Alibaba cancels cloud unit spin-off over US AI chip curbs, posts 9% revenue growth amid China’s shaky economy
- Alibaba says it will not proceed with a full spin-off of its cloud computing unit due to uncertainties brought by US chip export curbs
- The company has also put on hold its listing plan for supermarket chain Freshippo, a decision that it announced along with its quarterly earnings
Alibaba Group Holding has announced it will not proceed with a full spin-off of its cloud computing unit, as it posted 9 per cent growth in revenues in the September quarter, in its first earnings report since new leadership took over the Chinese e-commerce giant in September.
Alibaba, which is undergoing a sweeping restructuring to break its business empire into six major units and several small businesses, also said it is putting on hold its listing plan for supermarket chain Freshippo, as the company evaluates “market conditions and other factors that would contribute to a successful transaction to enhance shareholder value”.
Meanwhile, the company said it will pay out its first-ever annual dividends, which will total around US$2.5 billion.
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The Hangzhou-based company recorded revenue of 224.79 billion yuan (US$30.8 billion) in the quarter, in line with the consensus estimate of 224.1 billion yuan.
