Alibaba.com, the Chinese e-commerce giant, on Friday, announced a massive 47 percent leap in net profit to $10.2billion (63.98 billion Yuan), for the financial year ended March 31,2018,boosted by a rise in smartphone and tablet transactions on its shopping platform.

The business, listed on New York Stock Exchange, added 98 million active consumers over the year ended March 31, to a total of 552 million using its e-commerce marketplaces.

Total revenue climbed 58 percent year-on-year to $39.12 billion ( 250.27 billion yuan), with revenue from cloud computing up 101 percent and digital media and entertainment up 33 percent.

For the fourth quarter, the company saw revenue soar a better than expected 61 percent year-on-year to $9.69 billion(62 billion yuan).

The group CEO Daniel Zhang stated thus: “Alibaba Group had an excellent quarter and fiscal year, driven by robust growth in our core commerce business and investments we have made over the past several years in longer-term growth initiatives,”

And according to the Chief financial officer, Maggie Wu:“Looking ahead to fiscal 2019, we expect overall revenue growth above 60 percent, reflecting our confidence in our core business as well as positive momentum in new businesses,”

Alibaba, which has made billionaire founder Jack Ma one of China’s richest men and a global e-commerce icon, has been on a roll, regularly beating revenue estimates.While the group has been diversifying its business, the overwhelming majority of revenue still comes from its online trading platforms, which continued to attract new customers in China where trends and shopping preferences can shift quickly.

Alibaba dominates 90 percent of the Chinese consumer-to-consumer market, courtesy of Taobao,whilst its Tmall platform controls half of the online transactions between professionals and individuals.

But in a “new retail” strategy, Alibaba plans investments in distribution chains and also,to develop close links with traditional bricks-and-mortar retailers, notably the Hema supermarket chain.

The move echoes US online giant Amazon which has opened physical shops and last year acquired US chain Whole Foods Market.

“During the past year we also doubled down on technology development, cloud computing, logistics, digital entertainment and local services so that we are in a position to capture consumption growth in China and other emerging markets,” Zhang said.

In January Alibaba announced it would take a 33 percent stake in affiliated business Ant Financial, which operates the massively popular Alipay mobile payment application and credit scoring unit Sesame Credit, among other financial services businesses.Controlled by Ma, the firm had been held as a separate company but part of the Alibaba Group.



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