Alibaba Group Holding Ltd. (BABA) is a holding company legally based in the Cayman Islands that operates e-commerce businesses through its Chinese subsidiaries and variable interest entities (VIEs). The company also offers cloud computing and provides digital media and entertainment platforms.
Key Takeaways
- Alibaba provides e-commerce solutions and cloud computing platforms to consumers and businesses.
- Alibaba's digital retail business is the company's largest revenue contributor.
- Amazon is one of Alibaba's competitors.
Alibaba Industries
Alibaba's competitors include global and regional e-commerce companies such as Tencent Holdings (0700) and Amazon.com Inc. (AMZN). Alibaba also has businesses in cloud computing and digital media and entertainment, which put it in competition with companies specializing in those markets.
Alibaba's e-commerce division includes Taobao and Tmall Group (TTG), which support the domestic China consumer and business-to-business markets, and Alibaba International Digital Commerce Group (AIDC), which has platforms for the international consumer and business-to-business markets. Its on-demand delivery business, Ele.me, supports the delivery of fresh and perishable goods purchased through e-commerce. Alibaba subsidiary Cainiao provides the company's supply chain, transportation and delivery capabilities.
The company's cloud computing division offers elastic computing, storage, network infrastructure, security, big data and artificial intelligence (AI).
Alibaba's Finances
Alibaba files its financial statements with the U.S. Securities and Exchange Commission (SEC) in accordance with generally accepted accounting principles (GAAP) and also reports non-GAAP financial measures, such as adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITA.
In May 2024, Alibaba announced its financial results for fiscal year 2023, ending March 31, 2023. Net profit was $9.9 billion (RMB 71,332 million), up 9% from the previous year. Revenue was $130.4 billion (RMB 941,168 million), up 8% from the previous year. Alibaba reports revenue across seven segments.
- Taobao and Tmall Group: Including Taobao, Tmall, Xianyu, 1688.com
- Cloud Intelligence Group: Includes Alibaba Cloud
- Alibaba International Digital Commerce Group: Includes AliExpress, Trendyol, Lazada, Alibaba.com
- Cainiao Smart Logistics Network Co., Ltd.: Includes domestic and international logistics services and supply chain management solutions
- Local Services Group: Includes “Ele.me” and Amap
- Digital Media & Entertainment Group: Includes photos from Youku and Alibaba
- Everything else: These include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform, Fliggy and DingTalk.
History and Leadership
As of 2024, Joe Tsai serves as Alibaba's Chairman and Eddie Wu serves as its Director and CEO. The company was founded in 1999 by Jack Ma, a former English teacher from Hangzhou, China. The original team believed that the internet would enable small businesses to use technology to grow and compete in the national and global economy.
Recent developments
In 2023, Alibaba joined 200 of the world's leading sustainable companies as a member of the World Business Council for Sustainable Development (WBCSD). Alibaba will focus on leveraging its platform for broad-based decarbonization and will work with WBCSD members to avoid emissions. The LVMH Group, a leader in luxury goods such as Fendi and Givenchy, will partner with Alibaba in 2024 to expand its luxury retail experience in China using Alibaba's cloud technology.
What is Alibaba's Tmall?
Tmall was launched in 2008 and serves as a retail platform for Chinese and international consumers. It stocks a range of domestic and international branded products.
Where is Alibaba?
Alibaba has operations in mainland China, Hong Kong SAR, Singapore and the United States, and has data centers in China, Indonesia, Malaysia, Australia, Singapore, UAE, Germany, the UK, Japan and the US.
What does the name “Alibaba” mean?
Alibaba founder Jack Ma chose the name because it is easy to pronounce in many languages. Alibaba also means “Open Sesame,” signifying that the company's platform opens doors to small business owners.
Conclusion
Alibaba is headquartered in China and specializes in e-commerce and cloud computing platforms. The company was founded in 1999. In 2023, Alibaba reported total annual revenue of over $130 billion from seven segments.
