Jack Ma to step down as president of his business school: FT

BEIJING - Chinese billionaire Jack Ma, founder of e-commerce giant Aibaba, is going to step down as president of the elite business school he founded after having been caught in a Beijing clampdown on tech titans, the Financial Times reported Monday.

Ma, formerly one of China's most flamboyant entrepreneurs, has largely disappeared from public view since Alibaba's fintech arm was investigated and fined by regulators for alleged monopolistic practices.

The Financial Times report cited sources saying that Hupan University -- an elite academy for Chinese business executives established in Ma's hometown of Hangzhou in 2015 -- has changed its name and will restructure its curriculum.

Ma will not hold any high-level title at the restructured organization, the report said, as Beijing seeks to limit his influence.

"Hupan is like an elite community, it's one of (the authorities') main targets," one person who worked with Ma was quoted as saying by the FT.

Viral videos circulating on Chinese social media earlier this month showed construction workers using a blow torch to remove characters on a large "Hupan University" sign. 

The FT also reported last month that Hupan University was forced to suspend new student enrolments after sustained pressure from Beijing to dismantle Ma's fintech empire.

In a series of blows for the group, Alibaba was fined a record 18.2 billion yuan ($2.8 billion) by antitrust authorities last month, and its fintech arm Ant Financial has been ordered to restructure its business after a planned listing was scuppered. 

Alibaba's reprimand is widely believed to be triggered by an October speech by Ma where he criticized state financial institutions for being outdated.

The crackdown has since widened to include many of Alibaba's competitors in China's ballooning tech sector, where government regulators fear their outsize influence on consumers could usurp that of Chinese state banks.

Since stepping down as chairman of Alibaba in 2019, Ma -- a former schoolteacher -- has poured his energies into philanthropy and various education projects.

Hupan University and Alibaba did not respond to requests for comment.

Agence France-Presse

China's super rich got $1.5 trillion richer during pandemic: report

BEIJING— China's super wealthy have earned a record $1.5 trillion in 2020, more than the past 5 years combined, as e-commerce and gaming boomed during pandemic lockdowns, an annual rich list said Tuesday.

An extra 257 people also joined the billionaires club in the world's number 2 economy by August, following 2 years of shrinking membership, according to the closely watched Hurun Report.

The country now has a total of 878 billionaires. The US had 626 people in the top bracket at the start of the year, according to Hurun in its February global list.

The report found that there were around 2,000 individuals with a net worth of more than 2 billion yuan ($300 million) in August, giving them a combined net worth of $4 trillion.

Jack Ma, founder of e-commerce titan Alibaba, once again topped the list after his wealth surged a whopping 45 percent to $58.8 billion as online shopping firms saw a surge in business owing to people being shut indoors for months during strict lockdowns to contain the virus.

He was followed by Pony Ma ($57.4 billion), boss of gaming giant and WeChat owner Tencent who made an extra 50 percent despite concerns about his firm's US outlook after it was threatened with bans there over national security fears.

First-time list member Zhong Shanshan, 66, best-known for his bottled water brand Nongfu, parachuted into third spot with $53.7 billion after a Hong Kong IPO in September, the report found.

'NEVER SEEN THIS MUCH WEALTH'

"The world has never seen this much wealth created in just one year," Hurun Report chief researcher Rupert Hoogewerf said in a statement.

This year's list shows China was "moving away from traditional sectors like manufacturing and real estate, towards the new economy," he added.

Wang Xing, founder of food delivery app Meituan, quadrupled his wealth and jumped 52 places to 13th in the list with $25 billion, while Richard Liu, founder of online shopping platform JD.com, doubled his money pile to $23.5 billion.

Health care entrepreneurs also moved up the list on the back of the pandemic, with Jiang Rensheng, founder of vaccine-maker Zhifei, tripling his value to $19.9 billion.

China shut down major cities around the country in late January and February to contain the virus that first emerged in Wuhan, causing an unprecedented economic contraction in the first quarter.

With infections appearing to be under control, the country is on track to become the only major economy to expand this year, according to the International Monetary Fund.

On Monday, data showed the economy expanded 4.9 percent in the third quarter but away from the glittering figures as many ordinary workers and fresh graduates are struggling to find jobs.

The urban jobless rate inched down to 5.4 percent in September, although analysts have warned of higher unemployment than officially reported this year.

Agence France-Presse

Alibaba's 11-11 sales hit record $38 billion

HANGZHOU, China -- Chinese retailer Alibaba Group Holding Ltd's sales for its 24-hour Singles' Day shopping blitz hit a record $38.4 billion, more than US rival Amazon.com Inc's haul last quarter from online store sales.

