Chinese tech giant Alibaba reports better results than expected

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Chinese tech giant Alibaba reports better results than expected

Its stock in Hong Kong had opened up 5.2% earlier in the day.

The company reported revenue of more than 205.6 billion yuan in the quarter ended June, which is roughly in line with what it had previously recorded in the same time last year.

But in April and May, the company said its retail sales slumped, as Shanghai and other major Chinese cities dealt with crippling pandemic restrictions that slowed consumer demand and created logistical nightmares, and net income was better than expected. Since June business has picked back up, especially as logistics and supply chain situation gradually improve after Covid restrictions are lessened, said Daniel Zhang, CEO of Covid. After the US delisting threat on a conference call Thursday, Zhang said the company had seen a glimmers of recovery in categories like fashion and electronics, which were hit hard earlier on. Despite the fact that growth was virtually halting, Zhang tried to put a good spin on the latest results, noting that the company had overcome soft economic conditions to deliver stable revenues. He warned of a rocky road ahead, pointing out wider economic risks. There are beyond what we can influence, including but not limited to international geopolitical dynamics, Covid resurgence, and China's macroeconomic policies and social trends. He said that Alibaba had focused on narrowing losses across businesses such as its supermarket and food delivery units and that the only thing we can do at this moment is to focus on improving ourselves. It was added to the US Securities and Exchange Commission watchlist last Friday, which has led to bigger questions. Similar to other Chinese firms, the tech titans are at risk of being ejected from Wall Street if US auditors can't fully inspect its financial statements. Since its IPO in 2014, it has had a primary listing in New York, where its shares have traded since. It appears to be spreading its bets. The company plans to upgrade its secondary listing in Hong Kong to a primary listing last week. The change could give mainland Chinese investors access to the stock by the end of the year. One of the biggest longtime backers of Alibaba is seen to be pulling back. More than half of its holdings in the Chinese company had been sold, citing filings of forward sales seen by the newspaper. The Financial Times reported on Thursday that more than half of its holdings in the Chinese company had been sold, citing filings of forward sales seen by the newspaper. SoftBank didn't respond immediately to a request for comment.