LONDON — The decadelong, continuous growth at Alibaba has come to an end, and profits are falling in the double digits.
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In the previous quarter, the company logged a growth of 9 percent, which was already a new low since it went public in 2014.
Net income in the June quarter was 20.29 billion renminbi, or $3.03 billion, down 53 percent from 45.1 billion renminbi year-over-year.
The company’s core China commerce segment saw gross merchandise value from Taobao and Tmall, decline midsingle-digit year-over-year, excluding unpaid orders.
Fashion and accessories, as well as the consumer electronics business, were down due to the impact of the Shanghai lockdown that resulted in supply chain and logistics disruptions in April and May.
The Hangzhou-based company said the business started to recover by end of May as the 6/18 shopping festival was strongly supported by merchants and consumers.
Rival JD.com logged a 10.3 percent increase in total gross merchandise value compared with last year, while Alibaba didn’t reveal any figures around 6/18.
Alibaba’s international commerce retail unit, which includes Lazada, AliExpress, Trendyol and Daraz, saw the combined number of orders decrease by 4 percent in the period.
The company said the change was primarily driven by declining orders of AliExpress due to changes in the European Union’s VAT rules, depreciation of the euro and conflicts between Russia and Ukraine.
Daniel Zhang, chairman and chief executive officer at Alibaba Group, said the company remains “confident in our growth opportunities in the long term, given our high-quality consumer base and the resilience of our diversified business model catering to different demands of our customers.”
Toby Xu, Alibaba Group’s chief financial officer, added, “We recently shared our plan to add Hong Kong as another primary listing venue. By becoming primary listed on both Hong Kong and New York stock exchanges, we aim to further expand and diversify our investor base.”