BEIJING (AFP): Chinese e-commerce giant Alibaba Group announced Wednesday a $25 billion increase in its share buyback programme, as it published disappointing quarterly results.
In the quarter ending March 31, Alibaba posted sales of 260.3 billion yuan ($36.7 billion), up five percent year on year, the firm said in a statement — but below analysts’ forecasts.
The leading tech company faces fierce competition from sector rivals such as JD.com and Pinduoduo.
“Our board of directors approved an increase of US$25 billion to our share repurchase program, demonstrating our confidence in the outlook of our business and cash flow,” chief financial officer Toby Xu said in the statement.
Alibaba’s US-listed shares rose more than five percent in trading before the open, following the firm’s announcement.
A pioneer in online shopping in China, the group is listed in New York and Hong Kong.
Based in eastern China’s Hangzhou, Alibaba is a key player in the country’s digital sector and is considered a barometer of consumer spending in the world’s second-largest economy.
Wednesday’s disappointing sales figures add to the uncertainty surrounding the group, which had a turbulent 2023, with a major restructuring programme facing setbacks.
In November, it announced the cancellation of a planned spin-off of its cloud computing business due to US restrictions on computer chips.
In addition to e-commerce and cloud services, the company is active in the logistics, media, entertainment and artificial intelligence sectors.
