltd.’s net income for 2021 was US$ 23,252 Mn, an 8.83% increase from 2020
• The net income generated by Alibaba Group Holding Ltd. in 2020 was US$ 21,365 Mn
• At a 29.47% increase from , Alibaba Group Holding Ltd.’s net income of US$ 13,149 Mn was indexed in 2019
• Alibaba Group Holding Ltd. generated a net income of US$ 10,156 Mn in 2018

Operating Margin %:

• 6% was the operating margin generated by Alibaba Group Holding Ltd. in 2021
• Alibaba Group Holding Ltd.’s operating margin for 2020 was 6%, a -3.28% decrease from 2019
• From 2018’s operating margins, Alibaba Group Holding Ltd. registered a -17.57% decrease in 2019, amounting to 6%
• An operating margin of 7% was generated in 2018 by Alibaba Group Holding Ltd.

Gross Margin %:

• Alibaba Group Holding Ltd.’s gross margin for 2021 was 23%, a -0.43% decrease from 2020
• The gross margin generated by Alibaba Group Holding Ltd. in 2020 was 23%
• At a -1.28% decrease from, Alibaba Group Holding Ltd.’s gross margin of 23% was indexed in 2019
• Alibaba Group Holding Ltd. generated a gross margin of 23% in 2018

Swot Analysis

Strength

R&D is the focus

Alibaba invests in technology to create high-performance and energy-efficient products. Research and development personnel are employed by the company to develop new online and mobile products and build technology platforms. The company spent CNY13.788 million in R&D activities during FY2020 for product development.

The company had 14,503 patent applications publicly filed and 7,845 patents issued in China as of March 31, 2020. The company had 11800 patent applications publicly filed and 3993 patents issued in different countries and jurisdictions around the world. Its focus on R&D allows it to keep up with industry changes and gives it a ‘first-mover’ advantage by launching new products before its competitors.

Increased revenue boosts investor confidence in the company

Alibaba saw steady revenue growth in the last year. A company’s strong financial performance increases investors’ confidence and allows it to expand its business. The company’s FY2020 revenue was CNY509 711 million, compared to CNY376,844 million in FY2019. This represents an annual growth rate of 4.6%. It also grew at a CAGR of 49.8% between 2016 and 2020.

All business segments saw positive results. The Cloud Computing segment saw 62% growth over the previous fiscal. Core Commerce had 34.8%, Innovation Initiatives and Others reported 42.4%, Core Commerce had 34.8%, and Digital Media and Entertainment reported 11.9% revenue growth during that period.

Get this premium content

The Premium data is Locked

Buy Now to Unlock Premium Data

Request Sample Data