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HomeLatest NewsAlibaba confirms the spin-off of its 'cloud' business and will take a...

Alibaba confirms the spin-off of its ‘cloud’ business and will take a stock exchange of two of its subsidiaries

Date: March 3, 2024 Time: 18:16:38

Alibaba returns to the path of profits, the Chinese electronic commerce giant obtained in its last fiscal year, ended on March 31, a net profit of 72,509 million yuan, which at the current exchange rate is 10,313 million dollars or 9.5 40 million euros, representing an increase of 17% in year-on-year terms. In addition, the company has announced this Thursday the spin-off of its intelligence business for cloud computing (‘cloud’) and the approval of an IPO for two of its subsidiaries.

These initiatives come under the corporate reorganization plan announced by the group at the end of March, the largest in its history, which will split Alibaba into six independent subsidiaries that will be eligible to go public on their own, with the exception of its major e-commerce portals in China, Taobao and Tmall, which will remain wholly owned by the firm.

“Our board of directors has approved a complete spin-off of the ‘Cloud’ Intelligence Group through a stock dividend distribution to shareholders, with the intention of making it an independent listed company,” said the Alibaba CEO and Chairman. , Daniel Zhang, in the statement in which the company disclosed the income statement for its last fiscal year, in which it earned 17% more, which translates into a net profit of 72,509 million yuan, about 9,540 million euros .

Strengthen competitiveness

The manager justified the plan by ensuring that the company is “transforming its organization to strengthen the competitiveness of its businesses through greater independence” with the aim of “meeting the changing needs of our different clients and taking advantage of new opportunities” in a “ever more complex” world. “We are taking concrete steps to harness the value of our businesses,” Zhang added.

The group’s financial director, Toby Xu, also revealed that the board has approved a process to begin seeking external financing for the international digital commerce division and announced the aforementioned IPO processes for Cainiao and Freshippo.

In recent weeks, some information pointed precisely to these two subsidiaries as protagonists of possible IPOs in Hong Kong, where both the group and its subsidiaries Alibaba Health and Alibaba Pictures, dedicated to health services and the production of audiovisual content, are already listed. , respectively.

However, the statement does not specify in which market the aforementioned operations will be carried out. The document does establish deadlines: 12 months for the spin-off of the ‘cloud’ intelligence division, between 12 and 18 for Cainiao’s IPO, and between 6 and 12 for Freshippo’s.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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