Alibaba Shares More Info On Earnings, Partners In IPO Documnets

Alibaba Group has enjoyed a tripling of its profits from last year, as the Chinese firm came out with fresh financial details since filing for a U.S. initial public offering. In a filing on Monday, apart from providing the financials, the e-commerce company disclosed the names of all 27 partners, according to Bloomberg.

Investors have been waiting for such details for a long time, as the information is important in deciding whether or not to buy shares in Alibaba’s IPO.

Alibaba shedding more light

For the year ended March 31, net income for the China’s largest e-commerce company swelled to 23.1 billion yuan ($3.7 billion) compared to 8.4 billion yuan last year. For the same period, revenue was up 52% to 52.5 billion yuan.

The partners named will enjoy the authority to nominate majority of Alibaba’s board and approve bonus allocations to management. The partners include 22 names from management like Chief Executive Jonathan Lu, Executive Chairman Jack Ma, executive vice chairman Joseph Tsai and chief operating officer Daniel Zhang. Six executives of Alibaba’s financial services affiliate are also included in the list of partners.

Independent directors include names like Yahoo! Inc. co-founder Jerry Yang and Tung Chee-hwa, the former chief executive of Hong Kong. A former top-level Goldman Sachs banker, J. Michael Evans, is also been included in the list.

Alibaba also revealed volume figures for its two main market places. The Tmall.com, which is a virtual shopping center, witnessed a two-fold rise in gross merchandise volume to $81 billion. Taobao Marketplace, which provides a platform for individuals and small businesses to sell products, witnessed a 42% rise in volume to $189 billion.

More details awaited

According to analyst estimates, the company founded by billionaire Jack Ma is worth $168 billion. Recent reports have hinted that Alibaba intends to list on Aug. 8, however, it is possible that market conditions and SEC requirements may postpone the IPO, which could be the largest ever in the U.S.

Even after the new filing, many investors’ questions remain unanswered, including the choice of exchange for the purpose of listing; the New York Stock Exchange (NYSE) or Nasdaq stock market.

The new details released today are part of the requirements from the U.S. Securities and Exchange Commission’s standard 30-day window from the initial filing.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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