Alibaba Group Holding Limited (BABA: NYSE) announced its financial results for the quarter ending on September 30, 2019. The stronger-than-expected performance presages hefty returns in this year's Double 11 shopping spree.
The Hangzhou-based e-commerce giant announced a quarterly revenue of CNY 119,017 million (USD 16,651 million), an increase of 40% year-over-year. Net income attributable to ordinary shareholders was CNY 72,540 million (USD 10,149 million), and net income was CNY 70,748 million (USD 9,898 million), which included a significant one-time gain acknowledged upon the receipt of the 33% equity interest in Ant Financial.
Annual active consumers reached 693 million, an increase of 19 million from the 12-month period ending on June 30, 2019. Mobile MAUs jumped to 785 million in September 2019, an increase of 30 million over June 2019.
Alibaba's core business, which takes 85% of total revenue, includes Taobao and Tmall, the leading e-commerce platforms, new retail (the digital transformation of brick-and-mortar stores, such as Freshippo), local consumer services (Cainiao Networks) and international e-commerce platform, Lazada.
Since Alibaba acquired NetEase's imported e-commerce platform, Kaola, its global business under Tmall Global is set gain synergy in users, revenue and cost.
According to Alibaba, the Tmall Global and Kaola platforms will continue to operate independently while integrating technology, consumer insights and middle office functions to achieve optimization.
On October 21, 2019, Alibaba kicked off preparations for the Double 11 Global Shopping Festival. The festival this year will focus on catalyzing demand for new brands and products, as well as supporting the ongoing consumption upgrade across China. Over 200,000 brands, including more than 22,000 brands on Tmall Global, will participate in this event, with millions of new products available to consumers.
The forthcoming event will be the 11th Double 11 Shopping Festival. Alibaba, JD.com and Pinduoduo, the top three players in China's e-commerce sector, will again join the vigorous competition in pushing new products, aspirational brands, rural markets and live streaming. The festival is not only the most important time to achieve annual revenue goal for many players, but also a testing ground for strategic movements for the coming new year.