Alibaba reports first operating loss as a public company due to record fine

China's top e-commerce platform Alibaba Group Holding Ltd on Thursday reported its first quarterly operating loss since going public in 2014 due to a record anti-monopoly fine.

Its US-listed shares fell more than 3 per cent in volatile premarket trading, even as the company forecast 2022 revenue above market expectations, betting that the broader pandemic-driven shift to online shopping will remain resilient.

But the strong outlook was overshadowed by a regulatory crackdown that resulted in the suspension of a $37 billion IPO of its affiliate Ant Group and a $2.8 billion fine for anti-competitive business practices.

The fine by China's markets regulator in April was the largest-ever of its kind.

Alibaba forecast annual revenue to be 930 billion yuan ($144.12 billion) for the fiscal year ended March 2022, above analysts' average estimate of 928.25 billion yuan.

It posted a net loss attributable to ordinary shareholders of 5.48 billion yuan, or 1.99 per American depository share (ADS), mainly due to the anti-monopoly fine.

Excluding items, Alibaba earned 10.32 yuan per ADS, below expectation of 11.11 yuan.

Core commerce revenue rose 72 per cent to 161.37 billion yuan in the quarter, powered by the company's China retail marketplaces and ongoing consumer adoption of e-commerce in the wake of the pandemic.

Revenue rose to 187.4 billion yuan ($29.03 billion) in the three months ended March 31, higher than 180.41 billion yuan forecast by 30 analysts compiled by Refinitiv.

Alibaba's US listed shares have fallen more than 30 per cent since hitting a record high in late October when its founder Jack Ma delivered a speech in Shanghai criticizing China's financial regulators.

Miaoshou weighs $500-mn Hong Kong IPO

Beijing Yuanxin Technology, which runs pharmaceutical e-commerce platform Miaoshou Doctor, is weighing a Hong Kong initial public offering (IPO) that could raise at least $500 million, according to people familiar with the matter. The company, which counts Tencent Holdings and Qiming Venture Partners among its backers, is working with CLSA and Goldman Sachs Group on the potential share sale, the people said. An offering could happen as soon as this year, said the people, asking not to be identified as the information isn’t public. Bloomberg