Chinese billionaire Jack Ma is not the only winner in Alibaba’s success

Friday, 19 May 2017, 10:53:36 AM. CHINESE e-commerce giant Alibaba has almost doubled its profit to $2 billion on the back of soaring growth in online shopping.
Alibaba, which has made billionaire founder Jack Ma one of China’s richest men, is a dominant player in online commerce and its robust earnings highlight the strength of the sector even as the country’s broader economy sputters. In its quarterly results released on Thursday, the company revealed its net profit attributable to ordinary shareholders soared 98 per cent from a year ago to $2 billion (10.65 billion yuan) in the quarter ended March 31. That was on the back of a faster-than-expected 60 per cent surge in revenue to 38.58 billion yuan — a key figure for gauging China’s increasingly important consumer sector. And while the online shopping giant has been raking in billions, a raft of Australian businesses have been profiting along the way. Chemist Warehouse, Goat soap and Banaban Virgin Coconut Oil are among local companies to have tallied millions of dollars worth of sales from selling their wares Alibaba’s platforms, while savvy Gen Y entrepreneurs like New Zealand’s Iyia Liu have gotten rich by reselling products bought on the site. Flush with cash, Alibaba said it had authorised an $8 billion ($US6 billion) buyback to take place over two years. “Our robust results demonstrate the strength of our core businesses, as well as the positive momentum of our emerging businesses, including cloud computing, where we continue to see strong growth,” said Maggie Wu, Alibaba’s chief financial officer. Full-year net profit fell 39 per cent to $US8.6 billion (43.68 billion yuan),...Read more
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