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Alibaba Group

Alibaba Group Holding Limited, also known as Alibaba (Chinese: 阿里巴巴), is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999[1] in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.[7]

Alibaba Group Holding Limited
"Taobao City", the main corporate campus of Alibaba Group at Xixi, Hangzhou
Native name
阿里巴巴集团控股有限公司
TypePublic
ISINUS01609W1027
Industry
Founded28 June 1999; 23 years ago (1999-06-28)[1]
Hangzhou, Zhejiang, China
FounderJack Ma
HeadquartersNo. 969 West Wen Yi Road[2],
Area served
Worldwide
Key people
Services
Revenue ¥853.062 billion RMB[5] (US$134.567 billion, 2022)
¥69.638 billion RMB[5] (US$10.985 billion, 2022)
¥47.079 billion RMB[5] (US$7.427 billion, 2022)
Total assets ¥1.696 trillion RMB[5] (US$267.467 billion, 2022)
Total equity ¥1.073 trillion RMB[5] (US$169.189 billion, 2022)
OwnerSoftBank Group (23.9%[6])
Number of employees
254,941[5] (31 March 2022)
SubsidiariesSee companies and affiliated entities
WebsiteOfficial website
Alibaba Group
"Alibaba" in Chinese characters.
Simplified Chinese阿里巴巴集团
Traditional Chinese阿里巴巴集團
Transcriptions
Standard Mandarin
Hanyu PinyinĀlǐbābā Jítuán
IPA[á.lì.pá.pá tɕǐ.tʰwǎn]
Yue: Cantonese
Yale RomanizationAléihbābā Jaahptyùhn
JyutpingAa3leoi5baa1baa1 zaap6tyun4

On 19 September 2014, Alibaba's initial public offering (IPO) on the New York Stock Exchange raised US$25 billion, giving the company a market value of US$231 billion and, by far, then the largest IPO in world history.[8] It is one of the top 10 most valuable corporations,[9] and is named the 31st-largest public company in the world on the Forbes Global 2000 2020 list.[10] In January 2018, Alibaba became the second Asian company to break the US$500 billion valuation mark, after its competitor Tencent.[11] As of 2020, Alibaba has the sixth-highest global brand valuation.[12]

Alibaba is one of the world's largest retailers and e-commerce companies. In 2020, it was also rated as the fifth-largest artificial intelligence company.[13] It is also one of the biggest venture capital firms and investment corporations in the world, as well as the second largest financial services group behind Visa via its fintech arm Ant Group. The company hosts the largest B2B (Alibaba.com), C2C (Taobao), and B2C (Tmall) marketplaces in the world.[14] It has been expanding into the media industry, with revenues rising by triple percentage points year after year.[15] It also set the record on the 2018 edition of China's Singles' Day, the world's biggest online and offline shopping day.[16]

Naming

The company's name came from the character Ali Baba from the Middle Eastern folk-tale collection One Thousand and One Nights because of its universal appeal.[17] As Jack Ma, one of the founders, replied to Lorraine Hahn on TalkAsia:

One day I was in San Francisco in a coffee shop, and I was thinking Alibaba is a good name. And then a waitress came, and I said do you know about Alibaba? And she said yes. I said what do you know about Alibaba, and she said 'Open Sesame.' And I said yes, this is the name! Then I went onto the street and found 30 people and asked them, 'Do you know Alilbaba'? People from India, people from Germany, people from Tokyo and China... They all knew about Alibaba. Alibaba -- open sesame. Alibaba -- 40 thieves. Alibaba is not a thief. Alibaba is a kind, smart business person, and he helped the village. So...easy to spell, and global know. Alibaba opens sesame for small- to medium-sized companies. We also registered the name AliMama, in case someone wants to marry us![18]

History

On 28 June 1999,[1] Jack Ma, with 17 friends and students founded Alibaba.com, a China-based B2B marketplace site, in his Hangzhou apartment. In October 1999, Alibaba received a US$25 million investment from Goldman Sachs and SoftBank. Alibaba.com was expected to improve the domestic e-commerce market and perfect an e-commerce platform for Chinese enterprises, especially small and medium-sized enterprises (SMEs), to help export Chinese products to the global market as well as to address World Trade Organization (WTO) challenges. In 2002, Alibaba.com became profitable three years after launch. Ma wanted to improve the global e-commerce system, so from 2003 onward, Alibaba launched Taobao Marketplace, Alipay, Alimama.com, and Lynx.[19][20]

When eBay announced its expansion into China in 2003, Ma viewed the American company as a foreign competitor and rejected eBay's buyout of Alibaba's subsidiary Taobao. By applying existing technologies, gaining trust in the Chinese e-commerce market, and expanding through dominating the market at a loss before making a return on additional services, Alibaba's subsidiaries outperformed eBay in the Chinese e-commerce market, claiming a growing percentage of consumers from eBay. Alibaba subsidiary Taobao would later force eBay out of the Chinese market, with eBay closing its unprofitable China Web unit, though the two companies would break even six years later.[19][21][22]

In 2005, Yahoo! invested in Alibaba through a variable interest entity (VIE) structure, buying a 40% stake in the company for US$1 billion.[19][22] This would as a result net in US$10 billion in Alibaba's IPO alone to Yahoo!.[21][23]

According to Li Chuan, a senior executive at Alibaba, the company was planning in 2013 to open traditional brick and mortar retail outlets in partnership with Wanda Group, a Chinese real estate company.[24] Additionally, Alibaba purchased a 25% stake in Hong Kong-listed Chinese department store chain Intime Retail in early 2014.[25] In early 2017, Alibaba and Intime's founder Shen Guojun agreed to pay as much as HK$19.8 billion (US$2.6 billion) to take the store chain private. Alibaba's stake—28% from 2014's US$692 million investment—would rise to about 74% after the deal.[26]

In April 2014, Alibaba invested in Lyft, along with Coatue Management, and Andreessen Horowitz; they led a US$250 million Series D financing round.[22][27] On 5 June 2014, Alibaba bought a 50% stake of Guangzhou Evergrande F.C. from Evergrande Real Estate Group Ltd. in a deal that was worth 1.2 billion yuan (US$192 million).[22][28] On 5 September 2014, the group—in a regulatory filing with the US Securities and Exchange Commission (SEC)—set a US$60- to $66- per-share price range for its scheduled initial public offering (IPO), the final price of which would be determined after an international roadshow to gauge the investor interest in Alibaba shares to shareholders. On 18 September 2014, Alibaba's IPO priced at US$68, raising US$21.8 billion for the company and investors. Alibaba was the biggest US IPO in history, bigger than Google, Facebook, and Twitter combined.[29][30][31] On 19 September 2014, Alibaba's shares (BABA) began trading on the NYSE at an opening price of $92.70 at 11:55 am EST. On 22 September 2014, Alibaba's underwriters announced their confirmation that they had exercised a greenshoe option to sell 15% more shares than originally planned, boosting the total amount of the IPO to $25 billion.[32][33]

Alibaba and the underwriters of its IPO were sued in a California superior court in a consolidated class action lawsuit.[34] The lawsuit was filed in October 2015 on behalf of investors who purchased Alibaba's American depositary shares alleging violations of the Securities Act.[35] Alibaba reached a settlement agreement in December 2018, subject to court approval, in which it agreed to pay $75 million to settle the lawsuit.[34][36][37]

In January 2017, Alibaba and the International Olympic Committee jointly announced an $800 million deal that would last until 2028 in where the company would sponsor the Olympic Games.[22][38] In September 2018, Jack Ma, the main founder of Alibaba, announced that he would step down as chairman in a year's time so he could focus on philanthropy.[39] In response to the announcement, The Economist stated that Ma had a significant impact in China and worldwide via contributions and dedication to various businesses.[40]

In May 2019, Bloomberg cited sources familiar with the matter as saying that Alibaba was considering raising $20 billion through a second listing in Hong Kong.[41] On Tuesday, 10 September 2019, Jack Ma officially stepped down as the chairman of Alibaba, Daniel Zhang succeeded him at the head of the company. In September 2019, the municipal government of Hangzhou announced that it was boosting its monitoring of the private sector by embedding government officials in Alibaba and other companies.[42][43]

In November 2020, The Wall Street Journal reported that Chinese Communist Party general secretary Xi Jinping personally scuttled Jack Ma's Ant Group IPO.[44] At that time this was highlighted as the world's largest IPO suspension, sending a chilling warning to numerous entrepreneurs. Bo Zhuang, chief China economist at TS Lombard said that the suspension "forms part of a wider political drive as the leadership seeks to widen and consolidate its control over finance and technology".[45] What followed was an unexpected Chinese government-released draft on 10 November 2020, which gives regulatory authorities a wider latitude to regulate their biggest tech enterprises.[46][47]

