In China's fast-growing digital landscape, Alibaba and Tencent have the power to dominate. Not long ago, Tencent's earnings performance, evaporation of more than 160 billion dollars in market capitalisation, seems to be in jeopardy.
At that time, the analysis that Joari's financial results met with cold, at the peak of the demographic dividend, may mean that China's internet economy will gradually downward.
Fortunately, compared with Tencent's ' cold wave ' period, Alibaba experienced a relative ' warm ' quarter.
August 23 Night, Alibaba released the 2019 fiscal year Q1 earnings, its operating income of 80.9 billion yuan, an increase of 61%, the core business income of 69.188 billion yuan, the growth of 61% per cent, free cash flow 26.3 billion yuan, active users in the year compared to the previous year to increase 24 million ... However, the "running" of the data behind is mixed with some ' slowing ' pace.
Earnings showed that the net profit for the quarter was 7.65 billion yuan, down from 14.03 billion yuan a year earlier, 45%; the net profit attributable to ordinary shareholders was 8.685 billion yuan, down 41% per cent, not calculated by the United States General accounting standards, net profit of 20.1 billion yuan, and the same period last year.
Ali said the main reason for the decline was the effect of an increase in the cost of equity incentives associated with ant-service payments.
Four major sectors: Electric dealers run the most slow Earnings showed that Alibaba's total revenue this quarter is 80.92 billion yuan, an increase of 61%.
On the data, Ali has maintained more than 55% per cent of revenue growth for 9 consecutive quarters. Fast growth is still coming from the core of the power of the electricity business pull. This quarter, Ali Core electric business revenue of 69.1 billion yuan, accounting for the total revenue of 86%, an increase of 61%.
Prior to that, the electricity quotient accounted for about 81%. Second, Aliyun business and entertainment also created nearly billions of revenue, respectively, reached 4.69 billion and 5.97 billion. Among them, the growth rate of Aliyun reached 93%, the growth rate of the big entertainment is 46%.
and innovation and other business revenue for 1.059 billion yuan, an increase of 64% per cent.
From the four sections of Ali, the growth of the largest entertainment is the slowest. It is noteworthy that in June 2018, Mobile monthly live users net increase of 17 million, to 634 million, and the growth rate has a small price.
It is believed that nearly a year and the rise of the vertical electricity quotient, more or less share the market, but compared to the status of Taobao still can not shake. Easy to view the release of the app list also confirms this statement: In March this year, Taobao in the integrated electricity industry penetration rate reached 76.2%, Jingdong 28.6%, the cat and Suning easy to buy three or four.
The top four status is already in a stable state.
Although a lot of hype, known as the user reached 300 million, but Taobao also launched a ' special edition ', the user's operating strategy from the ' consumption upgrade ' transformation to ' consumption rating ', to a certain extent ' sniper ' a lot of ambition. In terms of the annual monthly life, it was 24 million higher than the previous year.
Outsiders believe that Taobao's user sinking strategy has been gradually effective, the current rural Taobao has been set up in the country 30,000 villages to Amoy Point, directly to the rural consumers.
Profit easing: Ant equity reward back pot? Net profit is often a measure of the results of business operations. The quarter, according to General accounting standards, net profit of 7.65 billion yuan, down 45% year-on-year.
Not according to the United States General accounting standards, as a result of excluding non-recurrent profit and loss, net profit of 20.1 billion yuan, and the same period last year. Alibaba said that because of the huge increase in the value of ant-Service, employees awarded the Ant-Related equity awards for Non-cash spending reached 11.18 billion, employee equity incentive total expenditure reached a record high of 16.378 billion, leading to a decline in quarterly profits.
The quarterly earnings will rise 33% per cent year-on-year, if the impact of the dividend-related incentive payments is removed. In fact, as early as in 2014, Alibaba signed an agreement with the ant, the ant in the annual payment to Alibaba to pay the intellectual property and technical services, the amount of money is equivalent to 37.5% of the profit before the ant tax. In this quarter, the ant's Gold clothing to Ali to pay profits divided into total 910 million yuan, the year-on-year decrease of 53.7%.
The main reasons for the reduction are user access, product innovation, and investment in international expansion. At that time, the agreement also stated that, under the conditions allowed, Alibaba has the right to buy shares and hold 33% of the ant, and transfer the corresponding intellectual property rights to the ant, the service fee agreement will also be terminated synchronously.
In February this year, Alibaba announced a stake in Ant 33%.
But according to the near Ant, the gold-clothing people said that the current stake has not yet been finalized, so the ant still need to pay Ali profit share.
Set up the company: Independent financing kill the United States map?
In addition to regular data, the biggest bright spot in earnings reports is the establishment of a holding company, with a hungry and word-of-mouth two business, the executive chairman of the company will be Alibaba Group CEO Zhang Yong concurrently. Zhang Yong in the earnings analyst meeting said that in the local Life service field, Ali will not only invest money, but also put technology and other resources to help Word-of-mouth and hungry mody in the local life market occupies an important market share and position.
At the same time, hungry for the large-scale real-time distribution network, will also be in Ali's new retail business chemical reaction, resulting in significant value.
Ali also announced independent financing of the company, has received from Alibaba, SoftBank Group and other investors of more than 3 billion U.S. dollars investment commitments.
Outside analysis that the establishment of a new company is important to play their own advantages and coordinated combat, in order to combat the upcoming listing of the United States, this is also the Department of Ali and Tencent in the new retail area of another showdown, local life market or face shuffle.
In addition, the quarter Ali also continued to increase in the new retail, logistics, payment, cloud computing and other business units of investment.
This May, Ma Yun at the 2018 Global Wisdom Logistics Summit also talked about his investment philosophy: ' Some people say that we invest too aggressively, said we have invested nearly 30 billion dollars, but this is just the beginning, I have confidence in the Chinese industry, why not invest? No investment is not confidence, but will not blindly investment '. Reading Ali's earnings: Running the revenue, slowing the net profit, the ambition of the slaughter