But sales growth for the annual shopping festival eased to 26 percent, the weakest since the event started in 2009, held back by a slowing e-commerce industry in China as the country's economic expansion heads toward a historic low.

The event, a gauge of Chinese consumer sentiment, has also become a shop window this year for Alibaba as it plans to sell $15 billion worth of shares in Hong Kong this month. The US-listed firm has spent big to diversify its business yet still earns over four-fifths of revenue from e-commerce.

Alibaba turned China's informal Singles' Day into a shopping event in 2009 and built it into the world's biggest online sales fest, dwarfing Cyber Monday in the United States which took in $7.9 billion last year. The name is a play on the date, Nov. 11, rendered 11/11 - or Double Eleven, as the event is also known.

The event has since been replicated at home and abroad, with Singles' Day promotions found at rivals such as China's JD.com Inc and Pinduoduo Inc as well as South Korea's 11thStreet and Singapore's Qoo10.

Alibaba said on Monday its gross merchandise volume or GMV for the whole event came in at 268.4 billion yuan ($38.4 billion), up 26 percent from last year but below Citic Securities' forecasts for a 20-25 percent expansion.

In 2018, it posted a 27 percent sales increase.

CELEBRITY START

The Chinese retail juggernaut, with a market value of $486 billion, kicked off this year's 24-hour shopping bonanza with a live performance by US pop star Taylor Swift followed by live-streamed marketing of over 1,000 brands.

The firm said 84 brands including those of Apple Inc, L'Oreal SA and Fast Retailing Co Ltd's Uniqlo each made over 100 million yuan in sales in the first hour.

Over half of merchants on its Tmall marketplace used live streaming to sell products during the event, and sales generated through the medium surpassed 10 billion yuan at 8.55 a.m. (0055 GMT), Alibaba said.

"Nearly all our brands have opted for livestreaming promotions some time this year," says Josh Gardner, who helps overseas companies sell products on Tmall as CEO of Kung Fu Data.

"It's more entertaining than browsing through a product detail page. Traffic from livestreaming is easy to convert into transactions, and Tmall has supported stores that run livestreaming activities with resources."

One vendor, New Zealand-based nutritional supplement maker Clinicians, broadcast livestreams from a booth set up on Alibaba's campus. According to Carlos Zhao, China market manager, the company has seen a 40 percent jump in sales after it started livestreaming in China six months ago.

"This is a product form from new Zealand, everything is in English, and so many people are selling similar products, so customers wonder, 'Which one do I choose from?'" he told Reuters. "Having a livestreamer can help to break those barriers."

Tmall has said it expects over 500 million users to make purchases this year, about 100 million more than last year. It has also put more emphasis this year on promotions targeting areas outside of China's massive first- and second-tier cities.

"The younger generation is buying more, and the customer from rural areas, the customers from lower-tier cities, they are buying imported products," Tmall General Manager Alvin Liu told reporters.

Singles' Day is known to be a stressful time for Alibaba employees with workers sleeping at the office to keep up with orders.

This year, at Alibaba's campus in Hangzhou, workers bustle around in red t-shirts with the slogan 'Make 11 happen'.

Percussion echoes through halls as departments bang large drums each time a sales record is broken. Pink rice cakes – dingshenggao, or 'victory cakes' eaten by Yue Army soldiers during the Song Dynasty - fill the office snack bars.

This is the first time Alibaba's Singles' Day is being held since its flamboyant co-founder Jack Ma resigned as chairman in September to "start a new life". 

source: news.abs-cbn.com

Alibaba sets eyes on $15-billion Hong Kong listing: report

HONG KONG - Chinese online retail titan Alibaba is hoping to raise up to $15 billion in a Hong Kong IPO, a report said Friday, which would be the city's biggest listing for 9 years.

The share sale by Asia's biggest company would also come as Hong Kong authorities battle months of sometimes violent protests that have dented the financial hub's economy and reputation.

Alibaba is looking to scoop up between $10 billion and $15 billion in the initial public offering, Bloomberg News cited unnamed sources as saying, and is looking to hold a hearing into the move -- as mandated by the Hong Kong exchange rules -- next week.

The firm declined to comment on the report when contacted by AFP.

Alibaba, which is already listed on New York's Nasdaq, had planned to list in the summer but called it off owing to the city's long-running pro-democracy demonstrations and the China-US trade war.

If realized, the $15 billion IPO would be the biggest since insurance giant AIA garnered $20.5 billion in 2010. However, it is lower than the $20 billion it had aimed to raise initially.

A second listing in Hong Kong would also curry favor with Beijing, which has sought to encourage its current and future big tech firms to list nearer to home after the loss of companies such as Alibaba and Baidu to Wall Street.