On 24 December 2020, China launched an antitrust investigation into Alibaba Group regulators, in a crackdown on China's booming Internet space's anti-competitive behavior.[48] In December 2020, the shares of Alibaba Group suffered a historic stock price crash to the lowest close in around 6 months, following the antitrust investigation into the company by Chinese regulators.[49] In December 2020, China's State Administration for Market Regulation (SAMR) stated that it opened an investigation into Alibaba over monopolistic practices.[50][51] The country's central bank, as well as three other regulators, confirmed in a separate statement that the affiliated Ant Group would also be summoned for discussions over "competition and consumer rights", where regulators instructed the company to return its focus to digital-payments.[52] People's Daily, the official newspaper of the Central Committee of the Chinese Communist Party, endorsed the investigation shortly after the announcement, claiming the investigation to be "an important step in strengthening antimonopoly oversight in the internet sphere".[53][54] As a result, from the antitrust probe, Alibaba lost nearly all of its stock-market gains in 2020, from $859 billion to $586 billion, by the end of December.[55] Jack Ma, co-founder of both Alibaba and Ant Group, vanished from public view when Ant's IPO was suspended in early November,[56] but resurfaced in January 2021 in a 50-second video, appearing briefly via video link at the digitally facilitated Rural Teacher Initiative. As of February 2021, he has yet to be seen in public.[57] The video appearance caused Alibaba stock to jump more than 7%.[58]

In February 2021, Alibaba sold $5 billion in bonds, the company's third large sale of dollar bonds, issuing four sets priced to yield between 2.143% and 3.251%. The four sets of bonds were $1.5 billion of both 10 year and 30 year debt along with $1 billion of bonds due in 20 and 40 years. The 20 year bonds were designated as sustainability notes.[59][60][61]

On April 9, 2021, as part of a Chinese crackdown on big tech, SAMR issued a $2.8 billion fine against Alibaba for anti-competitive practices and ordered Alibaba to file self-examination and compliance reports to the SAMR for three years. This amounted to 12% of its 2020 net profit. Critics say the move tightens the Chinese's governments control of tech companies.[62][63][64]

On 11 November 2021, it was reported that over the course of its 11-day Singles' Day sales extravaganza, Chinese e-commerce giant Alibaba Group Holding received a record 540.3 billion yuan (S$114.4 billion) in orders, a 14 percent increase over the previous year.[65]

In July 2022, the SEC added Alibaba to a list of companies facing delisting from U.S. stock exchanges if its auditors remain unable to examine Alibaba's books before 2024.[66]

In December 2022, a state-owned enterprise of the China Internet Investment Fund, established by the Cyberspace Administration of China, took a 1 percent golden share investment in two Alibaba subsidiaries that control Youku and UCWeb.[67]

Companies and affiliated entities

E-commerce and retail service platforms

 
Alibaba group Headquarters
 
Alibaba Binjiang Campus in Hangzhou, headquarters for Alibaba's B2B service[68]

In 1999, Jack Ma launched the primary business of Alibaba, Alibaba.com, while working as an English teacher in Hangzhou. Alibaba.com later became the world's largest online B2B trading platform for small businesses as of 2014.[69] Alibaba.com has three main services: the English language portal Alibaba.com, which handles sales between importers and exporters from more than 240 countries and regions,[70] the Chinese portal 1688.com, which manages domestic B2B trade in China, and transaction-based retail website AliExpress.com (全球速卖通), which allows smaller buyers to buy small quantities of goods at wholesale prices.[citation needed] Alibaba.com went public at the Hong Kong Stock Exchange in 2007, and was delisted again in 2012.[71] In 2013, 1688.com launched a direct channel that was responsible for $30 million in daily transaction value.[72]

In 2003, Alibaba launched Taobao Marketplace (淘宝网), offering a variety of products for retail sales. Taobao grew to become China's largest C2C online shopping platform and later became the second most visited web site in China, according to Alexa Internet.[73][74] Taobao's growth was attributed to offering free registration and commission-free transactions using a free third-party payment platform.[75] Advertising made up 75 percent of the company's total revenue, allowing it to break even in 2009. In 2010, Taobao's profit was estimated to be ¥1.5 billion (US$235.7 million), which was only about 0.4 percent of their total sales figure of ¥400 billion (US$62.9 billion) that year, way below the industry average of 2 percent, according to iResearch estimates.[75] According to Zhang Yu, the director of Taobao, between 2011 and 2013, the number of stores on Taobao with annual sales under ¥100 thousand increased by 60%; the number of stores with sales between ¥10 thousand and ¥1 million increased by 30%, and the number of stores with sales over ¥1 million increased by 33%.[76]

In April 2008, Taobao introduced a spin-off, Taobao Mall (淘宝商城, later Tmall.com), an online retail platform to complement the Taobao C2C portal, offering global brands to an increasingly affluent Chinese consumer base. It became the eighth most visited web site in China as of 2013.[77] In 2012, Tmall.com later changed its Chinese name to Tianmao (天猫, "sky cat"), reflecting off of Tmall's Chinese pronunciation.[78] In March 2010, Taobao launched the group shopping website Juhuasuan (聚划算), offering "flash sales", which are products that are available at a discount for only a fixed time period. In October 2010, Taobao beta-launched eTao, a comparison shopping website that offers search results from mostly Chinese online shopping platforms,[79] including product searches, sales and coupon searches. According to the Alibaba Group web site, eTao offers products from Amazon China, Dangdang, Gome, Yihaodian, Nike China, and Vancl, as well as Taobao and Tmall.[70] As part of a restructuring of Taobao by Alibaba, these spin-offs became separate companies in 2011, with Tmall and eTao becoming separate businesses in June and Juhuasuan becoming a separate business later in October.[80]

In 2010, Alibaba launched AliExpress.com, an online retail service made up of mostly small Chinese businesses offering products to international online buyers. It is the most visited e-commerce platform in Russia.[81] It allows small businesses in China to sell to customers all over the world, resulting in a wide variety of products. It might be more accurate to compare AliExpress to eBay, though, as sellers are independent; it simply serves as a host for other businesses to sell to consumers.[82] Similar to eBay, sellers on Aliexpress can be either companies or individuals. It connects Chinese businesses directly with buyers. The main difference from Taobao is that it's aimed primarily at international buyers, mainly the US, Russia, Brazil and Spain.[83]

In 2013, Alibaba and six large Chinese logistics companies (including SF Express) established a company called Cainiao for delivery of packages in China. This network gradually grew to 14 local logistics companies in 2014.[84] In 2016, Alibaba's Taobao and Tmall, two of the world's largest and most popular online retail marketplaces, achieved a total transaction volume of 3 trillion yuan (US$478.6 billion). The company aims to double the transaction volume to 6 trillion yuan by 2020. As of February 2018, Taobao reached 580 million monthly active users, while Tmall achieved 500 million monthly active users.[85][86][87] It is also rapidly expanding its e-commerce network abroad.[88] Alibaba has also announced that it will invest 100 billion yuan over five years to build a global logistics network, underpinning an aggressive overseas expansion, and demonstrating Alibaba's commitment to building the most efficient logistics network in China and around the world. It is investing a further 5.3 billion yuan in Cainiao Logistics to boost its stake to 51 percent from 47 percent.[89] The investment would value Cainiao, a joint venture of top Chinese logistics firms, at around US$20 billion.[90]

On 11 June 2014, Alibaba launched US shopping site 11 Main. The 11 Main marketplace hosts more than 1,000 merchants in categories such as clothing, fashion accessories and jewelry as well as interior goods and arts and crafts and it plans to keep adding more, said the company.[91][92] On 23 June 2015, Alibaba announced that it is selling 11 Main to OpenSky, an online-marketplace operator based in New York.[93]

 
Lazada warehouse in Cabuyao, Laguna, Philippines during the company's 11.11 sale promotion in 2018. Lazada Group is a subsidiary of Alibaba Group and Alibaba co-founder Lucy Peng Lei is CEO of the company.

In February 2015, Alibaba invests US$590 million in Meizu, acquiring an undisclosed minority stake.[94]

In June 2015, Alibaba started a joint venture Koubei with its affiliate Ant Financial Group to tap China's fast-growing local services market, each investing approximately US$483 million into the business for an equal equity stake.

