Home » Alibaba, accounts in the red for the first time: the maxi fine of the Chinese Antitrust weighs in

Alibaba, accounts in the red for the first time: the maxi fine of the Chinese Antitrust weighs in

by admin

There is always a first time. Also for Alibaba, whose accounts ended up in the red, due to the record fine of 2.8 billion dollars imposed by the Chinese Antitrust for abuse of dominant position.

The e-commerce giant founded by Jack Ma accused an unusual operating loss of 1.17 billion dollars as of March 31, 2021, having decided, based on accounting rules, to anticipate the impact of the maxi fine imposed in the financial statements by the Beijing Antitrust Authority on 10 April.

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The ballast of the fine

Without the extraordinary item, a note reads, operating profit would have been up by 48% per year, to 10.563 billion yuan (1.612 billion dollars). For the full fiscal year at the end of March, the operating result dropped 2%, to 89.678 billion yuan (13.688 billion dollars), discounting both the maxi fine and “the expenses due to compensation paid to group employees for shares of the fintech arm Ant Group “, whose record-breaking $ 35 billion IPO was blocked in November 48 hours after its debut on the Hong Kong and Shanghai stock exchanges in the wake of a harsh speech by Ma against regulators held in late October.

Revenues, on the other hand, grew by 41%. In a statement, CEO Daniel Zhang assured that Alibaba will continue to “support our merchants and invest in new businesses and key strategic areas”.

Alibaba, Tencent and other major Chinese tech players have come under the crosshairs of the Communist leadership, committed to curbing dominant digital platforms and regulating their businesses that have achieved unprecedented influence on the daily lives of hundreds of millions of consumers.

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