doublebonuspoker| The stock price dropped 8%! Alibaba's financial report comes out, and another dividend dividend of nearly 30 billion yuan
After a year of active change, the financial report of Alibaba Group, which has attracted much attention, was released.
On May 14, Alibaba Group released its results for the fourth quarter and the whole year of fiscal year 2024 (April 2023-end of March 2024). According to the financial report, Alibaba Group earned 2218 yuan in the fourth quarter.Doublebonuspoker.74 billion yuan, up 7% from the same period last year, exceeding market expectations; adjusted EBITA (profit before interest, tax and amortization) fell 5% year-on-year to 23.969 billion yuan, and adjusted net profit fell 11% to 24.42 billion yuan. Revenue in fiscal year 2024 reached 941.168 billion yuan, an increase of 8% over the same period last year; adjusted EBITA increased by 12% to 165.028 billion yuan, and adjusted net profit increased by 11% to 157.479 billion yuan.
On the night of the release of the results, Alibaba said that the board of directors had approved the payment of dividends for fiscal year 2024, including annual regular cash dividends and one-time special cash dividends, totaling about $4 billion (nearly 30 billion yuan). This is the second time Alibaba has announced an annual dividend, totaling about $2.5 billion in fiscal year 2023.
In addition, Alibaba is expected to complete the major listing conversion in Hong Kong by the end of August 2024. Upon completion of the conversion, Alibaba will be listed on both the main board of the Hong Kong Stock Exchange and the New York Stock Exchange.
After the results, Alibaba's US stock fell before trading and continued to fall more than 8 per cent after the opening.
The latest quarterly net profit fell
Over the past year, Alibaba Group has taken the initiative to change, focusing on the strategic direction of "user first and AI driven". It has firmly invested in the three major areas of Taobao Tmall's core user experience, core public cloud products and AI infrastructure, and overseas e-commerce.
These investments have accelerated business growth and reduced quarterly profits. Alibaba reported that revenue in the fourth quarter was 221.874 billion yuan, up 7% from the same period last year; adjusted EBITA fell 5% to 23.969 billion yuan, and adjusted net profit fell 11% to 24.42 billion yuan, mainly due to increased investment in e-commerce business and retention incentives granted to rookie employees. Due to the decline in the market value of the listed companies invested, the net profit reflecting the investment profit and loss fell in the fourth quarter. If the loss of investment, equity incentive fees and impairment of intangible assets are not taken into account, the net profit of non-GAAP in the fourth quarter is 24.418 billion yuan.
In the fourth quarter of fiscal year 2024, Alibaba Group announced that in order to better strengthen coordination with Alibaba's e-commerce business and continue to support Cainiao in expanding its global logistics network investment, it decided to withdraw Cainiao's application for listing and offered to acquire Cainiao's minority shareholders and employees' already owned shares. The amount involved in the acquisition reached $3.75 billion.
In fiscal year 2024, the operating profit of Alibaba Group was 113.35 billion yuan, an increase of 13% over the same period last year. Non-GAAP net profit was 157.479 billion yuan, an increase of 11% over the same period last year.
Wu Yongming, chief executive of Alibaba Group, said that the quarterly results show that the group's strategy is working and that Ali is returning to the growth track. "by focusing on user experience, both Taotian and international e-commerce GMV have achieved double-digit year-on-year growth." At the same time, he said that the group is also pleased to see the accelerated growth of customers of AI products and related cloud computing revenue.
AI-related revenue growth accelerates
In the fourth quarter of fiscal 2024, Aliyun's revenue grew by 3% compared with the same period last year, of which core public cloud product revenue achieved double-digit year-on-year growth, while AI-related revenue growth accelerated and continued to achieve triple-digit year-on-year growth. At the same time, Aliyun continued to be profitable, with an adjusted EBITA growth of 45 per cent year-on-year.
The explosion of AI technology innovation and application has led to the growth of traditional cloud computing demand. It is understood that Aliyun actively invests in the product matrix of cloud computing, especially AI infrastructure, while comprehensively promoting the industrial application of AI large models.
At present, Aliyun has established strategic cooperation with most of the head China large model companies. Just last week, Ali's self-research model Tongyi Qianqian released version 2.5, which scored as much as GPT-4Turbo on the authoritative benchmark OpenCompass. At the end of April, the open source 110 billion parameter model Qwen1.5-110B topped the list of HuggingFace open source models.