In April 2016, Alibaba announced that it intended to acquire a controlling interest in Lazada by paying $500 million for new shares and buying $500M worth of shares from existing investors.[95] Lazada Group is a Singaporean e-commerce company founded by Rocket Internet in 2011. Lazada operates sites in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Its sites launched in March 2012, with a business model of selling inventory to customers from its own warehouses. In 2013 it added a marketplace model that allowed third-party retailers to sell their products through Lazada's site. Lazada features a wide product offering in categories ranging from consumer electronics to household goods, toys, fashion and sports equipment. In March 2018, Alibaba announced its plan to invest an additional $2 billion in the company, totaling a $4 billion investment. Alibaba also plans to appoint Alibaba co-founder Lucy Peng as Lazada's new CEO.[96] In October 2016, Alibaba launched Alitrip, later named Fliggy, an online travel platform that is designed as an online mall for brands such as airline companies and agencies.[97][98] Fliggy set the target audience as younger generation and it strives to become a one-stop service when they plan their trips, particularly in overseas travel.[99] On 7 August 2017, Alibaba Group and Marriott International hotel group announced a comprehensive strategic co-operation. Two companies will set up a joint venture company. Through the docking technology system and the superiority resources, Fliggy has Marriott hotel flagship store. It has the same function with Marriott Chinese website and Marriott mobile app to create the best global travel experience for consumers.[100]

In 2016, the Office of the United States Trade Representative added Taobao back onto a list of notorious counterfeit platforms that includes the likes of torrent site The Pirate Bay.[101] Alibaba denied wrongdoing and filed two lawsuits against the counterfeiters as of January 4, 2017,[102] but brands whose sales have been affected by the counterfeit products accused Alibaba of not doing enough.[103]

In 2017, Alibaba started opening a chain of supermarkets, named Hema (盒马, lit. box horse), as part of the company's "new retail strategy," where customers can either order in the store or online for delivery in under 30 minutes. It offers a mobile app that recommends customers products based on data analytics.[104] In addition, customers can have their groceries cooked to eat in the food court of the supermarket.[105]

In October 2018, it was reported that Alibaba's Koubei have merged with online food delivery service platform Ele.me into a new local life service subsidiary.[106][107] However, the newly formed Alibaba Local Life Service entity experienced major competition from local service giant Meituan, which is backed by Tencent, leading to rumours of planned layoffs in 2022.[108]

In October 2020, Alibaba agreed to pay US$3.6 billion to take control of China's biggest hypermarket operator Sun Art from French billionaire Mulliez family. The deal doubled the group's stake in the hypermarket chain with a tootles ownership of 72%.[109]

Gold Supplier membership

Alibaba.com offers a paid Gold Supplier membership to try to ensure that each seller is genuine; sellers' Gold Supplier status and the number of years it has been held are displayed.[110] The supplier verification types and checks are listed on Alibaba.com's website, with more stringent checks for sellers outside China.[111] While the majority of suppliers are reported to be genuine,[citation needed] there have been many cases of sellers, some with Gold Supplier status, seeking to defraud unsuspecting buyers.[112] In February 2011, controversy ensued when Alibaba's corporate office admitted that it had granted the mark of integrity of its "China Gold Supplier" program to more than 2,000 dealers that had subsequently defrauded buyers; the firm's share price dropped "abruptly" after the announcement.[113] A statement from the firm reported that Yan Limin, the general manager of Alibaba.com at the time, had been dismissed in March for "misconduct"; Phil Muncaster of UK's The Register additionally reported that "a further 28 employees had been involved in dodgy dealings".[114]

As The Economist noted, the company's response has conflicting components: Alibaba's promulgated view that its corrective actions indicate its commitment to quality and integrity (where it contrasts itself with other scandal-associated Chinese business sectors), versus a damage control view suggesting that the subscription-driven, third-party verified "China Gold Supplier" program was endangered by diminished trust in its endorsement system, removing the incentive for global buyers to choose Alibaba as their business-to-business service, thus more broadly endangering Alibaba through impact on its brand and capabilities (the latter via the "defenestration of senior people").[113] The scandal was said to have placed the head of Alibaba Group, Jack Ma—who was described as having been furious over the scandal—in a position to personally fight to win back trust.[115]

Cloud computing and artificial intelligence technology

In conjunction with the company's 10th anniversary, Alibaba launched Alibaba Cloud in September 2009, aiming to build a cloud computing service platform, including e-commerce data mining, e-commerce data processing, and data customization.[70] It has R&D centres and operators in Hangzhou, Beijing, Hong Kong, Singapore, Silicon Valley[116] and Dubai.[117] In July 2014, Alibaba Cloud entered into a partnership deal with Inspur. Alibaba Cloud is the largest high-end cloud computing company in China.[118] In 2009, Alibaba acquired HiChina, the largest domain registration service and web hosting service company in China, and built it into Alibaba Cloud.[119] On 28 July 2011, Alibaba Cloud released AliOS (formerly Yun OS and Aliyun OS), a Linux distribution designed for mobile devices.[120] In the 2017 Computing Conference in Hangzhou, Alibaba launched AliGenie, a China-based open-platform intelligent personal assistant. It is currently used in the Tmall Genie smart speaker.[121]

In 2018, Alibaba's Wanli Min presented City Brain,[122] a technology geared towards urban solutions such as streamlining traffic, detecting accidents and improving transport efficiency.[123][124]

On 27 July 2019, Alibaba unveiled a 64-bit RISC-V processor called the XuanTie-910 (Black Iron 910). It is a 12 nm 16-core with a clockrate of 2.5 GHz, and was designed by Alibaba's subsidiary T-Head (also known as Pingtouge). Alibaba claim the Xuantie-910 is faster than the ARM Cortex-A73 and is capable of 7.1 Coremark/MHz.[125][126][127][128]

On 25 September 2019, Alibaba announced an AI accelerator called the Hanguang 800. The Hanguang 800 contains 17 billion transistors built with a 12 nm process and was designed by T-Head and DAMO Academy (Alibaba's research team). Alibaba claim it is capable of 78,563 images per second (IPS) inference and 500 IPS/W in ResNet-50. The Hanguang 800 will be available to be rented on Alibaba Cloud.[129][130][131]

On 18 January 2022, Administration of the United States President Joe Biden started investigating Alibaba Cloud business's potential risk to the U.S. national security. This included scrutiny of storage facility of the U.S. clients' data by the provider and to determine whether the Chinese government can obtain access to the same.[132]

Surveillance of Uyghurs

In December 2020, The New York Times reported that Alibaba had developed and marketed facial recognition and surveillance software configured to detect Uyghur faces and those of other ethnic minorities in China.[133] Alibaba responded that it was "dismayed to learn" that its Alibaba Cloud subsidiary had developed this feature,[134] defending that the technology was developed "in a testing environment" and that it "was not deployed by any customer."[135] However, IPVM reported in December 2020 that Alibaba refused to provide any proof the Uyghur recognition feature was just a "test" or "trial" and that Alibaba's own website showed Uyghur recognition as a live feature.[135]

FinTech and online payment platforms

 
Food ordered with Alipay

In 2004, the Alibaba Group launched Alipay, a third-party online payment platform. It also provides an escrow service, in which buyers can verify whether they are happy with goods they have bought before releasing money to the seller.[75] Alibaba Group spun off Alipay in 2010 in a controversial move.[136] According to analyst research report, Alipay has the biggest market share in China with 300 million users and control of just under half of China's online payment market in February 2014.[137] In 2013, Alipay launched a financial product platform called Yu'ebao (余额宝).[138] Alipay partnered with the Tianhong Asset Management to launch it to the general public.[138] In 2015, Alibaba announced that they will introduce a system that can be paid by recognizing the owner's face.[139][140] On 16 October 2014, the Alipay company was re-branded as Ant Financial Services (now Ant Group).[141]

One of the factors for Alibaba's success in this platform is the company's quick and reliable payment system, where it offers several types of payment systems such as credit card, debit card, Alipay, Quick-pay, and online banking. These payment systems help to cope with simultaneous cash flow transactions with ease and convenience. Ant Financial was ranked sixth in Fortune's Change the World list, recognized for the positive green environmental impact of its Ant Forest, the world's largest platform for tracking individuals' carbon footprints. Ant Financial and its partners have achieved considerable success in the reduction of CO2 emissions.[142][143] Ant Financial is the highest valued fintech company in the world, and the world's most valuable unicorn (start-up) company, with a valuation of US$150 billion.[144][145][146]

Entertainment services

Alibaba created a new live entertainment business unit under its Digital Media and Entertainment Group which focuses on ticketing, content creation and live experiences, bringing its entertainment ticketing platform Damai and its content creation and technology units MaiLive and Maizuo under one roof. It aims to provide a platform for live events (e.g. concerts, plays, esports and sports events), as well as supporting content partners and leveraging Alibaba's data capability for offline shows.[147][148] It also provides the online digital distribution service 9Apps, which hosts downloadable content and applications.[149]

In March 2014, Alibaba agreed to acquire a controlling stake in ChinaVision Media Group for $804 million. The two firms announced they would establish a strategic committee for potential future opportunities in online entertainment and other media areas.[150] The company was renamed Alibaba Pictures Group.[151] In March 2015, Alibaba Group launched AliMusic as its music division. Xiami Music and Tiantian Music are two of music steaming APP owned by AliMusic. AliMusic named Gao Xiaosong as the chairman and Song Ke as chief executive officer in July 2015.[152] In 2017, Tencent Music has expected $10bn IPO by signing a rights deal with Alibaba, strengthening its position within the important Chinese market. Under the terms of the deal Alibaba will gain the right to stream music from international labels such as Sony Music, Universal Music Group and YG Entertainment, which already have exclusive deals with Tencent, in return for offering to its catalogue from Rock Records, HIM International Music and so on.[153] In April 2014, Alibaba and Yunfeng Capital, a private equity company controlled by Alibaba's founder, Jack Ma, agreed to acquire a combined 18.5 percent stake in Youku Tudou, which broadcasts a series of popular television programs and other videos over the Internet.[154]

