Friday, June 20, 2014

Alibaba Group’s first quarter revenue up 38%

News this week: The Alibaba Group, China’s largest e-commerce company, reported first quarter results which ended 31st March 2014. The company posted a net profit of US$893 million, an increase of 32% over the same period last year. Revenue was up 38% to US$1.9 billion. This represents a slowing of the growth rate which was 62% in the first quarter of 2013.

The company also revealed the composition of its 27-member “Partnership” in an amended IPO filing. The “Partnership” will have exclusive right to nominate a majority of the company’s nine-member board post-IPO. Consisting primarily of members of Alibaba’s current management team, the “Partnership” includes company founder and executive chairman Jack Ma, executive vice chairman, Joseph Tsai, and CEO, Jonathan Lu.

Ma, Tsai, and Lu, will also be a part of Alibaba’s board of directors post-IPO. They will be joined by SoftBank’s chairman and CEO Masayoshi Son. The company also named four independent directors. They include Hong Kong’s former Chief Executive Tung Chee Hwa, Yahoo Inc’s co-founder Jerry Yang, J. Michael Evans, former vice chairman of Goldman Sachs Group, and Walter Kwauk, a former-Alibaba executive.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

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