[Today's focus]
Alibaba (09988.HK): Adjusted EBITA increased 2% to $52,843 billion in the third fiscal quarter, AIDC revenue increased 44%
Alibaba (09988.HK) announced that for the quarter ended December 31, 2023, the company's revenue was RMB 260.348 billion, an increase of 5% over the previous year. Excluding equity incentive fees, intangible assets and goodwill impairment, and several other items, adjusted EBITA increased 2% year over year to RMB 52,843 billion.
The company is in the process of revitalizing the Taotian Group and preparing for future growth. The company's growth strategy is to put users first, establish an ecosystem where brands and merchants can thrive on the company platform, and achieve technology-driven innovation. The company strives to build an e-commerce ecosystem that allows brands, merchants, and factories to operate efficiently, so as to provide affordable and beautiful products and services to Chinese consumers at multiple levels. In December 2023, the company appointed Taotian Group's new management team to execute its strategy and drive business growth through technological innovation.
For the quarter ended December 31, 2023, Taotian Group's revenue was RMB 129.070 billion, an increase of 2% over the previous year. Online GMV achieved healthy year-on-year growth this quarter, driven by strong growth in the number of transaction buyers and order volume, partially offset by a drop in average order value. Under the company's user participation and price competitiveness strategy, the company continues to increase interactive content and continuously expand the range of cost-effective products. This quarter, the number of merchants on the platform continued to record year-on-year double-digit growth, and has maintained a trend of double-digit growth over the past 4 quarters. On the other hand, the company has succeeded in retaining and expanding high-end consumers. The number of 88VIP members exceeded 32 million, and continued to achieve year-on-year double-digit growth.
For the quarter ended December 31, 2023, Cloud Intelligence Group's revenue was RMB 28.066 billion, an increase of 3% over the previous year. The company continues to improve the quality of revenue by reducing project-based contract revenue with low profit margins. At the same time, revenue from public cloud products and services is growing healthily, driving an increase in profitability.
For the quarter ended December 31, 2023, AIDC's revenue increased 44% year over year to RMB 28.516 billion, and overall AIDC orders increased 24% year over year, driven by strong growth across all AIDC retail platforms, particularly AliExpress's cross-border business Choice. The company's cross-border business achieved rapid year-on-year growth to meet the growing global demand for cheap and beautiful products. To maintain this growth momentum and provide differentiated services to customers, the company increased its investment this quarter and will continue to invest in future growth. AliExpress achieved a year-on-year increase of over 60% in orders this quarter, mainly driven by Choice. Choice provides consumers with a better experience through better product selection, price and quality, combined with faster logistics and better customer support. In January 2024, Choice orders accounted for about half of AliExpress's total order volume, and continued to achieve rapid order growth.
For the quarter ended December 31, 2023, Cainiao's revenue increased 24% year over year to RMB 28.476 billion, mainly driven by revenue from cross-border logistics fulfillment solutions.
For the quarter ended December 31, 2023, Local Life Group's revenue increased 13% year over year to RMB 15.160 billion, driven by the healthy growth of Hungry and the rapid growth of Gaode. Local Life Group orders increased by more than 20% year-on-year during the quarter. In the 12 months ended December 31, 2023, Local Life Group's annual active consumers reached more than 390 million, and its annual purchase frequency increased strongly year-on-year. This quarter, the group's losses continued to narrow, driven by increased business scale and efficiency.
As of the quarter ended December 31, 2023, Dawen Entertainment Group's revenue was RMB 5,040 billion, an increase of 18% over the previous year, mainly driven by strong revenue growth in Alibaba Pictures's offline entertainment business.
The company's board of directors has approved an increase of 25 billion US dollars to the share repurchase program, which is valid until the end of March 2027. After the scale increase, the company still has a share repurchase limit of US$35.3 billion for the next three fiscal years.
Wu Yongming, CEO of Alibaba Group, said, “With our strategic focus, we have had a steady quarter. The Group's top priority is to rekindle growth momentum in the two core businesses of e-commerce and cloud computing. Over the next year, we will invest more in improving the core user experience to support Taotian Group to regain growth and stabilize its market leadership position. We will focus on resources to develop public cloud products and maintain the strong growth momentum of international commercial business.”
Xu Hong, chief financial officer of Alibaba Group, said, “Alibaba Group performed well this quarter, with revenue growth of 5% year over year. Backed by a strong balance sheet and cash flow, we have increased our investment in strategic priority areas and enhanced shareholder returns. Our board approved a $25 billion increase in the share repurchase program, reflecting our confidence in our business and cash flow prospects. Our ongoing share buybacks also help reduce the total number of shares outstanding, thereby increasing earnings per share and cash flow per share”.