In August 2020, Ant Financial, a subsidiary of Alibaba, launched the IPO program, valued at US$200 billion.[155]

Internet services

In 2004, the Alibaba Group released Aliwangwang, an instant messaging software service for interactions between customer and online sellers. By 2014, there are 50 million Aliwangwang users, making it the second-largest instant messaging tool in China.[156] In October 2013, the Alibaba's chairman Jack Ma announced that the Alibaba Group would no longer use Tencent's messaging application WeChat, and would henceforth promote its own messaging application and service, Laiwang.[157] In April 2014, Alibaba Group and UCWeb, a Chinese provider of mobile internet software technology and services, launched Shenma (神马), a mobile-only search engine, as part of a joint venture.[158][159] Later in June, the Alibaba Group acquired UCWeb, with an international product portfolio that includes a mobile browsing service (UC Browser), app and game distribution platforms (9Apps and 9Game), a mobile traffic platform (UC Union) and UC News that primarily caters to all types of news in the India market (as an aggregator) among others.[160][161][162][163][164][165] Alibaba's Y Projects Business Unit developed the Xuexi Qiangguo app, which is used to teach Xi Jinping Thought.[166]

In October 2005, Alibaba Group formed a strategic partnership with Yahoo! and acquired Yahoo! China, a Chinese portal previously launched on 24 September 1999 that focuses on Internet services like news, email, and search.[167] In April 2013, Alibaba Group announced that, as part of the agreement to buy back the Yahoo! Mail stake, that they would suspend technological support for China Yahoo! Mail service and begin migration of Yahoo! China Mail accounts. Several options were offered to users to make the transition as smooth as possible, and Yahoo! China users had four months to migrate their accounts to the Aliyun mail service, the Yahoo! Mail service in the United States, or to another third-party e-mail provider of the user's choice.[168] Yahoo! China closed its mail service on 19 August 2013. E-mails sent to Yahoo! China accounts could be forwarded to an Alimail box until 31 December 2014. Users were also allowed to transfer e-mail accounts to yahoo.com or any other e-mail service. It is estimated there are no more than a million users with Yahoo! Mail for China and chances are they also own other e-mail accounts.[169]

In 2014, Alibaba Group founded DingTalk, an enterprise communication and collaboration platform. Also known as Ding Ding, the app was developed as part of efforts to compete with rival Tencent's WeChat.[170] DingTalk is managed by Alibaba's cloud computing division.[171][172]

Others

In 2014, Alibaba and Yunfeng Capital, a private equity firm, launched AliHealth when the two companies bought a 54% stake in CITIC 21CN for HK$1.33 billion (US$171 million).[173][174] It is listed on the Hong Kong Stock Exchange as SEHK: 241. It positions itself as a pharmaceutical e-commerce business and medical services. In the same year, Alibaba acquired Chinese map supplier AutoNavi.[175] In April 2015, the group also reached an agreement to transfer its online B2C pharmacy, Tmall Medical (yao.Tmall.com), to AliHealth. The integration provides consumers a wide range of pharmaceutical and health products available in China.[176] In 2015, Alibaba later launched its Shanghai-based sports division, AliSports, after a consolidation of some of the parent company's existing business units.[177] The new company's operations encompass television and digital sports rights, event operation, venue commercialization, copyright, media, business development, gaming, and ticketing.[177] AliSports secured exclusive title sponsorship of the FIFA Club World Cup from 2015 to 2022.[178] The company announced a Champion of Champions rugby sevens tournament in 2017, to be played in Shanghai for the highest prize money ever offered in the sport.[179]

In December 2015, Alibaba agreed to acquire the South China Morning Post and other media assets belonging to the group for a consideration of $266 million. Although Alibaba promised editorial independence, vice-chairman Joseph Tsai said that Alibaba believes that "the world needs a plurality of views when it comes to China coverage. China's rise as an economic power and its importance to world stability is too important for there to be a singular thesis."[180] The acquisition attracted media concerns over what this would mean for the newspaper's coverage.[181]

Other subsidiaries of Alibaba include Hangzhou Ali Venture Capital and Alibaba Entrepreneurs Fund. Hangzhou Ali Venture Capital (杭州阿里创业投资) is a company 80% owned by Jack Ma and another manager of Alibaba. For regulatory purpose, Alibaba Group did not own the company directly, but by pleading. It was considered as a subsidiary and/or consolidated entity of Alibaba Group.[182] Ali Venture Capital is a shareholder of Beijing Enlight Media[183] and a domestic shareholder of China Unicom.[184] The Alibaba Entrepreneurs Fund is a non-profit making initiative launched by Alibaba Group in 2015.[185][186][187]

Alibaba also has invested in more than ten startups in Hong Kong including DayDayCook,[188] GoGoVan,[189] WeLend[190] and Qupital.[191][192] In 2019, Alibaba launched China-Russia flights in collaboration with Russian Post to assure fast shipping of products.[193]

Corporate governance

 
Jack Ma, founder and the former executive chairman of the Alibaba Group

Alibaba's main co-founder Jack Ma is the former executive chairman of the Alibaba Group from its creation to 10 September 2019. The current executive chairman is Daniel Zhang, who succeeded Ma on 10 September 2019, and is also Alibaba's CEO since 2015. Joseph Tsai is Alibaba's executive vice-chairman since 2013.[194] J. Michael Evans is Alibaba's president since 2015.[195] The board of directors of Alibaba includes top management Jack Ma, Joseph Tsai, Daniel Zhang, and J. Michael Evans, and director Eric Jing, plus independent directors such as Chee Hwa Tung, Walter Kwauk, Börje E. Ekholm, and Wan Ling Martello, as well as Yahoo! co-founder and former CEO Jerry Yang.[196] Masayoshi Son (founder and CEO of SoftBank) formerly served on the firm's board[197] before stepping down in 2020. Besides Ma, Tsai, Zhang, and Evans, senior management also includes Toby Xu (Chief financial officer) Judy Tong (Chief human resources officer), Jeff Zhang (Chief technology officer and President of Alibaba Cloud Intelligence), Sophie Wu (Chief customer officer), Tim Steinert (General Counsel and Secretary), Jessie Zheng (Chief risk officer and CRGO/Chief Platform Governance Officer), Angel Zhao (Head of Alibaba Globalization Leadership Group), Chris Tung (Chief marketing officer), Trudy Dai (President of Wholesale Marketplaces), Fan Jiang (President of Taobao.com), and Jet Jing (President of Tmall.com).

Previously, Jack Ma served as the CEO of the Alibaba Group since its creation, but later stepped down in 2013, choosing Jonathan Lu as his successor.[198][199] The Alibaba Group under Lu was performing well, though there were rumors that Ma was growing distrustful in Lu's ability to lead the company.[200][201] Daniel Zhang, who served as COO of Alibaba under Lu, succeeded Lu as CEO in 2015.[202] On 10 September 2018, Ma chose Zhang to succeed him as executive chairman of the Alibaba Group after his stepping down announcement, and this would go into effect in 1 year on 10 September 2019.[203]

Since 2012, the Chinese Communist Party has had a Party Committee in place in the company and has over 2,000 party members as Alibaba employees.[204] In 2019, the Chinese government began embedding officials inside major technology companies, including Alibaba.[42][43]

Alibaba has been criticized for censorship on its platforms, this includes both censorship ordered by the Chinese government and self-censorship.[205]

During the 2022 Russian invasion of Ukraine, Alibaba refused to join the international calls for withdrawal from the Russian market. Research from Yale University published on August 10, 2022 identifying how companies were reacting to Russia's invasion identified Alibaba in the worst category of "Digging in", meaning Defying Demands for Exit: companies defying demands for exit/reduction of activities.[206]

Financial data

Financial data in CNY[207][208]
Year Revenue Net Income Assets Equity
2012[209] 20,025,000,000 8,404,000,000 47,210,000,000 34,383,000,000
2013[207] 34,517,000,000 4,228,000,000 63,786,000,000 513,000,000
2014[207] 52,504,000,000 23,076,000,000 111,549,000,000 30,417,000,000
2015[207] 76,204,000,000 24,149,000,000 255,434,000,000 157,413,000,000
2016[207] 101,143,000,000 71,460,000,000 364,245,000,000 249,539,000,000
2017[207] 158,273,000,000 43,675,000,000 506,812,000,000 321,129,000,000
2018[208] 250,266,000,000 63,985,000,000 717,124,000,000 436,438,000,000
2019[208] 376,844,000,000 87,600,000,000 965,076,000,000 608,583,000,000
2020[208] 509,711,000,000 149,263,000,000 1,312,985,000,000 870,548,000,000
2021[208] 717,289,000,000 150,308,000,000 1,690,218,000,000 1,074,961,000,000

See also

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External links

  • Official website  
  • Business data for Alibaba Group Holding Ltd:
    • Bloomberg
    • Google
    • SEC filings
    • Yahoo!

