Revenue rose 19% to CNY1.62 billion from CNY1.37 billion, better than the average CNY1.58 billion forecast in the poll. The company reported second-quarter net “finance income” of CNY84.3 million, up from CNY43.1 million a year earlier, without elaborating. Net profits rose 28% from a year earlier on growth in its online business, but warned its margins could fall in the second half as it makes investments to seek long-term gains.
Alibaba.com’s number of paying users fell in the second quarter, and it warned its membership base could see a further “slight decline” in the second half as it focuses on improving its platform. The total number of paying members fell by 17,091 in the quarter to 815,378. “China gold supplier” members fell by 4,263 during the second quarter to 112,191 as of June 30. The company in January launched an upgraded version of that membership package with more features, priced at CNY29,800 ($4,453) a year, to replace a package priced at CNY19,800 a year. Chief Executive Jonathan Lu warned the global economy could weaken, which could make business tougher for small Chinese exporters that use Alibaba.com.
Alibaba.com has continued searching for possible acquisitions and is interested in opportunities inside and outside China, Chief Financial Officer Maggie Wu said. She also said Alibaba.com has never ruled out spinning off companies it has acquired. Source: Total Telecom