The company repurchased the equivalent of 524 million common shares, or 65 million American Depositary Shares (ADS), in the first three months of this year, compared with the same period last year, according to a stock exchange filing late Tuesday. (US$1.9 billion). It spent USD 2.9 billion in the last three months of 2023.
Alibaba Group used up a total of $12.5 billion in cash held through share buybacks in the fiscal year ended March 31, compared with $10.8 billion in the previous 12 months, according to the filing. As of December 31 last year, the company had just under $92 billion in cash and cash equivalents.
Alibaba Group, based in Hangzhou in eastern Zhejiang province, is the owner of the South China Morning Post.
The e-commerce group had previously increased the program by US$25 billion, extending dry powder to US$31.9 billion until March 2027. The company said the decision underscored the board's confidence in its business outlook, while boosting earnings per share and cash. Flow for shareholders.
“The robust implementation of our share repurchase program demonstrates strong confidence in our company. [the] It will help realize the company's future growth and our commitment to increasing shareholder value,” the company said in a separate statement on Tuesday. The move is consistent with the company's focus on “unlocking value and improving shareholder returns.”
Can Alibaba's HK$5 billion plan bring Hong Kong movies back to the world stage?
Can Alibaba's HK$5 billion plan bring Hong Kong movies back to the world stage?
Analysts tracking the stock remain pessimistic about its outlook. They cut their 12-month price targets for Alibaba stock by 14-15% this year to HK$102.75 and US$106.50, according to data compiled by Bloomberg.
In his first earnings call as chairman in November 2023, co-founder Joe Tsai highlighted the company's cash use priorities, including investing in future growth and stock buybacks and dividend distribution plans. The implementation of the rebate program has been announced.
01:53
Alibaba appoints co-founder Joe Tsai as chairman, surprise shake-up following Daniel Zhang's resignation
Alibaba appoints co-founder Joe Tsai as chairman, surprise shake-up following Daniel Zhang's resignation
The stock price also fell slightly after the group rolled back some of its targets under an internal restructuring. These include canceling plans to spin off its cloud computing business, freezing the listing of grocery chain Freshippo and withdrawing the listing application of Hong Kong's Cainiao Smart Logistics.
Tsai said in a conference call in February that Alibaba is not rushing to list Cainiao or Freshippo because market conditions are “simply not in a position where we believe we can truly reflect the true intrinsic value of the companies.” said.
Additional report by Li Jiaxing