Coordinates: 30°11′23″N 120°11′25″E / 30.189602°N 120.190371°E / 30.189602; 120.190371

alibaba, group, holding, limited, also, known, alibaba, chinese, 阿里巴巴, chinese, multinational, technology, company, specializing, commerce, retail, internet, technology, founded, june, 1999, hangzhou, zhejiang, company, provides, consumer, consumer, business, . Alibaba Group Holding Limited also known as Alibaba Chinese 阿里巴巴 is a Chinese multinational technology company specializing in e commerce retail Internet and technology Founded on 28 June 1999 1 in Hangzhou Zhejiang the company provides consumer to consumer C2C business to consumer B2C and business to business B2B sales services via web portals as well as electronic payment services shopping search engines and cloud computing services It owns and operates a diverse portfolio of companies around the world in numerous business sectors 7 Alibaba Group Holding Limited Taobao City the main corporate campus of Alibaba Group at Xixi HangzhouNative name阿里巴巴集团控股有限公司TypePublicTraded asNYSE BABASEHK 9988Hang Seng Index componentISINUS01609W1027IndustryE commercecloud computingartificial intelligenceentertainmentmobile commerceretailmobile mediafilmsTV showsFounded28 June 1999 23 years ago 1999 06 28 1 Hangzhou Zhejiang ChinaFounderJack MaHeadquartersNo 969 West Wen Yi Road 2 Yuhang District Hangzhou Zhejiang China and George Town Cayman Islands 3 4 Area servedWorldwideKey peopleDaniel Zhang executive chairman and CEO Joseph Tsai executive vice chairman J Michael Evans president ServicesAlibaba comAlibaba CloudAliExpressAliOSAliGenieTaobaoTmallLazada1688 comDarazRevenue 853 062 billion RMB 5 US 134 567 billion 2022 Operating income 69 638 billion RMB 5 US 10 985 billion 2022 Net income 47 079 billion RMB 5 US 7 427 billion 2022 Total assets 1 696 trillion RMB 5 US 267 467 billion 2022 Total equity 1 073 trillion RMB 5 US 169 189 billion 2022 OwnerSoftBank Group 23 9 6 Number of employees254 941 5 31 March 2022 SubsidiariesSee companies and affiliated entitiesWebsiteOfficial websiteAlibaba Group Alibaba in Chinese characters Simplified Chinese阿里巴巴集团Traditional Chinese阿里巴巴集團TranscriptionsStandard MandarinHanyu PinyinAlǐbaba JituanIPA a li pa pa tɕi tʰwa n Yue CantoneseYale RomanizationAleihbaba JaahptyuhnJyutpingAa3leoi5baa1baa1 zaap6tyun4On 19 September 2014 Alibaba s initial public offering IPO on the New York Stock Exchange raised US 25 billion giving the company a market value of US 231 billion and by far then the largest IPO in world history 8 It is one of the top 10 most valuable corporations 9 and is named the 31st largest public company in the world on the Forbes Global 2000 2020 list 10 In January 2018 Alibaba became the second Asian company to break the US 500 billion valuation mark after its competitor Tencent 11 As of 2020 update Alibaba has the sixth highest global brand valuation 12 Alibaba is one of the world s largest retailers and e commerce companies In 2020 it was also rated as the fifth largest artificial intelligence company 13 It is also one of the biggest venture capital firms and investment corporations in the world as well as the second largest financial services group behind Visa via its fintech arm Ant Group The company hosts the largest B2B Alibaba com C2C Taobao and B2C Tmall marketplaces in the world 14 It has been expanding into the media industry with revenues rising by triple percentage points year after year 15 It also set the record on the 2018 edition of China s Singles Day the world s biggest online and offline shopping day 16 Contents 1 Naming 2 History 3 Companies and affiliated entities 3 1 E commerce and retail service platforms 3 1 1 Gold Supplier membership 3 2 Cloud computing and artificial intelligence technology 3 2 1 Surveillance of Uyghurs 3 3 FinTech and online payment platforms 3 4 Entertainment services 3 5 Internet services 3 6 Others 4 Corporate governance 5 Financial data 6 See also 7 References 8 External linksNaming EditThe company s name came from the character Ali Baba from the Middle Eastern folk tale collection One Thousand and One Nights because of its universal appeal 17 As Jack Ma one of the founders replied to Lorraine Hahn on TalkAsia One day I was in San Francisco in a coffee shop and I was thinking Alibaba is a good name And then a waitress came and I said do you know about Alibaba And she said yes I said what do you know about Alibaba and she said Open Sesame And I said yes this is the name Then I went onto the street and found 30 people and asked them Do you know Alilbaba People from India people from Germany people from Tokyo and China They all knew about Alibaba Alibaba open sesame Alibaba 40 thieves Alibaba is not a thief Alibaba is a kind smart business person and he helped the village So easy to spell and global know Alibaba opens sesame for small to medium sized companies We also registered the name AliMama in case someone wants to marry us 18 History EditOn 28 June 1999 1 Jack Ma with 17 friends and students founded Alibaba com a China based B2B marketplace site in his Hangzhou apartment In October 1999 Alibaba received a US 25 million investment from Goldman Sachs and SoftBank Alibaba com was expected to improve the domestic e commerce market and perfect an e commerce platform for Chinese enterprises especially small and medium sized enterprises SMEs to help export Chinese products to the global market as well as to address World Trade Organization WTO challenges In 2002 Alibaba com became profitable three years after launch Ma wanted to improve the global e commerce system so from 2003 onward Alibaba launched Taobao Marketplace Alipay Alimama com and Lynx 19 20 When eBay announced its expansion into China in 2003 Ma viewed the American company as a foreign competitor and rejected eBay s buyout of Alibaba s subsidiary Taobao By applying existing technologies gaining trust in the Chinese e commerce market and expanding through dominating the market at a loss before making a return on additional services Alibaba s subsidiaries outperformed eBay in the Chinese e commerce market claiming a growing percentage of consumers from eBay Alibaba subsidiary Taobao would later force eBay out of the Chinese market with eBay closing its unprofitable China Web unit though the two companies would break even six years later 19 21 22 In 2005 Yahoo invested in Alibaba through a variable interest entity VIE structure buying a 40 stake in the company for US 1 billion 19 22 This would as a result net in US 10 billion in Alibaba s IPO alone to Yahoo 21 23 According to Li Chuan a senior executive at Alibaba the company was planning in 2013 to open traditional brick and mortar retail outlets in partnership with Wanda Group a Chinese real estate company 24 Additionally Alibaba purchased a 25 stake in Hong Kong listed Chinese department store chain Intime Retail in early 2014 25 In early 2017 Alibaba and Intime s founder Shen Guojun agreed to pay as much as HK 19 8 billion US 2 6 billion to take the store chain private Alibaba s stake 28 from 2014 s US 692 million investment would rise to about 74 after the deal 26 In April 2014 Alibaba invested in Lyft along with Coatue Management and Andreessen Horowitz they led a US 250 million Series D financing round 22 27 On 5 June 2014 Alibaba bought a 50 stake of Guangzhou Evergrande F C from Evergrande Real Estate Group Ltd in a deal that was worth 1 2 billion yuan US 192 million 22 28 On 5 September 2014 the group in a regulatory filing with the US Securities and Exchange Commission SEC set a US 60 to 66 per share price range for its scheduled initial public offering IPO the final price of which would be determined after an international roadshow to gauge the investor interest in Alibaba shares to shareholders On 18 September 2014 Alibaba s IPO priced at US 68 raising US 21 8 billion for the company and investors Alibaba was the biggest US IPO in history bigger than Google Facebook and Twitter combined 29 30 31 On 19 September 2014 Alibaba s shares BABA began trading on the NYSE at an opening price of 92 70 at 11 55 am EST On 22 September 2014 Alibaba s underwriters announced their confirmation that they had exercised a greenshoe option to sell 15 more shares than originally planned boosting the total amount of the IPO to 25 billion 32 33 Alibaba and the underwriters of its IPO were sued in a California superior court in a consolidated class action lawsuit 34 The lawsuit was filed in October 2015 on behalf of investors who purchased Alibaba s American depositary shares alleging violations of the Securities Act 35 Alibaba reached a settlement agreement in December 2018 subject to court approval in which it agreed to pay 75 million to settle the lawsuit 34 36 37 In January 2017 Alibaba and the International Olympic Committee jointly announced an 800 million deal that would last until 2028 in where the company would sponsor the Olympic Games 22 38 In September 2018 Jack Ma the main founder of Alibaba announced that he would step down as chairman in a year s time so he could focus on philanthropy 39 In response to the announcement The Economist stated that Ma had a significant impact in China and worldwide via contributions and dedication to various businesses 40 In May 2019 Bloomberg cited sources familiar with the matter as saying that Alibaba was considering raising 20 billion through a second listing in Hong Kong 41 On Tuesday 10 September 2019 Jack Ma officially stepped down as the chairman of Alibaba Daniel Zhang succeeded him at the head of the company In September 2019 the municipal government of Hangzhou announced that it was boosting its monitoring of the private sector by embedding government officials in Alibaba and other companies 42 43 In November 2020 The Wall Street Journal reported that Chinese Communist Party general secretary Xi Jinping personally scuttled Jack Ma s Ant Group IPO 44 At that time this was highlighted as the world s largest IPO suspension sending a chilling warning to numerous entrepreneurs Bo Zhuang chief China economist at TS Lombard