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Alibaba posts lowest growth on record after China crackdown

Bloomberg2/24/2022 9:3 PM GMT+08  • 2 min read
Alibaba posts lowest growth on record after China crackdown
Liquor maker Kweichow Moutai Co is now worth more than Alibaba.
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Alibaba Group Holding reported the slowest revenue growth since it went public, underscoring how China’s crackdown on its technology sector is taking a financial toll on the e-commerce giant.

Sales rose 9.7% for the three months ending in December, far below the 40%-plus growth that was common before the government scrutiny began, as consumer spending slows and competition intensifies. Net income tumbled 74% to 20.4 billion yuan ($4.37 billion; US$3.2 billion), after the company took a big hit from losses in its global investment portfolio.

Once the most valuable company in China, Alibaba has struggled since Beijing launched a sweeping crackdown on the private sector more than a year ago. The Chinese government forced Alibaba’s finance affiliate, Ant Group Co., to call off what would have been the world’s largest initial public offering in 2020, and then instituted a series of reforms that have undercut Alibaba’s business model.

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