Alibaba Group has released its Q2 results for the three months ending 30th September. Revenue increased 40% to CNY119bn (US$16.9bn) for the same comparable period last year.
Strong momentum into Singles' Day
The number of annual active customers on Alibaba’s China retail marketplaces increased by 19m to reach 693m. Mobile MAU’s reached 785m in September 2019, an increase of 30m over June 2019. Ahead of the retailer's 11th annual shopping event held on 11.11, the retailer has recorded significant growth across the business.
- Revenue from core commerce increased 40% YoY to CNY101.2bn (US$14,399m)
- Revenue from cloud computing increased 64% YoY to CNY9.2bn (US$1,300m)
- Revenue from digital media and entertainment increased 23% YoY t to CNY7.2bn (US$1,021m)
- Revenue from innovation initiatives and others increased 14% YoY to CNY1.2bn (US$169m)
New Retail and transforming bricks-and-mortar stores
The retailer's New Retail strategy will continue to play an important role, especially in bricks-and-mortar supermarkets Freshippo. The retailer ended Q2 with 170 stores, achieving robust same-store sales growth.
The retailer has digitally connected 485 of Sun Art’s hypermarket stores and helped drive online grocery orders to 6.5% of its overall revenue during August 2019. It continues to sign up new grocery partners and has enabled the digitisation of over 800 offline retail stores across 278 cities as of August 2019.
Alibaba aims to serve over one billion annual active consumers and help its merchants achieve over CNY10 trillion in annual gross merchandise volume by end of fiscal 2024.
Counting down to 11.11
Read more about Alibaba's Singles' Day here.