said that the suspension forms part of a wider political drive as the leadership seeks to widen and consolidate its control over finance and technology 45 What followed was an unexpected Chinese government released draft on 10 November 2020 which gives regulatory authorities a wider latitude to regulate their biggest tech enterprises 46 47 On 24 December 2020 China launched an antitrust investigation into Alibaba Group regulators in a crackdown on China s booming Internet space s anti competitive behavior 48 In December 2020 the shares of Alibaba Group suffered a historic stock price crash to the lowest close in around 6 months following the antitrust investigation into the company by Chinese regulators 49 In December 2020 China s State Administration for Market Regulation SAMR stated that it opened an investigation into Alibaba over monopolistic practices 50 51 The country s central bank as well as three other regulators confirmed in a separate statement that the affiliated Ant Group would also be summoned for discussions over competition and consumer rights where regulators instructed the company to return its focus to digital payments 52 People s Daily the official newspaper of the Central Committee of the Chinese Communist Party endorsed the investigation shortly after the announcement claiming the investigation to be an important step in strengthening antimonopoly oversight in the internet sphere 53 54 As a result from the antitrust probe Alibaba lost nearly all of its stock market gains in 2020 from 859 billion to 586 billion by the end of December 55 Jack Ma co founder of both Alibaba and Ant Group vanished from public view when Ant s IPO was suspended in early November 56 but resurfaced in January 2021 in a 50 second video appearing briefly via video link at the digitally facilitated Rural Teacher Initiative As of February 2021 he has yet to be seen in public 57 The video appearance caused Alibaba stock to jump more than 7 58 In February 2021 Alibaba sold 5 billion in bonds the company s third large sale of dollar bonds issuing four sets priced to yield between 2 143 and 3 251 The four sets of bonds were 1 5 billion of both 10 year and 30 year debt along with 1 billion of bonds due in 20 and 40 years The 20 year bonds were designated as sustainability notes 59 60 61 On April 9 2021 as part of a Chinese crackdown on big tech SAMR issued a 2 8 billion fine against Alibaba for anti competitive practices and ordered Alibaba to file self examination and compliance reports to the SAMR for three years This amounted to 12 of its 2020 net profit Critics say the move tightens the Chinese s governments control of tech companies 62 63 64 On 11 November 2021 it was reported that over the course of its 11 day Singles Day sales extravaganza Chinese e commerce giant Alibaba Group Holding received a record 540 3 billion yuan S 114 4 billion in orders a 14 percent increase over the previous year 65 In July 2022 the SEC added Alibaba to a list of companies facing delisting from U S stock exchanges if its auditors remain unable to examine Alibaba s books before 2024 66 In December 2022 a state owned enterprise of the China Internet Investment Fund established by the Cyberspace Administration of China took a 1 percent golden share investment in two Alibaba subsidiaries that control Youku and UCWeb 67 Companies and affiliated entities EditE commerce and retail service platforms Edit Alibaba group Headquarters Alibaba Binjiang Campus in Hangzhou headquarters for Alibaba s B2B service 68 In 1999 Jack Ma launched the primary business of Alibaba Alibaba com while working as an English teacher in Hangzhou Alibaba com later became the world s largest online B2B trading platform for small businesses as of 2014 69 Alibaba com has three main services the English language portal Alibaba com which handles sales between importers and exporters from more than 240 countries and regions 70 the Chinese portal 1688 com which manages domestic B2B trade in China and transaction based retail website AliExpress com 全球速卖通 which allows smaller buyers to buy small quantities of goods at wholesale prices citation needed Alibaba com went public at the Hong Kong Stock Exchange in 2007 and was delisted again in 2012 71 In 2013 1688 com launched a direct channel that was responsible for 30 million in daily transaction value 72 In 2003 Alibaba launched Taobao Marketplace 淘宝网 offering a variety of products for retail sales Taobao grew to become China s largest C2C online shopping platform and later became the second most visited web site in China according to Alexa Internet 73 74 Taobao s growth was attributed to offering free registration and commission free transactions using a free third party payment platform 75 Advertising made up 75 percent of the company s total revenue allowing it to break even in 2009 In 2010 Taobao s profit was estimated to be 1 5 billion US 235 7 million which was only about 0 4 percent of their total sales figure of 400 billion US 62 9 billion that year way below the industry average of 2 percent according to iResearch estimates 75 According to Zhang Yu the director of Taobao between 2011 and 2013 the number of stores on Taobao with annual sales under 100 thousand increased by 60 the number of stores with sales between 10 thousand and 1 million increased by 30 and the number of stores with sales over 1 million increased by 33 76 In April 2008 Taobao introduced a spin off Taobao Mall 淘宝商城 later Tmall com an online retail platform to complement the Taobao C2C portal offering global brands to an increasingly affluent Chinese consumer base It became the eighth most visited web site in China as of 2013 77 In 2012 Tmall com later changed its Chinese name to Tianmao 天猫 sky cat reflecting off of Tmall s Chinese pronunciation 78 In March 2010 Taobao launched the group shopping website Juhuasuan 聚划算 offering flash sales which are products that are available at a discount for only a fixed time period In October 2010 Taobao beta launched eTao a comparison shopping website that offers search results from mostly Chinese online shopping platforms 79 including product searches sales and coupon searches According to the Alibaba Group web site eTao offers products from Amazon China Dangdang Gome Yihaodian Nike China and Vancl as well as Taobao and Tmall 70 As part of a restructuring of Taobao by Alibaba these spin offs became separate companies in 2011 with Tmall and eTao becoming separate businesses in June and Juhuasuan becoming a separate business later in October 80 In 2010 Alibaba launched AliExpress com an online retail service made up of mostly small Chinese businesses offering products to international online buyers It is the most visited e commerce platform in Russia 81 It allows small businesses in China to sell to customers all over the world resulting in a wide variety of products It might be more accurate to compare AliExpress to eBay though as sellers are independent it simply serves as a host for other businesses to sell to consumers 82 Similar to eBay sellers on Aliexpress can be either companies or individuals It connects Chinese businesses directly with buyers The main difference from Taobao is that it s aimed primarily at international buyers mainly the US Russia Brazil and Spain 83 In 2013 Alibaba and six large Chinese logistics companies including SF Express established a company called Cainiao for delivery of packages in China This network gradually grew to 14 local logistics companies in 2014 84 In 2016 Alibaba s Taobao and Tmall two of the world s largest and most popular online retail marketplaces achieved a total transaction volume of 3 trillion yuan US 478 6 billion The company aims to double the transaction volume to 6 trillion yuan by 2020 As of February 2018 update Taobao reached 580 million monthly active users while Tmall achieved 500 million monthly active users 85 86 87 It is also rapidly expanding its e commerce network abroad 88 Alibaba has also announced that it will invest 100 billion yuan over five years to build a global logistics network underpinning an aggressive overseas expansion and demonstrating Alibaba s commitment to building the most efficient logistics network in China and around the world It is investing a further 5 3 billion yuan in Cainiao Logistics to boost its stake to 51 percent from 47 percent 89 The investment would value Cainiao a joint venture of top Chinese logistics firms at around US 20 billion 90 On 11 June 2014 Alibaba launched US shopping site 11 Main The 11 Main marketplace hosts more than 1 000 merchants in categories such as clothing fashion accessories and jewelry as well as interior goods and arts and crafts and it plans to keep adding more said the company 91 92 On 23 June 2015 Alibaba announced that it is selling 11 Main to OpenSky an online marketplace operator based in New York 93 Lazada warehouse in Cabuyao Laguna Philippines during the company s 11 11 sale promotion in 2018 Lazada Group is a subsidiary of Alibaba Group and Alibaba co founder Lucy Peng Lei is CEO of the company In February 2015 Alibaba invests US 590 million in Meizu acquiring an undisclosed minority stake 94 In June 2015 Alibaba started a joint venture Koubei with its affiliate Ant Financial Group to tap China s fast growing local services market each investing approximately US 483 million into the business for an equal equity stake In April 2016 Alibaba announced that it intended to acquire a controlling interest in Lazada by paying 500 million for new shares and buying 500M worth of shares from existing investors 95 Lazada Group is a Singaporean e commerce company founded by Rocket Internet in 2011 Lazada operates sites in Indonesia Malaysia the Philippines Singapore Thailand and Vietnam Its sites launched in March 2012 with a business model of selling inventory to customers from its own warehouses In 2013 it added a marketplace model that allowed third party retailers to sell their products through Lazada s site Lazada features a wide product offering in categories ranging