Public company info - Alibaba.com Ltd. , 01688.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Alibaba.com Ltd., 01688.HK - Company Profile
Chairman Ma Yun
Share Issued (share) 4,294,967,295
Par Currency Hong Kong Dollar
Par Value 1.0E-4
Industry E-Commerce & Internet Services
Corporate Profile Business Summary: The Group maintains a number of business lines to provide software, technology and other related services primarily on the online business-to-business (“B2B”) marketplaces with the uniform resource locators www.alibaba.com and www.1688.com and under the trade name “Alibaba” (the “B2B services). The Group also renders other comprehensive Internet based services such as software applications, domain name registration, website hosting and solutions, email hosting and technology related consulting services on various marketplaces and platforms.” Performance for the year: Despite the challenges in global economy, The Group continued to report solid financial performance in 2011. As of December 31, 2011, The Group had 765,363 paying members in international and China marketplaces, representing a 5.4% decrease year-on-year. This decrease is due to tightened requirements for membership acquisition and renewal, a proactive measure that The Group undertook during the year to enhance trust and safety on platforms. Despite the decrease in the number of paying members, total revenue increased 15.5% from RMB5,557.6 million in 2010 to RMB6,416.9 million in 2011 due to the increase in revenue generated from the sale of value-added services in both marketplaces as well as higher revenue from AliExpress and HiChina. As a result of the increase in revenue, profit attributable to equity owners increased 16.6% from RMB1,469.5 million in 2010 to RMB1,712.7 million in 2011. Basic earnings per share increased 22.8% from 33.4 Hong Kong cents in 2010 to 41.0 Hong Kong cents in 2011. Business Review: Since early 2011, The Group have reiterated focus on long-term strategies of 1) building a trustworthy e-commerce platform by enhancing user quality and user experience, as well as strengthening the depth and the breadth of user information captured on platform; and 2) evolving business model by developing the performance-based and transaction-based services. Although The Group are faced with a complex economic environment, The Group remain focused on the execution of strategies to build a scalable and sustainable business model, driving long-term growth by increasing online activities between buyers and sellers. The Group have made significant progress in enhancing user quality in 2011. During the year, The Group stepped up efforts to combat fraud, strengthen the authenticity of user information and improve trust and safety measures. Although efforts resulted in decrease in paying members, as expected, The Group saw material improvement in increased traffic and reduced disputes in both International and China marketplaces. In 2011, The Group added 14.5 million registered users and more than 1.4 million storefronts in the two marketplaces. As of December 31, 2011, The Group had a total of 76.3 million registered users, 10.0 million storefronts and 765,363 paying members in both marketplaces. In addition, The Group mobilized more resources to develop performance-based and transaction-based services in order to expedite business model upgrade. The Group also streamlined service offering and made value proposition clearer to users. Although new business lines associated with these initiatives are still in early stage and require continued investment, The Group are pleased with their growth momentum. In 2011, The Group saw solid revenue growth despite a decline in membership base. total GAAP revenue grew by 15.5% year-over-year to RMB6.42 billion. Profit attributable to equity owners grew 16.1% year-over-year to RMB1.71 billion. The Group strongly believe that attracting higher-quality traffic will drive usage of performance-driven VAS and online transactions, resulting in a more balanced revenue mix in the long run. International marketplace In 2011, the number of registered users on international marketplace increased by 41.6% year-over-year, reaching 25.5 million as of December 31, 2011. The number of storefronts grew by 31.7% to 2.2 million. It is encouraging to see that strategy to improve the quality of suppliers on platforms is paying off. For example, the number of complaints lodged against paying members in December was down by abou70% year-over-year compared with December 2010. The increased user base contributed to increasing user traffic and buyer activities. In December, overseas daily average traffic in terms of unique visitor saw a year-on-year growth of 58%. Gold Supplier In 2011, The Group intentionally slowed down the pace of membership acquisition while The Group boosted the quality of suppliers. As of December 31, 2011, The Group had 99,005 China Gold Supplier members, representing an 18% reduction in the membership base from 2010. In the fourth quarter, The Group continued to see a sequential decline in China Gold Supplier membership. This decline was expected as strategy shifted away from aggressive customer acquisition, and also partially due to ongoing tight quality control of suppliers and the higher membership fee of RMB 29,800 which applied to all renewing members beginning in the fourth quarter of 2011. The renewal rate in the fourth quarter was slightly lower compared with previous quarters. As of December 31, 2011, The Group had 7,558 Global Gold Supplier members. During the year, The Group continued to stay focus on a few countries including India, Japan, South Korea and Turkey. In addition, The Group reviewed ouroverall strategy and operation for overseas markets as well as the business model so as to prepare ourselves to further tap the extensive supplier base outside the Greater China region in a more cost-effectivemanner going forward. From supplier’s perspective, The Group initiated rigorous measures to enhance the level of trust and safety of the Gold Supplier program. In early 2011, The Group set up a special task force to examine the nature of buyers’ complaints and internal quality systems to address the systemic nature of fraud issues that were reported in February 2011. The following steps were taken, among others: 1) Prevented risk-prone suppliers from joining; 2) Strengthened predictive methodologies through data monitoring to detect and track high-risk accounts; 