Hong Kong, 15th December: David Wei, Alibaba.com’s CEO stated that the company expects its 2009 profits to exceed consensus expectations. Wei also commented that management expects profits in 2010 will be higher than this year. The consensus forecast for Alibaba.com in 2009 is RMB 1 billion (US$146.5 million) compared with RMB 1.2 billion (US$175.7 million) in 2008. Wei noted that China’s trade volume is continuing to improve after sharp declines during the current global recession. Foreign trade is expected to return to 2007 levels sometime in 2010. Alibaba.com reported a 20% drop in its third quarter this year which management attributed largely to its strategy to spend more on staff, product development and marketing.
Wei stated that the company continues to focus on increasing cooperation with Alibaba Group affiliates such as Taobao and Alipay which could serve to decrease operational sales costs. Alibaba.com is also still reportedly in talks with joint venture partners in India and is exploring partnerships in the U.S. market.
Source: Alibaba Press Release