Shaken by covid and regulators, Alibaba suffered in 2021

Bad luck for Alibaba, the Chinese e-commerce giant comes out shaken by a particularly difficult 2021 financial year, marked by the resumption of the Covid-19 epidemic in China, the world’s second largest economy, by the uncertainty resulting from the conflict in Ukraine , but also by a costly confrontation with regulators. In his report, Daniel Zhang, CEO of the group, describes a particularly unfavorable external context for the company’s activities, ” toughest in decades “, insists the interested party in a letter to the shareholders.

Over the past year, we have been deeply affected by the enormous uncertainties created by the capricious nature of the COVID-19 pandemic, the new expectations of the Internet sector in China and the high frequency of international geopolitical conflicts. “, we read. A context common to many other companies but which seems to have greatly shaken Alibaba.

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Alibaba relies on its Cloud

As CNBC recalls, the firm recorded its weakest growth in its 2021 financial year (between April 1, 2021 and March 31, 2022). Poor results quickly followed by a 50% drop in its share price. In addition to this unfavorable context, Alibaba also had to deal with regulators. In April 2021, the latter imposed a fine of 2.7 billion dollars on it as part of an anti-trust action led by the Chinese authorities.

That said, the boss of Alibaba still evokes a year 2021 ” stable and rewarding during which the firm was able to pursue its efforts in three key areas: consumption, cloud computing and globalization. The group is also counting on several levers to recover. Among them are the Taobao Deal and Taocaicai platforms, aimed at users in smaller and less wealthy Chinese cities, CNBC notes. Alibaba is also relying heavily on its Cloud offering, which reached full profitability for the first time in 2021. With its Cloud, the Chinese giant currently serves more than 4 million paying subscribers.

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