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Alibaba Q1 net down 15.7% as revenue rises 18.6%

(Xinhua)
Updated: 2009-05-07 15:52

Alibaba.com, a leading business-to-business (B2B) e-commerce company in China, said late Wednesday its revenue rose 18.6 percent year-on-year to 806.6 million yuan ($118.3 million) in the first quarter, while its net profit dropped 15.7 percent to 253.4 million yuan.

As more companies resorted to online trading to lower cost at a time of financial crisis, which helped boost its revenue, Alibaba attributed the profit decline to an enhanced investment in customer service, employee training and technology innovation for market expansion.

Net profit rose 27.1 percent over the previous quarter, Alibaba said.

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Statistics showed the company's online market had a total of 40.3 million registered traders both at home and abroad as of March 31, up 36 percent from a year earlier. It increased 6 percent compared with the last quarter in 2008.

The growth in client numbers reflected online market's capability to resist the blow from economic crisis and e-commerce's potential to development, the company said in its quarterly report.

The online trader pledged to continue investment in the next several quarters in areas such as the development of new Internet trading platform supporting multiple languages, employee recruitment and global marketing.

Alibaba's combined cash and bank deposit exceeded $1 billion by the end of the first quarter, up 28 percent from a year earlier.

The figure more than doubled from the $400-million fund reserve it had when coming into the market in 2007 and made Alibaba an Internet company with the biggest cash reserve in the country.