3) Strengthened enforcement of take-down policies; 4) Revamped internal sales-incentive scheme and the structure of sales force. In October 2011, The Group started to roll out the “on-site inspection” program. This physical verification process conducted by Alibaba.com personnel represents a second level of verification that members are in valid existence in addition to the basic third-party authentication and verification that occurs when a supplier has to undergo when it joins Alibaba.com or renews as a paying member. This program has received a positive response from suppliers; some paying members requested on-site inspections before their memberships were due for renewal to highlight their credibility as the “on-site check” logo is clearly shown on product search results and storefronts of verified suppliers. Similarly, a paid service for in-depth verification, “Factory Audit”, also gained traction. From buyer’s perspective, since the second quarter of 2011 The Group have been collecting more user feedback, helping us to better monitor customer satisfaction and enhance user experience. To provide more protection for overseas buyers, The Group beta-launched a platform-wide escrow service and introduced an onlineservice allowing buyers to hire third-party inspectors to ensure orders are filled correctly before being shipped from China. To facilitate online sourcing, The Group added a multi-lingual system to present product information in several languages, and added multiple-location search that allows buyers to more easily findproducts and suppliers in targeted locations around the world. All in all, these features helped to attracmore buyers and overseas traffic to international marketplace as indicated by the buoyant growth in registered users and overseas unique visitors. ongoing development of value-added services remained on track in 2011. The Group continued to see growth in VAS revenue contribution and VAS penetration. VAS revenue contributed around 30% of China Gold Supplier revenue in 2011. Among VAS offerings, marketing-related VAS, including keyword and Product Showcase, were still the major drivers of VAS revenue. While retaining fixed-fee keyword model, in the first quarter of 2011 The Group introduced Ali-ADvance, which is a “pay-for-performance” model for keyword search. During the year, the adoption and usage of Ali-ADvance gained steadily. Going forward, The Group remain focused on strengthening trust and safety, growing overseas traffic and enhancingthe user experience. AliExpress Overall, the growth momentum of AliExpress remained strong in 2011. The Group achieved significant progress in AliExpress on all fronts including supplier base, buyer traffic, user experience and transaction volume. According to Alexa.com, as of the end of December, AliExpress continued to rank highest among all international business online transaction platforms. Although there was a temporary impact on GMV growth in the third quarter due to the August termination of Paypal as a payment option on AliExpress, the impact was much smaller than expected and the friction was removed in the fourth quarter. During the year, The Group spent most of effort on fundamentals: ensuring supplier and product quality, transaction security, improving logistics and enhancing online payment convenience. The Group launched afulfillment service to reduce the cost of international shipment. The Group also strengthened the trust and safety level of AliExpress by tightening control of counterfeit products and enhanced buyer protection by providingpayment protection and a refund program. In addition, The Group continued to streamline the online payment process. These efforts started to bear fruit as the number of disputes over product quality and supplier quality trended down while the payment success rate was satisfactory in 2011. In the third quarter, The Group launched the Assurance Plus program, not only making the buying experience on AliExpress safe and easy but also raising sellers’ trustworthiness. Assurance Plus status is available only to qualified suppliers who are able to meet requirements for rapid order dispatch, accurate product descriptions and free return shipping in cases where buyers are dissatisfied with product quality. The “Assurance Plus” logo is clearly shown on storefronts of qualified suppliers. In 2012, The Group will focus on attracting more quality suppliers, expanding the range of products, streamlining the online payment process and optimizing logistics. For suppliers, The Group look to shorten the payment collection period in order to reduce their working capital requirements and to encourage the completion of more transactions entirely online. China Marketplace Anticipating that China’s export markets would become increasingly challenging and volatile over time, in recent years, The Group has allocated more resources to grow China marketplace. Today 1688.com platform offers compelling advantages to suppliers and buyers who focus on China’s domestic trade. Therefore, it can play a major role in this development of China’s domestic market. China marketplace maintained steady growth in 2011. As of December 31, 2011, The Group had 50.8 million registered users and 7.8 million storefronts, representing growth of 16.1% and 13.7%, respectively from the previous year. small businesses customer base is by far the largest in China, providing a strong foundation for long-term growth as well as a wellspring of market information and buying behavior that The Group believe are important resources for further development. China TrustPass By the end of 2011, The Group had 658,800 China TrustPass members. The number of members declined from the end of 2010 and also sequentially from the third quarter of 2011. The reduction in members was mainly due to the slower membership acquisition following decision not to sell the China TrustPass individual edition in the second quarter of 2011. The renewal rate has been steady. In 2011, most of the improvements made to the China marketplace were fundamental yet crucial. The Group focused on areas such as enhancing user quality and authenticity; growing buyer traffic; and improving user experience. To enhance user authenticity on 1688.com and create a more extensive user database, The Group required all China marketplace users to register in their real names since September 2011. The Group are also building a dynamic rating and feedback system not only to develop a “trust profile” for users but also to facilitate more online activities between buyers and sellers as the trust issue can be addressed through this proven mechanism. In December 2011, The Group kick-started a third-party on-site inspection program. The Group designed this additional check as a new VAS for Chinese domestic suppliers to further enhance their authenticity on 1688.com. Although it is voluntary, The Group believe on-site inspection program will attractreasonable user interest as the business environment becomes more competitive and individual suppliers seek ways to highlight their credibility and quality. On the VAS front, growth was gradual and modest over 2011. The VAS revenue contributed around 25% of China TrustPass revenue in 2011. Marketing-related VAS such as Ali-ADvance and Premium Placement continued to be the main sources of VAS revenue. 