Mainland authorities have stepped up moves to attract such firms including launching a new technology board in Shanghai in July.

The Sci-Tech Innovation Board was launched as a battle with the United States for technological supremacy heated up, with Chinese President Xi Jinping calling on tech leaders to become global champions, while the US has fought back in part by taking steps to clip the wings of Chinese telecom giant Huawei.

Alibaba has capitalized on the Chinese consumer's love of e-commerce to dominate the sector in China and become one of the world's most valuable companies.

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Alibaba to resume Hong Kong listing plans as soon as November: sources

HONG KONG/NEW YORK - Alibaba Group Holding Ltd is eyeing a listing in Hong Kong as early as November to raise up to $15 billion, after political unrest put the move on ice earlier this year, people familiar with the matter said on Wednesday.

Alibaba's listing would boost Hong Kong's status as a major capital markets hub. After topping global rankings in 2018 for funds raised through IPOs, the city's bourse fell behind the New York Stock Exchange and Nasdaq this year amid months of anti-government protests that have roiled the Asian financial hub.

The float would be the world's biggest equity deal for the year if the initial public offering (IPO) for state-owned oil company Saudi Aramco gets delayed to next year. Aramco's IPO could be worth over $20 billion.

Alibaba plans to seek listing approval from Hong Kong Exchanges and Clearing Ltd shortly after the Chinese e-commerce giant's online retail frenzy Singles Day on Nov. 11, and may list its shares towards the end of November or in early December, the sources said.

The company expects to be in a position to forgo so-called pre-marketing meetings where it meets with institutional investors before a deal launch given its size and that many investors are already familiar with the company, the sources added. It is hoping to raise between $10 billion and $15 billion through the listing, Reuters has reported.

The sources cautioned that the plans are still subject to market conditions and requested anonymity as the matter is private.

A spokeswoman for Alibaba, which is already listed in New York, declined to comment. The company had been preparing to launch the listing in late August, but delayed it due to the lack of financial and political stability in Hong Kong after months of frequently violent anti-government demonstrations.

All the same, IPO activity has picked up since September as typically the last four months of the year are the busiest in Hong Kong for public floats.

Such a large offering from Alibaba, potentially the biggest follow-on share sale in seven years, according to Refinitiv data, could also have implications on liquidity in Hong Kong's financial system and the closely watched Hong Kong Interbank Offered Rate (HIBOR). This is particularly the case given that investors in the Hong Kong market often borrow funds in anticipation of large share sales.

A rise in HIBOR can in turn lift the Hong Kong dollar , which is pegged to the US dollar at a tight range of 7.75 to 7.85. To defend the peg, the Hong Kong Monetary Authority (HKMA), the city's de-facto central bank, buys local dollars if it gets too weak and sells to curb excessive strength.

Alibaba follows in the footsteps of brewer AB InBev, which in September raised about $5 billion by listing its Asia-Pacific unit in Hong Kong. It was the bourse's biggest and the world's second-largest IPO so far this year.

HOMECOMING

Alibaba holds the record for the world's largest IPO with its $25 billion float in New York in 2014.

At that time, the company had initially hoped to float in Hong Kong, but its governance structure clashed with the city's listing rules. Hong Kong Exchanges & Clearing loosened its rules last year, specifically to lure overseas-listed Chinese tech giants to float closer to home.

Alibaba would be the first to test the new system.

Since going public in New York, Alibaba's shares have more than doubled in value, giving it a market capitalization of around $460 billion.

In August, Alibaba reported better-than-expected quarterly revenue and profit, aided by growth in its e-commerce and cloud computing businesses.

A total of $18.5 billion was raised by companies via IPOs on the Hong Kong bourse from January through to mid-October, compared with $21.9 billion raised on the NYSE and $23.3 billion on Nasdaq, Refinitiv data showed.

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New era at Alibaba as Jack Ma rides into the sunset

SHANGHAI -- Jack Ma stepped aside as leader of the Alibaba Group on Tuesday, ending a spectacularly successful 20-year run during which the charismatic former English teacher's e-commerce company left a profound impact on China's economy.

Ma, who also turned 55 on Tuesday, said farewell in a speech in the eastern city of Hangzhou where Alibaba is based, thanking employees and predicting a smooth transition to a team of executives led by CEO Daniel Zhang.

"Today's is not Jack Ma's retirement. Its the start of passing on our system to another generation," Ma said in comments quoted by state media.

"This is not one person's choice. It shows the success of our system."

In a succession years in the making, Ma is stepping down as chairman of the company he founded in 1999 to focus on putting his $41 billion fortune toward philanthropic projects such as education. 