from consumer electronics to household goods toys fashion and sports equipment In March 2018 Alibaba announced its plan to invest an additional 2 billion in the company totaling a 4 billion investment Alibaba also plans to appoint Alibaba co founder Lucy Peng as Lazada s new CEO 96 In October 2016 Alibaba launched Alitrip later named Fliggy an online travel platform that is designed as an online mall for brands such as airline companies and agencies 97 98 Fliggy set the target audience as younger generation and it strives to become a one stop service when they plan their trips particularly in overseas travel 99 On 7 August 2017 Alibaba Group and Marriott International hotel group announced a comprehensive strategic co operation Two companies will set up a joint venture company Through the docking technology system and the superiority resources Fliggy has Marriott hotel flagship store It has the same function with Marriott Chinese website and Marriott mobile app to create the best global travel experience for consumers 100 In 2016 the Office of the United States Trade Representative added Taobao back onto a list of notorious counterfeit platforms that includes the likes of torrent site The Pirate Bay 101 Alibaba denied wrongdoing and filed two lawsuits against the counterfeiters as of January 4 2017 update 102 but brands whose sales have been affected by the counterfeit products accused Alibaba of not doing enough 103 In 2017 Alibaba started opening a chain of supermarkets named Hema 盒马 lit box horse as part of the company s new retail strategy where customers can either order in the store or online for delivery in under 30 minutes It offers a mobile app that recommends customers products based on data analytics 104 In addition customers can have their groceries cooked to eat in the food court of the supermarket 105 In October 2018 it was reported that Alibaba s Koubei have merged with online food delivery service platform Ele me into a new local life service subsidiary 106 107 However the newly formed Alibaba Local Life Service entity experienced major competition from local service giant Meituan which is backed by Tencent leading to rumours of planned layoffs in 2022 108 In October 2020 Alibaba agreed to pay US 3 6 billion to take control of China s biggest hypermarket operator Sun Art from French billionaire Mulliez family The deal doubled the group s stake in the hypermarket chain with a tootles ownership of 72 109 Gold Supplier membership Edit Alibaba com offers a paid Gold Supplier membership to try to ensure that each seller is genuine sellers Gold Supplier status and the number of years it has been held are displayed 110 The supplier verification types and checks are listed on Alibaba com s website with more stringent checks for sellers outside China 111 While the majority of suppliers are reported to be genuine citation needed there have been many cases of sellers some with Gold Supplier status seeking to defraud unsuspecting buyers 112 In February 2011 controversy ensued when Alibaba s corporate office admitted that it had granted the mark of integrity of its China Gold Supplier program to more than 2 000 dealers that had subsequently defrauded buyers the firm s share price dropped abruptly after the announcement 113 A statement from the firm reported that Yan Limin the general manager of Alibaba com at the time had been dismissed in March for misconduct Phil Muncaster of UK s The Register additionally reported that a further 28 employees had been involved in dodgy dealings 114 As The Economist noted the company s response has conflicting components Alibaba s promulgated view that its corrective actions indicate its commitment to quality and integrity where it contrasts itself with other scandal associated Chinese business sectors versus a damage control view suggesting that the subscription driven third party verified China Gold Supplier program was endangered by diminished trust in its endorsement system removing the incentive for global buyers to choose Alibaba as their business to business service thus more broadly endangering Alibaba through impact on its brand and capabilities the latter via the defenestration of senior people 113 The scandal was said to have placed the head of Alibaba Group Jack Ma who was described as having been furious over the scandal in a position to personally fight to win back trust 115 Cloud computing and artificial intelligence technology Edit In conjunction with the company s 10th anniversary Alibaba launched Alibaba Cloud in September 2009 aiming to build a cloud computing service platform including e commerce data mining e commerce data processing and data customization 70 It has R amp D centres and operators in Hangzhou Beijing Hong Kong Singapore Silicon Valley 116 and Dubai 117 In July 2014 Alibaba Cloud entered into a partnership deal with Inspur Alibaba Cloud is the largest high end cloud computing company in China 118 In 2009 Alibaba acquired HiChina the largest domain registration service and web hosting service company in China and built it into Alibaba Cloud 119 On 28 July 2011 Alibaba Cloud released AliOS formerly Yun OS and Aliyun OS a Linux distribution designed for mobile devices 120 In the 2017 Computing Conference in Hangzhou Alibaba launched AliGenie a China based open platform intelligent personal assistant It is currently used in the Tmall Genie smart speaker 121 In 2018 Alibaba s Wanli Min presented City Brain 122 a technology geared towards urban solutions such as streamlining traffic detecting accidents and improving transport efficiency 123 124 On 27 July 2019 Alibaba unveiled a 64 bit RISC V processor called the XuanTie 910 Black Iron 910 It is a 12 nm 16 core with a clockrate of 2 5 GHz and was designed by Alibaba s subsidiary T Head also known as Pingtouge Alibaba claim the Xuantie 910 is faster than the ARM Cortex A73 and is capable of 7 1 Coremark MHz 125 126 127 128 On 25 September 2019 Alibaba announced an AI accelerator called the Hanguang 800 The Hanguang 800 contains 17 billion transistors built with a 12 nm process and was designed by T Head and DAMO Academy Alibaba s research team Alibaba claim it is capable of 78 563 images per second IPS inference and 500 IPS W in ResNet 50 The Hanguang 800 will be available to be rented on Alibaba Cloud 129 130 131 On 18 January 2022 Administration of the United States President Joe Biden started investigating Alibaba Cloud business s potential risk to the U S national security This included scrutiny of storage facility of the U S clients data by the provider and to determine whether the Chinese government can obtain access to the same 132 Surveillance of Uyghurs Edit See also Uyghur genocide In December 2020 The New York Times reported that Alibaba had developed and marketed facial recognition and surveillance software configured to detect Uyghur faces and those of other ethnic minorities in China 133 Alibaba responded that it was dismayed to learn that its Alibaba Cloud subsidiary had developed this feature 134 defending that the technology was developed in a testing environment and that it was not deployed by any customer 135 However IPVM reported in December 2020 that Alibaba refused to provide any proof the Uyghur recognition feature was just a test or trial and that Alibaba s own website showed Uyghur recognition as a live feature 135 FinTech and online payment platforms Edit Food ordered with Alipay In 2004 the Alibaba Group launched Alipay a third party online payment platform It also provides an escrow service in which buyers can verify whether they are happy with goods they have bought before releasing money to the seller 75 Alibaba Group spun off Alipay in 2010 in a controversial move 136 According to analyst research report Alipay has the biggest market share in China with 300 million users and control of just under half of China s online payment market in February 2014 137 In 2013 Alipay launched a financial product platform called Yu ebao 余额宝 138 Alipay partnered with the Tianhong Asset Management to launch it to the general public 138 In 2015 Alibaba announced that they will introduce a system that can be paid by recognizing the owner s face 139 140 On 16 October 2014 the Alipay company was re branded as Ant Financial Services now Ant Group 141 One of the factors for Alibaba s success in this platform is the company s quick and reliable payment system where it offers several types of payment systems such as credit card debit card Alipay Quick pay and online banking These payment systems help to cope with simultaneous cash flow transactions with ease and convenience Ant Financial was ranked sixth in Fortune s Change the World list recognized for the positive green environmental impact of its Ant Forest the world s largest platform for tracking individuals carbon footprints Ant Financial and its partners have achieved considerable success in the reduction of CO2 emissions 142 143 Ant Financial is the highest valued fintech company in the world and the world s most valuable unicorn start up company with a valuation of US 150 billion 144 145 146 Entertainment services Edit Alibaba created a new live entertainment business unit under its Digital Media and Entertainment Group which focuses on ticketing content creation and live experiences bringing its entertainment ticketing platform Damai and its content creation and technology units MaiLive and Maizuo under one roof It aims to provide a platform for live events e g concerts plays esports and sports events as well as supporting content partners and leveraging Alibaba s data capability for offline shows 147 148 It also provides the online digital distribution service 9Apps which hosts downloadable content and applications 149 In March 2014 Alibaba agreed to acquire a controlling stake in ChinaVision Media Group for 804 million The two firms announced they would establish a strategic committee for potential future opportunities in online entertainment and other media areas 150 The company was renamed Alibaba