Q3 2024 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial PriceN/ADate unavailable
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- Alibaba sees significant potential for growth in Southeast Asia and plans to continue investing appropriately to deepen market penetration.
- The company is effectively balancing efficiency against growth, aiming to narrow losses while maintaining growth in key markets like Indonesia.
- Alibaba's compliance with regulatory requirements has limited the impact of government restrictions on its operations in Indonesia.
- Widening losses in the International Digital Commerce (AIDC) segment due to increased investments. AIDC reported a loss of around RMB 3 billion in the quarter, attributed to rapid growth in the AliExpress Choice model, increased marketing spending, and investments in key markets like the Middle East. The company plans to continue investing heavily in this segment, potentially leading to further losses.
- Delays in potential IPOs of key business units like Freshippo and Cainiao due to challenging market conditions. Management indicated they are not in a hurry to proceed with these IPOs, which could delay unlocking value from these businesses and impact investor sentiment.
- Declining take rate in the Taobao Tmall Group (TTG), leading to potential pressure on profitability. The overall take rate dropped slightly due to a mix shift towards price-competitive products, as consumers showed increased appetite for such products. Management acknowledged the drop but indicated they are not too concerned.