Ma's departure opens a new chapter for a company that helped unleash massive Chinese consumer spending, creating opportunities for countless businesses large and small, and helped cement the internet's central role in Chinese daily life.

Along the way, the charismatic Ma became a global figure.

With his fluent English, globetrotting, and playful antics -- he channeled Michael Jackson in a dance routine 2 years ago -- Ma shattered the aloof image of the Chinese executive, putting a friendly face on China's economic rise as he rubbed shoulders with the world's business and political elite.

"His background as an English teacher, allied to his raw charisma including a keen sense of humor have cemented his place... as the face of Chinese entrepreneurs overseas," said Duncan Clark, author of "Alibaba: The House That Jack Ma Built."

"His influence as a symbol of Chinese entrepreneurship is unparalleled."

RAGS TO RICHES 

Besides coming on his birthday, Ma's departure, fittingly for an instructor, fell on Teacher's Day in China, and on the same day Alibaba celebrated its 20th anniversary.

Ma was a cash-strapped entrepreneur when someone showed him the internet on a 1990s trip to the United States.

He launched various internet-related business projects in China that met with mixed success before convincing a group of Chinese and foreign friends to give him $60,000 to start a business-to-business e-commerce venture called Alibaba in 1999.

Today, Alibaba towers over Chinese e-commerce with more than half of domestic market share, international ambitions, and a dominant position in digital payments through affiliate Ant Financial.

US-listed Alibaba is now among the world's most valuable companies, worth $462 billion, according to Bloomberg data.

But Ma's successors face rising domestic competition just as growth in consumer spending is slowing along with China's economy.

Ma is expected to retain some advisory functions.

'A TEAM' TAKES OVER 

In contrast to Ma, the 47-year-old Zhang, who took over as CEO in 2013, is a mild-mannered finance expert. 

But Chinese media routinely refer to him as the operational brains who transformed idea-man Ma's sturdy little "tractor" into a "Boeing 747".

"The guys taking over are really top-tier," said Jeffrey Towson, an equity investor and professor at Peking University.

"This is the 'A Team'. You don't want to compete against them in anything."

Since Zhang took over operations, Alibaba has poured investment into new initiatives including bricks-and-mortar retail, cloud computing, digital media, the grocery sector, meal delivery, entertainment and advertising. Earnings have remained strong.

On Friday, Alibaba said it bought the e-commerce platform of fellow Chinese internet giant NetEase for around $2 billion, further strengthening its industry lead.

Alibaba and its imitators, however, have been accused of fostering rampant consumerism, traffic in counterfeit goods, and producing mountains of packaging-material refuse.

Ma himself has drawn barbs, including after he recently dismissed concerns that Chinese workers were toiling excessive hours, and over the revelation last year that he was a Communist Party member.

But he also has won plaudits for his philanthropy and self-deprecating ways, frequently recounting how he was rejected by Harvard "10 times".

While Ma has inspired strong devotion among employees and fans, Zhang eschews the limelight but is considered a hyper-competitive businessman.

"You must keep awake every minute; you need to keep your eyes open in your sleep," Zhang said last year.

source: news.abs-cbn.com

Alibaba postpones up to $15 billion Hong Kong listing amid protests: sources

HONG KONG/NEW YORK - China's biggest e-commerce company Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub, two people with knowledge of the matter told Reuters.

Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing which was set to take place in late August, one of the people said.

The decision was made on the lack of financial and political stability in Hong Kong amid more than 11 weeks of pro-democracy demonstrations which have become increasingly violent and plunged the city into turmoil, the people added.

Tear gas has been used frequently by police while more than 700 people have been arrested, followed by an unprecedented airport shutdown last week. Hong Kong's stock market also fell to seven-month lows last week.

While no new timetable has been formally set, Alibaba could launch the Hong Kong deal as early as in October, seeking to raise $10 to $15 billion, when political tensions ease and market conditions become favorable again, said the other source.

"It would be very unwise to launch the deal now or anytime soon. It would certainly annoy Beijing by offering Hong Kong such a big gift given what's going on in the city," said the source.

Alibaba declined to comment on the deal.

Both sources declined to be identified as they were not authorized to speak to media.

source: news.abs-cbn.com

Alibaba is the force behind hit Chinese Communist Party app: sources

BEIJING -- A Chinese government propaganda app that recently became a huge hit was developed by Alibaba, two people at the company told Reuters, at a time when the nation's tech firms are under global scrutiny over their ties to Beijing.

