Alibaba Group Holding pared losses but missed estimated revenue. Net income has been 72,509 million yuan (9,559 million euros) in your last fiscal year. The income of the Chinese e-commerce giant amounted to 868,687 million RMB (114,347 million euros), with a 2% YoY increase. In the company’s latest results, it earned 37% less during its first nine months.
«In an increasingly complex world, we have proactively transformed our organization to strengthen the competitiveness of our businesses through greater independence to face the changing needs of different clients and capture new opportunities.“, said Daniel Zhang, Chairman and CEO of Alibaba Group. While Toby Xu, CFO of Alibaba Group, ha explained that have “established an Alibaba board-level capital management committee to carry out a comprehensive capital management plan to enhance shareholder value.”In this way, they intend to improve profitability for shareholders. He has also added that they are working to start the «external financing for Alibaba International Digital Commerce Business Group; exploring the IPO of Cainiao Smart Logistics Group; and the execution of the IPO of Freshippo.«
The company has been struggling to attract new users and is facing advances from new competitors. Therefore, it has already announced its restructuring plans and is now announcing that it approves the spin-off of its cloud unit, and will take it public. Its Freshippo supermarkets and a similar operation with Cainiao, its logistics division, will also go public.
Decisions with which the shareholders do not agree, since shares were down 5.4% when the news broke.
«We are taking concrete steps to unlock value from our businesses and are pleased to announce that our board has approved a full spin-off of Cloud Intelligence Group through a stock dividend distribution to shareholders, with the intent of it becoming an independent publicly traded company. in a bag.” said Daniel Zhang, Chairman and CEO of Alibaba Group.
IPO? When?
The statement presented by the company mentions the IPO deadlines, which for the different areas are:
- Inteligencia Cloud will prepare its exit in 12 months
- Cainiao will prepare its departure between 12 and 18 months
- Freshippo will prepare your departure between 6 and 12 months
However, it has not been specified in which countries each company will go public.
The following image shows the approved directors for each line:
