With worries that a global financial crisis will impact the Chinese suppliers and manufacturers who provide Alibaba.com its China-based revenue, e-commerce company Alibaba.com has posted financial results for the quarter ended September 30, 2008 that show its revenue has grown.
"While the global economy is facing extraordinary challenges, our business continues to grow at a steady pace and we delivered another solid performance in the third quarter. Through the first nine months of the year, our net profit grew 100% year-on-year," said David Wei, chief executive officer of Alibaba.com.
Alibaba.com reported total revenue of CNY780.2 million in the third quarter of 2008, up 37% from the same period of 2007 and 6% from the second quarter of 2008. The company's investment in China domestic trade has increased the significance of the China marketplace, which contributed 38% of total revenue for the current quarter, compared to 29% in the third quarter of 2007 and 36% in the second quarter of 2008. Alibaba.com had 398,351 paying members as of September 30, 2008, representing a 46% increase from the third quarter of 2007 and an 8% increase from the second quarter of 2008.
Revenue from the company's international marketplace was CNY484.5 million for the third quarter of 2008, an increase of 19% year-on-year and 3% quarter-on quarter, accounting for 62% of total revenue. The growth was primarily due to an increase in the number of Gold Supplier members and sales of value-added services.
Gross profit for the third quarter of 2008 was CNY681.6 million, an increase of 38% year-on-year and 6% quarter-on-quarter. Gross margin stayed at 87%, which was the same as the third quarter of 2007 and slightly lower than 88% in the second quarter of 2008. Profit from operations in the current quarter was CNY364.2 million, representing a 54% increase year-on-year and a 7% increase quarter-on-quarter. Operating profit margin increased to 47% in the current quarter from 41% in the same period last year and from 46% in the second quarter of 2008.
Cash and bank deposits were CNY6.14 billion as of September 30, 2008 compared to CNY5.77 billion as of June 30, 2008. As of September 30, 2008, 74.1% of the company's cash and bank balance was in Renmibi, 25.2% in United States dollars and 0.7% in Hong Kong dollars.
Alibaba.com also announced that its board of directors has authorized a share repurchase program of up to HKD2 billion through the end of 2009.