Chinese tech giant Alibaba Group Holding Limited saw its bottom line drop by 75% in the last quarter of 2021, dragged mainly by impairment costs and the drop in net gains during the period, the firm reported in a filing.
- Fourth-quarter net income declined by 75% to RMB19.224 billion from RMB77.977 billion, bringing the diluted earnings per share down 74% to RMB0.94 from $3.61. Revenue for the period jumped 10% to RMB242.580 billion from RMB221.084 billion.
- Alibaba attributed the drop to the impairment of goodwill equivalent to RMB25.141 billion, along with the decline in its net revenues due to adjustments in the fair value of its equity investments.
- Revenue growth was driven by the Chinese segment which rose by 7% to RMB172.226 billion, along with the growth in other segments such as cloud up by 20%, local consumer goods by 27%, and international commerce by 18%.
- Chief Executive Daniel Zhang said the company aims to achieve carbon neutrality in operations by 2030, along with the additional 1.5 gigatons of decarbonization by 2035 through efforts with consumers, customers, and partners.
Alibaba recorded 1.28 billion annual active customers, after a quarterly net increase of 43 million. BABA is down 7.63% premarket.