Beijing (AFP) – Internet giant Alibaba posted on Thursday a six percent increase in annual revenue, the latest positive sign for China’s tech sector despite persisting economic uncertainties. The Hangzhou-based company is one of the biggest players in China’s tech industry, with operations spanning retail, digital payment, artificial intelligence, and entertainment.
This year has seen its share price rollercoaster on a wave of investor enthusiasm about Chinese AI capabilities that began in January, followed by a steep drop last month triggered by US President Donald Trump’s global trade blitz. The firm’s revenue during the fiscal year ended March 31 totalled 996.3 billion yuan ($138.2 billion), according to results posted to the Hong Kong Stock Exchange, up six percent from the previous twelve-month period. Net income attributable to ordinary shareholders rose to 129.5 billion yuan, the statement showed, a jump of 62 percent year-on-year according to AFP calculations.
In the final quarter alone, Alibaba saw revenue of 236.5 billion yuan, narrowly coming up short of a Bloomberg forecast. Net income attributable to ordinary shareholders during the quarter reached 12.4 billion yuan, surging 279 percent from the low base of 3.3 billion yuan recorded during the same period last year. “Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our ‘user first, AI-driven’ strategy, with core business growth continuing to accelerate,” said CEO Eddie Wu in a statement.
The growth is another positive sign for China’s tech sector, which has garnered revamped interest from investors since the shock release in January of advanced AI chatbot DeepSeek — apparently developed for a fraction of the cost thought necessary. Alibaba and fellow tech giants Tencent and Baidu are now funnelling large sums in a new race to develop and integrate the most cutting-edge AI applications.
© 2024 AFP