[Important matters]
Environmental Energy International (01102.HK) entered into a settlement agreement with creditors to increase authorized share capital to HK$500 million to resume trading tomorrow
Shin Yiu-lai (00970.HK): Judge Wong Kwok-ying handed down a ruling and issued an injunction against the first defendant to resume trading tomorrow
[Financial results]
Tongda Group (00698.HK) Profit Alert: Expected annual loss of approximately HK$1.1 billion to HK$1.2 billion
Profit warning at the time of profit (06838.HK): Comprehensive net profit is expected to fall by about 43% in 2023
Kam Hing International Holdings (02307.HK): Expected net loss of approximately HK$135 million to HK$155 million in 2023
SPROCOMM INTEL (01401.HK) Profit: Annual net profit is expected to more than triple
Shengnuo Group (01418.HK) Yingxi: Expected profit after tax for the 2023 fiscal year is not less than HK$80 million
[Operational data]
Longyuan Electric Power (00916.HK) completed a 2.10% year-on-year increase in power generation capacity of 6.990,900 megawatt-hours in January according to the consolidated report
Country Garden (02007.HK): Achieved sales of 5.49 billion yuan under shareholders' equity contracts vested in the company in January
The total contract sales of Xiangsheng Holding Group (02599.HK) belonging to the group in January was about 5.899 billion yuan
Shimao Group (00813.HK) has contract sales of 2.11 billion yuan in January
Greenland Hong Kong (00337.HK)'s January contract sales of about $824 million
Jiangshan Holdings (00295.HK): The total power generation capacity in January was about 24,04 million megawatt-hours
Chenxun Technology (02000.HK)'s unaudited revenue of HK$33.8 million in January decreased by 49.5% month-on-month
[Pharmaceutical Innovation]
Kangzhe Pharmaceutical (00867.HK): Innovative drugs, the highly selective TyK2 inhibitor CMS-D001 and the GnRH receptor antagonist CMS-D002 received approval notices for drug clinical trials
Cinda Biotech (01801.HK): China Drug Administration accepted the marketing application for the first new drug with weight loss indications for weight loss
China Biopharmaceutical (01177.HK): Anti-PD-L1 “bemosubimab (TQB2450 injection)” included in the priority review and approval process
Hanson Pharmaceuticals (03692.HK): HS-10398 capsules received clinical trial notice
[Acquisition and sale]
Agile Group (03383.HK) entered into a subsidiary agreement on the share transfer agreement of Hilmi and the share transfer agreement of Baumei
Haitong Hengxin (01905.HK) plans to sell underlying assets for 958 million yuan
HSSP INTL (03626.HK) plans to acquire 91% of Tianyao Group's shares for HK$8.645 million
[Equity Incentives]
BairongYun-W (06608.HK) grants 10.59 million share options
[Issuance of additional shares]
Guofu Innovation (00290.HK) issued 4.745 billion shares to raise about HK$471 million net
[Repurchase Cancellation]
Pharmaceutical Biotech (02269.HK) spent HK$230 million to buy back 12.15 million shares on February 7
HSBC Holdings (00005.HK) spent HK$154 million to repurchase 2.498 million shares on February 7
Haier Smart Home (06690.HK) spent 57.4 million yuan to buy back 2.42 million A-shares on February 7
Xiaomi Group-W (01810.HK) spent HK$50.95 million to buy back 4 million shares on February 7
Kingdee International (00268.HK) spent HK$24.2 million to buy back 3.0077 million shares on February 7
AIA (01299.HK) spent HK$15.86 million to repurchase 250,000 shares on February 7
COSCO Marine Holdings (01919.HK) spent HK$13.2691 million to buy back 1.6 million shares on February 7
Kuaishou-W (01024.HK) spent HK$1.36 million to buy back 305,000 shares on February 7
Swire Group A (00019.HK) spent HK$9.36 million to repurchase 151,500 shares on February 7
Bubble Mart (09992.HK) spent HK$5.0031 million to buy back 280,000 shares on February 7
ESR (01821.HK) spent HK$4.29 million to buy back 430,000 shares on February 7
Fosun International (00656.HK) spent HK$2,5171,000 to buy back 580,000 shares on February 7
Liankang Biotechnology Group (00690.HK) cancelled 201 million repurchased shares on February 7
Beijing Holdings Urban Resources (03718.HK) cancelled 38.12 million shares to repurchase shares on February 7