1688.com To enhance user experience, The Group overhauled the website structure and layout of 1688.com and added more transaction features in order to make it more buyer-oriented and user-friendly. For some sectors like apparel, home decorations and small consumer items, The Group provided exclusive channels with transaction features. In the third quarter, The Group added features targeted at bringing large wholesale transactions online. This helped to reinforce 1688.com’s positioning as the online wholesale platform for Chinese domestic suppliers and buyers. The GMV of online transactions on 1688.com gathered pace throughout 2011. The Group will continue to enhance user experience by improving website navigation, design and search mechanisms as well as customizing the process of placing orders and paying online. In 2012, The Group will gradually introduce more third-party applications and services to further address users’ needs and increase stickiness of the platform. Liang Wu Xian In January 2011, The Group embarked on a new initiative, Wu Ming Liang Pin which was initially designed as a B2C transaction platform. Since the launch, The Group reviewed and modified the business model and its value proposition. In August, The Group renamed the service as Liang Wu Xian, and repositioned it as a supply chain service for Chinese manufacturers that involves four key areas including 1) quality control of manufacturers and products, 2) product quality certification, 3) logistics and inventory management and 4) distribution channels management. Along this supply chain, The Group partner with independent experts and operators in different areas to leverage their skills and knowledge and aim to create the greatest supply-chain efficiency. The value proposition of Liang Wu Xian has advanced beyond that of a pure transaction platform. Instead, this is an Internet-enabled supply chain service. With strong capability in e-commerce and understanding of small business needs, The Group are able to operate the supply chain service in efficient and cost-saving ways. In 2012, The Group are focusing on developing and investing in the aforementioned four areas rather than on monetization. The Group started trial monetization in 2011 and will explore the monetization model that best fits service. As more well-established manufacturers turn to the domestic consumer market, they will need assistance in managing regional supply chains. The Group believe Liang Wu Xian is uniquely positioned to meet the rising demand for supply chain services. HiChina In 2011, HiChina’s membership and its revenue steadily grew year-on-year. HiChina’s core businesses such as domain-name services remained strong in 2011. New cloud-related services such as cloud hosting and cloud email also progressed well. The revenue contributions from these cloud-related services increased significantly in 2011. In September 2011, The Group announced the proposed spin-off and separate listing of HiChina. Further announcement will be made when The Group has more information to share. In 2012, HiChina’s focus on driving the growth of core businesses and new cloud-related services will remain unchanged. Prospects: Looking ahead, The Group remains cautious on the global economic environment. Uncertainties in the global economy are expected to be elevated in 2012.The Eurozone’s lingering sovereign debt crisis may dent economic growth. A mild recession in Europe and further deleveraging in the U.S. loom large this year and impose further downside risks on China's exports. In China, The Group expect core inflation pressures will remain subdued while economic growth may slip alongside the slowdown in international trade and the cooling off of the real estate market. Under current complex macro conditions, The Group believe that challenges to worldwide and domestic China economy will remain. Despite the challenging background The Group foresee in 2012, The Group will continue to implement strategies The Group set forth for the company’s evolution and investment.The Group will stay focused on upgrading business model and building quality and trustworthy e-commerce platforms. In particular, The Group continues to invest in new businesses such as AliExpress, Liang Wu Xian and performance-based services where The Group expect to see the upside potential in the future. It is also worth reiterating that The Group will continue to enhance the quality of users and e-commerce platforms. Going forward, The Group will uphold high standards for trust and safety and user experience. The Group has set clear goals and priorities for 2012: 1) true and credible information quality on the platform, 2) better buyer and seller experience, and 3) more transactions online. All these initiatives will contribute to growth in website traffic and online activities. The Group envisages a more balanced, multi-revenue stream model in the long run. In the near term, The Group will depend less on membership growth. The Group will concentrate on developing the quality of platforms and new businesses associated with business model upgrades, which will take time and require continuous investment. Although these may adversely affect membership growth, financial performance and limit earnings visibility in the near term, The Group are confident that the shift away from aggressive membership acquisition to focus on strengthening buyer’s trust on Alibaba.com will benefit customers and long-term business growth.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2026Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.