Agencies and staff reporter

Chinese tech giant Alibaba (9988) saw a 53 percent growth year-on-year in its net profit for the nine months ended December, powered by strong year-end shopping sales and the success of its strategy to attract cost-conscious consumers.

Net profit for the first three quarters was 117.09 billion yuan (HK$125.02 billion), compared to 76.47 billion yuan in the same period of 2023, according to a filing with stock exchange.

The Hangzhou-based e-commerce firm generated revenue of 759.89 billion yuan over the nine months, up 5.46 percent from 719.29 billion yuan a year ago.

The company's Hong Kong-listed shares fell 2.58 percent on Thursday, but have gained more than 45 percent so far this year.

Its third-quarter net profit surged 2.39 times year-on-year to 48.95 billion yuan. Revenue was 280.15 billion yuan in December quarter, compared with 279.34 billion yuan expected by 17 analysts polled by LSEG.

Chinese retailers such as Alibaba have slashed prices and intensified promotional offers to revitalise consumer spending and drive sales at their core domestic e-commerce business.

China's annual Singles' Day sales, a nationwide shopping festival in October and November also known as Double 11, ran longer than previous editions led to a 26.6 percent rise in sales in major e-commerce platforms, according to data provider Syntun.

Alibaba's domestic e-commerce business Taobao and Tmall Group produced revenue growth of 5 percent for the quarter.

Alibaba has kicked off 2025 as a winner in China's AI race, drawing in investors with strategic business wins. In the December quarter, AI-related product revenue maintained triple-digit year-over-year growth for the sixth consecutive quarter.

Meanwhile, Alibaba affiliate Ant Group's quarterly profit surged more than fiftyfold after it benefited from an investment gain.

The Hangzhou-based online finance firm contributed nearly 4.49 billion yuan of profit to Alibaba. Considering Alibaba's one-third stake in Ant, that translates to an estimated 13.6 billion yuan in profit for the three months ended September, according to Bloomberg calculations based on Alibaba's earnings report.

Ant's earnings lag a quarter behind Alibaba's. The fintech company attributed the sizeable profit to a net investment gain, versus a loss from such activity the previous year. The results compared with a 193 percent jump in profit for the second quarter.

Revenue rose by 5 percent to 759.89 billion yuan. REUTERS

Shop fest, AI boom help Alibaba rake in 117b yuan