"Xuexi Qiangguo," which literally translates as 'Study to make China strong' and is a play on the government propaganda theme of applying President Xi Jinping's thoughts, overtook Tik Tok's Chinese version Douyin and WeChat to become the county's most popular app on Apple's China app store last week.

It was developed by a largely unknown special projects team at Alibaba known as the "Y Projects Business Unit", which takes on development projects outside the company, said the people.

New York-listed Alibaba declined to comment on whether the business unit had developed the app.

The app's development by Alibaba, whose Chairman Jack Ma is a member of the Communist Party, is the latest example of a Chinese tech company collaborating with the government.

The country's propaganda department has released the app ahead of next month's National People's Congress in Beijing, China's top annual parliamentary gathering.

JOB OPPORTUNITIES

The app, which includes short videos, government news stories and quizzes, was created by an Alibaba team. A user of Alibaba's own messaging app DingTalk can use their login credentials to log into Xuexi Qiangguo. Alibaba said the app was built using DingTalk's software.

Staff at the Alibaba unit are responsible for developing and maintaining the app that includes news, videos, livestream and community comments, according to the sources and a job advertised for Xuexi Qiangguo on Alibaba's career website.

The unit does not have a website, but is described in job ads on popular Chinese careers site Zhipin.com as a strategic level project that is in a creation stage and offers many job opportunities.

At least part of the app's runaway popularity can be attributed to directives issued by local governments and universities that require people in China's expansive party member network to download the app.

The app has been downloaded over 43.7 million times on Apple and Android devices since its launch in January, according to estimates by Beijing-based statistical consulting firm Qimai.

It was not immediately clear whether Alibaba makes money from the app, or who initiated its development.

Last month, Alibaba executive vice-chairman Joe Tsai slammed US treatment of fellow Chinese tech firm Huawei Technologies as "extremely unfair", and sharply criticized what he called an attempt by the US government to curb China's rise via the trade war.

Huawei, the world's biggest network equipment maker, has been largely barred from the United States and some other countries on suspicion that its products could be used as a conduit for spying. Huawei and China have denied the allegations.

EXTENSIVE COLLABORATION

But major Chinese tech companies have cooperated extensively with governments in China on infrastructure, cloud computing and public security as part of the country's "Internet Plus" policy drive to improve traditional industries.

Collaboration with state media has also increased in recent years, amid tighter censorship laws that require companies to toe the party line.

Tik Tok creator Beijing ByteDance Technology Co and WeChat creator Tencent Holdings Ltd are among some who have collaborated with state media outlets using their social media platforms.

"The upside for these firms is that their track record of cooperation can put them in a better position to obtain key licenses or opportunities," said Mark Natkin, managing director at Beijing-based Marbridge Consulting, adding these collaborations were Beijing's way of maintaining control over private firms.

"The downside is they may get tapped to participate in projects which, on economic or PR considerations alone they might normally eschew, but which may be uncomfortable or unwise to refuse."

source: news.abs-cbn.com

Spanish retail giant Corte Ingles in deal with Alibaba

MADRID, SPAIN -- Spain's top department store chain El Corte Ingles on Thursday announced a collaboration with Chinese e-commerce giant Alibaba.

Under the deal El Corte Ingles ("The English Cut"), currently present only in Spain and Portugal, will be able to sell its products worldwide through Alibaba platforms like Tmall and AliExpress.

For its part AliExpress -- an e-commerce platform offering smaller-quantity orders and instant online transactions -- will gain "physical spaces" in Corte Ingles stores to create "new and attractive buying experiences" and move into the Spanish market.

AliExpress will also be able to pick up products bought online at the stores.

"We are looking forward to joining forces with them to provide consumers in China and worldwide with the greatest products and experience," said Rodrigo Cipriani Foresio, the Alibaba group's managing Director for Spain.

The debt-riddled Spanish retailer posted turnover of 15.9 billion euros ($18 billion) last year, with consolidated net profits of 202 million euros, a 25 percent increase over the previous year.

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Alibaba co-founder Jack Ma announces retirement

SAN FRANCISCO, United States - Alibaba co-founder and chief Jack Ma announced he will leave from the Chinese e-commerce giant Monday to devote his time to philanthropy focused on education.

Ma was an English teacher before starting Alibaba in 1999 and built it into a multibillion-dollar internet colossus.

His own worth has soared along with that of the company, which was valued at $420.8 billion based on its share price at the close of trading on Friday.

Ma told The New York Times that he plans to step down from the company, referring to his retirement as "the beginning of an era" rather than an end.

After being knocked back by US venture capitalists in 1999, cash-strapped Chinese entrepreneur Ma persuaded friends to give him $60,000 to start an e-commerce firm called Alibaba.

