.Beijing, China – Alibaba Group Inc. announced strong quarterly results, reporting revenues of $35 billion, exceeding analysts’ expectations. This was driven by rapid growth in its one-hour express delivery services and the expansion of its cloud computing business, despite a sharp decline in the company’s net profit.
The company stated that increased investment in express delivery services, particularly in major cities, contributed to higher sales volumes and strengthened its competitiveness against other e-commerce platforms. It explained that this service has become one of the fastest-growing sectors within the group, with a significant increase in the number of users relying on instant shopping.
The cloud computing sector has also seen significant growth, benefiting from strong demand from Chinese companies for artificial intelligence services and digital infrastructure. Alibaba believes this sector will remain a key driver of revenue growth in the coming periods, especially as companies expand their digital transformation efforts.
Despite strong revenue performance, net profit declined by 53% compared to the same period last year. This was due to higher operating expenses and increased investments in technology and logistics, along with the effects of internal restructuring implemented by the group since last year.
The company confirmed that the decline in profits reflects a long-term strategy. This strategy aims to enhance its technological capabilities and improve the user experience. It indicated that continued investment in cloud services and rapid delivery will position it more strongly within China’s highly competitive e-commerce market.
Alibaba anticipates further growth in the coming year. This will be driven by increased reliance on instant services and cloud solutions, coupled with the continued recovery of domestic consumption and the strengthening of digital businesses.
