BEIJING, Aug 10 (AFP): Chinese e-commerce giant Alibaba announced an unexpected 14 per cent on-year increase in quarterly sales on Thursday, following several difficult years and in spite of a broader economic slowdown.
Alibaba is a key player in China's expansive digital economy and the operator of a major online shopping platform.
The Hangzhou-based group's performance is therefore considered a barometer of domestic consumption, which has flagged in recent months.
China entered deflation Wednesday for the first time since 2021, the latest in a long string of indicators reflecting a slowdown in the world's second-largest economy.
In the first quarter of its financial year starting on April 1, Alibaba's revenue amounted to 234.1 billion yuan ($32.5 billion), higher than analyst forecasts.
Alibaba's net profit was also up 51 per cent on-year, reaching 34.3 billion yuan during the April-June period.
The latest financial results come as Alibaba embarks on the biggest restructuring in its history.
Announced in late March, the plan involves splitting the group into six distinct entities that will be able to separately pursue funding through public listings.
"Alibaba delivered a solid quarter as we continue to execute our Reorganisation, which is beginning to unleash new energy across our businesses," CEO Daniel Zhang said in a statement.
Zhang, a key figure in the company's early development, is on his way out as CEO, but will remain with the group to lead its lucrative cloud computing branch, on which Alibaba is betting heavily.
