This archive report was first published on 18 November 2021.
On November 18, 2021, Alibaba released its earnings results for the July-September period, revealing a significant decline in profit.
The Hangzhou-based company reported a profit of 5.37 billion yuan ($833 million), a staggering 81% drop from the 28.77 billion yuan earned over the same stretch last year.
Despite this decline, Alibaba's revenues reached 200.7 billion yuan, a 29% increase from the previous year, largely driven by its core e-commerce operations.
The company's earnings results have been closely watched as a gauge of how one of China's highest-profile tech giants is faring under the government's drive to rein in big tech.
China's ruling Communist Party had previously relied on its tech giants to push forward digital transformation in the country, but it abruptly turned on the sector late last year due to concerns over aggressive expansion, alleged monopolistic practices, and data security.
Alibaba was the first to feel the wrath of the government's crackdown, with the scuttling of Ant Group's world-record stock IPO and a record $2.78 billion fine for anti-competitive practices in April.
