HONG KONG (AP) Alibaba plans to spin-off of its cloud computing business and said Thursday that its logistics and grocery units will explore initial public offerings as the Chinese e-commerce company kickstarts a restructuring of its operations in hopes of spurring growth.<\/p>\n
The company in March announced plans to reshape itself into six business divisions with plans to allow all but its core e-commerce business to raise external capital and go public.<\/p>\n
In an earnings call Thursday, Alibaba CEO Daniel Zhang said that the Alibaba plans to fully spin off its cloud computing unit and complete a public listing in the next 12 months, allowing it to optimize operations, Zhang said.<\/p>\n
Alibabas board of directors approved the full spin-off of the cloud computing unit via a stock dividend distribution to shareholders, the company said.<\/p>\n
Zhang also said that Freshippo, its groceries arm, as well as logistics arm Cainiao, are ready to go public.<\/p>\n
Alibabas board has approved plans to begin Freshippos IPO process and Cainiao will explore an IPO in the next 12 to 18 months, he said.<\/p>\n
Other units such as Alibabas international digital commerce group, which operates Singapore-based e-commerce platform Lazada, will also explore raising external capital as it seeks to expand globally.<\/p>\n
Alibaba Group Holding on Thursday posted a lower-than-expected 2% rise in revenue for the quarter ended March, suggesting that spending has been slow to bounce back in China since the removal of COVID-19 restrictions amid slowing economic growth.<\/p>\n
The company reported revenues of 208.2 billion yuan ($29.6 billion) for its March quarter. It also reversed losses from the same quarter last year, posting a net income of 23.5 billion yuan ($3.3 billion) due to one-off gains from its equity investments.<\/p>\n
Revenue from its China commerce business Alibabas largest business unit by revenue declined 3% compared with the same period last year. Its cloud computing unit also declined 2% in revenue.<\/p>\n
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Alibaba approves cloud computing unit spin-off, prepares for grocery and logistics arms to go public - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" HONG KONG (AP) Alibaba plans to spin-off of its cloud computing business and said Thursday that its logistics and grocery units will explore initial public offerings as the Chinese e-commerce company kickstarts a restructuring of its operations in hopes of spurring growth. The company in March announced plans to reshape itself into six business divisions with plans to allow all but its core e-commerce business to raise external capital and go public. Continue reading