Alibaba Group has disclosed its financial performance for the third quarter of the 2024 fiscal year ending on December 31, 2023. The financial report indicates a revenue of ¥260.35 billion for Q3 2024, marking a 5% year-on-year growth.

The net profit for Alibaba in the third quarter was ¥10.7 billion, representing a significant 77% year-on-year decline. This decrease is primarily attributed to the valuation changes in Alibaba’s equity investments, impairment of intangible assets in Cainiao (Cainiao Guoguo), impairment of goodwill in Youku, and a decline in operating profit. However, when excluding items such as asset and goodwill impairment, the non-GAAP net profit for Q3 2024 was ¥47.951 billion, reflecting a 4% year-on-year decrease.

Alibaba’s two core businesses, Taobao Group, and Alibaba Cloud, reported revenues of ¥129 billion (2% YoY growth) and ¥28 billion (3% YoY growth) in Q3, respectively. Notably, Alibaba International Digital Commerce Group’s revenue witnessed a remarkable 44% YoY growth, reaching ¥28.5 billion, surpassing Alibaba Cloud to become Alibaba’s second-highest revenue-generating business segment. Driven by the international digital commerce group’s cross-border logistics and fulfillment solutions, Cainiao Group’s revenue also increased by 24% to ¥28.476 billion, becoming the third-highest revenue-generating segment.

During the earnings call, Alibaba’s executive team addressed market concerns related to recent trading rumors. Regarding the speculation about the trading of Intime Department Store, Alibaba mentioned that traditional physical retail is not their core focus, and it would be reasonable to exit these businesses. On the rumor related to Ele.me (food delivery platform), Alibaba clarified that Ele.me remains a crucial part of their local (retail) strategy. Concerning the potential IPOs of Cainiao and Hema (fresh food supermarket), Alibaba expressed that there is no urgency to take Cainiao and Hema public. Previously, Cainiao had already submitted documents for a listing on the Hong Kong Stock Exchange.

Alibaba’s fastest-growing segments in Q3 were the Alibaba International Digital Commerce Group and Cainiao, both attributable to Alibaba’s high growth in cross-border e-commerce. Alibaba International Digital Commerce Group reported a 44% YoY growth in revenue to ¥28.516 billion, while Cainiao’s revenue increased by 24% to ¥28.476 billion.

Simultaneously with the financial report, Alibaba announced that its board has approved an increase of $25 billion in its share buyback program, extending its validity until the end of March 2027. This means Alibaba has a remaining repurchase capacity of $35.3 billion over the next three fiscal years.