Saturday, February 25, 2012 up 15% in revenue in 2011

News this week: Hong Kong-listed released its 2011 financial results earlier this week. Revenues in the year increased 15% reaching US$1.02 billion. The company’s International Marketplace generated 58% of total revenues (US$596 million), up 16%; while its China Marketplace contributed another 35% (US$352 million) and grew 17%. Profit attributable to company grew 17% to US$272 million. Diluted earnings per share were RMB 0.338 (US$0.0537) in 2011.

The Hangzhou-based company also increased its number of registered users – rising by 24% to more than 76 million. This figure includes users on both its China and International Marketplaces. The International Marketplace accounts for just over 25.5 million of the total registered users. However, paying users dropped from more than 809,000 in 2010 to about 765,000 in 2011 – a 5.4% decrease. China Gold Suppliers (paid users on its International Marketplace) dropped 18% from 121,000 in 2010 to 99,000 last year. Paid members on the China Marketplace dropped 2.8% from 678,000 to 659,000.

The company claimed the decrease in the number of paying member to the strategy to improve the quality of suppliers on the platforms. The number of fraud complaints lodged against paying members in December 2011 was down approximately 70% compared with December 2010. Also, the increased user base contributed to increasing user traffic and buyer activities. In December, overseas daily average traffic in terms of unique visitors saw year-on-year growth of 58%.

On the same day, the Alibaba Group proposed privatization of The group proposal offers minority shareholders HK$13.50 per share, which was a premium of 60% over the 60-average closing price of shares before 21st February. The share closed at HK$13.20 yesterday.

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1 comment:

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This is a contributed article and was published on
Chillibreeze in October, 2005.