Pictures Group 151 In March 2015 Alibaba Group launched AliMusic as its music division Xiami Music and Tiantian Music are two of music steaming APP owned by AliMusic AliMusic named Gao Xiaosong as the chairman and Song Ke as chief executive officer in July 2015 152 In 2017 Tencent Music has expected 10bn IPO by signing a rights deal with Alibaba strengthening its position within the important Chinese market Under the terms of the deal Alibaba will gain the right to stream music from international labels such as Sony Music Universal Music Group and YG Entertainment which already have exclusive deals with Tencent in return for offering to its catalogue from Rock Records HIM International Music and so on 153 In April 2014 Alibaba and Yunfeng Capital a private equity company controlled by Alibaba s founder Jack Ma agreed to acquire a combined 18 5 percent stake in Youku Tudou which broadcasts a series of popular television programs and other videos over the Internet 154 In August 2020 Ant Financial a subsidiary of Alibaba launched the IPO program valued at US 200 billion 155 Internet services Edit In 2004 the Alibaba Group released Aliwangwang an instant messaging software service for interactions between customer and online sellers By 2014 there are 50 million Aliwangwang users making it the second largest instant messaging tool in China 156 In October 2013 the Alibaba s chairman Jack Ma announced that the Alibaba Group would no longer use Tencent s messaging application WeChat and would henceforth promote its own messaging application and service Laiwang 157 In April 2014 Alibaba Group and UCWeb a Chinese provider of mobile internet software technology and services launched Shenma 神马 a mobile only search engine as part of a joint venture 158 159 Later in June the Alibaba Group acquired UCWeb with an international product portfolio that includes a mobile browsing service UC Browser app and game distribution platforms 9Apps and 9Game a mobile traffic platform UC Union and UC News that primarily caters to all types of news in the India market as an aggregator among others 160 161 162 163 164 165 Alibaba s Y Projects Business Unit developed the Xuexi Qiangguo app which is used to teach Xi Jinping Thought 166 In October 2005 Alibaba Group formed a strategic partnership with Yahoo and acquired Yahoo China a Chinese portal previously launched on 24 September 1999 that focuses on Internet services like news email and search 167 In April 2013 Alibaba Group announced that as part of the agreement to buy back the Yahoo Mail stake that they would suspend technological support for China Yahoo Mail service and begin migration of Yahoo China Mail accounts Several options were offered to users to make the transition as smooth as possible and Yahoo China users had four months to migrate their accounts to the Aliyun mail service the Yahoo Mail service in the United States or to another third party e mail provider of the user s choice 168 Yahoo China closed its mail service on 19 August 2013 E mails sent to Yahoo China accounts could be forwarded to an Alimail box until 31 December 2014 Users were also allowed to transfer e mail accounts to yahoo com or any other e mail service It is estimated there are no more than a million users with Yahoo Mail for China and chances are they also own other e mail accounts 169 In 2014 Alibaba Group founded DingTalk an enterprise communication and collaboration platform Also known as Ding Ding the app was developed as part of efforts to compete with rival Tencent s WeChat 170 DingTalk is managed by Alibaba s cloud computing division 171 172 Others Edit In 2014 Alibaba and Yunfeng Capital a private equity firm launched AliHealth when the two companies bought a 54 stake in CITIC 21CN for HK 1 33 billion US 171 million 173 174 It is listed on the Hong Kong Stock Exchange as SEHK 241 It positions itself as a pharmaceutical e commerce business and medical services In the same year Alibaba acquired Chinese map supplier AutoNavi 175 In April 2015 the group also reached an agreement to transfer its online B2C pharmacy Tmall Medical yao Tmall com to AliHealth The integration provides consumers a wide range of pharmaceutical and health products available in China 176 In 2015 Alibaba later launched its Shanghai based sports division AliSports after a consolidation of some of the parent company s existing business units 177 The new company s operations encompass television and digital sports rights event operation venue commercialization copyright media business development gaming and ticketing 177 AliSports secured exclusive title sponsorship of the FIFA Club World Cup from 2015 to 2022 178 The company announced a Champion of Champions rugby sevens tournament in 2017 to be played in Shanghai for the highest prize money ever offered in the sport 179 In December 2015 Alibaba agreed to acquire the South China Morning Post and other media assets belonging to the group for a consideration of 266 million Although Alibaba promised editorial independence vice chairman Joseph Tsai said that Alibaba believes that the world needs a plurality of views when it comes to China coverage China s rise as an economic power and its importance to world stability is too important for there to be a singular thesis 180 The acquisition attracted media concerns over what this would mean for the newspaper s coverage 181 Other subsidiaries of Alibaba include Hangzhou Ali Venture Capital and Alibaba Entrepreneurs Fund Hangzhou Ali Venture Capital 杭州阿里创业投资 is a company 80 owned by Jack Ma and another manager of Alibaba For regulatory purpose Alibaba Group did not own the company directly but by pleading It was considered as a subsidiary and or consolidated entity of Alibaba Group 182 Ali Venture Capital is a shareholder of Beijing Enlight Media 183 and a domestic shareholder of China Unicom 184 The Alibaba Entrepreneurs Fund is a non profit making initiative launched by Alibaba Group in 2015 185 186 187 Alibaba also has invested in more than ten startups in Hong Kong including DayDayCook 188 GoGoVan 189 WeLend 190 and Qupital 191 192 In 2019 Alibaba launched China Russia flights in collaboration with Russian Post to assure fast shipping of products 193 Corporate governance Edit Jack Ma founder and the former executive chairman of the Alibaba GroupAlibaba s main co founder Jack Ma is the former executive chairman of the Alibaba Group from its creation to 10 September 2019 The current executive chairman is Daniel Zhang who succeeded Ma on 10 September 2019 and is also Alibaba s CEO since 2015 Joseph Tsai is Alibaba s executive vice chairman since 2013 194 J Michael Evans is Alibaba s president since 2015 195 The board of directors of Alibaba includes top management Jack Ma Joseph Tsai Daniel Zhang and J Michael Evans and director Eric Jing plus independent directors such as Chee Hwa Tung Walter Kwauk Borje E Ekholm and Wan Ling Martello as well as Yahoo co founder and former CEO Jerry Yang 196 Masayoshi Son founder and CEO of SoftBank formerly served on the firm s board 197 before stepping down in 2020 Besides Ma Tsai Zhang and Evans senior management also includes Toby Xu Chief financial officer Judy Tong Chief human resources officer Jeff Zhang Chief technology officer and President of Alibaba Cloud Intelligence Sophie Wu Chief customer officer Tim Steinert General Counsel and Secretary Jessie Zheng Chief risk officer and CRGO Chief Platform Governance Officer Angel Zhao Head of Alibaba Globalization Leadership Group Chris Tung Chief marketing officer Trudy Dai President of Wholesale Marketplaces Fan Jiang President of Taobao com and Jet Jing President of Tmall com Previously Jack Ma served as the CEO of the Alibaba Group since its creation but later stepped down in 2013 choosing Jonathan Lu as his successor 198 199 The Alibaba Group under Lu was performing well though there were rumors that Ma was growing distrustful in Lu s ability to lead the company 200 201 Daniel Zhang who served as COO of Alibaba under Lu succeeded Lu as CEO in 2015 202 On 10 September 2018 Ma chose Zhang to succeed him as executive chairman of the Alibaba Group after his stepping down announcement and this would go into effect in 1 year on 10 September 2019 203 Since 2012 the Chinese Communist Party has had a Party Committee in place in the company and has over 2 000 party members as Alibaba employees 204 In 2019 the Chinese government began embedding officials inside major technology companies including Alibaba 42 43 Alibaba has been criticized for censorship on its platforms this includes both censorship ordered by the Chinese government and self censorship 205 During the 2022 Russian invasion of Ukraine Alibaba refused to join the international calls for withdrawal from the Russian market Research from Yale University published on August 10 2022 identifying how companies were reacting to Russia s invasion identified Alibaba in the worst category of Digging in meaning Defying Demands for Exit companies defying demands for exit reduction of activities 206 Financial data EditFinancial data in CNY 207 208 Year Revenue Net Income Assets Equity2012 209 20 025 000 000 8 404 000 000 47 210 000 000 34 383 000 0002013 207 34 517 000 000 4 228 000 000 63 786 000 000 513 000 0002014 207 52 504 000 000 23 076 000 000 111 549 000 000 30 417 000 0002015 207 76 204 000 000 24 149 000 000 255 434 000 000 157 413 000 0002016 207 101 143 000 000 71 460 000 000 364 245 000 000 249 539 000 0002017 207 158 273 000 000 43 675 000 000 506 812 000 000 321 129 000 0002018 208 250 266 000 000 63 985 000 000 717 124 000 000 436 438 000 0002019 208 376 844 000 000 87 600 000 000 965 076 000 000 608 583 000 0002020 208 509 711 000 000 149 263 000 000 1 312 985 000 000 870 548 000 0002021 208 717 289 000 000 150 308 000 000 1 690 218 000 000 1 074 961 000 000See also Edit Companies portalVariable interest entity AmazonReferences Edit a b c Sec Form F 1 REGISTRATION STATEMENT Alibaba Group Holding Limited Archived 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