As he prepares to leave the company, Ma is among China's super rich. His net worth was estimated at $36.6 billion by Forbes.

Ma will turn 54 years old on Monday, the day he is retiring.

He gave up his university teaching job after discovering the internet.

Seeing an opportunity for small businesses to buy and sell their goods online, he started Alibaba, initially running the company out of his apartment in the eastern city of Hangzhou.

"The first time I used the internet, I touched on the keyboard and I find 'well, this is something I believe, it is something that is going to change the world and change China,'" Ma once told CNN.

Ma has inspired strong devotion among his employees and users, drawing comparisons with late Apple co-founder Steve Jobs -- although he practiced a more open management style.

A devotee of tai chi, he has made references to Chinese martial arts in both business strategy and corporate culture.

Porter Erisman, a former Alibaba employee who made a documentary about the firm, "Crocodile in the Yangtze," said: "What Silicon Valley is known for, he embodies a lot of that with Chinese characteristics -- that spirit of openness, risk-taking, innovation."

Ma graduated from the Hangzhou Teachers College with a major in English-language education, and went on to teach at another university in the city, where Alibaba is still headquartered.

Chinese state media have burnished his rags-to-riches story, saying his parents were poorly educated and his father depended on a monthly retirement allowance of just $40 to support the family.

Ma's success was evident after Alibaba's Taobao bested eBay in China, forcing the US auction site to largely withdraw from the country in 2006.

source: news.abs-cbn.com

Alibaba's revenue jumps but investments to prolong margin squeeze

BEIJING -- Alibaba Group Holding Ltd, China's biggest e-commerce firm, warned on Thursday investments in its delivery business would keep pressuring profits even as it reported its strongest-ever quarterly revenue growth, largely in line with estimates.

US-listed shares of Asia's most valuable public company rose early on Thursday but then erased gains to end the day down 3 percent.

While Alibaba makes money from its core businesses, including online marketplaces Tmall and Taobao and payment platform Alipay, it also has far flung investments in sports content, microchips and facial recognition technology.

"As Alibaba continues to invest in New Retail initiatives, the consolidation of lower margin businesses such as Cainiao, Ele.me, and Lazada is shifting the long term margin profile of the core business," Baird analyst Colin Sebastian said in a note.

"We expect management's ongoing focus on New Retail market share will continue to be a profitability headwind for the foreseeable future," said Sebastian, cutting his price target on the stock by $5 to $215.

In April-June, Alibaba's gross margin was 11 percent versus 29.2 percent a year earlier, the lowest since the company's 2014 stock exchange listing. Profit margins at Alibaba are typically well above 20 percent.

On Thursday, the company said it had formed a holding company for its food delivery platform Ele.me and food and lifestyle services firm Koubei, for which it had received over $3 billion in new investment commitments, including from SoftBank Group Corp and Alibaba itself.

Quarterly net profit at Alibaba, led by China's second-richest man Jack Ma, plunged 41 percent, hurt by a one-time charge for stock-based compensation paid to employees to account for a jump in valuation of its affiliate Ant Financial.

Without the charge, Alibaba said its net income would have risen by 33 percent from the year-ago period. Excluding one-off items, the company earned 8.04 yuan per share, or $1.22 per share, missing the average estimate of 8.15 yuan per share.

Ant Financial, China's largest financial technology company, is controlled by Ma and has a profit sharing agreement with Alibaba. It announced a $14 billion fundraising in June, which valued it at around $150 billion.

Ant Financial, which is expanding rapidly into foreign markets, is locked in a costly battle for market share at home with WeChat Pay, owned by Alibaba's arch rival Tencent Holdings Ltd.

ACCELERATING REVENUE GROWTH

Shares of Alibaba, which has a market value of about $446 billion, are nearly flat so far this year, including Thursday's losses, compared with a 14 percent rise in the tech-heavy Nasdaq Composite Index.

But Alibaba's core e-commerce business is still growing strongly at a time when the broader Chinese economy is slowing amid a trade tariff war with the United States.

It has been pushing into brick-and-mortar to complement its massive online business and stay ahead of JD.com Inc, backed by Tencent.

Both JD.com and Tencent reported slower revenue growth in the latest quarter. Tencent was hurt by weak gaming revenue, while JD.com said that a slump in summer sales hurt profit.

Sales at Alibaba's core e-commerce business swelled 61 percent to 69.2 billion yuan. Total June quarter sales jumped 61 percent as well to 80.9 billion yuan ($11.77 billion). Analysts expected 80.7 billion yuan, according to Thomson Reuters I/B/E/S.

