On Aug. 4th, Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE: BABA) reported revenues of $30.4 billion for its April-June 2022 quarter, which are down by 0.1% compared to the same period in 2021. It’s the first time since listed in 2014 that the firm failed to post revenue growth due to China’s COVID-19 outbreaks and pandemic-related supply chain disruptions. However, the figure still beats the average estimated revenue of $30.09 billion from analysts. During the quarter from April to June 2022, the Chinese economy reported its weakest growth rate in more than two years, as the country stuck to its zero-tolerance policy to combat COVID-19. The GDP only rose by 0.4% annually throughout the period.
The regulatory pressure on Alibaba is rising as well. On July 29th, the U.S. Securities and Exchange Commission added Alibaba to a list of Chinese companies at risk of being delisted from the U.S. exchanges if their audit papers can’t be inspected before the spring of 2024. The firm replied this week that it would “strive to remain” its listing status on both NYSE and HKG.
- Alibaba Posts First Revenue Decline Since Going Public. The Wall Street Journal
- Alibaba revenue beats expectations despite contraction, The Washington Post