Alibaba suffers damages due to a billion fine of the Chinese authorities. The Internet giant complained about the results of the quarter, writes The Wall Street Journal.
Representatives of Alibaba billionaire Jack MA recorded the company’s loss for the first three months of 2021, after a fine of 2.8 billion dollars. China’s largest fine regulators of China appointed Alibaba in early April 2021 on charges of abuse of dominant position in the market in the promotion of their subsidiary Ant Group.
After sanctions, Alibaba reported a pure loss of 1.99 yuan (31 cent) per share, whereas in the fourth quarter of 2020 shares brought profits 1.16 yuan (18 cents).
At the same time, the company recorded the growth of revenues through the development of the cloud computing service and retail trade. Alibaba sales rose to $ 28.6 billion from 17.7 billion in the first quarter of last year. The number of clients over the past twelve months has grown by 32 million.
Profit Ant Group, according to the calculations of the Wall Street Journal, increased by about 41 percent over the year. In the last quarter of 2020, it amounted to about 3.4 billion dollars.
Antimonopoly investigation against Alibaba began with the conflict between Jack Ma and the Chinese authorities last year. Businessman criticized the policies of the regulator in the field of digital technology. Then the authorities blocked the IPO (the first public posting) of his subsidiary Ant Group and appointed a huge fine company. Sanctions from the PRC authorities touched on other high-tech companies in the country.