Revenue in Alibaba's cloud computing business nearly doubled to 4.7 billion yuan, while entertainment unit revenue rose 46.4 percent to 6 billion yuan.

source: news.abs-cbn.com

Jack Ma shares success secrets: IQ, EQ and LQ

MANILA - Chinese billionaire entrepreneur Jack Ma on Wednesday said successful people chase their dreams, no matter how foolish, and complain only about themselves without blaming others.

The chairman and founder of e-commerce giant Alibaba said successful people possess “IQ, EQ and LQ” or intelligence, emotional and love quotients. An intelligent person, he said, would not succeed if he or she does not know how to deal with other people.

Ma said he was considered a “crazy guy” when he was starting an internet-based business in China.

“Is that a silly dream? Believe (in) something that you are really passionate about. Don’t believe it because other people think it's important,” Ma told students of the De La Salle University in Manila.

“Be simple, stay foolish and no matter what, just continue,” he said.
People who fail always complain about others, Ma said.

“Only those people who check their own problems, these people survive, these people succeed,” he said, adding, “If there is no solution, don’t complain.”

Ma said Alibaba had thrived by constantly evolving, up to 18 times since the business started.

source: news.abs-cbn.com

Trump, China's Ma hold 'great' meeting on jobs

NEW YORK - President-elect Donald Trump and China's billionaire founder of e-commerce giant Alibaba held "great" talks in New York on Monday focused on creating US jobs and enabling trade with Asia.

The incoming Republican president, who will be sworn in as commander-in-chief in less than two weeks' time having never previously held elected office, has made job creation a key promise of his incoming administration.

His team said the meeting between the 70-year-old real estate tycoon and China' richest man was focused on how Alibaba can create one million US jobs by enabling one million US small businesses to sell goods into China and Asia.

"We had a great meeting," Trump told reporters afterward in accompanying Ma back down to the lobby of his Trump Tower headquarters.

He hailed the 52-year-old self-made Chinese billionaire as a "great, great entrepreneur, one of the best in the world."

"He loves this country and he loves China," Trump added. "Jack and I going to do some great things. Small business, right?" he added.

Ma, executive chairman of Alibaba, said it had been a "productive" meeting and that the focus would be on small business and American agricultural products.

"We discussed about helping American small business selling things through Alibaba platform to China and to Asia," he told reporters.

The Alibaba founder said the meeting focused on how to support one million small businesses, particularly in the Midwest, in selling products to China and Asia.

The meeting comes after Trump has taken a hard line with China, threatening to impose 45 percent import tariffs on Chinese goods and saying the world's second biggest economy has stiffed the US through currency manipulation and illegal subsidies.

That antagonism has raised fears among US businesses that their exports to China will be threatened, especially since Beijing has signaled it will retaliate.

Ma said he and Trump agreed that China-US relations "should be strengthened, should be more friendly and do better."

He said the door was "open" for discussing the relationship and trade issues, and praised Trump as "very smart" and "very open-minded" in listening.

Ma said he had conveyed his ideas on how to improve trade, and that the US president-elect had "concerns and he has solutions, that he wants to discuss with China and us."

Alibaba shares were up 1.11 percent on the New York Stock Exchange during trade on Monday.

Trump also met LVMH CEO Bernard Arnault on Monday. Arnault told reporters that his company was going to expand its production in the United States.

source: news.abs-cbn.com

Manny Pacquiao named Asia Game Changer of the year

NEW YORK CITY – For using his sport and his celebrity power as a positive influence, Filipino boxing champ Manny Pacquiao was honored with the 2015 Asia Game Changer of the Year award in New York City Tuesday night.

"I'm really thankful and happy because of this award na binigay sa akin," Pacquiao said.

Pacquiao's Adviser Michael Koncz said, "He's got a lot of pride accepting that award. It's good for him. It's good for the country. It's good for all Filipinos."

The award-giving body, Asia Society, said honorees were selected through a survey of more than 1,000 global leaders who inspire the world to do things differently.

Last year, Chinese billionaire Jack Ma, the businessman behind Alibaba, received the Asia Game Changer of the Year award.

Just like Pacquiao, Ma was chosen for his humanitarian and charitable works.

Other past awardees include Malala Yousafzai, the female rights activist from Pakistan, and Filipino social entrepreneur Illac Diaz, for his Liter of Light program.

While at the Asia Society, Pacquiao had a few minutes to see the Philippine Gold exhibit at the Asia Society Museum.

Pacquiao, who is launching a senatorial bid soon, said he has only one thing in mind.

"Pagbabago, reduce the poverty, and also reduce the crime," Pacquiao said.

Pacquiao is flying back to the Philippines on Wednesday to file his certificate of candidacy (COC) for the senatorial post.

