Money Buzz! Europa

Tag: Alibaba

  • Auchan sells its stake in Chinese food retailer Sun Art to Alibaba

    Auchan sells its stake in Chinese food retailer Sun Art to Alibaba

    Auchan accepted Alibaba’s proposal to acquire its entire stake in Sun Art (484 hypermarkets, 150.000 employees, largest market share for food in China).

    The transaction will be carried out at the equivalent price of HKD 8.10 per share, which will be the basis for a public takeover bid.

    On 20 November 2017, Alibaba, Auchan and Ruentex Group announced a strategic alliance that brings together online and offline expertise to explore new retail opportunities in China’s food retail sector.

    As part of this strategic alliance, Auchan obtained an indirect stake of approximately 36.18%, and Alibaba invested a toal of approximately HK$22.4 billion to obtain an aggregate direct and indirect stake of approximately 36.17% in Sun Art Retail Group Limited.

  • Alibaba recorded a drop in net profit by 88%, but turnover grew by 22%

    Alibaba recorded a drop in net profit by 88%, but turnover grew by 22%

    Alibaba recorded a drop in net profit by 88% in the fourth quarter of the financial year 2020, due to the impact of the coronavirus pandemic which has caused the interruption of its supply chains, by therefore limiting its delivery capacity.

    Turnover grew by 22% to 114.31 billion yuan, about 16 billion dollars. The company is expecting to record a turnover higher than 650 billion yuan, 91.5 billion dollars, during the current financial year.

    Net profit amounted at 3.16 billion yuan (447 million dollars) in the quarter closed in March. The company has attributed its negative performance mainly to a loss related to net investments.

    The net profit for American Depositary Share was about 1.16 yuan, by highlighting a strong decrease compared to 9.84 yuan earned last year. The adjusted EPS amounted at 9.2 yuan instead, higher than the analysts’ expectations of 6.05 yuan.