In other businesses, the latest quarterly revenue of the local life group increased by 19 per cent compared with the same period last year, with annual revenue of nearly 60 billion yuan and a 25 per cent year-on-year loss reduction. In fiscal year 2024, the revenue of the big entertainment group increased by 15% compared with the same period last year, and its losses narrowed compared with the same period last year.
Announce the dividend again
On the night of the release of the results, Alibaba said that the board of directors had approved dividends for fiscal year 2024, including annual regular cash dividends and one-time special cash dividends, totaling about $4 billion. At the same time, Alibaba continues to implement the share buyback plan and continues to improve shareholder returns, demonstrating his confidence in future development.
According to the financial report, regular cash dividends for fiscal 2024 amount to $0.125 per common share or $1 per American depositary share, respectively, and as an one-time special cash dividend for the disposal of income from certain financial investments, the amount is $0.0825 per common share or $0.66 per American depositary share, both of which are paid to common share holders and American depositary share holders in US dollars.
This is the second time Alibaba has announced an annual dividend, totaling about $2.5 billion in fiscal year 2023.
In the fourth quarter of fiscal year 2024, Alibaba continued to implement the share buyback plan. Under the share repurchase plan, Alibaba bought back 524 million common shares (equivalent to 65 million American depositary shares) for a total of $4.8 billion, significantly stronger than in the previous quarter. Alibaba's outstanding shares fell by a net 2.6 per cent in the fourth quarter after taking into account shares issued under the employee stock ownership plan.
In fiscal year 2024, Alibaba bought back a total of 1.249 billion common shares (equivalent to 156 million American depositary shares) for a total of $12.5 billion, which net reduced Alibaba's outstanding shares by 5.1 per cent after taking into account shares issued under the employee stock ownership plan.
Xu Hong, chief financial officer of Alibaba Group, said, "Alibaba Group performed strongly in the fourth quarter, with revenue growing by 7% over the same period last year. Our strong investment in strategic priority business has achieved initial results, and we are full of confidence in business prospects." We will continue to live up to our commitment to improve shareholder returns. "
The dual major listing in Hong Kong is expected to be completed by the end of August.
According to the financial report, Alibaba is expected to complete the major listing conversion in Hong Kong by the end of August 2024. Upon completion of the conversion, Alibaba will be listed on both the main board of the Hong Kong Stock Exchange and the New York Stock Exchange.
On July 26, 2022, Alibaba Group announced that the board of directors had authorized the management of the group to submit an application to the Hong Kong Stock Exchange to add Hong Kong as the main listing place. It is expected that the dual major listing status will help expand the investor base and bring new liquidity to Alibaba. Alibaba expressed the hope that a wider range of investors, especially Alibaba digital ecological participants in China and other parts of the Asia-Pacific region, can share Alibaba's growth and future.
Great changes in history
In March last year, Alibaba initiated the most important organizational change in history, that is, the organizational change of "1-6". After more than a year of reform, Alibaba's new strategic focus and development path have been clearly presented.
With Wu Yongming's "dual grasp" of Taotian and Ali Yun, Alibaba's formation of focusing on strategic core business development has basically taken shape. Tsai Chongxin and Wu Yongming formally took over as chairman and CEO of Alibaba Group in September last year. Subsequently, Wu Yongming announced the establishment of the two strategic priorities of "user first and AI-driven", and combed the business around these two priorities to reshape the strategic priorities of the business, while rejuvenating the management team.
Wu Yongming disclosed the big picture of the new strategy to the outside world on the conference call, defining Ali's important priorities for the next decade into three directions.DoublebonuspokerTechnology-driven Internet platform business, AI-driven technology business, global business network.
At that time, Wu Yongming announced that for the core business, Ali Group will maintain long-term focus and high-intensity resources and R & D investment, while each business is based on independent business units and faces the market independently.
It is worth noting that Wu Yongming made a judgment and trade-off on Aliyun's strategic direction, determined that Aliyun will implement the strategy of AI-driven and public cloud priority in the next five years, and made drastic adjustments to the business management team.
Prior to this, Aliyun Intelligence, as one of the six major business groups, had planned to completely spin off from Ali Group and complete its listing. However, Alibaba Group's earlier financial report revealed that in view of many uncertain factors, it will no longer promote the complete spin-off of Cloud Intelligence Group. At the same time, Alibaba will resolutely increase his continuous strategic investment in Aliyun to ensure that Aliyun focuses on the development strategy of "AI+ cloud computing" and to build leading cloud computing services in the AI era.
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