Read more on Balitang America.

source: www.abs-cbnnews.com

Which billionaire lost $7B of his fortune in 2014?

MANILA, Philippines - This billionaire earned an extra $18.5 billion in 2014, making him the biggest financial gainer of the year, according to Wealth-X. Another billionaire, on the other hand, lost $7 billion, making him the biggest financial loser of 2014.

Wealth-X, a leading ultra high net worth intelligence and prospecting firm, said Alibaba founder and executive chairman Jack Ma added $18.5 billion to his wealth this year, bringing his total net worth to $29.2 billion. The 173 percent increase in his fortune was attributed to Alibaba's blockbuster IPO in September, and its stock's continued strong performance.

Highly-respected investor Warren Buffet ranked second on Wealth-X's list of top financial gainers, with a $13.5 billion increase in his fortune to $72.6 billion in 2014.

Bill Gates, who is still the world's richest man, added another $10.5 billion to his wealth in 2014 to reach $83.1 billion.

Facebook founder Mark Zuckerberg saw his fortune increase by $8.4 billion to reach $33.1 billion this year.

French-Israeli businessman Patrick Drahi added $5.1 billion to his wealth to hit $12.9 billion in 2014. Drahi founded telecommunications company Altice, which raised $1.8 billion from an IPO in January.

Biggest loser

Wealth-X also compiled the year's biggest financial losers.

Russian billionaire Leonid Mikhelson lost $7 billion, more than 40 percent of his wealth, due to the plunging Russian ruble, as well as weak oil prices. Mikhelson, who is the biggest shareholder of natural gas producer Novatek, is now worth $10 billion.

Japanese tycoon Masayoshi Son, who is the CEO of Soft Bank, saw a $5.9 billion reduction of his wealth this year, bringing it to $13.2 billion.

Hong Kong's second richest man Lui Chee Woo lost $5.5 billion of his fortune in 2014. His wealth is now at $14.1 billion. He is the chairman of K. Wah Group, which owns Galaxy Entertainment Group.

Amazon president, chairman and CEO Jeff Bezos' wealth was also reduced by $5.5 billlion this year, leaving him with $28.9 billion.

Sheldon Adelson, who is chairman and CEO of Las Vegas Sands, lost $5.2 billion of his fortune this year. His wealth is now estimated at $30.1 billion.

source: www.abs-cbnnews.com

Alibaba founder is now China's richest person

SHANGHAI - The largest stock offer in history has made Jack Ma, founder of e-commerce giant Alibaba, China's richest person with a fortune of $25 billion, an annual wealth ranking in the world's second largest economy showed Tuesday.

"It has been an amazing year for China's best tycoons despite the jitters about the Chinese economy," said China-based luxury magazine publisher Hurun Report in its annual rich list.

Ma reaped more than $800 million selling shares in the company he set up 15 years ago as Alibaba listed on the New York Stock Exchange Friday, based on company filings, with the value of his remaining stake of 7.8 percent surging to more than $17 billion by Monday.

Last year, the estimated wealth of the former English teacher turned Internet entrepreneur was just over $4.0 billion, which did not even place him in the top 20.

Alibaba's listing raised a total of $25 billion.

But only one other Alibaba co-founder, now vice president of its China investment team Simon Xie, made the rich list, Hurun Report said.

Property tycoon Wang Jianlin, whose Wanda company bought US cinema chain AMC Entertainment, dropped to second place from first last year with a fortune of $24.2 billion as the deflating of China's real estate bubble chased most developers out of the top 10.

A new face, Li Hejun of renewable energy firm Hanergy, tied for third place with $20.8 billion, alongside beverage magnate Zong Qinghou of Wahaha.

Completing the top five was Pony Ma of Tencent, operator of China's most popular instant messaging application WeChat, with $18.1 billion.

Technology commanded half of the top 10. Robin Li of China's dominant search engine Baidu was sixth; Richard Liu of Alibaba competitor JD.com took ninth, and Lei Jun of upstart mobile phone producer Xiaomi was 10th.

Rounding out the top 10 were father and son team Yan Jiehe and Yan Hao of road-builder China Pacific Construction in seventh position and another real estate mogul, Yan Bin of Reignwood in eighth.

China's real estate and infrastructure industries have been hit by the slowing economy.

The economy grew an annual 7.7 percent in 2013, the same as in 2012 -- which was the slowest rate of expansion since 1999. Gross domestic product growth was 7.5 in the second quarter this year.

Still, Hurun Report said the number of US dollar billionaires in China hit 354 this year, up 39 from last year.

source: www.abs-cbnnews.com