Adjusted net income for the January-to-March period came to just 86 million yuan ($12 million), according to The Wall Street Journal — a figure that, compared with the 29.85 billion yuan recorded on the same basis twelve months prior, amounts to a near-total erasure of profit,…
iven by the company’s aggressive spending on artificial intelligence infrastructure and its quick commerce delivery push. Heavy spending on technology and delivery has eaten into what that figure — one that removes share-based compensation, investment gains and losses, and similar adjustments — is designed to capture: the earnings power of the company’s core operations
The company also posted its first operating loss since 2021, with a loss from operations of 848 million yuan ($123 million), according to Bloomberg. On a GAAP basis, net income doubled to roughly 25.48 billion yuan, the company said. That gain largely reflected mark-to-market changes on equity investments and a low comparison base from the prior year, when Alibaba booked losses on the disposals of hypermarket operator Sun Art and department-store operator Intime.
Total revenue reached 243.38 billion yuan ($35.28 billion) for the quarter, up 3% year-over-year. Excluding revenue from the disposed Sun Art and Intime businesses, revenue would have grown 11%, the company said. Spending on technology and quick commerce dragged adjusted EBITA down 84% from a year earlier, to 5.1 billion yuan ($740 million), the company said.